The Implats strategic journey seeks to create value for all our stakeholders and is firmly underpinned by our values – to respect, care and deliver.

Downloads for the Respect section




“Implats is committed to conducting its business in an ethical and fair manner to promote a corporate culture that is non-sectarian, apolitical and which is socially and environmentally responsible.”

The Implats code of ethics (the code) has been approved by the Group’s board of directors (the board) and senior management and is binding on every employee, officer, director, contractor and supplier and on all officers and directors of any entity owned or controlled by Implats.

The board gives effect to the code by subscribing to the following values and principles: Implats is committed to minimising adverse impacts on the environment, health and safety and subscribes voluntarily to the most stringent legal prescriptions. No discrimination on any individual or group will be allowed on any arbitrary basis and all employees have the right of freedom of association and fair treatment.

For all employment-based decisions, the only legitimate criteria are an individual’s performance, capability and potential subject to the requirements.

Employees, suppliers and contractors are required to ensure the highest possible standards of environmental control and adhere to the best contemporary practice to ensure a safe work environment for all employees.


  • Any member of the board
  • The chairman of the NGE committee
  • Any member of Exco
  • Senior employees of Implats
  • All other employees of Implats


  • Set direction for ethics in organisation
  • Approve codes of conduct, ethics policies and ensure inclusion of all stakeholders and key ethical risks
  • Delegate implementation of code and assume ongoing oversight management
  • Discuss management of ethics, monitoring and focus areas and ethical outcomes


  • Fairness and integrity in all business dealings
  • Respect for human rights and dignity of all people
  • Care for health and safety of all stakeholders
  • Embracing diversity
  • Honesty, transparency and accountability
  • Adherence to sound standards of corporate governance and all applicable laws

Vision, mission and values


"The primary purpose of an integrated report is to explain to providers of financial capital how an organisation creates VALUE over time. An integrated report benefits all stakeholders interested in an organisation's ability to create value over time, including employees, customers, suppliers, business partners, local communities, legislators, regulators and policy-makers." – The International <IR> Framework.

The CAPITALS are stocks of VALUE that are increased, decreased or transformed through the activities and outputs of the organisation

Consistent with Implats' reporting boundary to report only on material items affecting value, the capitals and their impact on the Group and the Group's impact on the capitals have been discussed in the following sections:

Corporate governance effecting value
  • Trade-offs per decision by the governing body
Stakeholder material matters and their effect on capitals
  • The impact of stakeholder matters on strategy, risk and the impact on capitals per stakeholder matter
  • Annual financial statements – mainly cost side of the income statement
  • Cash flow opening balances
  • Board inputs in sections "Achieving our mandate" and "Guidance and deliberations"
  • Stakeholders in section "Allocation of resources"
  • Business plan (resource allocation) including natural capital
  • Business model, strategy and KPIs
  • Revenue – mainly income in the income statement
  • Cash generated during the year
  • Stakeholder matters in section "Performance affecting relationships"
  • Operational performance and relationship quality outcomes

Value created (net increase/decrease in capitals)

The increase or decrease in value in financial margins as reported in the financial information provided and movements in cash flow and reserves

The quality of stakeholder relationships per capital

The success of our strategies

Investor returns and the value of the share price


  • Catalytic converters reducing vehicle emissions
  • Jewellery
  • Water purification
  • Glass manufacturing
  • Cancer drugs manufacturing
  • Fertiliser manufacture


Our strategic objectives are defined as the deliberate goals established to achieve our vision and mission, underpinned by our values, while our strategies define how the Company will achieve these strategic objectives.


Chairman's statement on corporate governance

The Implats board recognises that to ensure Implats remains successful over time and creates sustainable value for all stakeholders, it must also create value for society. Our ESG framework aligns the interests of all our stakeholders behind our ability to unlock the power of PGMs to improve the quality of life for everyone, today and for generations to come.

Good governance can only exist in an accountable environment, where there is a clear definition of roles and responsibilities, forums allow frank debate and performance is carefully reviewed. Over the next few pages we outline our progress and describe our governance efforts.

The Implats board is committed to providing effective and ethical leadership to the Group, maintaining the highest standards of good governance to promote quality decision making and executing decisions within a disciplined framework of policies, procedures and authorities. The board is guided by the principles of the King IV Code on Corporate Governance (King IV), the Companies Act, 2008, the JSE Listings Requirements and all other applicable laws, standards and codes. A compliance schedule can be found at

The Implats board works continuously to maintain and develop its governance framework. This ensures good decisions are made and executed, which further the interest of Implats and its diverse stakeholder universe. Independent judgement is exercised on all issues reserved for our review and approval. The board takes full responsibility for the management, direction and performance of the Group.

Dr Mandla SV Gantsho

The Implats strategic journey seeks to create value for all our stakeholders and is firmly underpinned by our values – to respect, care and deliver.

Downloads for the Care section



Stakeholder engagement


Stakeholders are defined as those people or groups who are interested and affected by our business, as well as those who have a material influence on our ability to create value. Our operations are different, therefore applicable stakeholder information has additionally been provided in the relevant operational reviews.

For further insight into the interrelation between our capitals and the value created for stakeholders, refer to our stakeholder outcomes per capital section.

Implats' board-approved stakeholder engagement strategy was developed with particular cognisance of King IV, and the overarching AA1000 Assurance Standard principles of materiality, completeness and responsiveness.

Our inclusive stakeholder review process is depicted as follows:

  • Identifying all stakeholders
  • Mapping each stakeholder against a designated champion or responsible executive
  • Prioritising stakeholders according to our impacts on them and the nature of the relationship
  • Defining the method of engagement and identifying potential opportunities to grow and sustain the relationship
  • Determining their level of influence on the business
  • Establishing a tool for monitoring and evaluating relations to take proactive measures for improvement where necessary

The priority level (zoning) of our stakeholder groups is based on the level of influence these stakeholders have on the business, the assessed effectiveness of existing engagement processes, and the level of alignment/change required in the relationship to meet our value-creation goals. Consistent with recent years, we currently have six priority stakeholder groups that require high-level ongoing care and responsiveness to sustain mutually beneficial relations, and whose material matters are expounded on, in this report.


  • Employees
    HR executive
    Operations executive

  • Unions
    HR executive
    Operations executive

  • Communities
    Corporate relations executive
    Operations executive

  • Local government
    Operations executive

    Provincial government
    Corporate relations executive
    Operations executive

    National government
    CEO (assisted by Exco)
    Chairman of the Implats and Zimplats boards

  • Shareholders/debt holders
    CEO (assisted by corporate relations and the CFO) Chairman of the board

  • Customers
    Marketing executive


  • Media
    Corporate relations executive

  • Suppliers

  • Business partners
    CFO (assisted by Exco)

  • Industry forums
    CEO (assisted by Exco)

  • Financial institutions

  • Business and financial analysts
    Corporate relations executive

  • Board
    CEO (assisted by the Company secretary)


  • Competitors
    CEO (assisted by Exco)

  • Emergency services
    HSE executives

  • Civil society
    Corporate relations executive

  • NGOs
    Corporate relations executive

  • Universities and R&D institutions
    Technical services executive

Each stakeholder is allocated an executive or champion responsible for managing the relationship with the organisation as outlined below:

  • 1 Quarterly stakeholder engagement meetings of operational executives and Group champions
  • 2 Identify and discuss material issues
  • 3 Allocate management responsibility of key stakeholder issues
  • 4 Identify potential risks and opportunities
  • 5 Develop appropriate actions and responses

The identified material matters and the associated responsibility, risks, as well as consequent actions and responses, are captured in the risk management system to ensure continuous management. The accessible nature of the system enables effective oversight by the executive team.


Caring for the environment

In the transition to a low-carbon economy, PGMs are critical to enable associated technologies. In delivering these products, we are committed to mitigating our environmental impacts.

Ngezi concentrator plant, Zimplats

Our stakeholders are increasingly interested in the impacts and contribution of our materials and the products manufactured from them. Linked to the circular economy aimed at reducing global resource use, there is an increasing role for PGM recycling to materially impact markets. The benefits of PGM mining for the environment and society were illustrated in the lifecycle assessment (LCA) on the impacts and benefits of PGMs completed in 2014 by the International Platinum Group Metals Association (IPA), to which Implats is affiliated.

This study was important in highlighting that the high recyclability of PGMs and their role in society significantly mitigate the environmental impacts of PGM primary production.

The PGMs are highly resistant to wear, tarnish, chemical attack and high temperature, and have outstanding catalytic and electrical properties. All these unique characteristics have made them indispensable in many industrial applications. By far the largest use of PGMs today is for automobile catalytic converters (autocatalysts), a pollution-control device fitted to cars, trucks, motorcycles and non-road engines. In this application, PGMs are coated onto a substrate housed in the exhaust system, where they act as catalysts to reduce levels of harmful emissions to legislated levels. PGMs enable car manufacturers to comply with emissions standards and help regulators to implement tightening emissions regulations.

The extraction and refining of PGMs is a capital-, energy- and labour-intensive process. PGMs are produced in low volumes and are used in small quantities. The high and repeatable recyclability of PGMs means that the environmental burden of PGM production decreases with each recycling round. Power consumption during mining and ore beneficiation has been identified as the major impact (72%) of the production of PGMs on the environment; a further 27% of the impact comes from smelting and refining. Only 1% of impacts are attributed to recycling. The low footprint of recycling compensates for the higher footprint of primary production.

The LCA illustrated that even though the impacts of PGM production appear to be high from a lifecycle perspective, these impacts are significantly mitigated by the in-use benefits, as indicated in the following findings:

  • Over 1.3 tonnes of toxic and harmful polluting gases, including CO, HC, NOx and PM, are reduced by the catalytic converter systems in one EURO 5 gasoline and one EURO 5 diesel vehicle in use over 160 000 km; these emissions are reduced by up to 97%.
  • Emissions of CO2 are slightly increased through the use of autocatalysts. This is due to the conversion of CO and HCs into CO2 during vehicle use; however, this increase is small (2% to 6%) when compared to CO emissions from the combustion of the fuel used to drive the vehicle.
  • The emissions reductions as a result of the use of an autocatalytic converter outweigh the emissions generated during the production of the catalyst, including the PGMs and other related materials used in the wash-coating process. (The wash coat is the carrier of catalytic materials on the catalyst’s surface.)

The findings of the LCA study have been valuable in assisting companies to make informed business decisions about process improvements, as well as new projects and design of new facilities. An update to the 2014 LCA study was initiated in 2019. The results of the study will be published in 2020.



  • Adherence to policy
  • ISO 14001 certification
  • Compliance with environmental authorisation and legislation
  • Environmental management systems


  • Reduce potable water consumption
  • Increase water recycling
  • Manage water quality


  • Climate change and energy management
    • Energy efficiency
    • Demand-side management
    • Alternative energy sources
  • Air quality management
    • SO2 abatement
    • Dust suppression
  • Waste management
  • Land management and biodiversity plan
  • Water conservation

Our approach

Our environmental mitigation activities focus on:

Our environmental policy commits the Group to running our exploration, mining, processing and refining operations in an environmentally responsible manner and to ensuring the wellbeing of our stakeholders. We integrate environmental management into all aspects of the business with the aim of achieving world-class environmental performance in a sustainable manner.

At board level, the HSER sub-committee oversees strategy implementation, assesses the adequacy and appropriateness of environmental policies, with executive management delivering on standards and procedures, and reviews Group-wide performance and risk management practices quarterly. The committee also has oversight of investigations into all major environmental incidents. We have a Group Executive: Safety, Health and Environment and have recently appointed a Group Executive: Sustainability to develop and implement environmental strategy.

Headgear at No 20 Shaft, Impala Rustenburg

Caring for our people

Covid-19: Safeguarding and supporting our workers and host communities

Covid-19 is a global health crisis. The infectious disease has become the prevalent health challenge facing our employees and their families and communities at all our operations.

In all the jurisdictions in which we operate, our leadership responded quickly and decisively in developing and implementing comprehensive response plans to safeguard and support employees and host communities. These included early education of employees and communities on Covid-19, the implementation of best practice governance documents, procedures and practices, developed in consultation with key stakeholders, provisions of large supplies of PPE, boosting the immunity of all employees and protecting vulnerable employees with comorbidities.

We are committed to maintaining best practice Covid-19 prevention and treatment regimes.

Compliant risk-based approach

A Group Covid-19 policy and extensive supporting operating procedures were developed to serve as a framework for mitigating and managing Covid-19. These tools were compiled in accordance with guidelines provided by the World Health Organization, the National Institute for Communicable Diseases, the Department of Health and the Minerals Council South Africa. Every operation developed and implemented a customised Codes of Practice and supporting operating procedures in line with the Group’s policy and in accordance with respective regulatory requirements and best practice guidelines.

Covid-19 command centres were established to ensure structured management and oversight. The operations conducted comprehensive Covid-19 risks assessments to identify high-risk work-environment areas and developed a risk staging model, with appropriate response strategies established for each stage of the pandemic.

Our robust health strategy has underpinned our leading response to managing Covid-19 at our operations.


Our operations rolled out programmes early in the pandemic and have maintained extensive Covid-19 awareness training and education measures.

Prevention and control measures

Covid-19 preventative measures implemented and stringently applied include: physical distancing protocols; hygiene measures at the workplace including sanitisation processes and disinfection; protocols for transportation of employees; travel restrictions; use of Covid-19 prescribed personal protection equipment (PPE) by all employees and medical staff; and Covid-19 screening and polymerase chain reaction (PCR) testing.

A key part of Implats' strategy has been to identify potentially vulnerable at-risk employees, such as those with diabetes, HIV or hypertension, and to provide additional precautionary measures to increase their protection.

Our at-risk employees are provided with vitamin and dietary supplements, flu vaccinations and critical medical screening. In addition, employees with an illness deemed to be well controlled, have been provided with pre-packaged supplies of chronic medication for a period of six months to ensure that these at-risk employees do not need to visit hospitals or clinics during the peak Covid-19 infection time. For employees who came into close contact with Covid-19 positive patients or for employees who became infected, suitable Company quarantine and isolation accommodation is availed for those who may not be able to self-isolate or self-quarantine at home.

In South Africa, mandatory quarantine and isolation protocols were implemented for employees returning from Covid-19 hot spots to minimise the risk of transmission to the workforce and host communities.

We have developed several innovative solutions, including different cycles of work and staggered shift systems to enable the best possible precautionary measures against the spread of Covid-19 among Implats' employees.

Our Covid-19 prevention strategies have also been rolled-out to host communities.

Medical staff resourcing

All medical staff completed training on Covid-19 procedures to ensure sustained compliance. Additional locum doctors and professional and assistant nursing staff were recruited early on in order to deal with the projected numbers of patients and to assist with monitoring and wellness. Covid-19 medical teams rotate to limit exposure for healthcare workers.

Screening, testing and tracing

All employees and contractors undergo daily Covid-19 screening, which involves submitting a questionnaire, skin temperature thermo-scanning and, if necessary, core temperature screening, before entering any work area.

Employees with risk indicators are transported to designated medical facilities for diagnosis and, if necessary, testing, quarantine and early hospitalisation.

Anyone testing positive is isolated and a thorough contact tracking and tracing process is actioned. We secured PCR testing capacity early on and are conducting and tracking diagnostic testing. Our Covid-19 testing rate has compared favourably with national and global average testing rates.

To address a deficit in host community medical response measures, we donated a significant portion of our supplies (more than 1 700 PCR laboratory tests) to the Department of Health to support their efforts to curb the spread of the disease.

Implats Covid-19-related statistics

(as at year-end)


Diagnostic testing


5 207 employees


Positive case


528 employees




238 employees


Active cases


420 employees




Four employees

Treatment and facilities

Our Covid-19 facilities provide excellent nursing and healthcare and were scaled up to ensure that we had sufficient numbers of beds to provide for our employees (including contractors) and their dependents. Employees in quarantine are fully provided for in terms of basic living requirements and medication.

Employee health and wellbeing

At Impala Rustenburg, isolation and quarantine wards at the Impala Hospital were prepared for both male and female patients, and dedicated Covid-19 examination rooms were allocated and appropriately equipped. We ensured adequate quarantine facilities and have steadily increased our hospital capacity in anticipation of an escalation towards a peak in cases in the coming first quarter of 2021.

We have over 75 fully equipped Covid-19 isolation hospital beds which can be increased to 236 if required and over 1 000 isolation and quarantine beds. Marula operations have 100 quarantine beds and 10 isolation hospital beds.

Zimplats established a fully equipped Covid-19 medical centre (including ventilators and oxygen supply), as well as quarantine facilities. Impala Canada increased its medical capacity with access to two doctors virtually and highly trained nursing staff on-site.

Supporting good mental health

Recognising the critical importance of supporting the mental health of our employees and dependents as well as our health workers, we continue to promote and facilitate access to professional support and have increased the capacity of our employee assistance programmes, which are extended to family members of Covid-19 patients, and people in isolation. We have also provided managers with additional coaching to build their capacity to manage the pressures that Covid-19 has brought, and to lead their subordinates.

Collaborative efforts and recognition

We have worked closely and collaboratively with government and unions in implementing Covid-19 mitigation measures. Government officials in South Africa and Zimbabwe have commended our operations for their proactive screening, testing and quarantine facilities.

Challenges and outlook

Covid-19 has emerged as the major health risk at our operations. We are committed to ensuring that all efforts are implemented to reduce infection rates. Asymptomatic Covid-19 cases and uncertainty around transmission of the coronavirus in communities present significant challenges in modelling and managing the disease scenarios. We have applied leading research (Actuarial Society of South Africa Model) assumptions and estimates to assess expected infections and medical requirements at our operations and we continue to evaluate the number of positive cases and the number of recoveries, so that we are able to respond effectively to the continually changing level and magnitude of the risk.

At our southern African operations, pulmonary tuberculosis (TB) and the associated human immunodeficiency virus (HIV) co-infection continue to be a material health concern. These two infections have been shown to increase the risk of complications developing from Covid-19. Our strong management here continues to assist us with mitigating the impact of Covid-19.

Limpopo premier Stanley Mathabatha praised Marula's adherence to Covid-19 protocols during his visit to the Marula Mine. The premier was quoted in a national newspaper: ''We are pleased on how the mine is operating and we trust that if they continue with such adherence we will then record no cases at the mine.''
Source: Daily Sun, 5 May 2020

Caring for the community

The sustainability of our mining activities depends ultimately on the wellbeing and prosperity of our mine communities. In seeking to build and maintain our social licence to operate, we invest in socio-economic development initiatives, drive our policy and legislative compliance requirements, and engage proactively with our communities, social partners and government representatives. At STR board sub-committee has oversight of the Group's activities relating to social and economic development.



Social interventions

  • Investing in community wellbeing and development
  • Inclusive procurement and enterprise and supplier development
  • Investing in our employees' accommodation and living conditions

Legal compliance

  • At a minimum, fully comply with government policy and legislative requirements in all the countries where we operate

Stakeholder engagement and responsiveness

  • Continuous review and mapping of key stakeholders
  • Reinforcement of engagement
    and communication structures and methods
  • Effective, proactive and consistent engagement with all key stakeholders

It is through our core activities - employing people, paying taxes and procuring from host communities and countries - that we make our most significant contribution to socio-economic development in the countries where we operate. The proceeds from mining also enable us to implement social interventions designed to alleviate some of the challenging socio-economic conditions in our host communities. We also support employee and community ownership in our Group. An employee share ownership trust (ESOT), introduced in 2016, holds 4% of the issued shares in Impala Platinum Limited in a trust on behalf of the employees of Impala.

Zimplats was a pioneer in Zimbabwe with the implementation of both its Mhondoro-Ngezi Community Share Ownership Trust (CSOT) and its ESOT. The Marula Community Trust (MCT) has a 9% shareholding in Marula that is held by Marula's six host communities.

Economic and social value added

In 2020, we created value for our various stakeholders in the form of:

Government taxes


South Africa


R2 710 million




US$173 million (R2 711 million)




C$49 million (R591 million)


Socio-economic developments


South Africa


R113 million




US$2.6 million (R40.7 million)




C$0.137 million (R1.7 million)

Procurement of goods and services


South Africa


R8 500 million




US$369 million (R5 782 million)




C$142 million (R1 713 million)




Implats Group


R14 863 million (managed operations)

Skills development


South Africa


R493 million




US$2.86 million (R44.8 million)




C$0.8 million (R9.7 million)

Improving housing and living conditions


South Africa


R175 million



Payment of dividends


R5.25 per share declared

The Implats strategic journey seeks to create value for all our stakeholders and is firmly underpinned by our values – to respect, care and deliver.

Downloads for the Deliver section



Group performance against target KPIs

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Generate superior value for all stakeholders through modern, safe, responsible, competitive and consistent operational delivery

KPI performance target for FY2020
  • Zero fatalities
  • LTIFR <5.0pmmhw
  • Improve efficiency and productivity >410t/total employee costed
  • 6E in concentrate production of between 3.00Moz
  • Cost per 6E ounce of between R12 500/oz
Actual performance for FY2020
  • Five fatalities
  • LTIFR 4.54pmmhw
  • Efficiency and productivity >396t/total employee costed
  • 6E in concentrate production 2.8Moz
  • Cost per 6E ounce (stock-adjusted) R13 345/oz
  • Delivered continued improvements in overall safety performance
    • 11% and 14% improvements in TIFR and LTIFR to 11.30 and 4.54pmmhw
    • Regretfully, five work-related fatalities at managed operations
  • A strong operational performance despite the impact of Covid-19 interruptions
    • 9% (290koz 6E) production disruption due to Covid-19
    • 115koz reduction in excess surface work-in-process metal inventory
    • 5% decline in mine-to-market 6E concentrate production to 2.5Moz
    • 8% reduction in refined 6E production to 2.8Moz
  • Unit costs increased 12% on a stock-adjusted basis to R13 345 per 6E ounce
    • Impacted by lower volumes, additional investment in development and changes in ore mix which impacted yield, compounded by the impact of inflationary pressures and a weaker rand
    • Operating costs exclude R1.3 billion abnormal production costs incurred during Covid-19 lockdown

Pursue value creation by sustaining and leveraging a strong and flexible balance sheet within a prudent capital allocation framework

KPI performance target for FY2020

Effective capital structure

  • Achieve internal net debt to EBITDA target
  • Appropriate liquidity to fund strategy
  • Operate within debt covenants

Effective capital allocation strategy

  • Capital of between <R4.2 billion – R4.5 billion
Actual performance for FY2020

Effective capital structure

  • Liquidity headroom of R16.1 billion
  • Net cash of R5.7 billion after funding R9.4 billion
    North American Palladium acquisition

Effective capital allocation strategy

  • Capital R4.5 billion
  • Consolidated capital expenditure increased 19% to R4.5 billion following inclusion of Impala Canada and the initiation of the TSF project at Marula
  • The operations delivered positive free cash flows, except IRS, where negative working capital movements resulted in a cash outflow of R116 million. Higher received pricing drove margin expansion across the Group
  • Net cash from operating activities improved to R17.1 billion, yielding R14.4 billion in free cash flow after capital expenditure. Implats ended the period with gross cash balances of R13.3 billion, a net cash position of R5.7 billion (excluding finance leases) and liquidity headroom of R16.1 billion
  • Reinstated dividend payments during the year

Leverage and enhance our diverse resource base by growing our operational exposure to shallow, mechanisable orebodies

Sustain and grow value by supporting present and future demand drivers, creating strong customer relationships and aligning production to evolving demand

KPI performance target for FY2020
  • Optimisation of portfolio
  • Deliver on Impala Rustenburg restructuring
  • Maximise market development and industry participation to increase demand
Actual performance for FY2020
  • Sustained improvement in operational delivery at Impala Rustenburg
  • Acquisition of North American Palladium
  • Extended furnace maintenance programme completed
  • Previously identified excess inventory released
  • Decision to retain 15% strategic interest in the Waterberg project
  • Commercial switching solution for gasoline auto catalysis announced in partnership with BASF
  • Robust and uninterrupted demand from customers despite Covid-19 pandemic
  • Sustained improvement in operational delivery at Impala Rustenburg allowed upward revisions to production plans at the mining complex and mitigated the need for largescale retrenchments
  • Restored profitability on the back of higher metal prices enabled the funding of the Impala Canada acquisition, a palladium dominant PGM producer
  • Completed an extended furnace maintenance programme and advanced studies and projects aimed at matching installed concentrating capacity with inherent mining efficiencies at Zimplats, Mimosa and Two Rivers
  • Retained a 15% strategic interest in the Waterberg project with beneficial rights to process future metal production
  • Continue to sustain efforts in market development and value chain optimisation

Place people at the centre of our organisation, and engender a shared culture founded on our values to respect, care and deliver

KPI performance target for FY2020
  • Increase leadership capacity and capability
  • Strengthen management reporting systems
  • Culture transformation
Actual performance for FY2020
  • Concluded a multi-year wage agreement
  • Sustained leadership capacity and capability
  • Sustained desired culture
  • Effective Covid-19 risk-based response
  • Maintained stable and constructive labour relations and partnerships with unions
    • Agreed a multi-year wage agreement without third party intervention
  • Embedding enhanced performance management system
  • Further strengthened leadership capacity through targeted appointments
  • Organisational culture enhanced and advanced by targeted programmes

Develop, protect and strengthen our licence to operate through industry leading ESG performance

KPI performance target for FY2020
  • Strengthen stakeholder management capability and capacity
  • Complete projects in accordance with SLP commitments
  • Maintain ISO 14001:2015 certification
  • No level 4 or 5 environmental incidents
  • Total water recycled >40%
Actual performance for FY2020
  • Implemented and delivered an integrated and effective Covid-19 response
  • R300 million spent on management and mitigation measures
  • Improvements in independent ESG performance ratings
  • Strengthened stakeholder management capability and capacity mitigating operational interruptions
  • Maintained ISO 14001:2015 certification
  • No level 4 or 5 environmental incidents
  • Total water recycled – 44%
  • Seek to employ leading environmental, social and governance practices
  • Took proactive steps to secure the health and well-being of employees against Covid-19
  • Achieved an A-rating (water) and a B-rating (climate) from the CDP
  • Included in the Vigeo Eiris Top 100 Best Performing Companies in Emerging Markets, the FTSE4Good and the FTSE/JSE Responsible Investment Top 30 indexes
  • New pulmonary TB cases reduced by 17% and the incidence of TB reduced to 293 per 100 000 population
  • Continue to prioritise the removal of latent high-noise machines
  • No level 4 or 5 environmental incidents achieved for the seventh consecutive year and a 35% reduction in level 3 incidents
  • Improved water supply to local host communities in Rustenburg
  • Developing a low carbon transition strategy
  • Integrity of tailings storage facilities confirmed by an independent assessment
  • The integration of mine closure planning into life-of-mine planning continues with a focus on concurrent rehabilitation

Chief executive’s review


Implats delivered a stellar performance during FY2020, under extraordinary circumstances. The first half of the year was defined by our successful conversion of the US$ bond, the acquisition of Impala Canada, the reinstatement of dividends, a multi-year wage settlement at our South African operations and operational turnarounds at Impala Rustenburg’s 12 and 14 shafts and life extension at 1 Shaft, thus avoiding their disposal or closure. The second half of the year was characterised by operational and safety preparedness in the face of the looming threat of Covid-19, followed by Covid-19-related disruptions as the pandemic took hold in our countries of operation.

Despite the headwinds, all operations showed organisational resilience and posted a credible performance. The pricing for Group primary products was robust and, together with rand depreciation, offset Covid-19-related production losses and drove substantial improvements in the Groups’ financial performance on the back of record sales revenues.

Our strategic transition into a high-value, profitable and competitive producer was meaningfully advanced during the year and Implats is now well positioned to continue delivering significant value to all our stakeholders.


Implats’ goal is to eliminate harm to the health and safety of our employees and contractors. Safety remains a key priority in achieving the Group’s vision of zero harm. Covid-19 required extensive revisions to operating practices, while additional care was taken to ensure the safe start-up of operations placed on care and maintenance due to lockdown regulations or Covid-19-related operational disruptions.

Our strategic transition into a high-value, profitable and competitive producer was meaningfully advanced during the year

The year saw further improvements in our safety performances. However, we tragically recorded five employee fatalities at managed operations and two at non-managed joint venture operations. The board of directors and management team extended their sincere sympathies to the families and friends of our seven colleagues. Rigorous independent investigations were conducted following each incident and the learnings shared Group-wide to improve controls and to prevent recurrences.

The Group achieved a 14% improvement in the lost-time injury frequency rate to 4.54 and an 11% improvement in the all injury frequency rate to 11.30 per million man-hours worked. Nine of the Group’s 17 operations achieved millionaire or multi-millionaire status in terms of fatality free shifts.

Our focus remains on further enhancements to our safety regimen to achieve our goal of zero harm.

Delivering to strategy

Implats’ strategic objectives were adapted during the year to reflect the enormous progress made in repositioning the Group as a competitive value producer. The refined focus is on an integrated operating model founded on:

The Group’s delivery against these objectives is commendable. We launched an integrated and effective Covid-19 response which secured lives and livelihoods and strengthened relationships with key stakeholders. Our commitment to responsible corporate stewardship resulted in an absence of serious environmental incidents and improvements in external ESG ratings.

Operational excellence at Impala Rustenburg saw production plans revised upwards at the mining complex, alleviating the need for the large-scale retrenchments envisaged in 2018. In addition, the complex task of rapidly placing our South African mining operations on care and maintenance during the country’s lockdown and their ramp-up thereafter was achieved safely and effectively.

Substantial progress was made on ensuring an optimal capital structure, which enabled significant debt reduction, the funding of the Impala Canada acquisition and the welcome reinstatement of dividend payments. The acquisition of Impala Canada strengthened our asset portfolio, which was further enhanced by life extensions at existing operations and the completion of an extended furnace maintenance programme.

We continue to invest in market development and value chain optimisation and announced an exciting commercial switching solution for gasoline auto catalysis through a project with BASF.

Operational review

Implats delivered a strengthened operational performance across the Group during the year. However, operating momentum was significantly disrupted by Covid-19, which began to manifest at the end of the third quarter and resulted in substantial production losses in the fourth. South African operations were constrained by the three-week national lockdown announced on 23 March 2020 and restrictive conditions imposed under the country’s National Disaster Management Act regulations thereafter. During the period, Implats was, however, able to substantially reduce previously identified excess surface work-in-process inventory.

The Covid-19 operating losses suffered at Impala and Marula were offset by strong delivery at Zimplats and the maiden contribution from Impala Canada. Concentrate production from mine-to-market operations, including the joint ventures at Two Rivers and Mimosa declined by 5% to 2.5 million 6E ounces (FY2019: 2.6 million ounces). Third-party 6E concentrate receipts declined by 9% to 327 000 ounces (FY2019: 361 000 ounces). In aggregate, total 6E concentrate production of 2.8 million ounces declined by 5% (FY2019: 3.0 million ounces).

Capital expenditure increased by 19% to R4.5 billion (FY2019: R3.8 billion) as a result of the inclusion of spend at Impala Canada (C$54 million or R657 million) and increased expenditure of R188 million at Marula, where spending accelerated on the tailings storage facility project. These increases were partially offset by lower spend at Impala due to the completion of the 20 Shaft project and reduced capital development caused by fewer available shifts due to Covid-19 disruptions.

Impala Rustenburg complex sustains its turnaround

The operational turnaround at Impala Rustenburg was sustained with continued investments in development to improve mineable face length. The mining complex saw lower grades, impacted by higher development-to-stoping ratios, additional dilution from rolling UG2 reef and continued orepass rehabilitation at 16 Shaft, which was completed during the year. Combined with better recoveries and Covid-19-related production losses, 6E concentrate production declined by 14% to 1.1 million ounces (FY2019: 1.3 million ounces).

All operating shafts generated positive contributions and Impala delivered R8.5 billion in free cash flow, a four-fold increase from the comparable period, as significantly stronger pricing offset the decrease in 6E sales volumes. Covid-19- related operational disruptions negatively impacted the progress of capital projects and resulted in a 12% decline in total capital expenditure to R1.8 billion.

Impala’s growth shafts – 16 and 20 – are focused on low-cost, long-life extensions that deliver defensive cash generation to entrench the Group’s competitive position and sustain profitability well into the future. Operational readiness at 16 Shaft was advanced by an 18% increase in immediately mineable stope face, but the impact of Covid-19 resulted in certain project delays, with ramp-up to full production of 330 000 ounces 6E expected in October 2022. 20 Shaft’s capital project scope of R7.9 billion was completed on schedule and within budget in March 2019. 20 Shaft showed a pleasing improvement in operational performance and flexibility, which is expected to support the planned production ramp-up to 227 000 ounces 6E, now expected in October 2022.

Impala Refining Services (IRS) a valuable contributor

IRS continues to contribute positively to the Group and reported a gross profit of R6.0 billion (FY2019: R3.4 billion) and contributed R4.3 billion to headline earnings (FY2019: R2.1 billion). The impact of negative working capital movements, however, resulted in a free cash outflow of R116 million during the year (FY2019: R3.4 billion free cash inflow), largely reflecting intra-group stock reallocations on the volume of 6E ounces refined and sold.

Marula stable and well positioned

Marula continued to deliver an improved operational performance, with production interruptions limited to those resulting from the Covid-19 pandemic. A peace agreement reached between community representatives enabled Marula and Makgomo Chrome to operate relatively unimpeded over the period and Marula delivered a step-change in safety with a 50% reduction in lost-time incidents and 44% reduction in reportable incidents.

The mining operation advanced development on its tailings storage facility, replaced the trackless mining fleet and progressed a bankable feasibility study on the extension of the Clapham decline shaft. Marula generated R2.2 billion in free cash flow (FY2019: R380 million) and contributed R1.1 billion in headline earnings (FY2019: headline loss of R77 million). The operation is well-positioned to capitalise on sustained operational continuity and efficiency gains.

Two Rivers begins production optimisation

ChairmTwo Rivers continued to face challenges associated with variable mineralogy and constrained processing capacity. The rising contribution of ore from split-reef areas has led to a reduction in run-of-mine ore grade and impacted metallurgical recoveries. Split-reef areas will be a structural characteristic of ore feed at Two Rivers for the foreseeable future and initiatives are well underway to optimise production in this paradigm by matching latent mining efficiencies with expanded concentrator plant and tailings storage facility capacity to restore ounce volumes from the mine. A 40 000 tonne per month plant expansion project was approved by the JV partners at an estimated cost of R427 million, with commissioning expected during the second half of FY2022.

The benefit of strong UG2 pricing bolstered Two Rivers’ financial performance with the operation generating R1.3 billion in free cash flow for the year (FY2019: R446 million). Implats recorded attributable profit from Two Rivers, after intercompany adjustments, of R687 million (FY2019: R251 million) and received R566 million in dividends during FY2020 (FY2019: R241 million).

Zimplats and Mimosa produce solid, consistent performances

Zimplats delivered yet another strong operational performance in FY2020, navigating the challenges created by increasing socio-economic pressures in Zimbabwe and successfully mitigating the substantial threat to its employees and operations posed by the Covid-19 pandemic. A furnace rebuild was completed in the first half of the year and the scheduled mill relines at the Selous concentrator were completed in the second half. Zimplats generated free cash flow of R2.5 billion.

Excellent progress was made during the year on Zimplats’ Mupani Mine project, the replacement for Ngwarati and Rukodzi mines. Decline development and overall project progress remain well ahead of schedule with estimated steady-state production expected in July 2024. A decision was taken to further accelerate the Mupani project to deliver incremental volume growth at Zimplats. A bankable feasibility study on a modular concentrator expansion is expected in the first half of FY2021.

At Mimosa, good progress was made on projects to increase milling capacity and the purchase of adjacent mineral reserves to extend the life-of-mine. After intercompany adjustments, Mimosa’s attributable share of profit in the Implats Group increased to R421 million (FY2019: R127 million) and Implats received R44 million in dividends from the operation (FY2019: R153 million).

Impala Canada posts maiden contribution

The acquisition of Impala Canada was concluded on 13 December 2019. Operational delivery for the period was severely impeded by a Covid-19 outbreak in the Lac des Iles mine camp, which led to a six-week closure, followed by limitations on travel and staffing due to the pandemic. The operation was also impacted by planned orepass rehabilitation and a workplace fatality in the final quarter.

Transitioning the mine to a high-value sustainable operation was advanced by completing the orepass rehabilitation, commissioning a mobile crusher to alleviate strain on the existing crusher system and initiating a review of processing infrastructure to address known constraints. Impala Canada generated free cash flow of R1.1 billion and, after accounting for R191 million of bridge financing costs, contributed R168 million to Group headline earnings.

Financial highlights

The substantial increase in received rand PGM basket prices offset the operational impact of Covid-19 and drove a stellar improvement in our financial performance. The pandemic, however, introduced significant uncertainty to the operating environment.

Higher dollar metal prices and a weaker rand drove revenue generation, which was 44% higher at R69.9 billion. The Group generated a gross profit of R23.3 billion, a 240% increase on the R6.8 billion achieved in FY2019. This saw record headline earnings of R16.1 billion and 2 075 cents per share with positive contributions from all Group companies.

The Implats board approved the declaration of a final dividend of R4.00 per ordinary share bringing the total dividend declared for FY2020 to R5.25 per ordinary share.

Net cash from operating activities benefited from the higher rand metal prices and resulted in free cash flow increasing to R14.4 billion (FY2019: R7.7 billion). Borrowings (excluding lease liabilities) increased to R7.6 billion (FY2019: R7.2 billion) due primarily to the outstanding balance of US$219 million (R3.7 billion) on the Impala Canada term loan, which offset the benefit of the reduction in debt due to the incentivised early conversion of US$ bond. At the end of FY2020, the Group’s liquidity headroom had increased to R16.1 billion (FY2019: R12.2 billion).

The optimisation of the Implats balance sheet and Group capital allocation were meaningfully advanced. The board approved a capital allocation framework, with specific policies regarding the approach to balance sheet and liquidity positioning, dividends, and the guiding principles for developing the business through investment in value-accretive growth opportunities. This framework aims to balance the need to strengthen the Group’s financial flexibility, with its strategic imperative to create value for all stakeholders while providing attractive returns to shareholders.

Market fundamentals remain solid

All three major PGM markets – platinum, palladium and rhodium – recorded fundamental deficits during calendar 2019. While surging automotive use drove fundamental industrial deficits in palladium and rhodium, robust physical investment absorbed the industrial and jewellery surplus in the platinum market.

The confluence of demand and supply interruptions is likely to result in moderated deficits in the palladium and rhodium markets in calendar 2020. In platinum, another year of strong investment inflow will likely compensate for weakened automotive and jewellery demand and substantially tighten the market.

Covid-19-related market shocks were considerable during the year. The disruption resulted in substantial adjustments to individual market components of forecast demand and supply in 2020 and 2021. Our view remains that the impact of the pandemic is likely to be cyclical rather than structural in the long term.

The global focus on decarbonisation has been intensified by Covid-19, with increasing momentum for the establishment of a hydrogen economy, which has accelerated the mainstreaming of hydrogen and the varied applications of fuel cells. This bodes well for increasing industrial demand for platinum and iridium in the hydrolyser and fuel cell segments and provides a structural hedge against the expected decline in diesel-derived automotive demand in the longer term.

Covid-19 compounds socio-economic distress

We remain deeply committed to delivering value to our host communities and advancing our social licence to operate. Covid-19 has compounded levels of inequality and unemployment in South Africa, while the ongoing economic crisis in Zimbabwe is taking its toll on the country’s citizens.

Sustainable community development and value-accretive relationships with mine host communities continue to be prioritised, with the Group doing what it can to ameliorate the impacts of socioeconomic distress.

Our most significant contributions to socio-economic development are through the core activities of employment, procurement from host communities and paying taxes. During the year, R113 million and R175 million was spent on community development initiatives and housing and living conditions, respectively, R5.4 million was invested in developing local enterprises and R2.7 billion (or 32% of discretionary spend) was spent with local-tiered suppliers with >25% black ownership.

Formal community engagement structures were established which have enabled significantly improved relations with host communities at our South African operations. There were no operational disruptions due to mine-related community unrest at any Group operation and our stakeholder relationships have strengthened through our comprehensive Covid-19 community response. Despite the difficult economic environment, Zimplats continues to enjoy cordial relations with its communities, while Impala Canada is working towards participation agreements with each of its host indigenous communities.

Our focus remains on growing and improving our relationships with our communities and the South African, Zimbabwean and Canadian governments.

Steadily improving sustainability metrics

Implats has made pleasing and steady progress on its aspiration to deliver superior value to all stakeholders through operational excellence in PGMs, while employing leading environmental, social and governance (ESG) practises. The Group’s core values – to respect, care and deliver – underpin health and safety goals, the management of operational impacts on the environment, responsible stewardship and progressive, sustainable development practices, while building value-accretive relations with host communities.

We are pleased our efforts have been recognised though a number of external ESG ratings received during the year, including our inclusion in the Bloomberg 2020 Gender- Equality Index (one of only eight South African companies), achieving an A-rating by the Carbon Disclosure Project (CDP) on water security risk and a B-rating for climate change action, and our inclusion in the Top 100 Best Performing companies in emerging markets by independent global ratings agency, Vigeo Eiris. We also remain a constituent of the FTSE4Good Index Series and a constituent of the FTSE/JSE Responsible Investment Top 30 Index.

We achieved our seventh consecutive year with no major or significant (level 4 and 5) environmental incidents and posted a 35% reduction in limited-impact (level 3) environmental incidents. All South African and Zimbabwean operations had their environmental management systems certified against ISO 14001:2015, with Impala Canada initiating its ISO 14001 process. The Group improved its water recycling rate is developing a low-carbon transition strategy to position Implats in the new energy value chain. The integrity of our tailings storage facilities was independently confirmed.

Among our employees, and despite Covid-19 disruptions, adherence to HIV and TB treatment remains exemplary at 95% and 100% respectively. The incidence of TB reduced during the year to a rate of 293 per 100 000, well below the estimated national average of 570 per 100 000, and HIV-related deaths reduced by 50% from the previous year.

Our Covid-19 risk prevention measures successfully flattened the curve in Covid-19 infections among employees at South African operations during the country’s infection peak and we threw our full weight into supporting our communities in the face of the global pandemic, donating R20 million to disaster relief in South Africa and committing millions more to various initiatives surrounding our operations in South Africa, Zimbabwe and Canada.


I am deeply gratified by the remarkable progress made in the strategic repositioning of Implats over the past several years, which enabled the Group to successfully navigate the unforeseen challenges created by the Covid-19 pandemic. Covid-19 will continue to be a feature of our operating context in the near term and we will continue to maintain vigilance in protecting the safety and health of our employees and supporting our communities where we can.

Our immediate operational focus is on the integration and optimisation of Impala Canada, ramping up production at our growth shafts at Impala Rustenburg, advancing processing projects to capitalise on mining efficiencies and improve flexibility at Zimplats, Mimosa and Two Rivers and completing the definitive feasibility studies to extend life-of-mine through existing infrastructure at Marula and Mimosa.

PGM miners are under increased pressure to meet challenging and sometimes conflicting stakeholder expectations, a task now complicated by the economic devastation and uncertainty associated with
Covid-19. We will continue to maintain open and constructive engagements with the governments in South Africa, Zimbabwe and Canada, and are committed to advancing positive and mutually beneficial relationships with our mine-host communities in all three countries.

Conclusion and appreciation

Our team has faced an extraordinary set of circumstances during the year, and they have done so with relentless grit, determination, creativity and industry leading excellence. Our production, processing, financial, corporate, market development and ESG achievements over the past year are a testament to this excellence in action. I extend my sincere gratitude to every member of the Implats Group. Together we have made great progress and I have no doubt that Implats has a long and sustainable future to look forward to, for the benefit of all our stakeholders.

I thank the Implats board for its solid guidance during the year and, particularly, outgoing Chairman, Dr Mandla Gantsho, for his critical and engaging leadership throughout many turbulent years for Implats and the PGM industry.

Implats is in a much stronger position than it was a year ago. It has a more diverse and competitive asset portfolio, a strong balance sheet and a motivated management team. The long-term fundamentals for PGM demand are sound and Implats remains at the forefront of PGM supply. I look forward to the developments of the new year.

Nico Muller



Our strategy


The strategy is influenced by the external macro-environment in which we operate, PGM markets, and the strategies of our key competitors.

Implats strategic focus has evolved to reflect the substantial progress and delivery against the imperatives and objectives identified in the 2018 strategic review and the refined focus is on an integrated operating model founded on responsible corporate citizenship, operational excellence in PGMs through value-driven, modern, safe and competitive production, organisational effectiveness, sustaining an optimal capital structure, leveraging the competitive portfolio of mineral and processing assets and supporting market development and value chain optimisation to unlock future potential.

External environment/strategic analyses
Competitor strategies



Responsible corporate stewardship
We develop, protect and strengthen our licence to operate through industry leading ESG performance
Operational excellence in PGMs
We generate superior value for all stakeholders through modern, safe, responsible, competitive and consistent operational delivery
Organisational effectiveness
We place people at the centre of our organisation, and engender a shared culture founded on our values to respect, care and deliver
Optimal capital structure
We pursue value creation by sustaining and leveraging a strong and flexible balance sheet within a prudent capital allocation framework
Competitive portfolio of mineral and processing assets
We seek to leverage and enhance our diverse resource base by growing our operational exposure to shallow, mechanisable orebodies
Market development and value chain optimisation
We sustain and grow value by supporting present and future demand drivers, creating strong customer relationships and aligning our production to evolving demand
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  • Eliminate fatal injuries
  • Improve LTIFR by 15% on three years average
  • Achieved 6E refined and saleable production of 2.8Moz to 3.4Moz 6E
  • Achieved efficiency and productivity >440t/employee costed
  • Achieve operating cost of R14 500 – R15 500/6E oz (stock-adjusted)
  • Effective capital structure
    • Target net debt to EBITDA of <1
    • Appropriate liquidity to fund Group strategy
    • Operate well within debt covenants
  • Effective capital allocation strategy
  • Ongoing optimisation of portfolio prioritising low cost, mechanised, Pd/Rh rich, cash-generative assets
  • Maximise market development and industry participation to increase demand
  • Manage labour availability to support full operational capacity
  • Strengthen management succession and build leadership capacity
  • Implement culture transformation
  • Implement HR digitisation strategy
  • Compliance with statutory requirements including Mining Charter and SLPs
  • Strengthen stakeholder engagement capability and capacity
  • Promote host community employment and procurement
  • Manage environmental impacts and develop a renewable energy and climate strategy

Implats Mineral Resource and Mineral Reserve statement 2020 at a glance

The report relates includes abridged Mineral Resource and Mineral Reserve information but the full statement is available at ( The report seeks to provide information about our natural capital which would impact the value of our company and our ability to add value to stakeholders. It reflects the benefit of an improved pricing outlook for the major PGMs and, both organic as well as acquisitive growth at the Group in the period under review. In December 2019, Implats completed the acquisition of Impala Canada and the statement reflects the inclusion of the Lac des Iles Mine in Canada at 100% and our 15% attributable share of the mineral resources of the Waterberg project.

Headline numbers

Attributable estimates* 2020** 2019 2018 2017 2016
Mineral Resources Moz Pt 132 132 134 192 194
Moz Pd 90 82 83 128 129
Moz 3E 234 228 228 337 342
Moz 4E 249 240 244 360 365
Moz 6E 277 268 273 403 407
Mt 1 819 1 710 1 741 2 787 2 741
Mineral Reserves Moz Pt 21.8 21.2 21.2 22.4 21.6
Moz Pd 17.3 14.7 14.4 14.1 13.1
Moz 3E 41.2 38.0 37.5 38.2 36.1
Moz 4E 43.6 40.3 40.0 41.0 38.9
Moz 6E 47.8 44.3 44.2 45.9 44.1
Mt 420 371 365 358 329
* Mineral Resources estimates are inclusive of Mineral Reserves.
** Total summation of 4E and 6E ounces for Lac des Iles Mineral Resource and Mineral Reserve estimates only includes the sum of platinum, palladium and gold and the summation of 6E ounces for the Waterberg project Mineral Resource estimates is the sum of platinum, palladium, rhodium and gold. This is a result of the inherent negligible rhodium, ruthenium and iridium content at Lac des Iles and available assay methodologies applied at those operations.

Summary Mineral Resources

The Group’s Mineral Resource estimate as at 30 June 2020 sees the portfolio increasing by 8.7Moz 6E on an attributable basis to 277Moz 6E.

There has been no material change in the attributable platinum Mineral Resource estimate which increased by 0.9Moz platinum. The acquisition of the palladium dominant Lac des Iles operation and the attributable portion of the Waterberg project resulted in increasing the attributable palladium Mineral Resource estimate by 8.4Moz palladium.

The estimate as at 30 June 2020 is dominated by Zimplats and Impala, which on a combined basis, contribute 73% of the total attributable platinum ounces and 67% of the total attributable palladium ounces of the Group Mineral Resources.

Attributable platinum Mineral Resource estimate of 132.4Moz Pt as at 30 June 2020 (%)

Attributable palladium Mineral Resource estimate of 89.9Moz Pd as at 30 June 2020 (%)

Attributable platinum Mineral Resource estimate as at 30 June 2020 (variance Moz Pt)

Attributable palladium Mineral Resource estimate as at 30 June 2020 (variance Moz Pd)

Summary Mineral Reserves

Overall, the Group Mineral Reserve estimate increased by 3.5Moz 6E on an attributable basis to 47.8Moz 6E, with platinum increasing to 21.8Moz and palladium to 17.3Moz. The resultant estimate as at 30 June 2020 is based on production depletion being offset by the acquisition of the palladium dominant Lac des Iles operation. Some 49% of the attributable platinum Mineral Reserves is located at Zimplats and a further 36% at Impala and the attributable palladium Mineral Reserves is located at Zimplats (48%), Impala (22%) and Lac des Iles (16%).

Attributable platinum Mineral Reserve estimate of 21.8Moz Pt as at 30 June 2020 (%)

Attributable palladium Mineral Reserve estimate of 17.3Moz Pd as at 30 June 2020 (%)

Attributable platinum Mineral Reserve estimate as at 30 June 2020 (variance Moz Pt)

Attributable palladium Mineral Reserve estimate as at 30 June 2020 (variance Moz Pd)


The Mineral Resource and Mineral Reserve Statement is compiled in accordance with guidelines and principles of The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code (2016)), The South African Code for the Reporting of Mineral Asset Valuation (SAMVAL Code (2016)) and Section 12.13 of the JSE Listings Requirements as updated from time to time. Supporting documentation includes detailed internal reports, SAMREC Table 1 reports, and regular third-party reviews. A summary list of Competent Persons who compiled this report is included in this document on page 09 of the Mineral Resource and Mineral Reserve Statement. While Zimplats complies with guidelines and principles of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code (2012)), the definitions are either similar or do not vary materially from the SAMREC Code (2016). The Zimplats estimates reflected in this report comply with the SAMREC Code (2016) and Section 12.13 of the JSE Listings Requirements.

Implats subscribes to the principles of transparency, materiality and competency as per the SAMREC Code (2016).

Note that:

The updated allocation of Implats’ platinum and palladium Mineral Reserves per shaft infrastructure as at 30 June 2020 is depicted in the accompanying graphic illustrations. The range in depth below surface and quantum relating to the infrastructure is also shown and depicts among others the advantage at Zimplats in this regard, both from a depth and a size perspective.

Platinum Mineral Reserve estimate and depth range for individual Implats shafts as at 30 June 2020

Palladium Mineral Reserve estimate and depth range for individual Implats shafts as at 30 June 2020

Valuation and sensitivities

Implats Mineral Reserves versus real basket price as at 30 June 2020


Business case


Responsible corporate stewardship

Implats aspires to deliver superior value to all stakeholders through operational excellence in PGMs. This strategic imperative prioritises modern, safe, responsible, competitive, and consistent operational delivery while employing leading environmental social and governance practices.

The Group’s core values to respect, care and deliver underpin health and safety goals, the management of operational impacts on the environment, responsible stewardship and progressive sustainable development practices, while building value accretive relationships with host communities.


PGMS have diverse and desirable properties, with wide and evolving applications and end-uses. Primary supply is highly concentrated with limited expectations for medium-term expansion due to increasingly prudent capital allocation by the peer group, rising regulatory oversight and increasing stakeholder requirements which have raised the “hurdle rate” for new projects.

Constrained processing capacity and the challenges associated with the steady and cost-effective provision of electricity present further material challenges to primary supply growth in South Africa.

Implats continues to expect persistent market deficits in both palladium and rhodium – constrained primary supply and legislated demand growth are marked features of these markets and are unlikely to be mitigated by the impact of lower vehicle sales as a result of the Covid-19 pandemic.

The market surplus in the platinum market will erode in the longer-term with stagnant primary and secondary supply offset by continued growth in industrial demand, spurred by increased uptake from elements of the hydrogen economy, tightening global heavy-duty vehicle emission standards and some switching in gasoline catalysts.


  • Increased support from physical investment due to appeal of “hard assets”
  • Sustained underlying market surplus in medium-term and rising above-ground inventory
  • Potential to accelerate tightening through commercial application of “switching” in light-duty gasoline autocatalysis
  • Long-term underpin from mainstreaming of the “hydrogen economy” and fuel cell applications


  • Underpinned by auto demand in developing markets and rising gasoline market share
  • Persistent market deficits have eroded above-ground inventory
  • Tight physical markets and continued price support


  • Structural change in market balance due to NOx legislation
  • Concentrated South African supply
  • Price volatility vulnerable to wide bid-offer spreads


  • Economic shock of pandemic has inflicted immense fiscal damage on South Africa
  • Exacerbated pre-existing funding fragilities and amplified concerns regarding domestic outlook
Supply and demand balances

as at 30 June 2020 (Koz)



Mining method by reserve
Mechanised 64%
Hybrid 5%
Conventional 32%
Geographic split reserve
  Pt Pd Rh OPGM
South Africa 47% 33% 61% 52%
Zimbabwe 52% 51% 39% 44%
Canada 1% 16% 0% 3%

Mineral Reserves by assets as at 30 June 2020 (Koz 6E)

Attributable Mineral Reserves as at 30 June 2020 (%)

Attributable Mineral Resources as at 30 June 2020 (%)

Processing capacity

World class processing capacity is well-positioned to extract mine-to-market margins for the Group while creating flexibility to influence supply through granting of tolling capacity.

Capital allocation framework and priorities

Restored profitability and targeted debt reduction has resulted in substantial progress in ensuring an optimal capital structure and created a firm foundation for prudent capital allocation.

Disciplined and transparent capital allocation to ensure a sustainable business and create value for all stakeholders. Free cash flow from operations pre-growth capital is allocated to:

Framework and FY2020 dividend

Management actions

The progress made in the strategic repositioning of Implats over the past several years enabled the Group to successfully navigate the challenges created by the unprecedented eternal shock of the Covid-19 pandemic. Operational resilience enabled sustained delivery of refined metal to our customers and the Group benefited from robust pricing for primary products achieving stellar financial results. The benefits of improved operational delivery and step-change in profitability have been harnessed for enduring benefit through the substantial strengthening of the Group balance sheet and the diversification of the portfolio through the acquisition of Impala Canada.

The operational focus in the near term is on:

Delivering value

Sustainable, reliable delivery of high-quality products

Salaries and benefits
Local-to-site procurement
Socio-economic development
Share price increase
Dividends reinstated

ESG accolades

FTSE/JSE Responsible
Investment Top 30 Index


Top 100 Best Emerging Markets Performer

One of 325 globally and one of eight in South Africa to be included this year


FTSE4Good Index


“A” rating for disclosures, awareness and management of water security risk


“B” rating for climate change action and disclosures


Implats is in a much stronger position than it was a year ago. It has a more diverse and competitive asset portfolio, a strong balance sheet and a motivated management team. The long-term fundamentals for PGM demand are sound and Implats remains at the forefront of PGM supply.


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