Life's Good For Implats

It seems that Impala Platinum is currently generating plenty of cash. So much so, that it may not require bridging finance to follow through with its plans to purchase North American Palladium.

- David McKay

Cash generation is so strong at Impala Platinum (Implats) that the company may not need bridging finance in order to complete the $758m purchase of Toronto’s North American Palladium (NAP) it first announced – to much surprise – on 7 October. (Also see p.36.)

The company hasn’t commented on the prospect of avoiding bridging finance, but a banking source says that at current platinum group metal (PGM) prices, Implants are absolutely coining it.

Implats will buy 100% of NAP for cash in three parts, consisting of $288m in existing cash; some $120m from metal prepayment; and the bridging loan worth about $350m. Morgan Stanley was to be asked to arrange it: that might now not be the case.