Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Investor Presentation (June 2005)
13 slides from Impala Platinum's investor presentation, Jun 29, 2005
Slide 1: Investor Get-together: Ambatovy – a strategic opportunity
Investor Get-together Wednesday, 29 June 2005 Ambatovy – a strategic opportunity Distribution and retail Manufacture and Process wholesale Increased Vertical Integration / Diversification Marketing Focus Support Boundary of activities activities competencies Refining Ambatovy Mining Canadian juniors
Slide 2: Nickel
Nickel ¾ Nickel is not diversification but growth in one of Implats most important metals ¾ PGM Growth Issues 7% 11% ¾ Western Limb – mature 6% ¾ Opportunities ¾ Eastern Limb – technically challenging 9% 67% ¾ Zimbabwe – political risk ¾ worldwide – few new discoveries Pt Pd Rh Ni Other ¾ Possible b
Slide 3: Madagascar
Madagascar About Madagascar ¾ World’s fourth largest island, 500 kilometres off east coast of Southern Africa ¾ Population of approx 17 million ¾ Independent since 1960 ¾ Democratic republic ¾ Legal system based on French civil law ¾ Current government elected in 2002 3
Slide 4: Favourable investment climate
Favourable investment climate ¾ Legal stability for duration of mining permit ¾ International dispute arbitration recognized and sovereign immunity waived ¾ Favourable Tax regime Economic performance ¾ Debt relief of US$834m last year ¾ Recent announcements from the G8 on further debt relief ¾ Growt
Slide 5: Ambatovy project history
Ambatovy project history ¾ Project was 100% owned by Dynatec Inc of Toronto ¾ Previously owned and drilled by Phelps Dodge ¾ swapped out for equity in Dynatec worth US$70 million ¾ Bankable Feasibility Study completed for a processing plant and refinery in Madagascar ¾ Dynatec/Implats relationship s
Slide 6: Ambatovy - a strategic investment
Ambatovy - a strategic investment ¾ 37.5% equity in the JV company for each of Implats and Dynatec (third party off-taker 25%) ¾ Implats buy-in cost of $50m (paid to Dynatec who will re-invest in Project) ¾ Dynatec responsible for Madagascan operations ¾ Implats responsible for the construction, com
Slide 7: Why is Ambatovy so good?
Why is Ambatovy so good? ¾ Homogenous and thick ore reserve ¾ Lowest operating cost producer ¾ Appropriate capital efficiency Costs ¾ CAPITAL US$2.05bn ¾ IRR 15 - 20% ¾ Additionally ¾ savings on current capital expenditure program at Springs ¾ savings on the current unit cost of all metals 7
Slide 8: Capital intensity
Capital intensity 40 Goro Koniambo ¾ Sufficient capital to ensure high plant Cap ital In ten sity ($000/t/a) N i 35 Ambatovy Murrin availability and Murrin quicker ramp-up 30 ¾ Goro includes $300m Ravensthorpe initial write-off 25 ¾ Ravensthorpe is currently under- 20 estimated (UBS) ¾ Koniambo – ex
Slide 9: Ambatovy Project cost curve and flow sheet summary
Cost curve 4.0 3.0 Ambatovy Project 2.0 Costs ($/lb Paid Ni) 1.0 0.0 0 150 300 450 600 750 900 1050 1200 1350 1500 -1.0 PGM Producers e.g. Norilsk. (PGM credits result in negative cost of Ni production) -2.0 Cumulative Production (Paid kt Ni) C1 Cash Cost Flow sheet summary ¾ Mining (Ambatovy) ¾ no
Slide 10: Flow sheet summary, cont’d
Flow sheet summary, cont’d ¾ Refining (Springs) ¾ classical BMR flowsheet ¾ cobalt solvent extraction is new to Impala ¾ pilot plant at Springs Why refine in Springs? ¾ Leverage the current skills base in Springs ¾ Potentially quicker ramp-up of refinery ¾ Piggy back onto the existing infrastructure
Slide 11: Why is Ambatovy so good for Implats
Why is Ambatovy so good for Implats ¾ Favourable cobalt ratios/credits ¾ Strong ammonium sulphate revenues in RSA ¾ Reduction of current BMR direct cost (low JV Opex) ¾ Saving on future expansion capex ¾ Leveraging Impala skills and expertise ¾ Leveraging the hydrogen pipeline fixed costs ¾ LME list
Slide 12: Milestones and Conclusions
Milestones ¾ Definitive Cost Estimate completed by February 2006 ¾ Third partner signed up by February 2006 ¾ EIA completed first quarter 2006 ¾ Board approval – March 2006 ¾ Construction April 2006 to end 2008 ¾ Commissioning and first metal production – early 2009 Conclusions ¾ World-class project
Slide 13: Investor Get-together
Investor Get-together Wednesday, 29 June 2005 13
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