Reviewed preliminary results for the financial year ended 30 June 2020 and cash dividend declaration

Impala Platinum Holdings Limited
(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
ADR code: IMPUY 

(Implats or the Group)

Reviewed preliminary results for the financial 
year ended 30 June 2020 and cash dividend 

Key features for FY2020
* 14% and 11% improvements in LTIFR and TIFR, 
* 6E dollar basket price up 46% to US$1 624/oz
* Rand revenue per 6E ounce sold increased by 57% to 
  R24 863/oz
* Record headline earnings of R16.1bn or R20.75/share
* Free cash flow of R14.4bn
* Net cash of R5.7bn after funding R9.4bn North American
  Palladium acquisition cost
* Board declares final dividend of R4.00/share (R5.25/share
  full year dividend)
* Continued tightness in palladium and rhodium markets 
  expected to support firm pricing in the short to medium 
* Near-term platinum prospects remain muted, improving on 
  switching, heavy duty diesel and robust industrial demand

Safety remains the Group's foremost priority. In a 
period marked by unexpected public health and associated 
operational challenges, Implats recorded 14% and 11% 
improvements in the lost-time and total injury frequency 
rates, respectively. Despite these gains, Implats mourns 
the loss of five employees at managed operations and two 
employees at joint ventures during FY2020.

The strategic repositioning of Implats over the past 
several years enabled the Group to successfully navigate 
the challenges created by the external shock of the 
Covid-19 pandemic. Operational resilience enabled 
sustained delivery of refined metal to customers and 
the Group benefitted from robust pricing for primary 
products and achieved record financial results.

The coronavirus pandemic significantly disrupted and 
impacted business performance during the second half 
of the financial year and resulted in an opportunity 
cost of mine-to-market concentrate production of 290 000 
6E ounces. The release of previously identified excess 
inventory mitigated the impact on reported production and 
refined 6E production declined by 8% to 2.8 million ounces.

Reported unit costs were impacted by lower volumes, 
additional investment in development and changes in ore 
mix, which impacted yield. These compounded the impact of 
inflationary pressures and a weaker rand, increasing 
stock-adjusted unit costs by 12% to R13 345 per 6E ounce. 
This excludes abnormal production costs of R1.3 billion. 
If these were included, stock adjusted unit costs would 
have increased by 18% to R14 067 per 6E ounce.

Pricing for the Group's primary products was robust and, 
together with rand depreciation, drove substantial 
improvements in the Groups' financial performance. Revenue 
improved by 44% to R69.9 billion, gross profit increased to
R23.3 billion and headline earnings increased to R16.1 billion
- or R20.75 per share.

The Group generated R14.4 billion of free cash flow after 
capital investment of R4.2 billion and ended FY2020 with 
gross cash of R13.3 billion, net cash of R5.7 billion and 
liquidity headroom of R16.1 billion, notwithstanding the 
acquisition of Impala Canada, the payment of the R973 million 
interim dividend and expenditure incurred to induce the early 
conversion of the US$250 million bond.

Gains in safety and efficiency at Impala Rustenburg resulted 
in upward revisions to the planned production profile at the 
operating complex, negating the need for large-scale 
retrenchments. In Zimbabwe, operations continued to excel 
despite increasing socioeconomic pressures. The operational 
turnaround and renewed social stability at Marula sustained, 
yielding substantial financial value and, at Two Rivers, a 
project to increase processing capacity was approved and 
advanced during the year. The competitiveness of the Groups' 
portfolio was enhanced by the acquisition of Impala Canada, 
a mechanised, high-margin primary palladium producer which 
further diversified Implats' operating footprint.

Strengthened relationships with key stakeholders were 
affirmed by a multi-year wage agreement concluded without 
third-party intervention. A strong environmental performance 
underpinned the continued commitment to responsible 
corporate stewardship.

Meaningful advances were made to strengthen the Group 
balance sheet through the reduction of debt and dividend 
payments were reinstated. The capital allocation framework 
adopted during the year will serve to guide the effective 
future allocation of financial resources.

Production rates at most operations normalised back to 
near full capacity by year end and the risk of material 
disruptions as a result of the pandemic are now steadily 

FY2021 production volumes will be supported through the 
planned release of accumulated inventory. Group refined 
production is estimated at between 2.8 and 3.4 million 6E 
ounces. Implats expects Group stock-adjusted operating costs 
of between R14 500 and R15 500 per 6E ounce and capital
expenditure of between R6.0 and R6.8 billion. This guidance 
is based on an assumed R/US$ and C$/US$ exchange rate of 
R16.63/US$ and C$1.35/US$, respectively and does not account 
for further potential Covid-related public health disruptions.

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

Key financial metrics

                                               Year     Year
                                              ended    ended
                                            30 June  30 June
                                               2020     2019
Revenue                               Rm     69 851   48 629
Gross profit                          Rm     23 271    6 838
Profit for the year                   Rm     16 484    1 179
Headline earnings                     Rm     16 126    3 038
Dividends declared                   cps        525        -
Capital expenditure                   Rm      4 488    3 786
Net cash (excluding leases)           Rm      5 748    1 075
Share performance
Earnings per share                 cents      2 066      205
Headline earning per share         cents      2 075      423

Operating statistics

                                               Year     Year
                                              ended    ended
                                            30 June  30 June
                                               2020     2019
Gross refined production 
6E                                (000oz)   2 812.7  3 073.5
Platinum                          (000oz)   1 349.3  1 526.2
Palladium                         (000oz)     892.0    909.6
Rhodium                           (000oz)     180.6    205.9
Nickel                           (tonnes)    15 387   16 049
Sales volumes
6E                                (000oz)   2 792.9  3 049.1
Platinum                          (000oz)   1 371.0  1 515.2
Palladium                         (000oz)     871.7    928.8
Rhodium                           (000oz)     174.0    205.5
Nickel                           (tonnes)    10 973   12 954
Prices achieved
Platinum                         (US$/oz)       885      827
Palladium                        (US$/oz)     1 896    1 185
Rhodium                          (US$/oz)     6 870    2 568
Nickel                            (US$/t)    14 109   12 649
Consolidated statistics
Average rate achieved               (R/$)     15.31    14.20
Closing rate for the period         (R/$)     17.38    14.09
Revenue per 6E ounce sold          (R/oz)    24 863   15 790
                                   ($/oz)     1 624    1 112
Tonnes milled ex-mine              (000t)    19 576   19 469
Capital expenditure                  (Rm)     4 488    3 786
Group unit cost per 6E ounce
stock adjusted                     (R/oz)    13 345   11 886
                                   ($/oz)       851      838

Declaration of dividend
Shareholders are advised that the board has resolved to 
declare a final gross cash dividend of R4.00 per ordinary 
share for the financial year ended 30 June 2020. The final 
dividend has been declared in terms of the dividend policy 
previously communicated to shareholders. The dividend policy 
states that a dividend will be declared from 30% of free cash
flow, pre-growth capital, for any given period, subject to the 
board's discretion. The final cash dividend is in addition to 
the interim cash dividend of R1.25 declared in February 2020, 
bringing the total dividend for the financial year to R5.25
per ordinary share.

Implats has 799 034 147 ordinary shares in issue and the 
Company's tax reference number is 9700178719. The cash dividend 
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 R3.20 per ordinary share for shareholders liable to 
pay the dividend withholding tax and R4.00 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, 3 September 2020
Last day for trading to be
eligible for cash dividend:       Monday, 21 September 2020
Trading ex-dividend commences:    Tuesday, 22 September 2020
Record date:                      Friday, 25 September 2020
Dividend payment date:            Monday, 28 September 2020

Share certificates may not be dematerialised or rematerialised 
between Tuesday, 22 September 2020 and Friday, 25 September
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. Deloitte & Touche, the auditors, have issued an 
unmodified review conclusion relating to the reviewed results. 
This announcement is not reviewed, but is extracted from the 
reviewed results.

The full announcement is available on Implats' website at and on the JSE's website at 
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 also 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, NDB Orleyn, MEK Nkeli, 
LN Samuel, PE Speckmann, ZB Swanepoel (*British) 

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

Emma Townshend
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

3 September 2020

Sponsor to Implats
Nedbank Corporate and Investment Banking
Date: 03-09-2020 07:06:00
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