IMPALA PLATINUM HOLDINGS LIMITED - First quarter production report for the period 1 July 2018 to 30 September 2018
31 October 2018 8:00
IMP 201810310009A
First quarter production report for the period 1 July 2018 to 30 September 2018
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")
First quarter production report for the period 1 July 2018 to 30 September 2018
Key highlights
- Improved safety performance: 9% improvement in lost-time injury frequency rate from the end
of FY2018
- Strong operational performance at Impala Rustenburg: Achieved its highest first quarter mill
tonnage of 3.15-million tonnes since FY2013
- Improved Group operational performance: 1.9% improvement in tonnes milled across the
Group compared to the previous comparable quarter
- Implementation of strategic review continues: Section 189 restructuring process for 1 500
employees progressing according to plan and outsource/disposal process for 1 Shaft commenced
- Revenues benefit from weaker rand and improved palladium and rhodium prices: 14.2%
improvement in revenue per platinum ounce received during the quarter (R28 355 per platinum
ounce) compared to the previous comparable quarter as a result of a weaker ZAR:US$ exchange
rate and higher US$ metal prices
Implats’ Chief Executive Officer, Nico Muller, commented: "I am pleased to report improved safety and
operational performances during the quarter, particularly at Impala Rustenburg, which has reported its
highest first-quarter mill tonnage for the past six years. Tonnes milled at Impala Rustenburg increased by
5.6% compared to the previous corresponding quarter, reflecting the positive outcomes of various
initiatives implemented at the operation to improve safety, production and cost performance. We remain
steadfast in our resolve to eliminate high-cost production at this business, aligned with our lower future
metal prices outlook. To this end, we have progressed the Section 189 restructuring process for 1 500
employees and engaged with parties interested in potentially acquiring the 1 Shaft operation, which is
scheduled to be put on care and maintenance in April 2019 as per our restructuring plan."
Unaudited Unaudited
Operational information Quarter ended Quarter ended
30 September 2018 30 September 2017
Gross production:
Tonnes milled (including associates) 000t 6 867 6 741
Grade (6E) g/t 3.82 3.83
Platinum in concentrate (mine-to-market) 000oz 349 349
Platinum in concentrate (third-party and toll) 000oz 49 100
Platinum refined 000oz 369 341
Impala platinum refined 000oz 180 133
IRS platinum refined 000oz 189 209
Palladium refined 000oz 207 189
Rhodium refined 000oz 47 46
Nickel refined 000t 3.78 3.71
Managed operations production:
Impala
Tonnes milled 000t 3 152 2 984
Grade (6E) g/t 4.03 3.95
Platinum in concentrate 000oz 186 181
Platinum refined 000oz 180 133
Zimplats
Tonnes milled 000t 1 677 1 690
Grade (6E) g/t 3.48 3.49
Platinum in concentrate 000oz 70 71
Platinum in matte 000oz 70 49
Marula
Tonnes milled 000t 511 498
Grade (6E) g/t 4.23 4.43
Platinum in concentrate 000oz 23 23
JV operations production:
Mimosa
Tonnes milled 000t 702 717
Grade (6E) g/t 3.80 3.86
Platinum in concentrate 000oz 30 32
Two Rivers
Tonnes milled 000t 825 852
Grade (6E) g/t 3.51 3.70
Platinum in concentrate 000oz 38 42
Group and third party production:
IRS
Platinum refined 000oz 189 209
Mine-to-market platinum refined 000oz 154 151
Third-party and toll platinum refined 000oz 35 57
Rounding of figures may result in computational discrepancies
SAFETY
The safety and health of employees remains a priority for the Group. Improvements achieved in the
previous financial year have continued into FY2019, particularly at Impala Rustenburg and Marula. The
Group recently achieved seven months without a fatal accident – a record for Impala Rustenburg and the
Group. In addition, the lost-time injury frequency rate improved 9% from the end of FY2018 to 5.05 per
million man hours worked.
Regretfully, Impala Rustenburg recorded an employee fatality at 16 Shaft in September 2018. The
Company has provided support to the family of the deceased, while the board of directors and
management team have extended their very sincere sympathies to his family, friends and colleagues.
Implats’ safety strategy is premised on providing an inherently safe work environment, maintaining
leading safety practices and inculcating safe behaviour at all times. Management remains resolute in
leading this imperative through direct engagement with all our stakeholders, including each employee in
the organisation, and the leadership of our representative unions and government.
PRODUCTION
Gross tonnes milled (including joint venture operations) during the quarter increased by 1.9% to 6.87-
million tonnes, compared to 6.74-million tonnes achieved in the prior comparable period.
The increase was largely due to a much stronger operational performance at Impala Rustenburg.
Platinum in concentrate produced during the quarter across all mining operations (managed and joint
venture) was maintained at 349 000 ounces as increased production from Impala Rustenburg was offset
by lower volumes from Two Rivers and Mimosa.
Gross refined platinum production during the quarter increased by 8.2% to 369 000 ounces, compared to
341 000 ounces achieved in the prior comparable period, which was impacted by scheduled furnace
maintenance at both the Impala and Zimplats operations during the first quarter a year ago.
Impala
Impala delivered a much improved operational performance compared to the previous comparable
period. Tonnes milled increased by 5.6% to 3.15-million tonnes, compared to 2.98-million tonnes in the
previous comparable quarter, while the mill grade (6E) improved by 2.0% to 4.03g/t. Good performances
across all mining operations, supported by increased production from the development shafts, was
partially offset by the loss of production from 4 Shaft, which was closed in January 2018. Consequently,
platinum in concentrate increased by 2.8% to 186 000 ounces, compared to 181 000 ounces in the prior
comparable period. Refined platinum production increased by 35.3% to 180 000 ounces from 133 000
in the prior comparable quarter, which was impacted by planned furnace maintenance.
Zimplats
Zimplats sustained its operational performance with mill throughput and grade largely unchanged at 1.68-
million tonnes and 3.48 g/t (6E) respectively. As a result, platinum in concentrate produced at the
operation during the quarter was maintained at 70 000 ounces. However, platinum in matte increased
by 42.9% to 70 000 ounces, compared to 49 000 ounces in the prior corresponding period, which was
impacted by scheduled furnace maintenance.
Marula
Marula continues to deliver an improved operational performance following prior business restructuring
initiatives and ongoing multi-stakeholder engagements to sustain business continuity. Tonnes milled
during the period increased by 2.6% to 511 000 tonnes, compared to 498 000 tonnes in the prior
corresponding period. However, the grade declined by 4.5% to 4.23g/t (6E) due to a planned increase in
development volumes and an increase in stoping width. Consequently, platinum in concentrate
production was maintained at 23 000 ounces during the period under review.
Mimosa
Mimosa sustained production in line with design capacity. Tonnes milled during the period decreased by
2.1% to 702 000 tonnes, compared to 717 000 tonnes in the previous comparable quarter, impacted by
planned mill maintenance during the reporting period. Platinum production in concentrate decreased by
6.3% to 30 000 ounces from 32 000 ounces in the prior corresponding period as a result of the lower
milled tonnage and mill grade.
Two Rivers
Two Rivers’ mill grade continued to be impacted by mining into split reef areas. Performance during the
period was also impacted by community disruptions not aimed specifically at Two Rivers, but which
necessitated processing material from the lower-grade ore stockpile. Consequently, tonnes milled
decreased 3.2% to 825 000 tonnes, compared to 852 000 tonnes in the previous comparable quarter,
and the mill grade (6E) deteriorated by 5.1% to 3.51g/t. This impacted platinum in concentrate production,
which decreased by 9.5% to 38 000 ounces, compared to 41 600 ounces in the prior comparable period.
Impala Refining Services ("IRS")
IRS’s refined platinum production during the period decreased by 9.6% to 189 000 ounces, compared to
209 000 ounces in the prior comparable quarter. This was largely due to higher deliveries from a third-
party customer during the previous comparable period. Mine-to-market production increased by 2.0% to
154 000 ounces in the quarter under review, while third-party toll refining volumes decreased from 57 000
ounces in the prior corresponding period to 35 000 ounces this quarter.
UPDATE ON IMPALA RUSTENBURG STRATEGIC RESTRUCTURING
Consistent with our strategic review announcement on 2 August 2018 and our FY2018 financial results
presentation, Implats is progressing the implementation of its Impala Rustenburg strategic restructuring
plan. This includes consideration being given to alternative commercial outcomes which, as
communicated to the market, could include the sale of identified shafts and/or full-contract mining
provisions.
Implats has commenced a process to identify and engage with parties who may have an interest in, or
have already expressed an interest in, acquiring Impala Rustenburg’s 1 Shaft ("1 Shaft Disposal
Process"), which, as per the restructuring plan, is scheduled to be put on care and maintenance from
April 2019. In parallel to the 1 Shaft Disposal Process, Implats is continuing to engage with parties who
may have an interest in, or have already expressed an interest in, the 100% outsourcing of 1 Shaft to a
third-party contractor.
Implats will update the market, as and when appropriate, on any further developments related to the
1 Shaft Disposal Process.
The above information has not been reviewed and reported on by the Group’s external auditors.
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
Johannesburg
31 October 2018
Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited
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