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IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE share code: IMP
ISIN: ZAE000083648
ADR code: IMPUY
(“Implats”, “the Company” or “the Group”)
SUMMARISED CONSOLIDATED ANNUAL RESULTS FOR THE FINANCIAL YEAR ENDED
30 JUNE 2023 AND CASH DIVIDEND DECLARATION
Key features for FY2023:
▪ Regrettably, five fatalities at managed operations
▪ 7% improvement in LTIFR* to 3.92 and 5% improvement in TIFR* to 9.25
▪ No major or significant environmental incidents
▪ Maintained A-rating from MSCI for ESG performance
▪ Second consecutive inclusion in the S&P Global Sustainability Yearbook (2023)
▪ Group 6E production increased 2% to 3.25Moz
▪ Refined 6E production declined 4% to 2.96Moz
▪ 6E sales volumes declined 6% to 2.97Moz
▪ Group 6E unit costs rose 14% to R19 834/oz (stock-adjusted)
▪ Consolidated Group capital expenditure of R11.5 billion
▪ Dollar revenue per 6E ounce decreased 18% to US$ 2 035/oz on lower rhodium and
palladium pricing
▪ Rand revenue per 6E ounce declined 4% to R36 118/oz
▪ EBITDA of R36.0bn with headline earnings of R18.8bn or 2 211c per share
▪ Basic earnings of R4.9bn or 577c per share
▪ Free cash flow of R14.2bn and closing net cash (excluding leases) of R25.3bn
▪ Final dividend of 165c per share, bringing total FY2023 dividend to 585c per share
▪ Secured control of RBPlat, with integration now underway
▪ Tightening markets for PGMs, with pricing undercut by industrial destocking
*per million man-hours worked
Commentary
Enhanced operational flexibility, resilience and disciplined execution enabled Implats to successfully
navigate a series of domestic and regional challenges, which compounded the effects of softening dollar
pricing, rand depreciation and persistent inflation in the year under review. This is testament to the skills
and strength of our people, with standout performances at Impala Canada, Zimplats and Impala
Rustenburg.
The year’s highlight was securing ownership of Royal Bafokeng Platinum Limited (RBPlat) and the
Group is implementing its plans to integrate and optimise the asset to ensure maximum value from this
important acquisition. The combined asset base of Impala Rustenburg and RBPlat will result in a more
secure and sustainable Rustenburg operating complex in years to come, with a premier mine-to-market
production base, well-capitalised infrastructure and long-term competitive positioning, enhanced by
industry-leading integrated processing capability and realising material synergies. The Group launched
the proposed acquisition of RBPlat in November 2021, with an offer of R90.00 in cash and 0.3 Implats
shares per RBPlat share. The Competition Tribunal approved the transaction on 16 November 2022,
and the mandatory offer closed on 21 July 2023, with Implats securing 98.91% ownership post year
end. The compulsory acquisition of the residual shareholding, in terms of Section 124(1) of the
Companies Act (71 of 2008) as amended, will be effected by 14 September 2023.
Safety
Safe production remains the Group’s foremost priority, with the goal of achieving zero harm to the health
and safety of our employees and contractors. All safety metrics improved in the period, benefiting from
a focus on fatal risk control protocols, risk mitigation using leading indicators, visible leadership and
mine-safety discipline. However, the Group regrettably reported five employee fatalities at managed
operations during the period (FY2022: seven), and one at joint venture (JV) operation, Two Rivers.
During the 12 months to end-June 2023, the Group’s fatal-injury frequency rate improved by 29% to
0.040 per million man-hours worked (FY2022: 0.056). The lost-time injury frequency rate improved by
7% to 3.92 (FY2022: 4.21) and the all-injury frequency rate by 5% to 9.25 per million man-hours worked
(FY2022: 9.76). By year end, 13 of the Group’s 18 operations had achieved millionaire or multimillionaire
status in terms of fatality free shifts.
Operational summary
Tonnes milled from the Group’s managed operations increased by 7% to 23.88 million tonnes (FY2022:
22.36 million tonnes) with higher reported volumes at each of Impala Rustenburg, Zimplats and Impala
Canada together with a consolidated contribution of 403 000 tonnes at RBPlat offsetting lower
throughput at Marula. 6E production at managed operations increased by 6% to 2.42 million ounces
(FY2022: 2.29 million ounces), and a maiden contribution of 43 000 6E ounces in concentrate from
RBPlat was recorded for the 30 days to 30 June 2023.
6E concentrate production of 541 000 ounces from JV operations declined by 1% (FY2022: 548 000
ounces). Safety stoppages, and intermittent localised community disruptions at Two Rivers exacerbated
the ongoing impact of split-reef and development tonnage on milled grade. At Mimosa, processing and
plant stability was impacted by commissioning and optimising the concentrator project, power
interruptions, changes in reagent supply and poor water quality. Third-party 6E concentrate receipts
declined by 18% to 287 000 6E ounces, with several operational challenges reported at peer-group
producers and the termination of two contracts in Q3 FY2023. In total, Group 6E production increased
by 2% to 3.25 million ounces (FY2022: 3.19 million ounces).
In addition to load curtailment at South African managed and JV operations during the period, severe
load shedding was experienced across the Zimbabwean national grid in March 2023. In total, Implats
estimates 36 000 6E ounces of production were foregone across southern African managed and JV
operations during the period. Circa 101 000 6E ounces were deferred due to power constraints at the
Group’s smelting operations and the consequent delay to restart the refurbished Number 4 furnace in
Q4 FY2023. A further 10 000 6E ounces were deferred due to cable theft at Impala Rustenburg,
particularly the instance which resulted in power supply interruptions to the metallurgical complex.
Group refined 6E production of 2.96 million ounces, including saleable production from Impala Canada
and RBPlat, declined by 4% (FY2022: 3.09 million ounces), impacted by constrained smelting capacity
from the scheduled rebuild of Number 4 furnace in Rustenburg and the increased severity and duration
of load curtailment experienced. Implats ended the period with circa 245 000 6E ounces of excess
inventory (FY2022: 40 000 ounces).
Notable rand depreciation compounded the impact of high consumable and utilities inflation on the
translated cost and capital expenditure at Zimbabwean and Canadian operations. Total cash operating
costs increased by 19%, while unit costs benefitted from higher throughput at managed operations and,
despite lower refined output, increased by 14% to R19 834 per 6E ounces (FY2022: R17 364 per 6E
ounce).
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Capital expenditure at managed operations rose by 27% to R11.5 billion (FY2022: R9.1 billion) as
spending on replacement and growth projects accelerated and the rand weakened against the dollar.
Stay-in-business spend of R7.3 billion, replacement capital of R2.3 billion and expansion capital of R1.9
billion increased by 16%, 61% and 41%, respectively.
Financial summary
The Group’s financial performance was negatively impacted by the retracement in rand PGM pricing,
lower refined production and sales, continued higher levels of inflation, the accounting impact of end-of-
period inventory valuations and impairments related to Impala Canada and RBPlat, the latter as required
by its consolidation.
Revenue of R106.6 billion decreased by 10%, cost of sales of R84.3 billion increased by 9% and Implats
delivered gross profit of R22.3 billion. EBITDA of R36.0 billion was achieved at an EBITDA margin of
34%.
Implats accounted for three significant once-off items in FY2023:
• A R10.9 billion impairment of the carrying value of Impala Canada, due to the combined
impact of a material decrease in the US dollar palladium price profile and higher prevailing
inflation
• A loss of R1.8 billion on the remeasurement of the previously held equity investment in RBPlat
at the date it became a subsidiary of the Group
• A R4.2 billion impairment of goodwill arising on the acquisition of RBPlat.
Basic earnings declined to R4.9 billion or 577 cents per share, from R32.0 billion or 3 856 cents per
share in FY2022. Headline earnings of R18.8 billion or 2 211 cents per share were 41% and 43% lower,
respectively. The weighted average number of shares in issue increased to 850.28 million from 831.25
million, with total issued capital on 30 June 2023 increasing to 866.40 million shares. During FY2023,
Implats issued 16.18 million shares with a fair value of R2.6 billion, in part consideration for the additional
18.6% stake acquired in RBPlat.
The Group generated R14.2 billion in free cash flow, after capital investment of R11.4 billion at its
managed operations and ended the period with net cash after debt of R25.3 billion and liquidity
headroom of R37 billion. The board of directors of Implats (board) declared a final dividend of 165 cents
per share, bringing the total dividend for the year to 585 cents per share.
Prospects and outlook
There have been several revisions to forecast PGM supply and demand in 2023. Primary supplies
continue to be challenged by the South African operating environment, while processing maintenance
will result in lower refined Russian supplies. Forecasts for secondary flows continue to be downgraded
as scrap collections fall short of expectations in the face of rising interest rates, increased regulatory
scrutiny and still-weak new vehicle sales.
While expectations for auto production and sales have enjoyed modest upgrades, forecasts for net metal
demanded by industrial users have been adjusted down to account for the destocking of inventory.
Negative revisions to the outlook for Chinese jewellery demand have largely been countered by a
stronger-than-expected performance in India, the US and Europe.
Our forecasts indicate fundamental deficits for each of the PGMs in 2023. However, the potential impact
and pattern of industrial and auto OEM destocking, particularly in rhodium, and the flow of discounted
metal flows from Russia will likely heavily influence physical market tightness, and hence pricing, during
the year.
The uncertain macroeconomic environment and the recent material decline in dollar PGM pricing
heralded a period of rapid margin compression across the sector, which requires decisive action and
focus to preserve business sustainability. Implats remains focused on delivering consistent and safe
production, constructively collaborating with key stakeholders and entrenching operational agility and
flexibility.
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It is imperative that each operation generates positive margins through the cycle. The Group is
advancing targeted capital and cost interventions in response to the current market conditions. Implats
will sustain investment across projects key to ensuring regulatory compliance and strategic value
creation. The commitment is to prioritise shareholder returns, with a dividend policy founded on a
minimum allocation of free cash flow generated before growth capital.
The near-term focus at RBPlat is to optimise costs, improve metallurgical performance, complete the
Styldrift ramp-up, and plan and implement the medium- and longer-term initiatives to realise the
synergies provided by the acquisition.
The downturn in palladium pricing compounded margin compression from structural changes in the
operating and cost context faced by Impala Canada, largely due to the aftermath of Covid-19 and the
subsequent supply-chain constraints, labour market tightness and hyper-inflationary pressures from
rising global utility and consumables pricing. Teams are working to secure a sustainable value
proposition for the asset, underpinned by the volume gains and operating momentum established in
FY2023 — specifically targeting mining from higher-grade areas.
Group production in FY2024 will be supported by volume gains from increased milling capacity at
Zimplats and Two Rivers, while the improved operational stability established at Impala Rustenburg and
Impala Canada bodes well for further efficiency gains. Concentrate volumes from RBPlat will materially
alter the production profile for the Group, while third-party receipts reflect expected volumes from pre-
existing contracts at IRS. Refined volumes will be impacted by the planned rebuild of Number 5 furnace,
with Group sales in line with refined and saleable production.
Group 6E refined production is expected to be between 3.30 and 3.45 million ounces. Group unit costs
are forecast to rise by between 6% and 10% to between R21 000 per ounce and R22 000 per ounce on
a stock-adjusted basis. Group capital expenditure is forecast to be between R12.5 billion and R13.5
billion, inclusive of growth capital of between R3.0 billion and R3.5 billion. This guidance assumes
exchange rates of R18.25/US$ and C$1.34/US$, respectively.
The financial information on which the above-mentioned prospects and outlook is based has not been
audited nor reported on by Implats’ external auditors.
Key financial metrics
Year ended Year ended Variance
30 June 2023 30 June 2022 %
Revenue (Rm) 106 594 118 332 (9.9)
Gross profit (Rm) 22 338 41 285 (45.9)
EBITDA* (Rm) 36 002 53 375 (32.5)
Profit for the year (Rm) 6 178 33 139 (81.4)
Basic earnings (Rm) 4 905 32 049 (84.7)
Headline earnings (Rm) 18 801 32 028 (41.3)
Free cash flow* (Rm) 14 171 28 840 (50.9)
Net cash (excluding leases) (Rm) 25 347 26 505 (4.4)
Basic earnings per share (cps) 577 3 856 (85.0)
Headline earnings per share (cps) 2 211 3 853 (42.6)
Dividends per share (cps) 585 1 575 (62.9)
*Non-International Financial Reporting Standards metrics
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Operating statistics
Year ended Year ended Variance
30 June 2023 30 June 2022 %
Gross refined production
6E (000oz) 2 958.7 3 086.6 (4.1)
Platinum (000oz) 1 359.5 1 426.1 (4.7)
Palladium (000oz) 1 050.5 1 071.4 (2.0)
Rhodium (000oz) 169.3 180.7 (6.3)
Nickel (tonnes) 14 970 16 520 (9.4)
Sales volumes
6E (000oz) 2 973.0 3 146.8 (5.5)
Platinum (000oz) 1 408.1 1 492.6 (5.7)
Palladium (000oz) 1 047.4 1 087.6 (3.7)
Rhodium (000oz) 167.8 177.3 (5.4)
Nickel (tonnes) 10 902 13 094 (16.7)
Prices achieved
Platinum (US$/oz) 962 1 008 (4.6)
Palladium (US$/oz) 1 763 2 211 (20.3)
Rhodium (US$/oz) 11 696 16 544 (29.3)
Nickel (US$/t) 23 864 21 150 12.8
Consolidated statistics
Average rate achieved (R/US$) 17.68 15.22 16.2
Closing rate for the period (R/US$) 18.85 16.27 15.9
Revenue per 6E ounce sold (US$/oz) 2 035 2 481 (18.0)
Revenue per 6E ounce sold (R/oz) 36 118 37 703 (4.2)
Tonnes milled ex-mine* (000t) 23 883 22 363 6.8
Group 6E production (000oz) 3 245.6 3 188.7 1.8
Capital expenditure* (Rm) 11 510 9 081 (26.7)
Group unit cost per 6E ounce
(stock adjusted)* (R/oz) 19 834 17 364 (14.2)
Group unit cost per 6E ounce
(stock adjusted)* (US$/oz) 1 116 1 141 2.2
*Managed operations
DECLARATION OF DIVIDEND
Shareholders are advised that the board has resolved to declare a final gross cash dividend of 165.0
cents per ordinary share amounting to R1.49 billion at the date of declaration, for the financial year
ended 30 June 2023. In terms of the approved dividend policy, a minimum dividend of 30% of free cash
flow pre-growth capital should be declared. The board has the discretion to vary this percentage
depending on the current and forecast financial performance, as well as market and other factors,
including sufficiently capitalising the business to allow the Group to take advantage of future value-
accretive growth opportunities. The dividend has been declared from retained earnings.
Implats has 903 416 075 ordinary shares in issue and the Company’s tax reference number is
9700178719. The cash dividend will be subject to a 20% dividend withholding tax for shareholders who
are not exempt from, or do not qualify for, a reduced rate of withholding tax. Therefore, the net dividend
amount is 132.0 cents per ordinary share for shareholders liable to pay the dividend withholding tax and
165.0 cents per ordinary share for shareholders exempt from dividend withholding tax. Shareholders
are advised to complete the requisite declaration form to make the Company aware of their tax status.
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The salient dates are as follows:
Declaration date Thursday, 31 August 2023
Last day for trading to be eligible for cash dividend Tuesday, 19 September 2023
Trading ex-dividend commences Wednesday, 20 September 2023
Record date Friday, 22 September 2023
Dividend payment date Tuesday, 26 September 2023
Share certificates may not be dematerialised or rematerialised between Wednesday,
20 September 2023 and Friday, 22 September 2023, both days inclusive.
Short form announcement
This announcement is a summary of the Group’s audited summarised consolidated annual results for
the year ended 30 June 2023 (“Results Announcement”) and, as such, does not contain full or complete
details. Any investment decisions should be based on consideration of the Results Announcement.
Deloitte & Touche, the external auditors, have issued an unmodified audit opinion, which includes key
audit matters on the consolidated annual financial statements. The audit opinion, which contains key
audit matters, together with the annual consolidated financial statements, are available on Implats’
website at https://www.implats.co.za/corporate-reports-results-and-presentations.php and copies are
available on request from the company secretary at investor@implats.co.za.
This announcement is not audited but is extracted from the audited Results Announcement.
The full announcement is available on Implats’ website at www.implats.co.za and on the JSE’s website
at https://senspdf.jse.co.za/documents/2023/jse/isse/IMPE/ye2023.pdf.
This short form announcement is the responsibility of the board.
Queries :
Johan Theron
E-mail : johan.theron@implats.co.za
T : +27 (0) 11 731 9013
M : +27 (0) 82 809 0166
Emma Townshend
E-mail : emma.townshend@implats.co.za
T : +27 (0) 21 794 8345
M : +27 (0) 82 415 3770
Alice Lourens
E-mail : alice.lourens@implats.co.za
T: +27 (0) 11 731 9033
M: +27 (0) 82 498 3608
31 August 2023
Johannesburg
Sponsor to Implats
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
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