Production Update and Trading Statement for the year ended 30 June 2024
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE share code : IMP
ISIN : ZAE000083648
ADR code : IMPUY
("Implats" or the "Company" or the "Group")
PRODUCTION UPDATE AND TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2024
Implats will release its audited results for the year ended 30 June 2024 (the "period" or "FY2024") on or
about 29 August 2024.
Royal Bafokeng Platinum Limited ("RBPlat") became a subsidiary of Implats on 30 May 2023. During the
period, Implats increased its aggregate holding in RBPlat from 56.41% to 100%, with RBPlat delisted from
the JSE Limited ("JSE") on 18 September 2023 and renamed Impala Bafokeng. Implats' FY2024 results
therefore reflect the maiden annual consolidation of Impala Bafokeng's operational and financial metrics.
SAFETY
For the year under review, Implats' safety performance was dominated by the tragic event at 11 Shaft on
27 November 2023, in which 13 employees lost their lives and a further 73 employees were injured
following an accident involving a personnel conveyance. With deep regret, we report that an additional six
employees lost their lives in unrelated incidents at managed operations in FY2024, bringing the Group's
reported fatalities to 19 in the period. As a result, Implats' fatal-injury frequency rate deteriorated to 0.127
per million man-hours worked (FY2023: 0.040).
The board of directors and management team have extended their heartfelt condolences to the families of
our late colleagues and the Group offers ongoing support to their families through its comprehensive We
Care programme. Investigations into the 11 Shaft incident are ongoing, while investigations into the
remaining incidents were completed and remedial actions implemented.
The lost-time injury frequency rate (LTIFR) improved by 1% to 3.89 per million man hours worked, while
the total-injury frequency rate (TIFR) recorded a 10% improvement in FY2024.
Health and safety are a top priority for Implats' management, teams and individuals. An increased focus
on visible felt leadership and a safe work culture remain key to shifting mindsets, improving leadership and
promoting a culture of safety adherence. The goal is to arrest the regrettable increase in fatal injuries and
progress toward our zero harm objective.
While the Group's safety and operational risk strategy compares favourably with other leading miners and
addresses all relevant key safety enablers, Implats has critically reviewed its safety procedures and
intensified measures to further embed fatal risk prevention in the operating culture at all operations. Among
others, the focus areas include improving the methodology and quality of planning, enhanced early
entrance examinations, accelerating fatal risk control protocols, capacitating managers and supervisors
and addressing the high turnover in these roles. In addition, there is an increased focus on critical safe
behaviours for each role, particularly those in high-risk work areas. Visible felt leadership was increased,
as was on-the-job training and frontline coaching. These initiatives were further supported by a Group-
wide safety summit held in November 2023, facilitated by independent third parties, and a second summit
in May 2024.
Group operational performance FY2024 FY2023 Var, %
Safety
LTIFR pmmhw 3.89 3.92 0.7
TIFR pmmhw 8.29 9.25 10.3
Fatalities Count 19 5
6E Group production 000oz 3 654 3 246 12.6
Managed operations 000oz 2 916 2 418 20.6
JV operations 000oz 547 541 1.1
Third-party 000oz 191 287 (33.6)
Gross 6E refined and saleable 000oz 3 378 2 959 14.2
Impala 6E refined 000oz 1 214 1 207 0.6
IRS 6E refined 000oz 1 492 1 447 3.1
Impala Bafokeng 6E saleable1 000oz 410 37 >100
Impala Canada 6E saleable1 000oz 262 267 (2.0)
Gross platinum refined and saleable 000oz 1 590 1 360 16.9
Gross palladium refined and saleable 000oz 1 158 1 051 10.2
Gross rhodium refined and saleable 000oz 190 169 12.0
Gross nickel refined and saleable t 16 155 14 970 7.9
6E sales volumes 000oz 3 439 2 973 15.7
Managed operations production:
Tonnes milled 000t 27 887 23 883 16.8
6E grade g/t 3.73 3.53 5.7
Impala Rustenburg
Tonnes milled 000t 10 204 10 248 (0.4)
6E grade g/t 3.99 3.88 2.8
6E stock adjusted2 000oz 1 284 1 232 4.2
Impala Bafokeng
Tonnes milled 000t 4 243 403 >100
6E grade g/t 4.36 4.09 6.6
6E in concentrate4 000oz 483 43 >100
Marula
Tonnes milled 000t 1 851 1 935 (4.3)
6E grade g/t 4.28 4.39 (2.5)
6E in concentrate4 000oz 223 241 (7.3)
Zimplats
Tonnes milled 000t 7 912 7 500 5.5
6E grade g/t 3.32 3.33 (0.3)
6E in matte (incl. concentrate sold to IRS)3 000oz 646 611 5.7
Impala Canada
Tonnes milled 000t 3 676 3 798 (3.2)
6E grade g/t 2.90 2.93 (0.8)
6E in concentrate4 000oz 281 291 (3.5)
JV operations production:
Two Rivers
Tonnes milled 000t 3 568 3 558 0.3
6E grade g/t 3.12 3.09 1.1
6E in concentrate4 000oz 291 295 (1.4)
Mimosa
Tonnes milled 000t 2 894 2 735 5.8
6E grade g/t 3.61 3.77 (4.2)
6E in concentrate4 000oz 255 245 4.2
Impala Refining Services production:
Gross 6E receipts 000oz 1 606 1 658 (3.1)
Managed operations 000oz 870 839 3.7
JV operations 000oz 545 532 2.5
Third-party 000oz 191 287 (33.6)
1. Platinum group metal ("PGM") production adjusted for off-take terms from third parties.
2. PGM production post the precious metals refinery, adjusted for any increase (added), or decrease (deducted) in smelting and refining lock up.
3. PGM production post the smelter ahead of the base metal refinery, unadjusted for further processing recoveries.
4. PGM production post the concentrator ahead of the smelter, unadjusted for further processing recoveries.
PRODUCTION UPDATE
Implats navigated several serious challenges and a constrained operating environment to deliver guided
production volumes and commendable cost controls in FY2024. Achieved volumes benefitted from the
maiden annual consolidation of Impala Bafokeng. However, notable performances were achieved on a
like-for-like basis (excluding Impala Bafokeng's contribution) at the Group's key mining and processing
operations. Project delivery progressed to plan and, despite elevated capital expenditure and higher levels
of in-process inventory, the Group generated positive free cash flow in H2 FY2024.
Gross Group 6E production increased by 13% to 3.65 million 6E ounces from 3.25 million 6E ounces for
the year ended 30 June 2023 (the "comparative period" or "FY2023"), with a 1% decline in like-for-like
production.
Production from managed operations increased by 21% to 2.92 million 6E ounces, with a like-for-like
improvement of 2% from the collective production base at Impala Rustenburg, Marula, Zimplats and Impala
Canada:
• Impala Rustenburg increased production by 4% to 1.28 million stock-adjusted 6E ounces, with
positive operating momentum offsetting the production foregone due to the 11 Shaft tragedy
• A maiden annual contribution of 483 000 6E ounces in concentrate from Impala Bafokeng was
recorded in the period
• Marula's performance was impacted by lengthy safety stoppages and constrained mining flexibility
and 6E concentrate production declined by 7% to 223 000 ounces
• Zimplats delivered a 6% increase in 6E matte production to 646 000 ounces, benefitting from an
increase in annual milling capacity
• 6E production in concentrate delivered by Impala Canada retraced by 4% to 281 000 ounces, in
line with the revised operating parameters initiated during the period.
Production from joint ventures ("JVs") increased by 1% to 547 000 6E ounces:
• Two Rivers recorded a 1% decrease in 6E in concentrate production to 291 000 ounces, due to
continued challenges associated with constrained mining flexibility and geological features
• At Mimosa, 6E in concentrate volumes rose by 4% to 255 000 ounces, benefitting from plant
optimisation, which supported milling volumes and recoveries.
Concentrate receipts from third parties declined by 34% to 191 000 6E ounces, due to the conclusion of
two contracts in Q3 FY2023.
Refined 6E production, which includes saleable ounces from Impala Bafokeng and Impala Canada,
increased by 14% to 3.38 million 6E ounces and was 2% higher on a like-for-like basis. Group processing
capacity was limited by the scheduled rebuild of Number 5 furnace at Impala Rustenburg. Maintenance
was initiated in December 2023 with the furnace successfully recommissioned as planned in April 2024.
Implats ended FY2024 with excess inventory of approximately 390 000 6E ounces (FY2023: 245 000).
Performances benefitted from a notable reduction in the frequency and intensity of load curtailment in
South Africa, but heightened electricity supply constraints were experienced in Zimbabwe. As a result,
Implats estimates production of circa 21 000 6E ounces was foregone across southern African managed
and JV operations during the period, while a further 12 000 6E ounces were deferred (FY2023: 36 000
foregone and 101 000 deferred).
Sales volumes of 3.44 million 6E ounces, including saleable production from Impala Canada and Impala
Bafokeng, increased by 16% and were 3% higher on a like-for-like basis. Received US dollar sales revenue
per 6E ounce fell 34%, with sharply lower average palladium and rhodium pricing. The achieved rand
exchange rate weakened by 5% and Group sales revenue decreased by 30% to R25 257 per 6E ounce
sold.
Group unit costs per 6E ounce for FY2024 are expected to increase by 5.5% to circa R20 925 on a stock-
adjusted basis. The benefit of cost containment initiatives and volume gains at managed operations was
partially offset by the inflationary pressures of rand depreciation on the translated dollar cost base of
Zimplats and Impala Canada, and the inclusion of Impala Bafokeng unit costs.
Cash capital expenditure of R12.3 billion was incurred in FY2024. A further R1.7 billion of capital payments,
primarily associated with Zimplats' growth projects and incurred in the prior period was transferred from
prepayments to capital expenditure in the period. As a result, the Group's total capital expenditure in
FY2024 is expected to have increased to circa R14.0 billion from R11.5 billion in the comparative period,
reflecting the consolidation of capital expenditure from Impala Bafokeng, higher levels of growth capital at
Zimplats and the impact of rand depreciation on the translation of foreign subsidiaries' spend.
Labour restructurings were completed at Impala Canada and Zimplats in FY2024, while a S189(3) process
was initiated during the fourth quarter across the South African managed operations — Impala Rustenburg,
Impala Bafokeng, Marula and the corporate office. Natural attrition, together with re-deployment, reskilling
efforts, and the uptake of voluntary separation packages, ensured that no employees were forcibly
retrenched. The Group incurred R488 million in costs associated with the restructuring process in FY2024,
with cash outflows of R109 million and R375 million in FY2024 and FY2025, respectively.
TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2024
In terms of the Listings Requirements of the JSE Limited, companies must publish a trading statement as
soon as they become reasonably certain that the financial results for the period to be reported on will differ
by at least 20% from that of the comparative reporting period.
Shareholders are advised that the Group expects both basic earnings per share ("EPS") and headline
earnings per share ("HEPS") for the period to be lower than those reported for the comparative period.
Earnings for the period decreased primarily due to lower revenue arising from a 34% lower achieved dollar
revenue per 6E ounce sold, partially offset by a 5% weaker rand. 6E PGM sales volumes were 16% higher
in the period, benefitting from the consolidation of Impala Bafokeng and improved operational momentum
at the Group's mining and processing facilities.
Headline earnings for the period were impacted by a once-off, non-cash IFRS 2 (share-based payment)
broad-based black economic empowerment (B-BBEE) charge of R1.9 billion or 215 cents per share (no
tax), arising on the implementation of the empowerment transaction in June 2024, reflecting the facilitation
provided to empowerment parties, including Impala Bafokeng employees, Impala and Impala Bafokeng
communities and the strategic broad-based empowerment consortium, Bokamoso.
As a result, Implats' headline earnings for the period are expected to decrease by between 85% and 90%
to be between R1.9 billion and R2.8 billion, while HEPS are expected to decrease by between 86% and
90% to be between 212 cents and 312 cents per share. Headline earnings and HEPS for the comparative
period were R18.8 billion and 2 211 cents, respectively.
Basic earnings for the period were impacted by impairments totalling R19.8 billion or 2 204 cents per share
(post-tax), comprising of the following charges:
• The impairment of goodwill, property, plant and equipment and the prepaid royalty at Impala
Rustenburg of R16.5 billion or 1 836 cents per share (post-tax) due to lower prevailing rand PGM
pricing;
• The impairment of property, plant and equipment at Impala Canada of R1.6 billion or 182 cents
per share (no tax), reflecting the change in planned operating parameters effected during the
period at this operation;
• The impairment of property, plant and equipment at the Mimosa joint venture of R686 million or 76
cents per share (Group's attributable share, post-tax) due to the combined valuation impact of
lower prevailing rand PGM pricing and the deferral of the North Hill life-of-mine replacement
project; and
• The impairment of property, plant and equipment at the Two Rivers joint venture of R987 million
or 110 cents per share (Group's attributable share, post-tax) due to the combined valuation impact
of lower prevailing rand PGM pricing and elevated near-term capital expenditure from the
Merensky Project, currently under construction.
Consequently, Implats expects to report basic earnings and EPS for the period to be a loss of between
R16.9 billion and R17.8 billion and between 1 883 cents and 1 984 cents per share, respectively. Basic
earnings and EPS for the comparative period were R4.9 billion and 577 cents per share, respectively.
The weighted average number of shares in issue for the period increased to 897.36 million from 850.28
million in the comparative period. The number of shares in issue increased to 904.37 million at period end
from 866.40 million at 30 June 2023, after 37.97 million Implats shares were issued as part of the
acquisition consideration for Royal Bafokeng Platinum Limited.
The financial information for the year ended 30 June 2024, on which this production update and trading
statement is based, has not been reviewed and reported on by Implats' external auditors.
Ends
Queries :
Johan Theron
E-mail : johan.theron@implats.co.za
T : +27 (0) 11 731 9013
M : +27 (0) 82 809 0166
Emma Townshend
E-mail : emma.townshend@implats.co.za
T : +27 (0) 21 794 8345
M : +27 (0) 82 415 3770
Alice Lourens
E-mail : alice.lourens@implats.co.za
T: +27 (0) 11 731 9033
M : +27 (0) 82 498 3608
7 August 2024
Johannesburg
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 07-08-2024 12:00:00
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