US ADP employment data below market expectations, platinum prices stop falling and rebound, spot market cools [SMM daily review]

Platinum and palladium futures swung wildly this week (August 28–September 3), with palladium fluctuating more sharply. Early in the week, hawkish signals from Jackson Hole boosted rate hike expectations, and the still-unsettled US-Iran situation, combined with bulls taking profits, pushed futures sharply lower. Toward the end of the week, prices recovered somewhat as ADP data came in below expectations. Going forward, the focus will be on US inflation and the September FOMC meeting, with a high-volatility environment likely to persist in the near term.

[SMM Flash] Tharisa is considering a five-year senior secured bond with an initial issue size of US$300 million to support development of its Karo Platinum Project in Zimbabwe. The company announced on 2 September that DNB Carnegie and HSBC had been appointed joint bookrunners, with Absa acting as co-manager, for fixed-income investor meetings. Subject to market conditions, proceeds from a potential bond issue would primarily support capital expenditure at Karo alongside general corporate purposes. Karo is an open-pit PGM project under construction on Zimbabwe’s Great Dyke and forms a central part of Tharisa’s strategy to expand its PGM production beyond South Africa. Tharisa describes the project as substantially advanced, with exploration, mine planning and infrastructure development largely completed and concentrator construction progressing. A successful bond issue would represent an important financing milestone for the project, potentially reducing funding uncertainty surrounding the development of additional Zimbabwean PGM supply.

[SMM Flash] Impala Platinum Holdings (Implats) reported a strong financial recovery for the year ended June 2026, supported by higher PGM prices and solid operational performance. Group 6E mine production remained stable at 3.50 million oz, while refined and saleable production increased 5% to 3.56 million oz. Rand revenue per 6E ounce rose 51% to R38,116, helping EBITDA reach R43.6 billion and headline earnings R22.9 billion. Group unit costs, however, increased 8% to R24,249/6E oz, while capital expenditure rose 3% to R7.2 billion. The results highlight the significant improvement in PGM producer margins as stronger metal prices offset persistent operating-cost pressures. Implats generated R22 billion in free cash flow and ended the period with adjusted net cash of R22 billion, strengthening its financial position. The combination of improved realised pricing and higher refined output provides a positive indicator for producer profitability, although rising unit costs remain an important industry constraint.