ANNUAL REPORT 2004 IMPALA PLATINUM HOLDINGS LIMITED IMPALA PLATINUM HOLDINGS LIMITED ANNUAL REPORT 2004

WWW.IMPLATS.CO.ZA Report profile

This annual report covers the period 1 July 2003 to 30 June 2004. Information has been provided for comparative purposes for five years (FY2000 to FY2004). Additional statistics going back to FY1997 are provided on the company’s website at www.implats.co.za. Information relating to the market has been provided per calendar year.

The report has been prepared in accordance with South African Statements of Generally Accepted Accounting Practice, International Financial Reporting Standards and in the manner required by the South African Companies Act and in line with the regulations of the JSE Securities Exchange South Africa (JSE). It has also taken into account the guidelines of the King Report 2002, the JSE Social Responsibility Index and the Global Reporting Initiative (GRI), particularly those applicable to Implats’ direct economic impact, environmental and human capital performance.

No significant changes have occurred in terms of the size, structure and operation of the group during the year under review,other than the sale of 83.2% stake in Barplats Investments Limited. The transaction for the sale of a significant strategic interest (Implats’ stake in Western Platinum Limited and Eastern Platinum Limited) is nearing finalisation and is reported on fully in this document.

Reporting of reserves and resources is in accordance with each company’s listing requirements. Mineral Reserves and Mineral Resources for Implats’South African operations are reported in accordance with the principles and guidelines of the South African Code for Reporting of Minerals Reserves and Mineral Resources (SAMREC Code). Both Zimplats and Mimosa report Ore Reserves and Mineral Resources in accordance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code).Competent persons defined by both the SAMREC and JORC codes have prepared, reviewed and signed off the Mineral Reserves and Mineral Resources reported in this publication.

This annual report should be read in conjunction with the group’s Corporate Responsibility Report 2004. In the interests of good disclosure and to improve communication with shareholders, Implats publishes:

• The 2004 Annual Report in August 2004, coinciding with the release of the results for the year-ended June 2004. The annual report is also available in interactive HTML and downloadable pdf versions on the company’s website.

• The Corporate Responsibility Report in October 2004.This report will be posted to those shareholders who elect to receive it (response form on page 153 of this report). It will be available on the company’s website and from the contacts detailed on page 152 of this report.

The statutory portions of this report on pages 84 to 143 have been audited by independent auditors PricewaterhouseCoopers. In addition, PricewaterhouseCoopers provided guidance in the development of the non-financial sections of both the Annual and Corporate Responsibility reports, drawing on, inter alia, its proprietary reporting framework, ValueReportingTM, and internationally recognized principles of reporting. Both reports are prepared by the company and are reviewed by the board.

Additional information on the group may be found on the company’s website or obtained from the contact persons listed on page 152 of this report.

Dollar, or $, refers to US Dollars unless specified. Numbers given in both SA Rands and Dollars have been converted at the average exchange rate for the year under review or at year-end rates when relating to closing balances. Produced by Russell and Associates Key performance highlights (SA Rand) 1 Safety performance (LTIFR) improves by 15%

Gross platinum production up by 17% to 1.96 Moz

Impala Platinum production at 1.09 Moz platinum – highest in a decade

Sales revenue maintained at R11.81 billion

Gross margin of 36%

Profit down 13% to R2.96 billion, largely due to Rand appreciation

Unit cost per platinum ounce up by 4.1%

Year at a glance FY2004 FY2003 % change Financial Sales (Rm) 11 809 11 807 0 Gross profit (Rm) 4 260 5 284 (19) Profit before tax (Rm) 4 122 5 060 (19) Profit (Rm) 2 963 3 415 (13) Headline earnings per share (cps) 3 966 5 140 (23) Dividends per share (proposed basis) (cps) 2 100 2 650 (21) Cash net of short-term debt (Rm) 636 2 120 (70) Sales revenue per platinum ounce sold ($/oz) 1 116 935 19 Sales revenue per platinum ounce sold (R/oz) 7 678 8 471 (9) Average Rand exchange rate achieved (R/$) 6.88 9.06 (24) Production Total Refined platinum production (000 oz) 1 961 1 673 17 Refined PGM production (000 oz) 3 725 3 162 18 Impala Refined platinum production (000 oz) 1 090 1 040 5 Refined PGM production (000 oz) 1 976 1 924 3

IMPLATS ANNUAL REPORT 2004 Key performance highlights (US Dollar) 2 Safety performance (LTIFR) improves by 15%

Gross platinum production up by 17% to 1.96 Moz

Impala Platinum production at 1.09 Moz platinum – highest in a decade

Sales revenue increased by 32% to $1.72 billion

Gross margin of 36%

Profit up 15% to $428 million

Unit cost per platinum ounce rose by 37%, reflecting impact of Rand appreciation

Year at a glance FY2004 FY2003 % change Financial Sales ($m) 1 716 1 303 32 Gross profit ($m) 616 580 6 Profit before tax ($m) 596 555 7 Profit ($m) 428 373 15 Headline earnings per share (cps) 571 561 2 Dividends per share (proposed basis) (cps) 306 294 4 Cash net of short-term debt 103 282 (63) Sales revenue per platinum ounce sold ($/oz) 1 116 935 19 Production Total Refined platinum production (000 oz) 1 961 1 673 17 Refined PGM production (000 oz) 3 725 3 162 18 Impala Refined platinum production (000 oz) 1 090 1 040 5 Refined PGM production (000 oz) 1 976 1 924 3

IMPLATS ANNUAL REPORT 2004 Contents 3 Corporate profile 4

Chairman’s letter to shareholders 7

Our scorecard and ojectives 9 OVERVIEW Chief Executive’s review 11 Group value-added statement 17

Responding to the Mining Charter 18

Statistics 20

Corporate governance 25 ACCOUNTABILITY Executives and senior management 33 Board and management 34

Financial review 37

Market review 41

Review of operations and interests 45

Impala Platinum 45

Marula Platinum 52 REVIEW OF THE YEAR Zimplats 55 Mimosa Platinum 59

Impala Refining Services 62

Strategic holdings 64

Exploration, mineral reserves and mineral resources 67

Glossary of terms 78

Contents of the annual financial statements 81

Approval of annual financial statements 82

Report of the independent auditors 83 ANNUAL FINANCIAL STATEMENTS AND Annual financial statements 84 SHAREHOLDERS’ Notice of meeting, proxy and voting instruction form 144 INFORMATION Shareholders’ information 151

Contact details and administration 152

Corporate Responsibility report request form 153

IMPLATS ANNUAL REPORT 2004 OVERVIEW

Corporate profile 4 Impala Platinum Holdings Limited (Implats) produced 1.96 Moz of platinum and 3.73 Moz of platinum group metals (PGMs) in FY2004, making it one of the most significant PGM producers globally.The group’s operations on the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe give it an attributable reserve and resource base of 247 Moz of platinum. Implats also has offshore exploration projects in Australia, Brazil and the United States.

The company’s cost-efficient expansion and joint venture programmes have been devised to ensure platinum production of 2 Moz of platinum by 2006 (3.8 Moz PGMs). There is OVERVIEW potential for this to grow to 2.3 Moz of platinum (4.5 Moz PGMs) by 2008. CORPORATE PROFILE CORPORATE Implats employs approximately 31 600 people across its operations and is one of the most efficient and lowest cost platinum producers in the world.

Implats’primary listing (IMP) is on the JSE Securities Exchange South Africa with a secondary listing (IPLA) on the London Stock Exchange. The company also has a sponsored level 1 ADR programme (IMPUY) in the United States.

Corporate structure

Implats

100% Mine to market Impala Refining operations Services (IRS) Strategic holdings

Impala 100% 27% Platinum Lonplats*

Marula 100%† 25% Aquarius Platinum Concentrate Platinum (SA) offtake 83% 45% Zimplats agreements Two Rivers 50% Mimosa Toll refining * Implats is currently finalising the transaction for the sale of this asset † 20% to be allocated to BEE ownership

Pt 67% Rh 6% Impala 87% Zimplats 5% Pd 9% Ni 11% Marula 3% Mimosa 5% Other 7%

% contribution to sales Distribution of employees by metal (FY2004) including contractors (FY2004)

IMPLATS ANNUAL REPORT 2004 Vision To be the world’s best platinum producing company, delivering superior returns 5 to shareholders relative to our peers

Values

The Implats values are: • Safeguarding the health and safety of our employees, and caring for the environment in which we operate • Acting with integrity and openness in all that we do and fostering a workplace in which

honest and open communication thrives OVERVIEW • Being a responsible employer,developing people to the best of their abilities and fostering a culture of mutual respect amongst employees PROFILE CORPORATE • Promoting and rewarding teamwork, innovation, continuous improvement and the application of best practice • Being accountable and responsible for our actions as a company and as individuals • Continuously to improve our performance and create sustainable value • Being a good corporate citizen to the communities in which we live and work

Location of operations, strategic interests and exploration projects

Harare Zimplats

ZIMBABWE Great Dyke

Bulawayo Mimosa Platinum Mine

BOTSWANA

SOUTH AFRICA

Marula Bushveld Platinum Complex Two Rivers Impala Platinum Everest South Rustenburg Franconia Impala Refineries Kroondal (Duluth) USA Johannesburg Marikana

Brazil

Niquelandia Catete Australia Three Kings

Operations Strategic interests Exploration projects

IMPLATS ANNUAL REPORT 2004 Creating a meaningful stake for BEE partners and the community – mining entrepreneur, Bridgette Radebe, CEO of Mmakau Mining, chosen as one of Implats’ partners in the newly developed Marula Platinum mine.At inception, Implats allocated a 20% stake in the operation for BEE interests. Of this, 10% has been allocated to Mmakau Mining, with the remaining 10% to be shared equally between a local community trust and local business people. ee obr,Chairman Peter Joubert, production Implats –Grossplatinum 1 199 FY00 1 291 Y1F0 FY03 FY02 FY01 (000oz) 1 387 1 673 1 961 FY04 1 eurdb 2014. 11% required by this andalsotoaccommodate thefurther believe thatwe are well placedtoachieve We area level over thenext five years. needs tobesecured attheImpalalease only approximately 4%to5%ownership Royal Bafokeng Resources (Pty)Limited, together withthecurrent 1.5%holdingof of some9%allocatedtoImplatsand, transaction shouldseeownership credits The conclusionoftheLonplats/Incwala detail onpages 18and19ofthisreport. underway and are discussedinfurther spirit ofthedraft are well MiningCharter planstomeetboththeletterand Implats’ competitive level basedonearnings. investment willbesolicitedby settinga itistobehopedthateager those royalties, discussions leadingtotheimpositionof Followingin termsoftheRoyalties the Bill. royalties willnow beimposedfrom 2009 State came intoeffect on1May 2004. Petroleum Resources Development Act The Minerals and legislation continues. The industry’s preoccupation withnew present. economic overview thanprevails at country needsabroader basedmacro- The mining industryalonein2003. was lostingovernment taxes from the Africa hasestimatedthatsomeR6 billion The ChamberofMinesSouth slowed. provinces are now beingreviewed or meant thatmany oftheprojects inthese increasing pressure ofthestrong Randhas The national figure hasbeenshown. GDPgrowth well above the sector, development intheplatinum mining and where there hasbeenvigorous provinces containPGMorebodies which In economic growth ofthecountry. million). million($428 recognized asseriously hampering the thestrong Randisbroadly 963 Increasingly, R2 to resulted inearningsdeclining which thecontinued strength oftheRand, of prices were overshadowed by theeffects production milestonesandhighplatinum significant During theyear underreview, Dear shareholder Chairman’s lettertoshareholders IMPLATS ANNUAL REPORT 2004 committee reporting totheboardcommittee reporting hasbeen anadvisory On thetransformation front, corporate governance towhichwe aspire. formation andtheworld-class levels of line withthebroader process oftrans- timeforan important ourgroup andare in Their appointmentscomeat Fred Roux. Dr DrKhotsoMokheleand Thandi Orleyn, SifisoDabengwa, Lex van Vught, members, I extend aformal welcome toournew board been transformed markedly during theyear. which has the group istheImplatsboard, Driving thedecision-makingprocess within world. unexploited platinum orebody inthe istheonly significantknown, which oftheGreat Dyke,substantial portion having secured accesstoa advantage, are intentonmaintainingourcompetitive we That said, doing businessinZimbabwe. economic andmoral dilemmaswe face in and we are extremely mindfulofboththe made tominimizeany risk toshareholders, effort isbeing cautious initsapproach.Every thegroup remains medium tolongterm, both intheimmediatefuture andthe operations andisallocatingcapitalthere, about thepotentialofZimbabwean Although Implatsremains very positive reviewed. andseveral optionsare being holders, the benefitsofany excess cashtoshare- iscommittedtoreturning few years.Implats the Zimbabwean operations over thenext Marula and diture requirements atImpala, comfortably provide for thecapitalexpen- injection intoImplatsthatwillmore than willresult inasignificantcash particular The Lonplatssalein our statedobjectives. realizing value for shareholders inlinewith made good progress onthecorporate front Lonplats have ensured thatthegroup has proposed saleofour27.1%interest in The saleofourstake inBarplats andthe procurement. andaffirmative beneficiation equity, employment asskillsdevelopment, such allelementsoftheCharter, prepared for, and mining legislation andare cognisant of, hensive response toallfacets ofthenew We have continued todevelop acompre-

OVERVIEW CHAIRMAN’S LETTER 7 OVERVIEW 8 CHAIRMAN’S LETTER CHAIRMAN’S LETTER continued visionandefforts during theyear. hismanagement teamfor their Rumble,and Keith the board’s thankstotheCEO, alsoextend have displayed during theyear.I board for theleadership anddedicationthey Iextend my thankstothe In conclusion, financial year. expect amove such totake placeinthe2006 shareholders could proceed asexpected, Shouldourplans United Stateslisting. continue toexplore thenotionofafull we Depositary Receipt (ADR)programme, offering toalevel 1sponsored American and having progressed ourUnitedStates of corporate activitiesinthepastfew years, Having madeprogress inconcludingarange internationalized shareholder base. those practices anincreasingly thatsupport also meeting therequirements ofKingII,but notonly are we committedto cerned, Insofar ascorporate governance iscon- formed responsibility. withthisparticular IMPLATS ANNUAL REPORT 2004 27 August 2004 27 August Chairman Peter Joubert chairman. leadership ofDrFred Roux asavery able underthe diverse andstrong board, by supported a group alongtheright path, management willcontinue topropel the I take my leave knowing that sector. the investment intheplatinum ofchoice considered theunderdog intheindustryto transformed itselffrom beingwhat many ofthegroup forpart many years asithas Ithasbeenaprivilege tobea duties. such Implats board asIamretiring from many make myself available for re-election tothe It iswithsadnessthatIhave decidednotto Our scorecard and objectives 9 What we said in FY2003 What we have achieved in FY2004 Objectives for FY2005

Produce efficiently and responsibly, while • 23% decrease in number of fatalities • 50% improvement in all safety indicators remaining in the lowest cost quartile in the • 15% decrease in lost time injury • Unit cost increase to be held to less than industry frequency rate rate of inflation and associated margin • Gross operating margin of 36% protection • Group unit cost increase of 4.1% • Unit cost increase at Impala held to 5.0%

(as compared to an inflation rate of 5.0%) OVERVIEW OUR SCORECARD Grow the business to 2 Moz of platinum • Mine-to-market production of 1.23 Moz • Mine-to-market production of 1.29 Moz by 2006 platinum, up by 8% platinum • With IRS production, refined platinum • Formulate plans to increase production processed through Refineries of to 2.3 Moz platinum, by FY2008 1.96 Moz (3.73 Moz PGMs) • On track to produce 2 Moz in FY2006

Deliver a superior stock market • Delivery of shareholder value a key • Complete sale of stake in Lonplats performance. element of business plan • Consider listing in the USA • Total shareholder return over the last five years of 33% • Share price maintains its levels year-on- year – a 12-month high of R641

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100 20 50 FY00 FY01 FY02 FY03 FY04 FY00 FY01 FY02 FY03 FY04 Jul04 Jul01 Jul03 Jul00 Jan02 Jan01 Jan00 Jul02 Jan03 Jan04 Jul99 Share price performance Share price performance (R) ($) Comparative performance against HSBC Global Mining Index and MSCI Free Market Index Implats HSBC MSCI

IMPLATS ANNUAL REPORT 2004 When we say that people are our greatest asset, we really mean it. Because we have not always had the Mineral Resources that our competitors have, we have had to tap into the resourcefulness of our people – and in so doing we have ensured that ours are among the most efficient operations in the world. Shadwick Bessitt, General Manager: Mining at Impala Platinum, has as one of his most important tasks the motivation and leadership of the people who make things happen on the ground. et ube Chief Executive Officer Keith Rumble, ($/oz Pt) Revenue perplatinumouncesold (R/oz Pt) Revenue perplatinumouncesold 5 786 Y0F0 Y2FY04 FY02 FY01 FY00 FY04 FY02 FY01 FY00 904 10 145 1 321 9 489 934 8 471 FY03 FY03 935 7 678 1 116 sarsl,theboard hasdeclared a result, a As million). million($265 822 by 2%toR1 Capitalexpenditure increased $428 million. terms thisrepresents a15%increase to InDollar compared to theprevious year. declined by 13%to R2 963million, profit royalties etc, andamortisation After providing for tax, tribution toearnings. million)represents apositive con- (R322 profit ondisposalfrom thesaleofBarplats million(55%)lower year-on-year.The (326) R397 and equityearningsfrom associateswere 4260 8880 similarly affected by currency movements, ciated business(mainly Lonplats)were (3594) (700) Contributions from investments inasso- Gross profit FY2004 (1026) Exchange rate impact – Inflation 2582 – Volumeincreases 5284 1014 Cost ofsalesincreases Total Increase inmetalprices Positive volume growth Gross profit FY2003 that gross profit declinedby 19%. The cumulative impactofthesefactors is balance related toinflationaryincreases. ofwhichR700million related totheincreased volumes andthe million, 026 R1 Cost ofsalesincreased by performance. with South African inflation–acreditable costsincreased inline million).Unit 594 R3 by thestronger localcurrency (negative million)were effectively negated 582 (R2 million)andDollarmetalprices 014 (R1 contributions from highersalesvolumes Positive local currency against theDollar. dominated by thestrengthening ofthe influenced by anumber offactors, Comparative year-on-year results were smelter. refurbishment ofLonplats’ Services (IRS)asaonce-off during the platinum thatwas refined by ImpalaRefining oz 000 included232 have setourselves.This continued delivery against thetargets thatwe reflecting Implats’ Moz, record level of1.961 17% increase inplatinum production toa highlightoftheyear was undoubtedly the A Introduction Chief Executive’s Review IMPLATS ANNUAL REPORT 2004 R million 768o,adces f94 nthe year. previous adecrease of9.4%on 678/oz, R7 was the average basket price inRandterms 19% ontheprevious year inDollarterms, anincrease of is Althoughthis for theyear. 116 $1 achieved anaverage basket price of Implats to monitorprice performance. use abasket price basedonweighted prices Given thatwe produce arange ofmetals,we economy. Chinese burgeoning increase indemandfrom a butalsoasignificant at amajorproducer, strike themetalbenefitednotonly from a as healthier year withsupply lagging demand enjoyed afar ontheotherhand, Nickel, prices underpressure. This willkeep fundamentals for themetal. beliestheunderlying poor recent months, theprice ofwhichhasspiked in rhodium, The thinmarket for $160/oz and$333/oz. 2000s –saw themetaltrading between runaway prices ofthelate1990s/early followedstatic demand–which the as acombinationofgrowing supply and The palladium market was notasfortunate, $597/oz. of the previous year’s average received price on beinganincrease of30% was $773/oz, price received for platinum Implats’average of expansion planshave beencutback. keep upwithgrowing demandasanumber and theperception thatsupply may not speculative activity cant increase inglobal signifi- general,a demand incommodities strong weak Dollarandequitymarkets, included These of $937/ozin April 2004. high trading between alow of$655/ozanda metal price during theperiod withthe A number offactors theplatinum supported The market R21 pershare ($3.06pershare). equivalent to million), million($204 399 R1 totaldividendpayout ofsome a in result ofR16pershare whichwill dividend final in asimplification ofthegroup’s structure. operations continued and thiswas reflected The strategy tofocus on mine-to-market Contribution toprofit

OVERVIEW 11 CHIEF EXECUTIVE’S REVIEW 12 OVERVIEW CHIEF EXECUTIVE’S REVIEW CHIEF EXECUTIVE’SREVIEW operations contributed man hours frequency rate(LTIFR)permillion Implats – rate (FIFR)permillionmanhours Implats – 12.64 0.087 FY00 FY00 0.158 8.43 Y1F0 FY03 FY02 FY01 Y1F0 FY03 FY02 FY01

Lost timeinjury Fatal injuryfrequency Mine-to-market 0.134 7.90 66% ofprofit 0.139 5.65 0.104 4.80 FY04 FY04 The netimpactoftheconsolidatedloss • Contributions from strategic alliances • which processes third party IRS, • the group’s mine-to- During theyear, • year-on-year. of improving all oursafety statisticsby 50% have setourselves atarget ahead.Indeed,we significantimprovementsfurther intheyear the group –we are committedtoachieving programmes thatwe have inplaceacross and–withthe in this achievement, part Impala Platinum have played animportant ground control districts programme at The fall ofground safety campaignandthe another record. 2.75 permillionmanhours worked – injury frequencyreportable rate (RIFR)was while the million manhours worked, all-time low for thegroup of4.80per injury frequency rate (LTIFR) reached an thelosttime More positively, who died. friends andcommunities ofthose families, year andwe extend ourcondolences tothe result ofoccupationalaccidentsduring the peoplelosttheirlives asa 10 Regrettably, Safety andhealth in linewiththe Global Reporting Initiative produced areport addition, In this report. 45to63of interests that follows onpages the Review ofoperations and briefly in sustainable development are dealt with and Issues relating tosafety andhealth, Sustainable development IMPLATS ANNUAL REPORT 2004 contributed 10%toprofit for theyear. for Barplats andtheprofit ondisposal year. was stillaccountedfor during the Lonplats remained satisfactory –at11%. the mine-to-market operations. reducing theunitcostsassociatedwith thereby processing andrefining capacity, very littlerisk tothegroup andusesspare thisoperation isundertaken at of 15%, Although IRS’s margins are in the region contributed 13%toprofit. refining, concentrates toll- andundertakes 41%. operations together amargin reported of These contributed about 66%ofprofit. ZimplatsandMimosa) Platinum, Marula market operations (ImpalaPlatinum, xmn ltnmpouto o the Ex-mineplatinum production for • highlighting are: Specific operating achievements worth operations andinterests onpages 45to66. inaReviewissue isdealtwithfurther of Marula Platinum.This EasternBushveld, the mining ramp-up atournew mineon The singleoperating lowlight was theslower has now ceased). processing ofLonplatsconcentrate (which the significant contribution from the spectacular results althoughthisdidinclude Impala Refining Services(IRS)delivered Inaddition, concentrators andrefineries. metallurgical performance atour by ably improved supported Zimbabwe, our miningoperations inRustenburg and characterized by record performance from The year was operational perspective. Implats hadanexcellent year from an Operational overview used togauging performance. which bothinvestors andmanagement are so financial andoperational indicators against withthetraditional environmental impact socialand for factors thathave aneconomic, integrating responsibility andaccountability The challenge remains oneof consultation). ago through aprocess ofemployee years initialvalues were developed 10 (The embodied inthesevalues are stillvalid. operations toensure thattheprinciples and updatedby ateamrepresenting allthe group (assetoutonpage 5)were reviewed isfor all thevalues ofthe During theyear, employees. it as andexecutive levels, board This isastrue at when necessary. support hand asaresource toprovide guidanceand althoughspecialistpersonnel are on issues, andsocial health,environmental,community management isresponsible for safety and Line the fundamentalsofourbusiness. principles ofsustainabledevelopment into We have endeavoured tointegrate the 2004. October be publishedby Implatsduring sustainable development –will reporting – theinternationalguidelinesfor ioa(280oz). 800 Mimosa (52 and (84300oz) level inadecade,Zimplats highest the Impala leasearea (1.09Moz), Implats’ focus is to Platinum production remain a platinum-based FY2004 FY2003 FY2004 FY2003 13 resources company (000 oz) Platinum Platinum PGMs PGMs Impala Platinum 1 090 1 040 1 976 1 924 Barplats 22 25 34 51 Marula 511 Zimplats 84 60 179 131 Mimosa (50%) 27 12 51 24 Mine-to-market 1 228 1 137 2 251 2 130 Lonplats 232 159 492 277

Other IRS 501 377 982 755 OVERVIEW Gross production 1 961 1 673 3 725 3 162

• An improvement of 1.3% in metallurgical • Industrial relations issues remain chal- CHIEF EXECUTIVE’S REVIEW recoveries to 83.2% at Impala operations. lenging with a number of work stoppages having taken place during the year at • A world-class performance at our Impala and Zimplats. Precious Metals Refinery, with no deteri- oration in cost performance, metal Strategy recoveries and pipeline inventories, Implats’focus is to remain a platinum-based despite operating well above nameplate resources company. A key objective is to capacity,and simultaneously undertaking provide superior returns to shareholders, a major expansion. relative to our peers.

• Group unit costs were well contained An important part of our strategy is to focus with resultant unit costs per platinum our attention on those assets and ounce only increasing by 4.1% compared operations where we can add value, where to an increase of 5.0% in the South we have a competitive advantage and where African inflation rate (CPIX) over the we have a strategic influence.We are com- same period. The bulk of group costs mitted to ensuring that what we do can be relate to wages at Impala where fully analysed and valued by our investors. total headcount was reduced by 900 employees (3.2%). In spite of this, During the past year,two major transactions mining efficiencies disappointingly were announced: the sale of Implats’ 27.1% decreased to 39m2/panel employee due holding in Western Platinum Limited and to a combination of shorter panel widths Eastern Platinum Limited (collectively (for safety reasons) and the slower than Lonplats), and the sale of Barplats. expected roll-out of the programme to improve drilling rates, primarily as a The Minister of Minerals and Energy, result of resistance by some employees Ms Phumzile Mlambo-Ngcuka has indi- to new work methods. cated that, as presented, the Lonplats transaction is in line with the requirements • High underlying wage pressures remain of the new mining law. Although the an issue of concern for the industry. Department of Minerals and Energy (DME) A two-year wage agreement was will only evaluate compliance with the reached providing for an increase of legislation when the parties formally apply Impala Platinum 56% 9.5% from July 2003 in year one and an for conversion to new order mining rights, Other IRS 26% increase of 1.5% above CPIX in year two. the Minister has acknowledged that, Zimplats 4% Should the result in the second year be having both facilitated this transaction, Mimosa 1% Barplats 1% an increase of less than 7.5% or more Implats and Lonmin will be allocated Lonplats 12% than 9% either party has therightto credits proportional to the percentages Marula 0.1% reopen negotiations on wages only. and ounces they have sold to their BEE With CPIX currently at 5%, this has partners. We anticipate that in Impala Percentage contribution to necessitated re-opening negotiations for Platinum’s hands this will equate to credits gross platinum production the current year. of 9%.

IMPLATS ANNUAL REPORT 2004 14 OVERVIEW CHIEF EXECUTIVE’S REVIEW CHIEF EXECUTIVE’SREVIEW Lonplats transaction will fund capitalexpenditure (R million) Group capex Cash flowing from the FY00 783 in SAandZimbabwe. Any excess cashwill 2 090 Y1F0 FY03 FY02 FY01 edistributed to be 1 250 shareholders 1 787 1 822 FY04 neto or-pntemine. intention tore-open the The new owners have announcedtheir when intooperation. thisminecomesback any concentrate thatmay beproduced with theCrocodile River minetoprocess IRS hasalong-termagreement inplace the beginning ofJuly. 2004 andthenew owners tookover from African competitionsauthorities inJune tion received theapproval oftheSouth The transac- Salene Platinum Consortium. milliontothe the operation for R389 tosell andsubsequently, Annual Report), profitability onfully (reported inlastyear’s operation defied allefforts towards the Crocodile River minewhen this by the board toceaseminingoperations at The Barplats transaction follows adecision will bereturned toshareholders. Any excess cash here andinZimbabwe. both capital expenditure requirements, Implats’ transaction willbeusedtofund cash flowing through toImplatsfrom this amounting to1%ofthepurchase price.The atadiscount terms oftheMiningCharter Implats tomeetsomeofitsobligations in This transaction enables announcement. Lonplatsatthetimeoffirst of 8% ontheimpliedmarket valuation of $800millionrepresents apremium of thepurchase price empowerment credits, Inadditiontothe benefit ofshareholders. thatithasbeenconcludedtothe and is inthegroup’s beststategic interest The board issatisfiedthatthistransaction fti,R3.5billion hadbeenspentby the Of this, programme isunderway atImpalaPlatinum. A R5.3billionminingcapitalexpenditure years. production within thenext few all five tobein new declines scheduled programme isnow comingtofruition,with declinedevelopment Implats strategy.The and beyond elementofthe isanimportant Mozofplatinum over thenext 30years 1.1 Impalaatalevel of1.0to operations at Sustaining research anddevelopment. andasaleaderintermsof expertise and alsoasaresource intermsofskills but the group notonly inaproduction sense, Impala continues tobethemainstay of Platinum, primary operation, Implats’ Sustaining operations IMPLATS ANNUAL REPORT 2004 has successfully concluded itsexpansion theworld – low-cost operations in efficient, which continues tobeoneofthemost The with ourinvestment. we have progressed cautiously In Zimbabwe, challenge. profit generator isexpected butremains a Turning themineintoa the miningplan. been conductedprior toimplementationof more trial miningshouldhave hindsight, mine.With annum over thelife ofthe deliver additionalplatinum ouncesper will indeed, ments inminingrates and, has already resulted insignificantimprove- The new hybrid plan conventional stoping. developmentmechanized combinedwith and implementedrevisions incorporating we have reviewed theminingplan group, Using theskillsgained elsewhere withinour initiallyfortechniques chosen themine. mining viability ofthemechanized development rates andhave hindered the more variable dipshave resulted inslower The steeper, significantly behindschedule. which hasresulted intheproject being presented anumber ofminingchallenges thegeology oftheorebody production, facilities have beenbrought smoothly into surface infrastructure andprocessing the While Bushveld Complex isacaseinpoint. production ontheEasternLimbof one ofthefirst projects tohave comeinto which is The Marula Platinum mine, arises. circumstances andnew information asthis aswell astheabilitytoadapt market, strength andalong-termview ofthe upnew projectsStarting requires financial million). (R40 million)andZimplats(R76 Mimosa million), projects atMarula (R505 thenewer year was dedicatedtodeveloping the for capitalexpenditure Part ofImplats’ Growth in thenext decade. 30%)when they comeonstream early (+/- ofImpala’sproportion minetonnage andwillcontribute asignificant operation, considerably deeperthanthosecurrently in These shaftsare board inSeptember2004. be presented for approval totheImplats and 20shafthave beenoptimizedandwill plansfor 16shaft 30-year production plan, ofthe Aspart of thedeclineprojects. mostly onthedevelopment end ofFY2004, Mimosa mine– Mining companies programme this year, and still further jewellery manufacturer, South African expansion is now being considered by the jewellery producer, SA Link, specialist must go where the joint venture partners. The current plan at corporate finance house Micofin Corporate 15 orebodies are Zimplats is to expand in stages thereby Services and Swedish-UK consortium,Saab- minimising the risk, while maximizing the BAE Systems. Silplat, which is based in Cape benefits to be gained through our pre- Town, was officially opened by the Minister eminent position on the Great Dyke. of Minerals and Energy in April 2004.

Operating in Zimbabwe can be difficult Implats’contribution to the venture is in two given both the socio-political dynamics parts; firstly, a direct equity investment of and hyper-inflationary economic circum- $2 million for a stake in Silplat of 17.5%.

stances. Recent government moves on (Investment, both foreign and local, in OVERVIEW introducing additional indigenization Silplat totals $25 million.) Secondly,Implats quotas without due consultation are of will facilitate the supply of metal through a CHIEF EXECUTIVE’S REVIEW great concern to us. Nonetheless, both platinum loan of up to 1 000 kg, of which Mimosa and Zimplats have continued to 171 kg has already been taken up.Silplat will operate and grow in line with our only pay Implats for the metal once it has expectations, and our relationship with the despatched the platinum jewellery from government has been amicable, driven by its premises and will pay a commercial issues of mutual concern. We await clarity lease rate on the outstanding portion of the on the impending changestothe mining law platinum loan. in that country as a prerequisite to any further significant investments. I have touched briefly on the issues relating to mining in Zimbabwe. The ultimate truth Positioning the group at home for mining companies is that we must go and abroad where the orebodies are, and we must Ensuring that we not only comply with local ensure that we can develop those assets empowerment or indigenization legislation, with a long-term vision. Who would have but that we are positioned to take advan- thought 10 years ago that, today, resources tage of the opportunities that present companies from all over the globe would be themselves, is an important element in our investing in Russia or China. strategy. In this context, it is incumbent on manage- In South Africa, this entails grappling with ment to mitigate the risks of investing in this issues such as transformation in such a way region to an acceptable level.This will require that we not only comply with legislation ongoing dialogue with the governments of that has been set, but that we also address Zimbabwe and South Africa to ensure that the issues so as to provide the group with a our business investments can be secured,and competitive advantage. Implats has a our aspirations for those businesses realised, history of a participative approach, and while working within the socio-political using the full capacity of the people within frameworks required by these governments. the organization – be they female or male, black or white – makes business sense. To Shareholder returns drive this process, the board has appointed Our primary driver is the delivery of a transformation committee, to develop shareholder returns. Among the issues strategy, set targets and monitor progress currently being considered by the group are and I look forward to reporting on this in the optimization of the balance sheet, the

South Africa 58% years to come. distribution of excess cash, the broadening USA 16% of our shareholder base and increasing England and Wales 14% In line with government’s increased focus on liquidity. Other Europe 6% beneficiation,Implats recognizes the impor- Other countries 5% tance of developing a local beneficiation We anticipate that, in the absence of any Below threshold 1% industry and to this end has entered into a acquisition opportunities, just more than Share ownership platinum jewellery beneficiation venture, half the net inflow from the Lonplats trans- (FY2004) Silplat, with Silmar S.p.A., a leading Italian action in FY2005 (of $668 million) could be

IMPLATS ANNUAL REPORT 2004 16 OVERVIEW CHIEF EXECUTIVE’S REVIEW CHIEF EXECUTIVE’SREVIEW but thiswilldependto Whereas profit should odecrease modestly, to earnings are expected aeoftheinterest in sale substantialextent a proceeds from the opas headline Lonplats, ntheprevailing on enhanced by the be significantly exchange rate eaecretyinvolved. we are currently concluded thecorporate activitywithwhich initiatedoncewe have exchange.This willbe applying tolistonamajorUSstock 2and upgrading thisprogramme toaLevel We are currently considering 2004. ADR holders was implementedinearly split andaDividendReinvestment Planfor afurther ADR programme inJanuary 2003, barked onasponsored level 1 ADR Having em- interact withshareholders. both broaden ourinvestment baseandto in anactive investor relations programme to For someyears now we have beenengaged special dividend. of avenues includingashareor buy-back we are considering anumber shareholders, Having consultedbroadly with projects. capital requirements for ourgrowth some form afterallowing for oursubstantial available for distribution toshareholders in prevailing exchange rate. will dependtoasubstantialextent onthe butthis are expected todecrease modestly, headlineearnings the interest in Lonplats, saleof enhanced by theproceeds from the Whereas profit shouldbesignificantly in linewithinflation. unitcostincreases are expected tobe time, At thesame MozinFY2005. to about1.8 platinum production isexpected todecline refined Consequently, will notberepeated. platinum processed onbehalf ofLonplats buttheonce-off windfall of production, production andfrom its traditional IRS managed will grow from Implats’ Production for FY2005 MozinFY2008. 2.3 production potentially rising toabout set tocontinue over thenext four years,with consistentgrowth inproduction is Implats’ supply. in strong demandandvery littlegrowth nickel of shouldremain firmontheback supply andabove ground inventories whilst and rhodiummay fall victimtogrowing palladium However, more role. supportive with arecovery injewellery providing a demand willbethekey driver for platinum, Automotive forecast toremain sound. The market fundamentalsfor platinum are Prospects IMPLATS ANNUAL REPORT 2004 27 August 2004 27 August Chief Executive Keith Rumble adverse circumstances. undersometimes a sterlingperformance, delivering difference atanoperational level, employees who have continued tomake the And ourthankstooare extended toourloyal in large –aresult ofitsefforts. part performance inmeetingourobjectives is– andour hascontinued tobe multi-disciplinary andinnovative, interests, and base that we have significantly grown our asset thefact intentionally smallandlean,despite Our management teamhasremained contribution hewillmake totheboard. andtothe ournew Chairman, Roux, We lookforward toworking withDrFred period ofgrowth andchange atImplats. Implats andfor hisleadership during a significant contributions hehasmadeto We thankhimfor the member for nine). Chairman for thepasttwo years andboard we bid farewell toPeter (our Joubert Sadly, governance attheboard level. mation andbestpractices incorporate embracing transfor- retirements andin board inanticipationofanumber of Five new members have joinedour many. A group thesizeofours owes thanks to Thanks Group value-added statement 17 For the year ended 30 June (R million) 2004 2003 % change Sales 11 809.1 11 807.0 0.0 Net cost of products and services 4 694.8 4 421.2 (6.2) Value added by operations 7 114.3 7 385.8 (3.7) Income from investments and interest 495.8 1 280.5 (61.3) TOTAL VALUE ADDED 7 610.1 8 666.3 (12.2) Applied as follows to:

Employees as salaries, wages and fringe benefits 2 452.0 2 231.1 (9.9) OVERVIEW The state as direct taxes 1 141.3 1 936.4 41.1 Royalty recipients 414.4 598.0 30.7

Providers of capital 1 565.1 2 363.0 (33.8) CHIEF EXECUTIVE’S REVIEW Financing costs 67.1 33.3 (101.5) Dividends 1 498.0 2 329.7 35.7

TOTAL VALUE DISTRIBUTED 5 572.8 7 128.5 (21.8) Re-invested in the group 2 037.3 1 537.8 32.5 Amortisation and depreciation 572.3 452.4 (26.5) Reserves retained 1 465.0 1 085.4 35.0

7 610.1 8 666.3 (12.2)

Employee costs 32.2% Employee costs 25.8% Retained for future growth 26.8% Retained for future growth 17.7% Capital providers 20.6% Capital providers 27.3% Taxation and royalties 20.4% Taxation and royalties 29.2%

FY2004 FY2003

IMPLATS ANNUAL REPORT 2004 18 OVERVIEW RESPONDING TO THE MINING CHARTER Employment equitytargets–% (FY2004) management 10.3 Senior urn FY2006 Current 23.5 management 29.3 Middle 31.2 43.1 kle Total Skilled 45.1 39.4 42.3 .Minecommunityandrural development 4. .Foreign labour 3. Employment equity 2 Responding totheMiningCharter Human Resource Development 1 A more detailedresponse may befound intheCorporate Responsibility Report 2004. f change andtoensure compliancewithlegislation.The The board hasappointeda Transformationof theworkplace. Committee toleadtheprocess of bothinsideandout Italsoaimstodevelop thepotentialofemployees, affected by itsoperations. Implatsrecognises therights ofemployees andcommunities forCharter theMiningIndustry. thenew minerals legislation andtheaccompanying Broad-Based Socio-Economiccompliance),with to establishprocesses andputinplacestructures toenableitcomply (andtomonitorthis Implatshasbegun play role inthetransformation animportant oftheminingindustryasawhole. will The Minerals andPetroleum Resources whichcameintoeffect inMay Development 2004, Act, IMPLATS ANNUAL REPORT 2004 Implats takes seriously itscommitmenttomaximize thesustainable socio-economic • urnl,2.%o h mlt’wrfrei oeg.( workforce isforeign. 23.6%oftheImplats’ Currently, • Only 2.6%oftheoverall workforce are • • ofthegroup’s Currently,33% manager’s comprise HDSAs(22%attheminingandmineral • The group’s employment equityframework hasbeendeveloped in • Implats’ • • Implatshaspublishedits • Implatsoffers every employee tobe theopportunity • is topromote aculture ofrespect for diversity. aimofthegroup’srights important andlabourlegislation.An Transformation Department conventions whichaccord migrant workers equalitybefore thelaw regarding human The group subscribes to the ILO Implats doesnotdiscriminate against foreign labour. ofwhich he orsheisnotanational. inacountry whoisengagedinapaidactivity person once themining cycle ends. development ofcommunities inwhichitoperates toactasacatalyst for development Paterson Grading System. requisite facilities andpolicies.( diversity management programmes andtheevaluation andprovision ofthe incentives, specificinterventions includethedevelopment and ofchampions equity programme, Inadditiontotheemployment and30.6%atcorporate office). at Mineral Processes, into thePaterson E-level band. Astrategy hasbeendeveloped tofast track HDSAemployees plans beingestablished. Talent pools 42%atRefineries and33%atthecorporate office). processing operations, in theperformance evaluations ofmanagers. inemploymentfeature equityhasbecomeanimportant set upatalloperations.Progress employee representatives programme, bursaries andgraduate recruitment. mentorship schemes, a “space creation” additionalfunding, revised recruiting procedures, These include equity related both topreviously disadvantaged employees andwomen. thegroup hasembarked onadditionalmeasures toadvance employment legislation, inorder tomeetthetargets setby thenew minerals But, ofLabour. Department 51million. R5.1 571employees in participated ABET atacosttothecompany of InFY2004, basis. Education (ABET)classesare available atallthegroup’s operations onafullorpart-time Adult Basic Some 21.4%ofallemployees are functionally literate andnumerate. Nation. predominantly amongstHDSAemployees andemployees from theRoyal Bafokeng Mentorship programmes development programmes. was spentspecifically onthedevelopment ofHDSAemployees onaccelerated anddisabled persons. includespeopleofcolour,women in1993.It into effect constitutioncoming thenew community disadvantaged to by prior unfairdiscrimination ( Historically Disadvantaged South Africans (HDSAs). emphasisisplaced onskillsdevelopment Aparticular for training during theyear. withsome85%oftheworkforce having undergone formal programmes inFY2004, R130millionwas spentonskillsdevelopment Qualifications Authority (MQA). Integrated Workplace SkillsDevelopment Plan aebe dniidwti h DArns withindividualdevelopment have beenidentifiedwithintheHDSAranks, ) employment equityplan ,and consultative employment equitycommitteeshave been ,and have beendeveloped for thoseidentifiedwithpotential, Management is defined as everyone from uponthe Dlevel aseveryone Management isdefined women ollowing isabrief response totheCharter. (2.9% at mines,15% atRefineries,13.4% (2.9% atmines,15% functionally literate which hasbeensubmittedtothe HDSA is defined as any person or asany person HDSA isdefined A foreign asa labourer isdefined has beenacceptedby theMine consultation with and ) R50million numerate ✓ ✓ ✓ ✓ ) . 4. Mine community and rural development (continued) • Implats’ strategy includes co-operating in the formulation of Integrated Development Plans (IDPs) at a national, regional and local level. Involvement includes taking a 19 leadership role where this is necessary, facilitating industry co-operation and engaging with mine communities. This co-operation is now being extended to labour-sending areas. Key areas of co-operation and influence are the areas around Rustenburg (the Rustenburg Local Municipality,the Bojanale Platinum District Municipality),Springs and Steelpoort (the Sekhukhuneland and Greater Tubatse district municipalities).

5. Housing and living conditions ✓ • The company subscribes to the ideal that employees should reside with their families in a stable healthy environment within commuting distance of their workplace.

•A housing forum, established on 18 February 2004 and comprising representatives of OVERVIEW management and unions, is investigating all accommodation issues, including upgrading company houses and hostels and promoting home ownership through the in-house Home Ownership Scheme.In FY2004,190 employees became home owners through this scheme. • It remains a reality though that there will always be a sizeable portion of employees who

will choose not to move their families to their region of work and it is the company’s THE RESPONDING TO MINING CHARTER intention to convert current hostels into private single accommodation units. • A recent evaluation of the nutritional value of the meals served to Impala Platinum hostel residents resulted in the appointment of a new contractor to serve more nutritious, balanced meals with effect from September 2004.

21 119 6. Procurement ✓ • Implats has developed a procurement policy which will encourage both the identifi- cation and development of accredited HDSA suppliers,and increase the company’s spend with such suppliers. (The policy can be found on the company’s website at 12 933 www.implats.co.za).The principles contained in the policy were communicated to more than 4 000 existing suppliers to encourage them to transform their businesses, and to 9 881 new and potential suppliers so that they may understand the company’s requirements. • Targets are in place for procurement from HDSA companies, at both a group and an 5 900* operational level.Total affirmative procurement spend in FY2004 was R500 million, well in excess of the target of R400 million. A target of 20% of total procurement through HDSA companies has been set for FY2009.

7. Ownership and joint ventures ✓ FY92 FY00FY04 FY10 • Implats is committed to achieving the ownership targets set in the minerals legislation Hostel occupancy and is on track to achieve this within the specified timeframe. The group has – since a (No of employees) land-mark deal in the late 1990s – had the Royal Bafokeng Nation (RBN) as a significant * Target shareholder (1.5%) in the group.This is over and above the royalty agreement with the RBN that exists over the Impala lease area that has seen the payment to the RBN of some R2.5 billion for the last five years. The recently announced sale of Implats’ 27.1% stake in Lonplats will lead directly to the creation of Incwala, intended to become a leading empowerment company in the South African resources sector. Implats’Marula operation, has since project inception in 2000, envisaged a broad-based BEE stake.

8 Beneficiation ✓ • Implats supports the efforts by government to establish industries that add value to the metals and minerals mined in South Africa.Through its world-class precious and base metals refineries Implats is not only able to refine the metals to the required specifications of end users – from ingots to salts – but also offer these facilities to other producers locally and internationally.Through its agreement with A1 Services and Supplies Inc in the United States,Implats is the largest recyler of autocatalysts in the world,all of which are brought into the country from the US. • Implats has participated in the first platinum jewellery beneficiation projectin the country. It also provides metals to one of the largest producers of autocatalysts for local production.

9 Reporting ✓ • Implats published its first “scorecard” in response to the charter in the 2003 Annual Report. The scorecard has been updated in this report and is reported on more fully in the group’s Corporate Responsibility Report 2004.

IMPLATS ANNUAL REPORT 2004 20 OVERVIEW STATISTICS www.implats.co.za A more comprehensive historygoing to1997isavailable back intheonline Annual Report onthecorporate website at Dividends pershare (cents) of the company 2 963.0 2 Earnings pershare (cents) of thecompany Profit attributable toequityholders Attributable tominority interest Profit for theyear Income taxexpense Profit before tax Royalty expense Share ofprofit ofassociates Finance income– net Profit from saleofsubsidiaries Other income/(expenses) Other operating expenses Net foreign exchange transaction (losses)/gains Gross profit Cost ofsales Sales (R million) Income statements(for theyears ended30June) Other Platinum – special – interim +proposed – headline(basic) Increase/(decrease) inmetalinventories Metals purchased ofminingassets Amortisation Refining operations Concentrating andsmeltingoperations Nickel Rhodium Palladium – basic On-mine operations Statistics IMPLATS ANNUAL REPORT 2004 11 809.1 (2 259.2) (1 141.3) (3 667.7) (7 549.4) 7 941.2 1 283.6 1 119.2 2 980.4 4 121.7 4 259.7 (572.3) (477.2) (967.4) (414.4) (241.2) (216.0) 788.1 328.4 322.3 394.4 677.0 2 100 3 966 4 450 (17.4) 2004 71.5 11.4 18701 0. 1 6. 7003.6 11969.1 11901.5 11 807.0 1441 1834 ( 6.) (698.8) (1968.8) (1883.4) (1 474.1) 1621 1764 ( 3.) (949.1) (2431.1) (1736.4) (1 622.1) (1997.6) (3804.2) (2330.1) (5003.2) (2567.5) (5561.0) (3 251.1) (6 523.3) 9. 3. 5232 3017.2 5253.2 6137.4 7 390.5 5. 8. 2191 1218.0 2199.1 1788.3 1 158.8 8. 8. 3190 1689.2 3129.0 2580.9 1 682.5 3. 9. 4625 2257.5 3206.6 4652.5 7083.6 4591.4 6327.8 3 438.3 5 060.4 3199.4 6965.9 6340.5 5 283.7 1. 8. 4671 2255.0 4647.1 4581.5 3 415.1 131 3. 3. (219.3) 333.7 136.0 (248.8)(212.2)(139.9) (133.1) (354.7)(333.3)(307.9) (642.6)(492.5)(440.7) (452.4) (411.5) (801.1) 580 844 803 (406.4) (890.3) 20.0 (804.4) (598.0) 157.7 (96.6) (203.9)(117.1) 130.8 (252.6) (328.8) 5 0 380 1760 3394 3800 7035 3700 6877 2 650 5 140 3 0 704 3422 7024 6902 5 131 3. 713.3687.6478.8 681.6700.2600.4 636.9 938.3 2. 697.3647.3220.0 265.5383.3228.2 725.0 285.8 0320 012000 2001 2002 2003 5.)(80 6.) 42.0 (98.0)(63.2) (54.7) 2.)(9.9)(5.4)(2.5) (23.2) 3 000 21 Balance sheets (as at 30 June) (R million) 2004 2003 2002 2001 2000 ASSETS Non-current assets 12 357.7 11 391.2 9 324.1 6 833.4 4 321.1 Property, plant and equipment 9 635.6 8 808.9 6 218.4 5 230.6 3 357.3 Investments and other 2 722.1 2 582.3 3 105.7 1 602.8 963.8 Current assets 4 680.2 4 878.1 5 448.3 5 162.3 4 504.3 Total assets 17 037.9 16 269.3 14 772.4 11 995.7 8 825.4 STATISTICS OVERVIEW EQUITY AND LIABILITIES Capital and reserves 10 684.8 9 877.4 9 284.0 6 715.6 5 716.4 Minority interest 128.1 418.9 61.6 19.2 13.8 Non-current liabilities 2 541.5 2 213.1 1 683.4 1 465.2 1 195.1 Borrowings 62.7 86.3 113.1 137.6 Deferred income tax liabilities 2 271.9 1 886.7 1 389.6 1 156.1 889.7 Provision for long-term responsibilities 269.6 263.7 207.5 196.0 167.8 Current liabilities 3 683.5 3 759.9 3 743.4 3 795.7 1 900.1 Total equity and liabilities 17 037.9 16 269.3 14 772.4 11 995.7 8 825.4

Cash, net of short-term borrowings 635.6 2 119.8 3 123.5 3 013.1 3 081.4 Cash, net of all borrowings 635.6 2 057.1 3 037.2 2 900.0 2 943.8 Current liquidity (net current assets excluding inventories) (233.1) 270.8 784.8 587.3 2 164.6

IMPLATS SHARE STATISTICS No. of shares in issue at year-end (m) 66.6 66.6 66.6 66.3 66.1 Average number of issued shares 66.6 66.6 66.4 66.2 65.9 Number of shares traded 65.5 71.3 50.0 36.4 31.7 Highest price traded (cps) 64 100 65 001 72 000 47 300 29 600 Lowest price traded 41 650 34 600 28 700 23 980 15 400 Year-end closing price 47 100 44 600 57 180 40 360 25 220

A more comprehensive history going back to 1997 is available in the online Annual Report on the corporate website at www.implats.co.za

IMPLATS ANNUAL REPORT 2004 22 OVERVIEW STATISTICS STATISTICS oe noeadepniuehv encnetda h vrg xhnert o h er ae elcsata olrreceipts. Incomeandexpenditure Salesreflects have actualDollar beenconverted attheaverage exchange rate for theyear. Note: ftecmay427.5 www.implats.co.za A more comprehensive historygoing to1997isavailable back intheonline Annual Report onthecorporate website at Earnings pershare (cents) of thecompany Profit attributable toequityholders Attributable tominority interest Profit for theyear Taxation Profit before tax Royalty expense Share ofresults ofassociatesbefore tax Financial income–net Other income/(expenses) Other operating expenses Net foreign exchange transaction (losses)/gains Gross profit Cost ofsales Sales ($ million) US Dollarstatistics(for theyears ended30June) Increase/(decrease) inmetalinventories Metals purchased ofminingassets Amortisation Refining operations Concentrating andsmeltingoperations On-mine operations IMPLATS ANNUAL REPORT 2004 (1 100.0) 1 716.4 (329.2) (141.0) (534.4) (166.3) 430.0 596.3 616.4 (83.4) (69.5) (60.4) (35.1) (31.5) 2004 47.9 10.4 48.6 57.5 (2.5) 642 0. 8. 1528 1108.2 1572.8 1184.2 1 303.3 134 (185.9)(258.7)(110.5) (163.4) (253.3)(306.2)(315.9) (360.4) 732 (548.8)(657.5)(601.6) (723.2) 199 114 (319.5) (150.1) (171.4) (179.9) 7. 6. 611.3357.6 462.8 634.2930.8507.7 375.4 555.3 635.4915.3506.6 580.1 7. 461.8610.6357.2 372.8 0320 012000 2001 2002 2003 1.)1. 38(34.7) 43.8 13.4 (14.8) (63.4)(64.7)(69.7) (88.8) 5.)(24.6)(27.9)(22.1) (35.0)(43.8)(48.7) (50.2) (45.6) 6.)(94 170 (64.3) (117.0) 3.2 (79.4) 20.7 (66.3) (20.1)(15.4)(15.3) 12.9 (28.0) (36.5) 0468.885.134.8 26.250.436.1 80.4 31.7 6 696923542 560 61 96 83 6.6 (9.6)(8.3) (6.1) 26 (1.0)(0.7)(0.4) (2.6) Operating statistics (for the years ended 30 June) 2004 2003 2002 2001 2000 23 Gross refined production Platinum (000 oz) 1 961 1 673 1 387 1 291 1 199 Palladium (000 oz) 1 046 893 732 681 636 Rhodium (000 oz) 251 215 177 164 155 Nickel (000 t) 16.4 14.7 13.0 14.0 13.8 Impala refined production Platinum (000 oz) 1 090 1 040 1 025 1 002 1 020 Palladium (000 oz) 501 478 489 481 493 STATISTICS Rhodium (000 oz) 116 134 123 128 131 OVERVIEW Nickel (000 t) 6.9 8.0 7.7 7.0 7.2 IRS refined production Platinum (000 oz) 871 633 362 289 179 Palladium (000 oz) 545 415 243 200 143 Rhodium (000 oz) 135 81 54 36 24 Nickel (000 t) 9.5 6.7 5.3 7.0 6.6 IRS returned metal (Toll refined) Platinum (000 oz) 501 252 152 164 102 Palladium (000 oz) 314 174 102 116 93 Rhodium (000 oz) 97 18 16 21 17 Consolidated statistics Exchange rate: (R/$) Closing rate on 30 June 6.17 7.52 10.32 8.06 6.92 Average rate achieved 6.88 9.06 10.16 7.68 6.40 Free market revenue per platinum ounce sold ($/oz) 1 140 939 934 1 376 1 005 Revenue per platinum ounce sold ($/oz) 1 116 935 934 1 321 904 (R/oz) 7 678 8 471 9 489 10 145 5 786 Prices achieved Platinum ($/oz) 773 597 485 586 428 Palladium ($/oz) 223 264 389 773 465 Rhodium ($/oz) 548 646 1 098 2 001 1 223 Nickel ($/t) 11 843 7 664 5 594 6 951 7 500 Sales volumes Platinum (000 oz) 1 495 1 373 1 251 1 177 1 209 Palladium (000 oz) 733 688 663 543 656 Rhodium (000 oz) 179 193 165 145 171 Nickel (000 t) 15.8 13.9 12.0 14.1 14.0 Financial ratios Gross margin achieved (%) 36.1 44.8 53.3 58.2 45.7 Return on equity (%) 30.0 36.8 68.2 81.3 55.7 Return on assets (%) 24.0 30.0 49.1 68.0 52.2 Debt to equity (%) 5.3 2.7 1.2 2.0 2.8 Current ratio 1.3:1 1.3:1 1.5:1 1.4:1 2.4:1 Operating indicators Tonnes milled ex-mine (000 t) 19 065 17 483 15 607 15 184 14 662 PGM refined production (000 oz) 3 725 3 162 2 639 2 464 2 308 Capital expenditure (Rm) 1 822 1 787 1 250 2 090 783 ($m) 265 198 123 275 124 Group unit cost per platinum ounce (R/oz) 4 132 3 970 ($/oz) 602 440

A more comprehensive history going back to 1997 is available in the online Annual Report on the corporate website at www.implats.co.za

IMPLATS ANNUAL REPORT 2004 We are more than just a mining company at Implats – we are an integral part of our community.As the union representative on the management/union HIV/AIDS forum,Abram Zulu plays a pivotal role in ensuring that the company assists the local community in developing AIDS awareness on the one hand, and in providing care and support for those in need on the other. Increasingly we are extending our support to the communities from which our employees are drawn. and conductadvocated Implats supports and Implats supports applies thepractices in KingII arrangement. company hasasignificantcontractual withwhom the the Royal Bafokeng Nation, be independentgiven hisrelationship with isnot considered to non-executive director, directors on the board. Mr Mr TV board. directors onthe There are 11independentandfour executive mainly independentdirectors. reviewed regularly.The committeescomprise considered asdynamic documents whichare The termsofreference are with KingII. revised inMay 2003toensure compliance reference were approved by theboard.These theboard operate withinagreed termsof of Allcommittees website www.implats.co.za. isavailableboard charter onthecompany’s The matters reserved for board approval. regulating therole oftheboard andoutlining The board hasadoptedaformal board charter two meetingswere such held. under review, During theyear astheneedarises. issues, meets onanadhocbasistoconsiderspecific theboard also boardscheduled meetings, Inadditiontothesix stakeholder reporting. group policiesand and commitments, disposalsandothermajorcontracts tions, acquisi- thebusinessplan, strategic issues, the operational performance ofthegroup, to review sixtimesayear, meets regularly, The board reserved for board approval. authority ofmanagement andmatters Anapproval framework definesthe group. retains fullandeffective control over the The board isbasedonaunitarystructure and Board ofdirectors stakeholders. holders willbenefitallthegroup’s other A focus onsustainablevalue for share- benefit ofallstakeholders are ongoing. ments toachieve bestpractice for the Developments andenhance- addressed. concern were identified and are being management’s request andareas ofpossible governance procedures was conductedat afullauditofthegroup’s corporate 2002, Following therelease inMarch ofthisreport advocated intheKingReport 2002(KingII). Corporate Practices andConduct as andappliestheCodeImplats supports of Corporate governance IMPLATS ANNUAL REPORT 2004 ACCOUNTABILITY ogth,a Mokgatlha, u below: out electedorre-elected atthe are set AGM be The curriculum vitaeofalldirectors to Committee. (HSE) Audit Safety andEnvironmental of theHealth, ensure asmoothtransition calendar year,to to continue inoffice untiltheendof requested by hisco-directors andhasagreed hasbeen having reachedtheage of68, MrMFPleming, the endofnext AGM. has indicatedhisintentionofresigning at reachedtheage of71, Mr PGJoubert,having their co-directors sorequest. ifamajority of continue onanannual basis, theirtermsofoffice executive directors, inthecaseofnon- provided that, birthday, executive directors following their67th andnon- following their63rd birthday, Executive directors retire atthe AGM a staggered basistoensure board continuity. Re-election ofboard members ison terms. Board members are electedfor three-year and19% women. women), Disadvantaged South Africans (including The board now comprises 38%Historically meeting(AGM). annual general electionattheforthcoming for ments necessarytopropose theseappoint- It is experience attheboard’s disposal. skills and board positionsandtoincrease therange of year toensure thatsuccessors exist for key made totheboard during thecourse ofthe Five new independentappointmentswere Chairman isanindependentdirector. andthe Executive Officer are separate, The positionsofChairmanandChief national electrification programme. responsible for theimplementationof member ofESKOM’s management board a Managing director ofMTN(SA).Previously (Independent director) EDP MBA, BSc (ElectEng.) Mr RSNDabengwa To beelected (46)

ACCOUNTABILITY 25 CORPORATE GOVERNANCE 26 ACCOUNTABILITY CORPORATE GOVERNANCE CORPORATE GOVERNANCE uigteya ietr teddbadadcommitteemeetingsasfollows: During theyear directors attendedboard and ohl 0 1 a apology = invitation = a i √ special board meetings = * Key LC van Vught FJP Roux MF Pleming LJ Paton NDB Orleyn DM O'Connor K Mokhele TV Mokgatlha MV Mennell JM McMahon CE Markus RSN Dabengwa DH Brown KC Rumble PG Joubert JV Roberts tedd=notapplicable = attended = √√ √√√√√√√√ √√√√√√√√ √√√√√√√√ √√√√√√√√ √√√√√√√√ √√√√√√√√ √√√√√√√√ √√√√√√√√ √√√√√√√√ 29/07/2003* 22/08/2003 a √√√√√√ 18/09/2003 √√√√√ ietr omte omte omte Committee Committee Committee Committee Directors or f ui eueainHEAdtNominations HSE Audit Remuneration Audit Board of Previously Chairmanof Alusaf andan Non-executive director ofXstrata plc. (Independent director) MBA. PhD, MSc, BSc, Dr FJPRoux to employers. arbitration andtraining services facilitation, organization whichprovides mediation aSouth African non-governmental IMMS, Mediationand Arbitration andat tion, Previously CEOattheCouncil for Concilia- mediatorandtrainer. facilitator, attorney, Routledge-Modise where shepractices as Director andseniorattorney atthelaw firm (Independent director) LLB BProc; B Juris, Ms NDBOrleyn Iscor Limited. Director, National Research Foundation; President executive andchief officer ofthe (Independent director) biology) PhD(Micro- MSc(Food Science); BSc, Dr KMokhele IMPLATS ANNUAL REPORT 2004 07/11/2003 √√√ √√ 10/02/2004 √√√ 20/04/2004* aa42 √√ 13/05/2004 a43 08/06/2004 (56) 22 66 11 33 88 11 i 88 88 88 i 88 88iiii44 88iiii44iiii44iiii44iii3388iiii44 87 88a

No. of meetings (48) No. attended (48) √√√√ √√√√ 11/08/2003 √√√ 28/10/2003 02/02/2004 04/05/2004 44 44 43 No. of meetings No. attended √√√√ √√√√ √√√√ 18/08/2003 30/10/2003 30/01/2004 Limited. Limited andChairmanofChemicalServices Tiger CEOof Brands Limited.Previously AECI Non-executive director of AECI Limitedand (Independent director) B Comm. BSc (Hons)(Chemistry); LC van Vught and strategic planning. Division responsible for worldwide marketing Platinum and seniorgeneral manager inJCI’s that adirector ofRustenburg Platinum Mines to executive director ofGencorLimited.Prior 20/04/2004 executive director. Joined theboard in1998asanon- Senwes. director ofMetaSolutionsanddirector of Managing Africa andforeign countries. tative ofholdingcompany bothinSouth non-executive andrepresen- as executive, Has heldnumerous positionsatboard level (Independent director) (Henley) MBA FCIS,ACMA, JV Roberts To bere-elected 44 44 44 No. of meetings No. attended √√√√ √√√√ √√√√ 18/08/2003 (62)

20/10/2003 (61) 29/01/2004 05/05/2004 44 44 44 No. of meetings No. attended √√√ √√√ √√√ 29/07/2003 21/01/2004 20/04/2004 33 33 33 No. of meetings No. attended CE Markus (47) • benchmark remuneration practices BA; LLB against both local and international (Executive director ) best practice 27 Graduated from the University of Witwaters- • prepare innovative policies to attract and rand in 1981.Admitted Attorney, Notary and retain the services of highly skilled Conveyancer. Articled clerk and professional executives assistant for Bell Dewar and Hall attorneys. • ensure that the terms and conditions of Legal advisor and company secretary for service of all staff are equitable and Dorbyl Limited. Non-executive director of competitive Iscor Limited. Joined Implats in 1991 as Legal • ensure that a succession planning Advisor and appointed to the board in 1998. process is in place • monitor employment equity ratios and JM McMahon (57) targets Pr.Eng; BSc (Mech Eng) • administer the share incentive scheme (Independent director) Graduated from Glasgow University, Employees participate in a bonus scheme, Scotland as an Engineer in 1968. Held which is based on individual achievements, numerous engineering positions on various certain value-added criteria (such as volume mining operations and projects. Managing and cost) and safety improvements. This director and executive chairman of Implats isolates the effect of metal prices and from 1990 to 1998. Executive chairman exchange rates over which management of Gencor Limited and Non-executive has no control. All senior employees set Chairman of Implats from 1998 to 2002. objectives for the year and apportionment Non-executive director since 2002. of the bonus is based on the achievement of these objectives. Remuneration Committee Members Nomination Committee John Roberts – Chairman Members ACCOUNTABILITY

Peter Joubert Vivienne Mennell – Chairperson GOVERNANCE CORPORATE Michael McMahon Peter Joubert Thandi Orleyn Mike Pleming

The Remuneration Committee comprises The Committee comprises three inde- four independent directors,and is chaired by pendent directors. It assists the board in an independent director. During the year, ensuring that the structure, size, effec- Ms Orleyn was appointed as an additional tiveness and composition of the board and member of the committee. The Chief its committees: Executive Officer is invited to attend all • are reviewed regularly Remuneration Committee meetings,except • comprise the requisite mix of skills, expe- when his own remuneration is under rience, diversity and other qualities; and consideration. • are maintained at appropriate levels in order to The policy of the group is based on the – meet the requirements of sound premise that fair and competitive remune- corporate governance; and ration should motivate individual achieve- – function properly and effectively. ment to enhance company prosperity, through a balanced mixture of both The Nomination Committee is responsible guaranteed and performance-enhancing for arranging assessments of the board, its incentives to attract and retain highly skilled directors and its committees; proposing employees in the group. adjustments to the board and its com- mittees, as appropriate; planning for The main functions of the Remuneration the succession of directors; recommending Committee are to: appointments and re-elections of directors; • propose the remuneration (including establishing a formal induction process incentive schemes) of executive directors andensuring that a training and development and senior executive schemes programme is in place for board members.

IMPLATS ANNUAL REPORT 2004 28 ACCOUNTABILITY CORPORATE GOVERNANCE CORPORATE GOVERNANCE of theboard. totransform thecomposition disposal,and range ofskillsandexperience attheboard’s toincrease the for key board positions, approved) toensure thatsuccessors exist were recommended totheboard (and various additionalappointments year, During thispast increased from 14to16. directors ontheImplatsboard was themaximum number of At thelast AGM, Nomination Committees are inprogress. assessments oftheRemuneration and Self- identified are being addressed. various issues Asaresult, responsibilities. mandates anddischarging theboard’s committees were effective infulfillingtheir HSE Audit Committee toensure thatthe were conductedonthe Audit Committee and self-evaluation exercises During theyear, systems toensure thataccidents andinjuries Internal Audit regularly reviews reporting the environment iscritically appraised. safety and performance inallareas ofhealth, overall Implats’ At allmeetings, head office. oratImplats’ relevance, HSE importance/ coinciding withvisitstositesof operations, Meetings are heldalternately atthe The Committee meetsatleastonceaquarter. the committeeduring theyear. was appointed as anadditionalmemberof Dabengwa RSN Mr non-executive director. The Chairmanisan independent consultant. oneexecutive anda pendent directors, committeeconsistsoffour inde- The of management’s efforts intheHSEarena. guidance ontheeffectiveness orotherwise adviceand supplements andgives support, The HSE Audit Committee standards. safety andenvironmental performance and its mandateistomonitorandreview health, Itsrole intermsof been inplacesince1998. Environmental (HSE) Audit Committee has Safety and A board appointedHealth, (Executive) Dirk Theuninck Tony Scurr(Externalconsultant) McMahon Michael Peter Joubert Sifiso Dabengwa Mike Pleming–Chairman Members Audit Committee Safety andEnvironmental Health, IMPLATS ANNUAL REPORT 2004 uisTeCara fteAudit Commit- Chairmanofthe duties.The from any employee inthecourse ofits permit theseekingofinformation oradvice gation intoany activityofthecompany and Its termsofreference allow theinvesti- undertake itsduties. provided with sufficient resources to principle isthatthecommitteeshallbe The overriding internally andexternally. a widerange ofpowers to consultboth has incarryingoutitstasks, The committee, recommending totheboard theappoint- • monitoring andreviewing theeffective- • reviewing thecompany’s internal • monitoring theintegrity ofthefinancial • relevant board dutiesare discharged by: Itsrole istoprovide assurance that director. three independentandonenon-executive The Audit Committee comprises (CA(SA)). skills associatedwithhisqualification contributes thespecific executive director, anon- MrMokgatlha, additional member. Mokgatlha was appointedasan T Mr van Vught was appointedinhisstead. L Mr as Chairmanofthe Audit Committee and MrDM O’Connor resigned During theyear, John Roberts Thabo Mokgatlha Vivienne Mennell Lex van Vught –Chairman Members Audit Committee timeouslyreported andeffectively. sustained by employees/contractors are regulatory requirements consideration relevant professional and takinginto tivity andeffectiveness, objec- monitoring theirindependence, ment oftheexternal auditors and the remuneration andtermsofengage- approving ment oftheexternal auditors, internalauditfunctions ness ofImplats’ assets Implats’ agement systemsinorder tosafeguard financial control andfinancialrisk man- asappropriate pects ofImplats, performance andpros- of theposition, understandable assessment balanced and ments andoutputsinorder topresent a judge- reviewing allsignificantinputs, financial ofImplats and reports statements andotherrelevant external tee meets once a year on an individual basis • establishment of and communication to with the external and internal auditors, the all managers of a Risk Management Policy Chief Executive Officer and the Chief and Code of Practice applicable to all 29 Financial Officer, without any other execu- operations and activities of Implats. The tive member of the board in attendance. code of practice was used to develop the training material for risk champions. The Audit Committee oversees the Risk • appointment and training of risk cham- Management Committee. A “whistle pions in all areas and functions of Implats. blowing” toll-free helpline is in place to • development of a common risk man- facilitate the confidential reporting of agement system and information alleged incidents which are communicated repository. to the Chairman of the board. • development of an Implats Assets and Business Interruption Insurance Under- Risk management writers Guide that serves to integrate and Membership of the Risk Management align the activities of risk management Committee is set out on page 33. Implats’ and insurance. philosophy on risk management is founded • development of a group risk framework on the conviction that the most successful and profile following a strategic review of mining operations in the long run are those all risks faced by Implats. that are able to understand and effectively • the inherent strategic risks identified are manage the inherent uncertainties reviewed and monitored by the board on associated with mining. For Implats, risk an ongoing basis. management is about maintaining an appropriate balance between reaping Furthermore,the board reviews and monitors rewards and the concomitant risks. all management activities in the areas identified to ensure sustainability In 2002, the board directed management to and continuous improvement in the establish a programme aimed at integrating management of these risks and that ACCOUNTABILITY

the current risk management activities in appropriate and timely action is taken on the GOVERNANCE CORPORATE the various operations and core functions. inevitable changes in the external and internal business environment The programme was initiated in early 2003 with the appointment of a group risk Internal control systems manager and the establishment of a group The group maintains accounting and admin- Risk Management Committee. This istrative control systems designed to provide committee functions as an integral part of reasonable assurance that the accounting the board’s governance structures. records accurately reflect all transactions;are executed and recorded in accordance with The Risk Management Committee Charter sound business practices; that the assets are approved by the board defines the safeguarded; and that protection is provided committee’s terms of reference and against serious risk of error or loss, in a cost- responsibilities. effective manner.

The following critical steps towards the An internal audit department, which holds establishment of an integrated or enter- regular meetings with management and the prise-wide risk management system have Audit Committee and has direct access to the been completed: Chairman of the board, independently • approval of the Risk Management monitors these controls. Nothing has come Committee Charter by the board. to the attention of the directors to indicate • development of a common Implats risk that any material breakdown in the assessment methodology which is functioning of these controls has occurred defined by a framework, process and during the year under review. system that are based on contemporary best practice. This methodology will be Insurable risks used in all Implats’ operations and With the hardening in insurance markets functions. worldwide, particularly in the wake of the

IMPLATS ANNUAL REPORT 2004 30 ACCOUNTABILITY CORPORATE GOVERNANCE CORPORATE GOVERNANCE to R100million). million not considered material (from R51 thisis under thecurrent insurance policy, alsoremains anuninsured layerdams.There up monitoring procedures ofthetailings thecompany hasstepped mitigate thisloss, result uninsured inapartially loss.To failure, upon cover for tailingsdamswhichcould, do notallow thecompany fullinsurance conditionswithininsurancecertain policies Despite thecompany’s bestendeavours, pure risk management programmes. robust, insurance andadegree ofself-insurance and including “normal” variety ofmeans, steps toameliorate potentiallossesthrough a The company hastaken has adequatecover. monetary losses major insurable risks andassociatedpotential review A ofthegroup’s insurance coverage. pany hasnotbeenabletosecure full-value com- tragic events of11September2001,the ie u ihnti eid Anextension mined outwithin thisperiod. reserves areas withinSouth Africa willbe mineral resources and that mostofImplats’ ispresently envisaged years.It exceeding 30 mining right may begranted for aperiod not a In termsofthenew minerals legislation, the annual report. public domainandare detailed elsewhere in Incwala Resources arrangement are inthe atMarula andthe as theBEEparticipation Significantmilestonessuch during FY2005. obtained intermsoftheMinerals Act of1991 converting alltheoldorder miningrights Implatsisfully committedto process, year period tocompletetheconversion Act allow for afive- ments provided for inthe Althoughtheinterim arrange- operations. South African miningand prospecting of mineral resource andreserve assetsfor all regime andwillgovern thesecurity oftenure fromdeparture theprevious legislative thisrepresents asignificant Royalty Bill, Scorecard andthe for theMiningCharter the Mining Industry(MiningCharter), Economic Empowerment for Charter the Together withtheBroad-Based Socio- implications for theminingindustry. hasprofound 1May 2004, effect on into came (the Act),which Development Act The new Mineral andPetroleum Resources Legislation IMPLATS ANNUAL REPORT 2004 revealed that thecompany targets ofwhichwillbereviewed periodically. the terms oftheEmployment Equity Act, The (onpage report 32)isarequirement in way togo tomeetthesettargets. management levels butthere isstillsome atsupervisoryand particularly been made, Someprogress against targets has 32. page achievement are setoutinthetableon The planned target levels andthelevels of achieve aworkplace free ofdiscrimination. have been setover afive-year period to established andspecificnumerical targets Numerous steering committeeshave been cognisance ofthiscommitment. path programmes andbursary projects take career successionplanning, programmes, ourdevelopmental of designatedgroups.All tothosewho fallparticular intothecategory the potentialofouremployees appliesin Our commitmenttotheprocess ofunlocking promulgated legislation. modate bothanticipatedandrecently empower ourworkforce andtoaccom- todevelop and transformation process, the includes interventions tosupport The businessplanoftheorganisation Transformation mining rights. the eventual progression tonew order and duepriority willbeallocatedtothesefor ofthelong-termmineplans part important order prospecting right areas alsoform an resources presently containedwithinold Mineral will berequired for someareas. uieswt t tkhlesad inpar- business withits stakeholders and, governing it does themannerinwhich The group hasadopted acodeofvalues Code ofvalues and BestPractice Committees. key asImpala’s committeessuch HIV/AIDS ofallunions serve on addition,representatives In representatives across theorganisation. tion between management andemployee quarterly Leadership Summitfacilitates communica- A initiatives andcampaigns. through various andlong-term short-term employee isencouraged participation parent communication withemployees and The group iscommittedtoopenand trans- Employee participation ticular, covering business integrity and dividend previously and would consider development, and the safety of employees. doing so again if there was cash available in These are detailed on page 5 of this report. excess of the company‘s requirements and 31 The process whereby employees have it elected not to pursue any other means of committed themselves to these values has returning excess cash to shareholders. resulted in the development of the principles of that code into a “Value Statement” which The shareholder communication functions interprets those values in a practical and of the group secretary and the share registrar easily understandable form. All employees are supported by an investor relations pro- and directors are required to adhere to the gramme which operates in South Africa, ethical standards contained in this code. Europe and the United States. This pro- gramme is aimed at maintaining contact Ethics with institutional shareholders, fund Impala has a bona fide code of business managers and analysts in these countries, practices to which all employees and and the media, and to undertake formal suppliers are expected to adhere.The policy financial disclosure through the interim and outlines conflicts of interest, the prevention annual results announcements, the annual of dissemination of company information, report, roadshows, press releases, ad hoc the acceptance of donations and gifts, and investor meetings, participation in invest- protection of the intellectual property and ment conferences and the website. In parti- patent rights of the company. The policy cular, roadshows and teleconference calls outlines the disciplinary action (including also provide investors with the opportunity dismissal or prosecution) which will be to communicate with management and to taken in the event of any contravention. make recommendations to the board. Management is also open to meetings A formal, comprehensive, ethics policy requested by shareholders and contact embracing all operations in the group is details are available on the website. being prepared for formal adoption during ACCOUNTABILITY

the forthcoming year.Procedures will be put The results announcements, both interim GOVERNANCE CORPORATE in place to ensure compliance with recently and annual, take the form of live presenta- promulgated legislation by all operations. tions which are webcast simultaneously. Inter-national conference calls are also held. Shareholders All presentations, webcasts and conference Implats communicates regularly with call transcripts are available on the website. shareholders and other stakeholders In addition,copies of all presentations made regarding its financial and operational by executive management are posted on performance. Communication with the website. interested institutional and private investors pays due regard to the statutory Access to information and regulatory requirements on the Implats has complied with the requirements communication of price sensitive infor- of the Promotion of Access to Information Act mation by the company and its officers. of 2000.The corporate manual is available on the website and from the Group Secretary. Investors, fund managers, analysts, the media and the market are kept fully, The group observes a closed period from the timeously and honestly informed on all end of the relevant accounting period to the developments. It is company policy to pay announcement of interim or year-end dividends twice a year, at the end of the results, during which neither directors nor interim financial period (when approxi- employees can deal, either directly or mately one-third of the dividend is paid) and indirectly, in the shares of Implats or its at the end of the financial year (when usually listed subsidiaries. the remaining two-thirds are paid). While the payment of dividends is not guaranteed, Sponsor they have been paid consistently for the Deutsche Bank is the corporate sponsor, previous five years. Currently, the dividend in compliance with the JSE’s listing cover is 1.9. The company has paid a special requirements.

IMPLATS ANNUAL REPORT 2004 32 ACCOUNTABILITY CORPORATE GOVERNANCE *Negotiated targets asrequired intermsoftheEmployment Equity Act. ** refers tothoseemployees designatedintermsoftheEmployment Equity Act The ashaving term been “designated employee” * CORPORATE GOVERNANCE oa 7 3 9442,3 45,1 39.4 43.1 23,5 31,2 935 794 10.3 29.3 2376 1844 8 133 454 78 Total Skilled Middle management Senior management Employment equitytargets historically disadvantaged. .To approve theremuneration ofthe 4. Re-elect asdirectors ofthecompany 3. To electMessrs RSNDabengwa and 2. To approve theannual financialstate- 1. Item implications. will have thefollowing effects and The notice ofthe setoutonpageAGM 144 board committees. including thechairpersons ofthevarious shareholders toquestiontheboard The provides forAGM anopportunity annual general meeting Effects andimplicationsofthe IMPLATS ANNUAL REPORT 2004 coming year. non-executive directors for theforth- the meeting. who retire from office at McMahon, JM Messrs JVRoberts and CE Markus, Ms directors ofthecompany. andMsNDBOrleyn as Roux and Mokhele, K Drs FJP van Vught, LC ments for theyear ended30June 2004. mlye eintd designated*target* designated* employees urn urn urn FY2006** Current Current Current oa oa % % Total Total .To extend foryear the afurther 7. Special business To extend foryear the afurther 6. To grant thedirectors general authority 5. meeting. majority ofmembers present atthe a75% resolution requires approval by The special issued share capital. maximum of10%thecompany’s authority ofthedirectors a tobuy-back approve theresolution. of members present atthemeetingto resolution requires a75%majority vote The to 15%oftheissuedshare capital. islimited which canbeissued, amount, The annual listings requirements. Securities Exchange South Africa’s subject totheprovisions oftheJSE in thecapitalofcompany for cash authority ofthedirectors toissueshares of theCompanies Act. of theissuedcapitalandprovisions company subjecttoamaximum of10% issueshares inthecapitalof to Executives and senior management 33 Executive committee Risk Management Committee Keith Rumble Area of responsibility: Minimising risk to Chief Executive Officer assets and income earning capacity Mike Rossouw (Chairman) David Brown David Brown Chief Financial Officer Rob Dey Bob Gilmour Rob Dey Cathie Markus Group Engineering Manager Chris McDowell Humphrey Oliphant Derek Engelbrecht Dirk Theuninck Marketing Executive Henk van Veen Paul Visser Ramun Mahadevey Group Secretary and Senior Manager Hedging Committee Legal Services Area of responsibility: Hedging metal sales and conversion of foreign exchange Cathie Markus proceeds to Rands Executive Director Keith Rumble (Chairman) David Brown Humphrey Oliphant Derek Engelbrecht Human Resources Executive Johan van Deventer

Les Paton Implats Environmental

Executive Director Management Committee ACCOUNTABILITY Area of responsibility: Managing and Mike Rossouw rectifying the impact which mining Group Consulting Engineer – Assets and Risk and processing have on the environment EXECUTIVES AND SENIOR MANAGEMENT EXECUTIVES Dirk Theuninck (Chairman) Dirk Theuninck Paul Dunne Operations Executive – Refineries Pierre Lourens Cathie Markus Paul Visser Johan van Deventer Operations Executive – Rustenburg George Watson

Business Development Committee Area of responsibility: Identifying new business opportunities Bob Gilmour (Chairman) Rob Dey Paul Finney Les Jagger Deon Janssen Chris McDowell Les Paton Johan Theron

IMPLATS ANNUAL REPORT 2004 34 ACCOUNTABILITY BOARD AND MANAGEMENT rEg IM ietr Harmony Director, FIMM. Pr Eng. odMnn opn.Joined Gold MiningCompany. in 1995. Joined theboard (SA). CA (66) Daryl O’Connor ▼

iePeig(68) Mike Pleming the board in1998. ▼ President andChiefExecutive cec) PhD(Microbiology). Science), S Arclue,MSc(Food BSc (Agriculture), eerhFudto.Joined Research Foundation. ▼ director ofXstrata plc. Non-executive board in2004. Joined the MBA. PhD, MSc, BSc, (56) Fred Roux Officer oftheNational htoMkee(48) Khotso Mokhele Director IscorLimited, the board in2004. Board andmanagement IMPLATS ANNUAL REPORT 2004

▼ ▼

Joined theboard in2004. Managing Director ofMTN(SA). EDA, BSc (ElecEng)MBA, (46) Sifiso Dabengwa ▼ Motors (SA), Munich Reinsurance Munich of Motors (SA), iie.Joined theboard in2004. Limited. Brands and Tiger Director AECI BComm. BSc (Hons)(Chemistry), (61) Lex van Vught nutisadHdc.Joined the Industries andHudaco. adi.Director DeltaElectrical Sandvik. ee obr (71)(Chairman) Peter Joubert or n1995andappointedas board in ADW.Cara,General Chairman, DPWM. BA fia BDFMPublishers and Africa, himni 2002. in Chairman ietr ewsLmtd Joined Senwes Limited. Director,

FCIS ACMA. MBA (Henley) MBA FCIS ACMA. ▼

Joined theboard in2004. Routledge-Modise attorneys. Director of LLB. BProc, B Juris, (48) Thandi Orleyn ▼ onRbrs(62) John Roberts the board in1998. ▼ 35 ▼ Michael McMahon* (57) Pr.Eng. BSc (Mech Eng). Director of Gold Fields Limited. Joined the group in 1990 as Managing Director, appointed Chairman in 1993 and a non-executive director in 2002.

* British ▼

Thabo Mokgatlha (29) CA (SA), Financial Director of Royal Bafokeng Resources Management Services (Pty) Limited. Joined the board in 2003 as nominee of the Royal Bafokeng Nation. Vivienne Mennell (61) ▼ BA, MBA, FCMA,THD. Joined the board in 1990 as financial director. Re-joined the board in 1998 as a non-executive director. ACCOUNTABILITY BOARD AND BOARD MANAGEMENT ▼ David Brown (Executive Director and CFO) (42) CA (SA). Joined the group in 1999 in that capacity.

Keith Rumble ▼ (Chief Executive Officer) (50) BSc (Hons) MSc (Geology). Joined the group in 2001 in that capacity.

Cathie Markus ▼ (Executive Director) (47) ▼ BA LLB. Joined the group as legal Les Paton (Executive Director) (52) adviser in 1991 and appointed to BSc (Hons) (Geology), B Comm. the board in 1998. Joined the group as geologist in 1975 Non-executive director and appointed to the board in 2003. of Iscor Limited

IMPLATS ANNUAL REPORT 2004 Team work is a thread that runs through everything we do at Implats, and is underpinned by the need to develop capacity within the company. Paul Dunne, General Manager: Mineral Processes,Tania Ehrenreich, Operations Manager at the tailings scavenging plant, and Adele Coetzee, Operations Manager Merensky Plant, form part of a closely-knit team at Mineral Processes where there has been a massive increase in throughput over the past few years. Not only has the operation been able to perform at peak but it has also managed to reduce its impact on the environment at the same time. REVIEW OF THE YEAR

Volumes and metal Financial review prices had a positive 37 impact on earnings, Key indicators while the exchange rate had a negative impact • Appreciating Rand impacts profit • Gross margin of 36% • Profit from the sale of Barplats of R322 million • Total dividend for year of 2 100 cents per share

The 2004 financial year was a solid one for amounted to R5.35 billion,a 13.3% increase Implats, despite the challenges posed by the from R4.72 billion in the previous financial strength of the South African Rand. The gross year.The group unit cost per platinum ounce operating margin for the group was a satis- rose by 4.1% to R4 132. factory 36%.Group profit of R2.96billion was 13% lower than in FY2003. The exchange rate transaction loss for the period amounted to R216 million for the year Results for the year versus R329 million the previous year. Although sales remained steady in Rand The applicable exchange rate for the trans- terms at R11.81 billion,the Dollar amount was lation of debtors/advances on 30 June 2004 32% up from $1.30 billion to $1.72 billion. was R6.17/$ compared to R7.52/$ on 30June 10.16 2003, a fall of 18%. 9.06 Of the major earnings drivers, volumes and metal prices resulted in positive variances, Contributions to earnings 7.68 while the exchange rate had a significant Implats’income is derived from three distinct 6.88 6.40 negative variance effect on sales. sources – mine-to-market operations, IRS and equity income from investments. • Volumes: Platinum sales rose 9% in FY2004, while palladium and nickel sales • Mine-to-market operations: Revenue volumes were 7% and 14% higher is generated by operations owned and respectively, resulting in a positive managed by Implats such as Impala variance of R1 billion. Platinum, Marula Platinum, Zimplats and Mimosa. Margins for FY2004 were

FY00 FY01 FY02FY03 FY04 • Metal prices: The increase in the Dollar 41% for the Impala lease area, down price of platinum offset the lower from 52% for 2003. Zimplats only Average Rand/Dollar exchange palladium and rhodium prices, with the reflects a mine-to-matte margin (the rate achieved basket price (average Dollar revenue balance of the margin is included in IRS) per platinum ounce sold) at $1 116/oz which for FY2004 was 36%. Mimosa’s compared to $935/oz in FY2003. This mine-to-concentrate margin of 51% resulted in a positive variance of shows its position as the lowest cost R2.6 billion. primary platinum producer. Margins at FINANCIAL REVIEW Marula,which is still in a ramp-up phase, YEAR THE REVIEW OF • Exchange rate: The stronger Rand cannot be compared. resulted in reduced Rand prices received and a negative exchange rate variance of • IRS: Income is generated by the process- R3.6 billion was recorded. The average ing of concentrate purchased and toll Rand price per platinum ounce sold in treatment. Margins are substantially FY2004 was R7 678/oz compared to lower than in the mine-to-market R8 471/oz the previous year, a decrease model, reflecting the reduced risks of 9.4%. involved and lower capital intensity. Margins recorded during the 2004 Mine-to-market 65.6% Cost of sales financial year of around 19% were IRS 13.3% Total cost of sales rose by 16% to slightly higher than during the previous Strategic holdings 11.1% Barplats 10.0% R7.55 billion compared to R6.52 billion in year, due to the toll treatment of FY2003 as a result of growth of 18% in PGM material from Lonplats. Income contribution production. Total cash operating costs

IMPLATS ANNUAL REPORT 2004 FINANCIAL REVIEW

Without the impact of Operating margins 38 the Rand, headline (%) FY2004 FY2003 earnings would have Impala (ex-mine) 41.5 52.3 Zimplats 35.7 26.6 been on a par with Mimosa 51.3 37.0 FY2003 Impala Refining Services 18.6 17.2 Implats 36.1 44.8

• Equity income: Income is generated by 10% from 19% last year.Dividends received those companies in which Implats has from this investment for the period under equity accountable interests. This review were R285 million (R176 million in includes Lonplats, Aquarius Platinum FY2003). and Two Rivers, which has not yet come into production. In FY2004, equity Aquarius Platinum (South Africa) increased income amounted to R328 million. its contribution in the 2004 financial period with a R39 million profit to the group, as Impala Platinum’s mining operations con- compared to a contribution of R33 million tinued to be the major contributor to in FY2003. earnings,accounting for 57% of group profit in FY2004. Following a 38% increase in Earnings platinum production through IRS this year, Headline earnings per share for the year profit from IRS improved by 161% to declined by 23% to 3 966 cents. This com- R394 million.This represents 13% of group pares with 5 140 cents per share in FY2003. profit, compared to a contribution of 4% The 9.4% decrease in the Rand revenue per last year. platinum ounce sold during FY2004 resulted in headline earnings per share decreasing by Contributions to profit by both Zimbabwe 1 174 cents. Without this impact, earnings operations increased substantially. That per share would have been on par with from Mimosa increased from R11 million FY2003. Given the contribution to profit of in FY2003 to R112 million. With its R322 million in June 2004 from the sale of increased production levels, the Barplats, profit for the group as a whole contribution by Zimplats/Makwiro rose declined by 13%. substantially from R46 million to a profit of R156 million, accounting for almost The impact of a 10% change in the Rand 5.3% of group profit. revenue per platinum ounce sold (basket price) would result in a 30% change in Earnings from Implats’ investment in headline earnings. Lonplats continue to make a contribution to group income.Attributable income declined There was a slight increase in the number of by 55% to R290 million, and the weighted shares in issue to 66.58 million 7 035 6 877 contribution to group earnings decreased to shares. FINANCIAL REVIEW REVIEW OF THE YEAR THE REVIEW OF

5 140 Contribution to profit from the various operations (R million) FY2004 % FY2003 % 3 966 3 394 Impala Platinum 1 700 57.3 2 563 75.1 Impala Refining Services 394 13.3 151 4.4 Marula Platinum (23) (0.8) Barplats* 295 10.0 (35) (1.0) Lonplats 290 9.8 646 18.9 Mimosa 112 3.8 11 0.3 Zimplats (Makwiro) 156 5.3 46 1.3 FY00 FY01 FY02 FY03 FY04 Aquarius Platinum 39 1.3 33 1.0 Headline earnings per share Implats 2 963 100.0 3 415 100.0 (SA cents) * includes profit on disposal

IMPLATS ANNUAL REPORT 2004 Strong balance sheet Contribution to attributable production maintained to meet FY2004 FY2003 FY2004 FY2003 39 working capital (000 oz) Platinum Platinum PGMs PGMs Impala Platinum 1 090 1 040 1 976 1 924 requirements and future IRS* 871 633 1 749 1 238 capital projects Lonplats (27.1%) 269 206 505 399 Total ounces in which Implats group has an economic interest 2 230 1 879 4 230 3 561 Less: Lonplats (269) (206) (505) (399) Gross Implats production 1 961 1 673 3 725 3 162 Less: IRS metal returned to toll customers (501) (252) (1 012) (467) Retained for sale by Implats group 1 460 1 421 2 713 2 695

* Lonplats material treated included in IRS production

Note: In line with the attributable earnings stream, it should be noted that for FY2004, Implats had a total economic interest in about 2.2 Moz of platinum and 4.2 Moz PGMs compared to 1.9 Moz and 3.6 Moz respectively in FY2003.

6 800 Dividends was R636 million ($103million), down from The total dividend proposed for the year is R2.1 billion ($282 million) at the end of 2 100 cents per share,comprising an interim FY2003. dividend per share of 500 cents, which was paid in March 2004, and a final dividend per Implats continues to maintain a low gearing

3 700 share of 1 600 cents.This is 21% lower than ratio and has substantial debt capacity. the total dividend declared and proposed in Consequently,the group’s weighted average

2 650 the last financial year of 2 650 cents a share. cost of capital (WACC) is not optimal. The

2 100 group has short-term borrowings of 1 760 Dividend cover remains at 1.9 times,which is R569 million. The use of these borrowings in line with the board’s stated dividend policy. was driven by the attractive pricing available for shorter-term debt.The group will assume Exchange rate longer-dated debt during the first half of the next financial year. FY00 FY01 FY02 FY03 FY04 The average Rand/Dollar exchange rate achieved for the 12 months to June 2004 Dividend per share (cps) was R6.88/$,24% stronger than the average With the receipt of the proceeds from the Dividend per share Special dividend rate of R9.06/$ for the preceding 12 months. sale of Barplats, the group’s net debt This was to Implats’disadvantage given that position as previously forecast did not almost all of the group’s earnings are eventuate. 3 107 3 150 3 038 generated in Dollars. Implats is generally unhedged with regard to currencies and Investing activities FINANCIAL REVIEW metals. Group capital expenditure amounted to YEAR THE REVIEW OF 2 325 R1 822 million ($265 million) in FY2004. Balance sheet, structure and Capital expenditure at the Impala Platinum cash flow lease area was R1 197 million ($174 million) A strong balance sheet is maintained in compared to R1 079 million ($120 million)

1 204* order to meet working capital requirements the previous year. This was largely and to provide internal funding for the bulk accounted for by expenditure on the decline of the group’s future capital projects. The projects. An amount of R505 million group generated cash from operating ($74 million) was spent on Marula Platinum activities of R1.8 billion ($262 million) and R116 million ($17 million) on during the financial year. After funding the Zimbabwean operations. FY00 FY01 FY02 FY03 FY04 group’s capital expenditure programmes, Gross cash position at year-end dividends and investments, the net closing The group invested R632 million in acquir- (Rm) * includes proceeds from sale of Barplats cash position at the end of the financial year ing its additional stake in Zimplats.

IMPLATS ANNUAL REPORT 2004 When we invested in down-stream beneficiation, it was not only about the metal, but also about creating jobs and developing local skills and expertise. Ms Phumzile Mlambo-Ncguka, the Minister of Minerals and Energy, officiated at the official opening of the Silplat project (in which Implats is a significant partner, along with BAE- SAAB, Silmar SpA and Micofin) in Cape Town in April 2004. By supporting this project through both an equity investment and an innovative platinum loan facility, Implats has played a role in this export-focussed facility to attract hard currencies into the country. Markets characterized Market review by extreme volatility 41 The markets for PGMs have once again been the gap narrowed as another year of growing characterized by extreme volatility,which has demand by the automotive industry was been mirrored across most commodities and outweighed by a decline in jewellery demand the major currencies in FY2004. coupled with increasing supply.

A combination of a strong Chinese appetite Jewellery demand for commodities and a weak Dollar saw the The rising and volatile platinum price finally platinum price peak at $937/oz in April took its toll on jewellery consumption with 2004, from a low of $655/oz in July 2003. demand falling by 12% to 2.5 Moz. These highs were unsustainable as margin pressure from Chinese jewellery fabricators In China,the major jewellery market,demand forced a retreat from the metal, resulting in fell by almost 17% to 1.25 Moz.The decline a drop in demand of close on 20%. Prices resulted from manufacturers withdrawing 900 subsequently retraced to the high $700/oz from the market as margins came under range, allowing fabricators to replenish pressure. This is because platinum jewellery

800 inventory pipelines at more realistic levels. in China is sold at the metal price,unlike other metal jewellery which is sold on a piece basis. Growth in automotive demand was This situation was further exacerbated by 700 insufficient to prevent overall demand from reluctance on the part of retailers to increase declining, but still left the market in deficit. their prices in line with that of the free market 600 and the outbreak of SARS during the first half Palladium demand fell once again as thrifting of the year, which curtailed sales. However, 500 programmes from automotive users,resulting platinum still remains the metal of choice in from the metal’s meteoric rise in the late 90s, the fashion jewellery category at the 400 reached their peak. The platinum/palladium consumer level. In addition to continuing to price difference should see more palladium extend into the secondary and tertiary cities,

300 being used at the expense of platinum. The platinum has begun to make inroads into FY2000 FY2001 FY2002 FY2003 FY2004 palladium price was driven from a low for the the bridal sector, which has proved to be the Free market platinum price year of $160/oz to its high of $333/oz, on cornerstone of other major markets. The ($/oz) (monthly average) the back of speculative activity and an commencement of platinum trading on the announcement by Umicore that it could Shanghai Gold Exchange in August helped substitute palladium for up to 25% of the the manufacturing industry by eliminating platinum used in its own diesel catalysts. the 17% VAT and reducing the consumption 3000 tax on platinum jewellery from 10% to 5%, Sustained Dollar weakness and Rand the onus for payment of which was switched 2500 strength are of some concern as this could to the retailer. impact on the future availability of 2000 platinum, and this could drive prices higher Low margins and inventory sales coupled

once again. This in turn should stimulate with a sluggish economy resulted in Japanese MARKET REVIEW

1500 further substitution into palladium in the demand dropping by 15% to 675 000 oz. YEAR THE REVIEW OF automotive industry. Total sales on a piece and value basis declined by 11% and 1% respectively compared with 1000 Speculative rather than fundamental interest the previous year. This decline was almost pushed rhodium prices up some 80% to entirely due to a 20% decrease in sales in the 500 $900/oz. While nickel had an even more lower price brackets of up to ¥50 000. Sales dramatic year with its price more than in the higher price segments in most cases 0 doubling to $17,770/t on the back of world- recovered.The strong in-roads made by white 2000 2001 2002 2003 2004* wide growth in stainless steel production. gold at the expense of platinum since the Jewellery demand – platinum start of the decade ceased in 2003.Platinum’s (000oz) Review of calendar 2003 market share on a piece basis was unchanged China North America Platinum at 26%,with white gold’s 5% increase to 37% Europe India and other Japan The platinum market registered its fifth coming at the expense of its sister metal, * estimate consecutive year of deficit in 2003.However, yellow gold.

IMPLATS ANNUAL REPORT 2004 MARKET REVIEW

The automotive industry Platinum supply and demand 42 will be the major driver Calendar years (000 oz) 2004* 2003 2002 2001 2000 of platinum demand Demand Automobile 2 800 2 735 2 615 2 205 1 950 in the medium to Jewellery 2 170 2 500 2 845 2 590 2 830 long term Industrial 1 660 1 590 1 565 1 560 1 490 Investment 10 15 80 90 (60) Demand 6 640 6 840 7 105 6 445 6 210 Supply South Africa 4 885 4 650 4 455 4 120 3 780 Russia 800 1 000 950 1 100 1 150 Other 430 400 635 495 400 Recycling 650 615 590 555 535 Supply 6 765 6 665 6 630 6 270 5 865 Surplus/(Deficit) 125 (175) (475) (175) (345) 1 100 * Estimate

1 000

900 In the US, sales of platinum jewellery were Diesel car sales continue to be the main driver 800 virtually unchanged at around 300 000 oz. of platinum demand in Europe.In 2003,diesel

700 Sales in the bridal sector were up year-on- sales grew by almost 7% to 6.2 million units year despite the introduction of new lines in and now account for 43.6% of total new car 600 white metal such as titanium wedding registrations. Compared to gasoline engines, 500 bands for men. As was the case last year, it diesels operate with more air, which results in

400 was fashion jewellery and in particular the cooler combustion and lower exhaust lower price brackets, that bore the brunt of temperatures. This environment requires a 300 the rising and fluctuating metal price as platinum catalyst,often with higher loadings, 200 manufacturers moved into white gold. On to enable the required oxidation performance.

100 the other hand, sales at the top end of this FY2000 FY2001 FY2002 FY2003 FY2004 segment remained resilient. Demand in the rest of the world was driven Free market palladium price by a combination of rising car sales, ($/oz) (monthly average) Automotive industry particularly in Asia, and the spread and Platinum demand for use in autocatalysts adoption of tighter standards. rose by 5% in 2003 to 2.74 Moz. Strong growth in European diesel car sales, Palladium 3000 tightening emission legislation and an The fundamentals for palladium have been increase in light duty vehicle sales in the rest anaemic, with falling demand and rising 2500 of the world drove the increase in demand. primary supply and stockpiles. The biggest impact on the market was the dramatic 2000 Low interest rates and cash-back incentives increase in Russian deliveries,which resulted

MARKET REVIEW on new vehicle purchases continued to in a surplus of approximately 800 000 oz. REVIEW OF THE YEAR THE REVIEW OF 1500 underpin US light vehicle sales which totaled 16.7 million units, only 1% lower The cycle of substitution of palladium-based than the previous year. Light trucks once systems with platinum has probably ended, 1000 again took market share from cars and now asthe huge price gap between the two metals account for just over 53% of the total light has rendered the switch uneconomic. Usage 500 vehicle market. Because of their larger for 2003, at just over 4.3 Moz was at a five- engine size, light trucks generally require year low. 0 larger catalysts with higher loadings to meet 2000 2001 2002 2003 2004* the emission standards than do their pas- Consumption of palladium by the electonics Automotive demand – platinum senger car counterparts.The pre-empting by industry fell by 13% to 850 000 oz, despite (000oz) some auto manufacturers of the Tier 2 and an almost 20% increase in the growth of Europe Asia** LEV2 standards (both of which took effect multi-layer ceramic capacitors.This was due North America Other * estimate from the start of 2004) in order to obtain to a combination of miniaturization,thrifting ** includes China since 2003 emission credits, also boosted demand. and displacement by base metals.

IMPLATS ANNUAL REPORT 2004 2 500 Palladium supply and demand Calendar years (000 oz) 2004* 2003 2002 2001 2000 43

2 000 Demand Automobile 4 690 4 325 4 530 5 435 5 275 Dental 870 835 785 720 820 1 500 Electronics 865 850 980 1 275 2 160 Other 605 585 605 550 570 Demand 7 030 6 595 6 900 7 980 8 825 1 000 Supply South Africa 2 425 2 250 2 175 1 985 1 830 500 Russia 2 700 3 400 1 900 4 500 5 200 Other 1 860 1 300 2 680 2 140 935 Recycling 520 450 390 340 280 0 FY2000 FY2001 FY2002 FY2003 FY2004 Supply 7 505 7 400 7 145 8 965 8 245 Surplus/(Deficit) 475 805 245 985 (580) Free market rhodium price * Estimate ($/oz) (monthly average)

16 000 Rhodium Market prospects Rhodium demand was essentially Currently, all indications are that the

14 000 unchanged during 2003 due to the shift automotive industry will be the major driver from petrol to diesel vehicles. An increase of platinum demand in the medium to longer in Russian supplies during the year led term. A significant portion of this future 12 000 the market to a surplus of some demand will come from both light-duty and 60 000 oz, resulting in the low prices heavy-duty diesel emission control tech- 10 000 achieved. nologies that are dominated by platinum formulations. 8 000 Nickel Nickel had a spectacular year in 2003 Supported by jewellery demand, the market

6 000 with the price starting from just above is forecast to remain in equilibrium which in $8 000/t and rising to a high of over turn will be supportive of a firm pricing regime. $17 500/t in January 2004. 4 000 FY2000 FY2001 FY2002 FY2003 FY2004 A combination of rekindled automotive This growth was on the back of a deficit in demand together with new applications in a Free market nickel price ($/t) (monthly average) the physical market due to huge global more stable price environment should boost demand led by China, and tight supply as a palladium demand in the longer term. In the 9000 result of the Inco strike.Prices cooled down case of rhodium, stricter emmission control 8000 subsequently on attempts by the Chinese legislation will continue to drive demand in authorities to slow their economy. the future. 7000

6000 Rhodium supply and demand MARKET REVIEW REVIEW OF THE YEAR THE REVIEW OF 5000 Calendar years (000 oz) 2004* 2003 2002 2001 2000 4000 Demand

3000 Automobile 628 630 632 614 574 Other 93 90 92 101 98 2000 Demand 721 720 724 715 672

1000 Supply South Africa 557 523 505 455 414 0 Russia 80 120 90 125 290 2000 2001 2002 2003 2004* Other 37 26 28 22 19 Automotive demand – metal Recycling 127 115 107 98 90 (000oz) Supply 801 784 730 700 813 Platinum Palladium Rhodium Surplus/(Deficit) 80 64 6 (15) 141 * estimate * Estimate

IMPLATS ANNUAL REPORT 2004 Mining companies must go where the orebodies are, and one of the greatest unexploited platinum orebodies in the world is the Great Dyke in Zimbabwe. Its investments in Mimosa and Zimplats give Implats access to a significant resource and, by a considered, conservative and phased approach to a build-up in production, is developing one of the great platinum producing regions of the world. Herb Mashanyare is the Technical Director at Mimosa. man hours frequency rate(LTIFR)permillion Impala – 12.64 FY00 Implats produced a 8.54 record 1.961Moz Y1F0 FY03 FY02 FY01

Lost timeinjury platinum during 8.58 6.07 FY2004 5.30 FY04 and tollrefining. other managed operations from Implats’ being utilisedby IRSto process material with much ofthisadditionalspare capacity the capacitytoprocess 2Mozofplatinum, Mineral Processes and Refineries willhave both With recent expansion programmes, plan istomaintainproduction atthislevel. element ofImpala’s 30-year life-of-mine Anessential MozPGMs)annually. (1.9 to2.0 produces around 1.0to 1.1 Mozplatinum The ImpalaPlatinum miningoperation South Africa. Gauteng, of Springs, inthetown and precious metalsrefineries, whichincludesboththebase the Refineries, and also locatedontheImpalaleasearea, group’s smeltingandconcentrating plants, the Platinum includesMineral Processes, Impala addition totheminingoperation, In Africa. South Province, WestNorth ofthetown north ofRustenburg, Complex, on thewestern limboftheBushveld ontheImpalaleasearea, Platinum,operates Impala primary miningoperation, Implats’ in October2004. development canbefound inthegroup’s Corporate Responsibility Report 2004tobepublished A detaileddiscussionontheseissuesaswell tosustainable asothermatters pertaining inDecember2003. subsidiary, wholly-owned operating Barplats’ the cessationofminingoperations atCrocodile River, soldinMay 2004for R389million,following whichImplatshadan83.2%stake,was Barplats,in and produced 1.961Mozattributable platinum ounces(3.725MozPGMs)during FY2004. employed approximately 31600people offtake andtollrefining agreements, houses Implats’ withImpalaRefining Services(IRS)which Great operations,together Dyke inZimbabwe.These onthe located ontheBushveld Complex andZimplatsMimosaPlatinum, inSouth Africa, ImpalaPlatinum andMarula Platinum, Implats hasfour mining(mine-to-market) operations, Introduction IMPLATS ANNUAL REPORT 2004 Impala Platinum REVIEW OFOPERATIONS AND INTERESTS Productivity perplatinum ounceup8% • Concentrator recoveries rise to83.2% • 5%increase inplatinum production to1.090Moz • 4%increase intonnesmilledto15.6Mt • Increase incostperplatinum ouncelimitedto5.0% • LTIFR improved by 13% • Key features oftheyear increase inwages of9.5%. inspiteofan produced rose by only 5%, The costper platinum ounce contained. increases incostswere well- the sametime, Moz.At refined platinum production of1.09 production ofboth15.6Mtmilledand record Impalareported During FY2004, uigtecus fnx er all during thecourse ofnext year, ground sim anunderground fall of of thiscampaign, part ground incidents decreasing by 6%.As deliver some improvement withfall of impact offalls ofground continued to A campaigntoreduce thenumber and 0.10 permillionmanhours. while theFIFRremained constantat hours, 13% year-on-year to5.30permillionman LTIFR decreased by employees continued. regarding thesafety andhealthof Intensifiedefforts caused by falls ofground. occurred during theyear ofwhichsixwere Safety: healthandenvironment Safety, ertal,eightfatal accidents Regrettably, ulation centre was setupand

REVIEW OF THE YEAR 45 IMPALA PLATINUM 46 REVIEW OF THE YEAR IMPALA PLATINUM IMPALA PLATINUM rate (FIFR)permillionmanhours Impala – Anomalies andmajorfaulting New plannedshafts Decline Projects Current shafts 0.088 FY00 0.161 Y1F0 FY03 FY02 FY01

Fatal injuryfrequency 0.146 20 6 Location mapoftheImpalaleasearea # # 0.099 7A 8 # # 12 12N # 0.099 FY04 7 # # 12S 19 # # 4 14 # # Dec 14 21 # # 11 Dec 2A 19 # 14B Dec # # including annual audiometric testingofall A hearing conservation programme, lenges atImpala. the primary occupationalhealthchal- hearing lossandtuberculosis (TB)remain employees andcontractors.Noise-induced examinations are undertakenfor all Health: undertaken during theyear. over 2000internalauditshaving been with programme continues torun well, The Tsiboga year withanLTIFR of0.45. The Refineries hadanothersatisfactory audits. trained toconductsafety Allshaftsupervisors are now continued. the well-known DuPontsafety principles, in which isbasedon Tswana), the lookout” Tsiboga intervention (Tsiboga means “on The employees willbeexposed tothis. IMPLATS ANNUAL REPORT 2004 5 # # 11C Dec 2 # # 10 N # 9 Pre-employment andexit medical # 1 17A # 18 # # 17 # 16 17 # # Dec 16 # Dec and toaccesstreatment. undertake voluntary counsellingandtesting would encourage more employees to which stigma associatedwiththedisease, major challenge remains overcoming the The company cannotbeunderestimated. impact ofHIVontheindividualand the adult populationsaround the country, lence level islower for than that reported AlthoughImpala’s preva- during theyear. totalled R6.2millioninmedicaltreatment The costofcare ofHIV-positive employees known AIDS-related illnessesduring theyear. employees) diedinserviceas a result of 86 Regrettably 75employees (FY2003: be HIV-positive. 3.5% ofemployees are currently known to At theRefineries, in thecountryasawhole. is lower thanlevels for similaradultgroups which area haslevelled off ataround 16%, rate amongemployees ontheImpalalease sultants indicatesthattheHIV-prevalence modelling undertakenby external con- collected by ImpalaMedicalServicesand testdata communities during theyear.HIV dependentsandsurrounding employees, HIV/AIDS educationandmanagement for HIV/AIDS: programme. treatment tractor employees withinthe TB employees andtheinclusionofallcon- prophylactic TB treatment for HIV-positive have by beensupported theintroduction of These observed treatment (DOT) regimes. anddirectly contacttracing, education, including placetocombatthedisease, in World-class programmes are positive. 95%of TB patientsarecontracting HIV- TB; individuals who are atahigherrisk of increase isattributed toHIV-positive The during theyear (289inFY2003). employees developed pulmonary TB 297 workforce, OfthetotalImpala industry. governing theSouth African mining pational diseaseintermsoftheregulations Pulmonary TB isclassifiedasanoccu- custom-made hearing protection devices. during theyear onfittingallemployees with millionwas spent SomeR6 are exposed to. determine thenoiselevels thatemployees assessment for noisewas conductedto Abaselinerisk hascontinued. employees, There was continued focus on Volumes were supported Environment: Highlights of the year were Among the best performing shafts were 4, the maintenance of the ISO 14001 7, 7A and 12 shafts, with the latter by mining ‘white areas’ – certification and the significant reduction increasing production due to mech- 47 unmined remnants in old in SO2 stack emissions as a result of the anisation. In particular, opencast produc- mining areas excellent performance of the Sulfacid tion rose by 32% to 711 000 t. Difficulties plant. Prior to the commissioning of this were experienced at 5 and 11 shafts where plant in FY2003, SO2 emissions averaged tonnes mined did not achieve business plan 37 t/day.At commissioning this decreased target. The complex geological structures to 29 t/day and for FY2004, SO2 emissions at 11 shaft continued to be problematic averaged less than 20 t/day, in line with and the reduced panel lengths, a scheduled process permit conditions. consequence of tighter safety standards implemented in the ground control The Environmental Impact Assessment for districts, also played a part in constraining the Refineries expansion projects was production. At 5 shaft, which is nearing the successfully concluded during the year,and end of its life, production was affected all environmental pre-requisites for the by decreasing ore reserves and a lack of expansion have now been met. The available face. Refineries maintained their NOSCAR status for the sixth year,and their NOSA 5- The liquidation of the mining contractor star safety grading for the twentieth year, responsible for semi-mechanized opera- an excellent achievement. In addition, the tions at 14 shaft had a temporarily adverse ISO 9001 and ISO 14001 certifications for effect on production. New employees are quality and environmental systems were being recruited and trained to manage and successfully maintained. operate this section and production has since improved markedly. Mining Impala Platinum’s mining operations cover Volumes were also supported by the an area of approximately 250 km2 and increased mining of so-called white areas include 13 shaft systems and five declines, (unmined remnants in old mining areas). of which two are currently at full production Much work has been done to identify and and three are in development. estimate the resources contained in the white areas and to convert these resources During FY2004, the record level of tonnes into proven reserves. This has enabled milled was largely a result of higher levels of the identification of around 12 Mt output from both mechanized and opencast (800 000 platinum ounces) of additional mining on the Merensky reef. reserves.

Planned 30-year production profile by shaft

18 Opencast Merensky Opencast UG2 17 Decl 16 16 Decl 18 Shaft PLATINUM IMPALA REVIEW OF THE YEAR THE REVIEW OF 14 21 Shaft

17 Shaft 12 19 Shaft 16 Shaft

10 E&F 11C Shaft Block 8

Millions of tonnes mined 14B Shaft 6 20 Shaft

4 Current shafts

2

0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34

IMPLATS ANNUAL REPORT 2004 IMPALA PLATINUM

Five-year key operating statistics 48 FY2004 FY2003 FY2002 FY2001 FY2000 Tonnes milled (000 t) 15 639 15 042 14 850 14 840 14 662 UG2 milled (%) 46.1 45.7 53.6 49.6 50.6 Headgrade (g/t 5PGE+Au) 4.91 5.06 5.05 4.90 4.97 Platinum production (000 oz) 1 090 1 040 1 025 1 002 1 020 PGM refined production (000 oz) 1 976 1 924 1 895 1 877 1 913 Total cost/tonne milled (R/t) 280 265 239 213 189 ($/t) 40.8 29.4 23.6 28.0 29.8 Cost/platinum ounce refined (R/oz) 4 023 3 832 3 459 3 156 2 711 ($/oz) 586 425 341 415 429 Net of revenue received for (R/oz) 2 182 899 (708) (1 879) (510) other metals ($/oz) 318 100 (70) (247) (81) Cost/PGM ounce refined (R/oz) 2 220 2 072 1 872 1 685 1 445 ($/oz) 323 230 185 221 229 Capital expenditure (Rm) 1 197 1 079 1 009 978 732 ($m) 174 120 100 129 116 Total Impala labour complement (000) 27.5 28.4 27.9 28.0 28.3 Productivity (m2/panel man) 39.2 40.7 40.2 40.7 39.6 (Ounces/employee) 40 37 37 36 36

There was an expected decline in the safety programme.Overall platinum ounces headgrade from 5.06 g/t to 4.91 g/t, largely per employee rose by 8% as a result of the because of changes in the ore mix with decline in the number of support employees greater volumes originating from of around 900, higher mined volumes from mechanized and opencast mining.Platinum less labour intensive areas (opencast content relative to PGM content increased and mechanized mining), and higher with production rising to 1.090 Moz metallurgical recoveries. platinum and that of PGMs to 1.976 Moz. Planned mining projects The cash operating cost per ounce of A major R5.3 billion capital expenditure refined platinum produced rose by 5.0% to programme on mining projects is currently R4 023/oz.The total cash cost per tonne rose underway at Impala, of which R3.5 billion by only 5.7%. On-mine costs were up 6.4% had been spent by the end of the 2004 from R188/t mined to R200/t mined. financial year, mostly on the development Increases in the prices of steel,power and fuel of the decline projects. This programme were largely responsible for this rise in costs. aims to maintain production from the lease area at between 1 Moz and 1.1 Moz of Productivity measured as centares per panel platinum annually and involves extending 2

IMPALA PLATINUM IMPALA man decreased from 40.7 m par panel man the lives of existing shaft systems and REVIEW OF THE YEAR THE REVIEW OF to 39.2m2 per panel man. This was a result creating new access to deeper reserves.The of the reduced panel lengths which in turn second generation shafts, which extend to was due to the implementation of tighter about 800 m below surface, are nearing the safety standards related to the fall of ground end of their working lives.

Production (000 t) FY2004 FY2003 % change Conventional mining Merensky 7 087 7 631 (7.1) UG2 7 217 6 873 5.0 Mechanized mining (Merensky) 624 36 1 633.3 Opencast mining (Merensky) 711 538 32.3 Total mining 15 639 15 042 4.0

IMPLATS ANNUAL REPORT 2004 The performance of the The development of a series of decline shaft either party to re-open negotiations on systems below the current third generation wages only should the resultant increases be smelter exceeded shafts, is progressing on schedule. Two out less than 7.5% or more than 9%. CPIX for 49 expectations of the five declines are functioning at full FY2004 was 5%, necessitating the re- production and a further two will reach full opening of negotiations which are currently production in the next financial year. underway.

As part of the 30-year production plan, 16 Mineral Processes and 20 shafts were reviewed to optimize their Mineral Processes houses the group’s mining plans.These plans will be presented to concentrating and smelting operations, and the Implats board for approval in September processes ore and concentrate from both 2004. This follows in-depth and extensive Impala’s own mining operations and on investigation and feasibility studies which behalf of IRS. Mineral Processes performed were undertaken during FY2004. exceptionally well during the year with tonnes milled, recovery rates and smelter Development of new technology throughputs at record levels. Mechanisation, particularly in hazardous areas, should enhance safety as the more Tonnes milled for the year amounted to dangerous, arduous work will be done with 15.6 Mt, 4% up on FY2003. Overall con- the aid of machines. This will reduce centrator recoveries improved to give a employee exposure in high-risk areas and record overall recovery rate, given the ore enable the introduction of more effective mix, of 83.2% for the year. This was largely support in the stope face. the outcome of various process optimiza- tion initiatives undertaken at the UG2 plant The in-stope drill-jig allows for more accurate and additional initiatives are in place to drilling and reduced drilling time, improved increase UG2 recoveries further in the face advance per blast, as well as better coming financial year. initiation efficiencies and reduced blast damage to surrounding rock. Impala has A full-scale high-energy tails scavenging engaged with representatives of the National plant at the tailings dam was commissioned Union of Mineworkers (NUM),to facilitate its in December 2003 and has proved capable introduction into the workplace. Progress on of yielding an extra 10 000 oz of platinum the hard-rock cutting technology project has annually. The plant treats current arising been satisfactory and the dust problems that flotation tailings and will contribute 1% to are being experienced are being addressed. the overall recovery rate in FY2005. Underground trials of the extra-low profile trackless equipment, which can operate at a The performance of the smelter exceeded mining height of less than 1.3 m, continued. expectations, especially once the new No 6 dryer became operational. This, combined Employee relations with record mining production, enabled A significant achievement of the period was Mineral Processes to process record gross

the signing of a two-year wage agreement output. PLATINUM IMPALA with all three recognized trade unions. YEAR THE REVIEW OF Although some difficulties were experienced Refineries regarding the implementation of aspects of The Refineries excelled in all areas of the agreement The rockdrill operators who operation. The all-time high gross refined embarked on an unprotected strike in June platinum production reflected an increase were re-engaged upon signing of a strike of 17% on the previous financial year, and agreement with NUM. The grievances that resulted in a decrease in gross costs triggered the strike are being addressed. per platinum ounce of 1% and a 2% decrease in gross cost per PGM ounce. The The company and NUM are currently in increased throughput was achieved in spite discussions to re-negotiate wages under the of certain process bottlenecks, which are two-year agreement reached last year. That being addressed through expansion capital. agreement provides for an increase of 1.5% Metal recoveries and pipeline inventories above CPIX in the second year but allowed were unchanged.

IMPLATS ANNUAL REPORT 2004 50 REVIEW OF THE YEAR IMPALA PLATINUM IMPALA PLATINUM Capital expenditure was split Impala – split Impala – Mineral Processes and eieis29% 11% Refineries Mineral Processes Mining 60% eieis20% 12% Refineries Mineral Processes Mining 68% R1 197million–68% FY2005 FY2004 nmnn,12%at on mining, 20% atRefineries Capital expenditure Capital expenditure house gas CO elimination oftheventing ofthegreen- immediately andthere hasbeenavirtual tion ofnickel andcobalt)declined gen consumption (usedfor themetalliza- strong positionfor future expansion.Hydro- huge successandplacestheRefineries ina hydrogen-rich producer gas) hasbeena gen (as opposedtotheon-sitereforming of conversionMarch 2004.The topipedhydro- received from SASOL1plantattheendof The first high-purity hydrogen gas was gaseous andliquideffluent streams. focusses oncontrol andtheattenuation of This work early civilwork hasbegun. the secondphaseofexpansion andthe management contract hasbeensignedfor procurement andconstruction neering, anengi- At thePrecious MetalsRefinery, power duetocabletheftandpower dips. spared thealltoo-frequent interruptions in and hasresulted intheRefineries being protection) hasbeenoperating since April 132kVsub-station(withinterruption new The sintering furnacehasprogressed well. and theconstruction ofanadditionalnickel second stage isbeingcommissioned leach theexpanded operating satisfactorily, thenew millis At theBaseMetalsRefinery, xhnemtos Significantprogress exchange methods. efficient andcost-effective alternative ion more andexploring new, exchange resins, approach inbothoptimisingexisting ion- This has beenatwo-fold this technology. focussed theadvantages onfurthering of research anddevelopment programme has the intherefining ofPGMs, technology As asignificantuserofion-exchange Research anddevelopment reforming process. IMPLATS ANNUAL REPORT 2004 Impala leasearea –cashoperating costs e ltnmone(R) (R) Per platinum ounce (R) Per PGMounce Per tonnemilled 2 , a by-product a ofthe , ($) ($) ($) legislation. to 2Mozcomplieswithenvironmental thatitsexpansion Refinery willbetoensure thatonthePrecious Metals that plant,while Refinery willbeontheholisticexpansion of Capital expenditure on the BaseMetals linewithinflation. in Plans are inplacetolimitcostincreases Moz for FY2005. increase toaround 1.1 will Refined platinum production by Impala inparticular. recoveries andproductivity, operationally onimproving headgrade, Mtwithattentionbeingfocussed 16 steady intheforthcoming year ataround Tonnes milledare expected toremain Outlook stream inFY2009andFY2011respectively. on they are likely tocome September 2004, in for theseshaftsare approved by theboard theplans evaluated andoptimized.Provided were postponedastheseprojects were re- relating totheplanned16and20shafts mining was below budget asdecisions Spendon million(20%)onRefineries. R237 and Mineral Processes andservices, R146million(12%) on was onmining, 197millionofwhichR814(68%) R1 Total capitalexpenditure for FY2004was Capital expenditure appreciable savings beingrealised. significant cost)hasprogressed with previously senttoexternal tollrefiners at secondary materials internally (thatwere abilitytorecycle improving theRefineries’ programme aimedatfurther In addition,the years. advantageous systemswithinthenext two manifest itselfincommercially will beenmadeinthisregard which has FY2004 023 4 2 220 586 323 280 41 Y03%change FY2003 3 (5.0) 3 832 7 (7.1) 2 072 2 (37.9) (40.4) 425 230 6 (5.7) 265 9(41.4) 29 Impala Platinum key statistics FY2004 FY2003 % change 51 Mining sales (Rm) 7 679.2 8 877.5 (13.5) Platinum 5 667.6 5 826.2 (2.7) Palladium 711.5 1 220.9 (41.7) Rhodium 422.0 936.2 (54.9) Nickel 575.2 545.1 5.5 Other 302.9 349.1 (13.2) Mining cost of sales (4 495.9) (4 230.4) (6.3) On-mine operations (3 122.4) (2 824.3) (10.6) Concentrating and smelting operations (715.6) (624.9) (14.5) Refining operations (337.3) (312.3) (8.0) Amortisation of mining assets (481.5) (344.0) (40.0) Increase/(decrease) in metal inventories 160.9 (124.9) (228.8) Gross profit from mining 3 183.3 4 647.1 (31.5) (Loss)/profit from metal purchase transactions (Rm) (1.7) 14.3 (111.9) Metal purchase sales 3 419.5 2 463.2 38.8 – IRS 3 187.5 2 459.8 29.6 – Other 232.0 3.4 6 723.5 Metal purchase cost of sales (3 421.2) (2 448.9) (39.7) – IRS (3 176.8) (2 445.5) (29.9) – Other (244.4) (3.4) (7 088.2)

Gross profit 3 181.6 4 661.4 (31.7) Gross margin ex-mine (%) 41.5 52.3 Other operating expenses (210.6) (224.6) 6.2 Sales volumes ex-mine Platinum (000 oz) 1 070.5 1 080.0 (0.9) Palladium (000 oz) 471.9 498.6 (5.4) Rhodium (000 oz) 116.1 154.9 (25.0) Nickel (000 t) 7.1 7.9 (10.1) Sales volumes metals purchased – IRS Platinum (000 oz) 383.2 273.7 40.0 Palladium (000 oz) 257.6 179.5 43.5 Rhodium (000 oz) 49.0 35.3 38.8 Nickel (000 t) 5.4 3.7 45.9 Sales volumes metals purchased – Other Platinum (000 oz) 26.1 – Palladium (000 oz) – – Rhodium (000 oz) 11.2 0.2 Prices achieved ex-mine Platinum ($/oz) 767 596 28.7 Palladium ($/oz) 219 265 (17.4) Rhodium ($/oz) 519 650 (20.2) Nickel ($/t) 11 758 7 518 56.4 Exchange rate achieved ex-mine (R/$) 6.92 9.11 (24.0) Production ex-mine Tonnes milled ex-mine (000 t) 15 639 15 042 4.0 IMPALA PLATINUM IMPALA Platinum refined (000 oz) 1 090.3 1 040.1 4.8 YEAR THE REVIEW OF Palladium refined (000 oz) 501.2 477.6 4.9 Rhodium refined (000 oz) 116.1 134.3 (13.6) Nickel refined (000 t) 6.9 8.0 (13.7) PGM refined production (000 oz) 1 975.5 1 923.5 2.7 Total cost per tonne milled (R/t) 280 265 (5.7) ($/t) 41 29 (41.4) per PGM ounce refined (R/oz) 2 220 2 072 (7.1) ($/oz) 323 230 (40.4) per platinum ounce refined (R/oz) 4 023 3 832 (5.0) ($/oz) 586 425 (37.9) net of revenue received for other metals (R/oz) 2 182 899 (142.7) ($/oz) 318 100 (218.0) Capital expenditure (Rm) 1 197 1 079 (10.9) ($m) 174 120 (45.0)

IMPLATS ANNUAL REPORT 2004 A new plan incorporating Marula Platinum 52 a revised mining method has been Key features of the year developed • LTIFR of 3.87 • Metallurgical plant and surface infrastructure commissioned and fully operational • Mining development behind schedule, hampered by geological conditions and inappropriate mining method • Platinum in concentrate production of 13 280 oz for FY2004 • Revised mining plan developed • Capital expenditure to date of R1.2 bn • BEE plans being finalised

Marula Platinum, Implats’ second South assessment of the safety behaviour of African mining operation, is located on the trainees in the workplace. eastern limb of the Bushveld Complex in Limpopo Province. Ownership of 20% of Health:Two clinics have been established to Marula has been allocated to BEE interests. treat occupational injuries or diseases and 3.87 Of that 20%,10% will be owned by Mmakau to provide primary health care for all Mining, (a BEE mining company), 5% by the employees and contractors working at the Marula Community Trust (representing mine and plant. Emergency air ambulance members of the local communities) and 5% evacuation services have been contracted to will be held directly by local business and transport seriously injured patients to the 2.36 communities. nearest trauma centre in Polokwane. All employees and contractors undergo annual 1.65 Marula is managed by a small core Implats occupational health fitness examinations in team and the mining, concentrator accordance with group standards at the operations and associated services are nearby Dilakong Clinic. outsourced to contractors.Marula has a life- of-mine concentrate offtake agreement HIV/AIDS: Marula has implemented the with IRS. Impala HIV/AIDS education and management model for its employees and FY02 FY03 FY04 Safety, health and environment contractors. Marula Platinum – Lost time Safety: Regrettably, there was one fatal injury frequency rate (LTIFR) per accident during the year, at the Clapham Environment: The Impala environmental million man hours decline, a result of a fall of ground and the management system, which had been LTIFR increased to 3.87 per million man adopted at Marula, was extended to include hours. This deterioration was largely a the principles embodied in ISO 14001 with function of the mine being in a ramp-up a view to having an ISO audit in the future. MARULA PLATINUM MARULA

REVIEW OF THE YEAR THE REVIEW OF phase with a corresponding increase in the number of employees displayed under- Water, both its management and quality, is ground. A number of initiatives have been a key environmental focus area at Marula, launched at Marula to improve safety, particularly as the mine operates in an arid including a fall of ground campaign and the region and both the Clapham and Driekop

Key statistics Mineral Reserves UG2 41.3 Mt 0.2 Mineral Resource Merensky and UG2 66.6 Mt 0.0 0.0 Life-of-mine Phase 1 25 years FY02 FY03 FY04 Current production (Phase 1) Platinum in concentrate 13 280 oz Marula Platinum – Fatal injury Planned production (Phase 1) Platinum in concentrate 125 000 oz frequency rate (FIFR) per million Capital expenditure Phase 1 R1.8 bn man hours No. of employees At full production 2 650

IMPLATS ANNUAL REPORT 2004 shafts will have to be de-watered as mining 544 Processing 505 progresses. Waste management is also The metallurgical plant was cold com- receiving attention. missioned on schedule in December 2003 53 with hot commissioning completed in Mining operations February 2004. The dense media 342 Marula is one of the first operations to have separation (DMS) plant was commissioned been developed on the relatively under- but subsequently by-passed as the mills, exploited eastern limb. Although the which have a capacity of 6 000 t/day, are 200 metallurgical plant and surface infra- able to cope with current levels of mine 173 structure were delivered on schedule, production.The DMS plant will be brought 131 development of underground mining back into production as tonnages increase. operations at Marula is substantially The overall metallurgical recovery is behind schedule. This is as a result of an expected to be in the region of 87% of run- initially inappropriate mining method and of-mine grades. FY02 FY03FY04 FY05 FY06 FY07 unexpected geological conditions. In Marula Platinum – Capital particular, the steeper dips affected Capital expenditure expenditure mechanized machine efficiencies which For the 2004 financial year, capital expen- (Rm) also aggravated the extent of dilution by diture amounted to R505 million, bringing waste. Consequently, production was the total project cost to R1.2 billion. Capital 2 123 severely affected with only 13 280 ounces expenditure during FY2005 is planned at 1 953 of platinum in concentrate being produced R342 million. in FY2004.This compares with planned full production of 100 000 platinum ounces Outlook

1 304 per annum, scheduled for the first quarter The revised mining plan, which projects of FY2005 in terms of the original plan. refined platinum production of 125 000 oz annually by FY2008,indicates a life-of-mine A new plan incorporating a revised mining of 25 years. A pre-feasibility study on the

585 method has been developed. The revised mining of the Merensky Reef (Phase 2) has method is based on conventional stoping been completed. A decision on whether to

178 techniques and mechanized strike proceed with this phase will be made in due development. This will entail a reduced course, depending on the Rand/Dollar mining height which will, in turn, limit the exchange rate and market circumstances. FY03 FY04 FY05 FY06 FY07 dilution significantly and improve the run- Marula Platinum – Ramp-up in of-mine grade, thus improving the tonnes mined economics of the operation. (000t)

On-reef development was hampered by a rolling reef and steeper dips. Changes were 114.8 made to the mine layout in order to allow for the development of the decline in the footwall. This will allow for faster 88.7 development rates. MARULA PLATINUM MARULA REVIEW OF THE YEAR THE REVIEW OF

The new mining plan will focus on the entire UG2 orebody, and full production is planned at 211 000 run-of- 46.4 mine tonnes a month. There will also be a slower build-up in tonnage than originally planned but of a higher grade, yielding

13.3 125 000 oz of platinum in concentrate annually. The initial target of 100 000 platinum ounces (annualised) is now FY04 FY05 FY06 FY07 scheduled for FY2006 with full production Marula Platinum – Platinum in expected to be reached in the last quarter concentrate of FY2007. (000oz)

IMPLATS ANNUAL REPORT 2004 54 REVIEW OF THE YEAR MARULA PLATINUM MARULA PLATINUM IMPLATS ANNUAL REPORT 2004 Marula key statistics Capital expenditure Total cost (16.9) Production Exchange rate achieved (111.3) Prices achieved inconcentrate Sales volumes inconcentrate Gross profit Cost ofsales Sales Unitcostsreflect only stopingoperations asdevelopment expenditure for theyear was capitalized. * Platinum ikli ocnrt (t) (000oz) (000oz) PGM inconcentrate (000oz) ($/oz) Nickel inconcentrate (000oz) (000t) Rhodium inconcentrate ($/oz) ($/oz) Palladium inconcentrate Platinum inconcentrate Tonnes milledex-mine (000oz) (000oz) Rhodium Palladium (%) Platinum Rhodium Palladium Gross margin ofminingassets Amortisation Concentrating operations Other Nickel Rhodium Palladium e on ild (R/t) per tonnemilled* (000oz) Platinum Mining operations e G uc ncnetae (R/oz) per PGMounceinconcentrate* per platinum ounceinconcentrate* ikl($/t) (t) Nickel Nickel (R/oz) ($/oz) ($/oz) (R/$) (Rm) (Rm) ($m) ($/t) FY2004 10 282 2 587 1 037 7 120 (17.9) (16.6) (28.3) (66.4) 59.7 94.4 37.7 36.6 37.7 13.2 13.3 13.2 13.4 16.6 13.3 6.54 574 753 192 687 505 165 377 2.7 2.7 2.2 2.5 74 24 FY2003 Implats’ holding in Zimplats Zimplats had increased 55 to 83.44% by year-end Key features of the year • LTIFR improved by 77% • Tonnes milled rose by 3.6% to 2.0 Mt • Refined platinum production of 84 300 oz, up 17.2% • Unit costs decreased by 3% to R5 074/oz • Furnace off-line for seven weeks due to smelter breakout • Contractor strike at opencast operations affected mining production • Potential for significant expansion – Phase 1 on track

Zimplats mining operations, the opencast Health: Tests have been conducted in and underground trial mine, are located respect of exhaust emissions and respirable 77 km south of Selous. Zimplats’ mining dust sampling. All employees are screened operation, Makwiro Platinum, is situated in for pneumoconiosis prior to employment,as the Hartley Complex in the northern is legally required in all dust-prone reaches of the Great Dyke, Zimbabwe. occupations in Zimbabwe. Makwiro comprises the Ngezi opencast mine, underground trial mine as well as the Personal protective equipment is provided Selous Metallurgical Complex (SMC). The to all employees to minimize the level of convertor matte produced is sold to IRS in noise, dust, noxious gases, heat and 0.4 South Africa and processed in terms of a exposure to lead and nickel. long-term off-take agreement. HIV/AIDS: An HIV/AIDS awareness infor- By the end of the 2004 financial year, mation programme is in place and a survey

0.0 0.0 Implats had increased its holding in conducted during the year indicated that Zimplats, which is listed on the Australian the workforce has a sound understanding of FY02 FY03 FY04 Stock Exchange, to 83.44%. Implats and HIV/AIDS. A workplace HIV/AIDS policy is Zimplats – Fatal injury rate (FIFR) Zimplats hold 30% and 70% respectively being developed. per million man hours in Makwiro Platinum (Pvt) Ltd, giving Implats an effective holding of 88.4% in Environment: Air quality requires the Makwiro. monitoring of dust fall-out and greenhouse gas emissions from the use of heavy mobile 2.00 Safety and health equipment at the opencast operations and Safety:The safety performance at Zimplats emissions from the smelter at the SMC. As improved significantly during the year. The part of this initiative, the smelter has ZIMPLATS ZIMPLATS LTIFR for Makwiro was 0.46 per million man stopped using limestone, thus reducing CO2

hours, an improvement of 77% on the emissions. Some $52 000 will be spent on YEAR THE REVIEW OF previous year. The mine recorded no fatal upgrading air quality monitoring at the 1.05 injuries. smelter during the year ahead.

Much effort has been focused on safety Efforts to reduce water consumption have as the expansion continued and additional been increased with some benefits already 0.46 employees, new to the mining discipline, being felt. Decreased consumption has were recruited. Safety action plans that become imperative, not only as part of the have been put in place include hazard environmental effort, but also because raw identification, the development of a safety water prices increased almost eightfold in FY02 FY03 FY04 management plan, behavioural-based the past year. training for management, and the Zimplats – Lost time injury frequency rate (LTIFR) per million formulation of and training on procedures A new National Environmental Policy is man hours and standards. currently being developed by the Ministry of

IMPLATS ANNUAL REPORT 2004 ZIMPLATS

Key statistics Ore Reserves 340.8 Mt MSZ 56 Mineral Resource 2 492 Mt MSZ Current refined production 84 300 Pt oz Life-of-mine (Phase 1) 20 years Capital expenditure $11 million in FY2004 $20 million planned in FY2005 No. of employees 1 500, including contractor employees

Environment and Tourism in Zimbabwe in Plans are in place to restrict dilution in the consultation with all stakeholders. In terms underground mine and opencast operation of legislation, an Environmental Impact to achieve target head grades of 3.29 g/t and Assessment (EIA) and subsequent approval 3.23 g/t respectively. thereof is required by government prior to the development of the Ngezi Expansion The underground mine is achieving Project. the required 20 000 t/month per suite of equipment and is scheduled to ramp up to Mining 55 500 t/month by year-end.The challenge In FY2004, volumes mined amounted to will be to do this efficiently and on time. 2.1 Mt, 4% more than in FY2003. This was made up of 1.9 Mt from the opencast mine The support system for the underground and 185 000 t from the underground trial mine must still be finalised and tests are mine. Ore sizing presented a problem in the currently being conducted on various types mills, constraining the volumes milled and a of roof bolts. The current mechanized study is presently underway to seek support drill rig, although performing to solutions to this problem. specification,is unable to drill the number of holes required per shift because of the dense A go-slow by employees of the opencast support pattern and the hardness of the contractor, arising from a dispute over rock. Tests are being done with a more wages and shift cycles began on 4 June.This powerful drill rig, and if not successful, more resulted in opencast operations being machines will be required. halted for three weeks. The operation used this time to conduct scheduled mainte- Whereas total costs were higher than nance work on all equipment. The process- budgeted, due mainly to increased mining ing facility continued milling as it was able costs, Rand costs per tonne milled and per to draw from the 120 000 t run-of-mine ounce produced were around 3% lower than stockpile and oxide ore. This stockpile has FY2003. now been severely depleted, and con- sequently, the first three months of FY2005 Processing ZIMPLATS ZIMPLATS will be critical for the opencast operation.A Recoveries improved to 83% (up by 1% over schedule is in place to expose ore at a maxi- the previous year) despite the patches of REVIEW OF THE YEAR THE REVIEW OF mum rate to keep mined ore at the required oxidised material encountered from the volumes. During this period a third shift will opencast operation which had a negative be recruited for the opencast operation to effect on recoveries.The understanding ofthe ensure that mining volumes are maintained relationship of the oxidized ore to sulphide at levels sufficient to build up depleted ore is improving and, consequently, steps are stock levels. being taken to minimise recovery losses when treating the oxidised material. Bench drilling underperformed by 12% this year, largely as a result of breakdowns on Although a major break-out at the smelter the drill rigs and lower-than-expected in July 2003 resulted in the furnace being penetration rates which was caused by the out of operation for seven weeks, the hardness of the rock.Two extra drill rigs are concentrate stockpiled during this period on order and due for delivery within was successfully processed during the months. financial year. Platinum in concentrate

IMPLATS ANNUAL REPORT 2004 Shareholding in Zimplats (as at 30 June 2004) 57 Implats

83.44%

16.56% Minorities Zimplats 30%

70%

Makwiro

produced for the year totalled 85 200 oz, an Zimplats is currently operating at close to increase of 6% on the previous financial current production capacity. There is the year.This amounted to 84 300 oz of refined potential for significant expansion and this platinum, which exceeded expectations. will be done in a modular fashion, given the political risks and geological challenges of Indigenization programme developing on a new orebody. Implats requires clarity on the Zimbabwe government’s indiginization requirements The feasibility study and trial mine to and in particular confirmation that a sale of develop an underground mine have been 15% of Zimplats meets those requirements. successfully completed. The first phase of We understand that the current expected the planned expansion, which will increase level of indiginization is 15% and that recent production to 141 000 oz of platinum by statements citing levels of up to 50% have FY2007 has been approved in principle, been withdrawn. subject to certain conditions precedent being met, such as security of tenure and a Outlook special mining lease.The implementation of A major area of concern in the coming year Phase 1 will begin once these conditions is opencast contractor mining costs which have been met. This first phase will involve could rise significantly as a result of capital expenditure of $109 million. inflationary pressures. The opencast con- tract has been put out to tender to test the A study team has been commissioned to market and to enable Makwiro manage- investigate subsequent phases of the ment to make an informed decision as to expansion. whether to continue with a contractor or to change to owner mining. ZIMPLATS ZIMPLATS REVIEW OF THE YEAR THE REVIEW OF

IMPLATS ANNUAL REPORT 2004 58 REVIEW OF THE YEAR ZIMPLATS ZIMPLATS Only 10monthsofFY2003were attributable toImplats IMPLATS ANNUAL REPORT 2004 rs rft245.9 Gross profit Zimplats key statistics Total cost Production Exchange rate achieved ex-mine 232.3 Prices achieved inconcentrate (443.3) Sales volumes inconcentrate adjustmentrelates tosalesfrom ZimplatstotheImplatsgroup whichatyear-end Adjustment were stillin note:The * Gross profit inImplatsgroup Cost ofsales Sales Capital expenditure the pipeline. e on ild(R/t) (t) (000oz) (000oz) (000oz) ($/oz) (000t) per tonnemilled ($/oz) PGM inmatte Nickel inmatte Palladium inmatte Platinum inmatte Tonnes milledex-mine Nickel ($/t) Rhodium (%) Palladium ($/oz) Platinum Nickel (t) Palladium (000 Gross margin Intercompany adjustment* Increase inmetalinventories oz) Concentrating operations Nickel Palladium Amortisation ofminingassets Amortisation Platinum ltnm(000oz) Platinum Mining operations e G uc ncnetae(R/oz) per PGMounceinconcentrate e ltnmonei ocnrt (R/oz) per platinum ounceinconcentrate hdu nmte(000oz) Rhodium inmatte (000oz) Rhodium Other operating expenses Rhodium Other ($/oz) ($/oz) (R/$) (Rm) (Rm) ($m) ($/t) FY2004 (114.6) (297.7) 689.2 186.7 109.4 425.6 006 2 1 627 9 738 1 627 2 318 5 074 (13.6) (46.9) (20.5) 76.3 11.1 73.1 85.3 73.2 35.7 15.9 92.3 85.2 6.90 23.6 38.3 216 438 183 724 735 336 7.8 7.8 31 FY2003 (106.6) (476.7) (318.1) 1 381 5 858 1 349 1 937 2 324 5 223 173.1 649.8 137.6 185.2 355.4 (58.0) 27.3 70.5 82.4 70.0 26.6 70.1 80.2 9.09 34.9 51.8 222 526 222 500 574 256 (5.7) 3.0 6.0 7.6 7.5 24 Mimosa completed its Mimosa Platinum expansion programme to 59 reach an annual Key features of the year production of 69 000 oz platinum in FY2004 • LTIFR improved by 45% • Recoveries improved from 76% to 79% • Platinum in concentrate production of 61 400 oz for FY2004 • Expansion to deliver 69 000 oz of platinum in concentrate complete • Remains one of the lowest cost platinum producers in the world • Further potential for expansion • Indigenisation discussion progressing

Mimosa Platinum is located on the southern Mimosa clinic has been reduced as the part of the Great Dyke in Zimbabwe, on the newly refurbished Kandodo Clinic has Wedza Geological Complex and is wholly- become available. owned by Mimosa Investments, based in 4.89 4.72 Mauritius. Mimosa Investments is in turn The company maintained its NOSA four- jointly owned by Implats and Aquarius platinum star status during the year. Platinum Limited. HIV/AIDS: A comprehensive survey on During FY2004, the mine completed its employee HIV/AIDS levels has been con- 2.92 expansion programme to reach an annual ducted and, following benchmarking 2.64 2.61 production level of 69 000 oz. Mimosa has visits to Impala Platinum, other mining a life-of-mine concentrate offtake agree- companies and non-governmental organ- ment with IRS. izations (NGOs) in Zimbabwe and neigh- bouring countries, an employee wellness Safety and health programme is being established. This Safety: Regrettably, the company had one programme was launched in July 2004 and fatal accident during the year, bringing the will focus initially on HIV/AIDS awareness to FIFR to 0.16. The LTIFR for Mimosa, change behaviour. An NGO, Population FY00 FY01 FY02 FY03 FY04 however, improved significantly during the Services International, has been engaged to Mimosa Platinum – Lost time year to 2.61 per million man hours (FY2003: conduct the awareness training. The injury frequency rate (LTIFR) per 4.72). This follows the deterioration programme will be extended to include the million man hours experienced the previous year when a large provision of voluntary counselling and number of new, inexperienced personnel testing as well as treatment programmes joined the company as part of the by the end of this year. expansion project. Environment: One significant environ- Training programmes incorporating induc- mental spill was recorded during the year MIMOSA PLATINUM tion, hazard identification, risk assessment from the tailings pipe.A report was made to YEAR THE REVIEW OF and safety awareness have continued. Risk government, and a follow-up site visit was profiles are linked to standard job proce- held. The area was cleaned up according dures and high-risk jobs are prioritized to plan. for training. An environmental risk baseline was estab- Self-contained self-rescuers are being lished during the year. acquired for all employees. 0.45 Mining 0.0 0.0 0.0 0.16 Health: The company has adopted Impala Mining at Mimosa extends to a depth of FY00 FY01 FY02 FY03 FY04 Platinum’s occupational health standards 200 m with a well-defined orebody. Mimosa Platinum – Fatal injury which required both a reassessment and frequency rate (FIFR) per million redeployment of staff. Noise and dust Tonnes milled rose by 77% to 1.33 Mt man hours levelsare monitored.Congestion at the local for the year in line with the expansion,

IMPLATS ANNUAL REPORT 2004 MIMOSA PLATINUM

Key statistics Ore Reserves 29.8 Mt MSZ 60 Mineral Resource 128.9 Mt MSZ Life-of-mine 50 years Current refined production 61 400 oz in concentrate in FY2004 Planned refined production Steady-state of 69 000 oz in concentrate in FY2005 Capital expenditure $13.5 million in FY2004 No. of employees 1 507

resulting in the production of 61 400 oz of Processing platinum in concentrate. Costs continued Recoveries at the mine’s concentrator have to be well-contained given the hyper- risen to 79%.The concentrate is transported inflationary conditions prevailing in by road to Mineral Processes in Rustenburg in Zimbabwe. Significant increases were terms of the operation’s agreement with IRS. experienced in the cost of power and fuel. 61.4 The cost per platinum ounce in concentrate As a result, costs rose to $28/t, from $24/t was $609/oz. the previous year but were lower in Rand terms. Nonetheless, Mimosa remains one Indigenization programme of the most productive and lowest cost Negotiations on the sale of 15% of Mimosa 36.0 platinum mines in the world. to a consortium of Zimbabweans continued, in line with Zimbabwe’s indigenization Efforts to develop staff capabilities requirements.Both Implats and Aquarius will continue, especially regarding production make available 7.5% of their respective 16.9 15.0 16.0 techniques, safety and work cycles so as to holdings for purchase by the consortium. create a sustainable operation for the future.There has been much improvement Outlook in the performance of underground A feasibility study to assess the potential FY00 FY01 FY02 FY03 FY04 teams with the worst performing team for further expansion is scheduled for achieving no less than 45 centares per completion by June 2005. Initial indications Mimosa Platinum – Platinum in man month. concentrate are that production from Mimosa could be (000oz) doubled within four years. MIMOSA PLATINUM REVIEW OF THE YEAR THE REVIEW OF

IMPLATS ANNUAL REPORT 2004 Mimosa key statistics FY2004 FY2003 61 Sales (Rm) 493.3 318.9 Cost of sales (240.4) (201.0) Mining and concentrating operations (250.0) (200.6) Amortisation of mining assets (25.2) (23.4) Increase in metal inventories 34.8 23.0 Gross profit 252.9 117.9 Gross profit attributable to Implats (50%) 126.5 59.0 Intercompany adjustment* 17.0 (33.3) Gross profit in Implats group 143.5 25.7 Gross margin (%) 51.3 37.0 Other operating costs (7.8) (1.6) * Adjustment note:The adjustment relates to sales from Mimosa to the Implats group which at year-end were still in the pipeline. Exchange rate achieved ex-mine (R/$) 6.90 9.09 Production Tonnes milled ex-mine (000 t) 1 334 755 Platinum in concentrate (000 oz) 61.4 36.0 Palladium in concentrate (000 oz) 44.7 25.5 Rhodium in concentrate (000 oz) 5.0 2.8 Nickel in concentrate (t) 1 708 826 PGM in concentrate (000 oz) 126.1 63.2 Total cost per tonne milled (R/t) 193 222 ($/t) 28 24 per PGM ounce in concentrate (R/oz) 2 044 2 661 ($/oz) 296 293 per platinum ounce in concentrate (R/oz) 4 199 4 672 ($/oz) 609 514 Capital expenditure (Rm) 81 174 ($m) 13.5 20.9 MIMOSA PLATINUM REVIEW OF THE YEAR THE REVIEW OF

IMPLATS ANNUAL REPORT 2004 62 REVIEW OF THE YEAR IMPALA REFINING SERVICES REVIEW OFOPERATIONS AND INTERESTS feature ofIRS’s financial FY00 IRS – (000oz) production IRS – 395 Y0F0 Y2FY04 FY02 FY01 FY00 179 Platinum Other PGMs production bymetal Growth inplatinum losses/gains are a Y1F0 FY03 FY02 FY01 587 289 Exchange rate 744 362 1 238 633 FY03 results 1 749 FY04 871 rudtewrd includingflotation around theworld, IRS sources awidevariety ofmaterial from for IRS. can alsoleadtoexchange rate losses/gains of smallerworking capitaloperators –they inrespectbenefits toclients–particularly these advances offer very considerable consideration theprocessing pipeline.While to purchase-agreement clientstotake into advances payment IRS’s financialresults.IRS Exchange rate losses/gains are afeature of determined processing period. the metaltoclientafterapre- charges clientsaprocessing fee andreturns withtoll-refining,IRS processing period,and IRS purchases metalafterapre-determined With metalpurchase agreements, of both. toll-refining agreements oracombination IRS engages inmetalpurchase agreements, related processing costs. andIRSpays Impalamarket- pipeline, recoveries andthelengthofprocessing Impalaguarantees termsofwhich in agreement exists between ImpalaandIRS Anarm’s length Platinum’s fixed assets. through acontribution for theuseofImpala associated withImpala’s own production revenue flows andtoreduce costs marketing togenerate expertise additional refining and capacityaswell asitstechnical Impala Platinum’s additionalsmeltingand Impala Refining Services(IRS)leverages Impala Refining Services IMPLATS ANNUAL REPORT 2004 43%increase ingross profit toR716million • 41%increase inPGMsto1.749Moz • 38%increase inmetalproduced to871000ozplatinum • Key features oftheyear 00175.2 117 2000 043413.3 4.4 9.1 6.5 394 151 416 300 2004 2003 2002 2001 IRS –profit andcontribution totheImplatsGroup increase indelivery from bothZimplatsand an ramp-up from itsMarikana operation, Kroondal operation plus from Aquarius’ on-year withmajorinputcontributions increased by amostcreditable 35%year- platinum production through IRSstill Excluding theLonplatscontribution, 2.3Mozby 2008. possibly, 2006 and, Mozby ing thegroup’s planstoproduce 2 obligations was clearly established,support- consistently meetingtheircontractual process thesesubstantialvolumes while IRS’s capacityto generated toR243million, Notwithstanding thenetincrease inprofit PGM production rose 41%to1.749Moz. while total 000oz, year rose by 31%to545 production for the Implats’group.Palladium approximately 44%ofthroughput from the which isequivalent to 871 000oz, production grew by 38%year-on-year to attributable platinum Asaresult, 2002. following theirfurnacefailure ofDecember trate processing onbehalfofLonplats This performance was boostedby concen- platinum andotherPGMsduring FY2004. IRS produced unprecedented volumes of Operating performance spent autocatalysts intheworld. making IRSoneofthelargest refiners of regarding thesupply ofspentautocatalysts, Specialized ServicesandSuppliers Inc long-standingrelationship with A1 a has IRSalso concentrate andsmeltermatte. Profit (Rm) % contribution % togroup Profit (Rm) Mimosa, steady growth in spent auto- from Marikana, Messina and Mimosa, a catalyst recycling and ramp-up from considerable contribution from Marula Messina Platinum Mines Limited. Platinum and an ever-growing autocatalyst 63 recycle profile. Outlook Although the processing of Lonplats The combination should provide for healthy concentrate was a once-off, growth is throughput volumes once again,although it expected from other projects and new is unlikely that this year’s unprecedented ventures, including additional ramp-up volumes will be repeated.

IRS key statistics FY004 FY2003 % change Sales (Rm) 3 851.5 2 913.8 32.2 Platinum 2 099.4 1 551.7 35.3 Palladium 409.7 468.2 (12.5) Rhodium 189.6 211.2 (10.2) Nickel 638.6 359.2 77.8 Other 514.2 323.5 58.9 Cost of sales (3 135.5) (2 413.3) (29.9) Metals purchased (3 122.4) (2 283.4) (36.7) Smelting and refining costs (201.7) (142.0) (42.0) Increase in metal inventories 188.6 12.1 1 458.7 Gross profit 716.0 500.5 43.1 Gross margin (%) 18.6 17.2 Other operating costs (1.8) (9.2) 80.4 Sales 3 851.5 2 913.8 32.2 Direct sales to customers 303.2 249.6 21.5 Sales to Impala 3 176.8 2 445.5 29.9 Toll income 371.5 218.7 69.9 Total sales volume Platinum (000 oz) 398.8 292.4 36.4 Palladium (000 oz) 260.9 189.8 37.5 Rhodium (000 oz) 52.0 38.2 36.1 Nickel (000 t) 7.7 5.6 37.5 Prices achieved Platinum ($/oz) 772 599 28.9 Palladium ($/oz) 230 271 (15.1) Rhodium ($/oz) 535 609 (12.2) Nickel ($/t) 12 089 7 222 67.4 Exchange rate achieved (R/$) 6.82 8.92 (23.5) REVIEW OF THE YEAR THE REVIEW OF Refined production IMPALA REFINING SERVICES IMPALA Platinum (000 oz) 871.1 633.1 37.6 Palladium (000 oz) 544.6 415.4 31.1 Rhodium (000 oz) 135.4 80.7 67.8 Nickel (000 t) 9.5 6.7 41.8 PGM refined production (000 oz) 1 749.3 1 238.0 41.3 Metal returned Platinum (000 oz) 501.1 251.5 99.2 Palladium (000 oz) 314.0 174.2 80.3 Rhodium (000 oz) 96.7 17.5 452.6 Nickel (000 t) 1.5 0.9 66.7

IMPLATS ANNUAL REPORT 2004 Strategic holdings are Strategic holdings 64 continually reviewed and rationalized when Key features of the year appropriate • Proposed sale of Lonplats’ stake will initially generate net funds of $668 million • AQPSA grows, as does its contribution to IRS • Two Rivers feasibility study progresses

An important part of Implats’ growth factored into the calculation of ownership strategy in the past has been the devel- equity when Implats’ primary operating opment of relationships with other industry subsidiary, Impala Platinum, applies for the players so as to provide access to strong cash conversion of its mining rights. Impala flows, additional resources and new and anticipates this to equal credits of around ongoing business for IRS. Its strategic 9% in its hands. holdings are continually reviewed and rationalized when appropriate. Implats The remaining holding of 18.1% in Lonplats intends to sell its holding of 27.1% in will be sold to Lonmin for $554.4 million. Lonplats. This has had the added benefit of The entire transaction will provide Implats securing empowerment credits in line with with a net total of $794.5 million. Simul- the proposed Mining Charter at minimal taneously, both Lonmin and the HDSA cost to shareholders. consortia will each on-sell holdings of 9% in Lonplats to Incwala Resources (Pty) Ltd, a Lonplats newly formed HDSA-controlled resources In September 2003,Implats announced that company. it had signed a memorandum of under- standing with Lonmin regarding the sale of To facilitate the transaction and the Implats’ 27.1% stake in Eastern Platinum establishment of Incwala Resources,Implats Limited and Western Platinum Limited, will provide vendor-financing of $95 million collectively known as Lonplats, to Lonmin to the HDSA investors,for which Lonmin will and a grouping of black empowerment indemnify it, thus ensuring that there is consortia for $800 million. Two precon- limited capital risk to Implats. Once this ditions to the sale were the completion of transaction has been completed in its satisfactory funding for the transaction and entirety, the HDSA consortia will own more a reasonable guarantee of credits in terms than 50% of Incwala. of the Mining Charter’s scorecard.Extensive negotiations have since taken place,refining The Department of Minerals and Energy the terms of the transaction. has confirmed that the structure of this transaction is in line with the aims of the A holding of 9% in Lonplats will be sold to a Mining Charter. Implats has made every REVIEW OF THE YEAR THE REVIEW OF STRATEGIC HOLDINGS STRATEGIC group of consortia representing historically effort to ensure that this deal provides disadvantaged South Africans (HDSAs) for appropriate rewards and safeguards for its around $240.1 million. This sale will be shareholders.

Sale of Lonplats – anticipated cash flow ($m) Sale price 800.0 FV adjustments (5.5) 794.5 Vendor finance (95.0) 699.5 Dividend received (31.7) Net cash flow 667.8

IMPLATS ANNUAL REPORT 2004 (000oz) platinum production Aquarius Platinum– Y1F0 FY04 FY02 FY01 81 122 FY03 134 refined 188 fFY2005. of expected tobeconcludedinthefirst half thetransaction is legal agreements, andtheconclusionofvariousholder support Lonminshare- South African Reserve Bank, includingthatofthe regulatory approvals, Subjecttofuther approved thetransaction. CompetitionSouth Africanhas Tribunal the The have HDSA consortia raised fundingand finance tobeprovided. theamount ofvendor September 2003,and received for Lonmin’s financialyear to of thedividend$31.7millionalready cash inflow for Implatsof$667.8million,net This transaction willachieve aninitialnet iie APS).Implatsand Aquarius Limited (AQP(SA)). Aquarius Platinum South Africa (Pty) andunlistedsubsidiary, and the ASX, which islistedontheLSE Platinum Limited, Implats holdsstakes inboth Aquarius Aquarius Platinum IMPLATS ANNUAL REPORT 2004 PGMs Rhodium Palladium Platinum Refined production Dividends received Profit Profit before tax Sales Financial Year toMarch interest inLonplats Attributable contribution ofImplats’ * Thisstakewilldeclinetoaminimumof20%, onconclusionoftheproposedBEEdealwithSavannahResources 50% Implats Aquarius Platinum–Shareholdingstructure 25%* 8.6% (000 oz) (Rm) FY2004. platinum production of134000ozfor with have beenovercome severe potholing, of aresult Production problems atKroondal, account. interest-bearing shareholder’s loan ofthe converting part been achieved by This has AQPSA results. equity accountthe thus willcontinue to remains at20%and structured adealtoensure itsshareholding Implatshas Resources hasbeenfinalised. ledby aBEEconsortium Savannah AQPSAto transaction of tosellaportion once a which willbereduced of 25%in AQPSA, Implatsalsohasastake company to8.6%. holdinginthe effectively reduced Implats’ mented aprivate placementofshares which Aquarius Platinum imple- During theyear, Limited inZimbabwe. Investments whichowns MimosaPlatinum Platinum are thejointowners ofMimosa Mimosa Investments Aquarius Platinum Aquarius Platinum (Pty) Limited South Africa Limited Limited 1 725 2004 505 119 269 285 290 460 37 75% 4 (1) 1 744 03%change 2003 9 27 31 399 62 (56) 206 (51) 176 654 935 525 95 216 32 50%

REVIEW OF THE YEAR 65 STRATEGIC HOLDINGS STRATEGIC HOLDINGS

Attributable contribution of Implats’ interest in AQP(SA) 66 FY2004 FY2003 % change Financial (Rm) Profit before tax 40 33 21.2 Change in unearned profit 8 19 (57.9) Share of taxation (9) (19) 52.6 Profit 39 33 18.2 Refined production (000 oz) Platinum 188 134 40.3 PGMs 349 251 39.0

Although tonnage from the Marikana pile.The trial mining follows the revision of opencast operations has reached steady the scope of the project in response to the state levels, third quarter production was strengthening Rand and to allow for hampered by inclement weather and pit increased underground production of flooding. Oxidised ore and lower-than- 185 000 t/month (previously 175 anticipated recoveries resulted in reduced 000 t/month) and 40 000 t/month of metal production. opencast material, a resource that had been excluded previously. Planned annual Aquarius also owns the Everest South production is 220 000 oz PGM and project, the start of which has been delayed 120 000 oz platinum. pending the successful conclusion of the proposed BEE transaction which will provide The Environmental Management Pro- the necessary funding for the project. gramme Report (EMPR), and mining and water use licences were approved during Two Rivers FY2003 and FY2004 and an addendum Implats has a 45% stake in the Two Rivers covering the opencast pit was submitted to Platinum project with African Rainbow the authorities in FY2004.The project is still Minerals (ARM) holding the balance of 55%. to be submitted for approval to the relevant Recent corporate activity involving AVMIN, boards. Full project go-ahead is dependent ARM and Harmony resulted in the transfer on the results of the trial mining and of AVMIN’s share in Two Rivers Platinum to the outlook for the Rand. Production is a new, empowered platinum entity, ARM scheduled to begin around 18 months after Platinum, a division of ARM Resources. project go-ahead.

Trial mining has been underway for six Approved funding for the project to months and an underground access has September 2004 totals R755 million – been established via a box cut.By June 2004, R551 million for the purchase and 180 m of reef strike development and 70 m R204 million on the feasibility study, trial of reef dip development had been accumu- mining and capital works. Implats has lated in a 50 000 t development ore stock- expended R340 million (45%). REVIEW OF THE YEAR THE REVIEW OF STRATEGIC HOLDINGS STRATEGIC

Key statistics UG2 Mineral Resource (Measured and Indicated) 60.4 million tonnes Estimated capital expenditure R1.3 billion (in real terms) Potential number of employees 1 000 (30% contractors) Life-of-mine 20 years

IMPLATS ANNUAL REPORT 2004 Exploration, Mineral Reserves and Mineral Resources 67 Geology Implats’mining operations focus on the two Bushveld Complex largest known deposits of platinum group N metals (PGMs) in the world, namely the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe.

Geology of the Bushveld Complex The Bushveld Complex is a 2-billion-year old Mokopane layered igneous intrusion.Although it shares characteristics with other layered complexes Marula around the world, the Bushveld is unique Burgersfort both in its size, covering an aerial extent of some 66 000 km2, and in the economic importance of its mineral deposits. Geologically, the complex comprises an Impala array of diverse igneous rocks ranging in composition from ultramafic to felsic. Middelburg Rustenburg Pretoria Contained within a well-layered ultramafic to mafic succession, called the Rustenburg Johannesburg Layered Suite, are two horizons which host 100 Km economically exploitable quantities of PGMs, namely the Merensky Reef and the underlying UG2 Chromitite Layer. These two economic horizons can be traced for hundreds of kilometres around the complex and are the focus of Implats’ operations in Great Dyke which the PGMs platinum, palladium, N rhodium, ruthenium and iridium are recovered together with quantities of gold, Great Dyke nickel, copper and cobalt. Implats’ opera- tions here comprise Impala Platinum MOZAMBIQUE Limited, located near Rustenburg in North ZAMBIA West Province, and Marula Platinum situated near Burgersfort in Limpopo Musengezi Selous Complex Province. Metallurgical NAMIBIA Victoria Falls Complex Harare Geology of the Great Dyke The Great Dyke is a linear geological feature YEAR THE REVIEW OF Ngezi ZIMBABWE Hartley extending some 550 km north-south with Complex a maximum width of 11 km. Within the

Dyke, four layered complexes are EXPLORATION, AND RESERVES RESOURCES Selukwe Bulawayo Complex developed, similar to the Bushveld BOTSWANA Mimosa Complex.From north to south,these are the Wedza Complex Musengezi, Hartley, Selukwe and Wedza complexes. The stratigraphy is broadly divided between a lower ultramafic and an

0 100 200 overlying mafic sequence. The ultramafic

Kilometres sequence hosts the P1 pyroxenite, directly SOUTH AFRICA below the mafic-ultramafic contact, which in turn hosts the economic PGM-bearing Main Sulphide Zone (MSZ). The MSZ is

IMPLATS ANNUAL REPORT 2004 Exploration focussed on generally 2-3 m thick. Optimal mineralisa- undertaken. Only limited work was tion varies and, in contrast to the Bushveld conducted at the Spitzkop, Kalkfontein and 68 evaluating Implats’ Complex, is often difficult to follow visually. Buffelshoek properties. An extensive 3D Mineral Resources in Peak values for the PGM and base metals are seismic orientation survey was undertaken commonly offset, while the proportions to test the viability of this technique at southern Africa between platinum and palladium also vary shallow depths. Final results are expected vertically. As at 30 June 2004, Implats held early in FY2005. 83.44% of Zimbabwe Platinum Mines Limited (Zimplats), an Australian-listed Great Dyke: A full-time exploration company. Zimplats operates the Ngezi manager was appointed in October 2003 to Platinum mine situated in the south of the manage future exploration endeavours at Hartley Complex, and mines both by Zimplats. A review of the available infor- opencast and trial underground methods. mation has been completed followed by the Zimplats owns extensive resources within formulation of a long-term exploration the Hartley Complex. In addition, Implats strategy.The focus for the next few years will owns 50% of Mimosa Investments Limited be to support the growth strategy, which owns and operates Mimosa Mining particularly in the Ngezi area, as well as the Company,an underground mine situated on evaluation of other mineral resources the Wedza Complex. amenable for shallow mechanized mining. Work in FY2004 entailed compiling the Exploration review geology and Mineral Resources and Reserves In FY2004, exploration focussed on for the Phase 1 expansion feasibility study, evaluating Implats’ Mineral Resources in follow-up investigations in the proposed southern Africa, and to a lesser degree, portal 3 area and the establishment of an internationally. Particular emphasis was exploration base at Selous. placed on the Great Dyke since the acquisition of the majority shareholding in North and South America, and Australia Zimplats. In South Africa, exploration Alliance with Falconbridge: The alliance endeavours were hampered by permitting with Falconbridge has continued. The issues prior to the introduction of the Narndee project in Western Australia Mineral and Petroleum Resources Develop- was terminated after an 18 hole-drilling ment Act 28/2002 (the Act). programme failed to identify significant PGE mineralization.The Cateté joint venture Exploration expenditure increased to some in the Carajás region of Brazil was advanced R42 million,particularly due to brownfields with several targets having been drill tested; exploration conducted at the Impala to date no significant encouragement has Rustenburg operations. Going forward, the been encountered. Implats single-commodity strategy remains firmly entrenched and thus the During the year, Implats concluded another emphasis on platinum-dominant projects agreement with Falconbridge to explore will continue. part of the Niquelândia lobe in the Goiás Layered Igneous Complex of central Brazil. REVIEW OF THE YEAR THE REVIEW OF Southern Africa Falconbridge had previously conducted Bushveld Complex: Brownfields explora- extensive geochemical and geophysical tion at the Impala operations at Rustenburg surveys and defined specific target areas.

EXPLORATION, AND RESERVES RESOURCES was aligned to support the revised long- The new scheme of arrangement includes a term mine plan. Emphasis during the past commitment of CD$500 000 from Implats year has been on the evaluation of the 20, for the first phase. Payment of an additional 11c and 16 Shaft blocks, with a particular CD$1.5 million will entitle Implats to a 50% focus on enhancing the 3D seismic data, interest in the project. geotechnical studies and mineral resource evaluation. Three Kings: Implats entered into an agreement with De Grey Mining regarding At Marula Platinum, an infill-drilling pro- their Three Kings project in Western gramme,targeted at the Merensky Reef,was Australia during FY2004. The initial com- conducted and a pre-feasibility study was mitment is A$400 000 for Phase 1 which is

IMPLATS ANNUAL REPORT 2004 designed to test the grade potential and lateral continuity of earlier successes.This first phase is scheduled for completion by the second quarter of FY2005. Should Implats elect to proceed with a second phase, additional expenditure of A$800 000 will give Implats an 69 interest of 60% in the project.

Franconia JV: The exploration JV with Franconia Minerals Corporation is continuing in two target areas in the Duluth Complex,in the USA.Permitting regulations and the weather have delayed the programme.Exploration completed to date has failed to generate a viable target for follow-up work. Mineral Reserves and Mineral Resources

Impala Platinum Mineral Reserves and Mineral Resources: Impala Platinum holds contiguous old order mining and prospecting rights for a total area of 27 573 hectares.

Mineral Reserves as at 30 June 2004 Orebody Category Tonnage (millions) Grade 5 PGE & Au (g/t) Pt oz (millions) Merensky Proved 17.1 5.12 1.6 Probable 72.7 4.97 6.6 UG2 Proved 20.5 5.15 1.6 Probable 99.9 5.11 7.8 Total 210.2 5.07 17.7

Mineral Resources as at 30 June 2004 Orebody Category Tonnage (millions) Grade 5 PGE & Au (g/t) Pt oz (millions) Merensky Measured 60.7 7.46 8.3 Indicated 101.5 7.66 14.3 Inferred 75.9 8.26 11.5 UG2 Measured 49.5 8.90 6.7 Indicated 70.2 9.45 10.1 Inferred 62.1 9.28 8.8 Pt 57.3% Ru 8.2% Total 419.9 8.42 59.7 Pd 24.8% Ir 1.7% Rh 4.3% Au 6.7% No 1 & 2 Tailings Complex – Mineral Resources as at 30 June 2004 Impala metal splits – Merensky Orebody Category Tonnage (millions) Pt grade (g/t) Pt oz (millions) Tailings Indicated 48.1 0.42 0.6

Notes: – Where Mineral Reserves and Mineral Resources are quoted for the same property,Mineral

Resources are additional to Mineral Reserves. YEAR THE REVIEW OF

– The Mineral Reserves quoted reflect the grade delivered to the mill rather than an in situ channel grade quoted in respect of Mineral Resources. EXPLORATION, AND RESERVES RESOURCES

– The modifying factors utilised to convert the Mineral Resource to a Mineral Reserve are derived from an in-house Ore Inventory System. The system is able to provide all the diluting factors that are applied to the in situ estimates to yield the final product delivered to the mill.

Pt 47.4% Ru 13.6% – Grade estimates for the Impala Platinum Rustenburg operations are obtained by means Pd 25.7% Ir 3.4% of ordinary kriging using an extensive database of both underground samples (33 800 Rh 9.0% Au 0.7% Merensky sections and 29 400 UG2 sections) and surface boreholes (746 Merensky and 650 UG2 intersections). Sampling allows for a vertical definition of the grade distribution Impala metal splits – UG2 throughout the reef and the surrounding host units.

IMPLATS ANNUAL REPORT 2004 EXPLORATION MINERAL RESERVES AND MINERAL RESOURCES

Impala Platinum mining and prospecting areas 70 Merensky UG2

N

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●●● ● ● ● ● ● ● ● ● ● ● ● ● ●●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ●● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ●●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ●● ● ● ● ● ● ●●●●●●● ● ● ● ●● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ●●● ● ● ● ● ● ● ●● ● ● ● ● ●● ● ● ● ● ● ●● ● ●●● ● ● ● ● ●● ● ● ●● ● ●● ● ● ● ● ● ●● ● ● ● ●●● ● ● ● ● ● ● ●● ● ● ● ●● ● ● ● ● ● ● ●●● ● ● ● ●● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●●● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●●● ● ● ● ● ● ● ● ● ● ● ●●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ●● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ●● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Mined out areas Inferred Mineral Resources 0 510 Mineral Reserves Seismic anomalies Kilometres Measured Mineral Resources Prospecting rights Indicated Mineral Resources Outcrop Boreholes

– Compared with the previous published figures, the material differences are attributed to evaluation work undertaken during the last year, which has allowed a significant transfer of resources from the Indicated to the Measured category.This is reflected in the figures REVIEW OF THE YEAR THE REVIEW OF quoted above both in resource tonnage and grade.

– An external audit was conducted by SRK (SA) at the conclusion of the 2004 financial year

EXPLORATION, AND RESERVES RESOURCES on the Mineral Resource and Mineral Reserve figures.The methodology was found to be sound and the Mineral Resource estimates developed were compliant with the requirements and recommendations of the SAMREC Code.

– The Mineral Reserves and Resources quoted are held under four old order mining rights, two old order prospecting rights as well as an unused old order right. Impala Platinum will be applying for the conversion of these rights during FY2005. In terms of the new Mineral and Petroleum Resources Development Act, 28/2002 (the Act), a prospecting right may be granted for a period of up to five years, renewable for a further three years. Under the Act, a mining right may be granted for up to 30 years, renewable for a further 30 years subject to the holder meeting the requirements of the Act.The Impala Platinum Mineral Resources

IMPLATS ANNUAL REPORT 2004 for both the UG2 and Merensky are seen to be in excess of the 30-year requirement at planned production levels and would therefore be subject to renewal after a 30-year period. 71 Marula Platinum Mineral Reserves and Mineral Resources: Marula Platinum holds old order mining rights on the farms Winnaarshoek 250 KT,Clapham 118 KT,and portions of the farms Driekop 253 KT and Forest Hill 117 KT, comprising 2 765 hectares. No prospecting has been conducted on the portion of the farm Hackney 116 KT which is held under an unused old order right.

Marula Platinum Mining Area

Merensky UG2 N

FOREST HILL 117 KT FOREST HILL 117 KT

● ● ● ●●●● ● ●●●●● ● ● ● ●●●●● ● ● ● ● ● ●● ● ● ● ●●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●●●●●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ●● ● ● ● CLAPHAM 118 KT ● ● ● ● ● ● ● ● ● ● ●●● ● ● ●● ● ● ●● ● ● ● ● ● ●●●●● ● ● ● ● ● ●● ●● ●●●● HACKNEY ● ● ●● ●●●●● ● ● ● ● ●●● ● ●● ● HACKNEY ● ●●● ● ●●●●● ● ● ● ●●●● ●●●●●● 116 KT ● ● ● ● ● ●●●●●●●●● ● ● ● ● ● ●● ●●●●●●● ● ● 116 KT ● ● ● ● ● ●●●●●●●●● ● ● ● ● ● ●●●●●●●●●● ● ● ●● ● ● ● ● ● ●●● ● ●● ● ● ● ● ● ● ● ● ● ● ●●●●● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ●● ●●● ● ●● ●● ● ● ●●● ● ● ● ● ● ● ● ●●●●● ● ● ● ● ● DSJATE ● ● ●●●● ● ● ● ● ● DSJATE 249 KT ● ● ●●● ● ● ●●●● ● ●●●● ● ●● ● ● ● ● ● ●●● 249 KT ● ● ● ● ● ●●● ● ● ●●● ● ● ● ● ●●●● ● ● ● ● ●●●●●●●● ● ● ● ●●●●● ● ● ● ● ● ●●● ● ● ● ● ● ● ●●●●●● ● ● ● ● ● ● ●●●●●●●●● ● ● ● ●●●●●●●● ● ● ● ● ● WINNAARSHOEK 250 KT ● ● ● ●●●●●●●● ● ● ● ● ● ● ● ● ●●●●●● ● ● ●●● ● ● ● ● ● ● ●● ● ● ● ● ●● ● ●● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● WINNAARSHOEK 250 KT ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Pt 53.8% Ru 5.5% ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Pd 30.4% Ir 0.9% ● ● ● ● ● ● Rh 2.6% Au 6.8% ● DRIEKOP 253 KT DRIEKOP 253 KT Marula metal splits – Merensky

Probable Mineral Reserve Boxcut Dyke Indicated Mineral Resource Farm boundaries Boreholes Inferred Mineral Resource Potholes/Dunite pipe 012 Kilometers

Mineral Reserves as at 30 June 2004 REVIEW OF THE YEAR THE REVIEW OF Orebody Category Tonnage (millions) Grade 5 PGE & Au (g/t) Pt oz (millions) UG2 Probable 41.3 4.76 2.3 EXPLORATION, AND RESERVES RESOURCES Mineral Resources as at 30 June 2004

Pt 36.8% Ru 11.3% Orebody Category Tonnage (millions) Grade 5 PGE & Au (g/t) Pt oz (millions) Pd 40.4% Ir 2.6% Merensky Indicated 44.2 5.47 4.2 Rh 7.7% Au 1.2% UG2 Indicated 22.4 9.27 2.5 Marula metal splits – UG2 Total 66.6 6.75 6.7

IMPLATS ANNUAL REPORT 2004 EXPLORATION MINERAL RESERVES AND MINERAL RESOURCES

Hackney Mineral Resources as at 30 June 2004 72 Orebody Category Tonnage (millions) Grade 5 PGE & Au (g/t) Pt oz (millions) Merensky Inferred 5.2 5.73 0.5 UG2 Inferred 3.5 8.88 0.4 Total 8.7 6.99 0.9

Notes: – Where Mineral Reserves and Mineral Resources are quoted for the same property,Mineral Resources are additional to Mineral Reserves.

– The Mineral Reserves quoted reflect the grade delivered to the mill rather than an in situ channel grade quoted in respect of Mineral Resources

– The modifying factors used in the UG2 mineral reserve calculation are based on the revised mine plan which envisages conventional breast mining operations.The detailed mine plan is being optimized and the mineral reserve estimate will be updated in due course.

– Estimated geological losses and rock engineering pillars have been accounted for in the mineral resource calculations;which reflect the revised mine plan methodology.The UG2 mineral resources merely accounts for the UG2 Chromitite Layer whilst the Merensky Reef mineral resources are based on a minimum width of 80cm.

– Grade estimates at Marula Platinum were obtained by means of ordinary kriging of UG2 and Merensky Reef borehole intersections.

– Minor changes to the individual PGE metal splits have occurred due to additional information being accrued during the past year.

– Marula Platinum will be applying for the conversion of the two old order mining licences during FY2005, whilst a new order prospecting right application for the Hackney portion is in preparation. In terms of the new Act, a prospecting right may be granted for a period of up to five years, renewable for a further three years.A mining right may be granted for up to 30 years, renewable for a further 30 years subject to the holder meeting the requirements of the Act. The Marula Mineral Resources for both the UG2 and Merensky are seen to be in excess of the 30-year requirement at planned production levels and would therefore be subject to renewal after a 30-year period. REVIEW OF THE YEAR THE REVIEW OF EXPLORATION, AND RESERVES RESOURCES

IMPLATS ANNUAL REPORT 2004 Zimplats Ore Reserves and Mineral Resources: Zimplats holds virtually the whole of the Hartley Complex as claims and mining leases through various subsidiary companies, all of which are 73 wholly owned by Zimplats apart from Makwiro Platinum (Pvt) Limited which is owned 70% Zimplats – Main Sulphide Zone Mineral Reserves and Resources

N

● ● ● ●● ● ● To Harare

●

● ● ● ● ● ●

● ●

● ● ●● ● ● ● ● ● ●● ● ● ● ●● ●●● ● ●●● ● ● ●● ●● ● ● ●● ●● ●● ● Selous Metallurgical Complex ●●● ● ● ● ●●● Hartley Platinum Mine ● ● ● ●● ● ●● ●●● ● ● ●● ● ●●● ● ● ● ● ●●● ● ● ●●● ● To Chegutu ●● ●●● ● ●●● ●●● ●● ●●●● ●● ● ● ● ●● ● ● ● ● ●● ● ●● ● ●●●

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● ●● ● YEAR THE REVIEW OF ●● ● ● ● ● ● ● ● ● ●● ● Msweswe River Selous/ Ngezi Road ● ● ●● ●● ● ● ● ● ● ● ● ●● ●● ● ● ● ● ● ● ● ● ● ● ● ● EXPLORATION, AND RESERVES RESOURCES ● ● ● Open Pit Ore Reserves ● ● ● ● Underground Ore Reserves ● ● ● ● Measured Mineral Resources

● Indicated Mineral Resources ●

● ● ● Inferred Mineral Resources ● ● ● Pt 48.6% Rh 4.7% ● ●●● MSZ outcrop Pd 39.9% Au 6.7% Ngezi Platinum Mine Ngezi: SMC all weather road ● ● ● ● ●● ●● ●● Tenements

Zimplats metal splits ● Ngezi River Faults MSZ Boreholes 0 5000m

IMPLATS ANNUAL REPORT 2004 EXPLORATION MINERAL RESERVES AND MINERAL RESOURCES

by Zimplats and 30% by Implats. Makwiro owns Special Mining Lease 1 containing the Hartley Platinum Mine and the Selous Metalurgical Complex (SMC) and has a tribute 74 covering the open pit Ngezi Platinum Mine.

Ore Reserves as at 30 June 2004 Orebody Category Tonnage (millions) Grade 3 PGE & Au (g/t) Pt oz (millions) MSZ Proved 45.1 3.23 2.3 Probable 295.7 3.35 15.6 Total 340.8 3.34 17.9

Mineral Resources as at 30 June 2004 Orebody Category Tonnage (millions) Grade 3 PGE & Au (g/t) Pt oz (millions) MSZ Measured 102.9 4.19 6.8 Indicated 860.6 4.13 55.7 Inferred 1 528.0 4.11 98.6 Total 2 491.54.12 161.1

Notes: – The figures quoted above refer to the total Ore Reserve and Mineral Resource. As at 30 June 2004, Implats effectively owned 83.44% of Zimplats.

– Mineral Resources are quoted inclusive of Ore Reserves.

– A full revision of the Resources and Reserves is underway at Zimplats.The Zimplats Mineral Resources and Ore Reserves reflected in the tabulation are based on 30 June 2003 estimates with depletions.

Mimosa Platinum Ore Reserves and Mineral Resources: The lease encompasses four areas, North Hill, South Hill, Mtshingwe Block and Far South Hill, separated by major faults, covering an area of 6 590 hectares.

Ore Reserves as at 30 June 2004 Orebody Category Tonnage (millions) Grade 3 PGE & Au (g/t) Pt oz (millions) South Hill (1.8 m cut) Proved 16.1 3.75 1.0 Probable 13.7 3.51 0.8 Total 29.8 3.64 1.8

REVIEW OF THE YEAR THE REVIEW OF Mineral Resources as at 30 June 2004 Orebody Category Tonnage (millions) Grade 3 PGE & Au (g/t) Pt oz (millions) South Hill EXPLORATION, AND RESERVES RESOURCES (1.8m cut) Measured 31.8 4.07 2.1 Indicated 31.7 3.81 1.9 Inferred 18.2 3.95 1.2 Inferred (Oxides) 7.2 3.81 0.4 Pt 50.0% Rh 4.1% Total 88.9 3.93 5.6 Pd 38.1% Au 7.8% North Hill Mimosa South Hill metal splits (1.8m cut) Inferred 40.0 2.96* 2.2 MSZ * (2E grade)

IMPLATS ANNUAL REPORT 2004 Notes: – The figures quoted above refer to the total Ore Reserve and Mineral Resource for North and South Hill. As at 30 June 2004, Implats owned a 50% shareholding in Mimosa 75 Investments Limited (with Aquarius Platinum Limited owning the remaining 50%).

– The figures have been completely revisited following a joint due diligence exercise and re-interpretation of the Resource and Reserve areas and the grade estimates between Mimosa,Implats, Aquarius,SRK (Harare) and independent consultants Venmyn Rand Ltd.

– Compared with the previous published figures, the material differences are: – • There has been an increase in the Ore Reserve tonnage as a result of extending the area that can convert from Measured Resource to a 1.5 km strike limit from the inclines of the Blore and Wedza shafts and extending this area to the western boundary of South Hill.

South Hill Deposit MSZ Mineral Resources and Ore Reserves

N

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ●● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● YEAR THE REVIEW OF ● ● ● ● ● ● ● ● ● ● ● ● ●

● EXPLORATION, AND RESERVES RESOURCES ● ●

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0 1

Kilometres

Oxides and bad ground Measured Resource Inferred Resources Proved reserve due to major faults Indicated Resource Mined out areas Probable reserve Low grade zones Boreholes

IMPLATS ANNUAL REPORT 2004 76 REVIEW OF THE YEAR EXPLORATION, RESERVES AND RESOURCES EXPLORATION MINERALRESERVES AND MINERALRESOURCES – – – – The Mineral Resources have taken intoaccountthefollowing extraction discounts: – The Mineral Resources are quotedinclusive ofOre Reserves. – takinginto The above Ore Reserves have beenquotedasfully diluteddelivered tomill, – – – – G deposits. PGM which 18years have beenintheevaluation andexploitationprojects,of ofBushveld Complex The competentperson has30years experience inawiderange ofmineral andmining ImpalaPlatinum Limited. MiningServices: General Manager: M.Sc. (Hon), B.Sc. Pr.Sci.Nat. Mellowship P. and signedoff by theImplatscompetent person: the Mineral Reserve andMineral were Resource reviewed figures quotedin thisreport.They Various Competent Persons asdefinedby theSAMRECCode andJORCCode have prepared for itsreporting. notfall underany regulatory codesbuthasadoptedtheJORCCode reporting company,does aMauritius-based MimosaInvestments Limited, Resources andOre Reserves (JORCCode). Mineral Resources inaccordance withthe Australasian Code for Reporting ofMineral itsOre reports Reserves and asan Australian Exchange listedcompany, Stock Zimplats, terms onpage 78). (SeeGlossaryof for Reporting ofMineral Reserves andMineral Resources (SAMRECCode). operations isdoneinaccordance withtheprinciples andguidelinesoftheSouth African Code South African The ofMineral reporting Reserves andMineral Resources for Implats’ Regulatory compliance IMPLATS ANNUAL REPORT 2004 Trial miningiscurrently ongoing atwiderwidthsinorder tooptimizeextraction from the – In situ account anadditional11%lossfor pillars and7%tonnage lossfrom minetomill. n .8Mz(Pt). Moz and 0.68 Hill Resources Hill of29.61Mtand0.94Moz(Pt)theNorth Resource of13.33Mt hasindicatedapotentialincreaseMineral ata2.4mcutintheSouth Resource base.This Oxidematerial isnow quotedseparately ason-going metallurgical testwork isbeing • Low grade zones have beenredefined following in-filldrilling todeterminethelateral • The Inferred Resources exclude 38Mtpreviously for reported MtshingweandFar Block • campaign theoxides withoutcompromising thesulphideore processing recoveries grade was commissionedonthebasisthatPhase2plantcouldbeusedtoseparately The Phase3plantup- conducted toverify theeconomicviabilityoftheseresources. extent ofthesefeatures. South Hill (thisduetolimitedinformation usedtoderive theseestimates). 8% – Washouts andabnormalreef 3% – Adverse ground conditions 3% –Dykes andfaults grade hasbeenusedfor thecalculationofMineral Resources. Attributable ounces In addition to its own Mineral Reserves and Mineral Resources detailed above, Implats has access to attributable platinum ounces through its equity participation in Two Rivers, 77 Aquarius Platinum and Lonplats, thus bringing the total for Implats to 247.3 million attributable platinum ounces. These reserves and resources have not necessarily been defined in terms of the SAMREC code and have not been verified by the competent person. The extent of this interest is set out below.

Implats consolidated platinum ounces (Resource and Reserves) as at 30 June 2004 Source Platinum ounces (millions) Impala Platinum 78.0 Marula Platinum 9.9 Zimplats 134.3 Mimosa Platinum 3.9 Lonplats* 15.4 Aquarius Platinum* 2.0 Two Rivers* 3.7 Total 247.2 * Based on latest available public information REVIEW OF THE YEAR THE REVIEW OF EXPLORATION, AND RESERVES RESOURCES

IMPLATS ANNUAL REPORT 2004 78 REVIEW OF THE YEAR GLOSSARY AND TERMS UG2: Stoping: Smelting: from theselayers toreturn tosurface. Seismic surveys: equity. shareholders’ Return onequity(ROE): investments asatthebalancesheetdate. Return onassets(ROA): PGM: iridium and osmium. ruthenium, PGE: Ore Reserves: NOx: NGO: Milling: Merensky regardless Reef asitisgenerally oft usedrefers oftheMerensky tothatpart unitthatiseconomically exploitable, Merensky Reef: LTIFR: Kriging: IRS: In situ: interest inmaterial delivered tothemill. Headgrade: legislation orconvention. HDSA: gross unitofmeasure. aswell asthecostofsmeltingandrefining expresse corporate office) expressed perunitofmine-to-market measure, (marketing, Group unitcostperrefined platinumounce/refined PGMounce: g/t: FIFR: Development: Dense mediaseparation: Decline: corporate office expressed perunitofmeasure. Cost pertonne/refined platinumounce/refined PGMounce: Concentrating: Pillars are usually rectangular andarranged inaregular pattern. theroof. to support Bord-and-pillar: BEE: Glossary ofterms rme e on.h nto esrmn fgae equivalent permillion. toparts unitofmeasurement ofgrade, grammes pertonne.The Impala Refining ServicesLimited Black EconomicBlack Empowerment ltnmgopeeet opiigsxeeetlmtl ftepaiu ru.Temtl r ltnm aldu,rhodium, palladium, The metalsare platinum, Platinum group elements comprising sixelementalmetalsoftheplatinum group. Number offatal injuries expressed asarate permillionmanhours worked. A distinctchromititehorizon intheCritical ZoneoftheBushveld Igneous Complex oftencontainingeconomicgrades ofPGM. Nitrous oxides containedinexhaust emissions. Platinum group metalsbeing themetalsderived from PGE. Non-governmental organization. Number oflosttimeinjuries expressed asarate permillionmanhours worked. itrclyDsdatgdSuhArcn,bigSuhArcnntoaswowr,pirt 94 disadvantaged whether by prior to1994, beingSouth HistoricallyAfrican Disadvantaged South nationalswho were, Africans, In itsnatural positionorplace. Grinding toexpose ofore thevaluable intothefineparticles minerals. A geostatistical estimationmethodthatgives thebestunbiasedlinearestimatesofpointvalues averages. orofblock A shallow dippingminingexcavation usedtoaccesstheorebody. Underground excavations toeffect theremoval ofore. A smeltingprocess toupgrade thefraction further containingthevaluable minerals. h au,uulyepesdi at e ilo rgamsprtne ofthecontainedPGEmineralisation ofeconomic usually expressed permillionorgrammes inparts pertonne, The value, The termfor Mineral Reserves (SAMRECCode) undertheJORCCode. Underground excavation for thepurpose ofaccessingore reserves. rcs fsltigtegon r ntofatos n otiigtevlal ieas theotherwaste. onecontainingthevaluable minerals, A process ofsplittingtheground ore intwo fractions, oio nteCiia oeo h uhedInosCmlxotncnann cnmcgae fPM TheA horizon term intheCritical ZoneoftheBushveld IgneousComplex oftencontainingeconomicgrades ofPGM. Underground mining method where ore is extracted from rectangular shaped rooms, leaving parts oftheore leaving aspillars parts Underground miningmethodwhere ore isextracted from rectangular shapedrooms, A geophysical exploration methodwhereby layers rock canbemappedbased onthetimetaken for energy reflected ROE iscalculatedusing current year attributable incomeexpressed asapercentage of theopeningbalance A meansofseparating reef from waste exploiting differences indensity. ROA iscalculatedusingcurrent year attributable incomeexpressed asapercentage offixed assetsand IMPLATS ANNUAL REPORT 2004 h oto iig ocnrtn,setn,rfnn,marketing and refining, smelting, concentrating, The costofmining, h oto iig concentrating andotheroperating expenses The cost ofmining, he rock type. d per A (JORC Code). SAMREC was establishedin1998andmodelledits Code onthe Australasian Code for Reporting ofMineral Resources andOre Reserv Mineral Resources andMineral Reserves inSouth recommendations andguidelinesfor PublicReporting ofExploration Results, Afri SAMREC Code Resource andReserve definitions An that mayqualityandreliability. belimitedorofuncertain workings anddrill h pits, trenches, based oninformation gathered through appropriate fromasoutcrops, techniques locationssuch Itisinferred from geological evidence andassumedbutnotverified geological and/orgrade continuia low level ofconfidence. An IndicatedandMeasured categories. intoInferred, in respect ofgeoscientific evidence, inorder ofincreasing conf Mineralinterpreted Resources from awell constrained are andportrayed subdivided, geological model. estimatedfrom specificgeological evidence andknowledge,and othergeological characteristics ofaMineral Resource are known, and quantitythatthere are reasonable andrealistic prospects for eventual location,quantity,grade,con economicextraction.The A Mineral Reserves. evaluation andeconomicextraction assessment, therelevant experience must beintheestimation, estimation ofMineral Reserves, orsupervisingt IftheCompetent Person isestimating, assessmentandevaluation ofMineral Resources. must beintheestimation, relevant exp supervisingtheestimationofMineral Resources,the theCompetent Person isestimating,or person isundertaking.If of five years experience relevant tothestyleofmineralisation andtypeofdepositunderconsideration andtotheactivitywh or any otherstatutorySouth Competent PersonAfrican shouldhave aminimu orinternationalbody thatisrecognised by SAMREC.A Engineering Council ofSouth theSouth AfricaAfrican (ECSA),or Council for Professional LandSurveyors and Technical Surveyors yraitclyasmdmnn,mtlugcl cnmc aktn,lgl niomna,sca n oenetlfcos These socialandgovernmental factors. assessments demonstrate thatextraction atthetimeofreporting isreasonably justified. environmental, legal, marketing, economic, metallurgical, by realistically assumedmining, includingconsideration ofand modification have beencarried out, which may include feasibility studies, Appropriate assessments, Itisinclusive ofdilutingmaterials andallows for lossesthatmay occurwhen thematerial ismined. high level ofconfidence. A assessments demonstrate thatextraction atthetimeofreporting governmental isreasonably justified. factors.These sociala environmental, legal, marketing, economic, metallurgical, realistically assumedmining, andmodificationby, consideration of, includ have beencarried out, which may includefeasibility studies, assessments, may occurwhen thematerial ismined.Appropriate Itisinclusive ofdilutingmaterials andallows forestimated withalower l level ofconfidencethanaProved Mineral Reserve. A Mineral Reserves. Mineral Reserves are sub-dividedin order ofincreasing confidenceintoProbable Mineral Reserves andP is reasonably justified. andgovernmental factors.These assessmentsdemonstrate thatextra atthe timeofreporting marketing,legal,environmental,social economi metallurgical, realistically assumedmining, andmodificationby, includingconsideration of, have beencarried out, studies, maydiluting materials includefe andallows for lossesthatmay occurwhen thematerial assessments,which ismined.Appropriate A locations are spacedclosely enoughtoconfirmgeological andgrade continuity. The workings anddrill holes. pits, trenches, information gathered through appropriate fromasoutcrops, techniques locationssuch samplingand Itisbased ondetailedandreliable exploration, mineral contentcanbeestimatedwithahighlevel ofconfidence. A assumed. widely orinappropriately spacedtoconfirmgeological and/orgrade continuity butare spacedclosely enoughfor continuity to locationsar workings anddrill holes.The pits, trenches, gathered through appropriate fromasoutcrops, techniques locationssuch samplingandtestinginformat Itisbasedonexploration, mineral contentcanbeestimatedwithareasonable level ofconfidence. Measured Mineral Resource Mineral Reserve Mineral Resource Proved Mineral Reserve Probable Mineral Reserve Competent Person Indicated Mineral Resource Inferred Mineral Resource – The South African Code for Reporting ofMineral Resources andMineral Reserves setsoutminimum standards, steeooial iebemtra eie rmaMaue n/rIdctdMnrlRsuc.Itisinclusive of is theeconomically mineablematerial derived from aMeasured and/orIndicatedMineral Resource. sacnetain(rocrec)o aeilo cnmcitrs no nteErhscuti uhfr,quality is aconcentration (oroccurrence) ofmaterial ofeconomicinterest inorontheEarth’s crustform, insuch is aperson who isamemberoftheSouth orthe African Council for Natural ScientificProfessions (SACNASP), steeooial iebemtra eie rmaMaue iea eore Itisestimatedwitha is theeconomically mineablematerial derived from aMeasured Mineral Resource. steeooial iebemtra eie rmaMaue n/rIdctdMnrlRsuc.Itis is theeconomically mineablematerial derived from aMeasured and/orIndicated Mineral Resource. sta ato iea eore o hc ong,grade andmineral contentcanbeestimatedwith ofaMineralis thatpart Resources for whichtonnage, sta ato iea eorefrwihtnae este,sae hsclcaatrsis grade and physical characteristics, shape, densities, ofaMineralis thatpart Resource for whichtonnage, sta ato iea eorefrwihtnae este,sae hsclcaatrsis grade and physical characteristics, shape, densities, ofaMineralis thatpart Resource for whichtonnage, IMPLATS ANNUAL REPORT 2004 osses that (PLATO) asibility ich that ich erience testing tinuity y Itis ty. idence roved e too ction oles ion ing ca. nd he be es or of m c,

REVIEW OF THE YEAR 79 GLOSSARY AND TERMS Implats understands its responsibilities concerning the effect that its operations have both socially and on the environment, and serious efforts are made to limit and counter the consequences of mining and processing, which are by nature invasive. One such effort is the “woodchips” project which involves using two waste products (sewage sludge and woodchips) to rehabilitate the tailings dams at Impala Platinum.This project has also created jobs and business opportunities for the local community. Suan Mulder, Environmental Manager at Impala, and the community project team leaders, inspect the tailings dam where the grassing trials have just been completed. ANNUAL FINANCIAL STATEMENTS

Contents 81 Approval of the annual financial statements 82 Report of the independent auditors 83 ANNUAL FINANCIAL Directors’ report 84 STATEMENTS AND Group SHAREHOLDERS’ INFORMATION Consolidated balance sheet 92 Consolidated income statement 93 Consolidated statement of changes in shareholders' equity 94 Consolidated cash flow statement 95 Notes to the consolidated financial statements 96 Company Balance sheet 136 Income statement 136 Statement of changes in shareholders’ equity 137 Cash flow statement 138 Notes to the financial statements 139

IMPLATS ANNUAL REPORT 2004 82 ANNUAL FINANCIAL STATEMENTS himnChiefExecutive Officer CRumble K 2004 27 August Johannesburg Chairman P GJoubert policies ofthegroup are setoutonpages 96to105ofthisreport. and thattransactions are executed andrecorded inaccordance withgenerally acceptedbusinesspractices andprocedures.The acc the group maintainsaccountingandadministrative control systemsdesignedtoprovide reasonable assurance thatassetsare safe byapplying consistentaccountingpoliciessupported reasonable andprudent judgements andestimates.To discharge thisresponsi conform withapplicableaccountingstandards andare presented financial statementshave beenprepared onagoing concernbasis, The auditors are responsible for on thefinancialstatementsincourse auditingandreporting ofexecuting theirstatutory of thesestatementswas delegated totheofficers ofthecompany andthegroup. Responsibility for theinitialprep andapproval ofthefinancialstatements. preparation andpresentation, overall co-ordination, The directors are responsibl assetoutintheannual financialstatements. andoftheresults for theperiod, the financialyear, The directors are responsible for thefair presentation toshareholders oftheaffairs ofthecompany andofthegroup asatth directors on27 August 2004. which appearonpages 84to143 were approved by theboard of The annual financialstatementsfor theyear ended30June 2004, Approval oftheannual financialstatements Group Secretary R Mahadevey correct anduptodate. returns andthatallsuch are true, as amended, lodged withtheRegistrar ofCompanies returns allsuch asare required ofapubliccompany in termsoftheCompanies Act 61 of Implatsha dohereby confirmthatfor thefinancialyear ended30June 2004, inmy capacityasGroup Secretary, theundersigned, I, Certificate by group secretary IMPLATS ANNUAL REPORT 2004 duties.The e for the e endof guarded ounting aration 1973, bility, s Report of the independent auditors 83 To the members of Impala Platinum Holdings Limited

We have audited the annual financial statements and group annual financial statements of Impala Platinum Holdings Limited as set out on pages 84 to 143 for the year ended 30 June 2004.These financial statements are the responsibility of the directors of the company. Our responsibility is to express an opinion on these financial statements, based on our audit.

Scope We conducted our audit in accordance with Generally Accepted Auditing Standards in South Africa and in accordance with International Standards on Auditing issued by the International Federation of Accountants.Those standards require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatements.An audit includes:

• Examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements;

• Assessing the accounting principles used and significant estimates made by management; and

• Evaluating the overall financial statement presentation.

We believe that our audit provides a reasonable basis for our opinion.

Audit opinion In our opinion, the financial statements fairly present, in all material respects, the financial position of the group and of the company at 30 June 2004 and the results of their operations and cash flows for the year then ended in accordance with South African Statements of Generally Accepted Accounting Practice, International Financial Reporting Standards and in the manner required by the South African Companies Act.

PricewaterhouseCoopers Inc Chartered Accountants (SA) Registered Accountants and Auditors

Johannesburg 27 August 2004

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 84 ANNUAL FINANCIAL STATEMENTS * willreduce to20%oncompletionofBEEtransaction *** agreement entered intofor thesaleofthisshareholding by subjectto20%participation empowerment partners ** * described below: The company’s holdingsinvarious miningandexploration activitiesasat30June 2004ar metals (PGMs)toindustrial economies. Impala Platinum HoldingsLimited(Implats/company/group) isprincipally inthebusinessofproducing andsupplying platinum gro Business ofthecompany Profile report Directors’ h rseso h ceeaeMsr GJuet JVRoberts andJMMcMahon. The trusteesare ofthe scheme Messrs PGJoubert, intheshareare option scheme setoutinNote13ofthefinancialstateme Detailsofparticipation last annual general meeting. rules oftheshare were optionscheme amended atth share capital ofthecompany intermsofemployee share optionsschemes.The allotorgrant options toacquire uptoamaximum of2177000ordinary shares intheuni The directors are authorised toissue, Share option scheme proposed resolutions are setoutinthenoticeconveningthese general theannual general authorities.The meeting. willbeaskedThese toconsiderresolutions general r authorities expire attheforthcoming annual general meeting.Shareholders shareholders authorised thedirectors toissuefor cashupto15%ofthe company’s issuedshare capitalinany one In addition, the JSESecurities Exchange South Africa (JSE). acquire upto10%oftheshares issuedby thecompany intermsoftheCompanies Act No61 of1973andtheListingRequirements Shareholders granted ageneral authority for thecompany orany ofitssubsidiarie until theforthcoming annual general meeting. 10%oftheunissuedshare capitalisunderthecontrol ofth In termsofaresolution passedatthelastannual general meeting, 66593989). capital ofthecompany was 66621177ordinary shares(2003: of20cents each theiss Following allotments, During theyear 27188new ordinary shares were issuedintermsoftheImplatsshare optionscheme. Issued capital The company’s authorised share capitalof100000ordinary sharesremained of20centseach unchanged during theyear. Authorised capital Capital etr ltnmLmtdWL2* G iig processing and refining PGMmining, PGMminingandprocessing PGMmining PGMmining PGMmining 27** PGMminedevelopment 27** PGMmining PGMmining 9 Aquarius 25*** Platinum PGMmining processing andrefining PGMmining, smelting, Activity Purchase ofconcentrate, 50 WPL 100* EPL 45 AQP (SA) 83 Interest % Aquarius Platinum Limited Mimosa Two Rivers 100 Aquarius 88 Platinum (SA)(Pty)Limited 100 Marula Western Platinum Limited name Short Eastern Platinum Limited Zimplats Two Rivers Platinum (Pty)Limited Mimosa Investments Limited Makwiro Impala Zimbabwe Platinum MinesLimited Makwiro Platinum Mines(Pvt)Limited IRS Marula Platinum Limited Impala Refining ServicesLimited Impala Platinum Limited Company IMPLATS ANNUAL REPORT 2004 Effective aemtl,andtollrefining base metals, refining andsaleofresultant PGMsand e directors enewing year. nts. ssued s to ued up of e e Shareholding in the company The issued capital of the company is held by public and non-public entities as follows: 85

Number of shares (000s) % Public 65 553 98.4

Non-public 1 068 1.6

Directors 60 0.1 Trustees of share scheme 8– Right to appoint a director 1 000 1.5

Total 66 621 100.0

The following shareholders beneficially hold more than five per cent of the issued share capital:

Shareholders Number of shares (000s) % Old Mutual Group 4 846 7.3 Public Investment Commissioners 4 474 6.7 Tegniese Mynbeleggings Limited 3 336 5.0

Zimbabwe Operations Zimbabwe Platinum Mines Limited (Zimplats) The company holds an 83% (2003:51%) equity interest in Australian-listed Zimplats.During the year the company acquired an additional 32% stake in Zimplats at A$4.11 per share (R631.9 million).

Makwiro Platinum Mine (Pvt) Limited (Makwiro) The company holds a 30% direct interest in Makwiro which comprises the Ngezi open cast mine and the Selous Metallurgical Complex. Ngezi is situated 77 kilometres from the Selous Metallurgical Complex and a feasibility study has indicated a 90 000 platinum ounce per annum project over a 20-year life.

The direct (30%) and indirect interest (through Zimplats) in Makwiro is therefore 88%.

Risk amelioration The following factors militate against the sovereign risk exposure of the Zimbabwean operations, namely:

• The use of off-shore bank accounts for both operations • Dividends from both operations have been received in the year under review • The practical security offered by the contracts with IRS

Two Rivers Platinum The company owns a 45% interest in the Two Rivers project with the balance held by Anglovaal Mining Limited (AVMIN).AVMIN has, following corporate activity between itself,African Rainbow Minerals and Harmony, become African Rainbow Minerals Resources.

Barplats Investments Limited The company sold its entire 83.2% shareholding in Barplats for a cash consideration of R2.10 per share (R389 million) to a consortium comprising Brier Global Limited, Flower Valley Investment Inc, Photon Global Limited, Rivercity Holdings Corp and the Kleo Trust (the Salene Platinum Consortium).

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 86 ANNUAL FINANCIAL STATEMENTS omnwl nenf mlt o h aia eamn ftevno iacn 6 ilo eadatrfv er n 2 m LonminwillindemnifyImplatsfor thecapitalrepayment ofthevendor financing–$68millionrepaid afterfive years and$27 • The ofHDSAs9%Lonplatsfor saleby $240.1millionandvendor Implatstoaconsortia financeof$95milliononfavourab • The saleby ImplatstoLonminplcof18.1%Lonplatsfor $554.4million • The terms andconditionsofthetransaction are asfollows: Lonplats) for $800million. terms ofwhichthe The company hasentered intonon-bindingagreements withHistorically Disadvantaged South Africans (HDSAs)andLonminplcin Lonplats Post-balance sheetevents borrowings. ifappropriate, and, The estimatedR2178millioncapitalexpenditure by Implatsenvisaged for the2005financialyear willbefunded from internal R1787million). Capital expenditure for theyear amountedtoR1822million(2003: Capital expenditure dividendsamounttoR1399millionfor theyear (2003:R1 765million). 2650centspershare).These per share (2003: for atotaldividendfor the2004financialyear of2100cen payable on27September2004, share was declared on27 August 2004, andafinaldividend(No73)of1600cents An interim dividend(No72)of500centspershare was declared on12February 2004, Dividends Refer topages 92t The results for theyear are fully dealtwithinthefinancialstatementsformingofannual report. part Results for theyear Financial affairs REPORT (CONTINUED) DIRECTORS’ of whichwould affect theability oftheusers ofthesestatementstomake proper evaluations anddecisions. theknowle No othermaterial events have occurred sincethedateofthesefinancial statementsandthedateofapproval thereof, at 20%. Implatshasstuctured adealwith Aquarius Aquarius’s toensure thatitsshareholding shareholding willdeclineto50.5%. place, Shouldthistransaction announcedatransaction During theyear,Aquarius tosell29.5%of AQP (SA)toaBEEpartnership. Implats. ownedIn theprevious 75%of financialyear,Aquarius Aquarius Platinum SA(Pty)Limited(AQP(SA)) andthe25%balancewas held and theChieftain’s Plainproject. Everest project, SouthandNorth theMarikana mine, Implats holds25%of AQP (SA) whose operations comprise Kroondal Platinum, Aquarius Platinum(SA)(Pty)Limited The company holdsan8.6%interest in AquariusAustralian Platinum Limited(Aquarius),an Exchange-listed compa andLondonStock Aquarius PlatinumLimited shareholders transaction andtherelevant isexpected tobeconcludedinthefirst halfoffinancial regulatory authorities.The andobtainingapprovals from Lon The transaction isstillsubjecttoconcluding legally bindingagreements withalltheparties, Lonplatswillsell9%ofthe18.1%shareholding acquired from ImplatstoIncwala for aconsideration of$240.1millionincash • inexchange for Incwala Resources (Pty)Limited, The willonselltheirshareholding toanewly HDSAconsortia formed company, • terms repayable over five toseven years 201millionincashandshares $240.1 after seven years company willsellits27.1%shareholding inEasternPlatinum Limitedand Western Platinum Limited(collectively IMPLATS ANNUAL REPORT 2004 year 2005. andshares o 143. resources remains illion take dge min per ny. by ts le Going concern The financial statements have been prepared using the appropriate accounting policies,supported by reasonable and prudent judgements and estimates.The directors have a reasonable expectation that the group has adequate resources to continue as a going concern in the 87 foreseeable future.

Associated and subsidiary companies Information regarding the company’s associated companies are given in Note 6 and regarding subsidiaries in Annexure A, both to the financial statements.

Property Details of the freehold and leasehold land and buildings of the various companies are contained in registers, which are available for inspection at the registered offices of those companies.

Directorate Composition of the board During the year, the following appointments were made to the board:

Directors Date of appointment RSN Dabengwa 1 January 2004 LC van Vught 1 January 2004 NDB Orleyn 1 April 2004 FJP Roux 11 May 2004 K Mokhele 1 June 2004

Shareholders will be asked to confirm these appointments at the forthcoming annual general meeting.

The directors who retire at the next general meeting are Ms CE Markus, Messrs PG Joubert, JV Roberts and JM McMahon. Mr Joubert, having attained the retirement age for non-executive directors, has decided not to stand for re-election. Ms CE Markus, and Messrs JV Roberts and JM McMahon, being eligible, offer themselves for re-election.

Interest of directors The interests of directors and senior management in the shares of the company were as follows and did not individually exceed 1% of the issued share capital or voting control of the company.

Number of shares Direct Indirect 30 June 2004 2003 2004 2003 Beneficial 63 345 66 651 14 240 14 240 Directors DH Brown 10 000 9 306 PG Joubert 14 000 14 000 CE Markus 18 011 18 011 MV Mennell 7 726 7 726 LJ Paton 9 000 12 000 100 100 MF Pleming 600 600 LC van Vught 140 140 Senior management 18 008 19 008 Non-beneficial – – – –

The board consists of 11 independent directors, one non-executive director and four executive directors.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 88 ANNUAL FINANCIAL STATEMENTS IETR’REPORT (CONTINUED) DIRECTORS’ ietrsa uydrn aeo hrsDt t3 ueN.o loainRelease Allocation of No. at30June Date shares Dateof during at1July Director’s oolg 68 30 Jun 01 – – 146.00 – 160 1550 81 – date isolates andsafety achievements.This value-added criteria asvolumes such andcosts, 18 Bonus isbased on individualachievement, 160 285 † – 17Jul 03 Aperformance-based staff retentionusinganendowerment scheme investment vehicle whichonly accrues totheindividualafter price – 281.00 Any leave nottaken during theyear whichtherecipient couldelecttohave paidoutincash. 275 140 – 31 * Otherbenefitsexcludes: 29 Aug 03 33000 shares 23 10 1550 156 226 2004 27 Aug 03 144 – 439 133 285 226 sold 225 15Jul 03 27522 63 1000 400 sold 27 Aug 03 – 5993 Allocation DH Brown theyear 64417 2003 1152 – KC Rumble – Executive Directors 2157 2826 3022 Name 81 285 18 69 162 4259 2956 5008 275 1761 354 31 432 40 Details ofshare optionsoutstandingandexercised by executive directors andseniormanagement are asfollows: 7575 10 580 226 2003 589 64 2370 99 L Molotlegi 133 40 285 2004 LC van Vught 1350 53 206 JV Roberts 225 944 FJP Roux 224 options 400 63 313 MF Pleming 186 1293 NDB Orleyn 345 DM O’Connor 1565 K Mokhele 1774 Bonus TV Mokgatlha 3286 Other benefits* MV Mennell Funds JM McMahon Retirement RSN Dabengwa Package PG Joubert Fees Non-executive Directors R Mahadevey Secretary Senior Management LJ Paton CE Markus DH Brown KC Rumble Executive (R000) 30 June 2004 andseniormanagement remuneration for theyear underreview wasDirectors’ inaggregate asfollows: prices andexchange rates over whichmanagement hasnocontrol. date ofjoiningthescheme. aac loae o fBlnea First Balance at of No. Balance Allocated 3 595211745597173 1 23163 33518 7157 5519 704 2171 15935 2 032 Additions Disposals IMPLATS ANNUAL REPORT 2004 7 2 8 9 1 33711230 13387 2510 2499 283 1022 7 073 0 e 3294441 16 Aug 04 484.10 18 Feb 04 507.00 2974 11801 5Sep03 16Jul 03 1 000 9 000 64149558 27 Aug 05 515.82 439 26 411 27 Aug 05 515.82 5993 59 410 † xrie oa Total Total exercised Gains on 5 0.014Mar02 200.00 2 350 3 8.05May 05 381.00 21Jan 05 594.25 16 Aug 04 1 638 6Jun 04 484.10 1 555 556.00 18Feb 04 2 851 507.00 18Feb 01 1 198 507.00 11Jan 03 9 454 344.00 1 982 3 394 21Jan 05 594.25 5 642 share the effects ofmetal five years from the Details of share options outstanding and exercised by executive directors and senior management are as follows: (continued) Director’s Balance Allocated Balance at First 89 Name at 1 July during Date of No. of Date at 30 June No. of Allocation Release 2003 the year Allocation shares sold 2004 shares price date Executive Directors (continued) CE Markus 29 976 389 27 Aug 03 1 375 5 Sep 03 1 375 146.00 30 Jun 01 1 800 5 Sep 03 3 600 200.00 14 Mar 02 1 019 5 Sep 03 3 056 344.00 11 Jan 03 1 214 5 Sep 03 694 507.00 18 Feb 02 8 227 507.00 18 Feb 04 1 477 556.00 6 Jun 04 2 735 484.10 16 Aug 04 41 589.99 25 Nov 04 1 498 594.25 21 Jan 05 1 865 381.00 5 May 05 24 957 389 515.82 27 Aug 05 LJ Paton 16 734 142 27 Aug 03 470 23 Jul 03 500 146.00 30 Jun 01 3 840 18 Sep 03 357 507.00 18 Feb 02 2 625 200.00 14 Mar 00 2 475 344.00 11 Jan 03 5 422 507.00 18 Feb 04 959 556.00 6 Jun 04 1 878 484.10 16 Aug 04 844 594.25 21 Jan 05 1 204 381.00 5 May 05 142 515.82 27 Aug 05 20 246 3 840 539.40 18 Sep 05 Senior 104 380 6 386 27 Aug 03 13 889 Various 3 600 50-100 Jul 1999> Management 2 133 16 Feb 04 17 025 101-200 Jun 2001> 7 683 22 Apr 04 19 857 301-400 Jan 2003> 17 759 401-500 Aug 2004> 106 693 48 452 501-600 Feb2004> Secretary R Mahadevey 8 978 8 978 8 978 401.00 2 Apr 05

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 90 ANNUAL FINANCIAL STATEMENTS No material change intheaforegoing interests hastaken placebetween 30June andthedateofthisreport. interested. There were nocontracts ofsignificanceduring orattheendoffinancialyear thedirectors inwhich ofthecompany were m benefitsaccruing toexecutiveNo share optionswere directors granted are setout toindependentnon-executive directors.Other REPORT (CONTINUED) DIRECTORS’ These fees have beenwaived by theexecutive directors. * includesattendanceatallboard committee meetings itisproposed to increase directors fees asfollows: as well astheneedtoattract suitablecandidatesfor board appointment, In view oftheincreased responsibilities beingplacedondirectors andtherevised intermsoftheKingIIreport JSElistings Directors servingon board committeesare paidassetoutbelow: includes attendanceatallboard committeemeetings). fees for servicesasadirector are currently R125000perannum perdirector withanamountofR400 000for theChairman(whic Dir thefees for servicesasdirectors are determinedbyIn termsofthe thecompany ingeneral of meeting. Articles Association, fees Directors’ S omte 000100000 100000 120000 100000 400000* 50000 50000 60000 50000 125000 Remuneration Committee Nomination Committee HSE Committee Audit Committee Board member 635 *354 2370 608.05 560.00 146.00 496.46 146.00 1375 281.00 1550 11000 1375 856 sale of 11000 time Price Excludesany gains onshares purchased asthesehave notyet beenrealised. * 694 Total Senior Management shares sold Purchased CE Markus DH Brown KC Rumble Executive Directors Director’s name The gains onshare optionsexercised are asfollows: JPtn5050160 7.0152 470.00 146.00 500 500 LJ Paton IMPLATS ANNUAL REPORT 2004 8 3 1 4.0581 *636 *1457 568.19 461.07 344.00 146.00 4618 6375 2837 4625 1 781 1 750 0 0 0 0.0506 *325 560.69 200.00 1400 900 500 2144146570 6.9*92 569.59 507.00 1496 1464 32 o fAlcto Market Allocation of No. 1 1 0.0680 123 269 734 608.05 608.05 608.05 507.00 344.00 200.00 1214 1019 1800 1 219 1 019 1 800 ebrChairman Member 1 July 2003 ebrChairman Member 5 0 700000* 150 000 000135000 1 135000 60 000 180000 60 000 60 000 75 000 price at 1 July 2004 share options requirements 35 Gain on (R’000) aterially 000 below. ectors’ h Directors’ benefits A group-owned residential property is made available to Mr KC Rumble on a rent-free basis. Mr Rumble has an option to purchase the property at market value at any time while in the employ of the company. 91

In the event of corporate action giving rise to a loss of office,demotion or the blighting of any career (in the opinion of the Remuneration Committee) of an executive director, that executive director is entitled to a severance package of 24 months salary.

Administration Special resolutions At the last annual general meeting, the following special resolutions were passed:

Acquisition of shares Allowing the company and its subsidiaries to acquire up to 10% of the shares in the company subject to the Companies Act 1973 and the Listing Requirements of the JSE, provided that the authority expires at the next annual general meeting and may not extend beyond 15 months from the date of granting of the authority.

Articles of association The articles of association were amended by special resolution to allow for the appointment of a maximum number of 16 directors on the board and to require only that directors’ written resolutions be approved by the majority of the board.

Financial, administrative and technical advisers In terms of a service agreement, Impala Platinum Limited acted as financial, administrative and technical advisors to the Implats group during the year on a fee basis. Messrs DH Brown, PG Joubert, LJ Paton, KC Rumble and Ms CE Markus had an interest in this contract to the extent that they are directors of Impala and of the company, but they do not beneficially own any shares in Impala.

Secretaries During the year Mr R Mahadevey was appointed Group Secretary to Implats and Impala, assisted by Mr AM Snashall. Impala acted as Secretaries to other subsidiaries in the Implats group.The business and postal addresses of the Secretaries are set out on page 152.

London Secretaries The business and postal addresses of the London Secretaries are set out on page 152.

Public Officer Mr J van Deventer acted as public officer for the group for the year under review.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 92 ANNUAL FINANCIAL STATEMENTS Consolidated balancesheet edt-auiyivsmns 8 16 6 7 5 Held-to-maturity investments Available-for-sale financialinvestments Deferred incometaxassets Investments inassociates plantandequipment Property, Non-current assets ASSETS eieetbnftolgtos 17 16 Retirement benefitobligations Deferred incometaxliabilities rd n te eevbe 11 Trade andotherreceivables Inventories 10 Current assets Alaonsi admlin nesohriesae)Notes (All amountsinRandmillionsunlessotherwisestated) rd n te aals 19 Current incometaxliabilities Trade andotherpayables Current liabilities te eevs 14 Other reserves oa qiyadlaiiis1 037.9 17 18 13 The notesonpages 96to135are anintegral oftheseconsolidatedfinancialstatements. part The consolidatedfinancialstatementshave beenapproved by theboard ofdirectors for issueon27 August 2004. Total equityandliabilities Total liabilities Borrowings 15 12 Provision for future rehabilitation 9 Borrowings 15 Non-current liabilities LIABILITIES Total equity Minority interest Retained earnings Share capital Capital andreserves attributable totheequityholders oftheholdingcompany EQUITY Total assets Cash andcashequivalents Other receivables mlt ru asat30June 2004 Implats group – IMPLATS ANNUAL REPORT 2004 0685.8 10 12 357.7 10 684.8 10 812.9 17 037.9 541.5 2 2 304.6 9 635.6 2 271.9 4 680.2 3 683.5 2 246.2 1 229.8 2 875.1 6 225.0 1 204.2 (626.3) 186.4 239.8 568.6 207.3 128.1 625.3 132.7 2004 89.0 62.3 9.4 As at30June – 11 391.2 10 296.3 16 269.3 16 269.3 2 208.9 8 808.9 1 886.7 4 878.1 3 759.9 1 706.2 2 844.5 2 213.1 9 877.4 9 220.8 5 973.0 2 324.5 229.7 847.4 710.7 204.7 200.2 418.9 617.8 2003 74.9 38.8 62.7 63.5 68.8 – Consolidated income statement Implats group – Year ended 30 June 2004 93

Year ended 30 June (All amounts in Rand millions unless otherwise stated) Notes 2004 2003

Sales 4 11 809.1 11 807.0

On-mine operations 20 (3 667.7) (3 251.1) Concentrating and smelting operations 21 (967.4) (801.1) Refining operations 22 (477.2) (411.5) Amortisation of mining assets (572.3) (452.4) Metals purchased (2 259.2) (1 474.1) Increase/(decrease) in metal inventories 394.4 (133.1) Cost of sales (7 549.4) (6 523.3)

Gross profit 4 259.7 5 283.7 Net foreign exchange transaction losses 23 (216.0) (328.8) Other operating expenses 24 (241.2) (252.6) Other income/(expense) 26 11.4 (54.7) Other gains – net 27 138.6 319.1 Finance costs 28 (67.1) (33.3) Share of profit of associates 29 328.4 725.0 Royalty expense (414.4) (598.0) Profit from disposal of Barplats Investments Limited 30 322.3 – Profit before tax 31 4 121.7 5 060.4 Income tax expense 32 (1 141.3) (1 622.1) Profit for the year 2 980.4 3 438.3

Profit attributable to: Equity holders of the company 2 963.0 3 415.1 Minority interest 17.4 23.2 2 980.4 3 438.3 Earnings per share (expressed in cents per share) 33 – basic 4 450 5 131 – diluted 4 442 5 119 Headline earnings per share (expressed in cents per share) 33 – basic 3 966 5 140 – diluted 3 959 5 128

Dividends to group shareholders (expressed in cents per share) 34 – final dividend June 2004/3 proposed 1 600 1 750 – interim dividend December 2003/2 paid 500 900 2 100 2 650 The notes on pages 96 to 135 are an integral part of these consolidated financial statements.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 94 ANNUAL FINANCIAL STATEMENTS osldtdsaeeto hne nsaeodr’equity Consolidated statementofchanges inshareholders’ aac t3 ue20 653 663 1 8. 181 10812.9 128.1 10685.8 (626.3) 625.3 17.4 2963.0 (33.4) The notesonpages 96to135are anintegral of theseconsolidatedfinancialstatements. part (33.4) Balance at30June2004 10296.3 418.9 (265.8) 9220.8 (314.4) 38.8 617.8 23.2 14 3415.1 Profit for theyear Net expense recognised directly inequity Currency translation differences Fair value lossesnetoftax: Balance at30June2003 (314.1) (506.9) 14 Profit for theyear Net expense recognised directly inequity Currency translation differences Fair value lossesnetoftax: Balance at30June2002 nesohriesae)SaeOhrRtie Minority Retained Other Share holders ofthecompany unless otherwisestated) (All amountsinRandmillions iiedrltn o20 3 (599.3) (1730.4) 34 34 Business combinations: Dividend relating to2003 Dividend relating to2002 Employee share optionscheme: ipslo apasIvsmnsLmtd 0(11.4) 17.8 (332.6) (1165.4) 34 34 30 Business combinations: Disposal ofBarplats Investments Limited Dividend relating to2004 Dividend relating to2003 issued intermsofoffer tominorities Zimbabwe Platinum Mines Limitedshares Employee share optionscheme: ltnmMnsLmtd 4 8(5.)(281.2) (350.7) 38 14, Platinum MinesLimited (190.1) Zimbabwe Platinum MinesLimited vial-o-aefnnilast 1 (48.6) 14 Available-for-sale financialassets (192.8) 14 Available-for-sale financialassets ibbePaiu ie iie 3 775.2 (251.0) 14.9 38 (Private) Limitedonconsolidationof Transfer from Makwiro Platinum Mines Zimbabwe Platinum MinesLimited 13 Acquisition ofsubsidiaries – Currency translation differences Proceeds from shares issued hr rs 1 (18.7) 13 26.2 Purchase ofadditionalshares inZimbabwe 13 Proceeds from shares issued share trust Adjustment asaresult ofconsolidating IMPLATS ANNUAL REPORT 2004 oe aia eevserig interest earnings reserves Notes capital 602.9 545.7 8 61.6 135.4 49( 2.)334.1 (2329.7) 14.9 . 307 (1 7.5 (350.7) 498.0) (274.8) Attributable toequity (506.9) 3 23.2 415.1 (314.4) 2 (16.0) 963.0 Implats group – Year ended30June 2004 (1 730.4) (1 165.4) (2 116.0) (1 980.7) 2 980.4 3 438.3 9 345.6 2 931.4 2 632.6 (631.9) (190.1) (347.8) (299.2) (506.9) (314.1) (192.8) (251.0) (599.3) (332.6) equity 775.2 (48.6) (11.4) (18.7) Total 14.9 17.8 26.2 Consolidated cash flow statement Implats group – Year ended 30 June 2004 95

Year ended 30 June (All amounts in Rand millions unless otherwise stated) Notes 2004 2003

Cash flows from operating activities Cash generated from operations 35 3 140.1 4 335.3 Interest paid 28 (63.0) (20.7) Income tax paid (1 264.5) (1 823.5) Net cash from operating activities 1 812.6 2 491.1

Cash flows from investing activities Acquisition of interest in subsidiary and joint venture, net of cash acquired 38 (631.9) (110.4) Disposal of subsidiary, net of cash sold 30 388.6 – Purchase of property, plant and equipment 5 (1 824.7) (1 754.9) Proceeds from sale of property, plant and equipment 5 7.8 43.3 Increase in investments in associates 6 (42.0) 492.8 Purchase of unlisted investments 7 (14.7) – Loan repayments received 9 – 18.5 Payments made to environmental trust 18 (8.3) (8.9) Interest received 85.7 301.4 Dividends received 295.8 192.4 Net cash used in investing activities (1 743.7) (825.8)

Cash flows from financing activities Issue of ordinary shares 25.2 14.9 Proceeds from/(repayments of) short-term borrowings 15 380.9 (152.7) Repayments of long-term borrowings 15 (74.7) (23.6) Dividends paid to company’s shareholders (1 498.0) (2 329.7) Net cash used in financing activities (1 166.6) (2 491.1)

Net decrease in cash and cash equivalents (1 097.7) (825.8)

Cash and cash equivalents at beginning of year 12 2 324.5 3 150.3

Effects of exchange rate changes on monetary assets (39.8) –

Cash and cash equivalents at end of year 12 1 187.0 2 324.5

The notes on pages 96 to 135 are an integral part of these consolidated financial statements.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 96 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) Summary ofstandards revised/issued Summaryofsignificantaccountingpolicies 1 Notes totheconsolidatedfinancialstatements Standard IAS 39 IAS 38 IAS 36 IAS 33 IAS 32 IAS 31 IAS 28 IAS 27 IAS 24 IAS 21 IAS 17 IAS 16 IAS 10 IAS 8 IAS 2 IAS 1 The principal accountingpoliciesappliedinthepreparation oftheseconsolidatedfinancialstatementsare setoutbelow. . Basisofpreparation 1.1 ru r ossetwt hs ftepeiu er except for early adoptionofrevised/issued standards setoutbelow.group are consistentwiththoseoftheprevious year, The principal accountingpoliciesusedby the value through theincomestatementorofchanges inequity. andfinancialassetsliabilities(includingderivative instruments) atfai of available-for-sale financialassets, asmodifiedby therevaluation consolidated financialstatementshave beenprepared underthehistorical costconvention, South African StatementsofGenerally Accepted (IFRS), Accounting Practice andtheSouth The African Companies Act. The consolidatedfinancialstatementshave beenprepared inaccordance withInternationalFinancial Reporting Standards 2003 2004 2004 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003 Revised/ sudDsrpinImpact Description issued and Measurement Recognition Financial Instruments: Intangible Assets Impairment of Assets Earnings perShare and Presentation Disclosure Financial Instruments: Interest inJoint Ventures Investments in Associates Financial Statements Consolidated andSeparate Related PartyDisclosures Exchange Rates The Effects ofChanges inForeign Leases PlantandEquipment Property, Date Events after theBalanceSheet Accounting EstimatesandErrors Changes in Accounting Policies, Inventories Statements Presentation ofFinancial IMPLATS ANNUAL REPORT 2004 adopted ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Early ✗ ✗ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✗ Implats group – Year ended30June 2004 spective change Retro- ✓ ✓ ✓ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ changes 2004 ✓ ✓ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ changes 2003 No material effect onthegroup’s policies. Ceased goodwill. to amortise No material effect onthegroup’s policies. No material effect onthegroup’s policies. No material effect onthegroup’s policies. No material effect onthegroup’s policies. No material effect onthegroup’s policies. No material effect onthegroup’s policies. disclosures. andsomeotherrelated-party parties Affected theidentificationofrelated As setoutbelow. No material effect onthegroup’s policies. As setoutbelow. No material effect onthegroup’s policies. yet adopted. Disclosed theimpactofnew standards not No material effect onthegroup’s policies. No material effect onthegroup’s policies. with incomefrom associatesbefore tax. Tax ofassociatesadjustedtobeincluded assumptions. Disclosed critical judgements andkey interest and otherdisclosures. Affected thepresentation ofminority r Retro- Revised/ Early spective 2004 2003 Standard issued Descriptionadopted change changes changes Impact 97 IFRS 2 2004 Share-based Payment ✗ ✓ ✗ ✗ As set out below. IFRS 3 2004 Business Combinations ✓ ✗ ✓ ✗ Accumulated amortistion as at 30 June 2003 has been eliminated with a corresponding decrease in the cost of goodwill. From the year ended 30 June 2003 onwards, goodwill, which is included in the carrying value of the investment in associates, is tested annually for impairment. Acquiree’s indentifiable contingent liabilities to be recognised at fair value at acquisition date. IFRS 4 2004 Insurance Contracts ✗ ✓ ✗ ✗ As set out below. IFRS 5 2004 Non-current Assets Held for Sale ✗ ✓ ✗ ✗ As set out below. and Discontinued Operations

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management and the board to exercise its judgement in the process of applying the group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in Note 3.

The group has not yet adopted the following standards which are only effective for financial years commencing on or after 1 January 2005.The group will adopt these statements by no later than 1 July 2005:

IAS 16 Property, plant and equipment (revised 2003) The impact of the early adoption of IAS 16 (revised 2003) would be the separate classification and amortisation/depreciation of significant components of property, plant and equipment.The group is currently in the process of determining the impact of such classification.The future implementation should not substantially affect the financial statements.

IAS 21 The effects of changes in foreign exchange rates (revised 2003) This standard provides guidance on determining the functional currency of an operation.Although no effect on the group's policies is anticipated, the impact of this standard on the group's Zimbabwean operations is currently being assessed.

IFRS 2 Share-based payment The estimated effect of the early adoption of IFRS 2 would have impacted on current year results as follows: Decrease in retained earnings: Estimated cost of share-based payment R21.7 million Decrease in basic and diluted earnings per share (cents per share) 32.6 cents Estimated adjustment to opening retained income R10.9 million

IFRS 4 Insurance contracts The impact of adoption of the standard is currently being assessed. No material effect on the group’s policies is anticipated.

IFRS 5 Non-current assets held for sale and discontinued operations The impact of the early adoption of IFRS 5 would be the separate disclosure on the face of the income statement of the loss from the discontinued operations of Barplats Investments Limited (Note 30). Non-current assets held-for-sale would be reclassified as current assets in the balance sheet.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 98 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE . Consolidation 1.2 asset transferred. Unrealised lossesare also eliminatedunlessthetransaction provides evidence ofanimpairmentthe in theassociates. Unrealised gains ontransactions between thegroup anditsassociates are eliminatedtotheextent ofthegroup’s interest the associate. unlessithasincurred obligations ormadepayments onbehalf of thegroup doesnotrecognise losses, further receivables, any other unsecured When thegroup’s share oflossesinanassociateequalsorexceeds itsinterest intheassociate,including associates includesany exchange differences arising ontranslation. thecarryingvalue oftheinvestment inforeign Inaddition, netofany accumulated impairmentloss. at dateofacquisition, the associateandincludesexcess ordeficit ofthepurchase price over thefair value ofattributable assetsoftheassoci The group's interest intheassociate iscarried inthebalancesheetatanamount thatreflects itsshare ofthenetassets acquisition movements are adjustedagainst thecarryingamountofinvestment. cumulative anditsshare ofpost-acquisitionmovements post- inreserves isrecognised inreserves.The or lossfor theyear, Equity accountinginvolves recognising intheincomestatementgroup's share oftheassociate'spost-acquisitionprofit pluscostsdirectly attributable totheacquisition. exchange, equityinstruments issuedandliabilitiesincurred orassumedatthedateof is measured asthefair value oftheassetsgiven, The purchase methodofaccountingisusedtoaccountfor theacquisitionofassociatesby thegroup.The costofanacquisition includes goodwill (netofany accumulated impairment loss)identifiedonacquisition(seeNote1.5). The group’s investment inassociates are accountedforundertakings by theequitymethodofaccountingingroup. inassociated accompanying ashareholding ofbetween 20%and50%ofthe voting rights.Investments not control,generally thegroup inwhich Associates are hasalong-terminterest undertakings andover itexercises which significantinfluencebut the group. Accounting policiesofsubsidiaries have beenchanged where necessarytoensure consistencywiththepoliciesadoptedby Unrealised lossesare alsoeliminatedunlessthetransaction provides evidence ofanimpairmenttheassettransferred. balancesandunrealised gains ontransactions between group companiesare eliminated. Inter-company transactions, recognised directly intheincomestatement(see Note 1.5). thedifference Ifthecostofacquisitionislessthanfair value ofthenetassetssubsidiaryacquired, as goodwill. The excess ofthecostacquisitionover thefair value ofthegroup’s share oftheidentifiablenetassetsacquired isrecor irrespective oftheextent ofany minority interest. contingent liabilitiesassumedinabusinesscombinationare measured initially attheirfair values attheacquisitiondate, Identifiableassetsacquired andliabilities pluscostsdirectly attributable totheacquisition. the dateofexchange, equityinstruments issuedandliabilitiesincurred orassumedat acquisition ismeasured asthefair value oftheassetsgiven, The costofan The purchase methodofaccountingisusedtoaccountfor theacquisitionofsubsidiaries by thegroup. consolidated from thedatethatcontrol ceases. Subsidiaries are consolidatedfrom thedateonwhicheffective control istransferred tothegroup and are nolonger has aninterest ofmore thanonehalfofthevoting rights orotherwisehaspower toexercise control over theoperations. directly orindirectly, are thosecompanies(includingspecialpurpose entities)inwhichthegroup, Subsidiary undertakings, ventures andspecialpurpose entities. joint associates, itssubsidiaries, The consolidatedfinancialstatementsincludethoseofImpalaPlatinum HoldingsLimited, Associated undertakings are accountedforAssociated undertakings atcostinthecompany. Associates are accountedforSubsidiary undertakings at costinthecompany. Subsidiaries IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 ded ate is Joint ventures The group’s interest in jointly controlled entities are accounted for by proportionate consolidation.The group combines its share of the joint ventures’ individual income and expenses, assets and liabilities and cash flows on a line-by-line basis with 99 similar items in the group’s financial statements.The group recognises the portion of gains or losses on the sale of assets by the group to the joint venture that is attributable to the other venturers.The group does not recognise its share of profits or losses from the joint venture that result from the purchase of assets by the group from the joint venture until it resells the assets to an independent party. However, if a loss on the transaction provides evidence of a reduction in the net realisable value of current assets or an impairment loss, the loss is recognised immediately.

Joint ventures are accounted for at cost in the company.

Special purpose entities Special purpose entities (SPEs) are those undertakings that are created to satisfy specific business needs of the group, which has the right to obtain the majority of the benefits of the SPE and is exposed to risk incident to the activities thereof.

SPEs are consolidated in the same manner as subsidiaries when the substance of the relationship indicates that the SPE is controlled by the group.

In order to comply with the directive issued by the JSE Securities Exchange South Africa on 16 February 2004, the group results include the consolidation of the Implats Share Incentive Trust.

1.3 Foreign currency translation Functional and presentation currency Items included in the financial statements of each entity in the group are measured using the currency that best reflects the economic substance of the underlying events and circumstances relevant to that entity. The consolidated financial statements are presented in South African Rand, which is the functional and presentation currency of Impala Platinum Holdings Limited.

Group companies Income statements of foreign subsidiaries, associates and joint ventures are translated into South African Rand at average exchange rates for the year and the assets and liabilities are translated at rates ruling at the balance sheet date.The exchange differences arising on translation of assets and liabilities of foreign subsidiaries and associates are transferred directly to other reserves. On disposal of the foreign entity such translation differences are recognised in the income statement as part of the gain or loss on sale.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

Transactions and balances Foreign currency transactions are accounted for at the rates of exchange ruling at the date of the transaction. Monetary assets and liabilities are translated at year-end exchange rates. Gains and losses arising on settlement of such transactions and from the translation of foreign currency monetary assets and liabilities are recognised in the income statement, except when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges.

Translation differences on non-monetary items, such as equities held at fair value through profit or loss, are reported as part of the fair value gain or loss.Translation differences on non-monetary items, such as equities classified as available-for-sale financial assets, are included in the fair value reserve in equity.

1.4 Property, plant and equipment Mining assets Mining assets are recorded at cost less accumulated amortisation and less any accumulated impairment losses. Expenditure, including evaluation costs, incurred to establish or expand productive capacity, to support and maintain that productive capacity and working costs incurred on mines prior to the commencement of production, are capitalised to mining assets.Interest on borrowings,specifically to finance establishment of mining assets,is capitalised until production is achieved.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 100 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE . Investments 1.7 Impairmentofassets 1.6 Goodwill 1.5 rewards of ownership. flows from theinvestments have expired orhave beentransferred and the group hastransferred substantially allrisks and Investments are derecognised when therights toreceive cash are initially recognised atfair value plustransaction costs. investments are recognised onthetrade date–the onwhichthegroup commitstopurchase orselltheasset.Investments Purchases andsalesof investments atthetimeofpurchase andre-evaluates designationonaregular such basis. Management determines theclassificationofits dependent onthepurpose for theinvestments which were acquired. The classification is held-to-maturity investments andavailable-for-sale financialassets. loansandreceivables, and loss, financial assets heldfor trading atfair value through profitThe group classifiesitsinvestments inthefollowing categories: generating units). assetsare grouped atthelowest levels for there which are separately identifiablecashflows (cash- assessing impairment, For thepurposes of The revised over carryingamountsare amortised theremaining livesaffected ofsuch assets. asset. theimpairmentischarged against incometoreduce thecarryingvalue tothe recoverable amountofthe carrying value, amounts ofnon-miningassetsare determinedby reference tomarket therecoverable values.Where amountislessthanthe istherefore possiblethatchanges couldoccurwhichmay affectrates.It the recoverability oftheminingassets.The recoverabl These estimatesare includingfuture subjecttorisks metalprices anduncertainties andexchange discounted cashflows. basedonestimatesoffuture The recoverability ofthelong-lived assetsisreviewed by management onaregular basis, anditsvalue inuseislessthanthe carryingamount. cost tosell, less are considered tobeimpairedcarrying amountmay when notberecoverable.Assets thehigherofasset’s fair value, areare reviewed subjecttoamortisation for impairmentwhenever events orchanges incircumstances indicatethatthe that Assets thathave anindefiniteusefullife andare are testedannually notsubjectto amortisation for impairment.Assets of impairmenttesting(Note1.6). Goodwillisallocatedtocash-generating unitsfor thepurpose the carryingamountofgoodwill relating totheentitysold. Gainsandlossesonthedisposalofanentityinclude for impairmentandcarried atcostlessaccumulated impairmentloss. Goodwillistestedannually Goodwillonacquisitions ofassociatesisincludedininvestments inassociates. intangible assets. Goodwillonacquisitionsofsubsidiaries isincludedin assets oftheacquired subsidiary/associateat thedateofacquisition. Goodwill represents theexcess ofthecostanacquisitionover thefair value ofthegroup’s share ofthenetidentifiable maintenance are charged totheincomestatementduring thefinancialperiod they inwhich are incurred. All otherrepairs and associated withtheitemwillflow tothegroup andthecostofitemcanbereliably measured. Subsequent costsare includedintheasset's carryingamountonly when itisprobable thatfuture economicbenefits than itsestimatedrecoverable amount(Note1.6). An asset'scarryingamountiswritten down immediately toitsrecoverable amount iftheasset’s carryingamountisgreater Otherassetsare depreciated onthestraight linebasisover theirusefullives asfollows: not depreciated. Landis Other fixed assetsare recorded atcostlessaccumulated depreciation andlessany accumulated impairmentlosses. andlessanyamortisation accumulated impairmentlosses. surface andmineral rights are capitalisedtominingassetsandare recorded atcostless accumulated acquisitions, Costs related toproperty Expenditure onminingexploration innew areas ofinterest ischarged against incomeasincurred. limitedtoamaximum period of25years. and probable Mineral Reserves, usingtheunits-of-productionMining assetsare methodbasedonestimatedeconomically amortised recoverable proved Buildings are notdepreciated when theresidual value equalsorexceeds thecarryingvalue. assets Other fixed Mining exploration nomto ehooyast 3years 10years Buildings Information assets technology Motor vehicles heavy vehicles equipment andearthmoving Rolling stock, IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 30 years 5 years e Financial assets held for trading at fair value through profit and loss Investments that are acquired principally for the purpose of generating a profit from short-term fluctuations in price are classified as financial assets held for trading at fair value through profit and loss and included in current assets. 101

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.They arise when the group provides money, goods or services directly to a debtor with no intention of trading the receivable.They are included in current assets,except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. Loans and receivables are included in trade and other receivables in the balance sheet (Note 1.13). Loans and receivables are subsequently carried at amortised cost using the effective interest method less any accumulated impairment loss.

Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the group’s management has the positive intention and ability to hold to maturity, and are included in non-current assets, except for maturities within 12 months from the balance sheet date which are classified as current assets. Held to maturity investments are subsequently carried at amortised cost using the effective interest method less any accumulated impairment loss.

Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.They are included in non-current assets unless management intends to dispose of the investment within 12 months of the balance sheet date. Available-for-sale financial assets are subsequently carried at fair value. Unrealised gains and losses arising from changes in the fair value of non-monetary securities classified as available-for- sale are recognised in equity. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the income statement as gains and losses from investment securities.

The fair values of listed investments are based on current closing market prices.If the market for a financial asset is not active (and for unlisted securities), the group establishes fair value by using valuation techniques.These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis and option pricing models refined to reflect the issuer’s specific circumstances.

The group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired.In the case of equity securities classified as available-for-sale,a significant or prolonged decline in the fair value of the security below its cost is considered in determining whether the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss – is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments are reversed through the income statement.

1.8 Cash and cash equivalents Cash and cash equivalents are carried in the balance sheet at cost. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are included within borrowings in current liabilities on the balance sheet.

1.9 Leases Leases where the group assumes substantially all of the benefits and risks of ownership are classified as finance leases. Finance leases are capitalised at the lower of the estimated present value of the underlying lease payments and the fair value of the asset. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element is expensed to the income statement, as a finance charge, over the lease period.

The property, plant and equipment acquired under finance leasing contracts is amortised in terms of the group accounting policy. (Paragraph 1.4).

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 102 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE .4Borrowings 1.14 Trade receivables 1.13 Derivative financialinstruments 1.12 Financial instruments 1.11 Inventories 1.10 the incomestatementover theperiod oftheborrowings using the effective interest method. any difference between theproceeds (netof transaction costs)andtheredemption value isrecognised in cost; amortised Borrowings are subsequently statedat netoftransaction costsincurred. Borrowings are recognised initially atfair value, amountofthe provision ischargeddiscounted attheeffective totheincomestatement. interest rate.The of theprovision isthedifference between theasset’s carryingamountandthepresent value ofestimatedfuture cash flows, evidence thatthegroup willnotbeabletocollectallamountsdueaccording totheoriginal amount termsofreceivables.The provision for lessprovision impairmentoftrade receivables for impairment.A isestablishedwhen there isobjective method, Trade receivables are recognised initially atfair value andsubsequently costusingtheeffective measured atamortised intere income statement. Changes inthefair value ofany derivative such instruments are recognisedqualify for immediately inthe hedge accounting. donot while providing effective economichedges undergroup's riskCertain management derivative policies, transactions, income statement. Changes inthefair value ofderivatives thatare designatedasfair valuerecognised hedges are inequity. recognised inthe Changes inthefair value ofderivatives thatare designatedandqualifyascashflow hedges andthatare highly effective are asset orliability(fair value hedge) orahedge ofaforecasted transaction orafirm commitment(cashflow hedge). group designatesderivativesthat thederivative aseitherahedge ofthefair value contract isentered ofarecognis into,the Onthedate methodofrecognising theresultingvalue.The gain orloss isdependantonthenature oftheitembeinghedged. Derivative financial instruments are initially recognised inthebalancesheetatcostandsubsequently remeasured atfair contracts are entered intotohedge anticipatedfuture transactions. andleasecontracts are entered intotopreserve andenhancefuture revenueMetal futures,options streams.Forward exchange recognition methodsadoptedareitem. disclosedintheindividual policystatementsassociatedwitheach fluctuations.The The infinancialinstruments group thatreduce participates risk exposure toforeign currency andfuture metalprice borrowings andforward commitments. metalleases, trade creditors, receivables, market instruments,investments, Financial instruments carried onthebalancesheetincludecashandbankbalances,money lesssellingexpenses. price intheordinary course ofbusiness, Netrealisable value istheestimatedselling and slow moving stores are identifiedandwritten down tonetrealisable values. redundant Obsolete, onafirst-in-first-out basis. Stores andmaterials are valued atthelower ofcostornetrealisable value, sell. ofmetalspurchased Stocks orrecycled by thegroup are valued atthelower ofcostorfair value lesscostto to sell. by-products are valued attheir fair value tomainproducts lesscost onaunitsproduced basis.Refined by-products,allocated lessnetrevenue from thesaleof includingamortisation, production istaken astotalcostsincurred onminingandrefining, Quantitiesofin-process average metalsare basedonlatestavailable assays.The costof value lesscosttocompleteandsell. are valued atthelower ofaverage costofproduction andfair metal concentrate inthebaseandprecious metalrefineries, includingin-process metalcontainedinmatteproduced by thesmelterandprecious Metalsminedby thegroup, products. palladiumandrhodiumare treated asmainproducts andotherplatinum group andbasemetalsproduced asby- Platinum, made tothelessorby way ofpenaltyisrecognised asanexpense intheperiod inwhichterminationtakes place. any payment required tobe anoperating leaseisterminatedbefore theleaseperiod hasexpired, which they occur.When Payments madeunderoperating leasesare charged totheincome statementintheperiod in classified asoperating leases. substantiallyLeases ofassetsunderwhich allthebenefitsandrisks ofownership are effectively retained by thelessorare Stores andmaterials Metal inventories IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 ed st Borrowing costs are charged to finance costs in the income statement.When borrowings are utilised to fund qualifying capital expenditure, such borrowings costs that are directly attributable to the capital expenditure are capitalised from the point at which the capital expenditure and related borrowing cost are incurred. 103

1.15 Provisions Provisions are recognised when the group has a present legal or constructive obligation as a result of past events where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are not recognised for future operating losses.

1.16 Environmental obligations Rehabilitation costs The net present value of future rehabilitation cost estimates of disturbances at year-end are recognised and provided for in full in the financial statements.The estimates are reviewed annually to take into account the effects of inflation and changes in the estimates. Discount rates that reflect the time value of money are utilised in calculating the net present value.

Annual increases in the provision, as a result of the change in the net present value, are charged to income and are split between finance costs and inflationary adjustments.

The net present value of additional environmental disturbances and changes in the cost estimates are capitalised to mining assets along with a corresponding increase in the rehabilitation provision.The rehabilitation asset is amortised in terms of the group's accounting policy (Refer paragraph 1.4).

Rehabilitation projects undertaken, included in the estimates, are charged to the provision as incurred.

Ongoing rehabilitation cost The cost of the ongoing current programmes to prevent and control pollution is charged against income as incurred.

Impala Pollution,Rehabilitation and Closure Trust Fund Annual contributions are made to this trust fund, created in accordance with statutory requirements, to provide for the estimated cost of rehabilitation during and at the end of the life of Impala Platinum Limited's mines. Income earned on monies paid to the trust is accounted for as investment income.The trust investments are included under held-to-maturity investments.

1.17 Employee benefits Defined benefit and defined contribution retirement plans The group operates or participates in a number of defined benefit and defined contribution retirement plans for its employees. The pension plans are funded by payments from the employees and by the relevant group companies and contributions to these funds are expensed as incurred.The assets of the different plans are held by independently managed trust funds.These funds are governed by either the South African Pension Fund Act of 1956 or Zimbabwean law.The defined benefit plans are multi-employer plans, where sufficient information is not available to account for them as defined benefit plans, and they are in substance accounted for as defined contribution plans. Defined benefit plans are subject to actuarial valuations at intervals of no more than three years.

Post-employment medical obligations The group provides post-retirement healthcare benefits to qualifying employees and retirees.The expected costs of these benefits are accrued over the period of employment. Valuations of these obligations are carried out annually by independent qualified actuaries. Actuarial gains or losses as a result of these valuations, are recognised in the income statement as incurred.

Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits.The group recognises termination benefits when it is demonstrably committed to either: terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 104 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE .9Revenue recognition 1.19 Deferred incometax 1.18 mard h ru eue h arigaon oisrcvrbeaon,beingthe estimatedfuture cashflow thegroup reduces the carrying amounttoitsrecoverable amount, impaired, When areceivable is Interest incomeisrecognised basisusingtheeffective onatime-proportion interest method. agreements with customers. Toll refining incomeisrecognised atdateofdeclaration ofmetalfrom therefinery ordispatch inaccordance withtherelevan is reasonably assured. Sales are recognised when agroup entityhasdelivered products tothecustomerandcollectibilityofrelated receivables Revenue isrecognised netofsalestaxes when anddiscounts. therisks andrewardsthe group. ofownership transfer, metalspurchased andtollincomereceived by Revenue comprises thefair value inrespect ofthesalemetalsproduced, combinations. taxlossescarried forward andfair value adjustmentonassetsacquired from business post-retirement medicalbenefits, provisions, plantandequipment, The principal temporary differences arise anddepreciation from onproperty, amortisation enforceable right tosetoff current taxassetsagainst current taxliabilities. same taxableentityare offset when they relate totaxes levied by thesametaxationauthority andtheentityhasalegally Deferred incometaxassetsanddeferred incometaxliabilitiesofthe difference willnotreverse intheforeseeable future. the timingofreversal ofthetemporary difference iscontrolled by thegroup anditisprobable thatthetemporary Deferred incometaxisprovided where ontemporary differences arising oninvestments insubsidiaries andassociates,except which thetemporary differences canbeutilised. Deferred incometaxassetsare recognised totheextent thatitisprobable thatfuture taxableprofit willbeavailable agains when therelated deferred incometaxassetisrealised orthedeferred incometaxliabilityissettled. using taxrates (andlaws) thathave beenenactedorsubstantially enactedby thebalancesheetdateandare expected toapply isdetermined tax Deferred income itisnotaccountedfor. transaction affects neitheraccountingnortaxableprofit orloss, thetimeof from initialrecognition ofanassetorliabilityinatransaction otherthanabusinesscombinationthatat taxarises ifthedeferred income However, and liabilitiestheircarryingamountsintheconsolidatedfinancialstatements. ontemporary differences arising between thetaxbasesofassets usingtheliabilitymethod, Deferred incometaxis provided, of granting theoptions. outstandingoptionsexpire within10years from thedate Insubsequentyears anadditional25%peryear vests.All granted. Vesting limitedtoamaximum of25%thetotaloptions ofoptionsfirst occurs two years afterthegranting oftheoptions, capital ofImpalaPlatinum HoldingsLimited. The maximum number ofshare optionsoutstandingintermsofthesharemay scheme notexceed 3.5%oftheissuedshare are entitledtoexercise theiroptionsattheoptionprice. Employees The isadministrated scheme through theImpalaShare Shares Incentive are issuedtothetrust asrequired. Trust. approved thegranting oftheoptions. price equaltothemiddlemarket price onthetrading day preceding thedateuponwhichremuneration committee The group's share optionplanprovides for thegranting ofoptionstokey employees who are abletopurchase shares ata created aconstructive obligation. group recognises aprovision wheresafety performance.The contractually obliged orwhere there isapastpractice thathas The group recognises aliabilityandanexpense for bonuses basedonaformula thattakes intoconsideration production and Interest income Toll income Sales ofmetalsminedandpurchased Equity compensation plans Bonus plans IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 t t discounted at original effective interest rate of the instrument, and continues unwinding the discount as interest income.Interest income on impaired loans is recognised either as cash is collected or on a cost–recovery basis as conditions warrant. 105

Dividend income Dividend income is recognised when the shareholder's right to receive payment is established, at the accrual date.

1.20 Dividend distribution Dividend distribution to the company’s shareholders is recognised as a liability in the group’s financial statements in the period in which the dividends are approved by the board of directors.

1.21 Comparatives The group previously disclosed interest and dividend income within ‘finance costs – net’. Current inclusion in ‘other gains – net’ is in terms of the provisions of IAS 1. 'Share of profit of associates' previously excluded the income tax charge of R98.5 million (2003: R215.7 million). Inclusion of the tax charge in 'share of profit of associates' is in terms of the provisions of IAS 1. The group has separately disclosed the Marula business segment for segmental reporting purposes. The group previously included the Marula business segment under the Impala business segment.

2 Financial risk management 2.1 Financial risk factors The group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest risk and price risk), credit risk, liquidity risk and cash flow interest-rate risk.The group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the group’s financial performance.The group, from time to time, uses derivative financial instruments to hedge certain risk exposures.

Risk management is carried out by a central treasury department (Group treasury/hedging committee) under policies approved by the Board of Directors, which identifies, evaluates and hedges financial risks in close co-operation with the group’s operating units.The risk committee approves written principles for overall risk management,as well as written policies covering specific areas, such as foreign exchange risk, interest-rate risk, credit risk, use of derivative financial instruments, non-derivative financial instruments and investing excess liquidity.

2.1.1 Market risk Foreign exchange risk The group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.

To manage foreign exchange risk arising from future commercial transactions, recognised assets and liabilities, the group, from time to time, uses forward contracts within board approval limits. Group treasury/hedging committee is responsible for managing the net position in each foreign currency.

Securities price risk The group is exposed to equity securities price risk because of investments held by the group and classified on the consolidated balance sheet as available-for-sale financial assets. Group treasury continually monitors this exposure.

Commodity price risk management The group is exposed to fluctuations in metal prices. From time to time, the group enters into metal futures, options or lease contracts to manage the fluctuations in its metal prices thereby preserving and enhancing its revenue streams. At 30 June 2004, the group had no metal futures, options or lease contracts in place (2003: nil).

2.1.2 Credit risk management The group has no significant concentrations of credit risk. It has policies in place to ensure that sales of products are made to customers with an appropriate credit history.The group has policies that limit the amount of credit exposure to any single financial institution.

The potential concentration of credit risk consists mainly of cash and cash equivalents,trade debtors and other receivables.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 106 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE Critical accountingestimatesandjudgements 3 causing amaterial adjustmenttothecarryingamountsofassetsandliabilitieswithinnext financial year are discussedbe estimatesandassumptionsthathave asignificantrisk of The group makes estimatesandassumptionsconcerningthefuture.The of future events thatare believed tobereasonable underthecircumstances. Estimates andjudgements are continually evaluated expectati andare basedonhistorical experience andotherfactors,including market forecasts. Estimatesare basedonmanagement's interpretation of the useofestimatesfuture commodityprices andexchange rates. recoverable amountsofcash-generating unitshave calculationsrequire been determinedbasedonvalue-in-use calculations.These The inaccordance statedinNote1.6. withtheaccountingpolicy The group testswhether assets have suffered any impairment, . Fair value estimation 2.3 instruments Accounting andhedgingactivities financial forderivative 2.2 ogtr eldson ae ag f1%t 2 20:1%t 2)frSuhArcnad1%t 7 20:15%to 10%to12%) for South African and15%to17%(2003: arange of10%to12% (2003: long-termreal discountrate, – R6100.00)perounceand long-termreal platinum index price ofR6100.00(2003: – The mainassumptionsinclude: Estimated impairmentofassets 17%) for Zimbabwean assets. flows atthecurrent market interest rate thatisavailable tothegroup for similarfinancialinstruments. fairfair value values.The offinancial liabilitiesfor disclosure purposes isestimatedby discountingthefuture contractual The nominal value lessestimatedcredit adjustmentsoftrade receivables andpayables are assumedtoapproximate their The fair value offorward foreign exchange contracts isdeterminedusingforward exchange market rates atthebalancesheetdate price for financialliabilitiesisthecurrent askprice. theappropriate quotedmarket The listed market price usedfor financial assetsheldby thegroup isthecurrent bidprice; The fair value offinancial instruments traded inactive markets isbasedonquotedmarket prices atthebalancesheetdate. and therefore changes inthefair value ofany derivative instruments are recognised intheincomestatementimmediately. hedge accounting isnotapplied Duetotheextent ofthesehedges, but financiallimitsandexposures are setby theBoard. The group's risk management policyonhedging isnotprescriptive regarding theavailable financialinstruments tobeused, .. Liquidityrisk 2.1.4 Interest rate riskmanagement 2.1.3 funding by keeping committedcredit linesavailable. thegroup treasury/hedging committeeaimstomaintainflexibility in dynamic nature oftheunderlying businesses, Due tothe through anadequateamountofcommitted credit facilities andtheabilitytocloseoutmarket positions. availabilityPrudent offunding liquidityrisk management impliesmaintainingsufficient cashandequivalents,the thegroup didnotconsiderthere tobeany significantconcentration ofinterest rate risk. At 30June 2004, group's primary exposures inrespect oflongtermborrowings maturity dates.The short-term are detailedinnote15. Cashandcashequivalents are primarily invested with The group monitors itsexposure tofluctuatinginterest rates. of theallowance for doubtfuldebts. evaluations are performed onthefinancialconditionoftheseandotherreceivables.Trade debtors are presented net Ongoing credit dispersed across different geographical areas. Trade debtors comprise anumber ofcustomers, positions andthecredit ratings andlimitstheamountofcontracts ofitscounterparties itenters intowithany oneparty. group continually monitors its tothesecontracts counterparties are majorfinancialinstitutions.The instruments.The The group isexposed tocredit-related lossesintheevent ofnon-performance bytoderivatives counterparties managed by settingexposure limitswhichare reviewed regularly by theboard ofdirectors. The credit exposure is toany onecounterparty established financialinstitutionsofhighqualitycredit standing. The exposures group limitsitscounterparty from itsmoney market investment operations by only dealingwithwell- IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 cash low. ons . Provisions Provisions for post-retirement medical liability and future rehabilitation cost have been determined, based on calculations which require the use of estimates. (Note 17, 18) 107

Post-employment medical benefits Actuarial parameters used by independent valuators assume 7.35% (2003: 8.00%) as the long-term medical inflation rate and a 9.5% (2003: 10.0%) risk free interest rate corresponding to the yields on long-dated high-quality bonds.

Future rehabilitation obligation The net present value of current rehabilitation estimates is based on the assumption of a long-term net real interest rate of 4% (2003: 4%).

4 Segment information Segment reporting The group is an integrated PGM and associated base metal producer. On a primary basis, the business segments are: – mine-to-market primary PGM producer, including marketing of metals produced by the group (Impala); – mine-to-concentrate local and foreign primary PGM producers (Marula, Barplats, Zimbabwe) and – toll-refiner for third party material (Impala Refining Services– IRS).

The comparative for 2003 has been restated to separately disclose the Marula segment.

Primary reporting format – business segments Year ended 30 June 2004

Impala Barplats Inter- (All amounts in Rand millions lease area Marula disposed Zimbabwe IRS segment unless otherwise stated) segment segment segment segment segment adjustment Total

Sales from: Metals mined 7 679.2 71.5 7 750.7 Metals purchased 3 419.5 3 480.0 (3 176.8) 3 722.7 Toll income 371.5 (35.8) 335.7 Inter-company concentrate sales 94.4 112.9 864.4 (1 071.7) – Total sales 11 098.7 94.4 112.9 935.9 3 851.5 (4 284.3) 11 809.1

Segment operating expenses for: Metals mined 4 656.8 111.3 117.8 597.0 5 482.9 Metals purchased 3 421.2 3 122.4 (4 284.4) 2 259.2 Other cost 201.7 201.7 Gross cost 8 078.0 111.3 117.8 597.0 3 324.1 (4 284.4) 7 943.8 Adjusted for increase in metal inventories (160.9) (33.3) (188.6) (11.6) (394.4) Cost of sales 7 917.1 111.3 117.8 563.7 3 135.5 (4 296.0) 7 549.4 Gross profit 3 181.6 (16.9) (4.9) 372.2 716.0 11.7 4 259.7

Segment assets 8 580.5 2 203.2 1 724.7 1 654.3 14 162.7 Unallocated assets 570.6 570.6 Associates 2 304.6 Total assets 17 037.9

Segment liabilities 1 709.3 97.4 163.3 1 024.9 2 994.9 Unallocated liabilities 3 230.1 3 230.1 Total liabilities 6 225.0

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 108 ANNUAL FINANCIAL STATEMENTS Segmentinformation (continued) 4 STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE emn iblte 8. 45 99 7. 829.2 376.3 (3260.4) 79.9 2413.3 37.8 (3298.2) 1502.2 (3258.2) (40.0) 4.5 (40.0) 501.3 2425.4 2283.4 1276.3 (12.1) 218.2 189.8 518.8 2381.3 248.7 (17.5) 189.8 1661.0 (3298.2) Total 518.8 liabilities (2445.5) 8618.0 2913.8 Unallocated liabilities (812.7) 2695.6 Segment liabilities 189.8 696.1 6679.3 Total assets 38.0 154.6 6554.4 Associates Unallocated assets Segment assets 658.1 124.9 4105.5 18.6 Gross profit 2448.9 154.6 Cost ofsales (increase) inmetalinventories 11340.7 Adjusted for decrease/ 9.5 39.8 Gross cost Other cost Metals purchased 135 (4.3) 8877.5 Metals mined 2463.2 545 Segment operating expenses for: 871 (17.9) Total sales Inter-company concentrate sales Toll income 249.8 Metals purchased Metals mined Sales from: (%) 37.3 41.5 Year ended30June2003 (%) 36.6 0.0 (%) concentrate sales 6.9 Inter-company (%) Metals purchased –IRS 142.9 (000 t) 116 Metals purchased –Impala Metals mined 501 3.8 (000oz) Gross margin analysis: (000oz) 1090 (000oz) (000oz) in IRSrefined metal 504.7 PGM inconcentrate produced included 481.516.614.759.5 3.6 4.1 Nickel 1200.8 Rhodium Palladium adjustment segment Platinum segment Total metalsproduced IRS segment Statistical information: segment Amortisation Zimbabwe Depreciation segment disposed and other) segment Capital expenditure (mining Marula Other segmentitems: leasearea unless otherwisestated) (All amountsinRandmillion 6. (52 9. 505 (37.8) 500.5 194.8 (35.2) 4 661.4 maaBrlt Inter- Impala Barplats IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 142.0 2 301.8 754.2 16 269.3 13 306.2 11 807.0 2 301.8 5 973.0 3 671.2 2 208.9 5 283.7 6 523.3 6 390.2 1 474.1 4 774.1 2 713.3 8 915.5 1 852.2 754.2 142.0 133.1 178.2 323.7 572.3 1 046 1 961 Total 30.7 18.6 41.5 16.4 251 0.0 7.7 – 4 Segment information (continued) 109 Impala Barplats Inter- (All amounts in Rand million lease area Marula disposed Zimbabwe IRS segment unless otherwise stated) segment segment segment segment segment adjustment Total

Other segment items: Capital expenditure (mining and other) 1 135.5 544.4 112.2 1 792.1 Depreciation 2.3 1.2 3.5 Amortisation 344.0 45.3 63.1 452.4

Statistical information: Total metals produced Platinum (000 oz) 1 040 633 1 673 Palladium (000 oz) 478 415 893 Rhodium (000 oz) 134 81 215 Nickel (000 t) 8.0 6.7 14.7 PGM in concentrate produced included in IRS refined metal (000 oz) 48.8 180.6 229.4

Gross margin analysis: Metals mined (%) 52.3 52.3 Metals purchased – Impala (%) 0.6 0.6 Metals purchased – IRS (%) 17.2 17.2 Inter-company concentrate sales (%) (22.8) 28.0 18.8

Notes to business segment analysis:

Assets, liabilities and capital expenditure. Segment assets consist primarily of property, plant and equipment, intangible assets, inventories, receivables and operating cash.They exclude deferred taxation, investments and derivatives held for trading or designated as hedges of borrowings.

Segment liabilities comprise operating liabilities.They exclude items such as taxation and corporate borrowings.

Capital expenditure comprises additions to property, plant and equipment (Note 5), including additions resulting from acquisitions through business combinations (Notes 5, 38).

Sales Metals mined Reflect the mine-to-market sales primarily from the Impala lease area.

Metals purchased Revenue from metals purchased is recognised within two separate legal entities: – for Impala Platinum this incorporates sales of metals purchased principally from IRS of R3 176.8 million (2003: R2 445.5 million). – for IRS this includes sales from purchases of metals from refining customers.The majority of sales are to Impala Platinum, and a portion directly to the market.

Toll income Fees earned by IRS for treatment of metals from third party refining customers.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 110 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) Segmentinformation (continued) 4 STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE Zimbabwe operations didnotcontribute more than10%ofconsolidatedsales. Sales andtollincomeare allocatedbasedonthecountryinwhichcustomerislocated. and Zimbabwe. areas ofoperation arecompany.The principally miningandtoll-refining activitiesinSouth Africa South Africa isthehomecountryof parentgeographical company andthemainoperating areas. they operate intwo Although thegroup’s businesssegmentsare managed onaworld-wide basis, to IRS. Marula andZimbabwe miningactivities Sales ofconcentrate from Barplats (discontinued operation), Sales ofgoods Analysis ofsalesby category Europe Europe South Africa Asia Main products Analysis ofsalesby destination format–geographical reporting segments Secondary Inter-segment transfers are basedonmarket related prices. Inter-segment transfers purchases andunrealised profit inthegroup. Elimination ofinter-segment sales, Inter-segment adjustments refining andpurchase ofmetals. Comprises totalcostsassociatedwiththemining, Gross cost Segment operating expenses for: Inter-company concentrate sales South Africa Toll income South Africa By-products Revenue from services North America North North America North America North Europe Asia Asia Base metals Precious metals Toll-refining IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 10 051.3 11 809.1 11 809.1 2 566.4 8 907.0 1 422.1 3 400.5 1 873.4 3 044.0 1 641.9 335.7 335.7 122.6 820.6 324.5 238.8 331.6 2004 0.2 9.9 1.1 10 569.8 11 807.0 11 807.0 2 055.0 9 573.8 1 059.0 1 629.3 3 467.0 1 452.1 2 987.9 1 489.6 178.2 178.2 134.7 148.5 232.5 235.7 2003 20.1 8.1 1.5 (All amounts in Rand millions unless otherwise stated) 2004 2003

4 Segment information (continued) 111

Other segment information Sales Total assets Capital expenditure 2004 2003 2004 2003 2004 2003 South Africa 11 737.6 11 769.0 13 000.4 12 776.4 1 709.3 1 679.9 Zimbabwe 71.5 38.0 1 724.7 1 276.3 142.9 112.2 Other 8.2 7.7 Investment in associates 2 304.6 2 208.9 11 809.1 11 807.0 17 037.9 16 269.3 1 852.2 1 792.1

Total assets and capital expenditure are allocated based on where the assets are located. Sales are allocated based on the country in which the sale orginated.

5 Property, plant and equipment

Mining assets These comprise expenditure on shafts, plant and equipment, mining development and general capital expenditure. Cost Opening book amount 11 086.6 7 996.3 Acquisition of subsidiaries and joint venture (Note 38) – 1 822.6 Disposal of subsidiary (215.7) – Exchange adjustment on translation of foreign subsidiaries and joint venture (236.0) (469.5) Additions 1 794.7 1 749.7 Addition of rehabilitation asset (Note 18) 27.5 37.2 Disposals (15.5) (49.7) 12 441.6 11 086.6 Accumulated amortisation Opening book amount 2 308.0 1 811.5 Acquisition of subsidiaries and joint venture (Note 38) – 44.1 Exchange adjustment on translation of foreign subsidiaries and joint venture (18.5) – Charge for the year 572.3 452.4 Disposals (13.0) – 2 848.8 2 308.0 Net book amount 9 592.8 8 778.6

Other assets These comprise expenditure on freehold land and buildings, plant and equipment, motor vehicles, furniture and leased equipment. Cost Opening book amount 42.1 46.9 Acquisition of subsidiaries and joint venture (Note 38) – 6.4 Exchange adjustment on translation of foreign subsidiaries and joint venture (6.6) – Additions 30.0 5.2 Disposals (2.5) (16.4) 63.0 42.1

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 112 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) Investments inassociates 6 plantandequipment(continued) Property, 5 STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE lsn e okaon 9635.6 Lonplats(comprising Western PlatinumLimitedandEasternLimited) i) Closing netbookamount Net bookamount Accumulated depreciation Adjustment/(disposals) Opening bookamount Charge for theyear Exchange adjustmentontranslation offoreign subsidiaries andjointventure Acquisition ofsubsidiaries andjointventure (Note38) fmnn,rfnn n aktn fPGMs: refining andmarketing of of mining, Shares beneficially owned intheundermentioned companiesinvolved inthebusiness withdrawn during April 2004. guarantee was nolonger required and R81.5million).The year-end (2003: ofwhichnilwas utilisedat theassociates, available for utilisationby institutions, R81.5million)hasbeenguaranteed infavour ofbanking A loanfacility ofnil(2003: Non-current liabilities Capital andreserves Summarised balancesheetasat31March Current liabilities Net bookamount Accumulated amortisation Net bookamount Dividends received Shares atcost Share ofpostacquisitionretained income Amortisation ofgoodwillAmortisation arising onacquisition Eastern Platinum Limited Western Platinum Limited Number ofshares At cost Goodwill includedincarryingvalue: fetv odn:27.1% Effective holding: Participating preference shares Ordinary shares 27.1% Effective holding: Participating preference shares Ordinary shares IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 7 319924 (1 741.4) 149 110 7 737.5 2 059.8 5 071.8 1 461.4 2 874.9 (102.9) (102.9) 605.9 430.8 185.0 2004 20.2 82.1 42.8 11.8 (2.1) 2.8 7.7 – – – 6 779924 134 444 540 000 (1 456.8) 8 808.9 7 375.7 1 785.5 5 065.9 1 456.5 2 585.4 14 666 (102.9) (102.9) 524.3 430.8 185.0 2003 11.8 82.1 30.3 13.3 (8.0) 3.0 3.5 – (All amounts in Rand millions unless otherwise stated) 2004 2003

6 Investments in associates (continued) 113

Non-current assets 7 036.3 6 139.9 Current assets 701.2 1 235.8 7 737.5 7 375.7

The associate companies prepare their financial statements to 30 September to conform to the financial year of their holding company. Only publicly available information for these associate companies has been used for equity accounting purposes. Consequently, results for the twelve months to 31 March have been included in the equity accounted earnings for the year, of which the results for the last six months are reviewed by the company’s auditors. There were no changes in the percentage ownership interests in the associates during the year ended 30 June 2004.

The group is currently in the process of negotiating a deal in terms of the requirements of the mining charter (refer directors’ report).

ii) Two Rivers Platinum (Proprietary) Limited Shares at cost 45.0 45.0 Shareholder's loan 271.8 229.8 Net book amount 316.8 274.8

The company holds various PGM mineral rights.Trial mining is presently being conducted and the result will be evaluated towards the end of calendar year 2004.

Shareholding Number of shares Ordinary shares 270 270 Effective holding: 45.0%

There was no change in the percentage ownership interest in the associate during the year ended 30 June 2004.

Summarised balance sheet as at 30 June Capital and reserves 101.6 101.0 Non-current liabilities 604.3 510.8 Current liabilities 5.6 1.6 711.5 613.4

Non-current assets 690.0 604.8 Current assets 21.5 8.6 711.5 613.4 The results of the associate are based on audited financial statements.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 114 ANNUAL FINANCIAL STATEMENTS Investments inassociates(continued) 6 (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE i)Aquarius Platinum(South Africa) (Proprietary) Limited iii) ended 30June 2004. There was nochange inthepercentage ownership interest intheassociateduring theyear statements. The equityaccountedresults oftheassociatefor theyear are basedonauditedfinancial refining andmarketing ofPGMs: Shares beneficially owned intheundermentioned company involved inthebusinessofmining, bystart nolaterthantheendofcalendaryear 2004. which are expected to proportionally inlinewiththeloan repayments toInvestec BankLimited, thentheguarantee willreduce Iftheproject completiontestsare notmet, the Marikana project. relating to This guarantee issettoexpire project completiontests, uponcompletionofcertain R175.0million)hasbeenutilisedatyear-end. million(2003: ofwhichR175.0 R175.0million), (2003: of Aquarius Platinum (South Africa) (Proprietary) Limitedfor aloanfacility granted ofR175.0million Impala Platinum HoldingsLimitedhasprovided aguarantee toInvestec BankLimitedonbehalf Capital andreserves Summarised balancesheetasat30June 25.0% Effective holding: Shares atcost Non-current liabilities Non-current assets oa netet nascae 2304.6 Total investments inassociates Aquarius Platinum (South Africa) (Proprietary) Limited Current assets Current liabilities Ordinary shares Net bookamount Shareholder's loan Unearned profit in thegroup Share ofresults Two Rivers Platinum (Proprietary) Limited Lonplats (comprising Western Platinum LimitedandEasternPlatinum Limited) Summary ofinvestments inassociates Number ofshares Shareholding IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 2 171.4 2 790.9 2 191.4 2 790.9 1 461.4 231.5 526.4 599.5 388.0 526.4 466.0 316.8 (10.1) 2004 43.5 16.9 53.6 250 2 110.0 2 713.1 2 116.3 2 713.1 2 208.9 1 456.5 107.4 477.6 596.8 495.7 477.6 456.1 274.8 2003 (18.0) 16.9 22.6 250 4.6 (All amounts in Rand millions unless otherwise stated) 2004 2003

7 Available-for-sale financial investments 115

Investments in listed shares Comprise shares in the following listed company: Aquarius Platinum Limited Beginning of the year 229.7 422.5 Exchange differences (27.7) (41.6) Share price movement (30.3) (151.2) End of the year 171.7 229.7

During the year, the group maintained its strategic shareholding in Aquarius Platinum Limited, holding 7 141 966 shares (2003: 7 141 966) which amounts to approximately 8.6% (2003: 8.9%) of the issued share capital of that company.The shares are listed on the Australian Stock Exchange and the London Stock Exchange.The fair value of these shares as at the close of business on 30 June 2004 by reference to Stock Exchange quoted prices and closing exchange rates was R171.7 million (2003: R229.7 million).

Investment in unlisted shares Shares beneficially owned in the undermentioned concern at fair value: Silplat (Proprietary) Limited 14.7 –

Total available-for-sale investments 186.4 229.7

8 Held-to-maturity investments

Investment in interest-bearing securities 89.0 74.9

The investment is held through the Impala Pollution, Rehabilitation and Closure Trust Fund (Note 18). The fund is an irrevocable trust under the group's control.The funds are invested primarily in interest-bearing securities.

9 Non-current receivables and prepayments

Loans Barplats Investments Limited 114.8 – Less: current portion of loan (Note 11) (45.9) – Messina Platinum Mines Limited – 23.5 Less: current portion of loan (Note 11) – (23.5) 68.9 –

The Barplats Investments Limited loan bears interest at the Johannesburg Interbank Acceptance Rate (JIBAR) plus 3% nominal annual compounded and capitalised monthly in arrears.The loan capital is repayable in three annual instalments: 40% on 31 May 2005 and equal payments of the balance in the second and third year respectively on the anniversary date.The loan is secured by a mortgage bond over property and mineral rights.

The Messina Platinum Mines Limited loan bore interest at JIBAR plus 6% and was repaid in 2004.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 116 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE 0Inventories 10 Non-current receivables andprepayments (continued) 9 1Current receivables andprepayments 11 customers are which secured by in-process metalinventories heldascollateral against theseadvances. Trade R551.8million)to andotherforeign receivables includeadvances ofR789.8million(2003: to themineral right holders oftheImpalaminingleasearea during 1999. Royalty prepayment represents thepayment ofroyalties settledthrough anissueofshares Trade andotherreceivables (US$million) The uncovered foreign currency denominatedbalancesasat30June were asfollows: Implats Share Incentive Trust 132.7 Stores andmaterials inventories Metal inventories Exchange adjustmentontranslation offoreign subsidiaries andjointventure Refined metal Total non-current receivables andprepayments ofprepayment current portion (Note11) Less: Charged totheincomestatementduring theyear Royalty prepayment Prepayments The carryingamountoftheloanapproximates itsfair value. Other receivables represent primarily aSouth African exposure. Trade receivables In-process metal The credit exposures by countryare asfollows: Receivables from (Note39) related parties Advances andloanfacilities provided (Note39) torelated parties Other receivables Employee receivables South African Revenue Services(Value Added Tax) Current portion ofloans(Note9) Current portion Prepayments Current portion ofprepaymentsCurrent portion (Note9) Interest receivable Europe At fair value lesscosttosell At cost North America North South Africa Asia IMPLATS ANNUAL REPORT 2004 Implats group – Year-ended 30June 2004 1 362.2 2 246.2 1 229.8 1 100.3 1 362.2 325.3 208.3 129.5 290.7 790.9 624.6 544.0 159.9 246.3 245.8 163.8 (15.9) 2004 68.8 63.8 33.7 34.6 73.7 84.4 53.3 45.9 37.6 (5.0) (4.9) 5.0 1.9 – 1 070.4 1 706.2 1 070.4 847.4 209.6 118.5 125.6 721.8 172.2 512.2 574.8 354.1 129.4 173.4 2003 73.7 68.8 19.1 68.8 43.9 37.4 78.6 97.6 82.0 70.0 82.2 23.5 37.6 13.7 (4.9) (4.9) 4.9 – (All amounts in Rand millions unless otherwise stated) 2004 2003

12 Cash and cash equivalents 117

Short-term bank deposits 900.4 2 014.3 Cash at bank 303.8 310.2 1 204.2 2 324.5

The weighted average effective interest rate on short-term bank deposits was 8.4% (2003: 12.1%) and these deposits have an average maturity of 30 days.

Cash and bank overdrafts include the following for the purposes of the cash flow statement: Cash and cash equivalents 1 204.2 2 324.5 Bank overdrafts (Note 15) (17.2) – 1 187.0 2 324.5

The uncovered foreign currency denominated balances as at 30 June were as follows: Bank balances (US$ million) 61.0 65.4

The credit exposures by country are as follows: South Africa 1 006.3 2 158.1 Europe 141.8 5.2 Mauritius 45.4 157.4 Zimbabwe 6.5 2.2 Asia 4.2 1.6 1 204.2 2 324.5

13 Ordinary shares, share premium and share options

Share capital and share premium Number of Ordinary Share shares shares premium Total (millions) R million R million R million

At 30 June 2002 66.554 13.3 589.6 602.9 Issued to the share option scheme 0.040 0.0 14.9 14.9 At 30 June 2003 66.594 13.3 604.5 617.8 Adjustment as a result of consolidating share trust (0.084) (0.0) (18.7) (18.7) Issued by the share option scheme 0.103 0.0 26.2 26.2 At 30 June 2004 66.613 13.3 612.0 625.3

The total authorised ordinary share capital comprise 100 million (2003: 100 million) shares with a par value of 20 cents each.All issued shares are fully paid.

Authorised amount 20.0 20.0

Up to 10% of the unissued shares may be issued by the directors at their discretion until the next annual general meeting.The directors' report sets out additional details in respect of the share option scheme.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 118 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE 3Odnr hrs share premium andshare options(continued) Ordinary shares, 13 during 2013). share optionsexpire R558.76pershare) andexpire during 2014(2003: R575.00 pershare (2003: Share optionswere granted toemployees during theyear atanaverage market share price of personnel. for report detailsonshare optionsheldby directors andkey management Refer tothedirectors’ Share optionsoutstanding(number inthousands)attheendofyear have thefollowing terms: The number 83584). ofshares heldby the Trust atyear endtotalled8350(2003: oa 0311937. 3. 2. 0. 8. 1. – 118.5 2.2 188.7 202.0 17.0 229.1 1.0 4.6 138.6 1.467.7 73.0 1.415.7 33.1 9.3 7.4 1.0 5.75.2 1.1 0.5 0.3 61.7 21.1117.4218.7257.2233.5176.9 1 7.0 Total 2003 4.5 0.9 094.4 1.015.1 Total 611.48 2004 600.00 1.07.6 594.25 589.99 11.0 587.00 556.00 7.0 52.253.851.950.9 2.1 5.611.7 2009 1.5 539.40 522.00 2008 515.82 0.8 507.12 2007 507.00 Vesting years 484.10 4.217.521.3 2006 0.8 482.61 401.00 2005 381.00 344.00 2004 281.00 200.00 2003 146.00 3.8 2002 2001 Rand pershare Option price 4.5 19.8 At endofyear Lapsed/forfeited At beginning ofyear Movement inthenumber ofshare optionsoutstandingwas asfollows (000): Share options Granted Exercised 25 0.10.31.4 57.50 2.5 52.50 IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 1 094.4 (102.4) 960.3 335.4 (98.9) 2004 number 960.3 272.2 132.4 218.7 613.1 960.3 511.7 Total 2003 (65.9) (98.6) 64.2 18.4 68.0 21.3 29.9 61.4 18.0 31.4 30.5 33.0 43.8 28.1 2.5 1.8 8.8 4.0 2.0 4.0 (All amounts in Rand millions unless otherwise stated)

13 Ordinary shares, share premium and share options (continued) 119

Share options were granted to directors and employees at the market share price on the following dates:

Market Number share price Amount During financial year 2004 Date of shares (Rand) (R million)

27 Aug 2003 31 804 515.82 16.4 18 Sep 2003 3 840 539.40 2.1 6 Nov 2003 27 232 611.48 16.7 16 Feb 2004 136 194 587.00 79.9 22 Apr 2004 132 235 507.12 67.1 6 May 2004 4 102 482.61 2.0 Total 335 407 184.2

Market Number share price Amount During financial year 2003 Date of shares (Rand) (R million)

16 Aug 2002 68 232 484.10 33.0 8 Nov 2002 294 867 600.00 176.9 25 Nov 2002 19 545 557.35 10.9 21 Jan 2003 72 512 594.25 43.1 2 Apr 2003 17 956 401.00 7.2 5 May 2003 38 654 381.00 14.7 Total 511 766 285.8

14 Other reserves Surplus of Total cost over Available- Translation carrying value for-sale of foreign of minorities investments subsidiaries

Balance 1 July 2002 393.4 152.3 545.7 Revaluation (Note 7) (192.8) (192.8) Currency translation differences (314.1) (314.1) Balance 30 June 2003 200.6 (161.8) 38.8 Revaluation (Note 7, 16) (48.6) (48.6) Currency translation differences (265.8) (265.8) Acquisition of Zimbabwe Platinum Mines Limited minorities (350.7) (350.7) Balance 30 June 2004 (350.7) 152.0 (427.6) (626.3)

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 120 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE 5Borrowings 15 amounts of short-term borrowingsamounts ofshort-term approximate theirfair value. rate carrying thatthedirectors expect would beavailable tothegroup atthebalancesheetdate.The The fair values are basedondiscountedcashflows usingadiscountrate basedontheborrowing were repaid on30June 2004. debentures 15.1%)perannum.These withtheotherhalfat10.1%(2003: of 18.9%perannum, Halfofthedebentures bore interest atafixed rate R178.0million). a bookvalue ofnil(2003: The debentures were secured by apledge offreehold includedinminingassetswith properties mineral totheNgezi rights pertaining SouthClaimsandapledge ofshares inthe agreement, apledge andcession oftheSpecialMiningLeaseNo.1 mining Platinum MinesLimited(70%), guarantees by ImpalaPlatinum HoldingsLimited(30%)andZimbabwe by project salesrevenue, debtissecured 7.25%).The average interest rateper annum.The during theyear was 7.55%(2003: loanbears interest atLondonInterbankOffer Rates(LIBOR)plus5% commencing March 2003.The The Absa bankloanwas obtainedtofinancetheNgezi/SMC Project andispayable over two years and isrepayable withinoneyear. The Indwa Investments Limited loanfacility bears current interest at8.4%perannum – Hartley Platinum Hartley Mines(Private) Limited – Minerals Hartley Zimbabwe (Private) Limited – Makwiro Platinum Mines(Private) Limited – following subsidiaries: The carryingamountandfair value of thebankloanisasfollows: Bank loans(US$) Debentures (Rand) The effective interest rates for theyear were asfollows: Total borrowings Absa BankLimited Non-current Debentures Absa BankLimited Indwa Investments Limited Current Bank loans(Rand) Bank overdrafts IMPLATS ANNUAL REPORT 2004 2004 arigaonsFair values Carrying amounts – Implats group – Year ended30June 2004 2003 62.7 568.6 15.25 568.6 500.0 2004 2004 6.36 51.4 8.30 17.2 % – – – – 204.7 17.00 267.4 118.9 2003 2003 62.7 62.7 62.7 85.8 6.12 % – – - (All amounts in Rand millions unless otherwise stated) 2004 2003

15 Borrowings (continued) 121

Maturity of non-current borrowings: Between 1 and 2 years – 62.7

Borrowing powers

In terms of the articles of association of the companies in the group, the borrowing powers of the group are determined by the directors but are limited to ordinary shareholders' interest.

Ordinary shareholders' interest 10 684.8 9 877.4 Currently utilised 568.6 267.4

16 Deferred income tax assets and liabilities

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.The offset amounts are as follows:

Deferred tax assets – Deferred tax asset to be recovered after more than 12 months (9.4) –

Deferred tax liabilities – net Deferred tax assets: – Deferred tax asset to be recovered after more than 12 months (131.0) (161.4)

Deferred tax liabilities: – Deferred tax liability to be recovered after more than 12 months 2 402.9 2 048.1 2 271.9 1 886.7

Deferred income taxes are calculated at the prevailing tax rates of the different fiscal authorities where the asset or liability originates. The movement on the deferred income tax account is as follows: At the beginning of the year 1 886.7 1 389.6 Acquisition of interest in subsidiaries and joint venture (Note 38) 56.7 49.9 Exchange adjustment on translation of foreign subsidiaries and joint venture (10.9) 46.4 Tax charged to equity (Note 14) (9.4) – Income statement charge (Note 32) 339.4 400.8 Net deferred tax liability at the end of the year 2 262.5 1 886.7

Deferred tax assets and liabilities are attributable to the following items:

Deferred tax liabilities Property, plant and equipment 2 356.4 1 874.2 Other 46.5 173.9 2 402.9 2 048.1 Deferred tax assets Substantially long term provisions (123.5) (119.2) Other (16.9) (42.2) (140.4) (161.4) Net deferred tax liability 2 262.5 1 886.7

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 122 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE 8Provision for future rehabilitation 18 Pension andotherpost-retirement obligations 17 their dependants.At theendoffinancialyear thefollowing fundswere inexistence: their dependants.At Independent fundsprovide pensionandotherbenefits toallpermanentemployees and ud isasfollows: Fund, Rehabilitation andClosure TrustThe movement oftheinvestment intheImpalaPollution, At endofyear Contributions At endofyear utilisedduring year Less: Charge totheincomestatement At beginning ofyear Future rehabilitation obligation At endofyear Contributions paid Current servicecost The amountsrecognised intheincomestatementwere as follows: Post-employment medicalbenefits SentinelPension Fund (industryfund) OldMutual–ZimascoPension Fund MineEmployees– Pension Fund (industryfund) – – MiningIndustryPension Fund Zimbabwe (industry fund) ImpalaSupplementaryPension Fund – – Impala Workers Provident Fund – ImpalaPlatinum Refineries – ImpalaProvident Fund – Pension andprovident plans At beginning ofyear R404.4million) Current costrehabilitation estimateisR455.7million(2003: Present value ofadditionalrehabilitation obligations (Note5) Exchange adjustmentontranslation offoreign subsidiaries andjointventure Disposal ofsubsidiary(Note30) Acquisition ofsubsidiaries andjointventure netofforeign currency exchange adjustment At beginning ofyear Movement intheliabilityrecognised inthebalancesheet: The total charge isincludedinoperating expenses (Note25) Interest accrued Total expense –asshown above rvdn ud–NationalSocialSecurity Zimbabwe Scheme (industryfund) – Provident Fund IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 207.3 214.1 200.2 (24.2) 2004 89.0 11.6 62.3 74.9 27.5 63.5 (6.8) (4.2) (1.0) 8.3 3.0 5.8 3.0 – 200.2 215.6 140.6 2003 (15.4) 74.9 31.6 63.5 60.9 37.2 66.9 (6.7) 8.9 6.2 3.3 5.1 3.3 – – (All amounts in Rand millions unless otherwise stated) 2004 2003

18 Provision for future rehabilitation (continued) 123

Future value of rehabilitation obligation 1 830.9 1 747.9 Future value of rehabilitation trust investment (964.2) (811.1) Future net environmental rehabilitation obligation 866.7 936.8

The future value of the rehabilitation obligation was calculated by inflating the current rehabilitation cost over 25 years to an estimated future rehabilitation cost.

The future value of the rehabilitation trust investment was calculated by assuming that the present balance in the rehabilitation trust will be invested at a risk free rate over 25 years.The shortfall will be funded by ongoing contributions to the trust.

Guarantees have been provided to the various Minerals and Energy Departments to satisfy the requirements of the Minerals and Energy Development Act with respect to environmental rehabilitation (Note 36).

19 Trade and other payables

Trade payables 1 542.5 1 547.5 Royalties payable 395.0 597.8 Leave liability 180.0 198.8 Payables to related parties (Note 39) 471.0 285.9 Forward commitments (Note 37) 158.7 125.8 Other payables 127.9 88.7 2 875.1 2 844.5

The uncovered foreign currency denominated balances as at 30 June were as follows:

Trade and other payables (US$ million) 15.9 9.5 Forward commitments (Note 37) 25.7 16.7 41.6 26.2

Royalties payable Comprises the accrual for royalty payments to the holders of mineral rights.The calculation is based on mining taxable income and is only finalised once that has been assessed by the South African Revenue Services. Payments are made in accordance with an agreed schedule.

Leave liability Employee entitlements to annual leave are recognised on an ongoing basis. The liability for annual leave as a result of services rendered by employees is accrued up to the balance sheet date.

20 On-mine operations

On-mine costs exclude amortisation and comprise the following principal categories: Labour 2 009.4 1 866.3 Materials and other mining costs 1 492.4 1 262.4 Utilities 165.9 122.4 3 667.7 3 251.1

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 124 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE 6Other(income)/expenses 26 Employee benefitexpenses 25 Otheroperating expenses 24 Netforeign exchange transaction losses 23 Refining operations 22 Concentrating andsmeltingoperations 21 principal categories: Concentrating andcomprise andsmeltingcostsexclude thefollowing amortisation Labour Other Exploration expenditure Other postretirement benefits(Note17) Wages andsalaries Employment costs Rehabilitation provision –inflationadjustment(Note18) Corporate costs Other costscomprise thefollowing principal categories: Forward cover contracts Sales The exchange differences charged totheincomestatementare included asfollows: Utilities Labour Refining andcomprise costsexclude thefollowing amortisation principal categories: Utilities Materials andothercosts Export incentive Export ofgoodwillAmortisation arising onacquisitionofassociates Recoupment ofinvestment inBrandrill Limited Pension costs–definedcontribution plans Selling andpromotional expenses Materials andothercosts Pension costs–definedbenefitplans IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 2 452.0 2 368.7 173.6 477.2 967.4 241.2 216.0 167.9 198.9 205.8 242.7 551.1 238.7 (11.4) (16.4) 2004 17.1 32.7 80.3 65.8 (3.4) 8.4 3.0 7.5 – – – 2 231.1 2 162.2 145.2 411.5 801.1 252.6 328.8 147.0 327.4 176.7 185.3 470.6 199.7 2003 54.7 38.6 16.4 35.1 56.0 89.2 (0.6) 9.9 1.4 6.8 3.3 9.6 – (All amounts in Rand millions unless otherwise stated) 2004 2003

27 Other gains – net 125

Other gains consist of the following principal categories: Interest income Short-term bank deposits 70.8 251.4 Loans and advances 11.8 32.9 Settlement discounts 9.3 10.7 Interest bearing securities 8.0 5.1 Employee loans 6.9 7.5 Other 0.6 0.9 107.4 308.5 Fair value gains/(losses) on financial instruments 18.1 (8.0) Dividends received 11.2 16.2 Metal lease fees 1.9 2.4 31.2 10.6 Total other gains – net 138.6 319.1

28 Finance costs

Bank borrowings (56.4) (7.8) Debentures (3.9) (10.5) Other (2.7) (2.4) Rehabilitation provision – adjustment for time value of money (Note 18) (4.1) (12.6) (67.1) (33.3)

29 Share of profit of associates

Lonplats (comprising Western Platinum Limited and Eastern Platinum Limited) (Note 6 i) 289.5 653.7 Makwiro Platinum Mines (Private) Limited – 25.0 Zimbabwe Platinum Mines Limited – 17.0 Mimosa Investments Limited (formerly ZCE Platinum Limited) – (4.0) Aquarius Platinum (South Africa) (Proprietary) Limited (Note 6 iii) 38.9 33.3 328.4 725.0

30 Sale of subsidiary

i) Barplats Investments Limited On 10 February 2004 the board of directors announced its intention to dispose of Barplats Investments Limited (Barplats), a subsidiary and reporting segment. Barplats houses the Crocodile River Mine and the Kennedy's Vale Mine. On 9 March 2004 a contract was signed with the Salene Consortium for the sale of Barplats for R388.8 million.

The decision to sell Barplats was based on several factors which included difficult mining conditions, complex geology, high cost structure and, given current market conditions, the mine was unprofitable.A further aggravating factor was the pre-feasibility study at Kennedy’s Vale Mine resulting in a project that is not viable due to current market conditions.

The process of selling Barplats was completed on 31 May 2004 with the approval of the Competitions Board of the transaction.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 126 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE 0Saleofsubsidiary(continued) 30 20:12monthsended30June) isas follows: (2003: The incomestatementofBarplats for the11monthsended31May Net casheffect Cash balancedisposed Proceed from saleofinvestment Profit onsaleofsubsidiary Minority interest Book value ofnetassetssold Trade andotherpayables Provision for future rehabilitation Cash andcashequivalents Trade andotherreceivables Inventories plantandequipment Property, Cash effect ofsalesubsidiary Net movement incashandequivalents Cash flows from financingactivities Total equityandliabilities Current liabilities Total assets Current assets Profit onsaleofsubsidiary Tax Sales Barplats Investments Limited(continued) Cash flows from investing activities Cash flows from operating activities Cash flow statement Capital andreserves attributable totheequityholders oftheholdingcompany Operating expenses Non-current liabilities Other (expense)/income Non-current assets Balance sheetasat31May 2004/30June 2003 Barplats businesssegment Loss for theyear IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 (116.1) (107.5) 294.2 388.6 388.8 322.3 215.7 207.5 116.1 207.5 322.3 112.9 206.2 (11.4) (24.2) (29.5) (33.5) (28.1) 2004 77.9 32.5 67.2 24.2 (0.2) (3.0) 0.2 2.1 0.2 1.3 0.0 – (198.2) 248.7 117.1 248.7 154.6 102.2 217.9 2003 (34.8) (32.5) (32.5) 11.1 30.8 30.9 29.4 3.9 0.0 – – (All amounts in Rand millions unless otherwise stated) 2004 2003

31 Profit before tax 127

The following items have been charged in arriving at profit before tax: Auditors' remuneration Fees for audit services 2.9 2.3 Fees for other services 0.2 0.3 Provisions Post-retirement medical benefits (Note 17) 3.0 3.3 Environmental rehabilitation charge (Note 18) 11.6 31.6 Amortisation of assets Goodwill of associate (Note 26) – 6.8 Mining assets (Note 5) 572.3 452.4 Depreciation of other assets (Note 5) 7.7 3.5 Repairs and maintenance expenditure on property, plant and equipment 161.5 141.3 Operating lease rentals 1.5 1.5 Professional fees 57.9 49.4 Employee benefit expense (Note 25) 2 452.0 2 231.1

32 Income tax expense

Current tax Mining 395.0 724.1 Non-mining 223.2 188.6 Prior year under provision – 1.6 618.2 914.3 Deferred tax (Note 16) Current year 360.9 400.8 Change in rate (21.5) – 339.4 400.8

Secondary tax on companies 140.3 251.0 Foreign tax 43.4 55.6 Capital gains tax – 0.4 183.7 307.0 Tax for the year 1 141.3 1 622.1

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 128 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE 3Earningspershare 33 Incometaxexpense (continued) 32 assuming theexercise oftheshare options. calculated asabove iscompared withthenumber ofshares thatwould have beenissued number ofshares value ofthesubscription rightstotheoutstandingshare attached options.The as theaverage annual market share price ofthecompany’s shares) basedonthemonetary to determinethenumber ofshares thatcouldhave beenacquired atfair value (determined calculationisperformed of share optionsgranted toemployees undertheshare optionscheme.A shares outstandingtoassumeconversion ofallpotentialdilutive ordinary shares asaresult Diluted earningspershare iscalculatedby adjustingtheweighted average number ofordinary of ordinary shares inissueduring theyear. Basic earningspershare iscalculatedby dividingthenetprofit by theweighted average number using thebasictaxrate: The taxofthegroup's profit differs asfollows from thetheoretical charge thatwould arise Normal taxrate for companies Adjustments for share options(millions) Profit attributable toequityholders ofthecompany Profit attributable toequityholders ofthecompany Effective taxrate Secondary taxoncompanies Disallowable expenditure Adjusted for: Diluted earningspershare (cents) Weighted average number ofordinary shares for dilutedearningspershare (millions) Weighted average number ofordinary shares inissue(millions) Basic earningspershare (cents) Weighted average number ofordinary shares inissue(millions) Effect oftaxationforeign subsidiaries Effect ofdifferent taxrates ofassociates Exempt income From discontinuing operations From discontinuing operations From continuing operations From continuing operations IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 2 963.0 2 963.0 66.697 66.580 66.580 0.117 4 442 4 450 4 001 4 008 2004 30.0 27.7 (1.3) (2.4) (2.4) 441 442 3.4 0.4 % 3 415.1 3 415.1 66.714 66.562 66.562 5 119 5 131 5 168 5 180 0.152 2003 30.0 32.1 (4.3) (0.1) (49) (49) 5.0 1.5 % – (All amounts in Rand millions unless otherwise stated) 2004 2003

33 Earnings per share (continued) 129

The calculation for headline earnings per share is based on the basic earnings per share calculation adjusted for the following items:

Profit attributable to equity holders of the company 2 963.0 3 415.1 Add: amortisation of goodwill – 6.8 Less: profit on sale of investment in Brandrill Limited – (0.6) Less: profit on sale of Barplats Investments Limited (322.3) – Headline earnings 2 640.7 3 421.3

Headline earnings per share (cents) – basic 3 966 5 140 – diluted 3 959 5 128

34 Dividends per share

At the Board Meeting on 27 August 2004, a final dividend in respect of 2004 of 1 600 cents per share amounting to a total dividend of R1 065.9 million was approved. Standard Tax on Companies (STC) on the dividend will amount to R123.1 million.

These financial statements do not reflect this dividend and related STC payable.The dividend will be accounted for in shareholders’ equity as an appropriation of retained earnings in the year ending 30 June 2005.

Dividends paid Final dividend No. 71 for 2003 of 1 750 (2002: 2 600) cents per share 1 165.4 1 730.4 Interim dividend No. 72 for 2004 of 500 (2003: 900) cents per share 332.6 599.3 1 498.0 2 329.7 Dividend cover relating to dividends paid and proposed in the financial year Based on net profit 2.1 1.9 Based on headline earnings (Note 33) 1.9 1.9

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 130 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE 6Contingent liabilitiesandguarantees 36 Cashgenerated from operations 35 that nomaterial liabilitieswillarise. and othermatters arising intheordinary course ofbusinessfrom whichitisanticipated At year endthegroup hadcontingent liabilitiesinrespect ofbankandotherguarantees Lonplats (comprising Western Platinum LimitedandEasternPlatinum Limited) Related contingencies party Total contingencies Registrar ofMedical Aids Aquarius Platinum (South Africa) (Proprietary) Limited Cash generated from operations Profit Reconciliation ofnetprofit tocashgenerated from operations: u oteucranisrgrigtetmn n mut,potentialoutflows cannot bequantified. regardingDue totheuncertainties thetiming andamounts, guaranteed by: Makwiro Platinum Mines (Private) Limited, Minority interest Profit ondisposalofsubsidiary(Note30) Adjustments for: Income taxexpense (Note32) Collateral security for employee housing Depreciation (Note31) Department ofMineralsDepartment andEnergy (Note31) Amortisation Finance cost(Note28) Dividend income(Note27) Interest income(Note27) Fair value onfinancialinstruments (profit)/loss (Note27) Retirement benefitobligations (Note17) Non-cash transactions 6) Share ofresults ofassociates(Note29, ofgoodwill (Note26) Amortisation niomna eaiiaincag Nt 8 28) Environmental rehabilitation charge (Note18, Payments madefor post-retirement benefits(Note17) Accruals Payables Trade andotherreceivables Inventories Changes inworking capital(excluding theeffects ofacquisitionanddisposalsubsidiaries): Payments madefor rehabilitation (Note18) Impala Platinum HoldingsLimited Zimbabwe Platinum Mines Limited IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 3 140.1 2 963.0 1 141.3 (322.3) (107.4) (328.4) (473.2) (634.2) (398.5) 342.4 175.0 175.0 103.7 572.3 661.0 (11.2) (18.1) 2004 15.4 17.4 36.0 67.1 11.6 (4.2) (6.8) 5.0 7.3 7.7 3.0 – – – 4 335.3 3 415.1 1 622.1 (166.9) (308.5) (293.8) (725.0) (571.6) (133.5) 445.9 256.5 175.0 127.1 452.4 131.2 868.9 2003 (16.2) (15.4) 81.5 54.5 33.3 28.3 (6.7) 7.8 3.5 8.0 6.8 3.3 – – – (All amounts in Rand millions unless otherwise stated) 2004 2003

37 Commitments 131

Commitments at the balance sheet date but not recognised in the financial statements are as follows:

Mining property, plant and equipment Commitments contracted for 603.2 986.3 Approved expenditure not yet contracted 1 844.4 1 882.7 2 447.6 2 869.0

Not later than 1 year 625.0 1 650.5 Later than 1 year not later than 5 years 1 822.6 1 114.3 Later than 5 years – 104.2 2 447.6 2 869.0

Operating lease rentals for mining accommodation Not later than 1 year 2.3 2.1 Later than 1 year not later than 5 years 10.8 10.1 Later than 5 years 10.2 13.2 23.3 25.4

This expenditure will be funded internally and if necessary, from borrowings.

Metal purchase commitments From time to time, in order to finance third party refining, Impala Refining Services Limited sells refined metal, held on behalf of third parties, into the market with a commitment to repurchase at a later date.

The forward commitments, recognised in the financial statements, were as follows:

Foreign currency US$ millions 25.7 16.7 Fair value R millions (not later than 1 year) (Note 19) 158.7 125.8

38 Business combinations

i) Zimbabwe Platinum Mines Limited During September 2003 an offer to the minorities of Zimbabwe Platinum Mines Limited was made at R20.40 (A$4.08) per share.The result of this offer was the acquisition of 30.6 million shares for a consideration of R599.4 million (A$125.8 million). A further 1.6 million shares have been acquired by year end for an amount of R32.5 million (A$6.7 million). The result of these transactions was to increase the holding of the group in Zimbabwe Platinum Mines Limited from 50.5% to 83.4%.

The increase in its shareholding in Zimbabwe Platinum Mines Limited, during the previous financial year, resulted in the fair value of net assets acquired being in excess of the purchase consideration. In previous financial years, purchases resulted in a surplus of purchase price over net assets which was offset against the above mentioned excess.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 132 ANNUAL FINANCIAL STATEMENTS (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE 8Businesscombinations(continued) 38 i MimosaInvestments Limited(formerly ZCEPlatinumLimited) ii) R111.4 million. June 2003were respectively R504.4millionand assetsandliabilitiesat30 proportional andits for theperiod from 31 August 2002to30Juneof inter-group 2003, transactions, before elimination revenues ofR246.7millionandoperating profit ofR108.5million tothegroup, The acquired businesscontributed results were proportionally consolidatedasfrom thatdate. increased thegroup's holdingto50%andconsequently thecompany's PGMs inZimbabwe.This involved intheminingof Limited (whichowns MimosaMiningCompany (Private) Limited), On 1July 2002thegroup 15%oftheshare acquired capitalofMimosaInvestments afurther no plantclosure provisions orotherrestructuring provisions were established. and The fair value ofnetassetsapproximated tothebook value ofnetassetsacquired, Total purchase consideration Carrying value ofminorities acquired Transfer tootherreserves arigvleo soit netet (252.8) (129.2) (134.8) 1190.6 Cash outflow onacquisition Cash andcashequivalents insubsidiaryacquired Carrying value ofassociateinvestment Less: Total purchase consideration Surplus ofnetassetsover purchase consideration Fair value ofnetassetsacquired Minority interests Borrowings Payables Receivables Inventories Mining interests plantandequipment(Note5) Property, Cash andcashequivalents The assetsandliabilitiesarising from theacquisitioninprior year are asfollows: Surplus ofnetassetsover purchase consideration Fair value ofnetassetsacquired Purchase consideration: Details ofnetassetsacquired andgoodwill are asfollows: Carrying value ofinvestment inassociate Cash paid IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 (281.2) (350.7) 631.9 631.9 2004 – – – – (775.2) (319.5) (134.8) (596.8) 252.8 462.0 462.0 596.8 164.8 235.2 129.2 209.2 2003 (79.5) 80.0 51.2 – – (All amounts in Rand millions unless otherwise stated) 2004 2003

38 Business combinations (continue) 133

ii) Mimosa Holdings Limited (formerly ZCE Platinum Limited) Details of net assets acquired are as follows:

Purchase consideration: Cash paid 130.3 Carrying value of associate investment 270.2 Total purchase consideration 400.5 Fair value of net assets acquired 400.5 – –

Other than for mining assets, the fair value of the net assets acquired approximated the book value of the net assets acquired, and no plant closure provisions or other restructuring provisions were established.

The assets and liabilities arising from the acquisition in the prior year are as follows:

Cash and cash equivalents 99.9 Property, plant and equipment (Note 5) 356.1 Available-for-sale investments 0.1 Inventories 7.3 Receivables 14.5 Payables (6.9) Borrowings (11.1) Rehabilitation provision (9.5) Deferred tax (49.9) Fair value of net assets acquired 400.5 Less: Carrying value of associate investment (270.2) Cash and cash equivalents in joint venture acquired (99.9) Cash outflow on acquisition – 30.4

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 134 ANNUAL FINANCIAL STATEMENTS 9Related transactions party 39 (All amountsinRandmillionsunlessotherwisestated) STATEMENTSNOTESCONSOLIDATED TOFINANCIAL THE 0Principal subsidiaries 40 sdslsdi h ietr’report. is disclosedinthedirectors’ The aggregate number ofshare optionsgranted tothedirectors andkey management report. directors’ Loans todirectors andkey management ofthecompany have beendisclosedinthe The principal subsidiaries ofthe group are setoutin Annexure A. Guarantees provided (Note36) End oftheyear Receivables from associates Payables toassociates Purchases ofmineral concentrates Sales ofservices Sales ofgoods andservicestoassociates The following transactions were carried outwithrelated parties: Purchases ofgoods andservicesfrom associates Share optionsgranted todirectors Contingencies Beginning oftheyear Loans toassociates: Loans torelated parties Year-end balancesarising from sales/purchases ofgoods/services report. Key management compensationhasbeendisclosedinthedirectors’ Key management compensation Interest received Interest Refining fees Loans advanced during year Interest charged Loan repayments received IMPLATS ANNUAL REPORT 2004 Implats group – Year ended30June 2004 1 314.6 1 129.5 (953.7) 260.9 175.0 245.8 246.3 471.0 255.4 2004 70.0 (4.7) 5.5 4.7 129.7 256.5 285.9 856.2 129.6 2003 70.0 82.0 70.0 (0.1) 0.1 0.1 – – (All amounts in Rand millions unless otherwise stated) 2004 2003

41 Interest in joint venture 135

The group has a 50% interest in a joint venture, Mimosa Investments Limited (previously ZCE Platinum Limited), which is involved in the business of mining PGMs.The following amounts represent the group’s 50% share of the assets and liabilities and sales and results of the joint venture and are included in the consolidated balance sheet and income statement:

Property, plant and equipment 364.5 367.7 Current assets 8.4 42.6 372.9 410.3

Provisions for liabilities and charges (43.6) (67.3) Current liabilities (67.8) (21.5) (111.4) (88.8) Net assets 261.5 321.5

Sales 246.7 159.4 Inter-group sales are eliminated on consolidation.

Profit before tax 108.5 57.9 Income tax expense (16.2) (14.1) Profit after tax 92.3 43.8

There are no contingent liabilities relating to the group’s interest in the joint venture.

42 Events after the balance sheet date

Post balance sheet events are disclosed in the directors’ report.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 136 ANNUAL FINANCIAL STATEMENTS Balance sheet Income statement These financialstatementshave beenapproved for issueby the board ofdirectors on 27 August 2004. rpry ln n qimn – – – 3 2 4 1 2 Available-for-sale financialinvestments Deferred incometaxassets Investments insubsidiaries andjointventure Investments inassociates plantandequipment Property, Non-current assets ASSETS te epne)icm 11 Other (expenses)/income rd n te eevbe 6 Trade andotherreceivables Current assets Alaonsi admlin nesohriesae)Notes (All amountsinRandmillionsunlessotherwisestated) te eevs9 Other reserves noetxepne14 12 433.1 1 2311.9 The notesonpages 139to142are anintegral ofthesefinancialstatements. part Profit for theyear attributable toequity holders ofthecompany Income taxexpense 10 Profit before tax Other gains –net – 8 – 7 5 Total equityandliabilities Total liabilities Current taxliabilities Trade andotherpayables Current liabilities LIABILITIES Total equity Retained earnings Share capital EQUITY Total assets Cash andcashequivalents Other receivables Alaonsi admlin nesohriesae)Notes (All amountsinRandmillionsunlessotherwisestated) Impala Platinum HoldingsLimited–asat30June 2004 Impala Platinum HoldingsLimited– Year ended30June 2004 IMPLATS ANNUAL REPORT 2004 13 1 061.0 1 046.7 2 303.5 1 484.2 2 294.4 1 515.1 2 311.9 1 440.6 186.4 152.0 627.3 (43.6) 2004 2004 Year ended30June 17.5 10.2 (7.5) 9.4 8.4 8.4 7.3 0.0 As at30June 1 575.7 1 155.3 2 367.0 3 796.8 2 409.6 2 229.3 2 398.4 1 580.0 2 409.6 3 805.0 229.7 982.0 200.6 617.8 2003 2003 42.6 42.6 11.2 (8.2) 3.1 8.1 0.0 – Statement of changes in shareholders’ equity Impala Platinum Holdings Limited – Year ended 30 June 2004 137

Share Other Retained (All amounts in Rand millions unless oherwise stated) Notes capital reserves earnings Total

Balance at 30 June 2002 602.9 393.4 112.9 1 109.2

Fair value losses net of tax: Available-for-sale financial assets 9 (192.8) (192.8) Net expense recognised directly in equity (192.8) (192.8) Profit for the year 3 796.8 3 796.8 (192.8) 3 796.8 3 604.0

Employee share option scheme: Proceeds from shares issued 8 14.9 14.9 Dividend relating to 2002 15 (1 730.4) (1 730.4) Dividend relating to 2003 15 (599.3) (599.3) 14.9 (2 329.7) (2 314.8)

Balance at 30 June 2003 617.8 200.6 1 580.0 2 398.4

Fair value losses net of tax: Available-for-sale financial assets 9 (48.6) (48.6) Net expense recognised directly in equity (48.6) (48.6) Profit for the year 1 433.1 1 433.1 (48.6) 1 433.1 1 384.5

Employee share option scheme: Proceeds from shares issued 8 9.5 9.5 Dividend relating to 2003 15 (1 165.4) (1 165.4) Dividend relating to 2004 15 (332.6) (332.6) 9.5 (1 498.0) (1 488.5)

Balance at 30 June 2004 627.3 152.0 1 515.1 2 294.4

The notes on pages 139 to 142 are an integral part of these financial statements.

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL Cash flow statement Impala Platinum Holdings Limited – Year ended 30 June 2004 138

Year ended 30 June (All amounts in Rand millions unless oherwise stated) Notes 2004 2003

Cash flows from operating activities Cash generated from operations 16 1 452.9 2 154.5 Tax paid (8.3) (6.6) Net cash from operating activities 1 444.6 2 147.9

Cash flows from investing activities Purchase of investments in associates 2 (42.0) (11.2) Purchase of investments in subsidiaries (633.7) (481.6) Purchase of unlisted investments 4 (14.7) – Loans repaid by subsidiaries 728.0 613.4 Loans repaid by related parties and other undertakings 5 – 18.5 Interest received 3.5 6.1 Dividends received 12 2.8 21.7 Net cash used in investing activities 43.9 166.9

Cash flows from financing activities Issue of ordinary shares 8 9.5 14.9 Dividends paid to shareholders 15 (1 498.0) (2 329.7) Net cash used in financing activities (1 488.5) (2 314.8)

Cash and cash equivalents at end of year – –

The notes on pages 139 to 142 are an integral part of these financial statements.

ANNUAL FINANCIAL STATEMENTS ANNUAL IMPLATS ANNUAL REPORT 2004 Notes to the company financial statements Impala Platinum Holdings Limited – Year ended 30 June 2004 139 (All amounts in Rand millions unless otherwise stated) 2004 2003

1 Property, plant and equipment

Other assets Cost Opening net book amount – 0.2 Disposals – (0.2) Closing net book amount – –

2 Investments in subsidiaries, associates and joint ventures

Associates 1 046.7 982.0 Subsidiaries and joint venture (Annexure A) 1 061.0 1 155.3 2 107.7 2 137.3 Associates At cost Makwiro Platinum Mines (Private) Limited 247.0 247.0 Two Rivers Platinum (Proprietary) Limited 316.8 274.8 Aquarius Platinum (South Africa) (Proprietary) Limited 482.9 460.2 Total investments in associates 1 046.7 982.0

3 Deferred income tax assets

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.The offset amounts are as follows:

Deferred tax assets: – Deferred tax asset to be recovered after more than 12 months 9.4 –

Deferred income taxes are calculated at the prevailing tax rates of the different fiscal authorities where the asset or liability originates.

The movement on the deferred income tax account is as follows: At the beginning of the year – – Tax credit to equity (Note 9) 9.4 – At the end of the year 9.4 –

4 Available-for-sale financial investments

Investments in listed shares Comprise shares in the following listed companies

Aquarius Platinum Limited

Beginning of the year 229.7 422.5 Exchange differences (27.7) (41.6) Share price movement (30.3) (151.2) End of the year 171.7 229.7

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL NOTES TO THE FINANCIAL STATEMENTS Impala Platinum Holdings Limited – Year ended 30 June 2004

(All amounts in Rand millions unless otherwise stated) 2004 2003

140 4 Available-for-sale financial investments (continued)

During the period under review, the company maintained its strategic shareholding in Aquarius Platinum Limited, holding 7 141 966 shares (2003: 7 141 966) which amounts to approximately 8.6% (2003: 8.9%) of the issued share capital of that company.The shares are currently listed on the Australian Stock Exchange and the London Stock Exchange.The fair value of these shares as at the close of business on 30 June 2004 by reference to Stock Exchange quoted prices and closing exchange rates was R171.7 million (2003: R229.7 million).

Investment in unlisted shares Shares beneficially owned in the undermentioned concern at fair value:

Silplat (Proprietary) Limited 14.7 – 186.4 229.7

5 Non-current receivables and prepayments

Loans Messina Platinum Mines Limited – 23.5 Less: current portion of loan (Note 6) – (23.5) – –

The Messina Platinum Mines Limited loan bore interest at JIBAR plus 6%, and was repaid during 2004.

6 Current receivables and prepayments

Other receivables 8.4 19.1 Current portion of loans (Note 5) – 23.5 8.4 42.6

7 Cash and cash equivalents

For the purposes of the cash flow statement, the cash and cash equivalents comprise cash and bank balances. 0.0 0.0

8 Share capital and share premium

Number of Ordinary Share shares shares premium Total (millions) R million R million R million

At 30 June 2002 66.554 13.3 589.6 602.9 Issued in terms of the share option scheme 0.040 0.0 14.9 14.9 At 30 June 2003 66.594 13.3 604.5 617.8 Issued in terms of the share option scheme 0.027 0.0 9.5 9.5 At 30 June 2004 66.621 13.3 614.0 627.3

The total authorised ordinary share capital comprise 100 million (2003: 100 million) shares with a par value of 20 cents each.All issued shares are fully paid.

ANNUAL FINANCIAL STATEMENTS ANNUAL IMPLATS ANNUAL REPORT 2004 (All amounts in Rand millions unless otherwise stated) 2004 2003

8 Share capital and share premium (continued) 141

Authorised amount 20.0 20.0 Up to 10% of the unissued shares may be issued by the directors at their discretion until the next annual general meeting.

9 Other reserves Available-for-sale investments Balance 1 July 2002 393.4 Revaluation – gross (Note 4) (192.8) Balance 30 June 2003 200.6 Revaluation – gross (Note 4) (58.0) Revaluation – tax (Note 3) 9.4 Balance 30 June 2004 152.0

10 Trade and other payables

Trade payables 10.2 3.1

11 Other (expenses)/income

Exploration expenditure (8.9) (31.9) Recoupment of investment in Brandrill Limited – 0.6 Professional fees (26.0) (5.5) Profit on sale of mineral right to Impala Platinum Limited – 1 620.9 Other (8.7) (8.4) (43.6) 1 575.7

12 Other gains

Other gains consist of the following principal categories: Interest income 26.2 6.1 Dividends received – investments 2.8 21.7 Dividends received – subsidiaries 1 455.2 2 201.5 1 484.2 2 229.3

13 Profit before tax

The following items have been charged in arriving at profit before tax: Auditors' remuneration Fees for audit services 0.3 0.1 Professional fees 26.0 5.5

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL 142 ANNUAL FINANCIAL STATEMENTS 6Cashgenerated from operations 16 Dividendspershare 15 Incometaxexpense 14 (All amountsinRandmillionsunlessotherwisestated) NOTES TO THE FINANCIAL STATEMENTSNOTESFINANCIAL TO THE arise usingthebasictaxrate: The taxofthecompany's profit differs as follows from thetheoretical charge thatwould in theyear ending30June 2005. equityasanappropriation ofretained earnings will beaccountedfor inshareholders’ dividend These financialstatementsdonotreflect thisdividendandrelated STCpayable.The dividend willamounttoR123.1million. STConthe per share amountingtoatotaldividendofR1 065.9millionwas approved. afinaldividendinrespect of20041600cents At theboard meetingon27 August 2004, ia iiedN.7 o 03o 5 20:2600)centspershare 71for 2003of1750(2002: Final dividendNo. Dividends paid Cash generated from operations Trade andotherpayables Income taxexpense (Note14) Adjustments for: Profit Reconciliation ofnetprofit tocashgenerated from operations: 900)centspershare 72for 2004of500(2003: Interim dividendNo. Effective taxrate Exempt income Capital gains tax Current tax Normal taxrate for companies rfto aeo iea ihst maaPaiu iie – (1 620.9) – Trade andotherreceivables Changes inworking capital: Profit onsaleofmineral rights toImpalaPlatinum Limited Dividend income Interest income(Note12) Disallowable expenditure Adjusted for: Charge for theyear IMPLATS ANNUAL REPORT 2004 Impala Platinum HoldingsLimited– Year ended30June 2004 1 165.4 1 452.9 1 433.1 1 498.0 332.6 (30.3) (26.2) 2004 30.0 34.2 (2.8) 7.5 7.5 7.5 7.1 7.5 0.5 0.8 % – 0.4 1 730.4 2 154.5 3 796.8 2 329.7 599.3 2003 (30.2) (21.7) 30.0 (2.7) (6.1) 8.2 7.8 7.8 0.9 8.2 0.2 0.4 % Annexure A Impala Platinum Holdings Limited – Year ended 30 June 2004 143 Investment in subsidiaries and joint venture Issued Effective Book value in holding company share group interest Shares Loans capital 2004 2003 2004 2003 2004 2003 Company and description % % R Million R Million R Million R Million

Impala Holdings Limited * 100 100 (1 355.1) (1 012.9) Investment holding company Impala Platinum Limited * 100 100 Mines, refines and markets PGMs Impala Platinum Investments (Pty) Ltd * 100 100 Impala Platinum Properties (Rustenburg) (Pty) Ltd * 100 100 Impala Platinum Properties (Johannesburg) (Pty) Ltd * 100 100 Own properties Barplats Holdings (Pty) Ltd * 100 100 68.0 68.0 (359.6) 29.4 Investment holding company Gazelle Platinum Limited * 100 100 324.5 324.5 Investment holding company Impala Refining Services Limited * 100 100 Provides toll refining services Impala Platinum Japan Limited 1 ¥ 10m 100 100 1.5 1.5 (0.2) (0.4) Marketing representative Impala Platinum Zimbabwe (Pty) Ltd * 100 100 72.8 72.8 350.7 349.2 Investment holding company Zimbabwe Platinum Mines Limited**2 US$ 9.3m 83 51 631.9 Owns mineral rights and mines PGMs Makwiro Platinum (Pvt) Limited4 US$30.1m 88 65 Owns mineral rights and mines PGMs Mimosa Investments Ltd (formerly ZCE Platinum Ltd3) US$48.0m 50 50 376.6 376.6 Investment holding company Mimosa Holdings (Pvt) Ltd (formerly Zimasco Platinum Holdings (Pvt) Ltd4 ) US$28.8m 50 50 Investment holding company Mimosa Platinum (Pvt) Ltd4 US$28.8m 50 50 Owns mineral rights and mines PGMs Marula Platinum (Pty) Ltd * 100 100 885.9 885.9 60.3 60.3 Owns mineral rights and mines PGMs Sundry dormant companies * 100 100 3.7 0.6 0.0 (0.2) Total 2 040.4 1 405.4 (979.4) (250.1) Total investment at cost 1 061.0 1 155.3

* Share capital less than R50 000 ** Listed on the Australian Stock Exchange 1 Incorporated in Japan 2 Incorporated in Guernsey 3 Incorporated in Mauritius 4 Incorporated in Zimbabwe

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL Notice to shareholders 144 The forty-eighth annual general meeting of members will be held in the Boardroom,3rd Floor,Old Trafford 4,Isle of Houghton,Boundary Road, Houghton on Friday, 29 October 2004 at 09:00 for the following purposes:

Annual Financial Statements

1. To receive and consider the financial statements for the year ended 30 June 2004.

Directorate 2. To confirm the appointment as directors of the company of: Messrs RSN Dabengwa LC van Vught Drs FJP Roux K Mokhele, and Ms NDB Orleyn

3. To elect directors in place of those retiring in terms of the articles of association. The following directors are eligible and offer themselves for re-election: Messrs JV Roberts JM McMahon, and Ms CE Markus

4. To determine the remuneration of the directors (refer to page 90 of the Directors’ Report)

Control of unissued capital 5. To consider, and if deemed fit, to pass with or without modification the undermentioned resolution as an ordinary resolution: “That the authorised but unissued shares in the capital of the company be placed at the disposal and under the control of the directors of the company and the directors are hereby authorised and empowered to allot, issue and otherwise dispose thereof to such person or persons and on such terms and conditions at their discretion subject to a maximum of 10% of the issued share capital and the provisions of the Companies Act”.

6. To consider, and if deemed fit, to pass with or without modification the following resolution as an ordinary resolution: “Resolved that, subject to compliance with the Listings Requirements of the JSE Securities Exchange South Africa (“JSE”) and the approval of a 75% (seventy-five percent) majority of the votes cast by the shareholders of the company present in person or by proxy and entitled to vote at the meeting at which this resolution is proposed, the directors of the company are hereby authorised by way of a general authority to allot and issue the unissued ordinary shares in the capital of the company for cash, without restrictions as to whom the shares will be issued, as and when suitable opportunities arise, subject to the following conditions:

a. that this authority shall lapse on the earlier of the date of the next annual general meeting of the company or the date 15 (fifteen) months after the date on which this resolution is passed;

b. a paid press announcement giving full details,including the impact on net asset value and earnings per share,will be published at the time of any issue representing, on a cumulative basis within 1 (one) year, 5% (five percent) or more of the number of shares in issue prior to the issue(s);

c. that the issues in the aggregate in any 1 (one) year shall not exceed 15% (fifteen percent) of the number of shares of the Company’s issued ordinary share capital;

d. that, in determining the price at which an issue of shares will be made in terms of this authority, the maximum discount permitted shall be 10% (ten percent) of the average closing price on the JSE of the ordinary shares, adjusted for any dividend declared but not yet paid or for any capitalisation award made to shareholders, as determined over the 30 (thirty) business days prior to either the date of the paid press announcement or, where no announcement is required and none has been made, the date of issue of the shares; and

e. that any issue in terms of this general authority shall be made only to public shareholders as defined in the aforesaid Listings Requirements.”

ANNUAL FINANCIAL STATEMENTS ANNUAL IMPLATS ANNUAL REPORT 2004 Special business 7. To pass with or without modification the following resolution as a special resolution: 145 Share buy-backs Special Resolution Resolved that the Company and/or any of its subsidiaries from time to time are hereby authorised,by way of a general authority,to:

(a) acquire ordinary shares of 20 (twenty) cents each (“Ordinary Shares”) issued by the company in terms of Sections 85 and 89 of the Companies Act, No. 61 of 1973, as amended, and in terms of the Listing Requirements from time to time of the JSE Securities Exchange South Africa (“the Listing Requirements”); and/or

(b) to conclude derivative transactions which may result in the purchase of ordinary shares in terms of the Listing Requirements, it being recorded that such Listing Requirements currently require, inter alia, that:

(i) the Company may make a general repurchase of securities only if any such repurchase of ordinary share shall be implemented on the Main Board of the JSE Securities Exchange South Africa (“JSE”) or any other stock exchange on which the shares are listed and on which the Company or any of its subsidiaries may wish to implement any purchases of ordinary shares with the approval of the JSE and any other such stock exchange, as necessary;

(ii) this general authority shall only be valid until the Company’s next annual general meeting, provided that it shall not extend beyond 15 (fifteen) months from the date of passing of this special resolution;

(iii) the purchase of the ordinary shares may not be made at a price greater than 10% (ten percent) above the weighted average of the market value of such ordinary shares for the 5 (five) business days immediately preceding the date of the transaction;

(iv) any derivative transactions which may result in the repurchase of ordinary shares must be priced as follows:

(1) the strike price of any put option written by the company may not be at a price greater than stipulated in paragraph (iii) above at the time of entering into the derivative agreement;

(2) the strike price of any call option may be greater than stipulated in paragraph (iii) above at the time of entering into the derivative agreement, but the Company may not exercise that call option if it is “out of the money”;

(3) the strike price of any forward agreement may be greater that the price indicated in paragraph (iii) above but limited to the fair value of a forward agreement based on a spot price not greater than stipulated in paragraph (iii) above;

(v) when the Company and/or any of its subsidiaries has cumulatively purchased 3% (three percent) of the number of ordinary shares in issue on the date of passing of this special resolution (including the delta equivalent of any such ordinary shares underlying derivative transactions which may result in the repurchase by the company of ordinary shares),and for each 3% (three percent) thereof in aggregate,acquired thereafter,an announcement must be published as soon as possible and not later than 08:30 on the business day following the day on which the relevant threshold is reached or exceeded, and the announcement must comply with the Listing Requirements;

(vi) any general purchase by the Company and/or any of its subsidiaries of the Company’s ordinary shares in issue shall not in aggregate, in any one financial year, exceed 10% (ten percent) of the Company’s issued ordinary share capital.

The reason for the special resolution is to obtain, and the effect thereof is to grant the company a general authority in terms of the Companies Act, 1973, as amended, for the acquisition by the company and/or any of its subsidiaries of shares in the capital of the company,which general authority shall be valid until the next annual general meeting of the company,provided that the general authority shall not extend beyond fifteen months from the date at which this special resolution is passed.

The board of directors, as at the date of this notice, has stated its intention to examine methods of returning capital to shareholders in terms of the general authority granted at the last annual general meeting.The board believes it to be in the best interest of Implats that

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL NOTICE TO SHAREHOLDERS

shareholders pass a special resolution granting the company and/ or its subsidiaries a further general authority to acquire Implats shares. Such general authority will provide Implats and its subsidiaries with the flexibility, subject to the requirements of the Companies Act 146 and the JSE, to purchase shares should it be in the interest of Implats and/or its subsidiaries at any time while the general authority subsists.

The directors have considered the impact which a purchase of up to a maximum of 10% of the Company’s issued ordinary share capital and a general authority would have on the Company and/or its subsidiaries (together “the group”) and are of the opinion that for a period of twelve months from the date of this notice:

– the company and the group will in the ordinary course of business be able to pay its debts;

– the assets of the company and the group will be in excess of the liabilities of the company and the group calculated in accordance with the accounting policies used in the audited financial statements for the year ended 30 June 2004; and

– the ordinary capital, working capital and reserves of the company and the group will be adequate;

By order of the board

R Mahadevey Group Secretary

27 August 2004

Registered Office 3rd Floor Old Trafford 4 Isle of Houghton Boundary Road Houghton 2198

Note:A member entitled to attend and vote is entitled to appoint one or more proxies to attend and speak and vote in his stead.A proxy need not be a member.

ANNUAL FINANCIAL STATEMENTS ANNUAL IMPLATS ANNUAL REPORT 2004 inda n2004 on Signature Signed at shares intheissuedcapitalofcompany registered inmy/our name/s(seeNote2). andateach 29October 2004, Johannesburg at09:00onFriday, Houghton, andtovote for and/oragainst theresolutions and/orabstainfrom voting inrespect ofthe adjournment orpostponementthereof, BoundaryRoad, IsleofHoughton, 4, Trafford Old 3rd Floor, As my/our proxy toactfor me/usattheannual general meetingofthecompany whichwillbeheldintheBoardroom, oftheannual thechairman general meeting. 3. 2. 1. appoint (SeeNote1): of I/We For 29October2004at09:00(theannual general useattheannual general meeting) meetingofthecompany tobe heldonFriday, votingattached instruction form (blue) members Such must usethe This form ofproxy isnotfor useby members who have already dematerialised theirImplatsshares. Insert in therelevantInsert spaceabove thenumber ofshares held. Special resolution –share buy-back Unissued shares remuneration Directors’ Re-election ofdirectors ofdirectorsAppointment Resolutions eea 5 6 issue for cash general JV Roberts JM McMahon CE Markus LC van Vught FJP Roux NDB Orleyn K Mokhele RSN Dabengwa Form ofproxy IMPLATS ANNUAL REPORT 2004 ONLY FORUSEBYREGISTEREDMEMBERS eouinNumberofordinary shares Resolution 7 4 3 2 o gis Abstain Against For (“Implats” or “the Company”) or“the (“Implats” (Share code:IMP)(ISIN:ZAE000003554) 1957/001979/06) (Registration number: (Incorporated intheRepublic ofSouth Africa) IMPALA PLATINUM HOLDINGSLIMITED r failing him, or, failing him, or,

ANNUAL FINANCIAL STATEMENTS 147 148 ANNUAL FINANCIAL STATEMENTS .Ashareholder maythenameofaproxy insert orthenamesoftwo alternative proxies oftheshareholder’s inthespace choice 1. Notes FORM OFPROXY .The completionandlodging ofthisform willnotpreclude therelevant shareholder from attendingtheannual general meeting 5. Documentaryevidence establishingtheauthority ofaperson signingthisform ofproxy inarepresentative capacitymust be 4. Any alteration orcorrection tothisform must beinitialledby thesignatory/ies. 3. Ashareholder’s instructions totheproxy must beindicatedbyoftherelevant theinsertion number ofvotes exercisable by t 2. 01Worthing BN996DA West Sussex The Causeway ClientServices London Transfer Secretaries 2107) Marshalltown Lloyds TSB Registrars (PO Box 61051 2001 Johannesburg 70 Marshall Street Computershare Investor Services2004(Pty)Limited Transfer Secretaries This form ofproxy expires aftertheconclusionofmeetingstatedherein except atanadjournmentofthatmeetingora 7. Forms ofproxy must belodged withorpostedtothecompany’s transfer secretaries tobereceived notlaterthan24hours (ex 6. annual general meeting. tothisformattached unlesspreviously recorded by thetransfer secretaries ofthecompany orwaived by ofthe thechairman his proxy. votes castandinrespect whereof abstentionisrecorded may not exceed thetotalofvotes exercisable by theshareholder o butthetotalof A shareholder orhisproxy isnotobliged touseallthevotes exercisable by theshareholder orby hisproxy, to abstainfrom voting attheannual general meetingashedeemsfitinrespect ofalltheshareholder’s votes exercisable ther Failure tocomply withtheabove willbedeemedtoauthorise theproxyshareholder tovote intheappropriate or spaceprovided. entitled toactasproxy totheexclusion ofthosewhose namesfollow. person present atthemeetingwhose nameappears first ontheform ofproxyshareholder.The andhasnotbeendeletedwillbe Any deletionmust such beinitialledby the withorwithoutdeleting oftheannual“the chairman general meeting”. provided, demanded at such meeting. demanded atsuch Sundays andpublicholidays) before thetimeofmeeting. Saturdays, do so. shareholder shouldsuch wishto speaking andvoting inperson thereat totheexclusion ofany proxy appointedintermshereof, IMPLATS ANNUAL REPORT 2004 cluding poll and eat. the hat ’s r inda n2004 on Assisted by (where applicable) Signature Signed at adjournmentor postponement thereof. andeach 29October2004, Friday, on Johannesburg at09:00 Houghton, BoundaryRoad, IsleofHoughton, Old Trafford 4, 3rd Floor, meeting ofthecompany whichwillbeintheBoardroom, indicate inthespacesbelow tomy/our CSDP/broker my/our voting instruction ontheresolutions tobeproposed attheannual ge being amember(s)orbeneficialshareholder(s) ofthecompany who has/have dematerialised my/our shares inImplatsdohereby of I/We CSDP orbroker. them withthenecessaryauthority intermsofthecustody agreement entered intobetween the dematerialised shareholder andthe thenthey willneedtorequest theirCSDPorbroker toprovide memberssuch wishtoattendtheannual general meetinginperson, sh to advisetheirCSDPorbroker However, oftheirvoting instructions ontheproposed resolutions inthespacesprovided below. For useinrespect ofthegeneral meetingofthecompany tobe heldat09:00onFriday,29 October2004(the “annual general mee Insert in therelevantInsert spaceabove thenumber ofshares held. Special resolution –share buy-back Unissued shares remuneration Directors’ Re-election ofdirectors ofdirectorsAppointment Resolutions eea 5 6 issue for cash general JV Roberts JM McMahon CE Markus LC van Vught FJP Roux NDB Orleyn K Mokhele RSN Dabengwa Voting instruction form IMPLATS ANNUAL REPORT 2004 THEIR IMPLATS SHARES THROUGH STRATE ONLY FORUSEBYMEMBERS WHO HAVE DEMATERIALISED eouinNumberofordinary shares Resolution 7 4 3 2 o gis Abstain Against For (“Implats” or “the Company”) or“the (“Implats” (Share code:IMP)(ISIN:ZAE000003554) 1957/001979/06) (Registration number: (Incorporated intheRepublic ofSouth Africa) IMPALA PLATINUM HOLDINGSLIMITED ting”) neral ould

ANNUAL FINANCIAL STATEMENTS 149 150 ANNUAL FINANCIAL STATEMENTS .Altevtsne o ob xrie ete edalvtsb ati h aewy butthetotalofvotes castandin Allthevotes neednottobeexercised neitherneedallvotes becastinthesameway, 2. share Each carries theright toonevote. Pleaseindicate intheappropriate spacesoverleaf thenumber ofvotes tobecast. 1. Notes VOTING INSTRUCTION FORM THIS FORMIS TO BELODGED WITH YOUR CDSP/BROKER Registered members This and voting instruction form isonly for useby members withdematerialised shareholdings viaSTRATE. 6. .Completed voting instruction forms shouldbeforwarded totheCDSPorbroker through whom theImplatsshares have been 5. alljointowners must signthisvoting instruction form. When there are jointowners ofshares, 4. Any alteration orcorrection madetothisvoting instruction form must besignedinfullby thesignatory/ies. 3. those withshares heldinCRESTshouldusetheform ofproxy (white) attached. dematerialised.Members shouldcontacttheirCDSPorbroker withregard tothecut-off timefor lodgingdematerialised.Members ofvoting instruction fo of whichabstentionisdirected may notexceed thetotalofvotes exercisable. IMPLATS ANNUAL REPORT 2004 respect rms. Shareholder information 151 Shareholders‘ diary Annual general meeting Friday, 29 October 2004 Final dividend declared August 2004. Paid - 27 September 2004 Interim report release February 2005 Interim dividend declared February 2005. Paid April 2005 Financial year end 30 June 2005 Annual report release August 2005

Analysis of shareholdings Number of Number of shareholders % shares (000’s) % 1 – 5 000 17 687 96.0 4 089 6.1 5 001 – 10 000 229 1.2 1 638 2.5 10 001 – 50 000 345 1.9 7 576 11.4 50 001 – 100 000 74 0.4 5 265 7.9 100 001 – 1 000 000 68 0.4 20 673 31.0 Over 1 000 000 13 0.1 27 380 41.1 18 416 100.0 66 621 100.0

Analysis of shareholdings Number of Number of shareholders % shares (000’s) % Other companies 965 5.2 4 972 7.4 Trust funds and investment companies 3 493 19.0 6 850 10.3 Insurance companies 72 0.4 4 042 6.1 Pension funds 949 5.1 19 236 28.9 Individuals 12 594 68.4 1 858 2.8 Banks 343 1.9 29 663 44.5 18 416 100.0 66 621 100.0

IMPLATS ANNUAL REPORT 2004 FINANCIAL STATEMENTS ANNUAL Contact details and administration 152 Registered office and Secretary Impala and Impala Refining Services 3rd Floor, Old Trafford 4 Head office Isle of Houghton 3rd Floor, Old Trafford 4 Boundary Road Isle of Houghton Houghton 2198 Boundary Road P.O. Box 61386 Houghton 2198 Marshalltown P.O. Box 61386 2107 Marshalltown Telephone: +27 (11) 481 3900 2107 Telefax: +27 (11) 484 0254 Telephone: +27 (11) 481 3900 email: [email protected] Telefax: +27 (11) 484 0254 Website: http://www.implats.co.za Impala Operations – Rustenburg Group Secretary P.O. Box 5683 Ramun Mahadevey Rustenburg 0300 Telephone: +27 (14) 569 0000 London Secretaries Telefax: +27 (14) 569 6548 Project Consultants Limited Walnut House Impala Refineries Walnut Gardens P.O. Box 222, Claydon Springs 1560 Banbury Telephone: +27 (11) 360 3111 Oxon, OX17 1NA Telefax: +27 (11) 360 3680 Telephone: +44 (1295) 69 0180 Telefax : +44 (1295) 69 0182 Marula Platinum email: [email protected] 3rd Floor, Old Trafford 4, Isle of Houghton Boundary Road, Houghton 2198 Public Officer PO Box 61386, Marshalltown 2107 Johan van Deventer Telephone: +27 (11) 481 3900 Telefax: +27 (11) 484 0254 Transfer Secretaries South Africa Zimplats (Makwiro) Computershare Investor Services 2004 (Pty) Block B (Green), Emerald Park Limited 30 The Chase (West) 70 Marshall Street Emerald Hill, Harare, Zimbabwe Johannesburg 2001 PO Box 61051 Mimosa Platinum Marshalltown 2107 6th Floor, Pegasus House Telephone: +27 (11) 370 5000 Samora Machel Avenue Harare, Zimbabwe United Kingdom Lloyds TSB Registrars Representative in Japan Client Services Impala Platinum Japan Limited The Causeway Uchisaiwaicho Daibiru, Room No. 702 Worthing 3-3 Uchisaiwaicho West Sussex 1-Chome, Chiyoda-ku BN99 6DA Tokyo Japan Auditors Telephone: +81 (3) 3504 0712 PricewaterhouseCoopers Inc Telefax: +81 (3) 3508 9199 2 Eglin Road Sunninghill Johannesburg Investors queries may be e-mailed to: 2157 [email protected]

ANNUAL FINANCIAL STATEMENTS ANNUAL IMPLATS ANNUAL REPORT 2004 Corporate Responsibility Report 2004 153

In the interest of improving disclosure and providing a fuller account of the group’s non- financial activities, Implats will publish its Corporate Responsibility Report 2004 in October 2004.This report will be available to stakeholders in a printed version,and on the company’s website in an interactive HTML format or as a downloadable pdf.

Shareholders and other stakeholders who wish to receive the printed version of this report may request this by calling or emailing Alan Snashall on +27 11 481 3900 or [email protected] fax the following form to +27 11 484 0254.

Name:

Company:

Designation:

Tel:

Fax:

Email:

Postal address:

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IMPLATS ANNUAL REPORT 2004 Report profile

This annual report covers the period 1 July 2003 to 30 June 2004. Information has been provided for comparative purposes for five years (FY2000 to FY2004). Additional statistics going back to FY1997 are provided on the company’s website at www.implats.co.za. Information relating to the market has been provided per calendar year.

The report has been prepared in accordance with South African Statements of Generally Accepted Accounting Practice, International Financial Reporting Standards and in the manner required by the South African Companies Act and in line with the regulations of the JSE Securities Exchange South Africa (JSE). It has also taken into account the guidelines of the King Report 2002, the JSE Social Responsibility Index and the Global Reporting Initiative (GRI), particularly those applicable to Implats’ direct economic impact, environmental and human capital performance.

No significant changes have occurred in terms of the size, structure and operation of the group during the year under review,other than the sale of 83.2% stake in Barplats Investments Limited. The transaction for the sale of a significant strategic interest (Implats’ stake in Western Platinum Limited and Eastern Platinum Limited) is nearing finalisation and is reported on fully in this document.

Reporting of reserves and resources is in accordance with each company’s listing requirements. Mineral Reserves and Mineral Resources for Implats’South African operations are reported in accordance with the principles and guidelines of the South African Code for Reporting of Minerals Reserves and Mineral Resources (SAMREC Code). Both Zimplats and Mimosa report Ore Reserves and Mineral Resources in accordance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code).Competent persons defined by both the SAMREC and JORC codes have prepared, reviewed and signed off the Mineral Reserves and Mineral Resources reported in this publication.

This annual report should be read in conjunction with the group’s Corporate Responsibility Report 2004. In the interests of good disclosure and to improve communication with shareholders, Implats publishes:

• The 2004 Annual Report in August 2004, coinciding with the release of the results for the year-ended June 2004. The annual report is also available in interactive HTML and downloadable pdf versions on the company’s website.

• The Corporate Responsibility Report in October 2004.This report will be posted to those shareholders who elect to receive it (response form on page 153 of this report). It will be available on the company’s website and from the contacts detailed on page 152 of this report.

The statutory portions of this report on pages 84 to 143 have been audited by independent auditors PricewaterhouseCoopers. In addition, PricewaterhouseCoopers provided guidance in the development of the non-financial sections of both the Annual and Corporate Responsibility reports, drawing on, inter alia, its proprietary reporting framework, ValueReportingTM, and internationally recognized principles of reporting. Both reports are prepared by the company and are reviewed by the board.

Additional information on the group may be found on the company’s website or obtained from the contact persons listed on page 152 of this report.

Dollar, or $, refers to US Dollars unless specified. Numbers given in both SA Rands and Dollars have been converted at the average exchange rate for the year under review or at year-end rates when relating to closing balances. Produced by Russell and Associates ANNUAL REPORT 2004 IMPALA PLATINUM HOLDINGS LIMITED IMPALA PLATINUM HOLDINGS LIMITED ANNUAL REPORT 2004

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