IMP - Implats - Consolidated Interim Results For T19 Feb 2009
IMP
IMPO                                                                            
IMP - Implats - Consolidated Interim Results For The Six Months Ended 31        
December 2008                                                                   
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 group" or "the company")                                     
CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2008          
KEY FEATURES                                                                    
* Improved safety performance                                                   
* Significant falls in PGM prices offset by a weaker exchange rate              
* Lower production at Impala Rustenburg                                         
* Cost increases exacerbated by lower volumes                                   
* Capital expenditure at R3.9 billion                                           
* Cash preservation paramount                                                   
Statement of financial position                                                 
(All amounts in              As at         As at        As at                   
Rand million                 31 December   31 December  30 June                 
unless otherwise             2008          2007         2008                    
stated)               Notes  (Unaudited)   (Unaudited)  (Audited)               
Assets                                                                          
Non-current assets                                                              
Property, plant and   5      24 532        17 894       20 601                  
equipment                                                                       
Exploration and       5      4 294         4 318        4 294                   
evaluation assets                                                               
Intangible assets     5      1 018         1 018        1 018                   
Investments in               1 003         1 528        1 038                   
associates                                                                      
Available-for-sale           41            1 678        56                      
financial assets                                                                
Held-to-maturity             47            121          47                      
financial assets                                                                
Other receivables            12 355        12 587       12 551                  
and prepayments                                                                 
                            43 290        39 144       39 605                   
Current assets                                                                  
Inventories                  4 117         4 700        5 893                   
Trade and other              7 054         5 504        6 218                   
receivables                                                                     
Cash and cash                4 272         2 263        10 393                  
equivalents                                                                     
15 443        12 467       22 504                   
Total assets                 58 733        51 611       62 109                  
Equity and                                                                      
liabilities                                                                     
Equity attributable                                                             
to owners of the                                                                
parent                                                                          
Share capital                14 039        14 837       14 750                  
Retained earnings            27 200        17 913       29 024                  
Other components of          235           729          (356)                   
equity                                                                          
                            41 474        33 479       43 418                   
Non-controlling              1 935         1 748        1 885                   
interest                                                                        
Total equity                 43 409        35 227       45 303                  
Liabilities                                                                     
Non-current                                                                     
liabilities                                                                     
Long-term borrowings  6      1 727         857          1 464                   
Deferred tax                 6 768         5 512        5 247                   
liability                                                                       
Long-term provisions  7      705           1 011        1 548                   
                            9 200         7 380        8 259                    
Current liabilities                                                             
Trade and other              5 305         5 808        6 914                   
payables                                                                        
Current tax payable          638           1 402        1 183                   
Short-term            6      53            1 614        46                      
borrowings                                                                      
Current portion of    7      128           180          404                     
long-term provisions                                                            
                            6 124         9 004        8 547                    
Total liabilities            15 324        16 384       16 806                  
Total equity and             58 733        51 611       62 109                  
liabilities                                                                     
Income statement                                                                
For the       For the      For the                  
                            Six months    Six months   year                     
(All amounts                 ended         ended        ended                   
in Rand million              31 December   31 December  30 June                 
unless otherwise             2008          2007         2008                    
stated)                Notes (Unaudited)   (Unaudited)  (Audited)               
Revenue                4      16 243        16 323       37 619                 
Cost of sales          8      (8 817)       (8 697)      (19 888)               
Gross profit           4      7 426         7 626        17 731                 
Other operating               (166)         (207)        (533)                  
expenses                                                                        
Royalty expense               (318)         (314)        (648)                  
Profit from                   6 942         7 105        16 550                 
operations                                                                      
Finance income                845           286          689                    
Finance cost                  (87)          (82)         (155)                  
Net foreign exchange          522           (220)        439                    
transaction                                                                     
gains/(losses)                                                                  
Other expense                 (90)          (34)         (215)                  
Profit on sale of             -            -             4 831                  
investments                                                                     
Share of profit of            64            281          678                    
associates                                                                      
Profit before tax             8 196         7 336        22 817                 
Income tax expense            (2 939)       (2 646)      (5 112)                
Profit for the period         5 257         4 690        17 705                 
from continuing                                                                 
operations                                                                      
Profit attributable                                                             
to:                                                                             
Owners of the parent          5 286         4 660        17 596                 
Non-controlling               (29)          30           109                    
interest                                                                        
                             5 257         4 690        17 705                  
Earnings per share                                                              
(expressed in cents                                                             
per share - cps)                                                                
Basic                         877           771          2 910                  
Diluted                       877           770          2 907                  
Dividends to group                                                              
shareholders (cps)                                                              
Interim dividend       10    120            300          300                    
Final dividend         10                                1 175                  
Statement of total comprehensive income                                         
(All amounts in Rand millions unless otherwise stated)                          
                              Fair value      Translation                       
                              adjustments     of foreign                        
of investments  subsidiaries     Total            
For the six months ended                                                        
31 December 2007 (Unaudited)                                                    
Profit for the period                                                           
Other comprehensive income for                                                  
the period, net of taxation:                                                    
Fair value adjustment          120                              120             
Deferred tax thereon           (17)                             (17)            
Currency translation reserve                   (87)             (87)            
Deferred tax thereon                           25               25              
Total comprehensive income for 103             (62)             41              
the period                                                                      
Attributable to:                                                                
Owners of the parent           103             (50)             53              
Non-controlling interest                       (12)             (12)            
                              103             (62)             41               
For the six months ended                                                        
31 December 2008 (Unaudited)                                                    
Profit for the period                                                           
Other comprehensive income for                                                  
the year, net of taxation:                                                      
Fair value adjustment          (29)                             (29)            
Deferred tax thereon           4                                4               
Currency translation reserve                   970              970             
Deferred tax thereon                           (275)            (275)           
Total comprehensive income for (25)            695              670             
the period                                                                      
Attributable to:                                                                
Owners of the parent           (25)            616              591             
Non-controlling interest                       79               79              
                              (25)            695              670              
                                         Retained                               
earnings       Total                   
For the six months ended                                                        
31 December 2007 (Unaudited)                                                    
Profit for the period                     4 690          4 690                  
Other comprehensive income for the                                              
period, net of taxation:                                                        
Fair value adjustment                                    120                    
Deferred tax thereon                                     (17)                   
Currency translation reserve                             (87)                   
Deferred tax thereon                                     25                     
Total comprehensive income for the        4 690          4 731                  
period                                                                          
Attributable to:                                                                
Owners of the parent                      4 660          4 713                  
Non-controlling interest                  30             18                     
                                         4 690          4 731                   
For the six months ended                                                        
31 December 2008 (Unaudited)                                                    
Profit for the period                     5 257          5 257                  
Other comprehensive income for                                                  
the year, net of taxation:                                                      
Fair value adjustment                                    (29)                   
Deferred tax thereon                                     4                      
Currency translation reserve                             970                    
Deferred tax thereon                                     (275)                  
Total comprehensive income for the        5 257          5 927                  
period                                                                          
Attributable to:                                                                
Owners of the parent                      5 286          5 877                  
Non-controlling interest                  (29)           50                     
                                         5 257          5 927                   
Cash flow statement                                                             
For the       For the      For the                  
                            Six months    Six months   year                     
                            ended         ended        ended                    
                            31 December   31 December  30 June                  
(All amounts in Rand million 2008          2007         2008                    
unless otherwise stated)     (Unaudited)   (Unaudited)  (Audited)               
Cash flows from operating                                                       
activities                                                                      
Profit before tax             8 196         7 336        22 817                 
Adjustments to profit before  (2 155)       322          (3 299)                
tax                                                                             
Cash from changes in working  839           (1 980)      (3 105)                
capital                                                                         
Finance cost                  (69)          (48)         (92)                   
Income tax paid               (2 317)       (2 136)      (5 080)                
Net cash from operating       4 494         3 494        11 241                 
activities                                                                      
Cash flows from investing                                                       
activities                                                                      
Purchase of property, plant   (3 884)       (2 363)      (5 291)                
and equipment                                                                   
Proceeds from sale of         33            2            49                     
property, plant and                                                             
equipment                                                                       
Increase in investments in    -             (32)         (9)                    
associates                                                                      
Proceeds from investments     -             -            5 692                  
disposed                                                                        
Purchase of listed            (7)           -            (39)                   
investments                                                                     
Payment received from         99            202          235                    
associate on shareholders                                                       
loan                                                                            
Loan repayments received      28            -            -                      
Realisation of held-to-       -             -            83                     
maturity investment                                                             
Finance income                628           285          559                    
Net cash (used in)/from       (3 103)       (1 906)      1 279                  
investing activities                                                            
Cash flows from financing                                                       
activities                                                                      
Issue of ordinary shares,     12            25           190                    
net of cost                                                                     
Purchase of treasury shares   (724)        -             (254)                  
Lease liability paid          (8)           (9)          (21)                   
Repayments of borrowings      (39)          (3)          (6)                    
Proceeds from borrowings      220           1 706        691                    
Dividends paid to company`s   (7 110)       (4 230)      (6 055)                
shareholders                                                                    
Net cash used in financing    (7 649)       (2 511)      (5 455)                
activities                                                                      
Net (decrease)/increase in    (6 258)       (923)        7 065                  
cash and cash equivalents                                                       
Cash and cash equivalents at  10 393        3 218        3 218                  
beginning of year                                                               
Effects of exchange rate      137           (32)         110                    
changes on monetary assets                                                      
Cash and cash equivalents at  4 272         2 263        10 393                 
end of year                                                                     
The notes are an integral part of this condensed interim financial              
information                                                                     
Statement of changes in equity                                                  
                                   Share                                        
                                   capital                Other                 
and                    compo-                
(All amounts in Rand millions       share        Retained  nents                
unless otherwise stated)            premium      earnings  of equity            
Balance at 30 June 2007              14 809       17 483    676                 
Change in share capital              28                                         
Total comprehensive income for the                4 660     53                  
period                                                                          
Dividends (note 10)                               (4 230)                       
Balance at 31 December 2007          14 837       17 913    729                 
(Unaudited)                                                                     
Balance at 30 June 2008              14 750       29 024    (356)               
Change in share capital              (711)                                      
Total comprehensive income for the                5 286     591                 
period                                                                          
Dividends (note 10)                               (7 110)                       
Balance at 31 December 2008          14 039       27 200    235                 
(Unaudited)                                                                     
                               Attribu-                                         
                               table                                            
(All amounts in                 to owners      Non                              
Rand millions                   of the         controlling    Total             
unless otherwise stated)        parent         interest       equity            
Balance at 30 June 2007          32 968         1 730          34 698           
Change in share capital          28                            28               
Total comprehensive income for   4 713          18             4 731            
the period                                                                      
Dividends (note 10)             (4 230)                        (4 230)          
Balance at 31 December 2007      33 479         1 748          35 227           
(Unaudited)                                                                     
Balance at 30 June 2008          43 418         1 885          45 303           
Change in share capital          (711)                         (711)            
Total comprehensive income for   5 877          50             5 927            
the period                                                                      
Dividends (note 10)              (7 110)                       (7 110)          
Balance at 31 December 2008      41 474         1 935          43 409           
(Unaudited)                                                                     
Notes                                                                           
1  General information                                                          
The Company is a limited liability company incorporated and domiciled in        
South-Africa. The address of its registered office is 2 Fricker Road, Illovo    
2196.                                                                           
The Company has its primary listing on the JSE Limited.                         
The consolidated interim financial information was approved for issue on 19     
February 2009.                                                                  
2  Basis of preparation                                                         
The consolidated interim financial information for the six months ended 31      
December 2008 has been prepared in accordance with IAS 34, `Interim Financial   
Reporting`. The consolidated interim financial information should be read in    
conjunction with the annual financial statements for the year ended 30 June     
2008, which have been prepared in accordance with IFRS.                         
3  Accounting policies                                                          
The accounting policies applied are consistent with those of the annual         
financial statements for the year ended 30 June 2008, as described in those     
annual financial statements.                                                    
Taxes on income in the interim periods are accrued using the tax rate that      
would be applicable to expected total annual earnings.                          
IAS 34 Interim Financial Reporting (latest effective date July 2009) was        
early adopted. All consequential amendments have been adopted as from 1 July    
2008. The impact on Implats has been on disclosure only.                        
4  Segment information                                                          
The group distinguishes its segments between mining operation and refining      
services which include metals purchased and toll refined.                       
Operating segments have consistently adopted the consolidated basis of          
accounting and there are no differences in measurement applied.                 
Summary of business segments:                                                   
(All amounts in Rand million unless otherwise stated)                           
          Six months ended    Six months ended   Year ended                     
          31 December 2008    31 December 2007   30 June 2008                   
*Gross              *Gross            *Gross                
          Revenue   profit    Revenue   profit  Revenue   profit                
Mining                                                                          
Impala     9 741     6 107     9 670     5 975   20 889    13 544               
Marula     116       213       720       278     1 827     745                  
Zimplats   369       194       688       373     2 132     964                  
Mimosa     263       233       387       213     958       541                  
Total      10 489    6 747     11 465    6 839   25 806    15 794               
mining                                                                          
Refining   6 220     707       6 740     848     15 704    1 883                
services                                                                        
Inter       (466)    (28)       (1 882)  (61)     (3 891)  (54)                 
segment                                                                         
adjustment                                                                      
Total      16 243    7 426     16 323    7 626   37 619    17 731               
        Capital             Capital            Capital                          
expendi-  Total     expendi-  Total    expendi-  Total                  
        ture      assets    ture      assets   ture      assets                 
Mining                                                                          
Impala   2 704     34 853    1 527     28 701   3 415     38 922                
Marula   326       2 639     181       3 040    345       1 970                 
Afplats  107       7 187     24        6 996    145       7 110                 
Zimplats 640       5 218     627       3 345    1 319     3 583                 
Mimosa   101       1 699     44        1 282    144       1 287                 
Total    3 878     51 596    2 403     43 364   5 368     52 872                
mining                                                                          
Refining           5 816               6 719              8 053                 
services                                                                        
Other              1 321               1 528              1 184                 
Total    3 878     58 733    2 403     51 611   5 368     62 109                
* including intercompany adjustments.                                           
5  Property, plant and equipment, exploration and evaluation, and intangible    
assets                                                                          
Selected six months non-current asset movements are presented below:            
                                         Exploration                            
                             Property,   and                                    
(All amounts in Rand million  plant and   evaluation   Intangible               
unless otherwise stated)      equipment   assets       assets                   
Six months ended 31 December                                                    
2007                                                                            
Opening net book amount as at  16 029      4 318        1 020                   
1 July 2007                                                                     
Exchange adjustment on         (87)                                             
translation                                                                     
Purchase price adjustment                               (2)                     
Additions                      2 403                                            
Depreciation, amortisation     (443)                                            
and other movements                                                             
Disposals                      (8)                                              
Closing net book amount as at  17 894      4 318        1 018                   
31 December 2007                                                                
Six months ended 31 December                                                    
2008                                                                            
Opening net book amount as at  20 601      4 294        1 018                   
1 July 2008                                                                     
Exchange adjustment on         654                                              
translation                                                                     
Additions                      3 878                                            
Depreciation and amortisation  (569)                                            
Disposals                      (32)                                             
Closing net book amount as at  24 532      4 294        1 018                   
31 December 2008                                                                
Non-financial assets that have an indefinite life are not subject to            
amortisation, but are tested for impairment annually at 30 June (financial      
year end) or when there is any indication of impairment. There was no           
impairment for non-financial assets during the period.                          
6  Long-term borrowings                                                         
Borrowings from Standard Bank Limited:                                          
loans obtained by Black Economic Empowerment (BEE) partners for purchasing a    
27% (June 2008: 27%) share in Marula Platinum (Proprietary) Limited amounting   
to R717 million (June 2008: R755 million). The loans consist of a term loan     
which carries interest at the Johannesburg Interbank Acceptance Rate (JIBAR)    
plus 90 basis points and a revolving credit facility amounting to R56 million   
(June 2008: R57 million), which carries interest at JIBAR plus 100 basis        
points. The loans will be repaid by financial year 2020.                        
The BEE partnership in Marula is consolidated as the loans are guaranteed by    
Implats.                                                                        
a loan facility of R750 million (US$80 million) (June 2008: R635 million        
(US$80 million)) was obtained to finance partially the Ngezi Phase One          
expansion at Zimplats. An amount of R710 million (US$76 million) (June 2008:    
R404 million (US$51 million)) of this facility was drawn at the end of the      
period. The loan carries interest at London Interbank Offering Rate (LIBOR)     
plus 700 basis points. It is repayable in 12 equal quarterly instalments        
starting December 2009 and will be repaid by December 2012. This loan is        
secured by sessions over cash, debtors and revenues of Zimplats Mines (Pvt)     
Limited.                                                                        
7  Long-term provisions                                                         
The decrease in long-term provisions is attributable to the reduction in the    
cash-settled share based payment provision as it is based on the company`s      
share price.                                                                    
8  Cost of sales                                                                
                             Six months    Six months   Year                    
ended         ended        ended                   
(All amounts in Rand millions 31 December   31 December  30 June                
unless otherwise stated)      2008          2007         2008                   
On mine operations            3 068         3 395        7 303                  
Concentrating and smelting    978           722          1 478                  
operations                                                                      
Refining operations           252           315          670                    
Amortisation of operating     569           451          1 013                  
assets (note 5)                                                                 
Metals purchased              1 939         4 458        11 012                 
Decrease/(increase) in metal  2 011          (644)        (1 588)               
inventories                                                                     
8 817         8 697        19 888                  
9  Headline earnings                                                            
Headline earnings per share is disclosed as required by the JSE Limited.        
Earnings attributable to equity holders of the company arises from operations   
as follows:                                                                     
                             Six months    Six months    Year                   
                             ended         ended         ended                  
(All amounts in Rand millions 31 December   31 December   30 June               
unless otherwise stated)      2008          2007          2008                  
The calculation for headline                                                    
earnings per share is based                                                     
on the earnings per share                                                       
calculation adjusted for the                                                    
following items:                                                                
Profit attributable to owners 5 286         4 660         17 596                
of the parent                                                                   
Adjustments net of tax:                                                         
Profit on disposal of         (1)                         (4)                   
property, plant and equipment                                                   
Impairment of Zimplats BMR                                74                    
Profit on sale of investments                             (5 181)               
                             5 285         4 660         12 485                 
Headline earnings per share                                                     
(cents)                                                                         
Basic                         877           771           2 065                 
Diluted                       876           770           2 062                 
The issued share capital of                                                     
the holding company                                                             
is as follows (millions):                                                       
Number of shares issued       631.58        630.90        631.58                
Treasury shares               (16.23)       (9.85)        (10.67)               
Morokotso Trust               (15.56)       (16.43)       (15.61)               
Implats Share Incentive Trust (0.20)        (0.16)        (0.27)                
Number of shares issued       599.59        604.46        605.03                
outside the group                                                               
Adjusted for weighted shares  3.01          (0.24)        (0.38)                
issued during the year                                                          
Weighted average number of    602.60        604.22        604.65                
ordinary shares in issue                                                        
Adjustment for share option   0.45          1.01          0.59                  
scheme                                                                          
Weighted average number of    603.05        605.23        605.24                
ordinary shares for diluted                                                     
earnings per share                                                              
10  Dividends per share                                                         
At the board meeting on 19 February 2009, an interim cash dividend in respect   
of 2009 of 120 cents per share amounting to R720 million was declared.          
The final dividend of R7 110 million (2007: R4 230 million) was paid during     
the period.                                                                     
11  Guarantees                                                                  
As at December 2008 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. Total guarantees decreased by R25 million during the six months to an    
amount of R504 million (June 2008: R529 million).                               
12  Capital commitments and derivative exposure                                 
Capital expenditure approved at 31 December 2008 amounted to R17.8 billion      
(June 2008: R20.6 billion), of which R3.8 billion (June 2008: R3.7 billion)     
is already committed. This expenditure will be funded internally and if         
necessary, from borrowings.                                                     
With regard to derivative instruments, the group, from time to time, sells      
refined metal, held on behalf of third parties, into the market with a          
commitment to repurchase the metal at a later date. The fair value of the       
commitment as at 31 December 2008 amounts to R247 million (June 2008: R318      
million).                                                                       
13  Net asset value                                                             
Net asset value based on the number of ordinary shares issued outside the       
group is 6 917 cps (June 2008: 7 177 cps).                                      
Operating Statistics                                                            
                      Six months   Six months            Year                   
                      ended        ended                 ended                  
                      31 December  31 December   %       30 June                
2008         2007          change  2008                   
Gross                                                                           
refined                                                                         
production                                                                      
Platinum     (000oz)   878          1 031         (14.8)  1 907                 
Palladium    (000oz)   474          573           (17.3)  1 044                 
Rhodium      (000oz)   128          133           (3.8)   261                   
Nickel       (000t)    7.3          8.3           (12.1)  14.8                  

IRS metal                                                                       
returned                                                                        
(toll                                                                           
refined)                                                                        
Platinum     (000oz)   93           112           (16.9)  208                   
Palladium    (000oz)   85           103           (17.5)  199                   
Rhodium      (000oz)   17           23            (26.1)  42                    
Nickel       (000t)    1.1          1.3           (15.4)  2.1                   
                                                                                
Sales                                                                           
volumes                                                                         
Platinum     (000oz)   806          896           (10.0)  1 739                 
Palladium    (000oz)   427          466           (8.4)   885                   
Rhodium      (000oz)   89           106           (16.0)  197                   
Nickel       (000t)    5.3          6.5           (18.5)  12.5                  

Prices                                                                          
achieved                                                                        
Platinum     ($/oz)    1 369        1 352         1.3     1 598                 
Palladium    ($/oz)    310          355           (12.7)  390                   
Rhodium      ($/oz)    5 890        6 063         (2.9)   6 963                 
Nickel       ($/t)     16 589       32 228        (48.5)  30 253                
                                                                                
Consolidated                                                                    
statistics                                                                      
Average rate (R/$)     8.31         6.91          20.3    7.32                  
achieved                                                                        
Closing rate (R/$)     9.37         6.79          37.9    7.93                  
for the                                                                         
period                                                                          
Revenue per  ($/oz)    2 408        2 622         (8.2)   2 941                 
platinum                                                                        
ounce sold                                                                      
            (R/oz)    20 010       18 118        10.4    21 528                 
Tonnes       (000t)    10 503       10 855        (3.2)   20 380                
milled ex-                                                                      
mine                                                                            
PGM refined  (000oz)   1 717        1 979         (13.2)  3 644                 
production                                                                      
Capital      (Rm)      3 878        2 403         61.4    5 368                 
expenditure                                                                     
Group unit                                                                      
cost per                                                                        
platinum                                                                        
ounce                                                                           
Excluding    ($/oz)    983          914           (7.5)   954                   
share based                                                                     
cost                                                                            
            (R/oz)    8 681        6 340         (36.9)  6 930                  
Including    ($/oz)    791          970           18.5    1 067                 
share based                                                                     
cost                                                                            
            (R/oz)    6 986        6 722         (3.9)   7 750                  
Additional statistical information is available on the company`s internet       
website.                                                                        
Introduction                                                                    
Given the current market environment and the short-term outlook, cash           
preservation is paramount. This has involved reviewing our project pipeline,    
capital expenditure and operating costs. Given the current market demand, it    
was deemed prudent to defer long lead projects resulting in a lower outlay of   
approximately R10 billion on our previous announced programme of R30 billion.   
Capital expenditure has been closely scrutinised and the decision taken to      
continue with 16, 17 and 20 shafts at the Impala Platinum operations, as well   
as Zimplats Phase 1 expansion. Operating expenditure is being cut on an         
ongoing basis in order to ensure all ounces remain profitable.                  
Market Overview                                                                 
2008 can only be characterised as a year of two halves, with the first half     
dominated by supply concerns, driven in part by the Eskom crisis, whilst the    
second half was victim of the credit crisis and massive deleveraging of         
commodities by consumers and hedge funds. What was initially expected to be a   
very tight year in the platinum market, turned around dramatically as demand,   
which shrunk on the back of lower vehicle sales, was offset by lower            
supplies, despite an increase in recycled metal from the Japanese jewellery     
industry. South African supply disappointed once again with a 13.1% drop from   
2007.                                                                           
Demand from all major sectors was lower during the year with the exception we   
believe, of the Chinese jewellery market, which has taken advantage of          
significantly lower prices. Having reached over $2 200/oz during March 2008,    
prices plunged to below $800/oz during October, but have managed to recoup      
some of these losses to end the year just below $900/oz.                        
As with platinum, palladium demand was also down on a fundamental basis, and    
only purchases by the Exchange Traded Funds kept the market from further        
falls. As the US, European and Japanese auto markets suffered double digit      
declines, growth in "other" areas of the world was insufficient to cushion      
the impact of these declines. Further destocking of palladium by the Russians   
ensured the high price of $580/oz in February 2008 was not sustainable and      
the price retreated to below $200/oz by year end.                               
Rhodium was perhaps the biggest victim of its own rise as the move above $10    
000/oz saw significant thrifting and subsequent destocking by the car           
companies in a move to generate cash, leaving the metal some 90% below its      
all time high.                                                                  
Safety                                                                          
Ensuring a safe and healthy working environment at Implats is a key strategic   
objective for the company. We fully support the Department of Minerals and      
Energy`s (DME) focus on safety and we are working with the DME`s inspectors     
to ensure that there is better compliance and understanding in order to         
improve our safety performance and to limit the unnecessary section 54          
closures which have occurred in the past six months.                            
Despite an improvement in our safety performance with the lost time injury      
frequency rate (LTIFR) down by 2.4% from the previous financial year to 2.85    
sadly six people lost their lives during the course of work in the six months   
to December 2008. The board and management extend their sincere condolences     
to the family and friends of our colleagues.                                    
Falls of ground accounted for two fatalities but the most common root cause     
of all fatalities has been our failure as a company to ensure all our           
employees, including our supervisors and managers, adhere to codes of           
practice and procedures. The company has robust safety programmes and           
excellent codes of practice and procedures in place which will contribute to    
improvements in safety, but our compliance with these remains a problem.        
We have, in conjunction with our health and safety representatives, been        
gaining a better understanding of the impact of a risk taking culture and       
this understanding is forming new strategies and initiatives to change that     
mindset.                                                                        
Operational Review                                                              
Production and cost performance have been extremely disappointing in the        
first half. Gross platinum production for the group declined by 14.8% to 878    
000 ounces impacted by decreased production from Impala Platinum and IRS, the   
latter due to reduced deliveries from third parties. The lower throughput       
when combined with ongoing high inflationary pressures resulted in unit costs   
increasing by 36.9% to R8 681 per platinum ounce excluding share based          
payments (R6 986 per platinum ounce including share based payments, a 3.9%      
increase from the six month period ending 31 December 2007).                    
The shortage of supervisory skills continues to affect our business, although   
there has been a slowing in turnover as the global economic crisis has          
tempered demand. We continue with various retention strategies specifically     
focusing on miners, artisans, shift supervisors and engineers.                  
IMPALA PLATINUM                                                                 
Although the LTIFR improved by 3.2% the safety performance at Impala Platinum   
was disappointing with six fatalities during the period. The main issues are    
insufficient supervisory intervention and the lack of employee compliance       
with standards and procedures.                                                  
Platinum production at Impala was down 10.5% to 515 500 ounces due to a lack    
of focus on on-reef development at third generation shafts. To address this     
and other mining issues a new mining management structure was implemented in    
December 2008. Development contractors are being replaced with our own          
employees to drive improvement in this area. Safety stoppages resulted in a     
loss of around 10 000 ounces of platinum during the period.                     
Tonnes milled were down 4.8% to 8 134 million as a result of under delivery.    
Lack of on-reef development was the main contributor to the poor performance.   
Headgrade deteriorated 5.4% from 3.90 g/t to 3.69 g/t due to limited Merensky   
face availability and poor efficiencies due to the failure to complete the      
mining cycle. The issue is being closely monitored and an action plan to        
address the problem has been implemented. Results are expected to take 18 to    
24 months.                                                                      
The refining operation was influenced by the decrease in deliveries and gross   
refined PGM production declined 13% from the previous reporting period.         
The unit cost per platinum ounce rose by 36.4% to R8 078 per platinum ounce     
excluding share based payments. The increase was due to lower production and    
the ongoing impact of high inflationary increases which continued to feed       
through this period.                                                            
Capital expenditure rose by 77.3% to R2.7 billion. Sinking operations           
commenced at 17 shaft while 16 and 20 shafts remained under development.        
MARULA                                                                          
While safety from a fatality perspective was excellent during the period, the   
LTIFR deteriorated from 1.52 to 2.01.                                           
The planned ramp up in production has fallen behind schedule due to a           
combination of safety stoppages and illegal industrial action in the current    
period. This is reflected in tonnes milled, only improving by 2.6% to 781 000   
which resulted in a corresponding increase in platinum production in            
concentrate to 36 400 ounces.                                                   
Unit cost per platinum ounce climbed 31.3% to R11 841 driven by the high        
inflationary environment and lower than planned production which was 13.1%      
below budget. The ramp up to full production will be achieved in FY2011.        
ZIMPLATS                                                                        
Despite an extremely challenging operating environment Zimplats continued to    
deliver outstanding performances in all areas of operation. The LTIFR was       
maintained at 0.62. Tonnes milled were essentially unchanged half year on       
half year. Platinum in matte production rose 15.0% from 40 800 ounces in the    
six months to December 2007 to 46 900 ounces due to the planned maintenance     
to the furnace in the previous period. Unit cost per platinum ounce increased   
by 5.1% in dollar terms to $1 350 influenced by impact of more expensive        
opencast operation, transportation and higher proportion of dollar              
denominated costs.                                                              
Work on the Phase 1 expansion is ongoing. The concentrator will be              
commissioned in April 2009 and full production of 180 000 ounces of platinum    
per annum remains on schedule for FY2010.                                       
MIMOSA                                                                          
Mimosa also maintained an excellent safety performance. Tonnes milled rose by   
13.3% to 1 014 000 and platinum production increased by 11.1% to 44 000         
ounces in concentrate. Exchange rate variances had the major impact on costs    
and the unit cost per platinum ounce escalated by 18.0% in dollar terms to      
$955.                                                                           
TWO RIVERS                                                                      
The operation which produced 58 000 ounces of refined platinum, has completed   
its mining ramp-up to full production of 120 000 ounces of platinum per         
annum.                                                                          
IMPALA REFINING SERVICES                                                        
Production at IRS declined by 20.4% to 363 000 ounces of platinum. The lower    
volumes resulted from reduced deliveries from Aquarius Platinum ("AQP")         
primarily due to the cessation of the offtake agreement with their Kroondal     
mine coupled with lower deliveries from Everest, Marikana and autocatalyst      
material.                                                                       
Financial Review                                                                
Revenue for the period ending December 2008 reduced by 0.5% to R16.2 billion    
(US$1.96 billion) from R16.3 billion (US$2.36 billion) for the comparative      
period ending December 2007. The variance analysis of the sales differential    
is as follows:                                                                  
Sales volumes: a 11.2% decline in sales volumes resulted in a negative          
volume variance of R1.8 billion.                                                
Dollar revenues per platinum ounce decreased by 8.2% to $2 408/oz. Overall      
PGM prices were 5.8% lower and contributed to a negative price variance of      
R947 million;                                                                   
The average exchange rate achieved for the six months was R8.31/$ (2007:        
R6.91/$) resulting in a positive exchange rate variance of R2.7 billion.        
Cost of sales rose marginally by 1.4% to R8.82 billion. The main changes in     
the cost of sales were as follows:                                              
The two-year wage agreement at the South African operations allowed for CPIX    
plus 1% increase, resulting in a group wage hike of 12.6%. Costs were further   
impacted by retention strategies implemented during the previous financial      
year.                                                                           
There was a decrease in metal purchases on the back of lower rand metal         
prices.                                                                         
The reduction in metal inventory largely due to the change in rand metal        
prices.                                                                         
A fall in the share price resulted in an amount of R995 million credited to     
cost of sales (December 2007: R263 million expense) due to the release from     
the share based payment provision in line with the price moving from            
R309/share in June 2008 to close at R135/share on 31 December 2008.             
Amortisation cost higher at R569 million (2007: R451 million) as a result of    
the capital expenditure programme, as well as the conversion of our             
Zimbabwean operations at a weaker R/$ exchange rate.                            
The group unit cost per platinum ounce produced, including share based          
payments escalated by 3.9% to R6 986 Pt/oz (2007: R6 722 Pt/oz). If share       
based payments are excluded from the unit cost calculation,  the unit cost      
per platinum ounce that relates to operating costs was 36.9% more at R8 681     
Pt/oz (2007: R6 340 Pt/oz).                                                     
The group`s operating margins remained stable at 45.7% (2007: 46.7%), despite   
operating and economic difficulties experienced.                                
Impala contributed the bulk (82.2%) of the group`s gross profit (2007:          
78.4%).                                                                         
Equity income from investments of R64 million was from Implats` holding in      
Two Rivers. A significant decline from the comparative period was as a result   
of the sale of the group`s stake in AQP and AQP (SA).                           
The group acquired, through a subsidiary, 5 562 545 of its own shares in this   
financial period in terms of an approved share buy-back scheme. This was        
executed through purchases on the stock exchange for an amount of R724          
million. The buy back arrangement was however suspended on the back of          
Implats` cash preservation programme that was announced.                        
Profit for the period attributable to owners of the parent increased by 13.4%   
to R5.3 billion.                                                                
Cash from operating activities during the interim period totalled R4.5          
billion, after funding the capital expenditure of R3.9 billion and dividend     
payment of R7.1 billion; the closing cash position was R4.3 billion.            
Group capital expenditure for the 2009 interim period totalled R3.9 billion     
compared to the R2.4 billion in the previous interim period. The bulk of this   
capital expenditure was spent at Impala on the development of 16, 17 and 20     
shafts. Zimplats and Marula spent R640 million and R326 million respectively.   
After taking into account the significant volatility reflected in current       
markets, as well as the strong financial position of Implats an interim         
dividend of R1.20 per share has been declared. The total cash outlay will be    
R790 million (including STC). Although the dividend cover has not been          
formally modified, the interim dividend was based on the total quantum of       
cash payable rather than on a cover basis. The final dividend will also be      
carefully reviewed and as in the case of this interim dividend, will reflect    
then market conditions and our view of the short term outlook.                  
Prospects                                                                       
With world economies and their financial systems still on life support, it is   
increasingly difficult to forecast the outcome for 2009. Suffice to say we do   
not expect any major recovery in automotive demand. In this environment, and    
with reduced metal availability from South Africa, Russia and perhaps more      
significantly the recycle market (both automotive and jewellery), we expect     
the market to register a small surplus for 2009.                                
In summary, the dire economic circumstances belie the more positive             
fundamentals for PGM`s that we have often articulated. However we believe the   
confidence needed to restore the health of this market may prove elusive        
during the bulk of the year.                                                    
Fred Roux        David Brown                Johannesburg                        
Chairman         Chief Executive Officer    19 February 2009                    
Declaration of Interim Dividend                                                 
An interim cash dividend of 120 cents per share has been declared in respect    
of the half-year ended 31 December 2008. The last day to trade ("cum" the       
dividend) in order to participate in the dividend will be Friday, 6 March       
2009. The share will commence trading "ex" the dividend from the commencement   
of business on Monday, 09 March 2009 and the record date will be Friday, 13     
March 2009.                                                                     
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, 12 March 2009, or on the   
first day thereafter on which a rate of exchange is available.                  
The dividend will be paid on Monday, 16 March 2009. Share certificates may      
not be dematerialised/rematerialised during the period Monday, 09 March 2009    
to Friday, 13 March 2009, both dates inclusive.                                 
By order of the Board                                                           
A Parboosing                            Johannesburg                            
Group Company Secretary                 19 February 2009                        
Registered Office                                                               
2 Fricker Road, Illovo 2196                                                     
(Private Bag X18, Northlands 2116)                                              
Transfer Secretaries                                                            
South Africa: Computershare Investor Services (Pty) Limited                     
70 Marshall Street, Johannesburg, 2001, (P.O. 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 interim report is available on the company`s website:             
http://www.implats.co.za                                                        
Alternatively please contact the Group Company Secretary, via e-mail at         
avanthi.parboosing@implats.co.za or by post at Private Bag X18, Northlands      
2116, South Africa. Telephone: (+2711) 731 9000                                 
Johannesburg                                                                    
19 February 2009                                                                
Sponsor to Implats:                                                             
Deutsche Securities (SA)(Proprietary) Limited                                   
Date: 19/02/2009 08:00:10 Produced by the JSE SENS Department.                  
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