Key features for the year

IMPALA PLATINUM HOLDINGS LIMITED (IMPLATS) IS ONE OF THE WORLD’S FOREMOST PRODUCERS OF PLATINUM AND ASSOCIATED PLATINUM GROUP METALS (PGMS). IMPLATS IS CURRENTLY STRUCTURED AROUND FIVE MAIN OPERATIONS WITH A TOTAL OF 20 UNDERGROUND SHAFTS. OUR OPERATIONS ARE LOCATED WITHIN THE BUSHVELD COMPLEX IN SOUTH AFRICA AND THE GREAT DYKE IN ZIMBABWE, THE TWO MOST SIGNIFICANT PGM-BEARING ORE BODIES IN THE WORLD.


Key features for the year

Financial

Gross profit improved by R2.1 billion to R1.6 billion. Earnings were impacted by impairments of R13.6 billion, mainly due to the restructuring of Impala Rustenburg. The Group’s funding strategy is supported by the forward sale of up to R2 billion of the pipeline stock, which provides sufficient liquidity during the two year restructuring period.


Operational

Tonnes milled rose 5.6% and platinum in concentrate ounces were 1% higher following strong operational performances across the Group. Refined platinum ounces declined by 4% and were impacted by the 77 000 platinum ounce build-up in pipeline stocks, following the rebuild and fire at Impala Rustenburg’s No. 5 furnace.


Market

The platinum market remains over-supplied, with good demand for palladium and rhodium.


Prices achieved

A 4% decline in the US dollar platinum price and a stronger ZAR:US$ exchange rate was offset by a 35% increase in the US dollar palladium price and a 90% increase in the rhodium price, yielding a net 5% increase in the rand basket price per platinum ounce.


Safety

Seven fatalities in the earlier part of the year were regrettable and unacceptable. Corrective measures taken contributed to a seven-month fatality-free record for Implats.


Strategic response

Strong advances were made towards the stated policy of eliminating loss-making production, demonstrated by the dramatic turnaround of Marula and the restructuring decision at Impala Rustenburg. The Group strategy to rebalance its portfolio toward lower-cost, shallow, mechanisable assets was progressed through the acquisition of a 15% interest in the Waterberg project.