- Chairman's letter
- Chief executive officer's review
- Market review
- Financial review
- Safety review
- Operational review
- Mineral Resources and Reserves
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Ramp-up completed
![Two River location [map]](i/two_map.gif)
- Joint venture with African Rainbow Minerals
- Two on-reef shafts
- Concentrator plant
- Reserves: 0.9 million attributable ounces of platinum
- Resources (including reserves): 2.6 million attributable ounces of platinum
- Production: 118 000 ounces of platinum in concentrate
- Labour complement (including contractors): 2 842
Two Rivers successfully completed its ramp-up to full production reaching its nameplate milling capacity of 225 000 tonnes per month in June 2007.
The plant optimisation which involved increased crushing capacity, additional cleaner circuit cells and filter capacity is on schedule for completion in the first quarter FY2010.
Subject to obtaining the requisite Section 11 approval from the DMR, Implats will vend portions 4, 5 and 6 of the farm Kalkfontein, as well as the entire area covered by the Tweefontein prospecting rights to Two Rivers in return for a further 4% equity stake. This will take Implats’ holding up to 49% in this joint venture.
Outlook
The plant optimisation will result in a marginal increase in tonnes milled to 2.8 million in FY2010. Coupled with further improvements in concentrator recoveries, platinum in concentrate production for next year is forecast at 130 000 ounces increasing to 150 000 ounces by FY2013.
The establishment of mining infrastructure in the area, together will the additional Kalkfontein resource provides additional growth and flexibility opportunities for the company.
| FY2009 | FY2008 | ||
|---|---|---|---|
| Sales | (Rm) | 972 | 2 298 |
| Platinum | 874 | 1 171 | |
| Palladium | 102 | 153 | |
| Rhodium | (33) | 930 | |
| Nickel | 39 | 49 | |
| Other | (10) | (5) | |
| Cost of sales | (1 325) | (978) | |
| Mining operations | (867) | (692) | |
| Concentrating operations | (179) | (138) | |
| Treatment charges | (13) | (12) | |
| Amortisation | (269) | (162) | |
| Increase/(decrease) in inventory | 3 | 26 | |
| Gross profit | (353) | 1 320 | |
| Profit from operations | (350) | 1 323 | |
| Gross margin % | (%) | (36.4) | 57.4 |
| Profit for the year | (Rm) | (395) | 773 |
| 45% Attributable to Implats | (178) | 348 | |
| Intercompany adjustment * | 219 | (98) | |
| Share of profit in Implats Group | 41 | 250 | |
| Sales volumes in concentrate | |||
| Platinum | (000 oz) | 118.0 | 98.6 |
| Palladium | 67.4 | 56.4 | |
| Rhodium | 19.1 | 16.1 | |
| Nickel | (t) | 365.0 | 298.0 |
| Prices achieved in concentrate | |||
| Platinum | ($/oz) | 781 | 1 629 |
| Palladium | 159 | 373 | |
| Rhodium | (207) | 7 891 | |
| Nickel | ($/t) | 11 949 | 22 864 |
| Exchange rate achieved | (R/US$) | 9.46 | 7.29 |
| Production | |||
| Tonnes milled ex-mine | ('000 t) | 2 616 | 2 366 |
| Headgrade (5PGE+Au) | (g/t) | 4.10 | 3.99 |
| Platinum in concentrate | (000 oz) | 118.0 | 98.6 |
| Palladium in concentrate | 67.4 | 56.4 | |
| Rhodium in concentrate | 19.1 | 16.1 | |
| Nickel in concentrate | (t) | 365 | 298 |
| PGM in concentrate | (000 oz) | 246.3 | 206.5 |
| Total cost | (Rm) | 1 046 | 827 |
| per tonne milled | (R/t) | 398 | 349 |
| ($/t) | 42 | 48 | |
| per PGM ounce in concentrate | (R/oz) | 4 231 | 4 004 |
| ($/oz) | 447 | 549 | |
| per platinum ounce in concentrate | (R/oz) | 8 830 | 8 383 |
| ($/oz) | 934 | 1 150 | |
| net of revenue received for other metals | (R/oz) | 8 032 | (3 045) |
| ($/oz) | 849 | (418) | |
| Capital expenditure | (Rm) | 349 | 357 |
| ($m) | 37 | 49 | |
| Labour including capital | (no) | 2 842 | 2 511 |
| Own employees | 774 | 679 | |
| Contractors | 2 068 | 1 832 |
* Note: The results in this table have been equity accounted
A successful joint venture combining the expertise of both partners
As the managing partner, African Rainbow Minerals manages the day-to-day operations of the Two Rivers Platinum Mine and concentrator, while Implats is responsible for smelting, refining and marketing of the PGMs produced.
