Operational Review
operational review - Impala Refining Services

In the short term, mine-to-market production will continue to grow as the ramp-up of the Zimplats Phase 2 expansion

Production ('000oz of platinum)

Production ('000oz of PGMs)

Operational review

Platinum production from mine-to-market operations increased by 14% from the previous year to 575 000 (2013: 505 000) ounces, mainly due to the ramp-up of the Phase 2 expansion project at Zimplats.

Third-party purchases, recycling and toll volumes reduced by 48% to 192 000 ounces despite the increase in the treatment of material for Northam and Platmin. Performance was largely impacted by the termination of the autocatalyst recycling contract and the suspension of deliveries from Everest South, Crocodile River and Smokey Hills operations, which were placed on care and maintenance due to the prevailing market conditions.

Gross platinum refined (including Impala production) was 25.5% lower at 1 178 000 (2013: 1 581 500) ounces. Costs at the refineries were well contained at a 6.5% decrease year-on-year. However, unit costs increased to R747 (2013: R595) per platinum ounce due to the 403 500 ounce decline in throughput.

Outlook

In the short term, mine-to-market production will decline mainly as the volumes from Zimplats is expected to reduce due to the temporary closure of Bimha mine. The resumption of non-managed, currently suspended operations will continue to be determined by market conditions and the economic circumstances of the respective operators. Despite this uncertainty, IRS continues to have access to spare smelting and refining capacity from Impala and remains well placed to process additional material from new customers. Opportunities in this regard are evaluated on an ongoing basis.

OPERATIONAL REVIEW
operational review – Impala Refining Services

Impala Refining Services – key statistics