Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — Investor Presentation (October 2007)

20 slides from Impala Platinum's investor presentation, October 2007

  1. Slide 1: Investor Presentation October 2007: Introducing Implats

    Investor Presentation October 2007 Introducing Implats Implats is in the business of mining, refining and marketing platinum group metals and associated base metals 2 1

  2. Slide 2: Implats … Key statistics

    Implats … ƒ strives to be the best platinum Implats share price - monthly average producing company and deliver Rands superior returns to its 300 shareholders 250 ƒ produced 2.03 million ounces of 200 platinum in FY2007 150 100 ƒ generated sales revenue of 50 R31.5 billion in FY2007 - (equivalent to

  3. Slide 3: Group structure; Platinum reserves & resources

    Group structure 5 Platinum reserves & resources • 187 Moz attributable reserves and resources Mimosa Aquarius 2% 1% Impala 38% Zimplats 42% Marula Two Rivers Afplats 5% 1% 11% 6 3

  4. Slide 4: Market review: The platinum story

    Market review The platinum story ƒ Diesel autocatalyst growth continues to drive demand ƒ Increasing diesel share of European light duty vehicles ƒ Growing demand for particulate filters ƒ Stricter emission legislation encompassing heavy duty vehicles ƒ Robust industrial demand ƒ Price sensitive jew

  5. Slide 5: Platinum fundamentals remain robust; The palladium story

    Platinum fundamentals remain robust Price 000 oz ($/oz) 100 1400 50 1200 0 1000 (50) 800 (100) 600 (150) 400 (200) 200 (250) 0 CY03 CY04 CY05 CY06 CY07 Market moves back into deficit Surplus/(Deficit) Pt Price Forecast 9 The palladium story • Autocatalyst demand grew further • Tighter emission legis

  6. Slide 6: Palladium fundamentals improve; The rhodium story

    Palladium fundamentals improve Price 000 oz ($/oz) 1600 400 1200 300 800 200 400 100 0 0 CY03 CY04 CY05 CY06 CY07 Balanced market Surplus Pd Price Forecast 11 The rhodium story • Market remained tight • Implementation of stricter NOx standards in gasoline engines • Growth in glass industry 12 6

  7. Slide 7: Rhodium demand remains strong; Contribution to sales revenue by metal

    Rhodium demand remains strong Price 000 oz ($/oz) 120 6000 90 5000 60 4000 30 3000 0 2000 (30) 1000 (60) 0 CY 03 CY 04 CY 05 CY 06 CY 07 Market remains in deficit Surplus/(Deficit) Rh Price Forecast 13 Contribution to sales revenue by metal FY06 FY07 Platinum Palladium Rhodium Nickel Ruthenium Other

  8. Slide 8: Financial review: Financial highlights

    Financial review Financial highlights $ million FY2007 FY2006 Sales 4,375 2,745 Cost of sales (2,365) (1,592) Gross profit 2,010 1,153 Profit before tax 1,558 1,101 Tax (541) (409) Net profit 1,004 686 HEPS (cps) 182 119 DPS (cps) ordinary 136 63 (cps) special - 108 16 8

  9. Slide 9: 5 year capex plan; Operational review

    5 year capex plan Capex of R25 billion planned over next 5 years Oz 000 Rm 3000 7500 2500 6000 IRS Other 2000 Eastern Limb 4500 1500 Zimbabwe 3000 1000 Western Limb 1500 500 0 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Afplats Marula Merensky Zimplats Phase 1 Refinery expansion Smelter expansion 17 Mainte

  10. Slide 10: Safety; Group tonnes milled

    Safety Fatal injury frequency rate Lost-time injury frequency rate (per million man hours) (per million man hours) 0.16 0.14 6 0.12 5 0.1 4 0.08 3 0.06 2 0.04 0.02 1 0 0 FY 03 FY 04 FY 05 FY 06 FY 07 FY03 FY04 FY05 FY06 FY07 19 Group tonnes milled 000t FY2007 FY2006 % change Impala 16,302 16,441 (1)

  11. Slide 11: Group refined platinum production; Group cost per platinum ounce

    Group refined platinum production 000 oz FY2007 FY2006 % change Impala 1,055 1,125 (6) Marula 61 37 65 Mimosa 69 66 5 Zimplats 91 89 2 Other IRS 750 529 42 Group 2,026 1,846 10 21 Group cost per platinum ounce R/oz FY2007 FY2006 % change Impala* (Refined) 5,612 4,584 (22) Marula* (In concentrate) 8,

  12. Slide 12: Group operating margins; South African operations

    Group operating margins % FY 2007 FY 2006 % change Impala 62 53 16 Marula 46 19 150 Zimplats 55 42 31 Mimosa 69 53 31 IRS 13 14 (8) Group 46 42 10 23 South African operations Leeuwkop 24 12

  13. Slide 13: Impala (100%); Marula (77.5%)

    Impala (100%) ƒ Largest single platinum producing entity in the world ƒ Produced 1.055 Moz platinum in FY2007 ƒ 28,000 employees ƒ Life-of-mine of 30 years at 1.1 to 1.2 Moz platinum ƒ Mining ƒ 14 shafts with 5 declines ƒ 2 new shafts under construction ƒ Mineral Processes ƒ Concentrating and smelti

  14. Slide 14: Afplats (100%); Two Rivers (45%)

    Afplats (100%) ƒ R4.2 billion acquisition of Afplats with an effective 74% stake in the Leeuwkop project ƒ Development to begin in FY2008 ƒ Capital expenditure of R3 billion over the next five years ƒ Production of 160,000 ounces of refined platinum per annum scheduled for 2013 27 Two Rivers (45%) ƒ

  15. Slide 15: Zimbabwean operations; Zimplats (86.9%)

    Zimbabwean operations Victoria Falls 29 Zimplats (86.9%) ƒ Largest known platinum resource outside of South Africa ƒ Record platinum production of 96,500 ounces of platinum in matte in FY2007 ƒ Portal 2 underground mine at full production ƒ Opencast operation to be closed during FY2008 ƒ Phase 1 exp

  16. Slide 16: Mimosa (50%); IRS

    Mimosa (50%) ƒ Platinum production of 78,200 ounces in concentrate in FY2007 ƒ Underground production on target ƒ Mill failure led to lower than anticipated production ƒ Wedza Phase V expansion to 95,000 ounces of refined platinum per annum in January 2008 ƒ North Hill block could double production

  17. Slide 17: Corporate issues

    Corporate issues Corporate issues • RBN royalty transaction completed • ESOP implemented • Applications for conversion of mineral rights remain work in progress 34 17

  18. Slide 18: Empowerment transaction; Employee Share Ownership Scheme

    Empowerment transaction • Reinforces strategic relationship with the RBN • RBN have become Implats’ major shareholder • Impala to pay all royalties due and payable to RBN (1 July 2007 onwards) – R12.5 billion • The RBN group to subscribe for 75.1 million Implats shares NET EFFECT • Impala have disch

  19. Slide 19: Conclusion

    Conclusion Conclusion ƒ Fundamentals for PGMs remain solid going forward ƒ Growth profile enhanced to 2.5 million ounces by FY2012 ƒ Processing expansion to support 2.8 million ounces throughput ƒ Safety remains a priority ƒ Highly cash generative ƒ Excellent dividend yield 38 19

  20. Slide 20: Investing in Implats

    Investing in Implats Johannesburg (JSE): IMP London (LSE): IPLA United States (Level 1 ADR): IMPUY 39 Investor Presentation October 2007 20

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