2018 Annual Report

INTEGRATED 2018 ANNUAL REPORT MINING FOR A SUSTAINABLE FUTURE About This OVERVIEW Business Profile 08 Where We Came From 08 Report Location and Operations 10 Corporate Structure 11 This integrated annual report covers the financial year Board of Directors 12 from 1 July 2017 to 30 June 2018 and is prepared for Management Structure 15 Zimplats Holdings Limited (‘Zimplats’ or the ‘Company’) Chairman’s Letter 18 and its subsidiaries (together the ‘Group’) in all regions. The reporting cycle is annual with the last report having been published in September 2017. PERFORMANCE REVIEW Chief Executive Officer’s Report 26 Cash Utilisation 34 Five Year Review 35 Achievements FY2018 37 Objectives FY2019 38 Market Review 39 Sustainability Matters 45 Mineral Resources and Ore Reserves Summary 79 GOVERNANCE REPORTING FINANCIAL REVIEW ASX Announcements 94 Independent Auditors’ Report 114 Corporate Governance Report 95 Statements of Financial Position 120 Audit and Risk Committee Report 105 Statements of Comprehensive Income 121 Directors’ Report 107 Statements of Changes in Equity 122 The Directors’ Statement of Responsibility 111 Statements of Cash Flows 123 Notes to the Financial Statements 124 SHAREHOLDER AND OTHER INFORMATION Analysis of Shareholders 170 Notice of Annual General Meeting 172 Global Reporting Initiative (GRI) Index 175 Independent Limited Assurance Report in Relation to Selected Sustainability Disclosures 180 General Information 184 Glossary of Terms 184 Shareholder Calendar 188 This integrated annual report can be viewed at www.zimplats.com Please address any queries or comments on this report to [email protected] or [email protected]. Scope of this Report The report is the responsibility of the Company’s directors. In line with the recommendations of the King IV Report on Corporate Governance, the report integrates those material aspects of the Group’s environmental, social and governance impacts with the operational and financial performance of the business. It also presents the risks and opportunities that the Group faces, whilst seeking to provide a concise and balanced account of performance over the reporting period. The report also covers the approach taken to address those social, economic, environmental and governance issues which not only have a material impact on the long-term success of the business but are also important to key stakeholders. In addition, Zimplats is required to comply with the Australian Stock Exchange (ASX) Corporate Governance Principles and Recommendations, Third Edition and the requirements of the Companies (Guernsey) Law, 2008 (as amended). Zimplats has also complied with International Financial Reporting Standards (IFRS). The Global Reporting Initiative Standards have been adopted as the basis for disclosure of sustainability information in this integrated annual report. The report has been prepared in accordance with the Global Reporting Initiative Standards: Core option. Ernst & Young Chartered Accountants (Zimbabwe) (EY) has performed a limited assurance engagement for selected sustainability information and disclosures included in this report as can be seen in the EY assurance report on pages 180 to 183 of this integrated annual report. 4 The reported Mineral Resources and Ore Reserves estimates are prepared in accordance with the requirements of the Australasian Code for reporting on Mineral Resources and Ore Reserves (JORC) and have been signed off by defined competent persons. Prior year comparatives have been provided, while in some instances, in order to illustrate historical trends, statistics and graphical representation cover up to five years. Both historical and forward-looking data are provided. There has been no material restatements of data or measurement methods during the year. There has been no change to the share structure of the Integrated Annual Report 2018 Company. US$ refers to United States of America dollars. Zimplats Holdings Limited OUR MISSION OUR VISION Zimplats’ business is the production of platinum Our vision is to be the safety and cost leader in the group and associated metals from the Great Dyke platinum sector with sustainable growth in production, in Zimbabwe in a safe and sustainable manner. whilst generating superior returns for the benefit of all our stakeholders. OUR OBJECTIVES We will achieve our mission and vision through • Establishment of effective systems and processes sustainable, purposeful and focused attention on the: throughout the value chain to maximise • Extraction of mineral resources in a socially and stakeholder value environmentally friendly manner • Capability development, recognition and • Safety and health of all our employees, contractors and appropriate reward of our people. visitors at the workplace • Achievement of set production targets through the effective and efficient utilisation of all resources at our disposal OUR VALUES We respect We care We deliver • All our stakeholders, including: • For the health and safety of all our • Positive returns to our stakeholders Shareholders stakeholders through an operational excellence Directors and management • For the preservation of natural model Employee representative bodies resources • A safe and productive working 5 Suppliers and customers • For the environment in which we environment Communities within which we operate operate • On our capital projects Regulatory bodies • For the socio-economic well-being • A fair and fun working environment All other interested and affected parties of the communities within which we through consistent, equitable and • Employees and build winning teams operate competitive human capital practices • The laws of the countries in which we operate • On the motivation and development • Our place and way of work of our employees • Open and honest communication • On our commitments to all • Diversity of our stakeholders stakeholders • Risk management and continuous • Quality products that meet or improvement philosophies exceed our customers’ expectations • The Principles of the UN Global Compact Human rights Labour relations Anti-corruption Environmental management Integrated Annual Report 2018 Zimplats Holdings Limited 6 Integrated Annual Report 2018 Zimplats Holdings Limited OVERVIEW Business Where We Profile Came From 08 08 Location and Corporate Operations Structure 10 11 Board of Management Directors Structure 12 15 Chairman’s 7 Letter 8.8 million fatality free shifts achieved 18 during the year. Integrated Annual Report 2018 Zimplats Holdings Limited Where We Came From Delta Gold obtained Zimplats took over an exclusive The Hartley BHP’s share of prospecting order from concentrator Hartley Mine the Government of started operating Zimbabwe 1986 1996 2000 1980 1994 1999 2001 Zimplats established Zimbabwe independence Delta-BHP joint venture BHP closed Hartley open-pit mine at starts to develop Mine after failing to Ngezi (2.2Mtpa) with Hartley Mine meet targets investment from Implats 8 Business Profile Zimplats Holdings Limited is a limited liability company The operating subsidiary operated four underground which is registered in Guernsey and is listed on the mines and an open pit mine which supplied ore to Australian Stock Exchange. It is in the business of three concentrator modules (two at Ngezi and the third producing platinum group and associated metals. The one at Selous). Company is a subsidiary (87% shareholding) of one of the world’s leading producers of platinum group Three of the four underground mines were operating metals (PGMs), the South African based and listed at full production while the fourth one was under Impala Platinum Holdings Limited (Implats), which re-development. The mine under re-development contributes approximately 25% of global platinum reached design capacity in April 2018 and the open output. pit mine was discontinued in March 2018. Production from the mining operations is processed by the three Integrated Annual Report 2018 The Company’s majority owned operating subsidiary is concentrators and then further refined at Selous where Zimbabwe Platinum Mines (Private) Limited, which is a the smelter is located. significant producer of PGMs, exploiting the ore bodies located on the Great Dyke in Zimbabwe. At year end, Zimplats had a workforce of 6 493 comprising 3 262 own employees and a further 3 231 contractors (an increase of 9% in the year). Zimplats Holdings Limited Zimbabwe Platinum Mines (Private) Zimplats embarked on the Bimha Mine partial Limited issued a 10% equity US$492 million Phase 2 collapse and stake to the Zimplats Employee expansion, development Share Ownership Trust as part of Implats increased redevelopment of 4th underground mine its Indigenisation implementation shareholding to 87% plan (IIP) at Ngezi, to increase Resuscitation of open-pit production to 6.2Mtpa Attained six million operations fatality free shifts 2003-5 2010 2015 2017 2006 2013 2016 2018 Zimplats released Achieved Bimha Mine design 36% of its ground to the Surpassed Phase 2 Phase 2 expansion capacity after re-development Government of Zimbabwe in (6.2Mtpa) mining and return for anticipated cash and plant commissioned on milling production Resolution of mining lease area empowerment credits schedule capacity and mining tenure Zimplats embarked on the US$340 Attained 10 million Attained 8.8 million fatality free million Phase 1 expansion project, Attained five million fatality free shifts shifts increasing mining and concentrator fatality free shifts capacity to 4.2Mtpa 9 Ore production in the year was 6.8

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