Annual Results Audited for the year ended 30 June28 Aug 2003
Implats - Consolidated Annual Results Audited for the year ended 30 June 2003   
Impala Platinum                                                                 
Holdings Limited                                                                
(Incorporated in the Republic of South Africa)                                  
Registration No. 1957/001979/06                                                 
Share code: IMP                                                                 
Issuer Code: IMPO                                                               
ISIN: ZAE 000003554                                                             
("Implats")                                                                     
Consolidated Annual Results Audited                                             
for the year ended 30 June 2003                                                 
Key Features                                                                    
* Gross platinum production up by 21%                                           
* Sales revenue decreased by 1%                                                 
* Gross margins healthy at 43%                                                  
* Net profit down 25% due to rand appreciation                                  
* Impala refined cost per platinum ounce up by 11%                              
* Safety improved by more than 30%                                              
Income Statement                                                                
Year ended Year ended             
                                              30 June    30 June                
(all amounts in Rand millions)                2003       2002                   
Sales                                         11 807.0   11 901.5               
On-mine operations                            (3 251.1)  (2 567.5)              
Concentrating and smelting operations         (801.1)    (642.6)                
Refining operations                           (411.5)    (354.7)                
Amortisation of mining assets                 (452.4)    (248.8)                
Metals purchased                              (1 474.1)  (1 883.4)              
Other operating expenses                      (252.6)    (203.9)                
(Increase)/decrease in metal inventories      (133.1)    136.0                  
Total operating expenses                      (6 775.9)  (5 764.9)              
Profit from operations                        5 031.1    6 136.6                
Net foreign exchange transaction              (328.8)    130.8                  
(losses)/gains                                                                  
Other expenses                                (54.7)     (98.0)                 
Finance income - net                          285.8      265.5                  
Share of results of associates before tax     1 039.3    1 102.9                
Royalty expense                               (598.0)    (804.4)                
Profit before tax                             5 374.7    6 733.4                
Income tax expense                            (1 936.4   (2 142.0)              
Profit before minority interest               3 438.3    4 591.4                
Minority interest                             (23.2)     (9.9)                  
Net profit                                    3 415.1    4 581.5                
Earnings per share (expressed in cents per                                      
share)                                                                          
- basic                                       5 131      6 902                  
- diluted                                     5 119      6 881                  
Headline earnings per share (expressed in                                       
cents per share)                                                                
- basic                                       5 140      6 877                  
- diluted                                     5 128      6 865                  
Dividends paid to group shareholders                                            
- final dividend June 2003/2 per share        1 750      2 600                  
proposed (cents)                                                                
- interim dividend paid December 2002/1 per   900        1 100                  
share (cents)                                                                   
                                              2 650      3 700                  
Balance Sheet                                                                   
                                             As at      As at                   
30 June    30 June                 
(all amounts in Rand millions)               2003       2002                    
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment                8 808.9    6 218.4                 
Investments in associates and joint          2 208.9    2 502.8                 
ventures                                                                        
Available-for-sale-investments               229.7      426.3                   
Held-to-maturity-investment                  74.9       60.9                    
Receivables and prepayments                  68.8       115.7                   
                                             11 391.2   9 324.1                 
Current assets                                                                  
Inventories                                  847.4      920.1                   
Receivables and prepayments                  1 706.2    1 377.9                 
Cash and cash equivalents                    2 324.5    3 150.3                 
                                             4 878.1    5 448.3                 
Total assets                                 16 269.3   14 772.4                
SHAREHOLDERS" EQUITY                                                            
Ordinary shares                              13.3       13.3                    
Share premium                                604.5      589.6                   
Fair value and other reserves                38.8       545.7                   
Retained earnings                            9 220.8    8 135.4                 
Total shareholders" equity                   9 877.4    9 284.0                 
Minority interest                            418.9      61.6                    
LIABILITIES                                                                     
Non-current liabilities                                                         
Borrowings                                   62.7       86.3                    
Deferred tax liabilities                     1 886.7    1 389.6                 
Retirement benefit obligations               63.5       66.9                    
Provisions                                   200.2      140.6                   
                                             2 213.1    1 683.4                 
Current liabilities                                                             
Trade and other payables                     2 844.5    2 458.1                 
Current tax liabilities                      710.7      1 258.5                 
Borrowings                                   204.7      26.8                    
                                             3 759.9    3 743.4                 
Total liabilities                            5 973.0    5 426.8                 
Total equity and liabilities                 16 269.3   14 772.4                
These financial statements have been approved for issue by the Board of         
Directors on 28 August 2003.                                                    
Statement of Changes in Shareholders" Equity                                    
                                       Fair                                     
                                       value                                    
                                       and                                      
(all amounts in   Share     Share      other     Retained  Total                
Rand millions)    capital   premium    reserves  earnings                       
Balance at 30     13.3      562.8      285.1     5 863.2   6 724.4              
June 2001                                                                       
Market value                                                                    
adjustment of                                                                   
available-for-                         107.8               107.8                
sale-investments                                                                
Currency and                                                                    
translation                                                                     
adjustment on                                                                   
foreign                                                                         
investments                            152.8               152.8                
Net gains not                                                                   
recognised in                                                                   
net profit                             260.6               260.6                
Dividend relating                                (1 579.1) (1 579.1)            
to 2001                                                                         
Dividend relating                                (730.2)   (730.2)              
to 2002                                                                         
Net profit                                       4 581.5   4 581.5              
Issue of share                                                                  
capital                                                                         
- share options    -        26.8                           26.8                 
Balance at 30     13.3      589.6      545.7     8 135.4   9 284.0              
June 2002                                                                       
Market value                                                                    
adjustment of                                                                   
available-for-                         (192.8)             (192.8)              
sale-investments                                                                
Currency and                                                                    
translation                                                                     
adjustment on                          (314.1)             (314.1)              
foreign                                                                         
investments                                                                     
Net losses not                                                                  
recognised in                                                                   
net profit                             (506.9)             (506.9)              
Dividend relating                                (1 730.4) (1 730.4)            
to 2002                                                                         
Dividend relating                                (599.3)   (599.3)              
to 2003                                                                         
Net profit                                       3 415.1   3 415.1              
Issue of share                                                                  
capital                                                                         
- share options    -         14.9                          14.9                 
                   -        14.9       (506.9)   1 085.4   593.4                
Balance at 30     13.3      604.5      38.8      9 220.8   9 877.4              
June 2003                                                                       
Cash Flow Statement                                                             
                                             Year ended Year                    
                                                        ended                   
30 June    30 June                 
(all amounts in Rand millions)               2003       2002                    
Cash flows from operating activities                                            
Cash generated from operations               4 357.4    5 617.0                 
Interest paid                                (20.7)     (15.7)                  
Taxation paid                                (1 823.5)  (1 733.3)               
Net cash from operating activities           2 513.2    3 868.0                 
Cash flows from investing activities                                            
Acquisition of subsidiary and joint                                             
venture,                                                                        
net of cash acquired                         (110.4)       -                    
Purchase of property, plant and equipment    (1 754.9)  (1 256.0)               
Proceeds from fixed assets disposed          43.3       10.0                    
Purchase of investments in associates        425.2      (1 114.0)               
Loans repaid                                 18.5       120.6                   
Payments made for post-retirement benefits   (6.7)      (2.2)                   
Payments made for rehabilitation             (15.4)        -                    
Payments made to environmental trust         (8.9)      (9.0)                   
Interest received                            301.4      287.2                   
Dividends received                           192.4      515.1                   
Net cash used in investing activities        (847.9)    (1 448.3)               
Cash flows from financing activities                                            
Issue of ordinary shares                     14.9       26.8                    
Repayments/(proceeds) from short-term        (152.7)    2.3                     
borrowings                                                                      
Repayments of long-term borrowings           (23.6)     (26.8)                  
Dividends paid to group shareholders         (2 329.7)  (2 309.3)               
Net cash used in financing activities        (2 491.1)  (2 307.0)               
Net (decrease)/increase in cash and cash     (825.8)    112.7                   
equivalents                                                                     
Cash and cash equivalents at beginning of    3 150.3    3 037.6                 
year                                                                            
Cash and cash equivalents at end of year     2 324.5    3 150.3                 
Summary of business segments                                                    
Year ended                                Impala   Inter                        
30 June    Impala             Zimbabwe    Refining segment                      
2003       Platinum  Barplats Operations  Services adjustment  Total            
Sales      11 340.7  154.6    696.1       2 913.8  (3 298.2)   11               
                                                               807.0            
Profit     4 436.8   (43.6)   184.4       491.3    (37.8)      5 031.1          
from                                                                            
operations                                                                      
Notes                                                                           
The consolidated annual financial statements are prepared on the historical cost
basis. Accounting principles and policies used, comply with South African       
Generally Accepted Accounting Practices and International Financial Reporting   
Standards and are consistent with the accounting policies applied in the        
previous year. Where necessary comparative figures have been adjusted to conform
with changes in presentation in the current year.                               
The financial statements have been audited by PricewaterhouseCoopers Inc. whose 
opinion is available for inspection at the registered office of Implats.        
The calculation of Headline Earnings per share is derived from consolidated net 
profit of R3 415.1 million (2002: R4 581.5 million) adjusted for any non-       
operational gains and losses, divided by the weighted average number of shares  
in issue. Adjustments were made for amortisation of goodwill R6.8 million (2002:
R9.2 million), sale of investment in Brandrill Limited R0.6 million (2002:      
impairment of Brandrill Limited investment R27.7 million) and profit on sale of 
Kroondal shares in 2002 of R53.5 million.                                       
During the period under review, the group acquired additional shareholdings as  
follows:                                                                        
*    a further 21% in Zimbabwe Platinum Mines Limited( Zimplats) for R209.2     
million (AU $35.3 million). Consequently the company"s results were consolidated
from September 2002 (whereas previously results had been equity accounted)      
*    at year end, the ABSA share in Zimplats held through Impala Platinum       
Zimbabwe (Proprietary) Limited for R142.0 million. As a result, the previous    
equity accounted investment in Makwiro Platinum Mines (Private) Limited was     
included in the consolidation of Zimplats                                       
*    an additional 15% stake in ZCE Platinum Limited, which owns Mimosa         
Platinum, Private Limited, for R130.4 million (GBP 8.0 million) which increased 
the holding to 50% and consequently the company"s results were proportionally   
consolidated from July 2002 (whereas previously results had been equity         
accounted).                                                                     
Borrowings consist of:                                                          
*    debentures of R85,8 million (2002: R112.6 million) secured by a pledge of  
freehold properties, included in mining assets, with a book value of R178       
million (2002: R178 million). Half of the debentures bear interest at a fixed   
rate of 18.9% per annum, with the other half bearing current interest at 15.4%  
per annum. All are repayable on 30 June 2004.                                   
*    a loan from ABSA Bank Limited of R181.3 million (2002: nil) secured by     
sales from the Ngezi/SMC project and various pledges of shares of subsidiaries  
and guarantees from Zimplats and Impala Platinum Holdings Limited (Implats).    
Repayable by March 2005.                                                        
Capital expenditure approved at 30 June 2003 amounted to R2869.0 million of     
which R986.3 million is already committed. This expenditure over a 5 year period
will be funded internally and if necessary from borrowings.                     
Certain guarantees were in place as at 30 June 2003:                            
*    Implats has provided a guarantee up to 30% of a facility, made available by
ABSA to Makwiro Platinum Mines (Private) Limited. As at 30 June 2003, the       
guarantee amounted to R73.0 million (US$9.7 million) (2002: 90.1 million) (US$  
8.7 million). The guarantee is set to expire by September 2004.                 
*    Implats has provided a guarantee to Investec Bank Limited on behalf of     
Aquarius Platinum (South Africa) (Proprietary) Limited for a loan facility      
granted of R175.0 million (2002: R175 million), of which R175.0 million has been
utilised at 30 June 2003 (2002: R124.8 million).                                
This guarantee is set to expire upon completion of certain project completion   
tests, relating to the Marikana project, which is expected to be no later than  
the end of calendar year 2004.                                                  
* A loan facility of R81.5 million (2002: R111.4 million) has been guaranteed in
favour of banking institutions, available for utilisation by Lonplats           
(comprising Western Platinum Limited and Eastern Platinum Limited). The full    
amount has been utilised at 30 June 2003 (2002: nil). The guarantee is set to   
expire by September 2005.                                                       
Operating statistics                                                            
for the year ended 30 June                                %                     
2003      2002     change                
Gross refined production                                                        
Platinum                    ("000 oz)  1 673     1 387    20.6                  
Palladium                   ("000 oz)  893       732      22.0                  
Rhodium                     ("000 oz)  215       177      21.5                  
Nickel                      ("000 t)   14.7      13.0     13.1                  
Impala refined production                                                       
Platinum                    ("000 oz)  1 040     1 025    1.5                   
Palladium                   ("000 oz)  478       489      (2.2)                 
Rhodium                     ("000 oz)  134       123      8.9                   
Nickel                      ("000 t)   8.0       7.7      3.9                   
IRS refined production                                                          
Platinum                    ("000 oz)  633       362      74.9                  
Palladium                   ("000 oz)  415       243      70.8                  
Rhodium                     ("000 oz)  81        54       50.0                  
Nickel                      ("000 t)   6.7       5.3      26.4                  
IRS returned metal (toll                                                        
refined)                                                                        
Platinum                    ("000 oz)  252       152      65.8                  
Palladium                   ("000 oz)  174       102      70.6                  
Rhodium                     ("000 oz)  18        16       10.5                  
Nickel                      ("000 t)   0.9       0.7      28.6                  
Group consolidated                                                              
statistics                                                                      
Exchange rate:              (R/US$)                                             
Closing rate on 30 June                7.52      10.32    (27.1)                
Average rate achieved                  9.06      10.16    (10.8)                
Free market revenue per                                                         
platinum ounce sold         ($/oz)     939       934      0.5                   
Revenue per platinum                                                            
ounce sold                  ($/oz)     935       934      0.1                   
Prices achieved                                                                 
Platinum                    ($/oz)     597       485      23.1                  
Palladium                   ($/oz)     264       389      (32.1)                
Rhodium                     ($/oz)     646       1 098    (41.2)                
Nickel                      ($/t)      7 664     5 594    37.0                  
Sales volumes                                                                   
Platinum                    ("000 oz)  1 373     1 251    9.8                   
Palladium                   ("000 oz)  688       663      3.8                   
Rhodium                     ("000 oz)  193       165      17.0                  
Nickel                      ("000 t)   13.9      12.0     15.8                  
Gross margin achieved       (%)        42.6      51.6     (17.4)                
Return on equity            (%)        36.8      68.2     (46.0)                
Return on assets            (%)        30.0      49.1     (38.9)                
Debt to equity              (%)        2.7       1.2      (125.0)               
Current ratio                          1.3:1     1.5:1    (13.3)                
Tonnes milled ex mine       ("000 t)   17 483    15 607   12.0                  
Pgm refined production      ("000 oz)  3 162     2 639    19.8                  
Capital expenditure         (Rm)       1 787     1 250    (43.0)                
                            (US$m)     198       123      (61.0)                
Impala business segment                                                         
Tonnes milled ex mine       ("000 t)   15 042    14 850   1.3                   
Total cost per tonne        (R/t)      265       239      (10.9)                
milled                                                                          
                            ($/t)      29.4      23.6     (24.6)                
Pgm refined production      ("000 oz)  1 924     1 895    1.5                   
Cost per Pgm ounce refined  (R/oz)     2 072     1 872    (10.7)                
                            ($/oz)     230       185      (24.3)                
Cost per pt oz refined                                                          
Total cost of operations    (R/oz)     3 832     3 459    (10.8)                
($/oz)     425       341      (24.6)                
Net of revenue received                                                         
for other metals            (R/oz)      899       (708)   (227.0)               
                            ($/oz)      100       (70)    (242.9)               
Capital expenditure         (Rm)       1 079     1 009    (6.9)                 
                            (US$m)     120       100      (20.0)                
Total Impala labour         ("000)     28.4      27.9     (1.3)                 
complement                                                                      
M2 per stoping employee     (m2/empl)  40.7      40.2     1.2                   
Extracts from the Annual Report                                                 
Operationally and financially in the year under review, your company has shown  
considerable resilience in the face of a range of challenges, with net profit of
R3.4 billion and headline earnings of 5 140 cents per share. As a result, the   
Board has declared a final dividend of 1 750 cents per share, bringing the total
dividend for the year to 2 650 cents per share. Attention to the bottom line has
not prevented solid progress towards growth, both in South Africa and beyond.   
The strengthening of the rand against the US dollar has militated against our   
operational efforts, even though platinum production reached record levels.     
While the platinum price in US dollar terms remained strong throughout FY2003,  
palladium and rhodium prices declined and, combined with the stronger rand, this
helped to drive the average basket price down 11% in rand terms. Consequently   
this led to a decrease in earnings.                                             
Seen in context, though, your company has continued to deliver a superior market
performance, for which it was recognised - for the second consecutive year - by 
the Financial Mail as the top performing company on the JSE Securities Exchange 
based on returns to shareholders over a five-year period. Significantly, the    
total return to shareholders (combining appreciation in share price and         
dividends paid) reflects a compounded average growth of 64% a year over the last
five years.                                                                     
FY2003 was not without its challenges, both from factors internal and external  
to the company. Our results reflect this:                                       
* Gross platinum production rose by 21% to a record 1.67 million ounces.        
* Dollar platinum prices held up well. The average price received for the year  
was $597 per platinum ounce, up 23% on the previous year. On the flip side, the 
average prices for palladium and rhodium declined by 32% and 41% to $264 and    
$646 per ounce respectively.                                                    
* The continued strong performance of the rand meant that while average dollar  
revenue per platinum ounce sold was maintained, average rand revenue received   
per platinum ounce decreased by 11%.                                            
* Net profit declined by 25% to R3.4 billion.                                   
* Cash operating cost per ounce of refined platinum rose by 10.8% to R3 832. The
steep rise in steel prices and additional support costs impacted negatively, as 
did the 10-day work stoppage experienced in March.                              
* Despite significant pressures, the overall margin for the year was maintained 
above 40%.                                                                      
* A final dividend of 1 750 cents per share has been proposed, bringing the     
dividend for the year to 2 650 cents per share. This represents a dividend yield
of 4.6%.                                                                        
It is gratifying to note significant improvements in our group"s safety         
performance. We deeply regret, however, that eight employees died at work during
the year. In expressing my sympathy to the families and friends of those who    
have died, we are reminded that we simply cannot afford complacency on matters  
of safety at any level in our organisation.                                     
Two events served to increase the liquidity of the company"s shares during the  
year. First, an upgraded Level 1, sponsored ADR programme initiated in January  
2003 has contributed towards the satisfactory increase in the offshore          
shareholder base. Second, the unbundling of Gencor"s 46.3% holding in your      
company has also served to improve the liquidity of our shares.                 
In its drive to meet a production target of two million ounces of platinum by   
2006, your company has progressed the Marula Platinum mine and has started      
underground development and integrated production is expected to be both on time
and within budget, by the end of calendar year 2003. Further, we became the     
controlling shareholder of Zimbabwe Platinum Mines Limited (Zimplats), owner of 
Makwiro Platinum Mines (Pvt) Limited which comprises the Ngezi Mine and Selous  
Metallurgical Complex. An offer to minority shareholders, recommended by the    
independent Zimplats directors, will close on 29 August 2003. The offer, while  
generous, was intended to achieve for your company greater access to the world"s
second largest PGM deposit at a cost equivalent to US$1.35 per platinum ounce.  
At the same time, discussions have progressed with Lonmin as the opportunity to 
examine this investment arose out of Lonplats" need to empower their business.  
The Zimplats" acquisition and the Lonplats" discussions have unleashed expansion
opportunities for assets directly under management, while allowing the          
opportunity to rationalise Implats" structure.                                  
Ongoing legislative change in South Africa"s mining sector continues to pre-    
occupy both producers and investors. We are confident of your company"s ability 
to meet the Black Economic Empowerment requirements of both the Minerals and    
Petroleum Resources Development Act and the Broad-Based Socio-Economic Charter  
for the Mining Industry.                                                        
The draft Royalty Bill has raised new, entirely legitimate investor concerns.   
Broadly interpreted, its actions seemingly fly in the face of the developmental 
imperatives of both the Act and the Charter. Again, we have actively voiced our 
concerns and are optimistic these will be heard and acted upon.                 
Towards year-end, we announced the resignation of Kgosi Leruo Molotlegi as the  
Royal Bafokeng Nation"s nominee to the Board and the appointment in his stead of
his alternate, Mr Thabo Mokgatlha. Kgosi Molotlegi has played an important and  
constructive role in the evolving relationship between your company and the     
Royal Bafokeng Nation, for which we are grateful. We wish him well as he takes  
up the exciting new challenges presented by his enthronement in August.         
The prospects for Implats remain good both in the short and medium term, as     
existing operations continue to perform well and new projects come on stream,   
with the fundamental demand for our primary products remaining strong.          
Predicting the performance of the rand is not something we profess to be expert 
at. Although we believe that further strengthening of the rand in the year ahead
is unlikely, the anticipated exchange rate for the forthcoming year is still    
expected to be stronger than the average rate of R9.06/$ achieved last year.    
Shareholders should note that the average exchange rate prevailing for the      
second half of the year was R8.08/$.                                            
Consequently, in the absence of a sudden and unexpected weakening of the        
currency, earnings for the coming year are likely to be lower than the results  
we have reported.                                                               
P G Joubert         K C Rumble                                                  
Chairman            Chief Executive Officer                                     
28 August 2003                                                                  
Declaration of Final Dividend                                                   
A final dividend of 1 750 cents per share has been declared in respect of the   
year ended 30 June 2003. The last day to trade ("cum" the dividend) in order to 
participate in the dividend will be Thursday, 18 September 2003. The share will 
commence trading "ex" the dividend from the commencement of business on Friday, 
19 September 2003 and the record date will be Friday, 26 September 2003.        
The dividend is declared in the currency of the Republic of South Africa.       
Payments from the London transfer office will be made in United Kingdom currency
at the rate of exchange ruling on 25 September 2003 or on the first day         
thereafter on which a rate of exchange is available.                            
The dividend will be paid on Monday, 29 September 2003. Share certificates may  
not be lodged with the transfer secretaries for                                 
dematerialisation/rematerialisation during the period Friday, 19 September 2003 
to Friday, 26 September 2003, both dates inclusive.                             
By order of the board                                                           
A M Snashall                                                                    
Group Secretary                                                                 
Johannesburg                                                                    
28 August 2003                                                                  
Registered Office                                                               
3rd Floor, Old Trafford 4, Isle of Houghton                                     
Boundary Road, Houghton 2198                                                    
(P.O. Box 61386, Marshalltown 2107)                                             
Transfer Secretaries                                                            
South Africa:                                                                   
Computershare                                                                   
Limited                                                                         
70 Marshall Street                                                              
Johannesburg 2001                                                               
(P.O. Box 61051, Marshall Town                                                  
2107)                                                                           
United Kingdom: Lloyds TSB Registrars                                           
The Causeway, Worthing                                                          
West Sussex                                                                     
BN99 6DA                                                                        
Date: 28/08/2003 08:00:16 AM             
Produced by the JSE SENS Department