Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — FY2005 Earnings Presentation
16 slides from Impala Platinum's earnings presentation, Aug 26, 2005
Slide 1: a very good year for Implats
a very good year for Implats 9 best safety performance ever 9 headline platinum production up 5% to 1.815 Moz 9 record production at Impala of 1.115 Moz 9 costs at Impala held to a 5.3% increase per platinum ounce 9 sales revenue up 6% to R12.5 billion 9 net profit up 78% to R5.2 billion 9 headline
Slide 2: Earnings recover in FY2005; strong dollar metal prices
earnings recover in FY2005 Heps (cents) 8,000 7,000 6,000 5,000 4,000 H2 3,000 H2 H2 Up 2,000 70% 1,000 H1 H1 0 FY01 FY02 FY03 FY04 FY05 have weathered the storm …. now highly geared to weaker rand 3 strong dollar metal prices R/Pt oz $/Pt oz average basket revenue per Pt oz received 10,500 1,400 10
Slide 3: Great platinum market fundamentals; palladium surplus continues
great platinum market fundamentals surplus/deficit price 000oz $/oz 400 1000 300 900 200 800 100 700 0 -100 600 -200 500 -300 400 -400 300 -500 200 -600 -700 100 -800 0 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 growth fuelled by strong automotive diesel demand 5 palladium surplus continues surplu
Slide 4: Highly volatile rhodium market; robust nickel market
highly volatile rhodium market surplus/deficit price 000oz $/oz 200 2,200 2,000 150 1,800 1,600 100 1,400 1,200 1,000 50 800 600 0 400 200 -50 0 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 tightening NOx legislation driving demand 7 robust nickel market ‘000 tpa 2.000 1.800 1.600 1.400 1.200 1.000
Slide 5: Financial review: income statement
financial review income statement Rm FY2005 FY2004 % change sales 12,541 11,809 6.2 cost of sales (8,318) (7,549) 10.2 gross profit 4,223 4,260 (0.9) gross margin 34% 36% (5.6) net forex transaction gain/(loss) 33 (216) 115.3 share of profit of associates 204 328 (37.8) royalty expense (415) (414) (
Slide 6: Net profit by entity; cash flows
net profit by entity Rm FY2005 FY2004 Impala Platinum 2,201 1,678 growth in volume & prices IRS 466 394 exchange rate Zimbabwean ops 185 268 managed exchange rates Marula Platinum (105) (23) ramp-up phase other 114 302 Lonplats and Aquarius headline earnings 2,861 2,619 up 9% extraordinary items 3,2
Slide 7: Group capex; operational review
group capex Rm 6, 000 5, 000 4, 000 3, 000 2, 000 1, 000 0 FY 0 5 FY 0 6 FY 0 7 FY 0 8 FY 0 9 FY 1 0 sustaining capex expansion capex Ambatovy 13 operational review 7
Slide 8: Best ever safety performance; Implats compares favourably with peers
best ever safety performance fatal injury frequency rate lost-time injury frequency rate (per million man hours) (per million man hours) 0.2 10 0.15 8 34% 6 26% 0.1 4 0.05 2 0 0 FY01 FY02 FY03 FY04 FY05 FY01 FY02 FY03 FY04 FY05 injury rates have more than halved in four years 15 Implats compares fav
Slide 9: Sterling performance at Impala; steady increase in efficiencies
sterling performance at Impala FY2005 FY2004 % change tonnes milled (000t) 15,778 15,639 0.9 refined Pt production (000oz) 1,115 1,090 2.3 cost per Pt oz refined (R/oz) 4,251 4,036 5.3 no of employees (000) 26.9 27.5 2.2 capex (Rm) 1,693 1,197 41.4 17 steady increase in efficiencies at Impala mini
Slide 10: Extending life-of-mine at Impala; good start at 16 shaft
extending life-of-mine at Impala 30 year life-of-mine at 1.1Moz Pt mining of abandoned areas enhanced recoveries opencast mining conversion of previously non-profitable resources into reserves 16 and 20 shaft developments underway to contribute 355,000 Pt oz per annum at full productio
Slide 11: 20 shaft; steady improvement at Marula
…. and at 20 shaft 21 steady improvement at Marula FY2005 FY2004 % change tonnes milled (000t) 766 574 33.4 platinum production in concentrate (oz) 29,800 13,300 124.1 capex (Rm) 118 505 76.6 new mining plan to suit geological conditions full production of 144,000 Pt oz in concentrate in FY2009
Slide 12: Marula DDT stope implementation; sound performance at Zimplats
Marula – DDT stope implementation 23 sound operational performance at Zimplats FY2005 FY2004 % change tonnes milled (000t) 2,058 2,006 2.6 platinum production in matte (oz) 86,800 85,300 1.8 cost per Pt oz in matte (R/oz) 6,249 5,074 (23.2)* * Including export incentives, cost per Pt oz in matte inc
Slide 13: Excellent performance at Mimosa; project approval for Two Rivers
excellent operational performance at Mimosa FY2005 FY2004 % change tonnes milled (000t) 1,424 1,334 6.7 platinum in concentrate (oz) 66,700 61,400 8.6 cost per Pt oz in concentrate (R/oz) 5,472 4,199 (30.3)* * Including export incentives, cost per Pt oz in matte increased by 17% to R4,289 Expansio
Slide 14: Exciting new venture at Ambatovy in Madagascar; consistent growth in Pt production
exciting new venture at Ambatovy in Madagascar $2.25 billion joint venture with Dynatec and Sumitomo Corporation designed to produce 60,000 t nickel and 5,600 t cobalt first production in 2009 detailed feasibility being undertaken, with decision to proceed by financial year-end 37.5% – exper
Slide 15: Key focus areas; prospects for Implats in FY2006
key focus areas sustaining output by investing in new shafts continuing to deliver a competitive cost advantage by optimising productivity cost control implementation of new technology (DDT) and systems (SAP) delivering on growth Impala, Marula and Two Rivers Zimbabwe – blue sky co
Slide 16: Implats - Distinctly Platinum
IMPLATSA Distinctly Platinum www.implats.co.za 16
Impala Platinum Holdings — FY2005 Earnings Presentation on 6ix