Royal Bafokeng Platinum — Barclays Emerging Mining Conference 2013
37 slides from Royal Bafokeng Platinum's conference presentation, Dec 5, 2013
Slide 1: Barclays Emerging Mining Conference
Barclays Emerging Mining Conference St Ermin’s Hotel London 5 December 2013 Barclays Emerging Mining Conference - 5 December 2013
Slide 2: Disclaimer
Disclaimer The information presented in this presentation is of a general nature and the forward looking information, opinions and beliefs of the Company and its affiliates are based on various market related assumptions. Changes in market circumstances after the production of the information may im
Slide 3: Introduction
Introduction > Operational review • Continued improvement in safety performance • Steady ounce production • Below inflation unit cost increase during 2013 • Healthy pre-developed ore reserves position • Replacement and SIB project expenditure in line with project execution • Styldrift project remain
Slide 4: Operational performance
Operational performance
Slide 5: Safety performance – ongoing improvement
Safety performance – ongoing improvement Description Unit YTD Q3 2012 YTD Q3 2013 Variance LTIFR /200 000 0.649 0.605 6% SIFR /200 000 0.361 0.271 24% > Improved LTIFR and SIFR SIFR LTIFR • LTIFR 6% 0.60 1.2 • SIFR 24% 0.53 0.47 0.95 0.50 1 > Two Section 54 notices were issued during Q3 0.91 0.42 •
Slide 6: Production performance
Production performance Description Unit YTD Q3 2012 YTD Q3 2013 Variance > Concentrator offline for 15 days Total tonnes milled kt 1 760 1 634 -7% • Primary mill discharge end replacement UG2 % milled % 15.1% 18.6% 23% Surface stockpiles kt 97 135 39% • 7% lower milled tonnes Headgrade (4E) – Total
Slide 7: Cash operating costs
Cash operating costs Description Unit YTD Q3 2012 YTD Q3 2013 Variance Cash operating cost / Pt oz delivered R/oz 9 807 10 179 -4% Cash operating cost / tonne milled R/t 859 948 -10% Cash operating cost / Pt oz M&C R/oz 11 805 12 205 -3% Cash operating cost / 4E oz M&C R/oz 7 650 7 913 -3% > Increas
Slide 8: Capital expenditure
Capital expenditure Description Unit YTD Q3 2012 YTD Q3 2013 Variance Total capital R'm 904.0 720.9 20% Expansion R'm 489.9 504.0 -3% Replacement R'm 225.4 127.0 44% SIB capital R'm 188.7 89.9 52% SIB / Operating Cost % % 12.5% 5.8% 54% > Lower capital expenditure (20% or R183 million) aligned with
Slide 9: Social and Labour
Social and Labour > Employee and organised labour engagement > Community engagement > SLP commitments • Poverty alleviation & job creation • Education support • Infrastructure Housing project Sports fields in 5 local schools Chaneng community vegetable garden Barclays Emerging Mining Conference - 5
Slide 10: Styldrift I
Styldrift I
Slide 11: Major surface activities completed
Major surface activities completed • Permanent headgears erected • Personnel and material winder - commissioned • Rock winder – commisioned • Central workshops – completed • Main consumer substation – commissioned • Emergency generators – commissioned Barclays Emerging Mining Conference - 5 December
Slide 12: Styldrift on schedule and below budget
Styldrift on schedule and below budget Description Unit Plan Actual Var Progress Progress > Service shaft sink to 642 level Overall progress % 33.7 34.6 0.9 Main shaft sinking m 708 708 - > Main shaft sink to 708 level Service shaft sinking m 642 642 - Expenditure > 1730m of lateral development comp
Slide 13: Milestones
Milestones Current Description COS 2 Actual forecast Activity 2013 Services shaft: Sink to 642 L Jan – 13 Jan - 13 - Main shaft: Sink to 642 L Jan – 13 Jan - 13 - Commence rock winder installation Feb - 13 Feb - 13 - Main shaft: Sink to 708 L Apr – 13 Apr – 13 - Commence change house construction Ju
Slide 14: Styldrift schedule & cash flow
Styldrift schedule & cash flow Project Phase 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Engineering & Design 2008 - 2015 Pre-Sink Infrastructure 2009 - 2011 • Rock winder Surface Infrastructure 2010 - 2016 • Main offices • Change house Main Shaft Sinking 2011 - 2014 708m • Surface s
Slide 15: Styldrift key issues
Styldrift key issues > Primary trackless mining fleet • Supplier selected • Contract for manufacturing of primary fleet placed in Q1 2013 • Fleet delivery planned in advance of ramp-up schedule • Artisan and operator training programs initiated > Mining contract • Preferred mining contractor selecte
Slide 16: Ore processing strategy
Ore processing strategy
Slide 17: Strategic considerations
Strategic considerations Market conditions > Global economic slowdown > Metals prices remain relatively flat in near term > Recycling of PGMs set to grow > Operating cost escalation UG2 > Central high facies – North shaft: robust operating margins > General facies – South shaft: low operating margin
Slide 18: Styldrift concentrator (230ktpm)
Styldrift concentrator (230ktpm) Key design parameters Two stage crushing circuit > Primary and secondary crushing in close circuit Milling and classification > 2 x 8 MW mills (MF2 configuration) > 150g/t concentrate grade Flotation > Primary rougher, cleaner and re-cleaner circuits > Secondary roug
Slide 19: Anglo Platinum ore transport options
Anglo Platinum ore transport options Transnet rail > Conveyor linking Styldrift with Transnet line > New rail siding south of Styldrift > 4 x 50 hopper train on Transnet network daily > Maintenance workshop for rolling stock > Rail link and rail siding between Transnet and Anglo rail network > Shunt
Slide 20: Impala ore transport options
Impala ore transport options Ore transport options 1. Conveyor: Styldrift to Impala 20 shaft 2. Rail: Impala rail extension to Styldrift 3. Road: Road train from Styldrift to Impala 20 shaft 4. Doppelmayr: Two flight from Styldrift to Impala 20 shaft 5. Hybrid: Combination of conveyor and rail to Im
Slide 21: Impala ore transport options (continued)
Impala ore transport options (continued) Capital (R’m) Option Description Opex (R/t) System ready nominal Conveyor with new rail siding 1. Conveyor and silo position east of Impala 846 40 Q4 2016 20 shaft New rail system linking into the 2. Rail existing Impala rail system east 958 35 Q1 2017 of Imp
Slide 22: Styldrift/Wesizwe joint concentrator
Styldrift/Wesizwe joint concentrator Joint concentrator location Two stage crushing circuit > Primary and secondary crushing in closed circuit > Milling and classification (MF2 configuration) 280ktpm and 180ktpm modules RoM conveyor from Wesizwe Description Units Module 1 Module 2 Silo for Wesizwe o
Slide 23: Concentrator project schedules
Concentrator project schedules Start Finish 2012 2013 2014 2015 2016 2017 2018 Activity date date Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Styldrift I concentrator (230ktpm) Feasibility study Q2 2012 Q4 2013 Execution & commissioning Q3 2014 Q3 2016 Anglo Amer
Slide 24: NPV and IRR results
NPV and IRR results Standalone Styldrift concentrator compared with external options Incremental NPV of concentrator options (R’million) Incremental IRR (Real) of concentrator options 0.09% R8 -0.01% -0.14% R -94 -0.23% R -194 -0.50% R -232 R -358 -0.76% R -498 -1.13% R -669 Concentrator Concentrato
Slide 25: Key outcomes of treatment of ore at neighbouring mines
Key outcomes of treatment of ore at neighbouring mines > Capital requirements to deliver Styldrift ore to neighbouring mines is significant • R750 million to R1.4 billion (excluding Impala concentrator plant upgrade) • Increases treatment cost per tonne by between R35/t to R55/t > No added value as
Slide 26: Upgrade BRPM concentrator (350ktpm)
Upgrade BRPM concentrator (350ktpm) Overland conveyor Styldrift to BRPM > 6 km of overland conveyor > Primary crushing at Styldrift 200ktpm to 250ktpm upgrade > 10 kt silo (storage of ROM Merensky) > Primary mill conversion (to grate discharge) > Upgrade of the existing LAROX filter building > Prima
Slide 27: Tonnage and treatment profile of upgraded BRPM concentrator
Tonnage and treatment profile of upgraded BRPM concentrator Tonnage profile (2014-2018) 5.0 Concentrator capacity appropriate for Merensky 4.5 production 4.0 UG2 production provides flexibility Deliver UG2 to fill shaft capacity Million tonnes per annum > 3.5 > Toll treat excess UG2 3.0 2017: Commis
Slide 28: Key outcomes
Key outcomes Description Unit Standalone 230ktpm concentrator BRPM concentrator upgrade BRPM concentrator upgrade to co-process UG2 R’m 300 - Blending facility for UG2 at BRPM R’m 50 - Styldrift I concentrator R’m 2400 - Conveyor from Styldrift to BRPM R’m - 332 Upgrade BRPM concentrator to 250ktpm
Slide 29: Styldrift revised capital
Styldrift revised capital Description Unit Optimised Current Variance > Revised capital cost Total (mining and concentrating) R'm 11 386 11 014 372 • Project budget reduced from R 11.38 billion Project schedule to R 11.01 billion Start date Date Mar-08 Mar-08 - • Cash flow in accordance with revised
Slide 30: Styldrift project schedule
Styldrift project schedule Project Progress: Mining & Infrastructure Major surface activities: 2014 > Changehouse and office construction > Stores construction > Reef and waste surface silos > Service water storage tanks Major underground activities: 2014 > Main shaft sinking to shaft bottom (50m) >
Slide 31: Incremental NPV
Incremental NPV – Difference between upgrading BRPM concentrator and constructing Styldrift concentrator NPV Incremental NPV reduces SD 230ktpm 350ktpm BRPM 350 ktpm Styldrift concentrator depletes stockpile Incremental NPV (R’billion) Basket price R20 000/ Pt oz Basket price R22 000/ Pt oz Incremen
Slide 32: RBPlat competitively positioned
RBPlat competitively positioned
Slide 33: Competitive position on the industry cost curve
Competitive position on the industry cost curve J.P. Morgan Cazenove Platinum Industry Break-even Analyser (cash cost + SIB) Mechanised operations Source: J.P. Morgan Cazenove – 25 September 2013 Barclays Emerging Mining Conference - 5 December 2013 > Slide 33
Slide 34: High quality, shallow Merensky assets
High quality, shallow Merensky assets 100% 3% 4% 5% 5% 11% 8% 9% 14% 15% 2000 15% 16% MERENSKY (70%) UG2 (30%) 90% 80% 70% Merensky : UG2 % 2012 MERENSKY (30%) UG2 (70%) 60% Source : Chamber of Mines – 21 January 2013, RSA PGM Mining Sector Briefing Note 50% 40% > BRPM JV 30% 20% • Long-term Merensk
Slide 35: Funding requirements
Funding requirements
Slide 36: Spending to grow
Spending to grow R’million Expansion capital > Styldrift I expenditure for 2013 is forecast at R728 million > Conveyor belt linking Styldrift to BRPM concentrator (2014/2015) > BRPM concentrator upgrade to 250ktpm in 2015 > BRPM concentrator 100ktpm module commission in 2017 Replacement capital > Ph
Slide 37: Funding of Styldrift I
Funding of Styldrift I > R992.1 million cash on hand (BRPM JV R369 million – 67% attributable to RBPlat) - as at end June 2013 > R1 billion unutilised Revolving Credit Facility > R458 million Working Capital Facilities • R152.5m utilised for Eskom, Rehab & Rental Guarantees • R200m utilised for Empl
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