Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — H1 2006 Earnings Presentation

18 slides from Impala Platinum's earnings presentation, Feb 16, 2006

  1. Slide 1: Interim Results Presentation: Key Features – Financial

    INTERIM RESULTS PRESENTATION 16 FEBRUARY 2006 KEY FEATURES – FINANCIAL • Sales revenue rose by 28% to HEPS cps R7.9 billion for six months 5,000 • Headline earnings increased by 78% 4,000 3,000 H2 to R28.06 cents per share 2,000 1,000 • Interim dividend doubled 0 H1 H1 to R10.00 per share FY2005 H1

  2. Slide 2: Key Features – Operational and Corporate

    KEY FEATURES - OPERATIONAL • Gross platinum production rose by 7% to 938,000 ounces Gross refined platinum production oz • Group gross margin of 42% 1,000,000 • Group unit costs 900,000 • increased by only 4,2% in rands, 800,000 down by 0.3% in dollars 700,000 • Two-year wage settlement 600,000 achi

  3. Slide 3: The Market: Sales Volumes by Metal

    THE MARKET SALES VOLUMES BY METAL H1 2006 H1 2005 % change FY2005 Platinum (000oz) 833 803 4 1,562 Palladium (000oz) 440 394 12 826 Rhodium (000oz) 93 91 2 177 Nickel (000t) 6.7 7.0 (4) 14.6 6 3

  4. Slide 4: Prices Achieved by Metal; Platinum Supply and Demand

    PRICES ACHIEVED BY METAL H1 2006 H1 2005 % change FY2005 Platinum ($/oz) 911 829 10 840 Palladium ($/oz) 207 221 (6) 208 Rhodium ($/oz) 2,260 1,001 126 1,217 Nickel ($/t) 14,218 13,945 2 14,592 $ revenue per Pt oz 1,452 1,227 18 1,279 Exchange rate (ave) 6.49 6.21 4.5 6.20 R revenue per Pt oz 9,423

  5. Slide 5: Palladium and Rhodium Supply and Demand

    PALLADIUM SUPPLY AND DEMAND 1200 800 900 700 600 600 Price ($/Oz) 500 ('000 Oz) 300 400 0 300 (300) 200 (600) 100 (900) 0 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 (Deficit)/Surplus Pd Price 9 RHODIUM SUPPLY AND DEMAND 200 3000 2500 150 2000 Price ($/Oz) 100 ('000 Oz) 1500 50 1000 0 500 (50) 0 CY99 CY

  6. Slide 6: Looking Forward; Financial Review

    LOOKING FORWARD Platinum • Automotive and industrial applications will continue to drive demand for the rest of decade • Slower supply ramp-up could be a factor Palladium • Jewellery application growing - consumer acceptance unclear • Substitution ongoing - gasoline engines now the domain of palladi

  7. Slide 7: Group Income Statement; Operating Margins

    GROUP INCOME STATEMENT R million H1 2006 H1 2005 % change FY2005 Sales 7,920 6,188 28 12,541 Cost of sales (4,615) (4,167) (11) (8,318) Gross profit 3,305 2,022 64 4,223 Share of profit of 41 204 (80) 204 associates Royalty expenses (379) (231) (64) (415) Profit before tax 2,769 3,372 (18) 6,334 Pro

  8. Slide 8: Headline Profit by Entity; Cash Flows

    HEADLINE PROFIT BY ENTITY R million H1 2006 H1 2005 % change Impala 1,501 872 72 IRS 224 77 191 Marula (9) (34) 74 Zimplats 74 52 42 Mimosa 79 51 55 Lonplats - 36 - Aquarius 41 (3) 1,467 Ambatovy (68) - - Headline profit 1,842 1,051 75 15 CASH FLOWS Rm Cash at end of period 5,000 4,000 3,000 2,000 1

  9. Slide 9: Group Capex; Other Accounting Items

    GROUP CAPEX • Capex in excess of R11 billion planned over next five years Rm 3000 2500 2000 1500 1000 500 0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 17 OTHER ACCOUNTING ITEMS • RBN announcement – no impact at interim stage • Headline and basic earnings reconciliation • Adoption of various ac

  10. Slide 10: Cash Distribution - Special Dividend

    CASH DISTRIBUTION - SPECIAL DIVIDEND • Special dividend of R55 per Implats share • Distribution to shareholders – R3.6 billion • STC of R450 million payable 19 OPERATIONAL REVIEW 10

  11. Slide 11: Group Safety; Tonnes Milled

    GROUP SAFETY Fatality Frequency Rate Lost Time Injury Frequency Rate 0.250 12.00 10.00 0.200 8.43 (per million man hours) (per million man hours) 7.90 0.158 8.00 0.150 0.139 0.134 6.00 5.65 0.104 0.093 4.80 0.100 3.57 3.69 0.069 4.00 0.050 2.00 0.000 0.00 FY'01 FY'02 FY'03 FY'04 FY'05 H1 06 FY'01 FY

  12. Slide 12: Refined Platinum Production; Cost per Platinum Ounce

    GROUP OPERATIONAL REVIEW – REFINED PLATINUM PRODUCTION 000 oz H1 2006 H1 2005 % change FY2005 Impala 591 547 8 1,115 Marula 18 21 (14) 31 Mimosa 35 28 25 61 Zimplats 45 39 15 82 Other IRS 249 245 2 559 Group 938 880 7 1,848 23 GROUP OPERATIONAL REVIEW – COST PER PLATINUM OUNCE R/oz H1 2006 H1 2005 %

  13. Slide 13: Operational Review – Impala and Marula

    OPERATIONAL REVIEW – IMPALA • Record performance • Recoveries up 2.5% to 85% • Drill jig implementation – 6% efficiency improvement • BMR and PMR expansions to 2Moz platinum completed • PMR expansion to 2.3Moz platinum approved • 16 and 20 shafts ahead of schedule 25 OPERATIONAL REVIEW – MARULA • Ca

  14. Slide 14: Operational Review – Zimplats and Other

    OPERATIONAL REVIEW – ZIMPLATS • Transition to underground Grade 3.7 mining operations underway 3.5 3.3 g/t • Feasibility study on 3.1 2.9 expansion to 145,000 ounces 2.7 platinum to be submitted to Apr - Jun Jul - Sep Oct - Dec Opencast Underground May board Tonnes mined • Incremental growth planned

  15. Slide 15: Corporate Issues: BEE and the Mining Charter

    CORPORATE ISSUES BEE AND THE MINING CHARTER • First conversion of old to new order prospecting rights granted • Conversion applications for mining rights at Impala and Marula in final stages of approval 30 15

  16. Slide 16: BEE and the Mining Charter; Quiet Success in Zimbabwe

    BEE AND THE MINING CHARTER • Calculations subject to DME confirmation Impala Platinum RBR % Existing shareholding 2.4 Current transaction 12.3 From ESOP 4.7 From Incwala transaction 7.1 Total 26.5 Marula Platinum Mmakau Mining 10.0 Community Trust 5.0 Local business interests 5.0 Total 20.0 31 QUIET

  17. Slide 17: Prospects

    PROSPECTS Prospects • Robust PGM market 2500 • Increase in production to 2000 2.3 million platinum ounces by FY2010 on track 1500 000 oz • Significant further upside 1000 potential in Zimbabwe 500 • Safety, cost containment and 0 FY00 FY05 FY10 grade management remain Mine to market 3rd party proces

  18. Slide 18: Earnings guidance for full year

    on the basis of current and expected exchange rates and metal prices, and excluding the impact of the BEE transaction but including the impact of STC on the special dividend, headline earnings for the full year are expected to be 20-30% higher than those for the last financial year 18

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