IMPALA PLATINUM HOLDINGS LIMITED - Consolidated annual results for the 12 months ended 30 June 2017
14 September 2017 7:20
IMP 201709140003A
Consolidated annual results for the 12 months ended 30 June 2017
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ISIN: ZAE000175873
ADR code: IMPUY
ISIN: ZAE000083648
ISIN: ZAE000247458
(Implats or the Company or the Group)
CONSOLIDATED ANNUAL RESULTS FOR THE 12 MONTHS ENDED 30 JUNE 2017
Key features for the year
Operational
- Gross refined platinum production increased by 6.4% to 1.53 million ounces
- Disappointing production at Impala Rustenburg with output below original targets
- Restructuring review underway for a return to profitability under new normal pricing environment
- Production volumes at Marula below target due to community disruptions
- Outstanding operational performances from Zimplats, Two Rivers, Mimosa and IRS
Financial
- Group unit cost increase was contained at 4.4%.
- Basic headline loss of 137 cents per share
- Earnings impacted by impairment of R10.2 billion
- Balance sheet strengthened with gross cash of R7.8 billion, and unutilised facilities of R4 billion
available until 2021
Market
- Overall PGM demand stable, while supply remains constrained
- Current platinum price disconnected to market fundamentals
Safety
- Fatal accidents remain a concern at Impala
- Improved safety performances at Zimplats, Marula, Mimosa and Two Rivers
Mineral Resources and Mineral Reserves
- No material change in Mineral Resources totalling 191.6 million platinum ounces and Mineral Reserves
of 22.4 million platinum ounces
Group performance
2017 2016 2015
Operating statistics
Gross refined production
Platinum (000oz) 1 530 1 438 1 276
Palladium (000oz) 932 885 792
Rhodium (000oz) 204 185 172
Nickel (000t) 17 17 15.9
IRS metal returned (toll refined)
Platinum (000oz) - - -
Palladium (000oz) - 2 1
Rhodium (000oz) - - -
Nickel (000t) 2.6 3.5 3.3
Sales volumes
Platinum (000oz) 1 469 1 512 1 273
Palladium (000oz) 904 906 789
Rhodium (000oz) 203 197 165
Nickel (000t) 14.4 14.2 11.6
Prices achieved
Platinum (000oz) 984 961 1 241
Palladium (000oz) 723 586 804
Rhodium (000oz) 788 735 1 187
Nickel (000t) 9 992 9 483 15 458
Consolidated statistics
Average exchange rate achieved (US$/oz) 13.66 14.39 11.41
Closing exchange rate for period (US$/oz) 13.07 14.69 12.17
Revenue per platinum ounce sold (US$/oz) 1 806 1 627 2 199
(R/oz) 24 670 23 413 25 091
Tonnes milled ex mine (000t) 18 332 18 426 16 024
PGM production (000oz) 3 100 2 908 2 618
Group unit cost per platinum ounce (US$/oz) 1 664 1 507 1 947
(R/oz) 22 691 21 731 22 222
Headline earnings/(loss) (Rm) (983) 83 221
Gross profit margin (%) (1.4) - 5
Capital expenditure (Rm) 3 425 3 560 4 287
Cash net of debt/(debt net of cash) (Rm) (332) 19 (3 464)
Key non-financial performance
Fatality injury frequency rate (pmmhw*) 0.074 0.091 0.058
Lost-time injury frequency rate (pmmhw*) 5.92 6.49 5.27
Total injury frequency rate (pmmhw*) 13.14 12.31 9.78
Employees (including contractors) (no) 52 012 50 720 54 036
Employee turnover (%) 9 8 5
HDSA in management (%) 59 53 51
Energy intensity (GJ/tonnes milled) 0.858 0.823** 0.856**
Water intensity (Ml/tonnes milled) 0.002 0.003** 0.003**
Total CO2 intensity (t/tonnes milled) 0.178 0.174** 0.209**
Total direct SO2 intensity (t/tonnes milled) 0.002 0.002 0.002
Water recycled % (water recycled/ 46 41 36
water consumed)
Share performance
Headline earnings/(loss) per share (cents) (137) 12 36
Closing share price (R) 37 47 54
Market capitalisation (R billion) 27 35 34
* Pmmhw - per million man-hours worked
** Restated to take into account ore milled at Mimosa
Commentary
SUMMARISED CONSOLIDATED ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2017
Introduction
Implats' focus during the 2017 financial year has remained firmly on the continued implementation of its strategic
response plan to succeed in a low-price environment. Our view is that the current metal price environment could
conceivably stay lower for even longer and could be viewed as 'the new normal'.
The plan encapsulates overall cost optimisation, reprioritising and rescheduling capital expenditure, productivity
improvements at Impala Rustenburg, strengthening the Group balance sheet and retaining its social licence to operate
in an ethical manner. While this plan is advancing, further considerable change initiatives are needed to ultimately
ensure the sustainability and profitability of the Group.
There has been good progress in some areas with excellent operational performances from many operations. Group platinum
production reached 1.53 million platinum ounces for the year (2016: 1.44 million). Sub-optimal performances were
delivered by Impala Rustenburg and Marula, while all other operations performed at or above expectation, supplemented
by a 35% increase in tolling throughput at Impala Refinery Services (IRS).
While Impala produced 654 600 ounces of platinum for the year (as guided at the half year), it nonetheless incurred a
headline loss after tax of R2.68 billion. This was largely a result of sustained low rand basket prices, a cost base
that is structured for a higher level of production and persistently low operational efficiencies. It is clear that we
cannot accept it being business as usual for Impala. A comprehensive strategic review of this operation is planned to
ensure that it will operate at a cash neutral level in what is perceived to be the new normal pricing environment.
The review will be focused on returning the mine to profitability by prioritising profitability and value, over volume.
Similarly, Marula made a headline loss after tax of R737 million. This was largely due to disruptions to its
operations by surrounding communities. A comprehensive stakeholder engagement process has been initiated to mitigate
against further disruptions and, in addition, the mine undertook a section 189 retrenchment process to restructure its
cost base. The target for Marula to be cash positive at Group level in 2018 has been set, and will be strictly
monitored each quarter throughout the coming year.
Safety and sustainability
While there has been Group-wide progress in terms of its safety performance, it is with deep sadness and regret that
Implats reports nine work-related fatalities during the year. Safe production is vital to Implats' sustainability. Human
behaviour continues to contribute to many safety incidents and the emphasis is on ensuring effective leadership, responsible
behaviour, and driving a culture of personal accountability and interdependence.
During the year, Zimplats completed a consecutive 365 days without a single lost-time injury - a safety milestone well
worth highlighting. Several other operations also reached significant safety achievements during the year.
The LTIFR improved 8.8% from the previous year to 5.92 per million man-hours worked (including contractors) compared
to 6.49 per million man-hours last year.
The Group recognises that its ability to enhance delivery and sustain Group-wide operational efficiencies depends on
the skills, safety, well-being and motivation of employees. Pleasing progress has been made in enhancing the
relationships with unions, communities and other key stakeholders.
Implats continued to deliver against commitments in terms of the Group's social and labour plans (SLPs) at its South
African operations, and targeted corporate social investments in Zimbabwe. Phase 2 of the Platinum Village, a home
ownership project in Rustenburg, is almost complete and 321 houses have been built this year, taking the total units
to 849 at this complex. There is strong ongoing demand for these houses and approval for phase 3 is being motivated.
Year in review
Group headline earnings per share decreased from 12 cents per share to a loss of 137 cents per share.
Revenue was assisted by a marginally improved rand basket and rose to R36.8 billion from R35.9 billion. Overall,
production from the Group's operations increased year-on-year, but this benefit was more than offset by planned
higher levels of refined stock at year end.
Increases in Group unit costs, year on year, were contained at 4.4% and cost of sales increased by 4.0%. However,
revenue only increased by 2.5% as all production was not sold. This combination, largely resulted in the decline in
gross profit from R4 million to a loss of R529 million.
In 2007, Impala prepaid the estimated contractual Royal Bafokeng royalty and the Royal Bafokeng used this prepayment
to subscribe for shares in Implats. The prepayment was raised on the balance sheet and is amortised annually based
on units of production. Our current view of the estimated value of what would have been the royalty payments has
changed materially since 2007 given unexpected persistently low metal prices and depressed levels of production.
A decision was therefore taken by management to impair the full amount of R10.2 billion, which after deferred tax
amounts to R7.3 billion.
The income tax credit for the current year includes deferred tax of R2.8 billion on the impairment of the prepayment.
This is excluded from the headline earnings. Current tax (on headline earnings) increased compared to 2016 as a result
of a non-recurring tax credit on a bad debt in 2016 and an increase in additional profits tax for Zimplats in the
current year.
The Group's mine-to-market output was 1.28 (2016: 1.25) million platinum ounces. Lower deliveries from Marula and
Two Rivers were offset by higher volumes from Impala and Zimplats. Third-party platinum production increased by
35% to 246 700 ounces. Consequently, gross refined platinum production increased by 6.4% to 1.53 million ounces.
The cash preservation programme has continued. Capital expenditure of R3.43 billion was maintained at similar
levels to the previous year (2016: R3.56 billion). Over the last year, R1.14 billion was spent on the two development
shafts, 16 and 20, at Impala Rustenburg. In other areas, additional capital was deferred as a response to the ongoing
low-price environment. Cost containment has also been successful with the Group recording cost savings in excess of
R1 billion over the last two years.
Importantly, Implats has further strengthened its balance sheet through the conclusion of the R6.5 billion new
convertible bond issue, which was raised mainly to early refinance the 2018 convertible bonds of R4.5 billion.
At 30 June 2017, R300 million and US$29 million of the 2018 convertible bonds remain unredeemed and will be settled
on maturity in February 2018.
Cash generated from operations reduced to R1.0 (2016: R2.7) billion mainly as a result of the operating challenges
at Impala Rustenburg. At year end, the Group had gross cash of R7.8 (2016: R6.8) billion on hand and R4 billion in
unutilised bank debt facilities, which remain available until 2021.
Impala Rustenburg: Impala Rustenburg was impacted by two extraordinary events that reduced output during the year.
The first event was the fire at 14 Shaft in January 2016, resulting in the temporary closure of the decline section
at this shaft to effect repairs. The second event was the collapse of ground incident at 1 Shaft in May 2016, resulting
in the introduction of reduced UG2 panel lengths in certain areas. The required work at both the shafts has progressed
well. The rehabilitation work at the 14 Shaft decline was completed ahead of schedule in April 2017. Production from
1 Shaft will be back at steady state from July 2017.
During the first half of the financial year, the Impala Rustenburg operations were significantly impacted by Section 54
safety stoppages. Following close engagement between management, employees and government authorities, there has been a
notable reduction in all stoppages, including Section 54 stoppages. It is hoped that the relentless pursuit of compliance
with safety policies will result in further reductions in Section 54s and internal stoppages.
During May 2015, Implats raised R3.9 billion in equity for the purpose of completing construction of the new 16 and
20 shafts in order for those shafts to ramp up to steady state production. At the end of June 2017, R2.4 billion of
the money raised had been spent, leaving a balance of R1.5 billion.
At 30 June 2017, the work anticipated at the time of raising the money was 98% complete for 16 Shaft and 92% for 20 Shaft.
Both projects have been thoroughly reviewed to determine their ability to deliver 310 000 platinum ounces sustainably.
The tonnage and grade expectations from the mine layout have been re-affirmed, but logistic studies have revealed that
additional ore and men/material capacity will be required at full production. At both the shafts it also became necessary
to line ore passes that experience excessive scaling. At 16 Shaft, the third phase of the refrigeration requirements
has now been added to the scope to complete the project as it will now be required in the medium-term. Collectively,
a total of R2.2 billion remains to be spent on these projects over the next five years. Given the R1.5 billion
remaining from the equity raise, there is a shortfall of R700 million to complete the projects. The inclusion of
these items above have now reduced the project completion percentages to 86% and 88% for 16 and 20 shafts, respectively.
An Impala Rustenburg mining optimisation project was initiated in January 2017, one of several initiatives being
implemented to ensure that Impala returns to profitability. A priority target of returning Impala to a cash neutral
position by 2019 has now been set assuming the current low platinum price environment remains as is. This incorporates
an assessment of each shaft and production area and will result in a mining complex that is likely to be somewhat
different to the large and intricate operation that is known today. This may lead to the disposal or suspensions or
harvesting of marginal and loss-making shafts. Such decisions, will be made in the best interests of all stakeholders,
the sustainability of the Group and with restoration of shareholders returns.
Impala's leadership has been strengthened and realigned to ensure that a fit for purpose team is in place to drive
performance, to increase production volumes, and improve efficiencies and productivity.
Marula: Mining activities at Marula were severely disrupted by community protest action resulting in the operation
producing only 67 900 (2016: 77 700) ounces of platinum in concentrate. Community members are dissatisfied with
the way their 50% interest in the Makgomo Chrome project is being managed by the community's appointed leaders,
leading to the suspension of all chrome operations from February 2017 to date.
Prior to the end of the financial year, an organisational restructuring was successfully completed to better position
the mine for future profitability in the prevailing low-price environment. Overall staff complement has reduced by
some 980 people, including retrenchments of 268 own employees through a Section 189 process through the closure of
the unprofitable hybrid section at Clapham. Operations are now focused on the low cost footwall section at Clapham.
Production levels have improved over recent months and the focus is on retaining this momentum.
While ongoing engagement with all stakeholders to address community concerns and external disruptions show progress,
it is imperative the operation become cash generative within the immediate short-term. If Marula does not meet the
stated objective of being cash neutral at Group level for whatever reason, there will be no other option but to
suspend operations.
Zimplats: The redevelopment of Bimha Mine has progressed as planned and the mine is successfully ramping up to reach
full production in April 2018. By utilising additional material mined from the temporary opencast section, platinum
production was maintained at 281 100 ounces in matte for the year. The development of the US$264 million Mupani Mine
(Portal 6) was approved in November 2016 and the new underground mining complex, with a design capacity of 2.2 million
tonnes per annum, is targeted to reach full production in 2025. Mupani, a replacement portal for the Rukodzi and
Ngwarati Mines, will sustain the mining operation well into the future.
The focus is now on generating cash for the Group and to this end a dividend policy of 3.5 time headline earnings has
been approved by the Zimplats board.
Mimosa: Regrettably, Mimosa incurred one fatality during the year. Operations were sustained through the low-price
environment to record another exceptional year. The operation produced a record, 121 600 ounces of platinum in concentrate,
its highest production level ever. The feasibility study for the construction of a smelter at Mimosa has been completed,
to align with the Zimbabwean Government's beneficiation ambitions, but which is unaffordable in the new normal pricing
environment. Mimosa is continuing to consult government with regard to the proposed implementation of a 15% export levy
on unbeneficiated platinum, which has been deferred to 1 January 2018. It has been communicated that neither the
smelter nor the export levy is affordable and could result in mine closure.
Two Rivers: Two Rivers posted another outstanding year in terms of safety and production. This operation has been
fatality free for more than five years and produced 181 900 ounces of platinum in concentrate. Two Rivers is Implats'
lowest-cost producer and has now secured optionality to maintain and potentially increase its production levels through
access to the Tamboti mineral rights. When these rights are transferred into Two Rivers, Implats' interest in Two Rivers
will decrease from 49% to 46%.
IRS: IRS remains an important Group asset. Over the last year, the unit delivered platinum production of 875 200
(2016: 811 500) ounces from a combination of mine-to-market operations, third-party purchases, and toll volumes.
One of the major opportunities for the Group is IRS's access to spare smelting and refining capacity from Impala
to ensure the processing of planned production from other operations and contracted third-party material, as
well as additional material from new customers.
Market review
Overall demand for PGMs from major demand sectors remained stable during 2016 and into the first half of 2017.
Demand for platinum was supported by a combination of rising vehicle sales and higher loadings in Western Europe,
as well as increased industrial requirements in both North America and China. Palladium demand remained healthy on
the back of increasing vehicle sales in China and the US. Increased demand from the automotive and chemical industries
underpinned rhodium.
On the other hand, the primary supply of PGMs remained constrained, while secondary supply was muted, recovering only
in the last months of the 2016 calendar year on the back of higher steel and palladium/rhodium prices. The secondary
supply of platinum, however, experienced an unusual hike as Chinese jewellery stocks were recycled.
The supply environment remains under continued risk largely due to a lack of capital investment. The low rand prices
continue to place unprofitable shafts at risk, along with challenges related to safety incidents and associated
operational stoppages, as well as increasing production costs.
Market performance
The platinum and palladium markets remained in fundamental deficit for most of the year, and there was a small surplus
in the rhodium market. The platinum price ended this financial year 11% lower at US$922 per ounce, compared to the
start of the financial year (US$1 033 per ounce). The average price for the year was 4% higher at US$988 per ounce,
compared to the previous financial year.
Platinum price movements during the year continued to show a disconnect to market fundamentals, which made platinum
pricing susceptible to investor sentiment around global risk. Additionally, anti-diesel sentiment in Europe/India and
the fall in Chinese jewellery demand continue to weigh on platinum prices.
Negative sentiment towards the internal combustion engine, and diesel in particular, has increased over the last
12 months. Much is being made of battery electric vehicles as the solution to effective carbon dioxide and NOx reduction.
However, to be truly effective, these will require a significant increase in renewable energy generation, which is
potentially decades away. It is interesting to note that the reduction in diesel vehicle share in the Western European
market has been offset by an increase in sales of gasoline vehicles, not battery. Growth in the electric vehicle space
has been via hybrid vehicle sales, which do provide a more immediate answer to emissions reductions. Given the introduction
of Real Driving Emissions (RDE) testing, these will require higher loadings of PGM's to negotiate the more frequent
'stop-start' conditions.
In contrast, palladium prices were 42% higher at US$841 per ounce, compared to the start of the financial year
(US$593 per ounce). Palladium prices reached a high of US$900 per ounce during June 2017, while the average price
for the year was US$737 per ounce. Support for palladium was driven by robust demand from autocatalyst fabricators,
positive sentiment towards the automobile sector and expectations of further palladium price gains.
Rhodium performed exceptionally well, showing the largest rally in the PGM basket for the year. Rhodium prices closed
the financial year 60% higher at US$1 018 per ounce after opening at US$638 per ounce. The average price for the year
was US$803 per ounce, largely on the back of the absence of liquidity and the increasing demand from both the automotive
and industrial sectors.
The gradual recovery of the global economy, with the anticipated revival in industrial production and consumer demand,
is expected to be the biggest driver of increased PGM demand in the medium to long-term. The platinum and palladium
markets are expected to remain in a fundamental deficit in 2017, while rhodium is expected to remain in a small surplus.
Implats expects a slight decline in the use of platinum in the automotive industry in 2017, in favour of palladium and
driven by an increasing share of gasoline vehicle sales. However, with increasing palladium prices, it is forecast that
research into the back substitution of platinum in three-way catalysts will result in increased usage of platinum in
gasoline engines in the coming years.
Current environment
The mining industry in both South Africa and Zimbabwe, the two jurisdictions where the Group operates, is characterised
by rapidly increasing uncertainty. This is evidenced by the gazetting and then suspension of the new Mining Charter in
South Africa and increased calls for beneficiation as well as a potential 15% export levy on un-beneficiated platinum
in Zimbabwe. Community activism continues to escalate and poses a material risk to sustainable mining operations.
These are risks that require considerable attention at executive level. To supplement the Group's existing executive
capability, action has been taken to develop strength in and across the leadership team.
Internally, progress has been made over the last two years to ensure cost saving and optimisation throughout the
Group, while advancing commitments related to our social licence to operate, which continue to benefit Implats'
wide-ranging group of stakeholders. Increased organisational effectiveness is, however, required to improve the
delivery of cost effective ounces. Senior leadership changes have been made and will continue across the Group
with the primary objective being improved role clarity and accountability. Systems are being introduced to improve
interdivisional relationships so that these are more collaborative and value adding.
Mineral Resources and Mineral Reserves
There is no material change in Implats' total attributable Mineral Resource estimate at 30 June 2017, which reduced by
2.4 million ounces of platinum to 191.6 million from that reported previously in June 2016. This can mainly be ascribed
to mining depletion. The grouping of platinum ounces per reef shows that the Zimplats Mineral Resource makes up 49% of
the total Implats inventory.
Overall the total attributable Group Mineral Reserve estimate did not change significantly and increased by 0.8 million
ounces of platinum to 22.4 million as at 30 June 2017 compared to 21.6 million platinum ounces in the previous financial
year. Some 54% of the total attributable Mineral Reserves are located at Impala and a further 33% is hosted within the
Main Sulphide Zone at Zimplats.
Prospects and outlook
One of the core pillars of Implats' strategy has been to strengthen the balance sheet and this has necessitated an
enhanced focus on capital allocation and cash management. This is continuing as a focused priority. Implats has one of the
best-in-sector balance sheets and this strength is, and will be, a critical element of its ambition to develop strategic
optionality. The enforcement of strict capital allocation will be equally important as management re-examines the
Impala Rustenburg's investment case.
It is imperative to continue developing the Group's strategic agility. Market dynamics are being re-examined,
specifically long-term price forecasts, and an assessment aimed at enhancing strategic optionality is also being completed,
within and beyond the current portfolio. The assessment is reviewing all operations and will result in the elimination of
loss-making production, while interrogating future dependence on high-cost, deep, conventional mining operations. Implats
is intent on securing assets that provide optionality for cheaper, shallower and mechanised resources.
The Group has made some progress in delivering its strategic response to the current price environment. The operational
strategy and planning is directed toward the expectation of ongoing price constraints and all operations are being
adapted to this reality. Implats remains committed to the strategic nature and future fundamentals of the PGM market.
While short-term volatility in the demand and pricing of these rare and unique metals is recognised, they remain critical
to the ever growing needs and requirements of a global economy, with increasing demands for cleaner air.
Given our view that current PGM prices may be the new normal, the board has decided to maintain 17 Shaft on care and
maintenance until there is more confidence in a rising metal price environment.
The transition to a more concentrated, low cost operation at Impala Rustenburg continues. However, a slower build-up
at 16 and 20 Shafts, lower production levels at the mature shafts and the earlier closure of the end-of-life shafts will
impact on the production profile over the next five years. It is now expected that 750 000 ounces of platinum will be
achieved in 2022. This may be further affected by the strategic review being conducted.
A tremendous amount of excellent work has been done to facilitate acceptance within the Group's host communities and
to secure relationships with government and other authorities. This will remain a key focus area as commitments to
responsible environmental stewardship and the wellbeing of employees are unwavering.
For the next financial year, production estimates are as follows:
- Rustenburg - between 680 000 and 720 000 ounces
- Marula - 85 000 platinum ounces in concentrate
- Zimplats - 260 000 platinum ounces in matte
- Two Rivers - 175 000 platinum ounces in concentrate
- Mimosa - 115 000 - 120 000 platinum ounces in concentrate.
The Group's operating cost is expected to be less than R23 100 per platinum ounce for the next financial year.
Approval of the financial statements
This summarised financial statements are extracted from audited information, but is not itself audited. The directors
of the Company take full responsibility for the preparation of the summary consolidated annual results for the period
ended 30 June 2017 and that the financial information has been correctly extracted from the underlying annual financial
statements.
The directors of the Company are responsible for the maintenance of adequate accounting records and the preparation of
the financial statements and related information in a manner that fairly presents the state of the affairs of the
Company. These 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 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 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 financial statements have been approved by the board of directors and are signed on their behalf by:
MSV Gantsho NJ Muller
Chairman Chief executive officer
Johannesburg
14 September 2017
Consolidated statement of financial position as at 30 June 2017
2017 2016
Notes Rm Rm
Assets
Non-current assets
Property, plant and equipment 6 47 798 49 722
Exploration and evaluation assets 385 385
Investment property 89 173
Investment in equity-accounted entities 3 316 3 342
Deferred tax 389 37
Other financial assets 327 312
Derivative financial instrument 7 - 1 137
Prepayments - 10 180
52 304 65 288
Current assets
Inventories 8 8 307 8 202
Trade and other receivables 3 736 3 605
Other financial assets 2 12
Prepayments 1 293 1 121
Cash and cash equivalents 7 839 6 788
21 177 19 728
Total assets 73 481 85 016
Equity and liabilities
Equity
Share capital 20 000 19 547
Retained earnings 22 982 31 200
Other components of equity 3 825 5 161
Equity attributable to owners of the Company 46 807 55 908
Non-controlling interest 2 425 2 548
Total equity 49 232 58 456
Liabilities
Non-current liabilities
Deferred tax 4 390 8 574
Borrowings 9 8 373 8 715
Derivative financial instrument 7 1 233 -
Sundry liabilities 356 443
Provisions 1 099 1 082
15 451 18 814
Current liabilities
Trade and other payables 6 902 6 382
Current tax payable 702 645
Borrowings 9 1 088 564
Other financial liabilities 74 66
Sundry liabilities 32 89
8 798 7 746
Total liabilities 24 249 26 560
Total equity and liabilities 73 481 85 016
Consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2017
2017 2016
Notes Rm Rm
Revenue 36 841 35 932
Cost of sales 10 (37 370) (35 928)
Gross (loss)/profit (529) 4
Other operating income 1 191 647
Other operating expenses (325) (198)
Impairment 11 (10 229) (307)
Royalty expense (561) (516)
Loss from operations (10 453) (370)
Finance income 411 369
Finance cost (811) (705)
Net foreign exchange transaction gains/(losses) 154 (549)
Other income 398 547
Other expenses (883) (154)
Share of profit of equity-accounted entities 496 262
Loss before tax (10 688) (600)
Income tax credit 2 590 557
Loss for the year (8 098) (43)
Other comprehensive income/(loss), comprising items
that may subsequently be reclassified to profit or loss:
Available-for-sale financial assets 14 (7)
Deferred tax thereon (3) -
Share of other comprehensive income of
equity-accounted entities (219) 342
Deferred tax thereon 22 (34)
Exchange differences on translating foreign operations (1 555) 2 380
Deferred tax thereon 203 (311)
Other comprehensive income/(loss), comprising items that
will not be subsequently reclassified to profit or loss:
Actuarial gain/(loss) on post-employment medical benefit 2 (1)
Deferred tax thereon - -
Total comprehensive (loss)/income (9 634) 2 369
Profit/(loss) attributable to:
Owners of the Company (8 220) (70)
Non-controlling interest 122 27
(8 098) (43)
Total comprehensive income/(loss) attributable to:
Owners of the Company (9 554) 1 990
Non-controlling interest (80) 336
(9 634) 2 326
Earnings per share (cents per share)
Basic (1 145) (10)
Diluted (1 145) (10)
Consolidated statement of changes in equity for the year ended 30 June 2017
Share-
based Total
Ordinary Share payment share Retained
shares premium reserve capital earnings
Rm Rm Rm Rm Rm
Balance at 30 June 2016 18 17 252 2 277 19 547 31 200
Shares issued
- Employee Share Ownership Programme - 479 - 479 -
Conversion option settlement - (79) - (79) -
Shares purchased - Long-term Incentive Plan - (38) - (38) -
Share-based compensation expense
- Long-term Incentive Plan - - 91 91 -
Total comprehensive income/(loss) - - - - (8 218)
- Profit/(loss) for the year - - - - (8 220)
- Other comprehensive income/(loss) - - - - 2
Transaction with NCI - - - - -
Dividends - - - - -
Balance at 30 June 2017 18 17 614 2 368 20 000 22 982
Balance at 30 June 2015 16 13 369 2 348 15 733 31 271
Shares issued (note 14)
- Ordinary share issue 2 3 998 - 4 000 -
- Ordinary share issue transaction cost - (100) - (100) -
- Implats Share Incentive Scheme - 2 - 2 -
Shares purchased - Long-term Incentive Plan (note 14) - (17) - (17) -
Share-based compensation expense (note 14)
- Long-term Incentive Plan - - (71) (71) -
Total comprehensive income/(loss) - - - - (71)
- Profit/(loss) for the year - - - - (70)
- Other comprehensive income/(loss) - - - - (1)
Dividends - - - - -
Balance at 30 June 2016 18 17 252 2 277 19 547 31 200
Consolidated statement of changes in equity for the year ended 30 June 2017 (continued)
Attributable to:
Foreign
currency Other Owners Non-
translation components of the controlling Total
reserve of equity Company interest equity
Rm Rm Rm Rm Rm
Balance at 30 June 2016 5 092 69 55 908 2 548 58 456
Shares issued
- Employee Share Ownership Programme - - 479 - 479
Conversion option settlement - - (79) - (79)
Shares purchased - Long-term Incentive Plan - - (38) - (38)
Share-based compensation expense
- Long-term Incentive Plan - - 91 - 91
Total comprehensive income/(loss) (1 347) 11 (9 554) (80) (9 634)
- Profit/(loss) for the year 0 0 (8 220) 122 (8 098)
- Other comprehensive income/(loss) (1 347) 11 (1 334) (202) (1 536)
Transaction with NCI - - - 11 11
Dividends - - - (54) (54)
Balance at 30 June 2017 3 745 80 46 807 2 425 49 232
Balance at 30 June 2015 3 024 76 50 104 2 258 52 362
Shares issued (note 14)
- Ordinary share issue - - 4 000 - 4 000
- Ordinary share issue transaction cost - - (100) - (100)
- Implats Share Incentive Scheme - - 2 - 2
Shares purchased - Long-term Incentive Plan (note 14) - - (17) - (17)
Share-based compensation expense (note 14)
- Long-term Incentive Plan - - (71) - (71)
Total comprehensive income/(loss) 2 068 (7) 1 990 336 2 326
- Profit/(loss) for the year - - (70) 27 (43)
- Other comprehensive income/(loss) 2 068 (7) 2 060 309 2 369
Dividends - - - (46) (46)
Balance at 30 June 2016 5 092 69 55 908 2 548 58 456
The table above excludes the treasury shares, Morokotso Trust (ESOP) and the Implats Share Incentive Scheme as these
structured entities are consolidated.
Consolidated statement of cash flows for the year ended 30 June 2017
2017 2016
Rm Rm
Cash flows from operating activities
Cash generated from operations 3 049 4 216
Exploration costs (8) (13)
Finance cost (716) (589)
Income tax paid (1 312) (883)
Net cash from operating activities 1 013 2 731
Cash flows from investing activities
Purchase of property, plant and equipment (3 432) (3 658)
Proceeds from sale of property, plant and equipment 49 42
Purchase of available-for-sale financial assets (7) (152)
Purchase of held-to-maturity financial assets - (70)
Proceeds from available-for-sale financial assets - 23
Proceeds from held-to-maturity financial assets 7 40
Loans granted (1) (2)
Loan repayments received 15 24
Finance income 426 394
Dividends received 279 439
Net cash used in investing activities (2 664) (2 920)
Cash flows from financing activities
Issue of ordinary shares, net of transaction cost 479 3 902
Shares purchased - Long-term Incentive Plan (38) (17)
Repayments of borrowings (4 593) (13)
Cash from CCIRS 728 -
Proceeds from borrowings net of transaction costs 6 278 389
Dividends paid to non-controlling interest (54) (46)
Net cash from financing activities 2 800 4 215
Net increase in cash and cash equivalents 1 149 4 026
Cash and cash equivalents at the beginning of the year 6 788 2 597
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies (98) 165
Cash and cash equivalents at the end of the year 7 839 6 788
Notes to the consolidated financial information for the year ended 30 June 2017
1. General information
Impala Platinum Holdings Limited (Implats, Group or Company) 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 securities exchange operated by JSE Limited in South Africa, the Frankfurt
Stock Exchange (2022 US$ convertable bonds) and a level 1 American Depository Receipt programme in the
United States of America.
The summarised consolidated financial information was approved for issue on 14 September 2017 by the board of directors.
2. Audit opinion
This summarised report is extracted from audited information, but is not itself audited. The annual financial
statements were audited by PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon. The audited annual
financial statements and the auditor's report thereon are available for inspection at the Company's registered office
and on the Company's website.
The directors take full responsibility for the preparation of the summarised consolidated financial statements and
that the financial information has been correctly extracted from the underlying annual financial statements.
3. Basis of preparation
The summarised consolidated financial statements for the year ended 30 June 2017 have been prepared in accordance
with the JSE Limited Listings Requirements (Listings Requirements) and the requirements of the Companies Act, Act 71 of
2008 applicable to summarised financial statements. The Listings Requirements require financial statements to be prepared
in accordance with the framework concepts and the measurement and recognition requirements of International Financial
Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, and contain the information
required by IAS 34 Interim Financial Reporting.
The summarised consolidated financial information should be read in conjunction with the consolidated financial
statements for the year ended 30 June 2017, which have been prepared in accordance with IFRS.
The summarised consolidated financial information has 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
liabilities for cash-settled share-based payment arrangements which are measured using a binomial option model.
The summarised consolidated financial information is presented in South African rand, which is the Company's
functional currency.
4. Accounting policies
The principal accounting policies applied in the preparation of the consolidated financial statements, from which the
summarised consolidated financial statements were derived, are in terms of IFRS. The following new standards and
amendments to standards have become effective or have been early adopted by the Group as from 1 July 2016 without any
significant impact:
- IFRS 2 - Share-based Payment
- Amendments to IAS 40 - Investment Property
- Improvements to IFRS Standards 2014-2016 Cycle
- IFRIC 22 - Foreign Currency Transactions and Advance Consideration
5. Segment information
The Group distinguishes its segments between the different mining operations, refining services, chrome processing
and a all other segment.
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 6).
Impala mining segment's two largest sales customers amounted to 12% and 10% of total sales (June 2016: 10% each).
30 June 2017 30 June 2016
Profit/(loss) Profit/(loss)
Revenue after tax Revenue after tax
Rm Rm Rm Rm
Mining
- Impala 14 604 (9 860) 14 556 (1 439)
- Zimplats 7 038 576 6 753 144
- Marula 1 616 (709) 1 678 (426)
Impala Refining Services 21 711 1 292 20 539 1 454
Impala Chrome 432 127 314 67
All other segments - 29 - (10)
Inter-segment revenue (8 560) - (7 908) -
Total 36 841 (8 545) 35 932 (210)
Share of profit of equity accounted entities 496 262
Unrealised profit in stock consolidation adjustment (51) (48)
Additional depreciation on assets
carried at consolidation (23) (27)
IRS pre-production realised on Group 42 -
Net realisable value adjustment made
on consolidation (17) (20)
Total loss after tax (8 098) (43)
Capital Total Capital Total
expenditure assets expenditure assets
Rm Rm Rm Rm
Mining
- Impala 2 472 35 696 2 490 45 607
- Zimplats 864 18 353 981 19 358
- Marula 113 2 582 89 2 507
Impala Refining Services - 8 402 - 6 824
Impala Chrome 1 161 - 182
All other segments (16) 32 257 - 29 928
Total 3 434 97 451 3 560 104 406
Intercompany accounts eliminated (26 279) (23 354)
Investment in equity-accounted entities 3 316 3 342
Mining right accounted on consolidation 811 844
IRS preproduction stock adjustment (463) -
Unrealised profit in stock and NRV adjustment
to inventory (273) (213)
Impala segment bank overdraft taken to cash (1 091) -
Other 9 (9)
Total consolidated assets 73 481 85 016
6. Property, plant and equipment
30 June 30 June
2017 2016
Rm Rm
Opening net book amount 49 722 47 248
Capital expenditure 3 434 3 560
14 Shaft re-establishment - 69
Interest capitalised - 29
Disposals (22) (13)
Depreciation (note 10) (3 702) (3 319)
Impairment - (257)
Scrapping - (106)
Transfer to investment property - (223)
Rehabilitation adjustment 16 143
Exchange adjustment on translation (1 650) 2 591
Closing net book amount 47 798 49 722
Capital commitment
Capital expenditure approved at 30 June 2017 amounted to R7 billion (June 2016: R7.2 billion), of which R1.6 billion
(June 2016: R1.3 billion) is already committed. This expenditure will be funded internally and, if necessary, from borrowings.
7. Derivative financial instrument
2017 2016
Asset Note Rm Rm
Cross Currency Interest Rate Swap (CCIRS) (2018) 7.1 - 1 137
7.1 Cross Currency Interest Rate Swap (CCIRS) (2018)
Implats entered into a CCIRS amounting to US$200 million to hedge the foreign exchange risk on the US$ convertible bonds,
being: exchange rate risk on the dollar interest payments and the risk of a future cash settlement of the bonds at a
rand-dollar exchange rate weaker than R9.24/US$. US$200 million was swapped for R1 848 million on which Implats pays a
fixed interest rate to Standard Bank of 5.94%. Implats receives the 1% coupon on the US$200 million on the same date which
Implats pays-on externally to the bond holders. During June 2017, Implats cancelled the CCIRS and paid an amount of
R1 839 million for the receipt of US$200 million.
No hedge accounting has been applied.
2017 2016
Liability Note Rm Rm
Cross Currency Interest Rate Swap (CCIRS) (2022) 7.2 49 -
Conversion option - US$ convertible bond (2022) 7.3 547 -
Conversion option - ZAR convertible bond (2022) 7.4 637 -
1 233 -
7.2 Cross Currency Interest Rate Swap (CCIRS) (2022)
Implats entered into a CCIRS amounting to $250 million to hedge the foreign exchange risk on the US$ convertible bond,
being: exchange rate risk on the dollar interest payments and the risk of a future cash settlement of the bonds at a
rand-dollar exchange rate weaker than R13.025/US$. US$250 million was swapped for R3 256 million on which Implats
pays a fixed interest rate to Standard Bank of 9.8%. Implats receives the 3.25% coupon on the US$250 million on the
same date which Implats pays-on externally to the bond holders and the interest thereon. In June 2022, Implats will
receive $250 million for a payment of R3 256 million.
The CCIRS is carried at its fair value of R49 million. No hedge accounting has been applied.
7.3 Conversion option - US$ convertible bond (2022) (note 9.5)
The US$ bond holders have the option to convert the bonds to Implats shares (subject to shareholders' approval) at a
price of $3.89. The value of this conversion option was R559 million at initial recognition. The conversion option is
carried at its fair value of R547 million, resulting in a R12 million profit for the period. At the general meeting
held by shareholders' on 24 July 2017, the approval to settle this option by means of Implats shares was obtained.
Given this option is US$ denominated it does not meet the definition of equity (fixed number of shares for fixed
amount) and will continue to be accounted for as a derivative financial instrument in future.
7.4 Conversion option - ZAR convertible bond (2022) (note 9.4)
The ZAR bond holders have the option to convert the bonds to Implats shares (subject to shareholders' approval) at
a price of R50.01. The value of this conversion option was R676 million at initial recognition. The conversion option
is carried at its fair value of R637 million, resulting in a R39 million profit for the period. At the general meeting
held by shareholders' on 24 July 2017, the approval to settle this option by means of Implats shares was obtained.
This option meets the definition of equity and will therefore be accounted within equity from 24 July 2017.
8. Inventories
30 June 30 June
2017 2016
Rm Rm
Mining metal
Refined metal 350 259
In-process metal 2 977 2 523
3 327 2 782
Non-mining metal
Refined metal 993 1 267
In-process metal 3 252 3 360
4 245 4 627
Stores and materials inventories 735 793
Total carrying amount 8 307 8 202
The write-down to net realisable value comprises R78 million (2016: R106 million) for refined mining metal and
R948 million (2016: R558 million) for in-process mining metal.
Included in refined metal is metal on lease to third parties of 36 000 ounces (2016: 36 000 ounces) ruthenium.
Quantities of recoverable metal are reconciled by comparing the grades of ore to the quantities of metal actually
recovered (metallurgical balancing). The nature of this process inherently limits the ability to precisely monitor
recoverability levels. As a result, the metallurgical balancing process is constantly monitored and the engineering
estimates are refined based on actual results over time. Changes in engineering estimates of metal contained in-process
resulted in an increase of in-process metal of R376 (2016: R384) million.
Non-mining metal consists mainly of inventory held by Impala Refining Services. No inventories are encumbered.
9. Borrowings
30 June 30 June
2017 2016
Notes Rm Rm
Standard Bank Limited - BEE partners Marula 889 882
Standard Bank Limited - Zimplats term loan 9.1 1 111 1 248
Standard Bank Limited - Zimplats
revolving credit facility 314 353
Convertible bonds - ZAR (2018) 9.2 303 2 575
Convertible bonds - US$ (2018) 9.3 380 2 848
Convertible bonds - ZAR (2022) 9.4 2 516 -
Convertible bonds - US$ (2022) 9.5 2 609 -
Finance leases 1 339 1 373
9 461 9 279
Current 1 088 564
Non-current 8 373 8 715
Beginning of the year 9 279 8 076
Proceeds 6 278 389
Interest accrued 664 625
Interest repayments (533) (492)
Capital repayments (4 593) (13)
Conversion option on 2022 Bonds (1 156) -
Loss on settlement of 2018 Bonds 8 -
Exchange adjustment (486) 694
End of the year 9 461 9 279
9.1 Standard Bank Limited - Zimplats term loan
US $ denominated revolving credit facility of R1 111 (US$85) million bears interest at three-month London Interbank
Offered Rate (LIBOR) plus 700 (2016: 700) basis points. During the year the facility was decreased from US$95 million
to $85 million and the loan repayments were renegotiated. The facility will now be repaid in two equal annual payments
commencing in December 2018. Previously it commenced in December 2017 with final maturity in December 2018. At the end
of the period, the US dollar balance amounted to US$85 (2016: US$85) million.
9.2 Convertible bonds - ZAR (2018)
The ZAR denominated bonds have a par value of R2 672 million and carry a coupon of 5% (R133.6 million) per annum.
The coupon is payable semi-annually for a period of five years ending 21 February 2018. The bond holder has the option
to convert the bonds to Implats' shares at a price of R214.90. The value of this compound instrument's equity portion
relating to conversion was R319 million (before tax) on issue. In May 2017, Implats made an offer to all bond holders to
re-purchase their bonds at face value, which offer was conditional on the issue of the ZAR and US$ 2022 bonds. 89% of the
bonds holders accepted the offer. This resulted in R79 million being accounted for within equity, being the deemed cost for
89% of the conversion option. The effective interest rate on the remaining balance of the bond is 8.5% (2016: 8.5%).
9.3 Convertible bonds - US$ (2018)
The US$ denominated bonds have a par value of US$200 million and carry a coupon of 1% (US$2 million) per annum. The
coupon is payable semi-annually for a period of five years ending 21 February 2018. The bond holder has the option to
convert the bonds to Implats' shares at a price of US$24.13. The value of this conversion option derivative was R106
million at initial recognition. Implats also offered to re-purchase these bonds at face value and 85% of the bond holders
accepted. The effective interest rate on the remaining balance of the bond is 3.1% (2016: 3.1%). (Refer note 9 for
information regarding the CCIRS entered into to hedge foreign exchange risk on this bond.)
9.4 Convertible bonds - ZAR (2022) (note 7.1)
The ZAR denominated bonds have a par value of R3 250 million and carry a coupon of 6.375% (R207.2 million) per annum.
The coupon is payable semi-annually for a period of five years ending 7 June 2022. The bond holder has the option to
convert the bonds to Implats' shares at a price of R50.01. The value of this conversion option derivative was R676 million
on issue. Subsequent to year end, at the general meeting held by shareholders, shareholders approval to settle this
option by means of Implats shares was obtained, which will result in the bond being accounted for as a compound instrument
which will result in the derivative being transferred into equity. Implats has the option to call the bonds at par plus
accrued interest at any time if the aggregate value of the underlying shares per bond for a specified period of time is
130% or more of the principal amount of that bond. The effective interest rate of the bond is 12.8%.
9.5 Convertible bonds - US$ (2022) (note 7.3)
The US $ denominated bonds have a par value of US$250 million and carry a coupon of 3.25% (US$8.1 million) per annum.
The coupon is payable semi-annually for a period of five years ending 7 June 2022. The bond holder has the option to
convert the bonds to Implats' shares at a price of US$3.89. The value of this conversion option derivative was
R559 million at initial recognition. Implats has the option to call the bonds at par plus accrued interest at any time
if the aggregate value of the underlying shares per bond for a specified period of time is 130% or more of the principal
amount of that bond. The effective interest rate is 8.38%. (Refer note 7 for additional information regarding the conversion
and the CCIRS entered into to hedge foreign exchange risk on this bond.)
Facilities
At 30 June 2017, the Group had signed committed facility agreements for a total of R4.0 (June 2016: R4.0) billion.
In addition, Zimplats has a US$34 (2016: $24) million revolving credit facility of which US$24 (June 2016: US$24) million
was drawn at the end of the year.
10. Cost of sales
30 June 30 June
2017 2016
Rm Rm
On-mine operations 16 341 15 173
Processing operations 5 055 4 731
Refining and selling 1 378 1 294
Corporate cost 736 493
Share-based compensation 88 21
Chrome operation - cost of sales 186 196
Depreciation of operating assets 3 702 3 319
Metals purchased 10 030 10 663
Change in metal inventories (146) 38
37 370 35 928
11. Impairment
30 June 30 June
2017 2016
Rm Rm
Impairment of non-financial assets was made up
of the following:
Prepaid royalty 10 149 -
Property, plant and equipment - 257
Investment property 80 50
10 229 307
Refer to commentary as well as the annual financial statements notes 3, 5 and 10 for more detail regarding the impairments.
12. Headline earnings
30 June 30 June
2017 2016
Rm Rm
Headline earnings attributable to equity
holders of the Company arise from operations as follows:
Loss attributable to owners of the Company (8 220) (70)
Remeasurement adjustments (after adjusting
for non-controlling interest):
Profit on disposal of property, plant and equipment (24) (29)
Impairment 10 229 307
Scrapping of property, plant and equipment - 106
Insurance compensation relating to scrapping of
property, plant and equipment (154) (179)
Total tax effects of adjustments (2 814) (52)
Headline earnings (983) 83
Weighted average number of ordinary shares in issue
for basic earnings per share (millions) 718.03 682.19
Weighted average number of ordinary shares for
diluted earnings per share (millions) 721.78 683.75
Headline earnings per share (cents)
Basic (137) 12
Diluted (137) 12
13. Contingent liabilities and guarantees
As at the end of June 2017 the Group had contingent liabilities in respect of guarantees and other matters arising
in the ordinary course of business from which it is anticipated that no material liabilities will arise. The Group
has issued guarantees of R118 (2016: R152) million. Guarantees of R1 396 (2016: R1 268) million have been issued by
third parties and financial institutions on behalf of the Group consisting mainly of guarantees to the Department of
Mineral Resources for R1 277 (2016: R 1 149) million.
14. Related party transactions
The Group entered into PGM purchase transactions of R3 745 million (June 2016: R3 693 million) with Two Rivers Platinum,
an associate company, resulting in an amount payable of R1 034 million (June 2016: R958 million) at year end. It also
received refining fees to the value of R32 million (June 2016: R30 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 215 million (June 2016: R1 232 million) was outstanding in terms of the lease liability.
During the period, interest of R130 million (June 2016: R127 million) was charged and a R147 million (June 2016:
R125 million) repayment was made. The finance leases have an effective interest rate of 10.2%.
The Group entered into PGM purchase transactions of R3 199 million (June 2016: R3 015 million) with Mimosa Investments,
a joint venture, resulting in an amount payable of R844 million (June 2016: R800 million) at year end. It also
received refining fees to the value of R317 million (June 2016: R291 million).
These transactions are entered into on an arm's-length basis at prevailing market rates.
30 June 30 June
2017 2016
Key management compensation (fixed and variable):$ R000 R000
Non-executive directors' remuneration 8 118 8 069
Executive directors' remuneration 37 432* 16 418
Prescribed officers 46 500# 32 940
Company secretary 2 804 2 006
Total 94 854 59 433
$ All the 30 June 2017 figures include the 2015 6% salary increase paid in deferred notional shares, the 2015
bonus paid in deferred notional shares as well as the 2016 bonus paid in cash.
* Includes R10 million sign-on bonus paid to NJ Muller as well as a R7.7 million gain on retention and bonus
shares sold by TP Goodlace.
# Includes R5.7 million for a separations package.
15. Financial Instruments
30 June 30 June
2017 2016
Rm Rm
Financial assets - carrying amount
Loans and receivables 9 943 8 740
Financial instruments at fair value through profit
and loss2 - 1 137
Held-to-maturity financial assets 70 70
Available-for-sale financial assets1 179 157
Total financial assets 10 192 10 104
Financial liabilities - carrying amount
Financial liabilities at amortised cost 14 832 14 113
Borrowings 9 461 9 279
Commitments 74 66
Trade payables 5 289 4 759
Other payables 8 9
Financial instruments at fair value through profit
and loss2 1 233 -
Total financial liabilities 16 065 14 113
The carrying amount of financial assets and liabilities approximate their fair values.
1 Level 1 of the fair value hierarchy - Quoted prices in active markets for the same instrument.
2 Level 2 of the fair value hierarchy - Valuation techniques for which significant inputs are based on observable market data.
Contact details and administration
Registered office
2 Fricker Road
Illovo, 2196
Private Bag X18
Northlands, 2116
Telephone: +27 (11) 731 9000
Telefax: +27 (11) 731 9254
Email: investor@implats.co.za
Website: http://www.implats.co.za
Impala Platinum Limited and
Impala Refining Services
Head office
2 Fricker Road
Illovo, 2196
Private Bag X18
Northlands, 2116
Telephone: +27 (11) 731 9000
Telefax: +27 (11) 731 9254
Impala Platinum (Rustenburg)
PO Box 5683
Rustenburg, 0300
Telephone: +27 (14) 569 0000
Telefax: +27 (14) 569 6548
Impala Platinum (Refineries)
PO Box 222
Springs,1560
Telephone: +27 (11) 360 3111
Telefax: +27 (11) 360 3680
Marula Platinum
2 Fricker Road
Illovo, 2196
Private Bag X18
Northlands, 2116
Telephone: +27 (11) 731 9000
Telefax: +27 (11) 731 9254
Zimplats
1st Floor
South Block
Borrowdale Office Park
Borrowdale Road
Harare, Zimbabwe
PO Box 6380
Harare
Zimbabwe
Telephone: +26 (34) 886 878/85/87
Fax: +26 (34) 886 876/7
Email: info@zimplats.com
Impala Platinum Japan Limited
Uchisaiwaicho Daibiru, room number 702
3-3 Uchisaiwaicho
1-Chome, Chiyoda-ku
Tokyo
Japan
Telephone: +81 (3) 3504 0712
Telefax: +81 (3) 3508 9199
Company Secretary
Tebogo Llale
Email: tebogo.llale@implats.co.za
United Kingdom secretaries
St James's Corporate Services Limited
Suite 31, Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Telephone: +44 (020) 7796 8644
Telefax: +44 (020) 7796 8645
Email: phil.dexter@corpserv.co.uk
Public Officer
Ben Jager
Email: ben.jager@implats.co.za
Transfer secretaries
South Africa
Computershare Investor Services (Pty) Limited
Rosebank Towers
15 Biermann Avenue
Rosebank
PO Box 61051
Marshalltown, 2107
Telephone: +27 (11) 370 5000
Telefax: +27 (11) 688 5200
United Kingdom
Computershare Investor Services plc
The Pavilions
Bridgwater Road
Bristol
BS13 8AE
Auditors
PricewaterhouseCoopers Inc.
2 Eglin Road
Sunninghill
Johannesburg
2157
Corporate relations
Johan Theron
Investor queries may be directed to:
Email: investor@implats.co.za
Sponsor
Deutsche Securities (SA) Proprietary Limited
Johannesburg
14 September 2017
Date: 14/09/2017 07:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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