IMP - Implats - Consolidated interim results for t14 Feb 2008
IMP - Implats - Consolidated interim results for the six months ended 31        
December 2007                                                                   
Impala Platinum Holdings Limited                                                
(Incorporated in the Republic of South Africa)                                  
Registration No. 1957/001979/06                                                 
ISIN: ZAE000083648                                                              
Issuer Code: IMPO                                                               
JSE Share Code: IMP                                                             
LSE Share Code: IPLA                                                            
ADR Code: IMPUY                                                                 
("Implats" or "the company")                                                    
Consolidated Interim Results for the six months ended 31 December 2007          
Key features                                                                    
Group safety performance still unsatisfactory                                   
Record refined platinum production of 1.03 million ounces                       
Costs well contained in current operating environment                           
Gross margin at 46.7%                                                           
Record half year earnings of R4.66 billion                                      
Interim dividend of R3.00 per share                                             
Income statement                                                                
                          Six          Six                 Year to              
                          months to    months to                                
(all amounts in            31 December  31 December         30 June             
Rand million               2007         2006        %       2007                
unless otherwise stated)   (Unaudited)  (Unaudited) change  (Audited)           
Sales                      16,323       14,860      10      31,481              
On-mine operations         (3,395)      (2,807)     (21)    (5,901)             
Concentrating and smelting (722)        (635)       (14)    (1,316)             
Refining operations        (315)        (308)       (2)     (594)               
Amortisation of operating  (451)        (383)       (18)    (865)               
Metals purchased           (4,458)      (4,866)     8       (9,369)             
Increase in metal          644          1,138       (43)    1,035               
Cost of sales              (8,697)      (7,861)     (11)    (17,010)            
Gross profit               7,626        6,999       9       14,471              
Net foreign exchange       (220)        17             -    (16)                
transaction (losses)/gains                                                      
Other operating expenses   (207)        (219)       5       (476)               
Other expenses             (34)         (42)        19      (214)               
Share of profit of         281          132         113     388                 
Royalty expense            (314)        (826)       62      (1,703)             
BEE compensation charge       -            -           -    (1,790)             
Net income before interest  7,132        6,061       18     10,660              
and tax                                                                         
Interest and other income  286          256         12      642                 
Finance costs              (82)         (50)        (64)    (82)                
Profit before tax          7,336        6,267       17      11,220              
Income tax expense         (2,646)      (1,877)     (41)    (3,895)             
Profit for the period      4,690        4,390       7       7,325               
Profit attributable to:                                                         
Equity holders of the      4,660        4,344       7       7,232               
Minority interest          30           46          (35)    93                  
                          4,690        4,390       7       7,325                
Earnings per share                                                              
(expressed in cents per                                                         
- basic                    771          823         (6)     1,312               
- diluted                  770          820         (6)     1,272               
Balance sheet                                                                   
As at        As at          As at                 
                              31 December  31 December    30 June               
(all amounts in Rand million   2007         2006           2007                 
unless otherwise stated)       (Unaudited)  (Unaudited)1   (Audited)            
Property, plant, equipment,    22,212       13,378         20,347               
exploration and evaluation                                                      
Intangible assets               1,018         -            1,020                
Investments                    3,327        2,517          3,096                
Other non-current assets       12,587       636            12,739               
Current assets                 12,467       12,766         12,758               
Total assets                   51,611       29,297         49,960               
EQUITY AND LIABILITIES                                                          
Capital and reserves           33,479       17,114         32,968               
attributable to the equity                                                      
holders of the company                                                          
Minority interest              1,748        255            1,730                
Total equity                   35,227       17,369         34,698               
Provision for long-term        1,011        532            889                  
Borrowings                     857          621            685                  
Deferred income taxation       5,512        3,140          5,048                
Current liabilities            9,004        7,635          8,640                
Total liabilities              16,384       11,928         15,262               
Total equity and liabilities   51,611       29,297         49,960               
Cash flow statement                                                             
Six months to  Six months to   Year to               
                           31 December    31 December     30 June               
(all amounts in Rand        2007           2006            2007                 
unless otherwise stated)    (Unaudited)    (Unaudited)1    (Audited)            
Net cash from operating     3,494          4,422           9,973                
Net cash used in investing  (1,906)        (1,122)         (18,428)             
Net cash (used in)/from     (2,511)        (1,007)         9,824                
financing activities                                                            
Net (decrease)/increase in  (923)          2,293           1,369                
cash and cash equivalents                                                       
Cash and cash equivalents   3,218          1,864           1,864                
at beginning of the period                                                      
Effects of exchange rate    (32)           (15)            (15)                 
changes on monetary assets                                                      
Cash and cash equivalents   2,263          4,142           3,218                
at end of period                                                                
Statement of changes in shareholders` equity                                    
(all amounts in Rand million unless otherwise stated)                           
            Attributable to equity                                              
            holders of the company                                              
            Share    Other     Retained          Minority  Total                
capital  reserves  earnings Total    interest  equity               
Balance at   476      383       16,255   17,114   255       17,369              
31 December                                                                     
Fair value                                                                      
gains, net                                                                      
of tax:                                                                         
- Available-          282                282                282                 
Currency              11                 11                 11                  
net of tax                                                                      
Net income            293                293                293                 
directly in                                                                     
Profit for                      2,888    2,888    48        2,936               
the half                                                                        
Total                 293       2,888    3,181    48        3,229               
income for                                                                      
the half                                                                        
share option                                                                    
- Proceeds   62                          62                62                   
from shares                                                                     
- Fair value 16                          16                16                   
of employee                                                                     
Issue of     12,465                      12,465            12,465               
shares to                                                                       
the Royal                                                                       
Nation (net                                                                     
of cost)                                                                        
Interim                        (1,660)   (1,660)           (1,660)              
relating to                                                                     
charge from                                                                     
issued to                                                                       
the Royal                                                                       
 Nation     1,790                       1,790             1,790                 
Acquisition                                       1,427    1,427                
of a                                                                            
            14,333            (1,660)   12,673   1,427    14,100                
Balance at   14,809   676      17,483    32,968   1,730    34,698               
30 June 2007                                                                    
Fair value                                                                      
gains, net                                                                      
of tax:                                                                         
- Available-          103                103               103                  
Currency              (50)               (50)     (12)     (62)                 
net of tax                                                                      
Net income            53                 53       (12)     41                   
directly in                                                                     
Profit for                     4,660     4,660    30       4,690                
the half                                                                        
Total                 53       4,660     4,713    18       4,731                
income for                                                                      
the half                                                                        
share option                                                                    
- Proceeds   25                          25                25                   
from shares                                                                     
- Fair value 3                           3                 3                    
of employee                                                                     
Final                          (4,230)   (4,230)           (4,230)              
relating to                                                                     
28                (4,230)   (4,202)           (4,202)               
Balance at   14,837   729      17,913    33,479   1,748    35,227               
31 December                                                                     
Segment information                                                             
Summary of business segments:                                                   
(all amounts in Rand million unless otherwise stated)                           
              Six months to      Six months to     Year to                      
31 December 2007   31 December       30 June 2007                 
              Sales     Profit  Sales     Profit  Sales      Profit             
Mining segment                                                                  
Impala         15,735    3,435   14,115    3,113   29,814     4,194             
Marula         720       125     583       85      1,213      310               
Afplats                  (20)                                 (9)               
Zimplats       688       218     765       298     1,697      560               
Mimosa         387       175     404       267     843        523               
Total mining   17,530    3,933   15,867    3,763   33,567     5,578             
Refining       6,740     427     5,791     485     13,649     1,313             
Investment and           300               96                 341               
other segment                                                                   
Inter segment  (7,947)   -       (6,798)   -       (15,735)   -                 
Total          16,323    4,660   14,860    4,344   31,481     7,232             
1. Restated for IFRIC 4                                                         
The interim financial statements have been prepared using accounting            
policies consistent with those as described in the annual financial             
statements for the year ended 30 June 2007 with the exception of those          
listed below and have been prepared in accordance with IAS 34 Interim           
Financial Reporting. This interim financial report should be read in            
conjunction with the annual financial statements for the year ended 30 June     
CHANGES IN ACCOUNTING POLICIES                                                  
The following standards, amendments to standards and interpretations were       
adopted as from 1 July 2007:                                                    
IFRS 7: Financial Instruments: Disclosures and the Amendment to IAS 1           
Presentation of Financial Statements: Capital Disclosures (effective 1          
January 2007) require extensive disclosures about the significance of           
financial instruments for an entity`s financial position and performance,       
and qualitative and quantitative disclosures on the nature and extent of        
risks. The adoption of this accounting statement had no material impact on      
the results of the group or disclosure in this interim report.                  
                           Six months to  Six months to   Year to               
                           31 December    31 December     30 June               
2007           2006            2007                  
                           (Unaudited)    (Unaudited)1    (Audited)             
HEADLINE EARNINGS PER                                                           
- basic (expressed in       771            823             1,312                
cents per share)                                                                
- diluted (expressed in     770            820             1,272                
cents per share)                                                                
Headline earnings per                                                           
share is calculated on                                                          
profit attributable to                                                          
equity holders of the                                                           
company without                                                                 
adjustments (2006: no                                                           
NORMALISED HEADLINE         711            823             1,636                
EARNINGS PER SHARE                                                              
                           Six months to  Six months to   Year to               
(All amounts in Rand        31 December    31 December     30 June              
millions unless             2007           2006            2007                 
otherwise stated)           (Unaudited)    (Unaudited)1    (Audited)            
PROPERTY, PLANT,                                                                
EQUIPMENT, EXPLORATION AND                                                      
EVALUATION ASSETS                                                               
Opening net book amount     20,347         12,434          12,435               
 Additions                 2,403          1,356           2,887                 
 Disposals                 (8)            (11)            (4)                   
 Acquisition of a           -              -              5,919                 
 Exchange adjustment on    (87)           (35)            (23)                  
translation of foreign                                                          
subsidiaries and joint                                                          
 Depreciation,             (443)          (366)           (867)                 
amortisation and other                                                          
Closing net book amount     22,212         13,378          20,347               
Capital expenditure                                                             
approved at 31 December                                                         
2007 amounted to R14.2                                                          
billion (2006: R11.5                                                            
billion), of which R4.1                                                         
billion (2006: R2.2                                                             
billion) is already                                                             
committed. This                                                                 
expenditure will be funded                                                      
internally and if                                                               
necessary, from                                                                 
The purchase price                                                              
allocation will be                                                              
finalised in this                                                               
financial year, subject to                                                      
an independent review of                                                        
resources, following this                                                       
acquisition in the 2007                                                         
financial year.                                                                 
CONTINGENT LIABILITIES AND                                                      
Most significant                                                                
Related party:                                                                  
 Two Rivers Platinum       301            331             293                   
(Proprietary) Limited                                                           
Department of Minerals and  332            297             325                  
Energy (DME)                                                                    
Housing project             47               -               -                  
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                                                         
Zimbabwe Platinum Mines                                                         
(Private) Limited is                                                            
disputing the Zimbabwe                                                          
Revenue Authority`s                                                             
(ZIMRA) contention that an                                                      
amendment to the Value                                                          
Added Tax Act effective                                                         
from 1 January 2006 gives                                                       
it the authority to                                                             
collect value added tax                                                         
charged on foreign                                                              
contractors` service fees                                                       
in foreign currency and to                                                      
refund such value added                                                         
tax in Zimbabwe dollars.                                                        
The amount demanded by                                                          
ZIMRA for the period                                                            
January 2006 to October                                                         
2007 totals US$12.9                                                             
million of which the                                                            
equivalent of only                                                              
US$13,000 would be                                                              
refunded in Zimbabwe                                                            
dollars due to exchange                                                         
rate distortions currently                                                      
prevailing in the Zimbabwe                                                      
RELATED PARTY TRANSACTIONS                                                      
The following transactions                                                      
were carried out with                                                           
related parties:                                                                
 Sales of goods and        5              14              5                     
services to associates                                                          
 Purchases of goods and    3,110          3,166           5,193                 
services from associates                                                        
 Payables arising from     1,539          1,837           1,513                 
sales/purchases of                                                              
Loans to related parties  935            549             177                   
 Key management            41             39              111                   
Borrowings consist of a term loan from Standard Bank Limited amounting to       
R420 million (2006: R401 million), which carries interest at the                
Johannesburg Interbank Acceptance Rate (JIBAR) plus 90 basis points and a       
revolving credit facility amounting to R73 million (2006: R56 million),         
which carries interest at JIBAR plus 100 basis points. The loans are            
repayable over 7.5 years.                                                       
A Standard Bank Limited debt facility of $80 million has been obtained to       
partly finance the Ngezi Phase 2 Project. Each drawdown is repayable in         
twelve quarterly instalments commencing 24 months after drawdown. The loan      
interest is LIBOR plus 700 basis points. A political risk and commercial        
guarantee in favour of the bank for the facility made available to Zimbabwe     
Platinum Mines (Private) Limited was provided by Impala Platinum Holdings       
Limited. At 31 December 2007 the drawdown amounted to $20 million.              
Current liabilities include various short term bank borrowings amounting to     
R1.61 billion (2006: nil). These borrowing facilities carry interest at 12%     
per annum.                                                                      
The royalty expense in the income statement includes an amount of R181          
million (2006: R5 million) which relates to the amortisation of the royalty     
prepayment resulting from the Royal Bafokeng Nation (RBN) transaction. The      
royalty is amortised using the units of production method. The balance of       
R11.9 billion (2006: R54 million) is carried on the balance sheet under         
other non-current assets.                                                       
Interim dividend no 80 of 300 cents per share, amounting to R1.8 billion,       
was approved by the board of directors on 14 February 2008; Secondary Tax on    
Companies on this dividend will amount to R181 million.                         
1. Restated for IFRIC 4                                                         
Operating Statistics                                                            
                         Six          Six                   Year to             
                         months to    months to                                 
                         31 December  31 December %         30 June             
2007         2006        change    2007                
Platinum      (000oz)     1,031        1,018       1         2,026              
Palladium     (000oz)     573          554         3         1,114              
Rhodium       (000oz)     133          118         13        247                
Nickel        (000t)      8            8           -         16                 
IRS metal                                                                       
Platinum      (000oz)     112          93          20        262                
Palladium     (000oz)     103          81          27        191                
Rhodium       (000oz)     23           18          28        47                 
Nickel        (000t)      1            1           -         1                  
Platinum      (000oz)     896          909         (1)       1,827              
Palladium     (000oz)     466          422         10        870                
Rhodium       (000oz)     106          108         (2)       206                
Nickel        (000t)      6            8           (25)      16                 
Platinum      ($/oz)      1,352        1,164       16        1,185              
Palladium     ($/oz)      355          320         11        334                
Rhodium       ($/oz)      6,063        4,664       30        5,152              
Nickel        ($/t)       32,228       28,526      13        34,486             
Average rate  (R/$)       6.91         7.25        (5)       7.20               
Closing rate  (R/$)       6.79         7.04        (4)       7.06               
for the                                                                         
Revenue per   ($/oz)      2,622        2,234       17        2,369              
ounce sold                                                                      
             (R/oz)      18,118       16,197      12        17,057              
Tonnes        (000t)      10,855       10,714      1         20,732             
milled ex-                                                                      
PGM refined   (000oz)     1,979        1,915       3         3,858              
Capital       (Rm)        2,403        1,356       77        2,887              
Group unit                                                                      
cost per                                                                        
Excluding     ($/oz)      914          777         (18)      822                
share based                                                                     
             (R/oz)      6,340        5,627       (13)      5,921               
Including     ($/oz)      970          819         (18)      886                
share based                                                                     
             (R/oz)      6,722        5,933       (13)      6,370               
(relating to                                                                    
Ordinary      (cps)       300          275         9         975                
Weighted      (millions)  604.2        527.9       14        551.4              
number of                                                                       
shares in                                                                       
Number of     (millions)  604.5        538.2       12        604.1              
shares in                                                                       
outside the                                                                     
Net asset     (cps)       5,539        3,242       71        5,519              
value per                                                                       
Additional statistical information is available on the company`s internet       
Market review                                                                   
The platinum market registered a considerable deficit during 2007 due to a      
combination of falling SA supply and strong demand underpinned by another       
increase in diesel vehicle penetration within the automotive industry. While    
jewellery demand declined, it proved remarkably resilient particularly in       
the light of the higher prices, with Chinese consumption at similar levels      
to the previous year. The price moved up by 35% during the course of 2007 as    
a result of the tight market conditions and aided by the positive sentiment     
towards commodities in general, and a weaker US Dollar. Exchange Traded         
Funds have become a contributor to this already tight market.                   
The palladium market was characterised once again by a significant surplus      
due to Russian destocking. The automotive sector continues to be the main       
driver for demand due to growth in non-Western regions. Jewellery demand        
declined once again as a result of falling consumption in China where the       
white metal appears to have lost some of its allure. Despite large above        
ground stocks the price improved on the back of sentiment enjoyed by other      
commodities, and averaged some 10% higher than the prior year.                  
The rhodium market registered a second year of deficit in 2007 as continued     
strong demand from the automotive industry, supported by ongoing growth from    
the glass industry outpaced supply as was the case with platinum. The impact    
of this on a thin market was a surge in the price, approaching $7,000 in the    
last quarter.                                                                   
Review of operations                                                            
Safety is still of paramount importance to the group. Despite the lost time     
injury frequency rate (LTIFR) having improved by 13% compared to the            
financial year ended 30 June 2007, there were regrettably eight fatal           
incidents throughout the group. The Implats Board and management extend         
their condolences to the families and friends of the deceased and reaffirm      
its commitment to eliminating injuries at work. There is a need to drive        
continuous improvement in this area and we welcome the initiatives by           
government to ensure safer work environments.                                   
Production by the group was up 1.4% period on period for the six months         
ended December 2007 to a record of 1.03 million ounces of platinum due to a     
combination of improved production at Impala Rustenburg and the ongoing ramp-   
ups at our other operations. The deduction in ounces received from third        
parties serves to highlight the excellent production performance of the         
group`s operations.                                                             
Group unit costs per platinum ounce were contained to an increase of 12.7%      
(excluding share based payments) on the back of volume growth off-set by the    
reduction in ounces from Zimplats due to a metal lock-up during the smelter     
rebuild and non-repeat of Lonmin ounces.                                        
Impala Platinum Limited (Impala Platinum) - 100%                                
Despite a 13% improvement on FY07 in the LTIFR to 3.63 per million man          
hours, safety performance was unsatisfactory during the period with four        
fatalities. The fall of ground safety intervention initiative is a key          
aspect of our safety programme, as well as visible felt leadership in the       
Platinum production was up 5.6% to 575,700 ounces on the back of improved       
grade and the replacement of opencast tonnes with underground UG2 in the mix    
as the interventions continue to bear fruit. Tonnes milled at 8,542 million     
were virtually the same as in the comparable financial period.                  
The action plan communicated to the market to address the issue of the          
decline in headgrade focused on people and a back-to-basics mining plan to      
reduce mining dilution parameters. Overall grade for the period of 3.90 g/t     
was 2.1% up on the six months ended 31 December 2006 when a figure of 3.82      
g/t was achieved.                                                               
The unit cost per platinum ounce was 10.7% higher at R5,919 (exclusive of       
share-based payments). Costs were contained as a result of higher platinum      
production off-set by costs associated with the retention of skills and         
revised incentive schemes.                                                      
The refining operation continued to excel with gross refined PGM production     
up by 3.4% to 1.98 million ounces.                                              
Development at 16 and 20 shafts is progressing well. Shaft sinking at 16        
shaft is ongoing and station development is underway. At 20 shaft, where        
sinking is completed, shaft equipping and level development has commenced.      
The expansion of processing capacity has been completed, while the upgrades     
of the smelter, BMR and PMR are on schedule. The board approved the             
development of 17 shaft.                                                        
Marula Platinum (Proprietary) Limited (Marula) - 77.5%                          
Safety performance was poor with three fatalities occurring during the          
period. The LTIFR improved to 1.52 during the first six months from 1.63 per    
million man hours in FY07.                                                      
Tonnes milled improved by 3.0% to 761,000, with platinum in concentrate         
production up 7.5% to 35,700 ounces. Despite this improvement performance is    
below expectation mainly due to labour related issues. Unit costs excluding     
share based payments increased by 9.4% to R9,008 per platinum ounce, period     
on period.                                                                      
The implementation of the new mining plan is behind schedule but the decline    
has been completed and the development of infrastructure is underway. Full      
production of 136,000 ounces of platinum in concentrate per annum is now        
scheduled for the 2010 financial year. The feasibility study of the Merensky    
project is nearing completion.                                                  
Zimbabwe Platinum Mines Limited (Zimplats) - 86.9%                              
The safety performance was disappointing with one fatality during December.     
The LTIFR deteriorated to 1.24 from 0.28 per million man hours in FY07.         
Tonnes milled were up 7.1% to 1,105,000. However, production of platinum in     
matte was down 11.5% to 40,800 ounces due to the planned maintenance of the     
furnace. The subsequent build-up in matte will be delivered in the third        
quarter of the financial year. Unit costs per platinum ounce in matte           
increased by 28.7% in rand terms (34.3% in US$ terms) mainly due to the         
decreased production during the period.                                         
The expansion project is well underway and remains on track to increase         
production to 160,000 ounces of platinum per annum by 2010. Work on the two     
new underground mines, Portals 1 and 4, is progressing satisfactorily with      
Portal 1 already in production and in ramp up phase.                            
The Zimbabwean parliament passed that country`s local ownership bill during     
late September. The bill, seeking 51% indigenous ownership of foreign-owned     
firms, has not yet been signed into law. Both Implats and Zimplats support      
the concept of indigenisation and have planned for this eventuality with        
agreements in place ensuring indigenisation credits of around 29.25%.           
Further credits should be obtained through infrastructure and social            
Mimosa Platinum (Private) Limited (Mimosa) - 50%                                
Safety improved at Mimosa with the LTIFR at 0.56 per million man hours          
compared to 1.74 in FY07.                                                       
Tonnes milled were up 7.4% to 895,000 tonnes, resulting in an increase of       
3.1% in platinum production to 39,600 ounces of platinum in concentrate.        
Unit costs per platinum ounce in concentrate increased by 13.9% in rand         
terms (19.0% in US$ terms).                                                     
The concentrator capacity expansion project is currently being commissioned     
and will result in a production increase to 100,000 ounces of platinum in       
concentrate per annum by early FY09.                                            
Impala Refining Services Limited (IRS) - 100%                                   
Production at IRS declined by 3.5% to 455,800 ounces of platinum. Growth in     
deliveries from Implats` operations was off-set by the lack in the current      
six months of the once-off Lonmin ounces treated in the previous comparable     
Two Rivers Platinum (Proprietary) Limited (Two Rivers) - 45%                    
The joint venture between Implats and African Rainbow Minerals Limited is       
currently in ramp up phase and contributed R116 million to group profits.       
Full production of 120,000 ounces of platinum in concentrate has been           
delayed due to labour issues and localised geological conditions and is only    
expected to be reached by FY2009. Development of the North decline that         
replaces the proposed opencast is ahead of schedule.                            
Aquarius Platinum (South Africa) (Proprietary) Limited (AQPSA) - 20%            
AQPSA contributed R167 million to earnings for the period under review          
compared to R132 million for the comparable period. Their operations            
performed adequately in a difficult operating environment.                      
Afplats (Leeuwkop) - 74%                                                        
The commencement of development on the Leeuwkop project is still awaiting       
approval of the mining permit from the DME. The final feasibility study will    
be completed during the course of this year. Early indications are that the     
orebody is more suited to a conventional rather than a mechanised mining        
method. Securing electric power for production remains outstanding.             
Exploration activities continue in Canada, Botswana, Mozambique, Madagascar     
and Greenland.                                                                  
Financial review                                                                
The interim period of the 2008 financial year was characterised by continued    
growth in headline earnings, principally as a result of higher US dollar        
metal prices, partially offset by a stronger rand. Margins were maintained      
across the group with the gross margin at 46.7%. An increase of 7.3% for        
headline earnings resulted in record six month earnings of R4.66 billion.       
Headline and basic earnings per share decreased by 6.3% to 771 cents as a       
result of the additional shares issued to the RBN for the royalty to equity     
conversion in 2007.                                                             
Sales for the period ending December 2007 increased by 9.8% to R16.32           
billion (US$2.36 billion) from R14.86 billion (US$2.05 billion) for the six-    
month period ending December 2006. The variance analysis of the sales           
increase was as follows:                                                        
-  metal prices of platinum, palladium, rhodium and nickel strengthened in      
both rand and dollar terms, exceeding expectations; with PGM prices and         
especially that of platinum reaching record levels, overall dollar prices       
improved by 17.4% contributing to a positive sales variance of R2.87            
-  rand dollar exchange rate strengthened during the period;  the average       
exchange rate was R6.91/$ versus R7.25/$ for the comparable period a year       
ago; this contributed 5.2% to decreased sales value, equivalent to R0.8         
-  volumes down by 4.2%, resulting in a negative sales variance of R627         
Cost of sales was up by 10.6% to R8.69 billion largely as a result of a rise    
in operating costs. The group unit cost per platinum ounce produced was         
12.7% higher at R6,340 per platinum ounce (excluding share-based payments).     
Operating margins (%)                                                           
Entity         Six months to    Six months to                                   
              31 December      31 December                                      
              2007             2006                                             
Impala         61.8             63.2                                            
Marula         46.5             47.0                                            
Zimplats       47.5             53.2                                            
Mimosa         65.7             73.2                                            
IRS            12.6             10.8                                            
Implats group  46.7             47.1                                            
Mine-to-market operations: Net profit at Impala Platinum rose 10.3% to R3.44    
billion. Marula reported a contribution of R125 million which was a             
substantial improvement on the previously reported profit of R85 million.       
The Zimbabwe operations reported lower margins due to a combination of lower    
volumes at Zimplats (smelter maintenance) and operating cost increases at       
IRS, Implats` third-party refining entity, contributed R427 million to group    
net profit, a decrease of 12.0%. Given the lower risks and capital              
requirements of IRS, margins at this entity are appropriately lower than at     
other operations within the group. Margins for the 2008 interim period were     
12.6% compared to the 10.8% of the previous period mainly due to the            
purchase of material previously toll refined for the six months to December     
2006. Sales for the period rose by 16.4% to R6.74 billion despite a 3.5%        
decrease in platinum production through IRS to 455,800 ounces.                  
Equity income from investments came from Implats` holding in Aquarius           
Platinum and Two Rivers. This increased to R281 million largely due to the      
ramp-up of production at Two Rivers.                                            
Net profit attributable to the equity holders of the company rose by 7.3% to    
R4.66 billion mainly as a result of higher rand metal prices.                   
Balance sheet structure and cash flow                                           
The emphasis on maintaining a strong balance sheet continues so as to ensure    
that there is sufficient funding for the group`s planned future capital         
expenditure over the next five years. Cash from operating activities during     
the interim period totaled R3.49 billion. After funding the capital             
expenditure programmes, dividends and investments to 31 December 2007, the      
closing cash position was R2.26 billion. Net debt amounted to R207 million      
at half year end.                                                               
Capital expenditure                                                             
Group capital expenditure for the 2008 interim period totaled R2.40 billion     
compared to R1.36 billion in the previous interim period. The bulk of this      
capital expenditure, R1.53 billion, was spent at Impala Platinum on the         
development of 16 and 20 shafts. The Zimbabwean operations accounted for        
capital expenditure of R671 million, and Marula, R180 million.                  
The Marula conversion was executed in January 2008 and the section 11           
transfer required to complete the transfer of mining rights is expected to      
be granted by the end of March 2008. Impala Platinum Limited (Rustenburg)       
conversion and Afplats (Leeuwkop) mining rights applications are currently      
awaiting approval from the DME.                                                 
South African supply constraints due to electric power and people issues        
coupled with stable to firm automotive demand will result in very tight         
market conditions in 2008 for both platinum and rhodium. While the outlook      
for palladium continues to improve, significant above ground stock sales        
have the potential to be price disruptive.                                      
Fred Roux       David Brown                    Johannesburg                     
Chairman        Chief Executive Officer        14 February 2008                 
Declaration of interim cash dividend                                            
An interim cash dividend of 300 cents per share has been declared in respect    
of the half-year ended 31 December 2007. The last day to trade ("cum" the       
dividend) in order to participate in the dividend will be Friday, 7 March       
2008. The share will commence trading "ex" the dividend from the                
commencement of business on Monday, 10 March 2008 and the record date will      
be Friday, 14 March 2008.                                                       
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 Thursday, 13 March 2008, or on       
the first day thereafter on which a rate of exchange is available.              
The dividend will be paid on Monday, 17 March 2008. Share certificates may      
not be dematerialised/rematerialised during the period Monday, 10 March 2008    
to Friday, 14 March 2008, both dates inclusive.                                 
By order of the Board                                                           
A Parboosing                   Johannesburg                                     
Company Secretary              14 February 2008                                 
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, (P.O. Box 61051, Marshalltown, 2107)                
United Kingdom: Computershare Investor Services PLC                             
The Pavilons, Bridgewater Road, Bristol, BS13 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, 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                                   
14 February 2008                                                                
Sponsor to Implats:                                                             
Deutsche Securities (SA)(Proprietary) Limited                                   
Date: 14/02/2008 08:00:07 Produced by the JSE SENS Department.                  
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