Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Deutsche Bank Conference 2005
16 slides from Impala Platinum's conference presentation, June 2005
Slide 1: Deutsche Bank Conference
Deutsche Bank Conference June 2005 1 About us • A leading platinum group metals (PGMs) producer • Focused on platinum production from mine-to-market operations • Utilises full capacity in terms of core competencies, eg IRS • Invests in strategic interests where these add value • Produced 1.96 millio
Slide 2: Location and Corporate structure
Location • Operations and strategic interests located on two prime PGM deposits • the Bushveld Complex in South Africa (Impala, Marula and Two Rivers) and • the Great Dyke in Zimbabwe (Zimplats and Mimosa) • Exploration in South Africa, Zimbabwe and North America (in association with Falconbridge) 3
Slide 3: Strategic focus
Strategic focus Distribution and retail Manufacture and Process wholesale Increased Vertical Integration / Diversification Marketing Focus Support Boundary of Refining activities activities competencies Mining Exploration Canadian juniors Platinum PGMs Base Precious Metals Coal, Aluminium, Non – Met
Slide 4: Platinum supply and demand
Platinum • Fundamentals remain firm • Solid and growing demand in automotive sector • Jewellery market down but resilient • 2004 surplus, the first registered in six years 7 Platinum supply and demand (000oz) Calendar years 2002 2003 2004 2005 Automobile 2 615 2 745 3 135 3 100 Jewellery 2 840 2 505
Slide 5: Palladium supply and demand
Palladium • Usage in automotive sector increasing • Penetration into Chinese jewellery market • Growing supply and inventory caps prices 9 Palladium supply and demand (000oz) Calendar years 2002 2003 2004 2005 Automobile 4 530 4 465 4 535 4 725 Other 2 370 2 325 3 120 2 850 Total demand 6 900 6 790
Slide 6: Demand drivers / Operational review
Demand drivers • Regional emission legislation • Substitution of platinum by palladium • Rest of world vehicle sales 11 Operational review 12 6
Slide 7: Group safety performance; Impala Platinum
Group safety performance • Best-ever safety performance FIFR 0.250 0.200 0.150 0.134 0.139 0.104 0.100 0.065 0.050 0.000 FY 2002 FY 2003 FY 2004 FY 2005 12 LTIFR 10 7.90 Per million man hours 8 5.65 6 4.80 3.60 4 2 0 FY 2002 FY 2003 FY 2004 FY 2005 13 Impala Platinum • Strategy to maintain productio
Slide 8: Impala - focus on costs through technology
Impala - focus on costs through technology • Roll-out of drill jigs • FY05 20% FY06 40% 100% FY07 40% • Potential for 5-10% improvement in overall mining efficiencies 15 Impala - productivity 29.0 45 28.5 28.4 28.0 No. of employees ('000) Pt oz per employee 40 27.5 27.5 27.0 26.9 27.0 26.5 35 26.0 2
Slide 9: Marula Platinum and Two Rivers
Marula Platinum • Revised production build-up plan to 140 000 Pt ounces by FY2009 • Owner-mining with effect from 1 January • In terms of new mine plan • Conversion to hybrid mining in the interim • Long-term plan to move to conventional mining • Feasibility study on Merensky Reef to be undertaken •
Slide 10: Zimbabwean environment and Zimplats
Zimbabwean environment • Requirements/constraints for expansion • Security of tenure (special mining lease) • Confirmation of indigenisation legislation • Bilateral accord between South Africa and Zimbabwe • Government agreement on foreign currency accounts • Economic assumptions • Zimbabwean dollar
Slide 11: Mimosa and Aquarius Platinum
Mimosa • JV with Aquarius • Current production in region of 70 000 Pt ounces • Incremental expansion of 15 000 Pt ounces planned 21 Aquarius Platinum • Shareholding of 20% in Aquarius SA • Comprises Kroondal and Marikana operations • Everest South project under construction with first production exp
Slide 12: Ambatovy - location and strategic investment
Ambatovy - location MADAGASCAR ZIMBABWE Process Plant Mine site Antananarivo Refineries Richards Bay SOUTH AFRICA Johannesburg 23 Ambatovy - a strategic investment • 37.5% equity in the JV company for each of Implats and Dynatec (third party off-taker 25%) • Implats buy-in cost of $50m (paid to Dyna
Slide 13: Ambatovy - background; Group capex
Ambatovy - background • Reserves – 125m tonnes grading 1.04% nickel and 0.1% cobalt • Production – 60 000 tonnes nickel and 5 600 tonnes cobalt per annum at steady state • Project life – 27 years • Capital cost – $2.05 billion (assumes refinery in SA) • Operating cost - $1.66/lb; $0.67/lb after by-p
Slide 14: Corporate issues
Corporate issues 27 Corporate issues • Share buy-back programme • BEE and transformation processes underway • Wage negotiations 28 14
Slide 15: Conclusions
Growth in platinum production – current and proposed 000oz 2000 1500 1000 500 0 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08/9 Mine to market 3rd party processing Lonplats Potential Zimbabwean expansions 29 Conclusions • Good operational performance, especially at Impala • While in the interim
Slide 16: Implats - Distinctly Platinum
IMPLATSA Distinctly Platinum 16
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