IMPALA PLATINUM HOLDINGS LIMITED - Third quarter p26 Apr 2018
IMP 201804260003A
Third quarter production report for the period 1 January to 31 March 2018

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 to 31 March 2018

ImplatsĂ Chief Executive Officer, Nico Muller, commented: ˘Group tonnes milled improved by 17%
this quarter against the prior comparable period, and by 10% for the nine-month period ended 31
March 2018. Following operational issues affecting the smelter at Impala Rustenburg, which
resulted in lower refined volumes and the stockpiling of metal in concentrate, all Group furnaces
are now operational and making steady progress in processing the inventory build-up. Impala
Rustenburg and Marula have delivered encouraging results over the last quarter. Steps
implemented at the operations to improve production and cost performance are starting to deliver
positive results. However, the elimination of high-cost production at Impala Rustenburg remains
our key imperative and I am happy to report that good progress is being made with this operationĂs
strategic review to align the business with our lower future metal prices outlook. The Zimplats,
Mimosa Two Rivers and Impala Refining Services (˘IRS÷) again delivered outstanding
performances during the period under review.÷



                                                       Unaudited       Unaudited       Unaudited       Unaudited
          Operational information                    Quarter ended   Quarter ended    Nine months     Nine months
                                                     31 March 2018   31 March 2017   31 March 2018   31 March 2017


  Gross Production
  Tonnes milled                               000t           4 593           3 939          14 537          13 201
  Grade (6E)                                   g/t            3.87            3.75            3.88            3.88
  Platinum in concentrate (mine-to-market)   000oz             309             290             987             948
  Platinum in concentrate                    000oz              37              50             227             159
  (third-party and toll)


  Platinum refined                           000oz             316             331           1 042           1 110
            Impala: platinum refined         000oz              71             160             342             479
            IRS: platinum refined            000oz             245             171             700             631
  Palladium refined                          000oz             196             207             602             676
  Rhodium refined                            000oz              43              48             142             139
  Nickel refined                              000t           3 724           4 332          11 631          12 614
                                                       Unaudited       Unaudited       Unaudited       Unaudited
           Operational information                   Quarter ended   Quarter ended    Nine months     Nine months
                                                     31 March 2018   31 March 2017   31 March 2018   31 March 2017


  Managed operations production:
  Impala

  Tonnes milled                               000t           2 493           2 151           8 163           7 198
  Grade (6E)                                   g/t            4.11            3.95            4.06            4.09
  Platinum in concentrate                    000oz             151             143             499             461
  Refined platinum production                000oz              71             160             342             479

  Marula
  Tonnes milled                               000t             441             221           1 382           1 131
  Grade (6E)                                   g/t            4.12            3.69            4.28            4.28
  Platinum in concentrate                    000oz              20               9              63              52

  Zimplats
  Tonnes milled                               000t           1 659           1 567           4 992           4 872
  Grade (6E)                                   g/t            3.48            3.49            3.48            3.49
  Platinum in concentrate                    000oz              69              65             208             204
  Platinum in matte                          000oz              69              66             205             203

  JV operations production:

  Mimosa
  Tonnes milled                               000t             675             670           2 081           2 036
  Grade (6E)                                   g/t            3.82            3.85            3.84            3.84
  Platinum in concentrate                    000oz              30              30              93              91


  Two Rivers
  Tonnes milled                               000t             878             868           2 592           2 615
  Grade (6E)                                   g/t            3.56            3.78            3.65            3.95
  Platinum in concentrate                    000oz              40              43             123             140

  Group and third-party production
  Platinum refined                           000oz             245             171             700             631
     Mine-to-market platinum refined         000oz             179             168             468             478
     Third-party and toll platinum refined   000oz              67               3             232             152




SAFETY
ImplatsĂ safety strategy remains firmly centred on inculcating a zero harm safe production culture.
This transformational journey to realise and sustain safe production across all operations is
supported by various initiatives targeting effective leadership and unwavering compliance by all to
our safe production practices. While many individual business units have made significant
progress, and continue to deliver exceptional safety performances, Impala Rustenburg remains a
key focus area.

Regrettably, during the quarter ended 31 March 2018, Impala Rustenburg recorded a winch
related fatal injury. Mr Kelebone Molikoe passed away at 10 Shaft on the 19 January 2018 after
having been struck by a return-rig snatch block. The Implats board and management team extend
their sincere condolences to the family, friends and colleagues of Mr Molikoe.
PRODUCTION
Tonnes milled across the Group during the quarter ended 31 March 2018 increased by 17% to
4 593 000 tonnes, compared to 3 939 000 tonnes in the prior corresponding period. This increase
was largely as a result of a much stronger mining performance at Impala Rustenburg and Marula,
supported by sustained excellent mining contributions from all other operations.

In addition to the significantly increased mining volumes from Impala (16%) and Marula (100%),
both operations also improved mill grades, which increased by 4% and 12% respectively. This
increase in mill grade more than compensated for a planned lower mill grade from the Two Rivers
operation, which decreased by 6% period-on-period as a result of ongoing split-reef mining. As a
result, the mill grade across all the mining operations (managed and joint venture) increased by
3% to 3.87g/t (6E) during the quarter ended 31 March 2018.

Consequently, platinum in concentrate produced during the quarter across all the mining
operations increased by 7% to 309 000 ounces, compared to 290 000 ounces in the prior
corresponding period. Over the nine-month period ended 31 March 2018, the combined tonnes
milled for all operations increased by 10% to 14 537 000 tonnes. The average mill grade was
unchanged at 3.88g/t (6E) and platinum in concentrate increased by 4% to 987 000 ounces,
compared to 948 000 ounces produced in the prior corresponding period.

Platinum in concentrate received during the quarter ended 31 March 2018 from IRS third-party
and toll customers decreased by 26% to 37 000 ounces, but for the nine-month period ended 31
March 2018 there was an increase of 43% to 227 000 ounces.

Notwithstanding a much-improved operational performance, refined platinum production during
the quarter decreased by 5% to 316 000 ounces, compared to 331 000 ounces in the prior period.
This was a direct consequence of a temporary pipeline stock build-up at the Impala smelting
operation due to an electrical failure at the Number 5 furnace in February 2018.

Over the nine-month period ended 31 March 2018, refined platinum production was similarly
impacted by furnace maintenance work commissioned during the first half of the financial year,
which was further impacted by the electrical failure experienced during February 2018.
Consequently, Group refined platinum production during the period decreased by 6% to 1 042 000
ounces, compared to 1 110 000 ounces during the prior corresponding period. The temporary
build-up in accumulated pipeline stocks over the nine-month period amounted to 153 000 ounces
at 31 March 2018.

Furnace 5 was successfully recommissioned during April 2018 and is expected to be back at full
production from May 2018. Despite having all three furnaces back in operation during the fourth
quarter of the financial year, it is now estimated that some 100 000 platinum ounces of
accumulated pipeline stocks will not be refined within the current financial year. In an effort to
moderate the negative cash flow impact, management has sold forward some accumulated stock
during January 2018 and will consider further mitigating measures on an ongoing basis.
Impala Rustenburg
Impala Rustenburg delivered an improved operational performance compared to the previous
corresponding period, which was negatively impacted by the 14 Shaft decline fire and 1 Shaft fall-
of-ground incident.

Tonnes milled during the quarter ended 31 March 2018 increased by 16% to 2 493 000 tonnes,
compared to 2 151 000 tonnes in the previous comparable period. The mill grade, which remains
impacted by ongoing rehabilitation work at 16 ShaftĂs ore-pass system, nonetheless improved by
4% to 4.11g/t (6E).

Notwithstanding an aggregate 20% improvement in core mining performance (16% tonnes and
4% mill grade) during the quarter under review, platinum produced in concentrate only increased
by 6% to 151 000 ounces, compared to 143 000 ounces in the previous corresponding period.
This is largely because 15 000 ounces were produced from non-mining activities during the
previous comparable period (smelter reverts and other materials).

Over the nine-month period ended 31 March 2018, tonnes milled increased by 14% to 8 163 000
tonnes. The mill grade decreased by 1% to 4.06g/t (6E) and platinum produced in concentrate
increased by 8% to 499 000 ounces, compared to 461 000 ounces in the prior corresponding
period.

Although there was an improvement in fundamental mining performance, refined platinum
production during the quarter ended 31 March 2018 decreased by 56% to 71 000 ounces from
160 000 ounces in the prior period. This was as a consequence of a temporary concentrate stock
build-up during the period as a result of an electrical failure at the Number 5 furnace.

Over the nine-month period ended 31 March 2018, refined platinum production was similarly
impacted by furnace maintenance work commissioned during the first half of the financial year,
which was further impacted by the electrical failure experienced during February 2018.
Consequently, refined platinum production during the period under review decreased by 29% to
342 000 ounces, compared to 479 000 ounces in the prior corresponding period. The temporary
build-up in accumulated pipeline stocks over the nine-month reporting period amounted to 153 000
ounces at 31 March 2018.

All three transformers at the Number 5 furnace were successfully replaced during the quarter
ended 31 March 2018 and the furnace was safely recommissioned during April 2018. It is now
estimated that, although the furnace will be back at full production during May 2018, some 100 000
platinum ounces of pipeline stocks accumulated before the April 2018 recommissioning will not be
refined within the current financial year.

As a result, the full-year refined platinum guidance for Impala Rustenburg is revised to
approximately 560 000 ounces platinum.
Zimplats
Zimplats delivered a pleasing operational performance during the period under review. Tonnes
milled increased by 6% during the quarter to 1 659 000 tonnes, compared to 1 567 000 tonnes in
the prior corresponding period. The mill grade was largely maintained during the period at 3.48g/t
(6E), which resulted in platinum produced in concentrate increasing by 5% to 69 000 ounces,
compared to 65 000 ounces in the prior corresponding period.

Mill throughput over the nine-month period ended 31 March 2018 increased by 2% to 4 992 000
tonnes, compared to 4 872 000 tonnes in the prior corresponding period. Platinum produced in
concentrate during this period similarly improved by 2% to 208 000 ounces from 204 000 ounces
in the previous comparable period.

The full-year production guidance for the operation is maintained at 255 000 to 265 000 ounces
platinum in concentrate but is expected to be near the top end of the guided range.

Marula
Marula delivered a strong operational turnaround following a restructuring process implemented
at the end of the 2017 financial year. The period under review saw a notable decline in community
disruptions compared to the prior comparable period, which was significantly impacted by protest
action. As a consequence, tonnes milled during the quarter ended 31 March 2018 were almost
double compared to the previous corresponding period, increasing to 441 000 tonnes from
221 000 tonnes. The mill grade improved by 12% during the quarter to 4.12g/t (6E), which resulted
in platinum produced in concentrate increasing by 122% to 20 000 ounces, compared to 9 000
ounces in the prior period.

Mill throughput over the nine-month period ended 31 March 2018 increased by 22% to 1 382 000
tonnes, compared to 1 131 000 tonnes in the corresponding period. Platinum produced in
concentrate improved by 21% to 63 000 ounces, compared to 52 000 ounces in the prior period.

The full-year production guidance for the operation is maintained at 80 000 to 90 000 ounces
platinum in concentrate.

Mimosa
Mimosa delivered another good performance during the period under review. Tonnes milled
during the period improved by 1% to 675 000 tonnes, while the mill grade reduced by 1% to 3.82g/t
(6E) and platinum produced in concentrate remained unchanged at 30 000 ounces.

Mill throughput over the nine-month period ended 31 March 2018 increased by 2% to 2 081 000
tonnes, compared to 2 036 000 tonnes in the prior period. Platinum produced in concentrate
similarly improved by 2% to 93 000 ounces, compared to 91 000 ounces in the prior period.

The full-year production guidance for the operation is maintained at 115 000 to 120 000 ounces
platinum in concentrate.
Two Rivers
Operational performance at Two Rivers was impacted by continued lower-grade split-reef mining
during the period under review. Tonnes milled during the quarter increased by 1% to 878 000
tonnes, compared to 868 000 tonnes in the prior comparable period. However, mill grade was
significantly impacted and decreased by 6% to 3.56g/t (6E). This, in turn, resulted in platinum
produced in concentrate declining by 7% to 40 000 ounces, compared to 43 000 ounces in the
prior corresponding period.

Mill throughput over the nine-month period ended 31 March 2018 decreased by 1% to 2 592 000
tonnes, while the mill grade during the period decreased by 8% to 3.65g/t (6E). Consequently,
platinum produced in concentrate during the period decreased by 12% to 123 000 ounces, from
140 000 ounces in the prior comparable period.

The full-year production guidance for the operation is maintained at 165 000 to 175 000 ounces
platinum in concentrate, and is expected to be at the lower end of the guided range.

IRS
Platinum in concentrate received during the quarter from IRS third-party and toll customers
decreased by 26% to 37 000 ounces, which was in line with planned lower deliveries over the
Christmas period. Notwithstanding, receipts for the nine-month period ended 31 March 2018
increased by 43% to 227 000 ounces.

Refined platinum production for the quarter was 43% higher than the previous period at 245 000
ounces. Over the nine-month period ended 31 March 2018, refined platinum production increased
by 11% to 700 000 ounces, compared to 631 000 ounces in the prior corresponding period. This
was largely as a result of increased toll refining receipts during the period.

The full-year production guidance for the operation is maintained at 250 000 to 260 000 ounces
platinum receipts in concentrate from third party customers, and is expected to be near the top
end of the guided range.

OUTLOOK
While ImplatsĂ operational performance has shown good improvement over the nine-month period
ended 31 March 2018, furnace challenges experienced during the period will unfortunately inhibit
all the platinum produced in concentrate during the period from being fully refined before the
financial year-end. Consequently, refined platinum guidance for the Group is revised to 1 460 000
ounces from 1 500 000 ounces previously guided, with accumulated above normal pipeline stocks
projected to be some 100 000 ounces platinum at the end of the current financial year.

The GroupĂs operating cost is expected to be between R23 600 and R24 200 per platinum ounce
on a stock-adjusted basis for the full financial year, with Group capital expenditure forecast at
R4.6 to R4.8 billion for the current financial year.
The third quarter production report for the period 1 January to 31 March 2018 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 2018
Johannesburg

Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited

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