IMP - Impala Platinum Holdings Limited - First qua17 Nov 2011
IMP - Impala Platinum Holdings Limited - First quarter production report        
for period 01 July to 30 September 2011                                         
Impala Platinum Holdings Limited                                                
(Incorporated in the Republic of South Africa)                                  
(Registration No. 1957/001979/06)                                               
ISIN: ZAE000083648                                                              
JSE Share Code : IMP                                                            
LSE Share Code : IPLA                                                           
ADR Code : IMPUY                                                                
("Implats" or "the Company")                                                    
Unaudited       Unaudited                   
 Operational                        Quarter ended   Quarter ended               
 information                        30 September 11 30 September 10             
 Implats Gross                                                                  
Refined Production                                                             
 Platinum             000oz         388             441                         
 Palladium            000oz         251             285                         
 Rhodium              000oz         53              57                          
Nickel               000tonne      3.84            3.76                        
 Tonnes Milled*       000           3 759           3 979                       
Grade (6E)*          g/t           4.53            4.66                        
 Merensky Milled*     %             45              40                          
 Refined Platinum     000oz         249             251                         

 Tonnes Milled        000           395             437                         
 Grade (6E)           g/t           4.30            4.32                        
Platinum in          000oz         18              20                          
Tonnes Milled        000           1 060           1 043                       
 Grade (6E)           g/t           3.57            3.56                        
 Platinum in Matte    000oz         45              44                          
 Tonnes Milled        000           592             594                         
 Grade (6E)           g/t           3.91            3.91                        
 Platinum in          000oz         27              27                          
 Refined Platinum     000oz         139             190                         
 Group Unit Costs     R/oz          11 628          10 491                      
 (excluding SBP)                                                                

 Prices Achieved                                                                
 Platinum             $/oz          1 774           1 528                       
 Palladium            $/oz          773             470                         
Rhodium              $/oz          1 801           2 286                       
 Nickel               $/tonne       22 062          19 100                      
 Average exchange     R/$           7.01            7.41                        
*The ex-mine tonnage, grade and % Merensky statistics tabulated above           
excludes the low grade material from surface sources.                           
Regrettably, three of our employees lost their lives at work during the         
first quarter of FY2012.  All of these incidents occurred at Impala             
Rustenburg.  Phakani Joseph Tshabangu and Monyamane Molotha lost their          
lives due to two separate falls-of-ground and Christian Sinikiwe Dweba          
as the result of drilling into a misfire.  The Board and management team        
extend their sincere sympathies to the families, friends and colleagues         
of these employees.                                                             
The Company together with the Department of Mineral Resources (DMR)             
remain actively committed to the elimination of fatalities and other            
injuries in our working environment.  Production lost due to Section 54         
notices in the first quarter amounted to approximately 8 000 ounces of          
platinum.  A similar amount has already been lost in October due to the         
issuing of a significant number of high impact Section 54 notices.  We          
are engaging with the DMR and the Inspectorate to gain a clearer                
understanding of their concerns and to formulate an appropriate way             
forward for both parties.  In order to minimise the impact on second            
quarter production additional surface material from dumps, dams, sludge         
and slag are being treated.                                                     
Gross platinum production declined by 12% compared to the first quarter         
a year ago to 388 000 ounces.  This was as a result of reduced volumes          
through IRS from Crocodile River due to on-going operational issues, the        
closure of Blue Ridge, as well as the fact that 34 000 ounces of once-          
off Lonmin toll material was processed in the previous comparable               
quarter.  Palladium production decreased in line with platinum.  As a           
result of rhodium`s longer pipeline, production of this metal only fell         
by 7% due to a stock build-up in the corresponding period a year ago as         
a result of the treatment of additional toll material.                          
At Impala Rustenburg tonnes milled were down 6% to 3.76 million largely         
due to the previously announced deferral of production at 20 Shaft to           
FY2013.  Despite this platinum production remained flat at 249 000              
ounces due to a combination of increased Merensky throughput in line            
with the operation`s stated move to a 50:50 Merensky:UG2 ore mix and the        
treatment of additional surface material.                                       
Tonnes milled at Marula declined by 10% to 395 000 and platinum in              
concentrate production declined by 12% to 18 000 ounces due to the              
restructuring of the operation which in turn resulted in a surface              
stockpile build due to a temporary change to a five day milling cycle.          
Costs have started to reduce in line with the right-sizing of the               
Platinum production in matte at Zimplats was marginally up to 45 000            
ounces in line with an increase in tonnes milled to 1.06 million.  The          
Phase 2 expansion project remains on schedule to take production to 270         
000 ounces of platinum by FY2014.  At Portal 3 blasting and construction        
of tunnel arches in both North and South declines is underway and               
progress on the concentrator and other infrastructure is progressing            
In October Zimplats announced their intention to establish a community          
share ownership scheme, an integral part of the Company`s plan to meet          
Zimbabwe`s indigenisation requirement.  Management remain in                    
negotiations with the Government of Zimbabwe to finalise the                    
indigenisation implementation plan which will be resubmitted in mid-            
November this year.                                                             
Production at Mimosa remained flat in line with steady-state production         
of 100 000 ounces of platinum in concentrate per annum.  The Company            
submitted their indigenisation plan in late October and await feedback          
from the Government of Zimbabwe.                                                
IRS` refined platinum production declined by 27% quarter on quarter as          
previously outlined.                                                            
Group Unit Costs (excluding SBP)                                                
Group unit cost per platinum ounce produced excluding share-based               
payments rose by 10.8% from the previous quarter a year ago primarily           
due to the recent impact of the 10% wage settlement and the continuation        
of high electricity tariff increases.                                           
17 November 2011                                                                
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 17/11/2011 14:03:41 Produced by the JSE SENS Department.                  
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