First Quarter Production Report for the period 1 July to 30 September 2013
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE code: IMP
ADR code: IMPUY
ISIN: ZAE 000083648
("Implats" or “the Company”)
FIRST QUARTER PRODUCTION REPORT
(FOR THE PERIOD 01 JULY TO 30 SEPTEMBER 2013)
Operational information Quarter ended Quarter ended
30 September 2013 30 September 2012
Implats Gross Refined Production
Platinum 000oz 376 454
Palladium 000oz 228 287
Rhodium 000oz 45 56
Nickel 000t 3.88 3.80
Tonnes Milled* 000t 3 000 3 223
Grade (6E)* g/t 4.35 4.24
Merensky Milled* % 44 43
Refined Platinum Production 000oz 195 193
Tonnes Milled 000t 453 409
Grade (6E) g/t 4.25 4.22
Platinum in Concentrate 000oz 20 18
Tonnes Milled 000t 1 509 1 056
Grade (6E) g/t 3.46 3.54
Platinum in Matte 000oz 60 40
Tonnes Milled 000t 611 616
Grade (6E) g/t 3.94 3.96
Platinum in Concentrate 000oz 26 28
Refined Platinum Production 000oz 181 261
Group Unit Costs (excluding SBP) R/oz 16 600 15 326
Platinum $/oz 1 440 1 444
Palladium $/oz 723 598
Rhodium $/oz 982 1 171
Nickel $/t 13 689 15 785
Average exchange rate R/$ 10.01 8.25
*The ex-mine tonnage, grade and % Merensky statistics tabulated above excludes low grade material from surface sources.
There were no fatalities reported during the period. Regrettably, an employee who suffered
injuries following a mine accident at Zimplats, subsequently passed away from medical
complications unrelated to the accident after being released from hospital. The board of
directors and the management team have extended their sincere sympathies to his family,
friends and colleagues.
The Lost Time Injury Frequency Rate deteriorated to 4.89 per million man hours worked from
a rate of 4.21 reported for the full 2013 financial year. Safe production remains our principle
priority and, in line with this commitment, self-imposed work stoppages were increased during
the quarter and efforts were intensified to implement all strategic safety initiatives. It is
pleasing to report that the rollout of nets and bolts on the Merensky horizon in Rustenburg has
now been completed, whilst the rollout is 84% complete on the UG2 horizon.
Gross platinum production decreased by 17% to 376 000 ounces for the quarter compared
with the corresponding period for the prior year. During the quarter, increased production at
Zimplats from the Phase 2 expansion and improved output from Impala and Marula were more
than offset by lower IRS receipts and some inventory build-up at the refineries. The lower IRS
receipts were directly related to the termination of deliveries from a recycling customer in the
Mill throughput at Impala declined by 7% to 3.0 million tonnes for the period, impacted by the
closure of two old production shafts (2 Shaft and 5 Shaft) and an underground conveyor fire at
12 Shaft. However, improved mill grades, which rose by 3%, and higher metallurgical
recoveries aided by higher Merensky volumes, as well as a smelter lock-up during the quarter
more than offset this decrease, which resulted in refined platinum production for the period
under review increasing marginally to 195 000 ounces.
Operational focus remains on optimising development, equipping, construction and ledging
activities to address ore reserve flexibility constraints and to ramp-up the new 16 and 20 shaft
complexes to grow production from the current base of 700 000 ounces platinum per annum
to 850 000 ounces by 2018. It is pleasing to report that these projects remain on track and
first stoping production commenced from 16 Shaft during the quarter.
Tonnes milled at Marula rose by 11% to 453 000 tonnes for the period, aided by the
introduction of additional mining teams and increased stoping efficiencies. This improvement,
together with a marginal increase in head grade to 4.25 g/t, resulted in platinum in concentrate
production increasing by 15% to 20 000 ounces platinum.
Mill throughput increased by 43% for the quarter compared with the corresponding period a
year ago. The increase is directly attributed to the continued ramp-up in production at Mupfuti
Mine and the treatment of additional material from the ore stockpiles. Head grade declined by
2% to 3.46g/t impacted by lower grade material sourced from the stockpiles and some ore
dilution as a result of poor ground conditions being encountered in some sections of the mine.
As a consequence, platinum in matte production increased by 50% to 60 000 ounces
compared with the corresponding period. The Phase 2 expansion remains on track to
produce 270 000 ounces of platinum in early 2015.
Following the inauguration of a new government in Zimbabwe, the Company’s indigenisation
plan will now be reviewed by the new Minister of Indigenisation. These discussions will also
include further engagement on the previously announced land acquisition by the government
Mimosa produced 26 000 ounces of platinum in concentrate during the period, in line with
steady-state refined production of approximately 100 000 ounces of platinum per annum.
There have been no new developments regarding Mimosa’s proposed indigenisation plan.
Throughput for the quarter at IRS decreased by 31% to 181 000 ounces of platinum compared
with the corresponding period for the prior year. This was largely as a result of the cessation
of deliveries from a recycling customer and some build-up in pipeline stocks at the refineries.
GROUP UNIT COSTS
Unit costs continue to be impacted by mining inflation and the transition from old to new shafts
at Impala Rustenburg. Cost per platinum ounce rose by approximately 8% from the
corresponding period to R16 600 per platinum ounce in the quarter. We continue to work on
the turnaround plan at Impala Rustenburg and our capital initiatives to grow production at
Impala Rustenburg and Zimplats, all of which will temper future unit cost escalation.
POST FIRST QUARTER EVENTS
Regrettably, subsequent to the end of the quarter under review there was an incident at
Impala Rustenburg when Mr Lebogang Abednego Moiteri, a panel operator at 10 Shaft, was
fatally injured in a fall-of-ground. The board of directors and the management team have
extended their sincere and deepest sympathies to his family, friends and colleagues.
This incident has deeply affected everybody at Implats as this has been the first fatality at
Impala Rustenburg in almost six months and, significantly, the first fall of ground fatality, which
have historically been a major cause of fatal incidents, in more than 16 months. The incident
occurred in the UG2 reef horizon in an area where nets and bolts have not yet been
employed. Management has intensified its efforts to complete the roll-out of nets and bolts
and employee alignment with the group’s safety processes and philosophies to ensure that
accidents of this nature do not occur again in the future.
4 November 2013
Enquiries should be directed to:
Johan Theron - Group Executive: Corporate Relations
+27 11 731 9013/43
+27 82 809 0166
Deutsche Securities (SA) Proprietary Limited
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