Impala Platinum update for the year ended 30 June 2023

Implats says the operating environment in FY2023 was typified by continuing headwinds, and regional power constraints provided a notable impediment to operational continuity and delivery. While input pricing across key consumables eased in the latter half of FY2023, rand depreciation persisted, limiting the benefit to our South African operations, and adversely impacting the translated dollar cost and capital base of our Zimbabwean and Canadian assets.

Gross Group 6E production increased by 2% to 3.25 million 6E ounces from 3.19 million 6E ounces for the year ended 30 June 2022 (the “comparative period”).

Production from managed operations increased by 6% to 2.42 million 6E ounces:

• Impala Rustenburg increased production by 3% to 1.23 million stock-adjusted 6E ounces despite the severity and frequency of load curtailment impacting operational continuity.
• Zimplats benefitted from the commissioning of the third concentrator at the end of Q1 FY2023 and, despite the impact of lower grade and regional power disruptions, delivered a 5% increase in 6E matte production to 611 000 ounces.
• Operating momentum at Marula was negatively impacted by sporadic community unrest in the second half of the period, compounded by the impact of load curtailment resulting in a 7% decline from the record production achieved in FY2022, to deliver 6E concentrate production of 241 000 ounces.
• Impala Canada delivered a 17% gain in 6E concentrate production to 291 000 ounces, with increased throughput of higher-grade underground ore.
• A maiden contribution of 43 000 6E ounces in concentrate from RBPlat was recorded for the 30 days to 30 June 2023.
• PGM production post the precious metals refinery, adjusted for any increase (added) or decrease (deducted) in smelting and refining lock-up
• PGM production post the smelter ahead of the base metal refinery, unadjusted for further processing recoveries
• PGM production post the concentrator ahead of the smelter, unadjusted for further processing recoveries

Production from joint ventures (“JVs”) declined by 1% to 541 000 6E ounces:

• Two Rivers recorded a 2% decline in 6E in concentrate production to 295 000 ounces, due to safety stoppages, intermittent localised community and power disruptions, and the ongoing impact of split-reef and development tonnage on milled grade.
• At Mimosa, 6E in concentrate volumes declined by 1% to 245 000 ounces. Processing and plant stability was impacted by the commissioning and optimising of the concentrator project, power interruptions, changes in reagent supply and poor water quality.

Concentrate receipts from third parties 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.

The Group manages the lower stages of load curtailment by reducing power to its furnaces and concentrators, with mining and hoisting volumes impacted at higher stages. These mitigating actions result in a combination of “foregone” and “deferred” production volumes. In addition to load curtailment at South African managed and JV operations during the period, severe loadshedding was experienced across the Zimbabwean national grid in March 2023, while operations at Mimosa were impacted by further intermittent power outages in May and June. In total, the Group estimates circa 36 000 6E ounces of production were foregone across southern African managed and JVoperations during the period, of which 28 000 6E and 8 000 6E ounces were attributable to Impala Rustenburg and the Zimbabwean operations, respectively. Circa 101 000 6E ounces were deferred as result of 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.

Gross refined and saleable volumes declined by 4% to 2.96 million 6E ounces and Implats ended FY2023 with excess inventory of approximately 245 000 6E ounces.

Sales volumes declined by 6% to 2.97 million 6E ounces, with limited destocking of refined metal inventories from an already reduced FY2022 base. Softer US dollar basket pricing was partially offset by the rand exchange rate weakening by 16%, resulting in a 4% decline in Group sales revenue to circa R36 120 per 6E ounce sold.

Group unit costs per 6E ounce are expected to increase to circa R19 840 on a stock-adjusted basis due to persistent inflationary pressures, which were exacerbated by the impact of rand depreciation on the translated dollar cost base of Zimplats and Impala Canada.