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IMPALA PLATINUM HOLDINGS LIMITED - Consolidated interim results (reviewed) for the six months ended 31 December 2012

Release Date: 14/02/2013 08:00
Code(s): IMP     PDF:  
Wrap Text
Consolidated interim results (reviewed) for the six months ended 31 December 2012

Impala Platinum Holdings Limited
(Incorporated in the Republic of South Africa)
Registration No. 1957/001979/06
Share code: JSE: IMP    
ISIN: ZAE000083648 
ADRs: IMPUY
(Implats or the Company or the Group) 
Consolidated interim results (reviewed) for the six months ended 31 December 2012

Implats vision
To be the worlds best platinum-producing company, delivering superior returns to shareholders relative to our peers.

Implats values
- Safeguarding the health and safety of our employees, and caring for the environment in which we operate
- Acting with integrity and openness in all that we do and fostering a workplace in which honest and open
communication thrives
-  Promoting and rewarding teamwork, innovation, continuous improvement and the application of best practice by being
a responsible employer, developing people to the best of their abilities and fostering a culture of mutual respect
among employees
- Being accountable and responsible for our actions as a company and as individuals
- Being a good corporate citizen in the communities in which we live and work.


Safety
- Remains a key priority

Platinum production
- Gross production up 2% to 865 000 ounces
- Impala Rustenburg down 25%

Costs
- Lower refined volumes at Impala increased Group unit costs significantly

Revenue
- Decreased marginally by 2% to R15.2 billion

Earnings and dividend
- Headline earnings decreased by 78% to R776 million
- Dividend of 35 cents per share

Market
- Market moved into a deficit

COMMENTARY
The South African platinum industry witnessed significant labour disruptions during the period under review. Despite
these events, adequate above-ground stocks coupled with an anaemic macro-economic environment resulted in no respite for
platinum group metal prices and have thus placed the industry under considerable stress with many shafts now being in a
loss-making situation. The first of the new major capital projects at Rustenburg, 20 Shaft, has commenced production.
The other two, namely 16 and 17, as well as the Phase 2 expansion at Zimplats, remain on track. Indigenisation plans for
both Zimplats and Mimosa have been submitted and accepted by the Government of Zimbabwe.

MARKET REVIEW
Calendar year 2012 has proven to be a watershed year in the platinum industry, as significant labour disruptions at
Impala Rustenburg, and subsequently at other platinum producers, reduced South African platinum production by in excess of
600 000 ounces. Above inflationary increases particularly in wages and power costs, together with declining
productivity have forced some South African PGM miners to review their capital plans and cut back on unprofitable shafts. 
Turning to the major demand sectors, the automotive industry continued to perform well, following the devastating
events in Japan in March 2011 and the floods in Thailand some months later. Europe was an obvious exception where sales were
down some 8%. The US market witnessed growth of 13% in passenger vehicle sales and China, in spite of hard landing
fears, continued to post a healthy 7% growth. Globally, passenger vehicle sales increased by more than 5%, to exceed 80
million units for the year. This has clearly benefitted the demand for our metals, particularly palladium due to the greater
prevalence of gasoline-powered vehicles in the US and China. Jewellery markets also experienced growth primarily driven
out of China and India where platinum is becoming much more accepted as a jewellery metal. 
This has resulted in the platinum market moving into a deficit in the region of half a million ounces. In the case of
palladium, where supplies were further impacted by considerably lower Russian stock sales, the market deficit was closer
to one million ounces. The dearth of recent capital investment will have a dramatic impact on future metal availability,
and will result in tight market conditions for both metals going forward.

SAFETY REVIEW
Safety remained unsatisfactory with six fatalities during the half year ended December 2012. All the incidents
occurred at Impala Rustenburg. Two were due to a blasting incident and the others were as a result of a truck-and-tramming, a 
flammable gas burn, a loading chute inundation and a scraper incident. It is encouraging to report that there were no
fall-of-ground fatalities during the period under review. The Board, Management and all of the Implats team
extend their sincere condolences to the families and friends of those who have died.
The Lost Time Injury Frequency Rate improved marginally to 4.88 per million man hours
worked. Impala and Marula improved by 1.7% to 5.64 and 40.4% to 6.83 respectively, whilst Zimplats deteriorated to 1.03.
Mimosa improved to 0.50. The Total Injury Frequency Rate deteriorated from 11.2 to 12.2 per million man-hours worked. 
Our safety strategy is focused on a cultural transformation framework, closing the supervision gap and a number of new technical 
initiatives being implemented.

OPERATIONAL REVIEW
Gross refined platinum production increased by 2% to 865 000 ounces for the first half of the financial year 2013
compared to the corresponding period a year ago. Mine-to-market output declined by 16% to 621 000 ounces of platinum
primarily due to the lower volumes at Impala Rustenburg, whilst non-managed production increased by 126% to 244 000 ounces as a
result of a large increase in once-off toll receipts. The lower volumes at Impala negatively impacted on Group unit
costs which rose by 42% to R15 983 per platinum ounce.

Impala Platinum
Impala Rustenburg continued to be impacted by the complex changing labour environment experienced since the strike and the
subsequent events in the region. The operation has also been impacted by company and DME safety stoppages, a lack of ore 
reserve flexibility and mining quality. As a consequence tonnes milled decreased by 10% to 6.18 million. However, refined 
platinum production declined by 25% to 368 000 ounces exacerbated by a 22 000 ounce pipeline lockup. Unit costs per platinum 
ounce refined excluding share based payments rose by 52% to R16 674 primarily due to the lower production volumes.
The focus at Rustenburg remains on the development of the three new major shafts. First production commenced at 20
Shaft, while at 16 shaft equipping is in progress with first production scheduled for FY2014. Sinking at the 17 Shaft
complex remains on target. Capital expenditure decreased by 28.1% to R2.2 billion in line with the companys cash
preservation plan.
Labour relations continue to receive managements highest attention. Following the derecognition of the NUM, we are
now embarking on a new labour dispensation. Our approach in this regard is based on an inclusive rather than an exclusive
one that enables representation of multiple unions.

Zimplats
Tonnes milled remained flat period on period at 2.2 million. A fire in the smelter during November and a
subsequent run out in December impacted on platinum in matte production which declined by 20% to 73 400 ounces. 
Concentrates stockpiled during the furnace outages (18 000 ounces) will be smelted before the end of the financial year.
Unit costs per platinum ounce in matte increased by 26.3% to US$1 670 primarily due to a combination of lower smelter 
throughput and inflation. In rand terms, unit costs increased by 41.3% to R14 142 per platinum ounce in matte exacerbated 
by the weakening of the rand. 
The Phase 2 expansion which will increase production by 90 000 to 270 000 ounces of platinum in FY2015 remains on
schedule. 
Zimplats concluded a non-binding term sheet with the Government of Zimbabwe on 11 January 2013 which stipulates the
key terms of its indigenisation plan. It is envisaged that binding agreements and all the conditions precedent in terms of
this transaction will be completed by 30 June 2013.

Marula
Tonnes milled increased by 2.4% to 0.83 million and platinum production in concentrate rose 0.8% to 36 300 ounces.
This is in line with planned production of 70 000 ounces of platinum in concentrate. Mining inflation, a productivity 
intervention and additional development labour affected unit cost which rose by 27% to R19 118 per ounce in concentrate.
The strategic review, as previously indicated, has been completed and has proved the operations ability to sustain a
minimum of 70 000 ounces of platinum per annum and its capacity through the optimisation of the existing infrastructure
to accommodate an increase in production to 90 000 ounces of platinum over the medium-term.

Mimosa
Mill throughput increased by 3.9% to 1.2 million tonnes whilst platinum production in concentrate rose 4.4% in line
with this to 54 700 ounces. Unit costs per platinum ounce in concentrate increased by 9.8% to US$1 649 and by 22.8% to R13 967
in rand terms primarily due to dollar mining inflation and the increased use of plant reagents and mining consumables. The rand 
costs were impacted by the weaker rand.
Discussions on indigenisation were concluded in December and a non-binding term sheet setting out the key details of
the indigenisation plan was signed on 14 December 2012. It is expected that all agreements should be finalised by the end
of March 2013.

Two Rivers
Tonnes milled rose by 2% to 1.6 million, and together with improved recoveries due to a higher feed grade and
metallurgical efficiencies, resulted in an 8.6% increase in platinum production in concentrate to 83 200 ounces. Unit costs per
platinum ounce in concentrate rose by 5.8% to R10 829.

Impala Refining Services (IRS)
Refined platinum production increased by 39.7% to 497 100 ounces as lower third party deliveries were more than offset
by a significant increase in once-off tolling treatment receipts.

Mineral Resources and Mineral Reserves
There has been a no material change to the technical information or legal title relating to the groups mineral
reserves and resources, as disclosed in the Annual Report for the financial year ended 30 June 2012.

FINANCIAL REVIEW
The financial performance of the Group for the six months to December 2012 was significantly affected by reduced mine
to market ounces mainly as a result of lower production at Impala Rustenburg, above inflation cost increases and the
impairment of a long-term receivable during this reporting period. 
Revenues, at R15.2 billion, were R251 million lower than those achieved in the six months to December 2011. 
- Reduced volumes accounted for R225 million. This comprised of lower mine to market volumes (mainly Impala
Rustenburg) of R475 million, which was partially offset by higher toll refining volumes of R250 million due to once-off
concentrates received. 
- In total, lower dollar metal prices reduced revenues by R1.7 billion, primarily due to reduced US$ prices for
platinum, palladium, rhodium and nickel which each reduced by 7.9%, 12.1%, 35.9% and 19.9% respectively. 
- The lower dollar metal prices were offset by the weaker rand of R8.48 (previous year of R7.55) which gave rise to a
positive R1.7 billion in revenues. 
Group unit costs increased from R11 283 per platinum ounce to R15 983 per ounce and were affected by:
- Group inflation of 14.5% comprising: 
  Inflation for the South African operations of 13.4% due to: 
  - wage increases of 17.6%; 
  - consumables increasing by 6.6%; and 
  - an increase in the price of utilities of 16.3%.
  Inflation at the Zimbabwean operations of 20.1 % comprising dollar inflation of 7.3% compounded by a weaker rand.
  The dollar inflation was mainly due to:
  - wage increases of 13.0%; 
  - consumables increasing by 2.5%; and 
  - electricity price increases of 10.0%. 
- The lower volumes were the main contributor to the increase in unit cost contributing  24% to the increase. The
bulk of this was due to production from Impala Rustenburg being 25% lower than the comparable period.
During the period under review an impairment charge of R603 million was taken, of which R550 million was for the potential 
non-recovery of a portion of the outstanding receivable amount from a recycling toll refining customer. 
Profit for the period was further negatively affected by a once-off charge of R129.3 million due to a provision for a
prior year tax adjustment for Zimplats.
Cash generated from operations amounted to R3.1 billion (December 2011: R3.1 billion). Cash utilised on capital
expenditure amounted to R3.2 billion (December 2011: R3.5 billion) mainly on 20, 16 and 17 shafts at Impala Rustenburg and the
Ngezi phase 2 project at Zimplats. The cash generated for the six months under review was enhanced by the following two
items not in the normal course of operations, namely:
- Debtor receipts from sale of houses R503 million; and
- Realisation of the metal received as part repayment of loans due by a recycling customer of R482 million.
Cash reduced from R3.3 billion (December 2011) to R0.4 billion mainly impacted by the reduced closing balance at the
end of June 2012. Total borrowings in the Group (including finance leases) increased by R0.3 billion to R3.0 billion,
leaving the Group in a net borrowed position at December 2012 of R2.6 billion. 
As part of its continued cash conservation strategy, the Board has resolved to maintain the dividend cover at the year
to 30 June 2012 level, after adjusting for R550 million of the impairment charge. The Board has consequently
resolved to declare an interim dividend of 35 cents per share.

PROSPECTS
The fundamentals for PGMs remain robust as a result of tight South African supply and on-going firm demand by the automotive 
industry. This should have a positive impact on PGM prices. The operating environment in South Africa continues to be challenging 
as a result of the changing labour dynamics and increased stakeholder expectations. Cost pressures will remain high as a result 
of proposed power increases and potential wage demands, which could be mitigated to some extent by a recovery at Impala Rustenburg. 
Implats takes a long-term view on the business and will continue to invest in replacement shafts in South African and the growth 
project in Zimbabwe.

KDK Mokhele                                      TP Goodlace
Chairman                                         Chief Executive Officer

Johannesburg
14 February 2013

DECLARATION OF INTERIM CASH DIVIDEND
Notice is hereby given that a gross interim dividend of 35 cents per share for the half year ended 31 December 2012
has been declared payable to shareholders of ordinary shares. The dividend has been declared out of income reserves. The
number of ordinary shares in issue at the date of this declaration is 632.21 million. The dividend will be subject to a
local dividend tax rate of 15% which will result in a net dividend, to those shareholders who are not exempt from paying
dividend tax, of 29.75 cents per share. There are no Secondary Tax on Companies (STC) credits to be set off against the
dividend tax. The Companys tax reference number is 9700/178/71/9. The salient dates relating to the payment of the
dividend are as follows: 
Last day to trade cum dividend on the JSE                       Friday, 1 March 2013 
First trading day ex dividend on the JSE                        Monday, 4 March 2013 
Record date                                                     Friday, 8 March 2013 
Payment date                                                    Monday, 11 March 2013 
The dividend is declared in the currency of the Republic of South Africa. Payments from the United Kingdom transfer
office will be made in United Kingdom currency at a spot rate of exchange ruling on Thursday, 7 March 2013, or on the
first day thereafter on which a rate of exchange is available. 
A further announcement stating the Rand/GBP convertion rate will be released through the relevant South African and
United Kingdom news services on Friday, 8 March 2013. 
No share certificates may be dematerialised or rematerialised between Monday, 4 March 2013 and Friday, 8 March 2013,
both days inclusive. Dividends in respect of certificated shareholders will be transferred electronically to
shareholders bank accounts on the payment date. In the absence of specific mandates, dividend cheques will be posted to
shareholders. Shareholders who hold dematerialised shares will have their accounts at their Central Securities Depository
Participant (CSDP) or broker credited on 11 March 2013.
 
A Parboosing
Company Secretary

Johannesburg
14 February 2013

APPROVAL OF THE INTERIM FINANCIAL STATEMENTS
The directors of the Company are responsible for the maintenance of adequate accounting records and the preparation of
the Interim Financial Statements and related information in a manner that fairly presents the state of the affairs of
the Company. These Interim Financial Statements are prepared in accordance with International Financial Reporting
Standards and incorporate full and responsible disclosure in line with the accounting policies of the Group which are supported
by prudent judgements and estimates.
The interim financial statements have been prepared under the supervision of the Chief Financial Officer Ms. B Berlin,
CA(SA).
The directors are also responsible for the maintenance of effective systems of internal control which are based on
established organisational structure and procedures. These systems are designed to provide reasonable assurance as to the
reliability of the Interim Financial Statements, and to prevent and detect material misstatement and loss.
The Interim Financial Statements have been prepared on a going-concern basis as the directors believe that
the Company and the Group will continue to be in operation for the foreseeable future.
The Interim Financial Statements have been approved by the Board of directors and are signed on its behalf by:

KDK Mokhele                           TP Goodlace
Chairman                              Chief Executive Officer

Johannesburg
14 February 2013


  Consolidated statement of financial position
                                                        As at          As at        As at   
                                                  31 December    31 December      30 June   
                                                         2012           2011         2012   
  R million                              Notes      (Reviewed)     (Reviewed)    (Audited)  
  Assets                                                                                    
  Non-current assets                                                                        
  Property, plant and equipment              5         42 660         37 114       40 169   
  Exploration and evaluation assets                     4 294          4 294        4 294   
  Intangible assets                                     1 018          1 018        1 018   
  Investment in associates                              1 100            956        1 021   
  Available-for-sale financial assets                      36             15           32   
  Held-to-maturity financial assets                        51             64           49   
  Loans                                      6            850          2 322        1 227   
  Prepayments                                          10 967         11 027       11 129   
  Deferred tax asset                                      129             60          148   
                                                       61 105         56 870       59 087   
  Current assets                                                                            
  Inventories                                           7 675          6 275        7 081   
  Trade and other receivables                           3 733          4 337        4 305   
  Loans                                      6            192             71          538   
  Prepayments                                             415            563          571   
  Cash and cash equivalents                             1 568          3 334        1 193   
                                                       13 583         14 580       13 688   
  Total assets                                         74 688         71 450       72 775   
  Equity and liabilities                                                                    
  Equity attributable to owners of the Company                                                       
  Share capital                                        15 202         15 172       15 187   
  Retained earnings                                    35 396         35 072       34 949   
  Other components of equity                              212            (22)          32   
                                                       50 810         50 222       50 168   
  Non-controlling interest                              2 356          2 255        2 307   
  Total equity                                         53 166         52 477       52 475   
  Liabilities                                                                               
  Non-current liabilities                                                                   
  Deferred tax liability                               10 120          9 413        9 773   
  Borrowings                                 7          2 883          2 624        2 882   
  Liabilities                                           1 100            999          812   
  Provisions                                              893            681          757   
                                                       14 996         13 717       14 224   
  Current liabilities                                                                       
  Trade and other payables                              4 380          4 663        4 858   
  Current tax payable                                     375            196          176   
  Borrowings                                 7             87             77          121   
  Bank overdraft                                        1 160              -          606   
  Liabilities                                             524            320          315   
                                                        6 526          5 256        6 076   
  Total liabilities                                    21 522         18 973       20 300   
  Total equity and liabilities                         74 688         71 450       72 775 
  The notes are an integral part of this condensed interim financial information.                                                      


  Consolidated statement of comprehensive income
                                                                                 Six months     Six months         Year   
                                                                                      ended          ended        ended   
                                                                                31 December    31 December      30 June   
                                                                                       2012           2011         2012   
  R million                                                            Notes      (Reviewed)     (Reviewed)    (Audited)  
  Revenue                                                                            15 161         15 412       27 593   
  Cost of sales                                                            8        (12 560)       (10 949)     (21 337)  
  Gross profit                                                                        2 601          4 463        6 256   
  Other operating (expenses)/income                                        9           (655)           418          111   
  Royalty expense                                                                      (344)          (464)        (664)  
  Profit from operations                                                              1 602          4 417        5 703   
  Finance income                                                                        111            182          314   
  Finance cost                                                                         (293)          (131)        (305)  
  Net foreign exchange transactions gains                                               290            608          520   
  Other expenses                                                          10            (90)           (10)         (99)  
  Share of profit of associates                                                          73             60          117   
  Profit before tax                                                                   1 693          5 126        6 250   
  Income tax expense                                                                   (885)        (1 567)      (1 951)  
  Profit for the period                                                                 808          3 559        4 299   
  Other comprehensive income, comprising items subsequently 
  reclassified to profit or loss:                                      
  Available-for-sale financial assets                                                     4             (2)          (3)  
  Deferred tax thereon                                                                    -              -            -   
  Exchange differences on translating foreign operations                                288          1 267        1 356   
   Deferred tax thereon                                                                 (81)          (355)        (379)  
  Other comprehensive income, comprising of items not subsequently 
  reclassified to profit or loss:                                      
  Actuarial loss on post-employment medical benefit                                       -              -           (4)   
   Deferred tax thereon                                                                   -              -            1   
  Total comprehensive income                                                          1 019          4 469        5 270   
  Profit attributable to:                                                                                                 
  Owners of the Company                                                                 813          3 482        4 180   
  Non-controlling interest                                                               (5)            77          119   
                                                                                        808          3 559        4 299   
  Total comprehensive income attributable to:                                                                             
  Owners of the Company                                                                 993          4 261        5 010   
  Non-controlling interest                                                               26            208          260   
                                                                                      1 019          4 469        5 270   
  Earnings per share (cents per share)                                                                                    
  Basic                                                                                 134            575          690   
  Diluted                                                                               134            575          689   
  For headline earnings per share and dividend per share refer note 11 and 12.                                                                                                                                  
  The notes are an integral part of this condensed interim financial information.    

  Consolidated statement of changes in equity
                                                       Number                               Share                                                 Foreign                      Attributable to:                             
                                                    of shares                               based          Total                                 currency    Total other     Owners            Non              
                                                       issued     Ordinary      Share     payment          share    Retained    Fair value    translation     components     of the    controlling      Total   
  R million                                         (million)*      shares    premium     reserve        capital    earnings       reserve        reserve      of equity    Company       interest     equity   
  Balance at 30 June 2012                              606.57           16     13 099       2 072         15 187      34 949           (12)            44             32     50 168          2 307     52 475   
  Shares issued                                                                                                                                                                                                 
   Implats Share Incentive Scheme                        0.16            -          9           -              9           -             -              -              -          9              -          9   
  Share-based compensation                                                                                                                                                                                      
   Long-term Incentive Plan                                 -            -          -           6              6           -             -              -              -          6              -          6   
  Total comprehensive income                                -            -          -           -              -         813             4            176            180        993             26      1 019   
  Transaction with non-controlling shareholders             -            -          -           -              -           -             -              -              -          -             23         23   
  Dividends (note 12)                                       -            -          -           -              -        (366)            -              -              -       (366)             -       (366)  
  Balance at 31 December 2012 (Reviewed)               606.73           16     13 108       2 078         15 202      35 396            (8)           220            212     50 810          2 356     53 166   
  Balance at 30 June 2011                              600.99           15     12 223       1 990         14 228      34 136            (9)          (792)          (801)    47 563          2 047     49 610   
  Shares issued                                                                                                                                                                                                 
   Implats Share Incentive Scheme                        0.08            -         5            -              5           -             -              -              -          5              -          5   
   Employee Share Ownership Programme                    5.37            1        855          83            939           -             -              -              -        939              -        939   
  Total comprehensive income                                -            -          -           -              -       3 482            (2)           781            779      4 261            208      4 469   
  Dividends (note 12)                                       -            -          -           -              -      (2 546)            -              -              -     (2 546)             -     (2 546)  
  Balance at 31 December 2011 (Reviewed)               606.44           16     13 083       2 073         15 172      35 072           (11)           (11)           (22)    50 222          2 255     52 477   
  Balance at 30 June 2011                              600.99           15     12 223       1 990         14 228      34 136            (9)          (792)          (801)    47 563          2 047     49 610   
  Shares issued                                                                                                                                                                                                 
   Implats Share Incentive Scheme                        0.13            -          8           -              8           -             -              -              -          8              -          8   
   Employee Share Ownership Programme                    5.45            1        868          82            951           -             -              -              -        951              -        951   
  Total comprehensive income                                -            -          -           -              -       4 177            (3)           836            833      5 010            260      5 270   
  Dividends (note 12)                                       -            -          -           -              -      (3 364)            -              -              -     (3 364)             -     (3 364)  
  Balance at 30 June 2012 (Audited)                    606.57           16     13 099       2 072         15 187      34 949           (12)            44             32     50 168          2 307     52 475   
  * The table above excludes the treasury shares, Morokotso Trust and the Implats Share Incentive Scheme as these special purpose entities are consolidated.                                                                                                                                                                                                                                                                                                                                    
  The notes are an integral part of this condensed interim financial information.    

  Consolidated statement of cash flows                                                                 
			                                             Six months     Six months         Year   
                                                                          ended          ended        ended   
                                                                    31 December    31 December      30 June   
                                                                           2012           2011         2012   
  R million                                                           (Reviewed)     (Reviewed)    (Audited)  
  Cash flows from operating activities                                                                        
  Profit before tax                                                       1 693          5 126        6 250   
  Adjustments to profit before tax                                        2 373            437        1 499   
  Cash from changes in working capital                                     (278)        (1 307)      (1 133)  
  Exploration costs                                                         (20)           (32)         (63)  
  Finance cost                                                             (187)           (70)        (150)  
  Income tax paid                                                          (481)        (1 104)      (1 425)  
  Net cash from operating activities                                      3 100          3 050        4 978   
  Cash flows from investing activities                                                                        
  Purchase of property, plant and equipment                              (3 213)        (3 479)      (7 284)  
  Proceeds from sale of property, plant and equipment                        58              7           52   
  Purchase of investment in associate                                         -              -           (5)  
  Payment received from associate on shareholders loan                       -             23           22   
  Loans granted                                                              (6)           (15)        (120)   
  Loan repayments received                                                  180            476          509   
  Prepayment made                                                             -              -         (233)  
  Prepayments refunded                                                       47              -           11   
  Finance income                                                             98            110          281   
  Dividends received                                                          5              4            9   
  Net cash used in investing activities                                  (2 831)        (2 874)      (6 758)  
  Cash flows from financing activities                                                                        
  Issue of ordinary shares                                                    9            861          877   
  Lease liability repaid                                                    (65)           (12)         (44)  
  Repayments of borrowings                                                  (34)          (172)        (197)  
  Proceeds from borrowings                                                    -            374          464   
  Dividends paid to Companys shareholders                                 (366)        (2 546)      (3 364)  
  Net cash used in financing activities                                    (456)        (1 495)      (2 264)  
  Net decrease in cash and cash equivalents                                (187)        (1 319)      (4 044)  
  Cash and cash equivalents at beginning of year                            587          4 542        4 542   
  Effect of exchange rate changes on cash and cash equivalents
  held in foreign currencies                                                  8            111           89   
  Cash and cash equivalents at end of period*                               408          3 334          587   
  *Net of bank overdraft.
  The notes are an integral part of this condensed interim financial information.                                                  
                                                                                                                


  Segment information
  The Group distinguishes its segments between mining operations, refining services (which include metals purchased 
  and toll refined) and other.                                                                               
  Management has determined the operating segments based on the business activities and management structure within 
  the Group. Operating segments have consistently adopted the consolidated basis of accounting and there are no differences 
  in measurement applied.                                                                               
  Capital expenditure comprises additions to property, plant and equipment (note 5), including additions resulting from 
  acquisitions through business combinations.                                                                               
  Sales to the two largest customers in the Impala mining segment comprised 11% and 11% (December 2011: 10% and 10%) 
  (June 2012: 10% and 12%) of total sales.                                                                               
  The statement of comprehensive income shows the movement from gross profit to total profit before income tax.                                                                               
  Summary of business segments:                                                                               
                                  Six months ended          Six months ended           Year ended              
                                  31 December 2012          31 December 2011          30 June 2012             
                                    (Reviewed)                (Reviewed)                (Audited)              
                                              Gross                    Gross                    Gross   
  R million                       Revenue    profit        Revenue    profit        Revenue    profit   
  Mining                                                                                                
   Impala                          14 657     1 538         15 131     3 139         27 029     3 289   
    Mining                          7 540     1 389          7 904     3 136         13 009     3 284   
    Metals purchased                7 117       149          7 227         3         14 020         5   
   Zimplats                         1 495       448          1 746       826          3 665     1 784   
   Marula                             692      (130)           600        (2)         1 197       (80)  
   Mimosa                             592       126            597       275          1 201       518   
   Afplats*                             -         -              -         -              -        (1)  
   Other                               53        13              -         -              -         -   
  Inter-segment adjustment         (2 653)      244         (2 809)      204         (5 796)      140   
  External parties                 14 836     2 239         15 265     4 442         27 296     5 650   
  Refining services                 7 314       403          7 365       398         14 069     1 372   
  Inter-segment adjustment         (6 989)      (41)        (7 218)      (34)       (13 772)      (70)  
  External parties                    325       362            147       364            297     1 302   
  Total external parties           15 161     2 601         15 412     4 806         27 593     6 952 
  
                                  Capital     Total        Capital     Total        Capital     Total   
  R million                   expenditure    assets    expenditure    assets    expenditure    assets   
  Mining                                                                                                
   Impala                           2 168    47 915          3 016    45 193          5 269    45 149   
   Zimplats                           808     9 350            904     7 549          2 137     8 394   
   Marula                              64     3 168            124     3 379            223     3 268   
   Mimosa                              62     1 981            120     1 934            248     1 979   
   Afplats*                           125     7 603            104     7 333            265     7 514   
  Total mining                      3 227    70 017          4 268    65 388          8 142    66 304   
  Refining service                      -     3 223              -     4 920              -     4 972   
  Other                                69     1 448              -     1 082              -     1 351   
  Total                             3 296    74 688          4 268    71 390          8 142    72 627   
  *Includes Imbasa and Inkosi.                                                                              


 Notes to the interim financial information


 1.     General information                                                                                                                              
        Impala Platinum Holdings Limited (Implats) is a primary 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 Johannesburg Stock Exchange.                                                                          
        The condensed consolidated interim financial information was approved for issue on 14 February 2013 by the Board of directors.                                               
 2.     Independent review by the auditors                                                                                                               
        The consolidated statement of financial position at 31 December 2012 and the related consolidated statement of comprehensive income, 
	statement of changes in equity and statement of cash flows for the six months then ended was reviewed by the Groups auditors, 
	PricewaterhouseCoopers Inc. The individual auditor assigned to perform the review is Mr. J-P van Staden. Their unqualified review 
	opinion is available for inspection at the Companys registered office.                                               
 3.     Basis of preparation                                                                                                                             
        The condensed consolidated interim financial information for the six months ended 31 December 2012 has been prepared in accordance with 
	IAS 34, Interim financial reporting, the AC 500 standards as issued by the Accounting Practices Board or its successor, requirements of 
	the South African Companies Act, 2008 and the Listings Requirements of the JSE Limited.                                               
        The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year 
	ended 30 June 2012, which have been prepared in accordance with IFRS.                                               
        The condensed consolidated interim financial information has been prepared under the historical cost convention except for certain financial 
	assets, financial liabilities and derivative financial instruments which are measured at fair value and liabilities for cash-settled share-based 
	payment arrangements which are measured with a binomial option model.                                               
        The condensed consolidated interim financial information is presented in South African rands, which is the Companys functional currency.                                               
 4      Accounting policies                                                                                                                              
        The principal accounting policies applied are in terms of IFRS and are consistent with those of the annual financial statements for the 
	year ended 30 June 2012. Various revised and new standards were adopted, the adoption of these standards had no impact on the financial 
	results of the Group.                                               
        Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.                                               
 5.     Property, plant and equipment.                                                                                                                                                                         
		                                                       Six months     Six months         Year   
                                                                            ended          ended        ended   
                                                                      31 December    31 December      30 June   
                                                                             2012           2011         2012   
         R million                                                      (Reviewed)     (Reviewed)    (Audited)  
         Opening net book amount                                           40 169         33 137       33 137   
         Additions                                                          3 270          4 255        8 104   
         Interest capitalised                                                  26             13           38   
         Disposals                                                            (24)          (557)        (579)  
         Depreciation (note 8)                                             (1 080)          (804)      (1 708)  
         Exchange adjustment on translation                                   299          1 070        1 177   
         Closing net book amount                                           42 660         37 114       40 169   
                                                                                                                                                
         Capital commitments                                                                                                                             
         Capital expenditure approved at 31 December 2012 amounted to R21.6 billion (December 2011: R25.6 billion) (June 2012: R23.2 billion), of 
	 which R3.2 billion (December 2011: R4.8 billion) (June 2012: R4.3 billion) is already committed. This expenditure will be funded internally 
	 and, if necessary, from borrowings.                                               
  6.     Loans                                                                                                                                           
                                                                        Six months     Six months         Year   
                                                                             ended          ended        ended   
                                                                       31 December    31 December      30 June   
                                                                              2012           2011         2012   
         R million                                                       (Reviewed)     (Reviewed)    (Audited)  
         Summary - Balances                                                                                      
         Employee housing                                                       42             37           39   
         Advances                                                              730          2 000        1 402   
         Reserve Bank of Zimbabwe (RBZ)                                        265            355          308   
         Contractors                                                             5              -           16   
                                                                             1 042          2 392        1 765   
         Short-term portion                                                   (192)           (71)        (538)  
         Long-term portion                                                     850          2 321        1 227   
         Summary - Movement                                                                                      
         Beginning of the year                                               1 765          2 469        2 469   
         Loans granted                                                           6             17          123   
         Present value adjustment                                               (1)            (9)           -   
         Interest accrued                                                       30             38           76   
         Impairment                                                           (603)           (67)        (378)  
         Repayment received                                                   (199)          (300)        (963)  
         Exchange adjustment                                                    44            244          438   
         End of the year                                                     1 042          2 392        1 765   
  7.     Borrowings                                                                                              
         Summary - Balances                                                                                      
         Standard Bank Limited - BEE Partners Marula                           878            882          882   
         Standard Bank Limited - Loan 1 Zimplats expansion                       -             20            -   
         Standard Bank Limited - Loan 2 Zimplats expansion                     660            404          637   
         Stanbic & Standard Chartered                                           35              -           63   
         Finance leases                                                      1 397          1 395        1 421   
                                                                             2 970          2 701        3 003   
         Short-term portion                                                    (87)           (77)        (121)   
         Long-term portion                                                   2 883          2 624        2 882   
         Summary - Movement                                                                                      
         Beginning of the period                                             3 003          1 842        1 842   
         Proceeds                                                                -            182          464   
         Leases capitalised                                                    (20)           769          769   
         Interest accrued                                                      132             18          210   
         Repayments                                                           (171)          (184)        (372)   
         Exchange adjustments                                                   26             74           90   
         End of the period                                                   2 970          2 701        3 003                                                                                                                                          
  8.     Cost of sales                                                                                                                                   
         Included in cost of sales:                                                                              
         On-mine operations                                                  6 239          5 199       10 213   
          Wages and salaries                                                 3 574          2 836        5 811   
          Materials and consumables                                          2 241          1 987        3 697   
          Utilities                                                            424            376          705   
         Concentrating and smelting operations                               1 614          1 474        2 777   
          Wages and salaries                                                   296            278          561   
          Materials and comsumables                                            835            698        1 375   
          Utilities                                                            483            498          841   
         Refining operations                                                   486            442          883   
          Wages and salaries                                                   211            192          390   
          Materials and comsumables                                            216            198          392   
          Utilities                                                             59             52          101   
         Other costs/(income)                                                  781            213          361   
          Corporate costs                                                      179            187          415   
          Selling and promotional expenses                                     153            156          319   
          Share-based compensation                                             449           (130)        (373)  
         Chrome operation                                                       39              -            -   
         Depreciation of operating assets (note 5)                           1 080            804        1 708   
         Metals purchased                                                    3 031          3 438        6 855   
         Change in metal inventories                                          (710)          (621)      (1 460)  
                                                                            12 560         10 949       21 337   
         The following disclosure items are included 
	 in cost of sales:                                           
         Repairs and maintenance expenditure on property, 
	 plant and equipment                                                   677            550        1 119   
         Operating lease rentals                                                23             27           49                                                                       
  9.     Other operating expenses/(income)                                                                       
         Profit on disposal of property, plant and equipment                   (51)           (13)         (40)  
         Rehabilitation provision - change in estimate                          14              2           (1)  
         Impairment                                                            603             66          378   
         Trade payables - commodity price adjustment                            48           (473)        (511)  
         Community development expense                                          37              -           63   
         Other                                                                   4              -            -   
                                                                               655           (418)        (111)  
  10.    Other expenses/(income)                                                                                 
         Exploration expenditure                                                20             32           63   
         Guarantee fees                                                        (17)             -          (19)  
         Other                                                                  87            (22)          55   
                                                                                90             10           99   
  11.    Headline earnings                                                                                       
         Headline earnings attributable to equity 
	 holders of the Company arises from operations 
	 as follows:                                             
         Profit attributable to owners of the Company                          813          3 482        4 180   
         Adjustments:                                                                                            
         Profit on disposal of property, plant and equipment                   (51)          (13)         (40)   
         Total tax effects of adjustments                                       14              4           11   
         Headline earnings                                                     776          3 473        4 151   
         Weighted average number of ordinary shares in issue 
	 for basic earnings per share                                       606.64         605.89       606.21   
         Weighted average number of ordinary shares for 
	 diluted earnings per share                                         607.05         606.03       606.34   
         Headline earnings per share (cents)                                                                     
         Basic                                                                 128            573          685   
         Diluted                                                               128            573          685   
  12.    Dividends                                                                                                                                       
         On 14 February 2013, a sub-committee of the Board declared an interim cash dividend of 35 cents per share amounting to 
	 R212 million for distribution in financial year 2013 in respect of financial year 2013. The dividend will be subject to a 
	 local dividend tax rate of 15% which will result in a net dividend, to those shareholders who are not exempt from paying 
	 dividend tax, of 29.75 cents per share.                                               
                                                                        Six months     Six months         Year   
                                                                             ended          ended        ended   
                                                                       31 December    31 December      30 June   
                                                                              2012           2011         2012   
         R million                                                       (Reviewed)     (Reviewed)    (Audited)  
         Dividends paid                                                                                          
         Final dividend No. 89 for 2012 of 60 
	 (2011: 420) cents per share                                           366          2 546        2 546   
         Interim dividend No. 88 for 2012 of 
	 135 cents per share                                                                               818   
                                                                               366          2 546        3 364                                                                                                                                                          
 13.    Contingent liabilities and guarantees                                                                                                            
        The Group has a contingent liability of US$34 million for Additional Profits Tax (APT) raised by ZIMRA (Zimbabwe Revenue Authority) 
	consisting of an additional assessment of US$27 million in respect of the tax period 2007 to 2009 and a current APT amount of US$7 million 
	based on the assumption that this amount would be payable should the Zimplats appeal against the ZIMRA interpretation of the APT provisions 
	fail in the Special Court of Tax Appeals. Management, supported by the opinions of its tax advisors, strongly disagrees with the ZIMRA 
	interpretation of the provisions.                                               
        As at the end of December 2012 the Group had bank and other guarantees of R854 million (June 2012: R750 million) from which it is anticipated 
	that no material liabilities will arise.                                               
 14.    Related party transactions                                                                                                                       
        - The Group entered into PGM purchase transactions of R1 407 million (December 2011: R1 149 million)                                                
        (June 2012: R2 469 million) with Two Rivers Platinum, an associate company, resulting in an amount payable of R720 million (December 2011: R605 million) 
	(June 2012: R607 million). It also received refining fees and interest to the value of R13 million (December 2011: R10 million) (June 2012: R22 million). 
	After capital repayment received during the period the shareholders loan amounted to R48 million (December 2011: R48 million) (June 2012: 49 million). 
	These transactions are entered into on an arms length basis at prevailing market rates.                                               
        - The Group entered into a sale and leaseback transaction with Friedshelf, an associate company. At the end of the period an amount of R1 212 million 
	(December 2011: R1 163 million) (June 2012: R1 202 million) was outstanding in terms of the lease liability. During the period interest of R61 million 
	(December 2011: R21 million) (June 2012: R80 million) was charged and a R52 milion (December 2011: R Nil) (June 2012: R20 million) repayment was made. 
	The lease has an effective interest rate of 10.1% and 10.8%.                                               
        - The Group entered into PGM purchase transactions of R932 million (December 2011: R926 million) (June 2012: R1 866 million) with Mimosa Investments, 
	a joint venture, resulting in an amount payable of R271 million (December 2011: R112 million) (June 2012: R172 million). It also received refining fees 
	to the value of R77 million (December 2011: R63 million) (June 2012: R134 million). These transactions are entered into on an arms length basis at 
	prevailing market rates                                               
        Key management compensation:                                                                             
                                                                        Six months     Six months         Year   
                                                                             ended          ended        ended   
                                                                       31 December    31 December      30 June   
                                                                              2012           2011         2012   
        R000                                                            (Reviewed)     (Reviewed)    (Audited)  
        Non-executive directors remuneration                                 3 475          3 642        7 435   
        Executive directors remuneration (fixed and variable)                9 325         16 448       25 532   
        Prescribed officers                                                 11 572          8 509       13 947   
        Senior executives and Group Secretary                               13 329         15 206       24 325   
        Total                                                               37 701         43 805       71 239   
                                                                                                                                                         
                                                                                                                                                         
                                                                        Six months     Six months         Year   
                                                                             ended          ended        ended   
                                                                       31 December    31 December      30 June   
                                                                              2012           2011         2012   
         R million                                                       (Reviewed)     (Reviewed)    (Audited)  
  15.    Financial instruments                                                                                   
         Financial assets - carrying amount                                                                      
         Loans and receivables                                               5 594          9 084        6 218   
         Financial instruments at fair value through 
	 profit and loss1                                                        1             17           24   
         Held-to-maturity financial assets                                      51             64           49   
         Available-for-sale financial assets1                                   36             15           32   
                                                                             5 682          9 180        6 323   
         Financial liabilities - carrying amount                                                                 
         Financial liabilities at amortised cost                             7 720          7 034        7 777   
         Financial instruments at fair value 
	 through profit and loss1                                                1             17           24   
                                                                             7 721          7 051        7 801   
         The carrying amounts of financial assets and financial liabilities approximate their fair values.                                               
         1Level 1 of the fair value hierarchy - Quoted prices in active markets for the same instrument.                                                 
 16.     Zimbabwe Indigenisation Transactions                                                                                                             
         On 14 December 2012 Implats announced that its 50% held joint venture Mimosa Investment Holdings (Mimosa Investments) had concluded a non-binding 
	 term sheet in respect of a proposed indigenisation implementation plan (IIP) with the Government of Zimbabwe (as represented by the Ministry of 
	 Youth Development, Indigenisation and Empowerment). On 11 January 2013 Implats further announced that its 87% held subsidiary, Zimplats Holdings Ltd. 
	 (Zimplats Holdings), had similarly concluded a non-binding term sheet in respect of a proposed IIP. The respective term sheets referred to above 
	 stipulate the key terms, subject to certain conditions precedent, for the sale by Mimosa Investments and Zimplats Holdings of an aggregate 51% equity 
	 ownership of Mimosa Holdings (Private) Limited and Zimbabwe Platinum Mines (Private) Ltd. respectively to select indigenous entities. At the date of this 
	 interim report the definitive transaction agreements have not yet been negotiated and concluded. This will critically affect the accounting treatment of 
	 these transactions. The effective date of these transactions will be the date on which the conditions precedent are fulfilled.                                               

		
 Operating statistics                                         
                                                              
                                                              
                                                                          Six months     Six months       Year   
                                                                               ended          ended      ended   
                                                                         31 December    31 December    30 June   
                                                                                2012           2011       2012   
  Gross refined production                                                                                       
  Platinum                                                     (000oz)           865            846      1 448   
  Palladium                                                    (000oz)           575            529        950   
  Rhodium                                                      (000oz)           115            118        210   
  Nickel                                                        (000t)           7.7            7.8       15.4   
  IRS metal returned (toll refined)                                                                              
  Platinum                                                     (000oz)           173             57        121   
  Palladium                                                    (000oz)           162             74        148   
  Rhodium                                                      (000oz)            30             12         25   
  Nickel                                                        (000t)           1.6            1.6        3.1   
  Sales volumes                                                                                                  
  Platinum                                                     (000oz)           733            766      1 368   
  Palladium                                                    (000oz)           422            431        765   
  Rhodium                                                      (000oz)            92             97        183   
  Nickel                                                        (000t)           7.1            6.3       13.9   
  Prices achieved                                                                                                
  Platinum                                                      ($/oz)         1 541          1 673      1 614   
  Palladium                                                     ($/oz)           623            709        687   
  Rhodium                                                       ($/oz)         1 144          1 784      1 601   
  Nickel                                                         ($/t)        16 361         20 426     19 513   
  Consolidated statistics                                                                                        
  Average rate achieved                                          (R/$)          8.48           7.55       7.71   
  Closing rate for the period                                    (R/$)          8.46           8.09       8.17   
  Revenue per platinum ounce sold                               ($/oz)         2 399          2 650      2 601   
                                                                (R/oz)        20 344         20 008     20 054   
  Tonnes milled ex-mine                                         (000t)         9 779         10 396     17 788   
  PGM refined production                                       (000oz)         1 767          1 715      3 016   
  Capital expenditure                                             (Rm)         3 296          4 268      8 142   
                                                                                                                 
  Group unit cost per platinum ounce                            ($/oz)         1 887          1 490      1 738   
                                                                (R/oz)        15 983         11 283     13 450   
  Additional statistical information is available on the Companys internet website                                                       

Registered Office
2 Fricker Road, Illovo, 2196
(Private Bag X18, Northlands 2116)

Transfer Secretaries
South Africa: Computershare Investor Services (Pty) Ltd
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
United Kingdom: Computershare Investor Services plc
The Pavilions, Bridgwater Road, Bristol, BS13 8AE

Sponsor
Deutsche Securities SA (Pty) Limited

Directors
KDK Mokhele (Chairman), TP Goodlace (Chief Executive Officer), B Berlin (Chief Financial Officer), HC Cameron, 
PA Dunne, MSV Gantsho, AS Macfarlane*, AA Maule, TV Mokgatlha, B Ngonyama, NDB Orleyn, OM Pooe.
*British
Note: Mr AS Macfarlane was appointed with effect from 1 December 2012.
Date: 14/02/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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