IMPALA PLATINUM HOLDINGS LIMITED - Third quarter production report for the period 1 January to 31 March 2016
26 April 2016 8:00
IMP 201604260008A
Third quarter production report for the period 1 January to 31 March 2016
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ADR code: IMPUY
ISIN: ZAE000083648
(“Implats” or “the Group”)
Third quarter production report for the period 1 January to 31 March 2016
Unaudited Unaudited Unaudited Unaudited
Operational information Quarter ended Quarter ended Nine months Nine months
31 March 2016 31 March 2015 31 March 2016 31 March 2015
Implats Gross Refined Production
Platinum 000oz 353 301 1 045 932
Palladium 000oz 219 176 633 589
Rhodium 000oz 53 37 137 126
Nickel 000t 3 957 3 747 12 432 11 581
Impala
Tonnes Milled 000t 2 059 2 509 7 952 6 516
Grade (6E) g/t 4.05 4.18 4.13 4.22
Merensky Ore Milled % 36.5% 45.5% 43.1% 47.3%
Refined Platinum Production 000oz 142 143 468 396
Marula
Tonnes Milled 000t 390 373 1 277 1 202
Grade (6E) g/t 4.18 4.21 4.32 4.16
Platinum in Concentrate 000oz 17 16 59 53
Zimplats
Tonnes Milled 000t 1 646 1 263 4 765 3 741
Grade (6E) g/t 3.48 3.47 3.47 3.47
Platinum in Matte 000oz 89 52 220 155
Mimosa
Tonnes Milled 000t 676 622 1 987 1 923
Grade (6E) g/t 3.84 3.93 3.90 3.92
Platinum in Concentrate 000oz 30 28 90 88
IRS
Refined Platinum Production 000oz 210 158 577 536
SAFETY
Implats remains committed to ensuring zero harm and the Group’s safety strategy is premised
on achieving safe production and specifically demands safe behaviour, an inherently safe work
environment and leading safety practices. During the quarter ended 31 March 2016 the Group
regrettably experienced three fatal incidents, two of the incidents occurred at Impala Rustenburg
and one at Mimosa. Sadly, these three incidents resulted in a total of six fatalities. The board of
directors of Implats and the management team have extended their sincere sympathies and
support to the family, friends and colleagues of the deceased.
In one of these incidents, four employees tragically lost their lives in an underground fire at
Impala Rustenburg’s 14 Shaft on 22 January 2016. The entire Rustenburg operation was
subsequently closed to engage employees on their safety readiness and emergency awareness,
and to significantly refocus efforts to achieving zero-harm. The investigations into the cause of
the fire are ongoing.
Following the fire in January 2016 and consequential safety stoppages, the Group has recorded
no further serious safety-related incidents. During the period Two Rivers achieved three million
fatality free shifts, a milestone which took four years and one month of safe production, while
10 Shaft in Rustenburg reached one million fatality free shifts, taking one year and six months to
achieve.
PRODUCTION
Gross refined platinum production for the quarter ended 31 March 2016 increased by 17% to
353 000 platinum ounces, compared to 301 000 platinum ounces in the prior comparable period.
The increase is largely as a result of increased output from Zimplats, good operational
performances from Marula, Two Rivers and Mimosa, higher volumes from Impala Refining
Services (IRS), as well as the release of material stockpiled ahead of the smelter.
Over the nine-month period ended 31 March 2016, gross refined platinum production increased
by 12% to 1.05 million platinum ounces from 932 000 platinum ounces in the previous
comparable period.
Impala
Tonnes milled at Impala Rustenburg declined to 2.01 million tonnes during the quarter ended
31 March 2016 from 2.51 million tonnes in the previous comparable quarter ended
31 March 2015. This was largely as a result of the fire at 14 Shaft and safety-related stoppages.
Following the tragic fire, all operations at 14 Shaft were suspended until 15 February 2016 when
crews re-entered the upper conventional section of the mine. Stoping and development
activities in the upper sections re-commenced on 22 February 2016. The lower trackless and
conventional mining sections remain closed and all mining crews have been re-deployed to
other mining areas in Rustenburg or tasked with the clean-up and repair operation.
The investigations into the cause of the fire are ongoing and the insured asset damage
(estimated to be R375 million) and business interruption (still to be determined) will be covered
by the Group’s insurance programme. Optimisation of the repair plan to return the shaft to full
production as soon as possible has shortened the timeline and it is now expected to be fully
completed by March 2017.
Despite the severe impact on production volumes, grade and ore mix, refined platinum
production for the quarter was maintained at 142 000 platinum ounces (143 000 platinum
ounces for the quarter ended 31 March 2015) as most of the material that was built up in the first
half of FY2016 due to the furnace rebuild, was treated in the period under review.
Tonnes milled over the nine-month period ended 31 March 2016 increased by 22% to 7.95
million tonnes, compared to 6.52 million tonnes in the prior corresponding period, which was
impacted by the operational re-start following the wage strike. Consequently, refined platinum
production for the nine months ended 31 March 2016 increased by 18% to 468 000 platinum
ounces (396 000 platinum ounces in nine-months to 31 March 2015).
Marula
Tonnes milled at Marula increased by 4.5% to 390 000 tonnes for the quarter ended
31 March 2016 compared to 373 000 tonnes reported in the prior corresponding period, which is
despite production being significantly impacted by safety stoppages in the period. Platinum in
concentrate production for the quarter consequently increased to 17 000 platinum ounces
(16 000 platinum ounces in the quarter ended 31 March 2015).
Tonnes milled over the nine month period ended 31 March 2016 increased by 6.2% to
1.28 million tonnes, compared to 1.20 million tonnes in the prior corresponding period. In line
with this, platinum in concentrate production for the nine month period ended 31 March 2016
rose 11% to 59 000 platinum ounces (53 000 platinum ounces in the nine month period ended
31 March 2015).
Zimplats
Tonnes milled during the quarter ended 31 March 2016 increased by 30% to 1.65 million tonnes
compared to 1.26 million tonnes reported in the prior corresponding period. Platinum production
in matte for the quarter ended 31 March 2016 increased to 89 000 platinum ounces (52 000
platinum ounces for the quarter ended 31 March 2015) as a result of the increased milling rate
and the release of stockpiled concentrates following a furnace outage in the final quarter of
FY2015.
Mill throughput over the nine-month period ended 31 March 2016 increased by 27% to
4.77 million tonnes, compared to 3.74 million tonnes in the corresponding prior period. The
higher throughput was directly attributable to the measures implemented to recover production
loses as a result of the safety closure of the Bimha Mine in August 2014. Platinum in matte for
the nine months ended 31 March 2016 was 42% higher at 220 000 ounces, compared to
155 000 platinum ounces in the prior comparable period.
Zimplats continues to engage with the Government of Zimbabwe with regards to the
indigenisation implementation plan and the securing of a more conducive regulatory and fiscal
framework for the mining industry in Zimbabwe.
Mimosa
Tonnes milled at Mimosa increased by 8.7% to 676 000 tonnes for the quarter ended
31 March 2016 (622 000 tonnes in the quarter ended 31 March 2015) as additional material was
milled from the stockpile. Platinum in concentrate production for the quarter increased as a
result of the increased mill throughput to 30 000 ounces (28 000 ounces in the quarter ended 31
March 2015).
Tonnes milled during the nine-month period ended 31 March 2016 increased by 3.3% to 1.99
million tonnes, compared to 1.92 million tonnes in the corresponding prior period. The increased
throughput resulted in 2.3% higher platinum in concentrate production of 90 000 platinum
ounces compared to 88 000 platinum ounces in the prior comparable period.
IRS
IRS refined platinum production for the quarter ended 31 March 2016 increased by 32.9%. Over
the nine-month period ended 31 March 2016 production increased by 7.6% to 577 000 ounces,
compared to 536 000 ounces in the previous comparable period. The increase in production is
largely attributed to higher deliveries from third-party customers and the release of some
material in the pipeline.
OUTLOOK
Implats’ full year guidance is estimated to be production of around 1.42 million refined platinum
ounces and unit cost of R22 500 per refined platinum ounce.
The third quarter production report for the period 1 January to 31 March 2016 has not been
reviewed and reported on by the external auditors of Implats.
Queries:
Johan Theron Alice Lourens
Group Executive: Corporate Relations Group Corporate Relations Manager
E-mail: Johan.Theron@implats.co.za E-mail: Alice.Lourens@implats.co.za
Tel: +27 11 731 9013/43 Tel: +27 11 731 9033/43
Cell: +27 82 809 0166 Cell: +27 82 498 3608
26 April 2016
Johannesburg
Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited
Date: 26/04/2016 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
