Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — H1 FY2013 Earnings Presentation

21 slides from Impala Platinum's earnings presentation, Feb 14, 2013

  1. Slide 1: Interim Results for the half year ended 31 December 2012

    14/02/2013 Interim Results for the half year ended 31 December 2012 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 perform

  2. Slide 2: Agenda; Key features - operational

    14/02/2013 Agenda - Overview - Terence Goodlace - Safety, Social and Operational reviews - Terence Goodlace - Financial review - Brenda Berlin - Market Review - Derek Engelbrecht - Conclusion - Terence Goodlace We respect, care and deliver Key features - operational  Safety remains a key priority 

  3. Slide 3: Key features - financial

    14/02/2013 Key features - financial  Revenue down 2% to R15.2 billion  Gross profit fell by 42% to R2.6 billion and gross margin declined from 29% to 17%  Headline earnings fell 78% to R1.28 per share  Cash from operating activities was maintained at R3.1 billion  Group capital expenditure decl

  4. Slide 4: Group safety

    14/02/2013 Group safety Fatal injury frequency rate 0.14 0.12  5 accidents resulting in 0.12 6 fatalities, all at Rustenburg (per million man hours worked) 0.1 0.09 0.08 0.08 0.08  No fall-of-ground fatalities 0.06 0.05 0.04  Implementing new cultural transformation and technical 0.02 safety init

  5. Slide 5: Safety – the way forward

    14/02/2013 Safety – the way forward  Safety strategy • Implementing the cultural transformation framework • Closing the supervision gap • New technical initiatives  Status of major safety initiatives • Nets and bolts in workings • Personnel detection systems on trackless equipment • Bank and shaft

  6. Slide 6: Housing – Sunrise View

    14/02/2013 Housing – Sunrise View We respect, care and deliver 11 Housing – Sunrise View home owner We respect, care and deliver 12 6

  7. Slide 7: Education – Sunrise View Primary

    14/02/2013 Education – Sunrise View Primary We respect, care and deliver 13 Education – Sunrise View Primary We respect, care and deliver 14 7

  8. Slide 8: Socio-economic development

    14/02/2013 Socio-economic development Total spend of R3.1 billion over last 6 years 1000 800 600 (Rm) 400 200 0 2007 2008 2009 2010 2011 2012 Other socio-economic development Housing and living conditions We respect, care and deliver 15 Operational Review Terence Goodlace We respect, care and delive

  9. Slide 9: Group refined platinum production and unit cost

    14/02/2013 Group refined platinum production 900 244 Mine-to-market 865 621 000 ozs 800 700 79 600 51 (000 oz) 36 500 87 400 368 300 200 100 0 Impala Zimplats Marula Mimosa Two Rivers Non-managed Total We respect, care and deliver 17 Group unit cost per platinum ounce 20 000 19 118 16 674 15 983 15

  10. Slide 10: Group capital expenditure; unit cost plus capital

    14/02/2013 Group capital expenditure 4 500 4 000 3 500 3 000 (Rm) 2 500 2 000 1 500 1 000 500 0 H1 FY10 H2 FY10 H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 SIB Zimplats Leeuwkop Other replacement projects 20 Shaft 17 Shaft 16 Shaft We respect, care and deliver 19 Group unit cost plus capital - H1FY2013

  11. Slide 11: Employee relations; Zimbabwe indigenisation concluded

    14/02/2013 Employee relations  A changing labour environment at Impala  AMCU membership has grown to approximately 50%  What this means:  NUM no longer the majority union  A new recognition agreement needs to be agreed and signed  A new health and safety agreement needs to be agreed and signed

  12. Slide 12: Group income statement

    14/02/2013 Financial Review Brenda Berlin We respect, care and deliver Group income statement R million H1 FY2013 H1 FY2012 % change FY2012 Sales 15 161 15 412 (2) 27 593 Cost of sales (12 560) (10 949) (15) (21 337) Gross profit 2 601 4 463 (42) 6 256 Gross margin 17 29 (41) 23 Royalty expenses (34

  13. Slide 13: Profit movement; Operating costs per platinum ounce

    14/02/2013 Profit movement – YTD December 2012 4 000 3 559 3 500 3 000 2 500 (Rm) 2 000 1 500 1 862 1 000 537 742 808 255 500 318 0 521 Dec 2011 Gross profit Impairments Zim Tax FX gains FV adj metals Other Dec 2012 purchased We respect, care and deliver 25 Operating costs per platinum ounce 17 000

  14. Slide 14: Movement in net cash position; Convertible bond

    14/02/2013 Movement in net cash position 2 500 1 937 2 000 1 500 985 1 000 (Rm) 500 2 115 0 ( 500) (1 000) 310 (995) (1 164) (1 500) (366) (3 213) (2 000) Dec 2011 Jun 2012 FY2012 Operating cash Capex Other Dec 2012 Dividend flow We respect, care and deliver 27 Convertible bond  Use of proceeds – S

  15. Slide 15: Market Review; Sales volumes by metal

    14/02/2013 Market Review Derek Engelbrecht We respect, care and deliver Sales volumes by metal December December % change FY2012 2012 2011 Platinum (000oz) 733 766 (4) 1 368 Palladium (000oz) 422 431 (2) 765 Rhodium (000oz) 92 97 (5) 183 Nickel (tonnes) 7 087 6 318 12 13 916 We respect, care and del

  16. Slide 16: Average prices achieved – major metals

    14/02/2013 Average prices achieved – major metals December December % change FY2012 2012 2011 Platinum ($/oz) 1 541 1 673 (8) 1 614 Palladium ($/oz) 623 709 (12) 687 Rhodium ($/oz) 1 144 1 784 (36) 1 601 Nickel ($/t) 16 361 20 426 (20) 19 513 Basket ($/Pt oz sold) 2 399 2 650 (9) 2 601 (R/Pt oz sold

  17. Slide 17: Physical investment; Non-physical paper net longs

    14/02/2013 Physical investment Platinum ETF Palladium ETF 3 000 1 800 1 600 2 500 1 400 1 200 2 000 ( 000 oz) (000 oz) 1 000 1 500 800 600 1 000 400 500 200 0 0 Jan 10 Jan 11 Jan 12 Jan 13 Jan 10 Jan 11 Jan 12 Jan 13 Source: Mitsui We respect, care and deliver 33 Non-physical paper net longs Platinu

  18. Slide 18: Light-duty vehicle production; Platinum supply/demand balance

    14/02/2013 Light-duty vehicle production Region 2011 2012 2013 2014 (millions) (Forecast) (Forecast) North America 13,1 15,4 15,8 16,6 Western Europe 14,0 12,6 11,5 11,7 China 17,1 18,1 20,0 23,1 Rest of Asia 19,6 22,6 22,9 23,9 Rest of World 12,9 12,5 12,6 13,8 Global 76,7 81,2 82,8 89,1 We respect

  19. Slide 19: Palladium and rhodium supply/demand balance

    14/02/2013 Palladium supply/demand balance 000 oz 2011 2012 2013 2014 (Forecast) (Forecast) DEMAND Automobile 5 600 6 000 6 350 6 900 Industrial 3 160 3 110 3 125 3 190 Investment -520 300 250 100 Total Demand 8 240 9 410 9 725 10 190 SUPPLY South Africa 2 559 2 245 2 260 2 320 North America 860 930

  20. Slide 20: Risks, challenges and opportunities

    14/02/2013 Risks, challenges and opportunities Risks and challenges  Market length for platinum and palladium uncomfortably high  Future deficits will erode above ground stocks  South African labour environment challenging  Dearth of recent investment will squeeze the markets. Opportunities  De

  21. Slide 21: Conclusion

    14/02/2013 Conclusion  PGM markets – Supply will be stunted – Automotive demand robust – Will have a medium term positive effect on PGM prices  Operating environment – Changing labour dynamics – Increasing stakeholder expectations – Cost pressures (primarily power and wages)  Implats – Cash prese

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