IMP - Impala Platinum Holdings Limited - Audited c26 Aug 2010
IMP - Impala Platinum Holdings Limited - Audited condensed consolidated         
annual results Year ended 30 June 2010                                          
IMPALA PLATINUM HOLDINGS LIMITED                                                
(Incorporated in the Republic of South Africa)                                  
Registration No. 1957/001979/06                                                 
JSE share code: IMP                                                             
ISIN: ZAE 000083648                                                             
LSE: IPLA ADR`s: IMPUY                                                          
("Implats" or "the Company" or "the Group")                                     
DISTINCTLY PLATINUM                                                             
Audited condensed consolidated annual results                                   
Year ended 30 June 2010                                                         
Unsatisfactory performance                                                      
Gross platinum production up 2% to 1.74 million ounces                          
Zimplats Phase 1 expansion at full production and strong growth at IRS          
Unit costs per platinum ounce increased by 11%*                                 
Increased by 22% to 390 cents per share                                         
Sound medium- to long-term fundamentals                                         
*Excluding share-based compensation.                                            
The year under review has been one of the most difficult in the Company`s       
history. Not only did it have to contend with the global economic crisis,       
but also the impacts of both the tragedy at 14 Shaft and industrial action      
at the beginning of the period. On the positive side, significant progress      
was made in addressing the development issues at Rustenburg, the expansion      
at Zimplats was successfully commissioned and throughput at IRS grew            
significantly contributing to a 2% increase in gross production to 1.74         
million ounces of platinum. Throughout this period the Company has              
maintained a strong balance sheet, remained cash positive and raised the        
dividend by 22% to 390 cents per share. (Final dividend of 270 cents per        
Regrettably, the year started tragically when nine of our colleagues lost       
their lives in a single fall of ground incident at Impala Rustenburg. A         
further six colleagues died at the same operation during the course of the      
year bringing the total number of fatalities for the Group to 15, 14 in the     
first half and one in the second. We extend our deepest condolences to the      
families and friends of all those who died.                                     
The goal of zero lost-time injuries is an ambitious target. However, we         
believe it is one we can achieve across the Group as evidenced by the           
safety performances in some of our higher-risk underground shafts. The key      
to achieving zero harm remains a safety-conscious workforce that adheres to     
the Company`s rigorous safety standards and embraces the concept of zero        
tolerance to non-compliance.                                                    
During the year we engaged Du Pont Safety Resources to review our safety        
systems and culture and to bench-mark these against world-class best            
practice. In addition, we commissioned an independent study to investigate      
the external socio-cultural factors that affect employee behaviour,             
particularly in the South African context. The relevant findings of these       
studies have been incorporated into our safety strategy and plans, where        
the focus is on ensuring that safety becomes every employee`s first             
Market overview                                                                 
Despite demand levels for our major metals remaining subdued through 2009       
following the global economic crisis, prices did manage to recover somewhat     
from their heavily oversold positions.                                          
On the automotive side, significant production cuts in 2009 across the          
developed world brought bloated vehicle inventories back in line and led to     
a significant fall in demand for platinum, palladium and rhodium. The early     
part of 2010 has seen some recovery as scrappage and sales incentives           
boosted sales and subsequently production.                                      
The lower prices experienced during 2009 allowed the Chinese platinum           
jewellery market to restock its pipeline, to the extent that sales to this      
region more than doubled.                                                       
The economic uncertainty steered investors away from risk during the period     
and lower prices coupled with the launch of a platinum and palladium            
Exchange Traded Funds in the US brought a surge of fresh demand, bringing       
with it a commensurate increase in price levels. In line with the higher        
price environment sales volumes on the Shanghai Gold exchange have declined     
by approximately 10% in the first half of 2010.                                 
The overall reduction in demand was met by a contraction in supply leaving      
the market with a small deficit for 2009.                                       
Financial review                                                                
Headline earnings for the financial year declined by 22% to 786 cents per       
share, from 1 001 cents per share in FY2009. Notwithstanding the decrease       
in headline earnings, the total dividend for the year improved by 22% to        
390 cents per share.                                                            
Revenue reduced by 3% to R25.4 billion from R26.1 billion. This was a           
result of:                                                                      
- sales volumes - higher production volumes as well as the sale of the          
rhodium stock built up in the prior year was offset by leases in lieu of        
cash advances of 58 000oz of platinum. Sales volumes accounted for R1.1         
billion positive variance                                                       
- higher metal prices - in dollar terms platinum and palladium rose by 18%      
and 43% respectively, rhodium fell by 39%, overall dollar prices                
contributed to a positive price variance of R1.8 billion; and                   
- strengthening of R/$ exchange rate - the average exchange rate achieved       
for the year wasR7.58/$, compared with R8.63/$ for FY2009. This resulted in     
a negative exchange rate variance of R3.6 billion.                              
Cost of sales rose by 6% to R17.3 billion from R16.4 billion in FY2009.         
There were several key drivers:                                                 
- wages and salaries were R550 million higher than the previous year;           
- share-based compensation movement of R1.0 billion; and                        
- cost of metal purchases (net of change in stock) decreased by R1.2            
The unit cost per platinum ounce produced deteriorated by 22% to R10            
417/oz. Excluding share-based compensation, unit cost per platinum ounce        
was up 11% to R10 089/oz. On a normalised basis, excluding the impact of        
the strike and the 14 Shaft change in mechanised mining, unit cost per          
platinum ounce was only 5% higher at R9 592/oz. Inflation accounted for 4%      
of the change.                                                                  
Net cash generated from operating activities amounted to R5.9 billion of        
which R4.4 billion was utilised for investing activities, in respect of         
capital expenditure.                                                            
Net cash used in financing activities was R1.8 billion largely due to           
The net result of Implats` operating, investing and financing activities        
was a net cash inflow of R502 million. When combined with the opening           
balance of R3.4 billion this resulted in a closing cash and cash-equivalent     
balance of R3.9 billion.                                                        
The Group will continue to fund cash requirements from cash generated from      
operations, and will use its adequate banking facilities to cover any           
Operational review                                                              
Gross platinum production was up by 2% to 1.74 million ounces despite the       
loss of approximately 80 000 ounces at Impala Rustenburg due to the 14          
Shaft incident and strike action at the beginning of the period. Production     
was supported by a combination of higher mine to market and toll treatment      
IMPALA PLATINUM                                                                 
Safety was unsatisfactory at Impala Rustenburg with a significant               
deterioration in both the fatality and lost-time injury frequency rates.        
Fifteen employees lost their lives at the operation during the year. The        
majority of these fatalities were due to falls of ground, followed by           
transport incidents and a methane explosion. In addition to the                 
commissioning of the two independent studies as previously mentioned other      
safety initiatives included the extension of our safety and health              
programmes beyond the workplace to include community safety and health, as      
well as road safety.                                                            
Tonnes milled declined by 10.4% to 13.5 million mainly as a result of the       
14 Shaft incident, the two-week industrial action and other safety              
stoppages. As highlighted last year, limited Merensky face availability at      
the major shafts continued to impact on the amount of Merensky ore milled       
which declined by 21% to 5.4 million tonnes. Despite the change in the ore      
mix ratio to 60:40 in favour of the lower platinum yield UG2, a marginal        
improvement in yield ameliorated the decline in refined platinum                
production, which fell by 8% from the previous year to 871 000 ounces. The      
lower output negatively impacted unit costs which increased by 17% to R10       
003 per platinum ounce (excluding share-based compensation).                    
Going forward the operation will focus on maximizing production at the          
major shafts, namely 1,10, 11, 12 and 14 Shafts, and the dovetailing of the     
closure of the older shafts with the ramp-up of the new deeper-level            
shafts. In the first case the emphasis will remain on on-reef development       
to ensure the requisite mining flexibility. As 20 and 16 Shafts come on         
stream, they will restore the ore mix ratio back to 50:50 and enhance           
productivity by replacing remnant mining with concentrated mining activity.     
This will restore production to a steady-state output of 1 million ounces       
of platinum per annum by FY2014.                                                
Zimplats delivered yet another world-class safety performance with no           
fatalities. Despite a deterioration in the lost-time injury frequency rate      
to 0.69 per million man-hours worked it remains one of the top mining           
operations in the Group in terms of safety.                                     
FY2010 proved a truly outstanding operational year for Zimplats, crowned by     
the successful commissioning of the Phase 1 expansion, essentially on time      
and within budget. This project involved the development of two new             
underground mines, Portals 1 (Ngwarati) and 4 (Bimha), a new concentrator       
at Ngezi and additional infrastructure. The concentrator was commissioned       
in July 2009 and reached nameplate capacity of 2 million tonnes in              
September 2009. As a result tonnes milled increased by 89%, from 2.2            
million in the previous year to 4.1 million and platinum production in          
matte rose by 81% to 173 900 ounces. Full throughput of 180 000 ounces of       
platinum in matte on an annualised basis will be achieved in FY2011.            
Despite the dollarisation of the economy, which affected costs, higher          
production volumes resulted in unit costs declining by 22% to $1 007 per        
platinum ounce in matte. This firmly positions Zimplats as one of the           
lowest-cost primary platinum producers in the world.                            
The indigenisation regulations were gazetted by government earlier this         
year. Zimplats is confident its proposals which incorporate agreements          
concluded with the government of Zimbabwe will comply with the legislation.     
The $450 million Phase 2 expansion was approved in May this year. This          
project involves the development of a new 2 million tonne underground mine,     
an additional concentrator module and other infrastructure. At nameplate        
capacity, milled tonnage will increase from the current 4.1 million to 6.1      
million per annum and platinum production by 90 000 to 270 000 ounces per       
Marula experienced another difficult year in virtually all aspects of the       
Although safety from a fatality perspective was excellent over the period       
with no fatalities, the lost-time injury frequency rate deteriorated from       
5.35 to 9.39 per million man-hours worked. The results of the Du Pont           
safety review revealed a similar dependant culture to that at Impala            
Rustenburg. The same remedial actions are also being implemented at this        
The ramp-up in production stalled and tonnes milled declined marginally to      
1.55 million. This was due to constrained mining flexibility as a result of     
a lack of adequate on-reef development, primarily at the Clapham                
conventional section which was impacted by logistical constraints. A number     
of steps have been taken to improve both machine and people logistics.          
The lack of a build-up in mill tonnage coupled with work stoppages due to       
industrial action early in the year and lower recoveries resulted in            
platinum production reducing by 5% to 70 000 ounces in concentrate. Unit        
costs increased by 17% to R14 208 per platinum ounce in concentrate             
reflecting lower ounces and increased staffing levels.                          
The resolution of the logistical bottleneck will result in improved system      
and team efficiencies, increased face availability in the conventional          
section and improved on-reef development. Having reassessed the potential       
of the mine, steady-state production is estimated at                            
100 000 ounces of platinum in concentrate.                                      
Mimosa achieved another excellent safety performance with no fatalities         
during the period. The lost-time injury frequency rate improved by 33% to a     
new low of 0.35 per million man hours worked.                                   
The recently completed Wedza Phase 5.5 expansion resulted in the operation      
reaching steady state production of 101 000 ounces of platinum in               
concentrate per annum. Unit costs increased by 14.7% to $1 194 per platinum     
ounce in concentrate as a result of the dollarisation of the economy,           
strengthening of the rand against the US dollar and higher mining costs.        
During the year regulations on indigenisation were gazetted. The Company`s      
response to these proposals was submitted to the relevant authorities on 14     
April 2010.                                                                     
TWO RIVERS                                                                      
Tonnes milled increased by 12% to 2.9 million as a result of plant              
modifications made during the plant optimisation process which was              
completed earlier in the year. Coupled with a 7% improvement in recoveries,     
platinum production was up 19% to 140 900 ounces in concentrate. The            
improvement in volumes is reflected in unit costs which declined by 4% to       
R8 463 per platinum ounce in concentrate.                                       
Approval is still awaited from the Department of Mineral Resources to           
enable Implats to vend in portions 4, 5 and 6 of the farm Kalkfontein, as       
well as the area covered by the Tweefontein prospecting rights to Two           
Rivers. This transaction, when completed, will increase Implats` holding by     
4% to 49% in the Two Rivers joint venture.                                      
A marginal improvement in tonnes milled, coupled with further improvements      
in concentrator recoveries, will result in platinum production increasing       
to 150 000 ounces by FY2013.                                                    
IMPALA REFINING SERVICES (IRS)                                                  
Platinum production rose by 15% to 870 000 ounces despite the continued         
suspension of operations at Everest. This was primarily due to the ramp-up      
in production at both Zimbabwean operations, namely Mimosa and Zimplats, a      
further increase from Two Rivers as a result of plant modifications and the     
start of production at the two new off-take projects, Blue Ridge and Smokey     
In the short term, growth will come from continued ramp-up in production at     
Zimplats, Marula and Smokey Hills and the resumption of operations at           
Everest. In the longer term, growth will be underpinned by the Phase 2          
expansion at Zimplats, restoration of full operations at Everest and            
increasing deliveries of autocatalysts in line with the organic development     
of this market.                                                                 
CAPITAL EXPENDITURE                                                             
Group capital expenditure for the period under review totalled R4.6 billion     
compared to R7.0 billion in FY2009. The majority of this expenditure            
continued to be spent at Impala on the development of 16, 17 and 20 Shafts.     
These shafts had been planned to dovetail with the closure of the older         
shafts. The first shaft to commence production is 20 Shaft in FY2011,           
followed by 16 Shaft in FY2013 and 17 Shaft in the latter part of the           
decade. At full production these shafts will produce in the region of 500       
000 ounces of platinum per annum. The bulk of the balance was spent at          
Zimplats on the Phase 1 Expansion.                                              
Capital expenditure for FY2011 is estimated to be in the region of R7.1         
billion. The Impala shafts and the Zimplats Phase 2 Expansion will account      
for most of the expenditure.                                                    
The risks of returning to global recessionary conditions are decreasing         
through the concerted efforts of world governments to stimulate their           
economies. Notwithstanding this, it is forecast that a year of                  
unenthusiastic economic growth can be expected prior to a full revival of       
the world economy. Given this scenario the platinum market is expected to       
remain in deficit for 2010, and remain as such thereafter as growing heavy      
duty diesel demand for platinum will encounter a challenging supply             
The group is positioned to benefit from improved medium- to long-term           
fundamentals for PGMs. The key to this is a stable and long-lasting             
production platform. The delivery of the new mining projects at Impala          
Rustenburg, the first of which is scheduled to commence production next         
year, provides this base. Growth opportunities exist throughout the Group.      
These will be developed in line with our growth profile to 2.1 million          
ounces of platinum by 2014.                                                     
Khotso Mokhele                David Brown                                       
Chairman                      Chief Executive Officer                           
26 August 2010                                                                  
Declaration of final cash dividend                                              
A final cash dividend of 270 cents per share has been declared in respect       
of the financial year ended 30 June 2010. The last day to trade ("cum" the      
dividend) in order to participate in the dividend will be Friday, 10            
September 2010. The shares will commence trading "ex" the dividend from the     
commencement of business on Monday, 13 September 2010 and the record date       
will be Friday, 17 September 2010. The dividend is declared in the currency     
of the Republic of South Africa. Payments from the UK transfer office will      
be made in United Kingdom currency at the rate of exchange ruling on            
Thursday, 16 September 2010, 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, 17 September 2010. The dividend will be paid on        
Monday, 20 September 2010. Share certificates may not be                        
dematerialised/rematerialised during the period Monday, 13 September 2010       
to Friday, 17 September 2010, both dates inclusive.                             
By order of the Board                                                           
A Parboosing                                                                    
Group Company Secretary                                                         
26 August 2010                                                                  
OPERATING STATISTICS                                                            
                                              Year          Year                
                                              ended         ended               
30 June       30 June             
                                              2010          2009                
Gross refined                                                                   
Platinum                             (000oz)   1 741         1 704              
Palladium                            (000oz)   1 238         1 008              
Rhodium                              (000oz)   252           248                
Nickel                               (000t)    15.2          14.5               
IRS metal returned (toll refined)                                               
Platinum                             (000oz)   233           194                
Palladium                            (000oz)   259           181                
Rhodium                              (000oz)   49            38                 
Nickel                               (000t)    2.8           2.5                
Sales volumes                                                                   
Platinum                             (000oz)   1 435         1 503              
Palladium                            (000oz)   945           781                
Rhodium                              (000oz)   228           180                
Nickel                               (000t)    12.8          13.5               
Prices achieved                                                                 
Platinum                             ($/oz)    1 433         1 219              
Palladium                            ($/oz)    376           263                
Rhodium                              ($/oz)    2 149         3 517              
Nickel                               ($/t)     18 981        12 995             
Consolidated statistics                                                         
Average rate achieved                (R/$)     7.58          8.63               
Closing rate for the period          (R/$)     7.67          7.76               
Revenue per platinum ounce sold      ($/oz)    2 316         1 995              
                                    (R/oz)    17 555        17 217              
Tonnes milled ex-mine                (000t)    20 309        20 083             
PGM refined production               (000oz)   3 689         3 428              
Capital expenditure                  (Rm)      4 554         6 923              
Group unit cost per platinum ounce                                              
Excluding share based compensation   ($/oz)    1 335         1 005              
(R/oz)    10 089        9 129               
Including share based compensation   ($/oz)    1 379         939                
                                    (R/oz)    10 417        8 526               
STATEMENT OF FINANCIAL POSITION                                                 
As at         As at               
                                              30 June       30 June             
R millions                           Notes     2010          2009               
Non-current assets                                                              
Property, plant and equipment        5         29 646        26 224             
Exploration and evaluation assets    5         4 294         4 294              
Intangible assets                    5         1 018         1 018              
Investment in associates                       934           983                
Available-for-sale financial assets            14            18                 
Held-to-maturity financial assets              56            51                 
Receivables and prepayments                    13 781        13 592             
49 743        46 180              
Current assets                                                                  
Inventories                                    5 382         4 248              
Trade and other receivables                    3 588         3 904              
Cash and cash equivalents                      3 858         3 348              
                                              12 828        11 500              
Total assets                                   62 571        57 680             
Equity and liabilities                                                          
Equity attributable to owners of the                                            
Share capital                                  14 151        14 069             
Retained earnings                              30 017        27 222             
Other components of equity                     (376)         (352)              
                                              43 792        40 939              
Non-controlling interest                       1 941         1 864              
Total equity                                   45 733        42 803             
Non-current liabilities                                                         
Deferred tax liability                         7 747         6 909              
Long-term borrowings                 7         1 827         1 778              
Long-term provisions                           1 498         1 098              
                                              11 072        9 785               
Current liabilities                                                             
Trade and other payables                       5 147         4 634              
Current tax payable                            24            36                 
Short-term borrowings                7         301           207                
Short-term provisions                          294           215                
                                              5 766         5 092               
Total liabilities                              16 838        14 877             
Total equity and liabilities                   62 571        57 680             
STATEMENT OF COMPREHENSIVE INCOME                                               
                                              Year ended    Year ended          
30 June       30 June             
R millions                                     2010          2009               
Revenue                                        25 446        26 121             
Cost of sales                                  (17 294)      (16 359)           
Gross profit                                   8 152         9 762              
Other operating expenses                       (585)         (497)              
Royalty expense                                (536)         (442)              
Profit from operations                         7 031         8 823              
Finance income                                 321           963                
Finance cost                                   (319)         (169)              
Net foreign exchange transaction               52            (211)              
Other income/(expenses)                        45            (54)               
Share of profit of associates                   95            41                
Profit before tax                              7 225         9 393              
Income tax expense                             (2 431)       (3 389)            
Profit for the year                            4 794         6 004              
Other comprehensive income:                                                     
Available-for-sale financial assets            16            (47)               
Deferred tax thereon                           (4)           9                  
Exchange differences on translating foreign    (34)          51                 
Deferred tax thereon                           (4)           (14)               
Total comprehensive income for the year        4 768         6 003              
Profit attributable to:                                                         
Owners of the company                          4 715         6 020              
Non-controlling interest                        79            (16)              
                                              4 794         6 004               
Total comprehensive income attributable to:                                     
Owners of the company                          4 691         6 024              
Non-controlling interest                        77            (21)              
                                              4 768         6 003               
Earnings per share (cents per share)                                            
Basic                                          786           1 001              
Diluted                                        785           1 000              
SEGMENTAL ANALYSIS                                                              
2010                    2009                           
                                     Gross                    Gross             
R millions                Revenue     profit      Revenue      profit           
Impala                    24 541      5 368       25 310       7 604            
Mining                    14 025      5 222       15 250       7 586            
Metals purchased          10 516      146         10 060       18               
Zimplats                  3 052       1 571       1 099        (9)              
Marula                    1 130       (11)        631          (301)            
Mimosa                    1 032       495         631          127              
Inter-segment adjustment  (4 964)     (399)       (2 217)      1 138            
External parties          24 791      7 024       25 454       8 559            
Refining services         11 069      1 188       10 507       1 265            
Inter segment adjustment  (10 414)    (60)        (9 840)      (62)             
External parties          655         1 128       667          1 203            
Total external parties    25 446      8 152       26 121       9 762            
Capital     Total       Capital      Total             
R millions                expenditure assets      expenditure  assets           
Impala                    3 435       39 106      4 782        36 549           
Zimplats                  698         5 818       1 358        4 881            
Marula                    281         3 182       398          2 831            
Mimosa                    127         1 567       277          1 295            
Afplats                   13          7 220       108          7 216            
Total mining              4 554       56 893      6 923        52 772           
Refining services                     4 571                    3 740            
Other                                 1 107                    1 168            
Total                     4 554       62 571      6 923        57 680           
STATEMENT OF CHANGES IN EQUITY                                                  
                                Other     Attribu                               
              Share    Re-      compo-    able to  Non-     Total               
tained   nents     owners   control-                     
                                of        of the   ling                         
R millions     capital  earning  equity    company  interest equity             
Balance at     14 069   27 222   (352)     40 939   1 864    42 803             
30 June 2009                                                                    
Shares issued                                                                   
Share option   7                           7                 7                  
Employee Share                                                                  
Programme      75                          75                75                 
Total                   4 715    (24)      4 691    77       4 768              
Dividends               (1 920)            (1 920)           (1                 
Balance at 30  14 151   30 017   (376)     43 792   1 941    45 733             
June 2010                                                                       
Balance at 30  14 750   29 024   (356)     43 418   1 885    45 303             
June 2008                                                                       
Shares issued                                                                   
Share option   9                           9                 9                  
Employee Share                                                                  
Programme      34                          34                34                 
Shares         (724)                       (724)             (724)              
Total                   6 020    4         6 024    (21)     6 003              
Dividends               (7 822)            (7 822)           (7                 
Balance at 30  14 069   27 222   (352)     40 939   1 864    42 803             
June 2009                                                                       
CASH FLOW STATEMENT                                                             
Year ended     Year ended           
                                            30 June        30 June              
R millions                                   2010           2009                
Cash flows from operating activities                                            
Profit before tax                            7 225          9 393               
Adjustments to profit before tax             1 648          (185)               
Cash from changes in working capital         (1 184)        371                 
Exploration costs                            (47)           (83)                
Finance cost                                 (48)           (122)               
Income tax paid                              (1 676)        (2 867)             
Net cash from operating activities           5 918          6 507               
Cash flows from investing activities                                            
Purchase of property, plant and equipment    (4 412)         (6 791)            
Proceeds from sale of property, plant and    13              51                 
Proceeds from investments disposed           8              -                   
Purchase of investments                      0               (6)                
Payment received from associate on            196            96                 
shareholders loan                                                               
Loan repayments received                     442             9                  
Net advances                                 (106)          -                   
Finance income                               259             915                
Net cash used in investing activities        (3 600)        (5 726)             
Cash flows from financing activities                                            
Issue of ordinary shares, net of cost        82             43                  
Purchase of treasury shares                  -              (724)               
Lease liability repaid                       (18)           (16)                
Repayments of borrowings                     (136)          -                   
Proceeds from borrowings                     176            579                 
Dividends paid to company`s shareholders     (1 920)        (7 822)             
Net cash used in financing activities        (1 816)        (7 940)             
Net (decrease)/increase in cash and cash     502            (7 159)             
Cash and cash equivalents at beginning of    3 348          10 393              
Effect of exchange rate changes on cash and  8              114                 
cash equivalents held in foreign currencies                                     
Cash and cash equivalents at end of year     3 858          3 348               
HEADLINE EARNINGS                                                               
                                            Year ended     Year ended           
R millions                                   2010           2009                
Headline earnings attributable to owners of                                     
the company                                                                     
arises from  operations as follows:                                             
Profit attributable to owners of the company 4 715          6 020               
Adjustments net of tax:                                                         
Profit on disposal of property, plant and     (4)           (5)                 
Loss on disposal of investment                7             -                   
Headline earnings                            4 718          6 015               
Weighted average number of ordinary shares   600.16         601.12              
in issue                                                                        
Headline earnings per share (cents)          786            1 001               
1.   General information                                                        
Impala Platinum Holdings Limited (Implats) is a leading producer of             
platinum and associated platinum group metals (PGMs). The group has             
operations on the Bushveld Complex in South Africa and the Great Dyke in        
Zimbabwe, the two most significant PGM - bearing ore bodies globally. The       
Company has its primary listing on the securities exchange operated by the      
JSE Limited.                                                                    
This consolidated annual financial results were approved for issue on 26        
August 2010 by the board of directors.                                          
2.   Basis of preparation                                                       
The consolidated financial statements have been prepared in accordance with     
International Financial Reporting Standards (IFRS) of the International         
Accounting Standards Board (IASB), requirements of the South African            
Companies Act, 1973 as amended, the AC500 standards, as issued by the           
Accounting Practices Board or its successor and regulations of the JSE          
The consolidated financial statements have been prepared under the              
historical cost convention except for the following:                            
- certain financial assets and financial liabilities are measured at fair       
- derivative financial instruments are measured at fair value, and    -         
liabilities for cash-settled share-based payment arrangements are measured      
with a binomial option model.                                                   
The consolidated financial information is presented in South African rands,     
which is the company`s functional currency.                                     
3.   Accounting policies                                                        
The principle accounting policies applied are consistent with those of the      
annual financial statements for 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 of the Group. 4. Audit          
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, exploration and evaluation, and            
      intangible assets                                                         
Property,    and                                 
                               plant and    evaluation    Intangible            
R millions                      equipment    assets        assets               
Opening net book amount as at   26 224       4 294         1 018                
1 July 2009                                                                     
Additions                       4 476                                           
Interest capitalised            78                                              
Disposals                       (8)                                             
Depreciation                    (1 083)                                         
Exchange adjustment on          (41)                                            
Closing net book amount as at   29 646       4 294         1 018                
30 June 2010                                                                    
Opening net book amount as at   20 601       4 294         1 018                
1 July 2008                                                                     
Additions                       6 839                                           
Interest capitalised            84                                              
Disposals                       (44)                                            
Depreciation                    (979)                                           
Exchange adjustment on          (277)                                           
Closing net book amount as at   26 224       4 294         1 018                
30 June 2009                                                                    
6.   Capital commitment and derivative exposure                                 
Capital expenditure approved at 30 June 2010 amounted to R20.4 billion          
(June 2009: R22.1 billion), of which R2.6 billion (June 2009: R2.9 billion)     
is already committed. The expenditure will be funded internally and if          
necessary, from borrowings. With regards to derivative financial                
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 2010          
amounted to R228 million (2009: R38 million).                                   
7.   Borrowings                                                                 
Borrowings from Standard Bank South Africa Limited:                             
Loans were obtained by BEE partners to purchase a 27% share in Marula           
Platinum amounting to R775 million (June 2009: R710 million). The BEE           
partnership in Marula is consolidated as the loans are guaranteed by            
Implats. The loans carry interest at the Johannesburg Interbank Acceptance      
Rate (JIBAR) plus 130 (June 2009: 130) basis points and a revolving credit      
facility amounting to R117 million (June 2009: R107 million), which carries     
interest at JIBAR plus 145 (June 2009: 145) basis points. The loans expire      
in 2020.                                                                        
Two loan facilities from Standard Bank of South Africa Limited to finance       
the Ngezi Phase One expansion at Zimplats were secured.                         
Loan 1 of R614 million is denominated in US$ for US$80 million and bears        
interest at London Interbank Offering Rate (LIBOR) plus 700 basis points.       
The loan is repayable in twelve quarterly instalments commencing in             
December 2009 and will be fully repaid by December 2012. At the end of the      
period the outstanding balance amounted to R484 million (US$63 million)         
(June 2009: R588 million (US$76 million)).                                      
Loan 2 of R500 million (June 2009: R300 million) is denominated in South        
African rand and bears interest at JIBAR plus 700 (2009: 700) basis points.     
This loan is repayable in ten semi-annual instalments commencing in             
December 2010 and will be fully repaid by June 2015. At the end of the          
period the outstanding balance amounted to R490 million (June 2009: R261        
million). These loans are secured by sessions over cash, debtors and            
revenue of Zimplats Mines.                                                      
The total undrawn committed facilities at year end were R3.4 billion (2009:     
R3.4 billion).                                                                  
8.   Dividends per share                                                        
On 26 August 2010, a sub-committee of the board declared a final dividend       
of 270 cents per share amounting to R1.6 billion in respect of the              
financial year 2010. Secondary Tax on Companies (STC) on the dividend will      
amount to R160 million.                                                         
Dividends paid                                                                  
Final dividend No. 83 for 2009 of 200                                           
(June 2008: 1 175) cents per share             1 202       7 110                
Interim dividend No 84 for 2010 of 120                                          
(2009: 120) cents per share                    718         712                  
                                              1 920       7 822                 
9.   Contingent liabilities and guarantees                                      
As year end the group had bank and other guarantees of R600 million (2009:      
R508 million).                                                                  
There were no contingent liabilities at year end.                               
Corporate information                                                           
Registered Office                                                               
2 Fricker Road, Illovo 2196                                                     
(Private Bag X18, Northlands 2116)                                              
Transfer Secretaries                                                            
South Africa: Computershare Investor Services (Pty) Limited70 Marshall          
Street, Johannesburg, 2001                                                      
PO Box 61051, Marshalltown, 2107                                                
United Kingdom: Computershare Investor Services plc                             
The Pavilions, Bridgwater Road, Bristol, BS13 8AE                               
Dr K Mokhele (Chairman), DH Brown (Chief Executive Officer),                    
NDJ Carroll#, P Dunne, D Earp, T Goodlace, JM McMahon*, MV Mennell,             
TV Mokgatlha, NDB Orleyn, LJ Paton, M Pooe                                      
*British    #Alternate to T V Mokgatlha                                         
The Integrated Annual Report of the Group is available on the company`s         
internet website.                                                                                                              
Please contact the Company Secretary, via e-mail at                     or by post at Private Bag X18, Northlands      
2116, South Africa, or telephone (011) 731 9000.                                
26 August 2010                                                                  
Deutsche Securities (SA) (Pty) Limited                                          
Date: 26/08/2010 08:00:01 Produced by the JSE SENS Department.                  
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