Implats – Impala Platinum Holdings LTD

Impala Platinum Holdings Limited or Implats, is a South African company, owning specific companies that operate mines producing platinum and other platinum group metals, such as copper, nickel, and cobalt. Implats is a leading producer of platinum group metals.

Impala mine is its most vital mine in the North West province of South Africa. Implats has mining operations, including Impala Rustenburg, Marula, Impala Canada’s Lac des Iles, ZImplats, Mimosa, and two Rivers.

About Implats

Implats came into being in 1966 as an associate of Union Corporation, which established a platinum mine in Rustenburg, with a capacity of over 100,000 oz. per year. In 1968, an area covering around 27,000 acres, which the Bafokeng Tribe owned, was given to the Implats group flagship operation.

In January 1973, Implats was an entirely owned subsidiary of Bishopsgate Platinum Limited, which was listed on the JSE. In October 1978, the name of Bishopsgate changed to Impala Platinum Holdings Limited (Implats).

In 1990, Implats achieved a significant attraction in Western Platinum and Eastern Platinum. Later on, a full coalition agreement with Lonplats was developed in 1995, but in 1966, it was blocked by the European Union.

Between 2000 and 2004, Implats progressed mineral rights to establish Marula Platinum and acquired strategic stakes in Zimbabwean operations Zimbabwe Platinum, known as Zimplats and Mimosa Mining Company.

In January 2014, the employees of Impala Platinum and other platinum mines in South Africa went on strike, proposing a basic salary of R 12,500. The strike is recorded as the longest strike in the history of South Africa.

In June 2014, the employees’ strike ended when the Association of Mineworkers and Construction Union (AMCU) signed a three-year settlement deal with Impala Platinum and other platinum mine owners to increase the wage the workers earned less than R 12,500.

In October 2019, Implats declared acquisition of Canadian-based North American Palladium Limited for $758 million.

In April 2021, Impala Rustenburg officially handed over the nine Social and Labour Plan(SLP) projects to the local community.

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Implats IPO

Implats believes in resourceful investment. It draws shareholders from all across the world, having 45% from outside of South Africa. Some of the investors’ list in Implats are as following:

In June 2020, the major shareholders in Implats were the Public Investment Corporation, having 13.87% shares.
Prudential Investment Managers has a share of 5.14% in Implats.
BlackRock Inc. has 7.52% shares in Implats.
Coronation Asset Management has 6.23% shares in Implats.

The largest single shareholder of Implats is the Royal Bafokeng Nation, which holds a 13.4% stake.

According to an employee share ownership programme, about 98% of the workforce holds around a 3% stake in the group. The mines of individuals in the group also have an empowered shareholding.

Implats investments

Implats is considered one of the foremost and largest producers of platinum and the associated Platinum Group Metals (PGM). Implats has six operations in which it has invested and owns a certain percentage in each operation. They are:

1. Impala Rustenburg

Impala has its operations located on the western part of the world-renowned Bushveld Complex near Rustenburg in South Africa. The operation has a multi-shaft mining complex and several concentrating and smelting plants. Impala is 96% controlled by Implats.

2. Zimplats

Zimplats, which is located on the Zimbabwean Great Dyke southwest of Harare, is 87% owned by Implats. Zimplats operates four underground mines.

3. Marula

Marula, being one of the first operations that developed on the under-exploited eastern limb of the Bushveld Complex in South Africa. Marula is 73% owned by Implats.

4. Impala Canada

Impala Canada is the world’s only pure-play palladium producer, which is ramping up its production to evolve into one of Canada’s largest, lowest-cost and cautious underground mines, manufacturing a metal that contributes to a cleaner and safer global environment. Therefore, Impala Canada is 100% owned by Implats.

5. Two Rivers

Two Rivers, a joint venture between Implats and African Rainbow Minerals, is 54% owned by African Rainbow Minerals and 46% owned by Implats This operation is located on the southern part of the eastern side of the Bushveld Igneous Complex.

6. Mimosa

Mimosa is situated on the Wedza Geological Complex on the Zimbabwean Great Dyke. Mimosa is owned together by Implats and Sibanye. The operation of Mimosa, comprises a shallow underground mine, along with a decline shaft and a concentrator.

Implats business strategy

Implats strives to be the world’s best PGM producer. The business strategy of the company focuses on the following factors:

To develop favourable and advanced mining methods and techniques.
To build a competitive portfolio of minerals and other processing assets.
Organisational effectiveness and benefits.
To acquire operational excellence in PGMs.
To protect and strengthen their licence to operate through industry-leading ESG performance.

Implats stock analysis

Implats is listed in JSE limited in South Africa. Implats (JSE: IMP) is considered the second-largest PGM producer in South Africa and the world, which supplies around 25% of the world’s platinum output.

The stock price of JSE: IMP remains in strong consolidation. However, the broader term technical picture indicates a healthy uptrend. The fundamental view of the company is quite attractive for the medium and long-term investors. The dividend yield for the stock is 5.6% while the P/E ratio is near 7. It indicates that buying the IMP stocks can yield a fair return for the investors.

Bottom line

Implats, a leading and largest producer of Platinum Group Metals (PGMs), has been working on around six mining operations and Impala Refining Services, a toll refining business.

For the future, Implats is looking at its own assets for growth and development opportunities for low-cost, low-risk and mechanised expansions and to work effectively on its operations.

Furthermore, Implats will continue to work on its goal: to mine, refine, and market high-quality PGM products safely, efficiently, and at a promising cost from a competitive asset portfolio by effective teamwork, latest strategies, and innovation.

Categories: Stock Market Trading | Author: jason | Date: 3 January 2022

jason

Jason Morgan is an experienced forex analyst and writer with a deep understanding of the financial markets. With over 13+ years of industry experience, he has honed his skills in analyzing and forecasting currency movements, providing valuable insights to traders and investors.

Forex Content Writer | Market Analyst

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