Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — Investor Presentation (March 2006)

25 slides from Impala Platinum's investor presentation, March 2006

  1. Slide 1: Investor presentation March 2006 - Introducing Implats

    Investor presentation March 2006 Introducing Implats Contribution by metal Implats is in the business of Other, 5.50% Palladium, mining, refining and 8.50% marketing platinum group Nickel, metals and associated base 10.50% Platinum, 64.80% metals Rhodium, 10.70% 2 1

  2. Slide 2: Implats … Key statistics

    Implats … ƒ is the premier global platinum investment ƒ strives to ƒ be the best platinum producing company and ƒ deliver superior returns to its shareholders ƒ produced 1.848 million ounces of platinum in FY2005 equivalent to around 25% of global supplies (0.938 million ounces Share price (US$ equi

  3. Slide 3: Location of operations and interests; Group structure

    Location of operations and interests 5 Group structure IMPLATS Mine-to-market Impala Refining Investments Services (IRS) operations (100%) Impala 100% Platinum Aquarius Platinum (8.6%) Marula 100%* Concentrate 51% Platinum offtake agreements Aquarius Platinum 86.9% SA (20%) Zimplats 50% Toll refinin

  4. Slide 4: Market review - Platinum reserves and resources

    Platinum reserves and resources (attributable) ƒ 215.1 Moz attributable reserves and resources at as 30 June 2005 Aquarius, 1% Mimosa, 2% Two Rivers, 1% Impala Platinum, 35% Zimplats, 57% Marula Platinum, 5% 7 Market review 4

  5. Slide 5: Sales volume by metal; Strong dollar metal prices

    Sales volume by metal H1 2006 H1 2005 % change FY2005 Platinum (000oz) 833 803 4 1,562 Palladium (000oz) 440 394 12 826 Rhodium (000oz) 93 91 2 177 Nickel (000t) 6.7 7.0 (4) 14.6 9 Strong dollar metal prices revenue received per Pt oz sold R/Pt oz $/Pt oz 10,500 1,500 10,000 1,400 9,500 1,300 9,000

  6. Slide 6: Prices achieved by metal; The platinum story

    Prices achieved by metal H1 2006 H1 2005 % change FY2005 Platinum ($/oz) 911 829 10 840 Palladium ($/oz) 207 221 (6) 208 Rhodium ($/oz) 2,260 1,001 126 1,217 Nickel ($/t) 14,218 13,945 2 14,592 $ revenue per Pt oz 1,452 1,227 18 1,279 Exchange rate (ave) 6.49 6.21 4.5 6.20 R revenue per Pt oz 9,423

  7. Slide 7: Platinum surplus/deficit; The palladium story

    Platinum surplus/deficit price 000oz $/oz 400 1000 200 800 0 600 -200 400 -400 200 -600 -800 0 CY99 CY99 CY00 CY00 CY01CY01 CY02 CY02 CY03CY03 CY04 CY04 CY05 CY05 CY06 growth fuelled by strong automotive diesel demand 13 The palladium story ƒ Demand showing encouraging signs of recovery ƒ Fuelled by

  8. Slide 8: Palladium surplus/deficit; The rhodium story

    Palladium surplus/deficit price 000oz $/oz 1200 800 900 700 600 600 500 300 400 0 300 -300 200 -600 100 -900 0 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 above-ground stocks cap price 15 The rhodium story ƒ Market moved into deficit in 2005 ƒ Implementation of stricter NOx standards in gasoline engines

  9. Slide 9: Rhodium; Financial review

    Rhodium surplus/deficit price 000oz $/oz 200 3000 2500 150 2000 100 1500 50 1000 0 500 -50 0 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 tightening NOx legislation driving demand 17 Financial review 9

  10. Slide 10: Highlights – interim 2006; Earnings & dividend

    Highlights – interim 2006 Period on period ƒ Sales revenue up 28% to R7.9 billion ƒ Revenue per platinum ounce ƒ Up 24% in rand terms ƒ 18% higher in dollars ƒ Unit costs contained to a 4.2% increase ƒ Group gross margin of 42% 19 Earnings & dividend – interim 2006 ƒ Headline earnings up 78% to R28.

  11. Slide 11: Income statement; Headline profit by entity

    Income statement R million H1 2006 H1 2005 % change FY2005 Sales 7,920 6,188 28 12,541 Cost of sales (4,615) (4,167) (11) (8,318) Gross profit 3,305 2,022 64 4,223 Share of profit of 41 204 (80) 204 associates Royalty expenses (379) (231) (64) (415) Profit before tax 2,769 3,372 (18) 6,334 Profit 1,

  12. Slide 12: Cash flows; Group capex

    Cash flows Cash at end December 2005 Rm 5,000 4,000 3,000 2,000 1,000 0 Dec 2004 June 2005 Dec 2005 23 Group capex ƒ Significant capital expenditure planned - ƒ in excess of R11 billion over next five years Rm 3000 2500 2000 1500 1000 500 0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 24 12

  13. Slide 13: Operational review - Group safety

    Operational review Group safety Fatal injury frequency rate Lost-time injury frequency rate (per million man hours) (per million man hours) Lost Time Injury Frequency Rate 0.250 12.00 10.00 0.200 8.43 0.158 7.90 (per million man hours) 8.00 0.150 0.139 0.134 6.00 5.65 0.104 0.100 0.093 4.80 3.57 3.6

  14. Slide 14: Group operational review – tonnes milled and refined platinum

    Group operational review – tonnes milled 000t H1 2006 H1 2005 % change FY2005 Impala 8,555 7,829 9 15,778 Marula 463 457 1 766 Mimosa 764 673 14 1,424 Zimplats 995 1,024 (3) 2,058 Group* 10,394 9,646 8 19,315 * Group includes 50% of Mimosa 27 Group operational review – refined platinum production 00

  15. Slide 15: Cost per platinum ounce; Location – South African operations

    Group operational review – cost per platinum ounce R/oz H1 2006 H1 2005 % change Impala (Refined) 4,468 4,274 (4.5) Marula (In concentrate) 9,397 10,104 7.0 Mimosa (In concentrate) 4,721 5,282 10.6 Zimplats (In matte) 6,760 5,896 (14.7) Group (Refined) 4,749 4,557 (4.2) 29 Location – South African m

  16. Slide 16: Impala Platinum; Focus on costs through technology

    Impala Platinum ƒ Record performance ƒ Recoveries up 2.5% to 85% ƒ Drill jig implementation – 6% efficiency improvement ƒ BMR and PMR expansions to 2Moz platinum completed ƒ PMR expansion to 2.3Moz platinum approved ƒ 16 and 20 shafts ahead of schedule 31 Impala – focus on costs through technology ƒ

  17. Slide 17: Marula Platinum; Two Rivers Platinum

    Marula Platinum ƒ Capital expenditure of R830 Mill feed grade million 4.00 ƒ Cash break-even achieved 3.90 3.80 ƒ Footwall project five months 3.70 3.60 ahead of schedule 3.50 Apr-Jun Jul-Sep Oct-Dec ƒ Transition to owner-mining ƒ efficiencies improved, but Tonnes broken per shift hampered by sporad

  18. Slide 18: Location – Zimbabwean operations; Zimplats

    Location – Zimbabwean mine-to-market operations 35 Zimplats ƒ Transition to underground Grade mining operations underway 3.7 ƒ Feasibility study on expansion 3.5 3.3 to 145,000 ounces platinum to g/t 3.1 be submitted to May board 2.9 2.7 ƒ Incremental growth planned Apr - Jun Jul - Sep Oct - Dec for

  19. Slide 19: Mimosa; Impala Refining Services

    Mimosa ƒ Expansion to 80 000 platinum oz on track for May commissioning ƒ Potential for further expansion to 130 000 platinum oz ƒ JV with Aquarius 37 Impala Refining Services ƒ Undertakes processing of third party material - toll-refining activities and concentrate purchases ƒ One of the world’s la

  20. Slide 20: Location – Investments in PGMs; Aquarius Platinum

    Location – Investments in PGMs 39 Aquarius Platinum ƒ Equity-accounted earnings from Aquarius ƒ Production up 15% in FY2005 ƒ Contributes to IRS ƒ Three mines – ƒ Kroondal at peak performance and ƒ Marikana ramping up ƒ Everest commenced production in December 2005 (scheduled to produce 145,000 oz o

  21. Slide 21: Corporate Activity

    Corporate Activity Corporate Activity ƒ Announced sustainable BEE transaction ƒ Exited Ambatovy nickel project 42 21

  22. Slide 22: Two-tier empowerment structure; Structure of RBR transaction

    Two-tier empowerment structure • Anchor empowerment partner – RBR • RBR will gain a direct holding of approximately 9% in Implats • Transaction includes Local Economic Development Trust with the primary objective of uplifting local communities and women in particular • Employee Share Ownership Progr

  23. Slide 23: Employee Share Ownership Scheme (ESOP); Over 26% BEE ownership

    Employee Share Ownership Scheme (ESOP) ƒ Implats makes capital contribution to ESOP trust ƒ R1.8 billion to purchase 2.05 million (3%) Implats shares - equivalent to 25% of total transaction ƒ 28,304 eligible employees (Patterson A,B and C grades) including 26,962 HDSA employees ƒ Eligible employees

  24. Slide 24: Ambatovy nickel project exit; Conclusion

    Ambatovy nickel project ƒ Exited project in November 2005 following a detailed review ƒ Capital costs higher than those estimated in the initial study ƒ Total cost in the region of $ 25 million ƒ Rationale for expanded BMR still exists 47 Conclusion 24

  25. Slide 25: Prospects

    Prospects ƒ Robust PGM market 2500 ƒ Increase in production to 2000 2.3 million platinum ounces 1500 by FY2010 on track 1000 ƒ Significant further upside 500 potential in Zimbabwe 0 00 05 10 FY FY FY ƒ Safety, cost containment M ine to m ark e t 3rd party proce s s ing and grade management Lonplats

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