Impala Platinum to cut spending after metal price decline

Published: 2023-10-31 tag: 0

Oct 31 (Reuters) - South Africa's Impala Platinum (IMPJ.J) will reduce planned spending across its business to reflect current low metal prices, the company said on Tuesday.

The prices of platinum group metals (PGM), which are used by automakers for catalysts that help curb toxic emissions, have fallen steeply this year, squeezing miners still facing high operational costs.

Platinum prices are down about 15% so far in 2023 amid concerns over global economic growth, while palladium is currently trading around $1,127 an ounce after peaking above $3,000 in March 2022 after top producer Russia invaded Ukraine.

The price of rhodium, a scarce, corrosion-resistant PGM, peaked at nearly $30,000 an ounce in 2021 but is currently trading around $4,500.

Impala, the world's second largest PGM producer after South African rival Anglo American Platinum (AMSJ.J), last year announced a 50 billion rand ($2.66 billion) five-year capital investment programme across its mining and processing assets.

Much of the investment was earmarked for mine development and upgrades as well as processing facilities and solar power generation at Impala's 87% owned Zimplats Ltd (ZIM.AX) in Zimbabwe.

"Planned elevated levels of spend across the portfolio will be adjusted to reflect the prevailing current reality of compressed industry margins," Impala CEO Nico Muller said in a quarterly production update.

The company did not immediately respond to a request for details of specific projects that could be impacted by the reduced spending.

Impala's refined PGM production volumes increased by 25% to 885,000 ounces during the September quarter after integrating the newly acquired Royal Bafokeng Platinum.

($1 = 18.7626 rand)

Reporting by Nelson Banya; Editing by Kirsten Donovan

Midstream energy company MPLX transported 2% more products including natural gas and crude oil in the third quarter of 2023 versus the same time the year prior, and reported higher earnings on Tuesday.

Slow global economic growth will keep crude prices anchored below $90 a barrel this year and next, unless the Israel-Hamas conflict draws in more countries in the Middle East and exacerbates supply tightness, a Reuters poll showed on Tuesday.

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.