Investment Idea: Impala Platinum

• In the full-year results released in August 2024, Impala Bafokeng reported declines in revenue, gross profit, and EBITDA, resulting in a bottom-line loss for the year despite higher sales volumes.
• The weak performance was attributed to declining PGM prices, driven by market dynamics such as inventory destocking, the rising adoption of BEVs, and increased availability of Russian metals in the Chinese market.
• On 30 October 2024, IMP released a production report for the period 1 July to 30 September 2024. The highlights of the update are:
• Group 6E production volumes decreased by 5% from the previous comparative quarter.
• 6E sales volumes declined by 4.5%.
• Tonnes milled declined by 6%, but 6E grade per tonne improved by 1.8%.
• FY25 guidance for volumes, cost, and capital expenditure remains unchanged.

Our research supports a hold recommendation