Zimplats' Quarterly Reports

Report for December 2001 Quarter

Highlights

• Ngezi Platinum Mine infrastructure completed on schedule and within budget.
• First ore hauled from Ngezi Platinum Mine to Selous Metallurgical Complex.
• 77km Ngezi to Selous road completed in 200 days.
• SMC Concentrator commissioned using stockpiled ore.
• First consignment of concentrate exported to Impala Refining Services Limited.
• SMC Smelter commences recommissioning.

Project Progress

5.5 million tonnes of bulk waste was mined during the quarter compared to the September quarter forecast of 5.0 million tonnes. 40,000 tonnes of ore was produced during the quarter compared to the forecast 170,000 tonnes. The deficit was partially made up by cleaning out broken ore left in the Hartley Platinum Mine when mining operations were suspended.

The forecast ore production was not achieved because of delays in the installation and commissioning of the crusher due to late deliveries by the manufacturer; unusually high rainfall for the period which caused flooding in the open pits; and delays in the delivery of road train trailers from Australia

Infrastructure development of the mine was completed in December with the commissioning of the crusher and the road train loading facility. The total capital cost of the mine is under budget and on schedule.

The crusher is now operating at its design capacity. Additional drainage facilities have been constructed to divert excess water should there be further abnormally high rainfalls.

The first road train commenced operating early in January and the full complement of 9 road trains is expected to be operational by the end of February 2002. Haulage volumes are being supplemented using standard 30-tonne vehicles, and budgeted quantities of ore are expected to be achieved for the March 2002 quarter.

For the quarter ending March 2002 Ngezi Platinum Mine production, which is still in build-up phase, is scheduled to be:

The 77km road and three main bridges were opened on the 5^th December 2001, representing a 200-day construction period. The cost of the road is within budget and was completed 10 days ahead of schedule. No lost time injuries were incurred during the construction of the road.

Selous Metallurgical Complex

The mill and concentrator were re-commissioned in November 2001 using stockpiled semi-processed material and ore recovered from Hartley Platinum Mine. The first concentrates were produced in December 2001.

Refurbishment work on the smelter was completed in December to enable the smelter to be switched on in early January 2002. The smelter is scheduled to produce matte at the end of January 2002.

The mill and concentrator have performed well and in line with their design capacity. The plant is processing the Ngezi ore more efficiently than the Hartley ore, due to the lower talc content of the Ngezi ore.

For the quarter ending March 2002 the Selous Metallurgical Complex production is scheduled to be 13,000 tonnes concentrate, to produce 800 tonnes of furnace matte and an additional 200 tonnes of converter matte:

PGM Prices

Pgm prices have improved during the quarter as shown in the table below. Jewellery sales in China improved significantly in 2001 and are expected to grow during 2002. Automakers have also experienced improved sales and vehicles stocks have been reduced.

Empowerment Placement

The National Investment Trust of Zimbabwe has not yet secured the funding for the 15% equity placement Zimplats proposes to make to the Trust. It is hoped that this will be secured in the March quarter.

Ngezi/SMC Project Funding

A further US$5 million is scheduled to be drawn down during the March quarter, bringing the total loan funding advanced to Makwiro Platinum Mines (Private) Limited by Absa Bank Limited to US$25 million out of the facility of US$30 million.

Share Price

The share price has improved during the quarter as shown in the table below:

Zimbabwe Political & Economic Situation

The economic and political situation in Zimbabwe deteriorated during the quarter. This has fortunately not affected Zimplats nor the Ngezi/SMC Project and Zimplats continues to enjoy the full support of all Government departments it deals with.

The Presidential elections have been set for March 2002 and will take place over the weekend of the 9^th and 10^th March. It is hoped that the economic and political situation will improve after the elections.

Investor Information

Capital Structure

As at the 31^st December 2001 88,361,820 fully paid and quoted shares were on issue. Options granted and the dates on which the options vest are tabled below:

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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