Zimplats' Quarterly Reports

REPORT FOR THE JUNE 2002 QUARTER

HIGHLIGHTS

• Development phase completed on budget.
• 36,278 ounces of 4E* produced during quarter including 17,900 ounces of platinum.
• US$287 cash cost per 4E ounce during this build up phase.
• Positive cash flow achieved during quarter.
• 170,000 ounces 4E planned for financial year to June 2003.
• No metal or currency hedging in place.

*4E = Platinum + Palladium + Rhodium + Gold

PRODUCTION

The June quarter is the first quarterly production report for Zimplats and marks the transformation of the company from the development phase to the production phase. Several major processing plant modifications were successfully completed during a ten-day shut down in the quarter. The processing plant was operating at its full design capacity at the end of June.

Mining

The improved mining volumes for the quarter reflect the better performance of the contractor’s mining equipment.

The replacement of the crusher feeder and the SAG mill liners reduced the mill operating time during the quarter and therefore a lower tonnage of ore was mined and additional waste was mined instead.

Crushing

The new crusher feeder was installed during a ten-day shut down in May to fix the mechanical issues reported in the March report. The feeder has operated well since installation and has sufficient capacity to process the required ore volume for the Selous Metallurgical Complex.

Road Haulage

The road trains continue to operate well, with sufficient capacity to transport the ore requirements for the Selous Metallurgical Complex.

Selous Metallurgical Complex

Concentrator

During the quarter the replacement SAG mill liners were installed in the mill. No liner breakages have been experienced subsequently and milling at the planned and design capacity levels have been achieved.

Smelter

8,200 tonnes of the concentrate stockpiled, as a result of the fire at the smelter reported in the March quarter, was processed during the quarter. The remaining 2,578 tonnes will be reduced to an ideal stock level of 1,500 tonnes during the September quarter.

Financial

The revenue and operating cost for the June quarter for Makwiro Platinum Mines (70% attributable to Zimplats) is tabled below:

	June Quarter US$ ’000
Revenue	16,534
Operating Cost	11,901
Operating Cash Flow	4,633

Cash and total cost of production:

Note: Mining and haulage equipment depreciation is included in the cash cost of the mining and haulage contracts.

Project Progress

The project development phase was completed during the quarter with the successful re-commissioning of the converters at the Selous Metallurgical Complex.

PGM Prices

The average PGM and gold prices for the past 3 quarters are as follows:

	December 2001 Quarter	March 2002 Quarter	June 2002 Quarter
Platinum	445.20	487.82	546.36
Palladium	359.31	390.22	357.82
Rhodium	923.84	989.66	916.35
Source: Johnson Matthey, monthly average price.
Gold	278.44	293.68	318.55
Source: Monthly average of the daily London am/pm fixes.

Empowerment Placement

The National Investment Trust has not yet secured funding to acquire the empowerment placement shares equating to 15% of the issued share capital of the company.

Management is kept informed of the efforts being made by the National Investment Trust to source funding for the placement.

Investor Information

Capital Structure

As at the 30^th June 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. The options, with the exception of the 1999 options, which vested in 2000, vest over a 3-year period, and must be exercised within 5 years of the date of issue. The share options issued to date, plus the exercise price, are tabled below. No options were issued, or exercised, during the quarter.

Major shareholders

Shareholder enquiries

Matters relating to the shareholdings should be directed to the share registry at: Computershare Registry Services Pty Ltd, GPO Box 7054, Sydney NSW 1115, Australia. Tel: +61 2 8234 5222, Fax: +61 2 8234 5070.

Information on Zimplats