Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — H1 FY2009 Earnings Presentation

15 slides from Impala Platinum's earnings presentation, Feb 19, 2009

  1. Slide 1: Interim Results FY2009

    Interim Results FY2009 19 February 2009 One Team One Vision With Pride Economic meltdown 40 0.00 20 -1.00 (yoy % change) (yoy % change) 0 -2.00 -20 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 -40 -3.00 -60 -4.00 PGM $ basket -80 OECD CLI -5.00 -100 -6.00 -120 -7.00 -140 -160 -8.00 PGM $ basket price O

  2. Slide 2: Key features - financial and operational

    Key features - financial  Sales revenue down 0.5% to Heps (cents) R16.2 billion (US$2.0 billion) 900  Earnings up 13% to R5.3 billion (US$0.6 billion) 600  Headline earnings of R8.77 per share 300  Interim dividend of R1.20 per share 0 H1 FY08 H1 FY09 One Team One Vision With Pride 3 Key feature

  3. Slide 3: Market Review: Sales volumes by metal

    Market Review One Team One Vision With Pride Sales volumes by metal H1 2009 H1 2008 % FY2008 change Platinum (000oz) 806 896 (10) 1,739 Palladium (000oz) 427 466 (8) 885 Rhodium (000oz) 89 106 (16) 197 Nickel (000t) 5 6 (18) 13 One Team One Vision With Pride 6 3

  4. Slide 4: Average prices achieved for major metals

    Average prices achieved for major metals % H1 2009 H1 2008 change FY2008 Platinum ($/oz) 1,369 1,352 1 1,598 Palladium ($/oz) 310 355 (13) 390 Rhodium ($/oz) 5,890 6,063 (3) 6,963 Nickel ($/t) 16,589 32,228 (49) 30,253 Dollar basket ($/oz sold) 2,408 2,622 (8) 2,941 Exchange rate (R/$ - ave) 8.31 6.

  5. Slide 5: Platinum and palladium supply and demand

    Platinum supply and demand 2009 000 oz 2007 2008 Est Demand Automotive 4,080 3,800 3,500 Jewellery 1,545 1,355 1,370 Industrial 1,830 1,850 1,765 Investment 170 125 175 Total 7,625 7,130 6,800 Supply SA 5,145 4,465 4,590 Other 2,365 2,692 2,370 Total 7,510 7,160 6,960 Surplus/Deficit (115) 30 160 On

  6. Slide 6: Rhodium supply and demand; Back to the future

    Rhodium supply and demand 2009 000 oz 2007 2008 Est Demand Automotive 844 747 682 Industrial 170 169 161 Total 1,014 916 843 Supply SA 663 582 599 Other 314 329 307 Total 977 911 906 Surplus/Deficit (37) (5) 63 One Team One Vision With Pride 11 Back to the future  So where are we …  January auto s

  7. Slide 7: Financial Review: Gross profit highlights

    Financial Review One Team One Vision With Pride Gross profit highlights R million H1 2009 H1 2008 % change FY2008 Sales 16 243 16 323 (0.5) 37 619 Cost of sales (8 817) (8 697) (1.4) (19 888) Gross profit 7 426 7 626 (2.6) 17 731 Ave. Exchange 8.31 6.91 20 7.32 rate (R/$) Closing Exchange 9.37 6.79

  8. Slide 8: Unit cost per platinum ounce; Headline earnings

    Unit cost per platinum ounce R/oz 9,000 890 8,681 1,695 8,500 8,000 1,451 Up 37% 7,500 6,986 7,000 Up 6,500 6,340 4% 6,000 5,500 5,000 H1 FY2008 Inflation Volumes & H1 FY2009 SBP H1 FY2009 Grade One Team One Vision With Pride 15 Headline earnings Rm 6,000 554 742 218 5,285 5,000 253 4,660 962 SBP Up

  9. Slide 9: Movement in cash net of debt

    Movement in cash net of debt Rm 10,000 8,883 8,000 6,000 6,118 1,702 Q2 4,000 833 2,492 4,416 Q1 2,000 3,884 7,489 0 1,245 724 -2,000 Jun 08 2008 Final Tax 2008 Share Operating Capex Other Dec 08 Dividend buy-back cash flow One Team One Vision With Pride 17 Operational Review One Team One Vision Wit

  10. Slide 10: Group safety

    Group safety Fatal injury frequency rate 0.150 (per million man hours 0.118 0.104 0.100 0.095 0.084 0.069 0.063 0.050 0.000 FY04 FY05 FY06 FY07 FY08 H1 FY09 One Team One Vision With Pride 19 Group safety Lost Time Injury Frequency Rate 6.00 4.80 (per million man hours) 4.00 3.57 3.41 3.48 2.92 2.85

  11. Slide 11: Impala and Marula

    Impala  Tonnes milled declined by 5% as less Merensky ore mined  Refined platinum production decreased by 10%  Unit cost per platinum ounce up 36%  Operating performance impacted by a lack of face availability  Capital expenditure of R2.7 billion One Team One Vision With Pride 21 Marula  Tonne

  12. Slide 12: Zimplats and Mimosa

    Zimplats  Tonnes milled unchanged  Platinum production in matte up 15%  Unit costs per platinum ounce rose by 5% in dollar terms  Opencast operation closed in November 2008  Portals 1 and 2 now fully operational  Commissioning of concentrator scheduled for April 2009  Capital expenditure of R

  13. Slide 13: Two Rivers

    Two Rivers  Plant de-bottlenecking well advanced  Full production of 120,000 ounces of refined platinum will be achieved this year One Team One Vision With Pride 25 Outlook One Team One Vision With Pride 13

  14. Slide 14: Going forward…

    Going forward…  Strategy  Meet production targets  Right-size cost structure  Cash preservation  Capex  The original 5 year capex programme reduced by a third to R20 billion  Marula Merensky and Leeuwkop deferred until further notice  Continuous review to reflect market conditions One Team O

  15. Slide 15: Conclusion

    Conclusion  The short term outlook remains highly uncertain  In the medium term the markets will recover along with demand for our metals  We are positioning ourselves to take advantage of this upturn One Team One Vision With Pride 29 Interim Results FY2009 19 February 2009 One Team One Vision Wi

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