HISTORY

Zimplats was established by Delta Gold Limited (Delta) in 1998 to take over its platinum interests.  In May 1999 the company purchased BHP’s interests in the Hartley Platinum and the Mhondoro Platinum Joint Ventures which included a concentrator and smelter.  Zimplats initiated the Ngezi/SMC project in 2001 and the first converter matte was exported in April 2002.

In 2001 Implats acquired a 30% stake in Zimplats from Delta in a joint venture with ABSA Bank Limited of South Africa (ABSA).  Implats held pre-emptive rights over ABSA’s 15% stake as well as a 30% direct stake in the then Makwiro Platinum (Pvt) Limited.  The remaining 70% was held by Zimplats.  In August 2002, the group acquired a further 21% stake in Zimplats from Aurion Gold and in June 2003 purchased ABSA’s 15% stake.  Implats subsequently made an unconditional cash offer to mino rity shareholders in Zimplats.

Currently the group holds 87% as a result of the buyout of minority holders and the receipt of 14.9 million newly issued ordinary Zimplats shares on the sale of its 30% stake in Zimbabwe Platinum Mines (Pvt) Limited (formerly Makwiro Platinum (Pvt) Limited) to Zimplats.

GEOLOGY

Although platinum was first discovered in the Great Dyke in 1918, its exploration was overshadowed by that of the Bushveld Complex in South Africa.  Focus returned to the Great Dyke following the increase in demand for PGMs given that much of the shallow resources in the Bushveld Complex have been depleted.

The Great Dyke is a layered complex similar to that of the Bushveld Complex.  It extends for 550 kilometres and has a maximum width of 11 kilometres.  Within the Great Dyke four geological complexes are known to contain PGM and base metal deposits.  These are the Wedza Complex (Mimosa – Aquarius and Implats), the Selukwe Complex (Unki – Anglo Platinum), the Hartley Geological Complex (Hartley and Ngezi Platinum Mines - Zimplats) and the Musengezi Complex. The Hartley Geological Complex is the largest of the PGM bearing complexes containing 80% of the known PGM resources in Zimbabwe, two thirds of which is held by Zimplats.

The stratigraphy is broadly divided between a lower ultramafic and an overlying mafic sequence. The ultramafic sequence hosts the P1 pyroxenite which in turn hosts the economic PGM - bearing Main Sulphide Zone (MSZ). The MSZ is generally 2 to 3 metres thick. Optimal mineralisation varies and, in contrast to the Bushveld Complex, is often difficult to follow visually. Peak values for the PGM and base metals are vertically offset with palladuim peaking at the base, platinum in the centre and nickel towards the top.

MINING

Zimplats commenced production at the Ngezi opencast mine in December 2001. This was suspended in December 2008 and all mining is currently conducted underground.

The orebody is shallow and mining commences at a depth of 50 metres below the surface and currently extends to a depth of approximately 240 metres. The mine employs mechanised bord and pillar mining with stoping widths of an average of 2.5 metres.

The $ 460 million phase 2 expansion involving the development of a new 2 million tonne underground mine, an additionally sized concentrator and associated module and other infrastructure was initiated in 2010. At nameplate capacity expected in FY2015 refined platinum production will increase to 270,000 ounces.

METALLURGY

The new concentrator at Ngezi was commissioned in July 2009 and reached full production capacity of 2 million tonnes per annum in October 2009. Around 6,000 tonnes of ore per day is also transported by road trains to SMC.  Concentrate from both plants is then smelted in an arc furnace and converted to matte which is despatched to Impala's refinery in terms of a life-of-mine agreement with Impala Refining Services (IRS).   

INDIGENISATION

Zimbabwe's amended indigenisation and econmic empowerment regulations require foreign companies to meet a minimum indigenisation quota of 51%. The proposed plan submitted in March 2012 was found to be acceptable and in compliance with the law. The proposal made to the Govenment of Zimbabwe includes a Community Trust (10%) and an Employee Trust (10%). Fair value compensation in lieu of empowerment credits for the ground released under the agreements of 24 May 2006 are being expored. On receipt of this compensation, Zimplats will make a 31% fully contributory stake in Zimplats available for sale at an independently determined fair value. Zimplats remains in talks with the Goverment of Zimbabwe in this regard.

SUSTAINABLE DEVELOPMENT

Zimplats remains committed to social development initiatives and engages in, develops and builds community relationships.  It takes responsibility for economic, social and environmental issues that impact its people, communities and environments. 

	Zimplats - key statistics
			FY2012	FY2011	FY2010	FY2009	FY2008
	Production
	Tonnes milled	(000 t)	4,393	4,223	4,095	2,167	2,201
	Headgrade (5E+Au)	(g/t)	3,53	3.56	3.56	3.52	3.53
	Platinum in matte	(000 oz)	187,1	182.1	173.9	96.0	94.3
	PGM in matte	(000 oz)	396,4	388.8	368.9	201.7	200.2
	Mining cost of sales	(Rm)	(1,882)	(1,576)	(1,481)	(1,108)	(1,010)
	Mining operations	(Rm)	(1,089)	(870)	(806)	(795)	(669)
	Processing operations	(Rm)	(494)	(446)	(373)	(224)	(152)
	Other	(Rm)	(299)	(260)	(302)	(89)	(189)
	Total cost	(Rm)	1,778	1,519	1,324	1,127	869
	Per tonne milled*	(R/t)	409	355	323	520	395
		($/t)	53	50	43	57	54
	Per platinum ounce in matte*	(R/oz)	9,594	8,232	7,614	11,740	9,215
		($/oz)	1,239	1,171	1,007	1,293	1,269
	Financial ratios
	Gross margin	(%)	48,6	57.5	51.5	(0.8)	52.6
	Capital expenditure	(Rm)	2,137	840	698	1,358	1,319
		($m)	276	119	92	150	182
	Safety
	LTIFR   (per million man hours worked)		0,21	0.75	0.69	0.45	0.69
	FIFR     (per million man hours worked)		-	-	-	-	0.19
	Labour complement including contractors		9,203	5,367	3,680	5,459	5,582

  * Excluding share - based compensation