Impala Platinum said it is boosting its metals output forecast for the 2023/24 full year as it benefits from assets recently acquired from Royal Bafokeng Platinum, even as its profits were hit by lower prices.

Johannesburg-based Impala said the acquisitions would “materially alter” its production profile, with platinum-group metals output expected to rise to between 3.3 million and 3.45 million ounces.

Impala, which is among the South African mining companies battling to operate amid rolling electricity outages, said on Thursday that its platinum metals output dropped 4% to 2.9 million ounces in the year to end-June.

The company is raising output even as its profits are squeezed by the challenges in its home country and palladium and rhodium prices that have come-off record highs amid an uncertain demand outlook.

Platinum metals are used in catalysts that curb toxic vehicle emissions.

“The recent material decline in dollar platinum-group metals pricing heralded a period of rapid margin compression across the sector,” Impala said in a statement.

Impala’s headline annual earnings declined 41% to R18.8 billion.