Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Royal Bafokeng Platinum — H1 2019 Earnings Presentation
37 slides from Impala Platinum's earnings presentation, 2019
Slide 1: Condensed Consolidated Interim Results for the Six Months Ended 30 June 2019
CONDENSED CONSOLIDATED 20 INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2019 19
Slide 2: Disclaimer
lL] DISCLAIMER The information presented in this presentation is of a general nature and the forward-looking information, opinions and beliefs of the Company and its affiliates are based on various market related assumptions. Changes in market circumstances after the production of the information ma
Slide 3: Contents
CONTENTS Overview Market review Operational review Financial review Outlook Appendix
Slide 4: Overview
OVERVIEW NORE THAN MINING
Slide 5: Safety, Financial, Operations, Labour and Social highlights
Safety Financial Operations Labour and Social > Regrettably > > 21.1% increase > one fatality R525.6 million NUM leadership elections > 21.6% > > > 86.5% socio-economic development > 42.8% 70.8 increase enterprise development 757kt > > R1 029.1 > 21.1% increase > 87.1% zero harm > > 7.8% increase HD
Slide 6: Market Review
a Sei} NAR * | 02 MARKET REVIEW NORE THAN MINING
Slide 7: Indexed price (2 January 2018 = 100)
Indexed price (2 January 2018 = 100) > 210 190 > 170 150 > 130 > 110 90 > 70 > 50 Jan-18 Jun-18 Dec-18 Jun-19 ZAR basket Platinum Palladium Rhodium USD basket
Slide 8: Operational Review
O03 OPERATIONAL REVIEW NORE THAN MINING
Slide 9: Safety, Growth, Flexibility
Safety Growth Flexibility Our focus is on achieving Styldrift reaches commercial Strategic optionality to adjust to meaningful and sustainable operation following 10 years of varying market conditions progress in our pursuit of project execution and remains through our Merensky and zero harm on trac
Slide 10: Total recordable injury frequency rate
Total recordable injury frequency rate H1 2019 PERFORMANCE KEY INITIATIVES > Tragically one fatality at > Legitimate leadership training – create a 12.00 11.19 South shaft during second caring relationship through means, ability 9.92 10.00 quarter of 2019 and accountability 8.80 > Substantial year-o
Slide 11: HIV prevalence rate and TB programme
HIV prevalence rate 30.0% 24.0% 23.8% 22.7% 20.0% % 10.0% 0.0% H1 2017 H1 2018 H1 2019 Extensive TB treatment programme New TB infections > 19.2% increase in TB screenings from H1 2018 TB 16 > 19 employees currently infected with TB – all receiving treatment 14 13 > Extensive rollout of TB screening
Slide 12: RBPlat supports all 17 SDGs
SDG 3 Good health – safety and health of our employees are core to RBPlat supports all 17 SDGs our business SDG 8 Good jobs and economic growth – provision of jobs and contribution towards SA economic growth is one of our business mandates SDG 12 Responsible consumption – efficient use of resources
Slide 13: Mining operational performance
Description Unit H1 2017 H1 2018 H1 2019 % Var Total tonnes delivered Built-up head grade (4E) Total development km 19.1 17.0 18.9 11.2 2 000 5.0 BRPM BRPM Total stoping square metres 000m2 251 256 301 17.6 BRPM 4.04 4.17 4.11 SD 1 600 4.0 3.81 2 SD SD BRPM 000m 235 211 204 (3.3) 740 3.36 SD SD 238
Slide 14: Tonnes milled and 4E metals in concentrate
Description Unit H1 2017 H1 2018 H1 2019 % Var Total tonnes milled 4E metals in concentrate Total tonnes milled kt 1 477 1 529 1 869 22.2 2 100 250 BRPM kt 1 237 1 123 1 112 (1.0) 1 869 Styldrift kt 240 406 757 86.5 1 900 199.2 200 Merensky kt 1 179 1 314 1 610 22.5 1 700 1 529 164.5 UG2 kt 298 215
Slide 15: Labour
Description Unit H1 2017 H1 2018 H1 2019 % Var Total labour No. 7 819 8 520 9 524 (11.8) Working cost labour No. 6 247 5 627 8 522 (51.4) BRPM No. 6 247 5 627 5 904 (4.9) Styldrift No. - - 2 618 100 Capital labour No. 1 572 2 893 1 002 65.4 BRPM No. 48 82 46 43.9 Styldrift No. 1 524 2 811 956 66.0 S
Slide 16: Group cash operating cost
Description Unit H1 2017 H1 2018 H1 2019* % Var RBPlat cash operating cost R'm 1 429 1 342 2 631 (96.1) Cash operating cost/tonne milled R/t 1 155 1 195 1 407 (17.7) Cash operating cost/4E oz R/oz 10 227 10 449 13 211 (26.4) Cash operating cost/Pt oz R/oz 15 913 16 159 20 355 (26.0) *Note: Styldrift
Slide 17: BRPM cash operating cost
Description Unit H1 2017 H1 2018 H1 2019 % Var Cash operating cost/tonne milled 1 600 BRPM cash operating cost R'm 1 429 1 342 1 432 (6.7) 1 288 1 155 1 195 1 200 Cash operating cost/tonne milled R/t 1 155 1 195 1 288 (7.8) Cash operating cost/4E oz R/oz 10 227 10 449 11 589 (10.9) R/t 800 Cash oper
Slide 18: Styldrift cash operating cost
Description Unit H1 2019 Key drivers of unit costs Styldrift cash operating cost R'm 1 199 Volume Cash operating cost/tonne milled R/t 1 583 > Loss of economies of scale due to lower Cash operating cost/4E oz R/oz 15 865 milled tonnes increased rand/4E ounce by R742 Cash operating cost/Pt oz R/oz 24
Slide 19: Capital expenditure
Description Unit H1 2017 H1 2018 H1 2019 % Var R53 million for H1 2019 Stay-in-business Stay-in-business capital (SIB) R'm 59 57 53 7.0 > 2.0% of the total operating capital SIB % of total operating cost % 3.8 4.3 2.0 (53.5) cost Replacement capital R'm 10 21 6 (71.4) BRPM R’m 10 21 6 (71.4) R6 mill
Slide 20: Styldrift project progress
Legend Description Unit H1 2017 H1 2018 H1 2019 % Var Section N1 - W Mined out up to end Dec 2018 Mined out up to end June 2019 Capital expenditure Installed strike conveyors Reporting period R’bn 0.78 1.30 0.54 (58.5) Section N2 - W Project-to-date R’bn 7.23 9.76 12.30 - Section S1 - W Project prog
Slide 21: Styldrift stoping crew efficiency
Overall primary fleet availability Key factors impacting on crew performance Average tip-to-face distance Current Status Steady Description state Equipped Unequipped section section Sections operating 14 6 6 Average face length 102m Fleet availability 85% Jan Feb Mar Apr May Jun Q3 Q4 Ave ti
Slide 22: Styldrift milled tonnes forecast
Legend Main Shaft Services Shaft Ventilation Mined out up to end of June 2019 Shaft 1,2,3 Remainder of 2019 development Installed conveyor belts at end of June 2019 H2 2019 conveyor belt and ore handling infrastructure 2020 conveyor belt and ore handling infrastructure Section N5 Q1 2021 Section N4
Slide 23: Water and ore handling infrastructure
Water handling infrastructure Section ore handling infrastructure > Settler 1 – Q3 2019 > 642 level bulkheads > Main pump station – Q3 2019 > Strike conveyor belt extensions > Settler 2 – Q2 2020 > Strike conveyor installations Shaft ore handling Other key infrastructure infrastructure > Vent shaft
Slide 24: Concentrator and TSF expansion
Phase 1 – Capacity 110-160ktpm BRPM TSF expansion > Q2 2019 – Q4 2020 Feasibility complete > Footprint increase of 63ha > Key components: • Secondary milling • Additional floatation capacity > Commission date – Q4 2020 > > > Maseve TSF expansion > > Q4 2018 – Q2 2020 > Footprint increase of 21ha
Slide 25: Financial Review
04 FINANCIAL REVIEW
Slide 26: Financial results summary
6 months ended 6 months ended Year ended Description Unit % change 30 June 2019 30 June 2018 31 December 2018 Average basket price R/Pt oz 24 694 19 990 23.5 21 006 Average R:US$ exchange rate R:US$ 14.47 12.95 11.7 13.82 Revenue R’m 3 163.0 1 659.6 90.6 3 627.1 Cost of sales R’m (3 114.1) (1 504.0)
Slide 27: Segment results
BRPM Styldrift RBR RBPlat RBPlat Consolidation Description mining mining operations 2019 Total housing corporate adjustments segment segment segment For the six months ended R (million) R (million) R (million) R (million) R (million) R (million) R (million) 30 June 2019 Revenue 1 959.7 1 203.3 3 163
Slide 28: Revenue contribution
6 months ended 6 months ended Description Unit 30 June 2019 30 June 2018 Revenue contribution Volume USD Volume* USD 1.8% 0.3% 1.1% 6.4% 2.3% Platinum oz 129 225 825/oz 83 001 896/oz 7.7% 1.6% 2.0% 1.9% 3.2% 2.1% Palladium oz 53 107 1 395/oz 34 079 985/oz 3.3% Rhodium oz 10 741 2 840/oz 7 287 2 188/
Slide 29: Cost of sales analysis
6 months ended 6 months ended 6 months ended 6 months ended Description 30 June 2019 30 June 2019 % change 30 June 2018 30 June 2018 R (million) % of total R (million) % of total Labour 978.0 37.5 (91.1) 511.9 38.6 Utilities 196.5 7.5 (51.6) 129.6 9.8 Contractor costs 551.7 21.1 (34.1) 411.5 31.0 Ma
Slide 30: Headline loss per share bridge
Cents per share 100.0 200.0 300.0 400.0 -100.0 0.0 Headline loss per share - 2018 (6.0) Revenue - volume increase 348.5 Cost - volume increase 280.2 Increase in admin and other costs 4.7 Increase in costs - mining inflation 43.0 Real cost increase 72.8 Revenue - Exchange rate 66.5 Revenue - Metal pr
Slide 31: Cash flow
6 months ended 6 months ended Year ended 31 Description Unit % change 30 June 2019 30 June 2018 December 2018 Cash generated by operating activities R’m 160.4 192.7 (16.8) 665.9 Cash utilised in investing activities* R’m (671.3) (1 896.4) 64.6 (3 600.5) - Capital expenditure** R’m (641.7) (1 397.8)
Slide 32: Net debt, liquidity and funding
> Net debt of R284.6 million at period end* • • • • > Strong liquidity and funding • − − − • > Other parts of capital structure** • • ** Excluding PIC housing facility ring-fenced to housing assets
Slide 33: Financial review summary
> Transformative year for > EBITDA of R525.6 million > Robust funding position > Finance focus areas for Royal Bafokeng Platinum • 2019 and beyond • > EBITDA margin of 16.6% • > BRPM gross profit of • • • R356.3 million > Styldrift gross loss of • R265.5 million •
Slide 34: Outlook
05 OUTLOOK
Slide 35: Outlook and guidance
> Our focus in the next six months will be on • Consolidating the gains made in our key injury frequency rates • Successfully concluding wage negotiations • Optimising volumes, containing costs and securing long-term operational flexibility • Continuing to improve our ESG performance > Deficit expec
Slide 36: Appendix
APPENDIX PLA gO #
Slide 37: Headline loss bridge (R million)
R’ million 1 100.0 1 300.0 100.0 300.0 500.0 700.0 900.0 ( 300.0) ( 100.0) Headline loss - 2018 (11.6) Revenue - volume increase 1 124.0 Decrease net finance income 236.6 Impact of increased volume 903.8 (266.3) controllable Increase in admin and other costs 15.1 Real cost increase 234.8 Revenue - E
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