African Rainbow Minerals Limited · JSE:ARI
African Rainbow Minerals — Anglovaal Mining — H1 2003 Earnings Presentation
25 slides from African Rainbow Minerals's earnings presentation, Feb 10, 2003
Slide 1: Anglovaal Mining interim results six months ended December 2002
ANGLOVAAL @ MINING DLYVIXAWI JA MONG HS ENDED BER 2002 Rick Menell — Chairman Jan Steenkamp — Chief operating officer
Slide 2: Avmin introduction
AMELOWAAL @ mining AVMIN INTRODUCTION PRY KQWY fs af 31 December 2002 112 225 000 shares in issue © Listedin Johannesburg and London e Volume of shares traded (si months to 31 December 2002) — 713 million © Market capitalisation at 31 December 2002 — R44 billion JSE Securities Exchange SA — Share pr
Slide 3: Significant features
SIGNIFICANT FEATURES e Rand/US dollar exchange rate e Good contributions from Assmang e Nkomati performs well e Avgold starts to contribute significantly e Sale of ETC e Chambishi reaches full production
Slide 4: Financial highlights
AMELOWAAL @ mining FINANCIAL HIGHLIGHTS PRY KQWY a — BYCnviP tome ontibie Venrto OT DevemPetag | Devemper, so wline hin ZUUZ ZI) eat ZZ Revenue 2 340 1663 41% 4 047 Cost of sales 1 828 1271 44% 2985 Gross profit 512 392 31% 1 062 Profit before tax and exceptional items 326 176 85% 694 + Exceptional
Slide 5: Balance sheet
AMELOWAAL @ mining BALANCE SHEET PRY KQWY As wt 31 Decerber 2002 Rm Assets Liabilities Non-current assets 4924 Shareholders’ interest (fixed assets, trust 6951 (minority interest: funds, deferred taxation R2 134m) Non-current liabilities 2110 {fong-term borrowings: Ri 367m) Current assets 2134 4 956
Slide 6: Borrowings and net debt
AMELOWAAL @ mining | Vi Drcenper ey pune au 2002 2002 sas Long-term borrowings 1 367 1181 16% Short-term borrowings 1 302 1515 “14% Less; deposits and cash 905 779 16% Net borrowings 1 764 1917 8% Net debtfequity (%) 36 42 Total Group borrowings 2 669 2 696 1% Less; Non recourse subsidiary borrowing
Slide 7: Headline earnings by division
AMELOWAAL @ mining HEADLINE EARNINGS BY DIVISION RYVK\WQEY 150 ' 6 months to us 31-Dec-2001 47 47 ‘ 50 6 months to 5 2 1 O30-sun-2002 0 ' : i H 6 months to a0 om eT @ 31-Dec-2002 ss peas oh coat ' : ure Apel ‘ 4100 ' 202 150 ' 1399 | ' Ferrous Mickel Copper! Precious Corporate Total metals Cobatt me
Slide 8: Results for the six months ended 31 December 2002
ENDED 37) DECEMBER 2002 RESULTS FOR THE Sik MONTHS Jan Steenkamp — Chief operating officer
Slide 9: Safety, health and environment
AMELOWAAL @ mining SAFETY HEALTH AND ENVIRONMENT AW/A\VY e Sustainable development report e Safety e Fatalities e Achievements © Health e HIV/Aids e Environment e Licencing e Achievements
Slide 10: Ferrous metals
AMELOWAAL @ mining FERROUS METALS RYVK\WQEY _— STEERER “JI Depenver *} December Bin ZUUZ ZuGy Change Headline earnings (Rm) 137 121 13% Manganese ore (tons) 648 000 583 000 11% Iron ore {tons} 2259000 2149000 5% Ferro-4nanganese (tons} 96 900 85 400 13% Ferro-chrome (tons) 103 600 83 900 15%
Slide 11: Ferrous metals major projects
AMELOWAAL @ mining FERROUS METALS PRY KQWY Major, projects; © Nchwaning Ill Shaft Complex « Completed by end of calendar year 2003 e Costto completion R585 million e Life in excess of 20 years e Chrome division’s new 54 MVA furnace & pelletising plant e fechnical problems delayed reaching of planned
Slide 12: Precious metals
PRECIOUS METALS AMELOWAAL @ mining RIKKNWOV SiDevenver oI Deven per, ZUUZ ZU} Change Headline earings (Rm) 79 14 464% Net operating profit (Rm) 50 14 257% Capital expenditure (Rm) 58 369 84% Ore milled (tonnes) 739 158 169 759 335% Gold sold (kg) 6 009 1 438 318% Yield (g/t) 8,13 B47 4%, Cash cost (
Slide 13: Precious metals hedging
PRECIOUS METALS AMELOWAAL @ mining RIKKNWOV 21 Devenver, ZUUY oiDerenver, 200) Gold price ($/oz) USS:ZAR spot Mark-to-market value Total hedges Hedges are un-margined US$343,40 US$1,00:ZAR8,65 FR485m - negative 903 000 oz 5/% of estimated production to 2006 US$277,10 US$1,00:ZAR11,50 R1 036m - negat
Slide 14: Precious metals operations
AMELOWAAL @ mining PRECIOUS METALS PRY KQWY Operations; e Target © 1 smillion fatality free shifts e Life of Mine now 18 years (13 years) e Gold solid =4 524kg °e ETC « Continued good performance with higher grades - 9,13q/t (8,4/q/t) « Sale to consortium which includes BEE component © Gold soid=1 4
Slide 15: Two Rivers: Avmin's entry into PGMs
AMELOWAAL @ mining PRECIOUS METALS PRY KQWY Two kivers: Avmin's entry into PGMs e Tiso Capital to acquire up to 25% e Mining licence progress e Facts about Two Rivers: Anticipated production: 200 000 ounces of PGiVis Life expectancy: approximately 20 years Capital expenditure: R7 billion {excluding
Slide 16: Base metals
AMELOWAAL @ mining BASE METALS ie MSY eve ibe December, hin ZUUZ “tt Change Total ore treated (tons) 137 000 135 000 1% Sales achieved: Nickel (tons) 2620 1660 39% Copper (tons) 1670 1 380 21% Cobalt (tons) 33 26 27% PGMs (tons) 19 040 16 940 12% Nickel cash operating costs Net of by-products US$0,5
Slide 17: Base metals projects
ANELOVAAL @ MIiMNINE BASE METALS RYVK\WQEY Base metals projects e Nkomati expansion project e Feasibility concluded e Regulatory issues being finalised e Nickel production expected to increase to 16 000 tons
Slide 18: Base metals Chambishi
AMELOWAAL @ mining BASE METALS _— —-- —— -—-—- pi iDecemperame) Deceniver id ZUUL Zany Change Slag treated (tons) 76 900 64 500 19% Copper 5 300 6 400 “17% Own 610 240 Toll 4690 6 160 Cobalt 2 200 1 500 AT Own 1 300 300 Toll 900 1 200 Average cobalt price received (I/b) US$6,22 US$8,00 22% Attributa
Slide 19: Chambishi: cobalt prices expected to improve
AMELOWAAL @ mining BASE METALS RYVK\WQEY Chambishit average Cobalt prices expected to improve e Production « Planned redesign of furnace completed e Currently operating at full capacity © Cobalt market © Price up 18% since the end of 2002 © Higher demand from the battery sector (mobile phones) e Sho
Slide 20: Prospects for the remainder of the financial year
OF THE FINANCIAL YEAR PROSPECTS FOR THE REMAINDER Rick Menell — Chairman
Slide 21: Headline earnings by division
AMELOWAAL @ mining HEADLINE EARNINGS BY DIVISION RYVK\WQEY 150 ' 6 months to us 31-Dec-2001 47 47 ‘ 50 6 months to 5 2 1 O30-sun-2002 0 ' : i H 6 months to a0 om eT @ 31-Dec-2002 ss peas oh coat ' : ure Apel ‘ 4100 ' 202 150 ' 1399 | ' Ferrous Mickel Copper! Precious Corporate Total metals Cobatt me
Slide 22: Anglovaal Mining asset base and project pipeline
AMELOWAAL @ mining ANGLOVAAL MINING PRY KQWY e solid Asset Base, in particular © target generating substantial cash flow e Manganese Continue to produce good 4 lest results and generate cash flow e Nickel e Good Project Pipeline © Nehwaning fll manganese mine e WNkomati nickel expansion © Two Rivers
Slide 23: Avmin growth strategy
AVMIN - GROWTH STRATEGY AMELOWAAL @ mining RIKKNWOV _ the internal Growth pipetine Discovery Base metals: + Zambia « DRC Precious metals: * Paradise * Target North « Sun South * Namibia Feasibility Base metals: * Nkomati Il * Superalloys * Baluba Precious metals: * Two Rivers Ferrous metals: * Silic
Slide 24: The next six months
AMELOWAAL @ mining ANGLOVAAL MINING PRY KQWY The next six montis e Chambishi stabilised e Stronger balance sheet e Target to achieve higher gold production e Well positioned for Empowerment Charter e At corporate and project feve! © Scorecard issues: procurement management heneficiation, etc.
Slide 25: Questions & Answers
QUESTIONS & ANSWERS