Group Performance
Abridged mineral resource and mineral reserve statement

Implats and its associated companies continue to exploit platiniferous horizons within the largest known deposit of platinum group minerals in the world, namely the Bushveld Complex in South Africa and also the world-class deposit in Zimbabwe, namely the Great Dyke. Mining mostly takes place at underground operations, focusing on relatively narrow mineralised horizons with the specific mining methods adapted to suit the local geology and morphology of these mineralised horizons. The mineral resources and mineral reserves are geographically spread but are dominated by Impala and Zimplats.

The protracted industrial action at Impala during 2014 had a material impact, particularly in terms of lost revenues, delays in project and development build-up profiles, start-up processes and the resultant reduced volumes projected for 2015. Together with tempered metal prices it is expected that profit margins at Impala will be under pressure in the medium term. The mineral reserve statement is based on the life-of-mine production plans compiled in December 2013, with some adjustment for the impact of the industrial action. This will be adjusted should the outlook change.

The Zimbabwean Government has been pursuing greater participation in the mining sector by indigenous Zimbabweans. Implats is continuing to engage with the Government of Zimbabwe (through the Ministry of Youth Development, Indigenisation and Empowerment) with respect to agreeing plans for the indigenisation of Zimplats and Mimosa. The current position with regards to the implementation of the Government of Zimbabwe indigenisation plans is not clear and depending on what position is ultimately taken by the Government of Zimbabwe Implats' attributable mineral resources and mineral reserves may be significantly reduced.

During 2013, the Government of Zimbabwe gazetted its intention to compulsorily acquire a large tract of ground in the northern portion of the Zimplats mineral lease containing 54.62Moz Pt; Zimplats subsequently submitted an objection to this notice and lodged a claim for compensation under the Zimbabwean law. As at 30 June 2014, there have been no further developments.

At Zimplats a low angle shear in the deeper sections of the Bimha mine has had a deleterious effect on pillar strength and has resulted in the inclusion of large barrier and regional pillars and a reduction in extraction percentages. Subsequent to 30 June 2014, the pillars in a significant part of Bimha have failed. A decision was made to temporarily close the Bimha mine to ensure the safety of our employees. Work is underway to assess the full impact and to re-engineer and/or arrest the current mine stability concerns at the Bimha mine.