Implats enters section 189 consultations at its South African operations

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")


IMPLATS ENTERS SECTION 189 CONSULTATIONS AT ITS SOUTH AFRICAN OPERATIONS

Impala Platinum Holdings Limited (Implats) advises stakeholders that it has issued a notice to relevant
employee representative groups, government authorities and other stakeholders, indicating that it has
initiated a Section 189(3) consultation process at its South African operations, in terms of the Labour
Relations Act, 66 of 1995 (LRA), which may lead to staff reductions.

Nico Muller, Implats Chief Executive Officer, commented, "Platinum group metal (PGM) pricing has
declined sharply since the start of 2023, which together with persistent inflationary pressures on input
costs has resulted in significant pressure on profitability and cashflow across the entire PGM sector, our
operations included. Global macroeconomic uncertainty and rising geopolitical tensions present
additional downside risks to industry sustainability. As a result of these pressures, the Group has
assessed and revised its business planning parameters and contemplated various measures to optimise
operational efficiencies and resources.

"Cost-saving, capital-deferment and voluntary labour-reduction initiatives to date have not sufficiently
offset the impact of persistently lower prices. This has significantly undermined Implats' financial
position, which in turn threatens future job security for the entire workforce. Implats management
therefore considers it necessary to commence the Section 189(3) process.

"It must be emphasised that Implats is committed to a fair and transparent consultation process. No final
decision has been taken regarding the proposed restructuring, and no final decision will be taken prior
to full and proper consultation with affected employees, and their representatives, in compliance with
the LRA. During the consultation process, all viable alternatives suggested to job losses will be
considered."

The objective of Implats' operational and expenditure response to prevailing PGM price weakness is to
ensure each that each of its business units contributes sustainably and profitably through the fluctuations
of PGM cycles, to ensure the long-term viability of the business and its significant commitments to its
key stakeholders.

The proposed restructuring could potentially affect approximately 3 900 positions, equating to a 9%
reduction in labour across the Group's Impala Rustenburg, Impala Bafokeng and Marula operations, as
well as at the corporate office which is targeting a 30% reduction in Head Office costs.

In terms of section 52 of the Mineral and Petroleum Resources Act, 28 of 2002 (MPRDA), Implats has
also issued a notice, as required, to the Minerals and Mining Development Board and engaged with the
Minister of Minerals and Energy on the restructuring.

The Group has conducted high-level engagements with its key stakeholders, in line with our stated
commitment to constructive collaboration and proactive communication. Implats remains committed to
implementing the restructuring in consultation with its social partners, while honouring its socioeconomic
commitments, with respect and sensitivity to the livelihoods impacted.

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

26 April 2024
Johannesburg

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




                                                                                              
Date: 26-04-2024 12:00:00
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