Impala Platinum Holdings Limited (Implats, the Company or the Group) is a leading producer of platinum group metals (PGMs). Implats is structured around seven mining operations and Impala Refining Services (IRS), a refining business. The mining 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, a prominent layered igneous complex domain for PGMs.

Implats has its primary listing on the JSE Limited (JSE) and a secondary listing on A2X Markets in South Africa, as well as a level 1 American Depositary Receipt programme in the United States of America.

The condensed consolidated interim financial statements were approved for issue on 27 February 2025 by the board of directors.

The condensed consolidated interim financial statements for the six months ended 31 December 2024 were reviewed, but not audited, by the Group's statutory auditors, Deloitte & Touche.

The condensed consolidated interim financial statements for the period ended 31 December 2024 have been prepared in accordance with the Listings Requirements of the JSE, the framework concepts and the measurement and recognition requirements of IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB), the SAICA Financial Reporting Guidelines as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council, the Companies Act (71 of 2008) and the requirements of International Accounting Standards (IAS) 34 Interim Financial Reporting.

The condensed consolidated interim financial statements should be read in conjunction with the annual consolidated financial statements for the year ended 30 June 2024, which were prepared in accordance with IFRS Accounting Standards, and the commentary included in these interim results.

The condensed consolidated interim financial statements were prepared under the historical cost convention except for certain financial assets, financial liabilities and derivative financial instruments which are measured at fair value and liabilities for cash-settled share-based payment arrangements which are measured using a binomial option pricing model.

Sustainability and climate change-related disclosures

Implats adheres to existing legislation and financial reporting frameworks. The Group additionally notes the current developments in corporate sustainability reporting, particularly in relation to their financial impacts. Implats supports the ongoing work of the IFRS International Sustainability Standards Board (ISSB) towards achieving this goal through its published sustainability disclosure standards, whose impact on the Group is currently being evaluated.

Climate change and other sustainability-related matters were considered to the extent that these have materially impacted the carrying amounts of assets and liabilities, cash flows or the related estimates and judgements contained in the condensed consolidated interim financial statements and have been disclosed in the relevant notes. Other climate and sustainability-related disclosures are available in the accompanying management commentary in these interim results.

The condensed consolidated interim financial information is presented in South African rand (ZAR), which is the Company's functional currency.

The following foreign currency exchange rates were used to prepare the condensed consolidated interim financial statements:

¹ United States dollar.
² Canadian dollar.
³ Zimbabwe Gold.
⁴ Zimbabwean dollar.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

The principal accounting policies and methods used by the Group are consistent with those of the most recent annual financial statements. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the condensed consolidated interim financial statements, are disclosed in the notes where necessary and indicated with the EJ .

The following amendments to standards are not yet effective and were early adopted by the Group on 1 July 2024:

Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments

• The amendments to IFRS 9 and IFRS 7 add requirements relating to the derecognition of financial liabilities settled through electronic transfers, the assessment of contractual cash flow characteristics for classifying financial assets, as well as disclosures of information relating to equity investments measured at fair value through other comprehensive income
• The amendments are effective for annual periods beginning on or after 1 January 2026, with early application permitted
• The amendments did not have an impact on these condensed consolidated interim financial statements.

Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity

• The amendments to IFRS 9 include additional factors that clarify the use of own-use requirements for contracts referencing nature-dependent electricity, as well as permitting hedge accounting for these contracts
• The amendments to IFRS 7 introduce additional disclosure requirements for nature-dependent renewable electricity contracts
• The amendments are effective for annual periods beginning on or after 1 January 2026, with early application permitted
• The amendments did not have an impact on these condensed consolidated interim financial statements.

The following new standard is not yet effective and was not early adopted by the Group on 1 July 2024:

IFRS 18 – Presentation and Disclosure in the Financial Statements

• This new standard replaces IAS 1 – Presentation of Financial Statements
• IFRS 18 introduces new presentation and disclosure requirements of additional totals in the statement of profit or loss, a new note which discloses management-defined performance measures and enhancements to the requirements for aggregation and disaggregation
• The new standard is effective for annual periods beginning on or after 1 January 2027, with early application permitted
• IFRS 18 is expected to impact the presentation and disclosure of the condensed consolidated interim financial statements.

Refer to note 1 for an overview of Implats' operations.

The Group identified Mining, Impala Refining Services (IRS) and 'All other segments' as reportable segments.

Management has defined the operating segments based on the business activities and management structure within the Group. Management considers factors such as the nature of the products and services, as well as the geographical location of operations in their judgement to identify reportable segments.

Revenue flows

The Group's segments generate revenues from the respective geographical locations in which they operate. The 'All other segments' segment includes the Group's equity-accounted entities, Mimosa and Two Rivers.

• Impala mines and refines its own metal inventories and sells externally to third parties. Sales are disaggregated geographically in the revenue note (note 5)
• Impala Canada and Impala Bafokeng sell their mined PGM concentrate to one customer each in North America and South Africa, respectively
• IRS, a division of Impala, is dedicated to the refining of metal concentrate purchases built up by Implats. Situated in Springs, some 35km east of Johannesburg in South Africa, IRS provides smelting and refining services through offtake agreements with Group companies (except Impala Canada and Impala Bafokeng) and third parties
• The Marula and Zimplats mining segment revenues are made intra-group to IRS, which ultimately sells the refined metal externally to the third parties disaggregated geographically as indicated in note 5.

Sales to the two largest customers amounted to 10% and 8% (December 2023: 12% and 9%) (June 2024: 11% and 8%) of total revenue, from Impala and IRS.

Capital expenditure comprises additions to property, plant and equipment (note 10).

The measure of profit or loss for reportable segments is profit after tax, which is reconciled to the consolidated profit after tax. The basis of accounting for reportable segments is consistent with the Group's consolidated financial statements.

Impairment – Impala Rustenburg mining operation

In the prior financial year, Impala performed a recoverability assessment of its Impala Rustenburg mining operation due to a lower PGM price profile, as well as changes to the mine life. The assessment resulted in an impairment of R10 626 million to property, plant and equipment and an offsetting impact on deferred tax of R2 869 million resulting in a post-tax loss of R7 757 million. The recoverable amount of the Impala Rustenburg mining cash-generating unit (CGU) at June 2024 of R21 026 million was determined based on its fair value less costs of disposal. The recoverable amount is based on future discounted cash flows (value in use of the CGU), including an in situ 4E ounce value for mineral resources outside the approved mine plan. This is a level 3 valuation in terms of the fair value hierarchy. No impairment was recognised in the current period.

Impairment – Canada

In the prior financial year, Impala Canada performed a recoverability assessment of its Lac des Iles mine due to a lower palladium price profile and changes to the mine life and mineral reserves estimates. The assessment resulted in the impairment of property, plant and equipment of R1 632 million (C$120 million) (December 2023: R701 million (C$51 million)) and an offsetting impact on deferred tax of Rnil (C$nil) (December 2023: Rnil (C$nil)) which resulted in a post-tax loss of R1 632 million (C$120 million) (December 2023: R701 million (C$51 million)). The recoverable amount of the CGU at June 2024 of Rnil (C$nil) (December 2023: R1 448 million (C$105 million)) was determined based on its fair value less costs of disposal. This is a level 3 valuation in terms of the fair value hierarchy. No impairment was recognised in the current period.

Capital expenditure will be funded through internally generated funds and from borrowings, where necessary. All right-of-use assets are encumbered by leases and no other fixed assets are pledged as collateral.

The goodwill of R14 114 million arose on the acquisition of Impala Bafokeng (formerly Royal Bafokeng Platinum) on 30 May 2023 and was impaired by R4 244 million in June 2023 to its recoverable amount of R9 870 million. The carrying amount of R9 870 million was allocated to the relevant cash-generating units (CGUs), with R6 347 million allocated to the Impala Rustenburg mining CGU, R3 333 million to the Impala Refining Services (IRS) CGU and R190 million (post-impairment) to the Impala Bafokeng CGU, respectively.

Subsequently, in June 2024, the goodwill allocated to the Impala Rustenburg mining CGU of R6 347 million was impaired in full as part of the impairment of the Impala Rustenburg mining operation. No impairment was recognised in the current period. Refer to note 10.

1. Royal Bafokeng Nation (RBN) prepaid royalty

   In March 2007, the Group agreed to pay the RBN all future royalties due to them, effectively discharging any further obligation to pay royalties. In turn, the RBN purchased shares through Royal Bafokeng Impala Investment Company and Royal Bafokeng Tholo Investment Holding Company, giving them a 13.2% holding in the Company at the time. The RBN subsequently sold their shareholding in the Company. During the previous financial year, the carrying amount of the prepaid royalty (R3 247 million) was impaired in full as part of the impairment of the Impala Rustenburg mining operation.

2. Prepayments on property, plant and equipment

   Property, plant and equipment prepayments mainly relate to amounts prepaid on capital equipment at Zimplats for the smelter expansion and SO₂ abatement plant projects, replacement mines, duty and value added tax on capital equipment, trackless mining machinery, power supply and tailings dam extension.

3. Business-related prepaid expenditure

   The business-related prepaid expenditure mainly relates to amounts prepaid on operating activities at Zimplats for power supply, import duty, as well as other consumables.

4. Employee housing benefit

   The current year movement in the employee housing benefit comprised an increase of R8 million (December 2023: R14 million) (June 2024: R22 million) for additional houses sold to employees, an amortisation charge of R10 million (December 2023: R11 million) (June 2024: R22 million), and reversals of R8 million (December 2023: R8 million) (June 2024: R39 million) as a result of agreements being terminated.

The net realisable value (NRV) adjustment included in the inventory value is impacted by the prevailing metal prices at the reporting date. The current period adjustment of R165 million (December 2023: R755 million) (June 2024: R361 million) comprised R35 million (December 2023: R264 million) (June 2024: R65 million) for refined metal inventory and R130 million (December 2023: R491 million) (June 2024: R296 million) for in-process metal inventory.

Purchased metal consists of Impala Refining Services inventory.

Number of ordinary shares in issue outside the Group

The authorised share capital of the Company consists of 1 044.01 million (December 2023: 1 044.01 million) (June 2024: 1 044.01 million) ordinary no par value shares. The authorised but unissued share capital is 139.64 million (December 2023: 139.64 million) (June 2024: 139.64 million) ordinary no par value shares and remains under the control of the directors.

Broad-based black economic empowerment (B-BBEE)

During the prior year, Implats concluded a broad-based black economic empowerment (B-BBEE) transaction which resulted in an aggregate 13% B-BBEE ownership at Impala Platinum Limited (Impala), which owns Impala Rustenburg and Impala Refineries assets, and Impala Bafokeng, through its wholly owned subsidiary, Impala Bafokeng Resources (Pty) Limited (IBR). The B-BBEE equity ownership at Impala and IBR is held through the use of an employee share ownership trust (ESOT) and a community share ownership trust (CSOT), each holding 4%, as well as a strategic empowerment consortium, the Siyanda-led Bokamoso Consortium, holding another 5%. The purchase consideration due by the Impala CSOT and the IBR ESOT and CSOT was funded by interest-free vendor loans from Impala and IBR which will be repaid by 35% of future dividends receivable. The purchase consideration due by the Bokamoso Consortium was funded by way of a R100 million equity injection and vendor funding by Impala and IBR of the remaining amount at market-related coupon rates. The vendor funding will be repaid by 70% of future dividends. The transaction resulted in an IFRS 2 charge of R1 932 million during the prior year. This charge represented the difference between the fair values of the interests in Impala and IBR and the fair values of the consideration received from the B-BBEE shareholders. The non-controlling interest resulting from the B-BBEE transaction will only be recognised once the loans are repaid.

Bank borrowings

Standard Bank of South Africa

Implats entered into a revolving borrowing base facility of R1 134 million (US$60 million) with Standard Bank of South Africa Limited in the prior year. The facility bears interest at the Secured Overnight Financing Rate plus 285 basis points per annum which is paid quarterly, with a tenor of 12 months. The facility was fully drawn at the end of the period.

FBC Crown bank of Zimbabwe Limited

Implats entered into a revolving short-term loan facility of R99 million (ZWG135 million) with FBC Crown Bank of Zimbabwe Limited with interest of 40% per annum to fund its working capital requirements. R22 million (ZWG30 million) was drawn at the end of the period. The facility allows for multiple drawdowns with each drawdown limited to a maximum repayment of 180 days. The facility expires on 31 December 2025.

Ecobank of Zimbabwe Limited

Implats entered into a revolving short-term loan facility of R93 million (ZWG127 million) with Ecobank of Zimbabwe Limited with interest of 40% per annum to fund its working capital requirements. R63 million (ZWG85 million) was drawn at the end of the period. The facility allows for multiple drawdowns with each drawdown limited to a maximum repayment of 180 days. The facility expires on 30 November 2025.

Implats has a committed revolving credit facility with various financial institutions consisting of a R6.5 billion South African rand tranche (December 2023: R6.5 billion) (June 2024: R6.5 billion) and a US$93.8 million US dollar tranche (December 2023: US$93.8 million) (June 2024: US$93.8 million).

The committed revolving credit facility of R6.5 billion bears interest at the three-month Johannesburg Interbank Acceptance Rate (JIBAR) plus a margin and utilisation fee of between 210 and 260 basis points, subject to the level of utilisation and the total net debt to earnings before interest, tax, depreciation and amortisation (EBITDA) levels of the Group. The facility has an accordion option to increase the facility by an additional R4.2 billion (December 2023: R2.2 billion) (June 2024: R2.2 billion). In the prior year, the facility was extended for another year and will mature on 24 February 2026. The facility was undrawn at the end of the period.

During the current period, the committed revolving credit facility was amended to include Impala Bafokeng Resources as an additional guarantor to the facility agreement and the accordion option was increased from R2.2 billion to R4.2 billion.

The US dollar tranche of the committed revolving credit facility of US$93.8 million (December 2023: US$93.8 million) (June 2024: US$93.8 million) bears interest at the three-month Secured Overnight Financing Rate plus a credit adjustment spread, margin and a utilisation fee of between 211 and 251 basis points, subject to the level of utilisation and the total net debt to EBITDA levels of the Group. The facility has an accordion option to increase the facility by an additional US$37.5 million (December 2023: US$37.5 million) (June 2024: US$37.5 million). During the prior year, the facility was extended for another year and will mature on 24 February 2026. The facility was undrawn at the end of the period.

The R3 billion Impala Bafokeng credit facilities comprising a revolving credit facility of R2 billion which bore interest at JIBAR plus 250 basis points, as well as a general banking facility of R1 billion which bore interest at the prime rate less 140 basis points and the associated security were cancelled in the current period.

Contingent liabilities and guarantees

As at 31 December 2024, the Group had contingent liabilities in respect of matters arising in the ordinary course of business from which it is anticipated that no material liabilities will arise.

The Group has issued guarantees of R37 million (December 2023: R51 million) (June 2024: R41 million) in respect of liabilities held by companies in the Group. Guarantees of R4 580 million (December 2023: R3 878 million) (June 2024: R4 018 million) have been issued by third parties and financial institutions on behalf of the Group consisting mainly of guarantees to the Department of Mineral Resources (DMR) for R3 558 million (December 2023: R3 270 million) (June 2024: R3 487 million).

Uncertain tax matters

Implats is subject to income taxes under the various income tax regimes in the countries in which it operates. The Group has filed, and continues to file, all the required income tax returns and to pay the taxes, as reasonably determined, to be due. In some jurisdictions tax authorities are yet to complete all their annual assessments and the income tax assessments, where completed by the tax authorities, remain subject to further examination within prescribed periods. Significant judgement is required in determining the Group's provisions for income taxes due to the complexity of legislation, which is often subject to interpretation. As a result, disputes can arise with the tax authorities over the interpretation or application of legislation in respect of the Group's tax affairs within the country involved and the outcome of these claims and disputes cannot be predicted with certainty. On tax matters which are particularly complex or require judgement in applying, management has obtained and will continue to obtain, independent legal and/or tax practitioner opinions which inform and support the tax positions adopted.

Implats' companies are involved in tax queries, litigation and disputes with various tax authorities in the normal course of business. A detailed review is performed regularly on each matter and a provision is recognised, where appropriate. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially reported, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

Regardless of whether potential economic outflows of matters have been assessed as probable or possible, individually significant matters are disclosed below.

South Africa

At 31 December 2024, the Group had an unresolved historical tax matter relating to deductions at one of its South African operations. The South African Revenue Service (SARS) had issued an additional assessment relating to this matter which the Group had lodged an appeal to the Tax Court. The Tax Court found in favour of SARS. Management is in the process of lodging an appeal to the High Court to settle this matter. Should the Group be successful in its appeal, it could result in a tax credit of up to R741 million (December 2023: R695 million) (June 2024: R718 million) including interest.

Zimbabwe

Foreign currency taxes

Zimplats has historically filed, and continues to file, all required income tax returns and to pay the taxes reasonably determined to be due. The fiscal legislation in Zimbabwe is volatile, highly complex and subject to interpretation. From time to time, Zimplats is subject to a review of its historic income tax returns and in connection with such reviews, disputes can arise with the Zimbabwe Revenue Authority (ZIMRA) over the interpretation and/or application of certain legislation.

Significant judgement is required in determining the provision for income taxes due to the complexity and differences of interpretation of fiscal legislation, and application which may require determination through the courts. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business.

Zimplats recognises liabilities for anticipated tax audit issues and uncertain tax positions based on estimates of whether additional taxes will be due. The assessment is based on objective, unbiased interpretation of the fiscal legislation, informed by specialist independent tax and legal advice. Where ZIMRA as the tax authority makes an assessment that differs from that determined and initially recorded by the Company, such difference in computation will impact the income tax expenses and liabilities in the period in which such determination is made.

Irrespective of whether potential economic outflows of matters have been assessed as probable or possible, individually significant matters are included as follows to the extent that disclosure does not prejudice the Company.

Matters before the courts

Zimplats filed legal proceedings in the Special Court for Income Tax Appeals and the Supreme Court of Zimbabwe in relation to various historical income tax matters. During the current period, the Supreme Court of Zimbabwe ruled in favour of ZIMRA in respect of one of the tax matters. The ruling did not have any financial impact as Zimplats has on a without prejudice basis, settled the disputed liabilities involved in these cases.

¹ Friedshelf finance leases have an effective interest rate of 10.2%.

There is no contractual relationship governing the Group's transactions with Mimosa. These are conducted through an intermediary. For accounting purposes, and to demonstrate the economic substance of the transactions, they are disclosed as related party transactions, as though the Group had transacted directly with Mimosa.

Fixed and variable key management compensation was R141 million (December 2023: R196 million) (June 2024: R257 million).

Background

The impact of external factors such as climate change, geopolitical tensions and other global and domestic economic factors are deemed to be priced into the valuation of financial instruments, which for the Group, mostly relates to securities price risk and commodity price risk used in the level 1 and 2 fair valuation techniques as determined by the market.

The level 3 valuation techniques were adjusted by amending the cash flows associated with the discounted cash flow (DCF) valuations to factor in impacts of the various micro and macro-economic factors where applicable. The outcome of these considerations and the resulting adjustments are reflected in the respective carrying amounts of the financial assets and financial liabilities measured at fair value.

The following table summarises the Group's classification of financial instruments:

Fair value hierarchy

The table below represents significant financial instruments measured at fair value at the reporting date. The calculation of fair value requires various inputs into the valuation methodologies used. The source of the inputs used affects the reliability and accuracy of the valuations. Significant inputs have been classified into the hierarchical levels in line with IFRS 13 valuations.

Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted prices that are observable for the asset or liability (directly or indirectly).
Level 3 – Inputs for the asset or liability that are unobservable.

There were no transfers between fair value hierarchy levels during the reporting period.

The fair value of Waterberg was determined using the in situ 4E valuation method (significant unobservable input) using metal prices of between US$2.00 to US$12.00 (December 2023: US$2.00 and US$12.00) (June 2024: US$2.00 and US$12.00) per 4E ounce depending on whether the resource is inferred, indicated and measured. A slight increase in the comparable transaction used in the in situ 4E valuation method would result in a significant increase in fair value, and vice versa.

The carrying amount of financial assets and liabilities which are not carried at fair value, is a reasonable approximation of their fair value.

Reconciliation of level 3 fair value measurements

Cash and cash equivalents exposure by country and currency

Collateral – Triple Flag

As security for the gold stream, Triple Flag has the following security:

• A guarantee from Impala Bafokeng Platinum Limited guaranteeing the due payment and performance of all present and future obligations under the stream, with recourse under that guarantee limited to the shares that Impala Bafokeng holds in Impala Bafokeng Resources
• First ranking security over essentially all of Impala Bafokeng Resources' property and assets including mortgage bonds over land, notarial bonds over movable assets and a cession in security over bank accounts and cash balances, insurances, book debts and intercompany loans, receivables and rights under certain material contracts.

Fair value hedge accounting

The Group has a hedging strategy and accounting policy to manage the fair value risk (commodity price and foreign currency exchange risk) to which purchased metal (note 15), the hedged item, is exposed. The financial instrument used to hedge this risk is trade payables related to metal purchases, included in trade payables, measured at fair value through profit or loss. The fair value movements on this financial liability have been designated to hedge the price and foreign currency exchange risk on purchased metal inventory.

To the extent that the hedging relationship is effective, that is, to the extent that an economic relationship exists between the hedged item and hedging instrument, the fair value gains and losses on both the hedged item and hedging instrument are offset against each other. Where the hedge is ineffective, the gains and losses on trade payables and purchased metal inventory are recognised in profit or loss in other income and other expenses respectively.

The effects of the fair value hedge are as follows:

¹ Relates to metal purchases that were still in the refining process at the end of the period.

Dividends

The Company has a dividend policy which is aligned with the Company's capital allocation framework which prioritises the Company's commitment to providing sustainable and attractive returns to shareholders while retaining a strong and flexible balance sheet and sufficiently capitalising the business to allow the Group to take advantage of future value-accretive growth opportunities. The dividend policy recommends a minimum payout of 30% of free cash flow, pre-growth capital for the period. However, at the time of the dividend declaration, the board will consider market conditions, the balance sheet position and the Company's forecast funding requirements and exercise its discretion in determining the final quantum of the dividend. This allows the board to adjust the minimum threshold through the cycle depending on the capital allocation priorities and enable the board to pay out much higher ratios at the top of the PGM cycle.

Implats' capital allocation framework aims to sustain and grow meaningful value for all stakeholders and provide attractive returns to shareholders, while maintaining financial flexibility for the Group.

During the period, Implats incurred a cash outflow of R2.9 billion on stay-in-business and replacement capital with a further R0.6 billion spent on acquiring shares for the Implats share incentive schemes. After adjusting for foreign exchange translation losses, the Group realised an adjusted free cash inflow of R1.0 billion.

The Group's dividend policy is premised on returning a minimum of 30% of adjusted free cash flow, pre-growth capital and cash outflows. However, given constrained free cash flow generation due to persistent low PGM prices, the uncertain macro-economic environment due to new political dispensations and still-elevated working capital as we navigate reduced processing capacity utilisation during smelting facility repair projects, no interim dividend has been declared for the six-month period ended 31 December 2024.

Other events occurring after the reporting period

The directors are not aware of any other subsequent events which materially impact the condensed consolidated interim financial statements.

The 'Acquisition of Royal Bafokeng Platinum from non-controlling interests' of R11 431 million was incorrectly presented as a cash outflow from investing activities and has now been reclassified to a cash outflow from financing activities. The previous presentation was restated as follows: