Implats - Audited consolidated annual results for25 Aug 2006
Implats - Audited consolidated annual results for the year ended 30 June 2006   
Impala Platinum Holdings Limited                                                
(Incorporated in the Republic of South Africa)                                  
Registration No. 1957/001979/06                                                 
Share code: IMP                                                                 
ISIN: ZAE000003554                                                              
Issuer code: IMPO                                                               
LSE: IPLA                                                                       
ADR: IMPUY                                                                      
("Implats" or "the company")                                                    
Consolidated annual results for the year ended 30 June 2006 (Audited)           
-    Safety levels at record lows                                               
-    Gross platinum production steady at 1.846 million ounces                   
-    Record production at Impala Platinum of 1.125 million ounces               
-    Sales up by 40% to record R17.5 billion                                    
-    Headline earnings per share up 39%                                         
-    Final dividend of R22.00 per share                                         
Balance Sheet                                                                   
                                                  As at      As at              
(All amounts in Rand millions                   30 June    30 June              
unless otherwise stated)                           2006       2005              
Non-current assets                                                              
Property, plant and equipment                  12,270.1   10,035.0              
Investments in associates                       1,167.9      901.2              
Available-for-sale financial investments          761.1      276.4              
Held-to-maturity-investments                      108.2       99.3              
Other receivables                                 611.3      609.2              
                                               14,918.6   11,921.1              
Current assets                                                                  
Inventories                                     2,936.0    1,721.1              
Trade and other receivables                     3,585.6    3,189.9              
Cash and cash equivalents                       1,864.4    3,984.3              
                                                8,386.0    8,895.3              
Total assets                                   23,304.6   20,816.4              
Capital and reserves                                                            
attributable to the equity                                                      
holders of the holding company                                                  
Share capital                                     362.6      120.4              
Other reserves                                    114.0    (506.1)              
Retained earnings                              13,373.5   14,496.0              
Ordinary shareholders interest                 13,850.1   14,110.3              
Minority interest                                 214.8      159.8              
Total equity                                   14,064.9   14,270.1              
Non-current liabilities                                                         
Borrowings                                         11.3          -              
Deferred income tax liabilities                 2,922.8    2,381.1              
Provision for employee benefit obligations        187.5       64.6              
Provision for future rehabilitation               335.4      234.9              
Derivative financial instruments                   38.2          -              
                                                3,495.2    2,680.6              
Current liabilities                                                             
Trade and other payables                        4,741.1    3,582.4              
Current income tax liabilities                    926.9      280.0              
Borrowings                                         11.3        3.3              
Derivative financial instruments                   65.2          -              
                                                5,744.5    3,865.7              
Total liabilities                               9,239.7    6,546.3              
Total equity and liabilities                   23,304.6   20,816.4              
Income Statement                                                                
                                   Year ended           Year ended              
(All amounts in Rand millions         30 June   Change     30 June              
unless otherwise stated)                 2006        %        2005              
Sales                                17,500.2     39.5    12,540.8              
On-mine operations                  (4,722.7)            (4,109.5)              
Concentrating and smelting          (1,129.6)            (1,043.3)              
Refining operations                   (545.2)              (502.1)              
Amortisation of mining assets         (622.5)              (628.8)              
Metals purchased                    (4,326.2)            (2,488.9)              
Increase in metal inventories         1,161.0                454.8              
Cost of sales                      (10,185.2)   (22.5)   (8,317.8)              
Gross profit                          7,315.0              4,223.0              
Net foreign exchange transaction        177.8                 32.5              
Other operating expenses              (340.0)              (318.9)              
Other (expenses)/income               (147.6)                292.2              
Other gains - net                       303.8                249.8              
Finance costs                          (58.5)               (54.3)              
Share of profit of associates           114.8                203.7              
Royalty expense                       (851.8)              (414.9)              
Profit from sale of investment in           -              3,155.0              
BEE compensation charge                (95.3)                    -              
Reversal of impairment/                 583.1            (1,033.8)              
(impairment) of assets                                                          
Profit before tax                     7,001.3     10.5     6,334.3              
Income tax expense                  (2,616.2)            (1,080.4)              
Profit for the year                   4,385.1   (16.5)     5,253.9              
Profit attributable to:                                                         
Equity holders of the company         4,345.4              5,237.6              
Minority interest                        39.7                 16.3              
                                      4,385.1              5,253.9              
Earnings per share (expressed in                                                
cents per share)                                                                
- basic                                 6,607   (16.6)       7,920              
- diluted                               6,589   (16.7)       7,914              
Dividends to group shareholders                                                 
(expressed in cents per share)                                                  
- final dividend June 2006/5            2,200     22.2       1,800              
- interim dividend December             1,000    100.0         500              
2005/4 paid                                                                     
- special dividend paid                 5,500                    -              
                                        8,700                2,300              
Summary of Business Segments                                                    
(All amounts in Rand millions, unless otherwise stated)                         
          Mining segment                                                        
                             Impala    Marula  Zimplats  Mimosa   segment       
for the year ended                                                              
30 June 2006                                                                    
Total sales                16,864.9     511.1   1,037.9   436.0  18,849.9       
Cost of sales              10,926.3     416.2     606.2   207.0  12,155.7       
Gross profit                5,938.6      94.9     431.7   229.0   6,694.2       
Profit for the                                                                  
year                        3,350.3     402.6     305.1   174.8   4,232.8       
for the year ended 30                                                           
June 2005                                                                       
Total sales                12,040.6     237.0     696.1   304.8  13,278.5       
Cost of sales               8,507.8     360.4     557.3   214.1   9,639.6       
Gross profit                3,532.8   (123.4)     138.8    90.7   3,638.9       
Profit for the                                                                  
year                        2,077.0   (955.4)     131.4    94.7   1,347.7       
Refining  Investment      Inter                     
                            services   and Other    segment                     
                             segment     segment adjustment     Total           
for the year ended                                                              
30 June 2006                                                                    
Total sales                  6,221.6              (7,571.3)  17,500.2           
Cost of sales                5,336.5              (7,307.0)  10,185.2           
Gross profit                   885.1                (264.3)   7,315.0           
Profit for the                                                                  
  year                         715.0     (355.0)    (207.7)   4,385.1           
for the year ended 30                                                           
June 2005                                                                       
Total sales                  4,072.3              (4,810.0)  12,540.8           
Cost of sales                3,460.5              (4,782.3)   8,317.8           
Gross profit                   611.8                 (27.7)   4,223.0           
Profit for the                                                                  
year                         538.2     3,395.7     (27.7)   5,253.9           
Statement of Changes in Shareholders" Equity                                    
                              Attributable to equity                            
                              holders of the Company                            
(All amounts in Rand millions      Share     Other   Retained                   
unless otherwise stated)         capital  reserves   earnings     Total         
Balance at 30 June 2004            657.9   (626.3)   10,653.2  10,684.8         
Fair value gains, net of tax:                                                   
- Available-for-sale                                                            
   investments                                76.6                 76.6         
Currency translation                                                            
differences, net of tax                       72.6                 72.6         
Net income recognised                                                           
directly in equity                           149.2                149.2         
Profit for the year                                   5,237.6   5,237.6         
Total recognised income                                                         
for 2005                                     149.2    5,237.6   5,386.8         
Employee share option scheme:                                                   
- Proceeds from shares issued       53.3                           53.3         
- Fair value of employee            22.3                           22.3         
Purchase of treasury shares                                                     
by subsidiary                    (613.1)                        (613.1)         
Final dividend relating to                          (1,062.6) (1,062.6)         
Interim dividend relating to                          (332.2)   (332.2)         
Transactions with minorities:                                                   
- Purchase of additional                                                        
in Zimplats Holdings Limited                (29.0)               (29.0)         
(537.5)    (29.0)  (1,394.8) (1,961.3)         
Balance at 30 June 2005            120.4   (506.1)   14,496.0  14,110.3         
Fair value gains, net of tax:                                                   
- Available-for-sale                                                            
investments                                  414.4                414.4         
Currency translation                                                            
net of tax                                   110.7                110.7         
Net income recognised                                                           
in equity                                    525.1                525.1         
Profit for the year                                   4,345.4   4,345.4         
Total recognised income for                  525.1    4,345.4   4,870.5         
Employee share option scheme:                                                   
- Proceeds from shares issued      213.9                          213.9         
- Fair value of employee            28.3                           28.3         
Final dividend relating to                          (1,181.9) (1,181.9)         
Interim dividend relating to                          (661.9)   (661.9)         
Special dividend                                    (3,624.1) (3,624.1)         
Share of revaluation reserve                                                    
  associate                                    0.2                  0.2         
BEE compensation charge from                                                    
sale of shares in Marula                                                      
  Limited                                     95.3                 95.3         
Transactions with minorities:                                                   
- Purchase of additional                                                        
   in Zimplats Holdings                      (0.5)                (0.5)         
242.2      95.0  (5,467.9) (5,130.7)         
Balance at 30 June 2006            362.6     114.0   13,373.5  13,850.1         
(All amounts in Rand millions             Minority      Total                   
unless otherwise stated)                  interest     equity                   
Balance at 30 June 2004                      128.1   10,812.9                   
Fair value gains, net of tax:                                                   
- Available-for-sale financial                                                  
   investments                                           76.6                   
Currency translation                                                            
differences, net of tax                        8.6       81.2                   
Net income recognised                                                           
directly in equity                             8.6      157.8                   
Profit for the year                           16.3    5,253.9                   
Total recognised income                                                         
for 2005                                      24.9    5,411.7                   
Employee share option scheme:                                                   
- Proceeds from shares issued                            53.3                   
- Fair value of employee service                         22.3                   
Purchase of treasury shares                                                     
  by subsidiary                                       (613.1)                   
Final dividend relating to 2004                     (1,062.6)                   
Interim dividend relating to 2005                     (332.2)                   
Transactions with minorities:                                                   
- Purchase of additional share                                                  
in Zimplats Holdings Limited                6.8     (22.2)                   
                                               6.8  (1,954.5)                   
Balance at 30 June 2005                      159.8   14,270.1                   
Fair value gains, net of tax:                                                   
- Available-for-sale financial                                                  
   investments                                          414.4                   
Currency translation differences,                                               
  net of tax                                  16.3      127.0                   
Net income recognised directly                                                  
  in equity                                   16.3      541.4                   
Profit for the year                           39.7    4,385.1                   
Total recognised income for 2006              56.0    4,926.5                   
Employee share option scheme:                                                   
- Proceeds from shares issued                           213.9                   
- Fair value of employee service                         28.3                   
Final dividend relating to 2005                     (1,181.9)                   
Interim dividend relating to 2006                     (661.9)                   
Special dividend                                    (3,624.1)                   
Share of revaluation reserve in                                                 
  associate                                               0.2                   
BEE compensation charge from                                                    
  sale of shares in Marula Platinum                                             
  Limited                                                95.3                   
Transactions with minorities:                                                   
- Purchase of additional share                                                  
   in Zimplats Holdings Limited              (1.0)      (1.5)                   
                                             (1.0)  (5,131.7)                   
Balance at 30 June 2006                      214.8   14,064.9                   
Cash Flow Statement                                                             
                                           Year ended  Year ended               
(All amounts in Rand millions                 30 June     30 June               
unless otherwise stated)                         2006        2005               
Cash flows from operating activities                                            
Cash generated from operations                6,497.0     3,755.5               
Interest paid                                  (40.4)      (37.4)               
Income tax paid                             (1,553.9)     (931.1)               
Net cash from operating activities            4,902.7     2,787.0               
Cash flows from investing activities                                            
Increase in shareholding in subsidiary          (1.5)      (22.2)               
Purchase of property, plant and             (2,176.7)   (1,995.5)               
Proceeds from sale of property, plant           101.7        31.9               
and equipment                                                                   
Increase in investments in associates         (151.7)      (82.3)               
Payment received from associate on                  -        22.1               
shareholders loan                                                               
Disposal of investment in associate                 -     4,919.8               
Loans granted                                       -     (617.5)               
Loan repayments received                         36.5        41.7               
Interest received                               356.3       200.1               
Dividends received                               10.9         1.0               
Net cash (used in)/generated from           (1,824.5)     2,499.1               
investing activities                                                            
Cash flows from financing activities                                            
Issue of ordinary shares                        213.9        53.3               
Purchase of treasury shares by                      -     (613.1)               
Proceeds from/(repayments of) short-term          6.9     (548.1)               
Proceeds from long-term borrowings               10.2           -               
Dividends paid to company"s shareholders    (5,467.9)   (1,394.8)               
Net cash used in financing activities       (5,236.9)   (2,502.7)               
Net (decrease)/increase in cash and cash    (2,158.7)     2,783.4               
Cash and cash equivalents at beginning        3,984.3     1,187.0               
of year                                                                         
Effects of exchange rate changes on              38.8        13.9               
monetary assets                                                                 
Cash and cash equivalents at end of year      1,864.4     3,984.3               
The consolidated financial statements have been prepared in accordance with     
International Financial Reporting Standards (IFRS), the South African Companies 
Act and the regulations of the JSE Limited and are prepared under the historical
cost convention, as modified by the revaluation of available-for-sale financial 
investments, and financial assets and financial liabilities (including          
derivative instruments) at fair value through the income statement or the       
statement of changes in equity. The principal accounting policies used by the   
group are consistent with those of the previous year, unless otherwise stated.  
Changes in accounting policies                                                  
The group has adopted the following accounting standards and interpretations of 
standards (IFRIC) as at 1 July 2005:                                            
- IAS 16 Property, plant and equipment (revised) - impact described below       
- IAS 21 The effects of changes in foreign exchange rates (revised) - no impact 
- IAS 39 Financial Instruments: Recognition and Measurements (revised) - no     
- IFRS 4 Insurance contracts - no impact                                        
- IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - no      
- IFRIC 6 Liabilities arising from Participating in a Specific Market - Waste   
Electrical and Electronic Equipment - no impact                                 
- IFRIC 7 Applying the Restatement Approach under IAS 29 (Financial Reporting in
Hyperinflationary Economies) - no impact                                        
- IFRIC 8 Scope of IFRS 2 (Share Based Payments) and AC 503 Accounting for BEE  
Transactions - impact described below                                           
- IFRIC 9 Reassessment of Embedded Derivatives - no impact                      
IAS 16 Property, plant and equipment                                            
The adoption of IAS16 (revised) requires the group to identify significant      
components of property, plant and equipment and to annually reassess the        
remaining useful lives and residual values of tangible assets at each financial 
year end. Any reassessment performed is applied prospectively and requires the  
depreciation charge to be amended for current and future periods only. The group
changed the fixed period amortisation for certain assets to the remaining useful
lives as the basis for amortisation. The rehabilitation assets have been        
included in determining the cost of tangible assets. The prospective adoption of
this standard has not resulted in a material change in the amortisation charge  
for the year.                                                                   
IFRIC 8 Scope of IFRS 2 (Share Based Payments) and AC 503 Accounting for BEE    
Transactions with BEE entities involving the granting or selling of shares at a 
price less than their fair value are expensed through the income statement as a 
share-based payment charge. The impact on these financials statements is        
reflected in the income statement as a BEE compensation charge of R95.3 million 
in the current year resulting in a reduction in earnings per share of 145 cents.
The financial statements have been audited by PricewaterhouseCoopers Inc whose  
unqualified opinion is available for inspection at the registered office of     
Headline earnings per share (cents)                                             
                               2006   % Change        2005                      
- basic                       6,006       38.9       4,325                      
- diluted                     5,989       38.6       4,322                      
The calculation of headline earnings per share is derived from profit of        
R4,345.4 million (2005: R5,237.6 million) adjusted for any non-operational gains
and losses (net of tax), divided by the weighted average number of shares in    
issue. Adjustments to profit were made for sale of prospecting right (R95.7     
million), sale of investment (R5.2 million), impairment write back (R421.6      
million) and investment written off R127.1 million. (2005: impairment of assets 
R849.8 million, sale of a toll refining contract (R72.1 million) and profit on  
sale of Lonplats (R3,155.0 million)).                                           
During the year under review, the group acquired a further 0.1 million (2005:   
1.3 million) shares in Zimplats Holdings Limited for an amount of R1.5 million  
(2005: R22.2 million) (AU$ 0.3 million (2005: AU $4.8 million)).                
Capital expenditure approved at 30 June 2006 amounted to R11,856.2 million      
(2005: R9,473.4 million) of which R2,338.6 million (2005: R2,595.5 million) is  
already contracted. This expenditure will be funded internally and if necessary,
from borrowings.                                                                
Contingent liabilities and guarantees                                           
At year end the group had contingent liabilities in respect of bank and other   
guarantees and other matters arising in the ordinary course of business from    
which it is anticipated that no material liabilities will arise.                
2006    2005              
Related party contingencies                                                     
Aquarius Platinum (South Africa) (Proprietary)           -   146.3              
Two Rivers Platinum (Proprietary) Limited            210.6       -              
Collateral security for employee housing and           2.7     3.2              
Withholding tax on dividends                             -    16.0              
Department of Minerals and Energy                    296.9   288.0              
Eskom                                                 17.2    17.2              
Registrar of Medical Aids                              5.0     5.0              
Total guarantees                                     532.4   475.7              
Impala Platinum Limited has received a notice from the South African Revenue    
Services (SARS) that it will disallow an amount in respect of the 1999 financial
year for the prepaid royalty to the Royal Bafokeng Nation. An amount of R159.2m 
consisting of penalties and interest was levied by the tax authorities. An      
official objection has been lodged by the company which maintains its position  
that this amount is not due to SARS.                                            
BTX Mining, a contract miner for Barplats Limited, has lodged a claim for an    
amount of R49.0 million against Impala Platinum Limited following the closure of
the Barplats Mine. The company maintains its position that the claim lacks merit
and therefore no amount is due to BTX Mining.                                   
Due to the uncertainties regarding the timing and amounts, if any, potential    
outflows cannot be quantified.                                                  
Operating Statistics                                                            
for the year                              2006      2005  Variance              
ended 30 June                                                    %              
Gross refined production                                                        
Platinum                   (`000 oz)     1,846     1,848     (0.1)              
Palladium                  (`000 oz)       989     1,029     (3.9)              
Rhodium                    (`000 oz)       242       234       3.4              
Nickel                     (`000 t)       15.6      16.0     (2.5)              
Impala refined production                                                       
Platinum                   (`000 oz)     1,125     1,115       0.9              
Palladium                  (`000 oz)       492       515     (4.5)              
Rhodium                    (`000 oz)       129       130     (0.8)              
Nickel                     (`000 t)        7.9       7.9         -              
IRS refined production                                                          
Platinum                   (`000 oz)       721       733     (1.6)              
Palladium                  (`000 oz)       497       514     (3.3)              
Rhodium                    (`000 oz)       113       104       8.7              
Nickel                     (`000 t)        7.7       8.1     (4.9)              
IRS returned metal (Toll                                                        
Platinum                   (`000 oz)       246       246         -              
Palladium                  (`000 oz)       190       160      18.8              
Rhodium                    (`000 oz)        42        54    (22.2)              
Nickel                     (`000 t)        2.2       1.9      15.8              
Group consolidated                                                              
Exchange rate:             (R/$)                                                
Closing rate on 30 June                   7.16      6.66       7.5              
Average rate achieved                     6.37      6.20       2.7              
Free market price per                                                           
ounce sold                 ($/oz)        1,791     1,304      37.3              
Revenue per platinum       ($/oz)        1,721     1,279      34.6              
ounce sold                                                                      
                           (R/oz)       10,963     7,930      38.2              
Prices achieved                                                                 
Platinum                   ($/oz)          988       840      17.6              
Palladium                  ($/oz)          258       208      24.0              
Rhodium                    ($/oz)        3,015     1,217     147.7              
Nickel                     ($/t)        15,343    14,592       5.1              
Sales volumes                                                                   
Platinum                   (`000 oz)     1,582     1,562       1.3              
Palladium                  (`000 oz)       896       826       8.5              
Rhodium                    (`000 oz)       193       177       9.0              
Nickel                     (`000 t)       14.8      14.6       1.4              
Financial ratios                                                                
Gross margin achieved      (%)            41.8      33.7      24.0              
Return on equity*          (%)            28.0      26.8       4.5              
Return on assets*          (%)            26.5      24.0      10.4              
Current ratio                            1.5:1     2.3:1    (34.8)              
Operating indicators                                                            
Tonnes milled ex-mine      (`000 t)     20,197    19,315       4.6              
PGM refined production     (`000 oz)     3,490     3,549     (1.7)              
Capital expenditure        (Rm)          2,248     1,992      12.9              
                           ($m)            352       322       9.3              
Group unit cost per        (R/oz)        5,032     4,548    (10.6)              
platinum ounce                                                                  
                           ($/oz)          788       735     (7.2)              
Impala business segment                                                         
Tonnes milled ex mine      (`000 t)     16,441    15,778       4.2              
Total cost per tonne       (R/t)           325       300     (8.3)              
                           ($/t)            51        49     (4.1)              
Pgm refined production     (`000 oz)     2,003     2,062     (2.9)              
Cost per PGM ounce         (R/oz)        2,666     2,298    (16.0)              
                           ($/oz)          417       371    (12.4)              
Cost per platinum ounce                                                         
Total cost of operations   (R/oz)        4,745     4,251    (11.6)              
                           ($/oz)          743       687     (8.2)              
Net of revenue                                                                  
received for                                                                    
other metals               (R/oz)          812     1,872      56.6              
                           ($/oz)          127       302      57.9              
Capital expenditure        (Rm)          1,601     1,693       5.4              
                           ($m)            250       274       8.8              
Total Impala labour        (`000)         26.9      26.9         -              
m2 per stoping employee    (m2/empl)      38.0      40.1     (5.2)              
Based on headline earnings                                                      
Extracts from the Annual Report                                                 
The group continued to make steady progress in reducing workplace injuries and  
achieved a lost time injury frequency rate (LTIFR) at 3.41 per million manhours 
and a fatal injury frequency rate (FIFR) at 0.063 per million manhours which are
at all time lows.                                                               
Over the past five years, both the LTIFR and FIFR have improved by approximately
60%. In the past financial year, LTIFR improved at all Implats" operations with 
the exception of Zimplats, which nevertheless remains the best performer in the 
group with respect to safety.                                                   
It is however with regret that Implats reports that during the past year seven  
fatalities occurred at Impala Platinum of which three were caused by falls of   
ground. Behaviour-based safety initiatives and a continued focus on reducing    
injuries caused by falls of ground through improved understanding of rock       
engineering and support systems remain the cornerstones of safety initiatives   
within the Group, and particularly at deep-level mining operations. Renewed     
efforts will be required to drive Implats towards its long term goal of zero    
The strength of the market for platinum group metals (PGMs) continued unabated, 
particularly for platinum and rhodium. The price of platinum reached an all-time
high of $1,335 per ounce in May 2006, while rhodium exceeded $6,000 per ounce in
the same month. Dollar revenues per platinum ounce sold rose by 35%, while rand 
revenues were 38% higher owing to the depreciation of the local currency.       
Key operating and financial performance indicators pertaining to the business   
for the period under review are:                                                
-    Gross platinum production was virtually unchanged at 1.846 million ounces, 
with 1.125 million ounces (61%) deriving from the Impala lease area.            
-    Sales were up 40% on FY2005, reaching a record R17.5 billion ($2.7         
billion). This was as a result of strong dollar metal prices.                   
-    The average rand/dollar exchange rate was R6.37/$ for the year, with the   
closing rand:dollar exchange rate at R7.16/$.                                   
-     Cost of sales rose by 22% mainly due to the higher costs of metals        
-     Group unit cost per platinum ounce refined excluding share based payments 
was up 8.7% over the period, in part as a result of a 6.5% wage and benefits    
increase granted at Impala Platinum during the period, and aggravated by lower  
than expected grade and extra costs associated with the 4.6% increase in tonnes 
-     Profit decreased year-on-year to R4.4 billion ($693 million) due to the   
impact of the extraordinary profit from the Lonplats sale in the previous year. 
-     Headline earnings per share rose by 39% to 6,006 cents per share (949 US  
cents per share, which is an increase of 37% in dollar terms).                  
-     Gross margins for the Group improved to 42% from 34% in the previous year,
while Impala Platinum improved to 53%.                                          
Black Economic Empowerment                                                      
Black Economic Empowerment (BEE) has been a key focus for the Group during the  
At the Impala Platinum level, the company has entered into three separate       
transactions to enable it to achieve BEE equity ownership of an estimated 26%.  
These are:                                                                      
-     The sale of our stake in Lonplats" Eastern and Western Platinum mines in  
September 2004 which led directly to the creation of Incwala Resources, a BEE-  
resources company.                                                              
-     The transaction with Royal Bafokeng Resources (RBR), our long-term        
partner, in December 2005 whereby the RBR will ultimately hold approximately a  
9% stake in Implats. A great deal of effort has gone into making this           
transaction stand out from other BEE deals, making it sustainable, providing the
RBR with access to cash flows from the outset and ensuring that it is broad-    
-     The creation of an Employee Share Ownership Programme (ESOP) which ensures
that some 28,000 lowest level employees will have a direct interest in the      
equity of Implats.                                                              
Once these transactions have all been completed, the BEE stake at the Impala    
Platinum level will exceed the 26% required by South African minerals           
At Marula Platinum, agreements have been signed with three BEE-representative   
entities, namely Tubatse Platinum, the Marula Community Trust and Mmakau Mining,
to acquire a combined 22.5% stake in the operation. This falls just short of the
target of 26% BEE ownership by 2014. Once again, every effort has been made to  
ensure that this transaction is affordable, sustainable and broad-based.        
Impala Platinum                                                                 
Record production of 1.125 million platinum ounces was achieved which was about 
30,000 platinum ounces less than expected owing to lower than expected grades,  
slower-than-expected improvements in mining efficiencies and the loss of three  
shifts in the second half of the year due to union confederation Cosatu"s       
national stayaway.                                                              
Mill grades deteriorated by 4% from the previous year, due to failure to improve
overall dillution required to offset the lower grade from the increased         
mechanised tonnage. Furthermore, the expected benefits from in-stope drill jigs 
have not yet fully materialised as the learning curve related to their          
implementation appears now to be longer than had been planned.                  
Good progress is being made with the 16 and 20 shaft projects to ensure         
continued annual production of between 1.1 to 1.2 million platinum ounces per   
annum. The last of the third generation shafts, 20 shaft, will reach full       
production of 185,000 tonnes per month in 2011 (166,000 ounces of platinum      
annually), while 16 shaft, the first of the fourth generation shafts will       
produce 225,000 tonnes per month (192,000 ounces of platinum annually) at full  
production in 2015. Implats" total capital investment in these two shafts will  
amount to R6.6 billion.                                                         
Conceptual investigations are currently underway at Impala Platinum"s Mineral   
Processing and Refining operations that could ultimately increase smelter       
capacity to 2.8 million ounces of platinum per annum at an estimated cost of    
R750 million. In March 2006, the company announced that it would embark on a    
R150 million capital upgrade of the No 4 furnace, bringing total nameplate      
capacity of 2.3 million ounces per annum, and allowing for both planned and     
unplanned furnace maintenance periods.                                          
Impala Platinum"s Refineries continued to deliver an excellent performance, not 
only for Impala, but also for Impala Refining Services (IRS), which markets and 
sells the excess capacity not used by Impala. Expansion of the Precious Metals  
Refinery from 2.0 to 2.3 million ounce nameplate capacity at a cost of R50      
million is currently underway, as is a feasibility study to increase the Base   
Metals Refinery"s capacity from 2.0 to 2.3 million ounces of platinum per annum.
Steady progress is being made at Marula Platinum with production of platinum-in-
concentrate up by 34% on last year although this was admittedly at a slower rate
than had been anticipated. The implementation of the off-reef development plan  
is exceeding expectations and is four months ahead of schedule. Plans remain on 
schedule to achieve full production by the end of the 2009 financial year.      
Two Rivers                                                                      
The Two Rivers Platinum mine, which commenced mining this year, will reach full 
production in 2008 and will provide significant additional growth to Implats"   
portfolio over the next five years. Its rapid ramp up to full production has    
been a credit to our partners at African Rainbow Minerals Limited (ARM), and to 
the combined ARM/Implats team that has been involved in the project. This mine  
will produce about 120,000 ounces of platinum per annum, over a 20-year life-of-
mine. The decision to undertake trial mining prior to startup has enabled       
management to determine the optimal mining method for the orebody.              
Implats" conservative and consistent approach to its operations in Zimbabwe was 
rewarded in May 2006 when, following extensive negotiations with the Government 
of Zimbabwe, Implats" subsidiary Zimplats was able to reach agreement with the  
Government on the release by Zimplats of a portion of its mining claims (some   
36% of the company"s resource base on the Great Dyke, equivalent to 51 million  
ounces of platinum) in exchange for a combination of empowerment credits and    
cash. In return, the company expects to receive security of tenure in respect of
Zimplats" long-term expansion programme in terms of a special mining lease      
regime which will allow for operations of at least 1 million ounces of platinum 
per annum over a 50-year life-of-mine.                                          
The Zimplats and Implats boards announced the immediate approval of Phase 1 of  
the long-term expansion plan, and the replacement of the remaining opencast     
operation with underground operations. The simultaneous development of two new  
underground mines at Ngezi, the further transition of existing opencast         
operations to underground mines and the construction of a 1.5 million-tonne per 
annum concentrator at Ngezi will require the investment of US$258 million.      
Platinum production is set to rise from the current level of 90,000 ounces per  
annum to 160,000 ounces per annum by FY2010. In addition, the mine will create  
1,200 new direct jobs, plus an estimated 3,000 contractor jobs during the three-
year construction phase.                                                        
Mimosa Platinum is a highly profitable operation and the decision by joint      
venture partners Implats and Aquarius to proceed with a US$14 million expansion 
to increase production to 85,000 platinum ounces per annum has already been     
vindicated. Incremental expansion at this operation continues to be considered. 
Impala Refining Services                                                        
Although production at Impala Refining Services (IRS) declined marginally,      
financially, its performance exceeded expectations, increasing by 53% and       
contributing 18% to group headline profit.                                      
IRS benefited from improved deliveries from Marula Platinum, and from Barplats" 
Crocodile River and Aquarius Platinum"s Everest mines. The weaker rand for most 
of the year and higher prices achieved also boosted net profit for this entity. 
IRS signed offtake agreements with Aquarius" Everest mine and the Two Rivers    
mine during the period.                                                         
A high-level committee (including several board members) is responsible for     
ensuring that Implats meets not only the objectives of South African minerals   
legislation, but also fundamentally transforms the nature of the company"s human
capital base to reflect the broader South African society. This Transformation  
Advisory Committee drives Implats" own transformation initiative, Project       
Phambili, which has started to deliver meaningful change at both a management   
and operational level.                                                          
To ensure added impetus to the group"s transformation strategy and the effective
implementation thereof, a sub-committee of the board has been constituted       
comprising executive directors, selected executives and several non-executive   
STRATEGIC ISSUES                                                                
In November 2005, Implats advised the market that it would be withdrawing from  
the Ambatovy nickel project. Having been involved in the processing of nickel   
for the last 30 years, the project initially promised to deliver favourable     
returns and would have enabled the company to leverage its Base Metals Refinery 
competencies, expertise and infrastructure, thereby achieving significant       
economies of scale. Regrettably, the project did not meet our hurdle rates.     
Nickel remains a core competency for the company and thus in April 2006, Implats
signed an option agreement with Jubilee Platinum regarding its prospective      
Ambodilafa project in Madagascar, which has the potential to host significant   
nickel-copper and platinum group elements mineralisation.                       
Implats" philosophy has always been to pay out to shareholders cash generated by
the company in excess of its own internal needs. In line with this, and given   
the company"s cash generative ability, the group returned to shareholders R2.2  
billion ($344 million) in ordinary dividends and R3.6 billion ($563 million) in 
a special dividend declared in February 2006. This contributed to a total return
to shareholders for FY2006 of 136%. Over the past five years, total shareholder 
returns have averaged 30% annually. This was in large measure possible given the
average growth of 8% per annum in sales revenue.                                
Shareholders will be aware that in July 2006 the board announced that Keith     
Rumble would be leaving the company at the end of 2006 and that David Brown,    
currently the CFO of Implats, would be assuming the role of CEO from 1 September
Prospects for PGMs remain sound. Tightening emission legislation world-wide and 
increased vehicle sales will continue to underpin the platinum, palladium and   
rhodium markets going forward. While the fundamentals for palladium continue to 
improve, Russian and Swiss stockpiles should cap any runaway in prices. Rising  
world-wide nickel production is likely to ease recent pressure on record prices.
Looking forward the group expects production to exceed 2 million ounces of      
platinum in FY2007 and remains confident of its ability to increase production  
to its stated target of 2.3 million ounces of platinum per annum by 2010. Given 
current market circumstances, margins are expected to be maintained. Capital    
expenditure is set to continue to rise to R2.9 billion in FY2007, due mainly to 
the 16 and 20 shaft projects, the smelter upgrade at Impala Platinum, and the   
Phase 1 expansion at Zimplats.                                                  
In line with current market conditions and an increase in production, headline  
earnings are expected to be higher in the 2007 financial year.                  
Fred Roux           Keith Rumble                                                
Chairman            Chief Executive Officer                                     
25 August 2006                                                                  
Declaration of Final Dividend                                                   
A final dividend of 2,200 cents per share has been declared in respect of the   
year ended 30 June 2006. The last day to trade ("cum" the dividend) in order to 
participate in the dividend will be Friday, 15 September 2006. The share will   
commence trading "ex" the dividend from the commencement of business on Monday, 
18 September 2006 and the record date will be Friday, 22 September 2006.        
The dividend is declared in the currency of the Republic of South Africa.       
Payments from the London transfer office will be made in United Kingdom currency
at the rate of exchange ruling on 20 September 2006 or on the first day         
thereafter on which a rate of exchange is available.                            
The dividend will be paid on Tuesday, 26 September 2006. Share certificates may 
not be dematerialised or rematerialised during the period 18 September 2006 to  
22 September 2006, both dates inclusive.                                        
By order of the board                                                           
R Mahadevey                                                                     
Group Secretary                                                                 
25 August 2006                                                                  
CORPORATE INFORMATION                                                           
IMPALA PLATINUM HOLDINGS LIMITED                                                
(Incorporated in the Republic of South Africa)                                  
Registration No. 1957/001979/06                                                 
Share code: IMP/IMPO        ISIN: ZAE 000003554                                 
LSE: IPLA                   ADR"s: IMPUY                                        
("Implats" or "the company")                                                    
Registered Office                                                               
3rd Floor, Old Trafford 4, Isle of Houghton, Boundary Road, Houghton 2198 (PO   
Box 61386, Marshalltown 2107)                                                   
Transfer Secretaries                                                            
South Africa: Computershare Investor Services 2004 (Pty) Limited                
70 Marshall Street, Johannesburg 2001. (PO Box 61051, Marshalltown 2107)        
United Kingdom:                                                                 
Computershare Investor Services PLC                                             
The Pavilons, Bridgwater Road, Bristol, BS99 IAZ                                
FJP Roux (Chairman), KC Rumble (Chief Executive Officer), S Bessit, DH Brown, CE
Markus, JM McMahon*, MV Mennell, TV Mokgatlha, K Mokhele, NDB Orleyn, LJ Paton, 
JV Roberts, LC van Vught.          *British                                     
Date: 25/08/2006 08:00:22 AM Produced by the JSE SENS Department