IMP
IMPO
IMP / IMPO - Implats - Third Quarter Production Report For The Period 1 January
To 31 March 2009
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
Share Code: IMP/IMPO
LSE Code: IPA
ADR Code :IMPUY
ISIN: ZAE000083648
("Implats")
Third quarter production report for the period 1 January to 31 March 2009
Unaudited Unaudited Unaudited Unaudited
Quarter Quarter Nine months Nine
ended ended to months to
Operational 31 March 31 March 31 March 31 March
information 09 08 09 08
Implats Gross
Refined Production
Platinum 000oz 385 352 1,263 1,383
Palladium 000oz 224 180 698 754
Rhodium 000oz 58 56 186 189
Nickel 000tonne 3.44 2.63 10.69 10.89
Impala
Tonnes Milled 000 3,390 3,371 11,524 11,913
Grade (6E) g/t 4.63 4.63 4.57 4.73
% Merensky 46% 49% 46% 49%
Refined Platinum 000oz 153 174 669 749
Production
Refined Platinum 000oz 213 219 729 794
(stock adjusted)
Marula
Tonnes Milled 000 394 333 1,175 1,093
Grade (6E) g/t 4.30 4.45 4.25 4.43
Platinum in 000oz 19 16 55 52
Concentrate
Zimplats
Tonnes Milled 000 543 525 1,625 1,631
Grade (6E) g/t 3.57 3.48 3.49 3.54
Platinum in Matte 000oz 25 28 72 69
Mimosa
Tonnes Milled 000 548 399 1,563 1,294
Grade (6E) g/t 3.85 3.84 3.88 3.84
Platinum in 000oz 24 17 68 57
Concentrate
IRS
Refined Platinum 000oz 232 178 594 634
Production
Prices Achieved
Platinum $/oz 955 1,695 1,249 1,460
Palladium $/oz 189 420 277 373
Rhodium $/oz 1,117 7,091 4,517 6,385
Nickel $/tonne 10,432 28,485 14,778 31,345
Average exchange R/$ 9.99 7.49 8.62 7.11
rate
SAFETY
Regrettably, two of our employees lost their lives at work during the quarter
under review. Both incidents occurred underground at the Impala Rustenburg
operations. Management extends their sincere condolences to their families,
friends and colleagues. The common cause of these fatalities has been our
failure as a company to ensure all our employees, including 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.
PRODUCTION
Gross refined platinum production increased by 9% to 385,000 ounces compared to
the corresponding quarter a year ago. The 24% rise in palladium production was
primarily due to a lock-up in the previous comparable period whilst nickel
throughput was driven by higher customer receipts.
At Impala, platinum production declined by 12% to 153,000 ounces from that
achieved in the third quarter of FY2008 due to the combination of a build-up in
pipeline stocks and a decrease in Merensky tonnage milled. The latter resulted
in a higher ratio of lower-grade UG2 throughput. The temporary lock-up which
occurred in the smelter was caused by the commissioning of the gas cleaning
portion of the smelter expansion and stock adjusted production fell by 3%.
Changes to the senior management structure have now been completed. The new
team will concentrate on on-reef development particularly at the major Merensky
shafts, grade control and people development in order to address the drop in
production.
Tonnage at Marula rose by 18% period on period in line with the ramp-up in
production. The deterioration in grade was a result of the scaling down of
production at the higher grade Driekop shaft coupled with higher on-reef
development at the Clapham conventional project.
Platinum in matte production at Zimplats declined by 11% to 25,000 ounces
compared to the equivalent period a year ago. This was due to a concentrate
pipeline build-up which will be processed into matte in the next quarter.
The completion of the plant de-bottlenecking at Mimosa resulted in platinum
production in concentrate improving by 41% from the previous comparable period
to 24,000 ounces.
Impala Refining Services` production rose by 30% to 232,000 ounces quarter on
quarter due to increased receipts and pipeline movements. The closure of
Aquarius` Everest Mine will impact on the subsequent quarter`s output.
Metal prices in the current quarter have dropped steeply from the previous
period a year ago when they were dominated by supply concerns, driven in part by
the Eskom power crisis. In contrast prices in this quarter were the victim of
the severe economic downturn which translated into weaker demand. Their
deterioration was partly negated in rand terms by the 33% weakening in the
rand/dollar exchange rate.
CORPORATE
In Zimbabwe a government of national unity took office in February this year,
but political agreement has still not been fully implemented with a number of
senior appointments still outstanding. The formation of a coalition government
has brought about a sense of renewed optimism in the country. The operations
continue to function smoothly and the Zimplats Phase I Expansion Project is
scheduled for completion later in the year.
The discussions with Mvelaphanda Resources and Northam pertaining to the
potential acquisition of the entire issued share capital of both aforementioned
parties were terminated in January 2009 when agreement on an equitable
transaction ratio could not be reached.
Cash net of debt at the end of the quarter was R1.5 billion. A major cash
outflow during this period was R724 million for the interim dividend payment.
Enquiries should be directed to:
Bob Gilmour (Group Executive Corporate Relations)
+27 11 731 9013
+27 82 453 7100
Bob.gilmour@implats.co.za
David Brown (Chief Executive Officer)
+27 11 731 9056
+27 82 908 9630
David.brown@implats.co.za
18 May 2009
Johannesburg
Sponsor to Implats:
Deutsche Securities (SA)(Proprietary) Limited
Date: 18/05/2009 10:00:01 Produced by the JSE SENS Department.
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