Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — FY2010 Earnings Presentation
22 slides from Impala Platinum's earnings presentation, Aug 26, 2010
Slide 1: Annual results for the year ended 30 June 2010
8/26/2010 Annual results for the year ended 30 June 2010 1 Agenda 2 » Overview David a d Brown o » Market review Derek Engelbrecht » Performance review David Brown » Financial a c a review e e Dawn Earp » Conclusion David Brown 1
Slide 2: Key features - operational and financial
8/26/2010 Key features - operational 3 » Safety performance unsatisfactory Production 1800 » Gross refined platinum production rose by 2% to 1600 1.74 million ounces 000 oz 1400 » Group unit costs excluding share based compensation up 1200 11% to R10 089 1000 » Group capital expenditure FY09 FY10 de
Slide 3: Market review
8/26/2010 Market review Derek Engelbrecht 5 Overview 6 » Sales volumes and prices achieved » 2009 – In review » 2010 – Back on track » Prospects for the year ahead 3
Slide 4: Sales volumes by metal and average prices achieved
8/26/2010 Sales volumes by metal FY2010 FY2009 % change Platinum (000oz) 1 435 1 503 (5) Palladium (000oz) 945 781 21 Rhodium (000oz) 228 180 27 Nickel (000t) 13 14 (7) Average prices achieved – major metals FY2010 FY2009 % change Platinum ($/ ($/oz)) 1 433 1 219 18 Palladium ($/oz) 376 263 43 Rhodi
Slide 5: 2009 in review
8/26/2010 2009 in review 9 Vehicle sales 000 units 2009 2008 % Change North America 12 616 15 880 (20.6) Western Europe 14 966 15 379 (2.7) Asia 22 913 18 688 22.6 Rest of World 13 376 16 051 (16.7) Total sales 63 871 65 998 (3.2) Total production 59 400 67 300 (11.7) 2009 in review 10 SGE volumes 3
Slide 6: 2009 in review: Nymex/TOCOM
8/26/2010 2009 in review 11 Nymex/TOCOM Nymex/TOCOM - Platinum 2 000 1 600 1 200 000 oz 800 400 - NYMEX TOCOM 2009 in review 12 Nymex/TOCOM Nymex/TOCOM - Palladium 1 800 1 600 1 400 1 200 1 000 000 oz 800 600 400 200 - NYMEX TOCOM 6
Slide 7: 2009 in review: Platinum and palladium ETFs
8/26/2010 2009 in review 13 Platinum ETFs 800 700 600 500 400 000 oz 300 200 100 - Jan-09 Apr-09 Jul-09 Oct-09 Dec -09 ETFs ZKB 2009 in review 14 Palladium ETFs 1 350 1 200 1 050 900 000 oz 750 600 450 300 150 - Jan-09 Apr-09 Jul-09 Oct-09 Dec -09 ZKB ETFs 7
Slide 8: 2010 – Back on track
8/26/2010 2010 – Back on track 15 Auto production – major markets H1 2010 H1 2009 % Change North America 5 758 3 546 66.6 Western Europe 6 785 5 631 20.5 Asia 17 479 12 318 41.9 Rest of World 6 049 5 023 20.4 Total production 36 071 26 429 36.5 Total sales 35 204 30 518 15.4 Platinum 000 oz 2010 Est
Slide 9: Palladium and rhodium supply and demand
8/26/2010 Palladium 000 oz 2010 Est 2009 2008 Demand Automotive 4 710 4 170 4 940 Other 3 740 3 365 3 620 Total 8 450 7 535 8 560 Supply SA 2 525 2 470 2 355 Recycle 1 420 990 1 085 R Russia i 3 135 3 765 3 750 Other 1 065 980 1 180 Total 8 145 8 205 8 370 Supply/Demand Balance (305) 670 (190) Rhodi
Slide 10: Prospects
8/26/2010 Prospects 19 » Economic growth will continue but at a measured pace » Jewellery growth will remain steady » Supply challenges and under-investment will haunt the market » Platinum market will continue in deficit » Palladium market moves into deficit » Investor outflows will signal return t
Slide 11: Group safety
8/26/2010 Group safety 21 Fatal injury frequency rate Lost time injury frequency rate 0.15 4.61 0.12 0.12 4.00 3.41 3.48 0.10 0.10 (per million man hours) (per million man hours) 0.08 2.92 2.92 0.06 2.00 0.05 0.00 0.00 Bradley Curve FY2010 DuPont’s assessment of Impala 1 2 3 4 5 Reactive Dependent I
Slide 12: Safety way forward and production
8/26/2010 Safety 23 » The way forward - Our vision remains zero harm - Our initial goal remains zero lost-time injuries in every area - Safety training - Visible safety behaviour Production 24 2 000 Contribution by entity 1 741 231 1 800 1 600 188 1 400 135 94 1 200 154 000 oz 1 000 871 68 800 600 4
Slide 13: Future production growth and group unit cost
8/26/2010 Future production growth 25 2 000 1 500 000 oz 1 000 500 - FY10 FY11 FY12 FY13 FY14 FY15 Impala Marula Zimplats Mimosa Two Rivers IRS Group unit cost per platinum ounce 26 10 500 90 10 089 496 10 0 000 9 592 374 9 500 9 129 9 000 R/oz 8 500 8 000 7 500 7 000 FY2009 Inflation Volumes Other
Slide 14: Unit cost per platinum ounce and cost strategy
8/26/2010 Unit cost per platinum ounce 27 16 000 14 208 14 000 11 730 11 740 12 000 10 003 10 000 9 454 9 018 8 559 8 830 8 463 8 000 7 614 R/Pt oz 6 000 4 000 2 000 - Impala Marula Zimplats Mimosa Two Rivers FY09 FY10 Cost strategy going forward 28 In the current environment, cost containment is fu
Slide 15: Capital expenditure and Impala Rustenburg projects
8/26/2010 Capital expenditure 29 5 000 127 13 4 554 698 4 500 4 000 281 3 435 3 500 3 000 2 500 Rbn 2 000 1 500 1 000 500 - Impala Marula Zimplats Mimosa Afplats Total Capital projects – Impala Rustenburg 30 » 9 million o platinum p a u ounces ou ces » No acquisition cost » No infrastructure cost »
Slide 16: Capital projects – Impala Rustenburg and Zimplats
8/26/2010 Capital projects – Impala Rustenburg 31 Shaft 20 16 17 Cost (Rbn) 6.8 7.2 11.1 Completion date FY17 FY19 FY23 Full production (000 Pt oz) 150 000 180 000 180 000 First production date FY11 FY13 FY17 Project status Shafts - Main Commissioned Sunk 50% sunk - Ventilation Commissioned Sunk 80%
Slide 17: Finance review: Gross profit movement
8/26/2010 Finance review Dawn Earp 33 Gross profit movement 14 000 1 844 12 000 1 102 9 762 10 000 1 218 8 152 3 621 8 000 1 054 Rm 995 104 6 000 4 000 2 000 - FY2009 Revenue Revenue Revenue Operating Share based Depreciation Metals FY2010 volumes Prices Exchange Cost compensation Purchased rate (in
Slide 18: Gross profit by entity and headline earnings
8/26/2010 Gross profit by entity 9 000 1 188 8 152 8 000 421 7 000 1 159 6 000 5 368 16 Rm 5 000 4 000 3 000 2 000 1 000 - Impala Marula Zimplats Mimosa IRS FY2010 Headline earnings 6 500 6 015 6 000 5 500 5 000 263 4 718 842 4 500 Rm 1 610 4 000 792 3 500 3 000 2 500 2 000 FY2009 Gross profit Excha
Slide 19: Headline earnings and movement in cash net of debt
8/26/2010 Headline earnings 6 000 5 285 4 000 3 444 Rm 2 000 1 274 730 - H1 FY2009 H2 FY2009 H1 FY2010 H2 FY2010 Movement in cash net of debt 7 000 5 918 4 412 6 000 H2: 2 201 5 000 H2: 3 478 4 000 Rm H1: 2 211 3 000 781 1 730 2 000 H1: 2 440 1 363 1 000 718 - 1 202 Jun 2009 FY2009 Operating cash Ca
Slide 20: Conclusion: Implats' scorecard
8/26/2010 Conclusion David Brown 39 Implats’ scorecard 40 Safety Production Unit cost control Zimbabwe Returns to shareholders 20
Slide 21: Conclusion and forward-looking statement
8/26/2010 Conclusion » Implats has maintained a strong balance sheet » Growth profile to 2.1 million ounces of platinum by 2014 remains unchanged » The group is positioned to benefit from the positive medium- to long-term f d fundamentals t l ffor PGMs PGM » Growth opportunities exist throughout the
Slide 22: Annual results for the year ended June 2010
8/26/2010 Annual results for the year ended 30 June 2010 43 22
Impala Platinum Holdings — FY2010 Earnings Presentation on 6ix