“Two Rivers remains one of the lowest cost PGM producers in South Africa

Two Rivers is a joint venture operation with African Rainbow Minerals. Implats increased its interest to 49% from 45% during the year as the transfer of mineral rights on the Kalkfontein, Buffelshoek and Tweefontein farms from Impala to Two Rivers became unconditional. The mine had another excellent year and remains one of the lowest cost PGM producers in South Africa.

Manufactured capital

Two Rivers’ safety performance improved during the year and the operation achieved 2 million fatality-free shifts during the period. The total injury frequency rate improved from 1.44 per million man-hours worked in 2014 to 1.2 in 2015.

Tonnes milled increased by 2.5% from the previous year to 3.36 million at a head grade of 3.98g/t, while concentrator recoveries improved from 85.7% to 86.5%. Consequently, platinum in concentrate production was maintained at similar levels to the previous year at 173 500 ounces.

Mineral resources and reserves

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

The Two Rivers mineral resource and reserve statement has been positively impacted by the transfer of the Tamboti mineral rights.

		Mineral resources inclusive of reserves			2015				2014
			Orebody	Category	Tonnage   Mt	6E   Grade	Pt   Moz	Pt   Attr   Moz	Tonnage   Mt	6E   Grade	Pt   Moz	Pt   Attr   Moz
	Two Rivers (49% attributable)		Merensky	Indicated	60.6	3.11	3.3	1.6	43.1	3.04	2.3	1.0
				Inferred	99.2	3.92	6.7	3.3	11.0	2.65	0.5	0.2
			UG2	Measured	15.6	5.61	1.3	0.7	15.7	5.44	1.3	0.6
				Indicated	59.4	5.04	4.4	2.2	35.0	4.52	2.4	1.1
				Inferred	117.8	5.75	9.5	4.7	0.7	4.91	0.0	0.0
			Total		352.5	4.65	25.2	12.4	105.4	3.86	6.5	2.9

		Mineral reserves			2015				2014
			Orebody	Category	Tonnage   Mt	6E   Grade	Pt   Moz	Pt   Attr   Moz	Tonnage   Mt	6E   Grade	Pt   Moz	Pt   Attr   Moz
	Two Rivers (49% attributable)		UG2	Proved	12.0	3.87	0.7	0.3	10.8	3.88	0.6	0.3
				Probable	29.9	3.56	1.6	0.8	19.7	3.59	1.1	0.5
			Total		41.9	3.65	2.3	1.1	30.5	3.69	1.7	0.8

The key features of the above updated statements are:

• The Two Rivers Merensky Reef mineral resource estimate increased by 360% to 9.9 million platinum ounces; the larger proportion of this is in the inferred category
• The Two Rivers UG2 Reef mineral resource estimate increased by 412% to 15.3 million platinum ounces
• The Two Rivers UG2 Reef mineral reserve estimate increased by 34% to 2.3 million ounces platinum due to the extension of the mining area into the Tamboti area

Financial capital

Unit costs were well contained and increased by 4.5% to R11 948. Capital expenditure, which amounted to R275 million compared to R319 million in the previous year, was spent mainly on fleet replacement, completing the fine chrome recovery plant and employee housing. The current project focus is on accessing the newly acquired Kalkfontein property via the central and north declines.

Outlook

The transfer of the Kalkfontein, Buffelshoek and Tweefontein farms will enable Two Rivers to maintain production above 150 000 ounces of platinum in the medium term. The mine plans to implement an undercut mining method in the split reef at the main decline to improve UG2 reef quality and targets 170 000 ounces of platinum in 2016.