Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — H1 FY2008 Earnings Presentation

20 slides from Impala Platinum's earnings presentation, Feb 14, 2008

  1. Slide 1: Interim Results FY2008: Group key features - financial

    Empowering our people, growing our production Interim Results FY2008 14 February 2008 Group key features - financial • Sales revenue up 10% to R16.3 billion (US$2.4 billion) Heps (cents) 900 • Earnings up 7% to a record R4.7 billion (US$0.7 billion) 600 • Headline earnings of R7.71 per share 300 • I

  2. Slide 2: Group key features - operational

    Group key features - operational • Unsatisfactory safety performance despite improvement in LTIFR • Good performance by Impala Rustenburg • Record refined platinum production of 1.03 million ounces • Gross margin at 47% • Unit costs up 12.7% • Capital expenditure of R2.4 billion 3 Empowering our peo

  3. Slide 3: Sales volumes and prices achieved by metal

    Sales volumes by metal H1 2008 H1 2007 % FY2007 change Platinum (000oz) 896 909 (1) 1,827 Palladium (000oz) 466 422 10 870 Rhodium (000oz) 106 108 (2) 206 Nickel (000t) 6 8 (25) 16 5 Prices achieved by major metals H1 2008 H1 2007 % FY2007 change Platinum ($/oz) 1,352 1,164 16 1,185 Palladium ($/oz)

  4. Slide 4: Contribution to sales revenue by metal; Automotive production

    Contribution to sales revenue by metal H1 FY07 H1 FY08 6% 6% 12% 9% 51% 51% 24% 27% 7% 7% Platinum Palladium Rhodium Nickel Other 7 Automotive production 000’s Commercial vehicle Passenger car production production 2007 2006 % 2007 2006 % change change Western Europe 14,421 14,057 2.5 2,396 2,222 7.

  5. Slide 5: Platinum supply and demand

    Platinum • Market registers significant deficit as SA cuts supply • Diesel underpins demand but most growth is from other sectors (non-automotive) • Price sensitive jewellery sector declined – but Chinese consumption remarkably resilient 9 Platinum supply and demand 000 oz 2004 2005 2006 2007 2008 E

  6. Slide 6: Palladium supply and demand

    Palladium • Autocatalyst demand grew further • Tighter emission legislation world-wide • Growth in vehicle sales • Jewellery demand fell • Inventory draw-down • Increased recycling 11 Palladium supply and demand 000 oz 2004 2005 2006 2007 2008 Est Demand Automotive 4,515 4,605 4,800 4,930 5,100 Othe

  7. Slide 7: Rhodium supply and demand

    Rhodium • Market in second year of deficit • Automotive • Glass industry 13 Rhodium supply and demand 000 oz 2004 2005 2006 2007 2008 Est Demand Automotive 685 744 825 830 850 Industrial 119 139 144 159 154 Total 804 883 969 989 1,004 Supply SA 556 645 649 661 663 Other 254 267 291 313 319 Total 810

  8. Slide 8: PGM prices; Nickel

    PGM prices Pt & Pd Price Rh Price ($/oz) ($/oz) 1400 7000 1200 6000 1000 5000 800 4000 600 3000 400 2000 200 1000 0 0 CY04 CY05 CY06 CY07 CY08 CY09 CY10 Pt Price Pd Price Rh Price 15 Nickel • High stock volatility • Highest ever price • Stainless steel de-stocking • Low grade ferro-nickel (Indonesia

  9. Slide 9: Financial Review: Group gross profit highlights

    Empowering our people, growing our production Financial Review Group gross profit highlights R million H1 2008 H1 2007 % change FY2007 Sales 16,323 14,860 10 31,481 Cost of sales (8,697) (7,861) (11) (17,010) Gross profit 7,626 6,999 9 14,471 Margin (%) 47 47 0 46 18 9

  10. Slide 10: Group unit cost per platinum ounce; Headline earnings

    Group unit cost per platinum ounce* R/oz 6,500 91 6,340 255 451 Up 12.7% 6,000 84 5,627 5,500 5,000 H1 FY2007 Inflation Volume Skills retention Other H1 FY2008 * Excluding share based payments 19 Headline earnings Rm 6,000 512 5,500 149 627 5,000 4,660 769 203 Up 4,500 4,344 7% 4,000 3,500 3,000 Dec

  11. Slide 11: Contributions per entity; Cash net of debt

    Contributions per entity Rm 5,000 280 4,660 427 Up 175 4,000 218 7% 125 3,435 3,000 2,000 1,000 0 Impala Marula Zimplats Mimosa IRS Other H1 FY2008 21 Cash net of debt Rm 4,000 3,000 2,000 1,000 0 Dec 2006 June 2007 Dec 2007 -1,000 22 11

  12. Slide 12: Group Operational Review: Group safety

    Empowering our people, growing our production Group Operational Review Group safety Fatality frequency rate Lost Time Injury Frequency Rate 6.00 5.65 0.150 0.139 0.130 4.80 0.118 (per million man hours) (per million man hours) 0.104 4.00 3.48 0.100 3.57 3.41 3.03 0.069 0.063 0.050 2.00 0.000 0.00 FY

  13. Slide 13: Group tonnes milled; refined platinum production

    Group tonnes milled 000 t H1 2008 H1 2007 % FY2007 change Impala 8,542 8,526 0 16,302 Marula 761 739 3 1,450 Mimosa 895 833 7 1,692 Zimplats 1,105 1,032 7 2,133 Group* 10,855 10,714 1 20,732 * Includes 50% of Mimosa 25 Group refined platinum production 000 oz H1 2008 H1 2007 % FY2007 change Impala 5

  14. Slide 14: Group cost per platinum ounce; operating margins

    Group cost per platinum ounce R/oz H1 2008 H1 2007 % FY 2007 change Impala* (Refined) 5,919 5,349 (10.7) 5,612 Marula* (In concentrate) 9,008 8,235 (9.4) 8,500 Zimplats (In matte) 8,877 6,898 (28.7) 7,033 Mimosa (In concentrate) 5,604 4,919 (13.9) 5,413 Group* (Refined) 6,340 5,627 (12.7) 5,921 * Ex

  15. Slide 15: Group capital expenditure; Impala

    Group capital expenditure Rm H1 2008 H1 2007 % FY2007 change Impala 1,526 903 69 2,098 Zimplats 627 271 131 449 Mimosa 44 30 47 28 Marula 180 152 18 280 Other 26 - - 32 Group 2,403 1,356 77 2,887 29 Impala • Safety improved • 4 fatalities, 20% improvement in FIFR from FY2007 • LTIFR improved by 13%

  16. Slide 16: Marula; Two Rivers

    Marula • Poor safety performance • Tonnes milled 3% higher at 761,000 • Platinum production in concentrate up 7.5% to 35,700 ounces • Unit cost per platinum ounce increased by 9.4% • Full production of 136,000 ounces of platinum in concentrate is still scheduled to be achieved during FY2010 • Feasib

  17. Slide 17: Zimplats; Mimosa

    Zimplats • Disappointing safety performance • Tonnes milled up 7% • Platinum production in matte down 11.5% due to planned closure of the furnace for maintenance • Unit cost per platinum ounce increased by 29% on the back of decreased production • Phase 1 expansion to 160,000 ounces of platinum unde

  18. Slide 18: Key Issues

    Empowering our people, growing our production Key Issues Key issues • Safety • Power • Skills • Conversions 36 18

  19. Slide 19: Prospects

    Empowering our people, growing our production Prospects Prospects • Robust PGM market • Increase in production to 2.3 million platinum ounces by FY2010 essentially in place • Highly cash generative with excellent dividend yield 38 19

  20. Slide 20: One Team One Vision With Pride

    Empowering our people, growing our production One Team One Vision With Pride 20

Impala Platinum Holdings — H1 FY2008 Earnings Presentation on 6ix