Zimplats' Quarterly Reports

Report for March 2002 Quarter

Highlights

• Smelter re-commissioning completed
• First matte exports
• Road-train haulage commences smoothly
• Platinum price strengthens
• First quarter of production

Project Progress

The Project development phase moved closer to completion during the quarter with the completion of the re-commissioning of the smelter and the export of the first smelter matte consignment. This leaves the converters as the remaining processing facility to be re-commissioned. The two converters are scheduled to be re-commissioned during the June quarter.

Production

Hot commissioning commenced during the quarter. A number of areas requiring modification have been identified and the process of implementing these modifications has commenced. Details are provided under the various operational reports below.

Mining

The mining volumes achieved for the quarter are:

The mining tonnages have been negatively affected by lower than expected contractor equipment availability and abnormally high rainfall in January. Modifications to the mining equipment, plus additional units, have resolved the mining equipment constraints. Improvements to the drainage system around the opencast workings and the tailing off of the wet season have improved mining conditions.

The rollover mining from the first two box cuts to the next two to allow for the infilling and rehabilitation of mined out areas commenced during the quarter.

For the quarter the grade was 96% of the forecast grade (Pt + Pd). For the June quarter the average grade is targetted to be 2.85 g/t (Pt + Pd), which is 95% of the grade expected (Pt + Pd) in the feasibility study at steady state production.

Crushing

Initially, the crushing facility operated at its design capacity. As the quarter progressed it became evident that the feed system to the crusher would not be capable of operating at its design capacity on a sustained basis. Excessive wear Inhibited crushing the required daily tonnage.

The original design consultant has procured a robust apron feeder at its cost and will also cover the cost of installation. The equipment will be installed during May 2002, after which it is expected the crushing facility will provide the required daily throughput on a sustainable basis.

Road Haulage

All nine road trains are now operational and have demonstrated their ability to move the required tonnage on a daily basis from Ngezi to Selous. These units appear to have the capacity to carry additional tonnages should the need arise in the future.

Selous Metallurgical Complex

Quarterly Production

Concentrator

The total tonnage milled during the quarter is lower than forecast because of excessive SAG mill liner breakages. It has been established that the original liner design was wrong, and new liners based on an improved design have been ordered and will be fitted during the June quarter. The total mill tonnage scheduled for the quarter ending June 2002 is 396,000. During the quarter 9,535 tonnes of concentrate was produced compared to the forecast 13,000 tonnes. The crusher feed system and the SAG mill liner constraints are the main reason for the lower concentrate production.

Smelter

A fire in the furnace electrode level control section in February damaged the electrical and hydraulic equipment. No structural damage was done to the furnace or the smelter building and the repair of the electrical reticulation and hydraulic equipment was completed within two weeks. During the repair work the furnace cooled and a further two weeks were required for the controlled re-heating process. A total of four weeks smelting was lost. During this period concentrate continued to be produced, part of which was sold to Impala Refining Services Limited, but the major part was stockpiled for smelting during the quarter ending June 2002.

During the coming quarter the smelter will process most of the stockpiled concentrate, with the balance being processed in the first half of the September quarter.

The smelter production during the current quarter totalled 503 tonnes furnace matte compared to a forecast of 1,468 tonnes. 668 tonnes of this furnace matte was to be processed through the converters to produce 200 tonnes of converter matte. For the quarter ending June 2002, 2,250 tonnes of furnace matte is forecast to be produced, with 1,430 tonnes processed through the converters to produce 390 tonnes of converter matte.

Sale exports (actual and forecast)

The constraints imposed by the crusher feeder, the SAG mill liners, and the fire at the smelter resulted in the lower metal production. It should be noted, however, that Makwiro continued to produce concentrate and at quarter end a total of 6,213 tonnes of concentrate, containing 5,350 ounces of platinum, 4,559 ounces of palladium, 506 ounces of rhodium, and 510 ounces of gold, was in stock.

The production costs for the first quarter, less the revenue generated, has been capitalised in recognition that the start-up costs for a new project are distorted. Production costs and revenue will be reported for the June quarter.

PGM Prices

PGM prices have held up well during the quarter. The major world economies appear to be moving away from recession and the demand for PGMs has been reasonably good.

The PGM prices at each month end of the quarter were as follows:

Share Price

The share price has retained the increase achieved during the previous quarter as shown in the table below:

Presidential Election

The Presidential elections took place during the quarter with minimal effect on operations. Work continues as normal in the post election environment.

Empowerment Placement

The National Investment Trust has not been able to secure the funding to take up the empowerment placement shares. The continuing shortage of foreign currency in Zimbabwe makes it unlikely that in the near future the National Investment Trust will be able to obtain sufficient foreign currency to acquire the placement shares. Zimplats continues to explore for a means by which it can place the empowerment shares with the National Investment Trust.

Investor Inoformation

As at the 31^st March 2002, 88,361,820 fully paid and quoted shares were on issue. Options granted to employees, management and directors remain unchanged at 3,291,000 options. These options are exercisable as follows; 2000 346,000; 2001 421,666; 2002 981,667; 2003 981,667; 2004 560,000. No options were exercised during the quarter.

Major shareholders

Shareholder enquiries

Matters relating to the shareholdings should be directed to the share registry at: Computershare Registry, GPO Box 7054, Sydney NSW1115, Australia.

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