IMP/IMPO - Impala Platinum Holdings Limited - Cond28 Aug 2008
IMP
IMPO                                                                            
IMP/IMPO - Impala Platinum Holdings Limited - Condensed consolidated annual     
results for the year ended 30 June 2008 (audited)                               
IMPALA PLATINUM HOLDINGS LIMITED                                                
(Incorporated in the Republic of South Africa)                                  
Registration No. 1957/001979/06                                                 
Share code: IMP/IMPO                                                            
ISIN: ZAE000083648                                                              
LSE: IPLA                                                                       
ADR`s: IMPUY                                                                    
("Implats" or "the company")                                                    
CONDENSED CONSOLIDATED ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2008 (AUDITED) 
KEY FEATURES                                                                    
Safety - while the group`s LTIFR and FIFR improved, regrettably 12 employees    
lost their lives                                                                
Significant mining rights obtained                                              
Platinum production, excluding Lonmin material treated, increased by 2% while   
gross production decreased by 6% to 1.91Moz                                     
Revenue increased 19% to R37.6 billion                                          
Cost per platinum ounce* produced up by 17% to R6 930                           
Gross margin improved to 47%                                                    
Headline earnings 57% higher at R20.65 per share                                
Capital expenditure increased 86% to R5.4 billion                               
Dividend cover for the year reduced to 1.4                                      
Total dividend per share of R14.75 (final of R11.75 per share)                  
INCOME STATEMENT (AUDITED)                                                      
(Amounts stated in rand millions)              2008      2007                   
Revenue                                        37 619    31 482                 
Cost of sales                                  (19 888)  (17 010)               
Gross profit                                   17 731    14 472                 
Other operating expenses                       (533)     (478)                  
Royalty expense                                (648)     (1 703)                
Profit from operations                         16 550    12 291                 
Finance income                                 534       560                    
Net foreign exchange transaction               439       (15)                   
gains/(losses)                                                                  
BEE compensation charge                        -         (1 790)                
Other (expense)/income                         (215)     (214)                  
Profit on sale of financial assets             4 831     -                      
Share of profit of associates                  678       388                    
Profit before tax                              22 817    11 220                 
Income tax expense                             (5 112)   (3 895)                
Profit for the year from continuing            17 705    7 325                  
operations                                                                      
Profit attributable to:                                                         
Owners of the parent                           17 596    7 232                  
Non-controlling interest                       109       93                     
Earnings per share (expressed in cents per                                      
share - cps)                                                                    
Basic                                          2 910     1 312                  
Diluted                                        2 907     1 309                  
Dividends to group shareholders (cps)                                           
Interim dividend - paid                        300       275                    
Final dividend - declared                      1 175     700                    
Dividends per share                            1 475     975                    
HEADLINE EARNINGS PER SHARE (AUDITED)                                           
(Amounts stated in rand millions)                 2008     2007                 
Profit attributable to owners of the parent       17 596   7 232                
Adjustments net of tax:                                                         
Profit on disposal of property, plant and         (4)      -                    
equipment                                                                       
Impairment of Zimplats BMR                        74       -                    
Profit on sale of investment                      (5 181)  -                    
Headline earnings                                 12 485   7 232                
Headline earnings per share (cents)               2 065    1 312                
Weighted average number of ordinary shares in     604.70   551.40               
issue (millions)                                                                
SEGMENTAL ANALYSIS (AUDITED)                                                    
2008             2007                     
(Amounts stated in rand          Sales   Profit   Sales    Profit               
millions)                                                                       
Mining segment                                                                  
Impala                           20 889  8 522    17 401   4 194                
Marula                           1 827   755      1 213    398                  
Zimplats                         2 132   819      1 697    716                  
Mimosa                           958     517      843      519                  
Total mining segment             25 806  10 613   21 154   5 827                
Refining services segment        15 704  1 700    13 649   1 313                
Other                            -       5 854             331                  
Inter segment adjustment         (3 891) (462)    (3 321)  (146)                
37 619  17 705   31 482   7 325                 
STATEMENT OF FINANCIAL POSITION (AUDITED)                                       
(Amounts stated in rand millions)            2008       2007                    
ASSETS                                                                          
Property, plant and equipment, exploration   24 895     20 347                  
and evaluation assets                                                           
Intangible assets                            1 018      1 020                   
Investments                                  13 692     15 835                  
Current assets                               22 504     12 758                  
Total assets                                 62 109     49 960                  
EQUITY AND LIABILITIES                                                          
Capital and reserves attributable to owners  43 418     32 968                  
of the parent                                                                   
Non-controlling interest                     1 885      1 730                   
Total equity                                 45 303     34 698                  
Provision for long-term responsibilities     1 548      1 001                   
Borrowings                                   1 464      685                     
Deferred tax liability                       5 247      5 048                   
Current liabilities                          8 547      8 528                   
Total liabilities                            16 806     15 262                  
Total equity and liabilities                 62 109     49 960                  
CASH FLOW STATEMENT (AUDITED)                                                   
(Amounts stated in rand millions)            2008       2007                    
Cash flow from operating activities          11 241     9 973                   
Cash flow from investing activities          1 279      (18 428)                
Cash flow from  financing activities         (5 455)    9 823                   
Net increase in cash and cash equivalents    7 065      1 369                   
Cash and cash equivalents at the beginning   3 218      1 864                   
of the year                                                                     
Effects of exchange rate changes on          110        (15)                    
monetary assets                                                                 
Cash and cash equivalents at the end of the  10 393     3 218                   
year                                                                            
STATEMENT OF CHANGES IN EQUITY (AUDITED)                                        
                                                                                
                                                                 Other          
compo-         
(Amounts stated              Share             Retained           nents         
in rand millions)            capital           earnings           of equity     
Balance at 30 June 2006      458               13 363             18            
Change in share capital      14 351                                             
Acquisition of a subsidiary                                                     
Total comprehensive income                                                      
for the year                                   7 232              658           
Dividends                                      (3 112)                          
Balance at 30 June 2007      14 809            17 483             676           
Change in share capital      (59)                                               
Total comprehensive income                                                      
for the year                                   17 596             (1 032)       
Dividends                                      (6 055)                          
Balance as at 30 June 2008   14 750            29 024             (356)         
                            Attribu-                                            
table to                                            
                            owners           Non                                
(Amounts stated              of the           controlling        Total          
in rand millions)            parent           interest           equity         
Balance at 30 June 2006      13 839           215                14 054         
Change in share capital      14 351                              14 351         
Acquisition of a subsidiary                   1 427              1 427          
Total comprehensive income                                                      
for the year                 7 890            88                 7 978          
Dividends                    (3 112)                             (3 112)        
Balance at 30 June 2007      32 968           1 730              34 698         
Change in share capital      (59)                                (59)           
Total comprehensive income                                                      
for the year                 16 564           155                16 719         
Dividends                    (6 055)                             (6 055)        
Balance as at 30 June 2008   43 418           1 885              45 303         
Notes (audited)                                                                 
The consolidated financial statements have been prepared in accordance with     
International Financial Reporting Standards (IFRS), Interpretations of those    
standards (as adopted by the International Accounting Standards Board) and      
applicable legislation (requirements of the South African Companies Act and the 
regulations of the JSE Limited.) These condensed consolidated financial         
statements should be read in conjunction with the audited annual financial      
statements obtainable on the website.                                           
The consolidated financial statements have been prepared under the historical   
cost convention except for the following:                                       
Revaluation of available-for-sale financial investments at fair value, certain  
financial assets and financial liabilities are at fair value, derivative        
financial instruments are measured at fair value and liabilities for cash-      
settled share-based payment arrangements are based on fair value.               
The principal accounting policies used by the group are consistent with those of
the previous year, except for the adoption of:                                  
- IFRS 7 Financial Instruments: Disclosures (effective 1 January 2007).         
- IFRS 8 Operating Segments (effective 1 January 2009).                         
- IAS 1 Presentation of Financial Statements (effective 1 January 2009).        
The adoption of these standards merely had a disclosure impact with no material 
impact on the results of the group.                                             
The financial statements have been audited by PricewaterhouseCoopers Inc whose  
unqualified opinion is available for inspection at the registered office of     
Implats.                                                                        
(Amounts stated in rand millions)                 2008     2007                 
Property plant and equipment, exploration and                                   
evaluation assets                                                               
Opening net book amount                           20 347   12 432               
Additions                                         5 368    2 888                
Disposals                                         (43)     (4)                  
Acquisition of a subsidiary                       -        5 918                
Exchange adjustment                               344      (22)                 
Depreciation, amortisation and other movements    (1 121)  (865)                
Closing net book amount                           24 895   20 347               
Contingent liabilities and guarantees                                           
Guarantees                                                                      
At year end the group had contingent liabilities in respect of bank and other   
guarantees and other matters arising in the ordinary course of business from    
which it is anticipated that no material liabilities will arise.                
(Amounts stated in rand millions)                2008     2007                  
Two Rivers Platinum (Proprietary) Limited         57      325                   
(related party)                                                                 
Department of Mineral and Energy Affairs          391     293                   
Eskom                                            34       31                    
Contingencies                                                                   
BTX Mining, a contract miner for Barplats Mines Limited, has lodged a claim for 
an amount of R49 million against Impala Platinum Limited following the closure  
of the Barplats mine. A preliminary finding pertaining to the merit of the claim
is currently on appeal and Impala maintains its position that the claim lacks   
merit and therefore no amount is due to BTX Mining.                             
The City of Johannesburg Metropolitan Council has proceeded with legal action   
against Impala Platinum Holdings Limited in respect of Regional Services Council
Levies claiming an amount of R50 million. The company is of the opinion that    
this amount is not due and will defend the legal action.                        
Borrowings                                                                      
Borrowings from Standard Bank Limited consist of:                               
loans obtained by BEE partners for purchasing a 27% (2007: 22.5%) share in      
Marula Platinum (Proprietary) Limited amounting to R755 million (2007: R395     
million). The BEE partnership in Marula is consolidated as the loans are        
guaranteed by Implats. The loan carries interest at the Johannesburg Interbank  
Acceptance Rate (JIBAR) plus 90 basis points and a revolving credit facility    
amounting to R57 million (2007: R73 million), which carries interest at JIBAR   
plus 100 basis points. The loans are repayable over 7.5 (2007: 8.5) years.      
a loan facility of R635 million (US$80 million) was obtained during the year to 
partially finance the Ngezi Phase One expansion at Zimplats. An amount of R404  
million (US$51 million) of this facility was drawn at year end. The loan carries
interest at London Interbank Offer Rate (LIBOR) plus 700 basis points. It is    
repayable in 12 equal quarterly instalments starting December 2009 and will be  
repaid by December 2012. The loan is secured by sessions overs cash, debtors and
revenues of Zimplats Mines (Pty) Limited.                                       
Royalties                                                                       
Royalties amounted to R648 million and consist of R319 million for royalty      
holders (2007: R1 698 million) and amortisation of the royalty prepayment of    
R329 million (2007: R5 million).                                                
Capital expenditure                                                             
Capital expenditure approved at 30 June 2008 amounted to R20 billion (2007: R14 
billion) of which R4 billion (2007: R3 billion) is already committed. This      
expenditure will be funded internally and from borrowings where necessary.      
Dividends                                                                       
At the board meeting on 28 August 2008, a final dividend in respect of 2008 of 1
175 cents per share amounting to R7 109 million was approved. Secondary Tax on  
Companies (STC) on the dividend will amount to R711 million.                    
These financial statements do not reflect this dividend and related STC payable.
The dividend will be accounted for in shareholders` equity as an appropriation  
of retained earnings in the year ending 30 June 2009.                           
operating statistics                                                            
(Amounts stated in millions)                              2008        2007      
Gross refined production                                                        
Platinum                                     (000oz)      1 907       2 026     
Palladium                                    (000oz)      1 044       1 114     
Rhodium                                      (000oz)      261         247       
Nickel                                       (000t)       14.8        16.2      
IRS returned metal                                                              
Platinum                                     (000oz)      208         262       
Palladium                                    (000oz)      199         191       
Rhodium                                      (000oz)      42          47        
Nickel                                       (000t)       2.1         0.9       
Group consolidated statistics                                                   
Exchange rate:                               (R/$)                              
Closing rate on 30 June                                   7.93        7.06      
Average spot rate                                         7.26        7.19      
Average rate achieved                                     7.32        7.26      
Revenue per platinum ounce sold              ($/oz)       2 941       2 369     
                                            (R/oz)       21 528      17 057     
Prices achieved                                                                 
Platinum                                     ($/oz)       1 598       1 185     
Palladium                                    ($/oz)       390         334       
Rhodium                                      ($/oz)       6 963       5 152     
Nickel                                       ($/t)        30 253      34 486    
Sales volumes                                                                   
Platinum                                     (000oz)      1 739       1 827     
Palladium                                    (000oz)      885         870       
Rhodium                                      (000oz)      197         206       
Nickel                                       (000t)       12.5        16.3      
Financial ratios                                                                
Gross margin achieved                        (%)          47          46        
Return on equity*                            (%)          38          52        
Return on assets*                            (%)          32          19        
Debt to equity                               (%)          3           2         
Operating indicators                                                            
Tonnes milled ex-mine                        (000t)       20 380      20 732    
PGM refined production                       (000oz)      3 644       3 858     
Capital expenditure                          (Rm)         5 368       2 888     
Cost per platinum ounce**                    (R/oz)       7 750       6 370     
($/oz)       1 067       886        
Cost per platinum ounce***                   (R/oz)       6 930       5 921     
                                            ($/oz)       954         823        
* Based on headline earnings                                                    
** Including share based payments                                               
*** Excluding share based payments                                              
EXTRACT FROM ANNUAL REPORT                                                      
SAFETY                                                                          
Although safety performance at Impala Platinum Holdings Limited (Implats)       
improved in FY2008, regrettably there were 12 fatalities during the year        
compared to 13 in the previous reporting period - five at Impala Rustenburg,    
three at Marula, three at Zimplats and one at Mimosa. The board and all members 
of our team extend their sincere condolences to the families and friends of     
those employees.                                                                
The fatality rate improved by 19% whilst the lost-time injury frequency rate    
dropped to below three injuries per million man hours for the first time ever.  
Notwithstanding these achievements safety remains a priority for Implats and    
much remains to be done to achieve our goal of "zero harm". Key to success is   
the embedding of a culture of safety awareness at all levels of the organisation
and sustained vigilance in the workplace. We welcome the Presidential Safety    
Audits and indeed any other initiatives which may serve to improve our safety   
performance and that of the mining industry.                                    
The primary causes of incidents remain falls of ground (50%), folllowed by      
incidents related to explosives (26%). Specific action plans were compiled and  
implemented that include adherence to the highest working area safety standards 
and the identification of high-risk fall-of-ground conditions and sub-standard  
barring practices. A high turnover of supervisory level staff, and the          
subsequent employment of less experienced members had a deleterious effect on   
efforts to maintain safety further. As a consequence greater emphasis was placed
on the frequency and intensity of training sessions.                            
MARKET                                                                          
During CY2007 the platinum market remained in a supply deficit due to a         
combination of strong growth in demand coupled with a decline in supply,        
primarily from South Africa. The automotive sector remained the backbone of the 
industry with growth continuing to be driven by increasing light-duty vehicle   
sales in Europe and the tightening of legislation for heavy-duty diesel vehicles
worldwide. Demand was also boosted by further growth from industrial            
applications and by investment demand which benefited from the introduction of  
the new exchange trade funds (ETFs). Prices soared in late January - fuelled by 
the Eskom power crisis - and reached a record level of $2 276/oz in early March.
The euphoria associated with high platinum prices must however be tempered by   
the very real possibility that thrifting and substitution of platinum in        
autocatalysts must be at the forefront of research programmes globally. Whilst  
the fundamentals for the palladium market continued to improve another          
significant surplus was recorded and, coupled with above ground stocks, prices  
remained relatively benign. The rhodium market remained in deficit for a second 
successive year and this, in a thinly traded market, translated into further    
price appreciation.                                                             
The dramatic slowdown in world economies will see vehicle sales numbers being   
impacted, together with a shift to smaller more economical vehicles, and this   
will impact on total PGM demand in the coming year.                             
FINANCIAL RESULTS                                                               
Higher dollar metal prices, together with generally favourable exchange rates   
have materially benefited the group. Dollar revenues per platinum ounce sold    
rose by 24%, while rand revenues were 26% higher compared to the previous       
financial year.                                                                 
Key financial indicators pertaining to the business for the period under review 
include:                                                                        
Sales revenue was up 19% on FY2007, reaching a record R37.6 billion ($5.1       
billion).                                                                       
The average rand:dollar exchange rate achieved was R7.32/$ for the year, with   
the closing rand:dollar exchange rate at R7.93/$.                               
Cost of sales rose by 17% to R19.9 billion as a result of the significant       
increase in the cost of metals purchased due to higher metal prices, inflation  
and an increase in share based payment costs up in line with the share price at 
year end.                                                                       
Group unit cost per platinum ounce produced was up 17% (excluding share based   
payments) to R6 930/oz. Costs were adversely affected by a sharp rise in input  
costs associated with the retention of skills and slightly lower production.    
Gross margins for the Group improved to 47% from 46% in the previous year,      
while Impala improved to 65% from 62% in FY2007.                                
Gross profit increased to R17.7 billion ($2.4 billion) from the previous year.  
Headline earnings per share improved by 57% to 2 065 cents per share (278 US    
cents per share).                                                               
OPERATIONS                                                                      
Implats grappled with an extremely difficult operating environment dominated by 
safety issues, the power crisis and a sharply decreased availability of skills. 
Gross platinum production, excluding Lonmin ounces treated during FY2007, was   
higher by 2% to 1.9 million ounces during the past year. This represents a good 
performance in extremely trying circumstances.                                  
Impala Platinum                                                                 
Operationally it was another difficult year for our Rustenburg operations where 
the grade remained a challenge. The operation reported production of 1.044      
million platinum ounces, a decrease of 1% on the previous year. Tonnes mined    
declined largely due to the reduction in the volume of Merensky ore mined. This 
was a function of underperformance at mainly 12 and 14 shafts, where very       
difficult geological conditions were encountered.                               
Changes in the ore mix together with the deterioration in dilution, especially  
of the UG2 ore mined, and the increase in development tonnes resulted in the    
average grade mined declining to 4.64g/t from 4.71g/t (5PGE+Au).                
Various initiatives have been implemented to address and rectify the problems.  
Tonnes milled declined marginally to 15.9Mt on the back of lower Merensky       
volumes mined whilst recovery rates decreased to 82.9% largely as a function of 
the unfavourable ore mix supplied.                                              
The reduction in ounces due to the grade issue was exacerbated by the power     
crisis, additional public holidays, safety interruptions and the shortage of    
skills.                                                                         
Costs were adversely affected by the sharp increases in input costs and cost per
platinum ounce rose by 17% to R6 546/oz (excluding share based payments).       
Operational efficiency and cost management remain priorities going forward.     
In terms of capital projects the 16 shaft project remains on schedule. In March 
2008, the 17 shaft project was approved by the board and shaft sinking has      
begun. The 20 shaft project is currently around four months behind schedule     
largely due to poor contractor performance in turn impacted by the skills       
shortage. Expenditure on these shafts has been affected by the increased price  
of consumables. The smelter expansion which will, taken together with Zimplats` 
capacity, increase the group`s smelting capacity to 2.8Moz of platinum is       
proceeding on schedule for completion by December 2008.                         
The refineries continued to deliver an excellent performance, not only for      
Impala, but also for Impala Refining Services (IRS), which markets under        
utilised capacity from Impala. Expansion to increase capacity at the refineries 
to 2.8Moz by 2011 is on track.                                                  
Marula                                                                          
Production of platinum-in-concentrate at 70 400 ounces was behind schedule.     
Labour disputes and shaft closures following the fatal incidents negatively     
affected expected output. This was exacerbated by the problem of skills         
retention. Tonnes milled increased fractionally and the average head grade for  
the year was 4.44g/t largely owing to the higher grade ore mined at the Driekop 
shaft and the start of conventional production from the footwall project at     
Clapham.                                                                        
The Merensky project feasibility study has been completed and will be presented 
to the board in November. Its approval will be subject to a guaranteed supply of
power sufficient to operate both the existing mine and the planned Merensky     
project, and the resolution of outstanding community issues. Should this project
be approved, development will begin in FY2009 and will take total annual        
production at Marula to 245 000 oz of platinum by FY2016.                       
Zimplats                                                                        
Despite the problematic operating environment, Zimplats produced 94 300oz of    
platinum-in-matte, a 2.3% decline from the previous year. Open-cast and         
underground production both increased marginally. However, the grade fell to    
3.53g/t due to lower grade opencast tonnes. The start of production from portal 
1 (part of the phase 1 expansion project) helped to offset the reduced output   
from portal 2, the original underground trial mine, which experienced problems  
with equipment availability and power outages.                                  
The phase 1 expansion project continued during the year. The smelter was        
successfully refurbished and will operate at full capacity of 180 000oz of      
platinum annually on completion of the project in FY2011. Plant capacity is     
increased by 500 000 t per annum following modifications already undertaken. The
opencast operation has been extended to November 2008 to accommodate the        
additional capacity. Further extension of the opencast is under review. The     
extra tonnes will be stockpiled to supply the concentrator enabling it to run at
full capacity of 2Mt annually from May 2009, when production from portal 4 is to
begin ramping up.                                                               
Mimosa                                                                          
Mimosa produced 76 600oz of platinum-in-concentrate for FY2008. Tonnes mined    
increased marginally due to increased mechanisation. Tonnes milled were affected
by power outages in the second half of the year, the delay in the start up of   
the Wedza Phase V and mechanical problems related to the Wedza Phase IV mills. A
marginal decline in head grade was recorded (3.57g/t) as a slightly lower grade 
zone was mined. This impacted metallurgical recoveries which fell to 75.8%.     
Planned modifications to the plant were delayed due to contractor and supply    
problems. Commissioning had begun by year end and the design throughput, grind  
requirements and recoveries are achievable.                                     
Two Rivers                                                                      
The mine produced 98 600 oz of platinum-in-concentrate while tonnes milled rose 
16%. Full production was not achieved as originally scheduled due to industrial 
action towards the end of the previous year, and geological and geotechnical    
constraints. The split reef resulted in increased dilution and contributed to a 
decline in head grade to 3.99g/t. Steady state production of 130 000 oz of      
platinum-in-concentrate will be reached during the course of FY2010. Development
of the north decline progressed well and by year-end monthly underground        
production from both declines exceeded plant capacity. Metallurgical recoveries 
declined to 74.2% largely owing to the reduced head grade. A review of the plant
has highlighted potential improvements and these will be implemented. A         
stockpile of one month`s mill throughput is currently on hand.                  
Impala Refining Services                                                        
Total refined platinum production through IRS declined by 11.1% to 862 700oz in 
FY2008. However, this followed a surge in the volumes refined in FY2007 when    
concentrate refined on behalf of Lonmin made a significant contribution. Growth 
in output from Two Rivers and an increased supply of autocatalysts for recycling
were insufficient to compensate for reduced volumes from other sources due to   
the expiry of the offtake agreement with Aquarius Platinum South Africa`s       
Kroondal mine in FY2008 and the absence of the Lonmin concentrate for           
processing.                                                                     
Volumes of concentrate through IRS are expected to increase, particularly from  
the ramp ups at Zimplats, Marula, Eastern Platinum`s Crocodile River and        
Aquarius Platinum`s Everest mine, from contracts signed during FY2008 at Blue   
Ridge and Smokey Hills which are scheduled to begin production in FY2009, as    
well as from growth in autocatalyst recycling.                                  
Afplats                                                                         
The mining right for the Leeuwkop project was finally granted in April 2008.    
Much of the past year was spent completing preparatory work for shaft sinking   
and finalising a detailed mine design which is being revised. Indications are   
that mechanised footwall development with conventional stoping would be more    
suitable for the orebody than the mechanised bord and pillar method originally  
proposed. A detailed project proposal will be presented to the board later in   
the year. The revision of the mining plan together with the delay in the        
granting of the mining right has pushed the project`s timeline out by at least  
two years.                                                                      
Leeuwkop`s current power allocation from Eskom is sufficient for shaft sinking  
and planned development including the underground infrastructure. Negotiations  
are under way to secure the additional power required to operate the underground
mine and the surface refrigeration and concentrator plants.                     
As a consequence of the longer lead time and the higher costs associated with   
the development of a conventional stoping operation coupled with the rapid      
escalation in project input costs, capital expenditure for the revised project  
is currently estimated at R6 billion (in real terms).                           
Corporate activity                                                              
Shareholders will be well rewarded this financial year with some R8.9 billion   
($1.2 billion) to be returned by way of dividends. The dividend cover for the   
group has been adjusted to 1.4 times (previously 1.7 times) earnings.           
During the year, the group disposed of its holdings in both Aquarius Platinum   
Limited and Aquarius Platinum (South Africa) (Proprietary) Limited for an amount
of R5 692 million, in a restructuring exercise that was predicated upon on      
assessment of the outlook for that company. These proceeds will be applied      
towards our ambitious growth objectives.                                        
We successfully secured our mining rights conversions for Impala and Marula, and
obtained our mining rights for the Leeuwkop project. In addition, Marula        
enhanced its black economic empowerment credentials by concluding agreements    
with its three partners which saw them increasing their stakes in the company to
9% each, resulting in a composite BEE holding of 27%.                           
STRATEGIC ISSUES                                                                
Implats will remain a primary platinum producing company. Growth is integral to 
the group strategic direction, not only in terms of ounces, but also in the     
realisation of value. There are essentially four avenues of growth:             
Organic growth from current assets - much of this growth is expected from       
Marula, Two Rivers, Afplats, Mimosa and Zimplats                                
Acquisitions - Implats will continue to seek future sources of production that  
will increase its resource base and increase the organic growth pipeline.       
Recycling - the group will continue to be a relevant player in the recycling    
sector. In addition, third party treatment opportunities, through Impala        
Refining Services, remain a positive avenue for growth.                         
Exploration - a key aspect of future growth.                                    
PROSPECTS                                                                       
The focus in the year ahead will be on safety, the retention of skills and      
increasing production. We anticipate platinum production increasing in FY2009 as
our ramp-up projects continue to grow. Cost pressures will continue and cost    
increases are likely to be higher than in FY2008. Capital expenditure is        
expected to rise to R8 billion in the year ahead.                               
We anticipate the market to move closer to balance in the short-term. While     
global jewellery demand - for both platinum and palladium - has fallen in       
response to higher price levels, and the fuel price is steering the choice of   
vehicles towards smaller cars in the United States and Europe, car sales in     
China, India and elsewhere in Asia remain strong. Despite the current economic  
slowdown, demand fundamentals remain sound in the medium to long-term.          
Fred Roux              David Brown                                              
Chairman               Chief Executive Officer                                  
Johannesburg           28 August 2008                                           
Declaration of Final cash Dividend                                              
A final cash dividend of 1 175 cents per share has been declared in respect of  
the year ended 30 June 2008. The last day to trade ("cum" the dividend) in order
to participate in the dividend will be Friday, 12 September 2008. The share will
commence trading "ex" the dividend from the commencement of business on Monday, 
15 September 2008 and the record date will be Friday, 19 September 2008.        
The dividend is declared in the currency of the Republic of South Africa.       
Payments from the London transfer office will be made in United Kingdom currency
at the rate of exchange ruling on Thursday, 18 September 2008 or on the first   
day thereafter on which a rate of exchange is available.                        
The dividend will be paid on Monday, 22 September 2008. Share certificates may  
not be for dematerialised/rematerialised during the period Monday, 15 September 
2008 to Friday, 19 September 2008, both dates inclusive.                        
By order of the board                                                           
A Parboosing                                                                    
Company Secretary                                                               
Johannesburg                                                                    
28 August 2008                                                                  
CORPORATE INFORMATION                                                           
Registered Office                                                               
2 Fricker Road, Illovo 2196                                                     
(Private Bag X18, Northlands 2116)                                              
Sponsor                                                                         
Deutsche Securities (SA) (Pty) Limited                                          
Transfer Secretaries                                                            
South Africa:                                                                   
Computershare Investor Services (Pty) Limited                                   
70 Marshall Street, Johannesburg 2001                                           
(PO Box 61051, Marshalltown 2107)                                               
United Kingdom:                                                                 
Computershare Investor Services PLC                                             
The Pavilons, Bridgwater Road, Bristol, BS13 8AE                                
Directors:                                                                      
FJP Roux (Chairman), DH Brown (Chief Executive Officer), S Bessit, D Earp, F    
Jakoet, JM McMahon*, MV Mennell, TV Mokgatlha, K Mokhele, NDB Orleyn, LJ Paton, 
DS Phiri LC van Vught.          *British                                        
A copy of the annual report is available on the company`s website:              
http://www.implats.co.za                                                        
Alternatively please contact the Company Secretary, via e-mail at               
avanthi.parboosing@implats.co.za or by post at Private Bag X18, Northlands 2116,
South Africa. Telephone: (011) 731 9000                                         
Empowering our people, growing our production                                   
Sponsor to Implats                                                              
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 28/08/2008 08:00:02 Produced by the JSE SENS Department.                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.