Group strategy: positive long-term fundamentals, expect lower-for-longer prices

Implats embraces an integrated mineral resources management (MRM) function. To this end, systems, procedures and practices are aligned and are continuously being improved to achieve this objective. MRM includes exploration, geology, geostatistical modelling, mine survey, sampling, mine planning, ore accounting and reconciliation and the MRM information systems. The MRM function is the custodian of the mineral assets and specifically strives to grow these assets in terms of both resources and reserves, and to unlock value through a constant search for optimal extraction plans which yield returns in line with the corporate and business objectives.

The main objective of the MRM function is to support the strategic intent and add value to the organisation, through:

• Ensuring that safe production is the first principle underpinning all mineral reserve estimates
• Appropriate investigation, study and understanding of the orebodies
• Accurate and reconcilable mineral resource and mineral reserve estimates
• Integrated and credible short, medium and long-term plans
• Measured and managed outputs
• Technically appropriate and proven management information systems

Continuous improvement has been embedded in the MRM function. Specific focus is given to standardisation, development, review and improvement of protocols to govern MRM. Implats accordingly remains committed to the following:

• Continuously improving the management of mineral resources and related processes, while addressing skills development and retention
• Optimal exploitation of current assets, together with growth of the mineral resource base by leveraging and optimising existing Implats properties, exploration and acquisitions, including alliances and equity interests with third parties
• The legislative regime that governs mineral rights ownership
• The transparent, responsible and compliant disclosure of mineral resources and mineral reserves in line with the relevant prescribed codes, SAMREC and JORC, giving due cognisance to materiality and competency

Present focus areas include:

• Improving the MRM information systems in cooperation with third-party vendors
• Improved ore reserve flexibility
• Improvement in the quality of mining

To this end Impala has completed the first year of a four-year project to migrate to a fully geospatial systems environment, namely MineRP Enterprise, in conjunction with our mining technical systems partner MineRP. This geospatial environment allows for integration with multiple systems, including 3D geological modelling and other technical services software. Since all the data will be stored as attributed points, lines and polygons, inside SpatialDB, the core component of MineRP Enterprise, it will be possible to query, review and visualise information spatially, across all levels of the organisation from a single source system. MineRP-CAD, the CAD tool in the enterprise system, has already been deployed to replace older CAD technology.

Group strategy: positive long-term fundamentals, expect lower-for-longer prices

Environment

Our activities associated with the exploration, extraction and processing of mineral resources result in the unavoidable disturbance of land, the consumption of resources, and the generation of waste and atmospheric and water pollutants. Growing regulatory and social pressure, increasing demands for limited natural resources, and the changing costs of energy and water all highlight the business imperative of responsible environmental management, particularly as our underground operations become deeper and consume greater amounts of energy. This involves taking measures not only to address security of resource supply (for example through efficiency, recycling and fuel-switching), but also to actively minimise our impacts on natural resources and on the communities around our operations. Taking such measures has direct benefits in terms of reduced costs and liabilities, enhanced resource security and improved security of our licence to operate.

Implats has an environmental policy that commits the company to running our exploration, mining, processing and refining operations in an environmentally responsible manner and to ensure the well-being of our stakeholders. The policy also commits to integrating environmental management into all aspects of the business with the aim of achieving world-class environmental performance in a sustainable manner.

Our management of the environmental impacts of our operations and processes involves the following focus areas:

• Promoting responsible water stewardship by minimising water use and water pollution
• Minimising our negative impacts on air quality
• Responding to climate change risks and opportunities and promoting responsible energy management
• Managing our waste streams
• Promoting responsible land management and biodiversity practices

All our operations are ISO 14001 certified. In line with our environmental management system expectations, all operations are required to identify and report on environmental incidents. Systems are in place to investigate and determine the direct and root causes of high-severity incidents, and to address and close out these incidents.

To ensure continued assurance of legal compliance to all authorisation requirements and conditions, legal, geology and environmental departments are implementing the best practice land management software FlexiCadastre^®, for the managttributable mineral resources and mineral reservesement of mineral rights and contractual commitments.

Attributable mineral resources and mineral reserves

Implats reports a summary of total attributable platinum ounces as sourced from all categories of mineral resources of the Implats Group of companies and its other strategic interests on a percentage equity interest basis. The tabulation below reflects estimates for platinum, palladium, rhodium and gold (4E), based on the percentage equity interest. These are summary estimates and inaccuracy is derived from rounding of numbers. Where this happens it is not deemed significant.

For more detail refer to the “Mineral resource and mineral reserve statement 2015” available at www.implats.co.za.

Attributable mineral resources inclusive of mineral reserves

As at 30 June 2015

		Mineral resources inclusive of reserves						Implats’   share   %	Attributable ounces
			Orebody	Category	Tonnes   Mt	4E   grade   g/t	6E   grade   g/t		Pt	Pd	Moz     Rh	Au	4E
	Impala		Merensky	Measured	143.0	6.27	7.01	96	18.1	8.0	1.58	1.04	28.7
				Indicated	67.4	6.42	7.16	96	8.7	3.9	0.76	0.50	13.9
				Inferred	21.7	6.35	7.10	96	2.8	1.2	0.24	0.16	4.4
			UG2	Measured	123.9	7.32	8.78	96	16.9	8.9	3.08	0.26	29.2
				Indicated	47.3	7.37	8.84	96	6.5	3.4	1.18	0.10	11.2
				Inferred	14.3	7.22	8.66	96	1.9	1.0	0.35	0.03	3.3
			Total Impala		417.6	6.77	7.83		55.0	26.5	7.19	2.10	90.8
	Impala/RBR JV		Merensky	Measured	2.6	6.72	7.50	49	0.3	0.2	0.03	0.02	0.6
				Indicated	2.6	7.12	7.95	49	0.4	0.2	0.03	0.02	0.6
				Inferred	2.4	6.69	7.48	49	0.3	0.1	0.03	0.02	0.5
			UG2	Measured	0.7	7.47	8.97	49	0.1	0.1	0.02	0.00	0.2
				Indicated	1.2	7.95	9.54	49	0.2	0.1	0.03	0.00	0.3
				Inferred	1.0	7.26	8.71	49	0.1	0.1	0.02	0.00	0.2
		Total Impala/RBR JV			10.6	7.06	8.06		1.5	0.7	0.17	0.07	2.4
		Total Impala and Impala/RBR JV			428.2	6.78	7.83		56.4	27.2	7.36	2.16	93.1
	Marula		Merensky	Measured	25.0	4.24	4.55	73	2.0	1.1	0.10	0.26	3.4
				Indicated	5.6	4.26	4.54	73	0.4	0.2	0.02	0.06	0.8
				Inferred	7.2	4.16	4.46	73	0.6	0.3	0.03	0.07	1.0
			UG2	Measured	24.8	8.75	10.17	73	3.1	3.1	0.66	0.08	6.9
				Indicated	10.4	8.92	10.38	73	1.3	1.3	0.28	0.03	3.0
				Inferred	5.6	9.09	10.61	73	0.7	0.7	0.15	0.02	1.6
			Total		78.6	6.62	7.51		8.1	6.8	1.24	0.53	16.7
	Afplats		UG2	Measured	72.8	5.19	6.47	74	7.4	3.3	1.39	0.06	12.1
				Indicated	8.0	5.11	6.36	74	0.8	0.4	0.15	0.01	1.3
				Inferred	41.3	5.06	6.25	74	4.1	1.8	0.77	0.03	6.7
			Total		122.2	5.14	6.39		12.3	5.5	2.31	0.09	20.1
	Imbasa		UG2	Indicated	16.9	4.59	5.74	60	1.5	0.7	0.29	0.01	2.5
				Inferred	24.1	4.53	5.70	60	2.2	1.0	0.41	0.02	3.6
	Inkosi		UG2	Indicated	33.2	4.87	6.14	49	3.2	1.4	0.60	0.02	5.3
				Inferred	18.8	4.64	5.88	49	1.7	0.8	0.33	0.01	2.9
	Imbasa and Inkosi		Total		93.1	4.69	5.90		8.6	3.9	1.63	0.07	14.2
	Two Rivers		Merensky	Indicated	29.7	2.85	3.11	49	1.6	0.9	0.09	0.18	2.7
				Inferred	48.6	3.61	3.92	49	3.3	1.8	0.20	0.38	5.6
			UG2	Measured	7.6	4.62	5.61	49	0.6	0.4	0.11	0.01	1.2
				Indicated	29.1	4.18	5.04	49	2.1	1.4	0.39	0.04	4.0
				Inferred	57.7	4.86	5.75	49	4.77	3.20	0.88	0.10	8.96
			Total		172.7	4.04	4.65		12.4	7.7	1.68	0.73	22.4
	Zimplats		MSZ	Measured	154.2	3.53	3.72	87	8.7	6.9	0.74	1.17	17.5
				Indicated	595.3	3.49	3.69	87	33.0	26.3	2.84	4.47	66.9
				Inferred	1 043.0	3.26	3.53	87	52.6	44.1	4.76	7.48	109.2
			Total		1 792.6	3.36	3.60		94.2	77.3	8.34	13.11	193.6
	Mimosa		MSZ	Measured	34.6	3.70	3.91	50	2.0	1.6	0.17	0.30	4.1
				Indicated	15.6	3.57	3.79	50	0.9	0.7	0.08	0.14	1.8
				Inferred	13.6	3.46	3.66	50	0.8	0.6	0.06	0.11	1.5
			Total		63.8	3.62	3.83		3.7	2.9	0.31	0.55	7.4
	All		Total		2 751	4.16	4.64		196	131	23	17	368

Attributable mineral reserves

As at 30 June 2015

		Mineral resources inclusive of reserves						Implats’   share   %	Attributable ounces
			Orebody	Category	Tonnes   Mt	4E   grade   g/t	6E   grade   g/t		Pt	Pd	Moz     Rh	Au	4E
	Impala		Merensky	Proved	8.8	3.86	4.31	96	0.7	0.3	0.06	0.04	1.1
				Probable	106.7	4.34	4.85	96	9.4	4.1	0.82	0.54	14.8
			UG2	Proved	15.2	3.83	4.60	96	1.1	0.6	0.20	0.02	1.9
				Probable	114.9	3.76	4.51	96	8.1	4.3	1.47	0.13	13.9
			Total		245.6	4.02	4.66	96	19.2	9.3	2.54	0.72	31.7
	Marula		UG2	Proved	2.2	4.02	4.67	73	0.1	0.1	0.03	0.00	0.3
				Probable	19.7	3.85	4.47	73	1.1	1.1	0.23	0.03	2.4
			Total		21.9	3.87	4.49	73	1.2	1.2	0.26	0.03	2.7
	Two Rivers		UG2	Proved	5.9	3.18	3.87	49	0.3	0.2	0.06	0.01	0.6
				Probable	14.6	2.94	3.56	49	0.8	0.4	0.15	0.01	1.4
			Total		20.5	3.01	3.65	49	1.1	0.6	0.21	0.02	2.0
	Zimplats		MSZ	Proved	18.3	3.31	3.50	87	1.0	0.8	0.08	0.13	1.9
				Probable	54.5	3.37	3.56	87	2.9	2.3	0.25	0.39	5.9
			Total		72.8	3.36	3.54	87	3.9	3.1	0.33	0.52	7.9
	Mimosa		MSZ	Proved	11.4	3.55	3.79	50	0.6	0.5	0.05	0.10	1.3
				Probable	5.5	3.68	3.96	50	0.3	0.3	0.03	0.05	0.7
			Total		16.9	3.59	3.84	50	1.0	0.8	0.08	0.16	2.0
	All		Total		377.8	3.81	4.34		26.4	15.0	3.42	1.45	46.2