Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Cazenove Resources Conference 2004
18 slides from Impala Platinum's conference presentation, Jun 23, 2004
Slide 1: Investor presentation – Analysis of shareholding
Investor presentation Cazenove – 23 June 2004 Analysis of shareholding As at end March 2004 6% 6% 12% 60% 16% South Africa USA England, Scotland and Wales Europe Other countries 40% held offshore 2 1
Slide 2: A multi-operation, reserve and resource company; Corporate structure
A multi-operation, reserve and resource company 1999 2004 2% 30% 28% 72% 4% 64% Impala Barplats Impala Marula Zimplats Mimosa 69 Moz Pt 254 Moz Pt 3 Corporate structure Implats 100% Mine to market Impala Refining Strategic holdings operations Services (IRS) Impala 100% Platinum Lonplats Marula 80% P
Slide 3: Transactions: Lonplats sale – cash received
Transactions Cleaning up the corporate structure Lonplats Barplats 5 Lonplats sale – cash received ($m) Sale price 800.0 FV adjustment -5.5 794.5 Vendor finance -95.0 699.5 Dividend received -31.7 667.8 Capital range – Implats and Zimplats 200-300 Resultant cash balance 467.8-367.8 3
Slide 4: Simplified structure of Incwala Resources; Benefits for Implats shareholders
Simplified structure of Incwala Resources From Lonplats Lonplats Lonplats From the the outset, outset, HDSAs HDSAs Employee Andisa Employee Dema Employee Vantage will have have control Capital Capital Capital will control of of more more Trust Trust Trust than 50% than 50% of of Incwala Incwala 25%
Slide 5: Mining Operations – Barplats
Barplats Decision made in 2003 to sell 83.1% stake in Barplats Barplats main operating unit, Crocodile River, put on care and maintenance in November 2003 Barplats sold to the Salene Platinum Consortium in April 2004 for R389 million Sale approved by competition authorities on 28 May 2004
Slide 6: Impala Platinum; Layout of Impala lease area
Impala Platinum Comprises mining operations on the Impala lease area, Mineral Processes and Refineries 13 shaft systems and five declines 30-year plan to produce 1M to 1.1Moz of platinum annually Significant royalty agreement with RBN 11 Layout of Impala lease area 12 6
Slide 7: Impala mining plan; planned capex
Impala - mining plan Design and planning of new shafts to maintain output well underway Good progress with mechanised mining and opencast operations 18,000 Opencast - Mer ensky Opencast UG2 17 Decl 16,000 16 Decl 18 Shaft 14,000 21 Shaft 17Shaft 12,000 16 Shaft 19 Shaft '000 tonnes 10,000 E&F 11
Slide 8: Marula Platinum; New mining method
Marula Platinum Greenfields project on eastern limb of Bushveld Complex Property purchased in December 2000 15 New mining method Semi-mechanised layout 4m 10m Drive 1 6m 20º Panel 2 Drive 2 Typical section showing Trackless drive with conventional panel 16 8
Slide 9: New mining method; Marula – progress
New mining method View down the panel towards the drive 17 Marula – progress Capital cost of R1.4 billion On-reef decline development behind schedule Commissioning of surface infrastructure completed Estimated production 2004 – 12 000 Pt oz in concentrate Revised mining plan being establis
Slide 10: Zimplats; Expansion Phase 1
Zimplats 83.3% stake Current production of 85 000oz Pt pa 19 Zimplats - Expansion Phase 1 Bankable feasibility study complete Aimed at exploiting Ngezi Ore Reserves by underground mining methods Alternative and optimal financing structures under review Interim funding for infrastructure
Slide 11: Zimplats – potential production; Mimosa Platinum
Zimplats – potential production Ounces 400000 300000 200000 100000 0 Current 2006 2008 2010 21 Mimosa Platinum Implats has a stake of 50% Current production of 65 000oz of Pt One of most efficient, lowest cost producers in the world 22 11
Slide 12: Mimosa expansion opportunities; Project pipeline
Mimosa - expansion opportunities Modifications to current concentrator to increase throughput by up to 15 000 Pt oz (FY2006) Evaluation drilling underway south of current workings Feasibility study to potentially double production will begin post-drilling 23 Project pipeline Marula Impala 16#
Slide 13: Sustained production outlook; Platinum production
Sustained production outlook Ounces 2500 2000 1500 1000 500 0 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Mine to market 3rd party processing Lonplats 25 Platinum production 000 oz 2003 2004 (Estimated range) Impala Platinum (refined) 1 040 1 060 – 1 090 IRS (refined) 633 840 – 860 Total 1 673
Slide 14: Sales parameters – metal prices; BEE – the background
Sales parameters – metal prices 2003 2004 (Estimate) Platinum ($/oz) 597 775 Palladium ($/oz) 264 223 Rhodium ($/oz) 646 545 Nickel ($/tonne) 7 664 11 849 Revenue/Pt ounce sold (R) 8 471 7 666 Revenue/Pt ounce sold ($) 935 1 111 BEE – the background BEE is a reality of doing business in southern Afr
Slide 15: Ownership; Employment equity
Ownership Definition: 15% HDSA ownership in equity of attributable units of production within five years Implats (listed company) RBN 1.5% of equity Impala Lonmin deal – 9% of production Marula 20% of project Two Rivers 55% partner effectively BEE (ARM) 29 Employment equity Definitio
Slide 16: Affirmative procurement; Beneficiation
Affirmative procurement Definition: Preferred supplier status to HDSAs Current level of HDSA procurement identified Commitment to progress over three years HDSA preferred supplier status and affirmative procurement principles established in January 2002 R400 million purchased from HDSA suppliers
Slide 17: Opening of Silplat facility; Silplat
Opening of Silplat facility 33 Silplat Venture partners – Silmar of Italy, SA Link, Micofin and BAE-SAAB Implats’ contribution Direct equity stake of 17.5% for R14m Platinum loan of 1 000kg over five years Commercial lease rate paid on outstanding portion of loan Highly competitive ventu
Slide 18: The Market
T h e MARKET Derek Engelbrecht Investor presentation Cazenove – 23 June 2004 18
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