Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — H1 FY2023 Earnings Presentation
19 slides from Impala Platinum's earnings presentation, Mar 2, 2023
Slide 1: Interim Results FY2023
INTERIM RESULTS FY2023 2 March 2023
Slide 2: Forward-looking and cautionary statement
FORWARD-LOOKING AND CAUTIONARY STATEMENT Certain statements contained in this presentation, other than the statements of historical fact, contain forward-looking statements regarding Implats’ operations, economic performance or financial condition, including, without limitation, those concerning the
Slide 3: Group safety overview
GROUP SAFETY OVERVIEW • Implats recorded two fatal injuries at managed operations during the period, and one at Two Rivers JV FATALITIES AND LOST-TIME INJURY FREQUENCY RATE • 15 September 22 Estevao Matsimbe Elec. Serviceman 16 Shaft Falling equipment • 16 November 22 Seutlwadi Ramathelesa Engineeri
Slide 4: Operational performance
OPERATIONAL PERFORMANCE Sustained operating momentum despite challenging macro-economic and operating environment, benefiting from geographically diverse portfolio and initial contributions from expansion projects 0% -9% +15% +39% 6E IN CONCENTRATE REFINED 6E PRODUCTION UNIT COSTS PER 6E OUNCE CAPIT
Slide 5: Movement in concentrate production
MOVEMENT IN CONCENTRATE PRODUCTION 169 598 128 123 147 309 142 koz 6E in conc % variance -10% -2% -5% -1% 1% 6% 15% 1 620 from H1 FY2022 1 610 19 19 6E koz in concentrate 1 600 Mill decoupling project, improved plant availability, ug production increased by 26% Eskom, flooding 10 1 590 1 616 18 1 61
Slide 6: Operational performance
OPERATIONAL PERFORMANCE Sustained operating momentum despite challenging macro-economic and operating environment, benefiting from geographically diverse portfolio and initial contributions from expansion projects 0% -9% +15% +39% 6E IN CONCENTRATE REFINED 6E PRODUCTION UNIT COSTS PER 6E OUNCE CAPIT
Slide 7: Load curtailment
LOAD CURTAILMENT DIRECT H1 FY2023 IMPACT (6E koz) Mining 9 000 POWER MANAGEMENT INITIATIVES Inventory 38 000 → Well defined power response plan → Working closely with industry and government 70 koz final metal impact or 10% of RSA managed operations* → Investing in supplementary green power SECONDAR
Slide 8: Operational performance
OPERATIONAL PERFORMANCE Sustained operating momentum despite challenging macro-economic and operating environment, benefiting from geographically diverse portfolio and initial contributions from expansion projects 0% -9% +15% +39% 6E IN CONCENTRATE REFINED 6E PRODUCTION UNIT COSTS PER 6E OUNCE CAPIT
Slide 9: Inflation & unit cost
INFLATION & UNIT COST SOUTH Commodity AFRICA CANADA ZIMBABWE GROUP UNIT COST INCREASES AND COST CONTRIBUTIONS Fuel 41% 71% 37% 45% IMPALA Unit cost increase MARULA Steel 38% 32% 14% 30% 13% 9% Cost contribution Chemicals 24% 17% 26% 24% +10% 48% +22% 49% Explosives 22% 6% 17% 20% 42% 39% Power 10% 1
Slide 10: Operational performance
OPERATIONAL PERFORMANCE Sustained operating momentum despite challenging macro-economic and operating environment, benefiting from geographically diverse portfolio and initial contributions from expansion projects 0% -9% +15% +39% 6E IN CONCENTRATE REFINED 6E PRODUCTION UNIT COSTS PER 6E OUNCE CAPIT
Slide 11: Capital expenditure
CAPITAL EXPENDITURE VARIANCE IN CAPITAL EXPENDITURE MINE-TO-MARKET 6E CONCENTRATE VS GROUP CAPEX 4 000 14 5000 456 3 500 12 516 4000 3 000 410 10 2 500 Rbn 3000 8 6E koz Rm 2 000 4 949 6 2000 1 500 3 568 4 1 000 1000 2 500 0 0 0 H1 FY2022 SIB Replacement Expansion H1 FY2023 FY2020 FY2021 FY2022 FY20
Slide 12: Financial performance
FINANCIAL PERFORMANCE A strong financial performance supported by robust rand PGM pricing and the destocking of metal inventory to offset the impact of lower refined volumes – sustaining shareholder returns and strategic asset acquisition / investment -2% +5% +4% REFINED 6E SOLD RAND REVENUE BASKET
Slide 13: Profitability & free cash flow
PROFITABILITY & FREE CASH FLOW GROUP GROUPPROFITABILITY BYOPERATION PROFITABILITY BY OPERATION IMPLATS FREE CASH FLOW - CONTRIBUTION 40 000 270 0 368 11 001 535 35 000 620 111 266 2 040 30 000 52% 32% 30% 28% 27% 20% 35% R/6E ounce 25 000 7 545 Rm 20 000 15 000 10 000 5 000 - Marula conc Canada conc
Slide 14: Financial performance
FINANCIAL PERFORMANCE A strong financial performance supported by robust rand PGM pricing and the destocking of metal inventory to offset the impact of lower refined volumes – sustaining shareholder returns and strategic asset acquisition / investment -2% +5% +4% REFINED 6E SOLD RAND REVENUE BASKET
Slide 15: Capital allocation
CAPITAL ALLOCATION CASH FROM OPERATIONS OF R17.7bn BALANCE SHEET STRENGTH OTHER NET INCOME R1.4bn inflow • R27bn gross cash R5.9bn • R15.5bn RBPlat acquisition provision INTEREST PAID R0.2bn outflow 50% • R3.6bn dividend payment • R8bn liquidity TAXES PAID R3.0bn outflow RETURNS TO SHAREHOLDERS CAPE
Slide 16: Outlook and strategic response
OUTLOOK ADVANCING OUR COMPETITIVE POSITION CONSTRUCTIVE MARKET OUTLOOK Operational focus Ensuring stability of operating assets in a challenging environment ▪ Supply challenges (primary and secondary) ▪ Recovering auto market with pent-up demand Investing in the future STRATEGIC RESPONSE ▪ Achieveme
Slide 17: Market guidance
MARKET GUIDANCE Actual GUIDANCE NEW GUIDANCE Business area Unit FY2022 FY2023 FY2023 REFINED PRODUCTION: 6E koz 3 087 3 000 - 3 150 3 000 - 3 150 CONCENTRATE PRODUCTION: 3 171 3 100 – 3 300 3 100 – 3 300 Impala 6E koz 1 174 1 175 – 1 275 1 175 – 1 275 Zimplats 6E koz 589 620 – 650 620 – 650 Two Rive
Slide 18: Interim Results FY2023
INTERIM RESULTS FY2023 2 March 2023
Slide 19: RBPlat transaction
RBPLAT TRANSACTION A compelling offer with significant strategic, operational, financial and social benefits ▪ Competition approval received in November 2022 Delivers and Secures a Strengthens sustains significant Implats’ ▪ Compliance certificate meaningful Western Limb competitive remains outstand
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