FIRST QUARTER
PRODUCTION REPORT
FOR THE PERIOD 01 JULY TO 30 SEPTEMBER 2012
Unaudited Unaudited
Operational information Quarter ended Quarter ended
30 September 30 September
12 11
Implats Gross Refined
Production
Platinum 000oz 454 388
Palladium 000oz 287 251
Rhodium 000oz 56 53
Nickel 000tonne 3.80 3.84
Impala
Tonnes Milled* 000 3 223 3 759
Grade (6E)* g/t 4.24 4.53
Merensky Milled* % 43 45
Refined Platinum Production 000oz 193 249
Marula
Tonnes Milled 000 409 395
Grade (6E) g/t 4.22 4.30
Platinum in Concentrate 000oz 18 18
Zimplats
Tonnes Milled 000 1 056 1 060
Grade (6E) g/t 3.54 3.57
Platinum in Matte 000oz 40 45
Mimosa
Tonnes Milled 000 616 592
Grade (6E) g/t 3.96 3.91
Platinum in Concentrate 000oz 28 27
IRS
Refined Platinum Production 000oz 261 139
Group Unit Costs (excluding R/oz 15 326 11 348
SBP)
Prices Achieved
Platinum $/oz 1 444 1 774
Palladium $/oz 598 773
Rhodium $/oz 1 171 1 801
Nickel $/tonne 15 785 22 062
Average exchange rate R/$ 8.25 7.01
*The ex-mine tonnage, grade and % Merensky statistics tabulated
above excludes low grade material from surface sources.
SAFETY
There was one fatal accident during the first quarter of FY2013.
Joseph Matatiele, a contractor with Triple M Mining, lost his life
in a scraper winch related incident at 9 Shaft at Impala
Rustenburg. The Board and management team extend their sincere
sympathies to the family, friends and colleagues of Joseph.
The fatality injury frequency rate improved from 0.087 to 0.027
per million man hours worked. The Lost Time Injury Frequency rate
improved to 4.72 per million man hours worked from 4.96 for FY2012.
The number of self-imposed work stoppages has increased in the
drive to improve safety performance. The number of Section 54
notices issues during the quarter declined to 10 compared to 24 in
the corresponding period a year ago. A new health and safety policy
was adopted by the Implats board in August
2012 and a new business plan has been developed to address
safety issues and improve performance.
PRODUCTION
Gross platinum production increased by 17% to 454 000 ounces for
the quarter compared with the corresponding period a year ago.
Lower production at Rustenburg due to the prolonged ramp-up was
more than offset by once-off processing of toll material and an
inventory release following the build-up in the latter part of the
previous financial year.
Impala
Mill throughput and grade declined by 14% and 6% to 3.2 million
tonnes and 4.24 g/t respectively. This coupled with a 12 000 ounce
smelter build-up resulted in refined platinum production falling by
22% to 193 000 ounces.
Operational performance continues to be impacted by the
uncertain labour climate and as a result still remains well below
planned levels. The ramp-up to full production which was
anticipated to be completed by the end of the first quarter has not
been achieved. Currently the mine is operating at between 80 to 85%
of FY2011 production levels. A number of key initiatives have been
launched to improve mining quality factors and lower than planned
development rates.
Marula
Tonnes milled at Marula rose by 4% to 409 000. However, a 2%
decline in head grade to 4.22 g/t due to lower production from the
relatively higher-grade Clapham conventional section due to
conveyor belt disruptions resulted in platinum production in
concentrate remaining unchanged at 18 000 ounces.
Zimplats
The planned shutdown of the smelter during August and September
for routine maintenance resulted in platinum production in matte
falling by 11% to 40 000 ounces. The Phase 2 expansion to 270 000
ounces of platinum has been slowed as a result of the recently
implemented capital preservation measures and will now be completed
in 2015.
Management remains in negotiation with the Government of
Zimbabwe on the finalisation of
the agreed indigenisation plan. As previously announced the company
received a revised Income Tax assessment for the period 2007 to
2012. This assessment disallowed the claiming of capital
expenditure in full in the year incurred as set out in the Special
Mining Lease on the basis that the legislation to give legal effect
to this matter had not been promulgated. An amount of US$33.2 million will be paid over the twelve
month period commencing October 2012.
The company has lodged an objection to the additional payment of
penalties and interest.
Mimosa
An increase in both tonnes milled and grade resulted in a
corresponding improvement in platinum production in concentrate to
28 000 ounces. This remains in line with steady-state refined
production of 100 000 ounces of platinum. Discussions are ongoing
regarding Mimosa's proposed indigenisation plan.
IRS
Throughput at IRS increased by 88% to 261 000 ounces of platinum
despite a further decrease in non-managed purchased production.
This was due to the treatment of a significant amount of once-off
toll material compared to none in the corresponding period a year
ago.
Group Unit Costs
The unit cost per platinum ounce continued to be adversely
effected by inflation and lower volumes, and rose by approximately
35% to R15 326. The combination of wage pressures in South Africa and a weaker Rand in Zimbabwe accounted for the bulk of the 15%
increase in cash costs, while the balance was primarily due to
lower volumes, as a result of the protracted ramp-up in production
and poor mining quality at Impala Rustenburg.
16 November 2012
Enquiries should be directed to:
Bob Gilmour - Group Executive:
Corporate Relations
+27 11 731 9013/43
+27 82 453 7100
Bob.Gilmour@implats.co.za
