Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — H1 2014 Earnings Presentation

21 slides from Impala Platinum's earnings presentation, Feb 27, 2014

  1. Slide 1: Interim Results February 2014

    27/02/2014 Interim Results February 2014 Forward looking statement 2 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 limit

  2. Slide 2: Agenda

    27/02/2014 Agenda 3 O VERVIEW Terence Goodlace Safety  Wage Negotiations  Operational  Financial O PERATIONAL REVIEW Terence Goodlace Production  Costs  Rustenburg  Zimplats  Marula  Capital Projects  Mimosa / Two Rivers F INANCIAL REVIEW Brenda Berlin M ARKET REVIEW Derek Engelbrecht O UTL

  3. Slide 3: Safety achievements and strategy

    27/02/2014 Safety achievements 5 OVERVIEW Operation Achievement Implats FIFR 31% improvement on FY 2013  Impala operations achieve six million fatality free shifts in October 2013 (per million man hours worked) • Six months fatality free  Achieve 16 months without a FOG fatality  14 Shaft achieve

  4. Slide 4: Wage negotiations

    27/02/2014 Wage negotiations 7 OVERVIEW  Settled with NUM at Marula and Refineries in December 2013  Have been on strike at Impala Rustenburg since 23 January 2014 150% and five weeks have now elapsed  Have implemented a total shutdown at the mine for the safety of our employees AMCU basic wage d

  5. Slide 5: Operational and financial key features

    27/02/2014 Operational ‐ key features 9 OVERVIEW  Gross refined platinum production down 9.1% to 786 500 ounces Platinum Production • Managed mine‐to‐market up 9.2% 1000 • Third party IRS production down 55%  Group unit costs 2% higher at 800 Third party R16,310 per refined platinum ounce IRS as a

  6. Slide 6: Operational review: group refined platinum production

    27/02/2014 Operational review Group refined platinum production 12 OPERATIONAL OVERVIEW Mine‐to‐market 677 300ozs 900 109 787 800 83 700 51 000 oz 600 39 115 500 390 400 300 200 100 0 Impala Zimplats Marula Mimosa Two Rivers Third Party IRS Total Interim Results February 2014 www.implats.co.za 6

  7. Slide 7: Profitability and Rustenburg

    27/02/2014 Profitability 13 OPERATIONAL OVERVIEW Unit costs plus capital (R/Pt oz) 25 000 20 000 15 000 10 000 5 000 0 Impala Zimplats Marula Group Mimosa Two Rivers Cash costs Stay in business capital Replacement capital Expansion capital Revenue per platinum ounce (basket) Interim Results February

  8. Slide 8: Rustenburg progress and Zimplats

    27/02/2014 Rustenburg progress 15 OPERATIONAL OVERVIEW Progress on key metrics H1 2012 H1 2013 % change Increasing face length Total development km 52.3 58.0 11 Primary on‐reef development km 13.7 18.3 33 Mineable face length km 18.8 20.5 9 Productivity Stope productivity m2 per team 312 318 2 Minin

  9. Slide 9: Marula and major capital projects

    27/02/2014 Marula 17 OPERATIONAL OVERVIEW  Tonnes milled increased 12.6% benefiting from operational improvements in 2013  Platinum in concentrate production increased 14% • Stoping productivity up 2.6% • Head grade up 1.6%  Marula on track to increase production to 80 000 ounces for 2014  Unit

  10. Slide 10: Mimosa and Two Rivers

    27/02/2014 Mimosa and Two Rivers 19 OPERATIONAL OVERVIEW Mimosa  Tonnes milled up 3.6% to 1.24 million tonnes  Platinum in concentrate production of 52 600 ounces  Unit costs rose 19.5% to R16 692 per platinum ounce in concentrate (0.8% in dollar terms) Two Rivers  Tonnes milled increased by 4.2

  11. Slide 11: Gross income statement and gross profit movement

    27/02/2014 Gross income statement FINANCIAL REVIEW  Revenue 9% higher at R million H1 2013 H1 2014 % change 2013 R16.5 billion Sales 15 074 16 502 9 29 844  Profit up 14% to R922 million Cost of sales (12 612) (14 742) (17) (25 132)  HEPS increased by 11% to Gross profit 2 462 1 760 (29) 4 712 14

  12. Slide 12: Group unit cost and profit movement

    27/02/2014 Implats Group unit cost 23 FINANCIAL REVIEW 18,000 1 285  Unit costs contained at R16 310 per platinum ounce 17,000 1 6 310 15 966 Rand per platinum ounce 16,000 1 629 15,000 14,000 13,000 12,000 11,000 10,000 Dec‐12 Inflation Volumes and Dec‐13 other Interim Results February 2014 www.im

  13. Slide 13: Headline earnings by operation and gross cash movement

    27/02/2014 Headline earnings per operations FINANCIAL REVIEW R million H1 2013 H1 2014 % change 2013 Impala 942 (171) (118) 1 661 IRS (85) 807 1049 (170) Zimplats 73 246 237 467 Marula (177) (93) 47 (297) Mimosa (1) 30 70 Two Rivers 70 94 34 156 Other (46) (53) (15) 114 Headline profit 776 860 11 2

  14. Slide 14: Market review: sales volumes by metal

    27/02/2014 Market review Derek Engelbrecht Sales volumes by metal 28 MARKET REVIEW South African sales Dec 2012 Dec 2013 % change (CY2013) (%) Platinum (000oz) 733 720 (2) 8 Palladium (000oz) 422 426 1 34 Rhodium (000oz) 92 80 (13) 19 Nickel (000t) 6.4 5.7 (10) 61  Volumes lower than prior year Int

  15. Slide 15: Average prices achieved and platinum demand

    27/02/2014 Average prices achieved – Major metals 29 MARKET REVIEW Dec 2012 Dec 2013 % change Platinum ($/oz) 1 541 1 426 (8) Palladium ($/oz) 623 723 16 Rhodium ($/oz) 1 144 973 (15) Nickel ($/oz) 16 505 13 953 (16) Basket ($/Pt oz sold) 2 397 2 226 (7) (R/Pt oz sold) 20 207 22 460 11 Exchange rate

  16. Slide 16: Palladium demand and vehicle sales

    27/02/2014 Palladium demand 31 MARKET REVIEW (Pd 000 oz)  Automotive demand exceeds 10000 new mine supply  Recycling has to grow 9500 9000 8500 2012 Automotive Industrial Investment 2013 Interim Results February 2014 www.implats.co.za Vehicle sales 32 MARKET REVIEW World Light Vehicle Sales by Reg

  17. Slide 17: Platinum supply/demand outlook

    27/02/2014 Where have all the ounces gone? 33 MARKET REVIEW Platinum total net import in China 2010 ‐ 2013 % Increase 000 oz 2010 2011 2012 2013 2012/13 Chinese imports 1 514 1 680 1 666 2 210 Chinese net imports 2 420 2 542 2 472 3 087 Total Chinese net imports 2 703 3 101 3 307 4 108 24% Platinum

  18. Slide 18: Palladium and rhodium supply/demand outlook

    27/02/2014 Palladium supply / demand outlook 35 MARKET REVIEW 000 oz 2012 2013 2014 (Forecast) DEMAND Automobile 6 000 6 500 7 150 Industrial 3 110 3 125 3 190 Investment 300 250 ‐ Total Demand 9 410 9 875 10 340 SUPPLY South Africa 2 245 2 220 2 100* North America 930 960 980 Other 1 080 955 930 Re

  19. Slide 19: Market challenges and opportunities

    27/02/2014 Market challenges and opportunities 37 MARKET REVIEW  Global economic recovery not widely entrenched  Growth in recycle market offsets SA mining  Security and stability of supply causing reputational damage, but …….  Will erode above ground stock levels (at a price)  New industry dem

  20. Slide 20: Outlook

    27/02/2014 Outlook Terence Goodlace, CEO Outlook 40 OUTLOOK  Safety • Ongoing safety strategy starting to show benefits  PGM markets • Fundamentals for PGMs remain robust • The slowly eroding (above‐ground) inventories should positively impact prices  Cost pressures • Potential wage settlements –

  21. Slide 21: Outlook

    27/02/2014 Outlook 41 OUTLOOK  Positive engagement with Government of Zimbabwe regarding • Indigenisation • Beneficiation  Grow mine‐to‐market production • Improved recovery from all operations • As at 31 December 2013: Impala Rustenburg on‐track to deliver 850 000 platinum ounces by 2018 • Comple

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