IMPALA PLATINUM HOLDINGS LIMITED - Production Upda31 Jan 2024
Production Update and Initial Trading Statement for the six months ended 31 December 2023

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 "Company" or the "Group")


PRODUCTION UPDATE AND INITIAL TRADING STATEMENT FOR THE SIX MONTHS ENDED
31 DECEMBER 2023

Implats will release its audited results for the half year ended 31 December 2023 (the "period" or
"H1 FY2024") on or about 29 February 2024.



11 SHAFT UPDATE

On Monday, 27 November 2023, 86 employees were involved in an accident associated with the
personnel conveyance at Impala Rustenburg's 11 Shaft. Tragically and subsequent to this devastating
accident, 13 employees lost their lives. In addition, 73 employees were injured, several of whom are
receiving ongoing rehabilitation, care and support from the Company.

The in loco inspection was conducted and associated instructions from the Department of Mineral
Resources and Energy ("DMRE") were received during December 2023, with the 11 Shaft site returned
to Implats to proceed with further investigations, as well as to begin the necessary repairs to the
damaged infrastructure at the site  under the direction of the DMRE.

In January 2024, Implats' subsidiary, Impala Platinum Limited, submitted its Investigation Report to the
DMRE, in terms of section 11(5)(e) of the Mine Health and Safety Act, which now paves the way for the
DMRE to initiate formal proceedings relating to the accident, possibly during the course of the year. The
formal proceedings are expected to take several months to complete. In parallel, Implats will conduct its
own investigations, which will draw on observations and findings from the regulated investigation, but
also explore potential interventions, to further enhance the safe operation of all conveyance systems
across the Group. The investigations are regulated by internal, industry and regulatory protocols and
procedures. Once concluded, the relevant learnings from these investigations will be shared with the
regulator and industry stakeholders.

Permission to use the rock winder at 11 Shaft was granted by the DMRE on Tuesday, 9 January 2024,
with personnel access to underground workings authorised through the adjacent 11C Shaft
infrastructure. This will allow a ramp-up in mined volumes to circa 60% of production capacity over the
coming weeks. Consequently, 11 Shaft mining crews were systematically re-mobilised during January
2024, with surplus labour deployed across the broader Rustenburg asset base.

Infrastructure repairs at 11 Shaft are expected to be completed by the end of February 2024, with a
build-up to full production capacity currently targeted for April 2024.

All mining operations at Impala Rustenburg were halted during the week of the accident and again for
the evening shift on Tuesday, 5 December 2023, as well as morning shift on Wednesday, 6 December
2023 for purposes of attending the memorial service for our colleagues who have passed away. In the
period under review, the production loss associated with the 11 Shaft accident is estimated at 30 000
6E ounces. Current estimates indicate a further 30 000 6E ounce shortfall from the 11 Shaft complex in
H2 FY2024.



PRODUCTION UPDATE

Implats delivered strong production volumes and commendable cost control in H1 FY2024, despite
navigating several serious challenges as well as an increasingly constrained operating environment
caused by the significant retracement in rand PGM pricing. Achieved volumes benefitted from the
maiden interim consolidation of Impala Bafokeng in the period. However, notable improvements were
achieved on a like-for-like basis (excluding Impala Bafokeng's contribution) at the Group's mining and
processing operations. Input inflation continued to ease, but rand depreciation persisted, adversely
impacting the translated dollar cost and capital base of our Zimbabwean and Canadian assets.

Gross Group 6E production increased by 18% to 1.90 million 6E ounces from 1.62 million 6E ounces
for the half year ended 31 December 2022 (the "comparative period"), with like-for-like gains of 2%.

Production from managed operations increased by 28% to 1.51 million 6E ounces, with a like-for-like
improvement of 7% from the collective production base at Impala Rustenburg, Marula, Zimplats and
Impala Canada:

       Impala Rustenburg increased production by 11% to 675 000 stock-adjusted 6E ounces,
        demonstrating a step-change in operating momentum
       A maiden interim contribution of 254 000 6E ounces in concentrate from Impala Bafokeng was
        recorded in the period
       Performance at Marula was negatively impacted by lengthy safety stoppages in the period and
        6E concentrate production declined by 12% to 113 000 ounces
       Zimplats benefitted from higher installed milling capacity and delivered a 9% increase in 6E
        matte production to 328 000 ounces
       Impala Canada delivered a 1% gain in 6E in concentrate production to 144 000 ounces, with
        high grade feed offsetting lower milled volumes.

Production from joint ventures ("JVs") increased by 2% to 276 000 6E ounces:

       Two Rivers recorded a 3% increase in 6E in concentrate production to 151 000 ounces, with
        improved grade countering a constrained mining environment
       At Mimosa, 6E in concentrate volumes rose by 2% to 125 000 ounces. Improving processing
        yields offset the challenges to mined and milled volumes from intermittent regional power
        disruptions.

Concentrate receipts from third parties declined by 33% to 113 000 6E ounces, due to the termination
of two contracts in Q3 FY2023.




                                                                                           
     Group operational performance                                                      H1 FY2024              H1 FY2023                Var, %
     Safety
     LTIFR                                                         pmmhw                        4.65                   4.05               -14.9
     TIFR                                                          pmmhw                        9.05                   9.16                 1.2
     Fatalities                                                    Count                          16                      2               >100

     6E Group production                                           000oz                       1 902                 1 618                 17.5
       Managed operations                                          000oz                       1 513                 1 179                 28.4
       JV operations                                               000oz                         276                   271                  2.0
       Third-party                                                 000oz                         113                   169                -33.4

     Gross 6E refined and saleable                                 000oz                       1 751                 1 476                 18.6
       Impala 6E refined                                           000oz                         630                   605                  4.2
       IRS 6E refined                                              000oz                         773                   746                  3.7
       Impala Bafokeng 6E saleable1                                000oz                         215                     -                  n/a
       Impala Canada 6E saleable1                                  000oz                         133                   125                  6.2

     Gross platinum refined and saleable                           000oz                         832                   685                 21.5
     Gross palladium refined and saleable                          000oz                         593                   520                 14.2
     Gross rhodium refined and saleable                            000oz                          96                    86                 12.1
     Gross nickel refined and saleable                             t                           8 309                 7 944                  4.6

     6E sales volumes                                              000oz                       1 697                 1 515                 12.0

     Managed operations production:
     Tonnes milled                                                 000t                      14 313                 11 815                 21.1
     6E grade                                                      g/t                         3.77                   3.56                  5.8

     Impala Rustenburg
     Tonnes milled                                                 000t                        5 392                 5 168                  4.3
     6E grade                                                      g/t                          4.00                  3.82                  4.6
     6E stock adjusted2                                            000oz                         675                   608                 11.0
     Impala Bafokeng
     Tonnes milled                                                 000t                        2 252                       -                n/a
     6E grade                                                      g/t                          4.33                       -                n/a
     6E in concentrate4                                            000oz                         254                       -                n/a

     Marula
     Tonnes milled                                                 000t                          945                 1 007                 -6.2
     6E grade                                                      g/t                          4.30                  4.40                 -2.3
     6E in concentrate4                                            000oz                         113                   128                -11.9

     Zimplats
     Tonnes milled                                                 000t                        3 911                 3 680                   6.3
     6E grade                                                      g/t                          3.34                  3.38                  -1.3
     6E in matte (incl. concentrate sold to IRS)3                  000oz                         328                   301                   9.0

     Impala Canada
     Tonnes milled                                                 000t                        1 813                 1 960                  -7.5
     6E grade                                                      g/t                          3.00                  2.79                   7.5
     6E in concentrate4                                            000oz                         144                   142                   1.3

     JV operations production:
     Two Rivers
     Tonnes milled                                                 000t                        1 821                 1 813                  0.5
     6E grade                                                      g/t                          3.10                  3.02                  2.6
     6E in concentrate4                                            000oz                         151                   147                  2.5

     Mimosa
     Tonnes milled                                                 000t                        1 423                 1 375                   3.5
     6E grade                                                      g/t                          3.63                  3.78                  -4.2
     6E in concentrate4                                            000oz                         125                   123                   1.5

     Impala Refining Services production:
     Gross 6E receipts                                             000oz                         828                   853                 -3.0
        Managed operations                                         000oz                         437                   420                  4.0
        JV operations                                              000oz                         279                   264                  5.5
       Third-party                                                 000oz                         113                   169                -33.4
1.     PGM production adjusted for off-take terms from third parties.
2.     PGM production post the precious metals refinery, adjusted for any increase (added), or decrease (deducted) in smelting and refining lock up.
3.     PGM production post the smelter ahead of the base metal refinery, unadjusted for further processing recoveries.
4.     PGM production post the concentrator ahead of the smelter, unadjusted for further processing recoveries.


                                                                                                                                     
Refined 6E production, which includes saleable ounces from Impala Bafokeng and Impala Canada,
increased by 19% to 1.75 million 6E ounces (4% on a like-for-like basis). The period was characterised
by a noticeable reduction in the frequency and intensity of load curtailment, with minimal attributable
production foregone and deferred across southern African managed and JV operations during the
period. The scheduled rebuild of Number 5 furnace at Impala Rustenburg was initiated in mid-December
2023, with the planned recommissioning set for April 2024. Implats ended H1 FY2024 with excess
inventory of approximately 330 000 6E ounces.

Sales volumes of 1.70 million 6E ounces, including saleable production from Impala Canada and Impala
Bafokeng, increased by 12% (2% lower on a like-for-like basis). The notable decline in US dollar basket
pricing was only partially offset by depreciation in the rand exchange rate and Group sales revenue
decreased to circa R25 795 per 6E ounce sold.

Group capital expenditure is expected to have increased to circa R6.8 billion from R4.95 billion in the
comparative period due to the consolidation of capital expenditure from Impala Bafokeng and higher
levels of growth and replacement capital. Implats incurred growth capital of circa R2.2 billion in H1
FY2024.

Group unit costs per 6E ounce are expected to increase by 5% to circa R20 350 on a stock-adjusted
basis. The benefit of volume gains, discretionary bonuses paid in H1 FY2023 and cost containment
initiatives were offset by the inflationary pressures of rand depreciation on the translated dollar cost base
of Zimplats and Impala Canada, and the inclusion of Impala Bafokeng unit costs in the period.



ACQUISITION OF RBPLAT SHARES

During the period, Implats incurred a cash outflow of circa R11.4 billion and issued circa 37.97 million
shares to increase its aggregate holding in Royal Bafokeng Platinum Limited ("RBPlat") from 56.41%
to 100%, with RBPlat delisted from the JSE Limited ("JSE") on 18 September 2023 and renamed Impala
Bafokeng. Implats ended the period with a closing cash balance of R8.7 billion and net cash of R5.2
billion due to the consolidation of Impala Bafokeng's housing loans and gold streaming facility. Cash
was negatively impacted by the contractual receipt of R1.0 billion by Impala Bafokeng post period end.



INITIAL TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2023

In terms of the JSE Listings Requirements, 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, 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 R14.0 billion and
1 654 cents, respectively.

Basic earnings and basic earnings per share ("EPS") are also expected to be at least 20% lower than
the comparative period. Basic earnings and EPS in the comparative period were R14.0 billion and 1 648
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 six months ended 31 December 2023, on which this
production update and trading statement is based, has not been reviewed and reported on by the
external auditors of Implats.


Ends


                                                                                                 
Queries :

Johan Theron
E-mail: johan.theron@implats.co.za
T: +27 (0) 11 731 9013
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
M: +27 (0) 82 498 3608

31 January 2024
Johannesburg

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




                                                                          

Date: 31-01-2024 09:00:00
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