Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Impala Platinum Hldgs — FY2024 Earnings Presentation
46 slides from Impala Platinum's earnings presentation, Aug 29, 2024
Slide 1: Annual Results FY2024
ANNUAL RESULTS FY2024 29 August 2024
Slide 2: Forward-Looking and Cautionary Statement
FORWARD-LOOKING AND CAUTIONARY STATEMENT Certain statements contained in this presentation, other than the statements of historical fact, contain forward-looking statements regarding Implats’ operations, economic performance or financial condition, including, without limitation, those concerning the
Slide 3: Agenda
AGENDA 01 CEO 02 COO 03 CFO 04 Market 05 Business overview review review review outlook Nico Muller Patrick Morutlwa Meroonisha Kerber Sifiso Sibiya Nico Muller IMPLATS 3 ANNUAL RESULTS FY2024
Slide 4: CEO Overview
01 CEO OVERVIEW Nico Muller IMPLATS ANNUAL RESULTS FY2024
Slide 5: Safety Overview
SAFETY OVERVIEW FATALITIES AND LOST-TIME INJURY FREQUENCY RATE* • 11 Shaft tragedy dominated reported safety metrics 20 19 5.5 • Despite this setback, both LTIFR and TIFR improved LTIFR* 18 5 • Various initiatives implemented to reverse deterioration in fatal injuries 4.92 16 4.54 4.5 14 4.21 Descri
Slide 6: Environmental Performance
ENVIRONMENTAL PERFORMANCE CARBON RENEWABLE WATER ENVIRONMENTAL NEUTRALITY ENERGY SECURITY IMPACT 30% reduction in 35MW Phase 1 of 185MW 70% reuse/recycle target No environmental incidents greenhouse gas emissions solar project by 2030 target by 20301 completed at Zimplats Achieved BBB rating 56% ach
Slide 7: Social Performance
SOCIAL PERFORMANCE Agreed landmark B-BBEE transaction at Western Limb assets, broadening economic participation Creating sustainable livelihoods in mine communities during and beyond mining EDUCATION & SKILLS COMMUNITY WELLBEING ESD & INCLUSIVE PROCUREMENT INFRASTRUCTURE DEVELOPMENT +25 900 people s
Slide 8: Operational Performance
OPERATIONAL PERFORMANCE Maiden annual consolidation of Impala Bafokeng underpinned volume growth +13% +14% +5% -22% 6E GROUP PRODUCTION 6E REFINED PRODUCTION UNIT COSTS PER 6E OUNCE CAPITAL EXPENDITURE 3.65Moz 6E 3.38Moz 6E R20 922/oz R14.0bn 6E refined (stock-adjusted) SIB R8.1bn -10% Inflation +R1
Slide 9: Financial Performance
FINANCIAL PERFORMANCE Impacted by weaker US$ PGM prices +16% -30% -19% REFINED 6E SOLD RAND REVENUE PER 6E SOLD GROSS REVENUE 3.44Moz 6E R25 257 / oz R86.4bn Platinum US$934/oz US$ metal prices -R40.0bn -38% Platinum 1 579koz +12% Palladium US$1 083/oz Fair value +R0.4bn 0% Palladium 1 193koz +14% R
Slide 10: COO Review
02 COO REVIEW Patrick Morutlwa IMPLATS ANNUAL RESULTS FY2024
Slide 11: Mineral Resources and Mineral Reserves
MINERAL RESOURCES AND MINERAL RESERVES Attributable Group Mineral Resources 21% ATTRIBUTABLE MINERAL RESERVES BY ASSET MINERAL RESOURCES increased by 53.8 million 6E ounces to Pt Pd Rh Ru, IR, Au 316.5 million ounces 2% 2% 2% 25 000 5% 7% 2 500 31% 20 000 7% Reserves, koz 6E 2 000 Attributable Group
Slide 12: Group Operational Overview
GROUP OPERATIONAL OVERVIEW REFINED PRODUCTION GROUP PRODUCTION Description FY2024 FY2023 Var (%) 3 271 3 378 3 087 2 813 2 959 Tonnes Milled# kt 27 887 23 883 17% 6E production 6E koz 3 654 3 246 13% koz koz Managed operations 6E koz 2 916 2 418 21% Impala 6E koz 1 284 1 232 4% Zimplats 6E koz 646 6
Slide 13: Movement in 6E Production
IMPLATS FY 2023 ANNUAL RESULTS FY2024 Conclusion of two contracts in FY2023 191 -34% Termination of two contracts Safety stoppages and 4% lower stoping volumes -7% 223 constrained mining flexibility 3% lower grade / recovery Revised Mining volumes up 6% operating parameters -4% 281 Lower grade / rec
Slide 14: Projects Update
PROJECTS UPDATE ZIMPLATS GROWTH SMELTING REFINING TWO RIVERS GROWTH Expanded Mupani and New furnace and Increased base metal New Merensky Bimha mine SO2 abatement plant capacity at Impala Refineries mine and plant and Zimplats +80koz 6E from FY2024 +600koz 6E capacity from FY2025 Adverse impact of c
Slide 15: CFO Review
03 CFO REVIEW Meroonisha Kerber IMPLATS ANNUAL RESULTS FY2024
Slide 16: Income Statement
INCOME STATEMENT VARIANCE • Revenue was 19% lower at R86.4bn R MILLION FY2024 FY2023 (%) • 38% decrease due to lower dollar metal prices -R40.0bn Revenue 86 398 106 594 -19% • Fair value movements +R0.4bn Cost of sales (80 931) (84 256) 4% • 4% gain on weaker rand exchange +R4.3bn Cash costs (58 550
Slide 17: Stock-Adjusted Unit Costs
STOCK-ADJUSTED UNIT COSTS 881 20 922 • Increased 5% to R20 922/oz 6E 1 075 • Implats mining inflation of 5.6% • SA operations +6.5% 487 • Zimplats US$ +4.1% 161 20 041 • Impala Canada C$ +1.1% 19 834 44 266 19 674 482 19 464 • Impact of weaker rand on translation of foreign R / 6E oz subsidiaries’ c
Slide 18: Cash Flow and Liquidity
1 8 CASH FLOW AND LIQUIDITY • Net cash inflow from operating activities of R6.9bn ADJUSTED NET CASH FY2024 • Includes transaction related costs of R0.9bn of Impala Bafokeng 1.3 • Impala Bafokeng received the RPM payment of R1.0bn in July 2024 6.9 • Tax payments of R1.2bn for the year 0.4 0.3 • Cash
Slide 19: Capital Allocation
CAPITAL ALLOCATION CASH FROM OPERATIONS OF R8.7bn BALANCE SHEET STRENGTH • Funding the cash component of RBPlat offer OTHER NET INFLOW** R1.3bn inflow (R11.4bn) (R16.4bn) • Once-off RBPlat acquisition costs (R0.9bn) • Funding of operational and capital requirements INTEREST PAID R0.5bn outflow TAXES
Slide 20: Market Review
04 MARKET REVIEW Sifiso Sibiya IMPLATS ANNUAL RESULTS FY2024
Slide 21: PGM Market Performance
PGM MARKET PERFORMANCE Lower US$ metal prices partially offset by a weaker R/US$ exchange rate PLATINUM PRICE PALLADIUM PRICE 2 500 Achieved metal prices FY2024 FY2023 Var (%) 1 400 1 200 2 000 Platinum (US$/oz) 934 962 -3% US$/oz 1 000 US$/oz 1 500 800 1 000 Palladium (US$/oz) 1 083 1 763 -39% 600
Slide 22: Supply and Demand Balances
SUPPLY AND DEMAND BALANCES SUPPLY/DEMAND BALANCES* 2024 PLATINUM MARKET to remain in deficit - Demand expected to increase by 5% 0 • Automotive to ease as LV production growth is skewed to BEVs • Jewellery demand stabilising – underpinned by India and the West • Industrial supported by chemical and
Slide 23: PGM Market Forces
PGM MARKET FORCES SHORT TERM MEDIUM TERM LONG TERM SOUTH AFRICAN SUPPLY OUTLOOK, HYDROGEN, GLOBAL ECONOMY, CHINESE PURCHASING & GLOBAL ECONOMY, SWITCHING, ABOVE-GROUND STOCKS, PLATINUM CONSUMPTION, SWITCHING, SOUTH AFRICAN ASIAN JEWELLERY, HYDROGEN ELECTRIFICATION OF HEAVY-DUTY, CHANGES IN INDUSTRIA
Slide 24: Business Outlook
05 BUSINESS OUTLOOK Nico Muller IMPLATS ANNUAL RESULTS FY2024
Slide 25: Operating Context
OPERATING CONTEXT GLOBAL ECONOMY AND PGM MARKETS OUTCOMES ▪ Delayed interest rate moderation ▪ Key priority that all operations are resilient and contribute sustainably and profitably through the cycle ▪ Impacting global growth and investment sentiment ▪ Labour restructuring across Group operations
Slide 26: Group Outlook
GROUP OUTLOOK Actual GUIDANCE Business area Unit FY2024 FY2025 REFINED PRODUCTION1: 6E koz 3 378 3 450 – 3 650 GROUP PRODUCTION: 6E koz 3 654 3 500 – 3 700 Impala 6E koz 1 284 1 250 – 1 300 Zimplats 6E koz 646 630 – 660 Impala Bafokeng 6E koz 483 490 – 530 Two Rivers 6E koz 291 270 – 300 Impala Cana
Slide 27: Supplementary Slides
SUPPLEMENTARY SLIDES 29 August 2024
Slide 28: Performance Against Strategic Objectives
PERFORMANCE AGAINST STRATEGIC OBJECTIVES SUSTAINABLE OPERATIONAL ORGANISATIONAL OPTIMAL CAPITAL COMPETITIVE ASSET FUTURE VALUE DEVELOPMENT EXCELLENCE EFFECTIVENESS STRUCTURE PORTFOLIO FOCUSED We aspire to deliver an We generate superior value We place people at the We pursue value creation We seek t
Slide 29: Projects Update
PROJECTS UPDATE APPROVED PROJECT BUSINESS UNIT PURPOSE COMMENT BUDGET • Project execution is ongoing, targeted work packages deferred to preserve cash Marula R2.8bn Phase 2: LoM extension resulting in slower rate of execution Mupani: Replace Ngwarati, Rukodzi & Zimplats US$386m • Expected to be comp
Slide 30: Impala
30 IMPALA PRODUCTION* Description FY2024 FY2023 Var (%) Remarks 1 312 1 284 1 232 1 198 koz • Strong mining momentum at 12, 14, 16 & 20 offset safety 1 115 Tonnes milled kt 10 204 10 248 0% stoppages at 6, 10 & 11 shafts • Interventions focused on grade control, improved mining 6E head grade g/t 3.9
Slide 31: Impala Rustenburg 6E Ounces Stock-Adjusted vs FY2023
6E OUNCES STOCK-ADJUSTED VS FY2023 1350 2 1 8 1300 11 2 4 depleting reserves Steady production despite Maintained production despite challenging ground conditions 6 20 Delivery from trackless project 15 Safety stoppages Higher throughput & grade Reduction in dump, slag & sludge material Safety stopp
Slide 32: IRS
IRS MINE-TO-MARKET RECEIPTS 1 412 1 415 Description FY2024 FY2023 Var (%) Remarks 1 379 1 370 koz 1 214 • Higher managed and JVs offset by lower 3 rd party receipts Receipts 6Ekoz 1 606 1 658 -3% Mine-to-market 6Ekoz 1 415 1 370 3% • Higher Zimplats and Mimosa offset lower Marula and TRP THIRD PARTY
Slide 33: Zimplats
33 ZIMPLATS PRODUCTION* 646 Description FY2024 FY2023 Var (%) Remarks 611 koz 580 579 583 Tonnes milled kt 7 912 7 500 5% • Third concentrator plant in operation for full period 6E head grade g/t 3.32 3.33 0% COST** 836 829 724 613 661 6E in matte koz 646 611 6% US$/oz Cash cost US$m 532 503 -6% • I
Slide 34: Impala Bafokeng
IMPALA BAFOKENG PRODUCTION* 12 months 534 Description FY2024 to Jun-23# Var (%) Remarks 502 483 koz • Safety stoppages, constrained mining flexibility at Styldrift Tonnes milled kt 4 243 4 656 -9% • Sporadic illegal industrial action at BRPM 6E head grade g/t 4.36 4.24 3% • Improved stoping width co
Slide 35: Impala Bafokeng: BRPM
IMPALA BAFOKENG: BRPM PRODUCTION* 12 months 303 Description FY2024 to Jun-23# Var (%) Remarks koz 293 294 Tonnes milled kt 2 416 2 652 -9% • Sporadic, illegal industrial action 6E head grade g/t 4.57 4.39 4% • Improved stoping width control COST** 16 401 16 481 • R/oz Higher concentrator recoveries
Slide 36: Impala Bafokeng: Styldrift
IMPALA BAFOKENG: STYLDRIFT PRODUCTION* 12 months 242 Description FY2024 to Jun-23# Var (%) Remarks 199 188 koz • Safety stoppages, constrained mining flexibility & low Tonnes milled kt 1 827 2 004 -9% machine availability 6E head grade g/t 3.94 3.92 0% COST** 25 643 25 709 18 261 R/oz 6E in concentr
Slide 37: Marula
MARULA PRODUCTION* 259 241 231 223 210 Description FY2024 FY2023 Var (%) Remarks koz • Lengthy safety stoppages, constrained mining flexibility due Tonnes milled kt 1 851 1 935 -4% to geological features and industrial action 6E head grade g/t 4.28 4.39 -3% • Higher proportion of development to stop
Slide 38: Impala Canada
IMPALA CANADA PRODUCTION* Description FY2024 FY2023 Var (%) Remarks 232 260 249 291 281 koz Tonnes milled Kt 3 676 3 798 -3% • Production focused on high-grade underground mining blocks • Mined volumes supplemented with lower-grade surface 3E head grade g/t 2.90 2.93 -1% stockpile COST** 1 272 1 195
Slide 39: Two Rivers
TWO RIVERS PRODUCTION* 300 302 Description FY2024 FY2023 Var (%) Remarks 295 291 koz 261 Tonnes milled kt 3 568 3 558 0% • Lower UG2 volumes supplemented with Merensky ore 6E head grade g/t 3.12 3.09 1% • Improved UG2 head grade offset by Merensky ore milled COST** 16 513 13 974 6E in concentrate ko
Slide 40: Mimosa
MIMOSA PRODUCTION* 261 Description FY2024 FY2023 Var (%) Remarks 255 248 koz 246 245 • Plant stress tested to evaluate optimal balance of milled Tonnes milled kt 2 894 2 735 6% throughput to recoveries 6E head grade g/t 3.61 3.77 -4% • Dilution due to poor ground conditions COST** 1 030 1 039 • High
Slide 41: Environmental Performance
ENVIRONMENTAL PERFORMANCE ESG INDICATORS FY2024 FY2023 Var (%) Remarks Sites with certified Environmental • 5 out of 6 sites maintained ISO14001:2015 certification. Management Systems Count 5 4 - • Maiden inclusion of Impala Bafokeng site in FY2024 • >10 years without a major or severe impact incide
Slide 42: Group Profitability by Operation
PROFITABILITY GROUP PROFITABILITY BY OPERATION 35 000 30 000 2% -9% -5% R/6Eoz 25 000 -26% -7% -11% 5% -53% 20 000 15 000 10 000 5 000 0 Canada conc Impala refined Marula conc Mimosa conc Impala Bafokeng conc Zimplats matte Two Rivers conc Group Refined Cash cost Royalties Stay-in-business capital R
Slide 43: Excess Stock
EXCESS STOCK FORECAST EXCESS WORK IN PROGRESS 450 Excess stock of c.390koz at the end of June 2024 400 390 • Furnace No 5 rebuild • Higher Impala Rustenburg receipts 350 330 • Limited load curtailment (12koz) 300 260 245 koz 250 Excess stock of 390koz released equally over the 200 next 3 years 150 •
Slide 44: Capital Expenditure
CAPITAL EXPENDITURE GROUP CAPITAL EXPENDITURE1,2 16 000 14 000 12 000 10 000 Rm 8 000 6 000 4 000 2 000 0 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 SIB Replacement Growth FY2024 Guidance IMPLATS 1. Group managed operations 2. Nominal Rm 44 ANNUAL RESULTS FY2024
Slide 45: PGM Revenue Baskets FY2024
PGM REVENUE BASKETS FY2024 REVENUE CONTRIBUTION BY METAL 11% 14% 16% 16% -8% 30% 0% -5% 35% 4% 1% TWO -5% IMPALA 42% 37% 4% IMPALA MARULA RIVERS 7% BAFOKENG Revenue of Revenue of Revenue of Revenue of 21% R30.9bn 30% R4.3bn R5.9bn R9.7bn 29% 20% 35% 24% 22% 20% -3% -15% 5% 15% 17% 16% 33% 32% -2% 0%
Slide 46: Annual Results FY2024
ANNUAL RESULTS FY2024 29 August 2024