Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Royal Bafokeng Platinum — FY2021 Earnings Presentation
42 slides from Impala Platinum's earnings presentation, 2022
Slide 1: Audited Annual Results for the Year Ended 31 December 2021
AUDITED ANNUAL RESULTS 20 FOR THE YEAR ENDED 31 DECEMBER 2021 22
Slide 2: Audited Annual Results for the Year Ended 31 December 2021
Audited Annual Results for the Year Ended 31 December 2021
Slide 3: Contents
CONTENTS Overview Market review Operational review Financial review Outlook and guidance Appendix
Slide 4: Overview
O1 OVERVIEW LO) 2 : ROYAL BAFOKENG Dattani MORE THAN MINING
Slide 5: Annual highlights: EBITDA, HEPS, dividend and 4E ounces
✓ 28.3% increase in EBITDA to R8 531 million (2020: R6 647 million) ✓ 71.6% increase in HEPS to 2 324.6 cents (2020: 1 354.4 cents) ✓ Final dividend declared of 535.0 cents per share ✓ 11.5% increase in 4E ounces to 467koz (2020: 419koz) ✓ 7.8% increase in cash cost per 4E ounce to R16 770 (2020: R1
Slide 6: Strategic progress: operational excellence, flexibility, growth
> Regrettably one fatality Towards > Styldrift ramp-up well advanced after a 12 year construction period 1 operational excellence > Achieved record production, despite challenging operating conditions OPERATIONAL > Improved performance at Styldrift however, steady state and targeted level of cost ef
Slide 7: Transformation, community and net zero commitments
19.8% of our full-time employees are women and 22% of our management team are women Contribution to host community through investing in education and skills development ESD focus on localising our supplier footprint and building capacity in our host communities 86.3% of our total discretionary procu
Slide 8: Providing safe homes and an investment opportunity for our employees
> Providing safe homes and an investment opportunity for our employees > More than 5 000 people are living in the estate > Constructed a primary and secondary school within the estate > 378 learners have enrolled in the primary school > 368 learners have enrolled in the secondary school > 95% of the
Slide 9: Implats and Northam shareholdings in RBPlat
> First and only community-owned and operated company to list on the JSE > RBPlat is key to consolidation in the region > Our intention is to ensure that the heritage we have created at RBPlat will be preserved Implats *35.31% > Operational synergies > Geographic diversity Northam *34.68% > Consolid
Slide 10: Market Review
O2 MARKET REVIEW ROYAL BAFOKENG CO ii
Slide 11: Global platinum and palladium supply forecast
Global platinum supply forecast Global palladium supply forecast 12.0 12.0 Peak = 10.0 10.0 7.3 8.0 8.0 Peak 6.8 7.0 6.4 6.4 6.0 5.3 6.0 6.4 4.9 5.0 4.6 4.0 4.6 4.0 3.3 2.6 2.6 2.0 3.1 2.0 1.9 1.8 0.0 0.0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2001 2003 2005 2007 2009 2011 2013 2015
Slide 12: 2020-2021 platinum demand change
2020-2021 platinum demand change 8.0 7.0 0.22 0.03 0.002 0.16 0.22 0.20 0.43 0.48 6.0 7.21 7.21 6.99 6.72 6.72 5.84 5.84 5.0 2019 2020 Auto Industrial Jewellery 2021 2022F 2020 China N. America ROW W. Europe Japan 2021 2022F > Total platinum demand rose by 15% to 6.7Moz > Platinum automotive demand
Slide 13: 2020-2021 palladium demand change
2020-2021 palladium demand change 11 10 0.02 0.01 0.01 0.09 0.10 0.29 0.12 -0.01 10.39 10.25 10.25 9 9.49 9.49 9.17 9.17 8 2019 2020 Auto Jewellery Industrial 2021 2022F 2020 ROW China N. America W. Europe Japan 2021 2022F > Palladium automotive demand in 2021 rose by 3.9% to 7.7Moz, an improvement
Slide 14: Operational Review
A O3 a OPERATIONAL REVIEW a wei
Slide 15: Operational performance overview
OPERATIONAL PERFORMANCE FLEXIBILITY > 42.2 km > IMS ratio at BRPM 2.09 > 4 628kt 467koz > Styldrift IMS section ratio > Continued focus on safety initiatives 2 1.40 > 23% VALUE ENHANCEMENT GROWTH > Styldrift focused on operational > 12.1% increase maturity MORE > Concentrator upgrade projects 1 THAN
Slide 16: Safe production and culture of safety remain fundamental to zero harm
SAFE PRODUCTION AND CULTURE OF SAFETY REMAIN FUNDAMENTAL TO OUR ZERO HARM AMBITIONS Total recordable injury frequency rate Serious injury frequency rate Lost time injury frequency rate 2021 performance 12.00 2.00 3.00 1.843 2.808 > Tragically one fatality 10.173 2.475 9.267 during the period 8.643 1
Slide 17: Covid-19 responses
Covid-19 responses > 9 831 employees have been fully vaccinated, equating to approximately 88% of total employees to date > Booster programme rollout initiated > Our Covid-19 protocols have limited the spread of the pandemic and allowed us to manage the impact on our operations Q1 2020 Q2 2020 Q3 20
Slide 18: Increase in mined volumes despite complex operating environment
INCREASE IN MINED VOLUMES DESPITE COMPLEX OPERATING ENVIRONMENT Description Unit 2020 2021 % Var Total tonnes hoisted Total stoping square metres Total development km 36.2 42.2 16.6 5 000 800 4 639 711 BRPM km 30.0 36.6 22.0 4 140 653 Styldrift km 6.2 5.6 (9.7) 4 000 3 792 610 SD 600 SD Total stopin
Slide 19: Increase in 4E metals aligned with higher volumes
INCREASE IN 4E METALS ALIGNED WITH HIGHER VOLUMES Description Unit 2020 2021 % Var Total tonnes milled 4E metals in concentrate Total tonnes milled kt 3 990 4 628 16.0 5 000 500 467 BRPM kt 2 096 2 457 17.2 4 628 419 Styldrift kt 1 894 2 171 14.6 3 990 401 4 000 3 847 400 Merensky kt 3 286 3 546 7.9
Slide 20: Increase in labour in line with project and operational requirements
INCREASE IN LABOUR IN LINE WITH PROJECT AND OPERATIONAL REQUIREMENTS Description Unit 2020 2021 % Var Working cost labour Total labour No. 10 566 10 997 (4.1) 12 000 9 517 9 750 Working cost labour No. 9 517 9 750 (2.4) 8 899 BRPM No. 5 123 5 348 (4.4) 8 000 Styldrift No. 3 395 3 323 2.1 Central and
Slide 21: Complex operating environment and higher volumes reflected in costs
COMPLEX OPERATING ENVIRONMENT AND HIGHER VOLUMES REFLECTED IN COSTS Description Unit 2020 2021 % Var Cost control initiatives > Review major supply chain contracts Total cash operating cost R'm 6 513 7 829 (20.2) > Improvement of cost management systems and processes Cash operating cost/tonne milled
Slide 22: BRPM unit costs reflect increased development to support UG2 transition
BRPM UNIT COSTS REFLECT INCREASED DEVELOPMENT TO SUPPORT UG2 TRANSITION Cash operating cost/4E ounce Description Unit 2020 2021 % Var 17 500 15 599 BRPM cash operating cost R'm 3 160 3 883 (22.9) 15 000 14 141 12 562 Cash operating cost/tonne milled R/t 1 508 1 581 (4.8) 12 500 Cash operating cost/4
Slide 23: Styldrift unit costs still to accrue economy of scale benefits
STYLDRIFT UNIT COSTS STILL TO ACCRUE ECONOMY OF SCALE BENEFITS Cash operating cost/4E ounce Description Unit 2020 2021 % Var 20 000 18 108 17 185 Styldrift cash operating cost R'm 3 353 3 946 (17.7) 17 500 16 504 Cash operating cost/tonne milled R/t 1 770 1 818 (2.7) 15 000 Cash operating cost/4E oz
Slide 24: Capital expenditure
Description Unit 2020 2021 % Var Stay-in-business R497 million for 2021 capital > 6.3% of total operating cost Stay-in-business capital (SIB) R'm 374 497 32.9 Replacement R648 million for 2021 SIB % of total operating cost % 5.7 6.3 10.5 capital > Ongoing ore-reserve development Replacement capital
Slide 25: Styldrift tonnes hoisted and efficiency
Tonnes hoisted per month 250 Production target: 230 kilo-tonnes per month hoisted 200 > Consistent year-on-year increases in hoisted tonnes 150 ktpm > 220ktpm run-rate achieved during 100 Q3 2021 50 > Focus on pursuing operational maturity to achieve incremental improvements to meet 230ktpm steady s
Slide 26: Operational maturity: a high performance culture
Road to improvement 7.6ktpd a high performance culture Operational maturity through embedding 7.3ktpd Baseline daily Blasting Labour Trackless Target tonnes (Q3 2021) Efficiency Efficiency Efficiency Audited Annual Results for the Year Ended 31 December 2021
Slide 27: BRPM tailings storage facility, Maseve MF2 upgrade, project studies
1 BRPM tailings storage facility 2 Maseve MF2 upgrade 3 Project studies > Construction progressed steadily during > Project was impacted by Covid-19 > Styldrift life-of-mine optimisation study the period related delays > Concentrator optimisation > Commission date remains Q1 2022 > Forecast for comp
Slide 28: Operational priorities going forward
Operational stability Styldrift operational maturity Cost management and control Continue developing operational flexibility Environmental, social and governance stewardship Audited Annual Results for the Year Ended 31 December 2021
Slide 29: Financial Review
O04 FINANCIAL REVIEW ROYAL BAFOKENG CO ii
Slide 30: Income statement summary and EBITDA
YoY 4E Ounces Description Unit 2021 2020 % change 500 467 450 400 Revenue R’m 16 429 13 379 22.8 350 328 300 koz Cost of sales R’m (9 637) (7 949) (21.2) 250 200 150 Gross profit R’m 6 791 5 431 25.1 100 50 0 Other income and expenses R’m 1 062 193 450.4 2017 2018 2019 2020 2021 Administrative expen
Slide 31: Earnings and dividends per share
YoY Description Unit 2021 2020 % change Attributable comprehensive income R’m 6 510 3 529 84.5 Less: Profit on disposal of PPE and other assets R’m (22) (40) 45.9 Headline earnings R’m 6 488 3 489 86.0 Weighted average number of shares outstanding # million 279 258 8.2 Basic earnings per share Cents
Slide 32: Revenue growth supported by strong PGM basket price and volumes
REVENUE GROWTH SUPPORTED BY STRONG PGM BASKET PRICE AND VOLUMES YoY Revenue contribution Description Unit 2021 2020 % change 4.3% 1.3% 0.4% Average basket price R/Pt oz 54 698 47 892 14.2 2.0% 3.6% 24.8% Average basket price R/4E oz 35 216 31 062 13.4 Average R:US$ exchange rate R:US$ 15.00 16.34 (8
Slide 33: Cost of sales and administrative expenses
YoY Drivers of cost of sales* Description Unit 2021 2020 % change Cost of sales R’m (9 637) (7 949) (21.2) Cost of sales (excl. depreciation and amortisation) R’m (8 375) (6 867) (22.0) 37% 39% 2021 Depreciation and amortisation R’m (1 311) (1 265) (3.6) 16% 8% Increase in inventories R’m 49 183 (73
Slide 34: BRPM and Styldrift segment results
RBR BRPM Styldrift operations Description mining mining segments segment segment 2021 RBR operational EBITDA (2017 to 2021) Full year ended 31 December 2021 R’m R’m R’m 9 000 Revenue 16 429 9 294 7 135 8 000 3 080 7 000 Cost of sales (9 446) (4 486) (4 959) R’million 6 000 2 351 Cash cost of sales e
Slide 35: Cash flow summary
YoY Description Unit 2021 2020 % change Cash generated from operating activities R’m 5 700 5 826 (2.2) - Cash generated from operations less interest R’m 9 030 3 802 137.4 - Proceeds from the gold streaming transaction R’m - 2 094 (100.0) - Dividend and taxation paid R’m (3 329) (70) NM Cash utilise
Slide 36: 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 37: Strong liquidity and funding; R3.5 billion capital return
> Strong liquidity and funding > Total of R3.5 billion capital return for the period Note: * Audited Annual Results for the Year Ended 31 December 2021
Slide 38: Finance review summary and focus areas
> Continued transformation > Strong financial > Discipline in > Finance focus areas of Royal Bafokeng Platinum performance capital allocation for 2022 and beyond • Delivered 22.4% return on • EBITDA of R8 531 million • Maintain robust • Close monitoring capital employed (2020: R6 647 million) balanc
Slide 39: Outlook and Guidance
g O5 OUTLOOK AND ; GUIDANCE ¥ 16-7. ROYAL BAFOKENG COR
Slide 40: 2022 production, cost and capex guidance
> Styldrift to reach steady state run rate in 2022 > UG2 is expected to contribute approximately 58% of BRPM’s total volumes > Production is forecast to be between 4.65Mt and 4.90Mt, yielding between 485koz and 505koz 4E metals in concentrate > Forecast built-up head grade of 3.90g/t (4E) > Total ca
Slide 41: Appendix
O04 APPENDIX ROYAL BAFOKENG CO ii
Slide 42: Headline earnings per share bridge 2020 to 2021
Cents per share 250 500 750 1 000 1 250 1 500 1 750 2 000 2 250 2 500 0 Headline earnings per share '20 1 354.4 Revenue - volume increase 756.6 Headline earnings per share Audited Annual Results for the Year Ended 31 December 2021 Revenue - exchange rate (462.6) Revenue - metal prices 779.4 Cost - v
Royal Bafokeng Platinum — FY2021 Earnings Presentation on 6ix