Production update and trading statement for the six months ended 31 December 2021

(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE share code: IMP
ISIN: ZAE000083648
(“Implats” or “the Group”)

31 DECEMBER 2021

Implats will release its results for the half-year ended 31 December 2021 (“the period” or
“H1 FY2022”) on or about 1 March 2022.


Implats faced several operational challenges during the period. Extended safety stoppages,
intermittent industrial action and power supply interruptions at Impala Rustenburg had a
notable impact on production.

The ongoing impact of the Covid-19 pandemic continues to be felt in constrained labour and
skills availability and elevated absenteeism. However the Groups’ well-developed protocols
and extensive vaccination programme continue to provide meaningful protection to the health
and well-being of its employees. Currently, 87% of employees have received a second
vaccination across both managed and joint venture operations.

Gross concentrate volumes for the period decreased by 4% to 1.62 million 6E ounces from
1.68 million 6E ounces for the six months ended 31 December 2020 (“the comparative period”).
Production from managed operations declined to 1.16 million 6E ounces and joint venture
volumes to 271 000 6E ounces.

Group refined production of 1.62 million 6E ounces, including saleable production from Impala
Canada, declined by 5% from the comparative period. Refined volumes in the comparative
period benefitted from increased availability of processing capacity due to the timing of annual
processing maintenance.

Sales volumes declined by 5% to 1.55 million 6E ounces from the comparative period, in line
with lower refined production. The 10% increase in the achieved US dollar basket price was
largely offset by the 8% strengthening of the rand exchange rate, resulting in a 2%
improvement in Group sales revenue to R36 230 per 6E ounce sold.
Group capital expenditure is expected to be circa R3.6 billion compared to the R2.7 billion of
the comparative period. This is due to accelerated project spend at Zimplats and an overall
increase in capital spend across the operations as capital spend in the comparative period was
constrained by Covid-19.
Group unit costs per 6E ounce are expected to increase to circa R16 800 on a stock-adjusted
basis. Inflationary pressure was compounded by lower production volumes and the partial
payment of the previously signalled discretionary employee bonus in recognition of the Group’s
strong financial performance in FY2021, which contributed circa R565 per ounce.
One of the Rustenburg furnaces was scheduled for a partial rebuild during Q3 FY2022.
However, post inspection of this furnace, a decision was made to undertake a full rebuild thus
extending the maintenance period to approximately four months. The operational impact of the
hard lockdown and inconsistent power supply arising from Eskom load curtailment measures
resulted in accelerated wear. The Group is currently assessing the impact of the extended
maintenance on refined production during H2 FY2022. An update will be provided with the
release of H1 FY2022 results.

                                                           Unaudited 6      Unaudited 6
                                                              months           months
                                                        December 2021    December 2020           %

 6E Concentrate production                      000oz            1 616            1 684        -4.0
        Managed operations                                       1 157            1 205        -4.0
          Impala                                                   608              660        -7.9
          Zimplats                                                 291              297        -2.0
          Marula                                                   135              121        10.8
          Impala Canada                                            123              127        -3.1
        JV operations                                              271              283        -4.2
          Mimosa                                                   124              132        -6.1
          Two Rivers                                               147              150        -2.5
        Third-party purchased                                      188              196        -4.0

 6E Refined production#                         000oz            1 617            1 694         -4.6
 6E Sales volumes                               000oz            1 546            1 621         -4.7
 Revenue per 6E ounce sold                      R/oz            36 230           35 635          1.7

# 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 will differ by at least 20% from those of the previous corresponding
reporting period.

In the comparative period, basic earnings of R25.1 billion or 3 222 cents per share, benefited
from the reversal of impairment losses on property, plant and equipment and the prepayment
of royalties of R10.6 billion or 1 362 cents per share (post-tax). As a result of this once-off
credit to basic earnings, Implats’ basic earnings for the period are expected to decrease by
between 39% and 50% to be between R12.5 billion and R15.3 billion. Basic earnings per share
for the period are expected to decrease by between 42% and 53%, to be between 1 529 cents
and 1 872 cents per share.

Headline earnings and headline earnings per share for the period are expected to be within
the 20% variance range prescribed by the JSE Listings Requirements. The comparative
period impairment reversals were excluded from headline earnings and headline earnings per
share and have therefore not been reported on.

The weighted average number of shares in issue for the period increased to 817.37 million
from 778.45 million in the comparative period. The number of shares in issue have increased
from 817.26 million at 30 June 2021 to 847.89 million at period end, following the issue of 30.6
million Implats shares as part of the acquisition of shares in Royal Bafokeng Platinum Limited.

Shareholders are advised that, in accordance with Regulations 111 (9) and (10) of the
Companies Regulations, 2011, read with Section 3.4 (b) (viii) (1) of the JSE Listings
Requirements, the financial information under this heading “Trading Statement” has been
reviewed and reported on by Deloitte & Touche, the Group’s external auditors. Their review
was performed in accordance with ISRE 2410 – Review of Interim Financial Information
Performed by the Independent Auditor of the Entity. A copy of the unmodified report is available
for inspection by shareholders at the registered address of Implats. Shareholders are advised
that Deloitte & Touche will issue a separate ISRE 2410 review report on the results for the half
year ended 31 December 2021, which is expected to be on or about 1 March 2022.



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

1 February 2022

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

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Date: 01-02-2022 12:53:00
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