IMPALA PLATINUM HOLDINGS LIMITED - First quarter p28 Oct 2022
First quarter production report for the period 1 July to 30 September 2022

IMPALA PLATINUM HOLDINGS LIMITED
(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”)



First quarter production report for the period 1 July to 30 September 2022
Key highlights
    •   A 1% year-on-year improvement in the all-injury frequency rate, but a 2% deterioration in the
        lost-time injury frequency rate. Regrettably, one fatality, resulting from an equipment incident
        at Impala Rustenburg

    •   Total 6E concentrate volumes increased 2% on the previous comparable quarter to 824 000
        ounces, with unchanged managed volumes of 593 000 ounces, a 2% increase in production
        from joint ventures to 141 000 ounces, and 14% higher third-party receipts of 91 000 ounces

    •   Gross 6E refined and saleable production volumes declined by 5% to 705 000 ounces,
        aligned with scheduled processing maintenance, with stable 6E sales volumes of 708 000
        ounces.


Implats’ Chief Executive Officer, Nico Muller, commented: “Implats continues to navigate a complex
operating environment, while maintaining our intense focus on delivering safe and cost-efficient
production. We have made good progress across our suite of mining and processing projects.
The increased severity and frequency of load curtailment by power utility Eskom, necessitated
adjustments to hoisting, concentrating and smelting rates in South Africa, which adversely impacted
operational momentum during the quarter. In addition, socio-economic pressures are being
compounded by rising global inflation, which in South Africa has been further aggravated by the
recent rand depreciation.
Despite these headwinds, we expect revenue to remain robust. Recent discussions with our core
customer base confirm our expectations for rising demand for our key products over the coming
year. PGM pricing remains volatile and vulnerable to macro-economic news flow.
We are determined to maximise the tailwinds of strong prevailing PGM prices and deliver our guided
business performance in FY2023, for the benefit of all our stakeholders.”
                                                                 Unaudited        Unaudited
  Operational information                                      quarter ended    quarter ended    Variance, %
                                                               30 September     30 September
                                                                   2022             2021

 Safety
 LTIFR                                          pmmhw                    4.04             3.95           -22
 TIFR                                           pmmhw                    9.58             9.68             1
 Fatalities                                       count                     1                1             -

 Gross production
 Tonnes milled (managed operations)                000t                 5 852            5 761             2
 Grade (6E)                                          g/t                 3.61             3.64            -1

 6E in concentrate                               000oz                   824              809              2
   Managed operations                            000oz                   593              592              -
   JV operations                                 000oz                   141              138              2
   Third-party and toll                          000oz                    91               80             14

 Gross 6E refined                                000oz                    705              741            -5
   Impala 6E refined                             000oz                    300              292             3
   IRS 6E refined                                000oz                    340              394           -14
   Impala Canada saleable 6E                     000oz                     64               55            14
 Gross platinum refined                          000oz                    333              345            -4
 Gross palladium refined                         000oz                    249              258            -3
 Gross rhodium refined                           000oz                     36               44           -18
 Gross nickel refined                                t                  3 972            3 959             -

 6E sales volumes                                000oz                   708              707              -

 Managed operations production:
 Impala Rustenburg
 Tonnes milled                                    000t                  2 650            2 589             2
 Grade (6E)                                         g/t                  3.85             3.99            -3
 6E in concentrate                               000oz                    310              315            -2
 6E refined                                      000oz                    300              292             3

 Zimplats
 Tonnes milled                                    000t                  1 731            1 678             3
 Grade (6E)                                         g/t                  3.41             3.45            -1
 6E in concentrate                               000oz                    146              144             1
 6E in matte (incl. concentrates sold to IRS)    000oz                    140              143            -3

 Marula
 Tonnes milled                                    000t                    522              523             -
 Grade (6E)                                         g/t                  4.49             4.73            -5
 6E in concentrate                               000oz                     68               71            -5

 Impala Canada
 Tonnes milled                                    000t                    951              971            -2
 Grade (6E)                                         g/t                  2.78             2.42            14
 6E in concentrate                               000oz                     69               61            14

 JV operations production:
 Mimosa
 Tonnes milled                                    000t                    680              704            -3
 Grade (6E)                                         g/t                  3.78             3.84            -2
 6E in concentrate                               000oz                     61               61             -

 Two Rivers
 Tonnes milled                                    000t                    933              852            10
 Grade (6E)                                         g/t                  3.14             3.28            -4
 PGE in concentrate                              000oz                     80               77             4

 Impala Refining Services production
 Gross 6E receipts                               000oz                   431              464             -7
   Mine-to-market                                000oz                   340              384            -11
   Third-party and toll                          000oz                    91               80             14
 6E refined                                      000oz                   340              394            -14
Rounded numbers may not add up correctly




                                                           
HEALTH AND SAFETY
Implats’ priority is to eliminate harm to the health and safety of our employees and contractors.
Regrettably, during the quarter ended 30 September 2022, the Group reported one fatal incident at its
managed operations, resulting from an equipment accident at 16 Shaft, Impala Rustenburg. The board
and management team have extended their sincere sympathies and continue to offer support to the
family, friends and colleagues of Mr Estevao Matsimbe.
The Group’s lost-time injury frequency rate deteriorated by 2% to 4.04 per million-man hours worked from
3.95 reported in the previous comparable quarter, while the all-injury frequency rate improved by 1% to
9.58 (Q1 FY2022: 9.68).


PRODUCTION
Gross tonnes milled at managed operations improved by 2% to 5.85 million tonnes during the quarter,
with volume gains at Impala Rustenburg and Zimplats, stable production at Marula and marginally lower
mill throughput at Impala Canada. 6E milled grade declined marginally to 3.61g/t, resulting in unchanged
6E concentrate production of 593 000 ounces at managed operations.
6E concentrate production from the joint ventures at Mimosa and Two Rivers improved by 2% to 141 000
ounces. Third-party 6E concentrate deliveries to Impala Refining Service (IRS) rose by 14% to 91 000
ounces. Consequently, Group 6E in concentrate production increased by 2% to 824 000 ounces.
The impact of Eskom load curtailment on Group production in the period resulted in a circa 25 000 6E
ounce increase in concentrate stocks at period end.
Refined 6E production, which includes saleable ounces from Impala Canada, was impacted by scheduled
processing maintenance and ongoing power disruptions in South Africa and declined by 5% to 705 000
ounces. The scheduled maintenance was successfully completed in July and August, with smelting rates
impacted by the increased frequency and severity of load curtailment in September.
Refined production of platinum and palladium declined by 4% and 3% respectively, with a more notable
reduction in refined volumes of rhodium and other minor PGMs. This timing difference was directly due
to the longer duration of the refining process for these precious metals and the impact thereon of the
maintenance programme during the period.
6E sales volumes of 708 000 ounces were largely unchanged from those in the prior comparable period.
Impala Rustenburg
Milled production at Impala Rustenburg increased by 2% to 2.65 million tonnes, but milled head grade
declined by 4% to 3.85g/t due to changes in the ore mix across the shaft complex. As a result, 6E in
concentrate production declined by 2% to 310 000 ounces.
The operating environment at Impala Rustenburg remains challenging: production momentum was
impacted by unprotected industrial action among the contractor workforce at the end of FY2022 and again
in September 2022 when a two-day dispute arose with permanent workers as a result of the individual
tax status of certain permanent employees, which impacted the quantum of their employee share
ownership trust (ESOT) pay outs. Production was further impacted by Eskom loadshedding during the
reporting period and safety stoppages following the fatality at 16 Shaft.
Refined 6E production of 300 000 ounces was 3% higher during the quarter, up from 292 000 ounces in
the prior comparable period.
Zimplats
Tonnes milled increased by 3% to 1.73 million tonnes with the third concentrator plant commissioned
towards period-end. Milled grade declined by 1% due to changes in ore mix as production ceased at
Rukodzi Mine in Q4 FY2022. 6E concentrate production was 1% higher at 146 000 ounces, while matte
volumes, of 140 000 ounces, were 3% lower following a scheduled furnace reline in the period.




                                                   
Marula
Marula sustained record milling volumes of 522 000 tonnes, but grade of 4.49g/t declined by 5% due to
the impact of increased development tonnage from the Phase 2 extension project. Consequently, 6E in
concentrate production was 5% lower at 68 000 ounces.
Impala Canada
Underground production volumes increased during the period as operating momentum improved,
resulting in reduced milled volumes of open pit and surface material, compared to higher-grade
underground material. As a result, milled throughput declined by 2% from the prior comparable period,
but milled grade improved by 15% to 2.78g/t, resulting in a 14% increase in 6E volumes in concentrate
to 69 000 ounces.
Mimosa
Milled volumes were impacted by intermittent power interruptions and the decision to reduce milling rates
to nameplate capacity, to assess the impact on recoveries, as part of the ongoing plant optimisation
process. While tonnes milled were 3% lower at 680 000 tonnes and milled grade declined 2% to 3.78g/t,
yield improvements resulted in stable 6E concentrate production of 61 000 ounces.
Two Rivers
Milled volumes benefitted from expanded processing capacity and the increased processing of lower-
grade material. Milled throughput increased by 10% to 933 000 tonnes, milled head grade declined by
4%, with 6E concentrate production rising by 4% to 80 000 ounces.
IRS
Mine-to-market 6E receipts from Zimplats, Marula, Two Rivers and Mimosa declined by 12% to 340 000
ounces, while third-party receipts increased by 14% to 91 000 ounces. During the prior comparable
period, IRS purchases benefitted from the receipt of accumulated Zimplats matte following the deferral of
deliveries to Q1 FY2022.
Refined 6E production in the prior comparable period benefited from increased receipts and the
destocking of previously accumulated inventory. Consequently, refined production was 14% lower at
340 000 ounces in the period under review.


FY2023 GUIDANCE
Key guidance parameters for FY2023 are maintained. Group unit costs and capital expenditure remain
vulnerable to a sustained depreciation of the rand due to the translation of the dollar cost base at both
Impala Canada and Zimplats.


The first quarter production report for the period 1 July to 30 September 2022 has not been reviewed and
reported on by the external auditors of Implats.


Queries:
Johan Theron
E-mail: johan.theron@implats.co.za
T: +27 (0) 11 731 9013/17
M: +27 (0) 82 809 0166

Emma Townshend
E-mail: emma.townshend@implats.co.za
T : +27 (0) 21 794 8345
M : +27 (0) 82 415 3770




                                                    
Alice Lourens
E-mail: alice.lourens@implats.co.za
T: +27 (0) 11 731 9033/17
M: +27 (0) 82 498 3608

28 October 2022
Johannesburg

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




                                                

Date: 28-10-2022 07:05:00
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