Annual Integrated Report 2016 - Bastion

1 Annual Integrated Report 2016 Implats Annual Integrated Report 2016 Our valuesWe respect all our stakeholders, including: shareholders employees and their representative bodies communities in which we operate regulatory bodies suppliers and customers directors and management all other interested and affected parties the principles of the UN Global Compact the laws of the countries within which we operate company policies and procedures our place and way of work open and honest communication diversity of all our stakeholders risk management and continuous improvement philosophiesWe care for the health and safety of all our stakeholders for the preservation of natural resources for the environment in which we operate for the socio-economic well-being of the communities within which we operateWe strive to deliver positive returns to our

2 Stakeholders through an operational excellence model a safe, productive and conducive working environment on our capital projects a fair working environment through equitable and competitive human capital practices on the development of our employees on our commitments to all our stakeholders quality products that meet or exceed our customers expectationsOur vision is to be the world s best platinum-producing company, delivering superior value to stakeholders relative to our peersOur mission is to safely mine, process, refine and market our products at the best possible cost, ensuring sustainable value creation for all our stakeholders Contentshow we create valueAbout this Annual Integrated Report2 Determining materiality and the reporting boundary3 Board profiles5 Group and management structure4 Our business model6 Performance linked to stakeholder needs10 Chairman s report12about implatsOur operations Key features for the Group17 Our operations18 Business environment20 Implats is one of the world s leading producers of platinum and associated platinum group metals (PGMs).

3 Implats is structured around five mining operations and IRS, a toll refining business. Our operations are located on the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe, the two most significant PGM-bearing ore bodies in the welcome your feedback to make sure we are covering the things that matter to you. Go to or email for the feedback form, or scan the code on the left with your smart readers to information available elsewhere in this report1. investment through the cycle3. improve ef ciencies through operational excellence2. consistently deliver production targets4. Cash conservation6. relentlessly drive the safety of our people5. Maintain our social licence to and future LICENCE group performanceChief executive officer s review26 Chief financial officer s report30 Operational reviewImpala36 Zimplats44 Marula52 Mimosa58 Two Rivers64 Impala Refining Services70 Afplats74 Stakeholder review76 Stakeholder material matters78 Risk management80 Remuneration linked to stakeholders and strategy84 Chairman s Statement Governance89 Corporate governance effecting value creation90our mineral assetsImplats Mineral Resource and Mineral Reserve Statement 2016 at a glance92 Integrated Mineral Resource Management96 Attributable Mineral Resources and Mineral Reserves97 Reconciliation98 Life-of-mine production100 The environment101 Contact details and administration102 StrategyObjectivesInvestment

4 Through the cycleCash conservation1. investment through the cycle3. improve ef ciencies through operational excellence2. consistently deliver production targets4. Cash conservation6. relentlessly drive the safety of our people5. Maintain our social licence to and future LICENCEM aintain our social licence to operate1. investment through the cycle3. improve ef ciencies through operational excellence2. consistently deliver production targets4. Cash conservation6. relentlessly drive the safety of our people5. Maintain our social licence to and future LICENCEI mprove efficiencies through operational excellence and safe production1. investment through the cycle3. improve ef ciencies through operational excellence2. consistently deliver production targets4.

5 Cash conservation6. relentlessly drive the safety of our people5. Maintain our social licence to and future LICENCE1. investment through the cycle3. improve ef ciencies through operational excellence2. consistently deliver production targets4. Cash conservation6. relentlessly drive the safety of our people5. Maintain our social licence to and future LICENCEM aintain optionality and position for the futureWe have incorporated the following symbols indicating our strategies and objectives through this Report :Relentlessly drive the safety of our peopleImprove efficiencies through operational excellenceMaintain our licence to operateConsistently deliver production targetsCash conservation1. investment through the cycle3. improve ef ciencies through operational excellence2.

6 Consistently deliver production targets4. Cash conservation6. relentlessly drive the safety of our people5. Maintain our social licence to and future LICENCEI mplats Annual Integrated Report 2016 \ page 1 About this Annual Integrated ReportThe Report seeks to provide a concise and balanced account to providers of capital of how Implats creates value over Annual Integrated Report , compiled for Impala Platinum Holdings Limited (Implats) and its subsidiaries, provides information relating to risks, strategies, governance practices and performance for the financial year 1 July 2015 to 30 June 2016 including prospects addition, information regarding the social, economic and environmental issues that have a material impact on the long-term success of the business and that are important to key stakeholders is provided.

7 The Report is targeted at existing and prospective stakeholders who wish to make an informed assessment of the Group s ability to Statement of commitment to good governance the implats board is committed to provide effective leadership to the group. the board fully embraces the principle of ethical leadership in setting and implementing the strategy of the group, guided by the principles of the King iii code on corporate governance (King iii), the companies act, 2008, the Jse listings requirements and all other applicable laws, standards and codes. a compliance schedule to King iii can be found at in addition, the board takes full responsibility for the management, direction and performance of the group by exercising independent judgement on all issues reserved for its review and approval while taking cognisance of the needs of all and sustain value; It focuses primarily on meeting the needs of shareholders, analysts and notice to shareholders including the corporate governance Report , abridged financials, audit committee Report , social, transformation and remuneration committee Report will be distributed separately to shareholders to comply with the Companies Act and the JSE Listings Requirements.

8 The notice to shareholders should be read in due course in conjunction with this this Report , production is reported in terms of platinum and platinum group metals (PGMs), which include platinum, palladium, rhodium, ruthenium and iridium as well as gold; when included these are referred to as 6E (4E excludes ruthenium and iridium). Both historical and forward looking information is approvalThe board acknowledges its responsibility for the integrity of this Report . The directors confirm they have collectively assessed the content and believe it addresses the material sustainability areas and is a fair representation of the Integrated performance of the audit committee, which has oversight responsibility for the Annual Integrated Report , recommended the Report for approval by the board of board has therefore approved the 2016 Annual Integrated Report for release to information regarding implats is provided in the following reports, all of which are available at Development Report Detail on material economic.

9 Social and environmental performance GRI G4 core compliance Internal reporting guidelines in line with the UN Global Compacts Independent assurance reportSustainable Development Report 2016 Supplement to the Integrated Annual Report 30 June 2016 Mineral Resource and Mineral Reserve Statement Conforms to the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC) Conforms to the Australasian Code for the Reporting of Mineral Resources and Ore Reserves (JORC) Been signed off by the competent personsMineral Resource and Mineral Reserve Statement 2016 Supplement to the Integrated Annual Report 30 June 2016 Annual Financial StatementsThese documents were prepared according to International Financial Reporting Standards (IFRS)

10 , the SAICA Financial Reporting Guides, Financial Reporting Pronouncements, the requirements ofthe South African Companies Act, the regulations of the JSE and recommendations of King IIIA nnual financial statements 2016 Supplement to the Annual Integrated Report 30 June 2016 Online Direct access to all our reports Our website has detailed investor, sustainability and business informationoverall assuranceThe audit committee oversees the internal audit function, which operates as an independent objective assurance. It coordinates among other things, the combined assurance model to map the assurance provided enterprise-wide. This model is designed to ensure optimisation of the assurance provided over the key risks (top 20 strategic risks, top 10 of the topco (operational key risks)), risk management and the internal financial controls facing the Group.