Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — FY2011 Earnings Presentation

18 slides from Impala Platinum's earnings presentation, Aug 25, 2011

  1. Slide 1: Annual Results for the year ended 30 June 2011

    25/08/2011 Annual Results for the year ended 30 June 2011 One Team One Vision With Pride Management Preview Agenda - Overview - David Brown - Market review - Derek Engelbrecht - Operational review - David Brown - Financial review - Brenda Berlin - Conclusion - David Brown One Team One Vision With Pr

  2. Slide 2: Key features - operational and financial

    25/08/2011 Key features - operational  Safety remained unsatisfactory Platinum  Gross refined platinum production Production rose by 5.5% to 1.84 million ounces 1800 Up 5.5%  Group unit costs excluding share 1600 based compensation were up 8% to 000 oz. 000 oz 1400 R10 867 per platinum ounce 1200

  3. Slide 3: Market Review

    25/08/2011 Market Review Derek Engelbrecht One Team One Vision With Pride Overview 6  Sales volumes and prices achieved  2010 – In review  2011 – prospects for the year ahead One Team One Vision With Pride 3

  4. Slide 4: Sales volumes and average prices achieved by metal

    25/08/2011 Sales volumes by metal FY2011 FY2010 % change Platinum (000oz) 1 665 1 435 16 Palladium (000oz) 1 011 945 7 Rhodium (000oz) 221 228 (3) Nickel (000t) 16 13 21 One Team One Vision With Pride Average prices achieved – major metals FY2011 FY2010 % change Platinum ($/oz) 1 691 1 433 18 Pallad

  5. Slide 5: Macro environment 2010/11

    25/08/2011 Macro environment 2010/11  Developed world struggling with debt  Emerging markets continue to outperform  Low interest rates, weak dollar, firm commodity prices One Team One Vision With Pride Investments Platinum Exchange Investment Jan 09 - July 11 Palladium Exchange Investment Jan 09

  6. Slide 6: Light & Heavy Duty Vehicle Sales

    25/08/2011 Light & Heavy Duty Vehicles Sales 100 90 80 Vehicle Sales (Millions) 70 60 50 40 30 20 10 0 2008 2009 2010 North America Western Europe Africa Asia Eastern Europe Middle East South America One Team One Vision With Pride Light & Heavy Duty Vehicles Sales - Forecast 100 90 80 Vehicle Sales

  7. Slide 7: Shanghai Gold Exchange and platinum supply/demand

    25/08/2011 Shanghai Gold Exchange – raising the bar January - July 18 000 1 900 $ 1784 1 800 17 500 1 700 17 000 $ 1590 1 600 Volume (kgs) 16 500 1 500 Price ($) 16 000 1 400 1 300 15 500 1 200 15 000 $ 1107 1 100 14 500 1 000 2009 2010 2011 Volume KG $ Price Ave One Team One Vision With Pride Plati

  8. Slide 8: Palladium and rhodium supply/demand

    25/08/2011 Palladium 2011 2012 000 oz 2010 estimate estimate Demand Automotive 5 200 5 510 6 100 Industrial 3 155 3 220 3 150 Investment 1 055 200 200 Total 9 410 8 930 9 450 Supply SA 2 530 2 635 2 735 North America 665 865 930 Other 810 645 665 Recycle 1 370 1 530 1 800 Russia 3 400 2 850 2 750 To

  9. Slide 9: Factors driving future demand

    25/08/2011 Factors driving future demand 17  Economic growth will be supported by developing economies  Growing desire for vehicle ownership in BRICS  Heavy duty diesel market strong and growing robustly  Jewellery resilient at higher prices  Supply challenges and under-investment will haunt th

  10. Slide 10: Group safety

    25/08/2011 Group safety Fatal injury frequency rate Industry comparison* 0.15 0.175 0.12 0.150 0.12 0.10 0.125 0.10 (per million man hours) (per million man hours) 0.08 0.100 0.075 0.05 0.05 0.050 0.025 0.00 0.000 Implats Platinum industry 2007 2008 2009 2010 2011 *Calendar year statistics reported

  11. Slide 11: Group refined platinum production and unit cost

    25/08/2011 Group refined platinum production IRS 408 000 ozs Mine-to-market 2 000 1 428 000 ozs 1 836 249 1 800 159 1 600 142 1 400 99 71 000 oz 1 200 175 1 000 941 800 600 400 200 - Impala Zimplats Marula Mimosa Two Rivers Third Party Toll Total One Team One Vision With Pride 21 Group unit cost per

  12. Slide 12: Capital projects - Impala Rustenburg and Zimplats

    25/08/2011 Capital projects - Impala Rustenburg  20 Shaft – Different design – incline/decline spine layout – Over-optimistic planning parameters – Encountered bad ground conditions – Logistical constraints – Mining to recommence in FY2013  16 Shaft – Conventional layout – Development to reef comm

  13. Slide 13: Financial Review - Group Income Statement

    25/08/2011 Financial Review Brenda Berlin One Team One Vision With Pride Group Income Statement R million FY2011 FY2010 % change Sales 33 132 25 446 30 Cost of sales (21 490) (17 294) (24) Gross profit 11 642 8 152 43 Gross margin 35 32 9 Royalty expenses (804) (536) (50) Profit before tax 9 561 7 2

  14. Slide 14: Operating costs per platinum ounce and gross profit by entity

    25/08/2011 Operating costs per platinum ounce 11 000 10 867 444 672 10 800 10 600 10 400 338 10 200 10 089 R/Pt oz 10 000 9 800 9 600 9 400 9 200 9 000 FY2010 Inflation Volumes Other FY2011 One Team One Vision With Pride Gross profit by entity 14 000 12 000 1 419 11 642 692 2 052 10 000 (31) 8 000 7

  15. Slide 15: Group capital expenditure and movement in net cash position

    25/08/2011 Group capital expenditure 6 000 5 540 186 32 242 840 5 000 4 240 4 000 R million 3 000 Rbn 2 000 1 000 0 Impala Zimplats Marula Mimosa Afplats Total One Team One Vision With Pride 29 Movement in net cash position 9 000 8 285 8 000 7 000 6 000 R million 5 000 4 000 3 000 493 2 700 5 289 2

  16. Slide 16: Conclusion - Implats' scorecard

    25/08/2011 Conclusion David Brown One Team One Vision With Pride Implats’ scorecard Safety  Production  Unit cost control  Profitability  Capital delivery  Returns to shareholders  One Team One Vision With Pride 32 16

  17. Slide 17: Strategy and Conclusion

    25/08/2011 Strategy Remain a low cost / high margin producer  Organic growth opportunities – Zimplats Phase 2 and subsequent expansion – Afplats  Capital projects - Investing for the future – Impala Rustenburg – Zimplats  Optimisation of cost base – Zimplats – Marula One Team One Vision With Prid

  18. Slide 18: Forward-looking statement

    25/08/2011 Forward-looking statement Certain statements contained in this presentation other than the statements of historical fact contain forward-looking statements regarding Implats’ operations, economic performance or financial condition, including, without limitation, those concerning the econo

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