Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Royal Bafokeng Platinum — FY2022 Earnings Presentation
37 slides from Impala Platinum's earnings presentation, 2023
Slide 1: Annual Results for the year ended 31 December 2022
ANNUAL RESULTS 20 FOR THE YEAR ENDED 31 DECEMBER 2022 23
Slide 2: Audited Annual Results for the year ended 31 December
Audited Annual Results for the year ended 31 December
Slide 3: Contents
CONTENTS Overview Market review Operational review Financial review Outlook and guidance
Slide 4: Overview
OVERVIEW TIN O1
Slide 5: Human, Financial and Manufactured Capital highlights
Human Capital Financial Capital Manufactured Capital ˃ One fatality (2021: one fatality) ˃ EBITDA of R5 993.9 million ˃ 3.1% decrease in 4E built-up head grade to ˃ Three million fatality-free shifts on 22 July 2022 (2021: R8 530.6 million) 3.74g/t (2021: 3.86g/t) ˃ 28.0% improvement in our serious
Slide 6: Major shareholders as at 31 December 2022
Major shareholders as at 31 December 2022 ˃ Both Impala Platinum Holdings Limited (Implats) and Northam Platinum Holdings Limited (Northam) have significant holdings in RBPlat Implats Northam ˃ Implats made a mandatory offer to all RBPlat shareholders in January 2022 40.71% 34.52% ˃ Northam released
Slide 7: Women in mining and workforce
˃ Women make up 14.9% of our total workforce ˃ 60% of our executive committee members are black women ˃ RBPlat established a Women in Mining Committee in May 2022 to oversee the interests of women, as well as gender equality across RBPlat • Current membership of the Committee includes junior employe
Slide 8: Schools and employee housing estate
˃ We partnered with the North West province’s Department ˃ Together, RBPlat and the DoE have invested of Education (DoE) for the construction of primary and approximately R151.2 million in the schools to date secondary schools at the Waterkloof Hills Estate, ˃ Our employee housing estate provides a
Slide 9: Discretionary procurement with HD businesses
16.4% increase in 87.0% of our total 45.0% of our total discretionary procurement discretionary procurement discretionary procurement spent with HD businesses was spent with HD was spent with local* HD businesses businesses ˃ Our focus on increasing our discretionary procurement from women-owned bus
Slide 10: Climate change roadmap and environmental initiatives
˃ Developed a climate change ˃ We are in the process of reviewing roadmap to determine how we the five-year efficiency targets we set will achieve net zero by 2050 for each of our operations in 2020 to align with operational changes ˃ We applied the Science Based Target Initiative’s and net zero ˃ T
Slide 11: Market Review
O02 MARKET REVIEW ROYAL BAFOKENG. PLATINUM NORE THAN MINING.
Slide 12: Global platinum and palladium supply forecast
Global platinum supply forecast Global palladium supply forecast 10.0 12.0 Peak = 2.9 1.9 10.0 8.0 7.3 1.6 2.9 Peak 6.8 6.2 6.3 8.0 7.2 6.0 6.9 5.3 5.8 4.7 6.4 4.9 6.0 6.4 4.9 4.0 4.2 4.0 3.1 3.3 2.6 2.8 2.0 2.5 2.0 1.9 1.8 0.0 0.0 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023F 2003 2005 20
Slide 13: 2021-2022 platinum demand change
2021-2022 platinum demand change 8.0 0.24 0.03 0.18 0.19 0.00 7.0 -0.07 -0.09 -0.12 6.0 7.15 7.15 6.93 6.93 6.75 6.75 6.00 5.0 2020 2021 Auto Industrial Jewellery 2022 2023F 2021 ROW* N. America Japan China W. Europe 2022 2023F > Global platinum demand increased by 3% to 6.9Moz in 2022 > Platinum au
Slide 14: 2021-2022 palladium demand change
2021-2022 palladium demand change 11 10 0.07 0.21 0.01 0.13 0.07 -0.06 -0.14 -0.12 9 9.45 9.53 9.40 9.45 9.53 9.40 9.27 8 2020 2021 Auto Jewellery Industrial 2022 2023F 2021 ROW N. America China Japan W. Europe 2022 2023F > Total palladium demand grew by 1% to 9.5Moz > Palladium automotive demand in
Slide 15: Operational Review
A O3 OPERATIONAL REVIEW
Slide 16: Safety, operational sustainability and operating environment
Safety Operational sustainability > 1 fatality recorded > Mining and concentrator optimisation > Improvement across all > TSF deposition capacity until 2042 non-fatal-injury metrics > Value-enhancing projects > Continued focus on safety initiatives > Green energy transition Operating environment Fle
Slide 17: Safety first: our commitment to achieving zero harm
SAFETY FIRST: OUR COMMITMENT TO ACHIEVING ZERO HARM Total injury frequency rate Lost time injury frequency rate Serious injury frequency rate 2022 performance 10.000 2.500 1.200 > Tragically one fatality was Number of fatalities 0.972 recorded during the 2022 period 1.943 1.000 8.000 2.000 7.139 6.6
Slide 18: Strong BRPM performance with challenging Styldrift ramp-up
STRONG BRPM PERFORMANCE WITH CHALLENGING STYLDRIFT RAMP-UP Description Unit 2021 2022 % Var Total tonnes hoisted Total stoping square metres Total development km 42.2 43.6 3.3 5 000 4 639 4 592 800 711 709 BRPM km 36.6 37.0 1.1 4 500 4 140 700 653 Styldrift km 5.6 6.6 17.9 4 000 SD 600 SD SD SD Tota
Slide 19: Increased tonnes treated through RBPlat concentrators
INCREASED TONNES TREATED THROUGH RBPLAT CONCENTRATORS Description Unit 2021 2022 % Var Total tonnes milled 4E metals in concentrate Total tonnes milled kt 4 628 4 600 (0.6) 5 000 500 4 628 467 BRPM kt 2 457 2 622 6.7 4 600 449 419 Styldrift kt 2 171 1 978 (8.9) 3 990 4 000 400 Merensky kt 3 546 3 17
Slide 20: Labour in line with project and operational requirements
LABOUR IN LINE WITH PROJECT AND OPERATIONAL REQUIREMENTS Description Unit 2021 2022 % Var Working cost labour 12 000 Total labour No. 10 997 11 065 (0.6) 9 750 10 061 9 517 Working cost labour No. 9 750 10 061 (3.2) 9 000 BRPM No. 5 348 5 470 (2.3) Styldrift No. 3 323 3 506 (5.5) No. 6 000 Central a
Slide 21: Inflationary environment and operational challenges reflected in costs
INCREASED INFLATIONARY ENVIRONMENT AND OPERATIONAL CHALLENGES REFLECTED IN COSTS Description Unit 2021 2022 % Var Cost control initiatives > Implement renegotiated bulk supply and volume contracts Total cash operating cost R'm 7 829 9 187 (17.3) > Improvement of cost management systems and processes
Slide 22: BRPM cash operating cost per 4E ounce
Cash operating cost/4E ounce Description Unit 2021 2022 % Var 20 000 BRPM cash operating cost R'm 3 883 4 544 (17.0) 17 066 16 000 15 599 Cash operating cost/tonne milled R/t 1 581 1 733 (9.6) 14 141 Cash operating cost/4E oz R/oz 15 599 17 066 (9.4) 12 000 R/4E oz Cash operating cost/6E oz R/oz 13
Slide 23: Styldrift cash operating cost per 4E ounce
Cash operating cost/4E ounce Description Unit 2021 2022 % Var 30 000 25 419 Styldrift cash operating cost R'm 3 946 4 643 (17.7) 25 000 Cash operating cost/tonne milled R/t 1 818 2 348 (29.2) 20 000 18 108 Cash operating cost/4E oz R/oz 18 108 25 419 (40.4) 17 185 R/4E oz Cash operating cost/6E oz R
Slide 24: Capital expenditure
Description Unit 2021 2022 % Var > Styldrift increase in TMM rebuilds Stay-in-business capital (SIB) R'm 497 743 (49.5) > BRPM Mine increased development in line with UG2 ramp up SIB % of total operating cost % 6.3 8.1 (28.6) > Concentrator’s mill re-lining and BRPM tertiary crusher circuit upgrade
Slide 25: Operational maturity key to Styldrift achieving targets
OPERATIONAL MATURITY KEY TO STYLDRIFT ACHIEVING OPERATIONAL PRODUCTION AND EFFICIENCY TARGETS Performance Tonnes hoisted per month Steady LABOUR 250 State: 230 EFFICIENCY > Steady build-up despite a disappointing 2022 performance as a result of: 200 > Deterioration in key productivity drivers ORE GE
Slide 26: Execution and evaluation projects
Mines Concentrators Strategic > BRPM UG2 ore-reserve development > Talent and skills management Execution > BRPM and Maseve TSF optimisation > Styldrift Merensky ore-reserve > KAELO digital roll-out development > BRPM primary crusher refurbishment > Wi-fi and data network footprint > Waterkloof hous
Slide 27: Operational stability, cost management and Styldrift maturity
01 Operational stability and flexibility 02 Cost management and control 03 Styldrift operational maturity 04 Environmental, social and governance stewardship Audited Annual Results for the year ended 31 December
Slide 28: Financial Review
O04 FINANCIAL REVIEW ROYAL BAFOKENG Diririnicn
Slide 29: RBPlat remains profitable amid operational and economic challenges
RBPLAT REMAINS PROFITABLE AMID OPERATIONAL AND ECONOMIC CHALLENGES Revenue decrease mainly due to: YoY > 3.9% decrease in production volumes Description Unit 2022 2021 % change Cost of sales higher vs 2021 mainly as a result of: Revenue R’m 15 911 16 429 (3.1) > Higher than CPI mining inflation > In
Slide 30: Headline earnings and earnings per share
YoY Headline earnings Description Unit 2022 2021 > In addition to the changes in sales and cost of % change sales, a significant increase in the income tax Attributable comprehensive income R’m 3 321 6 510 49.0 expense from R541 million to R1 101 million further impacted headline earnings. This was
Slide 31: Stable basket price despite weakening PGM price environment
STABLE BASKET PRICE DESPITE WEAKENING PGM PRICE ENVIRONMENT YoY Weakening price environment Description Unit 2022 2021 % change > 2022 saw a significant decline in the prices of all 4E metals except Average basket price R/Pt oz 55 875 54 698 2.1 for palladium > Despite these declines, the basket pri
Slide 32: Cost of sales and administrative expenses
YoY Drivers of cost of sales** Description Unit 2022 2021 % change Cost of sales R’m (11 669) (9 619)* (21.3) Cost of sales (excl. depreciation and amortisation) R’m (10 344) (8 357)* (23.8) 39% 37% 2022 Depreciation and amortisation R’m (1 373) (1 311) (4.7) 8% 16% Increase in inventories R’m 47 49
Slide 33: BRPM and Styldrift segment performance
Strong operational performance from BRPM offset by a weaker RBR BRPM Styldrift Styldrift performance Description operations mining mining > BRPM contributed 266koz of 4E production, up 7.0% while segments segment segment Styldrift’s 4E production down 16.2% to 183koz 2022 > Cost of sales increased a
Slide 34: Cash flow
YoY Cash generated from operating Description Unit 2022 2021 activities reduced mainly due to: % change > Significant increase in cash costs Cash generated from operating activities R’m 1 642 5 700 (71.2) > Reduction in production, which had - Cash generated from operations less interest R’m 4 895 9
Slide 35: Dividend and capital returns
> Notwithstanding the challenging macroeconomic outlook, the weakening PGM prices, and the difficult operating environment, we remained profitable, and our balance sheet remained strong. > The Board followed a balanced approach where a dividend declared: > The Board therefore considered: >
Slide 36: Outlook and Guidance
g O5 OUTLOOK AND : GUIDANCE T 4. ROYAL BAFOKENG Diririncr
Slide 37: Outlook and guidance
OUTLOOK AND GUIDANCE > The corporate action currently under way since the fourth quarter of 2021 could continue well into the latter part of 2023. Should this be the case, RBPlat could potentially be at risk of not being able to execute its strategy as effectively and efficiently as possible > Price
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