Third quarter production report for the period 1 January to 31 March 2022

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

(“Implats” or “the Group”)

Third quarter production report for the period 1 January to 31 March 2022
Key features of the nine months
    •   Regrettably, two fatalities were recorded in the third quarter, despite a 24.3% improvement
        in the reported lost-time injury frequency rate

    •   A 3% decrease in total 6E concentrate volumes to 2.38 million ounces, with a 4% decline in
        managed volumes to 1.70 million ounces and a 3% decrease in JV production to 407 000
        ounces, partially offset by a 1% increase in third-party receipts of 277 000 ounces

    •   Gross 6E refined production declined by 6% to 2.35 million ounces due to the timing and
        extent of processing maintenance. 6E sales volumes of 2.38 million ounces were 4% lower
        than the prior comparable period.

Implats’ Chief Executive Officer, Nico Muller, commented: “I am pleased with the improved operating
stability established across our operating assets in the period under review, which has allowed us
to reiterate our key guidance metrics for FY2022, provided with the release of our interim results.
The operating landscape continues to be challenging. Escalating geopolitical conflict, rampant
inflation, constrained supply chains and a tight labour market have compounded the production
impact of extended safety stoppages and the operating protocols required to manage Covid-19.
Improved organisational flexibility enabled Implats to withstand considerable headwinds and is a
credit to our people, who continue to demonstrate remarkable adaptability, resilience and innovation.
PGM pricing has been volatile but remains particularly robust. We continue to experience strong
demand for our primary products from our customer base, despite the demand impact of constrained
auto supply chains and the increasingly uncertain outlook for global growth. Implats generated
meaningful free cash flow during the period and our balance sheet remains strong and flexible.
The Group’s focus for the remaining months of FY2022 will include embedding operational stability
in a period where the risk of unplanned interruptions has increased. In the face of an increasingly
complex and variable operating context, it is critical that we continue working closely with our key
stakeholders, in a constructive and positive way, to ensure safe and profitable production - through
which we can deliver value to all our stakeholders.”
                                                           Unaudited    Unaudited    Unaudited   Unaudited
                                                            quarter      quarter        nine        nine
Operational information
                                                             ended        ended       months      months
                                                           31-Mar-22    31-Mar-21    31-Mar-22   31-Mar-21

LTIFR                                          Pmmhw             3.80         4.95        3.85        5.08
TIFR                                           Pmmhw             9.17        10.25       10.01        9.64
Fatalities                                     Count                2            1           7           1

Gross production
Tonnes milled (managed operations)             000t             5 357        5 591      16 659      17 380
Grade (6E)                                     g/t               3.57         3.64        3.60        3.66

6E in concentrate                              000oz             768          783        2 384       2 466
  Managed operations                           000oz             543          569        1 700       1 774
  JV operations                                000oz             136          135          407         417
  Third-party and toll                         000oz              89           79          277         275

Gross 6E refined                               000oz              735          800       2 352       2 494
  Impala 6E refined                            000oz              210          296         860       1 025
  IRS 6E refined                               000oz              467          443       1 320       1 289
  Impala Canada saleable 6E                    000oz               58           60         171         180
Gross platinum refined                         000oz              332          367       1 092       1 154
Gross palladium refined                        000oz              258          276         809         852
Gross rhodium refined                          000oz               47           48         139         150
Gross nickel refined                           000t             4 148        3 852      12 371      11 841

6E sales volumes                               000oz             838          862        2 384       2 484

Managed operations production:
Impala Rustenburg
Tonnes milled                                  000t             2 274        2 514       7 255       8 091
Grade (6E)                                     g/t               3.81         4.03        3.92        4.03
6E in concentrate                              000oz              274          307         882         967
6E refined                                     000oz              210          296         860       1 025

Tonnes milled                                  000t             1 707        1 700       5 113       5 055
Grade (6E)                                     g/t               3.40         3.39        3.41        3.46
6E in concentrate                              000oz              145          138         437         435
6E in matte (incl. concentrates sold to IRS)   000oz              149          137         432         425

Tonnes milled                                  000t               491          456       1 511       1 390
Grade (6E)                                     g/t               4.42         4.35        4.51        4.38
6E in concentrate                              000oz               62           60         197         181

Impala Canada
Tonnes milled                                  000t               886          920       2 779       2 844
Grade (6E)                                     g/t               2.80         2.71        2.65        2.62
6E in concentrate                              000oz               62           65         185         192

JV operations production:
Tonnes milled                                  000t              678           695       2 095       2 128
Grade (6E)                                     g/t               3.84         3.88        3.84        3.88
6E in concentrate                              000oz               60           63         184         196

Two Rivers
Tonnes milled                                  000t               859          798       2 533       2 429
Grade (6E)                                     g/t               3.26         3.50        3.22        3.41
PGE in concentrate                             000oz               76           71         223         222

Impala Refining Services production
Gross 6E receipts                              000oz             417          405        1 322       1 347
  Mine-to-market                               000oz             328          325        1 045        1072
  Third-party and toll                         000oz              89           79          277         275
6E refined                                     000oz             467          443        1 320       1 289

Implats’ goal is to eliminate harm to the health and safety of our employees and contractors and safe
production remains our foremost priority. The lost-time injury frequency rate (LTIFR) and all injury
frequency rate (TIFR) improved by 23% and 11% from the prior comparable quarter to 3.80 and
9.17 per million-man hours worked. Regrettably, the Group reported two fatal incidents at managed
operations during the quarter. On 14 February, Mr Elisha Khalema passed away as a result of post-
operative complications following injuries sustained during a fall-of-ground accident at Impala
Rustenburg on 13 January 2022. On 23 March, Mr Dean Myamurenje was fatally injured in a
conveyor belt accident at Zimplats’ Bimha Mine. The board and management team have extended
their sincere sympathies to the family, friends and colleagues of the deceased.
Managing the Covid-19 pandemic remains a critical Group imperative. Pleasingly, Implats continued
to benefit from its extensive vaccination campaign and well-established operating protocols and
experienced a significant reduction in the severity of employee illness and hospitalisation associated
with the Omicron variant relative to previous waves of the pandemic.

Quarter ended 31 March 2022
Gross Group concentrate production declined by 2% to 768 000 ounces. Tonnes milled at managed
operations decreased by 4% to 5.36 million tonnes during the quarter, with higher volumes at Marula
and stable production at Zimplats offset by lower production at Impala Rustenburg and Impala
Canada. A 2% decrease in milled grade to 3.57g/t 6E was offset by improved recoveries, resulting
in 6E concentrate production at managed operations declining by 5% to 543 000 ounces. 6E
concentrate production from the joint ventures at Mimosa and Two Rivers increased by 1% to
136 000 ounces. At Impala Refining Services (IRS), 6E in concentrate receipts from third-party
customers increased by 13% to 89 000 ounces.
Refined 6E production, which includes saleable ounces from Impala Canada, declined by 8% to
735 000 ounces. Production in the quarter was impacted by lower concentrate volumes, while the
prior comparable period benefitted from a reduction in excess stock levels.
6E sales volumes of 838 000 ounces declined by 3% with some destocking of finished metal
inventory to mitigate the impact of lower refined output. Sales volumes in the prior comparable period
benefitted from the destocking of iridium and ruthenium as demand and pricing for these metals

Nine months ended 31 March 2022
Group production in the nine-month period was negatively impacted by several operational
challenges across the Group. A notable impact on production was recorded after extended safety
stoppages, intermittent industrial action and power supply interruptions at Impala Rustenburg, and
supply chain and labour availability constraints at Impala Canada. Tonnes milled from managed
operations declined by 4% to 16.66 million tonnes, while the average 6E mill grade declined by 1%
to 3.60g/t.
The 4% decrease in mine-to-market 6E concentrate production to 2.11 million ounces reflected the
impact of lower contributions from Impala Rustenburg, Impala Canada and Mimosa, which offset the
benefit of stable volumes from Zimplats and Two Rivers, and a record result at Marula. Received 6E
third-party and toll material in concentrate, of 277 000 ounces, was stable relative to the prior
comparable period and, in total, gross 6E concentrate production decreased 3% to 2.38 million
Refined 6E production in the prior comparable period benefitted from increased processing
availability due to the timing of annual processing maintenance. In the period under review,                                                 
scheduled maintenance in Q1 FY2022, together with lower concentrate production and the full
rebuild required at the Number 3 furnace in Rustenburg, resulted in total gross refined 6E production
declining by 6% to 2.35 million ounces.
Changes in concentrate feeds and individual metal pipelines resulted in a decline in minor PGM
production, while refined nickel volumes increased by 4%. Impala Rustenburg’s refined
6E production declined by 16% to 860 000 ounces in the period under review, while refined volumes
at IRS increased by 2% to 1.32 million ounces.
6E sales volumes of 2.38 million ounces decreased by 4% from the prior comparable period, which
benefitted from destocking of iridium and ruthenium as demand and pricing strengthened during the
nine-month period a year ago.

Impala Rustenburg

Quarter ended 31 March 2022
Tonnes milled during the quarter decreased by 10% to 2.27 million tonnes, impacted by extended
safety stoppages and the ongoing impact of cable theft, electricity curtailment and community
The Section 54 safety stoppage at 16 Shaft, which followed a fatality at end-November 2021, was
lifted in mid-January and full production was restored by end-February 2022. The Section 54 safety
stoppage at 6 Shaft, following three fatalities in a mud inundation at the bottom of the shaft at end-
November 2021, was lifted in early March 2022, with full production expected during April 2022.
Grade was impacted by lower production from the high-grade shafts and decreased by 5% to 3.81g/t
6E, partially offset by improved recoveries and yield gains, resulting in 6E concentrate production
declining by 11% to 274 000 ounces.
Refined 6E production of 210 000 ounces declined by 29% from the prior comparable period, due
to lower production volumes coupled with reduced available processing capacity flowing from the
Number 3 furnace rebuild. The furnace rebuild was progressed according to plan, with heat-up
initiated in mid-April 2022 and the first matte tap scheduled for May 2022.
Nine months ended 31 March 2022
Milled volumes declined by 10% to 7.26 million tonnes, while mill grade of 3.92g/t 6E was 3% lower.
Higher recoveries and yield gains contained the decrease in 6E concentrate production volumes to
9%, with 882 000 ounces recorded.
Refined 6E production declined by 16% to 860 000 ounces due to lower mined production and the
impact of the furnace rebuild.

Quarter ended 31 March 2022
There were marginal improvements in both tonnes milled of 1.71 million and delivered mill grade of
3.40g/t 6E. An improving ore mix benefitted process recoveries and 6E concentrate production
increased by 6% to 145 000 ounces. A furnace reline was completed in the prior comparable period,
while beneficial movements in smelter inventory and matte production in the period under review
saw 6E matte production increase by 8% to 149 000 ounces.

Nine months ended 31 March 2022

Mill throughput increased marginally to 5.11 million tonnes, offsetting slightly lower grade, and 6E
concentrate production was stable at 437 000 ounces. 6E matte production in the nine-month period
increased by 2% to 432 000 ounces.

Quarter ended 31 March 2022
Marula continued its strong performance in the period under review, with an 8% increase in tonnes
milled to 491 000 tonnes and a 2% improvement in milled grade to 4.42g/t 6E. 6E concentrate
production increased by 5% to 62 000 ounces. Production in the prior comparable period benefitted
from additional metal recovered from concentrate sludge.
Nine months ended 31 March 2022
Marula delivered record production in the nine months, with tonnes milled up 9% to 1.51 million
tonnes, milled 6E head grade 3% higher at 4.51g/t and 6E concentrate production increasing by 9%
to 197 000 ounces.

Impala Canada
Quarter ended 31 March 2022
Impala Canada continued to face challenges associated with global supply chain constraints and
labour availability. This resulted in hauling constraints and increased downtime at the processing
plant, which impacted achieved recoveries. Milled volumes decreased by 4% to 886 000 tonnes,
while milled head grade rose by 3% to 2.80g/t 6E. 6E metal in concentrate of 62 000 ounces was
4% lower than that achieved in the prior comparable period.
Nine months ended 31 March 2022
Constraints on equipment availability due to tight labour conditions and a shortage of critical parts
and spares created a complex and testing operating environment. While milled grades of 2.65g/t 6E
improved marginally, milled volumes of 2.78 million tonnes and 6E concentrate volumes of 185 000
ounces, decreased by 2% and 3%, respectively.

Quarter ended 31 March 2022
Milling operations at Mimosa were negatively impacted by power interruptions and a planned plant
shutdown, which together with elevated water impurities impeded process recoveries. Ongoing work
to improve plant performance yielded recovery benefits towards period end. Milled volumes of
678 000 tonnes declined by 2% and the marginal decrease in milled head grade to 3.84g/t 6E was
compounded by lower recoveries, resulting in a 6% decrease in 6E production in concentrate to
60 000 ounces.
Nine months ended 31 March 2022
Plant stability and recoveries were negatively impacted by power interruptions, changes in reagent
supply due to constrained supply chains and poor water quality. Tonnes milled declined by 2% and
milled 6E head grade was 1% lower in the nine-month period. Lower recoveries resulted in a 6%
decline in 6E concentrate production volumes to 184 000 ounces.

Two Rivers
Quarter ended 31 March 2022
Two Rivers was adversely affected by a series of external events in the quarter, including community
unrest, localised Eskom power availability as a result of poor weather, which together with a series
of equipment failures, negatively impacted mining performance. The secondary mill expansion
project was commissioned in February 2022 and facilitated higher milled throughput in the period,
offsetting the impact of operational challenges. Milled volumes increased by 8% to 859 000 tonnes,
and 6E volumes in concentrate increased by 7% to 76 000 ounces, with recoveries benefitting from
increased plant capacity and offsetting lower milled grade.
Nine months ended 31 March 2022
Production at Two Rivers was negatively impacted by extended safety stoppages and intermittent
localised community and power interruptions. Tonnes milled increased by 4% to 2.53 million tonnes,
but these volume gains were offset by a 6% lower milled grade of 3.22g/t 6E, impacted by both split
reef and ore stockpile milling in the period. As a result, 6E concentrate volumes of 223 000 ounces
were stable versus the prior comparable period.

Quarter ended 31 March 2022
Concentrate receipts were positively impacted by higher deliveries from third parties, which offset
delays in dispatches from both Mimosa and Zimplats. Mine-to-market receipts of 328 000 6E ounces
were largely unchanged, while third-party and toll receipts increased by 12% to 89 000 6E ounces
as certain new contracts delivered increased volumes in the period. Refined 6E production of 467
000 ounces from both mine-to-market operations (Zimplats, Marula, Two Rivers, and Mimosa) and
IRS third-party and toll customers was 5% higher than the prior comparable period.

Nine months ended 31 March 2022
Concentrate receipts in the prior comparable period benefitted from the deferred delivery of
previously accumulated receipts as a result of the IRS force majeure declared due to Covid-19
lockdown restrictions in FY2020. In the current period, mine-to-market receipts of 1.05 million 6E
ounces decreased by 3%, while third-party and toll receipts of 277 000 6E ounces were slightly
higher. Refined volumes benefitted from a strong smelting and refining performance in H1 FY2022,
when all previously identified excess inventory was processed, offsetting the impact on IRS of the
rebuild on Number 3 furnace at Impala Rustenburg in Q3 FY2022.

The Group concluded purchase agreements for a total of 6 678 134 shares in Royal Bafokeng
Platinum (RBPlat) during the period, for an offer consideration of R90 and 0.3 Implats share per
RBPlat share acquired. On 14 April 2022, Implats held an aggregate of approximately 37.79% of the
RBPlat shares in issue following the acquisition of a further 493 990 RBPlat shares post period end.

In the revisions to annual guidance provided with the release of Implats’ half year results ended 31
December 2021, the Group considered and factored in the impact of an increasingly complex
operating environment due to global geopolitical events, persistent supply chain constraints and
rising inflation. As such, Implats remains on track to meet the parameters provided for production,
unit costs and capital expenditure metrics.

The third quarter production report for the period 1 January to 31 March 2022 has not been reviewed
and reported on by the external auditors of Implats.

Johan Theron
E-mail :
T : +27 (0) 11 731 9013
M : +27 (0) 82 809 0166

Emma Townshend
E-mail :
T : +27 (0) 21 794 8345
M : +27 (0) 82 415 3770

Alice Lourens
E-mail :
T: +27 (0) 11 731 9033
M : +27 (0) 82 498 3608

29 April 2022

Sponsor to Implats
Nedbank Corporate and Investment Banking


Date: 29-04-2022 07:05:00
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