African Rainbow Minerals Limited · JSE:ARI
African Rainbow Minerals — Non-Deal Roadshow (April 2006)
26 slides from African Rainbow Minerals's roadshow presentation, April 2006
Slide 1: African Rainbow Minerals Ltd Roadshow to the UK, US and Canada
African Rainbow Minerals Ltd Roadshow to the UK, US and Canada April 2006
Slide 2: Disclaimer
Disclaimer Forward looking statements Certain statements in this presentation constitute “forward looking statements” within the meaning of section 27A of the US Securities Act of 1933 and section 21E of the US Securities Exchange Act of 1934. Such forward looking statements involve known and unknow
Slide 3: We Do It Better
ARM is a nichediversified mining company with excellent long life, low cost assets in key commodities We own and operate our assets Our unique management style, supported by experienced management and entrepreneurship adds significant value to our business Our partners in various ventures make valu
Slide 4: Market statistics
Market statistics Shares outstanding (thousands) as at 11 April 2006 205 810 Last price R48.65 US$7.96 Market capitalisation R10 billion US$1.6 billion Primary listing JSE Limited – Johannesburg Ticker ‘ARI’ Number of employees 5 946 Number of shareholders 4 144 – Local 86% – International 14% Avera
Slide 5: A diversified mining portfolio
A diversified mining portfolio * Platinum Ferrous Coal TEAL HARMONY 100% 50% 51% 65% 16.2% 10% option 20% Xstrata Coal SA Modikwa (50%) Beeshoek Fe Two Rivers (55%) BKM – Fe Nkomati (50%) 51% Kalplats (100%) Goedgevonden Nchwaning – Mn Gloria – Mn New growth Cato Ridge – FeMn Cato Ridge Alloys – F
Slide 6: Location of operations
Location of operations 1 2 3 6 4 11 5 7 8 9 10 1 Modikwa Platinum 2 Two Rivers Platinum 3 Dwarsrivier Chrome 4 Machadodorp Ferrochrome 5 Nkomati Nickel 6 Kalplats Platinum 7 Nchwaning/Gloria Manganese Ore 8 BKM Iron Ore 9 Khumani Iron Ore 10 Cato Ridge Ferromanganese 11 ARM Coal 6
Slide 7: Highlights
Highlights • Exploration assets outside South Africa listed through TEAL on the Toronto Stock Exchange – growth into Africa • Assmang shareholders’ agreement renegotiated and delisting approved • Release of the 8.4 million tons per annum export Khumani Iron Ore Mine • Nkomati Expansion approved fro
Slide 8: We Do It Better
WE DO IT BETTER • Significant organic growth expected through the building of new mines and the upgrading of operations – double production output by 2010 – increased efficiencies, thereby continue to be a low cost producer Operationally more efficient to improve and retain competitiveness Organic g
Slide 9: Operationally more efficient
Operationally more efficient • Continued success in increased efficiencies and lower costs – Nchwaning 3 fully operational and will reduce production costs – Dwarsrivier chrome mine completed ahead of schedule and within budget – On mine cost at the manganese and iron ore mines were well contained –
Slide 10: 2 x 2010 growth
2 x 2010 growth ARM is in the process of building new mines and further upgrading operations From To (per annum) (per annum) Status Two Rivers – PGMs – 230 000 PGM oz √ Modikwa – PGMs 210 000 PGM oz 350 000 PGM oz 16 500 t Ni Nkomati – PGMs 5 000 t Ni 100 000 PGM oz Dwarsrivier – chrome 0,65m t
Slide 11: Project pipeline
Project pipeline Nchwaning Nkomati (manganese) Dwarsrivier (nickel and PGMs) (chrome) Two Rivers (PGMs) 2005 2006 2007 2008 2009 Modikwa Khumani (PGMs) (iron ore) • Solid project pipeline Two Rivers R1.3 bn US$215 m • Large resource base in key Nkomati R400 m US$66 m commodity sectors Nkomati Expans
Slide 12: ARM Ferrous
ARM Ferrous • Khumani Iron Ore Mine – 8.3 mtpa export capacity that can increase to 16 mtpa Discard dump Wash, screen & beneficiation plant ROM blending stockpiles with stackers & reclaimers 12
Slide 13: ARM Ferrous
ARM Ferrous • Beeshoek Iron Ore Mine 13
Slide 14: ARM Ferrous
ARM Ferrous Iron ore buildup – Beeshoek and Khumani 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2004/5 2007/8 2010/11 2013/14 2016/17 Beeshoek Khumani 1
Slide 15: ARM Ferrous
ARM Ferrous • Nchwaning 3 Manganese Mine conveyor – Total installed manganese production capacity now at 3.5 mtpa 2
Slide 16: ARM Ferrous
ARM Ferrous • Dwarsrivier Chrome Mine – Underground mine completed within budget and schedule – Total chrome ore run of mine production capacity at 1,5 mtpa 3
Slide 17: ARM Platinum
ARM Platinum • Modikwa Platinum Mine – Currently at 94% of full production 4
Slide 18: ARM Platinum
ARM Platinum • Modikwa Platinum Mine – Aerial view 5
Slide 19: ARM Platinum
ARM Platinum • Two Rivers Platinum Mine – Storage silo’s 6
Slide 20: ARM Platinum
ARM Platinum • Two Rivers Platinum Mine – UG2 concentrator 1
Slide 21: ARM Platinum
ARM Platinum • Nkomati Nickel Mine – Opencast mining will expand monthly production to 100 tpm – Current nickel output will be maintained 2
Slide 22: ARM Platinum
ARM Platinum • Nkomati Nickel Mine 3
Slide 23: ARM Platinum
ARM Platinum PGM production attributable 350 300 250 200 150 100 50 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Modikwa Two Rivers Nkomati 1
Slide 24: ARM Coal
ARM Coal Structure Transaction Steps Œ ARM Coal is established and ARM and Xstrata subscribe for their Xstrata ARM interests through respective contributions of R400 million and R384 million 51% 100% 49% • ARM Coal subscribes for a 20% interest in Xstrata Coal SA in the XSA ARM form of participating
Slide 25: ARM Coal: A compelling rationale for ARM
ARM Coal: A compelling rationale for ARM • Further diversification of asset portfolio with the addition of quality coal assets • Establishment of a strategic relationship with a major international metal and mining group and leading thermal coal producer • The partners have agreed to pursue opportun
Slide 26: TEAL Exploration & Mining Inc.
TEAL Exploration & Mining Inc. • TEAL is ARM’s vehicle for exploration and growth in Africa • The TEAL capital raising in 2005 raised US$33.3 million to fund ARM’s development and exploration assets in Africa – IPO concluded on 15 November 2005 and TEAL listed on TSX • Strategic portfolio of near pr
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