Valterra Platinum Limited · JSE:VAL
Valterra Platinum — Anglo American Platinum — H1 2022 Earnings Presentation
58 slides from Valterra Platinum's earnings presentation, Jul 25, 2022
Slide 1: 2022 Interim Results
AngloAmerican PLATINUM Anglo Ameri 2022 Inter 25 July 2022
Slide 2: Cautionary statement
Cautionary statement Disclaimer: This presentation has been prepared by Anglo American Platinum Limited ("Anglo American Platinum’) and comprises the written materials/slides for a presentation concerning Anglo American Platinum. By attending this presentation and/or reviewing the slides you agree t
Slide 3: [OFFICIAL]
[OFFICIAL] 3
Slide 4: Key highlights
[OFFICIAL] Key highlights Key highl
Slide 5: Operating context in 2022
Key highlights Operating context in 2022 Supply chain disruption [OFFICIAL] Weather & Eskom impacts Delay in delivery of equipment Covid-19 shutdowns in China Inflationary pressures Extreme rainfall at Mogalakwena open-pit Increasing national power outages Communities & heritage Commodity price incr
Slide 6: Delivering on our Purpose
[OFFICIAL] Key highlights Delivering on our Purpose Our Purpose is: “ Re-Imagining mining to improve people's lives” Four priorities for strategy delivery: A leader in ESG Go beyond resilience, thrive Maximize value from Stimulate new markets and through change our core leverage new capabilities Oo
Slide 7: ESG performance
ESG performance
Slide 8: ESG performance
[OFFICIAL] ESG performance Continuous efforts to improve safety, health and the environment Health Tuberculosis (TB) incidence rates? 3 SAlncidence rate — Polokwane smelter acid plant Aleaderin ESC Environment (1 month rolling average SO; emissions mg/Nm*) Safety mmm Annuciloss of life = —e=TRCFR" t
Slide 9: ESG performance
[OFFICIAL] ESG performance 9
Slide 10: ESG performance
[OFFICIAL] ESG performance 10
Slide 11: ESG performance
[OFFICIAL] ESG performance 11
Slide 12: ESG performance
[OFFICIAL] ESG performance 12
Slide 13: [OFFICIAL]
[OFFICIAL] 13
Slide 14: Operational performance
[OFFICIAL] Operational performance 14
Slide 15: Operational performance
[OFFICIAL] Operational performance 15
Slide 16: Operational performance
[OFFICIAL] Operational performance 16
Slide 17: Operational performance
[OFFICIAL] Operational performance 17
Slide 18: Financial performance
Financial performance
Slide 19: Financial review
[OFFICIAL] Financial review
Slide 20: Financial review
[OFFICIAL] Financial review 20
Slide 21: Financial review
[OFFICIAL] Financial review 21
Slide 22: Financial review
[OFFICIAL] Financial review 22
Slide 23: Financial review
[OFFICIAL] Financial review 23
Slide 24: Financial review
[OFFICIAL] Financial review 24
Slide 25: Financial review
[OFFICIAL] Financial review
Slide 26: Financial review
[OFFICIAL] Financial review 26
Slide 27: Market review
Market review
Slide 28: PGM basket price firm in H1 2022
[OFFICIAL] Market review PGM basket price firm in H1 2022 US$ basket price — half year average market price > Palladium hit record high on supply concerns after Russian invasion of Ukraine Prices fell back towards mid-year as supply concerns eased and automotive production remained subpar iridium an
Slide 29: Auto production hit again but recovery underway
[OFFICIAL] Market review Auto production hit again but recovery underway Automotive production begins slow recovery ® Automotive sales remain Monthly production, million vehicles constrained by production. 9 2017-2019 average 8 Automotive production has revised lower for 2022 7 Chinese lockdowns hit
Slide 30: Market review
[OFFICIAL] Market review • • • • • • • • 30
Slide 31: Balancing the many risks and opportunities
Market review [OFFICIAL] Balancing the many risks and opportunities Opportunities Risks Auto production recovering Consumer demand robust Low auto inventories Potential global PGM supply disruption Rising vehicle PGM loadings Future decarbonisation & industrial demand Hydrogen uses gaining momentum
Slide 32: Platinum and rhodium tighten as palladium loosens
[OFFICIAL] Market review Platinum and rhodium tighten as palladium loosens Platinum’ Palladium® Rhodium’ Future demand from gasoline Move to surplus hastened by weaker Unique NOx reduction qualities drive substitution & hydrogen economy drives automotive production in medium term auto demand and ret
Slide 33: Building blocks in place to drive value creation
Building blocks in place to drive value creation
Slide 34: Building blocks in place to drive value creation
[OFFICIAL] Building blocks in place to drive value creation 34
Slide 35: Building blocks in place to drive value creation
[OFFICIAL] Building blocks in place to drive value creation 35
Slide 36: Building blocks in place to drive value creation
[OFFICIAL] Building blocks in place to drive value creation 36
Slide 37: Building blocks in place to drive value creation
[OFFICIAL] Building blocks in place to drive value creation 37
Slide 38: Building blocks in place to drive value creation
[OFFICIAL] Building-blocks in place to drive value creation 38
Slide 39: Growth potential
[OFFICIAL] Growth potential • • • • • • • • • • • • • • • • • ‒ ‒ ‒ 39
Slide 40: Developing a hydrogen future ecosystem
[OFFICIAL] Market review eloping a hydrogen future ecosystem Commerciality Practicality 4 " OEM interest = - " | a | Increasing _ Opportunity availability of Countries green hydrogen ss | adopting a& . a | hydrogen Suitability Diversifying strategies | resource Necessity Anecessary requirements solu
Slide 41: Building blocks in place to drive value creation
[OFFICIAL] Building blocks in place to drive value creation 41
Slide 42: [OFFICIAL]
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Slide 43: [OFFICIAL]
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Slide 44: Appendix
[OFFICIAL] Appendix Mogalakwen«
Slide 45: Higher production and loadings help offset rise of BEVs
[OFFICIAL] Appendix Medium-term: higher production and loadings helo offset rise of BEVs Global autocatalyst PGM demand 19 000 ounces 11,500 2019 2020 2021 Higher Higher BEVs FCEVs 2030 production loadings 45
Slide 46: Appendix
[OFFICIAL] Appendix Anglo American / © 2022 46
Slide 47: Appendix
[OFFICIAL] Appendix • • • • • • • • 47
Slide 48: Incremental demand could be several million ounces per year
Appendix Incremental demand could be several million ounces per year Focus Green transition Modern life Wealth & luxury Demand Segments / Opportunity Areas eo Hydrogen & ea battery . Carbon-neutral & % feedstock & zi pollution control o Low-loss computing Coa FoodTech & MedTech , 8 qy Jewellery & >
Slide 49: Venture creation and investment
[OFFICIAL] Appendix Low-cost CO2 direct air capture Memory software Venture creation Jewellery & investment projects Low-cost H2 at pressure PGM cancer drug improvement Over 10 ventures and commercial LOHC for FCEV PGM in SOT MRAM (memory) R&D projects Pd/Pt in lithium batteries PGM in Memristor (me
Slide 50: Three-year guidance
[OFFICIAL] Appendix Three-year guidance Unit 2022E 2023E 2024E Metal-in-concentrate (M&C) Total PGMs (m ounces) 3.9 -4.3 4.1-4.5 4.1-4.5 Platinum (m ounces) 1.8-2.0 1.9-2.1 1.9-2.1 Palladium (m ounces) 1.2-1.3 1.3-1.4 1.3-1.4 Other PGMs and gold (m ounces) 0.9- 1.0 0.9-1.0 0.9-1.0 Refined production
Slide 51: Capital expenditure guidance
[OFFICIAL] Capital expenditure guidance -205 16.0-17.5 719.5 mExpansion / Growth capital Life extension = Capital waste stripping mStay-in business 2021 2022E 2023E 2024-2025E Capital expenditure 2021 2022E 2023E 2024-2025E Total sustaining capital (R billion) 10.8 13.1-13.8 ~18.0 ~18.0 Stay-in busi
Slide 52: EBITDA sensitivity
EBITDA sensitivity [OFFICIAL] Sensitivity analysis- H1 2022 30 June 2022 spot Average realised Impact of 10% change in price/FX Commodity / unit Platinum ($/0z) 919 964 1,532 Palladium ($/oz) 1,967 2,147 2,671 Rhodium ($/oz) 14,000 17,131 3,444 Gold ($/oz) 1,817 1,866 99 Nickel ($/ton) 23,119 28,188
Slide 53: Net cash flow by mine
[OFFICIAL] Net cash flow by mine Assets Netcash Cashfrom SIB&waste Economic free Project Deferred Income tax & Dividends paid Other Netcash 31 Dec 2021 operations capital cash flow capital consideration royalties paid 30 Jun 2022 Mogalakwena 13,234 (3,207) 10,027 (757) Amandelbul , 9,327 (350) 8,977
Slide 54: Cost breakdown
[OFFICIAL] Cost breakdown 2022 Cost base (Rbn) Volume % PGMs (koz) Labour Contractors Consumables Maintenance Utilities Sundries Opencast mining 39 40% 528 16% 7% 39% 28% 2% 9% Conventional mining 5.4 29% 376 54% 6% 16% 9% 8% 7% Mechanised mining 3.9 31% 406 38% 10% 23% 18% 6% 6% Concentrating 3.8 1
Slide 55: All in sustaining cost (AISC)
[OFFICIAL] Allin sustaining cost (AISC) Mogalakwena Amandelbult Mototolo Unki Modikwa Kroondal Other Mining Costs (US$ million) : Cash operating costs 1 7 7 Other costs and marketing 116 115 25 73 12 23 8 373 Capitalised waste costs 119 119 Sustaining capital 89 32 W 7 10 10 3 163 a Total cost 732 5
Slide 56: [OFFICIAL]
[OFFICIAL] 1$11 variance from Rand basket price conversion due to monthly metal Prices in dollar 2Company Ex trading calculated as ((a x f) / c x 1000) 56
Slide 57: Simplified EBITDA per PGM ounce
[OFFICIAL] Simplified EBITDA per PGM ounce Attributable (Rimillion) Mogalakwena Amandelbult — Mototolo Unk) Speratene nae Mined — POC Atoll Trading Other Company fervoaes) share a=(bx¢)/1000+d _Netrevenue 21,140 17,272 5411 4,661 8,634 57,118 28,209 253 85,580 85,327 b Basket price per PGM ounce 39,
Slide 58: Footnotes
[OFFICIAL] Footnotes 10) Total recordable case injury frequency rate (TRCFR) is a measure of all injuries requiring treatment above first aid per 1,000,000 hours worked TB incident rate is the incidence of tuberculosis per 100,000 people SA TB incidence rates from the World Health Organisation data
Anglo American Platinum — H1 2022 Earnings Presentation on 6ix