Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Royal Bafokeng Platinum — H1 2023 Earnings Presentation
33 slides from Impala Platinum's earnings presentation, August 2023
Slide 1: Condensed Consolidated Interim Results
CONDENSED CONSOLIDATED INTERIM RESULTS 20 FOR THE SIX MONTHS ENDED 30 JUNE 2023 23
Slide 2: Disclaimer
DISCLAIMER This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements beliefs or opinions including statements with respect to the Company's business financial condition and results of operations. These statements which contain
Slide 3: Contents
CONTENTS Overview Market review Operational review Financial review Outlook and guidance
Slide 4: Overview
OVERVIEW TIN O1
Slide 5: Human and Social, Financial, Operational, Natural highlights
Human and Social Financial ˃ 184.6% deterioration in our serious injury ˃ EBITDA of R507.4 million (H1 2022: R3 406.1 frequency rate million) ˃ R3.1 billion discretionary procurement spend ˃ HLPS of 113.8 cents (H1 2022: HEPS of 767.3 with HD1 businesses cents) ˃ 46.0% of our total discretionary pro
Slide 6: Social investment and enterprise development
˃ The focus of our social investment ˃ Year-to-date, six candidates have remains on education support, completed their theoretical and portable skills development, health practical training at Thojane Farming and agricultural support Institution ˃ We spent R116.6 million on SLP ˃ A cooperative has b
Slide 7: Climate change risk assessments and decarbonisation
We conduct climate change risk assessments as part of our Enterprise Risk Management processes We have embarked on our decarbonisation journey and aim to reach net zero by 2050 All identified energy efficiency initiatives including projected production are under review to determine the impact on our
Slide 8: A conclusion to the corporate action
A CONCLUSION TO THE CORPORATE ACTION > Impala Platinum Holdings Limited (Implats) Mandatory Offer to RBPlat shareholders has closed and Implats holds 98.73%' of RBPlat > Implats intends te invoke section 124(1) of the Companies Act, in order to compulsorily acquire all of the RBPlat Shares not alrea
Slide 9: Market Review
Q2 MARKET REVIEW pee
Slide 10: PGM market review
˃ Decrease in PGM basket price due to lower rhodium prices ˃ Fundamentals for platinum are positive compared to palladium ˃ South African PGM production forecast to increase in 2023 ˃ Eskom loadshedding remains a downside risk to South African production ˃ Platinum market forecast to be in a deficit
Slide 11: Operational Review
A O3 OPERATIONAL REVIEW
Slide 12: RBPlat Strategic Pillars
RBPlat Strategic Pillars Safety Operating environment > 1 fatality recorded > Basket price under severe pressure, 1. Towards > Improvement in TIFR but increased down 23.6% year-on-year operational excellence injury severity > Inflationary cost pressures > Continued focus on safety initiatives > Elec
Slide 13: Zero harm – safety remains anchored around RBPlat values
ZERO HARM – SAFETY REMAINS ANCHORED AROUND RBPLAT VALUES Total injury frequency rate Lost time injury frequency rate Serious injury frequency rate 2023 performance 10.000 2.500 1.400 Number of fatalities 2.289 1.184 > Tragically one fatality was 8.148 1.200 8.000 7.499 2.000 recorded during the repo
Slide 14: Consistent BRPM performance as Styldrift focuses on production fundamentals
CONSISTENT BRPM PERFORMANCE AS STYLDRIFT CONTINUES TO FOCUS ON PRODUCTION FUNDAMENTALS Description Unit H1 2021 H1 2022 H1 2023 % Var Total tonnes hoisted Total stoping square metres Total development km 19.2 20.6 21.9 6.3 2 500 400 2 333 BRPM km 16.5 17.9 18.1 1.1 2 299 352 351 2 158 350 Styldrift
Slide 15: Improved milling performance at BRPM and Maseve
IMPROVED MILLING PERFORMANCE AT BRPM AND MASEVE Description Unit H1 2021 H1 2022 H1 2023 % Var Total tonnes milled 4E metals in concentrate Total tonnes milled kt 2 160 2 304 2 360 2.4 2 500 250 2 360 BRPM kt 1 172 1 265 1 295 2.4 2 304 226 220 2 160 216 Styldrift kt 988 1 039 1 065 2.5 2 000 200 Me
Slide 16: Labour aligned with project and operational requirements
LABOUR ALIGNED WITH PROJECT AND OPERATIONAL REQUIREMENTS Description Unit H1 2021 H1 2022 H1 2023 % Var Working cost labour 12 000 Total labour No. 10 518 11 130 11 107 0.2 10 224 9 547 9 864 Working cost labour No. 9 547 9 864 10 224 (3.6) 10 000 BRPM No. 5 147 5 368 5 480 (2.1) 8 000 Number Styldr
Slide 17: Persistent inflationary pressure continues to impact costs
PERSISTENT INFLATIONARY PRESSURE CONTINUES TO IMPACT COSTS Description Unit H1 2021 H1 2022 H1 2023 % Var Cost control initiatives > Improve production performance and quality to achieve Total cash operating cost R'm 3 592 4 325 5 040 (16.5) economies of scale Cash operating cost/tonne milled R/t 1
Slide 18: BRPM cash operating cost per 4E ounce
Cash operating cost/4E ounce Description Unit H1 2021 H1 2022 H1 2023 % Var 24 000 BRPM cash operating cost R'm 1 795 2 144 2 458 (14.6) 20 000 19 538 Cash operating cost/tonne milled R/t 1 531 1 695 1 898 (12.0) 16 949 16 000 15 452 Cash operating cost/4E oz R/oz 15 452 16 949 19 538 (15.3) R/4Eoz
Slide 19: Styldrift cash operating cost per 4E ounce
Cash operating cost/4E ounce Description Unit H1 2021 H1 2022 H1 2023 % Var 30 000 27 471 Styldrift cash operating cost R'm 1 797 2 182 2 582 (18.3) 25 000 22 037 Cash operating cost/tonne milled R/t 1 820 2 099 2 423 (15.4) 20 000 18 045 Cash operating cost/4E oz R/oz 18 045 22 037 27 471 (24.7) R/
Slide 20: Capital expenditure
Description Unit H1 2021 H1 2022 H1 2023 % Var > Styldrift TMM swing unit purchases Stay-in-business capital (SIB) R'm 173 303 355 (17.2) > BRPM Mine increased development in line with UG2 ramp-up SIB % of total operating cost % 4.8 7.0 7.0 - > Concentrator’s jaw crusher overhauls and spares purchas
Slide 21: Leveraging production enablers is key to realising Styldrift potential
LEVERAGING PRODUCTION ENABLERS IS KEY TO REALISING STYLDRIFT POTENTIAL 250 100 Average tonnes 200 80 Enabling environment and Marked improvement of 29% in hoisted per availability 60 specialised skills development Labour 150 month tonnes hoisted over Q1-23 for (%) 40 programmes to enhance kt 100 Q2-
Slide 22: Evaluation and execution priorities
Mines Concentrators More than mining > BRPM UG2 ore-reserve development > BRPM TSF completion > Talent and skills development Execution > Styldrift Merensky ore-reserve > Maseve MF2 HIG Mill optimisation > On-going educational support at development Waterkloof schools > Primary and tertiary crusher
Slide 23: Safety and ESG, cost management, resource efficiencies
01 Safety and ESG 02 Cost management and control 03 Optimise resource efficiencies 04 Operational stability and flexibility 05 Quality enhancement
Slide 24: Financial Review
04 FINANCIAL REVIEW
Slide 25: Weaker PGM price environment, lower volumes and increase in costs impacts profitability
WEAKER PGM PRICE ENVIRONMENT, LOWER VOLUMES AND INCREASE IN COSTS IMPACTS PROFITABILITY Revenue decreased mainly due to: 6 months 6 months Year ended 31 > Decline in PGM prices ended ended YoY December > 2.5% decrease in 4E ounces produced Description Unit 30 June 2023 30 June 2022 % change 2022 Cos
Slide 26: Headline and basic earnings
Headline and basic 6 months 6 months Year ended 31 earnings regressed due to ended ended YoY December > Decrease in revenue Description Unit 30 June 2023 30 June 2022 % change 2022 > Increase in costs > Decrease in tax mainly due Attributable comprehensive (loss)/income R’m (340) 2 213 (115.3) 3 321
Slide 27: Decline in rhodium prices impacting basket price
DECLINE IN RHODIUM PRICES IMPACTING BASKET PRICE 6 months 6 months Weakening price environment ended ended Year ended 30 June 30 June YoY 31 December > H1 2023 saw a significant decline in the prices of all 4E metals except Description Unit 2023 2022 % change 2022 for gold. The most significant decl
Slide 28: Drivers of cost of sales
Drivers of cost of sales** 6 months 6 months Year ended 31 ended ended YoY December Description Unit 30 June 2023 30 June 2022 % change 2022 36% 40% Cost of sales R’m (6 200) (5 386)* (15.1) (11 669) H1 2023 Cost of sales (excl. depreciation and amortisation) R’m (5 465) (4 829)* (13.2) (10 344) 8%
Slide 29: BRPM's steady performance offset by weaker Styldrift performance
BRPM’s steady operational performance offset by a weaker Styldrift performance RBR operations BRPM mining Styldrift mining > BRPM contributed 125.8koz of 4E production, a decrease of 0.6% while Styldrift’s 4E production decreased by 5.1% to 94.0koz Description segments 2023 segment segment > Cost of
Slide 30: Cash flow
6 months 6 months Cash generated from operating ended 30 June ended 30 June YoY Year ended 31 activities reduced mainly due to: Description Unit 2023 2022 % change December 2022 > Decline in revenue due to lower Cash generated by operating activities* R’m 980 1 065 (8.0) 1 642 production and PGM bas
Slide 31: Cash of R4.5 billion at end of period
> Cash of R4.5 billion at the end of the period (2022: R4.4 billion) > Debt facilities of R3 billion available at period end > Global economic uncertainty and declining PGM prices results in a focus on cash preservation with no dividend declared Cash balances 4 898.4 4 883.8 5 000 4 538.4 4 500 4 35
Slide 32: Outlook and Guidance
8 O5 OUTLOOK AND : GUIDANCE Y .5~ ROYAL BAFOKENG Ditariiti
Slide 33: Guidance
> > safety culture remains key > Guidance • Full-year production remains forecast to be between 4.65Mt and 4.90Mt at a grade of 3.78g/t to 3.80g/t 4E, yielding 470koz to 490koz 4E metals in concentrate • Total cash operating cost per 4E ounce is forecast to be between R19 750 and R20 500 for the Gro
Royal Bafokeng Platinum — H1 2023 Earnings Presentation on 6ix