Impala Platinum CEO Nico Muller expects his company to enter a more cash-generative phase in the coming months as it reaps the benefits of soaring metal prices and last year’s radical restructuring.
In the latest annual results, Muller was upbeat about the group’s prospects for the 2026 financial year after three years of stubbornly low platinum group metal (PGM) prices saw it cutting costs and keeping a close eye on capital spending.
“In response to constrained profitability, capital expenditure was carefully prioritised with investments directed towards safety, operational efficiency and infrastructure integrity,” Muller said.
The most notable cost-cutting measure was Implats’ decision early last year to retrench nearly 4,000 workers across its Rustenburg, Impala Bafokeng and Marula operations. The cash-strapped miner also opted to skip a final dividend payout in the 2024 financial year and in the six months to end-December 2024.
Muller expects the group’s cautious spending strategies and cost cutting measures to pay off this year, particularly after an abrupt turnaround in PGM prices.
After three years of stubbornly low prices, suppressed by fears around electric vehicles (EVs) negating catalytic converters, platinum has skyrocketed to 12-year highs in recent months on suppressed supply, safe-haven demand and surprisingly high hybrid EV sales.
“After a prolonged period of depressed pricing, we believe the group is entering a more cash-generative period,” Muller said. “Supported by past investments in asset integrity and a strong and flexible balance sheet, Implats is well positioned to effectively allocate capital — strengthening the business, rewarding shareholders, sharing value with stakeholders and maintaining financial resilience.”
The rosy outlook comes as a welcome shift for investors, who have become accustomed to a more cautious tone from the CEO, with Muller having warned early in the year that any more pressure on PGM prices may warrant further production cuts this year.
Muller’s bearish stance on the PGM market is well documented. Addressing a PGM conference in April, he urged platinum producers to keep the doors open for further production cuts and retrenchments.
Muller warned that geopolitical tension and US tariffs are an ongoing concern: “The full impact of these tariffs on automotive and industrial demand for PGMs is yet to be fully realised but is expected to weigh on both business and consumer confidence.”
Still, the beginning of full-year 2026 has already shown early signs of improved performance across the group’s mining operations and stability at its processing assets, the company said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.