Dear stakeholder

We present the year under review in this, our first integrated annual report, which reflects our holistic approach to measuring our performance and reporting on the triple bottom line.

The review period has been one of the toughest ever for the Implats team. Not only did we have to contend with the global economic crisis, we also faced one of the worst tragedies in our history in July 2009 when nine colleagues died in a fall of ground at our Rustenburg operations. In addition we suffered another setback due to industrial action in late August and early September 2009.

The global financial crisis, which began in 2008, progressed through 2009 as major world economies moved into recession. Simultaneously, there was a major shift in the world's economic power towards the east as Asian economies grew significantly faster than Western economies. This shift helped cushion the impact in our industry of the slump in Western economies.

Platinum prices began rising through the year as Asian jewellery and investor purchases including the exchange traded funds gained momentum. By December 2009, the platinum price had reached $1 500, supported by the notion that the worst of the recession was over and world economies were on a recovery path. While Implats remains poised to take advantage of this recovery, we are mindful of developments in Europe and the debt problems faced by certain European countries which may point to a second recessionary cycle.

Safety

The devastating loss of nine fellow team members at 14 Shaft echoed throughout the Group and touched every one of us. We pay tribute to this team and the six other colleagues we lost during the year on page 51.

At Implats, we recognise that it is the families of those who have died that are hardest hit by their loss. These family members need our compassion and ongoing assistance. As such, Implats will continue to offer support to the immediate family of any employee who loses his or her life as a result of an incident at work, maintaining regular contact to monitor their well-being.

Our fatal incident benefit policy reinforces our concern for these famfilies and defines our commitment going forward. Benefits include providing for schooling needs such as fees, learning materials and uniforms. Beyond financial assistance we ensure, where necessary, that these families are able to participate in other available opportunities from career prospects to apprenticeships, bursaries and employment opportunities at Implats.

Our lost-time injury frequency rate of 4.61 per million manhours worked reflected a poor year for the Group, a 58% deterioration from the previous year, with the largest decline coming from the Marula and Impala Rustenburg mining operations, while all fatalities occurred at the latter operation.

Our goal is zero lost-time injuries by 2012. While we acknowledge that this is an ambitious target, it is being proven possible across the Group, most notably in some of our high-risk underground shafts. Ultimately, it is only through our behaviour and the way we work that we demonstrate to our fellow team members the importance of safety and following the correct procedure at all times. By caring for one another and setting the right example for those around us to follow, we ensure the safety and wellbeing of our team members and make Implats a safer place to work. The calibre of our people and their ability to stay focused throughout these difficulties has seen us emerge as a stronger and more united team, committed to working together with pride.

Financial and business review

The year was one of growth in some areas and disappointment in others. Implats production was up in FY2010 by some 2% to 1.74 million ounces.

The growth came from the Zimplats, Mimosa and Two Rivers operations as well as an increase in toll treatment through Impala Refining Services. Our Marula mine unfortunately did not show the anticipated growth and in fact produced a lower output for FY2010. This operation continues to disappoint.

With regard to Impala Rustenburg the start of the year was disastrous with the tragic safety incident at 14 Shaft and then industrial strike action by the workforce. The year was already anticipated to be tough due to the later than expected delivery of 20 Shaft and the lack of minable Merensky resources. Despite these factors Impala Rustenburg pulled together well and achieved our revised production target of approximately 871 000 ounces of platinum.

Revenue was 3% down when compared to the previous financial year. Despite stronger US$ metal prices the rand was significantly stronger against the US$ period on period.

Cost pressures continue to build on the mining industry as a whole, in particular labour and power costs. Above inflation increases without improvements in productivity undermined our competitive position and as such our gross profit margin was impacted.

Headline earnings per share declined from 1 001 cents in FY2009 to 786 cents in the review period.

During the period under review the Group's unit costs per platinum ounce remained under pressure. Excluding share-based payments unit costs per platinum ounce increased by 11% to R10 089, if one includes share-based payments then unit costs per platinum ounce increased by 22% to R10 417. Therefore the difference of 11% related to the income statement charge for share-based payment provision due to an increase in our share price during the period under review.

The cost performance was impacted by the stoppages at 14 Shaft and the subsequent mining layout changes. In addition the two week industrial action had a significant impact. If one was to strip out the impact of these issues then group unit cost would have risen by 5%.

The underlying reasons behind our cost performance lie in the lack of mining flexibility (particularly on the Merensky reef). This has meant increased mining in remnant areas with the concomitant reduction in productivity. The Company is also in a transition period of older infrastructure reaching the end of its life and new infrastructure being started up. This situation will remain an issue for the next three to four years. Once 20 Shaft and then 16 Shaft come into production we will begin to see productivity improvements. In addition the relative inefficiency of the current operating environment will also improve as we close older infrastructure.

Our dividend for the full year represents a 22% increase over FY2009 and reflects our view that the market fundamentals during 2011 will continue to improve.

The financial year began with a positive net cash balance of R1.4 billion. However, cash net of all debt rose to R1.7 billion at year end due to a combination of a significantly reduced capital expenditure programme and cash obligations for tax and dividends. This has spurred renewed efforts to preserve cash throughout our organisation.

Our strategic focus areas

• Safety – Despite the unsatisfactory safety performance in the year under review, we remain committed to the vision of zero harm. As part of this commitment, we completed a Du Pont review which has been incorporated into our approach towards achieving this goal and help create a better understanding of some of the underlying causes of safety incidents. We focus on compliance, and fostering a culture of intolerance towards unsafe practices and behaviour. We will pursue the vision of zero harm over the coming years, through visible leadership, continuous training, adhering to standards and communicating on safety
• Capital delivery – Delivery has been behind original expectation. 20 Shaft, which should have delivered production tonnage during FY2010, is now expected to deliver only in the next financial year. Consequently our focus remains on ensuring delivery of our mining projects so as to restore Impala Rustenburg to a one million ounce producer by 2014
• Cost leadership – Implats through its Impala Rustenburg and Springs operations remains the cost leader among its peers by balancing its labour complement with throughput and managing the cost of input materials. In an industry where metal prices are driven by market fundamentals, production and cost containment is key to managing the bottom line. The medium-term opportunities are centred on the revised delivery of our new mining projects
• Balance sheet management – Despite the economic recession we have managed our balance sheet positively. We continued to pay dividends and avoid new equity issues and material increases in borrowings. Going forward we will continue to manage the balance sheet prudently, ensuring an appropriate balance between investment and shareholder return
• People – During the economic downturn some relief for the demand for scarce skills was evident. With the upturn in the global economy, we expect there will be greater demand for scarce skills. We continued to invest in our people and to develop the necessary skills from the technical level to executive management
• Growth – Our growth path continues to focus on four key areas namely: Exploration, Organic growth, Acquisitions and Purchase/recycling

  –	Organic growth – The $340-million first phase of the Zimplats Ngezi expansion was officially opened in October 2009. In addition we announced the start of Phase 2 at Zimplats which will support our growth aspirations to 2.1 million platinum ounces per annum by 2014. A review on our Afplats property is under way in order to explore an optimal exploration scenario.
  –	Purchase/ recycling – Through Impala Refining Services we are able to gain access to potential new resources without direct ownership in an orebody as we can purchase and treat material from third-party mines. In addition, recycling has significant potential for growth in the medium to long term given the anticipated increase in the number of vehicles recycled.

Our approach to sustainability

Implats is a long-term business, and this determines our actions. Equally, we know our business is part of the greater environment in which we live, so our actions are shaped by national and international trends in sustainable development.

Sustainability is the cornerstone of every one of our values. It is part of our Board's mandate. It drives our continued, cost-effective growth. It underpins our approach to attracting, retaining and developing our people. It guides our actions in preserving our environment.

In a regulated industry, compliance has always been our baseline. By integrating sustainable development into our business strategy, we are steadily moving beyond a reactive, compliance-driven approach to an integrated and holistic view, governed by the same rigorous disciplines that guide our other business processes. We also have a clearer appreciation of the role Implats plays at different levels in society, namely local, national and international, based on the manner in which we do business.

This integrated annual report reflects our understanding of sustainability and how non-financial performance indicators have a direct impact on the bottom line.

16 Shaft, Rustenburg.