Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Corporate Update (October 2006)
12 slides from Impala Platinum's corporate update, Oct 27, 2006
Slide 1: Analyst visit
Analyst visit 27 October 2006 Agenda Introduction The issue David Brown The solutions Mining plan Productivity Shadwick Bessit DDT implementation Incentive scheme Progress to date Grade David Brown Ounces Costs 2 1
Slide 2: The issue: decline in head grade
The issue Decline in head grade 3.85 The reasons 3.80 3.80 • Poor mining / Dilution control 3.75 • Stoping width • Off reef mining g/t 3.70 3.68 • Productivity gains not realised 3.65 3.66 • DDT implementation 3.60 • Incentive scheme 3.55 FY06 Jul 06 Aug 06 3 The solution • Back-to-basics mining pla
Slide 3: Back-to-basics mining plan
Mining plan Back-to-basics mining plan • Improve mining basics • Maximising conventional Merensky volumes • Focus on 3rd generation Merensky shafts • Training of miners on correct mining parameters • Appoint grade control observers for follow-up coaching • Supervision at the face with regards to mar
Slide 4: Back-to-basics mining plan
Back-to-basics mining plan • Improve management information • All panels mined observed & sampled at least three times per month • Reports generated daily for actioning • Senior management review trends & progress • Mid-month & month-end 7 Back-to-basics mining plan • Other influencing parameters •
Slide 5: Productivity: DDT Implementation
Productivity DDT Implementation 5
Slide 6: DDT Scorecard
DDT Scorecard Primary benefits • Safety • Remove RDO from danger area 9 • Permanent support close to face 9 – 70% of roofbolting Merensky teams • Reduction in number of FOG’s 9 11 DDT Scorecard Secondary benefits • Reduce physical effort 9 • Productivity improvement • 30% of 290 teams using DDT’s 8
Slide 7: DDT challenges and action plans
DDT challenges Logistics Spare equipment 9 Maintenance by team Ongoing Repairs turnaround time 9 Equipment availability 9 Transporting of equipment 9 13 DDT key features and action plans Cycle completion Cycle study in progress End Feb 07 Team complement setting Re-focus on train
Slide 8: Team learning curve; Incentive Scheme
Team learning curve (Built into 5-year plan) Target 10% Base Training + 1 month bolt lead ± 3 months (breakeven) ± 5 months (Improvement) ± 8 months (Payback) ± 12 months (Benefits) 15 Incentive Scheme 8
Slide 9: New bonus scheme
New bonus scheme • 3 KPI’s for Panel team Centares z Cut-off point 36 Ca’s/man. Efficiency NEW Face z New table for team members. Start at 16m & 36 Ca’s/man. Advance z Keep existing table for Miners. Same rules as team members. NEW z Qualifies if sweepings are within 15m of the blasting face. Sweepi
Slide 10: Progress to date
Progress to date David Brown Progress to date 4.10 • Overall grade improved 6.5% 4.00 • UG2 grade improved 10% 3.90 • Merensky grade still a challenge 3.92 6.5% 3.80 3.82 3.80 g/t 3.70 3.68 3.66 3.60 3.50 3.40 FY06 Jul 06 Aug 06 Sep 06 Oct 06 20 10
Slide 11: Progress to date: grade and Impala Platinum ounces
Progress to date 4.10 June 07 4.00 4.00 3.90 3.92 6.5% 3.80 3.82 3.80 g/t 3.70 3.68 3.66 3.60 3.50 3.40 FY06 Jul 06 Aug 06 Sep 06 Oct 06 T arget 21 Impala Platinum ounces 1 115 1 125 600 20 20 Target – 2/3 years 571 550 568 • 17 to 17.5 m tonnes 547 534 500 • 1.15 to 1.2 m Pt oz Pt oz (000) 450 400
Slide 12: Impala unit cost per Pt oz
Impala unit cost per Pt oz 5,500 Cost drivers 5,000 • Wages 4,830 4,500 154 • Annual increase 4,399 • Skills retention R per Pt oz 4,000 4,251 4,202 • Additional employees/ 3,500 infrastructure 3,000 • Consumables 2,500 • Shock tubes 2,000 Dec 04 Jun 05 Dec 05 Jun 06 Diggings 23 Analyst visit 27 Oct
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