First quarter production report for the period 1 July to 30 September 2014
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 Group”)
First quarter production report for the period 1 July to 30 September 2014
Operational information Quarter ended Quarter ended
30 September 2014 30 September 2013
Implats Gross Refined Production
Platinum 000oz 280 376
Palladium 000oz 197 228
Rhodium 000oz 36 45
Nickel 000t 3.79 3.88
Tonnes Milled 000t 1 286 3 000
Grade (6E) g/t 4.23 4.35
Merensky Ore Milled % 50 44
Refined Platinum Production 000oz 79 195
Tonnes Milled 000t 381 453
Grade (6E) g/t 3.92 4.25
Platinum in Concentrate 000oz 16 20
Tonnes Milled 000t 1 315 1 509
Grade (6E) g/t 3.46 3.46
Platinum in Matte 000oz 52 60
Tonnes Milled 000t 636 611
Grade (6E) g/t 3.92 3.94
Platinum in Concentrate 000oz 29 26
Refined Platinum Production 000oz 202 181
Group Unit Costs (excluding SBP) R/oz 26 698 16 488
Platinum US$/oz 1 457 1 440
Palladium US$/oz 866 723
Rhodium US$/oz 1 224 982
Nickel US$/t 20 688 13 907
Average exchange rate R/$ 10.70 10.00
Implats deeply regrets to report that four employees and one contractor passed away during the
quarter in work-related incidents. Four of the fatal incidents occurred at Impala Rustenburg and
one at Marula. The board of directors and the management team have extended their sincere
sympathies to the family, friends and colleagues of those that have passed away.
Following the fatal incidents at Impala Rustenburg, all affected shaft and production units were
stopped for an extended period to fully investigate each incident and agree a detailed remedial
plan. In addition, all mining operations at the mine were suspended for a period of four days to
mourn the tragic loss of our colleagues. Management actively consulted all key stakeholders,
including employees, union leaders and representatives from the Department of Mineral
Resources (DMR), in a collaborative effort to review the Impala Rustenburg safety plan. This
plan has been amended to include a Critical Safe Behaviours programme, one of a number of
Notwithstanding these tragic incidents, the Lost Time Injury Frequency Rate (LTIFR) across the
Group improved by 33% during the review period (2.61 per million man hours worked compared
to 3.92 achieved in the 2014 financial year). Safe production remains our priority and is a key
component in delivering on the company’s strategic objectives.
Gross platinum production during the period decreased by 25.5% to 280 000 ounces, compared
to 376 000 ounces achieved in the prior corresponding period. This was primarily due to lower
production at Impala Rustenburg as it ramps-up operations following the five-month wage strike
which ended in June 2014. Lower production from Zimplats, impacted by the Bimha Mine safety
closure, and safety and industrial action stoppages at Marula, also impacted production.
Platinum production at Mimosa increased by 11%, while Two Rivers maintained production
levels at 44 000 platinum ounces. Impala Refining Services (IRS) throughput increased by 11%
largely due to the timing of the treatment of stockpiled material.
Mill throughput decreased by 57% to 1.29 million tonnes during the period, compared to
3.0 million tonnes in the prior corresponding period. This was a result of the operational re-start
and ramp-up following the protracted wage strike. Refined platinum production declined by 59%
to 79 000 ounces in line with the lower milled production, compared to 195 000 ounces in the
prior corresponding quarter.
Good progress in re-starting the operation during the first two months of the quarter was
interrupted by four separate fatal incidents at the mine and the subsequent closure of the mining
operation. However, full production is now imminent, and notwithstanding the delay, production
guidance for the half-year and full-year is maintained at 250 000 and 575 000 platinum ounces
respectively. A strategic review of all operations and projects has been initiated and remains on
schedule for completion by December 2014 and will be communicated to stakeholders at the
time of release of the interim results in February 2015.
Tonnes milled during the review period declined by 16% to 381 000 tonnes, compared to
453 000 tonnes in the prior corresponding period. Production was impacted by an unprotected
labour stoppage with an effective loss of a week’s production, a fatal incident and other DMR
safety closures at the mine. Lower mining production and mill grade, which declined by 8% to
3.92 g/t, were partially offset by improved recoveries. As a result, platinum in concentrate
production decreased by 20% to 16 000 ounces, compared to 20 000 ounces in the prior
Mill throughput during the period decreased by 13% to 1.32 million tonnes, compared to
1.51 million tonnes in the prior corresponding period. The lower throughput was attributable to
the safety closure of the Bimha Mine in August 2014, following a collapse within a section of the
underground working area triggered by the accelerated deterioration of ground conditions
associated with the Mutambara Shear. As a result, platinum in matte decreased by
8 000 ounces (13%) to 52 000 ounces, compared to 60 000 ounces in the prior corresponding
Six out of the eight mining crews and their fleets at the Bimha Mine have been successfully
redeployed at other mining operations to mitigate the production impact. Together with the
ramp-up of the Phase 2 expansion project scheduled to reach full production during the second
half of the financial year, platinum production is now only expected to be negatively impacted by
30 000 platinum ounces compared to the original guidance of 70 000 ounces for the financial
year. The re-engineering of mining operations and further production mitigation measures at the
Bimha Mine are ongoing.
Tonnes milled during the period increased by 4% to 636 000 tonnes, compared to 611 000
tonnes in the prior corresponding period. The increased throughput together with improved
recoveries at the mine improved platinum production by 12% to 29 000 ounces, compared to
26 000 ounces in the prior corresponding period.
IRS refined platinum production during the period increased by 11% to 202 000 ounces,
compared to 181 000 ounces in the prior corresponding period.
Capital expenditure in the first quarter amounted to R875 million, down from R1.143 billion in the
previous corresponding period. This was largely due to the restart of the major projects
following the strike at Impala Rustenburg and the reduced spend at Zimplats as the Phase 2
expansion project nears completion.
GROUP UNIT COSTS
In line with reduced platinum production, Group unit costs rose by 62% to R26 698 per platinum
ounce compared to R16 488 achieved in the previous corresponding period.
The Group’s gross cash at the end of the quarter under review was R3.3 billion.
29 October 2014
Johan Theron Alice Lourens
Group Executive: Corporate Relations Group Corporate Relations Manager
E-mail: Johan.Theron@implats.co.za E-mail: Alice.Lourens@implats.co.za
Tel: +27 11 731 9013/43 Tel: +27 11 731 9033/43
Cell: +27 82 809 0166 Cell: +27 82 498 3608
Deutsche Securities (SA) Proprietary Limited
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