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Impala Holdings Limited. JSE: IMP

Impala shares

Background of Impala

  • Following a successful drilling and exploration programme in the early-mid 1960s, a mine said to have an initial annual production capacity of 100,000 ounces of platinum was established north of Rustenburg in South Africa. It’s first exploration blast was on 3 June 1967 and, in November 1968, a lease covering 27,000 acres (predominantly owned by the Bafokeng Tribe –now the Royal Bafokeng Nation) was granted for what was to become Impala Platinum, the flagship operation of the Implats group. Production here began ahead of schedule in July 1969 and for the first 12 years only the Merensky Reef was mined.

  • By the late 1960s, the Japanese economy saw an impressive boom and a significant platinum jewellery market was beginning to develop, proving to be a steady source of demand for the platinum being mined in the land of the Bafokeng. In the USA, legislation was passed setting limits for vehicle emissions. These standards were to be met by the mid-1970s and the Environmental Protection Agency became increasingly active in ensuring these were adopted. Legislation throughout the world soon followed suit, and in so doing opened up an enormous market for platinum to be used in auto catalytic converters, which reduce vehicle emissions substantially. By mid-1972, Impala was negotiating long-term supply contracts with major US motor manufacturers, General Motors and Chrysler.

  • Soon, Impala had established another contract, this time with General Motors to supply up to 300,000 ounces of platinum and 120,000 ounces of palladium annually for the period from 1974 to 1983. On the corporate side, a company called Bishopsgate Platinum Limited, of which Impala Platinum Ltd was a wholly-owned subsidiary, was listed on the Johannesburg Stock Exchange (JSE) on 26 January 1973 and on 19 October 1978, its name was changed to Impala Platinum Holdings Limited (Implats). By the early 1990s, Impala had become the world’s second largest platinumproducer, with an output of 1 million platinum ounces annually. In 1990, Implats acquired an effective interest in Western Platinum and Eastern Platinum (collectively Lonplats). In 1995, agreement was reached on a full merger with Lonplats although, this was subsequently blocked by the European Union.

  • Settlement was reached in 1999 with the Royal Bafokeng Nation (RBN) regarding mineral rights and royalties over the major portion of the area over which Impala Platinum had mining rights. Black economic empowerment transactions were negotiated during 2006 and 2007. Implats finalised a deal with the Royal Bafokeng Holdings (Pty) Limited (RBH) in terms of which Impala Platinum agreed to pay the Royal Bafokeng Nation (RBN) all future royalties due to them, thus effectively discharging any further obligation to pay royalties. In turn, the RBN subscribed for 75.1 million Implats shares giving them a 13.4% portfolio holding in Implats, which the Royal Bafokeng Nation holds till today.

Impala Shares Growth Driver

  • Being a mining operation, Impala Holdings growth driver will always be how effective it is in bringing out platinum and thus driving Impala Holdings share price and Impala Holding shares. Impala’s platinum tonnes milled increased by 15.0% to 18.5 million tonnes. The gross refined platinum production increased by 12.7% to 1 438 300 ounces. The group’s unit costs were well managed, despite safety impacts at the Lease Area, decreasing by 2.2% to R21 731 per platinum ounce, or 5% to R824 per tonne milled Capital expenditure through the cycle maintained, with R3.56 billion spent on mineral reserve development and critical capital projects.

  • Performance at Impala Rustenburg was negatively impacted by two major safety events in the second half of the year, however all other operations achieved exceptional operational performances in a challenging operating environment ‐achieving history writing production. Headcount reduced by 6.1% to 50 720 including contractors at year end (excluding JV operations). Impala Holdings strategy focuses on transforming the Impala Rustenburg operation into a more concentrated mining operation with access to new modern shaft complexes making better use of the fixed cost base, with higher mining efficiencies, higher proportion of productive rock‐breakers, lower unit costs and improved safe production performance.

  • Impala Holdings Limited’s operation, because of its strategy will focus on its Zimplats mining operation. The strategy is driven, especially by an exceptional safety performance, zero fatalities, lost production tonnage at Bimha fully recovered and additional open pit mining. Its redeployment of mining teams is a functional imperative, so is the increasing of its output from Mupfuti Mine as it ramps‐up production. Impala Holdings share price will also be positively affected by its record production levels, where it was able to sell its stockpiled material (21 000 platinum ounces) as concentrate. The operations head grade was maintained at 3.48g/t, its platinum in matte production increased by 52.5% to 289 800 ounces (190 000 ounces) this unfortunately also meant that total costs rose by 2.2% to US$327 million. While it’s head count decreased by 6.5% to 5 443 employees including contractors.

Impala Group Investor Tip

  • Impala Holdings Limited’s revenue increased due to improved volumes, the company saw improved impairment data stats and scrapping because of this. However the group also experienced 14 Shaft conveyor fires, its insurance claim was R474 million because of this. The group saw business interruptions at 14 shafts which amounted to a total of R295 million, this 14 shaft property damage cost the group upwards of R120 million. The group did see its revenue up by R3.45 billion, which promised higher dividends. This was attributed to higher volumes and the group saw lower dollar metal prices and a significantly weaker exchange rate. There was a cost reduction of R1.4 billion for the group, this obviously saw a big rise on purchase sentiments on the online live trade platforms, with shareholders keeping their stock and not putting it up for sale. Its cost reduction stats were boosted by a reduction of R1.1 billion at the group’s South African operations and a reduction of R300 million at Zimplats.

  • The group’s consumable inflation of 2.4% compares to it’s CPI of 5.6%, the group saw quantity reductions and its head count reduced.

Impala Major Shareholders

  • Sector

    Materials

  • Industry

    Materials

How to buy Impala Group Holdings Shares

  • Impala Holdings : How to buy Impala Holdings Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Impala shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Impala and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Impala Holdings shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Impala.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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<a href="https://www.sashares.co.za/impala">Credits: SA Shares™</a>
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