Impala Platinum : 2024 Remuneration Report

Delivering

on our purpose

REMRemuneration Report

For the year ended 30 June 2024

Contents

OUR 2024 REPORTING SUITE

Implats is committed to establishing and maintaining trust through high quality and transparent reporting that is useful to a wide variety of stakeholders:

Implats Remuneration Report 2024

1. WELCOME TO OUR 2024 REMUNERATION REPORT
2. Message from the social, transformation and remuneration committee chair

1. Remuneration report

6 PART ONE: BACKGROUND STATEMENT

1. PART TWO: REMUNERATION PHILOSOPHY AND POLICY

1. PART THREE: REMUNERATION IMPLEMENTATION REPORT

1. CONTACT DETAILS AND ADMINISTRATION

How to navigate this report

For easy navigation and cross-referencing, we have included the following icons within this report:

Information available	Information available
on our website:	elsewhere in this report

AIR

Delivering

on our purpose

AIR Annual

Integrated

Report

AFS

Delivering

on our purpose

AFS

CCR

Delivering

on our purpose

CCR Climate

Change

Report

Annual integrated report

• Reports to providers of financial capital how Implats creates, preserves or erodes value over time.

Audited annual financial statements

○ Financial statement assurance, including the audit and risk committee report and directors' report

○  Consolidated financial statements ○  Company financial statements.

Climate change report

○ Climate change risks and adaptations, decarbonisation plans and adoption of renewable energy

○  Prepared in accordance with the recommendations of the TCFD and the Johannesburg Stock Exchange (JSE) Climate Change Disclosure Guidance.

www.implats.co.za

Follow us online at www.implats.co.za

○ Direct access to all our reports available on release

○ Our website has detailed investor, sustainability and business information.

https://x.com/Implats

https://www.linkedin.com/company/impala-platinum/

https://www.youtube.com/channel/UCgshehA_JCYUeox7lCZw6bw/featured

https://www.facebook.com/implats/

ESG

Delivering

on our purpose

ESGEnvironmental,

Social and

Governance

MRMR

Delivering

on our purpose

MRMR

ESG report

• Detail on material economic, social and environmental performance and governance
• GRI G4 core compliance
• Internal reporting guidelines in line with the UN Global Compacts
• Independent assurance report.

Mineral Resource and Mineral Reserve Statement

○  Provides updated estimates and reconciliation of Mineral Resources and Mineral Reserves

○  Conforms to the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code) (2016)

○  Conforms to section 12.13 of the JSE Listings Requirements

○  Competent Persons sign-off ○  Third-party assurance.

							Notice to shareholders
						AGM
							○  Notice of annual general meeting
	on our purpose
	Delivering
							○  Form of proxy.
	AGM

							Tax transparency and economic
						TTECR
							contribution report
on our purpose
Delivering
							Prepared in accordance with GRI 207
							and provides information on Implats'
							○ Approach to tax
	TTECR
							○  Tax governance and risk management
							○  Tax numbers and performance
							○  Country-by-country tax and economic
							contribution.

Underground at Impala Rustenburg

B

Welcome to our 2024 remuneration report

Impala Platinum Holdings Limited (Implats) is a leading producer of platinum group metals (PGMs).

Implats Remuneration Report 2024

Part one

Our purpose

Our vision

Our values

To create a better future.

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

RESPECT

ºWe believe in ourselves

ºWe work together as a team ºWe take ownership of our

responsibilities

ºWe are accountable for our actions.

CARE

ºWe set each other up for success ºWe care for the environment

ºWe work safely and smartly

ºWe make a positive contribution to society.

DELIVER

ºWe play our A-game every day ºWe go the extra mile

ºWe learn, adapt and grow ºWe create a better future.

Our strategy

The six focus pillars of our strategy guide and inform the Group's goals and activities to ensure it achieves its purpose and vision. Progress on these strategic objectives is monitored through specific key performance areas. The outcomes of this strategy, relative to our capitals and stakeholders, is discussed in chapter two of this report.

Our strategic framework

Sustainable development: We aspire to deliver an industry-leading sustainability performance, producing metals that sustain livelihoods through and beyond mining, creating a cleaner and better future for all.

Operational excellence: We generate superior value for all stakeholders through modern, safe, responsible, competitive and consistent operational delivery.

Organisational effectiveness: We place people at the centre of our organisation, and engender a shared culture founded on our values to respect, care and deliver.

Optimal capital structure: We pursue value creation by sustaining and leveraging a strong and flexible balance sheet within a prudent capital allocation framework.

Competitive asset portfolio: We seek to leverage, strengthen and grow our diverse asset base through operational exposure to shallow, mechanisable orebodies.

Future focus: We sustain and grow value by supporting present and future demand drivers, creating strong customer relationships and aligning our production to evolving demand.

Part two

Part three

Contact details and administration

End of a shift at Marula

1

Implats Remuneration Report 2024

Message from the social, transformation and remuneration committee chair

We remain focused on addressing shareholder concerns and ensuring our remuneration practices are both sustainable and accountable.

On behalf of the social, transformation and remuneration (STR) committee, I am pleased to present the Implats

Group's remuneration report for the financial year ended 30 June 2024.

Part one

Part two

Dear shareholders

This report provides an overview of the work undertaken by the STR committee over this period, and how remuneration is aligned with the Company's strategic objectives. It is important to highlight that in the 2024 financial year, our share price declined by 28.76%. On 3 July 2023, the share price was R127.41, but by 28 June 2024, it had declined to R90.77. This notable drop reflects the challenging market conditions, particularly the decline in the dollar metal prices of palladium and rhodium, that declined by 39% and 63% respectively, that have affected our financial performance, resulting in a decrease in shareholder investment value and a drop in the performance-based components of

our executive remuneration. Despite this setback and our disappointing safety performance in the current year, we remain committed to zero harm and our strategic initiatives aimed at driving long-term growth and shareholder value. Given that our industry is a price taker, management focuses on sustaining the business through the cycle and therefore ensures a strong focus

on safe production, cost management, effective capital allocation and a healthy balance sheet. During FY2024 management demonstrated remarkable resilience in its ability to respond to the low-price environment whilst meeting market guidance. Despite management's efforts the Group's profitability and free cash flow generation was severely affected by the 30% drop in rand basket price. This significant decline in prices has led to margin compression and reduced profitability across the sector and negatively impacted on sector share price performances, including the Implats share price. The committee believes

that remuneration is a key driver to create desired corporate behaviours and promote a culture that supports Implats' overall goals, and that remuneration management must be implemented fairly and responsibly with a strong link between Company performance and executive pay. The achievement of the Group's strategic objectives must ensure sustainable and long-term value creation for all stakeholders.

Part three

Contact details and administration

MPHO NKELI, CHAIRPERSON

2

Message from the social, transformation and remuneration committee chair continued

In line with the King IVTM* (King IV) principles, this report is presented in three parts:

PART ONE:

Background statement

The background statement on our approach to remuneration as well as governance and the

impact of Company performance on remuneration

PART TWO:

Remuneration policy

Our remuneration philosophy and policy, especially as it relates to executive and non-executive

remuneration

PART THREE:

Implementation report

Details how our remuneration policy was applied in the past year, including disclosure of prescribed

officer remuneration

*Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.

Parts two and three will be the subject of a non-binding advisory shareholder vote at our annual general meeting (AGM) to be held on 30 October 2024. We are committed to maintaining the positive momentum from the previous AGM, where the 2023 remuneration report received notable shareholder support. Specifically, we achieved 95.25% approval for the remuneration policy and 92.32% for the implementation report, reflecting a significant improvement from the 2022 results, where the policy garnered 90.8% approval and the implementation report received 62.4%. This positive reception is particularly gratifying as the 2023 policy introduced several changes to our reward approach. The support received confirms that we are progressing in the right direction and better aligning with shareholder expectations.

We aim to sustain this standard of support by consistently providing relevant information, facilitating meaningful engagement and feedback, and ensuring that executive pay remains aligned with performance and shareholder value.

Implats Remuneration Report 2024

In the workshops at Impala Bafokeng Styldrift

Part one

Part two

Part three

Contact details and administration

3

Remuneration report

Our confidence in this year's report is bolstered by our proactive engagements with shareholders and other stakeholders, where we have carefully addressed feedback and aligned our practices with evolving expectations. We are also attentive to the recently signed Companies Amendment Act, which introduces significant regulatory changes and highlights the critical need for obtaining shareholder approval for remuneration practices. We understand the importance of complying with these requirements and are committed to ensuring our practices meet regulatory standards, thereby protecting shareholder interests and maintaining transparency.

The results attained at the AGM over the past six years are reflected in Table 1 below:

Table 1

	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
	%	%	%	%	%	%
Remuneration policy	95.25	90.77	94.37	93.52	89.36	94.27
Implementation report	92.32	62.44	59.65	95.27	90.60	78.65

Implats Remuneration Report 2024

For the year under review, Implats' safety performance was impacted by the 11 Shaft tragedy at Impala Rustenburg in November 2023, in which 13 employees regrettably lost their lives, and 73 others were injured in an accident involving a personnel conveyance. A further six employees lost their lives in unrelated incidents at managed operations, bringing the Group's total fatalities to 19 for FY2024 (FY2023: five, FY2022: seven). Consequently, Implats' fatal injury frequency rate (FIFR) deteriorated to 0.127 per million man-hours worked (FY2023: 0.040). The board and management have extended our heartfelt condolences to the families of our late colleagues, and we continue to support them through our We Care programme.

To address the regression in fatalities in FY2024, and to demonstrate accountability for our safety performance,

Part one

Part two

STR COMMITTEE FOCUS AREAS

During the year, the committee introduced and implemented changes in line with the 2023 reward policy to address the global skills shortage. These changes include adjustments to variable pay, performance metrics weightings and the incorporation of environmental, social and governance (ESG) metrics into our long- term incentive (LTI) plan. These updates are designed to attract, motivate, and retain key talent while ensuring that compensation aligns with our commitment to sustainable performance and shareholder expectations.

Due to prevailing market conditions and operational challenges, including low PGM pricing and margin compression, we were unable to implement the annual salary increases approved for middle management, executives and non-executive directors in 2023. The only adjustment made for management was an increase in medical aid rates, which aligns with bargaining unit rates. Deferring these increases was a necessary measure to achieve our cost-management targets in response to market conditions.

Despite these challenges, management and the board have steered the Company through this demanding period, ensuring business resilience and fostering sustainable growth. To remain competitive, we propose a two-pronged approach for this year's salary adjustments: a standard increase aligned with inflation and an additional adjustment to address last year's deferral (details provided in part three of the report). In our approach to salary

increases, we opt for a targeted strategy rather than identical across-the-board increases. The increment awarded to individual employees will be based on a careful assessment of factors such as individual performance, pay position relative to the market, equity targets, and the retention of key talent and critical skills. By adopting this approach, we aim to optimise the allocation

of resources and ensure our compensation strategy remains competitive, is aligned with the Company's long-term goals and addresses the challenges presented by the PGM sector.

For 2024, we do not anticipate significant structural changes to our remuneration policy except for a few enhancements detailed in Table 11 on page 19. However, we acknowledge concerns raised by shareholders regarding the application of the fatality modifier in our executive short-term incentive (STI) scheme. Specifically, there were concerns about achieving the 200% stretch performance in the FY2023 safety component - given there were five fatalities at our managed operations and one at a joint venture

- after the maximum fatality modifier of 40% was applied.

In response, the committee reviewed the fatality modifier, benchmarking our approach against industry standards with the assistance of the Remchannel reward consulting team. After thorough discussions with the executive team to explore alternative solutions, and following input from the STR committee's independent adviser, Dr Mark Bussin, a final consultation was held with members of the STR committee and the HSE committee.

management recommended a downward adjustment to the lost-time injury frequency rate (LTIFR) safety score, setting it to 0% for both the Group and Impala Rustenburg. The STR committee approved the downward adjustment. This adjustment has led

to a reduction in the overall Group performance score from

87% to 71%, and from 168% to 158% for Impala Rustenburg, thus decreasing the STI payout for executives. The adjustment underlines our dedication to improving safety standards and upholding accountability. Our people are our greatest asset, and we are steadfast in our daily commitment to ensuring that every employee returns home unharmed.

We remain focused on addressing shareholder concerns and ensuring our remuneration practices are both sustainable and accountable. We trust this report demonstrates our serious consideration of stakeholder input and our commitment to a remuneration strategy that is fair, equitable, responsible and transparent.

Our approach to safe production is focused on fostering a culture that will help us achieve our vision of zero harm. In a year marked by tragic losses, zero harm remains a business and moral imperative central to all our efforts to ensure safety and the preservation of lives. Eliminating fatalities and life-changing injuries, and improving the safety and health of our employees, are core values that we are determined to realise.

Part three

Contact details and administration

4

Remuneration report continued

The proposed changes to the fatality modifier for FY2025 and beyond are outlined in Table 2 below which aims for a more stringent approach to better align with our safety goals.

Table 2: Response to shareholder concerns

Proposed safety fatality	Details
modifier
Modifier principles	We will retain both negative and positive modifiers, though we acknowledge stakeholder concerns about the
	positive modifier. The fatality modifier is intended to ensure that leaders and executives prioritise safety and strive
	for zero harm, fostering a culture of continuous improvement.
Model adjustments	The modifier will continue to use the FIFR compared to a previous adjusted three-year-average, (the three-year-
	average for the FY2025 measurement period and beyond will exclude the 11 Shaft incident from the FIFR),
	rather than actual fatalities. This approach emphasises improvements in FIFR and maintains a focus on safety.
	The FIFR is assessed in terms of the scale of operations, risk factors, and man-hours worked, and considers the
	complexities inherent in labour-intensive mining environments.
Negative adjustments	Deterioration in the FIFR will now result in a minimum negative adjustment of 20% of the safety score (up from 10%).
Maximum negative adjustment	The maximum negative adjustment has been increased to 60% of the safety score (up from 40%).
Positive adjustments	Positive adjustments to the safety score will only be triggered if FIFR improvement exceeds 50% (up from 10%).
Maximum positive adjustment	A maximum positive adjustment of 40% will only be applied for a 100% improvement in FIFR
	(previously for improvements above 30%).

These updates aim to enhance the effectiveness of both lagging and leading safety indicators, underscoring our commitment to achieving zero harm. Part two of this report includes a comparison between the current and proposed fatality modifiers. Health and safety are top priorities for Implats' management, teams and individuals. Emphasising visible felt leadership and fostering a culture of safety are crucial for changing mindsets, improving leadership and ensuring adherence to safety practices. Our goal is to address the regrettable rise in fatal injuries and advance towards our zero-harm objective.

Implats Remuneration Report 2024

Part one

Part two

Part three

Contact details and administration

Logging cores at Two Rivers

5

Implats Remuneration Report 2024

Part one: Background statement

After serving for nine years as chairman of the Implats STR committee, I am stepping down at the end of September

2024. I thank my fellow committee members (both current and former) for their contribution and commitment over this time and for allowing me to lead them in this challenging task. Despite significant challenges, I believe we have made excellent progress. I also thank the management team for their robust engagement. The board has approved the appointment of Mr Billy Mawasha as the new chairman of the committee and I wish him everything of the best as he navigates the STR environment.

The STR committee plays a pivotal role in providing independent oversight of the Implats Group's broader human resources strategy and practices, as well as its remuneration policy and its implementation. While this report focuses on the policy and its implementation, a large part of the STR committee's work focuses on the social and transformational aspects of human resources.

We have made significant contributions to several aspects of the human resources function, including talent management, executive succession planning, social performance, employee engagement, transformation, gender mainstreaming, diversity and inclusion and management development.

Additionally, the STR committee oversees and monitors the performance of the employee retirement funds and employee housing. We believe the work being delivered in these areas of human resources is positioning the Company for sustained success and will set the foundation for the organisation of the future.

Remuneration, however, remains a key driver for employees and executive management, and appropriate governance is required. There is an increasing focus on the link between reward, performance and the attainment of the Group's strategic priorities. Failure to create alignment between these three areas could result in employees being rewarded for achieving outcomes that are not in line with the organisation's strategic priorities, or alternatively, the organisation achieving its strategic priorities but employees believing that they are not being fairly rewarded for attaining these outcomes.

OPERATIONAL PERFORMANCE

Implats delivered solid production and commendable cost control for its financial year ended 30 June 2024, despite navigating several serious challenges and a constrained operating environment characterised by macro-economic headwinds

and persistently low prices for PGMs. However, it was an extremely difficult year, requiring stringent cost cutting and labour restructuring, and with the devastating 11 Shaft tragedy still fresh in our minds.

The drive towards zero harm remains our top priority amid a year dominated by the 11 Shaft tragedy in November 2023. As a result, Implats' FIFR increased to 0.127 per million man-hours worked, up from 0.040 in FY2023. For FY2024, we regret to report a total of 19 fatalities (FY2023: five, FY2022: seven) - 13 at 11 Shaft and an additional six fatalities from unrelated incidents at managed operations. Each loss represents a profound tragedy, and we have extended our heartfelt condolences to the families and loved ones of our colleagues. In a period overshadowed by a devastating loss of life, we acknowledge the improvement in safety delivered across our managed and joint venture portfolio, which led to a 1% improvement in the LTIFR and a 10% improvement in the TIFR. We continue to pursue zero harm, and believe this goal is achievable.

Implats has critically reviewed its safety procedures and intensified measures to further embed fatal risk prevention in the operating culture at all operations. Among others, the focus areas include improving the methodology and quality of planning, enhanced early entrance examinations, accelerating fatal risk control protocols, capacitating managers and supervisors and addressing the high turnover in production critical roles. In addition, there is an increased focus on critical safe behaviours for each role, particularly those in high-risk work areas. Visible felt leadership was increased, as was on-the-job training and frontline coaching. These initiatives were further supported by a Group-wide safety summit held in November 2023, facilitated by independent third parties, and a second summit in May 2024.

Additional strategic engagements with organised labour were held in furtherance of an improved safety culture and performance.

Despite the difficulties experienced, our teams delivered to guidance and showed good cost control. Our volumes benefited from the maiden annual consolidation of Impala Bafokeng, but notable performances were achieved on a like-for-like basis (excluding Impala Bafokeng's contribution) at the Group's key mining and processing operations, with Impala Rustenburg, Impala Canada and Zimplats delivering standout results. We acknowledge the resilience and achievements of the Impala Rustenburg team, who delivered production at a three-year high despite the significant setback of the 11 Shaft tragedy and the commendable effort by the team to support the families during the difficult period. Tonnes milled at the Group's managed operations increased by 17% to 27.89 million tonnes and were up 1% on a like-for-like basis. In total, Group 6E production increased by 13% to 3.65 million ounces.

Labour restructuring at Impala Canada, Zimplats and at our managed South African operations were finalised cordially. A total of 4 200 jobs across the Group were impacted. In South Africa, a combination of natural attrition, and efforts focused on redeployment, reskilling and voluntary separation packages, ensured that no employees were forcibly retrenched.

Looking to the year ahead, our focus is on enhancing safety and eliminating fatal injuries to ensure safe and profitable production. We are committed to the long-term sustainability of the Group, its employees and host communities. We value your support and dedication and appreciate your continued efforts in advancing our business.

Full details of the Group's performance can be found in our annual integrated report. Table 3 on the following page, reflects the comparison of production output between FY2024 and FY2023.

Part one

Part two

Part three

Contact details and administration

6

Part one: Background statement continued

Table 3

		FY2024			FY2023
	Actual	Target	Achieved	Actual	Target	Achieved
Operation	000oz	000oz	%	000oz	000oz	%
Group	3 463	3 492	99.2	2 895	3 068	94.4
Impala	1 284	1 203	106.7	1 201	1 322	90.8
Impala Bafokeng	483	545	88.6	-	-	-
Marula	223	247	90.3	241	251	96.0
Zimplats	646	646	100.0	622	645	96.4
Impala Canada	281	286	98.3	291	276	105.4

It is important to note that production is only one element of our STI parameters. The full details of our STI scheme parameters are unpacked in more detail in part three of this report.

REWARD AND OUR BARGAINING UNIT EMPLOYEES

Our ESOTs facilitate economic inclusion, where employees participate in dividends declared based on the financial performance of the Company. After declaring the maiden dividend to both our Impala and Marula employee share ownership trusts (ESOTs) in FY2021, further dividend declarations were effected for both trusts in FY2022 and FY2023. In FY2024 a total of R168 million was distributed to Impala ESOT beneficiaries.

Following Royal Bafokeng Platinum (RBPlat) delisting in October 2023, an accelerated payout of the existing ESOP was required. In response, the Impala Bafokeng employees opted to establish a new ESOT to replace the previous ESOP. As a result, the ESOP distributed R326 million to circa 11 000 beneficiaries. The new Impala Bafokeng ESOT, which holds 4% ownership in Impala Bafokeng Resources (Pty) Ltd, a wholly owned subsidiary of Impala Bafokeng, will benefit all Impala Bafokeng's eligible permanent employees and volume contractors providing services at the mines when the dividend is declared.

STR COMMITTEE COMPOSITION AND RESPONSIBILITIES

The STR committee is a sub-committee of the Implats board and comprises the following non-executive directors:

Table 4
Name	Status	Attendance
Ms Mpho Nkeli (chairperson)	Independent non-executive	5/5
Adv Thandi Orleyn	Independent non-executive	5/5
Ms Boitumelo Koshane	Non-executive	5/5
Mr Billy Mawasha	Independent non-executive	5/5
Mr Preston Speckmann	Independent non-executive	5/5
Mr Bernard Swanepoel	Independent non-executive	5/5

Implats Remuneration Report 2024

The non-executive directors, the CEO, the CFO and the Group executive: people are permanent invitees to the STR committee meetings but do not participate in discussions relating to their own remuneration. Dr Mark Bussin, from 21st Century Consultants, is the independent remuneration adviser to the committee and is a permanent invitee to committee meetings. Remuneration teams from PwC and Remchannel consult on remuneration policy and governance matters and, where appropriate, may be invited to attend committee meetings.

The STR committee's responsibility is to ensure executive remuneration is aligned with the Group's strategy and to deliver long-term sustainable growth in shareholder returns. The STR committee's terms of reference can be found here: https:// www.implats.co.za/pdf/annual-reports/annual-integrated- report/2024/str-report-2024.pdf

PROGRESS ON OUR REMUNERATION JOURNEY

Our approach to fair pay

The STR committee places a key focus on ensuring that fair and responsible remuneration practices are applied across the Group and not only at executive level - all our employees deserve a living wage, and our employment policies and practices provide dignified employment. Implats' guaranteed minimum wage for permanent full-time employees remains significantly higher than a 'living wage' and our employees are also eligible for performance- based variable pay arrangements.

While there are developments in the way fair pay is analysed and reported, we engaged the PwC reward team to conduct an annual, detailed fair-pay analysis, which considers the pay gap on an organisational basis, as well as a pay differential analysis performed based on race and gender. The macro- analysis includes calculating our Gini coefficient and Palma ratio. In preparation for the Companies Amendment Act disclosures, we have conducted a pay gap analysis in line with the proposed requirements. However, we are awaiting further guidelines on the methodology for the new disclosure requirements. Once these guidelines are clarified, we will update our analysis accordingly for next year's remuneration report. In the meantime, we will continue to report the Gini coefficient and Palma ratios in the 2024 report. Part three of this report also includes a single-figure remuneration for the top earner and each director and prescribed officer, in line with King IV recommendations. We will continue to track these metrics on an annual basis and adapt to the Companies Amendment Act requirements as soon as they are clarified and

Part one

Part two

Part three

Contact details and administration

7

Implats Remuneration Report 2024

Part one: Background statement continued

implemented.

The most recent report for the calendar year 2023, published in January 2024, showed the following progression of our Gini coefficient and Palma ratios. In assessing the outcomes of the ratios, it should be considered that the number of full-time employees increased by 13% from 2022 to 2023 as a result of the acquisition of Royal Bafokeng Platinum, now called Impala Bafokeng (IB). To illustrate the inclusion of the additional employees on our fair pay ratios, we have included two ratios for 2023: the ratio excluding Impala Bafokeng, indicated in the 2023 column, and the ratios calculated including Impala Bafokeng employees, indicated in the 2023 (including IB) column.

Table 5

	2023
	(including
Measure	IB)	2023	2022	2021	2020	2019
Gini
coefficient	0.296	0.271	0.265	0.260	0.267	0.266
Mining-
specific
benchmark	0.372	0.372	0.397	0.470	0.417	0.416
National
benchmark	0.436	0.436	0.445	0.437	0.437	0.436
Palma ratio	1.192	1.099	1.045	1.053	1.082	1.074
Mining-
specific
benchmark	1.650	1.650	1.818	1.799	1.993	1.964
National
benchmark	2.262	2.262	2.363	2.385	2.245	2.235

Macro-analysis

Gini coefficient

The Gini coefficient is a statistic that shows the distribution of income among a nation's residents and can be used to analyse and measure the degree of income inequality within a company. It ranges from 0 to 1, where 0 represents total equality (ie income is distributed equally), and 1, which represents extreme inequality (ie all income is concentrated in the hands of a few individuals). Therefore, the closer the number is to 1, the higher the levels of inequality.

Figure 1

Gini coefficient

0.500

		0.470
0.436	0.445	0.437	0.436

	0.437
0.400	0.417	0.416
	0.397
	0.372

0.300 0.296

0.265	0.260	0.267	0.266

0.271

0.200

2023	2022	2021	2020	2019
Implats		Implats (including IB)
Mining-specific benchmark		National benchmark

Palma ratio

The Palma ratio was designed to serve as a metric that is over-sensitive to changes in the distribution at the extremes

(ie between top and bottom earners), rather than in the relatively inert middle. Based on research conducted by José Gabriel Palma, it was observed that, in most countries, the middle class (which is defined as the population set in the 40th to 90th percentiles) takes in around half of the total income of the entire population. Therefore, the Palma ratio provides a ratio of the total remuneration of the top 10% earners of a company compared to the total remuneration of the bottom 40% earners of the company, eliminating the impact of middle-class earners making up around half of the population.

Figure 2	Palma ratio
2.5
2.363	2.385
2.262	2.245	2.235
2
	1.993	1.964

1.818 1.799

1.5 1.650

	1.192	1.053	1.082	1.074
	1.045
1	1.099

0.5

2023	2022	2021	2020	2019
Implats		Implats (including IB)
Mining-specific benchmark		National benchmark

Based on our most recent report, the Gini coefficient regressed slightly from 2022 to 2023, from 0.265 to 0.296 and 0.271 excluding IB. The Palma ratio also regressed slightly in 2023 to 1.192 from 1.045 in 2022, and to 1.099 excluding IB. This is due to the increased number of employees and the increase in the total remuneration of the lower-level employees. As indicated in Figure 3 below, the percentage of employees earning up

to R250 000 decreased from 63% to 0% from 2018 to 2022 and remained at 0% in 2023. The percentage of employees earning between R250 001 to R500 000 increased from 27% to 80% from 2018 to 2022 and slightly regressed to 79% in 2023. The percentage of employees earning between R500 001 and R1 000 000 increased from 8% to 16%. This shift in the distribution of employees' total remuneration resulted in the slight decrease in the Gini coefficient, with an improvement in the Palma ratio. The slight regression in the Gini coefficient is largely due to the performance share plan (PSP), awarded on 1 October 2020, which vested on 1 October 2023.

Within the three-year period prior to the 2023 decline, there was a strengthening of metal prices and Implats outperformed its peer group in both the total shareholder return and the return-on-capital employed metrics, achieving maximum performance. As a result, 200% of the PSP awarded on 1 October 2020 vested. However, despite this strong performance, the share price subsequently declined by approximately 62%, affecting the vesting value of

Part one

Part two

Part three

Contact details and administration

8