IMPALA PLATINUM HOLDINGS LIMITED - Consolidated An13 Sep 2018
IMP 201809130001A
Consolidated Annual Results 2018

IMPALA PLATINUM HOLDINGS LIMITED                  
(Incorporated in the Republic of South Africa)
Registration number: 1957/001979/06
Share codes: 
JSE: IMP 
ADRs: IMPUY
ISIN: ZAE000083648
ISIN: ZAE000247458

Consolidated Annual Results 2018

Key features for the year

IMPALA PLATINUM HOLDINGS LIMITED (IMPLATS) IS ONE OF THE WORLD'S FOREMOST PRODUCERS OF PLATINUM AND 
ASSOCIATED PLATINUM GROUP METALS (PGMS). IMPLATS IS CURRENTLY STRUCTURED AROUND FIVE MAIN OPERATIONS 
WITH A TOTAL OF 20 UNDERGROUND SHAFTS. OUR OPERATIONS ARE LOCATED WITHIN THE BUSHVELD COMPLEX IN 
SOUTH AFRICA AND THE GREAT DYKE IN ZIMBABWE, THE TWO MOST SIGNIFICANT PGM-BEARING ORE BODIES 
IN THE WORLD.

Financial
Gross profit improved by R2.1 billion to R1.6 billion. Earnings were impacted by impairments of R13.6 billion, mainly
due to the restructuring of Impala Rustenburg. The Group's funding strategy is supported by the forward sale of up to 
R2 billion of the pipeline stock, which provides sufficient liquidity during the two year restructuring period.

Operational
Tonnes milled rose 5.6% and platinum in concentrate ounces were 1% higher following strong operational performances
across the Group. Refined platinum ounces declined by 4% and were impacted by the 77 000 platinum ounce build-up in
pipeline stocks, following the rebuild and fire at Impala Rustenburg's No. 5 furnace. 

Market
The platinum market remains over-supplied, with good demand for palladium and rhodium. 

Prices achieved
A 4% decline in the US dollar platinum price and a stronger ZAR:US$ exchange rate was offset by a 35% increase in the
US dollar palladium price and a 90% increase in the rhodium price, yielding a net 5% increase in the rand basket price
per platinum ounce.

Safety
Seven fatalities in the earlier part of the year were regrettable and unacceptable. Corrective measures taken
contributed to a seven-month fatality-free record for Implats.

Strategic response
Strong advances were made towards the stated policy of eliminating loss-making production, demonstrated by the
dramatic turnaround of Marula and the restructuring decision at Impala Rustenburg. The Group strategy to rebalance 
its portfolio toward lower-cost, shallow, mechanisable assets was progressed through the acquisition of a 15% interest 
in the Waterberg project.

Group performance
                                                 Year         Year                     Year             
                                                ended        ended                    ended             
                                              30 June      30 June         Var      30 June         Var       
                                                 2018         2017           %         2016           %       
OPERATING STATISTICS                                                                                       
Gross refined production                                                                                   
Platinum                          (000oz)     1 468.1      1 529.8        (4.0)     1 438.3         6.4    
Palladium                         (000oz)       849.3        931.6        (8.8)       885.4         5.2    
Rhodium                           (000oz)       198.5        203.5        (2.5)       185.1         9.9    
Nickel                                (t)      16 226       17 464        (7.1)      17 001         2.7    
IRS metal returned (toll refined)                                                                          
Platinum                          (000oz)       140.2         14.5           -          0.1                
Palladium                         (000oz)        67.0          8.9       652.8          1.5       493.3    
Rhodium                           (000oz)        23.4          2.4           -          0.0                
Nickel                                (t)       3 558        2 569        38.5        3 508       (26.8)   
Sales volumes                                                                                              
Platinum                          (000oz)     1 354.7      1 468.9        (7.8)     1 511.6        (2.8)   
Palladium                         (000oz)       769.9        903.7       (14.8)       905.5        (0.2)   
Rhodium                           (000oz)       196.1        202.6        (3.2)       197.1         2.8    
Nickel                                (t)      12 648       14 403       (12.2)      14 184         1.5    
Prices achieved                                                                                            
Platinum                           ($/oz)         943          984        (4.2)         961         2.4    
Palladium                          ($/oz)         975          723        34.9          586        23.4    
Rhodium                            ($/oz)       1 501          788        90.5          735         7.2    
Nickel                              ($/t)      11 488        9 992        15.0        9 483         5.4    
Consolidated statistics                                                                                    
Average rate achieved               (R/$)       12.82        13.66        (6.1)       14.39        (5.1)   
Closing rate for period             (R/$)       13.73        13.07         5.0        14.69       (11.0)   
Revenue per platinum ounce sold    ($/oz)       2 023        1 806        12.0        1 627        11.0    
                                   (R/oz)      25 935       24 670         5.1       23 413         5.4    
Tonnes milled ex mine              (000t)      19 355       18 332         5.6       18 426        (0.5)   
PGM refined production            (000oz)     2 924.6      3 099.5        (5.6)     2 907.5         6.6    
Capital expenditure                  (Rm)       4 606        3 430       (34.3)       3 560         3.7    
Group unit cost per platinum     
ounce refined                      ($/oz)       1 919        1 661       (15.5)       1 507       (10.2)   
                                   (R/oz)      24 660       22 657        (8.8)      21 731        (4.3)   
Group unit cost per platinum     
ounce stock adjusted               ($/oz)       1 785        1 675        (6.6)                            
                                   (R/oz)      22 931       22 838        (0.4)                            
*  Pmmhw - per million man-hours worked
** Restated to take into account ore milled at Mimosa


Introduction 
The past year was pivotal for Implats as it embraced and advanced key strategies to align with the Group's 
evolving geopolitical and macro-economic landscape. Both jurisdictions in which the company operates have 
witnessed encouraging political changes, which will positively influence the industry and the Group's 
business interests in the future.

In Zimbabwe, Zimplats successfully concluded the release of ground north of portal 10, which does not 
form part of its 30-year mine plans. In addition, the special mining lease (SML) was successfully 
converted into two new mining leases, which, combined with partial relief on export levies, will 
enable the Zimbabwean assets to sustain and grow future financial returns.

Uncertainty in the South African policy and regulatory framework remains. However, a more collaborative 
and trusting environment is being established, which enhances the likelihood of constructive outcomes 
that will attract investors back to the mining sector. The Group remains committed to collaboration 
with all stakeholders to ensure an attractive and sustainable industry.

While platinum group metal (PGM) rand basket pricing has remained depressed, the increase in US dollar 
palladium and rhodium prices during the past year has been encouraging. 

Implats remains confident in the long-term fundamentals for PGM demand with future opportunities for 
palladium back-substitution with platinum in the manufacture of catalytic converters. However, platinum 
price support is not expected in the near term and the Group has aligned company strategies accordingly.

Current market fundamentals require much improved industry discipline, particularly in discontinuing 
unprofitable production. Implats cannot, and will not, support loss-making production and the remarkable 
return to positive Group contributions from Marula, as well as the restructuring decisions announced at 
Impala Rustenburg are therefore very pleasing. In addition, the acquisition of a 15% interest in the 
Waterberg development project is a significant step in advancing the Group strategy towards lower-cost, 
shallow, mechanisable assets.

Internally, the Group is reprioritising and rescheduling capital allocation decisions and focusing on 
effective cash management to protect the balance sheet. Key business focus areas include improved 
organisational effectiveness through enhanced accountability, performance management and effective 
strategic decision making. Social responsibility, elimination of harm to the health and safety of 
employees and preventing negative impact on the environment underpins the Group's operating philosophy 
and remain key imperatives.

In addition, other initiatives have been progressed this past year, including:
- A much improved safety performance during the second half of FY2018
- Higher output at most operations
- A pleasing operational and financial turnaround at Marula
- Securing profitable third-party PGM toll treatment through Impala Refining Services (IRS) by 
  positioning the business within Impala where the processing assets are housed

The most significant step in the transformation of the Group, however, was announced after year-end when 
the findings and recommendations of the Impala Rustenburg strategic review were released. Taking account 
of the current operating environment and macro-economic realities, the outcome concluded that a radical 
and urgent transition into a leaner, more concentrated and profitable operation is critical to support 
the future success of the Group. 

The implementation of the Impala Rustenburg plan will be phased in over the next two years to ensure 
the transition occurs in a socially responsible manner. The key outcomes of the restructuring, which 
is expected to be concluded by the end of the 2021 financial year, include:
- A reduced mining 'footprint' from 11 to six operating shafts as operations are stopped at end-of-life 
  and uneconomical shafts
- Production reducing from the previously guided 750 000 platinum ounces to 520 000 platinum ounces a year
- The total labour complement (employees and contractors) reducing from approximately 40 000 to 27 000 
  from 2021

This plan is expected to deliver a safer and profitable Impala Rustenburg centred on its best assets with 
higher quality, long-life orebodies, lower operating costs and capital intensity. Importantly, it secures 
employment for 27 000 employees and surrounding communities can continue to participate in Implats' 
procurement, training and local economic development activities. 

To initiate the restructuring process, Impala Rustenburg commenced a formal Section 189 labour reduction 
process in early August 2018 that could affect 1 500 jobs. Of this, approximately 300 employees have already 
exited the organisation due to natural attrition. It is expected that the total number of employees affected 
by the Section 189 will reduce further as the normal and ongoing process of natural attrition continues. 
Despite this, and throughout the implementation, there will be an overriding imperative to ensure that 
forced job losses are minimised through various avoidance measures. These include the transfer of workers 
to vacant positions at the 16 and 20 growth shafts, reskilling, voluntary separation, business improvement 
initiatives and exploring commercial options to exit shafts that do not fit the long-term portfolio.

In addition to the structural changes, Impala Rustenburg will continue to look at ways to improve safety, 
productivity and cost efficiency. Any material changes in the operating and business performance, or the 
pricing environment, will be considered as management seeks alternatives to further optimise the business. 
The phased approach to the implementation of the Impala Rustenburg restructuring plan will allow for 
further options to be explored and afford each shaft the opportunity to improve profitability, while 
allowing time to consult with government, unions and other stakeholders before any final decision is 
made to close or exit an unprofitable shaft.

Safety and sustainability
The safety and health of employees remains a priority and it is with deep sadness and regret that the Group 
reported seven work-related fatalities during the year  six of the fatalities occurred at Impala Rustenburg 
and one at Marula. The Implats Board and management team extend their sincere condolences to families and 
friends. The Group will continue to provide support to the dependants of the deceased.

Over the year, safety measures were tested, enhanced and altered, where necessary. Safety communication to 
employees has been improved and the emphasis remains on ensuring effective leadership, responsible behaviour, 
and driving a culture of personal accountability and interdependence. Ongoing collaboration with key 
stakeholders and a shared vision of zero harm will continue to drive further improvements through awareness, 
education, and the implementation of appropriate systems and best practice.

This renewed level of focus on safety resulted in a better performance during the second half of the year 
and the Group operated for seven months without a fatal accident, which is an Implats record. Regrettably, 
a fatal accident occurred at the Impala Rustenburg 16 Shaft in September 2018, which remains the subject 
of an investigation.

The continued effort and focus on improving safety conditions has resulted in a 6.3% improvement in the 
Group lost-time injury frequency rate (LTIFR) and 9.2% improvement in the Group total injury frequency 
rate (TIFR). At year end, 11 of the 17 operations had achieved 'millionaire' fatality-free shifts status.

The operating philosophy at Implats is underpinned by a value system centred on long-term sustainability. 
Interventions to reduce the impact of TB and HIV/Aids on our employees have had positive results, with a 
43% reduction in new pulmonary TB cases recorded over the past five years and a 51% decline in Aids-related 
deaths since 2014. No major environmental incidents were recorded during the past year and minor incidents 
reduced by 13% from 35 to 31 incidents. Water recycling exceeded Group targets and ended the year on a 
record high of 45% of total consumption. 

Host communities remain vital stakeholders and social investment expenditure has escalated by nearly 
30% year on year at the South African operations, despite the challenging financial conditions. Implats' 
focus remains on housing, education, health and training. The Group is cognisant of the economic 
challenges faced in most of the platinum producing areas and recognise the importance of a continued 
contribution during these times.

The Implats Board and management team are also aware that shareholders, who own and have invested in the 
Company, have received scant reward over the past five years. Decisive action has been taken in this 
financial year to reposition the organisation, return it to profitability in a low-price environment 
and better reward all stakeholders.

Operational review
The Group achieved encouraging operational improvements over the year. Platinum ounces in concentrate 
were 1% higher at 1.57 million platinum ounces (FY2017: 1.56 million). This was mainly due to improved 
operational performances from Impala, Marula, Mimosa and IRS, while Zimplats and Two Rivers reported 
lower contributions. 

Refined platinum production was impacted by a temporary stock build up of some 77 000 platinum ounces 
at Impala Rustenburg, which remains available for sale in the next financial year. This inventory was 
built up following furnace maintenance undertaken during the first half of the financial year and an 
electrical failure at No. 5 furnace in February 2018. 

Costs were well contained and, on a stock-adjusted basis, were largely unchanged at R22 931 per 
platinum ounce. The Group spent R4.6 billion (FY2017: R3.4 billion) on capital projects during 
the year, which is 34% higher than last year. This was largely due to higher spend on 16 and 
20 Shafts and Zimplats' Mupani mine. 

Impala Refining Services (IRS) maintained its significant cash generation to the Group, delivering 
more than R1 billion.

Impala Rustenburg
Operational performance was negatively impacted in the first half of the year by mine stoppages following 
five fatal incidents during September and October 2017. Mill throughput increased by 8% to 10.95 million 
tonnes (FY2017: 10.12 million) from the previous year largely due to the 14 Shaft recovery after the 
2016 fire (+725 000 tonnes), the 16 Shaft ramp-up (+455 000 tonnes) and performance improvements at 
1, 11 and 12 Shafts (+200 000 tonnes). This was offset to some extent by lower volumes from 9 and 10 
Shafts and the closure of 4, 7 and 7A Shafts (-670 000 tonnes). 

The PGE milled head grade improved marginally due to an increase in the stoping to development ratio, 
offset to some extent by the ore pass rehabilitation at 16 Shaft that resulted in some waste dilution. 
The higher tonnage and grade resulted in a 3% improvement in platinum in concentrate production to 
669 000 ounces (FY2017: 651 000). 

A major furnace rebuild was undertaken on one of the three operating furnaces at the smelting complex 
in the first half of the year. In February 2018, an electrical failure triggered a fire at the No. 5 
furnace transformers. Owing to these events, a stock build-up of approximately 77 000 platinum ounces 
occurred at the smelter, and refined platinum production for the year decreased by 11% to 581 000 ounces 
(FY2017: 654 600). 

Cash costs increased by 2.4% to R15.8 billion (FY2017: R15.4 billion). However, the build-up of in-process 
stock and consequent lower refined metal output resulted in refined unit costs increasing by 15% to 
R27 183 per platinum ounce (FY2017: R23 543). On a stock-adjusted basis, unit costs increased by only 
1% to R24 005 per platinum ounce (FY2017: R23 856) on the back of higher production and a strong focus 
on cost management. 

Capital expenditure increased by 12% to R2.77 billion (FY2017: R2.47 billion) mainly due to increased 
spend at 16 and 20 Shafts, as well as refurbishment and repair work at the No. 5 furnace. The cash 
outflow of R4 billion, before financing and working capital movements, was 19% higher than the previous 
year and included employee separation costs of R525 million, finance charges that were higher by 
R159 million and increased capital spend of R295 million. Impala made a gross loss of R2.79 billion 
in FY2018, a 4% improvement from the R2.91 billion loss for FY2017.

The 16 and 20 Shaft projects are critical to returning Impala Rustenburg to profitability. Both projects 
were assessed as part of the strategic review process. As a result, some duplicate shaft ore pass systems 
at 16 Shaft, as well as the upper 2 levels at 20 Shaft, were removed from the respective projects, without 
materially impacting the build-up of these shafts to full production. The capital cost profile for 20 Shaft 
has been optimised and will reduce by R445 million. 

In assessing production readiness, the rehabilitation of the C-pass and construction of the lower section 
of D-pass at 16 Shaft still need to be completed to achieve full production. Some construction work at 
20 Shaft remains outstanding and the project is now approaching completion in terms of the redefined 
project scope. Production at 16 Shaft has ramped up significantly during the year as increased face 
becomes available. Although the initial ramp-up was limited to the Merensky Reef, development access 
to the UG2 has now made concurrent mining on most horizons possible. As previously reported, the
20 Shaft ramp-up is still being hampered by challenging geological conditions, which impacts face 
availability. The mining plan is limited to the Merensky horizon and opening sufficient pit room to 
provide mining flexibility is taking longer than anticipated. This has resulted in an increased focus 
on development at the shaft. The future profitability and strategic optionality of the shaft will be 
further evaluated and optimised in FY2019. 

IRS
Impala Refining Services (IRS) continues to deliver a significant financial contribution to the Group. 
During the year, IRS received a total of 889 000 platinum ounces in concentrate (FY2017: 890 000) from 
Implats Group operations and third-party sources. Treatment and final production were constrained due 
to the Impala Rustenburg smelter maintenance programme and transformer fire during the year. However, 
refined platinum output was maintained at similar levels to the previous year at 887 000 ounces 
(FY2017: 875 000). Cash flow of R1.23 billion (FY2017: R1.18 billion) was higher but was impacted 
by an increased taxation charge and lower finance income received. Gross profit at IRS improved by 
2% to R1.55 billion (FY2017: R1.52 billion) benefiting from a once-off toll contract  140 000 ounces 
of platinum (FY2017: 14 500) was returned to third-party customers during the year under review. 

Post the end of the reporting period, and following Impala's acquisition of the metal purchase and toll 
refining operations of IRS, it became a fully integrated division of Impala, which already processes all 
the material acquired by IRS and conducts most of its regulatory and administrative duties. This secures 
IRS's business tenure through the precious metals refining licence held by Impala and simplifies the 
corporate structure and ongoing toll refining business model, with no adverse tax consequences for 
either IRS or Impala. IRS, as a division of Impala, is likely to benefit from the net value-added 
tax and income tax position of Impala. 

Marula 
The year under review saw a significant decline in community protests and disruptions. Continued 
engagement processes by the Marula team, and an intervention with the assistance of the Department 
of Mineral Resources to resolve the community chrome dispute, have been successful in mitigating 
protest action. Discussions with the various stakeholders are ongoing to secure a sustainable 
long-term resolution.

Consequently, Marula delivered an excellent operational performance. Tonnes milled increased by 
a significant 23% to 1.84 million tonnes, while PGE head grade improved marginally to 4.33g/t. 
Platinum production in concentrate rose 25% to 85 000 ounces (FY2017: 68 000), the highest annual 
production level achieved to date at this operation. The higher volumes, together with well 
contained costs, resulted in a 15% improvement in unit costs to R24 877 per platinum ounce 
(FY2017: R29 278). On the back of this strong performance, and further supported by a higher 
PGM price basket due to improved palladium and rhodium prices, Marula realised a substantial 
turnaround in cash flow before financing and working capital movements, delivering a R77 million 
cash contribution, reversing the outflow of R839 million in the previous year. Marula reported a 
R47 million gross profit in FY2018, significantly up from a gross loss of R586 million in the 
previous year. 

Zimplats
Zimplats sustained its excellent safety and production performance. Tonnes milled and PGE head 
grade were maintained at 6.6 million tonnes (FY2017: 6.7 million) and 3.48g/t (FY2017: 3.49g/t). 
Platinum production was down 4% to 271 000 platinum ounces in matte (FY2017: 281 000), impacted 
by a small lock-up in the smelter. Costs were well contained, increasing only 5% to US$1 313 per 
platinum ounce in matte (FY2017: US$1 249), affected by lower volumes, an increase in labour costs 
and the impact of a stronger rand on goods and services procured from South Africa. 

The re-establishment of Bimha Mine was completed and the operation returned to full production 
in April 2018. The Mupani decline development remains ahead of schedule and is targeting ore contact 
by April 2019. Capital expenditure rose significantly to US$135 million (FY2017: US$63 million) as 
the Bimha and Mupani developments advanced. Cash flows were lower due to the higher capital 
expenditure, but the operating entity remains cash generative. Gross profit improved on the back 
of higher US dollar metal prices and increased from R1.29 billion (US$95 million) in the previous 
year to R2.05 billion (US$160 million) in FY2018. Zimplats declared a dividend of US$65 million 
(R820 million), post the financial year-end. 

In June 2018, Zimplats agreed to release to the government of Zimbabwe land measuring 23 903 hectares 
within Zimplats' mining lease area. Following this release of ground, Zimplats now holds two separate 
and non-contiguous pieces of land measuring in aggregate 24 632 hectares. As part of this agreement, 
Zimplats' SML was converted into two new mining leases with effect from 31 May 2018, which are valid 
for the life of mine of Zimplats' mining operations. As a result, Zimplats' corporate tax rate changes 
from 15.45% to 25.75%. However, additional profits tax associated with the SML is no longer applicable. 
This secures the operating subsidiary's mining tenure, positioning it to sustain and grow future 
financial returns. 

Mimosa 
Mimosa remains a steady performer and once again delivered a strong operating result. 
Tonnes milled were 3% higher at 2.80 million (FY2017: 2.73 million), while PGE head grade was 
maintained at 3.84g/t (FY2017: 3.83g/t). Record production was achieved, and platinum production 
increased by 3% to 125 000 ounces in concentrate (FY2017: 122 000). Costs were flat at US$1 521 per 
platinum ounce in concentrate (FY2017: US$1 511). Capital expenditure increased significantly to 
US$44 million (FY2017: US$33 million) largely due to increased capital development and the extension 
of the conveyor belt system. Cash flows before financing and working capital were maintained at 
US$28 million. Gross profit of R751 million (US$60 million) (FY2017: R183 million) (US$14 million)
was underpinned by the increase in US dollar metal prices.

The envisaged export levy on unbeneficiated platinum has been lowered to 5% for exported concentrates 
and deferred by the government of Zimbabwe to 1 January 2019. Two expansion studies are being progressed 
as a potential alternative to the development of a smelter and Mimosa continues to consult with the 
government to secure a mutually beneficial outcome. 

Two Rivers
The planned mining of low-grade split-reef areas and consequential lower recoveries impacted Two Rivers' 
operational performance during the year. Tonnes milled were maintained at similar levels to the previous 
year at 3.46 million tonnes (FY2017: 3.50 million), given that 59 000 tonnes were toll-treated at a 
neighbouring mine during the previous financial year. The PGE head grade reflected split-reef mining 
and decreased by 7% to 3.63g/t (FY2017: 3.90g/t). As a result, platinum in concentrate declined by
11% from the previous year to 163 000 ounces (FY2017: 182 000). The lower production impacted operating 
costs, which rose by 12% to R14 517 per platinum ounce (FY2017: R12 925). 

The deepening of the main decline led to capital expenditure being 55% higher at R454 million 
(FY2017: R293 million). This, together with the lower volumes, affected cash flows, which were 
6% lower at R529 million. The lower volumes also affected gross profit, which was 9% lower at 
R989 million (FY2017: R1 081 million).

Waterberg 
Waterberg represents a large scale PGM resource with an attractive risk profile, given its shallow 
nature and high palladium content. This facilitates fully mechanised production with the potential 
for the project to have among the lowest operating costs in the PGM sector. The definitive feasibility 
study (DFS) is progressing satisfactorily and is expected to be completed towards the end of this 
financial year. Implats will have 90 business days following approval of the DFS to determine whether 
it wishes to exercise its option to acquire control of the project, and a further 90 business days 
to confirm acceptable financing arrangements. 

Financial review
Revenue for the year declined by 3% to R35.9 billion (FY2017: R36.8 billion), despite higher rand 
basket prices, impacted by lower sales volumes. The lower sales volumes resulted in a negative variance 
of R3.4 billion as approximately 77 000 additional platinum ounces were built up in process stock in 
the year. Overall, dollar metal prices were 12% higher year on year resulting in a positive variance 
of R4.7 billion, but was partially offset by a negative variance of R2.3 billion arising on a 6% 
stronger rand. 

Cost of sales were well contained and reduced by 8% to R34.3 billion as costs were deferred due to 
the stock build-up. Gross profit improved by R2.1 billion to R1.6 billion (FY2017: loss of R529 million). 
Group unit costs on a stock-adjusted basis were well managed, increasing marginally from R22 838 to 
R22 931 per platinum ounce as approximately R1.0 billion was realised from various cost saving 
initiatives at Impala.

Despite the increase in gross profit, earnings for the year were adversely impacted by impairments 
of R13.6 billion, of which R13 billion relates to the impairments of assets at Impala Rustenburg 
following the outcome of the strategic review and R611 million relates to the Afplats assets. 
Earnings were further impacted by a once-off, non-cash, deferred taxation charge of R1.2 billion 
arising from a change in the Zimplats tax rate from 15.45% to 25.75% (following the conclusion of 
the conversion of the SML into new mining leases), separation costs of R525 million, increased net 
finance costs as a result of higher costs on the 2022 convertible bonds, as well as a reduction in 
the cash balances at Group level. Consequently, the loss after tax increased by 33% to a loss of 
R10.8 billion from a loss of R8.1 billion in the previous year.

Free cash outflow for the year was R4.2 billion, as an additional R3.2 billion was locked up in 
working capital, largely due to the inventory build-up, while capital expenditure increased by 
R1.2 billion. Capital expenditure at Impala increased by R295 million, while at Zimplats it 
increased by R875 million, which was mainly spent on the development of Mupani and Bimha. 
Impala Rustenburg used R6.6 billion of cash after funding the additional inventory build-up 
of R3.1 billion, separation costs and R2.8 billion of capital expenditure, of which R1.4 billion 
was in respect of 16 and 20 Shafts. 

At year-end, the Group had adequate headroom of R6.2 billion comprising gross cash on hand of 
R3.7 billion (FY2017: R7.8 billion) and R2.5 billion in unutilised bank debt facilities. 
The R4 billion revolving credit facilities and the convertible bonds mature in 2021 and 2022, 
respectively. The Group remains well within all its debt covenants.

Market review 
Since the global financial crisis, the platinum market has been fundamentally over-supplied for 
the most part, with only the period of the industry-wide strike of 2014 and subsequent recovery 
being the exception. The Volkswagen scandal that broke in September 2015 has accelerated the 
erosion of diesel passenger car demand in Western Europe and there has been rapid contraction 
of the Chinese jewellery market since 2015, leaving demand off its peak and still falling. 
Combined with steady increases in recycling, these developments have driven the platinum price 
down over the past three years. There is market consensus for softer platinum demand for at 
least the next three years.

Lower prices have triggered shaft and mine closures across South Africa's Bushveld region, removing 
almost 1.5 million ounces of annual capacity to date. It is widely acknowledged that at least 
one million ounces of platinum have been produced at a loss in South Africa every year since 2012. 

Producers have been adapting to a sustained low-price environment through significant restructuring 
and streamlining of portfolios to the lowest-cost, most efficient assets. Implats' peers have shed 
high-cost assets, diversified regionally and sought to become more vertically integrated. Similarly, 
this necessitated Implats taking the bold action to address inefficiencies and limit cash burn and a 
rising cost base at Impala Rustenburg, all aimed at reinstating profitability to secure longevity 
in this increasingly competitive industry. 

The fundamentals for both palladium and rhodium remain strong, premised on forecast growth of the 
global automotive sector, coupled with tighter emissionss with palladium, forecasts for the rhodium 
market are for strengthening fundamentals. In what is currently a close-to-balanced market, forecasts 
now see this moving into relatively deep deficits sooner than previously anticipated.

Implats' rand basket PGM pricing forecast has consequently been revised further downwards. The 
pdated price forecasts are, however, conservative when benchmarked against the latest consensus 
data, with real prices in the updated forecast appreciating at a compound annual growth rate of 
2.5% over a six-year forecast period.

Mineral Resources and Mineral Reserves 
There have been material changes in the attributable Group Mineral Resource estimate, which reduced 
by 57.8 million platinum ounces. The change is dominated by the release of land at Zimplats. The 
strategic decision to exit certain prospecting rights at Imbasa and Inkosi and the Impala/Royal 
Bafokeng Resources Platinum (Pty) Ltd Unincorporated Joint Venture also contributed notably to 
the reduction. The estimate as at 30 June 2018 is dominated by Zimplats and Impala Rustenburg, 
which together contribute some 74% of the total attributable Group Mineral Resources.

Overall the attributable Group Mineral Reserve estimate did not change significantly and decreased 
by 1.2 million platinum ounces to 21.2 million platinum ounces. The resultant estimate as at 
30 June 2018 is based on a material reduction at Impala Rustenburg following the detailed strategic 
review, and a material increase at Zimplats due to the conversion of some Upper Ores (>11-degree slope) 
to Mineral Reserves. Furthermore, the addition of the RE portion of Kalkfontein at Two Rivers had a 
positive impact on the combined Group Mineral Reserves. Some 47% of the attributable Group Mineral 
Reserves (platinum) is located at Zimplats and a further 36% at Impala.

Prospects and outlook 
The South African PGM industry continues to face unprecedented challenges and uncertainties. 
Consensus forecasts remain for softer platinum demand for at least the next three years, with 
the introduction of stricter heavy-duty diesel emission regulations and a recovering global 
economy presenting upside for platinum, but only over the longer term. The immediate fundamentals 
for both palladium and rhodium remain strong, largely due to expected growth in the global 
internal combustion engine automotive market and tighter emissions regulations. 

Sustained lower metal prices and a weak rand have had a significant impact on the PGM industry. 
It is imperative that Implats becomes a viable concern at current PGM prices and it has, therefore, 
been bold in its actions to create and share value sustainably with all stakeholders in a lower 
platinum pricing environment.

Implats' focus in the short to medium term is to continue its strategic journey to transform into 
a PGM producer mining mechanised, low-cost orebodies with more appropriate metal mixes. This includes 
the determined and necessary repositioning of Impala Rustenburg to ensure the operation can contribute 
to the long-term success of the Group and its local communities. Prudent management of Implats' 
financial and cash resources during the two-year restructuring process remains a key priority. The 
implementation of the strategic review will not only strengthen Impala Rustenburg's position in the 
prevailing price environment but will also significantly improve the strategic position of the Implats 
Group to sustainably deliver improved returns to all stakeholders in the medium to long term.

Both South Africa and Zimbabwe have seen positive changes in political leadership, which have resulted 
in meaningful dialogue with the regulators. Signals of greater policy consistency have provided confidence 
in decision making, and opportunities for capital growth and expenditure plans. 

In South Africa, the most recent revision of the Mining Charter has been released for public comment. 
In our view, the principles outlined in the charter are, in the main, conducive to the growth and 
development of the minerals industry and we will continue to engage constructively to contribute 
towards a satisfactory outcome of the process.

Longer-term, the minority interest we acquired in the Waterberg project, with the option to acquire 
majority ownership, provides additional geographic and commodity diversity for the Group  away from 
deep, labour-intensive conventional operations. 

For the next financial year, platinum production estimates are as follows:
- Group refined platinum production  between 1.50 and 1.60 million ounces
- Impala  between 650 000 and 690 000 ounces
- Zimplats  between 270 000 and 280 000 ounces
- Two Rivers  between 160 000 and 170 000 ounces
- Mimosa  between 115 000 and 125 000 ounces
- Marula  between 85 000 and 95 000 ounces
- IRS third-party toll refining  between 170 000 and 180 000 ounces

The Group's operating cost, excluding the cost of retrenchment, is expected to be between R23 900 
and R24 800 per platinum ounce. Capital expenditure is planned at between R4.1 billion and R4.3 billion.

Our approach to maintaining a social licence to operate will remain underpinned by the Group's belief 
that sustainable businesses operate in a harmonious, supportive and beneficial manner for all key 
stakeholders. Implats will continue to deliver effectively on the social and labour plan commitments 
in South Africa and the targeted corporate social investments in Zimbabwe.

The financial information on which this outlook is based has not been reviewed and reported on by 
Implats' external auditors.

Directorate and management 
During the year under review, independent non-executive director Mr Hugh Cameron passed away after a 
short illness. Mr Cameron served as a non-executive director and chairman of the audit committee. 
Dr Nkosana Moyo and Ms Albertinah Kekana, both non-executive directors, and Ms Brenda Berlin, 
executive director and chief financial officer, all resigned from the Board during the year 
under review. The Board extends its sincere appreciation for their dedicated contribution.

Several new appointments were made during the year and in the period immediately after year-end: 
Mr Udo Lucht was appointed as a non-executive director, Ms Lee-Ann Samuel joined Implats as an 
executive director responsible for human resources, Ms Dawn Earp was appointed as an independent 
non-executive director and chairman of the audit committee, Mr Preston Speckmann was appointed as 
an independent non-executive director and member of the audit committee, and Ms Meroonisha Kerber 
joined Implats as chief financial officer and executive director.

Approval of the financial statements
The summarised financial statements is extracted from the audited information, but is not itself 
audited. The directors of the Company take full responsibility for the preparation of the summarised 
financial statements for the period ended 30 June 2018 and that the financial information has been 
correctly extracted from the underlying consolidated financial statements.

The directors of the Company are responsible for the maintenance of adequate accounting records and 
the preparation of the consolidated financial statements and related information in a manner that 
fairly presents the state of the affairs of the Company. These consolidated financial statements 
are prepared in accordance with International Financial Reporting Standards and incorporate full 
and responsible disclosure in line with the accounting policies of the Group which are supported 
by prudent judgements and estimates.

The consolidated financial statements have been prepared under the supervision of the acting 
chief financial officer Mr B Jager, CA(SA).

The directors are also responsible for the maintenance of effective systems of internal control 
which are based on established organisational structure and procedures. These systems are designed 
to provide reasonable assurance as to the reliability of the consolidated financial statements, and 
to prevent and detect material misstatement and loss.

The consolidated financial statements have been prepared on a going-concern basis as the directors 
believe that the Company and the Group will continue to be in operation in the foreseeable future.

The consolidated financial statements have been approved by the board of directors and are signed 
on their behalf by:

MSV Gantsh   NJ Muller
Chairman     Chief executive officer

Johannesburg
13 September 2018


Consolidated statement of financial position
for the year ended 30 June 2018
                                                                     2018              2017    
                                                  Notes                Rm                Rm    
Assets                                                                                         
Non-current assets                                                                             
Property, plant and equipment                         6            36 045            47 798    
Exploration and evaluation assets                                       -               385    
Investment property                                                    90                89    
Investment in equity-accounted entities               7             4 317             3 316    
Deferred tax                                                        4 757               389    
Available-for-sale financial assets                                   198               179    
Other financial assets                                                175               148    
                                                                   45 582            52 304    
Current assets                                                                                 
Inventories                                           8            11 745             8 307    
Trade and other receivables                                         4 409             3 736    
Other financial assets                                                  3                 2    
Prepayments                                                           724             1 293    
Cash and cash equivalents                                           3 705             7 839    
                                                                   20 586            21 177    
Total assets                                                       66 168            73 481    
Equity and liabilities                                                                         
Equity                                                                                         
Share capital                                                      20 491            20 000    
Retained earnings                                                  12 302            22 982    
Foreign currency translation reserve                                4 324             3 746    
Other components of equity                                             96                79    
Equity attributable to owners of the Company                       37 213            46 807    
Non-controlling interest                                            2 380             2 425    
Total equity                                                       39 593            49 232    
Liabilities                                                                                    
Non-current liabilities                                                                        
Provision for environmental rehabilitation                          1 225             1 099    
Deferred tax                                                        5 485             4 390    
Borrowings                                            9             7 925             8 373    
Derivative financial instruments                     10                50             1 233    
Sundry liabilities                                                    285               356    
                                                                   14 970            15 451    
Current liabilities                                                                            
Trade and other payables                                            8 086             6 902    
Current tax payable                                                   992               702    
Borrowings                                            9             2 427             1 088    
Sundry liabilities                                                    100               106    
                                                                   11 605             8 798    
Total liabilities                                                  26 575            24 249    
Total equity and liabilities                                       66 168            73 481    
The notes below are an integral part of these summarised financial statements.


Consolidated statement of profit or loss and other comprehensive income
for the year ended 30 June 2018
                                                                     2018              2017    
                                                  Notes                Rm                Rm    
Revenue                                                            35 854            36 841    
Cost of sales                                        11           (34 277)          (37 370)   
Gross profit/(loss)                                                 1 577              (529)   
Other operating income                                                180             1 191    
Other operating expenses                                             (944)             (325)   
Impairment                                           12           (13 629)          (10 229)   
Royalty expense                                                      (350)             (561)   
Loss from operations                                              (13 166)          (10 453)   
Finance income                                                        350               411    
Finance cost                                                       (1 051)             (811)   
Net foreign exchange                                                          
transaction (losses)/gains                                           (662)              154    
Other income                                                        1 404               398    
Other expenses                                                       (300)             (883)   
Share of profit of                                                            
equity-accounted entities                                             383               496    
Loss before tax                                                   (13 042)          (10 688)   
Income tax credit                                                   2 249             2 590    
Loss for the year                                                 (10 793)           (8 098)   
Other comprehensive income/(loss),                                            
comprising items that may subsequently                                        
be reclassified to profit or loss:                                            
Available-for-sale financial assets                                    19                14    
Deferred tax thereon                                                   (3)               (3)   
Share of other comprehensive income/(loss)                                    
of equity-accounted entities                                          108              (219)   
Deferred tax thereon                                                  (11)               22    
Exchange differences on translating                                           
foreign operations                                                    650            (1 555)   
Deferred tax thereon                                                  (84)              203    
Other comprehensive income/(loss),                                            
comprising items that will not be                                             
subsequently reclassified                                                     
to profit or loss:                                                            
Actuarial (loss)/gain on                                                      
post-employment medical benefit                                        (1)                2    
Deferred tax thereon                                                    -                 -    
Total comprehensive loss                                          (10 115)           (9 634)   
(Loss)/profit attributable to:                                                                 
Owners of the Company                                             (10 679)           (8 220)   
Non-controlling interest                                             (114)              122    
                                                                  (10 793)           (8 098)   
Total comprehensive loss                                                      
attributable to:                                                              
Owners of the Company                                             (10 070)           (9 554)   
Non-controlling interest                                              (45)              (80)   
                                                                  (10 115)           (9 634)   
Loss per share (cents per share)                                                               
Basic                                                              (1 486)           (1 145)   
Diluted                                                            (1 486)           (1 145)   
The notes below are an integral part of these summarised financial statements.


Consolidated statement of changes in equity
for the year ended 30 June 2018
                                                                               Share-                               
                                                                                based         Total                 
                                                   Ordinary        Share      payment         share      Retained   
                                                     shares      premium      reserve       capital      earnings   
                                                         Rm           Rm           Rm            Rm            Rm         
Balance at 30 June 2017                                  18       17 614        2 368        20 000        22 982     
Bond conversion option (note16.6)                         -          450            -           450             -     
Shares purchased - Long-Term                      
Incentive Plan (note 13)                                  -          (78)           -           (78)            -     
Share-based compensation expense                          -            -          119           119             -     
Total comprehensive (loss)/income                         -            -            -             -       (10 680)    
Loss for the year                                         -            -            -             -       (10 679)    
Other comprehensive income/(loss)                         -            -            -             -            (1)    
Dividends                                                 -            -            -             -             -     
Balance at 30 June 2018                                  18       17 986        2 487        20 491        12 302     
Balance at 30 June 2016                                  18       17 252        2 277        19 547        31 200     
Shares issued (note 13)                                                                                               
- Employee Share Ownership Programme                      -          479            -           479             -     
Conversion option settlement (note16.4)                   -          (79)           -           (79)            -     
Shares purchased - Long-Term                      
Incentive Plan (note 13)                                  -          (38)           -           (38)            -     
Share-based compensation expense                          -            -           91            91             -     
Total comprehensive income/(loss)                         -            -            -             -        (8 218)    
(Loss)/profit for the year                                -            -            -             -        (8 220)    
Other comprehensive income/(loss)                         -            -            -             -             2     
Transaction with non-controlling interest                 -            -            -             -             -     
Dividends                                                 -            -            -             -             -     
Balance at 30 June 2017                                  18       17 614        2 368        20 000        22 982     
The table above excludes the treasury shares.
The notes below are an integral part of these summarised financial statements.


Consolidated statement of changes in equity
for the year ended 30 June 2018 (continued)
                                             Foreign                   Attributable to:                            
                                            currency           Other        Owners             Non-         
                                         translation      components        of the      controlling         Total 
                                             reserve       of equity       Company         interest        equity 
                                                  Rm              Rm            Rm               Rm            Rm        
Balance at 30 June 2017                        3 745              80        46 807            2 425        49 232    
Bond conversion option (note16.6)                  -               -           450                -           450    
Shares purchased - Long-Term             
Incentive Plan (note 13)                           -               -           (78)               -           (78)   
Share-based compensation expense                   -               -           119                -           119    
Total comprehensive (loss)/income                579              16       (10 085)             (30)      (10 115)   
Loss for the year                                  -               -       (10 679)            (114)      (10 793)   
Other comprehensive income/(loss)                579              16           594               84           678    
Dividends                                          -               -             -              (15)          (15)   
Balance at 30 June 2018                        4 324              96        37 213            2 380        39 593    
Balance at 30 June 2016                        5 092              69        55 908            2 548        58 456    
Shares issued (note 13)                                                                                              
- Employee Share Ownership Programme               -               -           479                -           479    
Conversion option settlement (note16.4)            -               -           (79)               -           (79)   
Shares purchased - Long-Term             
Incentive Plan (note 13)                           -               -           (38)               -           (38)   
Share-based compensation expense                   -               -            91                -            91    
Total comprehensive income/(loss)             (1 347)             11        (9 554)             (80)       (9 634)   
(Loss)/profit for the year                         -               -        (8 220)             122        (8 098)   
Other comprehensive income/(loss)             (1 347)             11        (1 334)            (202)       (1 536)   
Transaction with non-controlling interest          -               -             -               11            11    
Dividends                                          -               -             -              (54)          (54)   
Balance at 30 June 2017                        3 745              80        46 807            2 425        49 232    
The table above excludes the treasury shares.
The notes below are an integral part of these summarised financial statements.


Consolidated statement of cash flows
for the year ended 30 June 201
                                                                     2018              2017    
                                                  Notes                Rm                Rm   
Cash flows from operating activities                                                           
Cash generated from operations                       13             2 364             3 049    
Exploration costs                                                      (4)               (8)   
Finance cost                                                       (1 025)             (716)   
Income tax paid                                                    (1 336)           (1 312)   
Net cash (used in)/from                                                         
operating activities                                                   (1)            1 013    
Cash flows from investing activities                                                           
Purchase of property, plant and equipment                          (4 667)           (3 432)   
Proceeds from sale of                                                           
property, plant and equipment                                          26                49    
Purchase of investment property                                        (1)                -    
Acquisition of interest in associate - Waterberg      7              (425)                -    
Purchase of available-for-sale financial assets                         -                (7)   
Interest received from held-to-maturity                                         
financial assets                                                        3                 7    
Loans granted                                                           -                (1)   
Loan repayments received                                                -                15    
Finance income                                                        182               426    
Dividends received from                                                         
equity-accounted investments                                          253               279    
Net cash used in investing activities                              (4 629)           (2 664)   
Cash flows from financing activities                                                           
Issue of ordinary shares,                                                       
net of transaction cost                                                 -               479    
Shares purchased - Long-Term Incentive Plan                           (78)              (38)   
Repayments of borrowings                                             (999)           (4 593)   
Cash from CCIRS                                                         -               728    
Proceeds from borrowings net of transaction costs                   1 500             6 278    
Dividends paid to non-controlling interest                            (15)              (54)   
Net cash from financing activities                                    408             2 800    
Net (decrease)/increase in                                                      
cash and cash equivalents                                          (4 222)            1 149    
Cash and cash equivalents at                                                    
the beginning of the year                                           7 839             6 788    
Effect of exchange rate changes on cash an                                      
d cash equivalents held in foreign currencies                          88               (98)   
Cash and cash equivalents at the end of the year                    3 705             7 839    
The notes below are an integral part of these summarised financial statements


Notes to the consolidated financial information
for the year ended 30 June 2018

1. General information
   Impala Platinum Holdings Limited (Implats, Group or Company) is one of the world's foremost producer of platinum and 
   associated Platinum Group Metals (PGMs). Implats is currently structured around five main operations with a total of 
   20 underground shafts. The operations are located within the Bushveld Complex in South Africa and the Great Dyke in 
   Zimbabwe, the two most significant PGM-bearing ore bodies in the world.
   
   The Company has its listing on the securities exchange operated by JSE Limited in South Africa, the Frankfurt Stock 
   Exchange (2022 US$ convertible bonds) and a level 1 American Depository Receipt programme in the United States of 
   America.
   
   The summarised consolidated financial information was approved for issue on 13 September 2018 by the board of 
   directors.
   
2. Audit opinion
   This summarised report is extracted from audited information, but is not itself audited. The annual financial 
   statements were audited by PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon. The audited 
   annual financial statements and the auditor's report thereon are available for inspection at the Company's registered 
   office and on the Company's website.
  
   The directors take full responsibility for the preparation of the summarised consolidated financial statements and 
   that the financial information has been correctly extracted from the underlying annual financial statements.
   
3. Basis of preparation
   The summarised consolidated financial statements for the year ended 30 June 2018 have been prepared in accordance with 
   the JSE Limited Listings Requirements (Listings Requirements) and the requirements of the Companies Act, Act 71 of 2008 
   applicable to summarised financial statements. The Listings Requirements require financial statements to be prepared in 
   accordance with the framework concepts and the measurement and recognition requirements of International Financial 
   Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and 
   Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, and contain the information 
   required by IAS 34 Interim Financial Reporting.    
  
   The summarised consolidated financial information should be read in conjunction with the consolidated financial 
   statements for the year ended 30 June 2018, which have been prepared in accordance with IFRS.
   
   The summarised consolidated financial information has been prepared under the historical cost convention except for 
   certain financial assets, financial liabilities and derivative financial instruments which are measured at fair value 
   and liabilities for cash-settled share-based payment arrangements which are measured using a binomial option model.
   The summarised consolidated financial information is presented in South African rand, which is the Company's 
   functional currency.
   
4. Accounting policies
   The principal accounting policies applied in the preparation of the consolidated financial statements, from which the 
   summarised consolidated financial statements were derived, are in terms of IFRS and are consistent with those of the 
   previous annual financial statements. The following new standards and amendments to standards have become effective 
   or have been early adopted by the Group as from 1 July 2017 without any significant impact:
   - IAS 19 - Employee benefits
   - Improvements to IFRS Standards 2015-2017 Cycle
   - IAS 28 - Investments in Associates and Joint Ventures
   
5. Segment information
   The Group distinguishes its segments between the different mining operations, refining services, chrome processing and 
   an 'all other segment'.
   
   Management has determined the operating segments based on the business activities and management structure within the 
   Group.
  
   Capital expenditure comprises additions to property, plant and equipment (note 6).
   The reportable segments' measure of profit or loss is profit after tax. This is reconciled to the entities consolidated 
   profit after tax.
   
   Impala mining segment's two largest sales customers amounted to 11% and 8% of total sales (June 2017: 12% and 10%).
                                                                         2018                              2017
                                                                             Profit/(loss)                      Profit/(loss)
                                                               Revenue          after tax         Revenue          after tax 
                                                                    Rm                 Rm              Rm                 Rm 
   Mining                                                                                                                    
   - Impala                                                     13 255            (12 332)         14 604             (9 860) 
   - Zimplats                                                    7 485                 40           7 038                576 
   - Marula                                                      2 357                (30)          1 616               (732)
   Impala Refining Services                                     22 044              1 210          21 711              1 292 
   Impala Chrome                                                   226                 47             432                127 
   All other segments                                                -               (117)             -                  29  
   Inter-segment revenue                                        (9 513)                 -          (8 560)                 - 
   Total segmental revenue/loss after tax                       35 854            (11 182)         36 841             (8 568)
   Reconciliation:                                                                                                           
   Share of profit of equity-accounted entities                                       383                                496 
   Unrealised profit in stock consolidation adjustment                               (211)                               (51)
   IRS pre-production realised on Group                                               217                                 42 
   Net realisable value adjustment made on consolidation                                -                                (17)
   Total consolidated loss after tax                                              (10 793)                            (8 098)
  
5. Segment information
                                                                          2018                              2017
                                                               Capital              Total         Capital       
                                                           expenditure             assets     expenditure       Total assets
                                                                    Rm                 Rm              Rm                 Rm 
   Mining                                                                                                                    
   - Impala                                                      2 766             29 936           2 472             35 696 
   - Zimplats                                                    1 739             20 612             864             18 353 
   - Marula                                                        101              3 796             113              3 393 
   Impala Refining Services                                          -              8 334               -              8 402 
   Impala Chrome                                                     -                150               1                161 
   All other segments                                                -             34 778             (16)            32 257 
   Total                                                         4 606             97 606           3 434             98 262 
   Inter-company accounts eliminated                                              (34 869)                           (26 279)
   Investments in equity-accounted entities                                         4 317                              3 316 
   Unrealised profit in stock, NRV and other           
   adjustments to inventory                                                          (886)                              (736)
   Impala segment bank overdraft taken to cash                                          -                             (1 091)
   Other                                                                                -                                  9 
   Total consolidated assets                                                       66 168                             73 481 
   
6. Property, plant and equipment                                                                 
                                                                        2018             2017    
                                                                          Rm               Rm    
   Opening net book amount                                            47 798           49 722    
   Capital expenditure                                                 4 606            3 434    
   Interest capitalised                                                   61                -    
   Disposals                                                             (26)             (22)   
   Depreciation (note 10)                                             (3 838)          (3 702)   
   Impairment                                                        (13 244)               -    
   Rehabilitation adjustment                                             (34)              16    
   Exchange adjustment on translation                                    722           (1 650)   
   Closing net book amount                                            36 045           47 798    
   Capital commitment                                                                            
   Commitments contracted for                                          1 703            1 636    
   Approved expenditure not yet contracted                             8 071            5 364    
                                                                       9 774            7 000    
   Less than one year                                                  4 017            4 338    
   Between one and five years                                          5 757            2 662    
                                                                                                 
                                                                       9 774            7 000    
   This expenditure will be funded internally and, if necessary, from borrowings.

7. Investment in equity-accounted investments
                                                                         2018             2017    
                                                                           Rm               Rm    
   Summary balances                                                                               
   Joint ventures                                                                                 
   Mimosa                                                               2 268            1 961    
   Associates                                                                                     
   Two Rivers                                                           1 528            1 260    
   Makgomo Chrome                                                          78               70    
   Friedshelf                                                              33               25    
   Waterberg                                                              410                -    
   Total investment in equity-accounted entities                        4 317            3 316    
   Summary movement                                                                               
   Beginning of the period                                              3 316            3 342    
   Acquisition of interest in associate - Waterberg                       425                -    
   Share of profit                                                        473              472    
   Gain - Two Rivers change of interest                                   248                -    
   Share of other comprehensive income/(loss)                             108             (219)   
   Dividends received                                                    (253)            (279)   
   End of the period                                                    4 317            3 316    
   Share of equity-accounted entities is made up as follows:                                      
   Share of profit                                                        473              472    
   Movement in unrealised profit in stock                                 (90)              24    
   Total share of profit of equity-accounted entities                     383              496    
   
8. Inventories                                                                                    
                                                                         2018             2017    
                                                                           Rm               Rm    
   Mining metal                                                                                   
   Refined metal                                                        1 381              350    
   In-process metal                                                     4 585            2 977    
                                                                        5 966            3 327    
   Non-mining metal                                                                               
   Refined metal                                                          776              993    
   In-process metal                                                     4 120            3 252
                                                                        4 896            4 245  
   Stores and materials inventories                                       883              735    
   Total carrying amount                                               11 745            8 307    
   The write-down to net realisable value comprises R250 million (2017: R78 million) for refined mining metal and 
   R1 268 million (2017: R948 million) for in-process mining metal.
   
   Included in refined metal is ruthenium on lease to third parties of 45 000 (2017: 36 000) ounces.
   
   Changes in engineering estimates of metal contained in-process resulted in an increase of in-process metal of 
   R435 (2017: R376) million.
   
   Non-mining metal consists of inventory held by Impala Refining Services. No inventories are encumbered.
   
9. Borrowings                                                                                                    
                                                                                      2018               2017    
                                                                   Notes                Rm                 Rm    
   Standard Bank Limited - BEE partners Marula                                         887                889    
   Standard Bank Limited - Zimplats term loan                                        1 167              1 111    
   Standard Bank Limited - Zimplats revolving credit facility                            -                314    
   Convertible bonds - ZAR (2018)                                    9.1                 -                303    
   Convertible bonds - US$ (2018)                                    9.2                 -                380    
   Convertible bonds - ZAR (2022)                                    9.3             2 631              2 516    
   Convertible bonds - US$ (2022)                                    9.4             2 858              2 609    
   Revolving credit facility                                         9.5             1 510                  -    
   Finance leases                                                                    1 299              1 339    
                                                                                    10 352              9 461    
   Current                                                                           2 427              1 088    
   Non-current                                                                       7 925              8 373    
   Beginning of the year                                                             9 461              9 279    
   Proceeds                                                                          1 500              6 278    
   Interest accrued                                                                    928                664    
   Interest repayments                                                                (689)              (533)   
   Capital repayments                                                                 (999)            (4 593)   
   Conversion option on 2022 Bonds                                                       -             (1 156)   
   Loss on settlement of 2018 Bonds                                                      -                  8    
   Exchange adjustment                                                                 151               (486)   
   End of the year                                                                  10 352              9 461    

9.1 Convertible bonds - ZAR (2018)                                                                                
    The remaining balance of the ZAR denominated bonds was repaid on 21 February 2018. The effective interest rate 
    was 8.5% (2017: 8.5%).

9.2 Convertible bonds - US$ (2018)
    The remaining balance of the US$ denominated bonds was repaid on 21 February 2018. The effective interest rate 
    was 3.1% (2017: 3.1%).

9.3 Convertible bonds - ZAR (2022) (note 10.3)
    The ZAR denominated bonds have a par value of R3 250 million and carry a coupon of 6.375% (R207.2 million) per 
    annum. The coupon is payable semi-annually for a period of five years ending 7 June 2022. The bond holder has 
    the option to convert the bonds to Implats' shares at a price of R50.01. The value of this conversion option 
    derivative was R676 million on issue. At the general meeting held by shareholders, shareholders' approval to 
    settle this option by means of Implats' shares was obtained, which has resulted in the bond being accounted for 
    as a compound instrument and resulted in the derivative being transferred into equity. Implats has the option to 
    call the bonds at par plus accrued interest at any time if the aggregate value of the underlying shares per bond 
    for a specified period of time is 130% or more of the principal amount of that bond. The effective interest rate 
    of the bond is 12.8%.

9.4 Convertible bonds - US$ (2022) (note 10.2)
    The US$ denominated bonds have a par value of US$250 million and carry a coupon of 3.25% (US$8.1 million) per 
    annum. The coupon is payable semi-annually for a period of five years ending 7 June 2022. The bond holder has the 
    option to convert the bonds to Implats' shares at a price of US$3.89. The value of this conversion option derivative 
    was R559 million at initial recognition. Implats has the option to call the bonds at par plus accrued interest at 
    any time if the aggregate value of the underlying shares per bond for a specified period of time is 130% or more of 
    the principal amount of that bond. The effective interest rate is 8.38%. (Refer note 10 for additional information 
    regarding the conversion option and the CCIRS entered into to hedge foreign exchange risk on this bond.)

9.5 Revolving credit facility
    During the current year, Implats drew down R1 500 million on the Standard bank facility. The facility bears interest 
    at 10.2%. The facility expires end of 2021.

10. Derivative financial instrument
                                                                           2018          2017    
    Liability                                                Notes           Rm            Rm    
    Cross-Currency Interest Rate Swap (CCIRS) (2022)          10.1            -            49    
    Conversion option - US$ convertible bond (2022)           10.2           50           547    
    Conversion option - ZAR convertible bond (2022)           10.3            -           637    
                                                                             50         1 233    
10. Cross-Currency Interest Rate Swap (CCIRS) (2022)                                             
    Implats entered into a CCIRS amounting to US$250 million to hedge the foreign exchange risk on the US$ convertible 
    bond, being: exchange rate risk on the dollar interest payments and the risk of a future cash settlement of the bonds 
    at a rand-dollar exchange rate weaker than R13.025/US$. US$250 million was swapped for R3 256 million on which Implats 
    pays a fixed interest rate to Standard Bank of 9.8%. Implats receives the 3.25% coupon on the US$250 million on the 
    same date which Implats pays-on externally to the bond holders and the interest thereon. In June 2022, Implats will 
    receive US$250 million for a payment of R3 256 million.
    
    The CCIRS is carried at its fair value of R21 million asset (2017: R49 million liability). No hedge accounting has 
    been applied.
    
10. Conversion option - US$ convertible bond (2022) (note 9.4)
    The US$ bond holders have the option to convert the bonds to Implats shares at a price of US$3.89. The conversion 
    option was valued at its fair value of R50 (June 2017: R547) million at year end, resulting in a R497 million profit 
    for the period in other income.
    
10. Conversion option - ZAR convertible bond (2022) (note 9.3)
    The ZAR bond holders have the option to convert the bonds to Implats shares at a price of R50.01. The conversion option 
    was accounted for in equity, upon receipt of shareholders approval to settle this option by means of Implats shares, at 
    a fair value of R625 million, resulting in a R12 million profit for the period in other income.
    
11. Cost of sales
                                                                                 2018                2017 
                                                                                   Rm                  Rm 
    On-mine operations                                                         16 392              16 341 
    Processing operations                                                       5 340               5 055 
    Refining and selling                                                        1 522               1 378 
    Corporate costs                                                               710                 736 
    Share-based compensation                                                       82                  88 
    Chrome operation - cost of sales                                              146                 186 
    Depreciation of operating assets                                            3 838               3 702 
    Metals purchased                                                            9 651              10 030 
    Change in metal inventories                                                (3 404)               (146)
                                                                               34 277              37 370 

12. Impairment                                                                                            
                                                                                 2018                2017 
                                                                                   Rm                  Rm 
    Impairment of non-financial assets was made up of the following:                                      
    Prepaid royalty                                                                 -              10 149 
    Property, plant and equipment                                              13 244                   - 
    Exploration and evaluation assets                                             385                   - 
    Investment property                                                             -                  80 
                                                                               13 629              10 229 
    Refer to commentary above as well as the annual financial statements notes 3 and 4 for more detail regarding 
    the impairments.

13. Cash generated from operations                                                                        
                                                                                 2018                2017 
                                                                                   Rm                  Rm 
    Profit/(loss) before tax                                                  (13 042)            (10 688)
    Adjustments for:                                                                                      
    Depreciation                                                                3 838               3 702 
    Finance cost                                                                1 051                 811 
    Impairment                                                                 13 629              10 229 
    Other                                                                         (51)               (283)
                                                                                5 425               3 771 
    Cash movements from changes in working capital:                                                       
    Inventory                                                                  (4 247)               (593)
    Receivables/payables                                                        1 186                (129)
    Cash generated from operations                                              2 364               3 049 
    
14. Headline earnings                                                                                     
                                                                                 2018                2017 
                                                                                   Rm                  Rm 
    Headline earnings attributable to equity holders of the 
    Company arise from operations as follows:
    Loss attributable to owners of the Company                                (10 679)             (8 220)
    Remeasurement adjustments:                                                                            
    Profit on disposal of property, plant and equipment                             -                 (24)
    Impairment                                                                 13 629              10 229 
    Gain - Two Rivers change in interest                                         (248)                  - 
    Insurance compensation relating to scrapping of property, 
    plant and equipment                                                             -                (154)
    Total non-controlling interest effects of adjustments                        (159)                  - 
    Total tax effects of adjustments                                           (3 771)             (2 814)
    Headline loss                                                              (1 228)               (983)
    Weighted average number of ordinary shares in issue for 
    basic earnings per share (millions)                                        718.55              718.04 
    Weighted average number of ordinary shares for diluted 
    earnings per share (millions)                                              722.11              721.79 
    Headline loss per share (cents)                                                                       
    Basic                                                                        (171)               (137)
    Diluted                                                                      (171)               (137)
                                                                                                          
15. Contingent liabilities and guarantees                                                                 
    As at the end of June 2018 the Group had contingent liabilities in respect of guarantees and other matters arising in 
    the ordinary course of business from which it is anticipated that no material liabilities will arise. The Group has 
    issued guarantees of R109 (2017: R118) million. Guarantees of R1 477 (2017: R1 396) million have been issued by third 
    parties and financial institutions on behalf of the Group consisting mainly of guarantees to the Department of Mineral 
    Resources for R1 355 (2017: R 1 277) million.
    
16. Related party transactions
    
    The Group entered into PGM purchase transactions of R3 749 (June 2017: R3 745) million with Two Rivers Platinum, an 
    associate company, resulting in a payable of R1 145 (June 2017: R1 034) million at year end. It received refining fees 
    to the value of R33 (June 2017: R32) million.
    
    The Group previously entered into sale and leaseback transactions with Friedshelf, an associate company. At the end of 
    the period, an amount of R1 192 (June 2017: R1 215) million was outstanding in terms of the lease liability. During the 
    period, interest of R125 (June 2017: R130) million was charged and a R148 (June 2017: R147) million repayment was made. 
    The finance leases have an effective interest rate of 10.2%.
    
    The Group entered into PGM purchase transactions of R3 372 (June 2017: R3 199) million with Mimosa, a joint venture, 
    resulting in a payable of R965 (June 2017: R844) million at year end. It received refining fees to the value of R285 
    (June 2017: R317) million.
    
    These transactions are entered into on an arm's-length basis at prevailing market rates.
    
    Fixed and variable key management compensation was R67 (June 2017: R60) million.
    
17. Financial Instruments
                                                                                 2018                2017    
                                                                                   Rm                  Rm    
    Financial assets - carrying amount                                                                       
    Loans and receivables                                                       6 295               9 943    
    Financial instruments at fair value through profit and loss(2)                 21                   -    
    Held-to-maturity financial assets                                              73                  70    
    Available-for-sale financial assets(1)                                        198                 179    
    Total financial assets                                                      6 587              10 192    
    Financial liabilities - carrying amount                                                                  
    Financial liabilities at amortised cost                                    16 967              14 832    
    Borrowings                                                                 10 352               9 461    
    Other financial liabilities                                                    69                  74    
    Trade payables                                                              6 535               5 289    
    Other payables                                                                 11                   8    
    Financial instruments at fair value through profit and loss(2)                 50               1 233    
    Total financial liabilities                                                17 017              16 065    
    
    The carrying amount of financial assets and liabilities approximate their fair values.
    
    1 Level 1 of the fair value hierarchy - Quoted prices in active markets for the same instrument.
    2 Level 2 of the fair value hierarchy - Valuation techniques for which significant inputs are based on observable 
      market data.
    
Forward looking and cautionary statement
Certain statements contained in this disclosure, other than the statements of historical fact, contain 
forward-looking statements regarding Implats' operations, economic performance or financial condition, 
including, without limitation, those concerning the economic outlook for the platinum industry, expectations 
regarding metal prices, production, cash costs and other operating results, growth prospects and the outlook 
of Implats' operations, including the completion and commencement of commercial operations of certain of 
Implats' exploration and production projects, its liquidity and capital resources and expenditure and the 
outcome and consequences of any pending litigation, regulatory approvals and/or legislative frameworks 
currently in the process of amendment, or any enforcement proceedings. Although Implats believes that the 
expectations reflected in such forward-looking statements are reasonable, no assurance can be given that 
such expectations will prove to be correct. Accordingly, results may differ materially from those set out 
in the forward-looking statements as a result of, among other factors, changes in economic and market 
conditions, success of business and operating initiatives, changes in the regulatory environment and 
other government actions, fluctuations in metal prices, levels of global demand and exchange rates and 
business and operational risk management. For a discussion on such factors, refer to the risk management 
section of the company's Integrated Annual Report. Implats is not obliged to update publicly or release 
any revisions to these forward-looking statements to reflect events or circumstances after the dates of 
the Annual Report or to reflect the occurrence of unanticipated events.

Disclaimer: This entire disclosure and all subsequent written or oral forward-looking statements 
attributable to Implats or any person acting on its behalf are qualified by caution. Recipients hereof 
are advised this disclosure is prepared for general information purposes and not intended to constitute 
a recommendation to buy- or offer to sell shares or securities in Implats or any other entity. Sections 
of this disclosure are not defined and assured under IFRS, but included to assist in demonstrating 
Implats' underlying financial performance. Implats recommend you address any doubts in this regard 
with an authorised independent financial advisor, stockbroker, tax advisor, accountant or suitably 
qualified professional.      
 
Date and sponsor details
13 September 2018
Johannesburg
 
Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited


Contact details and administration

Registered office
2 Fricker Road
Illovo, 2196
Private Bag X18
Northlands, 2116
Telephone: +27 (11) 731 9000
Telefax: +27 (11) 731 9254
Email: investor@implats.co.za
Registration number: 1957/001979/06
Share codes: 
JSE: IMP 
ADRs: IMPUY
ISIN: ZAE000083648
ISIN: ZAE000247458
Website: www.implats.co.za

Impala Platinum Limited and
Impala Refining Services
Head office
2 Fricker Road
Illovo, 2196
Private Bag X18
Northlands, 2116
Telephone: +27 (11) 731 9000
Telefax: +27 (11) 731 9254

Impala Platinum (Rustenburg)
PO Box 5683
Rustenburg, 0300
Telephone: +27 (14) 569 0000
Telefax: +27 (14) 569 6548

Marula Platinum
2 Fricker Road
Illovo, 2196
Private Bag X18
Northlands, 2116
Telephone: +27 (11) 731 9000
Telefax: +27 (11) 731 9254

Zimplats
1st Floor 
South Block Borrowdale Office Park 
Borrowdale Road 
Harare, Zimbabwe
PO Box 6380
Harare
Zimbabwe
Telephone: +263 (242) 886 878/85/87
Fax: +262 (242) 886 876/7
Email: info@zimplats.com

Sponsor
Deutsche Securities (SA) (Pty) Ltd

Impala Platinum Japan Limited
Uchisaiwaicho Daibiru, room number 702
3-3 Uchisaiwaicho
1-Chome, Chiyoda-ku
Tokyo
Japan
Telephone: +81 (3) 3504 0712
Telefax: +81 (3) 3508 9199

Company Secretary
Tebogo Llale
Email: tebogo.llale@implats.co.za

United Kingdom secretaries 
St James's Corporate Services Limited 
Suite 31, Second Floor
107 Cheapside
London 
EC2V 6DN 
United Kingdom
Telephone: +44 (020) 7796 8644
Telefax: +44 (020) 7796 8645
Email: phil.dexter@corpserv.co.uk

Public Officer
Ben Jager
Email: ben.jager@implats.co.za

Transfer secretaries
South Africa
Computershare Investor Services (Pty) Ltd
Rosebank Towers
15 Biermann Avenue, Rosebank
PO Box 61051, Marshalltown, 2107
Telephone: +27 (11) 370 5000
Telefax: +27 (11) 688 5200

United Kingdom
Computershare Investor Services plc
The Pavilions 
Bridgwater Road 
Bristol
BS13 8AE

Auditors
PricewaterhouseCoopers Inc.
4 Lisbon Lane
Waterfall City
Jukskei View
Johannesburg
2090

Corporate relations
Johan Theron
Investor queries may be directed to: 
Email: investor@implats.co.za

Impala Platinum Holdings Limited
Tel: +27 11 731-9000
Fax: +27 11 731-9254
investor@implats.co.za
2 Fricker Road, Illovo, 2196 
Private Bag X18, Northlands, 2116

www.implats.co.za
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