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” or “the Group”)

PRELIMINARY SUMMARISED CONSOLIDATED ANNUAL RESULTS FOR THE FINANCIAL
YEAR ENDED 30 JUNE 2022 AND CASH DIVIDEND DECLARATION

Key features for FY2022:

▪   Regrettably, seven fatal injuries recorded at managed operations
▪   14% improvement in LTIFR* to 4.21 and 1% improvement in TIFR* to 9.76
▪   R4.3bn allocated over next five years to energy security and decarbonisation
▪   MSCI ESG rating upgraded to ‘A’ from ‘BBB’
▪   Five-year wage agreement secured for South African operations
▪   4% decrease in gross 6E concentrate volumes to 3.17Moz
▪   4% decline in 6E sales volumes to 3.15Moz
▪   Group unit costs per 6E rose 17% to R17 364/oz (stock-adjusted)
▪   Consolidated Group capital expenditure of R9.1bn
▪   4% increase in attributable 6E Mineral Reserves to 55.7Moz
▪   Dollar revenue per 6E ounce sold down 4% to US$2 481/oz on softer rhodium and palladium
    prices
▪   Rand revenue per 6E ounce sold decreased by 4% to R37 703/oz
▪   EBITDA of R53.4bn with headline earnings of R32.0 billion or 3 853c per share
▪   Robust free cash flow of R28.8bn with closing net cash of R26.5bn
▪   48% of free cash flow allocated to shareholder returns through cash dividends
▪   38% holding in RBPlat secured by year end
▪   Final dividend of 1 050c per share, bringing total FY2022 dividend to 1 575c per share
▪   Tightening markets for palladium and rhodium to provide pricing support in the medium term
▪   Platinum prospects remain muted in the near term, but growing momentum for hydrogen
    economy
▪   Auto production recovery and investment in industrial capacity counter uncertain macro-
    economic outlook.
*per million man-hours worked


Commentary

In a period typified by increasing global macro-economic headwinds, escalating geopolitical
conflict, and several localised challenges, Implats continued to reap the benefit of elevated metal
pricing, albeit off the record levels achieved in the prior comparable period. During the year, the
Group advanced a suite of ambitious organic growth projects, pursued value-accretive acquisitive
growth, concluded an historic wage agreement, strengthened its organisational flexibility,
contributed to the socio-economic improvement of mine-host communities and shared significant
value with its stakeholders.

Despite lower received rand PGM pricing and sales volumes, Implats delivered strong earnings
and free cash flow in the year ended 30 June 2022. This was achieved while navigating numerous
operational challenges, including rising input costs, constrained supply chains and labour market
tightness, the impacts of which were compounded by extended safety stoppages, intermittent
power supply and periods of community unrest.
Safety
Safe production is non-negotiable. Ensuring the safety of employees and contract workers is
essential to delivering on Implats’ commitment to zero harm. It is with deep regret that Implats
reports a retracement in safety performance, with five fatal incidents resulting in seven fatalities
at managed operations. This retracement comes despite the 14% improvement in the reported
lost time injury frequency rate and 12 out of the Group’s 17 operations finishing the year with
millionaire or multi-millionaire status in terms of fatality free shifts.
Operational summary

6E concentrate production at managed operations decreased by 4% to 2.27 million ounces, while
6E concentrate production from JV operations declined by 2% to 548 000 ounces as Implats
navigated several operating challenges. Third-party 6E concentrate receipts decreased by 2% to
351 000 ounces. In aggregate, total 6E concentrate production decreased by 4% to 3.17 million
ounces.

Group refined 6E production of 3.09 million ounces decreased by 6%, negatively impacted by
lower concentrate production and the extended maintenance required on the Number 3 furnace
at Impala Rustenburg. Refined volumes in the prior comparable period benefitted from increased
availability of processing capacity due to the timing of annual processing maintenance.

Inflationary pressures from energy and consumables were compounded by the additional
headcount across the Group and the payment of the previously signalled discretionary employee
bonus in recognition of the strong financial performance in FY2021. Total cash operating costs
increased by 12%, with the impact of lower mined and refined volumes resulting in a 17% increase
in unit costs to R17 364 per 6E ounce on a stock-adjusted basis.

Financial summary
Implats continued to deliver robust EBITDA, earnings and free cash flow in FY2022 despite lower
rand PGM pricing and operational headwinds. Implats’ strong and flexible balance sheet allowed
the Group to pursue value-accretive organic and acquisitive growth, while maintaining its stated
commitment to sustainable shareholder returns.
Revenue decreased by 9% to R118.3 billion, the cost of sales was 1% higher at R77 billion, and
gross profit declined by 23% to R41.3 billion. Group EBITDA of R53.4 billion was achieved at an
EBITDA margin of 45%.
In the prior period, Implats accounted for two significant once-off, non-cash items: an impairment
reversal of R14.7 billion; and a R1.5 billion IFRS BEE charge relating to the restructuring of
Marula’s BEE debt, which was included in other expenses and impacted reported basic earnings.

Basic earnings declined to R32.0 billion or 3 856 cents per share, from R47.0 billion or 5 996 cents
per share. Headline earnings of R32.0 billion or 3 853 cents per share were 12% and 17% lower,
respectively. The weighted average number of shares in issue increased to 831.25 million from
784.43 million, with total issued capital at 30 June 2022 increasing to 850.22 million shares,
including treasury shares. Implats issued 32.95 million shares, with a fair value of R6.5 billion, in
part consideration for the 37.83% stake acquired in RBPlat.
The Group generated R28.8 billion in free cash flow, after capital investment of R9.1 billion at its
managed operations, and ended the period with net cash (after debt) of R26.5 billion. The board
of directors declared a final dividend of 1 050 cents per share, bringing the total dividend for the
year to 1 575 cents per share.

Market summary

2022 has seen several revisions to forecast PGM demand and supply: supplies will be impacted
by operational challenges at South African and North American operations, refined volumes will
be affected by required maintenance at several major processing complexes, and the pattern of
Russian sales is complicated by the potential impact of restrictions on routes to market.

From a demand perspective, auto volumes have been downgraded by the lingering impact of
supply chain challenges, the lockdown in China in the first six months of the year and the
deteriorating outlook for global growth, in Europe in particular. Industrial demand is expected to
soften off the high base of 2021 and a weaker Chinese jewellery market will offset growth
elsewhere.

Group forecasts indicate tight rhodium and palladium markets and continued surpluses in the
platinum market in 2022.

Prospects and outlook

Macro-economic uncertainty, inflationary pressures and geopolitical challenges are likely to persist
in FY2023 and the Group remains vigilant in timeously assessing and responding to the risks this
uncertain environment presents to its people, operations and the implementation of its strategy.

The operational focus in the near term will be the re-establishment of positive operational
momentum at Impala Canada and Impala Rustenburg, the ramp-up of installed milling capacity at
Zimplats and Two Rivers, and the timeous and cost-effective advancement of the Group’s
significant suite of life-of-mine extension and growth projects across its mining and processing
assets.

Implats continues to proactively pursue the conclusion of the offer process associated with the
proposed acquisition of RBPlat, with a key focus on securing outstanding regulatory approval from
the Competition Tribunal.

PGM pricing remains robust, and the Group has retained a strong and flexible balance sheet which
provides a meaningful underpin to its ability to withstand short-term headwinds and fluctuations in
consumer and industrial demand, while pursuing its capital investment programme and sustaining
attractive shareholder returns.
Key financial metrics

                                                                       Year ended 30 June        Year ended 30 June
                                                                                     2022                      2021
 Revenue                                                    Rm                    118 332                   129 575
 Gross profit                                               Rm                     41 285                    53 455
 EBITDA*                                                    Rm                     53 375                    61 442
 Profit for the year                                        Rm                     33 139                    47 855
 Basic earnings                                             Rm                     32 049                    47 032
 Headline earnings                                          Rm                     32 028                    36 359
 Free cash flow*                                            Rm                     28 840                    38 304
 Net cash (excluding leases)                                Rm                     26 505                    23 473
 Basic earnings per share                                  cents                    3 856                     5 996
 Headline earning per share                                cents                    3 853                     4 635
 Dividends declared
 Interim                                                    cps                      525                      1 000
 Final                                                      cps                     1 050                     1 200
 Total                                                      cps                     1 575                     2 200
*Non-International Financial Reporting Standards metrics

Operating statistics
                                                                                Year ended 30         Year ended 30
                                                                                   June 2022             June 2021
 Gross refined production
 6E                                                                 (000oz)            3 086.6              3 270.6
 Platinum                                                           (000oz)            1 426.1              1 516.6
 Palladium                                                          (000oz)            1 071.4              1 121.4
 Rhodium                                                            (000oz)             180.7                 193.4
 Nickel                                                            (tonnes)            16 520                15 443

 Sales volumes
 6E                                                                 (000oz)            3 146.8              3 274.4
 Platinum                                                           (000oz)            1 492.6              1 396.5
 Palladium                                                          (000oz)            1 087.6              1 092.8
 Rhodium                                                            (000oz)             177.3                 200.2
 Nickel                                                            (tonnes)            13 094                13 111

 Prices achieved
 Platinum                                                          (US$/oz)             1 008                 1 043
 Palladium                                                         (US$/oz)             2 211                 2 419
 Rhodium                                                           (US$/oz)            16 544                17 610
 Nickel                                                             (US$/t)            21 150                15 621

 Consolidated statistics
 Average rate achieved                                             (R/US$)              15.22                 15.26
 Closing rate for the period                                       (R/US$)              16.27                 14.32
 Revenue per 6E ounce sold                                           (R/oz)            37 703                39 478
 Revenue per 6E ounce sold                                         (US$/oz)             2 481                 2 587
 Tonnes milled ex-mine*                                              (000t)            22 363                23 210
 Gross 6E concentrate receipts                                      (000oz)            3 170.6              3 291.9
 Capital expenditure*                                                  (Rm)              9 081                6 437
 Group unit cost per 6E ounce stock-adjusted*                        (R/oz)            17 364                14 840
 Group unit cost per 6E ounce stock-adjusted                       (US$/oz)             1 141                   964
*Managed operations
DECLARATION OF DIVIDEND

Shareholders are advised that the board has resolved to declare a final gross cash dividend of
1 050 cents per ordinary share, amounting to R8.9 billion at the date of declaration, for the financial
year ended 30 June 2022. The dividend has been declared from retained earnings.

Implats has 850 702 822 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 840 cents per ordinary share for shareholders liable to pay the dividend
withholding tax and 1 050 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.

The salient dates are as follows:

Declaration date                                               Thursday, 1 September 2022
Last day for trading to be eligible for cash dividend          Tuesday, 20 September 2022
Trading ex-dividend commences                                  Wednesday, 21 September 2022
Record date                                                    Friday, 23 September 2022
Dividend payment date                                          Monday, 26 September 2022

Share certificates may not be dematerialised or rematerialised between Wednesday,
21 September 2022 and Friday, 23 September 2022, both days inclusive.
Short form announcement

This announcement is a summarised version of the Group’s full announcement and, as such, it
does not contain full or complete details pertaining to the Group’s results. Investment decisions
should be made after considering the full 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 www.implats.co.za.

This announcement is not audited but is extracted from the audited results

The financial information on which the above-mentioned prospects and outlook is based has not
been audited and reported on by Implats’ external auditors.

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/2022/jse/isse/IMPE/ye2022.pdf.

The full announcement is also available for inspection, at no charge, at our registered office
(2 Fricker Road, Illovo) and the office of our sponsor (Nedbank Corporate and Investment
Banking, 135 Rivonia Road, Sandton) from 09:00 to 16:00 weekdays. A copy of the full
announcement may also be requested from the company secretary at investor@implats.co.za.

This short form announcement is the responsibility of the board of directors.
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

1 September 2022
Johannesburg

Sponsor to Implats
Nedbank Corporate and Investment Banking, a division of Nedbank Limited