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IMP - Impala Platinum Holdings Limited - Implats third quarter production report for period 01 January to 31 March 2012 Impala Platinum Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 1957/001979/06) ISIN: ZAE000083648 JSE code: IMP LSE code: IPLA ADR code: IMPUY ("Implats") IMPLATS THIRD QUARTER PRODUCTION REPORT FOR PERIOD 01 JANUARY TO 31 MARCH 2012 Unaudited Unaudited Unaudited Unaudited Operational Quarter Quarter Nine Nine information ended ended months months 31 March 31 March 31 March 31 March
2012 2011 2012 2011 Implats Gross Refined Production Platinum 000oz 230 425 1 076 1 377 Palladium 000oz 160 280 688 903 Rhodium 000oz 40 63 158 192 Nickel 000tonne 3.6 3.9 11.4 12.3
Impala1 Tonnes Milled* 000 1 091 2 994 7 937 10 800 Grade (6E)* g/t 4.43 4.59 4.46 4.63 Merensky Milled* % 39 44 44 42 Refined Platinum 000oz 76 222 566 722 Production Marula Tonnes Milled 000 320 303 1 127 1 190 Grade (6E) g/t 3.99 4.39 4.17 4.37 Platinum in 000oz 13 14 49 55 Concentrate Zimplats Tonnes Milled 000 1 069 1 007 3 239 3 085 Grade (6E) g/t 3.54 3.54 3.54 3.58 Platinum in Matte 000oz 45 42 137 131 Mimosa Tonnes Milled 000 578 566 1 725 1 704 Grade (6E) g/t 3.94 3.91 3.93 3.89 Platinum in 000oz 26 26 79 77 Concentrate
IRS2 Refined Platinum 000oz 154 203 510 655 Production
Prices Achieved Platinum $/oz 1 547 1 779 1 639 1 656 Palladium $/oz 667 791 697 636 Rhodium $/oz 1 409 2 370 1 671 2 292 Nickel $/tonne 18 964 26 720 19 921 23 104 Average exchange R/$ 7.79 7.02 7.62 7.11 rate
Unit Cost after off 20 081 10 734** 12 970 10 414** reef capitalisation Incorporates the recent six week strike at Impala Rustenburg. Third party material impacted by the treatment of Lonmin material in the comparable FY2011 quarter. * The ex-mine tonnage, grade and % Merensky statistics tabulated above excludes the low grade material from surface sources. ** Not restated for off-reef capitalisation. Safety Three of our employees lost their lives at work during the third quarter of FY2012. Two fatalities occurred at Impala Rustenburg as a result of underground incidents. Matona Koenyama lost his life due to a truck and tramming incident, and Dumisani Neewell Choqha as a result of a fall of ground. At Marula, Malefetsane Michael Likotsi drowned in shallow water underground. The medical causes are still under investigation. The Board and Management Team extend their sincere sympathies to the families, friends and colleagues of our deceased employees. The Lost Time Injury Frequency Rate ("LTIFR") year to date deteriorated to 5.00 per million man hours worked from 4.94 for FY2011. The issuance of Section 54 notices in terms of the South African Mines Health and Safety Act during the third quarter resulted in the loss of approximately 5 000 ounces of platinum production, down from the first six months where 8 000 and 25 000 ounces were lost in the first and second quarters respectively. A direct comparison is, however, difficult to make as production in the third quarter was severely impacted by the industrial action at Impala Rustenburg. The company remains committed to working together with the Department of Mineral Resources ("DMR") to eliminate fatalities and other injuries in our work environment and, to this end, continues to focus on building and maintaining a professional relationship with the regulatory authorities. Production Gross platinum production declined by 46% or by 195 000 to 230 000 ounces for the quarter compared with the corresponding period a year ago. The strike resulted in significantly lower production at Impala Rustenburg while a reduction of third party ounces impacted Impala Refining Services ("IRS"). While both palladium and rhodium were similarly affected, the effect on nickel was mitigated by the processing of nickel sulphate stocks. Impala Tonnes milled were down 64% to 1.09 million tonnes while platinum ounces declined by 146 000. This was due to the strike (120 000 ounces lost production), the ramp-up in production (21 000 ounces lost production) and Section 54 stoppages (5 000 ounces lost production). As a consequence platinum production fell to 76 000 ounces. Merensky throughput declined to 39% due to a change in the mined ratio during the strike as the UG2 opencast operation remained unaffected by the work stoppage. Marula Tonnes milled increased by 6% to 320 000. However, a higher proportion of on-reef development resulted in a 9% decrease in grade and a consequent marginal decline in platinum production in concentrate to 13 000 ounces. Zimplats Platinum production in matte rose by 7% to 45 000 ounces in line with the corresponding increase in tonnes milled to 1.07 million. The Phase 2 expansion project remains on schedule to increase production to 270 000 ounces of platinum in FY2014. On 13 March 2012, the company presented a new indigenisation plan to the Government of Zimbabwe. The Government of Zimbabwe has agreed in principle that the plan is compliant with the law and is acceptable. In terms of the proposal, 10% of Zimplats will be issued to the Community Trust, and 10% to an Employee Share Ownership Trust. Following compensation at fair value in lieu of empowerment credits for previously released ground, Zimplats will make available for sale a 31% fully contributory stake in Zimplats for cash at an independently determined fair value to broad based indigenous Zimbabwe groupings. Management remain in negotiations with the Government of Zimbabwe to finalise the agreed plan. Mimosa At Mimosa production of 26 000 ounces of platinum is in line with steady state production. Mimosa remains in discussions with the Government of Zimbabwe regarding the company`s indigenisation plans. IRS Throughput at IRS was impacted by lower volumes from both Crocodile River and recycling, as well as the fact that 27 000 ounces of once-off Lonmin toll material was processed in the corresponding period a year ago. As a consequence refined platinum production declined by 24% quarter on quarter. Group Unit Costs (excluding SBP) Group unit costs per platinum ounce produced excluding share-based payments, when compared to the corresponding period a year ago, were severely impacted by the strike at Impala Rustenburg. Post third quarter events Subsequent to the end of the third quarter, Impala Rustenburg continued its ramp-up but has not yet reached full production. In April the operation produced 50 000 ounces of platinum. As of the beginning of May production had reached 75% of budgeted production levels and full production is expected to be achieved in June 2012. In order to address the grievances of the rock drill operators (RDO`s) and in recognition of their unique skills and expertise, the company has promoted these employees to a higher grade which incorporated a salary adjustment to better align them to the company`s stated remuneration philosophy and to reflect the unique role they play in the production teams. The company also approved an early implementation of the agreed annual increase. An additional adjustment where job categories did not match the required market position were made. Management continues to engage with all parties in order to move to full production and ensure employee affiliations are resolved. Currently, the company is undertaking a union membership verification. To date 10 813 employees have confirmed their resignation from the National Union of Mineworkers ("NUM"). This has reduced the NUM membership amongst employees within the bargaining unit. The Association of Mineworkers and Construction Union ("AMCU") claims membership of over 8 000 employees and has approached the company for organisational rights. Membership levels are currently being verified. In April 2012, there were two negative aspects reported in the media. A misleading article was printed in the press with regard to Implats` handling of the death of a contractor. A response to the article was made available to the media and is on the company`s website. On 24 May 2012, all the criminal charges against Implats were withdrawn by the State. During the strike a video was used to intimidate employees and was subsequently aired by the media. Our investigation has revealed that this material was neither filmed during the recent strike nor at Impala Rustenburg. Johannesburg 29 May 2012 Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited 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 Date: 29/05/2012 08:00:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). 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