IMPALA PLATINUM HOLDINGS LIMITED - Consolidated interim results (reviewed) for the six months ended 31 December 2014
26 February 2015 7:05
IMP 201502260003A
Consolidated interim results (reviewed) for the six months ended 31 December 2014
Impala Platinum Holdings Limited
(Incorporated in the Republic of South Africa)
Registration No 1957/001979/06
JSE share code: IMP
ISIN: ZAE000083648
ADRs: IMPUY
(“Implats” or “the Company” or “the Group”)
Consolidated interim results (reviewed) for the six months ended 31 December 2014
Our vision
Our vision is to be the world’s best platinum-producing company, delivering superior returns to stakeholders relative
to our peers.
Our mission
To safely mine, process, refine, recycle and market our products at the best possible cost, ensuring sustainable value
creation for all our stakeholders.
Our values
We respect
- All our stakeholders, including:
* Shareholders
* Employees and their representative bodies
* Communities within which we operate
* Regulatory bodies
* Suppliers and customers
* Directors and management
* All other interested and affected parties
- The principles of the UN Global Compact
- The laws of the countries in which we operate
- Company policies and procedures
- Our place and way of work
- Open and honest communication
- Diversity of all our stakeholders
- Risk management and continuous improvement philosophies.
We care
- For the health and safety of all our stakeholders
- For the preservation of natural resources
- For the environment within which we operate
- For the socio-economic well-being of the communities in which we operate.
We strive to deliver
- Positive returns to our stakeholders through an operational excellence model
- A safe, productive and conducive working environment
- On our capital projects
- A fair working environment through equitable and competitive human capital practices
- On the development of our employees
- On our commitment to all stakeholders
- Quality products that meet or exceed our customers’ expectations.
Key features
Safety
- Zero fatalities in the second quarter
- Lost-time injury frequency rate (LTIFR) improved by 11% in the first half of the 2015 financial year.
Operational performance
- Operational performance and unit costs improving as Rustenburg ramps up. Achieved stated target of
250 000 platinum ounces at Impala.
Prices
- Above-ground platinum group metal (PGM) inventories continue to depress prices.
Market
- The PGM market remains in fundamental deficit driven by increased US, European and Chinese vehicle sales
- World Platinum Investment Council (WPIC) launched.
Implats produces approximately 22% of the world’s supply of primary platinum.
During the review period, the Group produced 1.32 million ounces of PGMs, including 0.63 million ounces of platinum.
52 000 workforce, including 13 000 contractors.
Operating statistics
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2014 2013 2014
Gross refined production
Platinum (000oz) 631 786 1 178
Palladium (000oz) 413 469 710
Rhodium (000oz) 89 97 157
Nickel (t) 7 835 8 103 13 915
IRS metal returned (toll refined)
Platinum (000oz) - 91 94
Palladium (000oz) - 28 28
Rhodium (000oz) - 9 9
Nickel (t) 1 683 1 602 3 186
Sales volumes
Platinum (000oz) 611 720 1 197
Palladium (000oz) 393 426 767
Rhodium (000oz) 84 80 147
Nickel (t) 5 149 5 716 10 736
Prices achieved
Platinum (US$/oz) 1 320 1 426 1 423
Palladium (US$/oz) 823 723 737
Rhodium (US$/oz) 1 227 973 1 000
Nickel (US$/t) 17 314 13 953 14 644
Consolidated statistics
Average exchange rate achieved (R/US$) 11.01 10.09 10.36
Closing exchange rate for the period (R/US$) 11.57 10.50 10.64
Revenue per platinum ounce sold (US$/oz) 2 333 2 226 2 299
(R/oz) 25 686 22 460 23 818
Tonnes milled ex-mine (000t) 7 315 9 758 13 916
Total development (Impala) (Metres) 39 145 57 984 61 337
Gross PGM refined production (000oz) 1 317 1 550 2 370
Capital expenditure (Rm) 2 238 2 718 4 384
Group unit cost per platinum ounce (US$/oz) 2 097 1 624 1 874
(R/oz) 22 952 16 310 19 430
Commentary
Introduction
The Group’s performance in the first half of the 2015 financial year was impacted by the ramp-up of the Rustenburg
operations following prolonged industrial action across the platinum industry in early 2014, suspension of operations at
Bimha mine at Zimplats, as well as depressed platinum group metal (PGM) prices and industrial action at Marula. The ramp-up at
Rustenburg progressed well, but was interrupted by four fatal accidents and subsequent work stoppage effects. Full production
rates were achieved in November 2014.
While the underlying medium- to long-term demand drivers for PGMs remain robust, it is expected that excess metal
inventories will continue to constrain prices over the medium term. Taking cognisance of this and of the impact of the strike
on the profitability at Impala, a strategic review of the Group’s operations has been completed that will conserve cash
in the short term but nonetheless position the business to deliver sustainable returns to all stakeholders.
Market review
(All references to years in this section refer to calendar years)
The South African platinum industry had a challenging year which was exacerbated by global economic pressures and
constrained supply following the five-month platinum industry labour disruption. The strike reduced total South African
platinum production by more than 700 000 ounces in 2014. Sluggish South African supply and healthy demand, driven mainly by
the automotive sector, led to a fundamental deficit in excess of one million platinum ounces. This was offset by
above-ground inventories, which disappointingly led to depressed platinum prices throughout 2014.
The automotive industry showed good growth in the US, China and Europe in 2014. Improving economic fundamentals in the
US market supported passenger vehicle sales, which rose by 6% for the full year, the highest level since 2006. Despite
slower economic growth in China, the market posted a healthy 10% growth in passenger vehicle sales. Similarly, even
though the economy remains weak in Western Europe, growth in vehicle sales was 5% in 2014, the best progress in the past
five years. There is no reason not to expect this trend to continue given the European Central Bank stimulation programme.
Vehicle sales in Japan were disappointing after tax hikes in April. Nevertheless, the market was still able to
achieve 3.5% growth in 2014, recording a third consecutive year of increases. Globally, passenger vehicle sales are
expected to increase by 4% in 2015, to an estimated 90 million light-duty vehicles. This, together with stricter regulations
pertaining to emissions and the recent declines in fuel prices, should be positive for platinum, palladium and rhodium
demand in 2015.
Platinum jewellery market growth was flat in 2014, with demand in China remaining constant, but with lower growth in
the US and Europe offset by strong growth in India. Chinese platinum demand, which is by far the largest consumer, is
anticipated to remain largely unchanged over the next year.
The growth in demand of 155 000 ounces in platinum exchange traded funds (ETFs) was lower than last year’s strong
performance as depressed prices impacted investment decisions. Future demand is expected to be driven by the World Platinum
Investment Council (WPIC), which was launched during the period under review, and the International Platinum Association (IPA)
promotional programme. While there were some liquidations on the mature palladium ETFs, the new South African funds more than
offset these by accumulating in excess of 1.2 million ounces in 2014, resulting in the growth of global palladium ETFs in excess
of 900 000 ounces.
Muted palladium supply growth from Russia and South Africa, combined with increased demand from the automotive sector
and the new South African funds, drove palladium to a fundamental deficit in excess of 1.5 million ounces in 2014.
Safety review
Implats’ safety performance has improved significantly since the 2010 financial year. The fatal injury frequency rate
has improved by 34% over this period, while the total injury frequency and the lost-time injury frequency rates improved
by 22% and 25% respectively. Despite the overall improvement the Group deeply regrets to report that four employees and one
contractor suffered fatal injuries in August and September 2014. The board of directors and the management team have extended
their sincere and deepest sympathies to their families, friends and colleagues.
Following these tragic incidents all affected shaft and production units at Impala Rustenburg were stopped in
September 2014 for an extended period while full investigations were completed. In addition, all mining operations were
suspended for a period of four days as management actively consulted all key stakeholders, including employees, union leaders
and representatives from the Department of Mineral Resources (DMR), in a collaborative effort to improve safety at this
operation. Post these consultations, Impala Rustenburg amended its safety plan to include, among others, the
implementation of a critical safe behaviours initiative. This programme culminated in a three-day safety summit which was attended by
600 safety representatives. This will remain an ongoing initiative.
The lost-time injury frequency rate (LTIFR) improved by 11% from the end of the previous financial year to 3.47 per
million man hours worked, demonstrating the success of the various initiatives that have been undertaken to address
employee safety. Currently, Impala Services has achieved 10 million fatality-free shifts: 12 Shaft achieved five million,
Zimplats and Two Rivers two million, and 9 Shaft and 20 Shaft one million. In addition, Springs Refineries has achieved one year
without a lost-time injury and 7 and E&F Shafts have achieved a similar status for six months.
The Group’s safety strategy is premised on the achievement of zero harm, and focuses on three key areas: cultural
transformation supported by effective leadership and supervision, compliance with leading safety practices and, lastly,
creating a working environment that supports safety. Team mobilisation has been identified as a key element in ensuring the
safe behaviour of employees, with the objectives of enhancing trust, building commitment and accountability, and
achieving collective results. As at the end of December 2014, 73 stoping teams (out of a total of 515) had participated in this
intervention.
Operational review
Mine-to-market output decreased by 20.4% to 539 200 ounces of platinum from the previous comparable period, primarily
due to lower production from Impala Rustenburg, Zimplats’ Bimha Mine and Marula. Third party production decreased by
16.3% to 91 400 ounces due to one-off material treated in the previous comparable period. Gross refined platinum production
decreased by 19.8% to 630 600 ounces. Group unit costs were impacted by the lower volumes and increased by 40.7% to R22
952 per platinum ounce.
Managed operations
Impala Platinum
Impala met its stated production target for the first half of the 2015 financial year despite the interruptions caused
by the four tragic, separate fatal incidents and the subsequent closure of the mining operation for four days in
September 2014. The second restart progressed well and full production rates were achieved in November.
Mill throughput decreased by 31.5% from the previous comparable period to 4.01 million tonnes, and refined platinum
production declined by 35.2% to 252 400 ounces. Unit costs were severely impacted by the lower throughput given costs
incurred during the ramp-up and increased to R26 430 per platinum ounce refined.
Capital expenditure was strictly controlled during the period, in line with the Group’s cash preservation strategy,
and decreased by 26.6% from the previous comparable period to R1.50 billion with the bulk of this expenditure still being
incurred on the development of the new shafts.
Reef access, development and stoping have resumed at 20 Shaft and an assessment is underway to open a mechanised
section to further improve the work environment from a safety aspect and boost stoping throughput.
Zimplats
Production was impacted by the precautionary closure of Bimha Mine following the underground collapse in August 2014.
Six of the eight affected production fleets at Bimha were redeployed to offset potential production losses. Productivity
from these teams has been impacted by the constrained availability of work areas; however, this redundancy issue is
being addressed and is expected to improve. The ramp-up of production from Mupfuti Mine partially offset the lost
production, resulting in tonnes milled decreasing by only 16.9% from the previous comparable period, to 2.48 million. Head grade
was maintained at 3.47 grams per tonne and platinum in matte production decreased by 11.7% to 102 400 ounces.
Unit costs per platinum ounce in matte were affected by the lower volumes and increased by 11.8% to US$1 504. In rand
terms, unit costs rose by 21.9% to R16 455 per platinum ounce in matte, which was impacted by the weaker rand/dollar
exchange rate.
Detailed assessments to fully understand the nature and extent of the ground collapse and the structural geological
settings at Bimha Mine have been advanced, and re-development of the mine was initiated in December 2014. Three new
on-reef access haulages have been designed to isolate the existing workings and create new mining areas to the north and south
of the mine. An extensive monitoring programme remains in place to continually assess the ground conditions.
In an effort to further ameliorate the impact of re-establishing Bimha Mine, contracted open-pit mining has been
initiated to supplement the ore supply to the processing operations in order to fully utilise the available processing capacity.
Contractor mobilisation is currently in progress and first production is expected in the third quarter of the 2015 financial
year. In addition, the Phase 2 expansion (Mupfuti Mine) remains on track to achieve its expected steady-state capacity in
the third quarter of the 2015 financial year.
Zimplats continues to engage with the Government of Zimbabwe with regard to the indigenisation implementation plan and
the securing of a more conducive regulatory and fiscal framework for the mining industry in Zimbabwe.
Marula
Marula has made steady progress in opening up ore reserves but continues to be impacted by safety and labour issues.
Industrial action and safety stoppages affected efficiencies during the period and tonnes milled, at 829 000, were 10.9%
lower than the previous comparable period. Head grade declined by 2.9% to 4.14 grams per tonne and platinum in
concentrate production decreased by 10.6% to 37 000 ounces. Unit costs per platinum ounce increased by 21.0% to R22 000,
negatively impacted by the lower volumes.
Impala Refining Services (IRS)
Refined platinum production at IRS from third-party contracts decreased by 16.3%, to 91 400 ounces, due to the
once-off material treated in the previous comparable period. This impact was offset to some extent by the 30 000 ounces of
platinum reduction in the pipeline. Overall, IRS platinum production (including mine-to-market operations offtakes) decreased
by 4.7% to 378 200 ounces.
Non-managed operations
Two Rivers
Tonnes milled rose by 1.8% to 1.69 million. Head grade declined marginally to 3.97 grams per tonne due to some
lower-grade stockpile material. Platinum in concentrate production decreased by 3.1% to 87 300 ounces, and unit costs rose by
10.6% to R12 165 per platinum ounce in concentrate.
Subsequent to the half-year end, transactions to transfer the mineral rights on the Kalkfontein, Buffelshoek and
Tweefontein farms from Impala to Two Rivers, in return for an additional 4% stake in Two Rivers and a royalty agreement, have
become unconditional. These transactions have increased the Group’s shareholding in Two Rivers to 49% and will enable
Two Rivers to maintain production above 150 000 ounces of platinum in concentrate in the medium term.
Mimosa
Mill throughput increased by 5.4% to 1.30 million tonnes, and platinum production in concentrate increased by 12.4% to
59 100 ounces from the previous comparable period. Unit costs per platinum ounce in concentrate benefited from the
higher volumes and declined by 6.1% in dollar terms, to US$1 562, but increased marginally in rand terms, to R17 090. The
Government of Zimbabwe imposed a 15% export levy on unbeneficiated platinum, effective 1 January 2015. The Government had
stated that the export tax would be deferred until 1 January 2017; however, the recently promulgated 2015 Finance Bill
does not provide for this. The imposition of this levy will have a material impact on the profitability of Mimosa.
Mineral resources and mineral reserves
There has been no material change to Implats’ combined attributable mineral resources and mineral reserves, or legal
title to the mining and exploration activities, as disclosed in the integrated report for the financial year ended
30 June 2014.
The main features relating to Implats’ mineral resources and mineral reserves as at 31 December 2014, relative to 30
June 2014, are:
- Estimated total attributable mineral resources increased marginally by 0.5% (2Moz 4E) to 397Moz; the total
attributable platinum ounces increased by 0.7% (1Moz Pt) to 213Moz
- The estimated total attributable mineral reserves decreased by 9% (4Moz 4E) to 46.1Moz; the total attributable
platinum ounces decreased by 8% (2Moz Pt) to 26.5Moz. The decrease can be mainly ascribed to the reduction at Zimplats
due to a revised mine design to address ground stability.
Financial performance
The financial performance of the Group for the six months to December 2014 was significantly impacted by the ramp-up
at the Rustenburg operations following the prolonged industrial action and the temporary closure of the Bimha Mine at the
Zimplats operations.
Revenues, at R15.9 billion, were R599 million or 3.6% lower than those achieved in the six months to
December 2013, as a result of:
- A reduction in sales volumes of platinum, palladium and nickel due to lower Impala production, accounting for a
negative variance of R2 billion
- The average dollar revenue per platinum ounce sold of US$2 333, was US$107 or 4.8% higher than the prior period and
this had a positive impact but was mitigated by the lower volumes to increase revenue by a net R93 million
- The average R/US$ exchange rate achieved of 11.01 was 9.1% weaker than the 10.09 achieved during the prior
comparative period leading to a positive variance of R1.3 billion.
Cost of sales decreased by R358 million (2.4%) compared to the prior comparable period as a result of:
- Direct operating costs decreasing by R440 million or 5% as R808 million was transferred to ‘other operating
expenses’ as non-production costs during the ramp-up
- Depreciation decreased by R266 to R1.1 billion. The main contributor to this decrease was lower production for the
period
- A change in share-based compensation of R478 million moving from a charge in December 2013 of R288 million to a
credit of R190 million. This is mainly due to the closing share price of R78.78 per share at 31 December 2014
(versus R106.88 at 30 June 2014) versus the share price at 31 December 2013, which was R123.00 (R93.00 at June 2013) per share.
The above decreases were offset by metals purchased by IRS increasing by R536 million due to higher rand metal prices
and a change in metal inventories of R336 million.
As a result of the above, gross profit declined by R241 million to R1 519 million.
Group unit costs increased by 40.7% from R16 310 per platinum ounce to R22 952 per ounce due to:
- Group inflation of 10.4% comprising:
* mining inflation for the South African operations of 10.5% due to above-inflationary increases in utilities and
wages
* Zimplats inflation of 10.3% comprising dollar inflation of 1.1% compounded by a weaker rand.
- The lower mine-to-market production volumes from Impala (build-up after strike), Zimplats (closure of Bimha) and
Marula (strike and DMR stoppages) resulted in the balance of the of the 40.7% increase in unit costs.
Headline earnings, decreased by R460 million or 53.5% to R400 million (66 cents per share). Additional to the movements
described in gross profit and apart from R158 million for the partial asset write-down as a result of the Mutambara shear collapse
at Bimha which was added back for headline earnings, headline earnings was affected by the following:
- The transfer of R808 million from cost of sales to other income and expenses as mentioned above
- R200 million variance on net foreign exchange gains. The charge for the revaluation of the dollar bond was not
offset (as in the prior period) by the revaluation of positive dollar balances.
The above negative impacts were partially offset by:
- A positive variance of R387 million resulting from the revaluation of the IRS creditors due to metal prices
declining towards the end of the period
- Higher equity accounted earnings from associates in the amount of R101 million
- A reduced tax charge of R212 million due to lower taxable income.
Net cash from operating activities amounted to R160 million (December 2013: R1.9 billion). Cash utilised on capital
expenditure amounted to R2.1 billion (December 2013: R2.7 billion) mainly on 20, 16 and 17 Shafts at Impala Rustenburg. Cash
(net of overdraft) decreased from R4.3 billion at year end to R2.7 billion at December 2014. Net debt at 31 December 2014
amounted to R5.4 billion (June 2014: R3.5 billion).
Given the continued cash conservation strategy, the board has resolved not to declare an interim dividend for the six
months to 31 December 2014.
Prospects
The fundamentals for PGMs remain robust, even though excess above-ground stocks continue to impact prices. The lack of
capital investment by the platinum industry will curtail future supply from southern Africa and should, together with
expected improving demand from recovering world economies, augur well for these metals. Deficit markets, forecast for the
next three to five years, are expected to steadily erode the level of inventories, positively impacting prices in the
medium- to long-term.
Implats remains strongly focused on increased operating efficiencies and profitability, and equally on the health and
safety of employees across the Group. To further advance this, a new employee share ownership trust, which now owns 4%
of Impala Platinum Limited, was implemented to substantially increase employees’ alignment with the future profitability
of Impala. Efforts to mobilise teams, and optimise cash and capital expenditure will underpin sustainable earnings going
forward. Cash preservation does not compromise the long-term positioning of the Impala operations within the Group to
achieve 850 000 platinum ounces per annum by 2019 and to maintain this production profile if the market warrants it.
The current Eskom crisis is impacting on Implats’ South African operations. Eskom media briefings have
indicated that the country will experience a constrained power system for at least the next two to three years.
Implats is considered by Eskom to be a ‘Key Customer’ or ‘Energy Intensive User’ and Impala Rustenburg
and the Springs Refinery are considered by Eskom as one business unit. Calls from Eskom to reduce load
are therefore dealt with in Rustenburg, while the Refinery carries on with operations without additional load
curtailment. Marula is considered by Eskom as a separate business unit. There is a signed load curtailment document
(NRS 048-9) in place and when the Eskom power system becomes severly constrained, Impala Rustenburg is cautioned timeously
to implement load curtailment as per the agreement. The critical period for Eskom has typically been between 13:00 and 22:00
daily, and this is the most likely period when load curtailment is required. Implats has a comprehensive electrical power
control system in place and the electrical power usage profile has been adjusted to offset the national power grid requirements.
The Group will continue to seek energy efficiency opportunities to reduce its dependence on Eskom.
A strategic review of the Group has been conducted and is the subject of a separate announcement on 26 February 2015.
Approval of the interim financial statements
The directors of the Company are responsible for the maintenance of adequate accounting records and the preparation of
the interim financial statements and related information in a manner that fairly presents the state of the affairs of
the Company. These interim financial statements are prepared in accordance with International Financial Reporting
Standards and incorporate full and responsible disclosure in line with the accounting policies of the Group which are supported
by prudent judgements and estimates.
The interim financial statements have been prepared under the supervision of the chief financial officer, Ms B Berlin,
CA(SA).
The directors are also responsible for the maintenance of effective systems of internal control which are based on
established organisational structure and procedures. These systems are designed to provide reasonable assurance as to the
reliability of the financial statements, and to prevent and detect material misstatement and loss.
The interim financial statements have been prepared on a going-concern basis as the directors believe that the Company
and the Group will continue to be in operation in the foreseeable future.
The interim financial statements, have been approved by the board of directors and are signed on their behalf by:
KDK Mokhele TP Goodlace
Chairman Chief executive officer
Johannesburg
26 February 2015
Independent auditor’s review report on interim financial statements
To the shareholders of Impala Platinum Holdings Limited
We have reviewed the condensed consolidated interim financial statements of Impala Platinum Holdings Limited in the
accompanying interim report, which comprise the condensed consolidated statement of financial position as at 31 December
2014 and the related condensed consolidated statements of comprehensive income, changes in equity and cash flows for the
six months then ended, and selected explanatory notes.
Directors’ responsibility for the interim financial statements
The directors are responsible for the preparation and presentation of these interim financial statements in accordance
with the International Financial Reporting Standard (IAS) 34 Interim Financial Reporting, the South African Institute
of Chartered Accountants (SAICA) SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the Companies Act
of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of
interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express a conclusion on these interim financial statements. We conducted our review in
accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the
Independent Auditor of the Entity. ISRE 2410 requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements are not prepared in all material respects in accordance with the
applicable financial reporting framework. This standard also requires us to comply with relevant ethical requirements.
A review of interim financial statements in accordance with ISRE 2410 (ISRE) is a limited assurance engagement. We
perform procedures, primarily consisting of making inquiries of management and others within the entity, as appropriate,
and applying analytical procedures, and evaluate the evidence obtained.
The procedures in a review are substantially less than and differ in nature from those performed in an audit conducted
in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on these
interim financial statements.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed
consolidated interim financial statements of Impala Platinum Holdings Limited for the six months ended 31 December 2014 are
not prepared, in all material respects, in accordance with the International Financial Reporting Standard (IAS) 34
Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the Companies Act of
South Africa.
PricewaterhouseCoopers Inc.
Director: AJ Rossouw
Registered Auditor
26 February 2015
Consolidated statement of financial position
As at
As at 31 December As at
31 December 2013 30 June
2014 (Restated 2014
(Rm) Notes (Reviewed) reviewed)* (Audited)
Assets
Non-current assets
Property, plant and equipment 5 48 790 46 401 46 916
Exploration and evaluation assets 3 360 4 294 3 360
Investment in equity-accounted entities 6 3 068 2 937 2 959
Deferred tax 115 72 238
Available-for-sale financial assets 45 118 54
Held-to-maturity financial assets 36 33 35
Loans 7 114 153 133
Derivative financial instruments 497 262 332
Prepayments 10 601 10 694 10 665
66 626 64 964 64 692
Current assets
Inventories 8 7 449 9 037 7 212
Trade and other receivables 4 600 3 702 3 078
Loans 7 44 13 12
Prepayments 472 679 568
Cash and cash equivalents 2 714 3 601 4 305
15 279 17 032 15 175
Total assets 81 905 81 996 79 867
Equity and liabilities
Equity attributable to owners of the Company
Share capital 15 648 15 543 15 624
Retained earnings 35 185 35 808 34 936
Other components of equity 2 623 1 669 1 807
53 456 53 020 52 367
Non-controlling interest 2 698 2 696 2 550
Total equity 56 154 55 716 54 917
Liabilities
Non-current liabilities
Deferred tax 10 227 10 718 10 179
Borrowings 9 7 164 7 145 7 169
Derivative financial instruments 1 62 18
Liabilities 470 795 676
Provisions 811 772 676
18 673 19 492 18 718
Current liabilities
Trade and other payables 5 311 5 131 4 713
Current tax payable 630 375 562
Borrowings 9 954 555 618
Liabilities 183 447 339
Bank overdraft - 280 -
7 078 6 788 6 232
Total liabilities 25 751 26 280 24 950
Total equity and liabilities 81 905 81 996 79 867
* The reviewed December 2013 interim consolidated statement of financial position was restated to align with
the audited June 2014 consolidated statement of financial position. Refer note 3.
The notes are an integral part of these condensed interim financial statements.
Consolidated statement of comprehensive income
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2014 2013 2014
(Rm) Notes (Reviewed) (Reviewed) (Audited)
Revenue 15 903 16 502 29 028
Cost of sales 10 (14 384) (14 742) (25 786)
Gross profit 1 519 1 760 3 242
Other operating income 11 375 59 239
Other operating expenses 11 (1 113) (75) (2 809)
Royalty expense (319) (407) (693)
Profit/(loss) from operations 462 1 337 (21)
Finance income 81 163 318
Finance cost (174) (247) (496)
Net foreign exchange transaction gains/(losses) (219) (19) (101)
Other income 149 104 203
Other expenses (87) (109) (253)
Share of profit of equity-accounted entities 231 130 365
Profit before tax 443 1 359 15
Income tax expense (160) (437) (144)
Profit/(loss) for the period 283 922 (129)
Other comprehensive income, comprising items that
may subsequently be reclassified to profit or loss:
Available-for-sale financial assets (9) 1 (56)
Deferred tax thereon (2) - -
Share of other comprehensive income
of equity-accounted entities 153 - 120
Deferred tax thereon (15) - (12)
Exchange differences on translating foreign operations 932 668 711
Deferred tax thereon (121) (170) (93)
Other comprehensive income, comprising items that will
not be subsequently reclassified to profit or loss:
Actuarial loss on post-employment medical benefit - - (1)
Deferred tax thereon - - -
Total comprehensive income 1 221 1 421 540
Profit/(loss) attributable to:
Owners of the Company 249 879 8
Non-controlling interest 34 43 (137)
283 922 (129)
Total comprehensive income/(loss) attributable to:
Owners of the Company 1 065 1 304 569
Non-controlling interest 156 117 (29)
1 221 1 421 540
Earnings per share (cents per share):
Basic 41 145 1
Diluted 41 145 1
For headline earnings per share and dividend per share refer notes 12 and 13.
The notes are an integral part of these condensed interim financial statements.
Consolidated statement of changes in equity
Number of Attributable to:
shares Total other Owners Non-
issued Ordinary Share Share-based Total share Retained components of the controlling Total
(Rm) (million)* shares premium payments capital earnings of equity Company interest equity
Balance at 30 June 2014 607.05 16 13 371 2 237 15 624 34 936 1 807 52 367 2 550 54 917
Shares issued
- Implats Share Incentive Scheme 0.03 - 1 - 1 - - 1 - 1
- Employee Share Ownership Programme - - - - - - - - - -
Share-based compensation
- Long-Term Incentive Plan - - - 23 23 - - 23 - 23
Profit for the year - - - - - 249 - 249 34 283
Other comprehensive income - - - - - - 816 816 122 938
Dividends (note 13) - - - - - - - - (8) (8)
Balance at 31 December 2014 (Reviewed) 607.08 16 13 372 2 260 15 648 35 185 2 623 53 456 2 698 56 154
Balance at 30 June 2013 606.91 16 13 363 2 114 15 493 35 300 1 244 52 037 2 579 54 616
Shares issued
- Implats Share Incentive Scheme 0.03 - 1 - 1 - - 1 - 1
- Employee Share Ownership Programme - - - - - - - - - -
Share-based compensation
- Long-Term Incentive Plan - - - 49 49 - - 49 - 49
Profit for the year - - - - - 879 - 879 43 922
Other comprehensive income - - - - - - 425 425 74 499
Dividends (note 13) - - - - - (371) - (371) - (371)
Balance at 31 December 2013 (Reviewed) 606.94 16 13 364 2 163 15 543 35 808 1 669 53 020 2 696 55 716
Balance at 30 June 2013 606.91 16 13 363 2 114 15 493 35 300 1 244 52 037 2 579 54 616
Shares issued
- Implats Share Incentive Scheme 0.14 - 8 - 8 - - 8 - 8
- Employee Share Ownership Programme - - - - - - - - - -
Share-based compensation
- Long-Term Incentive Plan - - - 123 123 - - 123 - 123
Profit/(loss) for the year - - - - - 8 - 8 (137) (129)
Other comprehensive income/(loss) - - - - - (1) 563 562 108 670
Dividends (note 13) - - - - (371) - (371) - (371)
Balance at 30 June 2014 (Audited) 607.05 16 13 371 2 237 15 624 34 936 1 807 52 367 2 550 54 917
* The table above excludes the treasury shares, Morokotso Trust (ESOP) and the Implats Share Incentive Scheme as these structured entities are consolidated. The notes are an integral part of these condensed interim financial statements.
Consolidated statement of cash flows
Six months
Six months ended
ended 31 December Year ended
31 December 2013 30 June
2014 (Restated 2014
(Rm) (Reviewed) reviewed)* (Audited)
Cash flows from operating activities
Cash generated from operations 264 2 703 5 234
Exploration cost (29) (10) (20)
Finance cost (80) (151) (404)
Income tax refund received/(paid) 5 (648) (714)
Net cash from operating activities 160 1 894 4 096
Cash flows from investing activities
Purchase of property, plant and equipment (2 113) (2 720) (4 500)
Proceeds from sale of property, plant and equipment 13 30 64
Proceeds from insurance claim on asset scrapping - - 112
Loans granted (53) (6) (10)
Loan repayments received 8 8 11
Finance income 73 162 319
Dividends received 256 231 467
Net cash used in investing activities (1 816) (2 295) (3 537)
Cash flows from financing activities
Issue of ordinary shares - 1 8
Repayments of borrowings - (29) (16)
Dividends paid to Company’s shareholders (8) (371) (371)
Net cash used in financing activities (8) (399) (379)
Net increase/(decrease) in cash and cash equivalents (1 664) (800) 180
Cash and cash equivalents at beginning of period 4 305 4 113 4 113
Effect of exchange rate changes on cash and
cash equivalents held in foreign currencies 73 8 12
Cash and cash equivalents at end of period** 2 714 3 321 4 305
* The reviewed December 2013 interim consolidated statement of cash flows was restated to align with
the audited June 2014 consolidated statement of cash flows. Refer note 3.
**Net of bank overdraft.
The notes are an integral part of these condensed interim financial statements.
Notes to the financial information
1. General information
Impala Platinum Holdings Limited (“Implats”, “the Company” or “the Group”) is a primary 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 ore bodies globally.
The Company has its listing on the JSE Limited.
The condensed interim financial information was approved for issue on 26 February 2015 by the board of directors.
2. Basis of preparation
The condensed consolidated interim financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS), IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council,
requirements of the Companies Act, Act 71 of 2008, as amended, and the Listings Requirements of the JSE Limited.
The condensed consolidated interim financial statements should be read in conjunction with the annual consolidated
financial statements for the year ended 30 June 2014, which have been prepared in accordance with IFRS.
The condensed consolidated interim financial statements have been prepared under the historical cost convention
except for certain financial assets, financial liabilities and derivative financial instruments which are measured at fair
value, and except for equity and liabilities for share-based payment arrangements which are measured with a binomial
option model.
The condensed consolidated interim financial information is presented in South African rand, which is the Company’s
functional currency.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total
annual earnings.
3. Accounting policies
The principal accounting policies applied are in terms of IFRS and are consistent with those of the annual
consolidated financial statements for the year ended 30 June 2014, except as described below. The following new standards,
amendments to standards and interpretations have been adopted by the Group as from 1 July 2014 and have no impact on the
results of the Group:
- IAS 1 Presentation of Financial Statements (effective 1 January 2016). Disclosure initiative amendments to provide
improved presentation and disclosure guidelines.
- IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets (effective 1 January 2016). Amendments to
prohibit entities from using a revenue-based depreciation method and introduce a rebuttable presumption that a revenue-based
amortisation method is inappropriate.
- IAS 16 Property, Plant and Equipment and IAS 41 Agriculture (effective 1 January 2016). Amendments to define bearer
plants and to include it in the scope of IAS 16.
- IFRS 10 Consolidated Financial Statements and IAS 28 Investment in Associates and Joint Ventures (effective 1
January 2016). Amendments regarding the sale or contribution of assets between an investor and its associate or joint
venture.
- IAS 27 Separate Financial Statements (effective 1 January 2016). Amendment to allow the equity method of accounting
for investments in subsidiaries, joint ventures and associates in the entities’ separate financial statements.
- IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments
in Associates and Joint Ventures (effective 1 January 2016). Amendment confirming the availability of exemption from
preparing consolidated financial statements for subsidiary parent companies if the ultimate holding company is an
investment company that measures its subsidiaries at fair value.
- IFRS 11 Joint Arrangements (effective 1 January 2016). Amendment requiring the application of the relevant
principles for business combinations for the accounting for the acquisition of an interest in a joint operation in which the
activity of the joint operation constitutes a business.
- IFRS 14 Regulatory Deferral Accounts (effective 1 January 2016). New standard permitting an entity who is a
first-time adopter of IFRS to continue to account for regulatory deferral account balances as previously.
- Improvements to IFRS 2010 - 2012 Cycle (effective 1 July 2014). Various necessary, non-urgent changes to seven
different standards.
- Improvements to IFRS 2011 - 2013 Cycle (effective 1 July 2014). Various necessary, non-urgent changes to four
different standards.
- Improvements to IFRS 2012 - 2014 Cycle (effective 1 January 2016). Various necessary, non-urgent changes to five
different standards.
The reviewed December 2013 interim consolidated statement of financial position and interim consolidated statement
of cash flows were restated in line with the audited June 2014 consolidated statement of financial position and
consolidated statement of cash flows.
In the June 2014 financial statements a decision was taken to classify the derivative financial asset and the
derivative financial liability, previously included under current assets and liabilities, under trade and other receivables,
and trade and other payables as a non-current asset and non-current liability respectively.
Guardrisk has also been deconsolidated and is carried as an available-for-sale investment in the December 2013
interim consolidated statement of financial position, in line with the June 2014 audited financial statements, and the
December 2013 interim consolidated cash flow was adjusted accordingly.
The impact on the interim consolidated statement of financial position is as follows:
As at
31 December As at
2013 31 December
previously 2013
(Rm) stated Adjustment as presented
Assets
Non-current assets
Available-for-sale financial assets 20 98 118
Derivative financial instruments - 262 262
Current assets
Trade and other receivables 3 968 (266) 3 702
Cash and cash equivalents 3 727 (126) 3 601
7 715 (32) 7 683
Equity and liabilities
Equity attributable to owners of the Company
Retained earnings 35 895 (87) 35 808
Other components of equity 1 582 87 1 669
Non-current liabilities
Derivative financial instruments - 62 62
Current liabilities
Trade and other payables 5 225 (94) 5 131
42 702 (32) 42 670
The impact on the interim consolidated statement of cash flows is as follows:
As at
31 December As at
2013 31 December
previously 2013
(Rm) stated Adjustment as presented
Cash flow from operating activities
Cash generated from operations 2 686 17 2 703
Net decrease in cash and cash equivalents (817) 17 (800)
Cash and cash equivalents at beginning of period 4 256 (143) 4 113
Cash and cash equivalents at end of period** 3 447 (126) 3 321
**Net of bank overdraft.
4. Segment information
The Group differentiates its segments between mining operations, refining services (which include metals purchased
and toll refined), chrome processing and other.
Management has determined the operating segments based on the business activities and management structure within
the Group.
Capital expenditure comprises additions to property, plant and equipment (note 5).
Impala mining segment’s largest sales customers amounted to 12% and 11% of total sales (December 2013: 12% and 11%)
(June 2014: 12% and 11%).
The statement of comprehensive income shows the movement from gross profit to total profit before income tax.
Six months ended Six months ended Year ended
31 December 2014 31 December 2013 30 June 2014
(Reviewed) (Reviewed) (Audited)
Gross Gross Gross
(Rm) Revenue profit Revenue profit Revenue profit
Mining
- Impala 15 580 (749) 16 021 (88) 28 308 (1 773)
Mining 6 315 (778) 7 315 (134) 10 327 (1 902)
Metals purchased 9 265 29 8 706 46 17 981 129
- Zimplats 2 556 537 2 678 729 5 973 2 039
- Marula 839 (62) 877 (12) 1 791 (12)
- Afplats - - - (2) - (5)
Chrome processing 101 37 149 33 179 41
Inter-segment adjustment (3 403) 1 126 (3 567) 61 (7 778) 1 144
External parties 15 673 889 16 158 721 28 473 1 434
Refining services 9 509 632 9 180 1 041 18 495 1 813
Inter-segment adjustment (9 279) (2) (8 836) (2) (17 940) (5)
External parties 230 630 344 1 039 555 1 808
Total external parties 15 903 1 519 16 502 1 760 29 028 3 242
Capital Total Capital Total Capital Total
(Rm) expenditure assets expenditure assets expenditure assets
Mining
- Impala 1 503 49 764 2 049 51 756 2 923 49 946
- Zimplats 585 14 663 492 12 083 1 226 12 856
- Marula 47 3 000 85 3 093 159 3 048
- Afplats 104 6 016 92 6 765 175 5 912
Total mining 2 239 73 443 2 718 73 697 4 483 71 762
Refining services - 4 655 - 4 776 - 4 580
Chrome processing - 154 - 164 2 120
Other - 3 653 - 3 359 - 3 405
Total 2 239 81 905 2 718 81 996 4 485 79 867
5. Property, plant and equipment
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2014 2013 2014
(Rm) (Reviewed) (Reviewed) (Audited)
Opening net book amount 46 916 44 410 44 410
Additions 2 001 2 670 4 345
Interest capitalised 147 70 155
Disposals (3) (3) (17)
Depreciation (note 10) (1 084) (1 350) (2 341)
Impairment - - (65)
Scrapping (251) - (223)
Rehabilitation adjustment 90 (22) (115)
Exchange adjustment on translation 974 626 767
Closing net book amount 48 790 46 401 46 916
Capital commitment
Capital expenditure approved at 31 December 2014 amounted to R16.1 billion (December 2013: R18.1 billion) (June 2014: R15.6 billion),
of which R2.2 billion (December 2013: R2.7 billion) (June 2014: R1.9 billion) is already committed. This expenditure will be funded
internally and, if necessary, from borrowings.
6. Investment in equity accounted entities
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2014 2013 2014
(Rm) (Reviewed) (Reviewed) (Audited)
Summary - Balances
Joint venture
Mimosa 1 786 1 716 1 756
Associates
Two Rivers 1 212 1 154 1 134
Makgomo Chrome 70 66 69
Friedshelf 1226 & 1169 - - -
Total investment in
equity accounted entities 3 068 2 936 2 959
Summary - Movement
Beginning of the period 2 959 2 922 2 922
Share of profit 212 149 383
Share of other comprehensive income 153 95 120
Dividends received (256) (230) (466)
End of the period 3 068 2 936 2 959
7. Loans
(Rm) Six months Six months
ended ended Year ended
31 December 31 December 30 June
2014 2013 2014
(Reviewed) (Reviewed) (Audited)
Summary - Balances
Employee housing 66 50 55
Reserve Bank of Zimbabwe 39 108 73
Contractors 42 8 5
Silplats 11 - 12
158 166 145
Short-term portion (44) (13) (12)
Long-term portion 114 153 133
Summary - Movement
Beginning of the period 145 195 195
Loans granted during the year 53 6 22
Interest accrued 8 3 7
Impairment (37) (34) (71)
Repayment received (14) (11) (17)
Exchange adjustment 3 7 9
End of the period 158 166 145
8. Inventories
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2014 2013 2014
(Rm) (Reviewed) (Reviewed) (Audited)
Mining metal
Refined metal 976 3 103 1 300
Main products - at cost 750 1 792 941
Main products - at net realisable value 127 1 210 286
By-products - at net realisable value 99 101 73
In-process metal 2 112 1 632 1 728
At cost 1 608 916 1 270
At net realisable value 504 716 458
Non-mining metal
Refined metal 1 169 1 149 1 160
At cost 1 164 1 138 1 134
At net realisable value 5 11 26
In-process metal 2 414 2 433 2 291
At cost 2 414 2 433 2 291
At net realisable value - - -
Total metal inventories 6 671 8 317 6 479
Stores and materials inventories 778 720 733
7 449 9 037 7 212
Refined metal
Refined main products at a cost of R168 million (December 2013: R1 586 million) (June 2014: R361 million) were written down
by R36 million (December 2013: R365 million) (June 2014: R49 million) to net realisable value of R132 million
(December 2013: R1 221 million) (June 2014: R312 million).
Included in refined metal is metal on lease to third parties of 36 000 ounces (December 2013: 36 000 ounces)
(June 2014: 36 000 ounces) ruthenium.
In-process metal
In-process metal of main products at a cost of R663 million (December 2013: R910 million ) (June 2014: R544 million) were written
down by R159 million (December 2013: R194 million ) (June 2014: R86 million) to net realisable value amounting to R504 million
(December 2013: R716 million) (June 2014: R458 million).
9. Borrowings
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2014 2013 2014
(Rm) (Reviewed) (Reviewed) (Audited)
Summary - Balances
Standard Bank Limited - BEE partners Marula 881 876 878
Standard Bank Limited - Zimplats 1 215 1 102 1 117
Convertible bonds - ZAR 2 463 2 396 2 429
Convertible bonds - US$ 2 176 1 936 1 981
Finance leases 1 383 1 390 1 382
8 118 7 700 7 787
Short-term portion (954) (555) (618)
Long-term portion 7 164 7 145 7 169
Summary - Movement
Beginning of the period 7 787 7 479 7 479
Leases capitalised - 21 -
Interest accrued 284 268 549
Repayments (226) (247) (462)
Exchange adjustment 273 179 221
End of the period 8 118 7 700 7 787
10. Cost of sales
Six months Six months Year ended
ended ended 30 June
31 December 31 December 2014
2014 2013 (Audited)
(Rm) (Reviewed) (Reviewed)
Included in cost of sales:
On-mine operations 6 272 6 653 9 090
Wages and salaries 4 351 3 992 6 085
Materials and consumables 2 194 2 169 3 323
Utilities 482 492 819
Minus: Post-strike start-up cost/
Non-production cost during the strike (755) - (1 137)
Processing operations 1 635 1 757 2 733
Wages and salaries 346 307 562
Materials and consumables 826 846 1 333
Utilities 516 604 956
Minus: Post-strike start-up cost/
Non-production cost during the strike (53) - (118)
Refining operations 498 468 880
Wages and salaries 221 216 406
Materials and consumables 211 187 354
Utilities 66 65 120
Other cost 362 329 655
Corporate costs, salaries and wages 272 255 483
Selling and promotional expenses 90 74 172
Share-based compensation (190) 288 231
Chrome operation - cost of sales 56 102 117
Depreciation of operating assets (note 5) 1 084 1 350 2 341
Metals purchased 4 824 4 288 8 601
Change in metal inventories (157) (493) 1 138
14 384 14 742 25 786
11. Other operating expenses/(income)
(Rm) Six months Six months
ended ended Year ended
31 December 31 December 30 June
2014 2013 2014
(Reviewed) (Reviewed) (Audited)
Other operating expenses/(income)
comprise the following principal categories:
Post-strike start-up cost/non-production cost during strike 808 - 1 255
Profit on disposal of property, plant and equipment (26) (43) (76)
Rehabilitation provision - change in estimate 4 (12) (44)
Impairment 39 34 1 071
Trade payables - commodity price adjustment (349) 38 246
Scrapping of assets 251 - 223
Insurance claim - - (112)
Audit remuneration 3 3 14
Other 8 (4) (7)
738 16 2 570
12. Headline earnings
Headline earnings attributable to equity holders of the Company arises from operations as follows:
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2014 2013 2014
(Rm) (Reviewed) (Reviewed) (Audited)
Profit attributable to owners of the Company 249 879 8
Adjustments:
- Profit on disposal of property, plant and equipment (10) (27) (47)
- Impairment - - 630
- Scrapping of property, plant and equipment 218 - 223
- Insurance compensation relating to scrapping of
property, plant and equipment - - (112)
- Total tax effects of adjustments (57) 8 (179)
Headline earnings 400 860 523
Weighted average number of ordinary shares
in issue for basic earnings per share 607.06 606.92 606.94
Weighted average number of ordinary shares
for diluted earnings per share 607.93 607.38 607.85
Headline earnings per share (cents)
Basic 66 142 86
Diluted 66 142 86
13. Dividends
Six months Six months Year ended
ended ended 30 June
31 December 31 December 2014
2014 2013 (Audited)
(Rm) (Reviewed) (Reviewed)
No dividends were declared in respect of
the six months ended December 2014.
Dividends paid
No final dividend for 2014 (2013: final dividend
No 91 of 60 cents per share) - 371 371
No interim dividend for 2014 (2013: interim dividend
No 90 of 35 cents per share) - - -
- 371 371
14. Contingent liabilities and guarantees
As at the end of December 2014 the Group had bank and other guarantees of R1 417 million (December 2013: R1 161 million)
(June 2014: R1 370 million) from which it is anticipated that no material liabilities will arise.
The companies which are subject to water licences with the Department of Water Affairs are in the process of compiling a plan,
including future cash flow, to ensure that adherence to the water management requirements, including treatment and rehabilitation
requirements of the Department of Water Affairs, are met. This could result in a liability and a corresponding asset in the statement
of financial position. Measurement of the liability is currently in progress.
The Group has a contingent liability for Additional Profits Tax (APT) raised by the Zimbabwe Revenue Authority (ZIMRA) in respect
of the tax period 2007 to 2010 based on the assumption that this 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 advisers,
strongly disagrees with the ZIMRA interpretation of the provisions of the act. The contingent liability at 31 December 2014 amounts to
US$9.4 million.
15. Related party transactions
- The Group entered into PGM purchase transactions of R1 791 million (December 2013: R1 722 million) (June 2014: R3 409 million) with
Two Rivers Platinum, an associate company, resulting in an amount payable of R903 million (December 2013: R995 million) (June 2014: R93 million).
It also received refining fees to the value of R12 million (December 2013: R9 million) (June 2014: R21 million).
- The Group previously entered into sale and leaseback transactions with Friedshelf, an associate company. At the end of the period, an amount
of R1 227 million (December 2013: R1 212 million) (June 2014: R1 221 million) was outstanding in terms of the lease liability. During the period,
interest of R63 million (December 2013: R48 million) (June 2014: R111 million) was charged and a R57 million (December 2013: R60 million)
(June 2014: R114 million) repayment was made. The finance leases have an effective interest rate of 10.2%.
- The Group entered into PGM purchase transactions of R1 530 million (December 2013: R1 176 million) (June 2014: R2 642 million) with
Mimosa Investments, a joint venture, resulting in an amount payable of R740 million (December 2013: R639 million) (June 2014: R778 million).
It also received refining fees and interest to the value of R119 million (December 2013: R98 million) (June 2014: R223 million).
These transactions are entered into on an arm’s-length basis at prevailing market rates.
Key management compensation (fixed and variable)
Six months Six months Year ended
ended ended 30 June
31 December 31 December 2014
2014 2013 (Audited)
(R’000) (Reviewed) (Reviewed)
Non-executive directors’ remuneration 3 900 4 026 7 976
Executive directors’ remuneration 8 168 10 900 25 9741
Prescribed officers 17 7652 12 050 27 573
Senior executives and company secretary 11 977 13 902 22 811
Total 41 810 40 878 84 334
1 Includes severance payment to PA Dunne of R9.2 million.
2 Includes one additional employee compared to the comparable period.
16. Financial instruments
Six months
Six months ended
ended 31 December Year ended
31 December 2013 30 June
2014 (Restated 2014
(Rm) (Reviewed) reviewed) (Audited)
Financial assets - carrying amount
Loans and receivables 6 183 6 450 6 145
Financial instruments at fair value through profit and loss** 497 262 332
Held-to-maturity financial assets 36 33 35
Available-for-sale financial assets* 45 118 54
6 761 6 863 6 566
Financial liabilities - carrying amount
Financial liabilities at amortised cost 12 398 12 130 11 626
Financial instruments at fair value through profit and loss** 1 62 18
12 399 12 192 11 644
The carrying amount of financial assets and liabilities approximate their fair values.
* Level 1 of the fair value hierarchy - Quoted prices in active markets for the same instrument.
**Level 2 of the fair value hierarchy - Significant inputs are based on observable market data with the R/US$ exchange
rate of 11.571 being the most significant. These inatruments are valued on a discounted cash basis.
17. Subsequent events
A 15% export levy on unbeneficiated platinum revenue in Zimbabwe became effective from 1 January 2015.
Only Mimosa will be affected by this levy, as Zimplats does not export unbeneficiated platinum concentrate. No adjustment
to the carrying amount of the investment in Mimosa was made as the legislation was promulgated after 31 December 2014 and
the impact is being assessed.
Corporate information
Registered office
2 Fricker Road, Illovo, 2196
(Private Bag X18, Northlands, 2116)
Transfer secretaries
South Africa: Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
United Kingdom: Computershare Investor Services plc
The Pavilions, Bridgwater Road, Bristol, BS13 8AE
Sponsor
Deutsche Securities (SA) Proprietary Limited
Directors
KDK Mokhele (chairman), TP Goodlace (chief executive officer), B Berlin (chief financial officer),
HC Cameron, PW Davey*, MSV Gantsho, A Kekana, AS Macfarlane*, AA Maule, TV Mokgatlha,
BT Nagle, B Ngonyama, NDB Orleyn
*British
Note: Mr TV Mokgatlha has resigned as a non-executive director with effect from 22 October 2014.
Group executive: corporate relations
Johan Theron
Tel: +27 (11) 731 9013
E-mail: johan.theron@implats.co.za
Group corporate relations manager
Alice Lourens
Tel: +27 (11) 731 9033
E-mail: alice.lourens@implats.co.za
For additional information on the Group, please go to www.implats.co.za
Date: 26/02/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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