Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — H1 FY2003 Earnings Presentation

24 slides from Impala Platinum's earnings presentation, 2003

  1. Slide 1: Today's presentation

    1 Today’s presentation Implats ƒ Overview of results ƒ Market review ƒ Financial analysis ƒ Review of operations and expansion projects ƒ Corporate issues ƒ Prospects Barplats ƒ Review of operations 2 1

  2. Slide 2: Overview of results: Key features

    OVERVIEW OF RESULTS ƒ Good operational performance ƒ Dollar basket price steady ƒ Production growth on track ƒ Strengthening rand has negative impact on results 3 Key features ƒ Revenue up 21% to R6 411 million ƒ Unit cost increases held at 9.6% for Impala Lease Area ƒ Operating income up 18% to R3

  3. Slide 3: Share price performance and key ratios

    Share price performance Outperformed JSE Mining Index by 10% 750 700 650 600 550 500 450 Outperformed JSE ALSI40 by 11% 400 Dec-01 Feb-02 Apr-02 May-02 Jul-02 Sep-02 Oct-02 Dec-02 Implats ALSI Mining Index Source: Reuters 5 Key ratios (%) FY03 FY02 (interims) Return on equity 43 68 Return on assets

  4. Slide 4: Implats refined production and platinum sales

    Implats refined production FY03 FY02 Variance (interims) (interims) % Platinum (000oz) 773 680 14 Palladium 434 349 24 Rhodium 105 91 15 Nickel (tonnes) 7 090 6 573 8 PGMs (000oz) 1 486 1 292 15 7 Platinum sales (‘000oz) FY03 FY02 Variance (interims) (interims) % Mine to market 600 528 14 Metals pur

  5. Slide 5: The market: average metal prices achieved

    THE MARKET Resilient platinum overshadows weaker palladium and rhodium markets 9 Average metal prices achieved FY03 FY02 Variance (interims) (interims) % Platinum ($/oz) 553 471 17 Palladium 312 399 (22) Rhodium 757 1 268 (40) Nickel ($/tonne) 7 057 5 122 38 Revenue per Pt oz sold ($/oz) 927 936 (1)

  6. Slide 6: Platinum price and supply and demand

    Platinum price ($/oz) ƒ Auto sales robust ƒ Growth in diesel vehicle sales continues in Europe ƒ Chinese jewellery demand still robust, but high prices could have an impact 700 600 500 400 300 200 100 0 01 02 01 02 03 1 2 1 01 2 02 1 2 -0 -0 l-0 l-0 -0 -0 v- v- n- n- n- p- p- ar ar ay ay Ju Ju No No

  7. Slide 7: Palladium price and supply and demand

    Palladium price ($/oz) ƒ Consumer de-stocking and substitution, coupled with plentiful supply impacts price ƒ Price differential to platinum will attract additional auto usage 1200 1000 800 600 400 200 0 01 02 01 02 03 1 2 1 2 01 02 1 2 -0 -0 l-0 l-0 -0 -0 v- v- n- n- n- p- p- ar ar ay ay Ju Ju No N

  8. Slide 8: Rhodium price and outlook

    Rhodium price ($/oz) ƒ Producer selling keeps metal under pressure ƒ Demand stable – supply growth = price weakness 2500 2000 1500 1000 500 0 01 02 01 02 03 1 2 1 01 2 02 1 2 -0 -0 l-0 l-0 -0 -0 v- v- n- n- n- p- p- ar ar ay ay Ju Ju No No Ja Ja Ja Se Se M M M M 15 Outlook Platinum ƒ Outlook for pla

  9. Slide 9: Financial review: Income statement

    FINANCIAL REVIEW Solid performance 17 Income statement R million FY03 FY02 Variance (interims) (interims) % Turnover 6 411 5 301 21 Cost of sales 3 376 2 719 (24) Operating income 3 035 2 581 18 Other income/expenses (236) 231 (202) Income from associates 636 606 5 Royalties (394) (338) (17) Income

  10. Slide 10: Sales revenue variance analysis and exchange rate

    Sales revenue variance analysis R million Half-year December 2001 5 301 Volumes 742 Price (165) Exchange rate 533 Half-year December 2002 6 411 19 Exchange rate R/$ R/$ 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 0 Dec 01 Jun 02 Dec 02 Interims 02 Interims 03 Exchange rate at Average exchange balance sheet

  11. Slide 11: Group cost of sales and cash in hand

    Implats group – cost of sales (Rm) FY03 FY02 Variance (interims) (interims) % On-mine operations 1 592 1 251 (27.3) Processing 377 297 (26.6) Refining 202 172 (17.6) Amortisation 176 139 (26.3) Other costs 141 78 (80.7) Metals purchased 844 1 015 16.9 Change in stock 45 (233) (119.2) Total 3 376 2 7

  12. Slide 12: Capex; Review of operations and projects

    Capex R (m) R1 853m 2000 1800 1600 1400 R1 250m 1200 H2* 1000 H2 800 600 400 H1 H1 200 0 FY02 FY03 * forecast 23 REVIEW OF OPERATIONS AND PROJECTS Platinum production rises by 14%, exceeding growth objectives despite disappointing performance from Barplats 24 12

  13. Slide 13: Platinum production: Impala Lease Area

    Platinum production (000oz) FY03 FY02 Variance (interims) (interims) % Platinum – Impala Lease Area 545 507 7 Impala Refining Services 228 173 32 Barplats 16 21 Zimplats/Makwiro 35 1 Mimosa 8 8 Aquarius 66 55 Other 17 5 Toll refining (metal returned) 86 83 Total platinum 773 680 14 25 IMPALA LEASE A

  14. Slide 14: Safety and all injury rate

    Safety FY03 FY02 Variance (interims) (interims) (%) Fatal accidents 3 4 25 LTIFR 6.4 10.7 40 27 All injury rate Per million man hours 60 55 50 45 40 35 30 25 20 15 10 0 1 2 99 00 01 02 9 0 1 2 -0 -0 -0 l-9 l-0 l-0 l-0 v- v- v- v- ar ar ar Ju Ju Ju Ju No No No No M M M 28 14

  15. Slide 15: Success of FOG campaign; mining and processing

    Success of FOG campaign Before GCDs After GCDs 250 192 191 190 200 Num ber 150 100 50 9 17 19 15 9 5 5 0 2 01 02 2 2 1 02 2 01 02 l- 0 -0 -0 t- 0 t- 0 p- p- n- g- g- v c Ju Oc Oc Se Se No De Ju Au Au 29 Key features – mining and processing ƒ Tonnes mined up by 9.6% ¾ 20 additional teams deployed und

  16. Slide 16: Efficiencies; key features refining

    Efficiencies FY03 FY02 Variance (interims) (interims) % Centares per panel employee 42.5 42.3 0.4 Centares per stoping team 443 412 7 31 Key features - refining ƒ Excellent safety performance – zero lost time injuries ƒ Unit costs increased by 4% - a real decrease of 8% ƒ Refinery expansion to 1.65M

  17. Slide 17: Technology update: processing

    Technology update: processing Dryer ƒ Capital cost of R100 million ƒ Increased drying capacity to 2.5Moz Pt per annum 33 Technology update: processing Sulfacid plant ƒ Capital cost of R65 million ƒ 60% reduction in SO2 emissions 34 17

  18. Slide 18: Marula Platinum

    MARULA PLATINUM Excellent progress at Marula Platinum as construction proceeds on time and within budget 35 Marula Platinum Plant Mine Plant Mine construction commissioning stoping Full Steady development begins begins begins throughput state starts August September September October March August 20

  19. Slide 19: Barplats

    BARPLATS Disappointing operational performance exacerbated by strength of rand 37 Barplats ƒ Tonnes milled down 32% ƒ Platinum in concentrate down 25% to 16 290 ounces ƒ Cash costs up 24% ƒ Attributable loss of R17 million ƒ Minimal impact on Implats 38 19

  20. Slide 20: Strategic interests and alliances

    STRATEGIC INTERESTS AND ALLIANCES Important contributor to earnings with attributable contribution to Implats of R443 million after tax 39 Implats - contribution by company (Rm) FY03 FY02 Variance (interims) (interims) (%) Zimplats/Makwiro 30 - Mimosa 11 - Aquarius 34 - Lonplats 368 383 (4.0) Attrib

  21. Slide 21: Strategic interests and alliances

    Strategic interests and alliances Lonplats ƒ Attributable annualised production of 225 000 Pt ounces ƒ Contract with IRS for processing of concentrates Aquarius ƒ Commissioning of Marikana ahead of schedule ƒ Everest South feasibility nearing completion Two Rivers ƒ Potential production of 98 000 Pt

  22. Slide 22: Corporate issues

    Corporate issues ƒ Gencor ƒ ADR programme ƒ HIV/AIDS – delivery of ART through Impala Medical Plan 43 Implats’ empowerment scorecard Equity Employment Training Social Affirmative ownership equity investment procurement • 19% units • 34% • R80 m pa • R70 to • Spend on of designated in R100m over HDSA

  23. Slide 23: Prospects

    Prospects Growth strategy remains on track – 000oz 2Moz by 2006 2500 2000 1500 1000 500 0 FY02 FY03 FY04 F05 FY06 Mine to market 3rd Party Toll 45 Prospects ƒ Platinum market to remain firm, underpinned by sound fundamental demand ƒ Given current rand strength, earnings will be significantly down on

  24. Slide 24: Implats: Continued delivery

    Buran ‘a IMPLATS CONTINUED DELIVERY 24

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