Key features for the six months

IMPLATS IS A LEADING PRODUCER OF PLATINUM GROUP METALS (PGMs). IMPLATS IS STRUCTURED AROUND SIX MINING OPERATIONS AND IMPALA REFINING SERVICES (IRS), A TOLL-REFINING BUSINESS. OUR OPERATIONS ARE LOCATED ON THE BUSHVELD COMPLEX IN SOUTH AFRICA, THE GREAT DYKE IN ZIMBABWE – THE TWO MOST SIGNIFICANT PGM-OREBODIES IN THE WORLD – AND THE CANADIAN SHIELD, A PROMINENT LAYERED IGNEOUS COMPLEX DOMAIN FOR PGMs.

SAFETY

  • Continued improvement in overall safety performance
  • A 6% improvement in TIFR to 11,90*
  • A 9% improvement in LTIFR to 4,83*
  • Sadly, three fatal injuries recorded at managed operations

* Per million man hours worked versus FY2019.

OPERATIONAL

  • A 2% decline in mine-to-market 6E concentrate production to 1,34Moz
  • A 4% increase in third-party 6E receipts to 190koz
  • Scheduled smelter maintenance and repairs resulted in an increase of 135koz 6E in‑process inventory and consequently, refined 6E production decreased by 17% to 1,32Moz, inclusive of:
    • An 18% decrease in refined platinum to 658koz
    • A 16% decrease in refined palladium to 391koz
  • Sales volumes of 1,33Moz 6E were 16% lower
  • Cash cost performance:
    • Cash costs up 11%
    • Group unit costs per 6E ounce on a stock-adjusted basis up 15% to R13 157
  • Consolidated Group capital expenditure of R1,9 billion
  • Successful turnaround of operations at 12 and 14 Shafts results in change in production profile
  • Operation and cost guidance for FY2020 remains unchanged, premised on the expected release of excess inventory in the second half of the financial year

FINANCIAL

  • Dividend policy based on 30% free cash flow adopted by the Board with a R1,25 per ordinary share interim payment declared
  • Acquisition of North American Palladium completed on 13 December 2019
  • Successful invitation for early conversion of the 2022 US dollar bond
  • Gross profit of R6,2 billion and EBITDA of R7,6 billion
  • Headline earnings of R3,4 billion or 436 cents per share
  • Free cash flow of R5,0 billion
  • Net debt of R1,9 billion after funding North American Palladium acquisition cost of R10,9 billion

MARKET

  • 6E dollar basket price up 36% to US$1 420/6E ounce, driven by significantly stronger palladium and rhodium dollar prices
  • Rand revenue per 6E ounce sold increased by 41% to R20 888/6E ounce due to weaker exchange rate
  • Muted near-term prospects for the platinum market due to lower diesel vehicle sales and lower year-on-year investment demand
  • Strong medium term underpin to industrial demand for platinum from nascent hydrogen and fuel cell technology adoption
  • Further tightening in the markets for palladium and rhodium expected to support higher pricing in the short to medium term