Mineral resource and mineral reserve statement 2015
Supplement to the integrated annual report 30 June 2015
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Introduction
Implats' mineral resource and mineral reserve key features

“We believe that metal prices could remain lower for longer

 

The main features relating to Implats’ mineral resources as at 30 June 2015 relative to 30 June 2014 are:

  • Estimated total attributable mineral resources decreased by 7% (28Moz 4E) to 367Moz; the total attributable platinum ounces decreased by 8% (16Moz Pt) to 196Moz
  • The year-on-year comparative decrease can mainly be ascribed to the transfer of the Tamboti mineral rights to Two Rivers. This resulted in a gain in the Two Rivers attributable mineral resources
  • Effectively the 100% ownership of Tamboti converted to 49% attributable at the Two Rivers level
  • The attributable platinum mineral resources remain dominated by Zimplats and Impala; the Zimplats mineral resources make up the bulk of these (48%)

The main features relating to Implats’ mineral reserves as at 30 June 2015 relative to 30 June 2014 are:

  • Total attributable mineral reserves decreased by 8% (4Moz 4E) to 46Moz; the attributable platinum ounces decreased by 7% (2Moz) to 26Moz
  • The main contributor to the decrease in mineral reserves is Zimplats due to the exclusion of Portal 5 (1.7 million ounces platinum) and the impact of the revised pillar design
  • There are gains in mineral reserves at Two Rivers, Mimosa and Marula due to the inclusion of additional areas
  • Some 73% of the total attributable mineral reserves are located at Impala


2015 strategic review

During the past year Implats undertook a strategic review. We continue to be prudent in our strategic assumptions and believe that metal prices could remain lower for longer, but that we should retain flexibility to be in a position to take advantage of any sustainable improvement in demand and PGM prices in the longer term. Within this context, the Group is positioning itself strategically to conserve cash, while at the same time restoring and optimising operational performances and profitability. The Group has implemented stringent capital allocation and cash preservation measures based on a lower-for-longer metal price risk mitigation strategy. In doing so, management has endeavoured to maintain strategic optionality to safeguard the long-term value potential of its assets in an environment where metal prices are expected to recover.

The overarching strategic outcome targets five key focus areas:

The market conditions continue to dominate the platinum industry climate and Implats will adapt the strategy as the need arises. Post year-end a further review was undertaken in response to the low metal prices, in particular to address cash preservation through cost cutting and capex deferral. This will again be adjusted should the outlook change.

Strategy to ensure shareholder value