IMP - Impala Platinum Holdings Limited - Implats t29 May 2012
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                                                                 
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            

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             
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              
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             
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              

Refined Platinum      000oz     154        203       510        655             

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            

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.                                  
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
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.                                                
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.                      
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.                             
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.        
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   
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.                                   
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       
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.                                         
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                                                                                                               
Date: 29/05/2012 08:00:01 Produced by the JSE SENS Department.                  
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