Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Investor Presentation (March 2007)
20 slides from Impala Platinum's investor presentation, March 2007
Slide 1: Investor Presentation March 2007 - Introducing Implats
Investor Presentation March 2007 Introducing Implats Contribution to sales revenue by metal Implats is in the business of 6% 12% mining, refining and marketing platinum group metals and H1 FY2007 51% 24% associated base metals 7% Platinum Palladium Rhodium Nickel Other 2 1
Slide 2: Implats key statistics
Implats … • strives to be the best platinum producing company and deliver superior returns to its shareholders • produced 1.846 Moz of platinum 35 Share Price (US$ equivalent) in FY2006 (equivalent to around 30 25% of global supplies) and 25 1.018 Moz in H1 FY2007 20 USD • generated sales revenu
Slide 3: Operations on the world's premier deposits - Group structure
Operations on the world’s premier deposits … Group structure IMPLATS Impala Refining Mine-to-market Services (IRS) Investments operations (100%) 100% Impala Platinum 77.5% Marula Platinum Aquarius Platinum 86.9% (8.6%) Zimplats Concentrate 51% 50 % offtake agreements Mimosa Aquarius Platinum SA 45%
Slide 4: Platinum reserves and resources (attributable)
Platinum reserves and resources (attributable) • 182.9 Moz attributable reserves and resources Aquarius, 1% Mimosa, 2% Two Rivers, 1% Impala Platinum, 41% 30 June 2006 Zimplats, 49% Marula Platinum, 6% 7 Market review 4
Slide 5: The platinum story
The platinum story • Diesel autocatalyst growth continues to drive demand Platinum demand • Increasing diesel share of European light duty vehicles Industrial 24% • Growing demand for particulate filters FY2006 Automotive 51% • Stricter emission legislation Jewellery encompassing heavy duty vehicles
Slide 6: The palladium story
The palladium story • Autocatalyst demand grew further • Tighter emission legislation in countries outside North America, Europe and Japan • Growth in vehicle sales • Jewellery demand fell • Inventory draw-down • Increased recycling 11 Palladium supply and demand 000 oz Price ($/oz) 400 1500 1200 30
Slide 7: The rhodium story
The rhodium story • Market continued in deficit in 2006 • implementation of stricter NOx standards in gasoline engines; and • growth in the glass industry 13 Rhodium supply and demand 000 oz Price ($/oz) 5000 100 4000 70 3000 40 2000 10 (20) 1000 (50) 0 CY03 CY04 CY05 CY06 CY07 (Deficit)/Surplus Rh
Slide 8: Financial review - Financial highlights
Financial review Financial highlights $ million H1 2007 FY2006 Sales 2,051 2,745 Cost of sales (1,085) (1,594) Gross profit 966 1,151 Profit before tax 865 1,102 Tax (259) (410) Net profit 600 686 HEPS (cps) 114 119 DPS (cps) ordinary 38 63 (cps) special - 108 16 8
Slide 9: Group capital expenditure
Group capital expenditure • Capex in excess of R13 billion planned over next five years Rm 3,500 3,000 2,500 2,000 1,500 1,000 500 0 FY06 FY07 FY08 FY09 FY10 FY11 Maintenance Expansion 17 Operational review 9
Slide 10: Safety and tonnes milled
Safety Fatality Frequency Rate Lost Time Injury Frequency Rate 0.150 6.00 5.65 0.139 4.80 (per million man hours) (per million man hours) 0.104 0.100 4.00 3.57 3.41 0.069 0.063 0.050 2.00 0.000 0.00 FY03 FY04 FY05 FY06 FY03 FY04 FY05 FY06 19 Tonnes milled 000 t H1 2007 FY2006 Impala 8,526 16,441 Mar
Slide 11: Refined platinum production and cost per platinum ounce
Refined platinum production 000 oz H1 2007 FY2006 Impala 545 1,125 Marula 29 37 Mimosa 37 66 Zimplats 46 89 Other IRS 361 529 Group 1,018 1,846 21 Cost per platinum ounce R/oz H1 2007 FY 2006 Impala* (Refined) 5,369 4,604 Marula* (In concentrate) 8,235 9,443 Zimplats (In matte) 7,050 6,458 Mimosa (I
Slide 12: Operating margins
Operating margins % H1 2007 FY2006 Impala 63 53 Zimplats 53 42 Mimosa 73 53 Marula 47 19 IRS 11 14 Group 47 42 23 South African mine-to-market operations 12
Slide 13: Impala Platinum and Marula Platinum
Impala Platinum (100%) - the engine • Largest single platinum producing entity in the world • Produced 1.125 Moz platinum in FY2006 (545,000 oz in H1FY2007) • 28,000 employees • Life-of-mine of 30 years at 1.1 to 1.5 Moz platinum • Mining • 13 shafts with 5 declines • 2 new shafts under construction
Slide 14: Two Rivers Platinum and Zimbabwe operations
Two Rivers Platinum (45%) • Produced 31,000 oz platinum in Production ramp up concentrate in H1 FY2007 000 oz • Life-of-mine of 20 years 160 • Plant commissioned 120 • Ramp up to full production of 80 120,000 ounces of platinum per annum in concentrate scheduled 40 for end 2007 0 • Merensky will pro
Slide 15: Zimplats and Mimosa
Zimplats (86.9%) • Largest known platinum resource outside of South Africa • Operating since 2001 • Phase 1 expansion to 160,000 ounces of platinum with capex of US$258 million commenced • Secured resource for long-term expansion to 1 million platinum ounces per annum for 50 years • Produced 90,300
Slide 16: Impala Refining Services
Impala Refining Services • Undertakes processing of third party material - toll-refining activities and concentrate purchases • One of the world’s largest refiners of spent autocatalysts • Headline production of 721,000 oz of platinum in FY2006 1000 IRS platinum production 800 000 oz 600 Lonplats 40
Slide 17: Corporate issues and Empowerment transaction
Corporate issues • RBN royalty transaction replaced IRS transaction • Shareholder approval received • Awaiting promulgation of the Amendment to Income Tax Act • Approval by Minister of Land Affairs outstanding • Applications for conversion of mineral rights remain work in progress 33 Empowerment tra
Slide 18: Compliance with Mining Charter
Compliance with Mining Charter Effective holdings in Impala Platinum RBN holding (existing) 2.1% RBN group holding (from royalty transaction) 20.0% Incwala transaction 7.1% ESOP 4.4% Total empowerment shareholding 33.6% Implats is on target to meet other Charter requirements 35 Conditions outstandin
Slide 19: Employee Share Ownership Scheme
Employee Share Ownership Scheme • Implats makes capital contribution to ESOP trust • R1.8 billion to purchase 2.05 million (3%) Implats shares - equivalent to 25% of total transaction • 28,304 eligible employees (Patterson A,B and C grades) including 26,962 HDSA employees • Eligible employees benefi
Slide 20: Prospects and Investing in Implats
Prospects • Robust PGM market • Increase in production to 2.3 million 000 oz Implats' Platinum Production platinum ounces by FY2010 on track 2500 • Smelter expansion to support 2.8 million 2000 ounces 1500 • Significant further upside potential in 1000 Zimbabwe 500 • Safety, volumes and grade manage
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