Operational Review
operational review - two rivers

Two Rivers delivered an excellent safety and production performance for the year

LTIFR (per million man-hours worked)

Production ('000oz of platinum)

Operational review

Two Rivers delivered an excellent safety and production performance for the year.

The lost-time injury frequency rate improved from 1.78 per million man-hours worked in 2013 to 1.40 in 2014.

Tonnes milled increased by 3% from the previous year to 3.3 million in 2014. Both head grade and concentrator recoveries remained steady at 4.01g/t and 85.4% respectively. The chrome plant tertiary mill was commissioned in September 2013 and chrome concentrate sales commenced in October 2013. Platinum in concentrate production increased by 8% to 175 100 ounces and unit costs decreased by 2.1% at R11 433 on the back of the higher production volumes.

Capital expenditure, which amounted to R319 million, down from R489 million in the previous year, was mainly on fleet replacement and the new chrome plant.

Outlook

Agreement in principle has been reached with Two Rivers for the transfer of the remaining portions of Kalkfontein and the farm Buffelshoek from Impala to Two Rivers in return for a royalty when mined. A section 11 approval has been received from the DMR for the aforesaid transfer, which section 11 also covers the transfer of portions 4, 5 and 6 of Kalkfontein and the farm Tweefontein. Once the section 11 is registered, Implats' shareholding in Two Rivers will increase from 45% to 49%. The securing by Two Rivers of these prospecting rights will enable production to be maintained above 150 000 ounces of platinum in concentrate in the medium term.

Two Rivers – key statistics