First quarter production report for the period 1 July to 30 September 2021

(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ISIN: ZAE000083648

(“Implats” or “the Group”)

First quarter production report for the period 1 July to 30 September 2021
Key highlights
    •   A 20% improvement in the reported lost-time injury frequency rate, but a 5% deterioration in
        the reported all injury frequency rate. Regrettably, one fatality, resulting from a tramming
        accident at Impala Rustenburg in August.

    •   Total 6E concentrate volumes decreased 6% to 809 000 ounces, with a 5% decline in
        managed volumes to 592 000 ounces, a 3% decline in JV production to 138 000 ounces and
        16% lower third-party receipts of 80 000 ounces.

    •   Gross 6E refined and saleable production volumes declined 15% to 741 000 ounces, aligned
        with scheduled processing maintenance, with stable 6E sales volumes of 707 000 ounces.

Implats’ Chief Executive Officer, Nico Muller, commented: “After a slow start, operating momentum
improved during the quarter as we completed our annual scheduled processing maintenance, the
third wave of the Covid-19 pandemic receded in South Africa and global logistical constraints started
to ease. The improved organisational flexibility installed over recent years enabled the Group to
manage several headwinds at the start of FY2022, including unprotected industrial action and
intermittent power provision at Impala Rustenburg and a shortage of critical skills at Impala Canada.
This is a credit to our people, who continue to demonstrate remarkable adaptability, resilience and
PGM markets are experiencing heightened volatility due to global macroeconomic factors and
supply-chain constraints impacting automotive production. However, at Implats, we continue to
benefit from robust absolute pricing for our products. The sustained demand from our customer base
is indicative of the strong underlying fundamentals for PGMs.”
                                                                Unaudited            Unaudited
 Operational information                                      quarter ended        quarter ended
                                                            30 September 2021    30 September 2020

 LTIFR                                          pmmhw                     3.95                 4.91
 TIFR                                           pmmhw                     9.68                 9.19
 Fatalities                                     count                       1                    -

 Gross production
 Tonnes milled (managed operations)              000t                    5 761                6 133
 Grade (6E)                                       g/t                     3.64                 3.61

 6E in concentrate                               000oz                    809                  859
   Managed operations                            000oz                    592                  623
   JV operations                                 000oz                    138                  142
   Third-party and toll                          000oz                     80                   94

 Gross 6E refined                                000oz                     741                  870
   Impala 6E refined                             000oz                     292                  372
   IRS 6E refined                                000oz                     394                  443
   Impala Canada saleable 6E                     000oz                      55                   56
 Gross platinum refined                          000oz                     345                  408
 Gross palladium refined                         000oz                     258                  295
 Gross rhodium refined                           000oz                      44                   53
 Gross nickel refined                             000t                   3 959                3 956

 6E sales volumes                                000oz                    707                  706

 Managed operations production:
 Impala Rustenburg
 Tonnes milled                                    000t                   2 589                2 958
 Grade (6E)                                         g/t                   3.99                 3.93
 6E in concentrate                               000oz                     315                  346
 6E refined                                      000oz                     292                  372

 Tonnes milled                                    000t                   1 678                1 670
 Grade (6E)                                         g/t                   3.45                 3.49
 6E in concentrate                               000oz                     144                  148
 6E in matte (incl. concentrates sold to IRS)    000oz                     143                  142

 Tonnes milled                                    000t                     523                  525
 Grade (6E)                                         g/t                   4.73                 4.33
 6E in concentrate                               000oz                      71                   68

 Impala Canada
 Tonnes milled                                    000t                     971                  980
 Grade (6E)                                         g/t                   2.42                 2.48
 6E in concentrate                               000oz                      61                   61

 JV operations production:
 Tonnes milled                                    000t                     704                  724
 Grade (6E)                                         g/t                   3.84                 3.88
 6E in concentrate                               000oz                      61                   67

 Two Rivers
 Tonnes milled                                    000t                     852                  802
 Grade (6E)                                         g/t                   3.28                 3.37
 PGE in concentrate                              000oz                      77                   75

 Impala Refining Services production
 Gross 6E receipts                               000oz                    464                  475
   Mine-to-market                                000oz                    384                  380
   Third-party and toll                          000oz                     80                   94
 6E refined                                      000oz                    394                  443
      Mine-to-market                             000oz                    323                  321
     Third-party and toll                        000oz                     71                  121
Rounded numbers may not add up correctly

Implats remains committed to ensuring zero harm and the Group’s safety strategy is premised on
achieving safe production. Specifically, the strategy demands safe behaviour, an inherently safe work
environment and leading safety practices. Regrettably, during the quarter ended 30 September 2021,
the Group experienced one fatal incident at managed operations, resulting from a tramming accident at
Impala Rustenburg, and one at the non-managed joint venture, Two Rivers. The board and management
team have extended their sincere sympathies to the family, friends and colleagues of the deceased. Safe
production remains our principle priority and we are committed to pursuing our vision of zero harm with
sustained vigour.
At the end of September 2021, the Group’s lost-time injury frequency rate improved by 20% to 3.95 per
million man hours worked from the 4.91 and the 4.92 reported in the previous comparable quarter and
for FY2021, respectively. The all injury frequency rate deteriorated by 5% to 9.68 from the 9.19 achieved
in the previous comparable quarter.
Managing the Covid-19 pandemic remains a critical imperative at Implats. The virus and its impact
continued to be a prominent feature of the operating environment, particularly in southern Africa as the
third wave swept across the sub-continent. Pleasingly, the Group saw a reduction in active and new
Covid-19 cases as the wave of infections receded.
Implats continues to work closely with all role players in vaccinating employees and surrounding
communities against Covid-19. As at the end of the quarter, more than 80% of employees at Group
operations had received a first vaccine dose, while 62% had been fully vaccinated. At our Zimbabwean
operations, all employees are vaccinated.

Gross tonnes milled at managed operations decreased by 6% to 5.76 million tonnes during the quarter,
with lower volumes reported at Impala Rustenburg and Impala Canada offsetting gains at Zimplats. Milled
grade improved marginally to 3.64g/t and, together with improved recoveries and yield, the decline in 6E
concentrate production of 592 000 ounces at managed operations was limited to 5%. 6E concentrate
production from the joint ventures at Mimosa and Two Rivers declined by 3% to 138 000 ounces.
Impala Refining Services (IRS) 6E in concentrate receipts from third-party and toll customers declined by
16% to 80 000 ounces, resulting in gross Group concentrate production declining by 6% to 809 000
Refined 6E production, which includes saleable ounces from Impala Canada, declined by 15% to 741 000
ounces, with the annual scheduled processing maintenance, which was completed during July and
August, contributing to the decline. In the prior comparable period, gross refined volumes befitted from
unconstrained processing capacity, with the annual maintenance brought forward into the Covid-
impacted Q4 FY2020. As a result, excess 6E in-process inventory increased by circa 40 000 ounces and
the Group ended the period with circa 120 000 ounces of excess stock, which is expected to be released
before year end.
6E sales volumes of 707 000 ounces were unchanged from those in the prior comparable period.

Impala Rustenburg
Milled production at Impala Rustenburg decreased by 12% to 2.59 million tonnes. This was partially offset
by higher milled grade, as well as yield gains, and resulted in a 9% decline in 6E in concentrate production
to 315 000 ounces.
Production was impacted by unprotected industrial action among the contractor workforce, compounded
by unstable power supply, increased safety stoppages, cable theft and community disruptions. Targeted
interventions to mitigate the impact of each of these factors were developed and implemented at the

Refined 6E production of 292 000 ounces declined by 22% during the quarter from 372 000 ounces in
the prior comparable period. In FY2020, the Group expedited annual processing maintenance scheduled
for Q1 FY2021 to better match the expected ramp-up in mining production and third-party concentrate
receipts following the Covid-19 lockdown in South Africa. As a result, refined volumes in the prior
comparable period benefitted from increased availability of processing capacity.

Tonnes milled were stable at 1.68 million tonnes, with planned maintenance at the Selous concentrator
completed in the period. Delivered mill grade declined by 1% due to changes in the ore mix as Ngwarati
Mine returned to full production following rehabilitation of the box cut. 6E concentrate production was 2%
lower at 144 000 ounces, while matte volumes of 143 000 ounces improved by 1% following a scheduled
furnace reline in the prior comparable period.

Marula benefitted from improved operational continuity following safety stoppages in Q4 FY2021, with
higher stoping and development efficiencies achieved during the period. Milled volumes of 523 000
tonnes were largely unchanged, but a 9% improvement in milled head grade offset lower yields and 6E
in concentrate production increased by 5% to 71 000 ounces.

Impala Canada
Impala Canada continues to face a critical skills shortage and logistical constraints. These challenges are
regional in nature, impacting the broader North American mining industry, and are not unique to the
Ontario region in which Impala Canada’s operations are located. At Lac Des Iles, it has directly impacted
the operation’s maintenance programme, resulting in poor underground equipment availability and
absolute volumes produced.
In the period, underground volumes were supplemented by higher volumes of open pit and surface
material, while planned concentrator maintenance limited absolute milled throughput to 971 000 tonnes,
a 1% decrease from the prior comparable period. Changes in the ore mix resulted in a 2% decline in
milled head grade, while 6E volumes in concentrate produced of 61 000 ounces were 1% lower than the
prior comparable period.

Mimosa operated well during the quarter, however milled volumes were impacted by planned
maintenance and declined by 3% to 704 000 tonnes. Lower milled throughput was compounded by a dip
in recoveries, which was resolved by quarter-end, resulting in a 9% decrease in 6E concentrate
production to 61 000 ounces.

Two Rivers
Production volumes in the period were impacted by the delayed upliftment of a Section 54 safety stoppage
at the operation following the fatal accident in September. Underground mined volumes were
supplemented from surface stockpiles to mitigate the impact on ounce production and milled volumes
improved by 6% to 852 000 tonnes. Milled grade and recoveries were impacted by increased volumes of
development and stockpile tonnage and 6E volumes in concentrate increased by 2% to 77 000 ounces.

Gross receipts at IRS declined by 2% to 464 000 6E ounces. In the prior comparable period, IRS
purchases benefitted from the deferred receipt of accumulated concentrates after the force majeure was
lifted on deliveries related to Covid-19 lockdowns in Q4 FY2020. During the period under review, mine-
to-market 6E receipts increased by 1% to 384 000 ounces benefitting from higher deliveries of Zimplats
matte following deferral of delivery to Q1 FY2022. Third-party volumes declined by 16% to 80 000 ounces
6E. Refined 6E production of 394 000 ounces from both mine-to-market operations (Zimplats, Marula,
Two Rivers and Mimosa) and IRS third-party and toll customers, was 11% lower than in the previous
comparable period when IRS benefitted from increased availability at Group processing facilities.
The first quarter production report for the period 1 July to 30 September 2021 has not been reviewed and
reported on by the external auditors of Implats.

Johan Theron
T: +27 (0) 11 731 9013/17
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 9033/17
M: +27 (0) 82 498 3608

29 October 2021

Sponsor to Implats
Nedbank Corporate and Investment Banking, a division of Nedbank Limited


Date: 29-10-2021 09:00:00
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