IMP - Impala Platinum Holdings Limited - Consolida30 Aug 2007
IMP - Impala Platinum Holdings Limited - Consolidated annual results for the    
year ended 30 June 2007 (audited)                                               
IMPALA PLATINUM HOLDINGS LIMITED                                                
(Incorporated in the Republic of South Africa)                                  
Registration No. 1957/001979/06                                                 
Share code: IMP/IMPO        ISIN: ZAE000083648                                  
LSE: IPLA                   ADR`s: IMPUY                                        
("Implats" or "the company")                                                    
Consolidated Annual Results for the year ended 30 June 2007 (Audited)           
* Unsatisfactory safety performance                                             
* Record group platinum production of more than 2Moz                            
* Lower Merensky volumes affect unit cost at Impala                             
* Gross margin improves to 46%                                                  
* Headline earnings up by 75% to R13.12 per share                               
* Normalised headline earnings* more than double to R16.36 per share            
* Capital expenditure of R2.89 billion                                          
* Total dividend per share of R9.75 (Final R7 per share)                        
* Excluding BEE charge                                                          
Balance Sheet                                                                   
As at      As at                    
(All amounts in rand millions                30 June    30 June                 
unless otherwise stated)                     2007       2006 (1)                
Non-current assets                                                              
Property, plant, equipment, exploration and  20,346.3   12,435.4                
evaluation assets                                                               
Intangible assets                            1,020.2     -                      
Investments in equity accounted entities     1,416.5    1,167.9                 
Available-for-sale financial investments     1,557.9    761.1                   
Held-to-maturity investments                 120.9      108.2                   
Other receivables and prepayments            12,738.8   611.3                   
37,200.6   15,083.9                 
Current assets                                                                  
Inventories                                  3,997.4    2,936.0                 
Trade and other receivables                  5,535.9    3,585.6                 
Cash and cash equivalents                    3,221.9    1,864.4                 
                                            12,755.2   8,386.0                  
Non-current assets classified as held-for-   2.4         -                      
12,757.6   8,386.0                  
Total assets                                 49,958.2   23,469.9                
Capital and reserves attributable to the                                        
equity holders of the company                                                   
Share capital                                14,809.1   457.9                   
Other reserves                               676.2      18.7                    
Retained earnings                            17,483.8   13,363.3                
32,969.1   13,839.9                 
Minority interest                            1,730.1    214.9                   
Total equity                                 34,699.2   14,054.8                
Non-current liabilities                                                         
Borrowings                                   685.6      174.0                   
Deferred income taxation                     5,047.0    2,919.0                 
Provision for employee benefit obligations   560.6      187.5                   
Provision for future rehabilitation          330.1      335.4                   
Derivative financial instruments              -         38.2                    
                                            6,623.3    3,654.1                  
Current liabilities                                                             
Trade and other payables                     7,087.5    4,741.1                 
Current income taxation                      1,373.4    926.9                   
Borrowings                                   32.1       27.8                    
Provision for employee benefit obligations   93.5        -                      
Derivative financial instruments             49.2       65.2                    
                                            8,635.7    5,761.0                  
Total liabilities                            15,259.0   9,415.1                 
Total equity and liabilities                 49,958.2   23,469.9                
Income Statement                                                                
                                          Year ended  Year ended                
(All amounts in rand millions              30 June     30 June                  
unless otherwise stated)                   2007        2006 (1)                 
Sales                                      31,481.5    17,500.2                 
On-mine operations                         (5,900.7)   (4,708.6)                
Concentrating and smelting operations      (1,315.8)   (1,129.6)                
Refining operations                        (594.1)     (523.4)                  
Amortisation of operating assets           (864.7)     (643.1)                  
Metals purchased                           (9,369.1)   (4,326.2)                
Increase in metal inventories              1,034.9     1,161.0                  
Cost of sales                              (17,009.5)  (10,169.9)               
Gross profit                               14,472.0    7,330.3                  
Net foreign exchange transaction           (15.5)      177.8                    
Other operating expenses                   (478.0)     (340.0)                  
Other expenses                             (214.1)     (147.6)                  
Share of profit of associates              388.5       114.8                    
Royalty expense                            (1,703.4)   (851.8)                  
BEE compensation charge                    (1,790.0)   (95.3)                   
Reversal of impairment of assets            -          583.1                    
Interest and other income - net            642.4       303.8                    
Finance costs                              (81.9)      (79.0)                   
Profit before taxation                     11,220.0    6,996.1                  
Income taxation expense                    (3,894.7)   (2,614.5)                
Profit for the year                        7,325.3     4,381.6                  
Profit attributable to:                                                         
Equity holders of the company              7,232.2     4,341.9                  
Minority interest                          93.1        39.7                     
                                          7,325.3     4,381.6                   
Earnings per share (expressed in cents                                          
per share - cps)                                                                
- basic                                    1,312       825                      
- diluted                                  1,272       823                      
Dividends to group shareholders (cps)                                           
- final dividend - June 2007/6             700         275                      
- interim dividend - December 2006/2005     275        125                      
- special dividend - December 2005          -          688                      
                                          975         1,088                     
Summary of Business Segments                                                    
(All amounts in Rand millions, unless otherwise stated)                         
                     Mining segment                                             
                     Impala        Marula      Afplats   Zimplats    Mimosa     
for the year ended                                                              
30 June 2007                                                                    
Total sales           29,813.9      1,212.7               1,697.3     843.0     
Cost of sales         19,015.9      650.7                 768.7       261.5     
Gross profit          10,798.0      562.0                 928.6       581.5     
Profit for the year   4,193.8       397.5       (9.3)     716.3       518.6     
for the year ended                                                              
30 June 2006 (1)                                                                
Total sales           16,864.9      511.1                 1,037.9     436.0     
Cost of sales         10,912.9      416.2                 604.3       207.0     
Gross profit          5,952.0       94.9                  433.6       229.0     
Profit for the year   3,346.5       402.6                 305.4       174.8     
              Total     Refining   Investment Inter                             
Mining    Services   and Other  segment                           
              segment   segment    segment    adjustment  Total                 
for the year                                                                    
ended 30 June                                                                   
Total sales    33,566.9  13,649.3              (15,734.7)  31,481.5             
Cost of sales  20,696.8  11,862.1              (15,549.4)  17,009.5             
Gross profit   12,870.1  1,787.2               (185.3)     14,472.0             
Profit for the 5,816.9   1,312.9    341.4      (145.9)     7,325.3              
for the year                                                                    
ended 30 June                                                                   
2006 (1)                                                                        
Total sales    18,849.9  6,221.6               (7,571.3)   17,500.2             
Cost of sales  12,140.4  5,336.5               (7,307.0)   10,169.9             
Gross profit   6,709.5   885.1                 (264.3)     7,330.3              
Profit for the 4,229.3   715.0      (355.0)    (207.7)     4,381.6              
Headline earnings                                                               
                                          Year ended  Year ended                
(All amounts in rand millions              30 June     30 June                  
unless otherwise stated)                   2007        2006 (1)                 
Profit attributable to equity holders of   7,232.2     4,341.9                  
the company                                                                     
Adjustments net of taxation:                                                    
Impairment write-back of assets            -           (421.6)                  
Investment written off                     -           127.1                    
Profit on disposal of assets               (0.4)       (100.9)                  
Headline earnings                          7,231.8     3,946.5                  
BEE compensation charge                    1,790.0     95.3                     
Normalised headline earnings               9,021.8     4,041.8                  
Headline earnings per share (cents)        1,312       750                      
Normalised headline earnings per share     1,636       768                      
Weighted averge number of ordinary shares  551.400     526.148                  
in issue (millions)                                                             
Cash Flow Statement                                                             
                                          Year ended  Year ended                
(All amounts in rand millions              30 June     30 June                  
unless otherwise stated)                   2007        2006 (1)                 
Cash flows from operating activities                                            
Cash generated from operations             12,945.0    6,533.4                  
Interest paid                              (42.0)      (60.8)                   
Income taxation paid                       (2,931.4)   (1,553.8)                
Net cash from operating activities         9,971.6     4,918.8                  
Cash flows from investing activities                                            
Acquisition of subsidiary, net of cash     (3,884.2)    -                       
Increase in shareholding in subsidiary      -          (1.5)                    
Long term royalty prepayment to the                                             
Royal Bafokeng Nation                      (12,482.6)   -                       
Purchase of property, plant and equipment  (2,810.2)   (2,176.7)                
Proceeds from sale of property, plant and   4.2        101.7                    
Increase in investments in associates      (119.0)     (151.7)                  
Payment received from associate on         258.9        -                       
shareholders loan                                                               
Loan repayments received                   36.3        36.5                     
Interest received                          547.6       356.3                    
Dividends received                         22.6        10.9                     
Net cash used in investing activities      (18,426.4)  (1,824.5)                
Cash flows from financing activities                                            
Issue of ordinary shares, net of cost      12,544.1    213.9                    
Lease liability repaid                     (22.0)      (16.1)                   
Proceeds from short-term borrowings        -           6.9                      
Repayments of short-term borrowings        (11.3)       -                       
Proceeds from long-term borrowings         435.9       10.2                     
Repayments of long-term borrowings         (11.3)       -                       
Dividends paid to company`s shareholders   (3,111.7)   (5,467.9)                
Net cash from/(used in) financing          9,823.7     (5,253.0)                
Net increase/(decrease) in cash and cash   1,368.9     (2,158.7)                
Cash and cash equivalents at beginning of  1,864.4     3,984.3                  
Effects of exchange rate changes on        (15.0)      38.8                     
monetary assets                                                                 
Cash and cash equivalents at end of year   3,218.3     1,864.4                  
(1) Restated with the adoption of IFRIC 4                                       
The consolidated financial statements have been prepared in accordance with     
International Financial Reporting Standards (IFRS), Interpretations of those    
standards (as adopted by the International Accounting Standards Board) and      
applicable legislation (requirements of the South African Companies Act and the 
regulations of the JSE Limited.)                                                
The consolidated financial statements have been prepared under the historical   
cost convention except for the following:                                       
Revaluation of available-for-sale financial investments at fair value, certain  
financial assets and financial liabilities are measured at fair value,          
derivative financial instruments are measured at fair value and liabilities for 
cash-settled share-based payment arrangements are measured at fair value.       
The principal accounting policies used by the group are consistent with those of
the previous year, unless otherwise stated.                                     
Changes in accounting policies                                                  
The following new interpretations of International Financial Reporting Standards
have been issued and have been adopted:                                         
- IFRIC 4: Determining whether an Arrangement contains a Lease (effective 1     
January 2006). The adoption of IFRIC 4 requires the group to identify any       
arrangement that does not take the legal form of a lease, but conveys a right to
use an asset in return for a payment or series of payments. The effect of the   
implementation of this interpretation is set out below.                         
The group has identified arrangements that contain leases and reported these    
arrangements in terms of IAS 17. The retrospective adoption of this             
interpretation resulted in the recognition of assets and corresponding finance  
lease liabilities, with a corresponding reduction in retained earnings of R15.6 
million (2006: R10.2 million.) Profit for the year reduced by R5.4 million      
(2006: R3.5 million).                                                           
- IFRIC 10: Interim Financial Reporting and Impairment (effective 1 November    
2006) prohibits the reversal of an impairment loss recognised in a previous     
interim period in respect of goodwill, an investment in an equity instrument or 
a financial asset carried at cost. The implementation of this interpretation had
no impact on the results of the group.                                          
- IFRIC 11: IFRS 2 - Group and Treasury Share Transactions (effective 1 March   
2007).  The interpretation addresses how to apply IFRS 2 - Share-based Payment, 
to share-based payment arrangements involving an entity`s own equity instruments
or equity instruments of another entity in the same group. The implementation of
this interpretation had no material impact on the results of the group.         
- IFRIC 14: IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding      
Requirements of their Interaction. The interpretation addresses refunds or      
reductions in future contributions, the impact of minimum funding on future     
contributions and potential liabilities. The implementation of this             
interpretation had no impact on the results of the group.                       
The following standard has been adopted by the group:                           
- IAS 19 Employee Benefits (revised, effective 1 January 2006). This standard   
deals with the accounting for employee benefits. The adoption of this accounting
statement had no material impact on the results of the group.                   
AUDIT OPINION                                                                   
The financial statements have been audited by PricewaterhouseCoopers Inc. whose 
unqualified opinion is available for inspection at the registered office of     
On 14 May 2007 the group acquired the entire issued and to be issued share      
capital of African Platinum PLC, an exploration and development business        
focussed on platinum group metals. The acquired business did not contribute to  
group revenue or profit for the year under review due to its nature as a        
developing mine                                                                 
and exploration activities. The net cash outflow on acquisition amounted to     
R3,884.2 million. The goodwill of R1,020.2 million is based on the provisional  
purchase price allocation of fair value. The purchase price allocation will be  
finalised in FY2008, subject to an independent review of resources.             
SHARE ISSUE                                                                     
Implats issued 75.1 million shares to the Royal Bafokeng Nation ("RBN") whereby 
the RBN acquired an effective shareholding of 13.4% in Implats. The difference  
between the fair value of the shares acquired and the fair value of the prepaid 
royalty was R1,790.0 million.                                                   
EMPLOYEE SHARE OWNERSHIP PROGRAMME                                              
During the period under review 16.4 million shares were issued in terms of an   
approved Employee Share Ownership Programme.                                    
Borrowings from Standard Bank Limited, amounting to R395.0 million, were        
obtained during the financial year, which carries interest at the Johannesburg  
Interbank Acceptance Rate (JIBAR) plus 90 basis points and a revolving credit   
facility amounting to R72.9 million, which carries interest at JIBAR plus 100   
basis points. The loans are repayable over 8.5 years.                           
CONTINGENT LIABILITIES AND GUARANTEES        2007     2006                      
Most signaficant guarantees                                                     
Related party:                                                                  
Two Rivers Platinum (Proprietary) Limited    292.9    210.6                     
Department of Minerals and Energy            324.9    296.9                     
BTX Mining, a contract miner for Barplats Limited, has lodged a claim for an    
amount of R49.0 million against Impala Platinum Limited following the closure of
the Barplats Mine. The company maintains its position that the claim lacks merit
and therefore no amount is due to BTX Mining.                                   
CAPTIAL EXPENDITURE                                                             
Capital expenditure approved at 30 June 2007 amounted to R14.0 billion (2006:   
R11.9 billion) of which R3.2 billion (2006: R2.3 billion) is already committed. 
This expenditure will be funded internally and if necessary, from borrowings.   
STATEMENT OF CHANGES IN SHAREHOLDERS` EQUITY                                    
(All amounts in rand millions unless otherwise stated)                          
                            Attributable to equity holders                      
                            of the Company                                      
Share    Other     Retained                         
                            capital  reserves  earnings   Total                 
Balance at 30 June 2005 (1)  120.4    (506.1)   14,489.3   14,103.6             
Net income recognised                                                           
in equity                             525.1                525.1                
Profit for the year (1)                         4,341.9    4,341.9              
Employee share option                                                           
 - Proceeds from shares     213.9                         213.9                 
 - Fair value of employee   28.3                          28.3                  
Final dividend relating to                      (1,181.9)  (1,181.9)            
Interim dividend relating                       (661.9)    (661.9)              
to 2006                                                                         
Special dividend                                (3,624.1)  (3,624.1)            
Share in revaluation                  0.2                  0.2                  
reserve of associate                                                            
BEE compensation charge      95.3                          95.3                 
from sale of shares in                                                          
Marula Platinum (Pty)                                                           
Purchase of additional                (0.5)                (0.5)                
share in Zimplats Holdings                                                      
Balance at 30 June 2006 (1)  457.9    18.7      13,363.3   13,839.9             
Net income recognised                                                           
in equity                             657.5                657.5                
Profit for the year                             7,232.2    7,232.2              
Employee share option                                                           
- Proceeds from shares       79.1                          79.1                 
- Fair value of employee     17.1                          17.1                 
Issue of shares to the       12,465.0                      12,465.0             
Royal Bafokeng Nation                                                           
Final dividend relating to                      (1,451.7)  (1,451.7)            
Interim dividend relating                       (1,660.0)  (1,660.0)            
to 2007                                                                         
BEE compensation charge      1,790.0                       1,790.0              
from shares issued to the                                                       
Royal Bafokeng Nation                                                           
Acquisition of a subsidiary                                                     
Balance at 30 June 2007      14,809.1 676.2     17,483.8   32,969.1             
                                     Minority        Total                      
                                     interest        equity                     
Balance at 30 June 2005 (1)           159.9           14,263.5                  
Net income recognised directly                                                  
in equity                             16.3            541.4                     
Profit for the year (1)               39.7            4,381.6                   
Employee share option scheme:                                                   
- Proceeds from shares issued                       213.9                      
 - Fair value of employee service                    28.3                       
Final dividend relating to 2005                       (1,181.9)                 
Interim dividend relating to 2006                     (661.9)                   
Special dividend                                      (3,624.1)                 
Share in revaluation reserve of                       0.2                       
BEE compensation charge from sale of                  95.3                      
shares in Marula Platinum (Pty)                                                 
Purchase of additional share in       (1.0)           (1.5)                     
Zimplats Holdings Limited                                                       
Balance at 30 June 2006 (1)           214.9           14,054.8                  
Net income recognised directly                                                  
in equity                             (5.3)           652.2                     
Profit for the year                   93.1            7,325.3                   
Employee share option scheme:                                                   
 - Proceeds from shares issued                       79.1                       
 - Fair value of employee service                    17.1                       
Issue of shares to the Royal                          12,465.0                  
Bafokeng Nation                                                                 
Final dividend relating to 2006                       (1,451.7)                 
Interim dividend relating to 2007                     (1,660.0)                 
BEE compensation charge from shares                   1,790.0                   
issued to the Royal Bafokeng Nation                                             
Acquisition of a subsidiary           1,427.4         1,427.4                   
Balance at 30 June 2007               1,730.1         34,699.2                  
(1) Restated with the adoption of IFRIC 4                                       
OPERATING STATISTICS                                                            
for the year ended 30 June             2007     2006     %                      
Gross refined production                                                        
Platinum                    (`000 oz)  2,026    1,846    9.8                    
Palladium                   (`000 oz)  1,114    989      12.6                   
Rhodium                     (`000 oz)  247      242      2.1                    
Nickel                      (`000 t)   16.2     15.6     3.8                    
Impala refined production                                                       
Platinum                    (`000 oz)  1,055    1,125    (6.2)                  
Palladium                   (`000 oz)  472      492      (4.1)                  
Rhodium                     (`000 oz)  103      129      (20.2)                 
Nickel                      (`000 t)   7.0      7.9      (11.4)                 
IRS refined production                                                          
Platinum                    (`000 oz)  971      721      34.7                   
Palladium                   (`000 oz)  642      497      29.2                   
Rhodium                     (`000 oz)  144      113      27.4                   
Nickel                      (`000 t)   9.2      7.7      19.5                   
IRS returned metal (Toll                                                        
Platinum                    (`000 oz)  262      246      6.5                    
Palladium                   (`000 oz)  191      190      0.5                    
Rhodium                     (`000 oz)  47       42       11.9                   
Nickel                      (`000 t)   0.9      2.2      (59.1)                 
Group consolidated                                                              
Exchange rate:              (R/$)                                               
Closing rate on 30 June                7.06     7.16     (1.4)                  
Average rate achieved                  7.20     6.37     13.0                   
Free market price per                                                           
ounce sold                  ($/oz)     2,445    1,791    36.5                   
Revenue per platinum ounce  ($/oz)     2,369    1,721    37.7                   
                           (R/oz)     17,057   10,963   55.6                    
Prices achieved                                                                 
Platinum                    ($/oz)     1,185    988      19.9                   
Palladium                   ($/oz)     334      258      29.5                   
Rhodium                     ($/oz)     5,152    3,015    70.9                   
Nickel                      ($/t)      34,486   15,343   124.8                  
Sales volumes                                                                   
Platinum                    (`000 oz)  1,827    1,582    15.5                   
Palladium                   (`000 oz)  870      896      (2.9)                  
Rhodium                     (`000 oz)  206      193      6.7                    
Nickel                      (`000 t)   16.3     14.8     10.1                   
Financial ratios                                                                
Gross margin achieved       (%)        46.0     41.9     9.8                    
Return on equity            (%)        52.3     28.0     86.8                   
Return on assets            (%)        19.4     26.2     (26.0)                 
Debt to equity              (%)        2.1      1.4      (50.0)                 
Current ratio                          1.5:1    1.5:1    -                      
Operating indicators                                                            
Tonnes milled ex-mine       (`000 t)   20,732   20,197   2.6                    
PGM refined production      (`000 oz)  3,858    3,490    10.5                   
Capital expenditure         (Rm)       2,887    2,248    28.4                   
                           ($m)       401      352      13.9                    
Group unit cost per         (R/oz)     6,370    5,009    (27.2)                 
platinum ounce                                                                  
                           ($/oz)     886      784      (13.0)                  
EXTRACTS FROM THE ANNUAL REPORT                                                 
Safety at Impala Platinum Holdings Limited (Implats) in FY2007 has been         
disappointing with the  fatality frequency rate having deteriorated. The number 
of fatal incidents rose for the first time in five years with 13 fatal incidents
during the year compared to seven in the previous reporting period. Nine of     
these fatalities occurred at the Impala Platinum mining operations, one at      
Marula and three at Mimosa in Zimbabwe. The board and management of the company 
extend their sincere condolences to the families and friends of these employees.
The lost-time injury frequency rate rose marginally from 3.41 in FY2006 to 3.48 
per million manhours.                                                           
The reversal of the major gains in safety that have been made in recent years   
are taken extremely seriously and the group has taken steps to re-vitalise the  
fall of ground prevention campaign and increase focus on visible felt leadership
- falls of ground accounted for 62% of all fatal incidents in FY2007. A great   
deal of emphasis is also being placed on training, particularly of new          
employees, and on behaviour-based initiatives. Implats remains committed to a   
policy of "zero harm" in the longer term and is pursuing this challenge with    
The strength of the market for platinum group metals (PGMs) continued unabated, 
particularly for platinum and rhodium. The platinum markets continue to be      
driven by automotive growth, particularly in the diesel sector at the expense of
the more price elastic jewellery market that again succumbed to higher prices.  
Industrial demand also experienced strong growth during the period fuelled by   
increased demand in both the information technology and liquid crystal display  
glass sectors. The palladium market once again showed a substantial supply      
surplus but nonetheless experienced price robustness primarily due to the       
general strength of investor interest in precious metals. The price of rhodium  
rose sharply as the increasing need for the automotive sector to reduce NOx     
emissions in gasoline vehicles resulted in demand exceeding supply.             
Higher dollar metal prices, together with generally favourable exchange rates   
and higher metal production have materially benefited the group. Dollar revenues
per platinum ounce sold rose by 38%, while rand revenues were 56% higher        
compared to the previous financial year.                                        
Key operating and financial performance indicators pertaining to the business   
for the period under review are:                                                
* Record gross platinum production of 2.026 million ounces was attained despite 
unsatisfactory output of 1.055 million ounces at Impala Rustenburg.             
* Sales revenue was up by 80% on FY2006, reaching a record R31.5 billion ($4.4  
* The average rand:dollar exchange rate was R7.20/$ for the year, with the      
closing rand:dollar exchange rate at R7.06/$.                                   
* Cost of sales rose by 67%, R5.0 billion of the R6.8 billion was due  to the   
higher cost of metals purchased on the back of higher rand metal prices.        
* Group unit cost per platinum ounce refined was up by 21% (excluding share     
based payments) over the period, as a result of increased employee benefits     
granted during the period, and aggravated by declining grade and production     
output at Impala Rustenburg.                                                    
* Profit increased year-on-year to R7.2 billion ($1.0 billion).                 
* Headline earnings per share rose by 75% to 1,312 cents per share (182 US cents
per share). Excluding the BEE compensation charge, normalised headline earnings 
per share increased by 113%.                                                    
* Gross margins for the Group improved to 46% from 42% in the previous year,    
while Impala improved to 62%.                                                   
Operationally the group delivered a mixed performance. Under-delivery at Impala 
Rustenburg was offset by strong growth at the other operations and at Impala    
Refining Services.                                                              
Impala Platinum                                                                 
Impala Platinum reported production of 1.055 million platinum ounces, a decrease
of 6.2% on the record production levels of the previous year. Although tonnes   
mined declined marginally by 1.2%, less of the relatively high grade Merensky   
ore was mined and increased tonnages from mechanised Merensky, underground UG2  
and opencast UG2 ore resulted in lower platinum output.                         
High staff turnover at certain levels of middle management, including           
supervisory and skilled categories also contributed to poor operational         
performance. To counter this, salaries have been realigned and a new incentive  
scheme was introduced as from May 2007.                                         
The issues of lower grade and volumes aggravated unit cost increases, as did the
poor performance at 4, 11, 12 and 14 shafts. Excluding share-based payments, the
cash operating cost per refined platinum ounce rose by 22.3%. Steep increases in
the prices of steel, coal, fuel, copper and reagents far in excess of rates of  
inflation (CPIX) contributed to the increase in costs. Operational efficiency   
and cost management remain priorities.                                          
Good progress is being made with the 16 and 20 shaft projects. Both shafts are  
on track to begin production as originally scheduled: 16 shaft in FY2012 and 20 
shaft in FY2009 with full production scheduled for FY2016 and FY2013            
respectively. Implats` total capital investment in these two shafts will amount 
to R7 billion.                                                                  
The refineries continued to deliver an excellent performance, not only for      
Impala, but also for Impala Refining Services (IRS), which markets and sells the
capacity not used by Impala. The board has approved the expansion of both       
smelter and refining capacity to 2.8 million ounces of platinum per annum by    
FY2010 at a cost of R1 billion and R1.4 billion respectively.                   
Production of platinum-in-concentrate at 65,200 ounces exceeded expectations and
was 63% up on FY2006 while tonnes milled increased by 49%. The conversion to    
conventional mining and the plan to achieve full steady state production of     
130,000 ounces of platinum per annum by FY2010 remain on schedule.              
A pre-feasibility study has been completed on the Merensky Reef and was         
presented to the board in May 2007. The Merensky Reef project will incorporate  
the development of a new decline, concentrator and supporting mining            
infrastructure and will yield 115,000 oz of platinum annually. Initial forecasts
indicate capital expenditure in the region of R3 billion.                       
The development of the Leeuwkop project in which Implats holds 74%, is scheduled
to begin in FY2008. This depends on the necessary mining permit being received  
from the DME. Total capital expenditure is expected to be approximately R3.0    
billion which is over and above the acquisition cost of R4.2 billion. Full      
production of 160,000 oz of platinum is scheduled for FY2013 with a life of mine
of 22 years.                                                                    
Two Rivers                                                                      
The Two Rivers Platinum mine will reach full production of 120,000 oz of        
platinum in concentrate in FY2008. The mine is still in build up phase and      
produced approximately 88,000 oz in FY2007. The implementation of trackless,    
mechanised bord-and-pillar mining has progressed well. Wet commissioning of the 
plant started ahead of schedule in July 2006. Problems with initial             
commissioning were resolved and plant design capacity of 225,000t per month was 
achieved during FY2007. Average recoveries of 79% were achieved during the year 
and this is expected to improve in FY2008. The final cost of the project is     
R1.38 billion, R187 million less than originally budgeted.                      
Zimplats had another record year with production of 96,500 oz of platinum in    
matte. Tonnes milled rose by 6% and recoveries were maintained at 84.4% while   
costs were below budget. The conversion from opencast to underground mining     
continues and the original underground trial mine (Portal 2) is now fully       
operational. Closure of the opencast operation is scheduled for 2008.           
The phase 1 expansion, involving the development of portals 1 and 4 together    
with the simultaneous construction of a new concentrator, 700 houses and        
associated infrastructure is well underway. Combined full production of 160,000 
oz of platinum is expected by 2010.                                             
Capital expenditure for FY2007 totaled US$62 million of which $40 million was   
spent on the Phase 1 expansion, $264 million has been budgeted for FY2008.      
Mimosa produced 78,200 oz of platinum in concentrate for FY2007, an 8.3%        
increase on the previous year. Underground production ramped up in line with the
Wedza Phase V expansion project announced in January 2007. However, major       
equipment failures at the concentrator relating to Wedza Phase IV during the    
third quarter of the year impacted mill throughput. The mill has now been       
repaired and record tonnes were achieved in the fourth quarter of the year.     
Wedza Phase V is now scheduled for hot commissioning in November 2007 and will  
be finalised in January 2008.                                                   
Impala Refining Services                                                        
FY2007 was another record year in both operating and financial terms for Impala 
Refining Services. Refined platinum production rose by 35% to 971,000 oz of     
platinum. This increase was attributable in part to the continued ramp up in    
production at Marula, Two Rivers and AQPSA`s Everest Mine, and increased        
production from the Crocodile River mine. Also making favourable contributions  
were A1 Specialised Services and Supplies Inc., with the ongoing supply of spent
autocatalyst material for recycling, and Lonmin, which delivered material during
that company`s recent smelter incident.                                         
A transformation committee reporting at board level and responsible for         
compliance and the implementation of relevant programmes and processes was      
constituted during the year. Detailed plans to effect the required changes in   
this regard have been developed.                                                
In March 2007 the Black Economic Empowerment (BEE) ownership component of the   
group`s transformation initiative was enhanced when a deal with the Royal       
Bafokeng Holdings (Pty) Limited (RBH) was concluded. In terms of this           
transaction, Impala Platinum agreed to pay the Royal Bafokeng Nation (RBN) all  
royalties due to them, thus effectively discharging any further obligation to   
pay royalties. In turn the RBN purchased 75.1 million Implats shares giving them
a total holding of 13.4% in the company.                                        
A further component of the transformation initiative was the Employee Share     
Ownership Programme (ESOP) where some 28,000 employees will benefit from the    
appreciation in value of 3.0% (2.6% on a dilutive basis) of the group`s equity  
ensuring them a direct interest in the future growth of the company. At the end 
of the financial year this programme was worth in the region of R1 billion to   
STRATEGIC ISSUES                                                                
Implats will remain a primary platinum producing company. Growth is integral to 
the company`s strategic direction going forward, not only in terms of ounces,   
but also in the realisation of value. There are essentially three areas of      
* Organic growth from existing operations, namely Impala, Marula, Afplats, Two  
Rivers, Mimosa and Zimplats.                                                    
* Future sources of production.                                                 
* The recycling market which will grow significantly in coming years.           
Ongoing strong market conditions, coupled with our developing growth and        
resource profile and strategic acquisition policy will ensure continued strong  
performance from the group.                                                     
Fred Roux            David Brown                                                
Chairman             Chief Executive Officer                                    
30 August 2007                                                                  
DECLARATION OF FINAL DIVIDEND                                                   
A final dividend of 700 cents per share has been declared in respect of the year
ended 30 June 2007. The last day to trade ("cum" the dividend) in order to      
participate in the dividend will be Friday, 14 September 2007. The share will   
commence trading "ex" the dividend from the commencement of business on Monday, 
17 September 2007 and the record date will be Friday, 21 September 2007.        
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 19 September 2007 or on the first day         
thereafter on which a rate of exchange is available.                            
The dividend will be paid on Tuesday, 25 September 2007. Share certificates may 
not be dematerialised/rematerialised during the period 17 September 2007 to 21  
September 2007, both dates inclusive.                                           
By order of the board                                                           
R Mahadevey                                                                     
Group Secretary                                                                 
30 August 2007                                                                  
CORPORATE INFORMATION                                                           
Registered Office                                                               
2 Fricker Road, Illovo 2196                                                     
(Private Bag X18, Northlands 2116)                                              
Transfer Secretaries                                                            
South Africa:                                                                   
Computershare Investor Services 2004 (Pty) Limited                              
70 Marshall Street, Johannesburg 2001 (PO Box 61051, Marshalltown 2107)         
United Kingdom:                                                                 
Computershare Investor Services PLC                                             
The Pavilons, Bridgwater Road, Bristol, B513 8AE                                
FJP Roux (Chairman), DH Brown (Chief Executive Officer), S Bessit, D Earp, F    
Jakoet, JM McMahon*, MV Mennell, TV Mokgatlha, K Mokhele, NDB Orleyn, LJ Paton, 
DS Phiri, JV Roberts, LC van Vught.  *British                                   
A copy of the annual report is available on the company`s website:                                                             
Alternatively please contact the Company Secretary, via e-mail at       or by post at Private Bag X18, Northlands 2116,     
South Africa. Telephone: (011) 731 9000                                         
30 August 2007                                                                  
Sponsor to Implats:                                                             
Deutsche Securities (SA)(Proprietary) Limited                                   
Date: 30/08/2007 08:00:04 Produced by the JSE SENS Department.                  
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