Audited preliminary summarised consolidated annual results
For the year ended 30 June 2021


Implats is a leading producer of platinum group metals (PGMs) structured around six mining operations and Impala Refining Services, 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-bearing ore bodies in the world – and the Canadian Shield.

The metals we produce are the key to making many industrial, medical, and electronic items, and they contribute to a cleaner, greener world.

Key features for
the 12 months

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Operating statistics

      Year ended
30 June
2021		   Year ended
30 June
2020		 Variance
%
Gross refined production            
6E (000oz)   3 270.6   2 812.7 16
Platinum (000oz)   1 516.6   1 349.3 12
Palladium (000oz)   1 121.4   892.0 26
Rhodium (000oz)   193.4   180.6 7
Nickel (tonnes)   15 443   15 387 0
IRS metal returned (toll refined)            
6E (000oz)   1.6   1.0 60
Platinum (000oz)   0.1   0.1 –
Palladium (000oz)   1.5   1.0 50
Rhodium (000oz)   –   –  
Nickel (tonnes)   3 984   2 949 35
Sales volumes            
6E (000oz)   3 274.4   2 792.9 17
Platinum (000oz)   1 396.5   1 371.0 2
Palladium (000oz)   1 092.8   871.7 25
Rhodium (000oz)   200.2   174.0 15
Nickel (tonnes)   13 111   10 973 19
Prices achieved            
Platinum (US$/oz)   1 043   885 18
Palladium (US$/oz)   2 419   1 896 28
Rhodium (US$/oz)   17 610   6 870 156
Nickel (US$/t)   15 621   14 109 11
Consolidated statistics            
Average rate achieved (R/US$)   15.26   15.31 (0)
Closing rate for the period (R/US$)   14.32   17.38 (18)
Revenue per 6E ounce sold (US$/oz)   2 587   1 624 59
Revenue per 6E ounce sold (R/oz)   39 478   24 863 59
Tonnes milled ex-mine* (000t)   23 210   19 576 19
6E in concentrate (000oz)   3 291.9   2 849.4 16
Capital expenditure (Rm)   6 437   4 488 (43)
Group unit cost per 6E ounce stock adjusted (R/oz)   14 840   13 345 11
Group unit cost per 6E ounce stock adjusted (US$/oz)   964   851 (13)
Financial performance            
Revenue Rm   129 575   69 851 86
Gross profit Rm   53 455   23 271 130
EBITDA Rm   61 442   29 386 109
Profit for the year Rm   47 855   16 484 190
Headline earnings Rm   36 359   16 126 125
Free cash flow Rm   38 304   14 395 166
Basic earnings Rm   47 032   16 055 193
Net cash (excluding leases) Rm   23 473   5 748 308
Basic earnings per share cents   5 996   2 066 190
Headline earning per share cents   4 635   2 075 123
Dividends declared cps   2 200   525 319
ESG Indicators            
Fatalities (count)   3   5 (40)
TIFR (pmmhw) ** 9.84   11.30 13
LTIFR (pmmhw) ** 4.92   4.54 (8)
Labour including capital* (number)   56 180   50 744 (11)
Level 4 or 5 environmental incidents (count)   0   0 0
Level 3 environmental incidents (count)   7   16 (56)
Water consumption (kilolitres/tonnes milled)   50 671   43 122 18
Water recycled/reused %   51   44 16
Energy consumption (GJ/tonnes milled)   0.845   0.857 (1)
Scope 1 and 2 carbon emissions (tonnes CO2/tonnes milled)   0.175   0.186 (6)
Local procurement Rm   3 490   2 663 31
Social economic spend Rm   126   113 12
* Managed operations.
** Per million man-hours worked.

SAFETY

  • Regrettably, three fatal injuries recorded at managed operations
  • 48% improvement in FIFR to 0.026*
  • 13% improvement in TIFR to 9.84*

* Per million man-hours worked

FINANCIAL

  • Gross profit of R53.5bn (+130%) and EBITDA of R61.4bn (+109%)
  • Headline earnings of R36.4bn (+125%) or R46.35 per share
  • Free cash flow of R38.3bn (+166%)
  • R23.5bn cash net of debt
  • Debt free and improved liquidity headroom of R30.9bn
  • 70% of free cash flow allocated to shareholder returns through repurchases of ZAR convertible bonds and payments of cash dividends
  • Final dividend of R12.00 per share, bringing total FY2021 dividend to R22.00 per share

OPERATIONAL

  • Successfully navigated Covid-19-related operational challenges
  • 18% increase in managed 6E concentrate production to 2.37Moz
  • 10% increase in joint venture operations 6E concentrate production to 561koz
  • 9% increase in third-party 6E receipts to 358koz
  • 16% increase in refined 6E production to 3.27Moz
  • 17% increase in 6E sales volumes of 3.27Moz
  • Group unit costs per 6E rose 11% to R14 840/oz on a stock-adjusted basis
  • Consolidated Group capital expenditure of R6.4bn

MARKET

  • 6E dollar basket pricing up 59% to US$2 587/oz driven by record Rh and Pd prices
  • Rand revenue per 6E ounce sold increased by 59% to R39 478/oz
  • Fundamental deficits in Pt, Pd and Rh markets in 2020
  • Continued tightening in markets for Pd and Rh to support higher pricing in the medium term
  • Pt prospects remain muted in the near term, but growing momentum for development of hydrogen economy
  • Global focus on the critical role South Africa plays in PGM supply

Creating a
better future

  • Our purpose

    Creating a better future

  • Our vision

    To be the most valued and responsible metals producer, creating a better future for our stakeholders

  • Our values

    Respect, care and deliver


FORWARD LOOKING AND CAUTIONARY STATEMENT

Certain statements contained in this disclosure, other than the statements of historical fact, contain forward looking statements regarding Implats’ operations, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum industry, expectations regarding metal prices, production, cash costs and other operating results, growth prospects and the outlook of Implats’ operations, including the completion and commencement of commercial operations of certain of Implats’ exploration and production projects, its liquidity and capital resources and expenditure and the outcome and consequences of any pending litigation, regulatory approvals and/or legislative frameworks currently in the process of amendment, or any enforcement proceedings. Although Implats believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Accordingly, results may differ materially from those set out in the forward looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metal prices, levels of global demand and exchange rates and business and operational risk management. For a discussion on such factors, refer to the risk management section of the Company’s integrated annual report. Implats is not obliged to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the dates of the integrated annual report or to reflect the occurrence of unanticipated events.

Disclaimer: This entire disclosure and all subsequent written or oral forward looking statements attributable to Implats or any person acting on its behalf are qualified by caution. Recipients hereof are advised this disclosure is prepared for general information purposes and not intended to constitute a recommendation to buy or offer to sell shares or securities in Implats or any other entity. Sections of this disclosure are not defined and assured under IFRS, but included to assist in demonstrating Implats’ underlying financial performance. Implats recommends that you address any doubts in this regard with an authorised independent financial adviser, stockbroker, tax adviser, accountant or suitably qualified professional.

September 2021
Johannesburg

Sponsor to Implats
Nedbank Corporate and Investment Banking