IMP - Impala Platinum Holdings Limited - Condensed25 Aug 2011
IMP - Impala Platinum Holdings Limited - Condensed audited consolidated annual  
results Year ended 30 June 2011                                                 
IMPALA PLATINUM HOLDINGS LIMITED                                                
(Incorporated in the Republic of South Africa)                                  
Registration No. 1957/001979/06                                                 
JSE share code: IMP                                                             
ISIN: ZAE000083648                                                              
LSE: IPLA                                                                       
ADR`s: IMPUY                                                                    
("Implats" or "the Company" or "the Group")                                     
Condensed audited consolidated annual results Year ended 30 June 2011           
SAFETY Safety improved but remains a high priority                              
PRODUCTION Gross platinum production up 5.5% to 1.836 million ounces            
HEADLINE EARNINGS HEPS grew by 41%                                              
COST Reasonably controlled with unit cost per platinum ounce up 8% to R10 867   
DIVIDEND Increased by 46% to 570 cents per share                                
MARKET Sound medium- to long-term market fundamentals                           
The year under review has been a positive one for the Group and Implats         
delivered a solid operational and financial performance. Gross production       
increased by 5.5% to 1.836 million ounces of platinum supported by improved     
performances at the Impala Rustenburg and Zimplats operations. Revenue increased
30% to R33.1 billion compared to the previous financial year largely as a result
of higher dollar metal prices and sales volumes which outweighed the impact of a
stronger rand. Volume improvements and reasonable cost control benefitted unit  
cost which rose by 8% to R10 867 per platinum ounce, despite the significant    
ongoing inflationary pressures experienced during the year. The balance sheet   
remained strong with a net cash balance of R2.7 billion. A final dividend of 420
cents per share has been declared, resulting in the total dividend for FY2011   
increasing by 46%.                                                              
Safety is Implats` number one priority and we remain committed to               
achieving zero-harm in the workplace. To realise this vision we will,           
firstly, pay closer attention to addressing the supervision gap by focusing     
on leadership training and, secondly, ensuring compliance to Implats`           
defined safety standards and procedures by changing the safety culture of       
our people, focusing on behaviour observation, reward and communication.        
While Implats progressed in improving safety as shown by the 11% improvement    
in the total injury frequency rate to 13.5 (FY2010: 15.2) per million man       
hours worked, regrettably eight employees lost their lives at work during the   
year.  The Board, Management and the entire Implats team extend their sincere   
condolences to the families and friends of our colleagues who died. The lost    
time injury frequency rate deteriorated by 7%. Regrettably, our objective of    
zero lost-time injuries by FY2012 will not be achieved but we will aim to       
increase the number of operations that achieve zero lost-time injuries.         
MARKET OVERVIEW                                                                 
The global economy showed tentative signs of recovery following the world       
economic crisis of 2008 and as a result the automotive industry improved during 
2010. In addition, it was physical investment in the metals that pushed overall 
average prices to recent highs. The launch of the US platinum and palladium     
Exchange Traded Funds (ETFs) at the beginning of 2010 saw a significant uptake  
of physical metal into these products.                                          
Prices for platinum climbed throughout the year from just over $1 500 per ounce 
to end at approximately $1 800 per ounce. Increased automotive and investment   
demand was balanced by a decline in Chinese jewellery offtake after a robust    
2009, resulting in the platinum market remaining in balance for the year.       
Palladium prices began the year at just above $400 per ounce and almost reached 
$800 per ounce, a level not seen since 2001. The average for the year was $525  
per ounce, which is double the price achieved for 2009. The fundamental driver  
has been the recovery in vehicle production, along with increased investment    
demand. The possible end to Russian destocking has also benefitted sentiment in 
this market.                                                                    
Fluctuations in the price of rhodium have been more modest as an increase in    
demand on the back of growing automotive production, has been met by adequate   
supplies of the metal. The average price for the year at just over $2 400, was  
some $800 higher than the previous period reflecting the rebound in vehicle     
FINANCIAL REVIEW                                                                
Headline earnings improved by 41% from R7.86 to R11.05 per share. The biggest   
contributor to the increase in earnings was higher dollar metal prices          
experienced during the financial year. This contributed to a positive price     
variance of R6.9 billion. The average exchange rate for the year was R7.03/US$, 
compared to R7.58/US$ for FY2010. This resulted in a negative exchange rate     
variance of R2.6 billion. Sales volumes increased by R3.4 billion due to higher 
production levels, as well as the sale of the platinum inventory built up at the
Impala operations during FY2010.                                                
Cost of sales rose by R4.2 billion or 24% to R21.5 billion from R17.3 billion   
in the previous financial year. Metals purchased, including inventory movements,
accounted for R2.4 billion - more than half of this change. The other key driver
was inflation driven increases which included wages, consumables and utilities. 
The Group`s margin improved to 35% from 32%.This was due to the net effect of   
revenue strengthening by 30% and cost of sales increasing by 24%.               
Group unit costs per refined platinum ounce rose by 8% to R10 867. Group        
inflation of 7% accounted for the bulk of the increase. Unit costs were also    
affected by additional safety costs and higher employee levels required to      
deliver the additional development at Impala Rustenburg and Marula.             
Group capital expenditure for FY2011 increased by 22% to R5.5 billion compared  
to R4.6 billion in FY2010. Of this, R4.2 billion was spent at Impala, primarily 
on the development of 20, 16 and 17 Shafts. The Zimbabwean operations spent R1  
billion, largely on the completion of the Phase 1 expansion and the commencement
of the Phase 2 expansion at Zimplats. The Group will spend an estimated R7.0    
billion in FY2012 and R35 billion over the next five years. This will be        
funded from internally generated cash flow and borrowings, if needed.           
Cash generated from operating activities for the year totalled R8.3 billion     
(June 2010: R5.9 billion) The Group`s cash position net of debt, improved by    
R970 million to R2.7 billion.                                                   
The Board declared a final dividend of 420 cents per share resulting in R2.5    
billion returned to shareholders.                                               
OPERATIONAL REVIEW                                                              
Safety remains a priority at Impala Rustenburg where regrettably, the           
mine experienced seven fatalities during the year. The lost time injury         
frequency rate was unsatisfactory, deteriorating 6% to 5.41 (FY2010: 5.09)      
per million man-hours worked. The operation remains committed to the            
realisation of a zero-harm workplace focusing on changing the culture and       
behaviour of all employees and through visible-felt leadership.                 
Operationally, the year under review can be termed one of recovery with tonnes  
milled increasing by 4% to 14.1 million. During FY2010 mining was impacted by a 
two-week industrial action and the fall of ground incident at 14 Shaft.  Mining 
flexibility remains a key issue which will continue to place reliance on mining 
activities at older shafts resulting in reduced efficiencies and necessitating  
an ongoing high level of remnant mining. Merensky ore mined improved from 40% to
42%. This resulted in a 3% improvement in overall platinum yield. As a result   
refined platinum production rose by 8% to 941 200 ounces.                       
The higher volumes positively influenced unit costs, which rose 8% to R10 801   
per platinum ounce excluding share-based payments.                              
Despite 20 Shaft delivering first production during the year, it has become     
apparent that stopping would jeopardise the tight project completion schedule,  
and it has been decided to delay the production ramp-up by 12 months. This will 
allow the project team to focus on development of the incline and decline spines
and associated infrastructure. As a consequence the 26 000 ounces of platinum   
previously planned for FY2012 have been deferred to FY2013.                     
Zimplats delivered an exceptional performance which marked the first year of    
full production following the commissioning of the Phase 1 expansion in FY2010. 
Tonnes milled increased by 3% to 4.2 million with the Bimha Mine achieving full 
throughput in May 2011. Good grade control maintained headgrades at 3.56g/t 6E  
and, together with improved concentrator recoveries of 82.4%, this resulted in  
platinum in matte production improving by 5% to 182 100 ounces. Unit costs rose 
by 16% to US$1 171 per platinum ounce in matte due to a combination of internal 
inflation, the strong rand and higher maintenance costs at the Ngezi            
The Phase 2 expansion commenced in August 2010 and is expected to cost in the   
region of US$460 million. Mupfuti Mine is scheduled to commence production in   
FY2013 while the new concentrator unit will reach full nameplate capacity in    
FY2014. Refined platinum production is expected to increase by 90 000 ounces to 
270 000 ounces per annum.                                                       
The amendment to the Indigenisation and Economic Empowerment Act requiring all  
foreign-owned businesses to meet a minimum indigenisation quota of 51% was      
gazetted on 25 March 2011. The Group is engaged in ongoing discussions with the 
government of Zimbabwe in this regard and we believe this will achieve an       
acceptable outcome.                                                             
Tonnes milled and headgrade were virtually unchanged at 1.54 million and 4.39g/t
6E respectively, resulting in platinum production in concentrate remaining      
constant at 70 600 ounces despite an increase in financial, labour and equipment
resources. This was below the ramp-up plan of 85 000 platinum ounces. Higher    
staffing levels without the requisite increase in production ounces resulted in 
a 19% rise in unit costs to R16 884 per platinum ounce in concentrate.          
A detailed strategic review undertaken during the year evaluated mine planning  
parameters and the project status. Consequently it has been decided to maintain 
production at the current rate of 70 000 ounces of platinum per annum for the   
next two years to enable the completion of ancillary infrastructure on on-reef  
development. Marula is right-sizing its cost base to the current ounce profile, 
a process that was successfully completed in July. A further strategic review   
will be undertaken in FY2013                                                    
Mimosa completed its second year of steady-state production. Tonnes milled,     
headgrade and concentrator recoveries each increased by 1% to 2.3 million,      
3.91g/t 6E and 77% respectively. This resulted in record production of 104 900  
ounces of platinum in concentrate. Unit costs were adversely impacted by higher 
than anticipated labour costs, increased material usage due to bad ground       
conditions, consumable costs as well as the influence of the stronger rand.     
As a result unit costs per platinum ounce in concentrate rose by 15% to US$1    
Two Rivers                                                                      
Tonnes milled improved slightly from the previous year to 2.9 million and a     
small stockpile was built as underground production marginally exceeded         
concentrator capacity. An improved milling rate, coupled with a 2% rise in      
recoveries boosted platinum production to 145 300 ounces in concentrate. Unit   
costs increased by 14% to R9 615 per platinum ounce in concentrate due to high  
consumable costs, additional spend on redevelopment, Merensky trial mining and  
the processing of stockpile material during FY2010.                             
The transaction whereby Implats will dispose of portions 4, 5 and 6 of the farm 
Kalkfontein, as well as the area covered by the Tweefontein prospecting rights  
to Two Rivers is awaiting approval from the Department of Mineral Resources,    
South Africa. This transaction, when completed, will increase Implats`          
shareholding in the Two Rivers joint venture by 4% to 49%.                      
Impala Refining Services                                                        
Refined platinum production from operations controlled or partially controlled  
increased by 8% to 487 000 ounces. This was primarily due to the first full year
of steady-state production at Zimplats following the completion of the Phase 1  
expansion project. Third party purchases and toll business declined by 3% to    
408 000 ounces. Despite an 8% improvement in production from Aquarius Platinum  
following the restart of Everest, receipts were impacted by lower production    
from Smokey Hills and less recycling material. Overall IRS refined platinum     
production increased by 3% to 895 000 ounces.                                   
Growth in the medium- to longer-term is expected to come from the completion of 
the Phase 2 expansion at Zimplats, the continued ramp-up at Everest and Smokey  
Hills as well as additional output from Eastern Platinum and growing            
autocatalyst deliveries.                                                        
Despite the welcome recovery in metal prices experienced during 2010, the       
current and future environment is not without its challenges - 2011 has seen the
re-emergence of EU debt concerns, little sign of meaningful recovery in the US  
and the impact of the tragic earthquake and tsunami in Japan. These, together   
with persistently higher oil prices and the threat of inflation, will continue  
to exert a negative influence on the prospects of world economic recovery.      
Notwithstanding the macro challenges faced by the developed economies, the      
resilience displayed in emerging markets should continue to drive demand for    
all commodities. Growing demand for vehicles in emerging economies, together    
with tighter emission legislation throughout the world, is likely to underpin   
strong fundamental demand for PGMs in the medium term. A challenging supply     
environment will result in tight market conditions going forward.               
The Group is positioned to benefit from this environment. The key to this is a  
stable and long-lasting production platform. The delivery of the new mining     
projects at Impala Rustenburg will provide this base. In Zimbabwe the Phase 2   
expansion at Zimplats will support our growth aspirations to over 2 million     
ounces of platinum per annum by 2014.                                           
Khotso Mokhele             David Brown                                          
Chairman                   Chief Executive Officer                              
25 August 2011                                                                  
Operating statistics                                                            
                                                     Year      Year             
ended     ended            
                                                     30 June   30 June          
                                                     2011      2010             
Gross refined                                                                   
Platinum                                    (000oz)   1 836     1 741           
Palladium                                   (000oz)   1 192     1 238           
Rhodium                                     (000oz)   262       252             
Nickel                                      (000t)    16.3      15.2            

IRS metal returned                                                              
Platinum                                    (000oz)   220       233             
Palladium                                   (000oz)   210       259             
Rhodium                                     (000oz)   42        49              
Nickel                                      (000t)    3.4       2.8             
Sales volumes                                                                   
Platinum                                    (000oz)   1 665     1 435           
Palladium                                   (000oz)   1 011     945             
Rhodium                                     (000oz)   221       228             
Nickel                                      (000t)    15.5      12.8            
Prices achieved                                                                 
Platinum                                    ($/oz)    1 691     1 433           
Palladium                                   ($/oz)    670       376             
Rhodium                                     ($/oz)    2 275     2 149           
Nickel                                      ($/t)     23 965    18 981          
Consolidated statistics                                                         
Average exchange rate achieved              (R/$)     7.03      7.58            
Closing exchange rate for the period        (R/$)      6.77     7.67            
Revenue per platinum ounce sold             ($/oz)     2 799    2 316           
(R/oz)     19 677   17 555           
Tonnes milled ex-mine                       (000t)    20 974    20 309          
PGM refined production                      (000oz)   3 772     3 689           
Capital expenditure                         (Rm)      5 540     4 554           
Group unit cost per platinum ounce:                                             
Excluding share based compensation          ($/oz)    1 545     1 335           
                                           (R/oz)    10 867    10 089           
Including share based cost                  ($/oz)    1 539     1 379           
(R/oz)    10 824    10 417           
Statement of financial position                                                 
                                                     As at     As at            
                                                     30 June   30 June          
R millions                                  Notes     2011      2010            
Non-current assets                                                              
Property, plant and equipment               5         33 137    29 646          
Exploration and evaluation assets                     4 294     4 294           
Intangible assets                                     1 018     1 018           
Investment in associates                              904       934             
Available-for-sale financial assets                   15        14              
Held-to-maturity financial assets                     61        56              
Receivables and prepayments                           13 379    13 781          
                                                     52 808    49 743           
Current assets                                                                  
Inventories                                           5 471     5 382           
Trade and other receivables                           4 783     3 588           
Cash and cash equivalents                             4 542     3 858           
                                                     14 796    12 828           
Total assets                                          67 604    62 571          
Equity and liabilities                                                          
Equity attributable to owners of the                                            
Share capital                                         14 228    14 151          
Retained earnings                                     34 136    30 017          
Other components of equity                            (801)     (376)           
                                                     47 563    43 792           
Non-controlling interest                              2 047     1 941           
Total equity                                          49 610    45 733          
Non-current liabilities                                                         
Deferred tax liability                                8 337     7 747           
Long-term borrowings                        7         1 698     1 827           
Long-term liabilities                                 831       899             
Long-term provisions                                  614       599             
11 480    11 072           
Current liabilities                                                             
Trade and other payables                              5 656     5 130           
Current tax payable                                   226       24              
Short-term borrowings                       7         144       301             
Short-term liabilities                                488       311             
                                                     6 514     5 766            
Total liabilities                                     17 994    16 838          
Total equity and liabilities                          67 604    62 571          
Statement of comprehensive income                                               
                                           Year ended    Year ended             
                                           30 June       30 June                
R millions                                  2011          2010                  
Revenue                                     33 132        25 446                
Cost of sales                               (21 490)      (17 294)              
Gross profit                                11 642        8 152                 
Other operating expenses                    (645)         (585)                 
Royalty expense                             (804)         (536)                 
Profit from operations                      10 193        7 031                 
Finance income                              343           321                   
Finance cost                                (530)         (319)                 
Net foreign exchange transaction            (448)         52                    
Other income/(expenses)                     (235)         45                    
Share of profit of associates                238           95                   
Profit before tax                           9 561         7 225                 
Income tax expense                          (2 751)       (2 431)               
Profit for the year                         6 810         4 794                 
Other comprehensive income:                                                     
Available-for-sale financial assets         6             16                    
Deferred tax thereon                        0             (4)                   
Exchange differences on translating         (692)         (34)                  
foreign operations                                                              
Deferred tax thereon - translation          195           10                    
                    - rate change          -              (14)                  
Total comprehensive income                  6 319         4 768                 
Profit attributable to:                                                         
Owners of the Company                       6 638         4 715                 
Non-controlling interest                     172           79                   
                                           6 810         4 794                  
Total comprehensive income attributable                                         
Owners of the Company                       6 213         4 691                 
Non-controlling interest                     106           77                   
6 319         4 768                  
Earnings per share (cents per share)                                            
Basic                                       1 105         786                   
Diluted                                     1 104         785                   
Segmental analysis                                                              
                          2011                  2010                            
                                      Gross                   Gross             
R millions                 Revenue     profit    Revenue       profit           
Impala                     32 030      7 511     24 541        5 368            
Mining                     18 441      7 486     14 025        5 222            
Metals purchased           13 589      25        10 516        146              
Zimplats                   3 709       2 133     3 052         1 571            
Marula                     1 300       (41)      1 130         (11)             
Mimosa                     1 284       717       1 032         495              
Afplats                    -           (1)       -             -                
Inter-segment adjustment   (5 975)     (34)      (4 964)       (399)            
External parties           32 348      10 285    24 791        7 024            
Refining services          14 273      1 419     11 069        1 188            
Inter-segment adjustment   (13 489)    (62)      (10 414)      (60)             
External parties           784         1 357     655           1 128            
Total external parties     33 132      11 642    25 446        8 152            
                          Capital     Total     Capital       Total             
R millions                 expenditure assets    expenditure   assets           
Impala                     4 240       43 649    3 435         39 106           
Zimplats                   840         5 568     698           5 818            
Marula                     242         3 313     281           3 182            
Mimosa                     186         1 593     127           1 567            
Afplats                    32          7 264     13            7 220            
Total mining               5 540       61 387    4 554         56 893           
Refining services                      5 185                   4 571            
Other                                  1 032                   1 107            
Total                      5 540       67 604    4 554         62 571           
Statement of changes in equity                                                  
                                          Re-          compon-                  
                               Share      tained       ents of                  
R millions                      capital    earnings     equity                  
Balance at 30 June 2010         14 151     30 017       (376)                   
Shares issued                                                                   
Share option scheme             7                                               
Employee Share Ownership                                                        
Programme                       70                                              
Total comprehensive income                 6 638        (425)                   
Dividends                                  (2 519)                              
Balance at 30 June 2011         14 228     34 136       (801)                   
Balance at 30 June 2009         14 069     27 222       (352)                   
Shares issued                                                                   
Share option scheme             7                                               
Employee Share Ownership                                                        
Programme                       75                                              
Total comprehensive income                 4 715        (24)                    
Dividends                                  (1 920)                              
Balance at 30 June 2010         14 151     30 017       (376)                   
Statement of changes in equity (continued)                                      
                                   Attributable to                              
                                   Owners       Non-                            
                                   of the       controlling  Total              
R millions                          Company      interest     equity            
Balance at 30 June 2010             43 792       1 941        45 733            
Shares issued                                                                   
Share option scheme                 7                         7                 
Employee Share Ownership                                                        
Programme                           70                        70                
Total comprehensive income          6 213        106          6 319             
Dividends                           (2 519)                   (2 519)           
Balance at 30 June 2011             47 563       2 047        49 610            
Balance at 30 June 2009             40 939       1 864        42 803            
Shares issued                                                                   
Share option scheme                 7                         7                 
Employee Share Ownership                                                        
Programme                           75                        75                
Total comprehensive income          4 691        77           4 768             
Dividends                           (1 920)                   (1 920)           
Balance at 30 June 2010             43 792       1 941        45 733            
Cash flow statement                                                             
                                           Year ended  Year ended               
                                           30 June     30 June                  
R millions                                  2011        2010                    
Cash flows from operating activities                                            
Profit before tax                           9 561       7 225                   
Adjustments to profit before tax            1 123       1 648                   
Cash from changes in working capital        (371)       (1 184)                 
Exploration costs                           (44)        (47)                    
Finance cost                                (179)       (48)                    
Income tax paid                             (1 805)     (1 676)                 
Net cash from operating activities          8 285       5 918                   
Cash flows from investing activities                                            
Purchase of property, plant and equipment   (5 293)      (4 412)                
Proceeds from sale of property, plant and   4            13                     
Purchase of investment in associate         (55)        -                       
Payment received from associate on           272         196                    
shareholders` loan                                                              
Proceeds from investments disposed          -            8                      
Loan repayments received                    394          442                    
Advances granted                            (33)         (106)                  
Finance income                              234          259                    
Dividends received                          5           -                       
Net cash used in investing activities       (4 472)     (3 600)                 
Cash flows from financing activities                                            
Issue of ordinary shares, net of cost       77          82                      
Lease liability repaid                      (19)        (18)                    
Repayments of borrowings                    (836)       (136)                   
Proceeds from borrowings                    253         176                     
Dividends paid to Company`s shareholders    (2 519)     (1 920)                 
Net cash used in financing activities       (3 044)     (1 816)                 
Net increase in cash and cash equivalents   769         502                     
Cash and cash equivalents at beginning of   3 858       3 348                   
Effect of exchange rate changes on cash     (85)        8                       
and cash equivalents held in foreign                                            
Cash and cash equivalents at end of year    4 542       3 858                   
Headline earnings                                                               
                                           Year ended  Year ended               
                                           30 June     30 June                  
R millions                                  2011        2010                    
Headline earnings attributable to owners                                        
of the Company                                                                  
arises from operations as follows:                                              
Profit attributable to owners of the        6 638       4 715                   
Profit on disposal of property, plant and    (1)         (5)                    
Loss on disposal of investment               3           10                     
Total tax effects of adjustments             (1)         (2)                    
Headline earnings                           6 639       4 718                   
Weighted average number of ordinary         600.76      600.16                  
shares in issue                                                                 
Headline earnings per share (cents)         1 105        786                    
1.    General information                                                       
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 orebodies globally.                   
The Company has its primary listing on the securities exchange             
     operated by the JSE Limited and a secondary listing on the                 
     London Stock Exchange.                                                     
     These consolidated annual financial results were approved for              
issue on 25 August 2011 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, 2008 as                   
     amended, the AC 500 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 value;                                                    
     - derivative financial instruments are measured at fair value;             
     - liabilities for cash-settled share-based payment arrangements            
are measure 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 principal accounting policies applied are in terms of IFRS             
     and 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 Integrated             
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 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                                             
Year ended  Year ended               
                                           30 June     30 June                  
     R millions                            2011        2010                     
     Opening net book amount               29 646      26 224                   
Additions                             5 539       4 476                    
     Interest capitalised                  1           78                       
     Disposals                             (54)        (8)                      
     Depreciation                          (1 372)     (1 083)                  
Exchange adjustment on translation    (623)       (41)                     
     Closing net book amount               33 137      29 646                   
6.    Capital commitment                                                        
     Capital expenditure approved at 30 June 2011 amounted to R25.5             
billion (June 2010: R20.4 billion), of which R2.0 billion (June            
     2010: R2.6 billion) is already committed. The expenditure will             
     be funded internally and, if necessary, from borrowings.                   
7.    Borrowings                                                                
Borrowings from Standard Bank South Africa Limited:                        
     Loans were obtained by BEE partners to purchase a 27% share in             
     Marula Platinum (Proprietary) Limited amounting to R771 million            
     (June 2010: R775 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 2010: 130) basis points and a revolving             
     credit facility amounting to R114 million (June 2010: R117                 
million), which carries interest at JIBAR plus 145 (June 2010:             
     145) basis points. The loans expire in 2020.                               
     Two loan facilities from Standard Bank of South Africa Limited             
     to finance expansion at Zimplats were obtained.                            
These loans are secured by cessions over cash, debtors and                 
     revenue of Zimbabwe Platinum Mines (Pvt) Limited:                          
     Loan 1 of R542 million (June 2010: R614 million) is denominated            
     in US$ - US$80 million (June 2010: US$80 million) and bears                
interest at London Interbank Offering Rate (LIBOR) plus 700                
     (June 2010: 700) basis points. Repayments of 12 quarterly                  
     instalments commenced in December 2009 and will be fully settled           
     by December 2012. At the end of the period the outstanding                 
balance amounted to R102 million (US$ 15 million) (June 2010:              
     R485 million (US$63 million)).                                             
     Loan 2 - a revolving credit facility of R596 million is                    
     denominated in US$ - US$88 million and bears interest at London            
Interbank Offering Rate (LIBOR) plus 700 basis points. The loan            
     amortises over four years as per the relevant commitments with a           
     final maturity date in December 2014. At the end of the period             
     the outstanding balance amounted to R244 million (US$36                    
million). (2010: A rand denomination term loan facility with a             
     balance of R490 million was repaid during this financial year).            
     The total undrawn committed facilities at year-end were R3.9               
     billion (2010: R3.4 billion).                                              
8.    Dividends per share                                                       
     On 25 August 2011, a sub-committee of the Board declared a final           
     dividend of 420 cents per share amounting to R2.5 billion in               
     respect of the financial year 2011. Secondary Tax on Companies             
(STC) on the dividend will amount to R252 million.                         
                                           Year ended  Year ended               
                                           30 June     30 June                  
     R millions                            2011        2010                     
Dividends paid                                                             
     Final dividend No 85 for 2010 of 270  1 622       1 202                    
     (2009: 200) cents per share                                                
     Interim dividend No 86 for 2011 of    897         718                      
150 (2010: 120) cents per share                                            
                                           2 519       1 920                    
9.    Contingent liabilities and guarantees                                     
     The Group has a contingent liability of US$36 million for                  
Additional Profits Tax (APT) raised by ZIMRA (Zimbabwe Revenue             
     Authority) consisting of an additional assessment of US$27                 
     million in respect of the tax period 2007 to 2009 and a current            
     APT amount of US$9 million based on the assumption that this               
amount would be payable should the Zimplats appeal against the             
     ZIMRA interpretation of the APT provisions fail in the Special             
     Court of Tax Appeals. Management, supported by the opinions of             
     its tax advisors, strongly disagrees with the ZIMRA                        
interpretation of the provisions.                                          
     At year-end the Group had bank and other guarantees of R606                
     million (2010: R600 million) from which it is anticipated that             
     no material liabilities will arise.                                        
DECLARATION OF FINAL CASH DIVIDEND                                              
A final cash dividend of 420 cents per share has been declared in respect of    
the year ended 30 June 2011. The last day to trade ("cum" the dividend) in order
to participate in the dividend will be Friday, 9 September 2011. The shares     
will commence trading "ex" the dividend from the commencement of business on    
Monday, 12 September 2011 and the record date will be Friday, 16 September      
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 a spot rate of exchange ruling on Thursday, 15 September 2011,      
or on the first day thereafter on which a rate of exchange is available.        
A further announcement stating the Rand/GBP conversation will be released       
through the relevant South African and United Kingdom news services on          
Friday, 16 September 2011.                                                      
The dividend will be paid on Monday, 19 September 2011. Share certificates      
may not be dematerialised/rematerialised during the period Monday, 12 September 
2011 to Friday, 16 September 2011, both dates inclusive.                        
By order of the Board                                                           
A Parboosing                                                                    
Company Secretary                                                               
25 August 2011                                                                  
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                                          
PO Box 61051, Marshalltown, 2107                                                
United Kingdom: Computershare Investor Services plc                             
The Pavilions, Bridgwater Road, Bristol, BS13 8AE                               
Deutsche Securities (SA) (Pty) Limited                                          
KDK Mokhele (Chairman), DH Brown (Chief Executive Officer),                     
B Berlin, NDJ Carroll#, HC Cameron,  PA Dunne, MSV Gantsho,                     
TP Goodlace, JM McMahon*, MV Mennell, B Ngonyama, TV Mokgatlha, NDB Orleyn, OM  
*British    #Alternate to TV Mokgatlha                                          
The Integrated Annual Report of the Group is available on the Company`s         
website.Please contact the Company Secretary at (011) 731 9000,                 
or via e-mail at or by post                    
at Private Bag X18, Northlands 2116, South Africa, for further information,     
if required.                                                                    
Date: 25/08/2011 07:06:51 Produced by the JSE SENS Department.                  
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