Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Royal Bafokeng Platinum — FY2020 Earnings Presentation
42 slides from Impala Platinum's earnings presentation, 2021
Slide 1: Audited Annual Results for the Year Ended 31 December 2020
AUDITED ANNUAL RESULTS 20 FOR THE YEAR ENDED 31 DECEMBER 2020 20
Slide 2: Audited Annual Results for the Year Ended 31 December 2020
Audited Annual Results for the Year Ended 31 December 2020
Slide 3: Contents
CONTENTS Overview Market review Operational review Financial review Outlook and guidance
Slide 4: Overview
O1 OVERVIEW MORE THAN MINING
Slide 5: More than mining: ownership, resources and performance
2010 2020 67% OWNERSHIP 100% OWNERSHIP PERFORMANCE 2 407kt milled 3 990kt milled ownership of ownership of LTIFR LTIFR BRPM JV our operations 4.763 1.318 LABOUR 260Mt 348Mt OPERATIONS STABILITY RESOURCES 67% 100% Consistent stable labour and community relations SOCIAL FREE FLOAT SHAREHOLDING PERFORM
Slide 6: Value creation for our shareholders
R6 646.5 million 1 354.4 cents R1 643.2 million (2019: R1 756.4 million) (2019: 50.4 cents) (2019: net debt of R491.3 million) EBITDA HEPS Net cash position Value creation for our shareholders R1.5 billion declared in maiden dividend (575.0 cents per share) Operating performance Guidance in October
Slide 7: More than mining
× 01 01 TOWARDS 02 OPERATIONAL EXCELLENCE BUILD 02 FLEXIBILITY Maseve and BRPM concentrator upgrades MORE THAN 04 MINING 03 230ktpm/320koz (4E) at Styldrift PURSUE VALUE ENHANCING 03 OPPORTUNITIES GROW ORGANICALLY 04 Audited Annual Results for the year Year ended Ended31 31December
Slide 8: Exco gender composition
17.8% 19.0% 15.9% 17.1% 14.1% 2016 2017 2018 2019 2020 Men, 60% Exco gender Women, composition 40% Audited Annual Results for the year Year ended Ended31 31December December2020 2020
Slide 9: Over 1 400 families live in our employee housing development
˃ Over 1 400 families live in our employee housing development ˃ Provided community members with the opportunity to train as crop farmers growing vegetables ˃ Provided isolation and quarantine facilities for our employees and community ˃ Donated laptops and computer tablets to Charora High School Au
Slide 10: PGMs enabling the transition to a low carbon economy
> The PGMs we produce are > playing a significant role in enabling the transition to a > low carbon economy > > Audited Annual Results for the year Year ended Ended31 31December December2020 2020
Slide 11: Market review
02 MARKET REVIEW
Slide 12: Indexed price 4E Basket
Indexed price (2 January 2020 = 100) – 4E Basket 300 > 66.4% increase in average 4E basket price to R31 062.1/4E oz, driven by higher 250 PGM prices 200 > Expected rebound in supply and demand for PGMs 150 > Positive outlook for platinum as fundamentals continue to improve 100 > Strong automotive de
Slide 13: Operational review
A OS OPERATIONAL REVIEW MORE THAN MINING
Slide 14: Our 10-year journey of operational growth
OUR 10-YEAR JOURNEY OF OPERATIONAL GROWTH 2010-2011 2012-2013 2014-2015 2016-2017 2018-2019 2020-2021 3.5 million ounces 419 4E koz 288 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Robust Styldrift achieves Operational Control Sustainability and 2015 PGM price Flexibility to market pe
Slide 15: Operational performance
OPERATIONAL PERFORMANCE FLEXIBILITY > 36.2km > 1.71 > 653 thousand > 18% 4140kt > Co-processing capability > 3 990kt 419koz OUR JOURNEY TO ZERO HARM GROWTH > One fatal accident > 9.2% increase > 34.5% improvement > 3.7% increase > 48.6% improvement > 4.5% increase MORE THAN MINING Covid-19 RESPONSE
Slide 16: The road to a resilient safety culture and zero harm
THE ROAD TO A RESILIENT SAFETY CULTURE AND ZERO HARM Total recordable injury frequency rate Serious injury frequency rate Lost time injury frequency rate 2020 PERFORMANCE 10.000 9.267 2.000 1.843 3.000 8.643 > Tragically one fatality during 2.475 the period 8.000 1.600 2.400 1.900 > Continued trend
Slide 17: Key interventions: Covid-19 response
1 479 KEY INTERVENTIONS R64 MILLION 1 441 > Full salary support for employees during 21-day SPENT lockdown period COVID-19 RESPONSE 5 221 > 130-bed quarantine facility 7 > 200-bed field hospital 97 constructed 5 221 > Community support 4 208 • 3 500 food parcels 2 389 • 2 500 hygiene care packs 1 47
Slide 18: Record production despite unprecedented Covid-19 disruptions
RECORD PRODUCTION DESPITE UNPRECEDENTED COVID-19 DISRUPTIONS Description Unit 2019 2020 % Var Total tonnes hoisted Total stoping square metres 700 Total development km 39.1 36.2 (7.4) 4 500 4 140 653 610 BRPM km 32.3 30.0 (7.1) 4 000 3 792 600 542 3 349 Styldrift km 6.8 6.2 (8.8) 3 500 SD SD 500 1 9
Slide 19: Improved 4E ounce production during challenging year
IMPROVED 4E OUNCE PRODUCTION DURING CHALLENGING YEAR Description Unit 2019 2020 % Var Total tonnes milled 4E metals in concentrate Total tonnes milled kt 3 847 3 990 3.7 450 4 500 419 BRPM kt 2 222 2 096 (5.7) 3 990 401 3 847 400 4 000 368 Styldrift kt 1 625 1 894 16.6 3 420 350 3 500 Merensky kt 3
Slide 20: Labour aligned to business requirements
LABOUR ALIGNED TO BUSINESS REQUIREMENTS Description Unit 2019 2020 % Var Capital labour 4 000 Total labour No. 10 059 10 566 (5.0) 3 636 Working cost labour No. 8 899 9 517 (6.9) 3 000 BRPM No. 5 093 5 123 (0.6) Number 2 000 Styldrift No. 2 913 3 395 (16.5) 1 160 1 049 Central and Shared Services No
Slide 21: RBPlat operating unit costs impacted by Covid-19 and stockpile growth
RBPLAT OPERATING UNIT COSTS IMPACTED BY COVID-19 AND STOCKPILE GROWTH Description Unit 2019 2020 % Var Total cash operating costs R'm 5 675 6 513 (14.8) Cash operating cost/tonne milled R/t 1 475 1 632 (10.6) Cash operating cost/4E oz R/oz 14 139 15 560 (10.1) Cash operating cost/tonne milled stock
Slide 22: BRPM unit costs impacted by Covid-19 and stockpile growth
BRPM UNIT COSTS IMPACTED BY COVID-19 AND STOCKPILE GROWTH Description Unit 2019 2020 % Var Cash operating cost/4E ounce 16 000 BRPM cash operating costs R'm 3 024 3 160 (4.5) 12 562 441 Cash operating cost/tonne milled R/t 1 361 1 508 (10.8) 12 000 10 468 Cash operating cost/4E oz R/oz 12 562 14 141
Slide 23: Styldrift unit costs impacted by Covid-19 and stockpile growth
STYLDRIFT UNIT COSTS IMPACTED BY COVID-19 AND STOCKPILE GROWTH Description Unit 2019 2020 % Var Cash operating cost/4E ounce 20 000 Styldrift cash operating costs R'm 2 651 3 353 (26.5) 16 504 16 000 545 Cash operating cost/tonne milled R/t 1 632 1 770 (8.5) 12 000 Cash operating cost/4E oz R/oz 16
Slide 24: Capital expenditure
Description Unit 2019 2020 % Var Stay-in-business R374 million for 2020 capital > 5.7% of total operating cost Stay-in-business capital (SIB) R'm 226 374 (65.5) SIB % of total operating costs % 4.0 5.7 (42.5) R340 million for 2020 Replacement > Expansion of north and south Replacement capital R'm 10
Slide 25: Project delivery underpinned by strategic focus during the pandemic
PROJECT DELIVERY UNDERPINNED BY STRATEGIC FOCUS DURING THE PANDEMIC 600 level reef footprint STYLDRIFT PROJECT PROGRESS TO SUPPORT 230KTPM Main shaft 4 Ore silos Services shaft Settler no.1 14 equipped stoping Material sections distribution Spare IMS sections 1 Water handling and 2 Underground Track
Slide 26: Styldrift operational performance and challenges
Stoping square metres Tip-to-face tramming distance Shortfall, 12% 160 140 129 140 120 108 106 108 Covid 98 120 impact 100 93 Stoping crew 100 efficiency 80 000' m2 m 80 60 14.3kt Target 40 60 FY 2020 20 40 Efficiency 88% 0 20 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 0 Target Actual Forecast
Slide 27: Achieving volume, improving quality, controlling costs
Achieving volume Improving quality Controlling costs > Complete construction of final 2 spare > Production optimisation team > Leverage economy of scale benefits IMS sections > Enhance maintenance and asset > Organisational design for further > Optimise stoping and development management processes t
Slide 28: Project studies and upgrades
Maseve MF2 180ktpm Tailings storage facilities Project studies upgrade Overland conveyor phase 2 > Evaluate overland conveyor options Concentrator optimisations > Identify incremental increases in concentrator capacity at both plants Styldrift life of mine optimisation study > Feasibility study in p
Slide 29: Financial review
04 FINANCIAL REVIEW
Slide 30: Financial results summary
YoY 4E Ounces Description Unit 2020 2019 % change 450 419 400 Revenue R’m 13 379 7 492 79 350 288 300 Cost of sales R’m (7 949) (6 811) (17) 250 koz 200 Gross profit R’m 5 431 681 697 150 100 Other income and expenses R’m 193 268 (28) 50 0 Administrative expenses R’m (264) (337) 22 2010 2011 2012 20
Slide 31: Headline earnings and dividend per share
YoY Description Unit 2020 2019 % change Attributable comprehensive income R’m 3 529 64 5 406 Less: Profit on disposal of PPE and other assets R’m (40) - nm Plus: Scrapping and impairment of non-financial assets R’m - 59 100 Headline earnings R’m 3 489 123 2 734 Weighted average number of shares outs
Slide 32: Headline earnings per share bridge
cents per share 1 000 1 200 1 400 1 600 1 800 0 200 400 600 800 Audited Annual Results for the year Headline earnings per share '19 50.4 Year ended Ended31 Revenue - volume increase 137.0 31December December2020 2020 Headline earning per share Revenue - exchange rate 344.3 Revenue - metal prices 1 1
Slide 33: Revenue growth supported by stronger basket price
REVENUE GROWTH SUPPORTED BY STRONGER BASKET PRICE YoY Revenue contribution Description Unit 2020 2019 % change Average basket price R/Pt oz 47 892 28 743 67 4.4% 1.2% 1.0% 0.3% 1.4% Average R:US$ exchange rate R:US$ 16.34 14.55 12 26.7% 2020 Description Unit 2020 2019 35.0% Volume Price (US$) Volume
Slide 34: Drivers of cost of sales
YoY Drivers of cost of sales* Description Unit 2020 2019 % change Cost of sales R’m (7 949) (6 811) (17) Cost of sales (excl. depreciation and amortisation) R’m (6 867) (5 726) (20) 34% 41% 2020 Depreciation and amortisation R’m (1 265) (1 096) (16) 17% Increase in inventories R’m 183 11 1 550 8% La
Slide 35: Segment results: BRPM and Styldrift
RBR BRPM Styldrift operations Description mining mining segments segment segment 2020 RBR operational EBITDA (2015 to 2020) Full year ended 31 December 2020 R’m R’m R’m 7 000 Revenue 13 379 7 486 5 894 6 000 2 351 5 000 Cost of sales (7 803) (3 620) (4 183) R’ million 4 000 Cash cost of sales exclud
Slide 36: Cash flow and net cash
YoY Description Unit 2020 2019 % change Cash generated by operating activities R’m 5 826 1 028 467 - Proceeds from the gold streaming transaction R’m 2 094 - 100 - Cash generated from operations (less interest and tax) R’m 3 732 1 028 263 Cash utilised in investing activities* R’m (1 868) (1 752) (7
Slide 37: Capital allocation framework
Our capital allocation framework is integrated into our strategy, budget, planning and management processes. Assessment Valuation Optimal of financial process funding risk and structure returns measure ongoing impact on: performance of: assessment of: Maximise Manufactured capital Operational Optima
Slide 38: Net cash, liquidity and maiden dividend
> Net cash* of R1 643 million at year end (2019: net debt* of R491 million) > Strong liquidity and funding > Maiden dividend declaration Note: * ** Free cash flow excludes the stream proceeds received in 2020 Audited Annual Results for the Year Ended 31 December 2020
Slide 39: Transformative year for Royal Bafokeng Platinum
> Transformative year for > Strong financial > Discipline in capital > Finance focus areas for Royal Bafokeng Platinum performance allocation 2021 and beyond • • • • 756 • • • • Delivery of Supply Chain projects • • • on capital employed (2019: 2.2%) Audited Annual Results for the year Year ended En
Slide 40: Outlook and guidance
g QO5 OUTLOOK AND GUIDANCE
Slide 41: Audited Annual Results for the Year Ended 31 December 2020
Audited Annual Results for the Year Ended 31 December 2020
Slide 42: Audited Annual Results for the Year Ended 31 December 2020
Audited Annual Results for the Year Ended 31 December 2020
Royal Bafokeng Platinum — FY2020 Earnings Presentation on 6ix