Impala Platinum Holdings Limited (Implats) is a leading producer of platinum and associated platinum group metals (PGMs). The group has operations on the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe, the two most significant PGM – bearing ore bodies globally.
The Company has its primary listing on the securities exchange operated by the JSE Limited.
This consolidated annual financial results were approved for issue on 26 August 2010 by the board of directors.
2.
Basis of preparation
The consolidated financial statements have been prepared in accordance with InternationaI Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), requirements of the South African Companies Act, 1973 as amended, the AC500 standards, as issued by the Accounting Practices Board or its successor and regulations of the JSE Limited.
The consolidated financial statements have been prepared under the historical cost convention except for the following:
– certain financial assets and financial liabilities are measured at fair value,
– derivative financial instruments are measured at fair value, and
– liabilities for cash-settled share-based payment arrangements are measured with a binomial option model.
The consolidated financial information is presented in South African rands, which is the company’s functional currency.
3.
Accounting policies
The principle accounting policies applied are consistent with those of the annual financial statements for the previous year, except for the adoption of various revised and new standards as fully described in the annual report available on the company’s website. The adoption of these standards had no material impact on the financial results of the Group.
4.
Audit opinion
The financial statements have been audited by PricewaterhouseCoopers Inc. whose unqualified opinion is available for inspection at the registered office of Implats.
5.
Property, plant and equipment, exploration and evaluation, and intangible assets
R millions
Property,
plant and
equipment
Exploration
and
evaluation
assets
Intangible
assets
Opening net book amount as at 1 July 2009
26 224
4 294
1 018
Additions
4 476
Interest capitalised
78
Disposals
(8)
Depreciation
(1 083)
Exchange adjustment on translation
(41)
Closing net book amount as at 30 June 2010
29 646
4 294
1 018
Opening net book amount as at 1 July 2008
20 601
4 294
1 018
Additions
6 839
Interest capitalised
84
Disposals
(44)
Depreciation
(979)
Exchange adjustment on translation
(277)
Closing net book amount as at 30 June 2009
26 224
4 294
1 018
6.
Capital commitment and derivative exposure
Capital expenditure approved at 30 June 2010 amounted to R20.4 billion (June 2009: R22.1 billion), of which R2.6 billion (June 2009: R2.9 billion) is already committed. The expenditure will be funded internally and if necessary, from borrowings. With regards to derivative financial instruments, the group, from time to time, sells refined metal on behalf of third parties, into the market with a commitment to repurchase the metal at a later date. The net fair value of the commitments as at 30 June 2010 amounted to R228 million (2009: R38 million).
7.
Borrowings
Borrowings from Standard Bank South Africa Limited:
Loans were obtained by BEE partners to purchase a 27% share in Marula Platinum amounting to R775 million (June 2009: R710 million). The BEE partnership in Marula is consolidated as the loans are guaranteed by Implats. The loans carry interest at the Johannesburg Interbank Acceptance Rate (JIBAR) plus 130 (June 2009: 130) basis points and a revolving credit facility amounting to R117 million (June 2009: R107 million), which carries interest at JIBAR plus 145 (June 2009: 145) basis points. The loans expire in 2020.
Two loan facilities from Standard Bank of South Africa Limited to finance the Ngezi Phase One expansion at Zimplats were secured.
Loan 1 of R614 million is denominated in US$ for US$80 million and bears interest at London Interbank Offering Rate (LIBOR) plus 700 basis points. The loan is repayable in twelve quarterly instalments commencing in December 2009 and will be fully repaid by December 2012. At the end of the period the outstanding balance amounted to R484 million (US$63 million) (June 2009: R588 million (US$76 million)).
Loan 2 of R500 million (June 2009: R300 million) is denominated in South African rand and bears interest at JIBAR plus 700 (2009: 700) basis points. This loan is repayable in ten semi-annual instalments commencing in December 2010 and will be fully repaid by June 2015. At the end of the period the outstanding balance amounted to R490 million (June 2009: R261 million). These loans are secured by sessions over cash, debtors and revenue of Zimplats Mines.
The total undrawn committed facilities at year end were R3.4 billion (2009: R3.4 billion).
8.
Dividends per share
On 26 August 2010, a sub-committee of the board declared a final dividend of 270 cents per share amounting to R1.6 billion in respect of the financial year 2010. Secondary Tax on Companies (STC) on the dividend will amount to R160 million.
Dividends paid
Final dividend No. 83 for 2009 of 200 (June 2008: 1 175) cents per share
1 202
7 110
Interim dividend No 84 for 2010 of 120 (2009: 120) cents per share
718
712
1 920
7 822
9.
Contingent liabilities and guarantees
As year end the group had bank and other guarantees of R600 million (2009: R508 million).
