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IMPALA PLATINUM HOLDINGS LIMITED - Trading statement for the year ended 30 June 2019

Release Date: 15/08/2019 10:00
Code(s): IMP IMCB22     PDF:  
 
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Trading statement for the year ended 30 June 2019

IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE share code: IMP
ISIN: ZAE000083648
ADR code: IMPUY
JSE Convertible Bond Stock Code: IMCB22
JSE Convertible Bond ISIN: ZAE000247458
(“IMPL CB22”)
(“Implats” or “the Group”)

TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2019

Implats will release results for the year ended 30 June 2019 (“the period”) on the Johannesburg Stock
Exchange News Service (“SENS”) on or about 5 September 2019.

Implats issued a trading statement on SENS on 8 July 2019 indicating that it was expecting to report both
positive basic and headline earnings per share for the period. At that time, there was insufficient certainty to
provide guidance ranges, as required by the JSE Listings Requirements. Implats now has reasonable certainty
on its earnings and therefore advises shareholders of the following:

Implats’ headline earnings and headline earnings per share (“HEPS”) for the period are expected to be
between R2 915 million and R3 160 million and between 406 cents and 440 cents per share, respectively.
The headline loss and headline loss per share for the year ended 30 June 2018 (“comparative period”) were
R1 228 million and 171 cents per share, respectively.

Expected earnings increased due to:
   • a higher realised rand PGM basket price, due to a weaker rand and stronger dollar pricing for
     rhodium and palladium, partially offset by a weaker dollar platinum price;
   • improved operational performance, particularly at the Impala Rustenburg operations; and
   • higher sales volumes which have increased by 12% to 1 515koz platinum and by 21% to 929koz
     palladium compared to the comparative period.

As a result, gross profit for the period is expected to increase from R1.1 billion in the comparative period to
R6.8 billion in the current period. The gross profit for the comparative period was restated from R1.6 billion
to R1.1 billion, a reduction of R440 million, due to a reclassification of certain expenses to cost of sales.

The increase in earnings was partially offset by a non-cash expense of R1 560 million, or 217 cents per share
(no tax impact), relating to the mark to market of the conversion option on the US$ convertible bonds at year
end. The valuation of the conversion option was impacted by the significant increase in the Implats share
price, which exceeded the conversion price of the US$ convertible bonds. As announced on 24 July 2019,
99.9% of the US$ convertible bondholders elected to exercise their option to convert their bonds to Implats
ordinary shares following the payment of a cash consideration of $37.6 million (R524 million). As a result,
64.2 million Implats ordinary shares were issued on 1 August 2019.

Basic earnings and basic earnings per share (“EPS”) for the period are expected to be between R1 300 million
and R1 650 million and between 181 cents and 230 cents per share, respectively. This includes the adverse
impact of R1 656 million, or 230 cents per share (post-tax), relating to the impairment of the remaining
carrying value of the Group’s investment in Afplats.

The basic loss and a basic loss per share for the comparative period were R10 679 million and 1 486 cents,
respectively. This loss was impacted by impairments of R9 699 million, or 1 350 cents per share (post-tax).
Impairments are non-cash and have been excluded from headline earnings.
The financial information on which this trading statement is based has not been reviewed and reported on
by the external auditors of Implats.

Queries:
Johan Theron
E-mail: johan.theron@implats.co.za
T: +27 (0) 11 731 9013/43
M: +27 (0) 82 809 0166


Emma Townshend
E-mail : emma.townshend@implats.co.za
T : +27 (0) 21 794 8345
M : +27 (0) 82 415 3770

Alice Lourens
E-mail: alice.lourens@implats.co.za
T: +27 (0) 11 731 9033/43
M: +27 (0) 82 498 3608

15 August 2019
Johannesburg

Sponsor to Implats
Nedbank Corporate and Investment Banking

Date: 15/08/2019 10:00:00
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