Impala Platinum Hldg 1st Quarter Production Report

 
TIDMIPLA 
 
FIRST QUARTER 
 
                               PRODUCTION REPORT 
 
 
                  FOR THE PERIOD 01 JULY TO 30 SEPTEMBER 2012 
 
 
 
 
 
 
 
                                         Unaudited      Unaudited 
   Operational information             Quarter ended  Quarter ended 
                                        30 September   30 September 
                                             12             11 
 
Implats Gross Refined 
Production 
 
Platinum                         000oz            454            388 
 
Palladium                        000oz            287            251 
 
Rhodium                          000oz             56             53 
 
Nickel                        000tonne           3.80           3.84 
 
 
 
Impala 
 
Tonnes Milled*                     000          3 223          3 759 
 
Grade (6E)*                        g/t           4.24           4.53 
 
Merensky Milled*                     %             43             45 
 
Refined Platinum Production      000oz            193            249 
 
 
 
Marula 
 
Tonnes Milled                      000            409            395 
 
Grade (6E)                         g/t           4.22           4.30 
 
Platinum in Concentrate          000oz             18             18 
 
 
 
Zimplats 
 
Tonnes Milled                      000          1 056          1 060 
 
Grade (6E)                         g/t           3.54           3.57 
 
Platinum in Matte                000oz             40             45 
 
 
 
Mimosa 
 
Tonnes Milled                      000            616            592 
 
Grade (6E)                         g/t           3.96           3.91 
 
Platinum in Concentrate          000oz             28             27 
 
 
 
IRS 
 
Refined Platinum Production      000oz            261            139 
 
 
 
Group Unit Costs (excluding      R/oz          15 326         11 348 
SBP) 
 
 
 
Prices Achieved 
 
Platinum                          $/oz          1 444          1 774 
 
Palladium                         $/oz            598            773 
 
Rhodium                           $/oz          1 171          1 801 
 
Nickel                         $/tonne         15 785         22 062 
 
Average exchange rate              R/$           8.25           7.01 
 
 
*The ex-mine tonnage, grade and % Merensky statistics tabulated above excludes 
low grade material from surface sources. 
 
 
 
SAFETY 
 
There was one fatal accident during the first quarter of FY2013. Joseph 
Matatiele, a contractor with Triple M Mining, lost his life in a scraper winch 
related incident at 9 Shaft at Impala Rustenburg.  The Board and management 
team extend their sincere sympathies to the family, friends and colleagues of 
Joseph. 
 
 
 
The fatality injury frequency rate improved from 0.087 to 0.027 per million man 
hours worked.  The Lost Time Injury Frequency rate improved to 4.72 per million 
man hours worked from 4.96 for FY2012.  The number of self-imposed work 
stoppages has increased in the drive to improve safety performance.  The number 
of Section 54 notices issues during the quarter declined to 10 compared to 24 
in the corresponding period a year ago.  A new health and safety policy was 
adopted by the Implats board in August 2012 and a new business plan has been 
developed to address safety issues and improve performance. 
 
 
 
PRODUCTION 
 
Gross platinum production increased by 17% to 454 000 ounces for the quarter 
compared with the corresponding period a year ago.  Lower production at 
Rustenburg due to the prolonged ramp-up was more than offset by once-off 
processing of toll material and an inventory release following the build-up in 
the latter part of the previous financial year. 
 
 
 
Impala 
 
Mill throughput and grade declined by 14% and 6% to 3.2 million tonnes and 4.24 
g/t respectively.  This coupled with a 12 000 ounce smelter build-up resulted 
in refined platinum production falling by 22% to 193 000 ounces. 
 
 
 
Operational performance continues to be impacted by the uncertain labour 
climate and as a result still remains well below planned levels.  The ramp-up 
to full production which was anticipated to be completed by the end of the 
first quarter has not been achieved.   Currently the mine is operating at 
between 80 to 85% of FY2011 production levels.  A number of key initiatives 
have been launched to improve mining quality factors and lower than planned 
development rates. 
 
 
 
Marula 
 
Tonnes milled at Marula rose by 4% to 409 000.  However, a 2% decline in head 
grade to 4.22 g/t due to lower production from the relatively higher-grade 
Clapham conventional section due to conveyor belt disruptions resulted in 
platinum production in concentrate remaining unchanged at 18 000 ounces. 
 
 
 
Zimplats 
 
The planned shutdown of the smelter during August and September for routine 
maintenance resulted in platinum production in matte falling by 11% to 40 000 
ounces.  The Phase 2 expansion to 270 000 ounces of platinum has been slowed as 
a result of the recently implemented capital preservation measures and will now 
be completed in 2015. 
 
 
 
Management remains in negotiation with the Government of Zimbabwe on the 
finalisation of the agreed indigenisation plan.  As previously announced the 
company received a revised Income Tax assessment for the period 2007 to 2012. 
This assessment disallowed the claiming of capital expenditure in full in the 
year incurred as set out in the Special Mining Lease on the basis that the 
legislation to give legal effect to this matter had not been promulgated.  An 
amount of US$33.2 million will be paid over the twelve month period commencing 
October 2012.  The company has lodged an objection to the additional payment of 
penalties and interest. 
 
 
 
Mimosa 
 
An increase in both tonnes milled and grade resulted in a corresponding 
improvement in platinum production in concentrate to 28 000 ounces.  This 
remains in line with steady-state refined production of 100 000 ounces of 
platinum.  Discussions are ongoing regarding Mimosa's proposed indigenisation 
plan. 
 
 
 
IRS 
 
Throughput at IRS increased by 88% to 261 000 ounces of platinum despite a 
further decrease in non-managed purchased production.  This was due to the 
treatment of a significant amount of once-off toll material compared to none in 
the corresponding period a year ago. 
 
 
 
Group Unit Costs 
 
The unit cost per platinum ounce continued to be adversely effected by 
inflation and lower volumes, and rose by approximately 35% to R15 326.  The 
combination of wage pressures in South Africa and a weaker Rand in Zimbabwe 
accounted for the bulk of the 15% increase in cash costs, while the balance was 
primarily due to lower volumes, as a result of the protracted ramp-up in 
production and poor mining quality at Impala Rustenburg. 
 
 
 
16 November 2012 
 
 
 
Enquiries should be directed to: 
 
Bob Gilmour - Group Executive: Corporate Relations 
 
[phone]/43 
 
[phone] 
 
[e-mail] 
 
 
 
END