Full Annual Report (PDF - 5.4MB) - Impala Platinum

Highlights of financial year 2001Financial Performance• Headline earnings double theprevious record year• Dividends more than doubled toR38 per share, plus special dividendof R30 per share• Basket of metal prices (in dollars)up 47%• Rand revenues boosted by 20%depreciation against the dollarOperational Performance• Breaking free from growthconstraints• 2 million ounces of platinumby 2006• Platinum production a new high(up 8%)• Major new projects announced• Significant strategic acquisitions• Steady production at the Impalaoperations, but disappointing costperformance• A new Chief Executive takes upthe reins.Year at a glanceRecord Year 2001 2000 % changeFinancialSales revenue (Rm) 11 969 7 004 71Operating income 6 849 3 103 121Income before taxation 7 468 3 319 125Attributable income 4 647 2 255 106Headline earnings per share (cps) 7 024 3 383 108Dividends per share 6 800 1 760 286Cash net of short-term debt 3 013 3 081 –2ProductionTotalRefined platinum production (‘000 oz) 1 291 1 199 8Pgm production refined 2 464 2 308 7ImpalaRefined platinum production 1 002 1 020 –2Pgm production refined 1 877 1 913 –2

Chairman’s letter to shareholdersGroup structureChief Executive Officer’s reviewFive year statisticsValue-added statementFinancial reviewMarket reviewReview of operationsImpala PlatinumWinnaarshoekCrocodile RiverImpala Refining ServicesStrategic holdingsExplorationReserves and resourcesCorporate responsibilityCorporate governanceGlossary of termsManagementDirectorsApproval of the annual financial statementsReport of the independent auditorsDirectors’ reportIncome statementsBalance sheetsStatements of changes in equityCash flow statementsAccounting policiesNotes to the financial statementsNotice to shareholdersShareholder informationAdministrationProxy3671419212529293537394145495358606364666768747576787984114115116117Contents

3Chairman’s letter to shareholdersDear shareholder,It is my pleasure to present to you this report ona fourth great year in a row for your company.Last year, in recording record earnings anddividends, I rather conservatively forecast "A wellpositioned group, operating strongly andgrowing well in a firmer market suggests evenbetter results next year". While all the goodpresumptions about the company did come topass, the "firmer market" which eventuatedsurprised even the most bullish among us.The extent to which the automotive industry,with its over-dependence on palladium, washostage to Russian ability to manage this marketstruck home during the year, resulting in franticactivity to secure supplies (and to build stock) atalmost any price. Palladium, which historicallyhas traded at about one third of the price ofplatinum, overtook it first in January 2000, goingon a year later to peak, in January of this year at$1 100 per ounce (a premium of 66% to theruling platinum price).Parallel activities by autocatalyst manufacturersto move back from palladium rich to platinum(and rhodium)-based catalysis gatheredmomentum during the latter part of the year.Confidence in these developments and firmerforecasts of future palladium needs resulted insubstantial consumption of their own palladiumstocks by the automotive industry, withcorrespondingly reduced buying levels in thefree market. Palladium has “come off the boil”, asthe market searches for its new equilibrium, andis now trading at a small discount once again toplatinum.The platinum market was caught up in thesentiment surrounding palladium, and while thiswas great on the way up, it is not so much funon the way down. The realities of the platinummarket in its own right should re-assertthemselves in the next few months. Thesecentre around rising autocatalyst demand, andincreased jewellery demand in China (as thedollar price falls), offset by weaker jewellerydemand in an economically depressed Japanand growth in supply from South Africa. Weanticipate these fundamentals supportinghigher long-term prices than those seen in thecurrent market.Implats has often been characterised in the pastas “resource constrained”. While the ability of ourImpala operations at Rustenburg to produce atone million ounces of platinum per year formany years to come is well known, the group’sgrowth strategy, some years in the building, isnow delivering tangible results as follows:• Owned and managed orebodies – Impala,Crocodile River, Kennedy’s Vale we already had,but now there is Winnaarshoek, the site of amajor new mine• Significant stakes in other mining companies,delivering an equity share in the mining andfull ownership of the pgm concentrates –Zimplats, Mimosa and Aquarius• A 27% equity stake in Lonplats, which is in theprocess of expanding by 25%Cents50 00045 00040 00035 00030 00025 00020 00015 00010 0005 0000Jan 98Mar 98May 98Jul 98Sep 98Nov 98Jan 99Mar 99May 99Jul 99Sep 99Nov 99Jan 00Mar 00May 00Jul 00Sep 00Nov 00Jan 01Mar 01May 01Jul 01Share price

chairman’s letter to shareholders• Partnerships with other producers deliveringfull ownership of pgm concentrates – Messina,Kroondal, Marikana and Two Rivers.The successes of this strategy are:• The implied reserve of pgms to be producedand sold by Implats has increased by 60%• The group, currently a 1.3 million ounceplatinum producer, is poised to reach 2 millionounces by 2006 (excluding our participation inLonplats’ growth).Of the business structures outlined above,owning and managing a complete orebody hasthe highest profit margins, but it is also thehighest risk and the most capital intensive. Theother businesses, from their lower profit bases,are equally dynamic when viewed from otherperspectives such as return on investment.The major disappointment of the year was oursafety performance. I regret to record theaccidental deaths of 13 of our number duringthe year, an increase of six on the previous year.After two years in a row where our fatalityfrequency rate (0.09 per million man hours) metthe international benchmark of Ontariostandards, this slippage to 0.16 has shaken theorganisation. Most perplexing is the fact that theunderlying trend of our Lost Time InjuryFrequency Rate has shown huge improvementfrom more than 20 two years ago, to 12.6 lastyear and 8.5 this year. The search for answersand for safer working conditions continues. Ourdeepest sympathies are extended to thebereaved.The financial disappointment of the year wasthe cost escalation at our Rustenburgoperations. Although total Rand costs per ounceof platinum sold increased by a respectable 7%(just about equal to inflation) on-mine costsincreased by 13% per ton milled and 16% perounce of refined platinum. Most of this is rooted:• In the need for more generous wagesettlements in more successful years, (notingthat labour accounts for more than 50% ofour costs), and• In the costs of meeting the new BasicConditions of Employment Act, and• In an alarming metallurgical performance asnew plants have struggled throughcommissioning.We are dismayed that counter-efforts andproductivity improvements have not done moreto contain the effects of the negativedevelopments (as was the case over thepreceding years). A complete review isunderway.Putting together the steady production fromImpala, the new production from CrocodileRiver, the concentrate bought in from otherminers, the buoyant market conditions, thesparkling performance of Lonplats and the 20%depreciation of the Rand, we had a year where;• Every measure of income, from operating levelthrough to attributable income, is more thandouble last year’s record.• The attributable income this year was morethan the sales revenue of two years ago – ayear that was then described as "fantastic"• The proposed dividend for the year (excludingthe special dividend of R30 paid in February) is11 times the dividend of three years ago.• The dividends for the year, including thespecial dividend, exceed the share price ofthree years ago.The challenges facing the group are theongoing and obvious one of optimising ourcurrent productive base and, from there,continuing to develop and deliver the growthpotential of the group. All this must take placewithin the ever-changing dynamics of the newSouth Africa. We have much to be proud of inour recent history in terms of labour relations,employment equity, adult education and socialupliftment, but more is required. In particular, thedraft Minerals Development bill has evokedmuch debate. Our input thus far to theDepartment of Minerals and Energy has beenaimed at the production of good law, ratherthan challenging the “use it or lose it” provisions,where we are considerably less threatened thanour competitors.

5The Royal Bafokeng Nation has taken issue withperceived threats in the draft Bill to theirhistorical rights. While we fully support theBafokeng position, it should be noted that,technically, the Bafokeng’s mineral rights, andImplats’ right to mine are two completelyseparate matters.To face all these challenges I am delighted towelcome Keith Rumble, who joined the groupas Chief Executive and Managing Director at thestart of our new financial year. Keith has joinedus after a dynamic career with Rio Tinto, whichin recent times has seen him move from beingthe Managing Director and CEO of Richards BayMinerals to being the President and CEO of itsparent company, Rio Tinto Iron and Titanium inCanada. Keith’s technical background and hisexperience in metalliferous mining andmarketing position him well for success with us.produce results quite a bit better than theprevious year, which at that time was an all-timerecord high for Implats. This is impressiveenough in itself.Based on the performance reported andanticipated, and in line with the more generousend of the dividend policy the Board hasdeclared a dividend for the year of 6 800 cents,including a final dividend of 2 380 cents, payableon 4 October 2001.Michael McMahonChairmanThe only change that occurred to the Boardduring the financial year was the departure dueto poor health of Steve Kearney as MD and CEOin September last year. Although Steve indicatedsome time previously that there were healthBOTSWANAHarareGreat DykeBulawayoZIMBABWEBushveld Complexproblems, his departure was unexpected. Over a10-year period with Implats Steve rose fromConsulting Engineer to MD and latterly to ChiefJohannesburgExecutive. He was at the very centre of theresurgence of Implats, and the Board wishes toNAMIBIArecord its appreciation of his contribution.SOUTH AFRICAThe company was fortunate to have JohnSmithies to step into the gap caused by Steve’sdeparture. John, then Operations Director, hadpreviously indicated his wish to retire early inBOTSWANACape Town2001, but agreed to continue until a long-termappointee was found. John has now retired, withNorthern Limbthe thanks of a grateful Board for the stability,energy and focus he brought to the position,and for the finalisation of so many of the growthprospects that took place during his tenure.With both the platinum and palladium marketsadjusting to structural shifts against abackground of global economic uncertainty wecan be fairly certain that these results will not berepeated next year. In all probability we willImplatsAquariusAvmin JVImpalaRustenburgKroondalWestern LimbCrocodile RiverMarikanaJohannesburgSOUTH AFRICAEastern LimbWinnaarshoekKennedy’s ValeTwo RiversEverest NorthEverest SouthN

Group structureImplats’ structure is as follows:GencorSAInstitutionsN AmericanInstitutionsEnglish & WelshInstitutionsOther & unclassified46.1%25.2%15.5%7.6%5.6%ImpalaPlatinumHoldingsLimited(Implats)1 4692 290100%✣100%83%10%45%*40%*35%27%ImpalaPlatinumPlatexcoBarplatsAquariusTwo RiversZimplatsZCE PlatinumLonplatsImpala OperationsMineral ProcessesPrecious MetalsRefineryBase MetalsRefinery1002Winnaarshoek0175Crocodile RiverKennedy’s Vale850Kroondal Platinum*14.2%Everest South*32%Everest North*32%*Marikana32%✛Dwars Rivier0110✛NgeziHartley – SMC0100✛Mimosa1668Eastern PlatinumWestern Platinum178250105081280KeyPlatinum production: (000 oz)Refined production – 2001Forecast production – 2006Attributable production from Lonplats – 2001Attributable forecast production from Lonplats – 2006100%Impala RefiningServices (IRS)289990Total attributable production – 2001Total attributable forecast production – 2006OtherProcessing and refining* Fully diluted interest✣Up to 20% to be acquired by empowermentpartnersToll refined184162Messina–55✛Post balance sheet transactions

Deliveringshareholder valueRockbolting underground at Impala’s 14 shaft.

9growth in China which offset reduced demandin Japan. Platinum benefited from increased usein autocatalysts, particularly in diesel vehiclesand growth in computer hard disc and LCDglass applications. Tightening emission controllegislation should continue to boost platinumdemand thereby ensuring a balanced market inthe short to medium term, albeit at prices lowerthan those achieved during 2001.The palladium market experienced strongdemand particularly from the automotive andelectronics sectors exacerbated by erraticsupplies from Russian sources and demandquickly exceeded supply. As a result, palladiumprices nearly doubled leading up to January2001 before retreating as more product wasreleased out of Russia towards the middle of2001. The high prices have acceleratedpalladium substitution in dental and electronicsapplications as well as the conversion back toplatinum/rhodium autocatalyst systems.Accordingly, Implat’s business plan assumesfurther weakening of palladium demand andprices.The long term oversupply forecast for palladiumwill be particularly problematic for the Russianand North American producers who collectivelyproduce around three ounces of palladium forevery ounce of platinum produced. Conversely,the South African producers only generatearound half an ounce of palladium per ounce ofplatinum produced – a distinct competitiveadvantage in the near future.Group safety a priorityThe group safety record produced a mixedresult for the year. The number of fatalitiesincreased unacceptably to 13 from the level ofseven fatalities experienced in both 1999 and2000. Our sincere condolences are extended tothe families and friends of the deceased. The losttime injury rate per million man hours, however,improved by 32% to 8.5 from the rate of 12.6reported in 2000. Fresh initiatives will clearly berequired to lift Impala’s safety performance tomatch at least best international undergroundmining practice.Operational reviewTotal platinum production, which includesmetals sourced from concentrate purchasedfrom third parties, increased by 8% to1.29 million ounces.Platinum production from the Impala lease areadecreased by 1.7% to 1 million ounces ofplatinum. Tons mined from the Impala lease areaincreased by 3.3% on the previous year whiletons milled increased by 1.2%. However, latedelivery of the new UG2 concentrator circuit bythe contractor and subsequent problemsexperienced during commissioning had anegative impact on Impala’s performance for theyear. As a result, the ore stockpile grew byaround 210 000 tons to 630 000 at year end.The smelter upgrade comprising two newconverters, the enhanced acid plant and new38MW furnace was successfully completed.However, the furnace refractories developedcracks soon after commissioning and, althoughthis did not affect smelter output in 2001, it maynecessitate premature replacement of therefractory bricks. A claim for damages has beenlodged with the supplier of the refractories.The inherent difficulties attendant oncommissioning any major project werecompounded in the case of two significantprojects during the year.• The challenges of recommissioning oldequipment at Crocodile River mine wereexacerbated by an orebody moreheterogenous than sampling had led us tobelieve.1 450• In the case of the UG2 plant expansion,1 350delivery by the contractor was a month late1 250and although the designed 30% increase in1 150capacity has been achieved, recoveries remain1 050disappointingly below those expected. This is950primarily as a result of equipment unreliability 850in the milling circuit which has prevented the 750plant from achieving steady-state production. 650The solution will most likely involve some5507 0243 3831 929804293FY97 FY98 FY99 FY00 FY01Headline earnings per share6 8001 760880350110FY97 FY98 FY99 FY00 FY01Dividends per sharecircuit re-design. 4501997 1998 1999 2000 2001Basket price – US$/oz Pt

Solomon Moatsae on a dumptruck at the open-cast operationat Impala’s Rustenburgoperations. The Impala leasearea has sufficient reserves andresources to produce just overone million ounces of platinumper annum until 2030.Growingproduction by10% a year

11Cash operating costs per platinum ouncerefined increased by 16% which is not in linewith Impala’s objective of delivering realdecreases in the cost of metal produced. Thiswas mainly as a result of mining costs incurredfor ore which was not processed and lowerrecoveries in the new UG2 circuits. An aboveinflation wage increase of 9% also had anadverse impact on costs as well as the additionalcost to the company of some 3% as a result ofcomplying with the Basic Conditions ofEmployment Act, Skills Development Levy andhigher regional services levies.To get Impala’s cash operating costs back ontrack to a level below inflation, the businessimprovement process (Fixco) was revitalised andseveral promising initiatives have beenidentified which should yield sustainablebenefits. A number of noteworthy initiativeshave already resulted in productivity increasingfrom 40m 2 to 41m 2 per employee, with a recordlevel of 43m 2 recorded in the month of June2001.Growth from mining andexplorationImplats has previously stated its objective ofgrowing production by 10% per annum.Undoubtedly 2001 will be seen as the year thatdelivery on this objective gained momentum.During this year alone the company addedalmost 37 million attributable resource ouncesof in situ platinum into its portfolio.Implats’ growth strategy comprises three paths,namely:• Mining projects and exploration;• Strategic investments; and• Processing concentrates to leverageprocessing and refining assets.• The Winnaarshoek project, one of Implats’major new ventures, is a combination of thePlatexco acquisition and mineral rights swapswith Anglo American Platinum Limited.Production is expected to commence as earlyas 2002 with full production of 175 0000ounces of platinum per annum by 2004. Theagreement with Mmakau Mining (Pty) Limitedand community-based empowermentparticipants in the Northern Province, isillustrative of Implats’ ability to bring newprojects on stream within the context of SouthAfrica’s proposed Minerals Developmentlegislation.• Barplats Mines Limited’s Crocodile River minewas brought into production duringDecember 2000. The planned mining rate of75 000 tons per month was achieved in March2001, although problems experienced withthe re-commissioning of the concentratorresulted in lower than expected pgmconcentrate production. Recovery of preciousmetals during the first four months ofoperation has been below expectations, buthas improved as operations extend into lessweathered ores. A number of mining andmetallurgical improvements are in hand inorder to ensure that the planned productionof 50 000 ounces of platinum per annum isachieved.• In its exploration strategy Implats continuesto pursue projects and joint ventures both inSouth Africa and internationally, focussing onprimary pgm projects which have thepotential to generate quality deposits. Toachieve this, Implats supports juniorexploration companies, providing funding,expertise and access to smelting and refininginfrastructure. In February 2001, Implatsentered into an alliance with internationalgroup Falconbridge to explore jointly for pgmmineralisation on five continents. This alliancehas already identified a number of prospects,with exploration beginning at Cana Brava inBrazil in mid-2001. Exploration continued atthe Kennedy’s Vale project in South Africa andthe Birch Lake and River Valley projects inNorth America.Growth from strategic investments• Delivery from Implats’ 27% stake in Lonplats interms of both production and contribution toearnings was well in excess of expectations.Lonplats is proceeding with expansions tobecome a one million ounce producer and,

CEO’S review1 4692001 2002 2003 2004 2005 2006Implats growth in platinum production■ Managed operations■ Purchased concentrate (equity stake)■ Purchased concentrate (no equity stake) and toll refining■ Attributable oz from Lonplats (27%)1 4691 5531 5531 6951 6951 9301 9302 1112 1112 2902 2902001 2002 2003 2004 2005 2006Implats growth in platinum production■ Impala ■ Barplats ■ Aquarius■ Mimosa ■ Toll refining ■ Zimplats■ Winnaarshoek ■ Two Rivers■ Attributable oz from Lonplats (27%)although capital expenditure will remain high,Implats will continue to benefit from thiscompany’s profitability.• Relationships with Aquarius (Implats 10.1%)remain strong. Kroondal was delisted from theJSE Securities Exchange in early August. Goodperformance was once again achieved atKroondal, with platinum production capacitynow increased to an annual rate of 130 000ounces. The Marikana project, scheduled tobegin production in late 2002, has thepotential to yield 75 000 ounces of platinumper annum.• Implats acquired an effective 40% stake in theNgezi-Hartley assets of the Zimplats group.The first phase of production from the Ngeziopen-cast mine is planned for January 2002,with full production of 180 000 tons permonth from March yielding 40 000 ounces ofplatinum during 2002. The operation has thepotential to grow even further in the future.• The successful acquisition of a 35% stake inMimosa Platinum, a low cost producer on theGreat Dyke, is another strategic investment inthis region. Mimosa is proceeding with itsexpansion plans to increase platinumproduction by 50 000 ounces to68 000 ounces by 2003.• Through its effective stakes in Zimplats andMimosa, Implats, together with its partners, hasaccess to about 85% of the primary pgmresource of the Great Dyke, which is thelargest undeveloped pgm resource in theworld, second only in importance to SouthAfrica’s Bushveld Complex.• The Two Rivers joint venture with AnglovaalMining Limited should lead to theestablishment of a 100 000 platinum ouncesper annum mine in 2004. This follows thesuccessful bid by the Implats/Avmin jointventure for the Dwars Rivier reserves. Avminwill operate the project, with technical andother input from Implats, while Implats –through subsidiary IRS – will benefit from alife-of-mine concentrate offtake agreementsigned with Two Rivers.Leveraging processingand refining assetsThe above projects, along with the third partyconcentrate purchases and toll-refiningbusiness, will see IRS continuing to deliverrobust growth both in contributions to incomeand in increasing the total ounces of pgmsproduced in the years ahead.Created in July 1998 as a dedicated vehicle tohouse the tolling and metal purchase contractsbuilt up by the group, the concept behind IRShas become a major strategic thrust and hasdelivered another year of phenomenal growth.Production amounted to some 587 000 ouncesof pgms and 9 534 tons of base metals, ofwhich, 267 000 ounces pgm was purchasedfrom third parties and 320 000 ounces was tollrefined.Growth has been generated as a result of bothexisting business and new projects. Productionin terms of existing agreements, such as withKroondal Platinum Mines Limited and A1Specialised Services and Supplies Inc(autocatalyst recycling), has continued duringthe year.Implats’ strategic partnership approach will havethe additional benefit of new sources ofconcentrate. During 2002/2003, the group willbenefit from the first scheduled production fromNgezi Mine (Zimplats) and the Marikana Mine(Aquarius), with which it has entered into life-ofmineconcentrate purchase contracts. TheWinnaarshoek project will come into productionduring 2002 and the Two Rivers project, shouldcome into production in 2004. Further out onthe time horizon are Aquarius’ Everest Southproject and Barplats’ Kennedy's Vale project.Challenges and opportunitiesA number of challenges and opportunities lieahead for Implats.• Safety is an area of primary concern.Following several internal and external audits,a programme of behavioural motivation forboth management and employees is being

13undertaken. New safety initiatives will beintroduced in order to achieve a step-changereduction in the number of accidents.• Although Lonplats is expected to continue todeliver excellent returns to Implats during theyear ahead, we recognise that the full value ofthis investment is poorly reflected in theImplats share price. Attention to thisunfinished business continues.• The future of the Gencor shareholding isbeing constructively addressed by the ImplatsBoard, in association with the Board of Gencor,to ensure a satisfactory outcome for theshareholders of both companies.• Implats is proactively managing the impactof HIV/AIDS. A recent anonymous bloodtesting study conducted at Impala's 8 Shaft,confirmed an HIV prevalence of 16% which issignificantly below the levels of 25 to 30%currently reported in the industry. Ananonymous attitude survey also producedencouraging findings indicating high levels ofunderstanding and education amongstemployees regarding HIV/AIDS. During theyear Implats commissioned an independentactuarial report to determine the potentialfinancial impact of HIV/AIDS. The reportindicates that costs for medical treatment,absenteeism, training and costs to maintainproductivity, could amount to R86 million peryear at a peak in 2011. However, if currenteducation and intervention programmes aresuccessful in only halving the rate of newinfections amongst employees, there wouldbe a dramatic reduction in HIV/AIDS costs toR46 million at the expected peak of theepidemic in 2011. This is a credible scenario ifprevalence levels amongst Impala employeeshave indeed peaked as our research suggests.Implats spent more than R4 million during theyear on various education and interventionprogrammes and will continue to drive thesethrough our collaborative union/managementHIV/AIDS Committee.• Achieving a rating in the market relative toour competitors which fairly reflects theunderlying value and potential of thecompany, is being addressed. Much work hasbeen done in improving disclosure to theinvesting community and in selling theImplats story to international investors. Therehave been some indications of interest fromemerging market and generalist funds andreaching these potential investors inparticularly Europe and North America is a keygoal.The year aheadProspects for the year ahead remain good, withcontinued delivery in terms of operationalperformance and the coming on stream of thevarious growth projects. The upbeat markets ofthe past 12 to 24 months could not be expectedto continue indefinitely. Based on current marketprices, Implats is therefore anticipating earningslower than for the current year but increasedfrom the levels of 2000 which in itself was arecord year. Global economies seem to beresponding sluggishly to stimuli and aprolonged slowdown may impact on pgmdemand to a greater extent than anticipated inour business plan – with further negative impacton prices. In anticipation of this, Implats hasemphasised process enhancements, as well ascost reduction and productivity initiativesduring the year and is well-placed to capitaliseon these going forward.Keith RumbleChief Executive Officer

Five year statisticsIncome statementfor the year ended 30 June ( R million ) 2001 2000 1999 1998 1997Turnover 11 969.1 7 003.6 4 602.0 3 380.6 2 658.2Platinum 5 253.2 3 017.2 2 251.6 2 091.6 1 742.1Palladium 3 129.0 1 689.2 1 031.1 621.3 268.9Rhodium 2 199.1 1 218.0 582.2 238.7 156.1Nickel 700.2 600.4 363.5 216.7 285.7Other 687.6 478.8 373.6 212.3 205.4Cost of sales 5 120.3 3 900.8 2 986.8 2 567.7 2 393.7On-mine operations 2 330.1 1 997.6 1 880.4 1 772.7 1 571.8Concentrating and smelting operations 492.5 440.7 415.3 384.7 351.5Refining operations 333.3 307.9 295.6 262.3 266.4Amortisation of mining assets 212.2 139.9 148.7 135.5 113.1Metals purchased 1 968.8 698.8 287.6 – –Other costs 117.1 96.6 83.2 78.7 104.0(Increase)/decrease in inventory (333.7) 219.3 (124.0) (66.2) (13.1)Operating income 6 848.8 3 102.8 1 615.2 812.9 264.5Other income/(expense) 94.5 62.0 14.2 5.9 4.2Net financial income 383.3 228.2 185.9 44.2 1.8Share of pre-taxation income from associates 1 031.4 332.8 204.3 54.4 21.6Royalty expense (890.3) (406.4) (237.4) (93.1) (5.9)Income before taxation 7 467.7 3 319.4 1 782.2 824.3 286.2Taxation 2 815.2 1 061.9 525.2 325.9 105.6Consolidated income after taxation 4 652.5 2 257.5 1 257.0 498.4 180.6Outside shareholders’ interest 5.4 2.5 5.0 (2.9) (1.6)Attributable income 4 647.1 2 255.0 1 252.0 501.3 182.2Earnings per share ( cents )– Basic 7 024 3 422 1 929 794 293– Diluted 6 970 3 388 1 902 784– Headline (basic) 7 024 3 383 1 929 804 293Dividend per share - interim + proposed final (cents) 3 800 1 760 880 350 110Special dividend per share 3 000 – – – –

15Five year statisticsBalance sheetas at 30 June ( R million ) 2001 2000 1999 1998 1997ASSETSNon-current assets 6 547.8 4 230.3 3 488.5 3 037.9 2 980.3Fixed assets 5 230.6 3 357.3 2 822.2 2 431.2 2 353.7Investments and other 1 317.2 873.0 666.3 606.7 626.6Current assets 5 162.3 4 504.3 3 168.3 2 143.6 1 239.4Total assets 11 710.1 8 734.6 6 656.8 5 181.5 4 219.7EQUITY AND LIABILITIESCapital and reserves 6 430.0 5 625.6 4 043.9 2 943.4 2 452.2Outside shareholders' interest 19.2 13.8 46.9 68.7 71.6Non-current liabilities 1 465.2 1 195.1 1 068.4 1 052.4 1 016.2Borrowings 113.1 137.6 162.3 179.3 194.6Deferred taxation 1 156.1 889.7 745.0 746.9 707.5Provision for long-term responsibilities 196.0 167.8 161.1 126.2 114.1Current liabilities 3 795.7 1 900.1 1 497.6 1 117.0 679.7Total equity and liabilities 11 710.1 8 734.6 6 656.8 5 181.5 4 219.7Cash net of short-term borrowings 3 013.1 3 081.4 1864.9 801.8 219.2Cash, net of all borrowings 2 900.0 2 943.8 1702.6 622.5 24.6Current liquidity (net current assets excludinginventories) 587.3 2 164.6 1 014.5 264.8 (16.0)IMPLATS SHARE STATISTICSNo. of shares in issue at year end (m) 66.3 66.1 65.7 64.0 62.3Average number of issued shares 66.2 65.9 64.9 63.1 62.2Number of shares traded 36.4 31.7 30.1 14.7 11.7Highest price traded (cps) 47 300 29 600 17 200 6 800 6 900Lowest price traded 23 980 15 400 5 100 3 450 4 050Year end closing price 40 360 25 220 15 180 5 050 5 075

Five year statisticsUS$ Information (Unaudited)for the year ended 30 June (US$ Million) 2001 2000 1999 1998 1997Turnover 1 572.8 1 108.2 757.2 682.5 618.1Cost of sales 672.8 616.8 491.4 528.4 528.1On-mine operations 306.2 315.9 309.4 364.7 346.8Concentrating and smelting operations 64.7 69.7 68.3 79.2 77.6Refining operations 43.8 48.7 48.6 54.0 58.8Amortisation 27.9 22.1 24.5 27.9 24.9Metals purchased 258.7 110.5 47.3 – –Other costs 15.4 15.3 13.7 16.2 22.9(Increase)/Decrease in metal inventory (43.8) 34.7 (20.4) (13.6) (2.9)Operating Income 900.0 491.3 265.9 154.1 90.0Other income/(expense) 12.4 9.8 2.2 1.2 0.9Net financial income 50.4 36.1 30.6 9.1 0.4Share of pre-taxation income from associates 135.5 52.6 33.6 11.2 4.8Royalty expense (117.0) (64.3) (39.0) (19.1) (1.3)Income before taxation 981.3 525.6 293.3 156.5 94.8Taxation 369.9 167.9 86.4 67.1 23.3Outside shareholders' interest 0.7 0.4 0.8 (0.6) (0.4)Attributable income 610.7 357.3 206.1 90.1 71.8Earnings per share (cents) 923 542 318 143 115* Note: Income and expenditure have been converted at the average exchange rate for the year. Sales revenue reflects actual dollar receipts.

17Five year statisticsOperating Statisticsfor the year ended 30 June 2001 2000 1999 1998 1997Gross refined productionPlatinum ('000 oz) 1 291 1 199 1 181 1 052 1 002Palladium ('000 oz) 681 636 651 557 497Rhodium ('000 oz) 164 155 159 131 141Nickel ('000 t) 14.0 13.8 14.9 7.7 7.7Impala refined productionPlatinum ('000 oz) 1 002 1 020 1 065 1 052 1 002Palladium ('000 oz) 481 493 516 557 497Rhodium ('000 oz) 128 131 143 131 141Nickel ('000 t) 7.0 7.2 7.7 7.7 7.7IRS refined productionPlatinum ('000 oz) 289 179 116 – –Palladium ('000 oz) 200 143 135 – –Rhodium ('000 oz) 36 24 16 – –Nickel ('000 t) 7.0 6.6 7.2 – –IRS returned metalPlatinum ('000 oz) 164 102 84 – –Palladium ('000 oz) 116 93 104 – –Rhodium ('000 oz) 21 17 8 – –Group consolidated statisticsExchange rate:(R/US$)Closing rate on 30 June 8.06 6.92 6.00 5.48 4.51Average rate achieved 7.68 6.40 6.08 4.94 4.29Free market price index ($/oz) 1 266 914 631 611 532Achieved price index ($/oz) 1 254 855 625 609 576Prices achievedPlatinum ($/oz) 586 428 358 409 418Palladium ($/oz) 773 465 311 223 130Rhodium ($/oz) 2 001 1 223 719 358 271Nickel ($/ton) 6 951 7 500 4 466 6 062 7 179Sales volumePlatinum ('000 oz) 1 177 1 209 1 076 1 030 992Palladium ('000 oz) 543 656 585 551 491Rhodium ('000 oz) 145 171 140 129 137Nickel ('000 t) 14.1 14.0 14.9 7.5 7.8

Five year statisticsOperating Statistics (continued)for the year ended 30 June 2001 2000 1999 1998 1997Gross margin achieved (%) 57.2 44.3 35.1 24.0 10.0Return on equity (%) 82.6 55.8 43.7 20.9 7.8Return on assets (%) 71.0 53.3 34.7 16.5 5.9Debt equity ratio 1:47 1:34 1:19 1:14 1:10Current ratio 1.4:1 2.4:1 2.1:1 1.9:1 1.8:1Tons milled ex- mine ('000 tons) 15 184 14 662 14 638 14 509 13 775Pgm refined production ('000 oz) 2 464 2 308 2 299 1 960 1 888Capital expenditure (Rm) 2 090 783 431 248 266(US$m) 275 124 71 51 61Impala business segmentTons milled ex- mine ('000 tons) 14 840 14 662 14 638 14 509 13 775Total cost per ton milled 1 (R/ton) 213.2 188.6 179.6 172.2 166.5($/ton) 28.0 29.8 29.5 35.4 36.7Pgm refined production ('000 oz) 1 877 1 913 1 978 1 960 1 888Cost per pgm ounce refined 1 (R/oz) 1 685 1 445 1 329 1 275 1 215($/oz) 221 229 219 262 268Cost per platinum ounce refined 1Total cost of operations (R/oz) 3 156 2 711 2 471 2 369 2 281($/oz) 415 429 407 487 503Net of revenue received for other metals (R/oz) (1 879) (510) 617 1 144 1 366($/oz) (247) (81) 102 235 301Capital expenditure (Rm) 978 732 425 248 266(US$m) 129 116 70 51 61Total Impala labour complement ('000) 28.0 28.3 28.7 29.5 31.01. The cost of mining, concentrating, smelting, refining, marketing, head office and insurance claim as expressed per unit

19Value added statementfor the year ended 30 June (R million) 2001 % Change 2000Group sales revenue 11 969.1 70.9 7 003.6Net cost of products and services 3 138.5 42.3 2 206.2Value added by operations 8 830.6 84.1 4 797.4Income from investments and interest 1 521.1 135.6 645.7TOTAL VALUE ADDED 10 351.7 90.2 5 443.1Applied as follows to:Employees as salaries, wages and fringe benefits 1 734.7 13.1 1 534.3The state as direct taxes 2 815.2 165.1 1 061.9Royalty recipients 925.2 116.8 426.8Providers of capital 3 885.0 441.8 717.1Financing costs 17.3 31.3 25.2Dividends 3 867.7 459.0 691.9TOTAL VALUE DISTRIBUTED 9 360.1 150.3 3 740.1Re-invested in the group 991.6 41.8 1 703.0Amortisation and depreciation 212.2 51.7 139.9Reserves retained 779.4 50.1 1 563.110 351.7 90.2 5 443.1(36.1%)(16.8%)(9.6%)(27.4%)(28.2%)(37.5%)(13.2%)(31.3%)2001 2000■ Employer costs ■ Retained for future growth ■ Capital providers ■ Taxation and royalties

Rockdrill operator Robert Mohohloat Impala Platinum’s12 shaft. Production efficienciesrose during the year from 40m 2 peremployee to 41m 2 per employee,which equals Impala’s recordachieved in 1999.Exceptionalyear for Implats

21Financial reviewImplats continues to provide exceptionaloperating margins with positive cash flowsbeing generated. This combination enabled thegroup to return R4.5 billion to shareholders inthe form of dividends.Results for the yearSales revenue (or turnover) grew byR5.0 billion (up 71%) to R12.0 billion. Thisexceptional increase was on the back of:• An average basket of dollar prices ofUS$1 254 per platinum ounce which was47% higher than the previous financial year• A 20% depreciation in the South African Randagainst the US dollar.Both of these factors combined to provide animprovement of 74% in the average Rand pricesachieved for the major metals. Implats hasbenefited tremendously from the majority of itsrevenue stream being US dollar denominatedwhile the majority of costs are incurred in Rands.Group attributable income (or net profit) ofR4.6 billion increased by 106% fromR2.2 billion the previous year.As the group continues to expand, thecontributions to attributable income from thevarious components are changing.Attributable Income (Rm)2001 2000 VarianceImpala Platinum 3 724 1 905 1 819Impala Refining Services 300 117 183Crocodile River (Barplats) (24) 13 (37)Lonplats 647 220 427Total 4 647 2 255 2 392The Impala lease area still contributes most ofthe attributable income, but reliance on this asthe major contributor will reduce over time asthe recently announced projects begin to feedthrough to the bottom line.IRS continues to play a central role in thegroup's growth strategy and contributedR300 million, up 156% on last year's figureof R117 million.The slower than anticipated start up at CrocodileRiver mine had a negative impact, and theadjusted attributable income contributionreflects the group's accounting policy on theelimination of any unrealised profit on intercompanytransactions. This should reverse inthe next financial year.Our shareholding in the Lonplats group hasreaped significant benefits with attributableincome rising from R220 million to R647 million,an increase of 194%.This figure represents theequity accounted earnings for the year up toMarch 2001. For the most part that attributableincome was received in the form of R542 millionin cash dividends. This cash is earmarked forinvestment in the recently announced Zimplats,Mimosa and Two Rivers Platinum projects whichin turn will deliver significant contributions tothe group’s attributable income in the future.The cost performance during the period underreview was not in line with the group'sphilosophy of ensuring single digit unit costincreases. Cash operating cost per ounce ofrefined platinum rose by 16% to R3 156 (or indollar terms decreased by 3% to US$415). Theeffective cost of producing an ounce ofplatinum, net of by product revenue was a creditof R1 879 per ounce, which was 268% betterthan the previous year. The table belowillustrates the Impala cost performance and iscalculated as the cost of mining, concentrating,smelting, refining, marketing and head officecosts divided by the relevant platinumproduction units.Cash operating costRand 2001 2000 % VarianceR/ton milled 213 189 (13)R/oz pge refined 1 685 1 445 (17)R/oz platinum refined 3 156 2 711 (16)The group has, in US dollar terms, benefitedgreatly as a result of the depreciation of theRand against the US dollar and US dollar costshave actually decreased for the period underreview.

financial reviewCash operating costUS$ 2001 2000 % VarianceUS$/ton milled 28 30 7US$/oz pge refined 221 229 4US$/oz platinum refined 415 429 3economy of scale benefits to be realised andreduce the fixed cost recovery on Impalamined metals. This is estimated atapproximately a 20% reduction in fixed costrecovery based on present throughput.With respect to margins, the Implats groupderives its income from three separate revenuestreams, namely :• Mine-to-market where Implats owns andmanages the operations, such as ImpalaPlatinum, Crocodile River mine and, in thefuture, the Winnaarshoek project.• Income from associated companies such asLonplats and in the future from Zimplats,Mimosa, Two Rivers Platinum and the Aquariusgroup.• Income from the processing of third partymaterial through IRS.The margins vary between different businessunits from 65% at the mine-to-market Impalamodel to approximately 19% from IRS activities.Implats believes that the philosophy ofoptimising its refining capacity through securingtoll refining contracts and, in addition, acquiringsignificant minority equity shareholdings, is anoptimal strategy. It recognises that this businesswill produce lower margins than the traditionalmine-to-market models. The comparison isskewed, however, if the focus is on one side ofthe risk/reward equation only. The measure oftotal risk/return is a combination of weighingthe project risks against the project rewardswhere the Implats group model delivers certainkey benefits to shareholders :• Reduced exposure to mining risk• Lower investments (in terms of both capexand equity)• Reduced payback periods• Comparable return on investment to themine-to-market model as metal pricesdecrease. This is as a result of fixed percentagereturns on the IRS contracts.• Exploitation of smaller deposits enabledbecause of the symbiotic relationshipbetween the miner and the processor.• Increased process throughput allowingThe margins on production from the Impalalease area can be summarised as follows:Operating marginRand 2001 2000 % VarianceRevenue per platinumounce sold 9 433 5 883 60Cost of sales per platinumounce sold 3 283 3 055 7Operating profit per platinumounce sold 6 150 2 828 117Gross margin 65 48 36Further details are contained in the segmentalreporting note 1 in the Annual FinancialStatements.Earnings per shareHeadline earnings per share for the year at7 024 cents were 108% ahead of the previousyear's 3 383 cents. The previous year's earningsper share were adjusted for the change inaccounting for the final dividend. The adoptionof this statement had a positive impact on thecurrent year’s attributable income whichincreased by an amount of R55 million. This iscovered in more detail in note 11 to the AnnualFinancial Statements.The weighted average number of shares in issuewas 66 158 million in the current year comparedwith 65 891 million in the prior year, an increaseof less than half a percent. The increase in sharesduring the current financial year was mainly as aresult of shares issued in terms of the shareoption scheme. (Details are outlined in thedirectors' report and note 20 to the AnnualFinancial Statements).DividendsThe board has proposed a final dividend of2 380 cents per share, bringing the total

23declared and proposed dividends for the year tooptimal. Consideration is being given to utilising6 800 cps. This includes the special dividend ofpart of the capacity for future projects in an3 000 cps. The increase in interim and finalappropriate manner, but taking into account thedividends represents a 116% increase over theexposure to US dollar commodity prices andprevious financial year.Rand/US dollar exchange rates.Dividends are covered 1,9 times by earnings perImplats maintains a strong balance sheet inshare. This is in line with the board's statedorder to meet working capital requirements anddividend policy. The dividend cover philosophyprovide internal funding for the majority ofis underpinned by an awareness of returningfuture capital projects.excess cash to shareholders. This was confirmedby the special dividend payment announced inThe group generated R5.7 billion during theFebruary 2001.period under review. This was sufficient to fundCurrencycapital expenditure programmes, the significantdividends paid and the payment for PlatexcoThe average Rand/US dollar exchange rateInc. Despite this, Implats’ closing cash positionachieved was 7.68 this year, some 20% lowerwas similar to that of the previous financial year.than last year's 6.40 achieved. Implats is wellpositioned to benefit from this weakening in theImplats’ cash position for the next financialexchange rate as most of the group's earningsperiod is anticipated to be substantially lowerare denominated in US dollars.than the closing position as at the end of June2001.This is mainly due to:Implats' policy remains to be unhedged to- Payment for recent acquisitions (Zimplats,fluctuations in the Rand/US dollar exchange rateMimosa and Two Rivers)movement but in certain circumstances forward- Potentially lower metal pricesexchange contracts are entered into to hedge- Increased final dividend paymentanticipated future transactions.- Ongoing capex on the Impala lease area,Crocodile River mine and Winnaarshoek.R/$ for last 5 years2001 2000 1999 1998 1997Capital expenditureR/$ 7.68 6.40 6.08 4.94 4.29Group capital expenditure was recorded atShareholder valueR2 090 million, of which R950 million related tothe purchase of the Winnaarshoek mineralWe believe that the best measurement ofrights. Capital expenditure at Impala Platinum ofshareholder value is the total return toR978 million for the year was R246 millionshareholders (TSR) method.This is a combinationhigher than 2000, with expenditure on the9of the appreciation in share price, plus dividendsreturned to shareholders. Implats’ TSR from thedecline projects at 1 shaft (R129 million), 12 shaft(R56 million), 14 shaft (R261 million) and 11 shaft8end of the 1998 financial year to the end of the(R116 million) accounting for more than half7period under review has seen the group deliver aphenomenal return of 890%.of that.6Balance sheet structure andcash flowCapex (adjusted for the Winnaarshoek purchase)is expected to increase by R890 million, toR2 001 million in 2002. Of this, R870 million is for54Implats maintains a low gearing ratio and hassubstantial debt capacity. As a result the group'sweighted average cost of capital (WACC) is notcontinued expenditure on the decline projects,R640 million for the Winnaarshoek project andR132 million at Crocodile River mine.31996 1997 1998 1999 2000 2001SA Rand – US dollar

Pieter de Bruin filingplatinum ingot at Impala’sRefinery in Springs. TheEnhanced Precious MetalsRefinery is arguably thelowest cost primaryrefinery in the world.Robustmarket for ourmetals

Market review25Fundamentals reassertedThe year under review was witness to immensevolatility in the prices of our main metals withplatinum exceeding $600 and palladium pricessoaring to over $1 000 per ounce. These pricesled to a 47% increase in the price indexachieved to $1 254 per ounce, the highest ever.Despite almost record deliveries of Russianplatinum during calendar year 2000, and ameaningful decline in Japanese jewellerydemand, the platinum market remainedresilient. Deteriorating economic conditions in2001 are expected to pressurise the market butthis should be countered by a robustautomotive sector and stable jewellery demandoutside of Japan, leaving an essentially balancedmarket for the year.Platinum supply and demandCalendar years 2001 2000(’000 ounces) EstimateDemandAutomobile 1 980 1 925Jewellery (excl China) 1 550 1 740Jewellery (China) 1 100 1 100Industrial 1 485 1 450Investment (30) (60)Net demand 6 085 6 155SupplySouth Africa 4 185 3 775Russia 850 1 150Other 510 395Recycling 580 545Net supply 6 125 5 865Surplus/(Deficit) 40 (290)As forecast, substitution of palladium in theautomotive and electronic industries, acceleratedby the dramatic price movements of the metaland a significant slowdown in the informationtechnology sector, will see demand shrinkingfrom 2001.These fundamentals have beenfurther exacerbated by consumer de-stockingand excessive Russian deliveries during thefirst quarter of 2001, possibly exceeding4.0 million ounces, resulting in a near halvingof the price.The contraction of business conducted in theforward markets of Tocom and Nymex haslimited the ability of producers and consumersto hedge themselves, while simultaneouslyreducing the speculative activity of the mainlyJapanese general public. Without the influenceof these forward markets, short-term supply anddemand considerations are likely to have agreater influence on prices, as witnessed byactivity in the daily London fixes.PlatinumDemand for platinum in jewellery fell marginally(by 1%) to 2.84 million ounces, the first decreasesince 1983. This was due to a sharp decline inthe Japanese market, which outweighed stronggrowth in both China and the US.The ongoing weak economic conditionscoupled with a surging price took its toll onfabrication in Japan, which fell by 20% to1.06 million ounces in 2000. In terms of pieces,sales declined by only 4% compared with theprevious year, due mainly to the fact that manymanufacturers used this period to reduce metalstocks to alleviate difficult trading conditions.Sales in the lower price brackets were the worstaffected as mainly younger buyers switched tomore affordable alternatives.China surpassed Japan as the world’s leadingconsumer of platinum jewellery as another yearof growing demand, albeit at lower rates than inprevious years, resulted in sales increasing by16% to 1.1 million ounces. This was despite thehigh and sometimes volatile price, resulting inthe erosion of manufacturers’ margins. At pricesabove $600 many manufacturers haltedproduction resulting in a shortage of product atthe retail level. The move by the Chinese taxauthorities to tighten up on the payment oftaxes, also restricted fabrication. In the US, pricewas less of an issue as the market is dominatedby the bridal and “upmarket” sectors. Stronggrowth in the first half of the year was temperedby weakening consumer confidence in the latterhalf as the economy began to slow. Demand3 0002 5002 0001 5001 00050065060055050045040035030001990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001Jewellery demand – 000 oz■ Japan ■ North America ■ Europe ■ Other ■ China1996 1997 1998 1999 2000 2001Platinum – US$/oz

market review’000oz10 0008 0006 0004 0002 00001990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001Autocatalyst demand■ Pt ■ Pd ■ Rh1 1001 0009008007006005004003002001001996 1997 1998 1999 2000 2001Palladium – US$/ozincreased by 15% to 380 000 ounces. In Europedemand remained firm with the strongestgrowth coming from the United Kingdomwhere the number of pieces hallmarkedincreased by 29%.The global expansion of the platinum jewellerymarket took another important step forward lastyear with the launch, in September, by thePlatinum Guild International (PGI), of a platinumjewellery campaign in India. The launch waslimited to a small number of authorisedmanufacturers and retailers in Delhi andMumbai. Market response has been very positiveand the campaign will be extended to othercities during the year ahead. Given that India isthe world’s largest gold market, it has thepotential to be another significant market forplatinum. Increased promotional spending bythe PGI will bolster demand in the majormarkets, except Japan, which is expected todecline further next year.Demand for platinum in autocatalysts continuedto benefit from the ongoing tightening ofemission legislation worldwide. The growingdesire by automakers to reduce theirdependence on palladium by moving toplatinum-based systems began to gathermomentum due to concerns about availabilityand price. The combined effect was thatdemand increased by 2.5% to 1.93 millionounces. Despite a 2% decline in European carsales, platinum demand benefited from a furthersurge in the sales of diesel vehicles and theintroduction of Euro III legislation. The legislation,which applies to all new models from January2000, requires higher platinum loadings forcatalyst use with diesel engines. This sector willbenefit further in 2001 when Euro III legislationis extended to cover all new vehicles.In the US, there was a marginal increase inplatinum demand as automakers reverted toplatinum. With full compliance required this yearwith the Low Emission Vehicle standards, therequirements of which favoured palladium-richsystems, manufacturers are focusing on thenext set of standards. This new series of morestringent emission legislation in both Europe(Euro IV) and the US (Tier 2), which places strongemphasis on carbon monoxide and oxides ofnitrogen emissions will benefit platinumdemand. In addition, platinum usage will befurther increased by the Tier 2 standards whichalso require light duty trucks to meet the samestringent standards as cars, starting in 2004.Elsewhere in the world, 2000 saw the adoptionof tighter emission legislation by variouscountries. These included Japan, China, India,South Korea and several smaller south east Asiancountries.PalladiumDemand increased by almost 4% to a record8.86 million ounces primarily as a result of afurther surge in automotive usage. Consumptionby automakers rose by 11% to 5.38 millionounces. Palladium is the most effective metal forthe control of hydrocarbon emissions, the maintarget of the most recent legislation. With thephase-in of these standards all but completed,automakers are now looking at reducing theirdependence on palladium. Although this metalwill remain a key ingredient in futureformulations, usage will be cut by thriftingprogrammes and by moving toplatinum/rhodium systems. These changes areexpected to cut palladium usage by the autoindustry by 30% over the next five years.The strong move away from palladium to nickelbasedmulti-layer ceramic capacitors in theelectronics industry continued with less than50% of capacitors produced containingpalladium. The substitution trend is forecast tocontinue and the shift will become morepronounced as production declines with thecurrent economic slowdown.Although usage in its two major applications isforecast to decline, the market will requireRussian sales from stock to satisfy demand forthe next few years. Thereafter, the market willreturn to a natural supply/demand balance tothe benefit of both supplier and consumer.

27Palladium supply and demandCalendar years 2001 2000(’000 ounces) EstimateDemandAutomobile 5 155 5 380Dental 745 820Electronics 1 865 2 140Other 535 520Net demand 8 300 8 860SupplySouth Africa 2 050 1 840Russia * 4 750 5 200Other 1 180 950Recycling 320 265Net supply 8 300 8 255Surplus/(Deficit) – (605)* Supplies required to balance the market in 2001NickelDespite weakening consumption, the nickelmarket remained in deficit due to a combinationof production cutbacks, disruptions andoperating difficulties. The slowdown in stainlesssteel demand that emerged during the secondhalf of 2000 has carried into 2001. Withproduction continuing to expand through acombination of brownfield and greenfieldexpansions, the market is forecast to move intosurplus this year.RhodiumThe rhodium market remained underpinned bystrong demand from its main user, theautomotive industry. Demand for autocatalystsrose by 17% to 579 000 ounces. A combinationof more stringent emission legislation and thedesire by automakers to thrift palladium werethe main drivers of growth. This trend isexpected to continue and will gain moreimpetus through new emission legislation, afeature of which is tighter limits for N0x forwhich rhodium is better suited.2 5002 0001 5001 00050001996 1997 1998 1999 2000 2001Rhodium – US$/ozRhodium supply and demandCalendar years 2001 2000(’000 ounces) EstimateDemandAutomobile 585 579Other 89 92Net demand 674 671SupplySouth Africa 439 411Russia* 80 80Other 21 21Recycling 101 91Net supply 641 603Surplus/(Deficit) (33) (68)* Excludes significant off-market transactions which have beenplaced in inventories1 1 00010 0009 0008 0007 0006 0005 0004 0003 0001996 1997 1998 1999 2000 2001Nickel – US$/ton

One millionPt ounces by“theengine”Sinking of the newventilation shaft atImpala’s 14 shaft decline.Impala’s capital efficientdecline programme willextend the lives of existingshaft systems.

29Impala PlatinumKnown colloquially as “the engine”, Implats’ majoroperational unit, Impala Platinum, comprises 13shaft systems and Mineral Processes(concentrating and smelting activities) locatednear the towns of Phokeng and Rustenburg onthe world-renowned Bushveld Complex, as wellas the company’s Precious Metals and BaseMetals Refineries some 200 kilometres away,near Springs in Gauteng. These operationsemployed 27 979 people during 2001.The emphasis for the year to follow is onensuring that:• management accepts accountability for thesafety culture of the organisation• risk assessments take place• new, inexperienced crew captains receivefurther best practice training• contractors’ health, safety and environmentalmanagement systems and training are alignedwith those of Impala.SafetyThe tragic loss during the year of 13 employeesin work-related accidents was a devastatingreversal of the previous year’s significant successin making the business of mining lesshazardous. The fatality rate of 0.16 per millionman hours reflects the second worst year since1997.Falls of ground accidents remain the biggestcause of fatalities and claimed four lives thisyear; followed by scraper and winch operationrelated accidents; explosive accidents; and rockhandling accidents. Two fatalities also occurredat the 14 shaft project.A root cause analysis by International RiskControl Africa (IRCA) of these accidents revealedthat too much effort is being placed onmanaging the consequences of accidents ratherthan preventing them, indicating a need toaddress the safety culture of the company.Safety was further compromised by the loss ofexperienced crew captains during the course ofthe year.On the positive side, internal and external auditshave indicated that safety programmes andtraining are in place and this is reflected in theimproving trend of the lost time injury frequencyrate. This year’s rate of 8.5 lost time injuries permillion man hours is the best ever, and shows animprovement of 32% compared to last year. Twoshafts achieved two million fatality free shiftsand a further five achieved one million shiftsduring the course of the year. The operations asa whole achieved this milestone twice.During the year:• Good progress was made with training at alllevels. An additional 1 642 safetyrepresentatives completed a safetyrepresentative training programme. Some500 crew captains completed a riskmanagement programme and 580 passed aprinciples of supervision programme.• Four CAP (Common Audit Process measureagainst ISO standards) were conducted andan external audit of the code of practice tocombat rock falls and rockburst accidents wasconcluded.• A joint Health, Safety and Environmentsummit was held with participation from allstakeholders.Impala Refineries achieved its lowest ever losttime injury frequency rate of 0.8 per million manhours. The Refineries achieved a NOSCAR ratingduring 1999 and has maintained it since then.During the coming year Implats will:• Improve support standards in stoping anddevelopment areas• Improve action-plan implementationfollowing risk assessments and routine processmeasurement audits• Formalise a monitoring programme for actionplanimplementation to ensure continuousimprovement• Develop a process for accumulating correctiveand preventative action resulting from audits,inspections and other managementmeasurementssystems0.141997 1998 1999 2000 200120.50.20Fatality accident rate(per million man hours)21.20.09 0.0910.912.68.51997 1998 1999 2000 2001Lost time injury frequency rate(per million man hours)0.16

eview of operations – Impala925 915 9138707425803761661999 2000 2001 2002 2003 2004 2005 2006Mining projects – capital cash flow andforecast (R million)MiningTons mined increased by 3.3% on last year to15.05 million. Headgrade declined slightly,however, to 4.9 g/t owing to a narrowing of theMerensky channel and an increase in pre- andredevelopment. Headgrade should improve inthe year ahead as more ore will be mined fromthe Merensky reef.On-mine cost per ton mined increased fromR137 to R154 (12%) mainly as a result of anabove inflation wage increase of 9% and anadditional 3% as a result of the implementationof the Basic Conditions of Employment Act. Anincrease (6%) in on-reef development from210 700 metres in 2000 to 224 200 metres in2001 also had an adverse effect on costs.Problems in the concentrator resulted in210 000 tons of ore being added to the live orestockpile, again adding to costs. Costperformance on a tons milled basis thereforeincreased from R136 to R156 (14.7%).Decline projectsImpala aims to maintain production at the onemillion ounce level until 2030 at an affordableannual capital cost. To achieve this, Impalaembarked on a programme to extend the livesof the third generation shafts by means ofdecline shafts or shaft systems that utiliseexisting infrastructure. Five decline shafts and avertical shaft to link in with 12 shaft are currentlyin progress at a total capital cost of R4 billion(US$486 million). Excellent progress has beenmade during the year with productionbeginning at several declines as scheduled:10 shaft: Development of the 10 shaft declinebegan in 1993. Mining at this triple declinesystem began in 1997 and the first three levelsare already producing. Development of the finallevel station is in progress and full productionshould be achieved by October 2001.1 shaft: This project commenced in 1997.Production from the first level was achieved inJuly 2000. Rock weakness led to somemodifications to this decline that will nowcomprise four rather than six levels. Productionwill be unaffected as the change has allowedearlier mining than originally planned. Fullproduction will be achieved in the 2004financial year.11 shaft: Sinking commenced at this tripledecline system in 1999. Stoping will commencein 2002 and full production will be attained in2007. The ventilation shaft has beencommissioned and sinking of the seconddowncast man and material shaft will start in2001.12 shaft south: The start-up development ofthis three level, twin-shaft decline is welladvanced. The first level was accessed in March2001 and full production should be attained in2004.12 shaft north: Work on this vertical shaftsystem commenced in June 2001. The systemcomprises a downcast man and material shaft12 N #12 # 14 #11 #10 #1 #and an upcast ventilation shaft. The first ore fromthis project will be processed in the 2004financial year. This shaft is the first at theRustenburg operations to embrace the "pillarand stall" mining method, using tracklessmachinery and conveyor belts for moving ore.Location of shafts on the Impala Platinum lease area14 shaft: This project comprises thedevelopment of a five-level decline and theupgrading of infrastructure for increased

31Decline ProjectsProject Start of mining Maximum production Reserves Reefs mined Capex (R million) Life of shaft (years)/month (m 2 )(‘000t)10# decline 2000 28 000 20 675 Merensky 171 291# decline 2000 45 000 25 761 Merensky and UG2 726 1611# decline 2001 45 000 15 001 Merensky and UG2 721 1412# south decline 2002 18 000 5 151 Merensky 256 814# decline 2004 45 000 37 922 Merensky and UG2 1 656 2512 # north decline 2004 15 000 8 263 Merensky 471 10tonnages. Development commenced in 1999and good progress was made to establish theaccess ways. Shaft sinking of a verticalventilation shaft is also underway. Final projectcompletion is scheduled for 2006.reduction. Work to balance the volumes throughthe high grade and low grade circuits toimprove recoveries is in progress. The highervolume through the UG2 plant will enable moremills to be dedicated to Merensky ore in theMetallurgical processingImpala continues to dedicate significantattention and resources to its metallurgicaloperations with a capital expenditureprogramme of R280 million in 2001 formain plant, allowing for a finer grind and thusimproved recoveries. Stabilisation andoptimisation of the Merensky flotation plant hascontinued but further optimisation is required inorder to achieve design recoveries.concentrating and smelting. This will reduce toR100 million in 2002.The net impact of these difficulties has been a2.5% drop in metallurgical recoveries comparedto the previous year.ConcentratorTons milled for the year were 14.84 million,210 000 tons less than tons mined, mainly dueto an additional public holiday and a three daystoppage at the UG2 plant owing to an electricsubstation failure.SmelterImpala’s smelting operation continued itsexcellent performance during the year. Thesmelter expansion project was deliveredtimeously and within the R230 million budget.The expected benefits of capital efficiency, by farProblems were also experienced with the startup of the UG2 ore separation project. The plantwas commissioned two months late andthe lowest costs in the industry, and increasedflexibility and contingency have been realised.recoveries were not at expected levels.Throughput improved to acceptable levels anda 30% increase in plant capacity was realised byyear-end. Initial results indicate a 3% cost per tonHowever, the refractory bricks of the newfurnace housing started to crack soon aftercommissioning, apparently as a result of aproblem with the brick manufacture. Although39.640.539.640.7Impala mining statistics2001 2000 1999 1998 1997Tons milled (’000) 14 840 14 662 14 638 14 509 13 775% UG2 milled 49.6 50.6 48.1 45.9 45.6Headgrade (g/t 5 PGE + Au) 4.90 4.97 5.31 5.17 5.22M2 per stoping employee 41 40 41 40 36Tons per employee 53 51 51 48 44Number of employees (working cost) (’000) 28.0 28.3 28.7 29.5 31.036.034.0FY96 FY97 FY98 FY99 FY00 FY01Productivity in centares per panel man

eview of operations – Impalathe furnace itself is stable and extensivecondition monitoring continues, operating lifewill be shortened. A spare furnace lining has alsobeen ordered from Austria which will arrive inOctober 2001.The smelter complex processed a record79 800 kilograms of matte this year, a13% increase on 2000. Concentrating andsmelting costs increased from R30 to R32 perton (6.8%) and were well contained given theamount of construction work in the area.RefineriesThe Refineries’ solid performance was sustainedand the cost per refined platinum ounce wascontained to an increase of only 7.4% despitesubstantial cost increases in reagents andchemicals.The completion of process enhancements at theEnhanced Precious Metals Refinery (EPMR) led tomuch improved performance in the rhodiumand iridium circuits with a further release ofmetal from process inventories. A programme offine-tuning the EPMR circuit will commence inthe new financial year at a capital cost of someR50 million. These will allow for throughput inexcess of 2 million ounces of platinum per year,along with associated pgms.People and technologyThe concept of unlocking the potential of ourpeople is a key strategic driver for Impala. As ouremployees’ skills increase, the need for newtechnology to improve performance further andensure our position as industry leader inefficiencies becomes increasingly important.Thus, a strategy combining the performance ofour people and advances in technology, willcontinue to deliver the improvements inefficiencies for which the company has becomeknown within the industry.Five years ago Impala introduced the Fixcoprocess with the "One team – one vision"concept central to that initiative. The aim ofFixco was to secure Impala’s long-term futurethrough a real reduction in unit costs at a timewhen the company was viewed ascompetitively disadvantaged by its high cost ofproduction and labouring under a capitalinefficient expenditure programme. Thisobjective was achieved by drawing on thecombined energies and initiatives of the peopleof Impala – and with a dramatic decrease in thelabour force – resulted in Impala boasting thehighest productivity levels in the South Africanhard rock mining industry.During 1999/2000, Implats realised, however, thatthe impetus of the initial Fixco process hadlargely dissipated and that, with certain once-offinitiatives having being achieved, step-changeimprovements were unlikely.New Fixco initiativesA highlight of the year was undoubtedly the reenergisingof the Fixco process by thecombined management/employee team as partof Impala’s core “One team – one vision”philosophy. This vision continues to have as itsaim the delivery of just over a million ounces ofplatinum per annum from the Impala lease areaover the life-of-mine, with unit costs in line withor better than inflation and an affordable capitalfunding programme.The management-employee Fixco committee isfocused on three key areas, headgrade,recoveries and efficiencies and has identified 18separate initiatives and appointed a championat mine level to lead each initiative. Thecommittee meets on a regular basis to evaluateprogress and determine new objectives. Majoradvances have been achieved during the year:• Production efficiencies across the operationare up from 40m 2 per employee to 41m 2 peremployee, which equals the previous recordachievement in 1999;• A 5% reduction in compressed air usageachieved;• A 3% improvement was recorded in Merenskyheadgrade in the last quarter.

33In the past a great deal of emphasis was placedon reducing employee numbers, but no majordecrease is anticipated over the next few years.Instead, the implementation of Fixco and othercontrol mechanisms to identify and addressproblem areas are poised to deliver the requisiteimprovements in productivity.Breakthrough technologyFrom trackless mining to new cutting andblasting techniques, leading to better minelayouts, improved safety and productivity areexpected to provide further impetus to Impala’sdrive for the highest efficiencies and lowestcosts in the industry.ExplorationEvaluation of the Impala lease area continuedduring the year with a 3D seismic surveyextending to the southern border of theproperty and to 1 800 metres below surface.Fifteen boreholes were drilled in the deeper partof the lease area to supplement seismic surveys,while 86 shallow boreholes were drilled toevaluate the Merensky open-cast potential.Implats is currently engaged in a number ofnew technology initiatives either directly or inpartnerships with research organisations,suppliers and other companies. This thrust isaimed at mechanisation that can be applied to arelatively narrow, tabular hard rock orebody. Thechallenge is to tap the appropriate technologyto deliver cost reductions, productivityimprovements and improved safety.Active technology initiativesName Strategic Description Objective Targeted monthlyPartneradvance (m)Penetrating Brandrill A plastic cartridge, filled with To continuously mine/break 60Cone Fracture Limited propellant, initiated by an with non-explosive propellant(PCF) electronic detonator using drill holesMini Disk Cutter CSIR A low profile cutter with To continuously mine a breast 140(MDC) Miningtek mini disks or longwall stopeOscillating Disk AMIRA A 300 mm oscillating disc To continuously mine a breast 120Cutter (ODC) International (single or multiple) or longwall stope and a tunnelPneumatic Drill Rigs Novatek Drills Pneumatic operated drills Accurate, less strenuous, stope Notmounted on a single or drilling applicabledouble boomHydropower Drill Rigs Novatek Drills Hydro-power operated closed Accurate, less strenuous, stope Notcircuit drills mounted on a drilling with improved applicablesingle or double boomefficiencyMineral Resource GMSI Integrated production info Electronic planning with NotManagement system comprising a suite rolling short, medium and applicableof GMSI moduleslife-of-mine planLow Profile Not Employing trackless mining Mechanisation of stoping 30Trackless applicable techniques at a 1.5 metre operationsMiningstope width* Current face advance with manual mining methods = 22 m 2

Major newplatinummine on theEastern LimbDrilling at the box-cut atthe Winnaarshoek projecton the eastern limb of theBushveld Complex. Theproject will see thedevelopment of a majornew platinum mine in arelatively underdevelopedarea, involving the creationof 1 500 new jobs.

35WinnaarshoekIn December 2000, Implats acquired PlatexcoInc, a Toronto-listed junior mining company, forC$191 million (R950 million).Located on the eastern limb of the BushveldComplex, near the town of Steelpoort in SouthAfrica’s Northern Province, the Winnaarshoekproject has the potential for the development ofa mine producing 175 000 ounces of platinumfor at least 30 years.Mineral rightsThe project comprises the Winnaarshoekproperty as well as the mineral rights associatedwith adjacent properties Clapham, and portionsof Driekop and Forest Hill. The Driekop mineralrights are subject to a 1.5% royalty payable toeach of Anglo Platinum and the LebowaMinerals Trust calculated on the value of themetals contained in the concentrate.Major empowerment initiativeThe project will be held 80% by Implats andsome 10% each by Mmakau Mining (Pty)Limited and community-based investors fromthe Northern Province. Mmakau Mining is a wellestablishedmining concern chaired by itsfounding shareholder, Bridgette Radebe.Both Mmakau Mining and the communityempowerment participants will be representedon the board of the Winnaarshoek project andMmakau Mining will also be represented on theproject’s executive committee. This arrangementprovides a major black empowermentparticipation in a large-scale pgm project. It isexpected that the financing for theempowerment transaction and the NorthernProvince empowerment participants will befinalised by the end of 2001.Mining and processingExtensive exploration drilling has beenconducted since January 2001 and will continuefor the remainder of the year and into next year,targeting specifically the shallower areas fromthe outcrop to 450 metres below surface. Theexploration results will facilitate mine planningin respect of the underlying geological structure,grade, resources and reserves estimates and therock engineering requirements for mechanisedmining.The mine will utilise a mechanised pillar and stallmining method with dense media separation toremove waste. The orebody will be accessed bymeans of two separate decline shafts, sunk onreeffrom the outcrop position, situatedapproximately 1 300 metres apart on strike.Decline development will begin in mid-2002,with the first production from stoping byDecember 2002. Full mill production will bereached by 2004. Mining will first concentrate onthe UG2 reef, with development on theMerensky reef commencing later.The project has entered into a life-of-mineconcentrate purchase agreement with IRS forthe smelting, refining and marketing of itsconcentrate.Capital cost for the project is estimated at someR1.6 billion spread over the first four years of theproject. It is intended that this will be fundedjointly from Implats’ internal resources and bythe capital raised by the empowermentpartners.During the expected mine life over 30 years, themine will employ some 1 500 people in arelatively remote and underdeveloped area. Anumber of environmental and social challengesremain and a dedicated team is in place toensure that the positive influences of the minebalance any potential negative influences onthe surrounding environment and communities.Winnaarshoek ProjectPurchase priceC$191 million (R950 million)Mineral Resource45.4 million tons-Merensky22.9 million tons-UG2Planned production175 000 Pt oz paCapital expenditureR1.6 billion over 4 yearsJob creation1 500 employeesLife-of-mine30 yearsFull production 2004

CrocodileRiver openedunder budgetExcavating portal area pit no 1 atBarplats’ Crocodile River mine. Themine was brought into productionunder budget in February 2001, justone year after approval for the reopeningwas given by the board.

37Crocodile RiverCrocodile River is wholly owned by JSE-listedBarplats Investments Limited, which in turn is83% held by Implats. In February 2000, thedirectors of Barplats approved the re-opening ofthe mine (which had been mothballed since1991), near Brits in South Africa’s North WestProvince, with the intention of bringing it onstream in 2001.During the year, the mine was brought intoproduction under budget but with somedifficulties experienced with re-commissioningthe concentrator. Capital costs thus far havebeen in the region of R149 million (excludingthe rehabilitation assets), funded by an intercompanyloan from Impala Platinum. Furthercapex for the remaining current life-of-mineof 14 years is expected to be in the regionof R314 million.MiningOpen-cast mining operations commenced onthe eastern side of the property at theMaroelabult section in December 2000.Underground mining is set to commence inOctober 2001, with good progress having beenmade on the preliminary construction for thesinking of a decline shaft. The mine will adoptthe pillar and stall mining method and this,together with dense media separationtechniques, will improve the extent of theresource base.With one milling circuit of the Crocodile Riverconcentrator in operation, the planned millingtarget of 75 000 tons per month was achieved inMarch 2001. An additional flotation circuit totreat the old tailings dam was commissioned inJuly 2001.Re-commissioning difficultiesProblems were experienced with there-commissioning of the concentrator whenonly 63% recovery compared with the expected79% was achieved, as a result of the oxidised orebeing more difficult to treat than was initiallyanticipated. Some of the deeper ore (of morethan 35 metres below the surface) has nowbeen treated, achieving recoveries in excess of70%.Further work to enhance recoveries and toreduce the chrome content in concentrate iscontinuing and steady-state operatingperformance is expected by December 2001.These difficulties and a late start meant that themine achieved an output of 14 900 ounces ofplatinum in concentrate during the first sixmonths of operation, some 40% short of theplanned 25 000 ounces.Investigations to extend the life of mine furtherare underway.Crocodile River production and costsFinancial year2001In concentrate productionPlatinum (’000 oz) 15Palladium 7Rhodium 2Nickel (tons) 19Cash operating costR/Ton milled 1 109R/oz pge in concentrate 2 1 315R/oz platinum concentrate 3 2 527Operating marginsRevenue per platinum ounce in concentrate 7 847Cost of sales per platinum ounce in concentrate 3 887Operating profit per platinum refined 3 3 960Gross margin 501.The cost of mining and concentrating is expressed per ton milled2.The cost of mining and concentrating is expressed per ounce of pge in concentrate3.The cost of mining and concentrating is expressed per ounce of platinum in concentrateCrocodile River MineReserves and Resources25.7 million tons – UG2Planned production50 000 Pt oz paCapital expenditureR314 millionJob creation 450Life-of-mine14 yearsFull production FY 2002

Offloading of autocatalyst powderat Impala’s Rustenburg smelteroperations. Implats’ wholy-ownedsubsidiary Impala Refining Services(IRS) is, through its association withA1 Specialised Services and SuppliesInc, the leading recycler ofautocatalysts in the world.IRSa majorstrategicthrust

Impala Refining Services39Created in July 1998 as a dedicated vehicle tohouse the toll refining and metal concentratepurchases built up by the group, the conceptbehind Impala Refining Services (IRS) hasbecome a major strategic thrust of the business.During the year, production of precious metalsgrew from approximately 395 000 ounces to587 000 ounces. Of this, 267 000 ounces ofprecious metals was purchased from andprocessed on behalf of third parties and320 000 ounces was spot refined. Production ofbase metals exceeded 9 500 tons.New projects bring growthDuring 2002/2003, IRS will benefit from the firstscheduled production ounces from the Ngezimine (Zimplats) and the Marikana mine(Aquarius). The Winnaarshoek project will comeinto production by the end of 2002 with metalproduction during 2003 and the Two Rivers jointventure should come into production in 2004.Further out on the time horizon are Aquarius’Everest South project and Barplats’ Kennedy’sVale mine.1812154512198156075252001 2002 2003 2004 2005 2006Growth in metal production■ Pt ■ Pd ■ RhOperating profit rose to R363 million fromR142 million in the previous year.IRS uses the Impala processing assets for whichit is charged a market related fee.Existing business growsThe life-of-mine concentrate offtake agreementcontinued with Kroondal Platinum Mines duringthe year with increasing throughput to IRS asthe mine built up to steady-state production.Further growth in production is expected fromKroondal during 2001/2002 and the agreementhas been extended to include the additionalconcentrate produced.IRS production and costsFinancial year2001 2000 % changeProductionPlatinum 289 179 61pgm production refined 587 395 49Operating marginsTurnover 1 872 835 124Cost of sales 1 509 693 118Operating profit 363 142 156Gross margin 19 17 12IRS through its association with A1 SpecialisedServices and Supplies Inc remains one of theworld’s leading recyclers of autocatalystmaterials.The opening of the Crocodile River mine in early2001 saw additional concentrates beingdelivered to IRS. Production at the Mimosa minein Zimbabwe, with which IRS has an existingagreement and in which Implats now has asubstantial shareholding, has commenced withsignificant expansion and will contribute tofuture growth.Deliveries from Messina, a subsidiary ofSouthernEra Inc, are expected to commenceduring late 2001.

MetallurgicalSuperintendent KenYoungman, observing themill at the KroondalPlatinum Mines’metallurgical circuit.Implats’ relationship withKroondal’s parent company,Aquarius, strengthenedduring the year.RelationshipsForged

41Strategic holdingsRelationships continued and strengthened withLonplats, the platinum division of London-basedLonmin plc and Australian and London-listedAquarius Platinum Limited. New relationshipswere forged with Avmin, Zimplats and Mimosa.LonplatsImplats continues to hold a crucial 27% stake inLonmin’s Lonplats, comprising Western PlatinumLimited and Eastern Platinum Limited, whichbrings with it 50% board representation andcertain pre-emptive rights. Despite high levels ofcapital expenditure the contribution thisoperation has made to the bottom line isconsiderable. During the financial year, Lonplatsannounced an aggressive expansionprogramme to take advantage of favourablemarket circumstances, which should see thecompany achieve production of one millionounces of platinum by 2007.Despite its significant contribution to Implats,the company recognises that the full value ofthis investment is not yet reflected in its shareprice and ways of releasing value and providinga better return to shareholders are constantlyunder review.AquariusImplats’ relationship with Aquarius PlatinumLimited, in which it holds a 10,1% interest,increased and strengthened during the year.Kroondal Platinum Mines Limited delisted at thebeginning of August 2001 and the company isnow 99% held by Aquarius and Implats (5%).It is Aquarius’ intention that the companyshould become a wholly-owned subsidiary inthe near future.The Kroondal mine, located near Rustenburgon the Western Limb of the Bushveld Complex,has continued to perform well. The operationis in the process of increasing output by50 000 ounces to 130 000 ounces per annum,with a slight decrease in life-of-mine. Theinstallation of a regrind circuit in themetallurgical processing operation should alsoresult in increased recoveries in the year ahead.Kroondal continues to deliver to IRS in terms ofthe life-of mine contract and this relationshiphas now been extended to cover the additionalconcentrate being produced.Implats also holds a direct stake of 25% inAquarius Platinum (SA) Limited, a subsidiary ofAquarius Platinum and the owner of mineralrights relating to the Marikana, Everest Southand Chieftain’s Plain projects. The Marikanaproject, an 18 million ton resource located onthe Western Limb of the Bushveld Complex, islikely to be brought into production in late 2002,while the start-up of Everest South is scheduledfor 2003.Aquarius has undertaken to enter life-of-minesmelting, refining and marketing contracts withIRS on behalf of the Marikana, Everest North andSouth and Chieftain’s Plain projects. In themedium term, it is Implats’ objective to increaseits stake in Aquarius to around 35%.Effective contribution of Implats’ 27.1% share in LonplatsYear to March 2001 2000 % changeSales revenue (Rm) 1 653 837 98Income before taxation 1 031 333 210Attributable income 647 220 194Dividends received 542 148 267Refined productionPlatinum (’000 oz) 178 172 3Palladium 80 77 4Rhodium 25 23 9

Review of operations – Strategic holdingsZimplatsIn March 2001, Implats announced theacquisition of an effective 40% stake in theNgezi-Hartley assets of the Zimbabwe PlatinumMines Limited (Zimplats) group. The transactionwas structured on two tiers in line with Implats’modus operandi of investing in both the parentand operating companies.First, Implats acquired from Delta Gold Limiteda 30% stake in Australian-listed Zimplats in ajoint venture with South African financialinstitution ABSA Bank Limited, for an amount ofR131 million (US$16.3 million or A$22.1 million).Implats holds pre-emptive rights over ABSA’sstake and ABSA has signaled its intention ofretaining its holding for the short-term only.Delta Gold continues to hold 21% of thecompany, with the balance held by minorityshareholders.At the second tier, Implats holds a 30% directstake in the Ngezi-Hartley project, whichcomprises the now abandoned Hartley PlatinumMine, the Ngezi project and the SelousMetallurgical Complex (SMC). The purchaseconsideration still to be paid in respect of thisstake is an amount of R240 million(US$30 million). The deal follows the completionof a bankable feasibility study by independentconsultants, SRK.Ngezi is located some 75 kilometres from theSMC and has the potential to produce 100 000ounces of platinum (200 000 ounces of pgms)per year. The orebody, which lies about 20 to50 metres below surface, will be accessed byopen-cast mining methods. Ore will betransported via Australian-style road trains to theSMC and smelter matte will be transferred viaroad to IRS in South Africa.Good progress has been made in preparationfor production in mid-2002, with theconstruction of a road from Ngezi to the SMCcurrently underway. Production is scheduled tobegin in 2002, with full production beingattained by later in the year.Zimplats holds extensive mineral rights on theGreat Dyke and it is Implats’ intention toparticipate further in these in the longer term.MusengeziGeologicalComplexSelous Metallurgical ComplexHartley Platinum mineHarareKadomaHartleyGeologicalComplexZimbabweNgezi projectKwekweBotswanaBulawayoGweruMasvingoMimosa Platinum mineSelukweGeologicalComplexWedzaGeologicalComplexFrancistownMessinaN

43Two RiversIn May 2001, Implats and Anglovaal MiningLimited announced the joint acquisition of thepgm mineral rights to the farm Dwars Rivierfrom Associated Manganese Mines of SouthAfrica Limited. Implats will acquire its 45% stakein the resultant Two Rivers Platinum project foran amount of R248 million (US$30 million).The project is located on the Eastern Limb of theBushveld Complex, south of the town ofSteelpoort in South Africa’s Mpumalangaprovince. Exploration drilling is currently beingundertaken to confirm preliminary evaluation ofthe resource of 50 million tons of UG2 reef. Afeasibility study is currently underway todetermine the optimal design and output of themine which is expected to be in the region of100 000 ounces of platinum per annum. Themine will have a 20-year life and come intoproduction in 2004.The mine will be operated by Avmin (holding55%), who will also market the base metalsproduction which will be toll-refined by IRS. IRSwill smelt and refine the concentrates andmarket the resultant pgms.MimosaDuring the year Implats negotiated a 35% stakein Mimosa, the only successful platinum minecurrently operating on the Great Dyke andarguably the lowest cost primary pgm producerin the world, for a consideration of US$30million. IRS has had a smelting, refining andmarketing agreement with Mimosa sinceproduction began five years ago.The deal was announced post year-end in July2001, with Mimosa signaling its intention toincrease production by 50 000 ounces per yearto 68 000 ounces per year by 2003.PhilnicoThe group’s nickel strategy to reduce capital andoperating costs of the base metal refinery bysharing them with a nickel mine, remains inplace. How the Philnico project at Nonoc fitsinto this strategy still rests on the ability of thesponsors to deliver, as a partner to the project, amajor nickel player and the necessary fundingfor the balance of the project. Until that stage,the project remains on hold. In the meantime,the feasibility study was completed on time andwithin budget.Two Rivers ProjectPurchase price R248 million (45%)Resource50 million tons – UG2Capital expenditureR760 million over 20 yearsExpected output100 000 Pt oz paAnticipated production date 2004Life-of-mine20 years

Johannes Mashilomonitoring surfacevibrations during anexploration seismic survey.Implats is pursuingexploration opportunitiesboth in South Africa andinternationally.Low-cost,focusedexplorationstrategy

45ExplorationThe surge in pgm prices from September 1999onwards has led to a significant increase inglobal pgm exploration and interest. In NorthAmerica, in particular, a host of existing copperand nickel projects and mainly palladiumprojects have come to the fore. Implats hasevaluated many of these during the year but hasmaintained its exploration strategy of pursuingprojects and joint ventures in South Africa andinternationally, focussed on primary pgmprojects which have the potential to generatequality deposits. Part of this strategy is Implats’support of junior exploration companies,providing funding, expertise and access tosmelting and refining infrastructure.Bushveld Complex explorationKennedy’s ValeThe Kennedy’s Vale project, located on theEastern Limb of the Bushveld Complex, is 100%held by JSE-listed Barplats Investments Limited,which in turn is 83% held by Implats. Thismothballed operation has an existing vertical,but unequipped shaft system to a depth ofsome 900 metres. The original plans allow for adecline shaft system to access deeper reserves.Infill drilling was undertaken during the year toconfirm grades and geological structures, withinitial results of an indicated resource of some233 million tons.A joint venture agreement was signed withinternational group Falconbridge Inc during theyear and exploration continued at the Kennedy’sVale, Birch Lake and River Valley projects in NorthAmerica.The Insizwa joint venture project wasterminated during the year.A 3-D seismic survey commenced in May 2001and the interpretation of information from thissurvey should be completed by mid-2002. Aninvestigation of adjacent properties and surfacedrilling of more complex geological areas will beundertaken during the next year and it is likelythat a feasibility study will commence by mid2002.Rutledge LakeBirch LakeCana BravaKennedy’s ValeRiver ValleyGlobal PGE Exploration Activities

Review of operations – ExplorationInternational explorationBirch LakeImplats has the right to earn a 60% interest inthe Birch Lake project, located on the DuluthComplex in Minnesota, USA, for a maximumexpenditure of US$5 million over a period of fiveyears. In collaboration with joint venturepartners, Beaver Bay and Lehmann ExplorationInc, 11 boreholes were completed during theyear. Of these, five intersected mineralisation andthe results were sufficiently encouraging tocontinue with the evaluation of the depositagainst potential mining and processingmethods. Limited infill drilling is underway toevaluate the variability and continuity of the orehorizon. A decision on whether or not toproceed with extensive evaluation of this earlystage project is expected in 2002.River ValleyThe River Valley Project is a joint venture withToronto Stock Exchange-listed Mustang MineralsCorp on the River Valley Complex, some50 kilometres from Sudbury in Canada’s Ontarioprovince. For a maximum expenditure ofC$6 million over five years Implats will beentitled to a 60% interest in the project. Theexploration target is primary pgmmineralisation, with associated base metals.The exploration property covers more than600 mining claim units and 28 kilometres ofprospective stratigraphy along the north andsouth margins of the Complex.During the year field mapping, groundgeophysics and rock chip sampling identified azone of mineralisation stretching some5.5 kilometres on the eastern side of theproperty and some 2.4 kilometres in the south.Diamond drilling commenced in November2000 and, to date, some 66 shallow boreholes,including stratigraphic holes, have beencompleted. Although the project is still at a veryearly stage, preliminary results have beenencouraging with two prospective targetshaving being identified. Detailed fieldwork inthese areas of interest is underway prior to thecommencement of follow-up drilling. A decisionto continue or otherwise will be made by theend of 2001.Rutledge LakeBirch LakeRiver ValleyNorth American ventures

47Rutledge LakeImplats has provided seed capital ofC$0.3 million to another Canadian junior,Platinum Group Metals Limited (PTG), towardsexploration in the Great Slave Lake area some200 kilometres south east of Yellowknife in theNorthwest Territories, where encouraging pgmin surface samples were previously identified.Some 10 boreholes were drilled during the year,but failed to intersect significant platinum orpalladium mineralisation. The informationobtained will be assessed during the latter halfof 2001.Alliance with FalconbridgeIn February 2001, Implats signed a strategicalliance agreement with international basemetals group Falconbridge to explore jointly forpgms. Falconbridge has an extensive globalexploration programme with a presence on fivecontinents – Africa, North America, SouthAmerica, Asia and Australia – and will undertakegrassroots exploration in consultation withImplats on potential targets. In terms of this fiveyearagreement, Implats will be offered all pgmprojects that Falconbridge’s programmeidentifies, with Implats supportingat least two quality projects each year. Implatswill then contribute early stage funding to earna 50% stake in any project.A number of projects are already on the table,with Implats having committed to expenditureof C$250 000 in the first phase of exploration atthe Cana Brava project in the Goias state inBrazil, some 300 kilometres north of the Braziliancapital, Brasilia. Fieldwork at the projectcommenced during July 2001, with mapping,sampling and geophysical surveys on a strikelength of some 40 kilometres.

Michael Petoe,seismic monitoringobserver at theKennedy’s Valeproject. Implatsholds lease areas onboth the easternand western limbs ofthe BushveldComplex.Reserves and resourcesclassifiedaccording to SAMREC

49Reserves and resourcesThrough Impala, Barplats and WinnaarshoekImplats is currently evaluating and exploitingthe Merensky Reef and UG2 Chromitite Layerhorizons of the Bushveld Complex. These narrowtabular horizons form the best known pgmorebodies and are extensively mined for theirprecious metal content. Impala has over30 years’ experience in mining these depositsand their characteristics are well known.Impala PlatinumImpala Platinum Limited holds mining leasescovering 12 085 hectares north-west ofRustenburg in the North West Province.A mining licence covering a further12 675 hectares was granted during 2001 overthe lease extension area. In addition, Impalaholds a mineral lease, granted by RustenburgPlatinum Mines, covering 496 hectares over aportion of the farm Boschkoppie 104 JQ,contiguous with Impala’s operations.The tables below list Impala’s Mineral Reservesand Mineral Resources. The classification is basedon the South African Code for Reporting ofMineral Resources and Reserves (the SAMRECCode).Impala has undertaken extensive surface drilling,2D and 3D seismic surveys which have providedconfidence in the areas included in the MineralReserve and Mineral Resource statements.Grade estimates are obtained by means ofthe ordinary kriging geostatistical method.Impala’s geostatistical database consists of over50 000 sample sections (550 000 individualsamples) obtained by underground samplingof development faces and stoping panels. Inaddition, over 800 reef intersections have beenobtained by surface drilling (original boreholesand deflections).The economic channel is generally defined by amarginal grade cut-off which ranges between1.0 g/t and 1.5 g/t, except in areas where thechannel is below the minimum mining width.The channel estimates are determined from acombination of geostatistical estimates andcomparisons against historical information.The modifying factors used to determineMineral Reserves are based primarily onhistorical tonnage and grade dilutions togetherwith planned improvements. These are derivedfrom an in-house ore accounting systemdeveloped and refined over 8 years.Proved Mineral Reserves refers to materialavailable for mining without furtherdevelopment.Impala lease areas Mineral Reserves as at 30 June 2001 (limited to 1 700 m below surface)Orebody Category Tonnage (millions) Grade 5 pge& Au Pt oz millionsMerensky Proved 17.6 4.88 1.6Probable 94.2 4.69 8.1UG2 Proved 21.9 5.10 1.7Probable 122.1 5.16 9.6Total 255.8 4.96 21.0Impala lease areas Mineral Resources as at 30 June 2001 (limited to 1 700 m below surface)Orebody Category Tonnage (millions) Grade 5 pge& Au Pt oz millionsMerensky Measured 14.2 7.36 1.9Indicated 95.9 8.42 14.7UG2 Measured 12.1 8.99 1.7Indicated 75.0 8.98 10.3Total 197.2 8.59 28.6

eserves and resourcesProbable Mineral Reserves describes materialbeyond existing development, which has beenevaluated by drilling and seismic surveys and forwhich appropriate feasibility studies have beencompleted which confirm economic extraction.Measured Mineral Resources includes materialwhere geological evaluation has beencompleted and appropriate feasibility studies arein progress. Indicated Mineral Resources includematerial where the continuity of mineralisationcan be assumed but where additional geologicalevaluation is required.Crocodile River MineBarplats Mines Limited holds mining licencesand mineral rights over 9 735 hectares in theBrits area of the North West Province. Barplatsowns the Crocodile River mine which isexploiting the UG2 Chromitite Layer in the area.Tabled below are Crocodile River mine’s MineralReserves and Mineral Resources, classifiedaccording to the SAMREC Code. These estimatesare derived from a total of 245 reef intersections(original boreholes and deflections). Gradeestimates have been verified by kriging utilisingImpala’s geostatistical system.Proved Mineral Reserves refers to materialavailable for mining at the Maroelabult sectionopen-cast operations. In-pit sampling has beenincorporated with surface drilling data. Tonnageand grade dilutions are based on currentpractice of these operations. Probable MineralReserves have incorporated tonnage and gradedilutions based on assumptions forunderground pillar and stall operations, whichtakes cognisance of the size of miningequipment to be utilised. A limit of 1000 metresbelow surface has been placed on the MineralResource calculations.Kennedy’s ValeRhodium Reefs Limited holds mineral rightsin the Burgersfort area of the MpumalangaProvince. Exploration by Barplats is ongoingin the area. Below are the Mineral Resources,classified according to the SAMREC code,for the farms Kennedy’s Vale 361 KT and DeGoedeverwachting 332 KT, covering4 570 hectares.Geological evaluation is ongoing at theproperties to enhance and extend the mineralresources. The above estimates are derived froma total of 262 reef intersections (originalborehole and deflections).Crocodile River mine Mineral Reserves as at 30 June 2001 (limited to 1 000 m below surface)Orebody Category Tonnage (millions) Grade 5 pge& Au Pt oz millionsUG2 Proved 1.37 4.77 0.10Probable 8.30 4.90 0.60Total 9.67 4.88 0.70Crocodile River mine Mineral Resources as at 30 June 2001 (limited to 1 000 m below surface)Orebody Category Tonnage (millions) Grade 5 pge& Au Pt oz millionsUG2 Indicated 16.02 5.53 1.4Total 16.02 5.53 1.4Kennedy’s Vale Mineral Resources as at 30 June 2001 (limited to 1 450 m below surface)Orebody Category Tonnage (millions) Grade 3 pge& Au Pt oz millionsMerensky Reef Indicated 101.96 2.94 Work is currently in progress toUG2 Indicated 131.11 5.25 determine accurate metal splitsTotal 233.07 4.24

51Grade estimates are based on inverse distancecalculations for platinum, palladium, rhodiumand gold combined (3 PGE + Au).WinnaarshoekTrojan Platinum (Pty) Limited holds mineralrights covering 4223 hectares in the EasternBushveld and in addition, has acquired a subleasecovering 1273 hectares over a portion ofthe farm Driekop 253 KT from RustenburgPlatinum Mines Limited in exchange for aroyalty.Two Rivers, Zimplats, Mimosa andAquariusIn addition to its own reserves and resources of73,4 million platinum ounces, Implats has accessto 37 million attributable platinum ouncesthrough its equity participation in Two Rivers,Zimplats, Mimosa and Aquarius. The latterreserves and resources have not been defined interms of the SAMREC code and have not beenverified by the competent person. The extent ofthis interest is set out in the table below.The table below lists Trojan’s mineral resources,classified according to the SAMREC Code.Extensive geological evaluation is ongoing atthe properties to enhance and extend theMineral Resources. The estimates below arederived from a total of 550 reef intersections(original boreholes and deflections). Gradeestimates are based on inverse distancecalculations.Implats group attributable platinum ounces reserves and resourcesImplats Reserves 21.7Implats Resources 51.7Attributable ounces:Two Rivers; Zimplats; Aquarius; Mimosa Reserves and Resources 37.2Lonplats (estimated*) Proven and Probable 11.6Total 122.2* Based on latest available public informationAll these reserves and resources have beenverified by a competent person in terms ofSection 4 of the SAMREC code.Competent Person:P. MellowshipPr.Sci.Nat. B.Sc. (Hon), M.Sc.Consulting Geologist (Operations): ImpalaPlatinum Limited.The competent person has 27 yearsexperience in a wide range of mineral andmining projects, of which fifteen years hasbeen in the evaluation and exploitation ofBushveld platinum group metal deposits.Winnaarshoek (Trojan) Mineral Resources as at 30 June 2001 (limited to 500 m below surface)Orebody Category Tonnage (millions) Grade 5 pge& Au Pt oz millionsMerensky Indicated 45.4 4.52 3.6UG2 Indicated 22.9 8.67 2.5Total 68.3 5.91 6.1

Full time safety representativeSiminikwe Manta and Lucas Mokganediat Impala’s 12 shaft. Fresh initiatives areunderway to lift Impala’s safetyperformance to bestinternationalundergroundmining practice.Committedto world classstandards

53Corporate responsibilityImplats regards safety, health and environmentas integral to the way in which it conducts itsbusiness. As with all other challenges facing thegroup, it strives to adhere to world-class norms.Implats’ corporate responsibility efforts include:• Improving the occupational safety and healthof employees• Addressing HIV/AIDS in an imaginative andpositive way• Minimising the impact of the company on itsenvironment and contributing towardsconservation in the areas in which it operates• Contributing in practical and meaningful waysto the communities surrounding itsoperations.HealthNoise-induced hearing loss remains the primaryoccupational health challenge for undergroundemployees. Implats’ extensive hearingconservation programme includes:• Monitoring and measuring noise levels• Engineering noise out where possible• Providing hearing protection devices toemployees• Providing employee training into the effects ofnoise and• Providing regular screening audiograms toidentify hearing loss at an early stage.As part of an R8 million two-year programme,the company is providing all high-riskemployees with custom-made hearingprotection devices, which exclude highfrequencynoise and allow for normal speech.At Mineral Processes, a major occupationalhealth risk is potential exposure to sulphurdioxide (SO 2), which is an upper respiratory tractirritant. The facility has achieved a significantreduction in SO 2gas emissions in recent years.At the Refineries, the major occupational healthrisk lies in potential exposure to platinum salts.Impala has successfully managed this byimplementing strict hygiene measures and"hands-off" systems for all employees exposedto this hazard. No incident of an allergy to thecomplex salts of platinum (ACSOP) has beenreported since 1998.Addressing HIV/AIDSThe management of HIV/AIDS remains a vitalchallenge for Implats, along with the rest ofSouth Africa and the South African industry.Efforts are directed at two areas:• Prevention of HIV transmission amongst newand existing employees; and• Managing the impact of HIV/AIDS on infectedemployees and on the company.These programmes are directed by acollaborative union/management HIV/AIDScommittee.Implats has since the early 1990’s conductedextensive HIV education programmes amongstits employees. Since recent surveys haveindicated that current employees have a highlevel of awareness and understanding ofHIV/AIDS, a major focus during the year hasbeen the education of new employees.Impala’s efforts have also been extended intoneighbouring communities in partnership withother companies, the Department of Health,youth and community groups and localchurches. In addition to highly effective peereducation programmes, the treatment ofsexually transmitted diseases (STDs) and homebasedcare has been extended to local informalsettlements for employees and non-employeesalike. An ongoing challenge associated with thedisease, but particularly with aspects such ashome-based care, is the continued stigma of thedisease, which obstructs the provision ofassistance.Traditional healers practising around theoperation have become an integral part of theeducation and wellness managementprogramme, as have commercial sex workerswho are provided with education, condoms andaccess to treatment of sexually transmitteddiseases.

corporate responsibilityAs far as HIV-positive employees are concerned,Implats’ approach is to meet the needs of theinfected employee where possible, whilebalancing this against the needs and capacity ofthe company. Confidential testing andcounselling are available to all employees.Immuno-compromised employees who feel thatthey are no longer able to work may, with thesupport of their treating doctor, apply formedical disability benefits to the Impala WorkersProvident Fund which is run by appointed NUMUnion and Impala trustees.Infected employees receive care and counsellingthrough Impala's Wellness Programme in aneffort to extend their healthy, comfortable andproductive lives. Medical care is providedthrough Impala's Medical Services. Infectedemployees may also be offered alternativeoccupations should these become available.The programmes available to infectedemployees are provided on a completelyconfidential basis.One of the problems experienced in SouthAfrica is the lack of reliable data. This is needednot only to indicate the levels of the disease butalso to indicate whether education measures areworking and whether there is a slowing ininfection rates.During April 2001, Impala conducted ananonymous survey of employees at its 8 shaft inan effort to confirm existing medical statisticsthat indicated a 16% prevalence level. TheImpala survey, involving the collection ofanonymous blood samples from more than500 employees, indicated a prevalence level of15.6%. This, together with statistics gathered atan operational level over the past 18 monthsindicates a levelling off of infection levels at16%. This is much lower than was originallyexpected.In addition, Implats commissioned acomprehensive actuarial report to evaluate thepotential financial impact on the business. Thisassessment not only looked at prevalenceprojections based on a range of scenarios, butalso evaluated the scope and efficacy of Implats’intervention programmes, human resourcespolicies, impact on employee benefits,manpower and training costs as well as costswhich will be incurred to maintain productivity.The report indicates that, given the currentprevalence rate and expected rate of newinfections in South Africa, Implats could incuradditional costs of R86 million per year in 2011which is predicted to be the peak of theepidemic. However, given successful educationprogrammes and interventions, the rate of newinfections and consequently the costs can bedramatically reduced. By halving the rate of newinfections the cost in 2011 would be reduced toR46 million. This is a highly credible scenariobased on the levels of awareness andprevalence levels at Impala, with the latterindicating that the rate of new infections mayalready have reached a plateau.Research was conducted during the year by anindependent market research company toenable Impala to assess the effectiveness of itseducation programmes.This showed some very encouraging results:• 100% of employees surveyed were aware ofHIV/AIDS• 98% of respondents believe that HIV is asexually transmitted disease.• 70% of respondents stated that they hadchanged their sexual behaviour as a result ofHIV/AIDS awareness and education.The company and its HIV/AIDS committee willcontinue with the education and interventionprogrammes in order to limit the spread andimpact of the diseaseEnvironmentImplats aspires to world-class standards in itsenvironmental management systems andprogrammes. In line with its long-standingenvironmental strategy, which is aligned withthe international environmental standardISO 14 001, the company aims to:• Optimise resource usage

55• Decrease wastage at source• Design all new processes to minimise theirenvironmental impact and• Reformulate existing processes whereverpracticable to reduce their environmentalinput.The underlying philosophy of ISO 14 001 is thatof continuous improvement.Extensive changes and extensions were madeto the Environmental Management ProgrammeReport (EMPR) on the Impala lease area duringthe year, with amended documents submittedto the Department of Minerals and Energy forthe Merensky open-cast project, the smelterupgrade, No 11 shafts and No 14 shaft. As aresult the present value of the rehabilitaion costwas increased by R3.3 million and R2.3 millionwas spent during the year on ongoingrehabilitaion. The EMPR for Crocodile River minewas finalised during the year and the EMPRcompilation process for the Winnaarshoekproject commenced in April 2001.At Impala’s Mineral Processes an air qualitymanagement policy has been developed andimplemented and, together with the upgradeat the smelter, resulted in improved air qualityconditions. Implats also played a major roleduring the year in spearheading theestablishment of the Rustenburg Air QualityForum.Impala Refineries, which was awarded ISO 14 001certification in 2000, now undergoes an externalaudit every six months. The completion of theEnhanced Precious Metals Refinery in 2000enabled numerous environmental improvements,including reagent regeneration and recoveryprocesses with decreased resourceconsumptions and gaseous emissions.The Refineries has also made a concerted effortto reduce water consumption. Recyclinginitiatives such as the installation of a reverseosmosis water treatment plant have culminatedin reduced water consumption despite anincrease in production.Major challenges for the year ahead includeISO 14 001 certification for the mining andprocessing operations at Rustenburg, approvalof the EMPR for the Winnaarshoek project,implementation of the company’s watermanagement plan (again at Rustenburg) andacceptance of a revised rehabilitation plan forthe entire Rustenburg surface area.Corporate social investmentThrough the Impala Community DevelopmentTrust (ICDT), the company endeavours to be afacilitator rather than a sole sponsor of socialprojects. The Trust’s modus operandi is based onthe principle that initiatives should assistcommunities in becoming self-sufficient and, inthis way the long-term sustainability andindependence of the project can beencouraged. Each year the ICDT is allocated anamount the equivalent of 2% of the previousyear’s dividends and focuses on four main areasof activity:• Education and training• Health care, with a specific focus on HIV/AIDS• Business development.Impala has made a significant contribution toeducation, particularly in upgrading theinfrastructure at run-down schools anddeveloping management potential and humanresources in primary schools.Impala is responsible for not only the health careof its workforce, but also considers that it has aduty towards the wellbeing of the communitiesin the vicinity of its operations. The ICDT workswith Impala Medical Services to address healthcare issues in a holistic manner.The ICDT is planning to step up its businessdevelopment initiatives by facilitating theformation of partnerships by several existingsmall businesses with co-funders and specialiststo secure their viability. One example of this isthe planned jewellery benefication project thatwill add downstream value and empower blackbusinesses.

Busi Botha, a student atthe School of PerformingArts in Daveyton nearSprings. This is one of theprojects supported by theImpala CommunityDevelopment Trust.Implats thefacilitator

57Employment equityAfter extensive consultation with stakeholders,Impala submitted to the government thecompany’s Employment Equity Plan in line withthe South African Employment Equity Act.Targets have been agreed with linemanagement and union representatives. AnEmployment Equity Committee, comprisingunions and management, oversees the process.Key issues addressed by this committee includebarriers to equity and the identification andresolution of discriminatory practices.The company made 148 appointments duringthe year, from groups designated by the Act asrequiring advancement, far exceeding its targetof 51 appointments. A primary challengeremains the retention of these employees asalmost 40% subsequently left the companyduring the year.As a result of our efficiency successes, Impala’speople are targeted for recruitment by theindustry. This year alone 470 crew captains leftour employ. As a result we have stepped upour training and development effort andfocused on the retention of skills. At any onetime 50 Learner Officials and 300 crew captainsare in training in an effort to increase our talentpool. Mathematics and science classes are alsopresented to local scholars to increase potentialcandidates eligible for engineering courses atImpala.Implats’ employment equity targets at management levelCurrentAfter 5 yearsTotal Total % Total Designated %Employees Designated Designated Employees Goal DesignatedSenior Management 51 4 7.8 51 12 23.5Middle Management 375 49 13.1 368 111 30.2Skilled 1 815 543 30.0 1 818 808 44.4Total 2 241 596 26.6 2 237 931 41.6

Corporate governanceImplats supports and has applied the Code ofCorporate Practices and Conduct as advocatedin the King Report on corporate governance. Asummary of compliance is as follows:Board of DirectorsThe board follows the unitary structure andretains full and effective control over the group.It meets at least on a quarterly basis to reviewthe operational performance of the group,strategic issues, the business plan, acquisitions,disposals and other major contracts andcommitments, group policies and stakeholderreporting. There are seven non-executivemembers of whom the chairman is also adirector of the major shareholder. There arethree executive directors.The positions of Chairman and Chief ExecutiveOfficer are separate. The Chairman of the boardis a non-executive director. In addition, theindependent directors are of such calibre andnumber that they carry significant weight in theboard’s deliberations and resolutions.A number of standing committees of the boardhas been established. These committees operatewith written terms of reference and arecomprised, in the main, of non-executivedirectors. The chairman of each committee is anon-executive director.• Remuneration CommitteeThe remuneration committee comprises threenon-executive directors and is responsible fordetermining the group policies and structurewith regard to executive remuneration,remuneration packages for executive directorsand senior executives and the policy andstrategy of employment.• Audit CommitteeThe audit committee, which meets on aquarterly basis, is comprised solely of nonexecutivedirectors. The role of the auditcommittee is to assist the board byperforming an objective and independentreview of the functioning of the organisation’sfinance and accounting control mechanisms.It exercises its functions through close liaisonand communication with corporatemanagement and the internal and externalauditors.• Health, Safety and EnvironmentalAudit Committee.A Health, Safety and Environmental AuditCommittee (HSE Audit committee) is in placeto monitor and review health, safety andenvironmental performance and standards.The primary role of the HSE Audit Committeeis to supplement and support and give adviceand guidance on the effectiveness orotherwise of management’s effort in the HSEarena. The committee consists of not less thanfour members. Employee representatives areinvited to the committee meetings on aregular basis. The chairman is a non-executivedirector.Internal Control SystemsThe group maintains accounting andadministrative control systems designed toprovide reasonable assurance that theaccounting records accurately reflect thattransactions are executed and recorded inaccordance with sound business practices, thatthe assets are safeguarded and that protection isprovided against serious risk of error or loss in acost-effective manner.An internal audit department, which holdsregular meetings with management and theaudit committee and has direct access to theChairman of the board, independently monitorsthese controls.Nothing has come to the attention of thedirectors to indicate that any materialbreakdown in the functioning of these controlshas occurred during the year under review.Employee participationEmployees throughout the organisation areactively involved on all Fixco committees. Aquarterly Leadership Summit facilitates

59communication between management andemployee representatives across theorganisation. In addition, representatives of allunions serve on key committees such as theImpala HIV/AIDS committee.Employment Equity PlanThe business plan of the organisation includesinterventions to support the transformationprocess, to develop and empower our workforceand to accommodate both anticipated andrecently promulgated legislation.Our commitment to the process of "unlockingthe potential" of our employees applies inparticular to those who fall within the categoryof designated groups. All our developmentalprogrammes, succession planning, career pathprogrammes and bursary projects takecognisance of this commitment.Numerous steering committees have beenestablished and specific numerical targets to beachieved have been set over a five-year periodto attain a discrimination free workplace. Theplanned target levels and the levels ofachievement are set out in the table on page 57.Code of valuesThe group has adopted a code of valuesgoverning the manner in which it is committedto do business with its stakeholders and, inparticular, covering business integrity and thedevelopment and safety of employees. Theprocess whereby employees committedthemselves to these values has resulted in thedevelopment of the principles of that code intoa "Value Statement" which interprets thosevalues in a practical and easily understandableform. All employees and directors are required toadhere to the ethical standards contained in thiscode.The group observes a closed period of onemonth prior to the announcement of interimand year-end results, during which neitherdirectors nor employees can deal, either directlyor indirectly, in the shares of Implats or its listedsubsidiaries.

Glossary of termsAquarius: Aquarius Platinum LimitedBarplats: Barplats Mines LimitedConcentrating: A process of splitting theground ore in two fractions, one containing thevaluable minerals, the other waste.Cost per ton/refined platinum ounce/refinedpge ounce: The cost of mining, concentrating,smelting, refining, marketing, corporate officeand insurance claim expressed per unit ofmeasure.Laterite: Residual soil, or surface product,developed in situ from the atmosphericweathering of rocks. Especially characteristic ofhumid tropical and subtropical regions.Merensky Reef: A horizon in the Critical Zone ofthe Bushveld Igneous Complex often containingeconomic grades of PGE. The term “MerenskyReef” as it is generally used refers to that part ofthe Merensky unit that is economicallyexploitable, regardless of the rock type.Mmakau Mining: Mmakau Mining (Pty) LimitedDecline: A shallow dipping mining excavationused to access the orebody.Milling: Grinding of ore into fine particles toexpose the valuable minerals.Dense Media Separation: A means ofseparating reef from waste exploitingdifferences in density.Development: Underground excavation for thepurpose of accessing ore reserves.Falconbridge: Falconbridge Limitedg/t: grammes per tonne. The unit ofmeasurement of grade, equivalent to partsper million.Headgrade: The value, usually expressed in partsper million or grammes per tonne, of thecontained mineralisation of economic interest inmaterial delivered to the mill.In situ: In its natural position or place.Inverse distance: A classical estimationtechnique whereby the influence of eachneighbouring data point is inverselyproportional to the distance from the pointbeing estimated.NOx: Nitrous Oxides contained in exhaustemissions.Pge: Platinum group elements comprising sixelemental metals of the platinum group. Themetals are;- platinum, palladium, rhodium,ruthenium, osmium and iridium.Pgms: Platinum group metals being the metalsderived from pges.Pillar and stall: A mining method where thepanel length is much greater than the pillarwidth.Price index: Basket of metals comprisingplatinum, palladium, rhodium and nickel,expressed per ounce of platinum, multiplied bythe individual metal prices, in the productionratio.Return on assets (ROA): ROA is calculated usingcurrent year attributable income expressed as apercentage of fixed assets and investments as atthe balance sheet date.IRS: Impala Refining Services LimitedKriging: A geostatistical estimation method thatgives the best-unbiased linear estimates of pointvalues or of block averages.Return on equity (ROE): ROE is calculated usingcurrent year attributable income expressed as apercentage of the opening balance ofshareholders equity.

61Seismic surveys: A geophysical explorationmethod whereby rock layers can be mappedbased on the time taken for energy reflectedfrom these layers to return to surface.Smelting: A smelting process to upgrade furtherthe fraction containing the valuable minerals.Stoping: Underground excavations to effect theremoval of ore.Two Rivers: Two Rivers Platinum (Pty) LimitedUG2: A distinct chromitite horizon in the CriticalZone of the Bushveld Igneous Complex oftencontaining economic grades of pge.Zimplats: Zimbabwe Platinum LimitedResource DefinitionsMineral Reserve and Mineral Resource dataclassification is based on the South African Codefor Reporting of Mineral Resources and MineralReserves (the SAMREC Code) which sets out theminimum standards recommended andguidelines for public reporting of explorationresults, mineral resources and mineral reserves inSouth Africa.Data has been compiled by a team ofprofessionals, with the appropriate experience inthe evaluation, estimation, exploitation andreporting of mineral resources and mineralreserves relevant to the style of mineralisationand type of deposits under consideration.Where mineral resources and mineral reservesare quoted for the same property, mineralresources are additional to mineral reserves.The mineral reserves quoted reflect the gradedelivered to the mill rather than an in situ gradequoted in respect of mineral resources.A ‘Mineral Resource’ is a concentration [oroccurrence] of material of economic interest inor on the earth’s crust in such form, quality andquantity that there are reasonable and realisticprospects for eventual economic extraction. Thelocation, quantity, grade, continuity and othergeological characteristics of a mineral resourceare known, estimated from specific geologicalevidence and knowledge, or interpreted from awell-constrained and portrayed geologicalmodel. Mineral resources are subdivided, inorder of increasing confidence in respect ofgeoscientific evidence, into inferred, indicatedand measured categories.An ‘Inferred Mineral Resource’ is that part of amineral resource for which tonnage, grade andmineral content can be estimated with a lowlevel of confidence. It is inferred from geologicalevidence and assumed but not verifiedgeological and/or grade continuity. It is basedon information gathered through appropriatetechniques from locations such as outcrops,trenches, pits, workings and drill holes that maybe limited or of uncertain quality and reliability.Inferred Resources have not been quoted in thisreport.An ‘Indicated Mineral Resource’ is that part of amineral resource for which tonnage, densities,shape, physical characteristics, grade and mineralcontent can be estimated with a reasonablelevel of confidence. It is based on exploration,sampling and testing information gatheredthrough appropriate techniques from locationssuch as outcrops, trenches, pits, workings anddrill holes. The locations are too widely orinappropriately spaced to confirm geologicaland/or grade continuity but are spaced closelyenough for continuity to be assumed.A ‘Measured Mineral Resource’ is that part of amineral resource for which tonnage, densities,shape, physical characteristics, grade and mineralcontent can be estimated with a high level ofconfidence. It is based on detailed and reliableexploration, sampling and testing informationgathered through appropriate techniques fromlocations such as outcrops, trenches, pits,workings and drill holes. The locations arespaced closely enough to confirm geologicaland grade continuity.

glossary of termsA ‘Mineral Reserve’ is the economicallymineable material derived from a measuredand/or indicated mineral resource. It is inclusiveof diluting materials and allows for losses thatmay occur when the material is mined.Appropriate assessments, which may includefeasibility studies, have been carried out,including consideration of, and modification by,realistically assumed mining, metallurgical,economic, marketing, legal, environmental, socialand governmental factors. These assessmentsdemonstrate at the time of reporting thatextraction is reasonably justified. Mineralreserves are sub-divided in order of increasingconfidence into probable mineral reserves andproved mineral reserves.A ‘Probable Mineral Reserve’ is theeconomically mineable material derived from ameasured and/or indicated mineral resource. Itis estimated with a lower level of confidencethan a proved mineral reserve. It is inclusive ofdiluting materials and allows for losses that mayoccur when the material is mined. Appropriateassessments, which may include feasibilitystudies, have been carried out, includingconsideration of, and modification by, realisticallyassumed mining, metallurgical, economic,marketing, legal, environmental, social andgovernmental factors. These assessmentsdemonstrate at the time of reporting thatextraction is reasonably justified.A ‘Proved Mineral Reserve’ is the economicallymineable material derived from a measuredmineral resource. It is estimated with a highlevel of confidence. It is inclusive of dilutingmaterials and allows for losses that may occurwhen the material is mined. Appropriateassessments, which may include feasibilitystudies, have been carried out, includingconsideration of and modification by realisticallyassumed mining, metallurgical, economic,marketing, legal, environmental, social andgovernmental factors. These assessmentsdemonstrate at the time of reporting thatextraction is reasonably justified.

63ManagementSenior ManagementKeith Rumble (appointed 10 July 2001)Chief Executive OfficerJohn Smithies (retired 31 July 2001)Chief Executive OfficerGert AckermanSenior Consulting Engineer – OperationsDavid BrownFinancial DirectorRob DeyEngineering ManagerDerek EngelbrechtSenior Manager: MarketingPaul DunneConsulting Engineer: MetallurgyJohn KarlsonCommercial ManagerCathie MarkusDirector Corporate AffairsChris McDowellChief Operating Officer - IRSHumphrey OliphantSenior Manager: Human ResourcesLes PatonSenior Consulting GeologistGeoff SkeltonConsulting Engineer: RefineriesDirk TheuninckSenior Consulting Engineer: MetallurgyPaul VisserSenior Consulting Engineer: RustenburgOperationsManagement CommitteesExecutive CommitteeArea of responsibility: Review of operationsand the implementation of policies andstrategiesKeith Rumble (Chairman) (appointed 10 July2001)John Smithies (retired 31 July 2001)Gert AckermanDavid BrownDerek EngelbrechtRob DeyJohn KarlsonCathie MarkusHumphrey OliphantLes PatonDirk TheuninckRisk Management CommitteeArea of responsibility: Minimising risk to assetsand income earning capacityDirk Theuninck (Chairman)Gert AckermanDavid BrownChris McDowellFrancois NaudéJohan van DeventerHedging CommitteeArea of responsibility: Hedging metal salesand conversion of foreign exchange proceedsto randsKeith Rumble (Chairman) (appointed 10 July2001)John Smithies (retired 31 July 2001)David BrownDerek EngelbrechtJohan van DeventerImplats EnvironmentalManagement CommitteeArea of responsibility: Managing and rectifyingthe impact which mining and processing haveon the environmentDirk Theuninck (Chairman)Gert AckermanPaul DunnePierre LourensCathie MarkusGeoff SkeltonJohan van DeventerGeorge WatsonFixco Process CommitteeArea of responsibility: Enhancingoperational efficienciesBob Gilmour (Chairman)Les PatonGert AckermanDirk Theuninck

DirectorsNon executive directorsMichael McMahon* (Chairman) (54)Pr.Eng. BSc Mech. Eng. Chairman Gencor. Joined the group in 1990as Managing Director and appointed Chairman in 1993.Daryl O’Connor (63)CA (SA). Joined the board in 1995.Peter Joubert (68)BA DPWM. Chairman, Delta Electrical Industries, Munich ReinsuranceCompany of Africa, Delta Motor Corporation. Director, Malbak, Murray& Roberts Holdings, Nedcor Old Mutual plc. Joined the board in 1995.Mike Pleming (65)Pr. Eng. FIMM. Director, Harmony Gold Mining Company. Joined theboard in 1998.Executive directorsVivienne Mennell (58)BA MBA FCMA THD. Director, Gencor. Joined the board in 1990 asfinancial director. Re-joined the board in 1998 as non-executivedirector.John Roberts (59)FCIS ACMA. Director, Barplats Investments Limited, Senwes LimitedJoined the board in 1998.Leruo Molotlegi (33)B.Arc Joined the board in 2000 as representative of the RoyalBafokeng Nation.

65Executive directorsKeith Rumble (Chief Executive Officer) ( 47 )(appointed 10 July 2001)BSc (Hons) MSc (Geo) Joined the group in 2001 in that capacity.David Brown (Financial Director) (39)CA (SA). Joined the group as Financial Director and appointed to theboard in 1999.John Smithies* (Chief Executive Officer) (56)(retired 31 July 2001)BSc (Mining) (Chem.). Joined the group in 1973 as a MiningEngineering graduate appointed to the board in 1999 andManaging Director in 2000.Cathie Markus (Director: Corporate Affairs) (44)BA LLB. Joined the group as legal adviser in 1991 and appointed tothe board in 1998.* BritishBoard committeesRemuneration CommitteeMichael McMahon – ChairmanPeter JoubertJohn RobertsAudit CommitteeDaryl O’Connor – ChairmanVivienne MennellJohn RobertsHealth, Safety and EnvironmentalAudit CommitteeMike Pleming – ChairmanMichael McMahonTony ScurrDirk Theuninck

Approval of the annual financial statementsThe annual financial statements for the yearended 30 June 2001, which appear on pages 68to 113 have been approved by the Board ofDirectors on 23 August 2001.The directors are responsible for the fairpresentation to shareholders of the affairs of thecompany and of the group as at the end of thefinancial year, and of the results for the period, asset out in the annual financial statements. Thedirectors are responsible for the overall coordinationof the preparation and presentationand for the approval of the financial statements.Responsibility for the initial preparation of thesestatements has been delegated to the officers ofthe company and the group.safeguarded and that transactions are executedand recorded in accordance with generallyaccepted business practices and procedures. Theaccounting policies of the group are set out onpages 79 to 83 of this report.J M McMahonK C RumbleDirectorDirectorThe auditors are responsible for auditing andreporting on the financial statements in thecourse of executing their statutory duties. Thefinancial statements have been prepared on agoing concern basis, conform with applicableaccounting standards and are presentedapplying consistent accounting policiessupported by reasonable and prudentjudgements and estimates. To discharge thisresponsibility, the group maintains accountingand administrative control systems designed toprovide reasonable assurance that assets areCertificate by the company secretaryI, the undersigned, in my capacity as GroupSecretary, do hereby confirm that for thefinancial year ended 30 June 2001, Implats haslodged with the Registrar of Companies all suchreturns as are required of a public company interms of the Companies Act 61 of 1973, asamended, and that all such returns are true,correct and up to date.A M SnashallGroup Secretary

67Report of the independent auditors to the members of Impala Platinum Holdings LimitedWe have audited the annual financial statementsand group annual financial statements of ImpalaPlatinum Holdings Limited set out on pages 68to 113 for the year ended 30 June 2001. Thesefinancial statements are the responsibility of thedirectors of the company. Our responsibility is toexpress an opinion on these financialstatements based on our audit.ScopeWe conducted our audit in accordance withgenerally accepted Auditing Standards in SouthAfrica and in accordance with Internationalauditing standards issued by the InternationalFederation of Accountants. Those standardsrequire that we plan and perform the audit toobtain reasonable assurance that the financialstatements are free of material misstatements.An audit includes:Audit opinionIn our opinion, the financial statements fairlypresent, in all material respects, the financialposition of the group and of the company at 30June 2001 and the results of their operationsand cash flows for the year then ended inaccordance with South African GenerallyAccepted Accounting Practices, InternationalAccounting Standards and in the mannerrequired by the South African Companies Act.PricewaterhouseCoopers Inc.Chartered Accountants (SA)Registered Accountants and AuditorsJohannesburg23 August 2001• Examining, on a test basis, evidencesupporting the amounts and disclosuresin the financial statements• Assessing the accounting principles usedand significant estimates made bymanagement• Evaluating the overall financial statementpresentation.We believe that our audit provides a reasonablebasis for our opinion.

Directors’ reportProfileBusiness of the companyImpala Platinum Holdings Limited ("Implats/thecompany") is principally in the business ofproducing and supplying platinum groupmetals (pgms) to industrial economies. Thecompany’s holdings in various mining andexploration activities are described below:Company Short name Effective Interest % ActivityImpala Platinum Limited Impala 100 Pgm mining, processing, refiningand marketingImpala Refining Services Limited IRS 100 Purchase of concentrate, smelting,refining and sale of resultant pgmsand base metals, and toll-refiningprecious metalTrojan Platinum Limited Trojan *100 Establishment of platinum mineBarplats Investments Limited Barplats 83 Re-opening of Crocodile River mine;exploration at Kennedy’s Vale mineTwo Rivers Platinum Limited Two Rivers 45 Pgm mine developmentZimbabwe Platinum Mines Limited Zimplats 40 Pgm mine developmentMimosa Mining Company (Pty) Limited Mimosa 35 Pgm miningEastern Platinum Limited EPL 27 Pgm mining, processing, refiningand marketingWestern Platinum Limited WPL 27 Pgm mining, processing, refiningand marketingAquarius Platinum (SA) Limited Aquarius (SA) 25 Development of Marikana and EverestSouth ProjectsAquarius Platinum Limited Aquarius 10 Pgm miningKroondal Platinum Limited Kroondal 5 Pgm miningBrandrill Limited Brandrill 6 Mining technology* Subject to 20% participation by empowerment partnersCapitalAuthorised capitalThe company’s authorised share capital of100 000 000 ordinary shares of 20 cents eachremained unchanged during the year.Issued capitalDuring the year 264 475 new ordinary shareswere issued in terms of the Implats shareincentive scheme and 17 010 new ordinaryshares were issued to individual mineral rightowners in terms of an amendment to themining lease agreements. Following theseallotments the issued capital of the companycomprises 66 347 625 ordinary shares of 20cents each (2000: 66 066 140).Unissued share capitalIn terms of a resolution passed at the last annualgeneral meeting, the unissued share capital isunder the control of the directors until theforthcoming annual general meeting.Shareholders will be asked to consider aresolution renewing this authority. The proposedresolution is set out in the notice convening theannual general meeting.Share incentive schemeAt 30 June 2001 the Implats Share PurchaseTrust held 38 700 unallocated shares. No shareswere allocated or released during the year.Share option schemeThe directors are authorised to issue, allot orgrant options to acquire up to a maximum of2 177 000 ordinary shares in the unissued sharecapital of the company in terms of employeeshare options schemes. Details of participationin the share option scheme are set out in Note25 of the financial statements.Shareholding in the companyThe issued capital of the company is held bypublic and non-public entities as follows:No. of shares(000’s) %Public 34 639 52.2Non-public 31 709 47.8Directors 30 0.1Trustees of share scheme 73 0.1Right to appoint a director 1 000 1.5Holding over 10% 30 606 46.1Total 66 348 100.0Gencor Limited holds 30.6 million shares in thecompany (46.1 per cent). No other shareholderbeneficially holds more than five per cent of theissued share capital.

69InvestmentsWinnaarshoekThe company acquired the Winnaarshoekmineral rights from Platexco Inc, a Canadianlisted company for a consideration ofC$191million (R950 million). An integral part ofthe transaction was to acquire the rights tomine the adjacent properties including Claphamand portions of Driekop and Forest Hill.A 20% participation in the project has beenawarded to black empowerment partners asdescribed in post balance sheet events onpage 70.The group is in the process of establishing a175 000 platinum ounce per annum mine whichis expected to commence production inDecember 2003.Aquarius Platinum LimitedThe company holds a 10.1% interest in AquariusPlatinum Limited ("Aquarius") purchased for acash consideration of approximately R29.1million. Aquarius increased its shareholding inKroondal from 45% to 94.3% by means of a cashoffer of R32 per share to Kroondal minorityshareholders. Kroondal shares were delistedfrom the JSE as a result of the transaction.Aquarius Platinum SA LimitedImplats acquired a 25.5% interest in AquariusPlatinum (SA) Limited in exchange for themineral rights in respect of the Everest South, aportion of Everest North and Chieftains Plainprojects. Aquarius SA is currently developing theMarikana platinum project which is expected tocome into production in December 2001,producing some 150 000 ounces of pges perannum. Impala has undertaken to refineplatinum concentrates from the projects.Kroondal Platinum Mines LtdThe company has acquired an additional500 000 shares in Kroondal in terms of anunderwriting agreement with Aquarius. Thecompany’s direct holdings in Kroondal werediluted to 4.7% (2000: 5.8%) by the conversionof Kroondal options to ordinary shares. Due tothe company’s direct shareholding in Aquariusthe effective interest of the company inKroondal’s operations is 14.2%. Subsequently,Kroondal has been delisted.BrandrillImplats hold a 6.4% interest in Brandrill Limited.Brandrill is developing penetrating cone fracture(PCF) technology which is an effective means ofrockbreaking and is suited to continuous miningdue to the minimal toxic fumes. Impala hasentered into a co-operation agreement withBrandrill governing the use of PCF technology.PhilippinesImplats entered into an agreement with PhilnicoDevelopment Limited to conduct a feasibilitystudy on the Nonoc Island Surigo del Norte inthe Philippines. The feasibility study has beencompleted and a leading partner for the projectis being sought by the sponsor.Financial affairsResults for the yearThe results for the year are fully dealt with in thefinancial statements forming part of the annualreport. Refer to pages 74 to 113.Accounting policiesDuring the year certain changes were made tothe group’s accounting policies, to comply withInternational Accounting Standards ("IAS").Details of the new accounting policies and theeffect of the changes are set out on pages 79and 83.DividendsAn interim dividend (No 66) of 1 420 cents pershare was declared on 8 February 2001, a specialdividend of 3 000 cents per share was declaredon 7 February 2001 and a final dividend (No 67)of 2 380 cents per share was declared on 23August 2001, payable on 4 October 2001 a total

directors’ reportof 6 800 cents per share (2000: 1 760 cents pershare). These dividends amounted toR4 509 million of the year (2000:R1 166.7 million).Capital expenditureCapital expenditure for the year amounted toR 2 090 million (2000: R783 million).The estimated R2 billion capital expenditure byImpala envisaged for the 2002 financial year willbe funded from internal resources and, ifappropriate, borrowings.Going concernThe financial statements have been preparedusing the appropriate accounting policies,supported by reasonable and prudentjudgements and estimates. The directors have areasonable expectation that the group hasadequate resources to continue as a goingconcern in the foreseeable future.Associated and subsidiarycompaniesInformation regarding the company’s associatedcompanies and subsidiaries are given in note 13and Annexure A respectively to the financialstatements.PropertyDetails of the freehold and leasehold andbuildings of the various companies arecontained in registers, which are available forinspection at the registered offices of thosecompanies.Post balance sheet eventsZimplatsThe company has entered into an agreementwith Zimplats in terms of which the companyacquires a 30% interest in Zimplats’ HartleyManagement Company (Pvt) Limited, whichcomprises the Ngezi open-cast mine and theHartley joint venture, for an expectedconsideration of R240 million (US$30 million).In addition, the company together with ABSABank Limited ("ABSA") have purchased a 30%equity stake in Australian-listed Zimplats for aconsideration of R131 million (US$16.3 million).The equity stake is held by Impala Platinum(Zimbabwe) (Pty) Limited in which ABSA holds a49% interest and the company holds a 51%interest.The fully diluted interest of the group inZimplats is 40%. The Ngezi project is situatedsome 75 kilometres from the HartleyMetallurgical complex and a feasibility study hasindicated a 100 000 ounce per annum platinummine over a 20 year life.The group advanced a loan of R70.6 million toHartley Management Company (Pvt) Limited inanticipation of the conversion into share capital.Refer to note 15.MimosaThe company acquired a 35% interest in ZCEPlatinum Limited which wholly owns Mimosafor a consideration of US$30 million. Thecontribution will be used to fund an expansionof the mine from 16 000 to approximately68 000 ounces of platinum per annum.Two Rivers PlatinumThe company has entered in to a joint ventureagreement with Anglovaal Mining Limited("Avmin") to develop a 100 000 ounce platinummine of the farm Dwars Rivier in Mpumalangaprovince. The Dwars Rivier mineral rights onboth the UG2 and Merensky reefs will beacquired from Associated Manganese Mines ofSouth Africa Limited for a consideration ofR551 million. The joint venture, Two Rivers, todevelop, manage and operate the new mine willbe held 55% by Avmin and 45% by thecompany.WinnaarshoekOn 11 July 2001 it was announced that MmakauMining would acquire 10% of the Winnaarshoek

71project, while a further 10% would be taken upby empowerment participants in the NorthernProvince. Funding for the acquisition by thepartners is still under negotiation.There were no contracts of significance duringor at the end of the financial year in which thedirectors of the company were materiallyinterested.No other material events have occurred sincethe date of these financial statements and thedate of approval thereof, the knowledge ofwhich would affect the ability of the users ofthese statements to make proper evaluationsand decisions.DirectorateComposition of the BoardDuring the year Mr SV Kearney resigned as aChief Executive Officer of the company andMr JG Smithies was appointed in his stead.Subsequent to the year end Mr JG Smithiesretired and Mr KC Rumble was appointed asdirector and Chief Executive Officer. Memberswill be asked to confirm this appointment at theforthcoming annual general meeting.The directors who retire at the next generalmeeting are Mr DH Brown, Mr PG Joubert,Mr DM O’Connor and Mr MF Pleming; beingeligible they offer themselves for re-election.Interest of directorsThe interests of directors in the shares of thecompany were as follows and did notindividually exceed 1% of the issued sharecapital or voting control of the company.The board contains seven non-executivedirectors, of whom one director is also a directorof the major shareholder, and three executivedirectors.DirectIndirect30 June 2001 2000 2001 2000Beneficial 15 845 500 14 600 12 600Non beneficial – 1 000 – –No material change in the aforegoing interestshas taken place between 30 June and the dateof this report.Directors’ feesIn terms of the Articles of Association the feesfor services as directors are determined by thecompany in general meeting. Director’s fees forservices as a director are currently R80 000 perdirector with an additional amount ofR40 000 for the Chairman. At the forthcomingannual general meeting, it will be proposed toincrease directors’ fees to R90 000 per annumwith an additional amount of R45 000 for thechairman. The increase takes into accountinflation since the last review of directors’ feestwo years previously. Directors serving on boardcommittees are paid R20 000 per annum asmembers of a committee and the Chairman ofthe committee receives R30 000 per annum.These fees have been waived by the executivedirectors.AdministrationSpecial resolutionAt the last annual general meeting the articlesof association were amended by specialresolution to take cognisance of the electronicsettlement and transfer of shares and to allowthe company to acquire its own shares.Financial, administrative andtechnical advisersIn terms of a service agreement, Impala PlatinumLimited acts as financial, administrative andtechnical advisors to the Implats group duringthe year on a fee basis. Messrs D H Brown,P G Joubert, J M McMahon, K C Rumble, J GSmithies and Ms C E Markus had an interest inthis contract to the extent that they are directorsof Impala and of the company, but they do notbeneficially own any shares in Impala.

directors’ reportSecretariesMr. A M Snashall acted as Secretary to Implatsand Impala, and Impala acted as Secretaries toother subsidiaries in the Implats group. Thebusiness and postal addresses of the Secretariesare set out on page 116.London SecretariesThe business and postal addresses of theLondon Secretaries are set out on page 116.Public OfficerMr J van Deventer acted as public officer for thegroup for the year under review.Directors’ remunerationThe directors remuneration for the year underreview was in aggregate as follows:30 June 2001 Fees Package Retirement Other benefits Bonus Total(R 000s) fundExecutiveDH Brown – 912 96 135 199 1 342SV Kearney – 1 874 298 249 1 029 3 450CE Markus – 990 104 139 419 1 652JG Smithies – 1 221 194 173 214 1 802Non-executivePG Joubert 100 100JM McMahon 170 170MV Mennell 100 100L Molotlegi 80 80DM O’Connor 110 110MF Pleming 110 110JV Roberts 120 120790 4 997 692 696 1 861 9 036Note: Other benefits comprise medical aid contributions and provision for annual leave entitlements

73Share optionsDetails of share options outstanding andexercised by executive directors are as follows:Outstanding at 30 June 2001Number of shares Option Date of grant Date from which Expiryunder option price first excercisable DateDH Brown 7 500 57.50 11 January 1999 5 December 1999 5 December 20106 200 146.00 30 June 1999 30 June 2001 30 June 20114 700 200.00 14 March 2000 14 March 2002 14 March 20124 525 344,00 11 January 2001 11 January 2003 11 January 2013SV Kearney 2 650 52.50 28 July 1997 28 July 1999 28 July 20096 050 56.00 10 March 1997 10 March 1999 10 March 200912 300 57,50 12 May 1998 12 May1999 12 May 201013 000 146.00 30 June 1999 30 June 2001 30 June 201117 000 200.00 14 March 2000 14 March 2002 14 March 2012CE Markus 900 52.50 28 July1997 28 July 1999 28 July 20098 025 57.50 12 May 1998 12 May 1999 12 May 20105 500 146.00 30 June 1999 30 June 2001 30 June 20117 200 200.00 14 March 2000 14 March 2002 14 March 20124 075 344.00 11 January 2001 11 January 2003 11 January 2013JG SmithiesnilVesting of options first occurs two years after the granting of the options, limited to a maximum of 25% of the total options granted. In subsequentyears an additional 25% per year vests and can be varied by the Remuneration Committee.Exercised during the yearNumber of options Option Averageexercised price Excercise priceDH Brown 10 000 57.50 383.34SV Kearney 4 000 40.00 300.861 375 52.50 305.454 525 56.00 352.9736 900 57.50 352.96250 75.00 421.46CE Markus 900 52.50 400.2014 575 57.50 391.37750 75.00 400.20JG Smithies 3 300 52.50 359.6218 100 57.50 410.66725 75.00 389.003 000 146.00 389.005 700 200.00 387.07

Impala Platinum Holdings Limited and its subsidiariesIncome statementsCompanyGroup2000 2001 for the year ended 30 June (R million) Notes 2001 2000Turnover 1 11 969.1 7 003.6Cost of sales 5 120.3 3 900.8On-mine operations 2 2 330.1 1 997.6Concentrating and smelting operations 3 492.5 440.7Refining operations 4 333.3 307.9Amortisation of mining assets 212.2 139.9Metals purchased 1 968.8 698.8Other costs 5 117.1 96.6(Increase)/decrease in metal inventories (333.7) 219.3Operating income 6 848.8 3 102.8(33.3) (62.9) Other income/(expense) 6 94.5 62.0763.3 4 111.1 Net financial income 7 383.3 228.2Share of pre-taxation income from associates 1 031.4 332.8Royalty expense (890.3) (406.4)730.0 4 048.2 Income before taxation 8 7 467.7 3 319.4(0.2) 7.6 Taxation 9 2 815.2 1 061.9730.2 4 040.6 Income after taxation 4 652.5 2 257.5Outside shareholders’ interest 5.4 2.5730.2 4 040.6 Attributable income 4 647.1 2 255.0Earnings per share (cents) 10– basic 7 024 3 422– diluted 6 970 3 388Headline earnings per share (cents)– basic 7 024 3 383– diluted 6 970 3 348Cash earnings per share (cents)– basic 10 030 4 517– diluted 9 953 4 471Dividends proposed and declared 11Dividends proposed basis– interim dividend 2001 per share (cents) 1 420 340– final dividend 2001 per share (cents) 2 380 1 420– special dividend per share (cents) 3 000 –6 800 1 760Dividends declared basis– final dividend 2000 per share (cents) 1 420 710– interim dividend 2001 per share (cents) 1 420 340– special dividend per share (cents) 3 000 –5 840 1 050The accounting policies on pages 79 to 83 and the noteson pages 84 to 113 form an integral part of these financial statements.

Balance sheets75CompanyGroup2000 2001 as at 30 June (R million) Notes 2001 2000ASSETS591.4 824.5 Non-current assets 6 547.8 4 230.35.5 5.6 Property, plant and equipment 12 5 230.6 3 357.3527.9 423.5 Investments in associates and subsidiaries 13 791.6 694.058.0 162.2 Other investments 14 213.8 95.5– 233.2 Receivables 15 233.2 -Prepayments 16 78.6 83.537.5 9.4 Current assets 5 162.3 4 504.3Inventories 17 779.3 439.637.5 9.4 Receivables 18 1 345.4 958.0– – Cash and cash equivalents 19 3 037.6 3 106.7628.9 833.9 Total assets 11 710.1 8 734.6EQUITY AND LIABILITIES612.5 810.5 Capital and reserves 6 430.0 5 625.613.2 13.3 Ordinary shares 20 13.3 13.2537.8 562.8 Share premium 20 562.8 537.8Translation reserve (0.5) (0.4)61.5 234.4 Retained earnings before proposed final dividend 5 854.4 5 075.061.5 234.4 Retained earnings after proposed final dividend 4 275.3 4 136.9938.1 1 579.1 Proposed final dividend 1 579.1 938.1(938.1) (1 579.1) Proposed final dividend payable by subsidiariesOutside shareholders’ interest 21 19.2 13.8Non-current liabilities 1 465.2 1 195.1Borrowings 22 113.1 137.6Deferred taxation 23 1 156.1 889.7Pension and other post-retirement obligations 24 66.0 66.0Provision for environmental obligations 26 130.0 101.816.4 23.4 Current liabilities 3 795.7 1 900.115.4 15.3 Trade and other payables 27 2 282.3 1 211.31.0 8.1 Current taxation liabilities 1 488.9 663.5Borrowings 22 24.5 25.3628.9 833.9 Total equity and liabilities 11 710.1 8 734.6The accounting policies on pages 79 to 83 and the noteson pages 84 to 113 form an integral part of these financial statements.

Impala Platinum Holdings Limited and its subsidiariesConsolidated statement of changes in equityfor the year ended 30 June (R million)Share Share Translation RetainedNotes capital premium reserves earnings TotalBalance previously reported at 30 June 1999 13.1 517.3 1.6 2 989.7 3 521.7Change in accounting policy (refer note 20of accounting policies) in respect of:Proposal for dividend 466.6 466.6Provision for secondary tax on companies 55.6 55.6Restated balance at 30 June 1999 13.1 517.3 1.6 3 511.9 4 043.9Dividends paid 11 (691.9) (691.9)Net profit attributable to ordinaryshareholders 2 255.0 2 255.0Translation differences on foreign subsidiary (2.0) (2.0)Issue of share capital 20 0.1 20.5 20.6Balance at 30 June 2000 13.2 537.8 (0.4) 5 075.0 5 625.6Dividends paid 11 (3 867.7) (3 867.7)Net profit attributable to ordinaryshareholders 4 647.1 4 647.1Translation differences on foreign subsidiary (0.1) (0.1)Issue of share capital 20 0.1 25.0 25.1Balance at 30 June 2001 13.3 562.8 (0.5) 5 854.4 6 430.0The accounting policies on pages 79 to 83 and the notes on pages 84 to 113 form an integral part of these financial statements.

77Company statement of changes in equityfor the year ended 30 June (R million)Share Share RetainedNotes capital premium earnings TotalBalance previously reported at 30 June 1999 13.1 517.3 0.8 531.2Change in accounting policy (refer note 20of accounting policies) in respect of:Adopting IAS (10) revised 22.4 22.4Restated balance at 30 June 1999 13.1 517.3 23.2 553.6Dividends paid 11 (691.9) (691.9)Net profit attributable to ordinary shareholders 730.2 730.2Issue of share capital 20 0.1 20.5 20.6Balance at 30 June 2000 13.2 537.8 61.5 612.5Dividends paid 11 (3 867.7) (3 867.7)Net profit attributable to ordinary shareholders 4 040.6 4 040.6Issue of share capital 20 0.1 25.0 25.1Balance at 30 June 2001 13.3 562.8 234.4 810.5The accounting policies on pages 79 to 83 and the notes on pages 84 to 113 form anintegral part of these financial statements.

Impala Platinum Holdings Limited and its subsidiariesCash flow statementsCompanyGroup2000 2001 for the year ended 30 June (R million) Notes 2001 2000Operating activities(58.2) (34.9) Cash generated from/(used in) operations 31 6 635.7 2 976.4763.3 4 111.1 Financial income 7 400.6 253.4Interest paid 7 (14.4) (22.1)(1.8) (0.5) Taxation paid 32 (1 339.3) (608.3)703.3 4 075.7 Net cash from operating activities 5 682.6 2 599.4Investing activities(5.3) (0.1) Purchase of property, plant and equipment 12 (2 075.5) (789.2)Proceeds from fixed assets disposed 12 4.6 7.423.5 109.9 Repayment of non-current investments 13 542.3 147.7(50.3) (94.1) Purchase of listed investments 14 (94.1) (50.3)– (10.1) Purchase of unlisted investments 14 (10.1) –– (233.2) Loans to related and other undertakings 15 (233.2) –Payments made for post-retirement benefits 24 (2.9) (2.9)Payments made to environmental trust 26 (9.4) (5.0)Cash effect of sale of subsidiaries 33 – 5.4(32.1) (227.6) Net cash used in investing activities (1 878.3) (686.9)Financing activities20.6 19.6 Issue of ordinary shares 20 19.6 20.6Payments on short-term borrowings 22 (0.8) (23.1)Payments on long-term borrowings 22 (24.5) (24.7)(691.9) (3 867.7) Dividends paid to group shareholders (3 867.7) (691.9)(671.3) (3 848.1) Net cash used in financing activities (3 873.4) (719.1)(0.1) 0.0 (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (69.1) 1 193.4Movement in cash and cash equivalents0.1 0.0 At start of year 3 106.7 1 913.3(0.1) 0.0 (Decrease)/increase (69.1) 1 193.40.0 0.0 At end of year 3 037.6 3 106.7The accounting policies on pages 79 to 83 and the notes onpages 84 to 113 form an integral part of these financial statements.

79Accounting policies1 Basis of preparationThe financial statements are prepared on thehistorical cost basis. The following are theprincipal accounting policies used by the groupwhich are in accordance with InternationalAccounting Standards, South African GenerallyAccepted Accounting Practice, the South AfricanCompanies Act and are consistent with those ofthe previous year, except as set out in paragraph20.2 ConsolidationThe consolidated financial statements includethose of the holding company and itssubsidiaries. Subsidiary undertaking, are thosecompanies in which the group, directly orindirectly, has an interest of more than one halfof the voting rights or otherwise has power toexercise control over the operations. Subsidiariesare consolidated from the date on whicheffective control is transferred to the group andare no longer consolidated from date ofdisposal. Internal profits and sales are eliminatedon consolidation and all sales revenue and profitfigures relate to external transactions only.Any excess or shortfall of the purchase priceover the fair value of the attributable net assetsof subsidiaries at the date of acquisition iscapitalised and amortised over the useful lives ofthe applicable underlying assets. (Referparagraph 8).3 Investments in associatesInvestments in associated undertakings areaccounted for by the equity method ofaccounting. These are undertakings in which thegroup has a long term interest and over which itexercises significant influence but not control.Provisions are recorded for long termimpairment in values.Equity accounting involves recognising in theincome statement the group’s share of theassociates’ post acquisition profit or loss for theyear. The group’s interest in the associate iscarried in the balance sheet at an amount thatreflects its share of the net assets of theassociate and includes any excess or deficit ofthe purchase price over the fair value ofattributable assets of the associate at date ofacquisition. Any excess or deficit of the purchaseprice over the attributable net assets of theassociate is amortised over the useful lives ofunderlying assets. (Refer paragraph 8).4 Foreign currenciesIncome statements of foreign entities andassociated undertakings are translated to rand ataverage exchange rates for the year and thebalance sheets are translated at rates ruling atthe balance sheet date. The exchange differencearising on translation of assets and liabilities,including the excess or shortfall of the purchaseprice over a fair value of attributable net assetsat date of acquisition, of foreign subsidiaries andassociates are transferred directly to equity. Ondisposal of the foreign entity such translationdifferences are recognised in the incomestatement as part of the gain or loss on sale.Foreign currency transactions are accounted forat the rates of exchange ruling at the date of thetransaction. Monetary assets and liabilities aretranslated at year end exchange rates unlesshedged by forward exchange contracts, inwhich case the rates specified in such forwardcontracts are used. Gains and losses arising onsettlement of such transactions and from thetranslation of foreign currency monetary assetsand liabilities arising from such transactions arerecognised in the income statement.Forward exchange contracts are entered into tohedge anticipated future transactions. Theseinstruments are not recognised in the financialstatements until the settlement date of thesetransactions as the purpose of these contracts isto reduce exposure to fluctuation in foreigncurrency exchange rates. No provision is madefor potential gains and losses on open contracts.5 Commodity hedging transactionMetal futures, options and lease contracts areentered into to preserve and enhance futurerevenue streams. Hedging contracts are not

accounting policiesrecognised in the financial statements untilsettlement date, at which time they are includedin the determination of revenue. No provision ismade for potential gains or losses on opencontracts. Non-hedging contracts are initiallyrecorded at cost with any subsequent changesin their fair value recorded as a market-tomarketadjustment in the income statement.6 Financial InstrumentsFinancial instruments carried on the balancesheet include cash and bank balances, moneymarket instruments, investments, receivables,trade creditors, leases and borrowings.The group is also party to financial instrumentsthat reduce risk to foreign currency and futuremetal price fluctuations which are notrecognised in the financial statements atinception. The particular recognition methodsadopted are disclosed in the individual policystatements associated with each item.7 InvestmentsInvestments are stated at cost and are onlywritten down where the directors are of theopinion that there has been a permanentdiminution in value. Where there has been apermanent diminution in value of aninvestment, it is recognised as an expense in theperiod in which the diminution is recognised.On disposal of an investment, the differencebetween the net disposal proceeds and thecarrying amount is charged or credited to theincome statement.8 Property, plant and equipment• Mining assets:Mining assets are recorded at cost. Expenditure,including evaluation costs, incurred to establishor expand productive capacity, to support andmaintain that productive capacity and networking costs incurred on mines prior to thecommencement of commercial levels ofproduction, are capitalised to mining assets.Interest on borrowings, specifically to financeestablishment of mining assets, is capitaliseduntil commercial levels of production areachieved.• Mothballed mining operations:The net assets of mothballed operations arewritten down to net realisable value.Expenditure on the care and maintenance ofthese operations is charged against income, asincurred.• Amortisation:Mining assets are amortised using the units-ofproductionmethod based on estimatedeconomically recoverable proven and probableore reserves, limited to a maximum period of 25years.• Impairment:The recoverability of the long-term assets isreviewed by management on a continuousbasis, based on estimates of future net cashflows. These estimates are subject to risks anduncertainties including future metal prices andexchange rates. It is therefore reasonablypossible that changes could occur which mayaffect the recoverability of the mining assets.Where the value in use is less than theestimated net book value, the impairment ischarged against income to reduce the carryingvalue to the recoverable amount of the asset.• Mining exploration:Expenditure on mining exploration in new areasof interest is charged against income asincurred. Costs related to property acquisitions,surface and mineral rights are capitalised. Wherethe directors consider that there is littlelikelihood of the properties or rights beingexploited, or the value of the exploration rightshave diminished below cost, a write down iseffected against exploration expenditure.• Other fixed assets:Other fixed non-mining assets are recorded atcost. Depreciation is calculated using rates andbases which are designed to write off the assetsover their expected useful lives. Freeholdproperties are not depreciated.9 Accounting for leasesLeases of property, plant and equipment wherethe group assumes substantially all of thebenefits and risks of ownership are classified as

81finance leases. Finance leases are capitalised atthe estimated present value of the underlyinglease payments. Each lease payment is allocatedbetween the liability and finance charges so asto achieve a constant rate on the balanceoutstanding. The corresponding rentalobligations, net of finance charges, are includedin other long-term payables. The interestelement is expensed to the income statement,as a finance charge, over the lease period.The property, plant and equipment acquiredunder finance leasing contracts is amortised interms of the group accounting policy. (Refer toparagraph 8).Leases of assets under which all the risks andbenefits of ownership are effectively retained bythe lessor are classified as operating leases.Payments made under operating leases arecharged to the income statement in the periodin which they occur.When an operating lease is terminated beforethe lease period has expired, any paymentrequired to be made to the lessor by way ofpenalty is recognised as an expense in theperiod in which termination takes place.10 Inventories• Metal inventories:Platinum, palladium and rhodium are treated asmain products and other platinum group- andbase metals produced as by-products. Metalsmined by the company, including in-processmetal contained in matte produced by thesmelter and precious metal concentrate in thebase and precious metal refineries, are valued atthe lower of average cost of production andestimated net realisable value. Quantities of inprocessmetals are based on latest availableassays. The average cost of production is takenas total costs incurred on mining and refining,including amortisation, less net revenue fromby-products. Costs are allocated to mainproducts on a units produced basis. Refined byproductsare valued at their estimated netrealisable value. Stocks of platinum group metalspurchased or recycled by the company arevalued at the lower of cost and estimated netrealisable value.• Stores and materials:Stores and materials are valued at the lower ofcost and net realisable value, on a first-in-firstoutbasis. Obsolete, redundant and slow movingstores are identified and written down toeconomic or realisable values.11 Trade receivablesTrade receivables are carried at anticipatedrealisable value. An estimate is made fordoubtful receivables based on a review of alloutstanding amounts at year end. Bad debts arewritten off during the year in which they areidentified.12 Cash and cash equivalentsFor the purposes of the cash flow statement,cash and cash equivalents comprise cash inhand, deposits held at call with banks,investments in money market instruments andshort term unlisted investments, net of bankoverdrafts. In the balance sheet, bank overdraftsare included in borrowings under currentliabilities.13 ProvisionsProvisions are recognised when the group has apresent legal or constructive obligation as aresult of past events where it is probable that anoutflow of resources embodying economicbenefits will be required to settle the obligation,and a reliable estimate of the amount of theobligation can be made.14 Segmental reportingThe group is an integrated pgm and associatedbase metals producer. On a primary basis, thebusiness segments are:- mine-to-market primary pgm producer,including marketing of metals produced bythe group;- mine-to-concentrate primary pgm producer;- toll refiner of third party material.

accounting policies15 Pension and other post-retirementobligationsThe group operates or participates in a numberof defined benefit and defined contributionretirement plans for the group’s employees. Thepension plans are funded by payments from theemployees and by the relevant groupcompanies taking account of therecommendations of independent qualifiedactuaries. The assets of the different plans areheld by independently managed trust funds.These funds are governed by the Pension FundAct of 1956. Defined benefit plans such as theMine Officials Pension Fund and the MineEmployees Pension Fund are subject to actuarialvaluations at intervals of no more than threeyears.These plans are, in substance, accounted for asdefined contribution plans. Contributions to thedefined benefit and contribution plans aretherefore charged to income as incurred.The group provides post-retirement health carebenefits to qualifying retirees. The expectedcosts of these benefits are accrued over theperiod of employment. Valuations of theseobligations are carried out by independentqualified actuaries at intervals of no more thanthree years.16 Deferred income taxationDeferred taxation is calculated on acomprehensive basis using the balance sheetapproach. Deferred tax liabilities or assets arerecognised by applying expected corporate taxrates to the temporary differences existing ateach balance sheet date between the tax valuesof assets and liabilities and their carryingamounts where such temporary differences areexpected to result in taxable or deductibleamounts in determining taxable profits forfuture periods when the carrying amount of theassets or liability is recovered or settled.The principal temporary differences arise fromamortisation and depreciation on property, plantand equipment, provisions, post-retirementbenefits and tax losses carried forward. Deferredtax assets relating to the carry forward ofunused tax losses are recognised to the extentthat it is probable that future taxable profit willbe available against which the unused tax lossescan be utilised.17 Environmental obligations• Rehabilitation costs:The net present value of future rehabilitationcost estimates are recognised and provided forin full in the financial statements. The estimatesare reviewed annually to take into account theeffects of inflation and changes in the estimatesare discounted using rates that reflect the timevalue of money.Annual increases in the provision are charged toincome and are split between finance costsrelating to the change in the present value ofthe provision, inflationary increases in theprovision and changes in the estimates. Thepresent value of additional environmentaldisturbances created are capitalised to miningassets along with a corresponding increase inthe rehabilitation provision. The rehabilitationasset is amortised in terms of the group’saccounting policy (Refer paragraph 8).Rehabilitation projects undertaken, included inthe estimates, are charged to the provision asincurred.• Ongoing rehabilitation cost:The cost of the ongoing current programmes toprevent and control pollution is charged againstincome as incurred.• Impala Pollution, Rehabilitation and ClosureTrust Fund:Annual contributions are made to the group’strust fund, created in accordance with statutoryrequirements, to provide for the estimated costof rehabilitation during and at the end of the lifeof the group’s mines. Income earned on monies

83paid to the trust is accounted for as investmentincome. The funds contributed to the trust areincluded under investments.18 Revenue recognitionTurnover comprises the rand amount receivedand receivable from customers in respect of thesupply of metals mined, metals purchased andtoll income received by the group and the netprofit and losses arising from hedgingtransactions to the extent that they relate tothat metal and have been matched at the dateof the financial statements. Revenue isrecognised at the date of dispatch of metal fromthe refinery, net of sales taxes and discounts. Tollrefining income is recognised at date ofdeclaration or dispatch of metal from therefinery in accordance with the relevantagreements with customers and aftereliminating sales within the group.The effect of the change is a R50.0 millionincrease in attributable earnings for the yearended 30 June 2000. Opening retained earningshave been adjusted in the consolidated- andcompany statements of changes in equity.Other revenues earned by the group arerecognised on the following bases:• Interest income – as it accrues (taking intoaccount the effective yield on the asset)unless collectibility is in doubt.• Dividend income – when the shareholder’sright to receive payment is established,recognised at the last date of registration.19 ComparativesWhere necessary, comparative figures have beenadjusted to conform with changes inpresentation in the current year.20 Changes in accounting policiesDuring the year, the group adopted theprovisions of International Accounting Standards(IAS) 10 (revised) (Events after the balance sheetdate).Under the revised accounting policy dividendsand related secondary tax on companies (STC)will only be brought to account once dividendshave been declared.

Notes to the financial statementsFor the year ended 30 June (R million)1 SEGMENTAL REPORTINGSummary of business segments for the year ended 30 June 2001:Impala Barplats Impala Inter TotalPlatinum Refining SegmentalServices AdjustmentSales revenue from: 11 532.8 116.9 1 871.6 (1 552.2) 11 969.1Metals mined 9 578.1 9 578.1Metals purchased 1 954.7 1 737.0 (1 435.3) 2 256.4Toll income 134.6 134.6Inter-company concentrate sales 116.9 (116.9) 0.0Segmental cost of sales 5 054.2 57.9 1 509.1 (1 500.9) 5 120.3Metals mined 3 371.1 57.9 3 429.0Other cost 56.2 56.2Metals purchased 1 721.0 1 800.0 (1 552.2) 1 968.8Gross cost 5 092.1 57.9 1 856.2 (1 552.2) 5 454.0Increase/(decrease) in metal inventories 37.9 347.1 (51.3) 333.7Operating income 6 478.6 59.0 362.5 (51.3) 6 848.8Impala Barplats Impala Other TotalPlatinumRefiningServicesSegmental assets 5 355.4 302.8 463.3 5 588.6 11 710.1Segmental liabilities 2 041.7 188.6 520.4 2 529.4 5 280.1Other informationCapital expenditure 978.4 132.7 979.1 2 090.2Depreciation 5.1 0.9 6.0Amortisation 192.0 20.2 212.2Statistical information:Total metals producedPlatinum (‘000 oz) 1 002 289 1 291Palladium (‘000 oz) 481 200 681Rhodium (‘000 oz) 128 36 164Nickel (‘000 tons) 7.0 7.0 14.0Pge in concentrate produced (kg) 960 960Gross margin analysis (%) 56.2 50.5 19.4 57.2Metals mined 65.2 65.2Metals purchased – Impala 12.0 12.0Metals purchased – Impala Refining Services 19.4 19.4Inter-company concentrate sales 50.5 50.5

85For the year ended 30 June (R million)1 SEGMENTAL REPORTING (continued)Summary of business segments for the year ended 30 June 2000:Impala Barplats Impala Inter TotalPlatinum Refining SegmentalServices AdjustmentSales revenue 6 609.9 835.4 (441.7) 7 003.6Metals mined 6 053.9 6 053.9Metals purchased 556.0 742.5 (441.7) 856.8Toll income 92.9 92.9Inter-company concentrate sales – –Segmental cost of sales 3 649.5 693.0 (441.7) 3 900.8Metals mined 2 932.5 2 932.5Other cost 50.2 50.2Metals purchased 497.7 642.8 (441.7) 698.8Gross cost 3 430.2 693.0 (441.7) 3 681.5Decrease in metal inventories 219.3 219.3Operating income 2 960.4 142.4 3 102.8Impala Barplats Impala Other TotalPlatinumRefiningServicesSegmental assets 4 329.4 335.3 4 069.9 8 734.6Segmental liabilities 1 321.2 317.9 1 469.9 3 109.0Other informationCapital expenditure 732.5 50.4 782.9Depreciation 2.4 0.9 3.3Amortisation 139.9 139.9Statistical information:Total metals producedPlatinum (‘000 oz) 1 020 179 1 199Palladium (‘000 oz) 493 143 636Rhodium (‘000 oz) 131 24 155Nickel (‘000 tons) 7.2 6.6 13.8Pge in concentrate produced (kg) –Gross margin analysis (%) 44.8 17.0 44.3Metals mined 47.9 47.9Metals purchased – Impala 10.5 10.5Metals purchased – Impala Refining Services 17.0 17.0Inter-company concentrate sales –

Notes to the financial statements (continued)For the year ended 30 June (R million)1 SEGMENTAL REPORTING (continued)Notes to business segment analysis:Sales revenueMetals minedReflect the mine-to-market sales from the Impala lease area.Metals purchasedRevenue from metals purchased is recognised within two separate legal entities:– for Impala Platinum Limited this incorporates sales of metals purchased, principally from Impala Refining Services.– for Impala Refining Services Limited this includes sales of metals purchased from third party refining customers. The majority ofsales are to Impala Platinum Limited, and a portion directly to the market.Toll incomeFees earned by Impala Refining Services for treatment of metals from third party refining customers.Inter-company concentrate salesSale of concentrate from Barplats mining activities to Impala Refining Services.Segmental cost of salesGross costComprises total costs associated with the mining, refining and purchase of metals.Inter segmental adjustmentsElimination of inter-segment sales, purchases and unrealised profit in the group.Segmental assetsThe operating assets, fixed, current and non-current, employed to generate segmental revenue.Impala Refining Services uses the Impala Platinum Limited processing assets for which it is charged a market related fee.Segmental liabilitiesThe operating liabilities, current and non-current, resulting from segmental operating activities.

87GroupFor the year ended 30 June (R million) 2001 20001 SEGMENTAL REPORTING (continued)The following is a summary of the geographicalsegments for the year ended 30 June:SalesMain products 10 581.3 5 888.4North America 3 593.3 2 185.5Asia 3 270.9 2 125.4Europe 1 571.2 979.0South Africa 2 145.9 598.5By-products 1 253.3 1 022.3North America 208.6 174.1Asia 219.3 151.9Europe 206.8 130.9South Africa 618.6 565.4Toll income 134.5 92.9North America 12.9 9.7Asia 5.0 1.1Europe 27.8 19.7Australia 15.5 5.7South Africa 73.3 56.711 969.1 7 003.6The sales revenue and toll income segments are determined by the country in whichthe customer is located.No geographical allocation of assets and liabilities is made, given the concentrationwithin the Republic of South Africa.

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 20002 ON-MINE OPERATIONSOn-mine costs exclude amortisation and comprisethe following principal categories:Labour 1 495.0 1 319.2Materials and other mining costs 685.4 567.2Utilities 130.1 111.2Contract mining 19.6 –2 330.1 1 997.63 CONCENTRATING AND SMELTING OPERATIONSConcentrating and smelting costs exclude amortisationand comprise the following principal categories:Labour 109.0 98.1Materials and other costs 240.1 214.7Utilities 128.8 127.9Contract concentrating 14.6 –492.5 440.74 REFINING OPERATIONSRefining costs exclude amortisation and comprisethe following principal categories:Labour 130.7 117.0Materials and other costs 173.8 165.4Utilities 28.8 25.5333.3 307.9

89CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 20005 OTHER COSTSOther costs comprise the following principal categories:Corporate office 57.8 40.0Selling and promotional expenses 45.0 37.0Rehabilitation provision – inflation adjustment 4.7 4.9Other costs 9.6 14.7117.1 96.66 OTHER INCOME/(EXPENSE)Currency exchange gains 157.7 20.0(11.1) (27.1) Exploration expenditure (49.0) (11.1)(22.2) (35.8) Other (29.5) (0.9)Insurance claim 15.3 27.9Disposal of subsidiary – 26.1(33.3) (62.9) 94.5 62.07 NET FINANCIAL INCOMENet financial income consists of the following principal categories:– 7.8 Interest received 387.4 246.0763.3 4 103.3 Dividends received 13.2 7.4Interest expense (14.4) (22.1)Rehabilitation provision – present value adjustment (2.9) (3.1)763.3 4 111.1 383.3 228.2

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 20008 INCOME BEFORE TAXATIONThe following items have been charged in arriving atincome before taxation:Auditors’ remuneration 1.4 1.4Fees 1.4 1.3Other services – 0.1Amortisation of goodwill in associates (Refer note 13) 7.4 7.4Provision for post-retirement medical benefits (Refer note 24) 2.9 2.9Amortisation of fixed assets (Refer note 12) 212.2 139.9Mining assets 209.5 137.2Leased assets 2.7 2.7Depreciation of property, plant and equipment (Refer note 12) 6.0 3.315.5 13.0 Professional fees 30.1 22.0Employment costs (Refer notes: 2, 3 and 4) 1 734.7 1 534.3Wages and salaries 1 619.2 1 428.5Pension costs – defined contribution plans (Refer note 24) 107.8 61.0Pension costs – defined benefit plans (Refer note 24) 7.7 44.8Average weekly number of employees in the group (thousand) 28.0 28.39 TAXATION(0.2) 7.6 Current taxation 2 164.7 804.4Deferred taxation – current period (Refer note 23) 266.4 144.7Share of taxation of associates 384.1 112.8(0.2) 7.6 Taxation for the period 2 815.2 1 061.9Comprising:(0.2) 7.6 South African normal taxation 2 374.9 985.9Mining 2 025.7 859.1(0.2) 7.6 Non-mining 349.2 148.4Prior years mining overprovision – 21.6Secondary taxation on companies 440.3 76.0(0.2) 7.6 2 815.2 1 061.9

91CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 20009 TAXATION (continued)The taxation of the group’s profit differs as follows from thetheoretical charge that would arise using the basic taxation rate:% % % %30.0 30.0 Normal taxation rate for companies 30.0 30.0Adjusted for:1.4 0.6 Disallowable expenditure 0.9 0.7Share of taxation of associates 1.0 0.4(31.4) (30.4) Exempt income (0.1) (0.4)Prior year overprovision – (0.7)Secondary taxation on companies 5.9 2.3Deferred taxation – prior year adjustment – (0.3)0.0 0.2 Effective taxation rate 37.7 32.010 EARNINGS PER SHAREBasic earnings per share is calculated by dividing the net incomeattributable to shareholders by the weighted number of ordinaryshares in issue during the year.Net income attributable to shareholders (R million) 4 647.1 2 255.0Weighted average number of ordinary shares in issue (millions) 66.158 65.891Basic earnings per share (cents) 7 024 3 422For the diluted earnings per share the weighted average numberof ordinary shares in issue is adjusted to assume conversion of allshare options granted to employees.Weighted average number of ordinary shares in issue (millions) 66.158 65.891Adjustments for share options (millions) 0.515 0.675Weighted average number of ordinary shares for diluted earningsper share (millions) 66.673 66.566Diluted earnings per share (cents) 6 970 3 388

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200010 EARNINGS PER SHARE (continued)The calculation for headline earnings per share is based on thebasic earnings per share calculation adjusted for the following item:Net income attributable to shareholders 4 647.1 2 255.0Less: profit on sale of Messina Limited – 26.1Headline earnings 4 647.1 2 228.9Headline earnings per share (cents) – basic 7 024 3 383– diluted 6 970 3 348The calculation for cash earnings per share is based on netoperating cashflow (Refer note 31) 6 635.7 2 976.4Cash earnings per share (cents) – basic 10 030 4 517– diluted 9 953 4 47111 DIVIDENDS DECLAREDAs a result of adopting IAS 10 (revised), dividends now relate tothose declared in the current financial year. The final dividendproposed for this financial year will only be approved after thebalance sheet date.Dividends declared466.6 938.1 Final dividend No. 65 of 1 420 cents per share (1999: 710 cents) 938.1 466.6225.3 941.4 Interim dividend No. 66 of 1 420 cents per share (2000: 340 cents) 941.4 225.3691.9 1 879.5 1 879.5 691.9– 1 988.2 Special dividend of 3 000 cents per share 1 988.2 –691.9 3 867.7 3 867.7 691.9Dividend cover (excluding special dividend)Based on attributable income 2.5 3.3Based on headline earnings (Refer note 10) 2.5 3.2Dividend cover (including special dividend)Based on attributable income 1.2 3.2

93CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200011 DIVIDENDS DECLARED (continued)Dividends proposedUnder the previous accounting policy, and excluding the specialdividend, the dividends proposed would have been as follows:225.3 941.4 Interim dividend No. 66 of 1 420 cents per share (2000: 340 cents) 941.4 225.3938.1 1 579.1 Final dividend proposed: No. 67 of 2 380 cents per share (2000: 1 420) 1 579.1 938.11 163.4 2 520.5 2 520.5 1 163.4Dividend coverBased on attributable income 1.9 1.9Based on headline earnings (Refer note 10) 1.9 1.9The final dividend in respect of the 2001 financial year of 2 380 centsper share amounting to a total of R1 579.1 million, was approved on23rd August 2001.These financial statements do not reflect this dividend payable, whichwill be accounted for in the year ended 30 June 2002.12 PROPERTY, PLANT AND EQUIPMENTMining assets, at costThese comprise expenditure on shafts, plant and equipment, miningdevelopment and general capital expenditure.Cost 6 761.1 4 674.1Opening balance 4 674.1 3 912.0Additions (including rehabilitation asset – refer note 26) 2 090.2 782.9Less: disposals 3.2 20.8Accumulated amortisation 1 562.7 1 350.5Opening balance 1 350.5 1 210.6Charge for the year 212.2 139.9Net book value 5 198.4 3 323.6

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200012 PROPERTY, PLANT AND EQUIPMENT (continued)Other assetsThese comprise expenditure on freehold land and buildings,motor vehicles, furniture, plant and equipment, leased equipment.5.5 5.6 Cost 40.0 39.50.2 5.5 Opening balance 39.5 37.35.3 0.1 Additions 5.9 6.3Less: disposals 5.4 4.1Accumulated depreciation 7.8 5.8Opening balance 5.8 4.9Charge for the year 6.0 3.3Less: disposals 4.0 2.45.5 5.6 Net book value 32.2 33.75.5 5.6 Total net book value of fixed assets 5 230.6 3 357.313 INVESTMENTS IN ASSOCIATES AND SUBSIDIARIESAssociatesShares at cost 430.8 430.8Amortisation of goodwill arising on acquisition (88.1) (80.7)Dividends received (765.5) (223.2)Share of post acquisition retained income 1 214.4 567.1Share of results before taxation 1 871.7 840.3Less: share of taxation 657.3 273.2Closing net book amount 791.6 694.0Valued by the directors at book value.A loan facility of R174.1 million (2000: R147.2 million) has beenguaranteed in favour of banking institutions, available forutilisation by the associates.Goodwill included in carrying value:At cost 185.0 185.0Less: accumulated depreciation 88.1 80.7Closing balance 96.9 104.3

95CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200013 INVESTMENTS IN ASSOCIATES AND SUBSIDIARIES (continued)Shares beneficially owned in the undermentioned companies involvedin the business of mining, refining and marketing of platinum groupmetals.Number of Shares2001 2000Western Platinum LimitedOrdinary shares 6 779 924 6 779 924Participating preference shares 540 000 540 000Effective holding: 27.1%Eastern Platinum LimitedOrdinary shares 134 444 134 444Participating preference shares 14 666 14 666Effective holding: 27.1%Summarised balance sheet (R million)31 March 31 March2001 2000Capital and reserves 2 569.4 2 180.8Non-current liabilities 1 172.4 898.03 741.8 3 078.8Fixed assets 3 839.9 3 095.2Net current (liabilities) (98.1) (16.4)3 741.8 3 078.8The associated companies prepare their financial statements to 30 Septemberto conform to the financial year of their holding company. Only publiclyavailable information for these associate companies has been used for equityaccounting purposes. Consequently, results for the twelve months to 31 Marchhave been included in the equity accounted earnings for the period, of whichthe results for the last six months are unaudited. There were no changes inthe percentage ownership interests in the associates during the year ended30 June 2001.Subsidiaries527.9 423.5 Investments in subsidiaries (Annexure A)

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200014 OTHER INVESTMENTSInvestments in listed sharesComprise shares in the following listed companies:28.9 29.4 Kroondal Platinum Mines Ltd 29.4 28.929.1 29.1 Aquarius Platinum Ltd 29.1 29.1– 66.0 Zimbabwe Platinum Mines Ltd 66.0 –– 27.6 Brandrill Ltd 27.6 –During the period under review, the strategic shareholding in KroondalPlatinum Mines Ltd (“Kroondal”) increased by an additional 500 000shares to a total holding of 2 591 700 shares (2000: 2 091 700), whichrepresents approximately 4.7% (2000: 5.8%) of the issued share capital ofthat company. During the year, Kroondal undertook a capital reductionwhich resulted in a R15.5 million decrease in the value of the investment.The additional shares received were in exchange for Impala PlatinumHoldings Ltd providing a guarantee to Investec Bank Limited on behalfof Aquarius Platinum (South Africa) (Pty) Ltd (refer to note 29). The sharesare listed on the JSE Securities Exchange (JSE). The market value at theclose of business on 30 June by reference to JSE quoted prices wasR73.7 million (2000: R31.4 million).During the period under review, the group maintained its strategicshareholding in Aquarius Platinum Ltd, holding 7 141 966 shares(2000: 7 141 966) which amounts to approximately 10.1% (2000: 14.8%)of the issued share capital of that company. The shares are currently listedon the Australian Stock Exchange and the London based AlternateInvestment Market. The market value of these shares as at the close ofbusiness on 30 June by reference to Stock Exchange quoted prices andthe closing exchange rates was R253.9 million (2000: R117.4 million).During the last quarter, the group purchased 13 280 782 shares inZimbabwe Platinum Mines Limited, which is approximately 15.1% of theissued share capital of that company. The shares are listed on theAustralian Stock Exchange. The market value of these shares as at theclose of business on 30 June by reference to Stock Exchange quotedprices was R49.9 million. The directors did not consider the diminutionto be permanent and have therefore valued the investment at cost.

97CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200014 OTHER INVESTMENTS (continued)The group purchased 6 000 000 shares, in Brandrill Limited, whichrepresents approximately 6.4% of the issued share capital. The investmentin Brandrill Ltd is part of an agreement with the company to furtherpenetrating cone fracturing technology mining research and development.The shares are listed on the Australian Stock Exchange. The marketvalue of these shares as at the close of business on 30 June by referenceto Stock Exchange quoted prices was R44.1 million.Investment in unlisted sharesShares beneficially owned in the undermentioned concerns:Unlisted shares at cost – Guardrisk Insurance Company Ltd 3.8 3.8– 10.1 – Aquarius Platinum SA 10.1 –Valued by the directors at book valueIn addition the group holds various unlisted industry related investmentswhich have been written down to a nominal value of R1 each.Non-equity investmentsInvestment in Impala Pollution, Rehabilitation and Closure Trust Fund(Refer note 26). The fund is an irrevocable trust under the group’s control.The monies in the fund are invested primarily in interest bearing securitiesand approximate their fair value. 47.8 33.758.0 162.2 213.8 95.5

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200015 NON-CURRENT RECEIVABLESLoansRelated undertakings– 70.6 Hartley Management Company (Private) Limited 70.6 –The agreement provides Impala Platinum Holdings Ltd with the optionto convert this loan into issued share capital of Hartley ManagementCompany (Private) Limited during August 2001. The loan bears interestat LIBOR plus 5%, payable monthly.Other– 126.2 Aquarius Platinum (South Africa) (Pty) Ltd 126.2 –Impala Platinum Holdings Ltd can elect, by the end of August 2001,either to convert the loan into shares within the Aquarius group, or tobe repaid the loan. The loan bears interest at the Johannesburg InterbankAcceptance Rate (JIBAR) plus 3%, payable monthly.– 36.4 Messina Platinum Mines Ltd 36.4 –The loan is repayable by no later than 30 June 2003. The loan bearsinterest at JIBAR plus 6%, payable monthly.– 233.2 233.2 –16 PREPAYMENTSRoyalty prepayment 88.4 93.3Charged to the income statement during the year 4.9 4.983.5 88.4Less: current portion of prepayment 4.9 4.978.6 83.5Royalty prepayment represents the payment of royaltiessettled by the issue of shares.

99CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200017 INVENTORIESRefined metal 300.8 155.9At cost 234.0 109.6At net realisable value 66.8 46.3In-process metal 418.1 229.3Metal inventories 718.9 385.2Stores and materials inventories 60.4 54.4779.3 439.618 CURRENT RECEIVABLESTrade and other foreign receivables (Refer note 28) 1 041.8 654.1Interest receivable 17.8 85.610.9 9.3 Implats Share Incentive Trust 9.3 10.926.6 0.1 Other receivables 271.6 202.5Prepayments (Refer note 16) 4.9 4.937.5 9.4 1 345.4 958.0Trade and other foreign receivables include advances of R263.2 million(2000: R102.7 million) to customers which are secured by metal heldas collateral against these advances.19 CASH AND CASH EQUIVALENTSCash at bank and on hand 223.7 302.5Short term bank deposits 2 813.9 2 804.23 037.6 3 106.7The weighted average effective interest rate on short term bankdeposits was 10.4% (2000: 11.9%).

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200020 ORDINARY SHARES AND SHARE PREMIUMNumber of Ordinary Share Totalshares shares premium(millions) R million R million R millionBalance at 30 June 1999 65.712 13.1 517.3 530.4Issued in terms of the share optionscheme 0.354 0.1 20.5 20.6Balance at 30 June 2000 66.066 13.2 537.8 551.0Issued in terms of the share optionscheme 0.265 0.1 19.5 19.6Issued to minority royalty holders 0.017 0.0 5.5 5.5Balance at 30 June 2001 66.348 13.3 562.8 576.1The total authorised number of ordinaryshares is 100 million shares20.0 20.0 (2000: 100 million shares) of 20 cents each. 20.0 20.0The unissued shares may be issued by thedirectors at their discretion until the nextannual general meeting. The directors’report and note 25 set out details inrespect of the share option scheme.21 OUTSIDE SHAREHOLDERS’ INTERESTAt the beginning of the year 13.8 46.9Change of interest in subsidiary – (35.6)Share of net profit of subsidiaries 5.4 2.5At the end of the year 19.2 13.8

101CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200022 BORROWINGSCurrentLease liabilities 0.6 4.3Debentures 23.9 21.024.5 25.3Non-currentDebentures 112.6 136.5Lease liabilities – 0.6Interest-free loans 0.5 0.5113.1 137.6Total borrowings 137.6 162.9The debentures are secured by a pledge of freehold propertiesincluded in mining assets with a book value of R178.0 million(2000: R178.0 million). Half of the debentures bear interest at afixed rate of 18.90% per annum, with the other half bearing currentinterest at 12.48% (2000: 12.40%) per annum. All are repayablebefore 30 June 2004.Weighted average effective interest rates:Debentures 15.3% 16.6%Lease liabilities 18.0% 19.0%Interest-free loans have no fixed terms of repayment.The carrying amounts and fair values of debenturesare as follows: Carrying amounts Fair values2001 2000 2001 2000136.5 157.5 158.6 170.0The fair values are based on discounted cash flows using a discountrate based on the borrowing rate that the directors expect wouldbe available to the group at the balance sheet date. The carryingamounts of short-term borrowings and lease obligations approximatetheir fair value.Maturity of non-current borrowings (excluding finance lease liabilities):Between 1 and 2 years 26.8 23.9Between 2 and 5 years 85.8 112.6112.6 136.5

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200022 BORROWINGS (continued)Finance lease liabilities – minimum lease payments:Not later than 1 year 0.5 4.8Later than 1 year and not later than 5 years – 0.70.5 5.5Future finance charges on finance leases 0.1 0.6Present value of finance lease liabilities 0.6 4.9Other assets with a book value of R0.5 million (2000: R11.4 million) havebeen encumbered as security for the capitalised lease agreements.Borrowing powersIn terms of the articles of association of the companies in the group,the borrowing powers of the group are determined by the directorsbut are limited to ordinary shareholders’ interest. 6 430.0 5 625.6Currently utilised 137.6 162.923 DEFERRED TAXATIONThe movement on the deferred taxation account is as follows:At the beginning of the year 889.7 745.0Income statement charge (Refer note 9) 266.4 144.7At the end of the year 1 156.1 889.7Deferred taxation assets and liabilities are offset when the incometaxes relate to the same fiscal authority.Deferred taxation assets and liabilities and deferred taxation charge/(credit) in the income statement are attributable to the following items:Charged/2001 (credited) 2000Deferred taxation liabilitiesCapital expenditure 1 205.7 241.4 964.3Prepaid expenses 9.2 9.2 –Other 29.1 19.0 10.11 244.0 269.6 974.4Deferred taxation assetsSubstantially long term provisions (84.6) (6.0) (78.6)Other (3.3) 2.8 (6.1)(87.9) (3.2) (84.7)Net deferred taxation liability 1 156.1 266.4 889.7

103CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200024 PENSION AND OTHER POST-RETIREMENT OBLIGATIONSPension and provident plansDefined contribution plansIndependent funds provide pension and other benefits to all permanentemployees and their dependants. At the end of the financial year thefollowing funds were in existence:– Impala Provident Fund– Impala Platinum Refineries Provident Fund– Impala Workers Provident Fund– Impala Supplementary Pension Fund– Sentinel Pension FundDefined benefit plansThe Mine Officials Pension Fund and the Mine Employees Pension Fundare mining industry defined benefit pension plans. Accordingly, the groupis unable to determine the portion of assets and liabilities of the fundswhich relate to group employees. During the year the Mine OfficialsPension Fund converted from a defined benefit to a defined contributionfund and changed its name to the Sentinel Pension Fund.The fund was actuarially valued at 30 June 1999 and reflected that thefund was financially sound.Membership of the pension and provident plans are as follows:Defined contribution plans 97.4 90.7Defined benefit plans 2.6 9.3100.0 100.0Post-retirement medical benefitsOpening balance 66.0 66.0Less: utilised during the year 2.9 2.9Add: provided during the year 2.9 2.9Closing balance 66.0 66.0The group provides certain post-retirement medical benefits toqualifying pensioners. An estimate of the pre-tax obligation based onthe latest calculations of independent actuaries, assuming estimatedlong-term medical cost increases and appropriate discount rates,indicates that the provision is adequate to cover the group’s currentobligations.The principal actuarial assumptions were as follows:– Medical cost inflation 12.5% pa– Valuation interest rate 15.0% pa

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200025 EMPLOYEE BENEFITSThe group’s share option plan authorises the granting of options to keyemployees who are able to purchase shares at a price equal to the middlemarket price on the trading day preceding the date upon which theremuneration committee approved the granting of the options.The scheme is administrated through the Impala Share Incentive Trust(Refer note 18). Shares are issued to the trust as required. Employees areentitled to exercise their options at the option price (Refer note 20).The fair value of the shares issued to the Share Incentive Trust amountedto R112.0 million (2000: R76.6 million)Movement in the number of share options outstanding was asfollows (‘000):At the beginning of the year 761.9 924.7Granted 62.2 143.3Less: exercised 290.5 306.1Less: forfeited 18.6 –At the end of the year 515.0 761.9Refer to the directors report for details on share options held by directors.The number of shares held by the Trust at year-end amounted to65 835 (2000: 86 558) with a fair value of R26.6 million (2000: R21.8 million).Share options outstanding at the end of the year have the following terms:Exercise date Option price Rand 2001 2000('000) ('000)Prior to June 2000 52.50-75.00 4.4 86.6June 2001 52.50-146.00 39.6 226.3June 2002 52.50-200.00 231.4 254.2June 2003 52.50-344.00 94.3 88.3June 2004 146.00-344.00 81.3 70.7June 2005 200.00-344.00 48.4 35.8June 2006 344.00-344.00 15.6515.0 761.9Vesting of options first occurs two years after the granting of theoptions, limited to a maximum of 25% of the total options granted.In subsequent years an additional 25% per year vests. All outstandingoptions expire within 12 years from the date of granting the options.

105CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200026 PROVISION FOR ENVIRONMENTAL OBLIGATIONSProvision raised for future rehabilitationOpening balance 101.8 95.1Disposal of subsidiary – (1.3)Present value of additional rehabilitation obligations (Refer note 12) 20.5 –Charge to income statement 7.7 8.0Closing balance 130.0 101.8The movement of the investment in the Impala Pollution,Rehabilitation and Closure Trust Fund, is as follows:Opening balance 33.7 25.7Interest accrued 4.7 3.0Contributions 9.4 5.0Closing balance 47.8 33.7Future value of rehabilitation obligation 1 320.9 1 125.6Future value of rehabilitation trust investment 812.7 764.8Future net environmental rehabilitation obligation 508.2 360.8The future value of rehabilitation obligation has been calculatedby inflating the current rehabilitation cost over 25 years to anestimated future rehabilitation cost.The future value of the rehabilitation trust investment has beencalculated by assuming that the present balance in the rehabilitationtrust will be invested at a risk free rate over 25 years, after which thecapital and growth will be used to fund the gross rehabilitationobligation.The shortfall will be funded by ongoing contributions.27 TRADE AND OTHER PAYABLES1.7 1.6 Trade payables 1 065.9 521.7Leave liability 115.8 104.2Royalties payable 925.2 428.2Forward commitments (Refer note 30) 94.7 76.513.7 13.7 Other payables 80.7 80.715.4 15.3 2 282.3 1 211.3

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200027 TRADE AND OTHER PAYABLES (continued)Analysis of significant provisions:Royalties payableLeave liability2001 2000 2001 2000Opening balance 428.2 236.0 104.2 95.3Add: current year provision 925.2 426.8 169.2 162.8Less: utilised during the year 428.2 234.6 157.6 153.9Closing balance 925.2 428.2 115.8 104.2Royalties payableComprises the provision for royalty payments to the holders of mineralrights. The calculation is based on mining taxable income and is onlyfinalised once that has been assessed by the South African RevenueServices.Leave liabilityEmployee entitlements to annual leave are recognised on an ongoingbasis. A provision is made for the estimated liability for annual leave asa result of services rendered by employees up to the balance sheet date.28 FINANCIAL RISK MANAGEMENTFair value of other financial assets and liabilitiesAt 30 June 2001, the carrying amounts of cash and cash equivalents,receivables, trade and other payables and short-term borrowings,approximated their fair values due to the short term maturities ofthese assets and liabilities.Foreign currency risk managementThe group from time to time enters into forward exchange and currencyoption contracts to preserve its revenue streams and to limit its exposurefor capital purchases and other expenditure denominated in foreigncurrencies. Currency hedging is undertaken in terms of policy approvedby the board of directors and all hedges are regularly reviewed by thehedging committee.

107CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200028 FINANCIAL RISK MANAGEMENT (continued)The uncovered foreign currency denominated balances as at30 June were as follows:Trade and other receivables (US$ million) 110.1 78.8Forward foreign currency salesForeign Foreign Rand Fair value Settlementcurrency amount amount rand dates2001 US$ 5.0 40.7 40.6 WithinUS$ 5.0 41.3 40.7 3 months2000 NilThe net unrecognised gains at 30 June on open contracts which hedgeanticipated future foreign commodity sales amounted to R0.7 million(2000: nil).The fair values of forward exchange contracts have been calculated usingrates quoted by the group’s bankers to take out a similar contract at balancesheet date with the same settlement date as the existing contracts.Metal price risk managementThe group is exposed to fluctuations in metal prices. From time to time,the group enters into metal futures, options or lease contracts to managethe fluctuations in its metal prices thereby preserving and enhancing itsrevenue streams. At 30 June 2001, the group had no metal futures, optionsor lease contracts in place (2000: Nil).Credit risk managementThe potential concentration of credit risk consists mainly of cash, cashequivalents, trade debtors and other receivables.The group limits its counter party exposures from its money marketinvestment operations by only dealing with well-established financialinstitutions of high quality credit standing. The credit exposure to anyone counter party is managed by setting exposure limits which arereviewed regularly by the board of directors.The group is exposed to credit-related losses in the event of nonperformanceby counter parties to derivatives instruments. The counterparties to these contracts are major financial institutions. The groupcontinually monitors its positions and the credit ratings of its counterparties and limits the amount of contracts it enters into with any one party.

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200028 FINANCIAL RISK MANAGEMENT (continued)Trade debtors comprise a number of customers, dispersed across differentgeographical areas. Ongoing credit evaluations are performed on thefinancial condition of these and other receivables. Trade debtors arepresented net of the allowance for doubtful debts.The credit exposures by country are as follows:Receivables:North America 670.8 324.9Asia 103.1 152.0Europe 173.1 60.1South Africa 94.8 117.1(Refer note 18) 1 041.8 654.1Cash and cash equivalents :Asia 1.6 0.3South Africa 3 036.0 3 106.4(Refer note 19) 3 037.6 3 106.7Other receivables represent primarily a South African exposure.Interest rate risk managementThe group monitors its exposure to fluctuating interest rates. Cash andcash equivalents are primarily invested with short term maturity dates.The group’s primary exposure in respect of long term borrowings isdetailed in note 22. At 30 June 2001, the group did not consider thereto be any significant concentration of interest rate risk.29 CONTINGENCIESContingent liabilities and guaranteesCollateral security for employee housing 10.1 11.9Due to the uncertainties regarding the timing and amounts, potentialoutflows cannot be quantified.Guarantee to Investec Bank Limited on behalf of Aquarius Platinum(South Africa) (Pty) Ltd for a loan facility granted. 525.5 –This guarantee is set to expire by 31 December 2001.535.6 11.9

109CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200030 COMMITMENTSCapital expenditure commitmentsCapital expenditure contracted for at the balance sheet datebut not recognised in the financial statements is as follows:Commitments in respect of amounts contracted for 523.0 529.8Amounts approved by directors not yet contracted 2 859.2 2 580.8Approved expenditure outstanding at 30 June 3 382.2 3 110.6This expenditure will be funded internally and if necessary, fromborrowings.Metal purchase commitmentsFrom time to time, in order to finance third party refining, ImpalaRefining Services sells refined metal, held on behalf of third parties, intothe market with a commitment to repurchase at a later date.The forward commitments were as follows:Foreign Foreign Rand Fair value Settlementcurrency amount amount rand dates2001 US$ 11.8 94.7 86.2 Between 1and 3 months2000 US$ 11.2 76.5 83.1 Between 1and 3 monthsThe net unrecognised profits/(losses) at 30 June on open contracts amounted to R8.5 million [2000: (R6.6) million]. These will be recognisedas the contracts mature.

Notes to the financial statements (continued)CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200031 CASH GENERATED FROM OPERATIONSReconciliation of profit before taxation to cash generated from/(utilised in) operations:730.0 4 048.2 Income before taxation 7 467.7 3 319.4(763.3) (4 111.1) Adjustments for: (81.5) 132.9Amortisation and depreciation (Refer note 12) 218.2 143.2Amortisation of goodwill (Refer note 13) 7.4 7.4Provision for environmental rehabilitation (Refer note 26) 7.7 8.0(763.3) (4 111.1) Financial income (Refer note 7) (400.6) (253.4)Interest expense (Refer note 7) 14.4 22.1Share of pre-taxation income of associates (Refer note 13) (1 031.4) (332.8)Provisions (Refer note 24 and note 27) 1 097.3 564.3Other non cash transactions 5.5 (25.9)Changes in working capital (excluding the effects of(24.9) 28.0 acquisitions and disposals): (750.5) (475.9)(24.3) 28.1 Trade and other receivables (Refer note 18) (387.4) (359.2)Inventories (Refer note 17) (339.7) 216.6(0.6) (0.1) Payables (Refer note 27) (23.4) (333.3)(58.2) (34.9) Cash generated from/(used in) operations 6 635.7 2 976.4Other non-cash transactionsThe non-cash transactions comprise mainly provisions, amortisation ofprepayments and share capital not issued for cash (2000: as well as anadjustment in outside shareholders interest on disposal of subsidiaries)32 TAXATION PAID3.0 1.0 Owing at the beginning of the year 663.5 467.4(0.2) 7.6 Current charges per income statement 2 815.2 1 061.9Share of taxation of associates (384.1) (112.8)Net provision for deferred taxation (266.4) (144.7)(1.0) (8.1) Owing at the end of the year (1 488.9) (663.5)1.8 0.5 1 339.3 608.3

111CompanyGroup2000 2001 for the year ended 30 June (R million) 2001 200033 CASH EFFECT OF SALE OF SUBSIDIARIESDuring the previous financial year, the following subsidiaries were sold:Messina LimitedMessina Platinum Mines LimitedThe effect on the cash flow statement was as follows:Book value of subsidiaries sold – 39.1Profit – group – 26.1Proceeds from sale of investment – 65.2Cash balance sold – (59.8)Net cash effect – 5.434 POST BALANCE SHEET EVENTSPost balance sheets event have been dealt with in the directors’ report.(Refer pages 70 and 71).

Notes to the financial statements (continued)Annexure AInvestment in subsidiary companiesIssued Effective Book value in holding companyshare group interest Shares Loanscapital 2001 2000 2001 2000 2001 2000Company and description R'm % % R'm R'm R'm R'mImpala Holdings Limited * 100 100 (950.5) 105.5Investment holding companyImpala Platinum Limited * 100 100Mines, refines and markets pgmsImpala Platinum Investments (Pty) Ltd * 100 100Impala Platinum Properties (Rustenburg) (Pty) Ltd * 100 100Impala Platinum Properties (North West) (Pty) Ltd * 100 100Impala Platinum Properties (Springs) (Pty) Ltd * 100 100Own propertiesMessina Holdings Limited * 100 100 – –Investment holding companyBarplats Holdings (Pty) Ltd * 100 100 68.0 68.0 29.4 29.4Investment holding companyBarplats Investments Limited # 2.2 83 83Investment holding companyBarplats Mines Limited 0.9 83 83Owns platinum mineral rights andcertain associated infrastructureBarplats Mines (North West) (Pty) Ltd * 83 83Rhodium Reefs Limited * 83 83Owns platinum mineral rightsGazelle Platinum Limited * 100 100 324.5 324.5Investment holding companyImpala Refining Services Limited * 100 100Provides toll refining servicesImpala Platinum Japan Limited ¥ 10m 100 100 1.5 1.5 (0.8) (1.0)Marketing representative

113Annexure AInvestment in subsidiary companies (continued)Issued Effective Book value in holding companyshare group interest Shares Loanscapital 2001 2000 2001 2000 2001 2000Company and description R'm % % R'm R'm R'm R'mImplats Canada Inc. C$1 100 951.0Investment holding companyPlatexco Inc. C$18.9 m 100Investment holding companyPlatexco Ltd. C$7.9 m 100Investment holding companyTrojan Platinum (Pty) Ltd * 100Owns platinum mineral rightsAtlantic Exploration Ltd * 100Investment holding companyPlatexco (South Africa) (Pty) Ltd * 100Exploration companySundry dormant companies * 100 100 0.6 0.6 (0.2) (0.6)Total 70.1 70.1 353.4 457.8Total investment 423.5 527.9Valued by the directors at book valueThe interest of Impala Platinum Holdings Limited in the aggregate amount of the after-taxation profits of its subsidiaries is R4 584.4 million (2000: R2 171.9 million).* Share capital less than R50 000# Listed on JSE Securities Exchange

Notice to shareholdersImplatsThe 45th annual general meeting of memberswill be held in the Boardroom, 3rd Floor, OldTrafford 4, Isle of Houghton, Boundary Road,Houghton on Wednesday, 24 October 2001 at10:00 for the following purposes:1. To receive and consider the financialstatements for the year ended 30 June 2001.2. To confirm the appointment of Mr K C Rumbleas a director of the company.3. To elect directors in place of those retiring interms of the article of association. Thefollowing directors are eligible and offerthemselves for re-election: DH Brown,PG Joubert, DM O’Connor, and MF Pleming4. To determine the remuneration of thedirectors’ at R90 000 per director per annumwith an additional amount of R45 000 for theChairman.5. To consider, and if deemed fit, to pass with orwithout modification the undermentionedresolution as an ordinary resolution:Registered Office3rd Floor Old Trafford 4Isle of HoughtonBoundary RoadHoughton 2198Notes(1) A member entitled to attend and vote isentitled to appoint one or more proxies toattend and speak and vote in his stead. Aproxy need not be a member.(2) In accordance with the requirement of theInternational Stock Exchange, London, it isstated that no directors’ service contracts existor are proposed between the company or anysubsidiary of the company and any directorwhich is not terminable within one yearwithout payment of compensation (otherthan statutory compensation). The interest ofthe directors of the company and theirfamilies do not, in the aggregate, in respect ofeither share capital or voting control, exceed5% of the capital of the company." That the authorised but unissued share inthe capital of the company be place at thedisposal and under the control of the directorsof the company and the directors are herebyauthorised and empowered to allot, issue andotherwise dispose thereof to such person orpersons and on such terms and conditions attheir discretion subject to the provisions ofthe Companies Act".By order of the boardA M SNASHALLGroup Secretary23 August 2001

115Shareholder informationShareholders‘ diaryAnnual general meeting Wednesday, 24 October 2001Final dividend declared August 2000. Paid – 4 October 2001Interim report release February 2002Interim dividend declared February 2001. Paid – April 2002Financial year end 30 June 2002Annual report release August 2002Analysis of shareholdingsNumber ofNumber ofshareholders % shares (’000s) %1 – 5 000 1 472 96.8 376 0.65 001 – 10 000 10 0.6 73 0.110 001 – 50 000 20 1.3 455 0.750 001 – 100 000 4 0.3 275 0.4100 001 – 1 000 000 7 0.5 2 283 3.4Over 1 000 000 8 0.5 62 886 94.81 521 100.0 66 348 100.0Analysis of shareholdingsNumber ofNumber ofshareholders % shares (’000s) %Other companies 38 2.5 1 064 1.6Trust funds and investment companies 157 10.3 54 935 82.8Insurance companies 5 0.3 10 -Pension funds 3 0.2 36 0.1Individuals 1 317 86.6 440 0.7Central Securities depository 1 0.1 9 863 14.81 521 100.0 66 348 100.0

Administration Implats subsidiary companiesRegistered office and Secretary3rd Floor, Old Trafford 4Isle of Houghton, Boundary RoadHoughton 2198P.O. Box 61386, Marshalltown 2107Telephone: +27(11) 481 3900Telefax: +27(11) 484 0254email: alan.snashall@implats.co.zainvestor@implats.co.zaSecretaryAlan SnashallImpala, Impala Refining Services and BarplatsHead office3rd Floor, Old Trafford 4Isle of HoughtonBoundary Road, Houghton 2198P.O. Box 61386, Marshalltown, 2107Telephone: +27(11) 481 3900Telefax: +27(11) 484 0254Impala OperationsP.O. Box 5683, Rustenburg 0300Telephone: +27 (14) 569 0000Telefax: +27 (14) 569 6548London SecretariesProject Consultants LimitedWalnut House, Walnut GardensClaydon, BanburyOxon, OX17 1NATelephone: +44 (1295) 69 0180Telefax: +44 (1295) 69 0182email: ckennedy@projectconsultants.co.ukPublic OfficerJohan van DeventerTransfer SecretariesSouth AfricaMercantile Registrars, 8th Floor11 Diagonal StreetP.O Box 1053, Johannesburg 2000Telephone: +27(11)370 5000United KingdomLloyds Bank TSB RegistrarsThe Causeway, WorthingWest Sussex, BN99 6DAAuditorsPricewaterhouseCoopers Inc2 Eglin Road, SunninghillJohannesburg, 2157Impala RefineriesP.O. Box 222, Springs 1560Telephone: +27 (11) 360 3111Telefax: +27 (11) 360 3680Crocodile River MineP.O. Box 513, Brits 0250Telephone: +27 (12) 381 1800Telefax: +27 (12) 258 0087Representative in JapanImpala Platinum Japan LimitedUchisaiwaicho Daibiru, Room No. 702303 Uchisaiwaicho1-Chome, Chiyoda-kuTokyo , JapanTelephone: +81 (3) 3504 0712Telefax: +81 (3) 3508 9199Associated companiesEastern Platinum Limited andWestern Platinum LimitedP.O. Box 98811Sloane Park, 2152Telephone: +27(11) 516 1300Telefax: +27(11) 516 1310Website:http://www.implats.co.za

117Impala Platinum Holdings LimitedIncorporated in the Republic of South Africa. Registration No. 1957/001979/06 (the company)Form of ProxyFor use at the annual general meeting of the company to be held on Wednesday, 24 October 2001 at 10:00 (the annual general meeting)I/Weofappoint (See Note 1):1. or, failing him,2. or, failing him,3. the chairman of the annual general meeting.As my/our proxy to act for me/us at the annual general meeting of the company which will be held in the Boardroom, 3rd Floor, Old Trafford4, Isle of Houghton, Boundary Road, Houghton, Johannesburg at 10:00 on Wednesday, 24 October 2001, and at each adjournment orpostponement thereof, and to vote for and/or against the resolutions and/or abstain from voting in respect of the shares in the issued capitalof the company registered in my/our name/s (see Note 2).Number of ordinary sharesResolutions For Against AbstainConfirmation of appointment of directorRe-election of directorsDirectors’ remunerationUnissued sharesInsert in the relevant space above the number of shares held.Signed at on 2001SignatureAssisted by (where applicable)Each ordinary shareholder is entitled to appoint one or more proxies (who need not be a shareholder/s of the company) to attend, speak andvote in place of that shareholder at the annual general meeting.

Notes1. A shareholder may insert the name of a proxyor the names of two alternative proxies of theshareholder’s choice in the space’s provided,with or without deleting "the chairman of theannual general meeting". Any such deletionmust be initialled by the shareholder. Theperson present at the meeting whose nameappears first on the form of proxy and has notbeen deleted will be entitled to act as proxyto the exclusion of those whose names follow.6. Forms of proxy must be lodged with orposted to the company’s transfer secretariesto be received not later than 24 hours(excluding Saturdays, Sundays and publicholidays) before the time of the meeting.7. This form of proxy expires after the conclusionof the meeting stated herein except at anadjournment of that meeting or at a polldemanded at such meeting.2. A shareholder’s instructions to the proxy mustbe indicated by the insertion of the relevantnumber of votes exercisable by thatshareholder in the appropriate spaceprovided. Failure to comply with the abovewill be deemed to authorise the proxy to voteor to abstain from voting at the annualgeneral meeting as he deems fit in respect ofall the shareholder’s votes exercisable thereat.A shareholder or his proxy is not obliged touse all the votes exercisable by theshareholder or by his proxy, but the total ofthe votes cast and in respect whereofabstention is recorded may not exceed thetotal of the votes exercisable by theshareholder or his proxy.Transfer SecretariesMercantile Registrars Limited8th Floor11 DiagonalJohannesburg 2001PO Box 1053Johannesburg 2000London transfer secretariesLloyds Bank TSB RegistrarsThe CausewayStreetWorthingWest SussexBN99 6DA3. Any alteration or correction to this form mustbe initialled by the signatory/ies.4. Documentary evidence establishing theauthority of a person signing this form ofproxy in a representative capacity must beattached to this form unless previouslyrecorded by the transfer secretaries of thecompany or waived by the chairman of theannual general meeting.5. The completion and lodging of this form willnot preclude the relevant shareholder fromattending the annual general meeting andspeaking and voting in person thereat to theexclusion of any proxy appointed in termshereof, should such shareholder wish to do so.