Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Investor Presentation (May 2003)
32 slides from Impala Platinum's investor presentation, May 2003
Slide 1: IMPLATS: The platinum investment of choice
IMPLATS The platinum investment of choice Investor Presentation May 2003
Slide 2: 2003 – not without its challenges
2003 – not without its challenges o Dollar platinum market held up well – 20-year highs of over $700/oz in March 2003 o Rand one of the world’s strongest performing currencies o Minerals Act, Mining Charter and Royalty Bill o Gencor unbundling proceeding apace o Strike at Impala resolved without mas
Slide 3: Who we are
About Implats Who we are o Focussed PGM business – second largest producer in the world o 3 Moz PGMs per annum; 1.6 Moz platinum per annum o Primary listing JSE Securities Exchange o Also, LSE and US (sponsored ADR) o Significant reserves and resources in SA and Zimbabwe; active exploration programm
Slide 4: Where we are
About Implats Where we are Operations: o South Africa o Bushveld Complex – Western and Eastern limbs o Zimbabwe o The Great Dyke Exploration: o North America, South Africa, Australia, Brazil 4
Slide 5: Where we are: Bushveld Complex
Where we are About Implats Bushveld Complex 4 eS ST “i “ @ Existing operations 7. ~ : i South Africa q O Future projects id q a ag \ onl { Marula Platinum 7 __\ a Kennedy's : 4 Vale I a A q 7 wo \ : ., ivers } Crocodile River ; J Impala Everest !/ 7 North ; .7+—°" Rustenburg Everest I Marikana 4 q K
Slide 6: Where we are: Great Dyke
Where we are About Implats Great Dyke @ Existing operations [nA i oa ws hese “~S Zimbabwe N.. \ | > aN -- Bulawayo w Makwiro Mimosa @ Harare po ATS
Slide 7: What we have
About Implats What we have Platinum ounces o Reserves: 23.8Moz o Resources: 75.4Moz o Attributable ounces (JVs and strategic investments): 50.4Moz o Total resources: 149.6Moz As at 30 June 2002 7
Slide 8: What we do
About Implats What we do Implats 100% Mining Impala Refining Strategic holdings operations Services (IRS) & alliances Concentrate 100% offtake Impala agreements 27% Platinum Lonplats Marula 80%* Aquarius 32% Platinum Platinum Zimplats 55% 83% (Makwiro) Barplats 50% ZCE Platinum (Mimosa) *20% allocat
Slide 9: Where our operating income comes from – half year to Dec 2002
Where our operating income comes from – half year to Dec 2002 Implats $363m Mining Impala Refining Strategic holdings operations Services (IRS) & alliances* % of income 75% 5% 20% $269m $21m $73m * Includes share of pre-taxation income from associates 9
Slide 10: How we have performed – earnings
How we have performed – earnings US cents/share 1000 900 800 700 600 500 400 300 200 100 0 FY97 FY98 FY99 FY00 FY01 FY02 FY03* * Interim 6 months 10
Slide 11: How we have performed – share price
How we have performed – share price Implats has outperformed global mining index by 5.67% since July 01 170 150 130 110 90 70 50 Jun-01 Oct-01 Feb-02 Jun-02 Oct-02 Feb-03 HS BC global mining index Implats Anglo P latinum Lonmin Source: Reuters 11
Slide 12: Our shareholders
About Implats Our shareholders 5% 3% Gencor 5% 4% 10% South Africa 18% USA 46% 14% Eng & Wales 57% Other countries 16% Unknown/Below 22% threshold Implats only Implats post Gencor unbundling Source: Cazenove 12
Slide 13: Supply and demand (000 oz)
The market Supply and demand (000 oz) Calendar years 2001 2002 2003 (forecast) Platinum Total demand 6,365 7,085 6,615 Total supply 6,250 6,560 6,680 Net supply deficit (115) (525) 65 Palladium Total demand 8,050 6,815 6,610 Total supply 8,920 7,280 6,610 Net supply surplus 870 465 0 13
Slide 14: Fundamentals remain sound
The market Fundamentals remain sound o Platinum o Good fundamental demand supports positive outlook World-wide auto sales at satisfactory levels European diesel sales growing Ever stricter emission legislation worldwide Strong Chinese jewellery demand although high metal prices and SARS could have a
Slide 15: Platinum, palladium prices in Dollars
The market Platinum, palladium prices in Dollars $/oz 1200 1000 800 600 400 200 0 J ul-9 J ul-9 J ul-9 J ul-9 J ul-0 J ul-0 J ul-0 6 7 8 9 0 1 2 Pt Pd 15
Slide 16: Platinum, palladium prices in Rands
The market Platinum, palladium prices in Rands R/oz 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 J ul-9 J ul-9 J ul-9 J ul-9 J ul-0 J ul-0 J ul-0 6 7 8 9 0 1 2 Pt Pd 16
Slide 17: Impala Platinum performance
Operational Impala Platinum performance Fast Fastfacts: facts: 13 -shaft system 13-shaft systememploying employing27,000 27,000people people Annual Annualproduction productionof of1Moz 1Mozpa pa ++30 -year life 30-year -of-mine life-of-mine o $500 million mining capex programme aimed at maintaining
Slide 18: Marula Platinum performance
Operational Marula Platinum performance Fast Fastfacts: facts: New Newproject projectunder underdevelopment development Annual Annualproduction productionof of103,000 103,000Pt Ptoz ozannum annum––expandable expandabletoto200,000 200,000Pt Ptoz ozpa pa Capex Capexofof$175,000 $175,000 30 -year life
Slide 19: Marula Platinum
Operational performance Marula Platinum 19
Slide 20: Lonplats performance
Operational Lonplats performance Fast Fastfacts: facts: 27% 27%stake stakeininLonplats Lonplats Annual Annualproduction productionof of750,000oz 750,000oz platinum platinumininFY02 FY02 Attributable Attributableearnings earningsofof$71m $71mininFY02 FY02 o Strong cash generator 20
Slide 21: Aquarius performance
Operational Aquarius performance Fast Fastfacts: facts: 32% 32%effective effectivestake stake Annual Annualproduction productionof of122,000oz 122,000ozplatinum platinumininFY02 FY02 o Kroondal at full production o Marikana in ramp-up o Bankable feasibility underway at Everest South 21
Slide 22: Two Rivers performance
Operational Two Rivers performance Fast Fastfacts: facts: 45% 45%stake stake Potential Potentialproduction productionof of98,000 98,000platinum platinumoz ozpa pa o Feasibility study underway o BEE deal with Tiso Capital in Jan 2003 22
Slide 23: Zimplats (Makwiro) performance
Operational Zimplats (Makwiro) performance Fast Fastfacts: facts: 55% 55%effective effectivestake stake Production Productionof of90,000 90,000platinum platinumoz ozpa pa o Project ramping up o Life-of-mine offtake agreement with IRS o Potential expansion of 400,000 platinum oz pa – investigation un
Slide 24: ZCE (Mimosa) performance
Operational ZCE (Mimosa) performance Fast Fastfacts: facts: 50% 50%stake stake Production Productionof of65,000 65,000platinum platinumoz ozper perannum annum o Ramp-up on schedule o Life-of-mine offtake agreement with IRS 24
Slide 25: Production growth remains on track
Production growth remains on track Pt oz 2200 2000 CAGR = 9.7% 1800 1600 1400 1200 1000 FY02 FY03 FY04 F05 FY06 Mine to market 3rd Party Toll 25
Slide 26: Minerals legislation
Current issues Minerals legislation o Mineral Resources and Petroleum Development Act and Mining Empowerment Charter promulgated o Scorecard requires: o Ownership (15%) • RBN – 1.5% equity in Implats • Marula Platinum – 20% o Employment equity • Two Rivers – 26% o Training o Social investment o Affi
Slide 27: Proposed royalty legislation
Current issues Proposed royalty legislation o Royalty Bill an issue for all resource companies o Issues for Implats: o Double royalty payment o Revenue and not profit-based o Beneficiation not encouraged Threatens black economic empowerment and future project o Submission has been made to National T
Slide 28: Implats post Gencor
Current issues Implats post Gencor o Unbundling process underway o Previously Gencor constrained liquidity o Anticipated ratio 8.78 Implats:100 Gencor shares o First date to trade – 10 June 2003 o Dynamic and larger free float o MSCI Emerging Markets Index o Increase opportunity in the US – Level 1
Slide 29: Strong generator of cash
Outlook Strong generator of cash o High margins – average of 47% across the business for interim FY2003 o Good, consistent returns FY03 (in US$) FY02 Interims Return on equity 44% 55% Return on assets 34% 51% 29
Slide 30: Ongoing shareholder returns
Outlook Ongoing shareholder returns o High dividend yield – 6.5% in FY2002 and half-year FY2003 o Dividend policy remains unchanged – cover of 1.9 times US cents/share 600 Dividend 500 per share calculated 400 at annual average R/$ 300 200 100 0 FY97 FY98 FY99 FY00 FY01 FY02 FY03* * Interim 6 months
Slide 31: Outlook
Outlook Outlook o Strong production growth – 10% pa o Market fundamentals for platinum positive o Strong cash generation with high dividend yield 31
Slide 32: IMPLATS: The platinum investment of choice
IMPLATS The platinum investment of choice Investor Presentation May 2003
Impala Platinum Holdings — Investor Presentation (May 2003) on 6ix