IMP
IMPO
IMP - Impala Platinum Holdings - Consolidated interim results for the six
months ended 31 December 2009
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" or "the group")
Consolidated interim results for the six months ended 31 December 2009
FEATURES
SAFETY
Unsatisfactory safety performance
REVENUE
Down due to lower metal prices
PRODUCTION
Group platinum production up 2% to 0.895 million ounces
DEVELOPMENT
Development issues at Impala Rustenburg being successfully addressed
EXPANSION
Zimplats Phase One expansion commissioned and robust growth in IRS volumes
DIVIDEND
Maintained at 120 cents per share
COMMENTARY
The period under review has been one of the most difficult in the company`s
history. Not only did it have to deal with the trying economic conditions, but
also the impacts of both the tragedy at 14 Shaft and industrial action. However,
despite this, significant progress was made in addressing the development issues
at Rustenburg, the expansion at Zimplats was successfully commissioned and
throughput at IRS grew significantly. As 2009 drew to a close the first signs of
economic recovery had started to become apparent.
MARKET OVERVIEW
The global financial crisis that started midway through 2008 continued during
2009, as one after another the world`s major economies went into recession. It
was also the year that the world`s economic power took a dramatic shift east as
China, and to a lesser extent India, prevented a catastrophic move towards
depression. Western world car sales slumped to multi year lows, having an
enormous impact on PGM demand, but this was offset by a more than doubling of
Chinese platinum jewellery consumption and a 50% leap in investment demand.
Supply declined as a result of reduced secondary deliveries, leaving the market
with a small deficit for the year.
Platinum prices reached a low of $915 in January 2009 and slowly increased
throughout the year as Chinese buying and investor purchases via the European
based Exchange Traded Funds gathered pace. Prices peaked during December 2009 at
$1 500, supported in part by a belief that the worst of the recession was now
over, and that industrial production would recover.
Palladium automotive demand was less severely impacted than platinum due to a
robust Chinese market and a move to smaller gasoline engines, from diesel, in
Europe. This market remained close to balance despite a 1 million ounce Russian
shipment at the beginning of the year. With investors also showing an appetite
for the metal and a lack of any meaningful destocking by the Russians at year
end - something which has plagued this market for years - prices put in a more
spectacular performance, starting the year at $175 and increasing by some 130%
over the twelve months to close above $400.
Rhodium performed similarly to palladium starting the year at $1 050 and ending
the year 160% stronger at $2 800. It seems forward buying by automotive
companies at lower prices and renewed speculative interest were the main
drivers, as the metal experienced no shortage of liquidity, as evidenced by a
market which moved into surplus.
SAFETY
A safety conscious workforce that adheres to the company`s rigorous safety
standards and embraces the concept of zero tolerance to non-compliance is a key
objective for the group. The challenge the group continue to face is changing
the safety behaviour of our employees to one where safety and health is their
first priority. While the group has achieved world-class performances in some
areas there remains significant work to be done to realise the ultimate vision
of zero harm. The group continues to work closely with the Department of
Minerals and Resources, the unions and various external safety consultants
focusing on inculcating a safety culture within the organisation in order to
achieve this vision.
Implats` safety performance was poor in the half year to December 2009 with
fourteen fatalities during this period at Impala Rustenburg. Nine of these
occurred in the single tragic incident at Impala Rustenburg`s 14 Shaft though
the number of incidents is no higher than in previous reporting periods. The
board and management extend their sincere condolences to the family and friends
of our late colleagues.
OPERATIONAL REVIEW
Platinum production increased by 2% to 895 000 ounces in the first half of the
financial year despite the loss of some 83 000 ounces at Impala Platinum. This
was due to higher throughput at the other operating units, which is processed
through IRS. The lower volumes at the flagship operation, Impala Platinum,
negatively impacted on group costs which rose by 14% to R9 889 per platinum
ounce excluding share based payments.
IMPALA PLATINUM
The total number of fatalities during the period was fourteen. In order to
significantly reduce the operational risk of another fall-of-ground event all
mechanised sections have been reconfigured to six metre mining bords. The Lost
Time Injury Frequency Rate (LTIFR) deteriorated from 3.47 in FY09 to 4.38 per
million man hours with the main issue continuing to be behavioural non-
compliance with safety related standards and procedures.
The impact of the 14 Shaft incident, coupled with the two week industrial action
resulted in tonnes milled declining by 16% to 6.8 million. Consequently refined
platinum production fell to 432 400 ounces. The lower volumes impacted directly
on unit costs which rose 21% to R9 755 per platinum ounce excluding share based
payments. On a normalised basis (excluding the strike and the 14 shaft incident)
unit costs would have risen 4% to R8 376.
The focus at the operation remains on on-reef development at the major Merensky
shafts where rates have improved by 16% on a normalised basis and are in line
with plans communicated at the Annual Results. This process will take another 18
months to complete and will restore mining flexibility at Impala Rustenburg.
Capital expenditure amounted to R1.6 billion during the period, the majority of
which was spent on the new generation deeper level shafts 20, 16 and 17. In
conjunction with improved development rates on existing shafts the build-up of
these shafts is critical to maintaining 1 million ounces of platinum in the
longer term.
MARULA
Although the safety performance from a fatality perspective was positive during
the period, the LTIFR deteriorated to 11.62 from 5.21 per million man hours.
Tonnes milled rose by 4% to 816 000 resulting in a similar increase in platinum
in concentrate production to 37 900 ounces. However, this continues to be less
than planned due to limited face availability as a result of the slower ramp-up
to conventional mining. Unit costs per platinum in concentrate ounce were well
controlled rising by only 4% to R12 322 per ounce excluding share based
payments.
During the period the mineral reserve agreement with neighbouring Modikwa was
concluded extending the life of Driekop shaft and will improve mining
flexibility.
ZIMPLATS
Zimplats delivered a world class safety performance with the LTIFR improving by
31% to 0.31 per million man hours. The Phase One Expansion has reached full
production with the concentrator reaching nameplate capacity in September 2009.
Consequently, tonnes milled increased by 82% to 1.97 million and platinum in
matte rose by 74% to 81 600 ounces.
The higher volumes resulted in a 25% decline in unit costs to $1 009 per
platinum ounce in matte. The technical evaluation for a second phase of
expansion has been completed.
MIMOSA
Mimosa maintained its excellent safety performance with an LTIFR of 0.69 per
million man hours. In line with the recently completed plant expansions, tonnes
milled increased by 14% to 1.15 million and platinum production in concentrate
by 16% to 51 100 ounces. The stronger rand dollar exchange rate coupled with the
dollarisation of the economy resulted in costs rising by 16% to $1 106 per
platinum ounce in concentrate.
TWO RIVERS
Plant optimisation has resulted in tonnage throughput improving by 12% to 1.48
million. In addition higher concentrator recoveries resulted in platinum
production in concentrate increasing by 24% to 72 300 ounces. In line with the
higher throughput, unit costs per platinum ounce in concentrate declined by 15%
to R8 035.
IMPALA REFINING SERVICES
Volumes were up 27% to 462 500 ounces of platinum despite reduced deliveries
from Aquarius due to the temporary closure of the Everest South mine.
MINERAL RESOURCES AND MINERAL RESERVES
There has been no material change to the technical information relating to the
group`s mineral reserves and resources, or legal title to its mining and
exploration activities, as disclosed in the annual report for the financial year
ended 30 June 2009.
FINANCIAL REVIEW
Revenue for the period reduced by 32% to R11.1 billion compared to December
2008. Lower rand metal prices resulted in a price variance of R5.6 billion,
offset by a positive volume variance.
Cost of sales decreased by 9% to R8.0 billion. The main contributor is the
movement in the value of metals purchased and metal inventories primarily due to
metal price movements.
As a result of the 19% increase in the Implats` share price from 30 June 2009 to
31 December 2009, the share based payment charge (net of taxation) amounted to
R560 million in the current period, compared to a credit in the prior period of
R976 million.
The gross profit for the six months ending 30 June 2009 was R2.3 billion with a
gross margin of 24%. In the period under review the gross profit improved to
R3.1 billion with a gross margin of 28%.
The group unit cost per platinum ounce produced, excluding share based payment
costs, escalated by 14% to R9 889 per platinum ounce. Of this increase, 75% is
attributable to volumes lost due to the strike and the 14 shaft incident.
Cash from operating activities for the interim period totalled R2.4 billion
whilst capital expenditure amounted to R2.2 billion. Cash net of debt was R941
million as at 31 December 2009.
Despite the decrease in headline earnings per share of 76%, the Board agreed to
maintain the dividend at the same level as the previous interim dividend of 120
cents per share.
PROSPECTS
As the first signs of a global economic recovery become apparent, the prospects
for industrial demand looks promising coupled with the recent launch of a US
platinum and palladium Exchange Traded Fund and another year of constrained
supply will result in tight market conditions for both metals. Despite growing
demand rhodium`s ample liquidity will keep prices in check.
Despite difficult conditions Implats has retained a strong balance sheet and
maintained a continuous dividend flow to shareholders. This is a reflection of
operational recovery and improved market fundamentals. In addition, the group`s
cost performance which has been impacted by lower volumes at Impala Rustenburg,
is still regarded as one of the best in the industry. The positive developments
at this operation, an unchanged five year capital expenditure programme of R23
billion and a steady growth profile to 2.1 million ounces of platinum by 2014
place Implats in a strong position to take advantage of the improving economic
environment.
Khotso Mokhele David Brown
Chairman Chief Executive Officer
Johannesburg
18 February 2010
DECLARATION OF INTERIM CASH DIVIDEND
An interim cash dividend of 120 cents per share has been declared in respect of
the half-year ended 31 December 2009. The last day to trade ("cum" the dividend)
in order to participate in the dividend will be Friday, 05 March 2010. The share
will commence trading "ex" the dividend from the commencement of business on
Monday, 08 March 2010 and the record date will Friday, 12 March 2010.
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, 11 March 2010, or on the first day
thereafter on which a rate of exchange is available.
A further announcement stating the Rand/GBP conversion rate will be released
through the relevant South African and UK news services on Friday, 12 March
2010.
The dividend will be paid on Monday, 15 March 2010. Share certificates may not
be dematerialised/rematerialised during the period Monday, 08 March 2010 to
Friday, 12 March 2010, both dates inclusive.
By order of the Board
A Parboosing
Group Company Secretary
Johannesburg
18 February 2010
OPERATING STATISTICS
Six months Year
ended ended
31 December 31 December 30 June
2009 2008 2009
Gross refined
Platinum (000oz) 895 878 1 704
Palladium (000oz) 582 474 1 008
Rhodium (000oz) 126 128 248
Nickel (000t) 7.5 7.3 14.5
IRS metal returned (toll
refined)
Platinum (000oz) 126 93 194
Palladium (000oz) 126 85 181
Rhodium (000oz) 26 17 38
Nickel (000t) 0.9 1.1 2.5
Sales volumes
Platinum (000oz) 694 806 1 503
Palladium (000oz) 466 427 781
Rhodium (000oz) 120 89 180
Nickel (000t) 6.8 5.3 13.5
Prices achieved
(average)
Platinum ($/oz) 1 281 1 369 1 219
Palladium ($/oz) 298 310 263
Rhodium ($/oz) 1 764 5 890 3 517
Nickel ($/t) 16 032 16 589 12 995
CONSOLIDATED STATISTICS
Average rate achieved (R/$) 7.70 8.31 8.63
Closing rate for the (R/$) 7.39 9.37 7.76
period
Revenue per platinum ($/oz) 2 051 2 408 1 995
ounce sold
(R/oz) 15 793 20 010 17 217
Tonnes milled ex-mine (000t) 10 176 10 503 20 083
PGM refined production (000oz) 1 802 1 717 3 428
Capital expenditure (Rm) 2 188 3 878 6 923
Group unit cost per
platinum ounce
Excluding share based ($/oz) 1 297 983 1 005
cost
(R/oz) 9 889 8 681 9 129
Including share based ($/oz) 1 439 791 939
cost
(R/oz) 10 974 6 986 8 526
Additional statistical information is available on the company`s internet
website.
STATEMENT OF FINANCIAL POSITION
As at As at As at
31 December 31 December 30 June
2009 2008 2009
R millions Notes (Reviewed) (Unaudited) (Audited)
Assets
Non-current assets
Property, plant and 5 27 666 24 532 26 224
equipment
Exploration and 5 4 294 4 294 4 294
evaluation assets
Intangible assets 5 1 018 1 018 1 018
Investments in 998 1 003 983
associates
Available-for-sale 40 41 18
financial assets
Held-to-maturity 54 47 51
financial assets
Other receivables and 13 323 12 355 13 592
prepayments
47 393 43 290 46 180
Current assets
Inventories 5 512 4 117 4 248
Trade and other 3 180 7 054 3 904
receivables
Cash and cash 3 053 4 272 3 348
equivalents
11 745 15 443 11 500
Total assets 59 138 58 733 57 680
Equity and liabilities
Equity attributable to
owners of the parent
Share capital 14 108 14 039 14 069
Retained earnings 27 289 27 200 27 222
Other components of (471) 235 (352)
equity
40 926 41 474 40 939
Non-controlling interest 1 842 1 935 1 864
Total equity 42 768 43 409 42 803
Liabilities
Non-current liabilities
Deferred tax liability 7 268 6 768 6 909
Long-term borrowings 6 1 825 1 727 1 778
Long-term provisions 1 556 705 1 098
10 649 9 200 9 785
Current liabilities
Trade and other payables 5 068 5 305 4 634
Current tax payable 22 638 36
Short-term borrowings 6 287 53 207
Short-term provisions 344 128 215
5 721 6 124 5 092
Total liabilities 16 370 15 324 14 877
Total equity and 59 138 58 733 57 680
liabilities
The notes are an integral part of this condensed interim financial information.
INCOME STATEMENT
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2009 2008 2009
R millions Notes (Reviewed) (Unaudited) (Audited)
Revenue 4 11 122 16 243 26 121
Cost of sales 7 (8 034) (8 817) (16 359)
Gross profit 4 3 088 7 426 9 762
Other operating expenses (310) (166) (497)
Royalty expense (195) (318) (442)
Profit from operations 2 583 6 942 8 823
Finance income 143 845 963
Finance cost (105) (87) (169)
Net foreign exchange (176) 522 (211)
transaction (losses)/gains
Other expense (38) (90) (54)
Share of profit of 15 64 41
associates
Profit before tax 2 422 8 196 9 393
Income tax expense (1 156) (2 939) (3 389)
Profit for the period 1 266 5 257 6 004
Profit attributable to:
Owners of the parent 1 269 5 286 6 020
Non-controlling interest (3) (29) (16)
1 266 5 257 6 004
Earnings per share
(expressed in cents per
share - cps)
Basic 211 877 1 001
Diluted 211 877 1 000
For headline earnings per share refer note 8.
The notes are an integral part of this condensed interim financial information.
STATEMENT OF TOTAL COMPREHENSIVE INCOME
Fair value Translation
adjustments of foreign Retained
R millions of investments subsidiaries Total earnings Total
Six months ended
31 December 2009
(Reviewed)
Profit 1 266 1 266
Other
comprehensive
income:
Fair value 10 10 10
adjustment
Deferred tax (2) (2) (2)
Currency (205) (205) (205)
translation
reserve
Deferred tax 59 59 59
Total 8 (146) (138) 1 266 1 128
comprehensive
income
Profit
attributable to:
Owners of the 8 (127) (119) 1 269 1 150
parent
Non-controlling (19) (19) (3) (22)
interest
8 (146) (138) 1 266 1 128
Six months ended
31 December 2008
(Unaudited)
Profit 5 257 5 257
Other
comprehensive
income:
Fair value (29) (29) (29)
adjustment
Deferred tax 4 4 4
Currency 970 970 970
translation
reserve
Deferred tax (275) (275) (275)
Total (25) 695 670 5 257 5 927
comprehensive
income
Profit
attributable to:
Owners of the (25) 616 591 5 286 5 877
parent
Non-controlling 79 79 (29) 50
interest
(25) 695 670 5 257 5 927
Year ended
30 June 2009
(Audited)
Profit 6 004 6 004
Other
comprehensive
income:
Fair value (47) (47) (47)
adjustment
Deferred tax 9 9 9
Currency 51 51 51
translation
reserve
Deferred tax (14) (14) (14)
Total (38) 37 (1) 6 004 6 003
comprehensive
income
Attributable to:
Owners of the (38) 42 4 6 020 6 024
parent
Non-controlling (5) (5) (16) (21)
interest
(38) 37 (1) 6 004 6 003
The notes are an integral part of this condensed interim financial information.
STATEMENT OF CHANGES IN EQUITY
Share
capital
and
Attri-
butable
Other to Non-
owners
share Retained components of the controlling Total
R millions premium earnings of equity1 parent interest equity
Balance at 14 069 27 222 (352) 40 939 1 864 42 803
30 June 2009
Shares issued 4 4 4
by the share
option scheme
Shares issued 35 35 35
by the
Employee
Share
Ownership
Programme
Total 1 269 (119) 1 150 (22) 1 128
comprehensive
income
Dividends (1 202) (1 202) (1 202)
(Note 9)
Balance at 14 108 27 289 (471) 40 926 1 842 42 768
31 December
2009
(Reviewed)
Balance at 14 750 29 024 (356) 43 418 1 885 45 303
30 June 2008
Shares issued 6 6 6
by the share
option scheme
Shares issued 7 7 7
by the
Employee
Share
Ownership
Programme
Shares (724) (724) (724)
purchased
Total 5 286 591 5 877 50 5 927
comprehensive
income
Dividends (7 110) (7 110) (7 110)
(Note 9)
Balance at 14 039 27 200 235 41 474 1 935 43 409
31 December
2008
(Unaudited)
Balance at 14 750 29 024 (356) 43 418 1 885 45 303
30 June 2008
Shares issued 9 9 9
by the share
option scheme
Shares issued 34 34 34
by the
Employee
Share
Ownership
Programme
Shares (724) (724) (724)
purchased
Total 6 020 4 6 024 (21) 6 003
comprehensive
income
Dividends (7 822) (7 822) (7 822)
(Note 9)
Balance at 14 069 27 222 (352) 40 939 1 864 42 803
30 June 2009
(Audited)
1 Other components of equity consist of a fair value reserve of R(19) million
(June 2009: ((R27) million) and a foreign currency translation reserve R(452)
million (June 2009: ((R325) million).
The notes are an integral part of this condensed interim financial information.
CASH FLOW STATEMENT
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2009 2008 2009
R millions Notes (Reviewed) (Unaudited) (Audited)
Cash flows from operating
activities
Profit before tax 2 422 8 196 9 393
Adjustments to profit before 1 300 (1 008) (185)
tax
Cash from changes in working (486) (260) 371
capital
Exploration costs (23) (48) (83)
Finance cost (44) (69) (122)
Income tax paid (729) (2 317) (2 867)
Net cash from operating 2 440 4 494 6 507
activities
Cash flows from investing
activities
Purchase of property, plant (2 211) (3 884) (6 791)
and equipment
Proceeds from sale of 3 33 51
property, plant and
equipment
Proceeds from investments 8 - -
disposed
Purchase of investments (27) (7) (6)
Payment received from - 99 96
associate on shareholders
loan
Loan repayments received 442 28 9
Finance income 110 628 915
Net cash used in investing (1 675) (3 103) (5 726)
activities
Cash flows from financing
activities
Issue of ordinary shares, 39 12 43
net of cost
Purchase of treasury shares - (724) (724)
Lease liability repaid (10) (8) (16)
Repayments of borrowings (50) (39) -
Proceeds from borrowings 170 220 579
Dividends paid to company`s 9 (1 202) (7 110) (7 822)
shareholders
Net cash used in financing (1 053) (7 649) (7 940)
activities
Net decrease in cash and (288) (6 258) (7 159)
cash equivalents
Cash and cash equivalents at 3 348 10 393 10 393
beginning of period
Effects of exchange rate (7) 137 114
changes on monetary assets
Cash and cash equivalents at 3 053 4 272 3 348
end of period
The notes are an integral part of this condensed interim financial information.
NOTES TO THE INTERIM FINANCIAL INFORMATION
1. GENERAL INFORMATION
Impala Platinum Holdings Limited (Implats) is a leading producer of platinum and
associated platinum group metals (PGMs). The group has operations on the
Bushveld Complex in South Africa and the Great Dyke in Zimbabwe, the two most
significant PGM - bearing ore bodies globally.
The company has its primary listing on the securities exchange of the JSE
Limited.
This condensed consolidated interim financial information was approved for issue
on 18 February 2010 by the board of directors.
These financial results have been reviewed by the group`s auditors,
PricewaterhouseCoopers Inc., and their unqualified review opinion is available
for inspection at the company`s registered office.
2. BASIS OF PREPARATION
The consolidated interim financial information for the six months ended
31 December 2009 has been prepared in accordance with IAS 34, `Interim Financial
Reporting`. The condensed consolidated interim financial information should be
read in conjunction with the annual financial statements for the year ended 30
June 2009, which have been prepared in accordance with International Financial
Reporting Standards (IFRS).
The consolidated interim financial information is presented in South African
rands, which is the company`s functional currency.
3. ACCOUNTING POLICIES
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 30 June 2009, 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.
The following new standards and amendments to existing standards have been
adopted by the group as from 1 July 2009:
- Annual Improvement Project: April 2009 (effective from 1 July 2009), IFRS 2
(amendment) Group Cash-settled Share-based Payment Transactions (effective 1
January 2010), IAS 27 (amendment) Consolidated and Separate Financial Statements
(effective 1 July 2009). These amendments have no impact on the results of the
group.
- IFRS 3 Business Combinations (effective 1 July 2009). This will have an impact
on future acquisitions.
4. SEGMENT INFORMATION
The group distinguishes its segments between mining operations, refining
services (which include metals purchased and toll refined) and other.
Operating segments have consistently adopted the consolidated basis of
accounting and there are no differences in measurement applied.
The income statement shows the movement from gross profit to profit before tax.
SUMMARY OF BUSINESS SEGMENTS:
Six months ended Six months ended Year ended
31 December 2009 31 December 2008 30 June 2009
(Reviewed) (Unaudited) (Audited)
Gross Gross Gross
R millions Revenue profit Revenue profit Revenue profit
Mining
Impala 10 685 2 019 15 803 6 079 25 310 7 604
Mining 6 361 9 741 15 250
Metals 4 324 6 062 10 060
purchased
Marula 565 8 116 (306) 631 (301)
Zimplats 1 312 617 369 (212) 1 099 (9)
Mimosa 459 201 263 59 631 127
Inter- (2 219) (254) (682) 1 129 (2 217) 1 138
segment
adjustment
External 10 802 2 591 15 869 6 749 25 454 8 559
parties
Refining 4 481 527 6 220 707 10 507 1 265
services
Inter (4 161) (30) (5 846) (30) (9 840) (62)
segment
adjustment
External 320 497 374 677 667 1 203
parties
Total 11 122 3 088 16 243 7 426 26 121 9 762
external
parties
Capital Capital Capital
expendi- Total expendi- Total expendi- Total
R millions ture assets ture assets ture assets
Mining
Impala 1 648 37 428 2 704 34 853 4 782 36 549
Marula 103 2 888 326 2 639 398 2 794
Afplats 9 7 221 107 7 187 108 7 216
Zimplats 391 4 510 640 5 218 1 358 4 881
Mimosa 37 1 269 101 1 699 277 1 295
Total mining 2 188 53 316 3 878 51 596 6 923 52 735
Refining 4 681 5 816 3 777
services
Other 1 141 1 321 1 168
Total 2 188 59 138 3 878 58 733 6 923 57 680
5. PROPERTY, PLANT AND EQUIPMENT, EXPLORATION AND EVALUATION, AND INTANGIBLE
ASSETS
Exploration
Property, and
plant and evaluation Intangible
R millions equipment assets assets
Six months ended 31 December 2009
(Reviewed)
Opening net book amount as at 26 224 4 294 1 018
1 July 2009
Additions 2 149
Interest capitalised 39
Disposals (2)
Depreciation (note 7) (516)
Exchange adjustment on (228)
translation
Closing net book amount as at 27 666 4 294 1 018
31 December 2009
Six months ended 31 December 2008
(Unaudited)
Opening net book amount as at 20 601 4 294 1 018
1 July 2008
Additions 3 833
Interest capitalised 45
Disposals (32)
Depreciation (note 7) (569)
Exchange adjustment on 654
translation
Closing net book amount as at 24 532 4 294 1 018
31 December 2008
Year ended 30 June 2009 (Audited)
Opening net book amount as at 20 601 4 294 1 018
1 July 2008
Additions 6 839
Interest capitalised 84
Disposals (44)
Depreciation (note 7) (979)
Exchange adjustment on (277)
translation
Closing net book amount as at 30 26 224 4 294 1 018
June 2009
Goodwill is not subject to amortisation, but is tested for impairment annually
at financial year end or whenever there is any indication of impairment. There
was no impairment for goodwill or non-financial assets during the period.
6. BORROWINGS
Borrowings from Standard Bank Limited:
- Loans were obtained by BEE partners for purchasing a 27% share in Marula
Platinum (Proprietary) Limited amounting to R742 million (June 2009: R710
million). The BEE partnership in Marula is consolidated as the loans are
guaranteed by Implats. The loans carry interest at the Johannesburg Interbank
Acceptance Rate (JIBAR) plus 130 (June 2009: 130) basis points and a revolving
credit facility amounting to R112 million (June 2009: R107 million), which
carries interest at JIBAR plus 145 (June 2009: 145) basis points. The loans
expire in 2020.
- Two loan facilities from Standard Bank of South Africa Limited to finance the
Ngezi Phase One expansion at Zimplats were secured.
Loan 1 of R591 million is denominated in US$ for US$80 million and bears
interest at London Interbank Offering Rate (LIBOR) plus 700 basis points. The
loan is repayable in twelve quarterly instalments commencing in December 2009
and will be fully repaid by December 2012. At the end of the period the
outstanding balance amounted to R513 million (US$69 million) (June 2009: R588
million (US$76 million)).
Loan 2 of R500 million (June 2009: R300 million) is denominated in South African
rand and bears interest at JIBAR plus 700 basis points. This loan is repayable
in ten semi-annual instalments commencing in December 2010 and will be fully
repaid by June 2015. At the end of the period the outstanding balance amounted
to R442 million (June 2009: R261 million). These loans are secured by sessions
over cash, debtors and revenue of Zimplats Mines (Pvt) Limited.
The group has a credit limit of R5 683 million (June 2009: R5 251 million). R2
112 million (June 2009:
R1 985 million) of these facilities were drawn down at the end of period.
7. COST OF SALES
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2009 2008 2009
R millions (Reviewed) (Unaudited) (Audited)
On mine operations 4 595 3 068 7 214
Concentrating and smelting 1 090 978 1 962
operations
Refining operations 403 252 592
Depreciation of operating 516 569 979
assets (note 5)
Metals purchased 2 690 1 939 3 867
(Increase)/decrease in metal (1 260) 2 011 1 745
inventories
Total 8 034 8 817 16 359
8. HEADLINE EARNINGS
Headline earnings attributable to equity holders of the company arises from
operations as follows:
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2009 2008 2009
R millions (Reviewed) (Unaudited) (Audited)
Profit attributable to owners 1 269 5 286 6 020
of the parent
Adjustments net of tax:
Profit on disposal of property, (1) (1) (5)
plant and equipment
Loss on disposal of investment 6 - -
Headline earnings 1 274 5 285 6 015
The issued share capital of the
holding company is as follows
(millions):
Number of shares issued 631.58 631.58 631.58
Treasury shares (16.23) (16.23) (16.23)
Morokotso Trust (15.17) (15.56) (15.39)
Implats Share Incentive Trust (0.06) (0.20) (0.13)
Number of shares issued outside 600.12 599.59 599.83
the group
Adjusted for weighted shares (0.10) 3.01 1.29
issued
Weighted average number of 600.02 602.60 601.12
ordinary shares in issue for
basic earnings per share
Adjustment for share option 0.47 0.45 0.67
scheme
Weighted average number of 600.49 603.05 601.79
ordinary shares for diluted
earnings per share
Headline earnings per share
(cents)
Basic 212 877 1 001
Diluted 212 876 1 000
9. DIVIDENDS PER SHARE
On 18 February 2010, a sub-committee of the board declared an interim dividend
in respect of 2010 of 120 cents per share amounting to R720 million. Secondary
Tax on Companies on the dividend will amount to R72 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 2010.
Dividends paid
Final dividend No. 83 for 2009 1 202 7 110 7 110
of 200 (June 2008: 1 175) cents
per share
Interim dividend No 82 for 2009 712
of 120 cents per share
1 202 7 110 7 822
10. GUARANTEES
As at December 2009 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 increased by R67 million during the six months to an amount of
R575 million (June 2009: R508 million).
11. COMMITMENTS
Capital expenditure approved at 31 December 2009 amounted to R20.7 billion (June
2009: R22.1 billion), of which R2.8 billion (June 2009: R2.9 billion) is already
committed. This expenditure will be funded internally and if necessary, from
borrowings.
12. NET ASSET VALUE
Net asset value based on the number of ordinary shares issued outside the group
is 6 820 cents per share (June 2009: 6 825 cents per share).
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, (PO Box 61051, Marshalltown, 2107)
United Kingdom: Computershare Investor Services plc
The Pavilions, Bridgwater Road, Bristol, BS13 8AE
Directors
Dr K Mokhele (Chairman), DH Brown (Chief Executive Officer), N D J Carroll#, D
Earp, F Jakoet, JM McMahon*, MV Mennell, TV Mokgatlha, NDB Orleyn, LJ Paton, DS
Phiri
*British #Alternate to T V Mokgatlha
Additional statistical information is available on the company`s internet
website.
http://www.implats.co.za
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, or telephone (011) 731 9000, for further information.
Johannesburg
18 February 2010
Sponsor to Implats:
Deutsche Securities (SA)(Proprietary) Limited
Date: 18/02/2010 08:00:02 Produced by the JSE SENS Department.
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