Strategic pillars
LINKING STRATEGY WITH RISKS AND OPPORTUNITIES
Our strategic pillars respond to risks as an essential component of risk management. The Group’s strategies identify and analyse potential internal and external risks, allowing us to develop appropriate responses. This section therefore describes Implats’ six value-focused strategies and explains how they are both impacted by, and respond to Group risks through tradeoffs and our strategic approach, objectives and action plans.
Associated material matters: Safety and health, environmental stewardship and climate change, social licence to operate, regulatory and political environment, integration of operations.
We aspire to deliver an industry-leading sustainability performance, producing metals that sustain livelihoods through and beyond mining, creating a cleaner and better future for all.
Value creation
Sustainable development enables Implats to:
- Drive long-term financial performance and economic growth
- Preserve natural resources and reduce environmental impact
- Promote social equity and community resilience
- Strengthen governance, compliance and risk management.
Material risks
Our sustainability strategy is shaped by several interrelated risks:
- Financial constraints from lower PGM prices impact our ability to invest in long-term sustainability
- Safety performance, energy and water availability, and labour relations affect operational continuity
- Social licence to operate, regulatory compliance and cyber security risks influence stakeholder trust and resilience
- Climate change adaptation remains a critical challenge with long-term operational and reputational implications.
Capitals employed
- Intellectual
- Social and relationship
- Financial
- Natural
- Human.
Strategic approach
SROWe have embedded a comprehensive ESG framework to guide our actions:
- Zero harm: Prioritising safety across all operations
- Employee wellbeing: Promoting health, wellness and constructive labour relations
- Social investment: Delivering on Social and Labour Plan (SLP) commitments
- Community partnerships: Building trust and shared value through inclusive development
- Environmental stewardship: Advancing responsible resource use and biodiversity protection
- Climate action: Implementing a low-carbon transition strategy
- Resource efficiency: Securing sustainable water and energy supply
- Regulatory compliance: Upholding strong governance and legal adherence
- Capital discipline: Allocating resources to high-impact sustainability initiatives.
Our strategy is aligned with the UN Sustainable Development Goals (SDGs), and with environmental and social targets embedded into operational planning and remuneration structures.
Trade-offs and dependencies
- Safety remains non-negotiable
- Socio-economic and environmental investments are constrained by available financial capital
- Climate action requires long-term investment in skills, partnerships and infrastructure
- Community and labour expectations must be balanced with operational needs
- Skills shortages may impact delivery of sustainability goals.
| KPI performance and targets | |||
|---|---|---|---|
| KPI | FY2025 target | Performance | FY2026 target |
| Fatalities | Zero | 8 fatalities | Zero |
| LTIFR | <3.90 pmmhw | 3.46 pmmhw | <3.32 pmmhw |
| ISO 14001:2015 certification | Maintain | Achieved | Maintain |
| Environmental incidents | No level 4 or 5 | Achieved | No level 4 or 5 |
| Water recycled/reused | ≥55% | 59% | ≥60% |
| Regulatory compliance | Full compliance | Achieved | Full compliance |
Key outcomes
Despite improvements in injury frequency rates, eight fatalities across seven incidents underscore the continued urgency of safety enhancements. The Group maintained strong environmental performance, securing a renewable energy agreement and advancing key projects, including the approved 45MW Phase 2A solar project and 35MW solar plant at Zimplats. In addition, Impala Rustenburg entered into an agreement to assess the feasibility of a 50MW solar power plant in the lease area, and a bankable feasibility study was completed for a 30MW solar photo voltaic power plant at Marula. The BMR effluent crystalliser at Impala Refineries improved water-use compliance. Social investment remained focused on high-impact programmes supporting community wellbeing, education, skills development and infrastructure.
Outlook
In FY2026, Implats will continue to strengthen its ESG performance by improving safety outcomes, deepening community partnerships and advancing the delivery of our climate and environmental goals. We remain committed to the responsible use of scarce resources, inclusive development and transparent governance to ensure long-term sustainability and maintain stakeholder trust.
| Legend: | Target met/exceeded | Target not met |
Associated material matters: Safety and health, operational performance and cost management, integration of operations, technology, innovation and digital transformation.
We generate superior value for all stakeholders through modern, safe, responsible, competitive and consistent operational delivery.
Value creation
Operational excellence enhances:
- Safe and efficient production
- Flexibility and cost competitiveness
- Employee engagement and productivity
- Financial performance and risk management.
Material risks
Operational excellence is influenced by several key risks:
- Safety performance: Ensuring a zero-harm workplace remains a top priority
- Impala Bafokeng integration: Successful execution is critical to unlocking long-term value
- Labour relations: Constructive engagement supports operational continuity
- Electricity and water availability: Natural resource availability impact efficiency and cost control
- Stakeholder relations, regulatory compliance and cyber security: These factors affect risk mitigation and operational stability.
Capitals employed
- Human
- Intellectual
- Financial
- Manufactured
- Natural
- Social and relationship.
Strategic approach
SROOur approach to operational excellence is anchored in best practices and continuous improvement:
- Embedding a safety-first culture across all operations
- Optimising consolidated Impala Rustenburg assets to unlock synergies
- Strengthening labour relations and employee wellness initiatives and outcomes
- Advancing renewable energy, water stewardship and recycling initiatives
- Expanding and optimising processing capacity and refining capabilities
- Enhancing community engagement and delivering on social commitments
- Ensuring regulatory compliance
- Investing in skills development, digital transformation and securing cyber resilience
- Applying disciplined capital allocation to support strategic priorities.
Trade-offs and dependencies
- Achieving cost-efficient production may require increased investment, balanced against the need to preserve financial flexibility.
| KPI performance and targets | |||
|---|---|---|---|
| KPI | FY2025 target | Performance | FY2026 target |
| 6E Group production (stock-adjusted) | 3.50 to 3.70Moz | 3.55Moz | 3.35 to 3.60Moz |
| 6E refined production | 3.45 to 3.65Moz | 3.38Moz | 3.40 to 3.60Moz |
| Cost per 6E ounce (stock-adjusted) | R21 000 to R22 000 | R22 491 | R23 500 to R24 500 |
Key outcomes
Implats delivered a solid performance across its mining and processing assets. Unit costs benefited from lower input inflation and rand appreciation, though reduced production volumes posed challenges. After a strong first half, unplanned furnace maintenance and utility supply disruptions at the base and precious metals refineries impacted refined and sales volumes, resulting in an increase of excess in-process inventory to 420 000 6E ounces.
Outlook
In FY2026, Implats will continue to prioritise safe, efficient and cost-effective production. The integration of Impala Bafokeng and Impala Rustenburg will remain a key focus, with initiatives aimed at improving productivity, reducing costs and enhancing competitiveness. Investment in digital innovation, energy efficiency and asset reliability will support operational resilience. Labour stability, skills development and environmental stewardship will be central to sustaining long-term value. Capital allocation will remain disciplined, targeting high-impact projects aligned with strategic growth and sustainability.
| Legend: | Target met/exceeded | Target not met |
Associated material matters: Talent attraction, retention and organisational effectiveness, technology, innovation and digital transformation, integration of operations.
We place people at the centre of our organisation, and engender a shared culture founded on our values to respect, care and deliver.
Value creation
A high-performing organisation enhances strategic alignment, decision-making, innovation, and employee engagement. This, in turn, supports financial performance, risk management and reputational strength.
Material risks
Organisational effectiveness is shaped by our ability to maintain stable labour relations, manage stakeholder dynamics and optimise internal capacity and efficiency. These efforts are influenced by financial constraints amid increasing expectations around incentive schemes, persistent skills shortages in our operating regions, and our safety performance.
Trade-offs and dependencies
- Multi-year wage agreements support labour stability and provide financial planning certainty
- Investing in employee development builds loyalty and capability but requires time and financial resources. Outsourcing may be more cost-effective for short-term specialised needs.
Capitals employed
- Human
- Social and relationship.
Strategic approach
SRO- Implementing an integrated people strategy that aligns human resources, ESG and stakeholder engagement
- Promoting an inclusive, diverse and safe workplace
- Aligning employees and business units with Group strategy and performance goals
- Driving efficient use of resources to reduce costs and improve productivity
- Leveraging digital and AI technologies to enhance decision-making and operational processes
- Supporting socio-economic development in host communities
- Attracting, developing, and retaining critical talent
- Applying disciplined capital allocation amid constrained free cash flow generation.
| KPI performance and targets | |||
|---|---|---|---|
| KPI | FY2025 target | Performance | FY2026 target |
| Labour availability | Manage to support operational requirements | Achieved | Manage to support operational requirements |
| Leadership | Sustain leadership capacity and capability | Achieved | Sustain leadership capacity and capability |
| Women representation in management | 29% women representation in management by 2026 | Achieved (29%) | Improve representation at operational level |
| Women representation in workforce | Achieve 15% representation | Achieved (16%) | Maintain minimum 15% representation |
Key outcomes
The Western Limb consolidation required focused engagement on union representation, particularly regarding NUM’s recognition rights. Adjustments were made to the ESOT, including a R15 000 ex-gratia payment and the introduction of a 4% gross profit after tax (GPAT)-based profit-sharing scheme.
Implats invested R274 million in initiatives supporting community wellbeing, education and skills development, enterprise and supplier development (ESD), inclusive procurement and resilient infrastructure. These efforts benefited over 61 000 people and supported approximately 3 700 employment opportunities. The R50 million Impala Peo (seeds of change) ESD Fund was launched in the first half of the year to provide financial support to SMMEs from mine communities. Three Peo Fund loan applications, totalling R1.7 million, were advanced.
Outlook
In FY2026, Implats will continue to strengthen organisational effectiveness by embedding a high-performance culture, enhancing leadership capability, and advancing diversity and inclusion. Strategic focus will remain on aligning people and processes with Group objectives, supported by digital innovation and prudent capital deployment. Labour stability, talent retention and community partnerships will be key enablers of sustained value creation.
| Legend: | Target met/exceeded | Target not met |
Associated material matters: PGM market dynamics, operational performance and cost management, optimal capital allocation and financial resilience, regulatory and political environment.
We pursue value creation by sustaining and leveraging a strong and flexible balance sheet within a prudent capital allocation framework.
Value creation
A well-managed capital structure through the commodity cycle enhances financial stability, supports strategic initiatives and maximises shareholder value. It also strengthens investor confidence, increases access to capital and enables effective risk management.
Material risks
An optimal capital structure is essential to sustaining profitability and strategic agility. Key risks include variability in PGM basket pricing, input cost inflation, and currency fluctuations – particularly in Zimbabwe. These factors impact financial flexibility, cost of capital and the Group’s ability to fund growth and deliver shareholder returns through the commodity cycle.
Capitals employed
- Financial.
Trade-offs and dependencies
- Capital allocation decisions must balance liquidity, shareholder returns and growth
- Lower commodity prices may require the deferral of certain capital projects to preserve balance sheet strength
- Competing demands for limited financial resources necessitate the prioritisation of high-impact initiatives.
Strategic approach
SRO- Applying a disciplined capital allocation framework to balance stakeholder value creation with financial flexibility and investing in growth
- Maintaining a strong balance sheet with sufficient liquidity and funding optionality
- Using market-informed currency and commodity forecasts to manage financial risk
- Containing cost inflation through rigorous cost control
- Optimising borrowing costs through diversified, multi-currency banking facilities
- Engaging with authorities on currency access and reforms in Zimbabwe to manage local financial risks.
| KPI performance and targets | |||
|---|---|---|---|
| KPI | FY2025 target | Performance | FY2026 target |
| Effective capital structure | Maintain appropriate liquidity to fund Group strategy | Achieved Liquidity headroom: R19.7 billion |
Maintain appropriate liquidity to fund Group strategy |
| Effective capital allocation strategy | Ensure alignment with strategic priorities and financial flexibility | Achieved | Ensure alignment with strategic priorities and financial flexibility |
| Returns to shareholders | Minimum 30% of free cash flow (pre-growth capex), with upside potential | Achieved Dividend declared of circa 60% of free cash flow (pre-growth capital) |
Minimum 30% of free cash flow (pre-growth capex), with upside potential |
| Capital expenditure | Fund forecast capex of R8.0 billion to R9.0 billion | Achieved Capital expenditure: R7.0 billion |
Fund forecast capex of R8.0 billion to R9.0 billion |
Key outcomes
The Group maintained a strong, flexible balance sheet, with capital allocation focused on optimising returns and unlocking value across the portfolio in a low PGM price environment.
Outlook
In FY2026, Implats will continue to prioritise financial discipline and capital efficiency. The Group remains committed to maintaining a robust balance sheet, supporting strategic investments and delivering sustainable and competitive shareholder returns. Capital allocation will be guided by market conditions, cash flow generation and the need to preserve long-term financial resilience.
| Legend: | Target met/exceeded | Target not met |
Associated material matters: Optimal capital allocation and financial resilience, integration of operations.
We seek to leverage, strengthen and grow our diverse asset base through operational exposure to shallow, mechanisable orebodies.
Value creation
A competitive asset portfolio underpins Implats’ long-term outlook by enhancing operational efficiency, diversifying risk, supporting revenue growth, improving financial performance, and reinforcing investor confidence.
Material risks
The effectiveness of our asset portfolio strategy is influenced by:
- Limited financial resources due to weaker PGM basket pricing
- Execution risk related to the Impala Bafokeng integration into Impala Rustenburg
- Labour and stakeholder relationship dynamics
- Regulatory compliance challenges
- Capacity and capability constraints within management structures.
Capitals employed
- Intellectual
- Social and relationship
- Financial
- Manufactured
- Natural.
Trade-offs and dependencies
- Capital investment in growth and optimisation projects may constrain short-term shareholder returns
- Project deferrals may be necessary in response to market conditions to preserve financial flexibility.
Strategic approach
SRO- Building a geographically diverse portfolio focused on low-cost, mechanisable orebodies
- Continuously optimising integrated processing infrastructure
- Enhancing asset competitiveness through disciplined capital investment and operational planning
- Consolidating support functions at Impala Rustenburg to improve efficiency and reduce overheads.
| KPI performance and targets | |||
|---|---|---|---|
| KPI | FY2025 target | Performance | FY2026 target |
| Portfolio optimisation | Ongoing enhancement of asset base | Achieved | Ongoing enhancement of asset base |
Key outcomes
The Group’s Western Limb operations were consolidated to ensure long-term sustainability in a sustained low rand PGM pricing environment. This alignment of legal and reporting structures under Impala Rustenburg will unlock synergies, enhance profitability over time and support the ongoing viability of the combined operation.
Outlook
In FY2026, Implats will continue to optimise its asset portfolio to enhance resilience and long-term competitiveness. Strategic focus will remain on mechanisation, cost efficiency and unlocking value from existing operations – particularly through the consolidation of Impala Bafokeng and Impala Rustenburg. Capital deployment will be guided by market conditions and prioritised to support high-return, value-accretive initiatives.
| Legend: | Target met/exceeded | Target not met |
Associated material matters: PGM market dynamics, optimal capital allocation and financial resilience, environmental stewardship and climate change, technology, innovation and digital transformation.
We sustain and grow value by supporting present and future demand drivers, creating strong customer relationships and aligning our production to evolving demand.
Value creation
Our future focus drives strategic growth by enhancing market share, customer loyalty and production efficiency. It supports margin expansion, risk reduction, brand strength and long-term sustainability through proactive planning and resource allocation.
Material risks
Delivering on our future-focused strategy requires effective management of:
- PGM basket price variability
- Safety performance
- Social licence and stakeholder engagement
- Regulatory compliance
- Cyber security threats
- Climate change adaptation and readiness.
Trade-offs and dependencies
- Market development and strategic studies require funding and long-term commitment
- Balancing short-term returns with investment in future growth opportunities.
Capitals employed
- Intellectual
- Human
- Financial
- Manufactured.
Strategic approach
SRO- Identifying and advancing opportunities to improve efficiency and unlock new growth prospects
- Using market-informed currency and commodity forecasts to manage financial risk
- Strengthening customer relationships and leveraging market intelligence
- Supporting long-term demand drivers through tailored market development initiatives
- Collaborating with key industry bodies (IPA, PGI, WPIC)
- Anticipating stakeholder needs and adapting accordingly
- Investing in early-stage opportunities through AP Ventures to support future PGM applications.
| KPI performance and targets | |||
|---|---|---|---|
| KPI | FY2025 target | Performance | FY2026 target |
| Market development and industry participation | Maximise to support future demand growth | Achieved | Maximise to support future demand growth |
Key outcomes
Implats responded to weak rand PGM pricing with targeted operational and cost measures, including the strategic consolidation of Impala Bafokeng to enhance long-term competitiveness. Beneficiation capabilities were strengthened to capture full value across the supply chain, while a diverse customer base and market leadership supported growth in clean energy sectors. Sustainability efforts focused on decarbonisation and climate resilience, alongside improved organisational effectiveness and stakeholder engagement to safeguard the social licence to operate.
Outlook
In FY2026, Implats will continue to align its operations with evolving market dynamics and future PGM demand. Focus areas include strengthening strategic partnerships, advancing innovation and investing in market development to support long-term relevance and resilience. Capital will be allocated to initiatives that position the Group for sustained growth and competitive advantage.
| Legend: | Target met/exceeded | Target not met |