Production update and trading statement for the year ended 30 June 2021
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE share code: IMP
ADR code: IMPUY
(“Implats” or “the Group”)
PRODUCTION UPDATE AND TRADING STATEMENT FOR THE YEAR ENDED
30 JUNE 2021
Implats will release its results for the year ended 30 June 2021 (the period) on or about
2 September 2021.
Implats delivered strong operating results in the period, despite the complexity of managing
the ongoing impact of Covid-19. The Group recorded a 15.6% increase in gross concentrate
volumes to 3.29 million 6E ounces. This includes a 17.9% increase in concentrate production
to 2.37 million 6E ounces from managed operations and a 10.3% increase in concentrate
production to 561 000 6E ounces from joint ventures.
The expected destocking of in-process inventory was adversely impacted by increased load
shedding by power utility Eskom and the timing of scheduled maintenance at Group processing
facilities in the second half of the period due to Covid-19-related delays. The benefit of higher
contributions of saleable production from Impala Canada resulted in a 16.3% increase in gross
refined volumes to 3.27 million 6E ounces.
Sales volumes of 3.27 million 6E ounces benefitted from some destocking of ruthenium as
demand and pricing strengthened during the period. Revenue per 6E ounce sold is expected
to increase by 58.8% to R39 478 per ounce, reflecting record palladium and rhodium pricing
in the period and the benefit of increased sales volumes of minor PGMs on the pricing mix.
Group capital expenditure is expected to increase to circa R6.5 billion from R4.5 billion in the
comparative period. Capital expenditure in the comparative period was impacted by Covid-19
restrictions. The increased spend for the period was due to the higher operating rates
achieved, the inclusion of Impala Canada for a full reporting period and the acceleration of
spend at Zimplats following approval of the Mupani and Bimha expansion projects.
Group unit costs per 6E ounce are expected to increase to circa R14 800 on a stock-adjusted
basis. Inflationary pressures were compounded by targeted spend on development to improve
mining flexibility and asset integrity at Impala Rustenburg, as well as Covid-19-related costs.
Unaudited 12 Unaudited 12
June 2021 June 2020 %
6E Concentrate production 000oz 3 292 2 849 15.5
Managed operations 2 373 2 014 17.8
Impala 1 291 1 109 16.4
Zimplats 590 597 -1.2
Marula 231 210 10.1
Impala Canada 260 97 167.4
JV operations 561 509 10.3
Mimosa 261 248 5.4
Two Rivers 300 261 15.0
Third-party purchased 358 327 9.5
6E Refined production# 000oz 3 271 2 813 16.3
6E Sales volumes 000oz 3 274 2 793 17.2
Revenue per 6E ounce sold R/oz 39 478 24 863 58.8
# includes saleable ounces from Impala Canada
With reference to the Listings Requirements of the JSE Limited, issuers must publish a trading
statement on SENS as soon as they become reasonably certain that the financial results for
the period to be reported on will differ by at least 20% from those of the previous corresponding
A significant increase in the dollar basket price for platinum group metals (PGMs), together
with higher 6E sales volumes, resulted in higher revenue and improved profitability for the
period. Consequently, Implats is expecting headline earnings and headline earnings per share
(HEPS) for the period to increase by at least 20% from the R16 billion and 2 075 cents reported
for the year ended 30 June 2020 (the comparative period), respectively. Therefore, headline
earnings and HEPS are expected to be at least R19.2 billion and 2 490 cents, respectively.
Headline earnings for the period were impacted by the once-off non-cash IFRS2 BEE charge
of R1.5 billion (no tax impact) arising on the Marula BEE loan refinancing.
Basic earnings and basic earnings per share (EPS) for the period are also expected to increase
by at least 20% from the R16 billion and 2 066 cents reported in the comparative period,
respectively. Therefore, basic earnings and EPS are expected to be at least R19.2 billion and
2 480 cents, respectively. Basic earnings for the period were favourably impacted by the
reversal of impairment losses of R10.6 billion (post-tax).
Implats will publish a further detailed trading statement providing the specific guidance ranges
on its expected results closer to the release of its annual financial results once it has
reasonable certainty around the expected results.
The financial information on which this trading statement is based has not been reviewed and
reported on by the external auditors of Implats.
T: +27 (0) 11 731 9013/43
M: +27 (0) 82 809 0166
T : +27 (0) 21 794 8345
M : +27 (0) 82 415 3770
T: +27 (0) 11 731 9033/43
M: +27 (0) 82 498 3608
28 July 2021
Sponsor to Implats
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 28-07-2021 12:00:00
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