Mining conditions during the past year have been particularly difficult as a result of negotiating major structural geological features on the eastern and western extremities of current mining areas. This has had the effect of slowing the rate of development and reducing the extraction ratios in stoping operations.

Total development metres were 12% lower than the previous year owing to delays resulting from additional work required to support and seal footwall drives traversing the faults and water bearing fissures. Nevertheless, progress continues to be made as evidenced by the increase in Merensky ore reserves from 17 months last year to 20 months at the end of this financial year. It is anticipated that the target of 24 months ore reserve on the Merensky horizon will be achieved by the end of financial 2004.

Overall stoping production increased by 13.3% to 432 050 m² year on year. Production from the higher grade Merensky reef was prioritised, particularly during the second half of the year, to maximise metal production. The average Merensky head grade however, declined from 6.1g/t to 5.9g/t owing to increased dilution as a result of higher than normal ledging activity, a higher than expected incidence of potholing and poor ground conditions associated with major faults. On the UG2 reef horizon, production was comparable to the previous year, but the average head grade improved from 3.8g/t to 4.0g/t and is expected to be maintained at this level in the coming year.

Stoping productivity improved by 20% in the year under review and is expected to show further gains as the ore reserve position and associated mineable face length improves. On the UG2 horizon productivity improvements will be focused on increasing the overall extraction rate of this reef by re-evaluating regional pillar designs and optimising panel lengths and layouts.

Results of operations
 

Merensky reef	F2003	F2002
Development metres 1	13 596	14 622
Square metres mined	317 677	264 463
Tonnes mined	1 896 010	1 612 101
Tonnes milled	1 582 421	1 288 141
Head grade - g/t 2	5.9	6.1
Metals in concentrate
produced - kg 2, 3	7 937	6 596
Ore reserves - months	20	17
UG2 reef	F2003	F2002
Development metres	1 147	2 148
Square metres mined	114 373	116 931
Tonnes mined	638 614	664 362
Tonnes milled	636 717	643 286
Head grade - g/t 2	4.0	3.8
Metals in concentrate
produced - kg 2, 3	1 968	1 862
Ore reserves - months	38	36
Combined reefs	F2003	F2002
Development metres	14 743	16 770
Square metres mined	432 050	381 394
Tonnes mined	2 534 624	2 276 463
Tonnes milled	2 219 138	1 931 427
Head grade - g/t 2	5.3	5.3
Metals in concentrate
produced - kg 2, 3	9 905	8 458

1	Includes 4 502 metres on the accelerated development programme
2	3PGE+Au.
3	Metals in concentrate from underground mining. Total metals in concentrate produced was 10 354 kg (3PGE+Au) which included 449 kg from metal gains and reverts processed subsequent to the smelter shutdown.