Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — Investor Presentation (September 2006)

27 slides from Impala Platinum's investor presentation, September 2006

  1. Slide 1: Investor Presentation September 2006

    Investor Presentation September 2006 Introducing Implats Contribution by metal Implats is in the business of Other, 5% mining, refining and marketing Palladium, 9% platinum group metals and Platinum, Nickel, 8% 57% associated base metals FY2006 Rhodium, 21% 2 1

  2. Slide 2: Implats … Key statistics

    Implats … • strives to ƒ be the best platinum producing company and ƒ deliver superior returns to its shareholders • produced 1.846 million ounces Share price (US$ equivalent) of platinum in FY2006 equivalent 250.00 to around 25% of global supplies 200.00 • Generated sales revenue 150.00 of R17.5 bi

  3. Slide 3: Location of operations and interests; Group structure

    Location of operations and interests Group structure IMPLATS Mine-to-market Impala Refining Investments Services (IRS) operations (100%) Impala 100% Aquarius Platinum Platinum (8.6%) Marula 77.5% Concentrate 51% Platinum offtake Aquarius 86.9% agreements Platinum SA Zimplats (20%) 50% Toll refining

  4. Slide 4: Platinum reserves and resources (attributable)

    Platinum reserves and resources (attributable) • 182.9 Moz attributable reserves and resources at as 30 June 2006 Aquarius, 1% Mimosa, 2% Two Rivers, 1% Impala Platinum, 41% Zimplats, 49% Marula Platinum, 6% 7 Market review 4

  5. Slide 5: Sales volumes by metal; Average prices achieved

    Sales volumes by metal FY 2006 FY 2005 % change Platinum (000oz) 1,582 1,562 1 Palladium (000oz) 896 826 8 Rhodium (000oz) 193 177 9 Nickel (000t) 14.8 14.6 1 9 Average prices achieved FY 2006 FY 2005 % change Platinum ($/oz) 988 840 18 Palladium ($/oz) 258 208 24 Rhodium ($/oz) 3,015 1,217 148 Nick

  6. Slide 6: Strong dollar metal prices; The platinum story

    Strong dollar metal prices Basket revenue received per Pt oz sold R/Pt oz $/Pt oz 12000 2000 1800 10000 1600 1400 8000 1200 6000 1000 800 4000 600 400 2000 200 0 0 FY02 FY03 FY04 FY05 FY06 11 The platinum story • The platinum market remained in balance • demand from the automotive sector offset a fu

  7. Slide 7: Platinum fundamentals remain robust; Emission standards (Diesel)

    Platinum fundamentals remain robust 000 oz Price ($/oz) 40 0 1,2 0 0 20 0 1,0 0 0 0 8 00 ( 20 0 ) 6 00 ( 40 0 ) 4 00 ( 60 0 ) 2 00 ( 80 0 ) 0 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 (Deficit)/Surplus Pt Price Diesel continues to drive demand 13 Emission standards (Diesel) Particulate matter limits g

  8. Slide 8: The palladium story; Palladium fundamentals improve

    The palladium story • Demand showing encouraging signs of recovery • Fuelled by substitution of platinum in gasoline engines and introduction of palladium jewellery in China 15 Palladium fundamentals improve 000 oz Price ($/oz) 1,600 800 1,200 600 800 400 400 0 200 (400) (800) 0 CY99 CY00 CY01 CY02

  9. Slide 9: The rhodium story; Rhodium demand remains strong

    The rhodium story • Market continues in deficit in 2006 • Implementation of stricter NOx standards in gasoline engines; and • growth in the glass industry 17 Rhodium demand remains strong 000 oz Price ($/oz) 160 5,000 130 4,000 100 70 3,000 40 2,000 10 1,000 (20) (50) 0 CY99 CY00 CY01 CY02 CY03 CY04

  10. Slide 10: Emission standards; Financial review

    Emission standards g/km NOx limits 0.60 Euro III 0.50 JP 97 0.40 JP 02 0.30 Tier 1 Euro IV Euro V 0.20 JP 05 0.10 Tier 2 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 US Federal European Union Japan 19 Financial review 10

  11. Slide 11: Highlights; Group income statement

    Highlights ƒ Sales revenue up 40% to R17.5 billion (US$2.75 billion) on Heps (cents) 8,000 higher metal prices ƒ Operating profit up 73% 6,000 Up 39% ƒ Headline earnings per share up 4,000 39% to R60.06 2,000 ƒ Final dividend of R22 per share; R87 for the year 0 FY02 FY03 FY04 FY05 FY06 ƒ 8:1 share

  12. Slide 12: Profit by entity; Group capex

    Profit by entity Rm 5,000 117 596 249 109 1,209 3,949 4,000 Up 38% 3,000 2,861 2,000 1,000 0 Headline Impala IRS Zimbabwe Marula Other Headline earnings Platinum operations Platinum earnings FY2005 FY2006 23 Group capex Significant capital expenditure planned Rm - in excess of R13 billion over next

  13. Slide 13: Operational review; Safety

    Operational review Safety Fatal injury frequency rate (per million man hours) 0.16 0.20 0.14 0.16 0.12 0.1 0.12 0.08 0.06 0.08 0.04 0.04 0.02 0 0.00 FY02 FY03 FY04 FY05 FY06 s ds an d PB o ta da at ol nt tr a el ic an pl H G Ti Fi er B Im Xs or o io m d gl N R ol A An G lo ng A 26 13

  14. Slide 14: Safety; Group tonnes milled

    Safety Lost-time injury frequency rate (per million man hours) 9 15 8 7 12 6 5 9 4 6 3 2 3 1 0 0 FY02 FY03 FY04 FY05 FY06 PB s a o da d ds an at at nt ol an H el pl tr ic Ti G B Xs Fi er Im or lo io m d N ng R ol A A G lo ng A 27 Group tonnes milled 000t FY2006 FY2005 % change Impala 16,441 15,778 4

  15. Slide 15: Group refined platinum production; Group cost per platinum ounce

    Group refined platinum production 000 oz FY2006 FY2005 % change Impala 1,125 1,115 1 Marula 37 31 19 Mimosa 66 61 8 Zimplats 89 82 9 IRS 529 559 (5) Group 1,846 1,848 0 29 Group cost per platinum ounce R/oz FY2006 FY2005 % change Impala* (Refined) 4,604 4,227 (8.9) Marula (In concentrate) 9,443 9,82

  16. Slide 16: Operating margins; South African mine-to-market operations

    Operating margins Operation FY 2006 (%) FY 2005 (%) % change Impala 53 42 26 Marula 19 (52) - Zimplats 42 20 109 Mimosa 53 30 76 IRS 14 15 (5) Group 42 34 24 31 South African mine-to-market operations 16

  17. Slide 17: Impala; Impala grade

    Impala ƒ Safety challenging ƒ Record ounces albeit slightly lower than our target ƒ Grade below expectations ƒ Record overall recoveries of 84.5% ƒ New deep level shafts ahead of schedule ƒ PMR expansion to 2.3 million ounces platinum underway 33 Impala grade ƒ Grade declined to 3.8 g/t (4E) due to

  18. Slide 18: Focus on costs through technology; Marula

    Focus on costs through technology • Roll-out of drill jigs • 30% Merensky panels in FY05 35% Merensky panels in FY06 75% Merensky panels in FY07 • Potential for 5-10% improvement in overall mining efficiencies 35 Marula Tonnes Tonnes milled per month 000 ƒ Exceptional safety performance 120 (LTIFR i

  19. Slide 19: Two Rivers; Zimbabwe mine-to-market operations

    Two Rivers Production ramp up ƒ Plant commissioning has 000 oz commenced 160 ƒ Ramp up to full production of 120 120,000 ounces of platinum in 80 concentrate scheduled for FY2008 ƒ Current stockpile of 1 million tonnes 40 facilitates rapid build-up to full 0 FY07 FY08 production • Capital expenditur

  20. Slide 20: Zimplats

    Zimplats ƒ Excellent safety performance ƒ Steady operational performance – record platinum production ƒ 4E grade improved from 3.22 to 3.37 g/t ƒ Portal 2 underground expansion project completed on time and under budget ƒ Secured resource for long-term expansion to 1 million platinum ounces per annu

  21. Slide 21: Mimosa; Impala Refining Services

    Mimosa • JV with Aquarius ƒ LTIFR of 1.40 which is amongst best in Group ƒ Outstanding operational performance – record platinum production of 72,200 ounces in concentrate in FY2006 ƒ Expansion project to 85,000 ounces of platinum per annum complete on time and under budget ƒ Study underway to expan

  22. Slide 22: Aquarius Platinum; Corporate activity

    Aquarius Platinum • Equity-accounted earnings from Aquarius • Production up 38% in FY2006 • Contributes to IRS • Three mines – • Kroondal produced 131,000 ounces of platinum in concentrate in FY2006 • New mining contractor appointed at Marikana • Everest commenced production in December 2005 and is

  23. Slide 23: Corporate Activity; Two-tier empowerment structure

    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 • Appointment of David Brown as CEO • Appointment of FD imminent 45 Two-tie

  24. Slide 24: Structure of RBR transaction; Employee Share Ownership Scheme

    Structure of RBR transaction 5.5 million External ‘A’ shares funding Third RBR party funders existing holding: 49% Implats 1.4% 100% Stake to be converted into ≈ 7.4% Implats shares IRS within 10 years IRS UJV 51% Net position after 10 years ≈ 9% IRS business 47 Employee Share Ownership Scheme • Imp

  25. Slide 25: Provides in excess of 26% BEE ownership; Current status

    Provides in excess of 26% BEE ownership Impala Platinum will achieve empowerment credits from three sources, based on units of production in FY2006 RBR: Existing shareholding 2.4% This transaction 12.3% From ESOP 4.7% Credits from Incwala transaction 7.1% Total 26.5% 49 Current status • Legal agreem

  26. Slide 26: Conclusion; Prospects / Conclusion

    Conclusion Prospects / Conclusion ƒ Fundamentals for PGMs remain solid going forward 000 oz Implats' Platinum Production 2500 ƒ Growth to 2.3 million ounces still 2000 on track for FY2010 1500 ƒ Significant further upside potential 1000 in Zimbabwe 500 • Safety, cost containment and 0 grade manageme

  27. Slide 27: Investor Presentation September 2006

    Investor Presentation September 2006 27

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