First quarter production report for the period 1 July 2020 to 30 September 2020

(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”)

First quarter production report for the period 1 July 2020 to 30 September 2020

Key highlights

   •   Zero fatalities and a 7% and 26% improvement in the reported lost-time injury and all
       injury frequency rates, respectively

   •   An 11% increase in total 6E concentrate volumes to 859 000 ounces, with an 11% gain
       in managed volumes to 623 000 ounces, a 23% increase in JV production to 142 000
       ounces and a 6% decline in third-party receipts to 94 000 ounces

   •   A 58% improvement in gross 6E refined and saleable production volumes to 870 000
       ounces on improved availability at Group processing assets and the inclusion of
       contributions from Impala Canada

Implats’ Chief Executive Officer, Nico Muller, commented: “Implats has delivered a strong start
to FY2021 with pleasing improvements in safety and a number of notable operational gains.
This was achieved despite the continuing challenges presented by the Covid-19 pandemic and
is testament to the operational resilience our team has worked so hard to develop and entrench.
Production losses attributable to the pandemic in the quarter were minimal and our health,
safety and operating protocols have proved effective in mitigating the impact of the virus on our
operations, employees, host communities and customers. PGM pricing remains robust and we
continue to experience strong demand for our primary products. We are well positioned to
continue delivering exceptional value to all our stakeholders in the year ahead.”

                                                                 Unaudited            Unaudited
Operational information                                      Quarter ended        Quarter ended
                                                         30 September 2020    30 September 2019
Gross production:

Tonnes milled (excluding associates)            000t                 6 133                5 214
Grade (6E)                                       g/t                  3.61                 3.81
6E in concentrate (managed operations)         000oz                   623                  561
6E in concentrate (JV operations)              000oz                   142                  116
6E in concentrate (third-party and toll)       000oz                    94                  100

Gross 6E refined                               000oz                   870                  551
   Impala 6E refined                           000oz                   372                  184
   IRS 6E refined                              000oz                   443                  366
   Impala Canada saleable 6E                   000oz                    56                    0
Gross platinum refined                         000oz                   408                  281
Gross palladium refined                       000ozt                   295                  161
Gross rhodium refined                          000oz                    53                   33
Gross nickel refined                           000oz                 3 956                3 720

Managed operations production:

Tonnes milled                                   000t                 2 958                3 020
Grade (6E)                                       g/t                  3.93                 3.88
6E in concentrate                              000oz                   346                  346
6E refined                                     000oz                   372                  184

Tonnes milled                                   000t                   525                  488
Grade (6E)                                       g/t                  4.33                 4.43
6E in concentrate                              000oz                    68                   63

Tonnes milled                                   000t                 1 670                1 706
Grade (6E)                                       g/t                  3.49                 3.49
6E in concentrate                              000oz                   148                  151
6E in matte                                    000oz                   142                  151

Impala Canada
Tonnes milled                                   000t                   980                    -
Grade (6E)                                       g/t                  2.48                    -
6E in concentrate                              000oz                    61                    -

JV operations production:
Tonnes milled                                   000t                   724                  589
Grade (6E)                                       g/t                  3.88                 3.85
6E in concentrate                              000oz                    67                   54

Two Rivers
Tonnes milled                                   000t                   802                  798
Grade (6E)                                       g/t                  3.37                 3.40
6E in concentrate                              000oz                    75                   61

Mine-to-market 6E receipts (excludes Impala)   000oz                   380                  299
Third-party and toll 6E receipts               000oz                    94                  100
6E receipts                                    000oz                   474                  399
6E refined                                     000oz                   443                  366

Implats’ goal is to eliminate harm to the health and safety of our employees and contractors.
Effectively managing workplace health and safety risks, therefore, remains a key priority in
achieving the Group’s vision of zero harm. Focused attention across all operations and targeted
precautionary measures have mitigated the challenges presented by the Covid-19 pandemic
and Implats has delivered an improved safety performance in the quarter under review.

Management of the Covid-19 pandemic required extensive revisions to operating practices over
the course of 2020, with additional care required to ensure the safe start-up of operations
following Covid-related restrictions and interruptions. Pleasingly, the infection rate across the
Group, which peaked in June 2020, has maintained a steady downward trend throughout the
first quarter of FY2021. To date, the Group has recorded 2 137 infections and currently has 17
active cases.

The Group operated without a fatal incident during the quarter. The lost-time injury rate of 4.91
per million-man hours worked improved by 7% from 5.27 recorded in the first quarter of FY2020,
the all injury frequency rate of 9.19 per million-man hours worked improved by 27% over the
same period.

Gross tonnes milled at managed operations improved by 18% to 6.13 million tonnes during the
quarter, compared to 5.21 million tonnes achieved in the prior comparable period. The increase
was primarily due to the maiden inclusion of Impala Canada, but production gains at Marula
also aided this performance and helped offset slightly lower milled volumes from Impala
Rustenburg and Zimplats. The resolution of milling challenges experienced at our joint ventures
(JVs) resulted in higher volumes from both Two Rivers and Mimosa during the period.

As a result, 6E in concentrate production of 623 000 ounces at managed operations was 11%
higher than in the prior comparable quarter. JV production from Mimosa and Two Rivers
increased by 23% and helped offset the impact of lower third-party receipts in the period. Total
6E concentrate volumes rose by 82 000 ounces, or 11%, to 859 000 ounces.

Refined 6E production in the prior comparable period was significantly impacted by planned
maintenance at the Zimplats furnace and Impala Rustenburg’s smelting complex, which
constrained processing capacity. During the period under review, gross refined volumes
benefitted from the accelerated processing maintenance across the Group and the inclusion of
saleable production from Impala Canada. In total, gross refined 6E production increased by
58% to 870 000 ounces (Q1 FY2020: 551 000 ounces).

Milled production at Impala Rustenburg decreased by 2% to 2.96 million tonnes negatively
impacted by the residual effect of Covid-19 on labour availability, declining reserves at the short-
life shafts (6 and 9 shafts) and increased Eskom power failures. Higher delivered grade of 3.93
g/t (Q1 FY2020: 3.88 g/t) and improved recoveries and yield gains resulted in stable 6E in
concentrate production of 346 000 ounces. Refined 6E production increased significantly to
372 000 ounces (Q1 FY2020: 184 000 ounces) and benefitted from greater availability of
processing capacity due to the timing of scheduled maintenance in the previous comparable

Marula continues to deliver improvements in operational momentum. Tonnes milled increased
by 8% to 525 000 tonnes (Q1 FY2020: 488 000 tonnes), benefitting from a quick ramp up
following Covid-related interruptions, a step change in safety performance, the notable absence
of community disruptions and improved mining performance. Mill grade decreased by 2% to
4.33 g/t (6E) (Q1 FY2020: 4.43 g/t) but 6E in concentrate production improved in line with higher
milled tonnage to 68 000 ounces during the period (Q1 FY2020: 63 000 ounces).

Zimplats continues to benefit from uninterrupted operation and remained relatively unaffected
by the Covid-19 pandemic. Mined tonnage increased by 2% due to improved fleet productivity
and increased production from the new Mupani Mine, which is still in development. Mill
throughput of 1.67 million tonnes declined marginally due to planned maintenance at the Ngezi
concentrator during the quarter, while grade and recoveries were stable, resulting in a 2%
decline in 6E concentrate produced of 148 000 ounces (Q1 FY2020: 151 000 ounces). Routine
smelter maintenance in Q1 FY2020 resulted in elevated matte volumes relative to concentrate
production during that quarter, which normalised in the current period. As a consequence, 6E
volume in matte was 6% lower at 142 000 ounces.

Impala Canada
Operational delivery during the first quarter was impacted by the residual impact of Covid-
related challenges at the mine site and planned underground infrastructure enhancements,
which were completed in the period under review. Milled throughput of 980 000 tonnes and a
6E head grade of 2.48 g/t yielded 6E in concentrate production of 61 000 ounces.

The impact of Covid-19 infections in the broader Mimosa community were well controlled,
benefitting from the protocols and practices implemented at the onset of the pandemic. In Q1
FY2020, concentrate production at Mimosa lagged mined volumes due to extended repairs to
the milling circuit. In the period under review, mined volumes improved by 12%, while milled
tonnage of 724 000 tonnes and 6E in concentrate production of 67 000 ounces both improved
by 23% from the previous comparable quarter.

Two Rivers
The delayed return of foreign employees following Covid-related national border closures
impacted staffing levels at Two Rivers in the early weeks of the reporting period, but the mine
had returned to full staffing and production levels by mid-quarter. Concentrate production
volumes in Q1 FY2020 were heavily impacted by extended maintenance and metallurgical
challenges at the concentrator plant, which were resolved during FY2020. In the period under
review, tonnes milled were flat at 802 000 tonnes (Q1 FY2020: 798 000 tonnes), while a 1%
decrease in mill grade to 3.37g/t was more than compensated for by improved plant
performance and recoveries. As a result, 6E production in concentrate rose by 23% to 75 000
ounces (Q1 FY2020: 61 000 ounces).

Impala Refining Services (“IRS”)
Gross receipts at IRS increased by 18% to 474 000 6E ounces (Q1 FY2020: 399 000 ounces).
The rebound in mine-to-market deliveries marginally offset weaker third-party deliveries, which
declined by 6% or 6 000 ounces. Refined production increased by 21% to 443 000 ounces (Q1
FY2020: 366 000 ounces) with volumes benefitting from improved availability at Group
processing facilities.

The above information has not been reviewed and reported on by the Group’s external auditors.


 Johan Theron
 Group Executive: Corporate Relations
 Tel:    +27 11 731 9013/43
 Cell: +27 82 809 0166

 Emma Townshend
 Executive: Corporate Affairs
 Tel:    +27 21 794 8345
 Cell: +27 82 415 3770

 Alice Lourens
 Group Corporate Relations Manager
 Tel:    +27 11 731 9033/43
 Cell: +27 82 498 3608

30 October 2020

Sponsor to Implats
Nedbank Corporate and Investment Banking

Date: 30-10-2020 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.