Production Update and Initial Trading Statement for the year ended 30 June 2023

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

30 JUNE 2023

Implats will release its audited results for the year ended 30 June 2023 (the “period” or “FY2023”)
on or about 31 August 2023.

Royal Bafokeng Platinum Limited (“RBPlat”) became a subsidiary of Implats on 30 May 2023. As
a result, with effect from 1 June 2023, RBPlat’s operating and financial results are consolidated
into the Implats results.


The operating environment in FY2023 was typified by continuing headwinds, and regional power
constraints provided a notable impediment to operational continuity and delivery. While input
pricing across key consumables eased in the latter half of FY2023, rand depreciation persisted,
limiting the benefit to our South African operations, and adversely impacting the translated dollar
cost and capital base of our Zimbabwean and Canadian assets.

Gross Group 6E production increased by 2% to 3.25 million 6E ounces from 3.19 million 6E ounces
for the year ended 30 June 2022 (the “comparative period”).

Production from managed operations increased by 6% to 2.42 million 6E ounces:

   •   Impala Rustenburg increased production by 3% to 1.23 million stock-adjusted 6E ounces
       despite the severity and frequency of load curtailment impacting operational continuity.
   •   Zimplats benefitted from the commissioning of the third concentrator at the end of Q1
       FY2023 and, despite the impact of lower grade and regional power disruptions, delivered
       a 5% increase in 6E matte production to 611 000 ounces.
   •   Operating momentum at Marula was negatively impacted by sporadic community unrest in
       the second half of the period, compounded by the impact of load curtailment resulting in a
       7% decline from the record production achieved in FY2022, to deliver 6E concentrate
       production of 241 000 ounces.
   •   Impala Canada delivered a 17% gain in 6E concentrate production to 291 000 ounces, with
       increased throughput of higher-grade underground ore.
   •   A maiden contribution of 43 000 6E ounces in concentrate from RBPlat was recorded for
       the 30 days to 30 June 2023.

Group operational performance                                                         FY2023                FY2022               Var, %
LTIFR                                                        Pmmhw                      3.92                  4.21                  7.0
TIFR                                                         Pmmhw                      9.25                  9.76                  5.3
Fatalities                                                   Count                         5                     7                 28.6

6E Group production                                          000oz                     3 246                 3 189                  1.8
  Managed operations                                         000oz                     2 418                 2 289                  5.6
  JV operations                                              000oz                       541                   548                 -1.4
  Third-party                                                000oz                       287                   351                -18.1

Gross 6E refined                                             000oz                     2 959                 3 087                 -4.1
  Impala 6E refined                                          000oz                     1 207                 1 138                  6.1
  IRS 6E refined                                             000oz                     1 447                 1 717                -15.7
  Impala Canada 6E saleable                                  000oz                       267                   232                 14.9
  RBPlat 6E saleable                                         000oz                        37                     -                  n/a

Gross platinum refined                                       000oz                     1 360                 1 426                 -4.7
Gross palladium refined                                      000oz                     1 051                 1 071                 -2.0
Gross rhodium refined                                        000oz                       169                   181                 -6.3
Gross nickel refined                                         t                        14 970                16 520                 -9.4

6E sales volumes                                             000oz                     2 973                 3 147                 -5.5

Managed operations production:
Impala Rustenburg
Tonnes milled                                                000t                     10 248                 9 801                  4.6
6E grade                                                     g/t                        3.88                  3 86                  0.4
6E stock adjusted1                                           000oz                     1 232                 1 198                  2.9
Tonnes milled                                                000t                      7 500                 6 882                  9.0
6E grade                                                     g/t                        3.33                  3.42                 -2.6
6E in matte (incl. concentrate sold to IRS)2                 000oz                       611                   584                  4.7

Tonnes milled                                                000t                      1 935                 1 995                 -3.0
6E grade                                                     g/t                        4.39                  4.53                 -3.1
6E in concentrate3                                           000oz                       241                   259                 -7.1

Impala Canada
Tonnes milled                                                000t                      3 798                 3 685                  3.1
6E grade                                                     g/t                        2.93                  2.68                  9.1
6E in concentrate3                                           000oz                       291                   249                 17.0

6E in concentrate3                                           000oz                        43                      -                n/a

JV operations production:
Tonnes milled                                                000t                      2 735                 2 816                 -2.9
6E Grade                                                     g/t                        3.77                  3.82                 -1.4
6E in concentrate3                                           000oz                       245                   246                 -0.5

Two Rivers
Tonnes milled                                                000t                      3 558                 3 458                  2.9
6E grade                                                     g/t                        3.09                  3.22                 -4.1
6E in concentrate3                                           000oz                       295                   302                 -2.2

Impala Refining Services production:
Gross 6E receipts                                            000oz                     1 658                 1 763                 -6.0
   Managed operations                                        000oz                       839                   878                 -4.5
   JV operations                                             000oz                       532                   534                 -0.4
  Third-party                                                000oz                       287                   351                -18.1

  1.    PGM production post the precious metals refinery, adjusted for any increase (added) or decrease (deducted) in smelting and refining
  2.    PGM production post the smelter ahead of the base metal refinery, unadjusted for further processing recoveries
  3.    PGM production post the concentrator ahead of the smelter, unadjusted for further processing recoveries

Production from joint ventures (“JVs”) declined by 1% to 541 000 6E ounces:

    •   Two Rivers recorded a 2% decline in 6E in concentrate production to 295 000 ounces, due
        to safety stoppages, intermittent localised community and power disruptions, and the
        ongoing impact of split-reef and development tonnage on milled grade.
    •   At Mimosa, 6E in concentrate volumes declined by 1% to 245 000 ounces. Processing and
        plant stability was impacted by the commissioning and optimising of the concentrator
        project, power interruptions, changes in reagent supply and poor water quality.

Concentrate receipts from third parties declined by 18% to 287 000 6E ounces, with several
operational challenges reported at peer-group producers and the termination of two contracts in
Q3 FY2023.

The Group manages the lower stages of load curtailment by reducing power to its furnaces and
concentrators, with mining and hoisting volumes impacted at higher stages. These mitigating
actions result in a combination of “foregone” and “deferred” production volumes. In addition to load
curtailment at South African managed and JV operations during the period, severe loadshedding
was experienced across the Zimbabwean national grid in March 2023, while operations at Mimosa
were impacted by further intermittent power outages in May and June. In total, the Group estimates
circa 36 000 6E ounces of production were foregone across southern African managed and JV
operations during the period, of which 28 000 6E and 8 000 6E ounces were attributable to Impala
Rustenburg and the Zimbabwean operations, respectively. Circa 101 000 6E ounces were deferred
as result of power constraints at the Group’s smelting operations and the consequent delay to
restart the refurbished Number 4 furnace in Q4 FY2023. A further 10 000 6E ounces were deferred
due to cable theft at Impala Rustenburg, particularly the instance which resulted in power supply
interruptions to the metallurgical complex.

Gross refined and saleable volumes declined by 4% to 2.96 million 6E ounces and Implats ended
FY2023 with excess inventory of approximately 245 000 6E ounces.

Sales volumes declined by 6% to 2.97 million 6E ounces, with limited destocking of refined metal
inventories from an already reduced FY2022 base. Softer US dollar basket pricing was partially
offset by the rand exchange rate weakening by 16%, resulting in a 4% decline in Group sales
revenue to circa R36 120 per 6E ounce sold.

Group capital expenditure is expected to have increased to circa R11.5 billion from R9.1 billion in
the comparative period, due to higher levels of stay-in-business and replacement spend, and rand
depreciation. Implats incurred growth capital of circa R1.9 billion in FY2023.
Group unit costs per 6E ounce are expected to increase to circa R19 840 on a stock-adjusted basis
due to persistent inflationary pressures, which were exacerbated by the impact of rand depreciation
on the translated dollar cost base of Zimplats and Impala Canada.


During the period, Implats incurred a cash outflow of circa R4.9 billion and issued circa 16.2 million
shares to increase its aggregate holding in RBPlat from 37.83% to 56.41% at 30 June 2023. The
financial results for the period will therefore include the consolidation of RBPlat results from
1 June 2023, including the subsidiary’s R4.5 billion cash balance. Implats ended the period with a
closing cash balance of R26.8 billion.

As at the date of this production update, Implats had acquired a further 123.4 million RBPlat shares,
for a cash consideration of circa R11.1 billion and the issue of circa 37.0 million Implats shares,
resulting in a 98.91% shareholding in RBPlat.
On 1 August 2023, in terms of Section 124(1) of the Companies Act (71 of 2008) as amended,
Implats announced the compulsory acquisition of all remaining RBPlat shares not already owned
by Implats. The estimated cash outflow and share issuance associated with the compulsory
acquisition of the residual shareholding in RBPlat is R286 million and circa 952 000 Implats shares,


In terms of 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 comparative period.

Due primarily to the impact of weaker dollar PGM pricing and lower refined production as result of
load curtailment, Implats is expecting headline earnings and headline earnings per share (“HEPS”)
for the period to be at least 20% lower than those reported in the comparative period. Headline
earnings and HEPS for the comparative period were R32 028 million and 3 853 cents, respectively.

Basic earnings and basic earnings per share (“EPS”) are also expected to be at least 20% lower
than the comparative period, primarily due to the lower dollar PGM basket price, lower refined
production, and the impact of accounting adjustments arising on the consolidation of RBPlat. Basic
earnings and EPS in the comparative period were R32 049 million and 3 856 cents, respectively.

Implats will publish a further trading statement once it has a reasonable degree of certainty on the
expected EPS and HEPS ranges for the period.

The production and financial information for the year ended 30 June 2023, on which this production
update and trading statement is based, has not been reviewed and reported on by the external
auditors of Implats.



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

7 August 2023

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


Date: 07-08-2023 10:03:00
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