IMPALA PLATINUM HOLDINGS LIMITED - Third quarter p26 Apr 2017
IMP 201704260001A
Third quarter production report for the period 1 January 2017 to 31 March 2017

IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ADR code: IMPUY
ISIN: ZAE000083648
(˘Implats÷ or ˘the Group÷)


Third quarter production report for the period 1 January 2017 to 31 March 2017

Johannesburg, 26 April 2017: Implats has today released its third quarter production results for
the period 1 January to 31 March 2017.

ImplatsĂ acting Chief Executive Officer, Gerhard Potgieter, commented, ˘I am pleased to report
that there has been encouraging progress across the Group in meeting our strategic objectives,
despite persistently low metal prices and a challenging operating environment, including further
community disruptions at our Marula operation. Regrettably, the ongoing community
disruptions and low metal prices have resulted in a further restructuring process at Marula that
could result in large scale job losses at this operation. This is something the business and
economy can ill afford, but remains imperative if we are to protect the financial viability of our
business and preserve jobs as far as possible÷.

                                              Unaudited       Unaudited       Unaudited       Unaudited
          Operational information           Quarter ended   Quarter ended    Nine-months     Nine-months
                                            31 March 2017   31 March 2016   31 March 2017   31 March 2016
 Implats gross refined production
 Platinum                           000oz             331             353           1 110           1 045
 Palladium                          000oz             207             219             676             633
 Rhodium                            000oz              48              53             139             137
 Nickel                              000t           4 332           3 957          12 614          12 432

 Managed operations


 Impala
 Tonnes milled                       000t           2 151           2 059           7 198           7 952
 Grade (6E)                           g/t            3.95            4.05            4.09            4.13
 Refined platinum production        000oz             160             142             479             468

 Marula
 Tonnes milled                       000t             221             390           1 131           1 277
 Grade (6E)                           g/t            3.69            4.18            4.28            4.32
 Platinum in concentrate            000oz               9              17              52              59

 Zimplats
 Tonnes milled                       000t           1 567           1 646           4 872           4 765
 Grade (6E)                           g/t            3.49            3.48            3.49            3.47
 Platinum in matte                  000oz              66              89             203             220
                                            Unaudited       Unaudited       Unaudited       Unaudited
       Operational information            Quarter ended   Quarter ended    Nine-months     Nine-months
                                          31 March 2017   31 March 2016   31 March 2017   31 March 2016


 JV operations

 Mimosa
 Tonnes milled                     000t             670             676           2 036           1 987
 Grade (6E)                         g/t            3.85            3.84            3.84            3.90
 Platinum in concentrate         000oz               30              30              91              90


 Two Rivers
 Tonnes milled                     000t             868             922           2 615           2 622
 Grade (6E)                         g/t            3.88            3.65            3.95            4.07
 Platinum in concentrate         000oz               43              49             140             141

 Group and third-party refined
 material


 Refined platinum production     000oz              171             210             631             577




SAFETY
ImplatsĂ safety strategy remains centred on transforming our safety culture.              This
transformational journey to realising zero harm is supported by various initiatives targeting
effective leadership and compliance with leading safety practices. Regrettably, during the
quarter ended 31 March 2017 the Group experienced three fatal incidents, two at Impala
Rustenburg and one at Marula. This brings the total number of fatalities for the 2017 financial
year to seven. The board of directors of Implats and the management team have extended their
sincere sympathies and support to the families, friends and colleagues of the deceased.

Safe production demands the resolve and commitment of every person in the organisation, as
well as the support and leadership of our representative trade unions and government officials.
Our management team continue to lead this process to transform our safety culture and realise
our safe production objectives. Despite the regrettable loss of life in the quarter under review,
management remains resolute in their endeavours and engagements with all stakeholders to
ensure every work place is free from serious and fatal incidents.


PRODUCTION
Gross refined platinum production for the quarter ended 31 March 2017 decreased by 6.2% to
331 000 platinum ounces, compared to 353 000 platinum ounces in the prior comparable period.
The decline in production during the quarter under review, compared to the prior corresponding
period, is largely as a result of Zimplats material that was released from processing inventory
during the quarter ended 31 March 2016. In addition, community disruptions were experienced
at Marula and Two Rivers during the current quarter, which affected production.

Over the nine-month period ended 31 March 2017, gross refined platinum production increased
by 6.2% to 1.11 million platinum ounces, compared to 1.05 million platinum ounces reported in
the prior comparable period. This increase in production is principally as a result of higher
Impala Refining Services (ŠIRSĂ) production compared to the prior corresponding period, driven
by higher third party receipts in the period under review and some material that was locked-up at
the Rustenburg smelters in the prior comparable period.


Impala
Tonnes milled at Impala Rustenburg increased by 4.5% to 2.15 million tonnes during the quarter
ended 31 March 2017 compared to the previous comparable period. Both quarters were
severely impacted by an underground fire at the 14 Shaft complex, which occurred in January
2016 and caused extensive damage to the decline shaft infrastructure. Repair work was
completed during the current quarter, which will allow the decline section to be recommissioned
during April 2017, with full production expected to be restored from June 2017. Refined platinum
production during the quarter ended 31 March 2017 increased by 12.7% to 160 000 platinum
ounces, benefitting from a release of material that was locked-up in processing inventory during
the first half of the financial year.

Tonnes milled over the nine-month period ended 31 March 2017 decreased by 9.5% to 7.20
million tonnes, compared to 7.95 million tonnes in the prior corresponding period. This decrease
was largely as a result of the temporary closure of the 14 Shaft decline section to effect repairs
after the January 2016 fire, an extended delay in operations at 1 Shaft following a fall-of-ground
fatal incident in May 2016, which resulted in some UG2 panel lengths being resized based on
assessed rock engineering risks and other ongoing regulatory safety stoppages. Refined
platinum production for the nine-month period ended 31 March 2017 increased by 2.4% to
479 000 platinum ounces, compared to 468 000 platinum ounces reported for the corresponding
period ended 31 March 2016, which was impacted by some material being locked-up in
processing inventory during the first nine months of 2016 financial year.


Marula
Operational performance at Marula has been severely disrupted by community protest action
during the quarter under review and for the first nine months of the 2017 financial year. The
protest action is directly related to certain community members being dissatisfied with the way in
which the communityĂs 50% interest in the Makgomo Chrome project is being managed by their
appointed/elected representatives. Production performance during the quarter ended 31 March
2017 was also impacted by the closure of the hybrid mining section at the Clapham shaft during
the review period. As a consequence, tonnes milled decreased by a significant 43.3% to 221
000 tonnes for the quarter ended 31 March 2017, compared to 390 000 tonnes reported in the
prior corresponding period. Platinum in concentrate for the quarter consequently decreased by
47.0% to 9 000 platinum ounces (17 000 platinum ounces in the quarter ended 31 March 2016).
Tonnes milled over the nine-month period ended 31 March 2017 decreased by 11.4% to
1.13 million tonnes, compared to 1.28 million tonnes in the prior corresponding period. In line
with this, platinum in concentrate for the nine-month period ended 31 March 2017 declined
11.9% to 52 000 platinum ounces (59 000 platinum ounces in the nine-month period ended 31
March 2016).

Despite ongoing engagement with all stakeholders to restore operational continuity and secure
the financial sustainability of the operation, continued community protest action and persistently
low metal prices have now necessitated a fundamental restructuring of the business in order to
secure the financial viability of the operation in the current operating environment. As a result,
Marula has given notice to the regulator and representative trade union in terms of Section 189A
of the Labour Relations Act of its intention to restructure the operation in a process that may
impact more than 1,000 job opportunities. The formal engagement process commenced on 28
March 2017 and will jointly explore initiatives that seek to minimise job losses as far as possible,
this process is envisaged to be concluded before the end of the 2017 financial year.


Zimplats
Tonnes milled during the quarter ended 31 March 2017 decreased by 4.8% to 1.57 million
tonnes compared to 1.65 million tonnes in the prior corresponding period. Platinum production
in matte for the quarter under review was 25.8% lower at 66 000 ounces platinum, compared to
89 000 ounces in the prior corresponding period, which was abnormally high as a result of a
release of stockpiled material during the quarter ended 31 March 2016 following a furnace
outage in May 2015.

Mill throughput over the nine-month period ended 31 March 2017 increased by 2.2% to
4.87 million tonnes, compared to 4.77 million tonnes in the prior corresponding period. Platinum
in matte for the nine months ended 31 March 2017 was 7.7% lower at 203 000 ounces,
compared to 220 000 platinum ounces in the prior comparable period, due to the stockpiled
material released during the quarter ended 31 March 2016.


Mimosa
Tonnes milled at Mimosa during the quarter ended 31 March 2017 was largely unchanged at
670 000 tonnes (676 000 tonnes in the prior corresponding period). Consequently, platinum in
concentrate production for the quarter was maintained at 30 000 ounces platinum.

Tonnes milled during the nine-month period ended 31 March 2017 increased by 2.5% to 2.04
million tonnes, compared to 1.99 million tonnes in the prior corresponding period. The increased
throughput yielded 1.1% higher platinum in concentrate production of 91 000 platinum ounces,
compared to 90 000 platinum ounces reported in the prior corresponding period.
Two Rivers
Tonnes milled decreased 5.9% to 868 000 tonnes for the quarter ended 31 March 2017
(922 000 tonnes in the prior corresponding period) due to community protest action in the area,
unrelated to the mine, but which unfortunately prevented employees from reporting for duty.
Platinum in concentrate production for the quarter consequently declined by 12.2% to 43 000
ounces platinum (49 000 ounces in the prior corresponding period).

During the nine-month period ended 31 March 2017 tonnes milled were maintained at 2.62
million tonnes, compared to the prior comparable period. Consequently, platinum in concentrate
production remained largely unchanged at 140 000 ounces platinum when compared to 141 000
platinum ounces reported in the prior comparable period.



IRS
Refined platinum production for the quarter ended 31 March 2017 was 18.6% lower at 171 000
ounces platinum compared to the prior corresponding period. This was a direct result of lower
receipts during the quarter from Zimplats, Marula and Two Rivers.

Over the nine-month period ended 31 March 2017, production increased by 9.4% to 631 000
platinum ounces, compared to 577 000 ounces in the prior comparable period. This increase is
largely attributed to higher receipts from third-party customers.



LEADERSHIP
Nico Muller joined the organisation and assumed his role as new Group Chief Executive Officer
from 3 April 2017.



OUTLOOK
ImplatsĂ full year production guidance is maintained at 1.50 million refined platinum ounces and
unit cost is expected to be approximately R22 600 per platinum ounce (previously guided at
R22 200 per platinum ounce). The increase in unit cost guidance is principally informed by
lower than expected production from Marula as a result of further community disruptions and the
costs associated with the Section 189A process at this operation. There is also an additional
impact from a weaker projected rand/dollar exchange rate which will influence the rand unit cost
guidance at Zimplats.
The third quarter production report for the period 1 January 2017 to 31 March 2017 has not been
reviewed and reported on by the external auditors of Implats.




Queries:
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



26 April 2017
Johannesburg

Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited

Date: 26/04/2017 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.