Third Quarter Production Report
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ADR code: IMPUY
(“Implats” or “the company”)
FOR PERIOD 01 JANUARY TO 31 MARCH 2013
Unaudited Unaudited Unaudited Unaudited
Operational information Quarter ended Quarter ended Nine months Nine months
31 March 2013 31 March 2012 31 March 2013 31 March 2012
Implats Gross Refined Production
Platinum 000oz 341 230 1 206 1 076
Palladium 000oz 220 160 796 688
Rhodium 000oz 53 40 168 158
Nickel 000t 3.74 3.56 11.46 11.40
Tonnes Milled* 000 2 358 1 091 8 535 7 937
Grade (6E)* g/t 4.31 4.43 4.27 4.46
Refined Platinum Production 000oz 189 76 557 566
Tonnes Milled 000 336 320 1 162 1 127
Grade (6E) g/t 4.19 3.99 4.20 4.17
Platinum in Concentrate 000oz 15 13 51 49
Tonnes Milled 000 1 068 1 069 3 249 3 239
Grade (6E) g/t 3.55 3.54 3.55 3.54
Platinum in Matte 000oz 64 45 138 137
Tonnes Milled 000 563 578 1 755 1 725
Grade (6E) g/t 3.94 3.94 3.95 3.93
Platinum in Concentrate 000oz 26 26 81 79
Refined Platinum Production 000oz 152 154 649 510
Platinum US$/oz 1 651 1 547 1 570 1 639
Palladium US$/oz 728 667 657 697
Rhodium US$/oz 1 119 1 409 1 136 1 671
Nickel US$/t 17 471 18 964 16 727 19 921
Average exchange rate R/US$ 8.99 7.79 8.61 7.62
Implats Unit cost excluding SBP 15 919 20 081 15 957 12 970
* The ex-mine tonnage and grade statistics tabulated above excludes the low grade material from surface sources.
We can report that there were no fatalities during the quarter. As a consequence, the Fatality
Injury Frequency Rate improved to 0.057 per million man hours worked from 0.087 for
FY2012. The Lost Time Injury Frequency Rate has also improved, declining to 4.40 per
million man hours worked from 4.96 for the last financial year. The number of Section 54/55
notices issued for the year to date declined to 52 compared to 97 in the comparable period
last year. However, we are far from satisfied with the safety performance, in particular with
our compliance to safe production rules and standards and these areas continue to receive
our highest priority. A new health and safety agreement is being discussed with the
Association of Mineworkers and Construction Union (AMCU).
Gross group refined platinum production rose by 12% to 1.21 million ounces of platinum for
the nine month period ending March 2013 compared to the corresponding period a year ago.
This was due to increased throughput at IRS as a result of more toll treatment business.
Both palladium and rhodium were similarly affected.
At Impala Rustenburg, No 1 Shaft achieved over 6 million fatality free shifts but regrettably
incurred a fatal incident as recorded in the post third quarter events paragraph. In addition
No 16 and No 20 Shafts achieved two and one million fatality free shifts respectively. Refined
platinum production increased by 149% to 189 000 ounces in the third quarter. This is due to
a 29 000 ounce pipeline release in the quarter and the strike in the corresponding period a
year ago in which 141 000 ounces were lost, due to the illegal industrial action and
subsequent slow ramp-up in production. Production for the nine months was marginally
down at 557 000 ounces of platinum. The operation continues to be impacted by a lack of
ore reserve flexibility, mining quality, internal safety stoppages, DMR safety stoppages and a
challenging labour relations climate. At the current rate of throughput, production in the final
quarter is estimated to be in the region of 150 000 ounces of platinum. No 16 Shaft remains
on schedule for commissioning at financial year end and to start production in FY2014.
Following the de-recognition of the National Union of Mineworkers (NUM) at the beginning of
February 2013, the company is in the process of negotiating a new Recognition Agreement
There were zero lost time injuries in the quarter and the mine attained 10 million fatality free
shifts during March. Platinum production in matte increased by 42% to 64 000 ounces as
concentrate stockpiled during the furnace outages in the December 2012 quarter were
smelted. The production of 138 000 ounces of platinum in matte in the nine months is in line
with Phase 1 capacity. The Phase 2 expansion remains on schedule with the start of the
commissioning of the new mining portal, the front end crushing and milling circuits, the new
concentrator circuit and associated tailings facility in early April 2013 proceeding as planned.
On 11 January 2013 the company concluded a non-binding term sheet in respect of
proposed indigenisation implementations plans with the Government of Zimbabwe. In early
March 2013 the company became aware of media reports pertaining to indigenisation
implementation plans. These reports indicated that the Government of Zimbabwe had
changed its stance in regard to the acceptance of these plans. We await clarity in this regard.
In a separate development the Government of Zimbabwe through a Government Gazette
Extraordinary dated 1 March 2013 indicated it intends to compulsorily acquire 27 948
hectares or approximately 50% of the mining claims owned by Zimplats. The company
lodged an objection on 27 March 2013.
The safety performance has improved at Marula and the lost time injury frequency rate has
decreased from 11.86 to 5.58 per million man hours worked for the comparable nine month
period a year ago. A marginal increase in both tonnes milled and grade has resulted in a 4%
increase in platinum production in concentrate to 51 000 ounces for the period to end March
2013. The operation is on plan to exceed its target of 70 000 ounces of platinum in
concentrate for FY2013.
Mimosa improved its safety performance and the lost time injury frequency rate has
decreased from 1.16 to 0.35 per million man hours worked for the nine months ended March
2013. Production at 81 000 ounces of platinum in concentrate for the nine months to the end
of March 2013 is in line with steady state throughput. The company remains in discussions
with the Government of Zimbabwe regarding indigenisation.
Platinum production at IRS increased by 27% to 649 000 ounces compared with the same
period last year due to a significant increase in once-off tolling treatment receipts which more
than offset lower contractual deliveries.
Group Unit Costs (excluding share-based payments (SBP))
Group unit costs per platinum ounce produced excluding SBP, increased by 23% to R15 957
for the nine months to the end of March 2013 compared with the corresponding period a year
ago. The bulk of the increase was due to inflation with the balance due to lower costs
incurred during last year’s illegal strike without a corresponding increase in volumes this
Post third quarter events
Regrettably, post the end of the quarter under review there have been three totally
unacceptable fatalities at Impala Rustenburg. Daniel Makibiti Motenalapi (No 1 Shaft) and
Gwebindlala Bholo (No 10 Shaft) were fatally injured in separate scraper winch incidents,
and Gaopelo Stephen Moalusi (No 20 Shaft) lost his life in an engineering incident. The
board of directors and management team extend their sincere sympathies to their families,
friends and colleagues.
As a result of the fatalities there have been significant production disruptions as a result of
section 54 instructions by the DMR.
The steep drop in PGM prices has had a further significant impact on Group profitability with
a growing number of shafts either marginal or loss making. These units are being monitored
on a continuous basis to determine their on-going viability.
Shareholders are reminded that a shareholders meeting will be held on 7 May 2013 for the
granting and approval of a specific authority for Implats directors to allot and issue up to a
maximum of 30 000 000 ordinary shares for the purpose of the conversion of the Convertible
Bonds which were placed on 15 February 2013.
2 May 2013
Enquiries should be directed to:
Bob Gilmour (Group Executive: Corporate Relations)
+27 11 731 9013/43
+27 82 453 7100
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