IMP,IMCB22 : Interim results for the six months ended 31 December 2019:
Interim results for the six months ended 31 December 2019

(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP 
ISIN: ZAE000083648
JSE Convertible Bond Stock Code: IMCB22
JSE Convertible Bond ISIN: ZAE000247458 

("Implats" or "the Group")


Key features for the six months  
- Board declares interim dividend of R1,25 per ordinary share - linked to free cash flow 
- Headline earnings of R3,4bn or 436 cents per share
- Free cash flow of R5,0bn 
- Net debt of R1,9bn after funding North American Palladium acquisition cost of R10,9bn
- 6% and 9% improvements in TIFR and LTIFR 
- PGM 6E dollar basket price up 36% to $1 420/6E ounce
- Rand revenue per 6E ounce sold increased by 41% to R20 888/6E 
- Further tightening in markets for palladium and rhodium expected to support higher pricing in the short 
  to medium term
- Strong longer-term underpin to industrial demand for platinum from hydrogen and fuel cell technology
- Operational and cost guidance for FY2020 remains unchanged, premised on the expected release of excess
  inventory in the second half of the financial year

Implats delivered solid results for its half year ended 31 December 2019. Sustained operating performances
from mining operations, together with robust rand PGM pricing during the period, offset short-term challenges
associated with concentrator maintenance and constrained smelter availability, resulting in improved free 
cash flow and strong headline earnings. 

This enabled the funding of the acquisition of Impala Canada through a combination of cash, a forward sale
of metal and debt. The Group was also able to reinstate dividends, based on a pay-out ratio of free cash flow
generated before growth capital of 30%. The Board declared an interim dividend of R1,25 per ordinary share,
which will be paid on 23 March 2020. 

Safety remains the Group's foremost priority. Despite 6% and 9% improvements in the total and lost-time
injury frequency rates, respectively, Implats mourns the loss of three employees at its managed operations. 

The Group's strategic re-positioning as a high-value, profitable and competitive PGM producer was
meaningfully advanced through initiatives to improve organisational effectiveness at key operations. In addition, 
a three-year wage settlement was secured with the Association of Mineworkers and Construction Union at Impala
Rustenburg and Marula. 

At Impala Rustenburg, the sustained improvement in cost performance, productivity and safety at 12 and 
14 Shafts has resulted in these operations collectively meeting the internal targets set to avoid disposal or
closure and we now expect to operate these assets for the foreseeable future. While higher pricing has provided
some medium-term life extension at 1 Shaft, 9 Shaft is likely to be closed in the short-term due to depleted
mineable reserves.

The Group delivered stable 6E in concentrate production of 1,53 million ounces, with Group refined
6E production down by 17% on constrained smelter availability due to a planned furnace rebuild at Zimplats. 

Free cash inflow of R5,0 billion improved year-on-year as received rand PGM pricing rose by 41% per ounce,
offsetting a 16% decline in 6E sales volumes due to an increase in work-in-process metal inventories.
Revenue improved by 19% to R28,0 billion, gross profit increased by more than 90% to R6,2 billion and 
headline earnings rose by 52% to R3,4 billion or 436 cents per share. 

Net cash generated from operating activities amounted to R6,0 billion for the six months. The incentivised
early conversion of the US$ bond resulted in a R3,1 billion reduction in debt as 64,3 million Implats shares
were issued in August 2019. The benefit of this, together with the payment of residual debt at Zimplats, was
partially offset by a bridging loan used to fund the acquisition of Impala Canada, and the Group ended the half
year in a net debt position of R1,9 billion.

Key financial metrics
                                             December 2019     December 2018   
Revenue                                             28 019            23 521   
Gross profit                                         6 166             3 232   
Profit for the period                                3 467             2 458   
Headline earnings                                    3 378             2 228   
Dividends (cps)                                        125                 -   
Capital expenditure (Rm)                             1 925             1 706   
Net (debt)/cash (excluding leases)                  (1 943)             (976)  
Net asset value (Rm)                                49 079            42 614   
Share performance                                                              
Earnings per share (cents)                             439               321   
Headline earning per share (cents)                     436               310   

Operating statistics
                                                             Six months     Six months   
                                                              to 31 Dec      to 31 Dec    
                                                                   2019           2018   
Gross refined production                                                                 
6Es                                               (000oz)       1 316,7        1 589,1   
Platinum                                                          657,7          799,8   
Palladium                                                         391,1          464,1   
Rhodium                                                            85,2          106,2   
Nickel                                           (tonnes)         8 126          8 074   
Sales volumes                                                                            
6Es                                               (000oz)       1 327,9        1 572,6   
Platinum                                                          675,2          773,4   
Palladium                                                         396,6          485,5   
Rhodium                                                            91,5          104,2   
Nickel                                           (tonnes)         5 198          5 949   
Prices achieved                                                                          
Platinum                                           ($/oz)           888            829   
Palladium                                                         1 647          1 035   
Rhodium                                                           4 491          2 395   
Nickel                                              ($/t)        14 772         13 399   
Consolidated statistics                                                                  
Average rate achieved                               (R/$)         14,71          14,18   
Closing rate for the period                         (R/$)         13,98          14,38   
Revenue per 6E ounce sold                          (R/oz)        20 888         14 804   
                                                   ($/oz)         1 420          1 044   
Tonnes milled ex-mine                              (000t)        10 305         10 235   
Capital expenditure                                  (Rm)         1 925          1 706   
Group unit cost per 6E ounce stock adjusted        (R/oz)        13 157         11 413   
                                                   ($/oz)           896            805   


The Board of Implats wishes to inform shareholders that it has approved the declaration of an interim cash
dividend of R1,25 per ordinary share for the six-month period ended 31 December 2019. The interim dividend has
been declared in terms of the newly approved dividend policy, which is aligned to the Company's capital
allocation framework. The dividend policy states that a dividend will be declared from 30% of free cash flow
generated, pre-growth capital, for any given period, subject to the Board's discretion. 

The Company has 799 034 147 ordinary shares in issue and the Company's tax reference number is 9700178719.
The dividend has been declared from retained earnings and will be subject to a 20% dividend withholding tax 
for shareholders who are not exempt from, or do not qualify for, a reduced rate of withholding tax. Therefore,
the net dividend amount is R1,00 per ordinary share for shareholders liable to pay the dividend withholding tax
and R1,25 per ordinary share for shareholders exempt from dividend withholding tax. Shareholders are advised
to complete the requisite declaration form to make the Company aware of their tax status. The salient dates 
are as follows:

Declaration date                                         Thursday, 27 February 2020
Last day for trading to be eligible for cash dividend    Tuesday, 17 March 2020
Trading ex-dividend commences                            Wednesday, 18 March 2020
Record date                                              Friday, 20 March 2020
Dividend payment date                                    Monday, 23 March 2020

Share certificates may not be dematerialised or rematerialised between Wednesday, 18 March 2020 and Friday,
20 March 2020, both days inclusive.

Short form announcement 
This announcement is a summarised version of the Group's full announcement and, as such, it does not contain
full or complete details pertaining to the Group's results. Investment decisions should be made after taking
into consideration the full announcement. This announcement in itself is not reviewed but extracted from 
reviewed results.

Implats' results were released on the JSE Stock Exchange News Service (SENS) on 27 February 2020 and are
available on the Group's website and They are available for inspection, 
at no charge, at our registered office (2 Fricker Road, Illovo) and the office of our sponsor (Nedbank 
Corporate and Investment Banking, 135 Rivonia Road, Sandton) from 09:00 to 16:00 weekdays. A copy of the 
full announcement may be requested from the company secretary.

This short-form announcement is the responsibility of the Board of directors. 

Transfer secretaries
South Africa: Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Ave,
Rosebank, Johannesburg, 2196, (PO Box 61051, Marshalltown, 2107)

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

Sponsor: Nedbank Corporate and Investment Banking

Directors: MSV Gantsho (Chairman), NJ Muller (Chief Executive Officer), M Kerber (Chief Financial Officer),
PW Davey*, D Earp, BT Koshane, AS Macfarlane*, FS Mufamadi, B Ngonyama, MEK Nkeli, LN Samuel, PE Speckmann, 
ZB Swanepoel

Johan Theron
T: +27 (0) 11 731 9013/43
M: +27 (0) 82 809 0166

Emma Townshend
E-mail :
T : +27 (0) 21 794 8345
M : +27 (0) 82 415 3770

Alice Lourens
T: +27 (0) 11 731 9033/43
M: +27 (0) 82 498 3608

27 February 2020

Sponsor to Implats
Nedbank Corporate and Investment Banking

Date: 27-02-2020 07:05:00
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