Exxaro Resources Limited · JSE:EXX
Exxaro Resources — FY2008 Earnings Presentation
76 slides from Exxaro Resources's earnings presentation, February 2009
Slide 1: Group Financial Results
POWERING POSSIBILITY Group Financial Results presentation for the 12-month period ended 31 December 2008 2
Slide 2: Disclaimer
EXXARO RESOURCES LIMITED Reg No: 2000/011076/06 Roger Dyason Road, Pretoria West 0183 PO Box 9229, Pretoria 0001, South Africa Tel: +27 12 307 5000 Fax: +27 12 307 4760 Disclaimer This presentation includes certain information that is based on management’s reasonable expectations and assumptions. Th
Slide 3: Overview
OVERVIEW Sipho Nkosi - Chief Executive Officer Notes 1
Slide 4: Overview: Exxaro's performance
OVERVIEW Exxaro’s performance • Disappointing safety performance • Strong financial results – Record coal financial results – Significant maiden profit contribution from Namakwa Sands – Challenging Base Metals environment • Headline earnings of 1 058 cents per share • Final dividend of 200 cents per
Slide 5: Operational Review
OPERATIONAL REVIEW Sipho Nkosi - Chief Executive Officer COMPARABLE SAFETY STATISTICS AND OPERATING RESULTS ASSUME BOTH THE ACQUISITION OF NAMAKWA SANDS AND THE 26% INTEREST IN BLACK MOUNTAIN FROM 1 JANUARY 2007 Notes 3
Slide 6: Safety
SAFETY Fatalities LTIFR* 2 2 0,42 0,39 3 0,36 4 3 0,21 2 2006 2007 2008 2006 2007 2008 1H 2H Target • Any loss of life unacceptable • Unsatisfactory LTIFR of 0.39 against a target of 0.21 • Five sites have had zero lost time injuries • Average score of 73% for Presidential safety audits exceeds aver
Slide 7: Coal Production
COAL PRODUCTION Production volumes (Mt) 2,5 2,5 3,0 5,6 4,7 4,1 • Total coal production 44,8Mt • Power station coal 36,7Mt 34,6 34,2 36,7 – Operational turnaround at Arnot – Increased Eskom requirement met from NBC and Leeuwpan 2006 2007 2008 • Additional production from new mines Power station Stea
Slide 8: Coal Markets
COAL MARKETS Steam coal and coke prices* (USD/t) 200 • Firm Eskom demand 750 • Reduced demand from metals market 160 600 in 4Q08 120 • Record seaborne steam coal prices 450 retracted to 2007 levels 80 300 • Coke prices declined by more than 50% in 4Q08 from historical highs 40 150 • Strong reduction
Slide 9: Mineral Sands Production
MINERAL SANDS PRODUCTION KZN Sands Production (kt) • Record production from Furnace 1 • Chloride slag (CP) affected by Furnace 2 outage 176 170 113 • Successful design improvements to both furnaces 50 34 90 34 50 75 159 153 130 128 135 103 115 91 83 Namakwa Sands • New zircon record due to higher mi
Slide 10: Mineral Sands Production
MINERAL SANDS PRODUCTION Production (kt)* Australia Sands • Record synthetic rutile production 113 100 • Pigment production affected by 98 shut and rebuild of all four chlorinators 54 • Gas outage in Western Australia 54 43 affected costs and production 36 36 29 • Zircon and rutile impacted by lower
Slide 11: Mineral Sands Markets
MINERAL SANDS MARKETS Prices (USD/t – FOB)* 1000 3000 • Continued strong zircon demand • Stable feedstock demand 2500 800 • Consistent pigment demand from Asia- 2000 Pacific and China 600 1500 • Low Manganese Pig Iron (LMPI) prices eased considerably in 4Q08 in line with 1000 400 steel prices 500 20
Slide 12: Base Metals Production
BASE METALS PRODUCTION Concentrate production (kt) 39 Zinc and lead concentrate 37 37 • Volumes down due to plant availability 122 110 • Focus on asset management programme 109 2006 2007 2008 Zinc Lead Zinc metal Zinc metal production (kt) • Zinc recovery increased to 91,8% in 4Q08 • Zincor producti
Slide 13: Zinc Markets
ZINC MARKETS Zinc metal price USD/t R’000/t • Realised zinc price declined by 42% 5 000 40 • Market oversupply 4 000 30 • Local demand for zinc metal 3 000 weaker due to economic downturn 20 • Treatment charges at stronger 2 000 levels due to global concentrate 10 1 000 supply 2006 2007 2008 * Sourc
Slide 14: Financial Review
FINANCIAL REVIEW Dirk van Staden - Financial Director COMPARABLE FINANCIAL RESULTS ASSUME BOTH THE ACQUISITION OF NAMAKWA SANDS AND THE 26% INTEREST IN BLACK MOUNTAIN FROM 1 JANUARY 2007 EXCEPT WHERE OTHERWISE INDICATED Notes 12
Slide 15: Comparable Financial Overview
COMPARABLE FINANCIAL OVERVIEW R million FY08 FY07 % Change Revenue 15 209 11 449 33 Operating expenses 12 398 9 809 26 Earnings before interest and taxation (EBIT) 2 811 1 640 71 Operating margin (%) 19 14 36 Post-tax equity accounted income 1 601 683 134 Effective tax rate (%)(1) 14 27 Headline ear
Slide 16: Comparable Revenue
COMPARABLE REVENUE R million FY08 FY07 % Change Coal 9 040 5 087 78 - Tied operations 2 492 1 768 41 - Commercial operations 6 548 3 319 97 Mineral Sands 4 142 3 464 20 - KZN Sands 974 984 (1) - Australia Sands 1 311 1 188 10 - Namakwa Sands 1 857 1 292 44 Base Metals 1 829 2 732 (33) - Rosh Pinah 4
Slide 17: Comparable EBIT and Margins
COMPARABLE EBIT AND MARGINS (%) % change R million FY08 (%) FY07 (%) in EBIT Coal 2 654 29 885 17 200 - Tied operations 83 3 88 5 (6) - Commercial operations 2 571 39 797 24 223 Mineral Sands 448 11 99 3 353 - KZN Sands 31 3 (157) - Australia Sands (82) 60 5 - Namakwa Sands 499 27 196 15 155 Base Me
Slide 18: Comparable EBIT FY07 vs FY08
COMPARABLE EBIT FY07 vs FY08 R million 1 183 (772) (557) 324 (45) 2 811 1 038 1 640 FY07 Price Volume Exchange Inflation Cost Other FY08 rate 18 Notes 16
Slide 19: Comparable Earnings
COMPARABLE EARNINGS R million FY08 FY07 % Change EBIT 2 811 1 640 71 Net financing costs (457) (453) Income from investments 2 2 Post-tax equity income 1 601 683 134 - Sishen Iron Ore Company 1 856 746 149 - Black Mountain (251) (45) (458) - Chifeng (4) (18) 78 Taxation (546) (500) (9) Profit after
Slide 20: Comparable Headline Earnings
COMPARABLE HEADLINE EARNINGS R million FY08 FY07 Attributable earnings 3 435 1 352 Adjustments: - Net impairment of property, plant and equipment (PPE) 20 18 - Share of associates’ impairment and adjustments 169 (10) - Gains or losses on disposal of PPE and subsidiaries 59 17 - Taxation effect (20)
Slide 21: Cash Flow
CASH FLOW (Actual as reported) R million FY08 FY07 Cash retained from operations 3 574 2 308 Net financing costs (193) (116) Taxation (487) (462) Dividends (984) (223) Cash available 1 910 1 507 Capital expenditure (1 617) (1 296) Acquisition of investments and operations (3 157) (257) Dividend inco
Slide 22: Net Debt Variance: FY08
NET DEBT VARIANCE : FY08 (Actual) R million 3 574 (193) (487) (984) (1 617) (483) (3 183) (2 381) 1 044 (52) Opening Cash Net Tax Dividends Capex Investing Dividend Other Closing balance retained financing activities received balance cost 22 Notes 20
Slide 23: Dividend
DIVIDEND R million Total Final Interim dividend dividend dividend 2008 31 Dec 2008 30 Jun 2008 Dividend declared (cps) 375 200 175 Dividend declared (Rm) 1 330 710 620 BEE Holdco 699 373 326 Public 460 246 214 Anglo 131 70 61 Exxaro empowerment scheme (MPower) 40 21 19 Dividend cover 2.6 times (attr
Slide 24: Capital Structure
CAPITAL STRUCTURE Ratios (Actual): FY08 FY07 Net financing cost cover (times) - EBITDA 14 9 Return on equity - attributable income (%) 30 15 Return on capital employed (%) 36 24 Debt structure: Drawn Available Repayment profile R million Long term 4 150 1 761 500 2009 - Corporate 3 588 1 200 328 201
Slide 25: Business Focus and Outlook
BUSINESS FOCUS AND OUTLOOK Sipho Nkosi - Chief Executive Officer Notes 23
Slide 26: Business Focus
BUSINESS FOCUS • Commitment to zero harm • Project pipeline and capital expenditure under review • Focus on committed expansions – Medupi • Power station currently under construction • First coal supply anticipated in 4Q11 • Full production from 2014 – Char plant • Commissioning of first retort in 1
Slide 27: Business Focus
BUSINESS FOCUS • Cash flow preservation • Continuous business improvement • Coal – Major reliable supplier to Eskom – Growing steam coal exporter • Sands – Increased production – Consolidated marketing strategy • Zinc – Asset management programme and plant efficiency – Explore alternative markets –
Slide 28: Outlook
OUTLOOK • Coal – Strong demand for local power station coal – Lower coking coal sales at softer prices – Steam coal exports should increase but at lower international prices • Sands – Increased production levels at all operations – Sustainability of current market demand and stable prices uncertain
Slide 29: Additional Slides
XX ADDITIONAL SLIDES Notes 27
Slide 30: Namakwa Sands Price Adjustments
NAMAKWA SANDS PRICE ADJUSTMENTS Rm Cash consideration 2 015 Price adjustments - Working capital 199 - MSP Project 1 000 448 - Tax recoupment – paid in Jan ‘09 121 2 783 30 Notes 28
Slide 31: Black Mountain Mining Price Adjustments
BLACK MOUNTAIN MINING (PTY) LTD PRICE ADJUSTMENTS Rm Cash consideration 180 Working capital adjustment 37 Gamsberg exploration expenditure 4 221 31 Notes 29
Slide 32: Comparable Net Financing Cost
COMPARABLE NET FINANCING COST R million FY08 FY07 % Change Interest expense and loan costs 499 391 (28) Finance leases 63 59 (7) Interest income (153) (96) 59 Net interest expense 409 354 (15) Interest adjustment on non-current provisions 48 99 52 Net financing cost as per income statement 457 453 3
Slide 33: Comparable Depreciation and Amortisation
COMPARABLE DEPRECIATION AND AMORTISATION R million FY08 FY07 % Change Coal 412 384 7 - Tied operations 42 45 (7) - Commercial operations 370 339 9 Mineral Sands 488 418 17 - KZN Sands 170 162 5 - Australia Sands 168 134 25 - Namakwa Sands 150 122 23 Base Metals 87 64 36 - Rosh Pinah 45 34 32 - Zinco
Slide 34: Comparable EBITDA
COMPARABLE EBITDA R million FY08 FY07 % Change Coal 3 084 1 290 139 - Tied operations 126 133 (5) - Commercial operations 2 958 1 157 156 Mineral Sands 998 528 89 - KZN Sands 253 6 - Australia Sands 99 205 (52) - Namakwa Sands 646 317 104 Base Metals (94) 756 - Rosh Pinah 32 492 (94) - Zincor (52) 3
Slide 35: Capital Expenditure
CAPITAL EXPENDITURE R million FY09(2) FY08(1) FY07 Sustaining and environmental 805 1 147 569 Expansion 2 222 470 727 -Coal 1 312 337 678 -Mineral Sands 811 104 16 -Base Metals 75 26 21 -Other 24 3 12 Total capex 3 027 1 617 1 296 Major cash flow commitment for investments not included in capex: -Ma
Slide 36: Comparable EBIT 1H08 vs 2H08
COMPARABLE EBIT 1H08 vs 2H08 R million 794 (215) (884) 350 50 1 783 660 1 028 1H08 Price Volume Exchange Inflation Cost Other 2H08 rate 36 Notes 34
Slide 37: MPower Trust
MPOWER TRUST As at 31 December 2008 Number of beneficiaries 9 158 R ‘000 Share of total dividends paid or declared to date – Paid on 10 September 2007 3 186 – Paid on 17 March 2008 5 310 – Paid on 22 September 2008 9 292 – Declared on 23 February 2009 10 619 37 Notes 35
Slide 38: Comparable Physical Information: Coking Coal
COMPARABLE PHYSICAL INFORMATION '000 tonnes FY08 FY07 FY06 FY05 COKING COAL Production 2 560 2 962 2 496 2 273 - Grootegeluk 2 233 2 499 2 132 1 859 - Tshikondeni 327 463 364 414 Sales 2 524 2 997 2 554 2 277 - ArcelorMittal 2 116 2 307 1 817 1 590 - Export 316 592 660 628 - Other 92 98 77 59 38 Not
Slide 39: Comparable Physical Information: Power Station Coal
COMPARABLE PHYSICAL INFORMATION ‘000 tonnes FY08 FY07 FY06 FY05 POWER STATION COAL Production 36 700 34 246 34 599 34 164 - Grootegeluk 14 581 14 510 14 268 14 060 - Leeuwpan 1 188 956 921 513 - Matla 13 230 13 030 13 613 12 470 - Arnot 4 865 3 702 3 985 4 976 - NCC 115 156 331 361 - NBC 2 721 1 892
Slide 40: Comparable Physical Information: Power Station Coal Sales
COMPARABLE PHYSICAL INFORMATION '000 tonnes FY08 FY07 FY06 FY05 POWER STATION COAL Sales 36 255 34 226 34 665 34 508 - Grootegeluk 14 374 14 587 14 416 14 163 - Leeuwpan 1 216 965 915 540 - Matla 13 189 12 997 13 613 12 427 - Arnot 4 865 3 702 3 985 4 976 - NCC 184 120 255 618 - NBC 2 427 1 855 1 48
Slide 41: Comparable Physical Information: Steam Coal
COMPARABLE PHYSICAL INFORMATION '000 tonnes FY08 FY07 FY06 FY05 STEAM COAL Production 5 574 4 111 4 665 5 523 - Grootegeluk 1 387 1 485 1 585 1 551 - Leeuwpan 1 801 1 421 1 504 1 442 - NCC 984 814 1 107 996 - NBC 561 391 469 1 534 - Inyanda(1) 841 Sales 6 139 4 061 4 772 5 794 - Domestic 3 179 2 832
Slide 42: Comparable Physical Information: KZN Sands Production
COMPARABLE PHYSICAL INFORMATION '000 tonnes FY08 FY07 FY06 FY05 MINERAL SANDS KZN SANDS Production - Ilmenite 229 367 319 356 - Zircon 34 34 50 47 - Rutile 19 17 25 23 - Pig iron 50 90 75 89 - Scrap iron 16 20 10 8 - Chloride slag 95 150 134 134 - Sulphate slag 18 26 36 30 42 Notes 40
Slide 43: Comparable Physical Information: KZN Sands Sales
COMPARABLE PHYSICAL INFORMATION '000 tonnes FY08 FY07 FY06 FY05 MINERAL SANDS KZN SANDS Sales - Ilmenite (external sales) 40 50 50 60 - Zircon 36 27 48 47 - Rutile 14 18 31 18 - Pig iron 64 91 60 79 - Scrap iron 7 8 9 11 - Chloride slag 101 163 104 150 - Sulphate slag 17 29 30 41 43 Notes 41
Slide 44: Comparable Physical Information: Namakwa Sands Production
COMPARABLE PHYSICAL INFORMATION '000 tonnes FY08 FY07 FY06 FY05 MINERAL SANDS NAMAKWA SANDS Production - Ilmenite 315 300 272 316 - Zircon 130 115 128 129 - Rutile 27 24 28 29 - Pig iron 103 91 83 99 - Scrap iron 6 11 8 - Chloride slag 135 126 112 130 - Sulphate slag 24 27 23 25 44 Notes 42
Slide 45: Comparable Physical Information: Namakwa Sands Sales
COMPARABLE PHYSICAL INFORMATION '000 tonnes FY08 FY07 FY06 FY05 MINERAL SANDS NAMAKWA SANDS Sales - Zircon 135 115 120 125 - Rutile 27 26 24 30 - Pig iron 82 86 89 90 - Scrap iron 1 1 1 - Chloride slag 145 124 126 126 - Sulphate slag 26 30 37 40 45 Notes 43
Slide 46: Comparable Physical Information: Australia Sands Production
COMPARABLE PHYSICAL INFORMATION '000 tonnes FY08 FY07 FY06 FY05 MINERAL SANDS AUSTRALIA SANDS(1) Production - Ilmenite 174 216 227 220 - Zircon 29 36 36 35 - Rutile 13 17 18 16 - Synthetic rutile 113 100 98 111 - Leucoxene 16 16 14 12 - Pigment 43 54 54 53 (1) Exxaro's effective 50% interest in Tiwe
Slide 47: Comparable Physical Information: Australia Sands Sales
COMPARABLE PHYSICAL INFORMATION '000 tonnes FY08 FY07 FY06 FY05 MINERAL SANDS AUSTRALIA SANDS(1) Sales - Zircon 35 29 32 36 - Rutile 14 16 18 18 - Synthetic rutile 62 57 27 59 - Leucoxene 17 17 10 14 (1) Exxaro's effective 50% interest in Tiwest joint venture with Tronox Inc. 47 Notes 45
Slide 48: Comparable Physical Information: Zinc and Lead
COMPARABLE PHYSICAL INFORMATION ‘000 tonnes FY08 FY07 FY06 FY05 ZINC CONCENTRATE (ROSH PINAH) - Production 94 95 104 126 - Sales: inter company 86 97 108 119 LEAD CONCENTRATE (ROSH PINAH) - Production 20 22 21 25 - Sales: export 22 19 32 35 ZINC METAL (ZINCOR) - Production 87 101 90 102 - Sales 98 9
Slide 49: Comparable Physical Information: Chifeng and Black Mountain
COMPARABLE PHYSICAL INFORMATION ‘000 tonnes FY08 FY07 FY06 FY05 ZINC METAL (CHIFENG) (1) - Production 23 23 16 15 - Sales 28 23 16 15 ZINC CONCENTRATE (BLACK MOUNTAIN)(2) - Production 15 15 18 17 LEAD CONCENTRATE (BLACK MOUNTAIN)(2) - Production 17 15 18 16 (1) Exxaro's effective interest in Chifeng
Slide 50: Base Metal Hedging
BASE METAL HEDGING: 01 JULY 2008 - 31 DECEMBER 2011 Tonnes Average USD Average Year hedged price ZAR price Zinc 2008 13 500 2 256 17 854 2009 26 400 2 251 18 939 2010 26 400 2 216 19 944 2011 26 700 2 061 19 976 93 000 2 187 19 365 Lead 2008 2 750 1 814 14 625 2009 6 675 1 591 13 509 2010 5 175 1 71
Slide 51: Project Details
PROJECT DETAILS Ownership Estimated Status Estimated Approval Scope (100% unless indicated otherwise) Capex start-up Char project - Grootegeluk Aug 2005 160ktpa R389m Ramp-up 2Q09 Committed Diepspruit Nov 2007 1.3Mtpa R136m Construction 2Q09 Eerstelingsfontein Oct 2007 1.0Mtpa R10m * 2Q09 Medupi May
Slide 52: Salient Dates
SALIENT DATES Last day to trade cum dividend 20 March 2009 Shares trade ex dividend 23 March 2009 Record date 27 March 2009 Payment date 30 March 2009 52 Notes 50
Slide 53: Powering Possibility
POWERING POSSIBILITY Notes 51
Slide 54: Notes
Notes 52
Slide 55: Audited group financial results and physical information
POWERING POSSIBILITY Audited group financial results and physical information for the 12-month period ended 31 December 2008
Slide 56: Highlights
EXXARO RESOURCES LIMITED JSE share code: EXX ADR code: EXXAY Reg No: 2000/011076/06 ISIN code: ZAE000084992 HIGHLIGHTS • Revenue increases 36% to R13,8 billion • Net operating profit up 71% to R2,5 billion • Significant maiden profit contribution from Namakwa Sands • Headline earnings of 1 058 cents
Slide 57: Condensed Group Income Statement
CONDENSED GROUP INCOME STATEMENT 2008 2007 Audited Audited Year ended 31 December Rm Rm Revenue 13 843 10 157 Operating expenses (11 376) (8 713) Net operating profit 2 467 1 444 Net financing costs (note 4) (241) (215) Share of income from investments and equity-accounted investments 1 665 730 Prof
Slide 58: Condensed Group Statement of Financial Position
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION 2008 2007 Audited Audited At 31 December Rm Rm ASSETS Non-current assets Property, plant and equipment 11 309 8 235 Biological assets 34 30 Intangible assets 79 76 Investments in associates and joint ventures (note 6) – unlisted 1 849 757 Deferred tax
Slide 59: Reconciliation of Headline Earnings
RECONCILIATION OF HEADLINE EARNINGS for year ended 31 December 2008 Gross Tax Net Rm Rm Rm Profit for the year attributable to owners of the parent 3 405 Adjusted for: – IAS 16 – Impairment of property, plant and equipment 21 21 – IAS 16 – Gains or losses on disposal of property, plant and equipment
Slide 60: Condensed Group Statement of Cash Flows
CONDENSED GROUP STATEMENT OF CASH FLOWS 2008 2007 Audited Audited Year ended 31 December Rm Rm Cash retained from operations 3 574 2 308 – net financing costs (193) (116) – tax paid (487) (462) – dividends paid (note 7) (984) (223) Cash used in investing activities – capital expenditure (1 617) (1 2
Slide 61: Group Statement of Changes in Equity
GROUP STATEMENT OF CHANGES IN EQUITY Other components of equity Attribut- Financial able Foreign instru- to currency ments Equity- owners Share Share transla- revalua- settled Retained of the Minority Total capital premium tion tion reserve income parent interest equity Rm Rm Rm Rm Rm Rm Rm Rm Rm Ba
Slide 62: Notes to the Group Financial Statement
NOTES TO THE GROUP FINANCIAL STATEMENT 1. Basis of preparation The format of the condensed report has been revised to bring it in line with the amendments to International Accounting Standard 34, Interim Financial Reporting. IAS 34 has been amended following the revision of IAS 1, Presentation of Fi
Slide 63: Tax Rate Reconciliation and Investments
2008 2007 Audited Audited Year ended 31 December % % 5. Tax rate reconciliation Taxation as a percentage of profit before taxation 13,1 26,1 Taxation effect of – assessed losses (not provided for) (0,3) (0,2) – capital profits 0,2 0,5 – disallowable expenditure (0,7) (2,1) – reclassification of prev
Slide 64: Notes to the Group Financial Statement continued
NOTES TO THE GROUP FINANCIAL STATEMENT continued Details of assets acquired are as follow: Namakwa Madencilik Skyprops Sands Total Rm Rm Rm Rm – cash paid on acquisition (30) (65) (2 662) (2 757) – purchase consideration outstanding (121) (121) – fair value of assets acquired 30 65 2 783 2 878 Goodw
Slide 65: Reported Actual Segment Results
REPORTED ACTUAL SEGMENT RESULTS 2008 2007 Audited Audited 12 months ended 31 December Rm Rm REVENUE Coal 9 040 5 087 Tied operations 2 492 1 768 Commercial operations 6 548 3 319 Mineral Sands 2 776 2 172 KZN Sands 974 984 Australia Sands 1 311 1 188 Namakwa Sands1 491 Base Metals 1 829 2 732 Rosh P
Slide 66: Comparable Unaudited Supplementary Results
COMPARABLE UNAUDITED SUPPLEMENTARY RESULTS 2008 2007 12 months ended 31 December Rm Rm REVENUE Coal 9 040 5 087 Tied operations 2 492 1 768 Commercial operations 6 548 3 319 Mineral Sands 4 142 3 464 KZN Sands 974 984 Australia Sands 1 311 1 188 Namakwa Sands1 1 857 1 292 Base Metals 1 829 2 732 Ros
Slide 67: Unaudited Physical Information
UNAUDITED PHYSICAL INFORMATION (‘000 TONNES) 12 months ended 31 December 6 months ended 31 December 2008 2007 2008 2007 Coal Production – Power station 36 700 34 246 18 118 16 830 * Tied operations1 18 095 16 732 8 962 8 353 * Commercial operations 18 605 17 514 9 156 8 477 – Coking 2 560 2 962 1 37
Slide 68: Unaudited Physical Information continued
UNAUDITED PHYSICAL INFORMATION (‘000 TONNES) continued 12 months ended 31 December 6 months ended 31 December 2008 2007 2008 2007 Australia Sands4 Production – Ilmenite 174 216 85 111 – Zircon 29 36 13 19 – Rutile 13 17 6 8 – Synthetic rutile 113 100 56 48 – Leucoxene 16 16 6 8 – Pigment 43 54 22 26
Slide 69: Comments
COMMENTS REPORTED RESULTS NOT COMPARABLE The group’s audited financial results and actual physical information for the 12-month periods ended 31 December 2008 and 2007 are not comparable as a result of the acquisition of Namakwa Sands and a 26% interest in Black Mountain Mining (Pty) Limited (Black
Slide 70: Comments continued
COMMENTS continued Exxaro has reviewed its HIV/Aids strategy with the objective of improving employee understanding of preventive behaviour to the contracting and spread of HIV/Aids and increasing the number of employees who test and enrol for treatment. At the end of 2008, the cumulative voluntary
Slide 71: Operations comments: Namakwa Sands and Australia Sands
Continued improvement initiatives are impacting positively on production with the Furnace 2 start-up in early December 2008, ramping up according to plan. Australia Sands Record synthetic rutile production was achieved during 2008 resulting from more stable operating conditions following the kiln sh
Slide 72: Comments continued
COMMENTS continued the plant and failures due to unstable electricity supply. A capital replacement programme of the flotation circuit is planned for the second half of 2009 while the crushing circuit was fully refurbished during the second half of 2008. Zinc concentrate railed from Rosh Pinah was 1
Slide 73: Project comments: Moranbah South and Mineral Sands
resources. The potential for bord and-pillar mining operations will also be explored. Moranbah South has the potential to produce premium quality hard coking coal. A pre-feasibility study and geological exploration work on a potential greenfields mine adjacent to the Grootegeluk mine with the capabi
Slide 74: Comments continued: Outlook and Final Dividend
COMMENTS continued The group will have a strong focus on capital prioritisation and working capital management together with continual business improvement initiatives and cost control to offset lower demand and price challenges. Overall, the group’s consolidated results for 2009, will largely be dr
Slide 75: Report available at www.exxaro.com
POWERING POSSIBILITY This report is available at: www.exxaro.com BASTION GRAPHICS
Slide 76: Powering Possibility
POWERING POSSIBILITY 1