Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Investor Presentation (June 2006)
24 slides from Impala Platinum's investor presentation, June 2006
Slide 1: Investor Presentation
INVESTOR PRESENTATION June 2006 2 Introducing Implats Contribution by m etal Implats is in the business of Other, 5.5% Palladium, mining, refining and 8.5% marketing platinum group Nickel, 10.5% metals and associated base FY2005 Platinum, 64.8% metals Rhodium, 10.7% 1
Slide 2: Implats key statistics
3 Implats … • is the premier global platinum investment • strives to be the best platinum producing company and deliver superior returns to its shareholders • produced 1.848 million ounces of platinum in FY2005 equivalent to around 25% of global supplies Share price (US$ equivalent) 250.00 (0.93
Slide 3: Location of operations and group structure
5 Location of operations and interests 6 Group structure IMPLATS Mine-to-market Impala Refining Investments Services (IRS) operations (100%) Impala 100% Platinum Aquarius Platinum (8.6%) Marula 100%* Concentrate 51% Platinum offtake agreements Aquarius Platinum 86.9% SA (20%) Zimplats 50% Toll refin
Slide 4: Platinum reserves and resources (attributable)
7 Platinum reserves and resources (attributable) • 215.1 Moz attributable reserves and resources at as 30 June 2005 Aquarius, 1% Mimosa, 2% Two Rivers, 1% Impala Platinum, 35% Zimplats, 57% Marula Platinum, 5% Market review 4
Slide 5: Sales volume by metal
9 Sales volume by metal H1 2006 H1 2005 % change FY2005 Platinum (000oz) 833 803 4 1,562 Palladium (000oz) 440 394 12 826 Rhodium (000oz) 93 91 2 177 Nickel (000t) 6.7 7.0 (4) 14.6 10 Strong dollar metal prices revenue received per Pt oz sold R/Pt oz $/Pt oz 10,500 1,500 10,000 1,400 9,500 1,300 9,0
Slide 6: The platinum story
11 Prices achieved by metal H1 2006 H1 2005 % change FY2005 Platinum ($/oz) 911 829 10 840 Palladium ($/oz) 207 221 (6) 208 Rhodium ($/oz) 2,260 1,001 126 1,217 Nickel ($/t) 14,218 13,945 2 14,592 $ revenue per Pt oz 1,452 1,227 18 1,279 Exchange rate (ave) 6.49 6.21 4.5 6.20 R revenue per Pt oz 9,4
Slide 7: Platinum surplus/deficit and the palladium story
13 Platinum surplus/deficit price 000oz $/oz 400 1200 1100 200 1000 900 0 800 700 -200 600 500 -400 400 300 -600 200 100 -800 CY99 CY00 CY01 CY02 CY03 CY04 CY05 0 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 growth fuelled by strong automotive diesel demand 14 The palladium story • Demand showing encoura
Slide 8: Palladium stocks and the rhodium story
15 Palladium surplus/deficit price 000oz $/oz 1500 800 1200 700 900 600 600 500 300 400 0 300 -300 200 -600 100 -900 0 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 above-ground stocks cap price 16 The rhodium story • Market moved into deficit in 2005 • Implementation of stricter NOx standards in gasoline
Slide 9: Rhodium surplus/deficit and Financial review
17 Rhodium surplus/deficit price 000oz $/oz 200.00 4600 4100 150.00 3600 3100 100.00 2600 2100 50.00 1600 1100 0.00 600 100 -50.00 -400 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 tightening NOx legislation driving demand Financial review 9
Slide 10: Highlights and earnings & dividend – interim 2006
19 Highlights – interim 2006 Period on period • Sales revenue up 28% to R7.9 billion • Revenue per platinum ounce • Up 24% in rand terms • 18% higher in dollars • Unit costs contained to a 4.2% increase • Group gross margin of 42% 20 Earnings & dividend – interim 2006 • Headline earnings up 78% to R
Slide 11: Income statement and headline profit by entity
21 Income statement R million H1 2006 H1 2005 % change FY2005 Sales 7,920 6,188 28 12,541 Cost of sales (4,615) (4,167) (11) (8,318) Gross profit 3,305 2,022 64 4,223 Share of profit of 41 204 (80) 204 associates Royalty expenses (379) (231) (64) (415) Profit before tax 2,769 3,372 (18) 6,334 Profit
Slide 12: Group capex and Operational review
23 Group capex • Significant capital expenditure planned - • in excess of R11 billion over next five years Rm 3000 2500 2000 1500 1000 500 0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Expansion Maintenance Operational review 12
Slide 13: Group safety and tonnes milled
25 Group safety Fatal injury frequency rate Lost-time injury frequency rate (per million man hours) (per million man hours) 0.250 Lost Time Injury Frequency Rate 12.00 0.200 10.00 0.158 8.43 7.90 (per million man hours) 0.150 0.139 8.00 0.134 0.104 6.00 5.65 0.100 0.093 4.80 0.069 3.57 3.69 4.00 0.0
Slide 14: Refined platinum production and cost per ounce
27 Group operational review – refined platinum production 000 oz H1 2006 H1 2005 % change FY2005 Impala 591 547 8 1,115 Marula 18 21 (14) 31 Mimosa 35 28 25 61 Zimplats 45 39 15 82 Other IRS 249 245 2 559 Group 938 880 7 1,848 28 Group operational review – cost per platinum ounce R/oz H1 2006 H1 200
Slide 15: Impala Platinum
29 Location – South African mine-to-market operations 30 Impala Platinum • Record performance • Recoveries up 2.5% to 85% • Drill jig implementation – 6% efficiency improvement • BMR and PMR expansions to 2Moz platinum completed • PMR expansion to 2.3Moz platinum approved • 16 and 20 shafts ahead of
Slide 16: Impala cost focus and Marula Platinum
31 Impala – focus on costs through technology • Roll-out of drill jigs • 20% Merensky panels in FY05 60% Merensky panels in FY06 100% Merensky panels in FY07 • Potential for 5-10% improvement in overall mining efficiencies 32 Marula Platinum • Capital expenditure of R830 Mill feed grade million 4.00
Slide 17: Two Rivers Platinum and Zimbabwean operations
33 Two Rivers Platinum • Capital expenditure of R1.2 billion (45% attributable) • Production start-up ahead of schedule - July 2006 • Steady state of 120,000 platinum ounces per annum in late 2007 34 Location – Zimbabwean mine-to-market operations Victoria Falls 17
Slide 18: Zimplats and Mimosa
35 Zimplats Grade • Transition to underground 3.7 3.5 mining operations underway 3.3 g/t 3.1 • Feasibility study on expansion 2.9 to 145,000 ounces platinum to 2.7 Apr - Jun Jul - Sep Oct - Dec be submitted to May board Opencast Underground • Incremental growth planned for Tonnes mined longer term 7
Slide 19: Impala Refining Services and Aquarius Platinum
37 Impala Refining Services • Undertakes processing of third party material - toll-refining activities and concentrate purchases • One of the world’s largest refiners of spent autocatalysts • Headline production of 733,000 oz of platinum in FY2005 • Planned growth of 10% per annum IRS platinum produ
Slide 20: Corporate Activity
Corporate Activity 40 Corporate Activity • Implementation of BEE transaction • Agreed Ni-Cu-PGE joint venture with Jubilee on Ambodilafa • Initiated a smelter expansion project that could ultimately increase capacity to 2.8 million oz of platinum 20
Slide 21: Two-tier empowerment structure and RBR transaction
41 Two-tier empowerment structure • Anchor empowerment partner – RBR • RBR will gain a direct holding of approximately 9% in Implats • Transaction includes Local Economic Development Trust with the primary objective of uplifting local communities and women in particular • Employee Share Ownership Pr
Slide 22: Employee Share Ownership Scheme and BEE ownership
43 Employee Share Ownership Scheme (ESOP) • Implats makes capital contribution to ESOP trust • R1.8 billion to purchase 2.05 million (3%) Implats shares - equivalent to 25% of total transaction • 28,304 eligible employees (Patterson A,B and C grades) including 26,962 HDSA employees • Eligible employ
Slide 23: Current status and Conclusion
45 Current status • Legal agreements concluded in May 2006 • Conditions outstanding include: • DME approval • Competition Board approval • Shareholder approval • Bank financing Conclusion 23
Slide 24: Prospects
47 Prospects • Robust PGM market • Increase in production to 2500 2000 2.3 million platinum ounces by 1500 FY2010 on track 1000 • Significant further upside 500 potential in Zimbabwe 0 • Safety, cost containment and 00 05 10 FY FY FY grade management remain M ine to m ark e t 3rd party proce s s ing
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