Impala Platinum : Implats Interim Results H1 FY2022

Creating a better future

Condensed consolidated interim results (reviewed)

for the six months ended 31 December 2021

Forward looking and cautionary statement

Certain statements contained in this disclosure, other than the statements of historical fact, contain forward looking statements regarding Implats' operations, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum industry, expectations regarding metal prices, production, cash costs and other operating results, growth prospects and the outlook of Implats' operations, including the completion and commencement of commercial operations of certain of Implats' exploration and production projects, its liquidity and capital resources and expenditure and the outcome and consequences of any pending litigation, regulatory approvals and/or legislative frameworks currently in the process of amendment, or any enforcement proceedings. Although Implats believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Accordingly, results may differ materially from those set out in the forward looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metal prices, levels of global demand and exchange rates and business and operational risk management. For a discussion on such factors, refer to the risk management section of the Company's integrated annual report. Implats is not obliged to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the dates of the integrated annual report or to reflect the occurrence of unanticipated events.

Disclaimer: This entire disclosure and all subsequent written or oral forward looking statements attributable to Implats or any person acting on its behalf are qualified by caution. Recipients hereof are advised this disclosure is prepared for general information purposes and not intended to constitute a recommendation to buy or offer to sell shares or securities in Implats or any other entity. Sections of this disclosure are not defined and assured under IFRS, but included to assist in demonstrating Implats' underlying financial performance. Implats recommends that you address any doubts in this regard with an authorised independent financial adviser, stockbroker, tax adviser, accountant or suitably qualified professional.

March 2022

Johannesburg

Sponsor to Implats

Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Key features

Implats is a leading producer of platinum group metals (PGMs) structured around six mining operations and Impala Refining Services, a toll refining business.

Our 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.

The metals we produce are the key to making many industrial, medical, and electronic items, and they contribute to a cleaner, greener world.

Health and safety

• Six fatal injuries occurred in the period - five at managed operations (6 and 16 shafts)
• 21% improvement in the LTIFR to 3.88 from FY2021
• 6% deterioration in the TIFR to 10.45 from FY2021
• 88% of employees, including contractors, are fully vaccinated (100% at the Zimbabwean and Canadian operations)

Financial

• Robust earnings and free cash flow generation, restrained by operational challenges and elevated inflation
• Gross profit of R17.9bn and EBITDA of R24.0bn declined by 20% and 4%, respectively
• Headline earnings of R13.8bn (-4%) and headline earnings per share of 1 690c (-9%)
• Free cash flow of R15.1bn and closing net cash (excluding leases) of R18.5bn
• Acquisition of a 35.3% shareholding in RBPlat
• Interim dividend of 525c per share declared

Operational

• Period impacted by extended safety stoppages, industrial action and intermittent power provision in South Africa and a shortage of critical skills in Canada
• 4% decline in mine-to-market 6E concentrate production to 1.43Moz
• 4% decrease in third-party 6E receipts to 188koz
• 5% decrease in refined 6E production to 1.62Moz
• 6E sales volumes declined by 5% to 1.55Moz
• Group unit costs per 6E ounce increased by 17% to R16 756/oz on a stock-adjusted basis
• Consolidated Group capital expenditure of R3.6bn

Market

• Confidence in elevated PGM strength
• Tightening in palladium and rhodium expected
• Platinum vulnerable to changing investor sentiment

IMPLATS  -  CONDENSED CONSOLIDATED INTERIM RESULTS (REVIEWED) FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

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Operating statistics

			Six months		Six months
			to		to
			31 December		31 December	%
			2021		2020		Change
Gross refined production
6E	(000oz)	1 616.6		1 694.2	(4.6)
Platinum	(000oz)	759.6		787.0	(3.5)
Palladium	(000oz)	551.2		576.4	(4.4)
Rhodium	(000oz)	92.6		102.5	(9.7)
Nickel	(tonnes)	8 223		7 989	2.9
IRS metal returned (toll refined)
6E	(000oz)	0.3		0.2	50.0
Platinum	(000oz)	-		-		-
Palladium	(000oz)	0.3		-		-
Rhodium	(000oz)	-		0.1	(100.0)
Nickel	(tonnes)	1 863		2 141	(13.0)
Sales volumes
6E	(000oz)	1 545.7		1 621.4	(4.7)
Platinum	(000oz)	741.0		691.8	7.1
Palladium	(000oz)	529.5		580.4	(8.8)
Rhodium	(000oz)	84.3		103.8	(18.8)
Nickel	(tonnes)	6 111		5 811	5.2
Prices achieved
Platinum	(US$/oz)	1 022		915	11.7
Palladium	(US$/oz)	2 200		2 265	(2.9)
Rhodium	(US$/oz)	16 036		12 454	28.8
Nickel	(US$/t)	18 476		14 351	28.7
Consolidated statistics
Average rate achieved	(R/US$)	15.00		16.22	(7.5)
Closing rate for the period	(R/US$)	15.94		14.67	8.7
Revenue per 6E ounce sold	(US$/oz)	2 417		2 197	10.0
Revenue per 6E ounce sold	(R/oz)	36 230		35 635	1.7
Tonnes milled ex-mine*	(000t)	11 301		11 789	(4.1)
6E in concentrate production	(000oz)	1 616		1 684	(4.0)
Group unit cost per 6E ounce stock adjusted	(R/oz)	16 756		14 292	(17.2)
Group unit cost per 6E ounce stock adjusted	(US$/oz)	1 114		879	(26.7)
Capital expenditure	(Rm)	3 568		2 667	(33.8)
Stay in business capital	(Rm)	2 745		2 103	(30.5)
Replacement capital	(Rm)	584		555	(5.2)
Expansion capital	(Rm)	239		9	(>100)

* Managed operations.

2	IMPLATS  -  CONDENSED CONSOLIDATED INTERIM RESULTS (REVIEWED) FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

Financial statistics

			Six months		Six months
			to		to
			31 December		31 December	%
			2021		2020		Change
Financial performance
Revenue	(Rm)	55 620		58 121	(4.3)
Gross profit	(Rm)	17 945		22 366	(19.8)
EBITDA**	(Rm)	23 992		25 064	(4.3)
Profit for the period	(Rm)	14 383		25 417	(43.4)
Basic earnings	(Rm)	13 838		25 078	(44.8)
Headline earnings	(Rm)	13 814		14 441	(4.3)
Free cash flow**	(Rm)	15 149		20 145	(24.8)
Net cash (excluding leases)	(Rm)	18 537		20 282	(8.6)
Basic earnings per share	(cps)	1 693		3 222	(47.5)
Headline earnings per share	(cps)	1 690		1 855	(8.9)
Dividends per share	(cps)	525		1 000	(47.5)

• Non-InternationalFinancial Reporting Standards metric.

ESG indicators

		Six months		Six months
		to		to
		31 December		31 December		Variance
		2021		2020	%
Fatalities	(count)	5		-		-
TIFR***	(pmmhw)	10.45		9.34	(12)
LTIFR***	(pmmhw)	3.88		5.13	24
Labour including capital*	(number)	58 047		53 384	9
Level 4 or 5 environmental
incidents	(count)	-		-		-
Level 3 environmental incidents	(count)	2		3	33
Water consumption	(kilolitres/tonnes milled)	20		1.9	5
Water recycled/reused	(%)	51		47	16
Energy consumption	(GJ/tonnes milled)	0.89		0.83	7
Scope 1 and 2 carbon emissions	(tonnes CO2/tonnes milled)	0.16		0.17	6
* Managed operations.
***Per million man-hours worked.

Additional statistical information is available on the Company's website, www.implats.co.za

IMPLATS  -  CONDENSED CONSOLIDATED INTERIM RESULTS (REVIEWED) FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

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