IMP
IMPO
IMP - Impala Platinum Holdings Limited - Implats third quarter production report
for period 01 January to 31 March 2012
Impala Platinum Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
ISIN: ZAE000083648
JSE code: IMP
LSE code: IPLA
ADR code: IMPUY
("Implats")
IMPLATS THIRD QUARTER PRODUCTION REPORT FOR PERIOD 01 JANUARY TO
31 MARCH 2012
Unaudited Unaudited Unaudited Unaudited
Operational Quarter Quarter Nine Nine
information ended ended months months
31 March 31 March 31 March 31 March
2012 2011 2012 2011
Implats Gross
Refined Production
Platinum 000oz 230 425 1 076 1 377
Palladium 000oz 160 280 688 903
Rhodium 000oz 40 63 158 192
Nickel 000tonne 3.6 3.9 11.4 12.3
Impala1
Tonnes Milled* 000 1 091 2 994 7 937 10 800
Grade (6E)* g/t 4.43 4.59 4.46 4.63
Merensky Milled* % 39 44 44 42
Refined Platinum 000oz 76 222 566 722
Production
Marula
Tonnes Milled 000 320 303 1 127 1 190
Grade (6E) g/t 3.99 4.39 4.17 4.37
Platinum in 000oz 13 14 49 55
Concentrate
Zimplats
Tonnes Milled 000 1 069 1 007 3 239 3 085
Grade (6E) g/t 3.54 3.54 3.54 3.58
Platinum in Matte 000oz 45 42 137 131
Mimosa
Tonnes Milled 000 578 566 1 725 1 704
Grade (6E) g/t 3.94 3.91 3.93 3.89
Platinum in 000oz 26 26 79 77
Concentrate
IRS2
Refined Platinum 000oz 154 203 510 655
Production
Prices Achieved
Platinum $/oz 1 547 1 779 1 639 1 656
Palladium $/oz 667 791 697 636
Rhodium $/oz 1 409 2 370 1 671 2 292
Nickel $/tonne 18 964 26 720 19 921 23 104
Average exchange R/$ 7.79 7.02 7.62 7.11
rate
Unit Cost after off 20 081 10 734** 12 970 10 414**
reef capitalisation
Incorporates the recent six week strike at Impala Rustenburg.
Third party material impacted by the treatment of Lonmin material in the
comparable FY2011 quarter.
* The ex-mine tonnage, grade and % Merensky statistics tabulated above
excludes the low grade material from surface sources.
** Not restated for off-reef capitalisation.
Safety
Three of our employees lost their lives at work during the third quarter of
FY2012. Two fatalities occurred at Impala Rustenburg as a result of underground
incidents. Matona Koenyama lost his life due to a truck and tramming incident,
and Dumisani Neewell Choqha as a result of a fall of ground. At Marula,
Malefetsane Michael Likotsi drowned in shallow water underground. The medical
causes are still under investigation. The Board and Management Team extend
their sincere sympathies to the families, friends and colleagues of our deceased
employees.
The Lost Time Injury Frequency Rate ("LTIFR") year to date deteriorated to 5.00
per million man hours worked from 4.94 for FY2011. The issuance of Section 54
notices in terms of the South African Mines Health and Safety Act during the
third quarter resulted in the loss of approximately 5 000 ounces of platinum
production, down from the first six months where 8 000 and 25 000 ounces were
lost in the first and second quarters respectively. A direct comparison is,
however, difficult to make as production in the third quarter was severely
impacted by the industrial action at Impala Rustenburg. The company remains
committed to working together with the Department of Mineral Resources ("DMR")
to eliminate fatalities and other injuries in our work environment and, to this
end, continues to focus on building and maintaining a professional relationship
with the regulatory authorities.
Production
Gross platinum production declined by 46% or by 195 000 to 230 000 ounces for
the quarter compared with the corresponding period a year ago. The strike
resulted in significantly lower production at Impala Rustenburg while a
reduction of third party ounces impacted Impala Refining Services ("IRS").
While both palladium and rhodium were similarly affected, the effect on nickel
was mitigated by the processing of nickel sulphate stocks.
Impala
Tonnes milled were down 64% to 1.09 million tonnes while platinum ounces
declined by 146 000. This was due to the strike (120 000 ounces lost
production), the ramp-up in production (21 000 ounces lost production)
and Section 54 stoppages (5 000 ounces lost production). As a consequence
platinum production fell to 76 000 ounces. Merensky throughput declined to 39%
due to a change in the mined ratio during the strike as the UG2 opencast
operation remained unaffected by the work stoppage.
Marula
Tonnes milled increased by 6% to 320 000. However, a higher proportion of
on-reef development resulted in a 9% decrease in grade and a consequent
marginal decline in platinum production in concentrate to 13 000 ounces.
Zimplats
Platinum production in matte rose by 7% to 45 000 ounces in line with the
corresponding increase in tonnes milled to 1.07 million. The Phase 2 expansion
project remains on schedule to increase production to 270 000 ounces of platinum
in FY2014.
On 13 March 2012, the company presented a new indigenisation plan to the
Government of Zimbabwe. The Government of Zimbabwe has agreed in principle that
the plan is compliant with the law and is acceptable. In terms of the proposal,
10% of Zimplats will be issued to the Community Trust, and 10% to an Employee
Share Ownership Trust. Following compensation at fair value in lieu of
empowerment credits for previously released ground, Zimplats will make available
for sale a 31% fully contributory stake in Zimplats for cash at an independently
determined fair value to broad based indigenous Zimbabwe groupings. Management
remain in negotiations with the Government of Zimbabwe to finalise the agreed
plan.
Mimosa
At Mimosa production of 26 000 ounces of platinum is in line with steady state
production. Mimosa remains in discussions with the Government of Zimbabwe
regarding the company`s indigenisation plans.
IRS
Throughput at IRS was impacted by lower volumes from both Crocodile River and
recycling, as well as the fact that 27 000 ounces of once-off Lonmin toll
material was processed in the corresponding period a year ago. As a consequence
refined platinum production declined by 24% quarter on quarter.
Group Unit Costs (excluding SBP)
Group unit costs per platinum ounce produced excluding share-based payments,
when compared to the corresponding period a year ago, were severely impacted by
the strike at Impala Rustenburg.
Post third quarter events
Subsequent to the end of the third quarter, Impala Rustenburg continued
its ramp-up but has not yet reached full production. In April the
operation produced 50 000 ounces of platinum. As of the beginning of May
production had reached 75% of budgeted production levels and full production
is expected to be achieved in June 2012.
In order to address the grievances of the rock drill operators (RDO`s) and in
recognition of their unique skills and expertise, the company has promoted these
employees to a higher grade which incorporated a salary adjustment to better
align them to the company`s stated remuneration philosophy and to reflect the
unique role they play in the production teams. The company also approved an
early implementation of the agreed annual increase. An additional adjustment
where job categories did not match the required market position were made.
Management continues to engage with all parties in order to move to full
production and ensure employee affiliations are resolved.
Currently, the company is undertaking a union membership verification. To date
10 813 employees have confirmed their resignation from the National Union of
Mineworkers ("NUM"). This has reduced the NUM membership amongst employees
within the bargaining unit. The Association of Mineworkers and Construction
Union ("AMCU") claims membership of over 8 000 employees and has approached the
company for organisational rights. Membership levels are currently being
verified.
In April 2012, there were two negative aspects reported in the media. A
misleading article was printed in the press with regard to Implats` handling of
the death of a contractor. A response to the article was made available to the
media and is on the company`s website. On 24 May 2012, all the criminal charges
against Implats were withdrawn by the State. During the strike a video was
used to intimidate employees and was subsequently aired by the media. Our
investigation has revealed that this material was neither filmed during the
recent strike nor at Impala Rustenburg.
Johannesburg
29 May 2012
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Enquiries should be directed to:
Bob Gilmour (Group Executive: Corporate Relations)
+27 11 731 9013/43
+27 82 453 7100
Bob.gilmour@implats.co.za
Date: 29/05/2012 08:00:01 Produced by the JSE SENS Department.
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