IMP
IMPO
IMP - Impala Platinum Holdings Limited - First quarter production report
for period 01 July to 30 September 2011
Impala Platinum Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1957/001979/06)
ISIN: ZAE000083648
JSE Share Code : IMP
LSE Share Code : IPLA
ADR Code : IMPUY
("Implats" or "the Company")
FIRST QUARTER PRODUCTION REPORT FOR PERIOD 01 JULY TO 30 SEPTEMBER 2011
Unaudited Unaudited
Operational Quarter ended Quarter ended
information 30 September 11 30 September 10
Implats Gross
Refined Production
Platinum 000oz 388 441
Palladium 000oz 251 285
Rhodium 000oz 53 57
Nickel 000tonne 3.84 3.76
Impala
Tonnes Milled* 000 3 759 3 979
Grade (6E)* g/t 4.53 4.66
Merensky Milled* % 45 40
Refined Platinum 000oz 249 251
Production
Marula
Tonnes Milled 000 395 437
Grade (6E) g/t 4.30 4.32
Platinum in 000oz 18 20
Concentrate
Zimplats
Tonnes Milled 000 1 060 1 043
Grade (6E) g/t 3.57 3.56
Platinum in Matte 000oz 45 44
Mimosa
Tonnes Milled 000 592 594
Grade (6E) g/t 3.91 3.91
Platinum in 000oz 27 27
Concentrate
IRS
Refined Platinum 000oz 139 190
Production
Group Unit Costs R/oz 11 628 10 491
(excluding SBP)
Prices Achieved
Platinum $/oz 1 774 1 528
Palladium $/oz 773 470
Rhodium $/oz 1 801 2 286
Nickel $/tonne 22 062 19 100
Average exchange R/$ 7.01 7.41
rate
*The ex-mine tonnage, grade and % Merensky statistics tabulated above
excludes the low grade material from surface sources.
SAFETY
Regrettably, three of our employees lost their lives at work during the
first quarter of FY2012. All of these incidents occurred at Impala
Rustenburg. Phakani Joseph Tshabangu and Monyamane Molotha lost their
lives due to two separate falls-of-ground and Christian Sinikiwe Dweba
as the result of drilling into a misfire. The Board and management team
extend their sincere sympathies to the families, friends and colleagues
of these employees.
The Company together with the Department of Mineral Resources (DMR)
remain actively committed to the elimination of fatalities and other
injuries in our working environment. Production lost due to Section 54
notices in the first quarter amounted to approximately 8 000 ounces of
platinum. A similar amount has already been lost in October due to the
issuing of a significant number of high impact Section 54 notices. We
are engaging with the DMR and the Inspectorate to gain a clearer
understanding of their concerns and to formulate an appropriate way
forward for both parties. In order to minimise the impact on second
quarter production additional surface material from dumps, dams, sludge
and slag are being treated.
PRODUCTION
Gross platinum production declined by 12% compared to the first quarter
a year ago to 388 000 ounces. This was as a result of reduced volumes
through IRS from Crocodile River due to on-going operational issues, the
closure of Blue Ridge, as well as the fact that 34 000 ounces of once-
off Lonmin toll material was processed in the previous comparable
quarter. Palladium production decreased in line with platinum. As a
result of rhodium`s longer pipeline, production of this metal only fell
by 7% due to a stock build-up in the corresponding period a year ago as
a result of the treatment of additional toll material.
Impala
At Impala Rustenburg tonnes milled were down 6% to 3.76 million largely
due to the previously announced deferral of production at 20 Shaft to
FY2013. Despite this platinum production remained flat at 249 000
ounces due to a combination of increased Merensky throughput in line
with the operation`s stated move to a 50:50 Merensky:UG2 ore mix and the
treatment of additional surface material.
Marula
Tonnes milled at Marula declined by 10% to 395 000 and platinum in
concentrate production declined by 12% to 18 000 ounces due to the
restructuring of the operation which in turn resulted in a surface
stockpile build due to a temporary change to a five day milling cycle.
Costs have started to reduce in line with the right-sizing of the
operation.
Zimplats
Platinum production in matte at Zimplats was marginally up to 45 000
ounces in line with an increase in tonnes milled to 1.06 million. The
Phase 2 expansion project remains on schedule to take production to 270
000 ounces of platinum by FY2014. At Portal 3 blasting and construction
of tunnel arches in both North and South declines is underway and
progress on the concentrator and other infrastructure is progressing
well.
In October Zimplats announced their intention to establish a community
share ownership scheme, an integral part of the Company`s plan to meet
Zimbabwe`s indigenisation requirement. Management remain in
negotiations with the Government of Zimbabwe to finalise the
indigenisation implementation plan which will be resubmitted in mid-
November this year.
Mimosa
Production at Mimosa remained flat in line with steady-state production
of 100 000 ounces of platinum in concentrate per annum. The Company
submitted their indigenisation plan in late October and await feedback
from the Government of Zimbabwe.
IRS
IRS` refined platinum production declined by 27% quarter on quarter as
previously outlined.
Group Unit Costs (excluding SBP)
Group unit cost per platinum ounce produced excluding share-based
payments rose by 10.8% from the previous quarter a year ago primarily
due to the recent impact of the 10% wage settlement and the continuation
of high electricity tariff increases.
Johannesburg
17 November 2011
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 17/11/2011 14:03:41 Produced by the JSE SENS Department.
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