Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — FY2013 Earnings Presentation

26 slides from Impala Platinum's earnings presentation, Aug 29, 2013

  1. Slide 1: Annual Results for the year ended 30 June 2013

    29 August 2013 Annual Results for the year ended 30 June 2013 We respect, care and deliver Forward-looking statement Certain statements contained in this presentation other than the statements of historical fact contain forward-looking statements regarding Implats’ operations, economic performance o

  2. Slide 2: Agenda and Key operational features

    29 August 2013 Agenda - Overview - Terence Goodlace - Safety and Operational review - Terence Goodlace - Impala Rustenburg review – Paul Dunne - Financial review - Brenda Berlin - Market Review - Derek Engelbrecht - Conclusion - Terence Goodlace We respect, care and deliver 3 Key operational feature

  3. Slide 3: Key financial features

    29 August 2013 Key financial features  Revenue up 9% to R30 billion  Gross profit declined by 19% to R5.1 billion  Headline earnings declined by 52% to R2 billion (330 cps)  Group capital expenditure reduced by 22% to R6.4 billion  Successful convertible bond raising of R4.5 billion (US$500 mil

  4. Slide 4: Group safety

    29 August 2013 Group safety Fatal injury frequency rate Industry comparison* 0.140 0.16 0.122 0.120 0.14 0.100 0.12 (per million man hours worked) (per million man hours worked) 0.087 0.082 0.10 0.080 0.065 0.08 0.060 0.053 0.06 0.040 0.04 0.020 0.02 0.000 0.00 Implats Platinum industry 2009 2010 20

  5. Slide 5: Notable safety achievements and Safety Strategy

    29 August 2013 Notable safety achievements Operation Achievement Zimplats 10 million fatality free shifts on 26 March 2013 Impala refineries 9 million fatality free shifts 9 November 2012 Impala 1 shaft 6 million fatality free shifts on 13 December 2012 Mimosa 3 million fatality free shifts on 22 Ap

  6. Slide 6: Group refined platinum production

    29 August 2013 Operational Review Terence Goodlace We respect, care and deliver Group refined platinum production 1 800 Mine-to-market 1 214 kozs 368 1 582 1 600 1 400 157 1 200 97 71 (000 oz) 1 000 180 800 709 600 400 200 0 Impala Zimplats Marula Mimosa Two Rivers Non-managed Total We respect, care

  7. Slide 7: Zimbabwean operations and Other SA operations

    29 August 2013 Zimbabwean operations  Zimplats  Tonnes milled up 7% to 4.7 million  Platinum in matte increased by 6% to 198 000 ounces  Unit costs rose by 5% to US$1 307 per platinum ounce in matte  Phase 2 expansion on target for full production in 2015  Mimosa  Tonnes milled up by 2% to 2.

  8. Slide 8: Group capital expenditure

    29 August 2013 Group capital expenditure 9 000  Capital expenditure was reduced by 8 000 22% to R6.4 billion 7 000  Cash preservation initiatives 6 000  Focus on critical path activities 5 000 (Rm) 4 000 3 000  R4.4 billion incurred at Impala 2 000  R2.65 billion spent on 20, 16 and 1 000 17 sh

  9. Slide 9: Employee relations and Zimbabwe update

    29 August 2013 Employee relations A dynamic labour environment  Government intervention to restore peace and stability to the industry  High barriers to exit  Diminished labour tension  Commencement of wage negotiations  Advancing our ER strategy  Increased employee engagement and team mobilis

  10. Slide 10: Impala Rustenburg review

    29 August 2013 Impala Rustenburg review Paul Dunne We respect, care and deliver Constrained mining flexibility  Limited mining face availability  lower than planned primary development  backlog in construction, equipping and ledging  depletion of the old shafts  Further impacted by:  challengi

  11. Slide 11: Merensky Reefs

    29 August 2013 Merensky Reefs - 2014 We respect, care and deliver 21 Merensky Reef - 2018 We respect, care and deliver 22 11

  12. Slide 12: UG2 Reef and Mineral reserves distribution

    29 August 2013 UG2 Reef - 2014 We respect, care and deliver 23 Mineral reserves distribution - FY13 New Shafts 7.1 3.4 Mature Shafts 3.4 5.1 Old Shafts 0.7 0.0 2.0 4.0 6.0 8.0 10.0 12.0 (Pt Moz) Merensky UG2 We respect, care and deliver 12

  13. Slide 13: Initiatives and Deliverables 2014

    29 August 2013 Initiatives  Ore reserve flexibility  Proudfoot initiative  Dedicated development and construction management  Breast ledging  Increased development  Quality mining  Grade reviews  Grade control observers  Team mobilisation  Incentive scheme  Improved systems  Mine plannin

  14. Slide 14: Mineable face length and tonnage production profile

    29 August 2013 Mineable Face Length 28 000 26 000 24 000 22 000 (Metres) 20 000 18 000 16 000 14 000 12 000 10 000 Mar-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Actual Target We respect, care and deliver Impala – tonnage production profile 18 000 16 000 14 000 12 000 New shafts 10 000 (000 t) 8 0

  15. Slide 15: Group income statement

    29 August 2013 Financial Review Brenda Berlin We respect, care and deliver Group income statement R million 2013 2012 % change Sales 30 032 27 593 9 Cost of sales (24 980) (21 337) (17) Gross profit 5 052 6 256 (19) Gross margin 16.8 22.7 (26) Royalty expenses (764) (664) (15) Profit before tax 2 55

  16. Slide 16: Sales variance and operating costs per platinum ounce

    29 August 2013 Sales variance 31 000 3 823 30 032 30 000 29 000 351 28 000 27 593 (Rm) 27 000 26 000 1 735 25 000 24 000 2012 Sales volumes Dollar prices Exchange rate 2013 We respect, care and deliver Operating costs per platinum ounce 19 000 17 000 2 833 16 570 15 000 (R/Pt oz) 1 582 13 450 13 000

  17. Slide 17: Gross profit and profit movement

    29 August 2013 Gross profit movement 10 000 9 000 2 439 8 000 7 000 6 256 6 000 (Rm) 2 832 317 5 052 275 137 5 000 716 4 000 3 000 2 000 1 000 0 2012 Sales Cash costs Share based Chrome Depreciation Metals 2013 payments operations purchased and change in stock We respect, care and deliver Profit mov

  18. Slide 18: Net Earnings and movement in gross cash

    29 August 2013 Net Earnings 2013 2012 % (Rm) cps (Rm) Cps Var Basic Earnings 1 022 168 4 180 690 (76) Headline earnings 979 162 (29) (5) adjustment * Headline Earnings 2 001 330 4 151 685 (52) Impairments 1 306 215 378 62 Normalised Earnings 3 307 545 4 529 747 (27) * Inclusive of goodwill impairmen

  19. Slide 19: Net debt

    29 August 2013 Net debt R million 2013 2012 Cash 4 497 587 Debt excluding leases (6 114) (1 582) Net debt (1 617) (995) We respect, care and deliver Market Review Derek Engelbrecht We respect, care and deliver 19

  20. Slide 20: Sales volumes and average prices by metal

    29 August 2013 Sales Volumes by Metal 2013 2012 % change Platinum (000oz) 1 333 1 368 (3) Palladium (000oz) 859 765 12 Rhodium (000oz) 176 183 (4) Nickel (000t) 14.7 13.9 5 We respect, care and deliver Average Prices Achieved – Major Metals 2013 2012 % change Platinum ($/oz) 1 551 1 614 (4) Palladiu

  21. Slide 21: Platinum and palladium investment

    29 August 2013 Investment Platinum ETF Investment Palladium ETF Investment 2 500 3 000 2 000 2 500 (000 oz) 2 000 1 500 (000 oz) 1 500 1 000 1 000 500 500 0 0 Source : Mitsui US ETFs UK ETFs SWISS ZKB OTHER ABSA US ETF UK ETF Swiss ZKB OTHER We respect, care and deliver Investment Platinum Exchange

  22. Slide 22: Vehicle sales and Chinese jewellery

    29 August 2013 Vehicle Sales World Light Vehicle Sales by Region Year-to-Date % Chg. Region Current Year-Ago (000) (000) YTD North America 9 181 8 573 7.1 Asia / Pacific 16 572 15 718 5.4 Europe 9 292 9 857 -5.7 South America 2 742 2 564 6.9 Other 1 948 1 877 3.8 World Total 39 735 38 589 3.0 Light

  23. Slide 23: Platinum and Palladium Supply / Demand Balance

    29 August 2013 Platinum Supply / Demand Balance 2013 000 oz 2011 2012 (Forecast) DEMAND Automobile 3 400 3 470 3 475 Jewellery 2 415 2 525 2 565 Industrial 1 730 1 700 1 750 Investment 150 200 600 Total Demand 7 695 7 895 8 390 SUPPLY South Africa 4 735 4 025 4 175 North America 375 380 335 Other- I

  24. Slide 24: Rhodium Supply / Demand Balance and Prospects

    29 August 2013 Rhodium Supply / Demand Balance 2013 000 oz 2011 2012 (Forecast) DEMAND Automobile 760 790 800 Industrial 180 190 190 Total Demand 940 980 990 SUPPLY South Africa 635 580 590 North America 20 19 20 Other 30 31 35 Recycle 265 260 300 Russian Sales 70 65 65 Total Supply 1 020 955 1 010

  25. Slide 25: Conclusion

    29 August 2013 Conclusion Terence Goodlace We respect, care and deliver Conclusion  Safety  Remains our first priority  Will drive the safety strategy  PGM Markets  Above ground stocks pressurising short-term prices  Primary supply to remain constrained  Automotive (sales and legislation) dri

  26. Slide 26: Conclusion

    29 August 2013 Conclusion  Operating environment  Changed workplace dynamic  Impending wage negotiations  Margin squeeze  Grow mine-to-market production  Execute operational plan at Impala Rustenburg to deliver 850 000 platinum ounces by 2018  Complete the 90 000 ounce Phase 2 expansion at Zi

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