Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — H1 FY2011 Earnings Presentation
17 slides from Impala Platinum's earnings presentation, Feb 17, 2011
Slide 1: Interim results FY2011 – Key features operational
17/02/2011 Interim results FY2011 For the half year ended 31 December 2010 One Team One Vision With Pride 1 Key features ‐ operational • Safety performance unsatisfactory Production • Gross refined platinum production 6% 900 rose by 6% to 952 000 ounces • Group unit costs excluding share 000 oz base
Slide 2: Key features – financial
17/02/2011 Key features ‐ financial • Revenue up 38% to R15.3 billion Headline Earnings 400 (US$2.1 billion) • Cost of sales increased by 28% 300 63% to R10.3 billion Cents per share • Margins up 18% to 33% 200 • Headline earnings per share 100 increased 63% to R3.45 • Interim dividend of R1.50 per
Slide 3: Group Income Statement
17/02/2011 Group Income Statement R million H1 FY2011 H1 FY2010 % change FY2010 Sales 15 315 11 122 38 25 446 Cost of sales (10 294) (8 034) (28) (17 294) Gross profit 5 021 3 088 63 8 152 Gross margin 33 28 18 32 Royalty expenses (417) (195) (114) (536) Profit before tax 3 206 2 422 32 7 225 Profit
Slide 4: Unit cost per platinum ounce and operating margins
17/02/2011 Unit cost per platinum ounce 16 000 14 683 14 000 12 322 12 000 10 162 9 755 9 473 10 000 8 848 8 084 8 434 8 035 7 696 8 000 R/Pt oz 6 000 4 000 2 000 ‐ Impala * Marula # Zimplats + Mimosa # Two Rivers # H1 FY10 H1 FY11 * refined platinum # platinum in concentrate + platinum in matte One
Slide 5: Movement in net cash position and capital expenditure
17/02/2011 Movement in net cash position 3 000 2 735 2 500 2 000 1 730 Rm 1 500 1 000 500 2 358 115 ‐ 1 622 370 Jun 2010 FY2010 Operating Capex Other Dec 2010 dividend cash flow One Team One Vision With Pride 9 Capital expenditure 3000 123 2420 2500 365 1844 88 2000 1500 Rm 1000 500 0 Impala Marula
Slide 6: Market review – sales volumes by metal
17/02/2011 Market review Derek Engelbrecht One Team One Vision With Pride 11 11 Sales volumes by metal H1 FY2011 H1 FY2010 % change FY2010 Platinum (000oz) 801 694 15 1 435 Palladium (000oz) 477 466 2 945 Rhodium (000oz) 109 120 (9) 228 Nickel (000t) 8 7 22 13 One Team One Vision With Pride 12 6
Slide 7: Average prices achieved – major metals
17/02/2011 Average prices achieved – major metals H1 FY2011 H1 FY2010 % change FY2010 Platinum ($/oz) 1 596 1 281 25 1 433 Palladium ($/oz) 554 298 86 376 Rhodium ($/oz) 2 253 1 764 28 2 149 Nickel ($/t) 21 795 16 032 36 18 981 Basket ($/Pt oz sold) 2 624 2 051 28 2 316 (R/Pt oz sold) 18 788 15 793
Slide 8: Platinum and palladium – ETFs and futures
17/02/2011 Platinum – ETFs and futures 1 400 2 500 1 200 2 000 1 000 1 500 800 Thousands Thousands 600 1 000 400 500 200 ‐ ‐ Jan 08 Jan 09 Jan 10 Jan 11 Jan 08 Jan 09 Jan 10 Jan 11 ZKB ETF JB US ETF NYMEX TOCOM One Team One Vision With Pride 15 Palladium – ETFs and futures 2 500 2 500 2 000 2 000 1
Slide 9: Platinum and palladium supply and demand
17/02/2011 Platinum 000 oz 2011 est 2010 2009 Demand Automotive 3 640 3 280 2 950 Jewellery 2 150 2 120 2 410 Industrial 1 690 1 630 1 230 Investment 450 650 650 Total 7 930 7 680 7 240 Supply SA 4 910 4 750 4 580 Recycle (incl jewellery) 1 450 1 610 1 200 Russia 790 800 775 Other 800 650 575 Total
Slide 10: Rhodium supply and demand; Prospects
17/02/2011 Rhodium 000 oz 2011 est 2010 2009 Demand Automotive 815 752 682 Industrial 165 148 113 Total 980 900 795 Supply SA 690 650 640 Recycle 230 215 185 Other 115 105 100 Total 1 035 970 925 Supply/Demand Balance 55 70 130 One Team One Vision With Pride 19 Prospects • Despite lingering uncertai
Slide 11: Performance review – Group safety
17/02/2011 Performance review David Brown One Team One Vision With Pride 21 21 Group safety Fatal injury frequency rate Lost time injury frequency rate 4.95 0.15 4.61 0.12 0.12 4.00 3.48 0.10 (per million man hours) 0.10 (per million man hours) 2.92 2.92 0.08 0.08 2.00 0.05 0.00 0.00 One Team One Vi
Slide 12: Refined production and Impala
17/02/2011 Refined production Contribution by entity 161 952 1000 900 45 800 69 38 700 50 88 600 000 oz 501 500 400 300 200 100 0 Impala Zimplats Mimosa Marula Two Rivers Third Party Toll Total One Team One Vision With Pride 23 Impala • Tonnes milled increased by 15% • Merensky/UG2 ratio increased t
Slide 13: Zimplats and Mimosa
17/02/2011 Zimplats • Tonnes milled up 6% to 2.08 million • Platinum in matte production increased by 9% to 89 000 ounces • Phase 2 expansion on track • Empowerment discussions on‐going One Team One Vision With Pride 25 Mimosa • Operation at steady‐state production • Tonnes milled and platinum in co
Slide 14: Marula and Two Rivers
17/02/2011 Marula • Tonnes milled up 9% to 888 000 • Platinum production in concentrate rose to 41 100 ounces • Productivity declined by 9% One Team One Vision With Pride 27 Two Rivers • Operation at steady‐state production • Tonnes milled and platinum in concentrate production unchanged at 1.48 mil
Slide 15: Capital projects
17/02/2011 Capital projects • 20 Shaft – delivered first ounces in January 2011 • 16 and 17 Shafts – sinking and development on‐going • Zimplats Phase 2 – project commenced • Leeuwkop – bankable feasibility study is on‐going One Team One Vision With Pride 29 Conclusion David Brown One Team One Visio
Slide 16: Conclusion and forward-looking statement
17/02/2011 Conclusion • Market outlook continues to improve • Production largely on track at all operations • Capital delivery on‐going • Safety and costs remain focus of attention • Group well positioned One Team One Vision With Pride 31 Forward‐looking statement Certain statements contained in thi
Slide 17: Interim results for the half year ended December 2010
17/02/2011 Interim results for the half year ended 31 December 2010 One Team One Vision With Pride 33 33 17
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