Third Quarter Production Report

 
TIDMIPLA 
 
Impala Platinum Holdings Limited 
 
(Incorporated in the Republic of South Africa) 
 
(Registration number 1957/001979/06) 
 
ISIN: ZAE000083648 
 
JSE code: IMP 
 
LSE code: IPLA 
 
ADR code: IMPUY 
 
("Implats") 
 
IMPLATS THIRD QUARTER PRODUCTION REPORT 
 
FOR PERIOD 01 JANUARY TO 31 MARCH 2012 
 
Operational 
information 
                                    Unaudited   Unaudited   Unaudited   Unaudited 
                                     Quarter     Quarter       Nine        Nine 
                                      ended       ended       months      months 
                                    31 March    31 March     31 March    31 March 
                                      2012        2011         2012        2011 
 
Implats Gross Refined 
Production 
 
Platinum                  000oz         230         425       1 076       1 377 
 
Palladium                 000oz         160         280         688         903 
 
Rhodium                   000oz          40          63         158         192 
 
Nickel                 000tonne         3.6         3.9        11.4        12.3 
 
Impala1 
 
Tonnes Milled*              000       1 091       2 994       7 937      10 800 
 
Grade (6E)*                 g/t        4.43        4.59        4.46        4.63 
 
Merensky Milled*              %          39          44          44          42 
 
Refined Platinum          000oz          76         222         566         722 
Production 
 
Marula 
 
Tonnes Milled               000         320         303       1 127       1 190 
 
Grade (6E)                  g/t        3.99        4.39        4.17        4.37 
 
Platinum in               000oz          13          14          49          55 
Concentrate 
 
Zimplats 
 
Tonnes Milled               000       1 069       1 007       3 239       3 085 
 
Grade (6E)                  g/t        3.54        3.54        3.54        3.58 
 
Platinum in Matte         000oz          45          42         137         131 
 
Mimosa 
 
Tonnes Milled               000         578         566       1 725       1 704 
 
Grade (6E)                  g/t        3.94        3.91        3.93        3.89 
 
Platinum in               000oz          26          26          79          77 
Concentrate 
 
IRS2 
 
Refined Platinum          000oz         154         203         510         655 
Production 
 
Prices Achieved 
 
Platinum                   $/oz       1 547       1 779       1 639       1 656 
 
Palladium                  $/oz         667         791         697         636 
 
Rhodium                    $/oz       1 409       2 370       1 671       2 292 
 
Nickel                  $/tonne      18 964      26 720      19 921      23 104 
 
Average exchange rate       R/$        7.79        7.02        7.62        7.11 
 
Unit Cost after off                  20 081    10 734**      12 970    10 414** 
reef capitalisation 
 
  * Incorporates the recent six week strike at Impala Rustenburg. 
 
  * Third party material impacted by the treatment of Lonmin material in the 
    comparable FY2011 quarter. 
 
*      The ex-mine tonnage, grade and % Merensky statistics tabulated above 
excludes the low grade material from surface sources. 
 
**     Not restated for off-reef capitalisation. 
 
Safety 
 
Three of our employees lost their lives at work during the third quarter of 
FY2012. Two fatalities occurred at Impala Rustenburg as a result of underground 
incidents. Matona Koenyama lost his life due to a truck and tramming incident, 
and Dumisani Neewell Choqha as a result of a fall of ground. At Marula, 
Malefetsane Michael Likotsi drowned in shallow water underground. The medical 
causes are still under investigation. The Board and Management Team extend 
their sincere sympathies to the families, friends and colleagues of our 
deceased employees. 
 
The Lost Time Injury Frequency Rate ("LTIFR") year to date deteriorated to 5.00 
per million man hours worked from 4.94 for FY2011. The issuance of Section 54 
notices in terms of the South African Mines Health and Safety Act during the 
third quarter resulted in the loss of approximately 5 000 ounces of platinum 
production, down from the first six months where 8 000 and 25 000 ounces were 
lost in the first and second quarters respectively. A direct comparison is, 
however, difficult to make as production in the third quarter was severely 
impacted by the industrial action at Impala Rustenburg. The company remains 
committed to working together with the Department of Mineral Resources ("DMR") 
to eliminate fatalities and other injuries in our work environment and, to this 
end, continues to focus on building and maintaining a professional relationship 
with the regulatory authorities. 
 
Production 
 
Gross platinum production declined by 46% or by 195 000 to 230 000 ounces for 
the quarter compared with the corresponding period a year ago. The strike 
resulted in significantly lower production at Impala Rustenburg while a 
reduction of third party ounces impacted Impala Refining Services ("IRS"). 
While both palladium and rhodium were similarly affected, the effect on nickel 
was mitigated by the processing of nickel sulphate stocks. 
 
Impala 
 
Tonnes milled were down 64% to 1.09 million tonnes while platinum ounces 
declined by 146 000. This was due to the strike (120 000 ounces lost 
production), the subsequent ramp-up in production (21 000 ounces lost 
production) and Section 54 stoppages (5 000 ounces lost production). As a 
consequence platinum production fell to 76 000 ounces. Merensky throughput 
declined to 39% due to a change in the mined ratio during the strike as the UG2 
opencast operation remained unaffected by the work stoppage. 
 
Marula 
 
Tonnes milled increased by 6% to 320 000. However, a higher proportion of 
on-reef development resulted in a 9% decrease in grade and a consequent 
marginal decline in platinum production in concentrate to 13 000 ounces. 
 
Zimplats 
 
Platinum production in matte rose by 7% to 45 000 ounces in line with the 
corresponding increase in tonnes milled to 1.07 million. The Phase 2 expansion 
project remains on schedule to increase production to 270 000 ounces of 
platinum in FY2014. 
 
On 13 March 2012, the company presented a new indigenisation plan to the 
Government of Zimbabwe. The Government of Zimbabwe has agreed in principle that 
the plan is compliant with the law and is acceptable. In terms of the proposal, 
10% of Zimplats will be issued to the Community Trust, and 10% to an Employee 
Share Ownership Trust. Following compensation at fair value in lieu of 
empowerment credits for previously released ground, Zimplats will make 
available for sale a 31% fully contributory stake in Zimplats for cash at an 
independently determined fair value to broad based indigenous Zimbabwe 
groupings. Management remain in negotiations with the Government of Zimbabwe to 
finalise the agreed plan. 
 
Mimosa 
 
At Mimosa production of 26 000 ounces of platinum is in line with steady state 
production. Mimosa remains in discussions with the Government of Zimbabwe 
regarding the company's indigenisation plans. 
 
IRS 
 
Throughput at IRS was impacted by lower volumes from both Crocodile River and 
recycling, as well as the fact that 27 000 ounces of once-off Lonmin toll 
material was processed in the corresponding period a year ago. As a consequence 
refined platinum production declined by 24% quarter on quarter. 
 
Group Unit Costs (excluding SBP) 
 
Group unit costs per platinum ounce produced excluding share-based payments, 
when compared to the corresponding period a year ago, were severely impacted by 
the strike at Impala Rustenburg. 
 
Post third quarter events 
 
Subsequent to the end of the third quarter, Impala Rustenburg continued its 
ramp-up but has not yet reached full production. In April the operation 
produced 50 000 ounces of platinum. As of the beginning of May production had 
reached 75% of budgeted production levels and full production is expected to be 
achieved in June 2012. 
 
In order to address the grievances of the rock drill operators (RDO's) and in 
recognition of their unique skills and expertise, the company has promoted 
these employees to a higher grade which incorporated a salary adjustment to 
better align them to the company's stated remuneration philosophy and to 
reflect the unique role they play in the production teams. The company also 
approved an early implementation of the agreed annual increase. An additional 
adjustment where job categories did not match the required market position were 
made. Management continues to engage with all parties in order to move to full 
production and ensure employee affiliations are resolved. 
 
Currently, the company is undertaking a union membership verification. To date 
10 813 employees have confirmed their resignation from the National Union of 
Mineworkers ("NUM"). This has reduced the NUM membership amongst employees 
within the bargaining unit. The Association of Mineworkers and Construction 
Union ("AMCU") claims membership of over 8 000 employees and has approached the 
company for organisational rights. Membership levels are currently being 
verified. 
 
In April 2012, there were two negative aspects reported in the media. A 
misleading article was printed in the press with regard to Implats' handling of 
the death of a contractor. A response to the article was made available to the 
media and is on the company's website. On 24 May 2012, all the criminal charges 
against Implats were withdrawn by the State. During the strike a video was used 
to intimidate employees and was subsequently aired by the media. Our 
investigation has revealed that this material was neither filmed during the 
recent strike nor at Impala Rustenburg. 
 
Johannesburg 
 
29 May 2012 
 
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited 
 
Enquiries should be directed to: 
 
Bob Gilmour (Group Executive: Corporate Relations) 
 
[phone]/43 
 
[phone] 
 
[e-mail] 
 
 
END