IMP - Implats - Condensed Consolidated Annual Resu27 Aug 2009
IMP - Implats - Condensed Consolidated Annual Results For The Year Ended 30     
June 2009                                                                       
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" or "the group")                                     
A challenging year exacerbated by the economic crisis                           
A tragic accident in July claims nine lives                                     
Key features                                                                    
Disappointing safety performance                                                
Revenues decline by 31%                                                         
Headline earnings per share decrease 52%                                        
Lower production                                                                
Cost increases by 32%                                                           
Capex at R6.9 billion                                                           
Cash preservation remains paramount                                             
Consistently returning dividends to shareholders                                
Income statement (Audited)                                                      
For the      For the                  
                                          Year ended   Year ended               
                                          30 June      30 June                  
(R millions)                       Notes   2009         2008                    
Revenue                                     26 121       37 619                 
Cost of sales                               (16 359)     (19 888)               
Gross profit                                9 762        17 731                 
Other operating expenses                    (497)        (533)                  
Royalty expense                             (442)        (648)                  
Profit from operations                      8 823        16 550                 
Finance income                              963          689                    
Finance cost                                (169)        (155)                  
Net foreign exchange transaction            (211)        439                    
Other expenses                              (54)         (215)                  
Profit on sale of investments                -           4 831                  
Share of profit of associates               41           678                    
Profit before tax                           9 393        22 817                 
Income tax expense                          (3 389)      (5 112)                
Profit for the year                        6 004        17 705                  
Profit attributable to:                                                         
Owners of the parent                       6 020        17 596                  
Non-controlling interest                    (16)        109                     
                                          6 004        17 705                   
Earnings per share (expressed in                                                
cents per share - cps)                                                          
Basic                                      1 001        2 910                   
Diluted                                    1 000        2 907                   
Dividends to group shareholders    8                                            
Interim dividend (paid)                    120          300                     
Final dividend (declared)                  200          1 175                   
Dividends per share                        320          1 475                   
Statement of financial position (Audited)                                       
                                               As at      As at                 
                                                30 June   30 June               
(R millions)                            Notes   2009       2008                 
Non-current assets                                                              
Property, plant and equipment           5       26 224     20 601               
Exploration and evaluation assets       5       4 294      4 294                
Intangible assets                       5       1 018      1 018                
Investments, receivables and                    14 644     13 692               
Current assets                                  11 500     22 504               
Total assets                                    57 680     62 109               
Equity and liabilities                                                          
Equity attributable to owners of the            40 939     43 418               
Non-controlling interest                        1 864      1 885                
Total equity                                    42 803     45 303               
Long-term borrowings                    7       1 778      1 464                
Deferred tax liability                          6 909      5 247                
Long-term provisions                            1 098      1 548                
Current liabilities                             5 092      8 547                
Total equity and liabilities                    57 680     62 109               
Segmental analysis (Audited)                                                    
                       2009                   2008                              
(R millions)            Sales     Profit      Sales      Profit                 
Mining segment                                                                  
Impala                  15 250    5 346       20 889     8 522                  
Marula                  631       (333)       1 827      755                    
Zimplats                1 099     (229)       2 132      819                    
Mimosa                  631       (140)       958        517                    
Afplats                  -        (93)                   161                    
Total mining segment    17 611    4 551       25 806     10 774                 
Refining Services       10 507    1 375       15 704     1 700                  
Other                    -        (786)        -         5 693                  
Inter segment           (1 997)   864         (3 891)    (462)                  
                       26 121    6 004       37 619     17 705                  
Capital expenditure     Total assets                          
                  2009       2008         2009        2008                      
Mining segment:                                                                 
Impala             4 782      3 415        36 549      38 922                   
Marula             398        345          2 794       1 970                    
Zimplats           1 358      1 319        4 881       3 583                    
Mimosa             277        144          1 295       1 287                    
Afplats            108        145          7 216       7 110                    
Total mining       6 923      5 368        52 735      52 872                   
Refining Services                          3 777       8 053                    
Other                                      1 168       1 184                    
                  6 923      5 368        57 680      62 109                    
Headline earnings per share (Audited)                                           
                                       For the      For the                     
                                       Year ended   Year ended                  
                                        30 June     30 June                     
(R millions)                            2009         2008                       
Profit attributable to owners of the     6 020        17 596                    
Adjustments net of tax:                                                         
Profit on disposal of property, plant    (5)          (4)                       
and equipment                                                                   
Impairment of Zimplats Base Metal       -             74                        
Profit on the sale of investment        -             (5 181)                   
Headline earnings                        6 015        12 485                    
Headline earnings per share              1 001        2 065                     
Weighted average number of ordinary     601.12       604.65                     
shares in issue (millions)                                                      
Cash flow statement (Audited)                                                   
                                       For the      For the                     
                                       Year ended   Year ended                  
30 June      30 June                     
(R millions)                            2009         2008                       
Cash flows from operating activities     6 507        11 241                    
Cash flows (used in)/from investing      (5 726)      1 279                     
Cash flows used in financing activities  (7 940)      (5 455)                   
Net (decrease)/increase in cash and      (7 159)      7 065                     
cash equivalents                                                                
Cash and cash equivalents at beginning   10 393       3 218                     
of year                                                                         
Effects of exchange rate changes on      114          110                       
monetary assets                                                                 
Cash and cash equivalents at end of      3 348        10 393                    
Statement of changes in equity (Audited)                                        
capital and                  Other           
                                   share          Retained      components      
(R millions)                        premium        earnings      of equity      
Balance at 30 June 2007              14 809         17 483        676           
Movements                            (59)           17 596        (1 032)       
Dividends                                           (6 055)                     
Balance at 30 June 2008              14 750         29 024        (356)         
Movements                            (681)         6 020         4              
Dividends                                           (7 822)                     
Balance at 30 June 2009              14 069         27 222        (352)         
                                   to owners       Non-                         
of the          controlling      Total       
(R millions)                        parent          interest         equity     
Balance at 30 June 2007              32 968          1 730            34 698    
Movements                            16 505          155              16 660    
Dividends                            (6 055)                          (6 055)   
Balance at 30 June 2008              43 418          1 885            45 303    
Movements                           5 343            (21)            5 322      
Dividends                            (7 822)                          (7 822)   
Balance at 30 June 2009              40 939          1 864            42 803    
Statement of total comprehensive income (Audited)                               
                                   Fair value      Translation                  
                                   adjustments     of foreign                   
(R millions)                        investments     subsidiaries    Total       
30 June 2008                                                                    
Profit for the year                                                             
Fair value adjustment                577                             577        
Disposal of available-for-sale       (1 890)                         (1 890)    
financial asset                                                                 
Currency translation reserve                         327             327        
Total comprehensive income for the   (1 313)         327             (986)      
30 June 2009                                                                    
Profit for the year                                                             
Fair value adjustment                (38)                            (38)       
Currency translation reserve                         37              37         
Total comprehensive income for the   (38)            37              (1)        
(R millions)                                   earnings           Total         
30 June 2008                                                                    
Profit for the year                             17 705             17 705       
Fair value adjustment                                              577          
Disposal of available-for-sale financial                           (1 890)      
Currency translation reserve                                       327          
Total comprehensive income for the year         17 705             16 719       
30 June 2009                                                                    
Profit for the year                             6 004              6 004        
Fair value adjustment                                              (38)         
Currency translation reserve                                       37           
Total comprehensive income for the year         6 004              6 003        
Notes (Audited)                                                                 
1  General information                                                          
The company is a limited liability company incorporated and domiciled in South  
Africa. The address of its registered office is 2 Fricker Road, Illovo, 2196.   
The Company has its primary listing on the JSE Limited. The consolidated        
annual financial results were approved for issue on 27 August 2009.             
2 Basis of preparation                                                          
The consolidated financial statements have been prepared in accordance with     
International Financial Reporting Standards (IFRS) and IAS 34 Interim           
Financial Reporting, 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).                                                                   
3 Accounting policies                                                           
The consolidated financial statements have been prepared under the historical   
cost convention except for the following:                                       
Revaluation of available-for-sale financial investments and certain financial   
assets and financial liabilities are at fair value, derivative financial        
instruments and liabilities for cash-settled share-based payment arrangements   
are based on fair value.                                                        
The principal accounting policies used by the group are consistent with those   
of the previous year, except for the adoption of various revised and new        
standards as fully described in the annual report available on the company`s    
website. The adoption of these standards had no material impact on the          
financial results for this financial year.                                      
4 Audit opinion                                                                 
The financial statements have been audited by PricewaterhouseCoopers Inc.       
whose unqualified opinion is available for inspection at the registered office  
of Implats.                                                                     
5 Property, plant and equipment                                                 
Property,    Exploration                               
                         plant and    and evaluation   Intangible               
(R millions)              equipment    assets           assets                  
Opening net book amount   16 029       4 294            1 018                   
as at 30 June 2007                                                              
Additions                 5 368                                                 
Disposals                 (43)                                                  
Exchange adjustment on    344                                                   
Depreciation,             (1 097)                                               
amortisation and other                                                          
Closing net book amount   20 601       4 294            1 018                   
as at 30 June 2008                                                              
Additions                 6 923                                                 
Disposals                 (44)                                                  
Exchange adjustment on    (277)                                                 
Depreciation,             (979)                                                 
amortisation and other                                                          
Closing net book amount   26 224       4 294            1 018                   
as at 30 June 2009                                                              
6 Capital commitments and derivative exposure                                   
Capital expenditure approved at 30 June 2009 amounted to R22.1 billion (June    
2008: R20.6 billion), of which R2.9 billion (June 2008: R3.9 billion) is        
already committed. This expenditure will be funded internally and if            
necessary, from borrowings. With regards to derivative instruments, the group,  
from time to time, sells refined metal on behalf of third parties, into the     
market with a commitment to repurchase the metal at a later date. The net fair  
value of the commitments as at 30 June 2009 amounted to R38 million (2008:      
R318 million).                                                                  
7 Long-term borrowings                                                          
Borrowings from Standard Bank of South Africa Limited:                          
Loans obtained by BEE partners for purchasing a 27% share in Marula Platinum    
(Proprietary) Limited amounting to R710 million (2008: R755 million). The loan  
carries interest at JIBAR plus 130 (2008: 90) basis points and a revolving      
credit facility amounting to R107 million (2008: R57 million), which carries    
interest at JIBAR plus 145 (2008: 100) basis points. The loans are repayable    
over 6.5 (2008: 7.5) years. The rise in basis points is due to an increase of   
R89 million on the term facility and R55 million on the revolving credit        
A loan facility of R621 million (USD80 million) (2008: R635 million (USD80      
million)) was obtained to partially finance the Ngezi Phase 1 expansion at      
Zimplats. An amount of R588 million (USD76 million) (2008: R404 million (USD51  
million)) of this facility was drawn at the end of the period. The loan         
carries interest at LIBOR plus 700 (2008: 700) basis points. It is repayable    
in 12 equal quarterly instalments starting December 2009 and will be repaid by  
December 2012. The loan is secured by cessions over cash, debtors and revenues  
of Zimbabwe Platinum Mines (Pvt) Limited.                                       
A loan facility of R300 million was obtained to finance the expansion of        
underground mine and related above-ground processing facilities at Zimplats.    
An amount of R261 million of this facility was drawn at the end of the period.  
The loan carries interest at JIBAR plus 700 basis points. It is repayable in    
10 semi-annual instalments starting December 2010 and will be repaid by June    
2015. Zimplats secured additional funding of R200 million in July 2009, which   
increased the total term loan facility to R500 million. The loans are secured   
by sessions over cash, debtors and revenues of Zimbabwe Platinum Mines (Pvt)    
8 Dividends per share                                                           
On 27 August 2009, a sub-committee of the board declared a final cash dividend  
of 200 cents per share amounting to R1.2 billion in respect of financial year   
2009. Secondary Tax on Companies (STC) on the dividend will amount to R120      
(R millions)                                                2009      2008      
Dividends paid                                                                  
Final dividend No. 81 for 2008 of 1 175 (2007: 700) cents   7 110     4 237     
per share                                                                       
Interim dividend No 82 for 2009 of 120 (2008: 300) cents    712       1 818     
per share                                                                       
                                                           7 822     6 055      
9 Guarantees                                                                    
At year end the group had bank and other guarantees of R508 million (2008:      
R542 million).                                                                  
10 Contingencies                                                                
The Zimbabwe Revenue Authority (ZIMRA) has issued an amended assessment to the  
value of R217 million (USD28 million) for additional profits tax on Zimbabwe    
Platinum Mines (Pvt) Ltd. An objection has been lodged on the basis that        
additional profits tax is not payable in terms of an agreement entered into     
with the Zimbabwean government.                                                 
Operating statistics                                                            
(R millions)                                       2009     2008                
Gross refined production                                                        
Platinum                                 (000oz)   1 704    1 907               
Palladium                                (000oz)   1 008    1 044               
Rhodium                                  (000oz)   248      261                 
Nickel                                   (000t)    15       15                  
IRS returned metal                                                              
Platinum                                 (000oz)   194      208                 
Palladium                                (000oz)   181      199                 
Rhodium                                  (000oz)   38       42                  
Nickel                                   (000t)    3        2                   
Group consolidated statistics                                                   
Exchange rate:                           (R/$)                                  
Closing rate on 30 June                            7.76     7.93                
Average rate achieved                              8.63     7.32                
Revenue per platinum ounce sold          ($/oz)    1 995    2 941               
                                        (R/oz)    17 217   21 528               
Prices achieved                                                                 
Platinum                                 ($/oz)    1 219    1 598               
Palladium                                ($/oz)    263      390                 
Rhodium                                  ($/oz)    3 517    6 963               
Nickel                                   ($/t)     12 995   30 253              
Sales volumes                                                                   
Platinum                                 (000oz)   1 503    1 739               
Palladium                                (000oz)   781      885                 
Rhodium                                  (000oz)   180      197                 
Nickel                                   (000t)    14       13                  
Financial ratios                                                                
Gross margin achieved                    (%)       37       47                  
Return on equity                         (%)       14       38                  
Return on total assets                   (%)       10       20                  
Debt to equity                           (%)       4        3                   
Operating indicators                                                            
Tonnes milled                            (000t)    20 083   20 380              
PGM refined production                   (000oz)   3 428    3 644               
Capital expenditure                      (Rm)      6 923    5 368               
Cost per platinum ounce excluding share  (R/oz)    9 129    6 930               
based payments                                                                  
                                        ($/oz)    1 005    954                  
Safety remains the key priority for Implats, and we are committed to achieving  
our vision of Zero Harm. It is regrettable that eleven employees lost their     
lives at work during the financial year. The tragedy involving nine employees   
in a fall-of-ground incident at 14 Shaft in July 2009 was a disappointing blow  
for the group. We extend our sincere condolences to the families and friends    
of all those who died.                                                          
The group`s safety performance did, nevertheless, improve marginally during     
the year. The improvement in the fatality rate (FIFR), however, belies the      
disappointing safety records of both the Rustenburg and Marula operations. The  
Lost Time Injury Frequency Rate (LTIFR) for the group was maintained at 2.92    
per million man-hours worked.                                                   
It is of great concern to the company that safety performance was well below    
the targets set. A number of safety initiatives, developed jointly with our     
Unions, were rolled out during the year. These include:                         
creating and promoting a safety culture within every employee at Implats;       
safety communication using sms-messaging, e-mail, posters and billboards and    
our Safety Health and Environment (SHE) structures;                             
enforcing compliance with our new Platinum Rules; and                           
visible safety leadership using our behaviour-based safety programmes and       
recognition of outstanding safety leaders and achievers in the company.         
Implats welcomes the Department of Mineral Resources` attention to safety and   
applauds all efforts to increase safety in the mining industry. It is only      
through the involvement of all role-players, including government, unions,      
management, employees, employee safety representatives and members of the       
community, that a safer working environment will be created. The realisation    
of our vision of Zero Harm will only be achieved through a collective effort.   
Market Overview                                                                 
The slowdown in the rate of decline of new vehicle sales in developed           
economies, accompanied by the emergence of China as a major player in the       
world vehicle market, is stabilising autocatalyst demand. This is being         
underpinned by strong demand from the Chinese platinum jewellery industry as    
manufacturers restock on the back of renewed consumer appetite at lower price   
levels. Consumption from this sector over the first half of this calendar year  
has more than equalled the consumption during 2008. Other factors, including    
the restocking from Japanese investors following the liquidation of the         
previous year, the increased appeal of platinum ETF`s, the introduction of      
vehicle scrappage incentives in various developed economies and a number of     
primary supply cutbacks, indicate a platinum market that is close to balance    
despite the global recession.                                                   
The significant reduction in new vehicle inventory, coupled with government     
sponsored incentive programmes will stimulate new-vehicle build which in turn   
will be broadly supportive of an economic recovery over the next twelve         
months. Returning industrial interest in platinum, in conjunction with          
positive price movements, is expected to be at the expense of a portion of      
Chinese jewellery demand. We expect the market to move progressively into       
deficit over the medium-term due to improving demand and a lack of investment   
in new capacity which will curtail the growth in supply.                        
A sustainable appreciation in the platinum price is forecast over the medium    
term in line with improved fundamentals. The increase in dollar liquidity       
following quantitative easing measures is expected to be broadly supportive of  
PGM prices. The caveat is that the Rand could be `stronger for longer`.         
The growth in the Chinese vehicle market, supported by a turnaround in the      
North American market, is expected to result in the palladium market moving     
into increasing deficits over the medium term. While the potential for          
significant price appreciation will continue to be capped by above-ground       
Zurich stocks, prices are expected to steadily firm over the upcoming years.    
Rhodium continues to be supported at current price levels by consumer           
restocking following the massive selloff over the latter half of 2008. The      
incentive to thrift has abated at the current price levels and we expect        
tightening emission standards to underpin rhodium demand over the medium term.  
The market remains fully supplied and will continue to be so for the next few   
Financial Review                                                                
The plight of the global economy impacted financial performance and sales for   
the 2009 financial year decreased by 31% to R26.1 billion from R37.6 billion    
in the previous financial year. In dollar terms, sales were 41% lower at $3.0   
billion. This was a result of:                                                  
lower sales volumes - there was a 10% decrease in sales volumes, resulting in   
a negative variance of R3.8 billion;                                            
lower metal prices - significant falls in the price of certain metals, in       
dollar terms were worse than anticipated. Platinum, palladium and rhodium       
prices decreased by 24%, 33% and 49% respectively, dollar revenues per          
platinum ounce sold fell by 32% to $1 995/oz and contributed to a negative      
price variance of R11.7 billion; and                                            
a volatile R/$ exchange rate - The average exchange rate achieved for the       
year was R8.63/$, compared with R7.32/$ for FY2008.This resulted in a positive  
exchange rate variance of R3.9 billion.                                         
Cost of sales                                                                   
Cost of sales decreased by 18% to R16.4 billion from R19.9 billion in FY2008.   
There were several key drivers:                                                 
cost of purchases (net of change in stock) decreased by R3.8 billion, mainly    
due to 20% decrease in rand metal prices and lower volumes; and                 
lower share-based payments changed from a cost of R1 042 million to a credit    
of R717 million. This was due to a fall in share price.                         
These decreases were offset by:                                                 
the cost of labour increased by 14.6%; and                                      
the price of consumables also rose steeply: explosives increased by 23%,        
support 27%, mining contractors 29%, coal 65% and electricity 24%.              
The unit cost per platinum ounce produced rose by 10% to R8 526. Excluding      
share-based payments credit of R717 million, unit cost per platinum ounce       
relating to operating costs increased by 32% to R9 129/oz.                      
Headline earnings                                                               
Headline earnings for the financial year decreased by 52% to 1 001 cents per    
share, from 2 065 cents per share in FY2008, as a result of:                    
an R8.0 billion decline in gross profit; and                                    
the reduction in the share of profit from associates of R637 million is due     
to the sale of AQP(SA) in the previous financial year.                          
This was, however, offset by a decrease in taxation of R1.7 billion because of  
lower taxable income and lower STC resulting from decreased dividends.          
Net cash generated from operating activities amounted to R6.5 billion.          
Net cash used in investing activities is mainly as a result of capital          
expenditure of R6.8 billion.                                                    
Dividend payments totalling R7.8 billion were made during the year.             
The group will continue to fund cash requirements from cash generated from      
operations, and will use its adequate banking facilities to cover any           
The net result of Implats` operating, investing and financing activities was a  
net cash outflow of R7.2 billion. When combined with the opening balance of     
R10.4 billion and the positive translation of R0.1 billion, this resulted in a  
closing cash and cash-equivalent balance of R3.3 billion.                       
Operational Review                                                              
Production and cost performance have been extremely disappointing. Gross        
platinum production for the group declined by 11% to 1.7 million ounces         
impacted by lower output from Impala Rustenburg and IRS, the latter due to      
lower deliveries from third parties.                                            
IMPALA PLATINUM                                                                 
The deterioration in safety performance at Impala Rustenburg, where the number  
of fatalities doubled period-on-period, is unacceptable. Ten employees lost     
their lives in various accidents. The primary cause of the majority of these    
incidents was equipment-related, whilst two were the result of falls of         
ground, the principal cause of fatal incidents in prior years. The focus going  
forward remains on leadership and training. In conjunction with these           
programmes, a communication initiative is being undertaken in order to raise    
safety awareness levels and to engender a safety culture among all employees.   
The quantum of Merensky ore mined declined by 12% to 6.8 million tonnes from    
the previous period, with underground ore sourced from UG2 remaining virtually  
unchanged at 7.8 million tonnes. The decline in Merensky can be attributed to   
a lack of adequate on-reef development on the major Merensky shafts, namely     
11, 12 and 14. This resulted in limited face availability, and consequently a   
lack of mining flexibility. The decline in volumes is also attributed to poor   
operational efficiencies due to the failure to complete the mining cycle,       
which was compounded by safety stoppages and poor discipline.                   
The decline in Merensky tonnage impacted on the ore mix, which increased to     
55:45 in favour of the lower plainum grade UG2, which is characterised by       
lower recoveries. (The overall platinum yield for the UG2 is some 20% less      
than that for the Merensky.) The drop in grade was further exacerbated by       
dilution resulting from increased off-reef mining. As a consequence, refined    
platinum production declined by 9% from 1 044 000 ounces in the previous year   
to 950 000 ounces. The reduced volumes negatively impacted unit costs, which    
rose 31% to R8 559 (excluding share-based payments).                            
The key mining initiatives in FY2010 will focus on on-reef development and the  
timeous delivery of Merensky volumes, particularly at 11, 12 and 14 shafts. In  
order to ensure the requisite mining flexibility, plans are in place to         
increase on-reef development by approximately 30% next year. New supervisory    
structures have been put in place to ensure delivery against these targets. It  
is estimated that it will take 2 years to restore on-reef/off-reef development  
to the correct balance. During this period, grade will continue to be impacted  
by the mix.                                                                     
Marula had a difficult year characterised by an unsatisfactory safety           
performance, a slower-than-expected ramp-up in production, reduced              
productivity and persistent labour issues. This operation has been              
particularly affected by the economic slowdown.                                 
Sadly, one employee lost his life at work during the year, whilst the LTIFR     
deteriorated from the previous year - a disturbing trend requiring serious      
management intervention.                                                        
The 1.57 million tonnes milled, though slightly up on the previous year, was    
well short of the operation`s internal target as the production ramp-up once    
again fell behind schedule. This failure can be attributed to a lack of         
adequate on-reef development, which resulted in a lack of face availability     
and, consequently, limited mining flexibility. Grade fell slightly as           
production from the higher-grade Driekop shaft declined, and on-reef            
development at the Clapham shaft increased. Team efficiencies and productivity  
were of concern, and were impacted by the introduction of new teams to the      
conventional section as well as safety stoppages and industrial action during   
the year. As a consequence, platinum production rose only a disappointing 5%    
to 74 000 ounces in concentrate.                                                
Unit costs rose 30% (excluding share-based payments) on the back of the high    
inflationary environment and lower than expected throughput. Increased volumes  
and higher efficiencies should contain costs going forward.                     
Marula has a difficult year ahead as it focuses on continuing its ramp-up to    
full production and ensuring profitability. The ongoing viability of the        
operation will be continuing not only by higher metal prices and more           
favourable exchange rates, but also by a safer working environment, good cost   
management and improved operational performance - all of which are receiving    
concerted management attention.                                                 
Zimplats delivered an excellent safety performance and remains the leader in    
the group in this area. Output of platinum in matte rose marginally year-on-    
year as the operation geared itself for the ramp-up in production from the      
Phase 1 expansion in FY2010. Open-pit mining, which had already been scaled     
back because of high costs, was finally halted in November 2008 in response to  
the slump in metal prices. Underground production from Portal 2 was ramped up   
to maintain production levels. The open-pit orebody continues to provide        
optionality should the market environment demand fast access to additional ore  
in the future.                                                                  
The Phase 1 expansion, a USD340 million project involving the development of    
two underground mines (Portal 1 and Portal 4), a new concentrator and other     
infrastructure, is on track. Portal 1 reached full production in December 2008  
(1 million tonnes a year), and Portal 4 is scheduled to reach this milestone    
in 2011 (2 million tonnes a year). The concentrator, was commissioned in July   
2009 and should reach its full production capacity of 2 million tonnes per      
annum in October 2009.                                                          
In the wake of the dramatic decline in metal prices and the dollarisation of    
the Zimbabwean economy, both operating costs and capital expenditure were       
reviewed during the period with a view to minimising debt and conserving cash.  
Unit costs were negatively impacted by the increase in overhead costs as the    
operation prepared for ramp-up to full production in the coming year. Once      
this is achieved, Zimplats will become one of the lowest-cost primary           
producers in the world.                                                         
In the coming year, the Phase 1 expansion will ramp-up to full production of    
approximately 4.2 million milled tonnes per annum. Steady-state output of 180   
000 platinum ounces will be achieved in 2010. Future growth at Zimplats         
depends on a politically stable investment environment.  Various expansion      
options in this regard are currently being investigated. A future expansion     
could involve the development of underground mines, another concentrator, a     
dam, as well as a new smelter.                                                  
Mimosa had a solid, trouble-free year during which all key production and       
expansion parameters were met. The Wedza Phase 5 expansion project,             
commissioned last year, was completed. It focused on the extension of milling   
and tailings handling facility capacities in order to optimise the extra        
flotation capacity created in Phase 4. As a result, total tonnes milled         
increased by 21% to 2.1 million tonnes. Consequently, production of platinum-   
in-concentrate rose 19% to 91 500 ounces. Unit costs were 35% higher year-on-   
year, mainly driven by higher input costs due to the dollarisation of the       
Zimbabwean economy, inflation and the impact of the rand/dollar exchange rate.  
Mimosa has now achieved capacity for steady-state production of 100 000 ounces  
of platinum-in-concentrate a year. No further expansions are envisaged at this  
TWO RIVERS                                                                      
Two Rivers successfully completed its ramp-up to full production, reaching its  
nameplate milling capacity of 225 000 tonnes per month in June 2007. The plant  
optimisation, which involved increased crushing capacity, additional cleaner    
circuit cells and filter capacity, is on schedule for completion in the first   
quarter of FY2010.                                                              
Subject to regulatory approval from the DMR, Implats will vend portions of the  
farm Kalkfontein, as well as the farm Tweefontein prospecting rights to Two     
Rivers in return for a further 4% equity stake. This will take Implats`         
holding up to 49% in this joint venture.                                        
Plant optimisation will result in a marginal increase in tonnes milled to 2.8   
million in FY2010. Coupled with further improvements in concentrator            
recoveries, platinum-in-concentrate production for next year is forecast at     
130 000 ounces, increasing to 150 000 ounces by FY2013. The establishment of    
mining infrastructure in the area, together with the Kalkfontein resource,      
provides additional growth and flexibility for the company.                     
IMPALA REFINING SERVICES (IRS)                                                  
IRS, which leverages Impala`s smelting and refining assets to process           
concentrate and matte for group operations as well as other third parties, saw  
a 13% decline in refined platinum production during the year. As expected, the  
Kroondal contract ended in March 2008, resulting in a drop of 130 000 ounces    
through IRS. Further ounces were lost following the collapse of the decline at  
Everest, which caused the suspension of operations at that mine in December     
Future growth in platinum output at IRS in the short-term will emanate from     
the continued ramp-up in production at Zimplats and Marula, as well as the two  
new projects, Smokey Hills and Blue Ridge.  Everest is expected to resume       
production in the medium term.                                                  
IRS has access to additional capacity and therefore is well positioned to       
expand throughput significantly.                                                
Capital Expenditure                                                             
Group capital expenditure for FY2009 totalled R6.9 billion compared to the      
R5.4 billion in the previous period. The bulk of this capital expenditure was   
spent at Impala on the development of 16, 17 and 20 shafts. These new-          
generation deeper-level shafts will replace older shafts that will reach the    
end of their lives. Number 20 shaft will commence production in FY2011. This    
will be followed by 16 shaft in FY2013 and 17 shaft in FY2016. At full          
production, the latter shafts will produce in the region of 330 000 ounces of   
Zimplats and Marula spent R1.4 billion and R398 million respectively during     
the year on their ongoing ramp-ups. Forecast capital expenditure for FY2010 is  
estimated at R5 billion. Cash preservation remains paramount for the group      
and, in the light of the current market environment it was deemed prudent to    
defer long lead projects such as Leeuwkop and Marula Merensky. As a result,     
capital expenditure over the next five years will amount to R23 billion which   
will be managed in line with group profitability and cash flow.                 
In the shorter term, we believe the platinum market will remain close to a      
position of balance, with lower supply being welcome given the demand           
destruction in the automobile industry. The next financial year will be a       
difficult one due to the slow recovery of the world economy, and improved       
sentiment will only likely be seen towards the end of this period resulting in  
a resurgence in the market.                                                     
The challenge in the interim is for the group to position itself to take        
advantage of the next upturn. We are currently focusing on ensuring a stable    
production base in the short-term. Looking forward, there are several organic   
growth opportunities available to us, and these will be embarked upon as soon   
as funding constraints abate and the timing is right. Given an improved         
environment in Zimbabwe, it will be possible in due course to increase          
platinum production significantly. This organic growth potential, taken         
together with that of the South African operations, will ensure that future     
growth will not be constrained. Further opportunities to add to the resource    
base will continue to receive attention as will opportunities to utilise        
smelting and refining assets for third party processing.                        
Fred Roux         David Brown                    Johannesburg                   
Chairman          Chief Executive Officer        27 August 2009                 
DECLARATION OF FINAL CASH DIVIDEND                                              
A final cash dividend of 200 cents per share has been declared in respect of    
the financial year ended 30 June 2009. The last day to trade ("cum" the         
dividend) in order to participate in the dividend will be Friday, 11 September  
2009. The share will commence trading "ex" the dividend from the commencement   
of business on Monday, 14 September 2009 and the record date will be Friday,    
18 September 2009.                                                              
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, 17 September 2009, or on   
the first day thereafter on which a rate of exchange is available.              
A further announcement stating the Rand/GBP conversion rate will be released    
through the relevant South African and UK news services on Friday, 18           
September 2009.                                                                 
The dividend will be paid on Monday, 21 September 2009. Share certificates may  
not be dematerialised/rematerialised during the period Monday, 14 September     
2009 to Friday, 18 September 2009, both dates inclusive.                        
By order of the Board                                                           
A Parboosing                         Johannesburg                               
Group Company Secretary              27 August 2009                             
Corporate Information                                                           
Registered Office                                                               
2 Fricker Road, Illovo 2196                                                     
(Private Bag X18, Northlands 2116)                                              
Transfer Secretaries                                                            
South Africa: Computershare Investor Services (Pty) Limited                     
70 Marshall Street, Johannesburg, 2001, (P.O. Box 61051, Marshalltown, 2107)    
United Kingdom: Computershare Investor Services plc                             
The Pavilons, Bridgwater Road, Bristol, BS13 8AE                                
FJP Roux (Chairman), DH Brown (Chief Executive Officer), S Bessit, D Earp, F    
Jakoet, JM McMahon*, MV Mennell, TV Mokgatlha (Alt: N Carroll), K Mokhele, NDB  
Orleyn, LJ Paton, DS Phiri,     *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                                   
27 August 2009                                                                  
Sponsor to Implats:                                                             
Deutsche Securities (SA)(Proprietary) Limited                                   
Date: 27/08/2009 08:00:01 Produced by the JSE SENS Department.                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.