2024-02-06 05:23:05 ET
Summary
- Palladium and platinum prices have significantly declined during the past two years and PGM pure-plays like Impala Platinum have suffered the most.
- Impala's H1 2024 operational report reveals mixed operational performance, with YoY 6E PGM production growth marred with mine safety challenges.
- Impala has an attractive valuation compared with peers, however, near-term share price growth prospects are limited by the depressed PGM prices and the risks facing South African mining industry.
- Under the prevailing circumstances, I see Impala platinum stock as a 'hold'.
Thesis
In my previous analysis of Impala Platinum ( OTCQX:IMPUY ), I discussed my thoughts on the company's acquisition of RBPlat (Royal Bafokeng Platinum) as a long-term strategic move to address the increasing palladium-to-platinum substitution in the automotive industry. However, in the following period, IMPUY's share price took a good beating from the declining PGM prices (especially platinum and palladium prices)....
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For further details see:
Impala Platinum: I Stand On The Sidelines (Rating Downgrade)