ZIMPLATS HOLDINGS LIMITED - Annual Report 2012

M I N I N G F O R A S U S TA I N A B L E F U T U R E

MISSION STATEMENT

MISSION

Zimplats’ business is the production of platinum group metals from the Great Dyke in Zimbabwe.

VISION

Our vision is to be the best platinum company with sustainable growth in production, whilst ��

OBJECTIVES

We will achieve our Mission and Vision through purposeful and focused attention on the:

Extraction of mineral resources in a socially and environmentally friendly manner.

Safety and health of all our employees and visitors at the workplace.

�� of all resources at our disposal.
�� stakeholder value.

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CONTENTS
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Capability development, recognition and appropriate reward of our people.
Aggressive implementation of projects to achieve organic growth targets on budget.

SCOPE OF THIS REPORT

�� III Report on Corporate Governance it integrates those ��

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OVERVIEW PERFORMANCE FINANCIAL REPORT SHAREHOLDER AND OTHER INFORMATION 04 �� 28[Market review] 80[D][irectors’ report] 126[A][��] 04 Where we came from 34[��] 83[��] 128[��] �� 05 Location and operations 42[��] 84[Auditors’ report] 130[��] 6 �� 62 GRI indicators index 85[��] 10[��] 64[Corporate governance report] 16 �� 76[Audit and Risk ] Committee report 18[Achievements 2011/12 ] �� 19[ASX announcements] 20[��] 22[Board of directors] 24[Structure and management]

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OVERVIEW
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�� commenced operations �� terms in productive assets ��

Source : Chairman’s Letter 2012

OVERVIEW

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Export 180 000 ounces Platinum in Matte per year

BUSINESS PROFILE

The company is registered in Guernsey and is listed on the Australian Stock Exchange. It is in the business of producing PGM’s and is a subsidiary (87% shareholding) of one of the world’s leading producers of PGM’s , the South African based Implats, which contributes approximately 25% of global platinum output.

Through its value chain 4.59 million tonnes of mined ore was converted during FY2012 to matte sales to Implats of 375 340 4E oz. (2011:368 282).

Platinum Group Metals-The ‘Green’ Metals

PGM’s are a vital component in auto catalytic converters, and play �� of carbon monoxide and other emissions in both gasoline and diesel engines.

The company’s wholly owned operating subsidiary , Zimbabwe Platinum Mines (Private) Limited which has been in operation for �� located on the Great Dyke in Zimbabwe. The company has a resource base of 222 M oz. 4E with approximately 50 years life of mine.

PGM’s are recyclable thereby ensuring not only a reduction in waste but also sustainability of supply. Their excellent resistance to corrosion and high melting points makes them ideal metals for a variety of industrial uses. PGM’s are also used in fuel cell development. Fuel cells are able to reduce air pollution considerably whilst curtailing demand for fossil fuels.

It has three underground mines with a fourth under development, and two concentrators and a smelter, all situated in the Mhondoro Ngezi and Selous rural areas approximately 100 kilometres south of Harare. The company has a workforce of 4 000 people (and a further 5 000 contractors).

WHERE WE CAME FROM

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1986
Delta Gold
obtained an
Exclusive
P rospecting 1994 1996 1998 1999 2000
1980 O rder from D elta-BHP JV T he Hartley D elta demerged its B HP closed Hartley Z implats took
Zimbabwe t he Zimbabwe st arts to develop c oncentrator p latinum assets to form M ine after failing o ver BHP’s share
Independence G overnment H artley Mine s tarted operation Z implats, ASX listed t o meet targets o f Hartley
2001 2002 2003-5 2006 2009 2010
Zimplats established Zimplats’ first Im plats �� P hase 1 expansion to Z implats embarked
open pit strip mine at converter matte in creased Government of Zimbabwe in return for cash 4 .2Mtpa successfully o n Phase 2
Ngezi (2.2Mtpa) with exported s hareholding and empowerment credits c ommissioned e xpansion US$460m,
investment from Implats � �� d evelopment of 4th
expansion increasing mining and concentrator u nderground mine
capacity to 4.2Mtpa at Ngezi, to increase
production to 6.2Mtpa
4 OVERVIEW
1980 1986 1994 1996 1998 1999 2000 2001 2002 2006 2009 2010
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LOCATION AND OPERATIONS

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AFRICA
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SELOUS METALLURGICAL COMPLEX
SMC Concentrator
2.2 Million tonnes ore
per annum (Mtpa)
NGEZI
PHASE 2 Project NGEZI 2
Under Construction Concentrator
PORTAL 3
MUPFUTI
2.0 Mtpa 2.0 Mtpa
PORTAL 4
BIMHA
NGEZI 1
2.0 Mtpa Concentrator
PORTAL 2 2.0 Mtpa
RUKODZI
1.0 Mtpa
GREAT DYKE
PORTAL 1
NGWARATI
1.2 Mtpa
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SELOUS METALLURGICAL COMPLEX
SMC Concentrator
SMC Smelter
2.2 Million tonnes ore
per annum (Mtpa)
NGEZI
PHASE 2 Project NGEZI 2
Under Construction Concentrator
PORTAL 3
MUPFUTI
2.0 Mtpa 2.0 Mtpa
PORTAL 4
BIMHA
NGEZI 1
2.0 Mtpa Concentrator
PORTAL 2 2.0 Mtpa
RUKODZI
1.0 Mtpa
PORTAL 1
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ZIMBABWE
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Impala Refining Services South Africa

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OVERVIEW
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ZIMBABWE PLATINUM MINES (PRIVATE) LIMITED
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Loan repayments & loan interest payments
Payments to government (income tax, royalties & customs duties & PAYE)
Advance to RBZ
Dividends paid to shareholders
Capital expenditure to expand and maintain operations
Employment cost
Operating expenses
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OVERVIEW

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ACTING CHAIRMAN’S LETTER
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CHAIRMAN’S LETTER - CONTINUED

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DEAR SHAREHOLDER

SAFETY, HEALTH AND ENVIRONMENT

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OPERATIONS

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commitment to the
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CORPORATE ACTIVITIES

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NGEZI PHASE 2 EXPANSION PROJECT

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ZIMPLATS CONTRIBUTION TO ZIMBABWE

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Local Spend in Zimbabwe
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OVERVIEW

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CHAIRMAN’S LETTER - CONTINUED

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Contributuon to the Fiscus
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OUTLOOK

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ACKNOWLEDGEMENTS

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committed to
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M A MASUNDA

ACTING CHAIRMAN

10 AUGUST 2012

OVERVIEW

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CHIEF EXECUTIVE OFFICER’S REPORT
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KEY PERFORMANCE FEATURES
Excellent safety and
operational performances
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depressed metal prices
Some components of the Ngezi phase 2
Expansion project deferred to future years
Sustainability and sustainable development are key to
Zimplats’ long term success. To this end, stakeholder
engagement remains important.
I am pleased that this report has continued the process
of aligning with the requirements of the King III code
of corporate governance for integrated reporting on
the economic, environmental, social and governance
issues that have a bearing on the future of the company.
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Lost Time Injuries Trend
LTIFR
LTIFR
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SAFETY, HEALTH AND ENVIRONMENT SAFETY

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HEALTH

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Total Injuries Frequency Rate Trend
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ENVIRONMENT

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CHIEF EXECUTIVE OFFICER’S REPORT - CONTINUED

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OPERATIONS

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MINING

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ORE MINED

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OVERVIEW

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CHIEF EXECUTIVE OFFICER’S REPORT - CONTINUED

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Ore Mined
1 000 TONNES
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HEAD GRADE

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Head grade
GRADE g/t
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PROCESSING

CONCENTRATORS

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Ore Milled + Recovery
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SMELTER

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CHIEF EXECUTIVE OFFICER’S REPORT - CONTINUED

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Metal Production 4E Oz
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CAPITAL PROJECTS

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Capital Projects
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EXPANSION PROJECTS

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STAY IN BUSINESS PROJECTS

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EXPLORATION

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HUMAN RESOURCES

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OVERVIEW

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CHIEF EXECUTIVE OFFICER’S REPORT - CONTINUED

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COMMUNITY DEVELOPMENT

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FINANCIAL RESULTS

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Cash Operating Cost per Platinum Ounce
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APPRECIATION

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ALEX MHEMBERE

CHIEF EXECUTIVE OFFICER

10 AUGUST 2012

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OVERVIEW

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MATERIAL SUSTAINABILITY ISSUES
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OUR APPROACH TO REPORTING

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In addition to this report we have provided a response to ��

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MATERIALITY AND STAKEHOLDER ENGAGEMENT

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INTERNAL FACTORS	EXTERNAL FACTORS
Company mission, vision, policies, strategies, operational management systems, objectives and targets.	Challenges and emerging industry issues.
Expectation of key stakeholders including employees, shareholders, suppliers, and communities.	Relevant laws, regulations e.g. indigenisation, air quality and emissions bye laws, policy changes.
Underlying strategic risks to the business as defined by enterprise wide risk management methodologies; project delivery; effective people; safety; mineral resource management; country risk.	Infrastructure including energy supplies; country perceptions.

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GOVERNANCE AND MANAGEMENT APPROACH

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SUSTAINABILITY AIMS

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CONSISTENT WITH THIS, THE COMPANY AIMS TO:

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MATERIAL SUSTAINABILITY ISSUES - CONTINUED

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STAKEHOLDER METHOD OF FREQUENCY OF MATERIAL ISSUES ACTION TAKEN
ENGAGEMENT ENGAGEMENT
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STAKEHOLDER	METHOD OF ENGAGEMENT	FREQUENCY OF ENGAGEMENT	MATERIAL ISSUES	ACTION TAKEN

Investors and shareholders.	Annual report, quarterly and half yearly updates and or presentations.	Quarterly.	Indigenisation; Business performance; Growth plans.	Regular provision of information.
Employees.	Works Councils, briefings, CEO updates.	Monthly meetings and ad hoc briefings as necessary.	Indigenisation; wage negotiations; payment for utilities; Safety; HIV and AIDS; Fairness at the workplace.	Regular meetings and briefings are held. Focused programmes on employee safety and wellness are implemented. Company observes labour laws on non- discrimination.
Suppliers.	One on one meetings and business forums.	Regular/on- going.	Local supplier development.Fairness in the award of tenders and contracts.	Regular meetings and updates are made. Strategies have been put in place to grow the local supplier base with a monitoring mechanism to ensure that targets are met. Cross functional committee in place to manage tender process.
Communities.	Stakeholder meetings.	Quarterly.	Community development programmes; Community Share Ownership Trust; Access to clean drinking water; Environmental impact of the operations	Regular dialogue takes place with the communities and CSI programmes are implemented. Boreholes have been sunk to provide access to safe water. Rehabilitation programme initiated to close open pit.
Central Government.	Close liaison with and reporting to relevant government ministries through one on one meetings, conferences, facility visits and presentations.	Monthly meetings and ad hoc briefings as necessary.	Indigenisation; Mining contribution to the fiscus;	Relationships have been developed with government at local and national level. Dialogue is on-going on material issues at company level and through the Chamber of Mines.
Local government and traditional leaders.	Close liaison with and reporting to relevant local government departments through one on one meetings, quarterly stakeholder meetings and presentations	Bi-monthly.	Indigenisation; Employee housing development; community social investment and Community Share Ownership Trust ( CSOT)	A working relationship is nurtured with local government and traditional leadership. Through regular meetings community projects are identified and smooth implementation of CSOT achieved.
Media.	Electronic, print, radio and television.	Regular/on- going dialogue; press releases and briefings.	Indigenisation; Mining policy and regulations; Growth projects; Local supplier development.	Zimplats works closely with media stakeholders, holding regular briefings, facility visits and one on one interface to ensure smooth flow of information.
Tertiary Institutions.	One on one meetings, presentations.	Ad hoc meetings.	Capacity development to revive institutions.	Zimplats is involved in the rehabilitation of the School for Mines and Universities for sustainable development of relevant skills.
Chamber of Mines.	One on one meetings, conferences, business forums.	Monthly	Indigenisation; Mining legislation and regulations.	Zimplats continues to play a leading role in the Chamber of Mines ensuring that it lobbies for a consistent and stable regulatory environment.

OVERVIEW

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ACHIEVEMENTS 2011/12
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OBJECTIVES	STATUS
Improve safety culture and performance with no fatalities, and ��	Safety performance improved with the LTIFR decreasing to �� 4 compared to 8 in the prior year. There were no fatalities and focus remains on ultimately achieving zero harm.
Retain certification on the ISO9001 and OHSAS 18001 systems.	Following audits during the year, certification was retained for both ISO9001:2008 and OHSAS 18001:2007. ISO14001 certification was also retained.
Remain in the lower cost quartile of platinum producers.	The Company retained its position as a low cost platinum producer to end the year at a cash cost per platinum ounce of ��
Finalise indigenisation proposals with the responsible authorities.	Whilst not yet finalised, in March 2012 the Government accepted in principle proposals by the company to achieve the �� implementation thereof is in progress.
�� spend.	The target was not achieved, with payments to local suppliers �� payments to government institutions.
Engage with stakeholders and focus CSR projects on the developmental needs of communities that are proximal to our operations.	An independent baseline study on the needs of the communities was commissioned. A number of CSR projects were identified and concluded during the year.
Continue to execute the Ngezi Expansion Phase II project within the approved time and cost budget.	The Phase II Expansion approved by the Board in 2010 is progressing satisfactorily and remains scheduled for the ��

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ASX ANNOUNCEMENTS
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Zimplats has promptly informed the public, through announcements to the Australian Stock Exchange, of matters that
may affect the Company’s share price. The publication of quarterly and other reports has kept the public informed of
major developments within the Group.
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KEY ANNOUNCEMENTS HAVE INCLUDED:

25 AUGUST 2011 �� 11 OCTOBER 2011 �� 16 FEBRUARY 2012 ��

15 MARCH 2012

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28 MAY 2012

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3 JULY 2012

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OBJECTIVES 2012/13
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OVERVIEW

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TEN YEAR REVIEW
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SUMMARISED FINANCIAL RESULTS

	2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 473 280 527 354 403 953 120 311 294 257 235 967 162 446 112 484 99 867 71 464
INCOME STATEMENTS
Turnover
�� �� �� �� �� �� Cost of sales �� �� �� �� �� �� �� �� �� �� �� �� �� �� BALANCE SHEETS	�� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� ��
	(219 854 ) (204 275 ) (171 949 ) (105 433 ) (121 812 ) (97 720 ) (88 639 ) (77 702 ) (56 955 ) (42 465 )
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	253 426 323 079 232 004 14 878 172 445 138 247 73 807 34 782 42 912 28 999 �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� 200 422 122 070 (25 024 ) 124 378 99 584 47 736 21 227 27 357 11 745 � � � � � � � �� �� �� �� �� �� �� �� �� �� 916 921 681 907 592 064 529 868 371 558 228 623 188 180 155 536 136 636 132 442
ASSETS Non-current assets �� �� �� Current assets Total assets EQUITY AND LIABILITIES Capital and reserves �� Non-current liabilities �� �� ��
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	�� �� �� �� 1 154 886 975 375 812 771 650 279 598 522 405 469 296 245 217 796 193 901 174 580 861 739 739 381 538 959 415 167 442 655 329 400 230 593 183 934 131 753 111 096 � � � � � � � � �� �� 212 133 142 817 183 793 150 645 108 343 33 953 31 198 14 155 7 550 13 480
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Current liabilities Total equity and liabilities	�� �� �� �� �� �� �� �� �� �� 1 154 886 975 375 812 771 650 279 598 522 405 469 296 245 217 796 193 901 174 580

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TEN YEAR REVIEW
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SUMMARISED FINANCIAL RESULTS

STATISTICS REVIEW	2012	2011		2010		2009	2008		2007		2006		2005	2004		2003
Operating statistics
Ore mined (tonnes)	4 586 012	4 236 700	3 543 722		2 648 070		2 445 767	2 312 783		2 205 680		2 137 468		2 122 097	1 999 443
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Ore milled (tonnes)	4 392 731	4 222 565	4 094 849		2 166 490		2 200 473	2 133 295		2 018 665		2 058 210		2 006 328	1 937 118
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4E oz in matte produced	374 791	367 788		349 856		190 532	188 569		194 626		184 765		176 535	176 075		169 260
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4E oz in matte sold	375 340	368 282		345 602		190 867	189 268		194 451		184 923		174 730	177 782		166 501
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Operational indicators
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OVERVIEW

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BOARD OF DIRECTORS
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ACTING CHAIRMAN
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MUCHADEYI (MUCH) ASHTON MASUNDA (60) ��

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BOARD OF DIRECTORS - CONTINUED

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NON-EXECUTIVE DIRECTORS
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TERENCE GOODLACE (53) NHD in Metalliferous Mining, BCom, MBA

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EXECUTIVE DIRECTORS
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ALEXANDER MHEMBERE (51) ACIS, ACMA, MBA

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PATRICK MASEVA-SHAYAWABAYA (48) BAcc (Hons) (UZ), CA (Z)

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STANLEY EARL FROST (62) City & Guilds (Electrical Engineering),

Member of the Association of Mine Engineers

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NON-EXECUTIVE DIRECTORS
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BRENDA BERLIN (48) BCom, BAcc, (Wits) CA (SA)

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MICHAEL JOHN HOUSTON (62) MSc (Business Strategy)

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DR KHOTSO MOKHELE (56) BSc (Agriculture), MSc, PhD

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LESLIE JOHN PATON (60) BSc (Hons) Geology, BCom, Pr.SciNat FGSSA

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ROBERT GEORGE STILL (57) BCom (Wits), BCom (Hons) (UCT), CTA (Wits), CA (SA)

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NYASHA PUZA SIYABORA ZHOU (59) BAcc (Hons) (UZ), CA (Z), MBL (UNISA)

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OVERVIEW

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CORPORATE STRUCTURE

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INDEPENDENT IMPALA PLATINUM
SHAREHOLDERS HOLDINGS LIMITED
13% 87%
ZIMPLATS
HOLDINGS LIMITED
100%
ZIMBABWE PLATINUM
MINES (PRIVATE) LIMITED
100% 100% 100%
NGEZI SELOUS METALLURGICAL HARTLEY-ORE
PLATINUM MINE COMPLEX (SMC) RESERVES
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MANAGEMENT
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ALEXANDER MHEMBERE: ACIS, ACMA, MBA

��

��
��

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PATRICK MASEVA-SHAYAWABAYA: BAcc (Hons) (UZ), CA(Z)

��

��
Finance Manager �

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STANLEY EARL FROST: City & Guilds (Electrical Engineering),

Member of the Association of Mine Engineers

��

��
��
��

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STANLEY SEGULA: BSc (Mining Eng) Hons UZ, MBA, MMCCZ.

��

��
��

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TAKAWIRA MASWISWI: MSc (Tourism & Hospitality), MIPM General Manager - Human Resources

��
��

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SIBUSISIWE CHINDOVE: B. Admin Hons (UZ), MSc (Cork)

Head of Corporate Affairs

��

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ANDREW DU TOIT: BSc Hons (Geology) London, MAusIMM

General Manager – New Business Development

��

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VAUGHAN LANGLEY: ACIS

Group Company Secretary

��

OVERVIEW

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PERFORMANCE
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��

�� performance in the ��

Source : Chairman’s Letter 2012

OVERVIEW

��

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MARKET REVIEW
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PLATINUM

�� Demand for platinum for use in heavy duty diesel �� lower use in light duty diesel emissions control and reduced buying by Japanese auto manufacturers. Autocatalyst demand grew by 1% to 3.11 million ounces.

�� Purchasing last year by jewellery manufacturers was 2% higher than in 2010 at 2.48 million ounces.
�� Investment demand declined by 30% year-on-year but remained positive at 460,000 oz.

Gross platinum demand rose by a modest 2% in 2011 to just under 8.1 million ounces, with growth in every sector apart from investment. Supplies increased to a four-year high, supplemented by a pipeline drawdown in South Africa in the second half, while recycling also rose. As a result, the platinum market swung into a surplus of 430,000 oz last year. The price of platinum �� the fourth quarter, falling to a two-year low of $1,364 by the end of 2011. Net long speculative platinum positions reached the lowest level since the second half of 2009 by the year-end. However, platinum traded on average at $1,721 for the year as a whole, 7% higher than the previous year.

��

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Platinum Monthly Prices 20 09 -2011 (US$ per oz)
2,000
1,500
1,000
500
0
2009 2010 2011
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The platinum price reached a three-year high in August 2011, but suffered a severe downwards correction in September as investors turned away from risk assets.

�� The platinum market swung into an oversupply of 430,000 oz last year.

�� Supplies of platinum rose by 7% to 6.48 million ounces due to inventory releases from South Africa as well as higher output in North America and Zimbabwe. Recycling increased by 12% to 2.05 million ounces.

�� Gross demand for platinum rose by 2% to 8.1 million ounces largely as a result of heavy purchasing by the glass and petrochemical industries.

��

�� Europe and high interest rates in some emerging markets ��

��

MARKET REVIEW - CONTINUED

��

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PlatinumPlatinum Supply and Demand �� mand
’000 oz
Supply 2009 �� 2011
South Africa 4,6354 ,635 4,855
Russia 7858 25 835
Others 6055 90 790
To �� Supply 6,0256 ,050 6,480
Gross Demand
Autocatalyst 2,1853 ,075 3,105
Jewellery 2,8102 ,420 2,480
Industrial 1,1401 ,755 2,050
Investment 6606 55 460
Total Gross Demand 6,7957 ,905 8,095
Recycling (1,405 ) 1,830) (2,045)
Total Net Demand 5,3906 ,075 6,050
Movement in Stocks 635 25) 430
)
)
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�� Gross Demand for Platinum 2007-2011De �� 2007-2011 million oz

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----- Start of picture text -----

9
8
7
6
5
4
3
2
1
0
�� 2007 �� 2008 2009 2010 � 2011
Platinum Supply by Region 200 7- 2011
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PERFORMANCE

��

MARKET REVIEW - CONTINUED

PALLADIUM

�� The palladium market was in surplus by 1.26 million ounces last year. Gross demand fell by 13% to 8.45 million ounces, mainly due to net selling by investors. Further Russian state stock sales and higher recycling also helped push the market into oversupply
�� million ounces as rising output from North America �� Russian state inventories.

Although autocatalyst and industrial demand for palladium rose, the sale of metal from Russian government-controlled inventories, together with a large amount of metal released from ETFs and higher recycling, meant that the palladium market moved into oversupply last year. Due to higher average year-onyear prices, many investors in palladium ETFs were in a �� in the ETF market, together with a perception of weaker fundamentals, led the palladium price, having tested the $850 level, to shed all of its gains since late 2010 in August and September 2011 and trade below $700 for the rest of last year.

��

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Palladium Monthly Prices 2009-2011 (US$ per oz)
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Palladium traded at ten-year highs during the eight months to September 2011 before succumbing to negative investor sentiment.

Gross demand for palladium in autocatalysts reached a new high in 2011 of 6.03 million ounces, driven by growth in vehicle output in all regions apart from Japan, and greater use of palladium in light duty diesel aftertreatment systems. Industrial demand for the metal remained strong.
��
Purchases of palladium by the jewellery industry fell last year, while investment demand for palladium turned sharply negative.
��

��

�� there was a degree of investor fatigue on this aspect of the ��

��

MARKET REVIEW - CONTINUED

��

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Palladium Supply and Demand ’000 oz
Supply 2009 �� 2011
South Africa 2,3702 ,640 2,560
Russia 3,6353 ,720 3,480
Others 1,0959 95 1,320
To �� Supply 7,1007 ,355 7,360
Gross Demand
Autocatalyst 4,0505 ,580 6,030
Jewellery 7755 95 505
Industrial 2,4002 ,465 2,480
Investment 6251 ,095 (565)
Total Gross Demand 7,8509 ,735 8,450
Recycling (1,430) (1,850) (2,345)
Total Net Demand 6,4207 ,885 6,105
Movement in Stocks 680 (530) 1,255
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Gross Demand for Palladium 2007-2011
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Palladium Supply by Region 2007-2011

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PERFORMANCE

��

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MARKET REVIEW - CONTINUED

OTHER PGM

�� Despite growth in demand, the rhodium market �� remained in surplus last year by 139,000 oz as a result of higher supplies and recycling.
Gross demand for rhodium in autocatalysts softened by 2% to 712,000 oz due to lower output by Japanese car manufacturers.
�� Rhodium supplies rose by 4% to 765,000 oz due mainly to higher output from North America and Zimbabwe.
- Ruthenium demand fell by 14% to 809,000 oz as purchasing by the hard disk drive sector declined.
��
�� Demand for rhodium increased by 2% to 906,000 oz as �� a result of capacity building in the glass industry and investment in a new rhodium ETF.
Demand for iridium, dampened by the electrical sector buying lower volumes of metal compared with 2010, fell by 14% to 301,000 oz.

��

The rhodium market was once again oversupplied in 2011 as modest growth in demand was outpaced by a rise in supplies and higher volumes of metal recovered from scrap autocatalysts. As a result, the market surplus

��

�� fundamentals, trading on average 18% lower than in the previous year and reaching a two-and-a-half-year low of

$1,400 by the end of 2011.

��

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Indexed Rhodium, Ruthenium and Iridium Prices in 2011
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��

Rhodium gave back most of its gains from the last two years by the end of 2011. Ruthenium softened in the second half of the year while iridium remained at historic highs.

MARKET REVIEW - CONTINUED

Ruthenium demand declined by 14% in 2011 to 809,000 oz largely due to a drop in demand from the electrical sector.

��

There was some further growth in ruthenium demand in the ��

��

Iridium demand moderated slightly compared with 2010, but remained at elevated levels due to strong purchasing of crucibles in the early part of last year.

�� of demand we have recorded in this sector and represented ��

��

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PERFORMANCE

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��
+ 8 030 000 8 030 000 + MINERAL RESOURCES & ORE RESERVES SUMMARY
Lake Manyame
N
GREAT DYKE GEOLOGY
��
+ ++ + + ��
+ + ++ ��
SML1 + + + + MSZ Outcrop ��
+ +++++++ ++++++++++++++++++++++ ++++ [++++] ++++++++++++++++++++++++++ [+] ++++++++++++++++ [++] +++++++++++++++++++++++++++++++++++++++++++++++++++++++ +++++++++++++++++++++++++ [+] ++++ +++++ ++++++++ +++ [+] ++++++++++++ [+] ++++++++++++++++++++++++++++++++++++++++++++++++++++++ + ++ INSET Msweswe R + ++ + +++++ ++++ +++ PORTALS8 to 10 ��
+ + + + + + +
+ + + + + ��
+ + + + ++
MSZ Outcrop + + + ++ + ++ ++ + ��
+ + + + + + + PORTAL 7
+ ++ ++ ++ + + +++ + + ��
+ + + +
+ ++ + + SML1 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ +++++++++++ + +++ ++++ ++ ++++ ��
+ + ++ + + + + ++ + ++ ++ +++ +++ ++ ++ + ++ + ++ PORTAL 6 ��
+ + + + + + + + + +
+ + + ++++ + +++ +++ +++++ ++ +++++ ++++ +++ ++++ +++ + ++++++ ++ Mupfure R SLIMESNGEZICONCENTRATORDAM NGEZI ++++++++++++++++++++ ++++++++++ +++++++ + +++++++++++++ [++] +++++++++++++++ +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ [+++++] ++++++++ ++++++ +++++++++++++++++ ++++++++++++++PORTAL 4+++++ PORTAL 5 ��
++ ++ + + ��
SML1 ++++++++++++++++++++++++++++++++ [++++] +++++++++++++++++++++++++ [+] +++++++ ++++++ ++++++++++++ +++ ++++++++++ [+] + ++ +++++ + + + + VILLAGETURF ++++++++ ++++++++++++++++++++++++++++++++++++++ ++ [++] +++++++++++++++++ [+] ++++++ [+][+] +++++ ++++++++++++++++++++++ ++++++++++++++++++ [+] +++++++ ++++ [++++] ++++++++ [+] +++++++ [++] +++++++ +++ ++ [+] +++++++++++++ [+] +++++++++++ [+] ++++++++++++++++++++++++++++++++++++ +++ [+][+] ++++++++++ [+] +++++++++++++++++++++++ ++++++++++++ +++++++++ [++] ++++++++++++++++ [+] ++++++++++ [++ +] + [+] ++ [+] ++++++ +++++ [++ ++] ++++++++++++ ++ ++ ++ ++++ [+] +++ +++ [++++] ++++++++ +++ + ++++++++++++ +++++++++ ++++++ [+++++][+][+] ++++++++++++++++++++++++ [+] +++++++++++++++++++++++++++ +++++++ [+] ++++++++++++++ +++ +++++++++++++++++ ++++ ++++++++++++++++ [++] +++++ [+] ++++++++ [++] + [+] ++++++ + ++++++ +++++ [+] ++++++ +++++ [+] +++++++++++++++++++++++++++++++++++++++ [+] +++++++++++++++++++++ +++++++++++++++++++++++++++++++++++++++++++++++ [+] +++++++++++++++++++++ + + [+] ++++++++++++++++++++ + +++++++++++++++++++ [+++] ++++++++++ [+] ++++++++++++++++ ++ [+++] +++++ [++] +++++++++++++ [++] + [+] +++++++++++++++++ ++++++++++++++++++++++++ + ++++++++++++++++ +++ ++++++ [+ +++++] ++++ + +++++++++++++ [++] +++++++++++++++++++++ ++++ +++++++++++ [+] +++++++ ++ [+ ++] ++++++++ [+] ++ [+] ++++++++++++++++++++++++++++++++++ ++++++++ [+++] ++++++ PORTAL 1+ PORTAL 3NGEZI OPENCASTand PORTAL 2NgeziDam ��
+
+++++++++++++++++++++++++++++++++++++++ ++++++++++++++++++++++++++++++++++++++++++++++++++++++++ ++++++++ ++++++++++++++ +++++++++++++ +++++++++++++ +++++++ ++++++++++ ++ Msweswe R 5km 0 5km ��
++++++++++++++++++++ ++++++++++ +++++++ + +++++++++++++ [++] ++++++++++++++ ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ ++++++++++++++++++ ++++++++++++++++++++++ ++++++++++++++++++++++ [+++++] +++++++++ ++++++ ++++++++ ++++++++++ ++++++++++++++ ++ ++++ + ��
+ + + +
+ 7 930 000 ++++++++ ++++++++++++++++++++++++++++++++++++++ ++ [++] +++++++++++++++++ [+] +++++++ ++++ [+][+] ++++++++++++++++++++++ ++++++++++++++++++ [+] +++++++++ ++ [++++] ++++++++ [+] +++++++ [++] +++++++ +++ ++ [+] +++++++++++++ [+] +++++++++++ [+] ++++++++++++++++++++++++++++++++++++ +++ [+][+] ++++++++++ [+] +++++++++++++++++++++++ ++++++++++++ +++++++++ [++] ++++++++++++++++ [+] ++++++++++ [++ +] ++ [+] + [+] ++++++ +++++ [++ ++] ++++++++++++ ++ ++ ++ +++++ [+] ++ ++++ [++++] +++++++ +++ + +++++++++++++ ++++++++ ++++++ [+++++][+][+] ++++++++++++++++++++ [+] +++++++++++++++++++++++++++++++ [+] ++ ++++++ [+] ++++++++++++++ +++ +++++++++++++++++ ++++ +++++++++++++++ +++ [++] +++++ [+] ++++++++ [++] +++++++ + ++++++ +++++ [+] ++++++ ++++ [+] +++++++++++++++++++++++++++++++++++++++ [+] +++++++++++++++++++++ +++++++++++++++++++++++++++++++++++++++++++++++++ [+] ++++++++++++++++++++++ [+] ++++++++++++++++++++++++++++++++++++++ [+++] ++++++++++ [+] ++++++++++++++++ ++ [+++] +++++ [++] +++++++++++ [++] +++ [+] +++++++++++++++++ ++++++++++++++++++++++++++++++++++++++++++ +++ ++++++ [+ +++++] ++++++++++++++ [++] +++++++++++++++++++++++++ ++++ +++++++++++ [+] +++++++ ++ [+ ++] ++++++++ [+] ++ [+] ++++++++++++++++++++++++++++++++++ ++++++++ [+++] ++++++ + NgeziDam DRILLING COVERAGE7 930 000 + 5km 0 5km ��
��
SEE INSET
To Harare
To Chegutu
210 000 260 000
210 000 260 000
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Coordinate system : UTM Zone 36K (Arc 1950 Datum)

PERFORMANCE

��

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GREAT DYKE GEOLOGY - MINERAL RESOURCES
----- End of picture text -----

MINERAL RESOURCES - CONTINUED

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----- Start of picture text -----

MINERAL RESOURCES (Inclusive of Ore Reserves) ��
Tonnes Pt g/t Pd g/t Au g/t Rh g/t �� Pt Moz �� Thick m Tonnes Pt g/t Pd g/t Au g/t Rh g/t �� Pt Moz �� Thick
�� m
Ngezi South - Open Pit
Measured ��
c Total 13 1.74 1.29 0.26 0.14 0.10 0.07 3.43 0.7 1.5 2.5
Ngezi Portals - Flat - P1-P7
Measured �� Proved ��
Indicated ��
c Total 292 1.74 1.34 0.26 0.14 0.11 0.08 3.5 16.4 32.8 2.5 Total 227.2 1.65 1.31 0.23 0.15 0.10 0.07 3.35 12.1 24.5 2.7
Ngezi Portals - Flat P8-P10
Indicated ��
Inferred ��
c Total 123 1.80 1.28 0.31 0.14 0.13 0.08 3.53 7.1 13.9 2.0
Ngezi Portals - Steep P3-P10
Measured ��
Indicated ��
Inferred ��
c Total 295 1.66 1.31 0.27 0.14 0.12 0.09 3.38 15.8 32.1 2.3
Ngezi Mining Lease north of Portal 10
Indicated ��
Inferred ��
c Total 883 1.72 1.48 0.31 0.15 0.15 0.13 3.65 48.8 103.7 1.8
Hartley
Measured ��
Indicated ��
Inferred ��
Total 218 2.04 1.51 0.31 0.17 0.13 0.11 4.03 14.2 28.2 1.9
Oxides - all areas
Indicated ��
Inferred ��
b Total 80 1.71 1.35 0.27 0.14 0.12 0.10 3.47 4.4 8.9 2.3
Overall
Measured 153.3 1.79 1.43 0.26 0.15 0.11 0.09 3.63 8.8 17.9 2.3 Proved 66.3 1.67 1.31 0.24 0.14 0.10 0.07 3.36 3.6 7.2 2.6
Indicated 678.2 1.81 1.41 0.29 0.15 0.13 0.10 3.65 39.4 79.7 2.2 Probable 160.9 1.65 1.31 0.23 0.16 0.10 0.08 3.35 8.5 17.3 2.7
Inferred 1,072 1.71 1.42 0.30 0.15 0.14 0.12 3.6 59.1 123.4 1.9
a Total 1,904 1.75 1.42 0.29 0.15 0.13 0.11 3.6 107.4 221.0 2.0 Total 227.2 1.65 1.31 0.23 0.15 0.10 0.07 3.35 12.1 24.5 2.7
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NOTES

��
��
��
��
��
��

PERFORMANCE

��

MINERAL RESOURCES - CONTINUED

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MAJOR CHANGES SINCE ANNUAL REPORT 2011

��

TABLE 6 COMPARISON WITH PREVIOUS ESTIMATE

MINERAL RESOURCES (INCLUSIVE OF RESERVES)	MINERAL RESOURCES (INCLUSIVE OF RESERVES)	MINERAL RESOURCES (INCLUSIVE OF RESERVES)	MINERAL RESOURCES (INCLUSIVE OF RESERVES)	MINERAL RESOURCES (INCLUSIVE OF RESERVES)	MINERAL RESOURCES (INCLUSIVE OF RESERVES)	MINERAL RESOURCES (INCLUSIVE OF RESERVES)	MINERAL RESOURCES (INCLUSIVE OF RESERVES)	MINERAL RESOURCES (INCLUSIVE OF RESERVES)
Category	2012				2011
	Tonnage (millions)	4E (g/t)	6E g/t	Pt oz (millions)	Tonnage (millions)	4E (g/t)	6E g/t	Pt oz (millions)
Measured	��	��	��	8.8	144	��	��	��
Indicated	678	��	��	��	��	��	��	40.2
Inferred	1. 072	��	��	59.1	1. 072	��	��	59.1
Total	1.904	��	��	107.4	1. 909	��	��	107.6

ORE RESERVES
Category	2011				2010
	Tonnage (millions)	4E (g/t)	6E g/t	Pt oz (millions)	Tonnage (millions)	4E (g/t)	6E g/t	Pt oz (millions)
Proved	��	��	��	��	55.9	��	��	��
Probable	160.9	��	��	8.5	164.4	��	��	9.0
Total	227.2	��	��	12.1	��	��	��	12.0

��

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��

MINERAL RESOURCES - CONTINUED

NOTES

  - ��������������������������������������������������������� �������������������������������������������������������������� ����������������������������������������������������������� ������������������������������������������������������������ �����������������������

��
��
��
��
- ��
��
��
��
��
��
��

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PERFORMANCE

�� Plan of Ore Reserves and Mineral Resources

��

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----- Start of picture text -----

+ 8 030 000 8 030 000 + + 8 030 000 8 030 000 +
N Lake Manyame N Lake Manyame
SML1 SML 1
MSZ Outcrop MSZ Outcrop
SMC
Selous Metallurgical Facility
Hartley Platinum Mine
Mupfure R Mupfure R
SML1 Msweswe R SML 1 Msweswe R
LEGEND LEGEND
Ngezi South Open Pit Resource Measured Mineral Resources
Portals 1-7 Flat Area (<9 degrees) Indicated Mineral Resources
Portals 8-10 Flat Area (<9 degrees) Inferred Mineral Resources
Portals 3-10 Steep Area (>9 degrees) Faults
Hartley
Ngezi Mining Lease
NGEZI North of Portal 10
Underground Faults
Portals
Ngezi Ngezi
Dam Dam
7 930 000 + 5km 0 5km 7 930 000 + 7 930 000 + 5km 0 5km 7 930 000 +
To Chegutu To Chegutu
To Harare To Harare
218 000 250 000 218 000 250 000
218 000 250 000 218 000 250 000
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MINERAL RESOURCES - CONTINUED

COMPETENT PERSONS

��

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Coordinate system : UTM Zone 36K (Arc 1950 Datum)

PERFORMANCE

��

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SUSTAINABILITY MATTERS
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KEY SUSTAINABILITY RISKS

��

��

ZIMPLATS RISK MANAGEMENT FRAMEWORK

��

��

��
��
��

��

��
��
�� maintained
�� appointed to harmonise risk assessment inputs and outcomes
��

KEY RISK AREAS AND THE PROCESS FOLLOWED BY ZIMPLATS

��

��
��
�� The resources that are needed and the records that ��
��

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SUSTAINABILITY MATTERS - CONTINUED

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----- Start of picture text -----

Corporate Governance Requirements for Policies and Guidelines
Code of Conduct Risk Management Organisation and Responsibilities
��
Management of Safety and Hazard Risks Enterprise Treatment of Risks
Risk Management
Transfer of Risks Responsibilities for Treatment Actions
Management of Continuity Reporting
Process Basic Process of Roles and Tasks
Risk Management
Organisation and Responsibilities Guidance
Risk Transfering Financial Strategic
Risk and Business
Risk Appetite
Risk
Risk Monitoring
RISK
��
CHART
Risk Reporting Safety and Operational
Hazard Risks Risks Risk Assesment
Risk Treatment
Avoid
Reduce
Transfer
Accept
Key Risks
Management of Key Risks and Continuity
Reporting
Audits Reporting
Monitoring of Risk Management
Reviews Communications
Self Assesments
Continuous Improvement
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PERFORMANCE

��

SUSTAINABILITY MATTERS - CONTINUED

STRATEGIC RISK FY2012

��
RISK AREA MITIGATION STRATEGIES
SAFETY, HEALTH AND ENVIRONMENT Continual improvement in Technology based safety, health and environment �� Tagging & Tracking , Collision Avoidance and Automation (to address underground performance with an ultimate goal equipment incidents)
of zero harm. �� New launder technology and Mud-gun sealing to minimise occurrence and exposure to explosions respectively.
�� Upgrade Turf Clinic to cater for maternity and community health including VCT. �� A sulphur abatement plant earmarked for commissioning within five years. �� Hydrogeological modelling. �� Construction of hazardous waste silos. �� Ambient monitoring. People based

�� Behaviour based Interventions (Visible felt leadership, planned job observations, peer to peer observations) tracking leading indictors.

�� SHE competence based training.
�� Simulator training to enhance competence on machinery operating
�� Management of leave liabilities/fatigue.
�� Lobbying for the review of Statutory instruments through Chamber of Mines for amendments to emissions, landfills and tailings dam requirements and fee structures (EIA, waste disposal and rehabilitation).
System based
�� Contractor management (incorporating all contractors into Business Management Systems).
�� Off the Job Safety to cultivate a strong safety culture which emanates from home to the workplace.
�� External and Internal Audits.
�� Heat stress Management.
�� Alcohol & drug testing.
�� Long term partnerships with external stakeholders e.g., Population Services International for VCT. Zimplats runs a well-structured VCT/ART programme for its employees and dependants whilst for contractors this facility is obtainable from the surrounding government institutions. Key will be to ensure that these institutions are able to provide the drugs on a sustainable.
�� Reviewing of current EIAs and gradual alignment to the Equator Principles.
�� Apply 4Rs- Re-engineering, Re-use, Recycle and Reduce.

SUSTAINABILITY MATTERS - CONTINUED

RISK AREA	MITIGATION STRATEGIES
PRODUCTION
Improving and maintaining reliable and effective production processes and delivering product on time and to specification.	� The construction of the new by-pass silo to support the ore movement infrastructure. � Ngezi Concentrator power drive train set up reviewed. � SMC sag & ball mills girth gear repairs and replacement on track.
PROJECT DELIVERY
Maintaining effective project management processes and improving skills to ensure successful projects and delivery.	� Relocation of villagers in progress. � Continuous community engagement on compensation and updating villagers on progress � Processing of servitudes.
MINERAL RESOURCE MANAGEMENT
Continually identify, delineate, measure and optimize mineral resources and reserves.	� Drilling and analysis to support future growth and replacement plans continues.
UNIT COSTS
Sustaining unit production costs in the lowest quartile of the industry.	� Labour-continuous headcount and productivity reviews. � Power-continuous review of utilisation efficiencies and power tariffs. � Consumables & maintenance- capacity building of local suppliers. � Trackless mobile equipment- continuous review of contract cost and performance.
METAL PRICES
Understanding future demands for the products, and corresponding industry supply-side profile.	� Improve operational efficiencies. � Continuous monitoring of market developments.
RAND/ DOLLAR EXCHANGE RATE
Closely monitoring the effect of the rand/dollar exchange rate as a source of significant volatility for our business.	� Develop local suppliers to minimise the effect of the USD/ZAR Exchange Rate. � Broaden supplier base.
EFFECTIVE PEOPLE
Attracting , developing, retaining and motivating the requisite management, operational, technical and business skills and pool of talent. Achieving organizational diversity and improved employee engagement and participation in all business activities.	� Key areas of focus: Leadership, Talent Management, Systems Effectiveness and Communication.

PERFORMANCE

��

SUSTAINABILITY MATTERS - CONTINUED

RISK AREA	MITIGATION STRATEGIES
GROWTH
COUNTRY RISK
Managing the uncertainties that affect the operations. Addressing relevant issues on sustainability, corporate responsibility and being recognized as a good corporate citizen in the areas and communities where we operate. Retaining licence to operate , and full legal and regulatory compliance in a continually changing environment.	� Lobbying and engagement with relevant authorities on a variety of issues including indigenisation and empowerment, new mining fees and proposed changes to the mines and minerals legislation. � Community surveys and Engagement. � Audits by third parties. � Legal Audits.
INFRASTRUCTURE
Continually monitoring the condition and future availability of infrastructure (power, water, roads) in Zimbabwe.	� Initiatives including, funding ZESA’s external commitments in return for guaranteed power; �� the national road from Selous to Ngezi.

SOME KEY ISSUES ARE DISCUSSED IN FULLER DETAIL BELOW: INDIGENISATION

��

LOCAL SUPPLIER DEVELOPMENT

��

Management remains in negotiations with the Government of ��

��

COMMUNITY SHARE OWNERSHIP TRUST

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SUSTAINABILITY MATTERS - CONTINUED

BASELINE STUDY AS A FOUNDATION FOR COMMUNITY

��

DEVELOPMENT INITIATIVES

��

PROMOTING GOOD GOVERNANCE

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COMBATING CORRUPTION AND FRAUD

��

�� inception of mining operations and prior to commencement of ��

��

HUMAN RIGHTS

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PEOPLE MANAGEMENT

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MANAGEMENT OF SAFETY, HEALTH, ENVIRONMENT AND �� QUALITY ISSUES �� Rights to freedom of association ��

��
��

�� of conduct and procedures

��

PERFORMANCE

��

SUSTAINABILITY MATTERS - CONTINUED

PEOPLE MANAGEMENT

��

INVESTING IN EFFECTIVE PEOPLE

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PROMOTING EMPLOYEE SAFETY

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SUCCESSES CHALLENGES OBJECTIVE FY13
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�� Contractor management: People Frequency Rate. Significant increase in �� Behaviour based Interventions (Visible felt �� new contractor employees leadership, planned job observations, peer Frequency Rate. thereby introducing more to peer observations) tracking. inexperienced workforce �� Celebrated attainment of seven million �� SHE competence based training. into the system. fatality free shifts. �� Simulator training to enhance competence �� Ngwarati mine achieved 1 058 LTI free �� At Risk Behaviour on machinery operation. days as at the end of FY12. by employees and contractors. Processes �� Three clusters namely Ngwarati and �� Tagging & Tracking, Collision Avoidance and Rukodzi mines as well as Projects �� Four Lost Time Injuries Automation (to address TMM incidents). �� recorded during the Injury free days). financial year. �� New launder Technology and Mud-gun �� Winner of the Implats Group CEO sealing to minimise occurrence and exposure to explosions respectively. Safety award. �� Zimplats Processing Division achieved Systems 1st runner up position in the National �� Contractor management control Premium Award, received Provincial - incorporate all contractors to Business Gold and Sectoral Gold Trophies in Management Systems. Occupational Health & Safety by the �� Promote “Off the Job Safety” to cultivate a National Social Security Authority strong safety culture which emanates from (NSSA). home to the workplace. �� Zimplats Mining Division received the �� External and Internal Audits. �� Retention of OHSAS 18001 and �� Heat stress management. ISO 9001 Management Systems �� Alcohol testing. certification.

SUSTAINABILITY MATTERS - CONTINUED

SAFETY PERFORMANCE

��

�� Emphasis has been on compliance to company rules on safety (Platinum rules), standards & procedures and legal requirements. In addition incentives and reward schemes were reviewed to align with the theme. The current bonus scheme incorporates the safety element in order to reward safe production.

Objective: Close the Supervision Gap.

��

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Zimplats Injury Analysis FY12 at Risk Behaviour
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Objective: Close the Management Gap.

�� necessitated the need to have effective structures to manage ��

with emphasis on change management, mentoring, coaching, maturing the BMS, ownership, accountability and Contractor management.

��

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Lost Time Injury Frequency rate 5 Year Period
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Total Injury Frequency Rate 5 Year Period
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PERFORMANCE

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SUSTAINABILITY MATTERS - CONTINUED

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ENHANCING EMPLOYEE WELLNESS

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SUCCESSES CHALLENGES OBJECTIVE FY13
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�� Broadened the medical surveillance �� Inadequate medical Processes programmes to include Hepatitis A & B facility at Ngezi to cope �� Upgrade Turf Clinic to cater for maternity vaccination and radiation monitoring. with increased population and community health including VCT.
�� Awarded the ‘’Best Social Responsibility of employees, contractors People Award in HIV Management’’ by the and dependants. �� Training of behavioural change facilitators Zimbabwe National Chamber of to promote campaigns within and outside Commerce. the company.
�� Leave management (to address fatigue)
residual indoor spraying and larviciding and heat stress management.
programmes. Systems
�� Enhanced the medical surveillance �� Long term partnerships with external
plan through acquisition of modern stakeholders e.g. Population Services
occupational health equipment.
�� Training of behavioural change facilitators to promote campaigns within and outside the company.

�� Long term partnerships with external stakeholders e.g. Population Services International (PSI) for voluntary counseling and testing.

�� Outdoor larviciding and Indoor residual spraying for mosquitoes.
�� Planned mid shift breaks.

�� Planned wellness and occupational health awareness campaigns.

SUSTAINABILITY MATTERS - CONTINUED

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OCCUPATIONAL HEALTH SURVEILLANCE

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OCCUPATIONAL HEALTH PERFORMANCE

OCCUPATIONAL HEALTH RISKS

A heat stress management programme was extended to

��

��

PERFORMANCE

��

SUSTAINABILITY MATTERS - CONTINUED

OCCUPATIONAL HEALTH

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TUBERCULOSIS

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NEW PULMONARY TB CASES TREATED

Operation	2012	FY2011	FY2010
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NOISE-INDUCED HEARING LOSS

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VCT UPTAKE

VCT UPTAKE
Operation	FY	2012	FY2011	FY2010
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MALARIA

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WELLNESS PROGRAMME

Operation	2012	FY2011	FY2010
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HIV/AIDS

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ZIMPLATS ANTI-RETROVIRAL TREATMENT PROGRAMME

		NUMBER	OF	PATIENTS	ON ART		NEW PATIENTS ON ART	NEW PATIENTS ON ART
Operation	FY	2012	FY	2011	FY 2010	FY 2012	FY2011	FY2010
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SUSTAINABILITY MATTERS - CONTINUED

EMPLOYEE WELFARE

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FUTURE FOCUS

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LEADERSHIP
TALENT
MANAGEMENT
COMMUNICATION SYSTEM
ENHANCEMENT EFFECTIVENESS
CULTURE
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MAINTAINING ACCESS TO STRATEGIC NATURAL

RESOURCES AND MINIMISING OUR IMPACTS

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PERFORMANCE

��

SUSTAINABILITY MATTERS - CONTINUED

ENVIRONMENTAL HIGHLIGHTS

SUCCESSES	CHALLENGES	OBJECTIVE FY13
� Retention of ISO 14001 Environment Management System certification. � Successfully completed Hazardous waste silos and Ngezi landfill lining projects. � The Mining & Processing Divisions were awarded the Association of Mine Managers of Zimbabwe (AMMZ) trophies by the Chamber of Mines Zimbabwe. � Satisfactory performance in effluent discharge quality with no red permits issued by the Environmental Management Agency (EMA). � The Mining and Processing Divisions commemorated the National Tree Planting Day in December 2011 by planting 802 indigenous tree species. � Zimplats exported 15 radiation isotopes from the BMR to Process Automation South Africa for disposal thus saving US$15, 000 in permit fees.	� Sulphur dioxide emissions from the Smelter main stack in red permit category. � The Zimbabwean emission standards are out of line with internationally recognized standards as they only apply to point source emissions and not ground level concentrations. � High environment levies prescribed under Zimbabwean legislation. � Zimbabwean regulations require all waste disposal sites to be lined.	Processes � Implement the sulphur dioxide emission reduction program: A sulphur abatement plant is earmarked for commissioning in the next expansion phase. � Improve the hydro-geological modelling of pollution from waste sites at Zimplats. This includes the construction of monitoring boreholes at the non-hazardous waste landfill (site for bioremediation of soils contaminated with petroleum hydrocarbons). � Continue upgrading landfills to incorporate lining requirements and leachate collection systems as stipulated under the Waste and Effluent regulations of 2007 (SI 6 of 2007). � Develop energy management action plans to address findings from the external energy audit conducted during the third quarter of FY12. Implement the recommendations from the audit in order to improve energy efficiency. � Continue with the Ngezi Open pit rehabilitation programme targeting to �� �� People � Lobbying for the review of Statutory instruments through the Chamber of Mines for amendments to emissions, landfills and tailings dam requirements and fee structures (EIAs, waste disposal and rehabilitation). Systems � Review the current EIAs and gradually align to the Equator Principles. � Apply 4Rs- Re-engineering, Re-use, Recycle and Reduce.

LEGISLATION AND COMPLIANCE

LEGISLATIVE DEVELOPMENTS FY12

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ENVIRONMENTAL AUTHORISATIONS

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COMPLIANCE TO LINING REQUIREMENTS

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ENVIRONMENTAL MANAGEMENT SYSTEM

��

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ENVIRONMENTAL PERFORMANCE INDICATORS

WATER MANAGEMENT

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PERFORMANCE

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SUSTAINABILITY MATTERS - CONTINUED

THE TABLE BELOW SHOWS THE GROUND AND SURFACE WATER SOURCES AND ASSOCIATED ABSTRACTION RATES FOR FY12

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SUCCESSES Q4 FY12 Q3 FY12 Q2 FY12 Q1 FY12 FY12
UNIT Kilometres Kilometres Kilometres Kilometres Kilometres
1. Water from rivers
2. Water from dams 1,021,795 1, 087,962 1,055,496 929,421 4,094,674
�� 91,500 �� 68,462 ��
- - - - -
4. Waste water from other organisations
- - - - -
5. Water from water service providers/municipalities
6. Water Withdrawn �� 1,171,448 1,125,119 �� 4,407,745
7. Water internally recycled (tailings return.) 464, 967 ��
8. Water internally recycled (effluent irrigation.) 2,264 2,264 2,086 1,426 ��
9. Total water recycled �� 424,624 1,595,078
10. Total water consumption 1,580,526 �� 1,429,488 1,422,507 ��
Tonnes Tonnes Tonnes Tonnes Tonnes
11. Tonnes ore milled �� 1,069,290 1,109,975 ��
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REHABILITATION UPDATE 5 YEAR PERIOD

ISSUE	FY12	FY11	FY10	FY09	FY08
��	��	�	�	��	�
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EFFLUENT AND WASTE MANAGEMENT

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EFFLUENT

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REHABILITATION UPDATE 5-YEAR PERIOD TABLE

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WASTE

��

SUSTAINABILITY MATTERS - CONTINUED

��

CLIMATE CHANGE AND ENERGY EFFICIENCY

��

�� emissions in FY12 are consistent with increased production ��

��

DEVELOPING SOCIAL CAPITAL

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PERFORMANCE

��

SUSTAINABILITY MATTERS - CONTINUED

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�� PROGRAMME FY2012

��
�� �� � �� �� � �� �� � �� �� � �� � �� �� � ��	PROGRAMME	FY2012	FY2011
		$	$
	Education	��	755 000
	Sport development	��	26 856
	Income generating and Enterprise development	��	��
	Health	��	��
	Other	1 071 079	40 794
	Total	��	��

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ENTERPRISE DEVELOPMENT

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TURF GUM TREE PROJECT

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SUSTAINABILITY MATTERS - CONTINUED

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MUSENGEZI POULTRY PROJECT

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EDUCATIONAL INFRASTRUCTURE

ST MICHAEL’S’ SCIENCE LABORATORY

��

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PERFORMANCE

��

SUSTAINABILITY MATTERS - CONTINUED

��

DAVID GUZUZU SECONDARY SCHOOL

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RURAL FORESTRY PROJECT AT MHONDORO MUBAIRA

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MARSHALL HARTLEY BOARDING SCHOOL

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SUSTAINABILITY MATTERS - CONTINUED

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FUTURE PLANS

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PROVIDING ACCESS TO CLEAN WATER

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PERFORMANCE

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INDEX TO GLOBAL REPORTING INITIATIVE INDICATORS
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�� .

GRI INDICATOR	TOPIC	PAGE
EC1	Direct economic value generated and distributed including revenues, operating costs, employee compensation, donations, and other community investments, retained earnings and payments to capital providers and governments.	5,7,8,14
EC4	Significant financial assistance received from Government.	Not applicable to Zimplats
EC6	Policy, practices and proportion of spending on locally based suppliers at significant locations of operation.	7,16,18,46
EN8	Total water withdrawn by source.	55,56
EN26	Initiatives to mitigate environmental impacts of products and services and extent of impact mitigation.	54-57
LA7	Rates of injury , occupational diseases, lost days, and absenteeism and total number of fatalities by region.	��
LA8	Education, training, counselling, prevention and risk control programs in place to assist workforce members, their families or community members regarding serious diseases.	��
SO1	Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting.	56-59
SO4	Actions taken in response to incidents of corruption.	74
HR4	Total number of incidents of discrimination and actions taken.	47

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PERFORMANCE

��

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CORPORATE GOVERNANCE REPORT
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BOARD OF DIRECTORS

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�� Remuneration Committee
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CORPORATE GOVERNANCE REPORT - CONTINUED

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	IMPALA NOMINEES	INDEPENDENT	NON-EXECUTIVE	EXECUTIVE
M A Masunda (Acting Chairman)		�	�
B Berlin	�		�
S E Frost				�
M J Houston		�	�
P Maseva-Shayawabaya				�
A Mhembere				�
K Mokhele	�		�
T Goodlace	�		�
L J Paton		�	�
R G Still		�	�
N P S Zhou		�	�
Totals	��	5/11	8/11	��

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PERFORMANCE

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CORPORATE GOVERNANCE REPORT - CONTINUED

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ATTENDEE ATTENDED AUG 11 NOV 11 FEB 12 MAY 12
D H Brown 4/4 � � � �
M A Masunda 4/4 � � � �
B Berlin 4/4 � � � �
S E Frost 4/4 � � � �
M J Houston 4/4 � � � �
P Maseva-Shayawabaya 4/4 � � � �
A Mhembere 4/4 � � � �
Dr. K Mokhele 4/4 � � � �
L J Paton 2/4 x � � x
R G Still 4/4 � � � �
N P S Zhou 4/4 � � � �
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CORPORATE GOVERNANCE REPORT - CONTINUED

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ATTENDEE	CAPACITY	ATTENDED	AUG 11	NOV 11	FEB 12	MAY 12
NPS Zhou	Independent	4/4	�	�	�	�
B Berlin	Implats nominee	��	�	�	�	x
MA Masunda	Independent	��	x	�	�	�

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BOARD COMMITTEES

AUDIT AND RISK COMMITTEE

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REMUNERATION COMMITTEE

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PERFORMANCE

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CORPORATE GOVERNANCE REPORT - CONTINUED

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ATTENDEE	CAPACITY	ATTENDED	AUG 11	NOV 11	FEB 12	MAY 12
MJ Houston	Independent	4/4	�	�	�	�
LJ Paton	Independent	��	X	�	�	�
RG Still	Independent	4/4	�	�	�	�

SAFETY, HEALTH AND ENVIRONMENTAL QUALITY AUDIT COMMITTEE (SHEQ)

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CORPORATE GOVERNANCE REPORT - CONTINUED

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PROJECT STEERING COMMITTEE

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CAPITAL STEERING COMMITTEE

ATTENDEE	CAPACITY	ATTENDED	AUG 11	NOV 11	FEB 12	MAY 12
LJ Paton	Independent	4/4	�	�	�	�
B Berlin	Implats nominee	��	�	�	�	X
NPS Zhou	Independent	4/4	�	�	�	�

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KEY MANAGEMENT COMMITTEES

PROCUREMENT COMMITTEE

EXECUTIVE COMMITTEE (EXCO)

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REMUNERATION REPORT

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PERFORMANCE

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CORPORATE GOVERNANCE REPORT - CONTINUED

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NON-EXECUTIVE DIRECTORS’ REMUNERATION

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	2012	2011
	$000	$000
Chairman	77 250	��
Deputy Cahirman	51 510	47 252
Directors	��	��

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	AUDIT RISK	REMUNNERATION	SHE
	$000	$000	$000
Chairman	20 508	19 562	19 562
Member	11 026	10 764	10 764

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CORPORATE GOVERNANCE REPORT - CONTINUED

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2012 2011
$000 $000
Board fees ��
Audit and risk committee fees �� 40
SHE committee fees 41 ��
Remuneration committee fees 41 ��
Total 479 ��
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EXECUTIVE AND SENIOR MANAGEMENT REMUNERATION

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	2012	2011
	$000	$000
Executive directors and senior executives	7 864	6 759

SHARE APPRECIATION REWARD SCHEME

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PERFORMANCE

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CORPORATE GOVERNANCE REPORT - CONTINUED

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ADDITIONS DISPOSALS BALANCE
Balance Allocated Date of Lapsed No of Date Balance No of Allocation First
at 1 July during the allocation shares sold at 30 June shares price: Rand release
2011 year sold 2012 date
Executive Directors ��
�� 7 Nov 11 �� 47 590 167.19 Nov-08
27 686 7 May 12 27 686 �� 214.62 Nov-08
562 162.88 Nov-09
1 612 �� Nov-09
�� May-10
8 492 116.76 Nov-10
- 162.88 May-11
- 176.92 Nov-11
70 971 �� May-12
�� 192.98 Nov-12
27 686 192.98 ��
�� 171.86 ��
27 686 145.48 May-14
Senior Managers 2 011 887 159 614 �� Various �� 165 199 167.19 Nov-08
257 700 5 Nov 11 257 700 0 214.62 Nov-08
408 197 14 May 12 408 197 �� 162.88 Nov-09
9 297.27 �� Nov-09
�� May-10
128 701 116.76 Nov-10
�� 162.88 May-11
�� 176.92 Nov-11
�� 209.09 May-12
�� Nov-12
�� 192.98 ��
252 296 171.76 ��
408 197 145.48 May-14
Total scheme 2 249 218 817 898 34 530 2 871 972 2 871 972
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RISK MANAGEMENT

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CORPORATE GOVERNANCE REPORT - CONTINUED

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SUSTAINABLE REPORTING

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LEGISLATIVE DEVELOPMENTS

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CODE OF ETHICS AND FRAUD

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PERFORMANCE

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CORPORATE GOVERNANCE REPORT - CONTINUED

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�� 2012 2011
Number of reports received 71 25
Number of employee dismissals 18 �
Number of rewards paid 24 18
Total value of rewards paid out $15 800 $2 550
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DEALINGS IN SECURITIES

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CONTINUOUS DISCLOSURE AND COMMUNICATIONS

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75 PERFORMANCE

PERFORMANCE

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AUDIT AND RISK COMMITTEE REPORT
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BACKGROUND

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AUDIT AND RISK COMMITTEE REPORT - CONTINUED

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NPS ZHOU

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CHAIRMAN OF THE AUDIT AND RISK COMMITTEE

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10 AUGUST 2012

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INTEGRATED REPORT

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PERFORMANCE

FINANCIAL REPORT

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“As the expansion

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Source : Chairman’s Letter 2012

FINANCIAL REPORT

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DIRECTORS’ REPORT
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PURPOSE OF THE COMPANY

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REPORTING CURRENCY AND ROUNDING OF AMOUNTS

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DIRECTORS’ REPORT - CONTINUED

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FINANCIAL AFFAIRS

CAPITAL

AUTHORISED SHARE CAPITAL

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ISSUED SHARE CAPITAL

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UNISSUED SHARE CAPITAL

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SHAREHOLDING IN THE COMPANY

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CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER CERTIFICATION

EMPOWERMENT

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DIRECTORATE

COMPOSITION OF THE BOARD

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DIRECTORS INTERESTS AND REMUNERATION

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FINANCIAL REPORT

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DIRECTORS’ REPORT - CONTINUED

INDEMNITY OF OFFICERS

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THE DIRECTORS’ STATEMENT OF RESPONSIBILITY
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FOR THE YEAR ENDED 30 JUNE 2012

MINERAL RESOURCES & ORE RESERVES SUMMARY

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TO ENABLE THE DIRECTORS TO MEET THOSE RESPONSIBILITIES:

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INSURANCE FOR OFFICERS

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AUDITORS

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ANNUAL GENERAL MEETING

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BY ORDER OF THE BOARD

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APPROVAL OF FINANCIAL STATEMENTS

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A MHEMBERE

CHIEF EXECUTIVE OFFICER

P. MASEVA-SHAYAWABAYA CHIEF FINANCE OFFICER

10 AUGUST 2012

FINANCIAL REPORT

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INDEPENDENT AUDITOR’S REPORT
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INDEPENDENT AUDITORS’ REPORT

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ZIMPLATS HOLDINGS LIMITED

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DIRECTORS’ RESPONSIBILITY FOR THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

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AUDITOR’S RESPONSIBILITY

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OPINION

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PricewaterhouseCoopers

22 August 2012

��

�� P O Box 453, Harare, Zimbabwe
T: +263 (4) 338362-8, F: +263 (4) 338395, www.pwc.com
T I Rwodzi – Senior Partner
��

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STATEMENTS OF FINANCIAL POSITION
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Group
Company

Notes

As at
As at
As at
As at
Jun-12
Jun-11
Jun-12
Jun-11
US$ 000
US$ 000
US$ 000
US$ 000

ASSETS
Non-current assets
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==> picture [73 x 32] intentionally omitted <==

P Maseva-Shayawabaya ��

A Mhembere �� 10 August 2012

FINANCIAL REPORT

��

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----- Start of picture text -----

STATEMENTS OF COMPREHENSIVE INCOME
----- End of picture text -----

��

	Group Company
Notes	As at As at As at As at Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
�� �� �� �� � � �� �� �� �� � � �� �� �� � � �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� � � �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� � � �� �� �� �� �� Other comprehensive income: �� �� � �� � � �� � �� � � �� � � � � �� � � � � Total comprehensive income for the yea� �� �� �� �� �� �� �� ��	�� �� � � �� �� � �
	�� ��

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----- Start of picture text -----

STATEMENTS OF CHANGES IN EQUITY
----- End of picture text -----

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Foreign currency Acquisition Share Share translation equity Revaluation Accumulated �� �� �� �� �� �� �� US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000	Foreign currency Acquisition Share Share translation equity Revaluation Accumulated �� �� �� �� �� �� �� US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000
GROUP Balances at 30 June 2010 �� �� �� �� Other comprehensive income Balances at 30 June 2011 �� �� �� �� Other comprehensive income Balances at 30 June 2012 COMPANY Balances at 30 June 2010 �� �� �� �� Other comprehensive income Balances at 30 June 2011 �� �� �� Other comprehensive income Balances at 30 June 2012	�� �� �� �� �� �� �� � � � � �� �� � � � � � � �� ��
	� � � � � �� �� - - - - - - -

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FINANCIAL REPORT

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----- Start of picture text -----

STATEMENTS OF CASH FLOWS
----- End of picture text -----

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		Group	Group	Company	Company
		As at	As at	As at	As at
	Notes	Jun-12	Jun-11	Jun-12	Jun-11
		US$ 000	US$ 000	US$ 000	US$ 000
Operating activities
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Cash and cash equivalents at end of the year		��	��	��	��

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----- Start of picture text -----

NOTES TO THE FINANCIAL STATEMENTS
----- End of picture text -----

��

1 GENERAL INFORMATION
��
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2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
��

2.1 BASIS OF PREPARATION

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Basis of measurement

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2.1.1 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
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----- Start of picture text -----

STANDARDS NATURE OF EFFECTIVE DATE SALIENT FEATURES OF THE CHANGE AND IMPACT IMPACT
AMENDMENTS CHANGE
INTERPRETATIONS
----- End of picture text -----

STANDARDS AMENDMENTS INTERPRETATIONS	NATURE OF CHANGE	EFFECTIVE DATE	SALIENT FEATURES OF THE CHANGE AND IMPACT	IMPACT

Improvements to IFRS (Issued May 2010)			Annual improvements project is a collection of amendments issued under the annual improvements process, which is designed to make necessary, but non-urgent, amendments to IFRSs.	No Impact
IAS 12 - Income Taxes	Amendment	1 January 2012	The amendment provides a practical approach for measuring deferred tax liabilities and deferred tax assets when investment property is measured using the fair value model in IAS 40 Investment Property.	No Impact
IFRS 7 - Financial Instruments: Disclosure	Amendment	1 July 2011	The amendment will allow users of financial statements to improve their understanding of transfer transactions of financial assets.	No Impact
IFRIC 14 - Prepayment of a Minimum Funding Requirement	Amendment	1 January 2011	This amendment applies in the limited circumstances when an entity is subject to minimum funding requirements and makes an early payment of contributions to cover those requirements.	No Impact

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

��

STANDARDS AMENDMENTS INTERPRETATIONS	NATURE OF CHANGE	EFFECTIVE DATE	SALIENT FEATURES OF THE CHANGE AND IMPACT	IMPACT
IFRIC 19 - Extinguishing Financial Liabilities with Equity Instruments	Amendment	1 July 2010	The interpretation clarifies the accounting by an entity when the terms of a financial liability are renegotiated and result in the entity issuing equity instruments to a creditor of the entity to extinguish all or part of the financial liability (debt for equity swap).	No Impact

��

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----- Start of picture text -----

STANDARDS NATURE OF EFFECTIVE DATE SALIENT FEATURES OF THE CHANGE AND IMPACT IMPACT
AMENDMENTS CHANGE
INTERPRETATIONS
----- End of picture text -----

STANDARDS AMENDMENTS INTERPRETATIONS	NATURE OF CHANGE	EFFECTIVE DATE	SALIENT FEATURES OF THE CHANGE AND IMPACT	IMPACT

IAS 1 - Presentation of Financial Statements	Amendment	1 July 2012	The amendment requires items presented in other comprehensive income (OCI) being grouped into those that will subsequently not be reclassified to profit or loss and those that will. This amendment requires disclosure in the statement of comprehensive income indicating that all items will subsequently be reclassified to profit and loss.	No impact
IAS 19 - Employee Benefits	Amendment	��	The amendments eliminates the option to defer the recognition of actuarial gains and losses, streamlines the presentation of changes in assets and liabilities arising from defined benefit plans including the requirement that re-measurements be presented in other comprehensive income, and enhances the disclosure requirements for defined benefit plans to provide better information about the characteristics of defined benefit plans and the risks that entities are exposed to through participation in those plans.	No Impact
�� Financial Reporting (effective 1 ��	Amendment	��	�� requiring additional disclosure for Financial Instruments in the Interim Financial Report.	No impact
�� Fair Value Measurement.	New standard	��	The new standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs.	No Impact
Improvements to IFRSs: 2009 - 2011 Cycle.		��	Annual improvements project is a collection of amendments issued under the annual improvements process, which is designed to make necessary, but non-urgent, amendments to IFRSs.	No Impact
IFRIC 20 - Stripping Costs in the Production Phase of a Surface Mine	New interpretation	��	The interpretation applies to waste removal costs that are incurred in surface mining activity during the production phase of the mine.	No Impact

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----- Start of picture text -----

STANDARDS NATURE OF EFFECTIVE DATE SALIENT FEATURES OF THE CHANGE AND IMPACT IMPACT
AMENDMENTS CHANGE
INTERPRETATIONS
----- End of picture text -----

STANDARDS AMENDMENTS INTERPRETATIONS	NATURE OF CHANGE	EFFECTIVE DATE	SALIENT FEATURES OF THE CHANGE AND IMPACT	IMPACT

IAS 27 - Separate Financial Statements	Amendment	��	This amendment contains accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity elects or is required by local regulations to present separate financial statements. The standard requires an entity preparing separate financial statements to account for those investments at cost or in accordance with IFRS 9 Financial Instruments.	No Impact
IAS 28 - Investments in Associates and Joint Ventures	Amendment	��	The amended standard prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures. �� investment being equity accounted, instead of being proportionately consolidated.	No impact
IFRS 9 Financial Instruments (2010)	New standard	��		No impact

2.1.2 IMPROVEMENTS TO IFRS
��
2.2 CONSOLIDATION
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FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

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SEGMENT INFORMATION

2.3

��
��
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FOREIGN CURRENCY TRANSLATION

��

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��
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��
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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

��

��

2.5 PROPERTY, PLANT AND EQUIPMENT

��

��

��
��
��

��

Mining Assets

��

��

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

MINE	ESTIMATED USEFUL LIFE
Rukodzi Mine	8 years
Ngwarati Mine	11 years
Bimha Mine	22 years
Ngezi Open Pit	6 years

��

��

Services Assets

��

Other assets

��

ASSET TYPE	ESTIMATED USEFUL LIFE
Furniture fittings and office equipment	5 years
Information technology	��
Vehicles (personally allocated company vehicles)	4 years
Vehicles (personally allocated company vehicles)	5 years

��

��

Assets under construction

��
��
��
��
��

EXPLORATION FOR AND EVALUATION OF MINERAL RESOURCES

2.6
��
��
��
��
��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

��

��
��
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Care and maintenance

��

2.7 IMPAIRMENT OF NON-FINANCIAL ASSETS
�� depreciation are reviewed for impairment at the end of each reporting period whenever events or changes in circumstances ��
��
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2.8 LEASES

��
��

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

��

FINANCIAL ASSETS

2.9 CLASSIFICATION

2.9.1

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

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2.9.3 IMPAIRMENT OF FINANCIAL ASSETS

2.9.2
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RECOGNITION AND MEASUREMENT

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Assets carried at amortised cost

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2.10 OFFSETTING FINANCIAL INSTRUMENTS

��
��
��

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

2.11 DERIVATIVE FINANCIAL INSTRUMENTS

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2.12 INVENTORIES

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��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

2.17 TRADE AND OTHER PAYABLES
��
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PROVISIONS

2.18

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2.13 TRADE RECEIVABLES
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2.14 CASH AND CASH EQUIVALENTS
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2.15 SHARE CAPITAL
��
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2.16 BORROWINGS
��
2.19
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ENVIRONMENTAL REHABILITATION OBLIGATIONS

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Decommissioning costs

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2.16.1

BORROWING COSTS

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2.20 EMPLOYEE BENEFITS

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FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

��

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Share appreciation rights

��

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CURRENT AND DEFERRED INCOME TAX

2.21
��

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

2.22 REVENUE RECOGNITION

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Interest Income

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Dividend income

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SHARE CAPITAL

2.23
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DIVIDEND DISTRIBUTION

2.24
��
3 FINANCIAL RISK MANAGEMENT

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3.1 FINANCIAL RISK FACTORS
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3.1.1 MARKET RISK

Price risk

��
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Foreign exchange risk

��

101

100

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

��

��

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��
��

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CREDIT RISK

3.1.2

��

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	2012 2011 US$000 US$000
�� �� Group 2 �� Unrated ��	�� - - � � - -
	123 006 ��

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	2012 2011 US$000 US$000
�� �� �� ��	�� �� �� �� �� ��
	11 709 ��

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��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

��

��
��
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CASH FLOW INTEREST RATE RISK

3.1.3
��
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LIQUIDITY RISK

3.1.4
��
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		Between 3
	Less than	months &	Between 1	Between 2	Over
	3 Months	1 Year	& 2 Years	& 5 Years	5 Years
At 30 June 2012
��	��	��	��	��	�
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Total	33 213 004	20 461 012	29 117 545	28 000 000	-
		Between 3
	Less than	months &	Between 1	Between 2	Over
	3 Months	1 Year	& 2 Years	& 5 Years	5 Years
At 30 June 2011
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Total	30 197 045	1 294 996	1 948 016	36 117 545	-

3.2 CAPITAL RISK MANAGEMENT

��
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103

102

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

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	2012	2011
	US$000	US$000
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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

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3.3 FAIR VALUE ESTIMATES

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4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
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Production start date

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105

104

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

Revenue recognition

��
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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

5 PROPERTY, PLANT AND EQUIPMENT

	Land, Mining Metallurgical Vehicles Service Assets Total buildings & assets assets and other under mining assets construction claims US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000
GROUP Cost/valuation �� �� �� �� �� ��	�� �� �� �� �� �� �� �� �� �� �� �� �� �� � � � �� �� � ��
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Share appreciation rights

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	Cash-settled share appreciation scheme (5)	Cash-settled share appreciation scheme (5)	Cash-settled share appreciation scheme (5)
	Note	2012	2011
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Accumulated
depreciation
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Carrying
amount 2012	��	��	��	��	��	��	��	��	��
Carrying
amount 2011	��	��	��	��	��	��	��	��	��
		Mining claims			Vehicles	Total
			US$	000	US$ 000	US$ 000
COMPANY
Cost
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					Year to	Year to
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107

106

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

5A PROPERTY, PLANT AND EQUIPMENT

	Land, Mining Metallurgical Vehicles Service Assets Total buildings & assets assets and other under mining assets construction claims US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000
GROUP Cost/valuation �� �� �� �� �� ��	�� �� �� �� �� �� �� �� �� �� �� �� �� �� � � � �� �� � ��
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Accumulated
depreciation
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Carrying
amount 2011	��	��	��	��	��	��	��	��
Carrying
amount 2010	��	��	��	��	��	��	��	��
		Mining claims		Vehicles	Total
			US$ 000	US$ 000	US$ 000
COMPANY
Cost
��	��	��	��	��	��
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Accumulated depreciation
��	��	��	�	��	��
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Carrying amount 2011			��	�	��
Carrying amount 2010			��	�	��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

		Group Company
		Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
6 7	INVESTMENTS �� � � �� �� �� � � �� �� �� � � �� �� �� � � �� �� � � �� �� �� LONG TERM RECEIVABLES	� � �� �� � � �� �� � � �� �� � � �� ��
		� � �� ��
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		�� �� � �

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PREPAYMENTS
�� �� �� � � �� �� �� � � �� �� � � �� �� �� � � �� �� �� � �	�� �� � � �� �� � �
	�� �� � �

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INTER-COMPANY RECEIVABLES

9

Non-current ��

��

109

108

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

		Group Company
		Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
10 11	INVENTORIES �� �� �� � � �� �� �� � � �� �� �� � � �� �� � � TRADE AND OTHER RECEIVABLES	�� �� � � �� �� � � �� �� � �

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12	CASH AND CASH EQUIVALENTS
	�� �� �� �� �� �� �� �� �� � � � �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� � � �� �� �� ��	�� �� �� �� �� � � �

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	Group Company
	Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
13 SHARE CAPITAL AND SHARE PREMIUM �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� ��	�� �� �� ��
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OTHER RESERVES
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14

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111

110

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

	Group Company
	Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
15 DEFERRED INCOME TAX �� �� Deferred tax assets �� �� �� � � �� �� �� � � Deferred tax liabilities �� �� �� � � �� �� �� � � Deferred tax liabilities, net �� �� � � The gross movement on the deferred income tax �� �� �� �� � � �� �� �� � � �� �� �� � � �� �� Deferred tax assets �� �� �� � � �� �� �� � � �� �� �� � � �� � �� � � �� �� � � � �� �� �� � � �� �� � � Deferred tax liabilities �� �� �� �� � � �� �� �� � � �� � �� � � �� �� � � Net deferred tax liability �� �� � �	�� �� � � �� �� � � �� �� � � �� �� � �
	�� �� � �
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	Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
16 MINE REHABILITATION PROVISION �� �� �� �� �� ��	�� �� � � �� �� � � �� �� � � �� ��
	�� �� � �

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OTHER LONG TERM PAYABLES
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113

112

FINANCIAL REPORT

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

	Group Company
	Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
18 BORROWINGS Non-current �� �� �� � � �� �� �� � � �� �� � � Current �� �� � �� � �� � � �� �� �� � � �� �� � � �� �� �� � �	�� �� � � �� �� � �

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		Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
19 20 21	TRADE AND OTHER PAYABLES �� �� �� �� �� �� �� �� � � �� �� �� � � �� �� �� � � �� �� �� � � �� �� �� �� �� �� �� �� �� �� �� ��	�� �� �� �� �� �� � � �� �� � � �� �� � � �� �� � � �� �� �� ��
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22 COST OF SALES

COST OF SALES
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115

114

FINANCIAL REPORT

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

		Group Company Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000

23 24 25 26	OTHER NET (EXPENSES)/INCOME �� �� �� �� �� ADMINISTRATIVE EXPENSES	�� �� �� � �� �� �� �� �� �� � � �� �� �� ��
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		Group Company	Group Company
		Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
27 28 29	INCOME TAX EXPENSE �� �� �� �� �� �� Reconciliation of tax charge: �� �� �� �� �� �� �� �� �� �� �� EARNINGS PER SHARE	�� �� � � � �� � � �� �� � � � �� �� � �
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117

116

FINANCIAL REPORT

��

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

	Group Company
	Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
30 CASH GENERATED FROM/(USED IN) OPERATIONS �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� ��	�� �� �� �� �� �� � � �� �� �� � �� �� � � �� �� � � �� � � � �� �� � � �� �� � � �� �� �� � � �� � �
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	Year to Year to Jun-12 Jun-11 US$ 000 US$ 000
31 CAPITAL COMMITMENTS �� �� �� �� �� �� �� �� �� ��	�� �� �� ��

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PENSION OBLIGATIONS

PENSION OBLIGATIONS
Mining Industry Pension Fund
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RELATED PARTIES

33 33.1 RELATED PARTY RELATIONSHIPS

a) Controlling entities

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Subsidiaries	incorporation	2012	2011
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c) Directors and key management personnel

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119

118

FINANCIAL REPORT

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

	Group Company
	Year to Year to Year to Year to Jun-12 Jun-11 Jun-12 Jun-11 US$ 000 US$ 000 US$ 000 US$ 000
33.2 RELATED PARTY TRANSACTIONS AND BALANCES a) Revenue �� �� �� � � �� �� �� �� b) Inter-company receivables �� �� �� � � �� � � � � �� �� �� �� ��	�� �� � �
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c) Loans to related parties

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Group

Loans and
recievables
Total
US$ 000
US$ 000

34
FINANCIAL INSTRUMENTS BY CATEGORY
At 30 June 2012
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recievables
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d) Transactions with directors and key management personnel

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121

120

FINANCIAL REPORT

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

35 OPERATING SEGMENTS

Vertically integrated operations

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Analysis of Revenue

	Analysis of Revenue
36	��	2012 US$ 000	2011 US$ 000
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			US$ 000
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37 EVENTS AFTER REPORTING PERIOD
��

123

122

FINANCIAL REPORT

FINANCIAL REPORTFINANCIAL REPORT

��

�� Source : CEO’s Report 2012

125

SHAREHOLDER AND OTHER INFORMATION

��

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----- Start of picture text -----

ANALYSIS OF SHAREHOLDERS
----- End of picture text -----

SHAREHOLDING

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SUBSTANTIAL SHAREHOLDERS

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Shareholder	Ordinary Shares
��	��

VOTING RIGHTS OF ORDINARY SHARES

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NAME	NO. OF SHARES	�
IMPALA PLATINUM BV	��	87.00
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED	5,764,145	��
NATIONAL NOMINEES LIMITED	1,444,946	��
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED	1,425,186	��
J P MORGAN NOMINEES AUSTRALIA LIMITED	��	0.78
CITICORP NOMINEES PTY LIMITED	682,514	��
JP MORGAN NOMINEES AUSTRALIA LIMITED CASH INCOME A/C	521,270	0.48
MR PETER MARTIN VANDERSPUY	501,802	0.47
PRIMEOAK LIMITED	��	��
MINERVA TRUST COMPANY LIMITED: R H KAIROUZ	198,000	0.18
��	194,990	0.18
MRS ROSEMARY ANNE RAVESTEYN	184,564	0.17
MR EMANUEL JOSE FERNANDES DIAS	��	0.17
DR DAVID SAMUEL KLEINMAN	160,600	0.15
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA	��	0.11
MR W and MRS R A RAVESTEYN: THE W RAVESTEYN S/FUND	��	0.11
��	78,696	0.07
MR MARK DAVID HUTCHENS	��	0.07
��	��	0.07
MR NEIL DAVID HUTCHENS	67,000	0.06
TOP TWENTY	106,598,725	99.02

ANALYSIS OF SHAREHOLDERS - CONTINUED

NAME	NO. OF SHARES	�
NEXT 20	525 048	0.49
NEXT 20	184 427	0.17
NEXT 20	107 806	0.10
NEXT 20	��	0.06
OTHER	��	0.21
TOTAL	107 637 649	100.00

SHAREHOLDINGS	NO. OF HOLDERS	�	NO. OF SHARES	�
1 - 1 000	249	��	71,664	��
1 000 - 10 000	162	��	��	��
10 000 - 100 000	��	��	877,004	��
100 000 - 1 000 000	12	��	��	��
1 000 000 - 10 000000	�	��	��	��
10 000 000 and over	1	��	��	��
Total	459	��	107,637,649	��

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ON-MARKET BUY-BACK

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TRADING VOLUME

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----- Start of picture text -----

Zimplats share price movements
----- End of picture text -----

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----- Start of picture text -----

Zimplats share performance on the ASX
----- End of picture text -----

127

126

SHAREHOLDER AND OTHER INFORMATION

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----- Start of picture text -----

NOTICE TO MEMBERS OF ANNUAL GENERAL MEETING
----- End of picture text -----

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NOTES

NOTICE TO MEMBERS OF ANNUAL GENERAL MEETING - CONTINUED

(c) Re-election of Mr. P Maseva-Shayawabaya as a Director of the Company.

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(d) Election of Mr. T Goodlace as a Director of the Company.
��
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Directors’ Recommendation

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RESOLUTION 5 – APPROVAL OF FEES PAYABLE TO DIRECTORS

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EXPLANATORY NOTES TO RESOLUTIONS

RESOLUTION 2 – APPOINTMENT OF MESSRS PRICEWATERHOUSECOOPERS AS AUDITORS FOR THE ENSUING YEAR.

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Directors’ Recommendation

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VOTING BY PROXY

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Directors’ Recommendation

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RESOLUTION 3 – APPROVE THE AUDIT FEE OF US$20 000 FOR THE YEAR ENDED 30 JUNE 2012.

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Directors’ Recommendation

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RESOLUTION 4 – ELECTION OF DIRECTORS

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(a) Re-election of Ms. B Berlin as a Director of the Company.

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(b) Re-election of Mr. M J Houston as a Director of the Company.

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��
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129

128

SHAREHOLDER AND OTHER INFORMATION

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----- Start of picture text -----

GENERAL INFORMATION
----- End of picture text -----

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TECHNICAL TERMS
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GENERAL INFORMATION - CONTINUED

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131

130

SHAREHOLDER AND OTHER INFORMATION

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SHAREHOLDERS CALENDAR 2012/2013

GENERAL INFORMATION - CONTINUED

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2012

�� 2013 ��

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UNITS OF MEASURE

g/t grams per tonne �� kt thousand tonnes m metres

�� mw megawatts �� t metric tonnes

PRINCIPAL AND REGISTERED OFFICE

MINE SITES

�� Between Growth Points St Peter Port �� OTHER OFFICES ��
Australia �� 20 Loftus Street �� Makwiro Road ��
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Zimbabwe

AUDITORS

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PricewaterhouseCoopers

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SOLICITORS

Australia

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British Isles

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Zimbabwe

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WANTING TO BE KEPT UP TO DATE WITH ZIMPLATS NEWS?

WEB SITE

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133

132

SHAREHOLDER AND OTHER INFORMATION

INTEGRATED REPORT 2012

==> picture [76 x 44] intentionally omitted <==

ZIMPLATS HOLDINGS LIMITED

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AI assistant

ZIMPLATS HOLDINGS LIMITED — Annual Report 2012

66118_rns_2012-09-16_2a407c87-9bee-468f-86a8-a32aa7329bcc.pdf

MISSION STATEMENT

MISSION

VISION

OBJECTIVES

SCOPE OF THIS REPORT

BUSINESS PROFILE

WHERE WE CAME FROM

LOCATION AND OPERATIONS

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CHAIRMAN’S LETTER - CONTINUED

DEAR SHAREHOLDER

SAFETY, HEALTH AND ENVIRONMENT

OPERATIONS

CORPORATE ACTIVITIES

NGEZI PHASE 2 EXPANSION PROJECT

ZIMPLATS CONTRIBUTION TO ZIMBABWE

CHAIRMAN’S LETTER - CONTINUED

OUTLOOK

ACKNOWLEDGEMENTS

SAFETY, HEALTH AND ENVIRONMENT SAFETY

HEALTH

ENVIRONMENT

OPERATIONS

MINING

ORE MINED

CHIEF EXECUTIVE OFFICER’S REPORT - CONTINUED

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HEAD GRADE

PROCESSING

CONCENTRATORS

SMELTER

CHIEF EXECUTIVE OFFICER’S REPORT - CONTINUED

CAPITAL PROJECTS

EXPANSION PROJECTS

STAY IN BUSINESS PROJECTS

EXPLORATION

HUMAN RESOURCES

COMMUNITY DEVELOPMENT

FINANCIAL RESULTS

APPRECIATION

ALEX MHEMBERE

OUR APPROACH TO REPORTING

MATERIALITY AND STAKEHOLDER ENGAGEMENT

GOVERNANCE AND MANAGEMENT APPROACH

SUSTAINABILITY AIMS

CONSISTENT WITH THIS, THE COMPANY AIMS TO:

MATERIAL SUSTAINABILITY ISSUES - CONTINUED

KEY ANNOUNCEMENTS HAVE INCLUDED:

15 MARCH 2012

28 MAY 2012

3 JULY 2012

SUMMARISED FINANCIAL RESULTS

MUCHADEYI (MUCH) ASHTON MASUNDA (60) �����������������������

BOARD OF DIRECTORS - CONTINUED

TERENCE GOODLACE (53) NHD in Metalliferous Mining, BCom, MBA

ALEXANDER MHEMBERE (51) ACIS, ACMA, MBA

PATRICK MASEVA-SHAYAWABAYA (48) BAcc (Hons) (UZ), CA (Z)

STANLEY EARL FROST (62) City & Guilds (Electrical Engineering),

Member of the Association of Mine Engineers

BRENDA BERLIN (48) BCom, BAcc, (Wits) CA (SA)

MICHAEL JOHN HOUSTON (62) MSc (Business Strategy)

DR KHOTSO MOKHELE (56) BSc (Agriculture), MSc, PhD

LESLIE JOHN PATON (60) BSc (Hons) Geology, BCom, Pr.SciNat FGSSA

ROBERT GEORGE STILL (57) BCom (Wits), BCom (Hons) (UCT), CTA (Wits), CA (SA)

NYASHA PUZA SIYABORA ZHOU (59) BAcc (Hons) (UZ), CA (Z), MBL (UNISA)

CORPORATE STRUCTURE

ALEXANDER MHEMBERE: ACIS, ACMA, MBA

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PATRICK MASEVA-SHAYAWABAYA: BAcc (Hons) (UZ), CA(Z)

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STANLEY EARL FROST: City & Guilds (Electrical Engineering),

Member of the Association of Mine Engineers

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STANLEY SEGULA: BSc (Mining Eng) Hons UZ, MBA, MMCCZ.

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TAKAWIRA MASWISWI: MSc (Tourism & Hospitality), MIPM General Manager - Human Resources

SIBUSISIWE CHINDOVE: B. Admin Hons (UZ), MSc (Cork)

ZIMPLATS HOLDINGS LIMITED Annual Report 2012

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MUCHADEYI (MUCH) ASHTON MASUNDA (60) ��

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