Wrap Text
IMP - Impala Platinum Holdings Limited - Audited condensed consolidated
annual results Year ended 30 June 2010
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration No. 1957/001979/06
JSE share code: IMP
ISIN: ZAE 000083648
LSE: IPLA ADR`s: IMPUY
("Implats" or "the Company" or "the Group")
DISTINCTLY PLATINUM
Audited condensed consolidated annual results
Year ended 30 June 2010
SAFETY
Unsatisfactory performance
PRODUCTION
Gross platinum production up 2% to 1.74 million ounces
GROWTH
Zimplats Phase 1 expansion at full production and strong growth at IRS
COST
Unit costs per platinum ounce increased by 11%*
DIVIDEND
Increased by 22% to 390 cents per share
MARKET
Sound medium- to long-term fundamentals
*Excluding share-based compensation.
COMMENTARY
The year under review has been one of the most difficult in the Company`s
history. Not only did it have to contend with the global economic crisis,
but also the impacts of both the tragedy at 14 Shaft and industrial action
at the beginning of the period. On the positive side, significant progress
was made in addressing the development issues at Rustenburg, the expansion
at Zimplats was successfully commissioned and throughput at IRS grew
significantly contributing to a 2% increase in gross production to 1.74
million ounces of platinum. Throughout this period the Company has
maintained a strong balance sheet, remained cash positive and raised the
dividend by 22% to 390 cents per share. (Final dividend of 270 cents per
share).
Safety
Regrettably, the year started tragically when nine of our colleagues lost
their lives in a single fall of ground incident at Impala Rustenburg. A
further six colleagues died at the same operation during the course of the
year bringing the total number of fatalities for the Group to 15, 14 in the
first half and one in the second. We extend our deepest condolences to the
families and friends of all those who died.
The goal of zero lost-time injuries is an ambitious target. However, we
believe it is one we can achieve across the Group as evidenced by the
safety performances in some of our higher-risk underground shafts. The key
to achieving zero harm remains a safety-conscious workforce that adheres to
the Company`s rigorous safety standards and embraces the concept of zero
tolerance to non-compliance.
During the year we engaged Du Pont Safety Resources to review our safety
systems and culture and to bench-mark these against world-class best
practice. In addition, we commissioned an independent study to investigate
the external socio-cultural factors that affect employee behaviour,
particularly in the South African context. The relevant findings of these
studies have been incorporated into our safety strategy and plans, where
the focus is on ensuring that safety becomes every employee`s first
priority.
Market overview
Despite demand levels for our major metals remaining subdued through 2009
following the global economic crisis, prices did manage to recover somewhat
from their heavily oversold positions.
On the automotive side, significant production cuts in 2009 across the
developed world brought bloated vehicle inventories back in line and led to
a significant fall in demand for platinum, palladium and rhodium. The early
part of 2010 has seen some recovery as scrappage and sales incentives
boosted sales and subsequently production.
The lower prices experienced during 2009 allowed the Chinese platinum
jewellery market to restock its pipeline, to the extent that sales to this
region more than doubled.
The economic uncertainty steered investors away from risk during the period
and lower prices coupled with the launch of a platinum and palladium
Exchange Traded Funds in the US brought a surge of fresh demand, bringing
with it a commensurate increase in price levels. In line with the higher
price environment sales volumes on the Shanghai Gold exchange have declined
by approximately 10% in the first half of 2010.
The overall reduction in demand was met by a contraction in supply leaving
the market with a small deficit for 2009.
Financial review
Headline earnings for the financial year declined by 22% to 786 cents per
share, from 1 001 cents per share in FY2009. Notwithstanding the decrease
in headline earnings, the total dividend for the year improved by 22% to
390 cents per share.
Revenue reduced by 3% to R25.4 billion from R26.1 billion. This was a
result of:
- sales volumes - higher production volumes as well as the sale of the
rhodium stock built up in the prior year was offset by leases in lieu of
cash advances of 58 000oz of platinum. Sales volumes accounted for R1.1
billion positive variance
- higher metal prices - in dollar terms platinum and palladium rose by 18%
and 43% respectively, rhodium fell by 39%, overall dollar prices
contributed to a positive price variance of R1.8 billion; and
- strengthening of R/$ exchange rate - the average exchange rate achieved
for the year wasR7.58/$, compared with R8.63/$ for FY2009. This resulted in
a negative exchange rate variance of R3.6 billion.
Cost of sales rose by 6% to R17.3 billion from R16.4 billion in FY2009.
There were several key drivers:
- wages and salaries were R550 million higher than the previous year;
- share-based compensation movement of R1.0 billion; and
- cost of metal purchases (net of change in stock) decreased by R1.2
billion.
The unit cost per platinum ounce produced deteriorated by 22% to R10
417/oz. Excluding share-based compensation, unit cost per platinum ounce
was up 11% to R10 089/oz. On a normalised basis, excluding the impact of
the strike and the 14 Shaft change in mechanised mining, unit cost per
platinum ounce was only 5% higher at R9 592/oz. Inflation accounted for 4%
of the change.
Net cash generated from operating activities amounted to R5.9 billion of
which R4.4 billion was utilised for investing activities, in respect of
capital expenditure.
Net cash used in financing activities was R1.8 billion largely due to
dividends.
The net result of Implats` operating, investing and financing activities
was a net cash inflow of R502 million. When combined with the opening
balance of R3.4 billion this resulted in a closing cash and cash-equivalent
balance of R3.9 billion.
The Group will continue to fund cash requirements from cash generated from
operations, and will use its adequate banking facilities to cover any
shortfalls.
Operational review
Gross platinum production was up by 2% to 1.74 million ounces despite the
loss of approximately 80 000 ounces at Impala Rustenburg due to the 14
Shaft incident and strike action at the beginning of the period. Production
was supported by a combination of higher mine to market and toll treatment
throughputs.
IMPALA PLATINUM
Safety was unsatisfactory at Impala Rustenburg with a significant
deterioration in both the fatality and lost-time injury frequency rates.
Fifteen employees lost their lives at the operation during the year. The
majority of these fatalities were due to falls of ground, followed by
transport incidents and a methane explosion. In addition to the
commissioning of the two independent studies as previously mentioned other
safety initiatives included the extension of our safety and health
programmes beyond the workplace to include community safety and health, as
well as road safety.
Tonnes milled declined by 10.4% to 13.5 million mainly as a result of the
14 Shaft incident, the two-week industrial action and other safety
stoppages. As highlighted last year, limited Merensky face availability at
the major shafts continued to impact on the amount of Merensky ore milled
which declined by 21% to 5.4 million tonnes. Despite the change in the ore
mix ratio to 60:40 in favour of the lower platinum yield UG2, a marginal
improvement in yield ameliorated the decline in refined platinum
production, which fell by 8% from the previous year to 871 000 ounces. The
lower output negatively impacted unit costs which increased by 17% to R10
003 per platinum ounce (excluding share-based compensation).
Going forward the operation will focus on maximizing production at the
major shafts, namely 1,10, 11, 12 and 14 Shafts, and the dovetailing of the
closure of the older shafts with the ramp-up of the new deeper-level
shafts. In the first case the emphasis will remain on on-reef development
to ensure the requisite mining flexibility. As 20 and 16 Shafts come on
stream, they will restore the ore mix ratio back to 50:50 and enhance
productivity by replacing remnant mining with concentrated mining activity.
This will restore production to a steady-state output of 1 million ounces
of platinum per annum by FY2014.
ZIMPLATS
Zimplats delivered yet another world-class safety performance with no
fatalities. Despite a deterioration in the lost-time injury frequency rate
to 0.69 per million man-hours worked it remains one of the top mining
operations in the Group in terms of safety.
FY2010 proved a truly outstanding operational year for Zimplats, crowned by
the successful commissioning of the Phase 1 expansion, essentially on time
and within budget. This project involved the development of two new
underground mines, Portals 1 (Ngwarati) and 4 (Bimha), a new concentrator
at Ngezi and additional infrastructure. The concentrator was commissioned
in July 2009 and reached nameplate capacity of 2 million tonnes in
September 2009. As a result tonnes milled increased by 89%, from 2.2
million in the previous year to 4.1 million and platinum production in
matte rose by 81% to 173 900 ounces. Full throughput of 180 000 ounces of
platinum in matte on an annualised basis will be achieved in FY2011.
Despite the dollarisation of the economy, which affected costs, higher
production volumes resulted in unit costs declining by 22% to $1 007 per
platinum ounce in matte. This firmly positions Zimplats as one of the
lowest-cost primary platinum producers in the world.
The indigenisation regulations were gazetted by government earlier this
year. Zimplats is confident its proposals which incorporate agreements
concluded with the government of Zimbabwe will comply with the legislation.
The $450 million Phase 2 expansion was approved in May this year. This
project involves the development of a new 2 million tonne underground mine,
an additional concentrator module and other infrastructure. At nameplate
capacity, milled tonnage will increase from the current 4.1 million to 6.1
million per annum and platinum production by 90 000 to 270 000 ounces per
annum.
MARULA
Marula experienced another difficult year in virtually all aspects of the
operation.
Although safety from a fatality perspective was excellent over the period
with no fatalities, the lost-time injury frequency rate deteriorated from
5.35 to 9.39 per million man-hours worked. The results of the Du Pont
safety review revealed a similar dependant culture to that at Impala
Rustenburg. The same remedial actions are also being implemented at this
operation.
The ramp-up in production stalled and tonnes milled declined marginally to
1.55 million. This was due to constrained mining flexibility as a result of
a lack of adequate on-reef development, primarily at the Clapham
conventional section which was impacted by logistical constraints. A number
of steps have been taken to improve both machine and people logistics.
The lack of a build-up in mill tonnage coupled with work stoppages due to
industrial action early in the year and lower recoveries resulted in
platinum production reducing by 5% to 70 000 ounces in concentrate. Unit
costs increased by 17% to R14 208 per platinum ounce in concentrate
reflecting lower ounces and increased staffing levels.
The resolution of the logistical bottleneck will result in improved system
and team efficiencies, increased face availability in the conventional
section and improved on-reef development. Having reassessed the potential
of the mine, steady-state production is estimated at
100 000 ounces of platinum in concentrate.
MIMOSA
Mimosa achieved another excellent safety performance with no fatalities
during the period. The lost-time injury frequency rate improved by 33% to a
new low of 0.35 per million man hours worked.
The recently completed Wedza Phase 5.5 expansion resulted in the operation
reaching steady state production of 101 000 ounces of platinum in
concentrate per annum. Unit costs increased by 14.7% to $1 194 per platinum
ounce in concentrate as a result of the dollarisation of the economy,
strengthening of the rand against the US dollar and higher mining costs.
During the year regulations on indigenisation were gazetted. The Company`s
response to these proposals was submitted to the relevant authorities on 14
April 2010.
TWO RIVERS
Tonnes milled increased by 12% to 2.9 million as a result of plant
modifications made during the plant optimisation process which was
completed earlier in the year. Coupled with a 7% improvement in recoveries,
platinum production was up 19% to 140 900 ounces in concentrate. The
improvement in volumes is reflected in unit costs which declined by 4% to
R8 463 per platinum ounce in concentrate.
Approval is still awaited from the Department of Mineral Resources to
enable Implats to vend in portions 4, 5 and 6 of the farm Kalkfontein, as
well as the area covered by the Tweefontein prospecting rights to Two
Rivers. This transaction, when completed, will increase Implats` holding by
4% to 49% in the Two Rivers joint venture.
A marginal improvement in tonnes milled, coupled with further improvements
in concentrator recoveries, will result in platinum production increasing
to 150 000 ounces by FY2013.
IMPALA REFINING SERVICES (IRS)
Platinum production rose by 15% to 870 000 ounces despite the continued
suspension of operations at Everest. This was primarily due to the ramp-up
in production at both Zimbabwean operations, namely Mimosa and Zimplats, a
further increase from Two Rivers as a result of plant modifications and the
start of production at the two new off-take projects, Blue Ridge and Smokey
Hills.
In the short term, growth will come from continued ramp-up in production at
Zimplats, Marula and Smokey Hills and the resumption of operations at
Everest. In the longer term, growth will be underpinned by the Phase 2
expansion at Zimplats, restoration of full operations at Everest and
increasing deliveries of autocatalysts in line with the organic development
of this market.
CAPITAL EXPENDITURE
Group capital expenditure for the period under review totalled R4.6 billion
compared to R7.0 billion in FY2009. The majority of this expenditure
continued to be spent at Impala on the development of 16, 17 and 20 Shafts.
These shafts had been planned to dovetail with the closure of the older
shafts. The first shaft to commence production is 20 Shaft in FY2011,
followed by 16 Shaft in FY2013 and 17 Shaft in the latter part of the
decade. At full production these shafts will produce in the region of 500
000 ounces of platinum per annum. The bulk of the balance was spent at
Zimplats on the Phase 1 Expansion.
Capital expenditure for FY2011 is estimated to be in the region of R7.1
billion. The Impala shafts and the Zimplats Phase 2 Expansion will account
for most of the expenditure.
Prospects
The risks of returning to global recessionary conditions are decreasing
through the concerted efforts of world governments to stimulate their
economies. Notwithstanding this, it is forecast that a year of
unenthusiastic economic growth can be expected prior to a full revival of
the world economy. Given this scenario the platinum market is expected to
remain in deficit for 2010, and remain as such thereafter as growing heavy
duty diesel demand for platinum will encounter a challenging supply
environment.
The group is positioned to benefit from improved medium- to long-term
fundamentals for PGMs. The key to this is a stable and long-lasting
production platform. The delivery of the new mining projects at Impala
Rustenburg, the first of which is scheduled to commence production next
year, provides this base. Growth opportunities exist throughout the Group.
These will be developed in line with our growth profile to 2.1 million
ounces of platinum by 2014.
Khotso Mokhele David Brown
Chairman Chief Executive Officer
Johannesburg
26 August 2010
Declaration of final cash dividend
A final cash dividend of 270 cents per share has been declared in respect
of the financial year ended 30 June 2010. The last day to trade ("cum" the
dividend) in order to participate in the dividend will be Friday, 10
September 2010. The shares will commence trading "ex" the dividend from the
commencement of business on Monday, 13 September 2010 and the record date
will be Friday, 17 September 2010. The dividend is declared in the currency
of the Republic of South Africa. Payments from the UK transfer office will
be made in United Kingdom currency at the rate of exchange ruling on
Thursday, 16 September 2010, or on the first day thereafter on which a rate
of exchange is available. A further announcement stating the Rand/GBP
conversion rate will be released through the relevant South African and UK
news services on Friday, 17 September 2010. The dividend will be paid on
Monday, 20 September 2010. Share certificates may not be
dematerialised/rematerialised during the period Monday, 13 September 2010
to Friday, 17 September 2010, both dates inclusive.
By order of the Board
A Parboosing
Group Company Secretary
Johannesburg
26 August 2010
OPERATING STATISTICS
Year Year
ended ended
30 June 30 June
2010 2009
Gross refined
Platinum (000oz) 1 741 1 704
Palladium (000oz) 1 238 1 008
Rhodium (000oz) 252 248
Nickel (000t) 15.2 14.5
IRS metal returned (toll refined)
Platinum (000oz) 233 194
Palladium (000oz) 259 181
Rhodium (000oz) 49 38
Nickel (000t) 2.8 2.5
Sales volumes
Platinum (000oz) 1 435 1 503
Palladium (000oz) 945 781
Rhodium (000oz) 228 180
Nickel (000t) 12.8 13.5
Prices achieved
Platinum ($/oz) 1 433 1 219
Palladium ($/oz) 376 263
Rhodium ($/oz) 2 149 3 517
Nickel ($/t) 18 981 12 995
Consolidated statistics
Average rate achieved (R/$) 7.58 8.63
Closing rate for the period (R/$) 7.67 7.76
Revenue per platinum ounce sold ($/oz) 2 316 1 995
(R/oz) 17 555 17 217
Tonnes milled ex-mine (000t) 20 309 20 083
PGM refined production (000oz) 3 689 3 428
Capital expenditure (Rm) 4 554 6 923
Group unit cost per platinum ounce
Excluding share based compensation ($/oz) 1 335 1 005
(R/oz) 10 089 9 129
Including share based compensation ($/oz) 1 379 939
(R/oz) 10 417 8 526
STATEMENT OF FINANCIAL POSITION
As at As at
30 June 30 June
R millions Notes 2010 2009
Assets
Non-current assets
Property, plant and equipment 5 29 646 26 224
Exploration and evaluation assets 5 4 294 4 294
Intangible assets 5 1 018 1 018
Investment in associates 934 983
Available-for-sale financial assets 14 18
Held-to-maturity financial assets 56 51
Receivables and prepayments 13 781 13 592
49 743 46 180
Current assets
Inventories 5 382 4 248
Trade and other receivables 3 588 3 904
Cash and cash equivalents 3 858 3 348
12 828 11 500
Total assets 62 571 57 680
Equity and liabilities
Equity attributable to owners of the
company
Share capital 14 151 14 069
Retained earnings 30 017 27 222
Other components of equity (376) (352)
43 792 40 939
Non-controlling interest 1 941 1 864
Total equity 45 733 42 803
Liabilities
Non-current liabilities
Deferred tax liability 7 747 6 909
Long-term borrowings 7 1 827 1 778
Long-term provisions 1 498 1 098
11 072 9 785
Current liabilities
Trade and other payables 5 147 4 634
Current tax payable 24 36
Short-term borrowings 7 301 207
Short-term provisions 294 215
5 766 5 092
Total liabilities 16 838 14 877
Total equity and liabilities 62 571 57 680
STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
30 June 30 June
R millions 2010 2009
Revenue 25 446 26 121
Cost of sales (17 294) (16 359)
Gross profit 8 152 9 762
Other operating expenses (585) (497)
Royalty expense (536) (442)
Profit from operations 7 031 8 823
Finance income 321 963
Finance cost (319) (169)
Net foreign exchange transaction 52 (211)
gains/(losses)
Other income/(expenses) 45 (54)
Share of profit of associates 95 41
Profit before tax 7 225 9 393
Income tax expense (2 431) (3 389)
Profit for the year 4 794 6 004
Other comprehensive income:
Available-for-sale financial assets 16 (47)
Deferred tax thereon (4) 9
Exchange differences on translating foreign (34) 51
operations
Deferred tax thereon (4) (14)
Total comprehensive income for the year 4 768 6 003
Profit attributable to:
Owners of the company 4 715 6 020
Non-controlling interest 79 (16)
4 794 6 004
Total comprehensive income attributable to:
Owners of the company 4 691 6 024
Non-controlling interest 77 (21)
4 768 6 003
Earnings per share (cents per share)
Basic 786 1 001
Diluted 785 1 000
SEGMENTAL ANALYSIS
2010 2009
Gross Gross
R millions Revenue profit Revenue profit
Mining
Impala 24 541 5 368 25 310 7 604
Mining 14 025 5 222 15 250 7 586
Metals purchased 10 516 146 10 060 18
Zimplats 3 052 1 571 1 099 (9)
Marula 1 130 (11) 631 (301)
Mimosa 1 032 495 631 127
Inter-segment adjustment (4 964) (399) (2 217) 1 138
External parties 24 791 7 024 25 454 8 559
Refining services 11 069 1 188 10 507 1 265
Inter segment adjustment (10 414) (60) (9 840) (62)
External parties 655 1 128 667 1 203
Total external parties 25 446 8 152 26 121 9 762
Capital Total Capital Total
R millions expenditure assets expenditure assets
Mining
Impala 3 435 39 106 4 782 36 549
Zimplats 698 5 818 1 358 4 881
Marula 281 3 182 398 2 831
Mimosa 127 1 567 277 1 295
Afplats 13 7 220 108 7 216
Total mining 4 554 56 893 6 923 52 772
Refining services 4 571 3 740
Other 1 107 1 168
Total 4 554 62 571 6 923 57 680
STATEMENT OF CHANGES IN EQUITY
Other Attribu
t-
Share Re- compo- able to Non- Total
tained nents owners control-
of of the ling
R millions capital earning equity company interest equity
Balance at 14 069 27 222 (352) 40 939 1 864 42 803
30 June 2009
Shares issued
Share option 7 7 7
scheme
Employee Share
Ownership
Programme 75 75 75
Total 4 715 (24) 4 691 77 4 768
comprehensive
income
Dividends (1 920) (1 920) (1
920)
Balance at 30 14 151 30 017 (376) 43 792 1 941 45 733
June 2010
Balance at 30 14 750 29 024 (356) 43 418 1 885 45 303
June 2008
Shares issued
Share option 9 9 9
scheme
Employee Share
Ownership
Programme 34 34 34
Shares (724) (724) (724)
purchased
Total 6 020 4 6 024 (21) 6 003
comprehensive
income
Dividends (7 822) (7 822) (7
822)
Balance at 30 14 069 27 222 (352) 40 939 1 864 42 803
June 2009
CASH FLOW STATEMENT
Year ended Year ended
30 June 30 June
R millions 2010 2009
Cash flows from operating activities
Profit before tax 7 225 9 393
Adjustments to profit before tax 1 648 (185)
Cash from changes in working capital (1 184) 371
Exploration costs (47) (83)
Finance cost (48) (122)
Income tax paid (1 676) (2 867)
Net cash from operating activities 5 918 6 507
Cash flows from investing activities
Purchase of property, plant and equipment (4 412) (6 791)
Proceeds from sale of property, plant and 13 51
equipment
Proceeds from investments disposed 8 -
Purchase of investments 0 (6)
Payment received from associate on 196 96
shareholders loan
Loan repayments received 442 9
Net advances (106) -
Finance income 259 915
Net cash used in investing activities (3 600) (5 726)
Cash flows from financing activities
Issue of ordinary shares, net of cost 82 43
Purchase of treasury shares - (724)
Lease liability repaid (18) (16)
Repayments of borrowings (136) -
Proceeds from borrowings 176 579
Dividends paid to company`s shareholders (1 920) (7 822)
Net cash used in financing activities (1 816) (7 940)
Net (decrease)/increase in cash and cash 502 (7 159)
equivalents
Cash and cash equivalents at beginning of 3 348 10 393
year
Effect of exchange rate changes on cash and 8 114
cash equivalents held in foreign currencies
Cash and cash equivalents at end of year 3 858 3 348
HEADLINE EARNINGS
Year ended Year ended
R millions 2010 2009
Headline earnings attributable to owners of
the company
arises from operations as follows:
Profit attributable to owners of the company 4 715 6 020
Adjustments net of tax:
Profit on disposal of property, plant and (4) (5)
equipment
Loss on disposal of investment 7 -
Headline earnings 4 718 6 015
Weighted average number of ordinary shares 600.16 601.12
in issue
Headline earnings per share (cents) 786 1 001
NOTES
1. General information
Impala Platinum Holdings Limited (Implats) is a leading 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 primary listing on the securities exchange operated by the
JSE Limited.
This consolidated annual financial results were approved for issue on 26
August 2010 by the board of directors.
2. Basis of preparation
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) of the International
Accounting Standards Board (IASB), requirements of the South African
Companies Act, 1973 as amended, the AC500 standards, as issued by the
Accounting Practices Board or its successor and regulations of the JSE
Limited.
The consolidated financial statements have been prepared under the
historical cost convention except for the following:
- certain financial assets and financial liabilities are measured at fair
value,
- derivative financial instruments are measured at fair value, and -
liabilities for cash-settled share-based payment arrangements are measured
with a binomial option model.
The consolidated financial information is presented in South African rands,
which is the company`s functional currency.
3. Accounting policies
The principle accounting policies applied are consistent with those of the
annual financial statements for the previous year, except for the adoption
of various revised and new standards as fully described in the annual
report available on the company`s website. The adoption of these standards
had no material impact on the financial results of the Group. 4. Audit
opinion
The financial statements have been audited by PricewaterhouseCoopers Inc.
whose unqualified opinion is available for inspection at the registered
office of Implats.
5. Property, plant and equipment, exploration and evaluation, and
intangible assets
Exploration
Property, and
plant and evaluation Intangible
R millions equipment assets assets
Opening net book amount as at 26 224 4 294 1 018
1 July 2009
Additions 4 476
Interest capitalised 78
Disposals (8)
Depreciation (1 083)
Exchange adjustment on (41)
translation
Closing net book amount as at 29 646 4 294 1 018
30 June 2010
Opening net book amount as at 20 601 4 294 1 018
1 July 2008
Additions 6 839
Interest capitalised 84
Disposals (44)
Depreciation (979)
Exchange adjustment on (277)
translation
Closing net book amount as at 26 224 4 294 1 018
30 June 2009
6. Capital commitment and derivative exposure
Capital expenditure approved at 30 June 2010 amounted to R20.4 billion
(June 2009: R22.1 billion), of which R2.6 billion (June 2009: R2.9 billion)
is already committed. The expenditure will be funded internally and if
necessary, from borrowings. With regards to derivative financial
instruments, the group, from time to time, sells refined metal on behalf of
third parties, into the market with a commitment to repurchase the metal at
a later date. The net fair value of the commitments as at 30 June 2010
amounted to R228 million (2009: R38 million).
7. Borrowings
Borrowings from Standard Bank South Africa Limited:
Loans were obtained by BEE partners to purchase a 27% share in Marula
Platinum amounting to R775 million (June 2009: R710 million). The BEE
partnership in Marula is consolidated as the loans are guaranteed by
Implats. The loans carry interest at the Johannesburg Interbank Acceptance
Rate (JIBAR) plus 130 (June 2009: 130) basis points and a revolving credit
facility amounting to R117 million (June 2009: R107 million), which carries
interest at JIBAR plus 145 (June 2009: 145) basis points. The loans expire
in 2020.
Two loan facilities from Standard Bank of South Africa Limited to finance
the Ngezi Phase One expansion at Zimplats were secured.
Loan 1 of R614 million is denominated in US$ for US$80 million and bears
interest at London Interbank Offering Rate (LIBOR) plus 700 basis points.
The loan is repayable in twelve quarterly instalments commencing in
December 2009 and will be fully repaid by December 2012. At the end of the
period the outstanding balance amounted to R484 million (US$63 million)
(June 2009: R588 million (US$76 million)).
Loan 2 of R500 million (June 2009: R300 million) is denominated in South
African rand and bears interest at JIBAR plus 700 (2009: 700) basis points.
This loan is repayable in ten semi-annual instalments commencing in
December 2010 and will be fully repaid by June 2015. At the end of the
period the outstanding balance amounted to R490 million (June 2009: R261
million). These loans are secured by sessions over cash, debtors and
revenue of Zimplats Mines.
The total undrawn committed facilities at year end were R3.4 billion (2009:
R3.4 billion).
8. Dividends per share
On 26 August 2010, a sub-committee of the board declared a final dividend
of 270 cents per share amounting to R1.6 billion in respect of the
financial year 2010. Secondary Tax on Companies (STC) on the dividend will
amount to R160 million.
Dividends paid
Final dividend No. 83 for 2009 of 200
(June 2008: 1 175) cents per share 1 202 7 110
Interim dividend No 84 for 2010 of 120
(2009: 120) cents per share 718 712
1 920 7 822
9. Contingent liabilities and guarantees
As year end the group had bank and other guarantees of R600 million (2009:
R508 million).
There were no contingent liabilities at year end.
Corporate information
Registered Office
2 Fricker Road, Illovo 2196
(Private Bag X18, Northlands 2116)
Transfer Secretaries
South Africa: Computershare Investor Services (Pty) Limited70 Marshall
Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
United Kingdom: Computershare Investor Services plc
The Pavilions, Bridgwater Road, Bristol, BS13 8AE
Directors
Dr K Mokhele (Chairman), DH Brown (Chief Executive Officer),
NDJ Carroll#, P Dunne, D Earp, T Goodlace, JM McMahon*, MV Mennell,
TV Mokgatlha, NDB Orleyn, LJ Paton, M Pooe
*British #Alternate to T V Mokgatlha
The Integrated Annual Report of the Group is available on the company`s
internet website.
http://www.implats.co.za
Please contact the Company Secretary, via e-mail at
avanthi.parboosing@implats.co.za or by post at Private Bag X18, Northlands
2116, South Africa, or telephone (011) 731 9000.
Johannesburg
26 August 2010
Sponsor
Deutsche Securities (SA) (Pty) Limited
Date: 26/08/2010 08:00:01 Supplied by www.sharenet.co.za
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