Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Royal Bafokeng Platinum — H1 2021 Earnings Presentation
40 slides from Impala Platinum's earnings presentation, 2021
Slide 1: Condensed Consolidated Interim Results
CONDENSED CONSOLIDATED INTERIM RESULTS 20 FOR THE SIX MONTHS ENDED 30 JUNE 2021 21
Slide 2: Disclaimer
L] DISCLAIMER This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements beliefs or opinions including statements with respect to the Company's business financial condition and results of operations. These statements which cont
Slide 3: Contents
CONTENTS Overview Market review Operational review Financial review Outlook and guidance
Slide 4: Overview
ROYAL BAFOKENG PLATINUM
Slide 5: More than mining: financial, operational, natural highlights
More than mining Financial Operational Natural > One fatal injury > R5 499.1 million > 33.1% increase > Reviewed and updated > 35.1% decline > 1 831.9 cents > 16.1% improvement > 24.3% increase > Net cash R3 625.2 million > 392.62Ml of water treated > Commenced vaccination > > 535.0 cents decreased
Slide 6: Enterprise and Supplier Development strategy Phase 2
˃ Commenced with Phase 2 of the Enterprise and Supplier Development (ESD) strategy ˃ ESD strategy is aimed at driving meaningful economic inclusion of our host communities ˃ Paid employee salaries and wages of ˃ Paid taxes and royalties of
Slide 7: Environmental stewardship is core to our sustainability journey
Environmental stewardship is > core to our sustainability journey > > > > (which is 38.7% of total potable water consumed at the BRPM concentrator plant) > • First phase is 30MW and will be used during peak load at BRPM operations > Note: * Targets are set for 5 years, and are efficiency targets wit
Slide 8: Market Review
MARKET REVIEW
Slide 9: Global platinum and palladium supply forecast
Global platinum supply forecast Global palladium supply forecast 10.0 10.0 9.0 2.8 9.0 2.4 8.0 1.8 8.0 7.0 Peak = 6.8 7.0 6.7 2.0 1.7 6.1 6.0 6.0 2014 = 6.4 6.4 5.3 5.0 2014= 4.9 5.0 5.0 4.5 4.0 4.0 3.0 3.3 3.0 2.6 3.1 2.7 2.0 2.0 1.9 1.8 1.0 1.0 0.0 0.0 2001 2003 2005 2007 2009 2011 2013 2015 2017
Slide 10: 2020-2021 platinum demand change
2020-2021 platinum demand change 8.0 0.18 0.09 0.06 7.0 0.35 0.26 0.31 0.67 0.48 6.0 6.91 6.96 6.96 5.76 5.76 5.0 2019 2020 Auto Industrial Jewellery 2021F 2020 China ROW N. America W. Europe Japan 2021F > Total platinum demand is forecast to increase by approximately 21% to almost 7.0Moz > Recovery
Slide 11: 2020-2021 palladium demand change
2020-2021 palladium demand change 11 1.14 0.05 0.25 0.05 10 0.27 -0.02 0.28 0.32 10.35 9 10.18 10.18 9.02 9.02 8 2019 2020 Auto Jewellery Industrial 2021F 2020 ROW China N. America W. Europe Japan 2021F > Total demand is expected to increase by 13% to approximately 10Moz > Palladium automotive deman
Slide 12: Operational Review
A OPERATIONAL REVIEW
Slide 13: Operational performance, flexibility, zero harm
OPERATIONAL PERFORMANCE FLEXIBILITY Continued growth at Styldrift and improved BRPM Operational flexibility through scalable Merensky volumes supported by increased UG2 toll treatment and UG2 extraction and processing ˃ 33.1% increase in tonnes milled ˃ 69.7% increase in BRPM UG2 tonnes delivered ˃
Slide 14: Safety performance and key initiatives
Total recordable injury frequency rate Serious injury frequency rate Lost time injury frequency rate H1 2021 performance 10.000 1.500 2.500 > One fatality during the period 8.798 2.104 8.000 7.499 1.200 1.148 2.000 > Continued trend of year-on- 1.747 1.724 year improvements in serious /1 000 000 hrs
Slide 15: Continued effective Covid response
> Quarantine site fully operational Continued effective > Active community tracing 7 240 Tests administered Covid response > Our medical station personnel, wellness team and community tracing team received their vaccinations > RBPlat vaccination site operational 2 259 positive tests > 1 408 employee
Slide 16: Development, stoping and tonnes hoisted
Description Unit H1 2019 H1 2020 H1 2021 % Var Total stoping square metres Total tonnes hoisted 400 2 500 Total development km 18.9 15.0 19.2 28.0 2 158 BRPM km 15.6 12.2 16.5 35.2 326 301 2 000 Styldrift km 3.3 2.8 2.7 (3.6) 300 277 1 816 1 788 SD Total stoping square metres 000m² 301 277 326 17.7
Slide 17: Total tonnes milled and 4E metals in concentrate
Description Unit H1 2019 H1 2020 H1 2021 % Var Total tonnes milled 4E metals in concentrate Total tonnes milled kt 1 869 1 623 2 160 33.1 2 500 250 BRPM kt 1 112 913 1 172 28.4 2 160 216 199 Styldrift kt 757 710 988 39.2 2 000 1 869 200 174 Merensky kt 1 610 1 319 1 623 23.0 1 623 UG2 kt 259 304 537
Slide 18: Labour numbers and productivity
Description Unit H1 2019 H1 2020 H1 2021 % Var Working cost labour 12 000 Total labour No. 9 524 10 248 10 518 (2.6) 10 000 9 547 Working cost labour No. 8 522 9 033 9 547 (5.7) 8 522 9 033 BRPM No. 5 006 5 131 5 147 (0.3) 8 000 Styldrift No. 2 618 3 007 3 387 (12.6) Number 6 000 Central and Shared
Slide 19: Group cash operating costs
Description Unit H1 2019 H1 2020 H1 2021 % Var Total cash operating costs R'm 2 631 2 896 3 592 (24.0) Cash operating cost/tonne milled R/t 1 407 1 784 1 663 6.8 Cash operating cost/4E oz R/oz 13 211 16 685 16 649 0.2 Cash operating cost/tonne milled stock adjusted R/t 1 407 1 629 1 667 (2.3) Cash o
Slide 20: BRPM cash operating cost per 4E ounce
Cash operating cost/4E ounce Description Unit H1 2019 H1 2020 H1 2021 % Var 20 000 BRPM cash operating costs R'm 1 432 1 445 1 795 (24.2) 15 452 16 000 14 490 Cash operating cost/tonne milled R/t 1 288 1 582 1 531 3.2 11 589 12 000 Cash operating cost/4E oz R/oz 11 589 14 490 15 452 (6.6) R/4E oz Ca
Slide 21: Styldrift cash operating cost per 4E ounce
Cash operating cost/4E ounce Description Unit H1 2019 H1 2020 H1 2021 % Var 25 000 Styldrift cash operating costs R'm 1 199 1 451 1 797 (23.8) 19 649 20 000 18 045 Cash operating cost/tonne milled R/t 1 583 2 044 1 820 11.0 15 865 15 000 Cash operating cost/4E oz R/oz 15 865 19 649 18 045 8.2 R/4E o
Slide 22: Capital expenditure
Description Unit H1 2019 H1 2020 H1 2021 % Var Stay-in-business R173 million for H1 2021 capital > 4.8% of total operating costs Stay-in-business capital (SIB) R'm 53 113 173 (53.1) SIB % of total operating costs % 2.0 3.9 4.8 (23.1) R308 million for H1 2021 Replacement capital R'm 6 112 308 (175.0)
Slide 23: Styldrift project scope complete
99% R178m R13.7bn R14.0bn 639koz (4E) H1 2021 Expenditure Spent to date EAC Produced to date PROJECT SCOPE COMPLETE 230ktpm production Key project milestones infrastructure Project start - September 2009 - complete - Total footprint developed - 38.8km Main and Services shafts • 1.5km shaft sin
Slide 24: Styldrift: improving operational efficiency and maturity
STYLDRIFT – WORKING ON IMPROVING OPERATIONAL EFFICIENCY AND MATURITY 600 Level reef footprint Business Improvement (BI) process implemented Revised production performance incentive structures Commissioning of an additional two spare IMS sections Third strike belt extension crew mobilized Leg
Slide 25: Styldrift operating deliverables and hoisting
Stoping square metres Tip-to-face tramming distance Continue to focus on key operating 180 deliverables to achieve operational 140 160 maturity and embed high performance 120 129 140 culture 100 120 108 106 108 98 100 Minimising tip-to-face distance 80 90 kt m 80 60 Maintaining a healthy ore res
Slide 26: Positioned to deliver long-term value: TSF, MF2 upgrade, studies
Positioned to deliver long-term value 01 BRPM tailings storage facility 02 Maseve MF2 upgrade 03 Project studies > Construction progressed steadily during > Project was impacted by Covid-19 related > Styldrift life of mine optimisation study the period construction delays and remedial civil works re
Slide 27: Operational priorities
Operational stability Styldrift operational maturity Continue developing operational flexibility Cost management and control Environmental, social and governance stewardship
Slide 28: Financial Review
FINANCIAL REVIEW Sin eel ale sae a sia di ig iim: La! | a Cae Vays ROYAL BAFOKENG PLATINUM
Slide 29: Income statement summary and EBITDA
6 months ended 6 months ended YoY Year ended 31 4E Ounces Description Unit 30 June 2021 30 June 2020 % change December 2020 500 450 Revenue R’m 9 584 4 606 108.1 13 379 400 350 304 300 Cost of sales R’m (4 423) (3 385) (30.6) (7 949) koz 250 200 Gross profit R’m 5 162 1 221 322.8 5 431 150 100 216 O
Slide 30: Headline earnings and dividend per share
6 months ended 6 months ended YoY Year ended 31 Description Unit 30 June 2021 30 June 2020 % change December 2020 Attributable comprehensive income R’m 4 893 870 462.7 3 529 Less: Profit on disposal of PPE and other assets R’m (22) (7) (220.3) (40) Headline earnings R’m 4 871 863 464.6 3 489 Weighte
Slide 31: Headline earnings per share bridge
cents per share 0 250 500 750 1 000 1 250 1 500 1 750 2 000 2 250 Headline earnings per share - H1 2020 335.3 Revenue - volume increase 715.3 Revenue - exchange rate (643.7) Revenue - metal prices 1 785.5 Increase in net finance costs (80.0) Cost - volume increase (359.8) Real cost savings 177.4 Dec
Slide 32: Strong PGM basket price and volumes support revenue growth
STRONG PGM BASKET PRICE AND VOLUMES SUPPORT REVENUE GROWTH 6 months ended 6 months ended YoY Year ended Revenue contribution Description Unit 30 June 2021 30 June 2020 % change 31 December 2020 3.1% 1.1% 2.0% 0.2% Average basket price R/Pt oz 66 202 43 681 51.6 47 892 4.1% 22.2% Average basket price
Slide 33: Cost of sales
6 months 6 months Year ended Drivers of cost of sales* YoY Description Unit ended ended 31 December % change 30 June 2021 30 June 2020 2020 Cost of sales R’m (4 423) (3 385) (30.6) (7 949) 36% 39% Cost of sales (excl. depreciation and amortisation) R’m (3 794) (3 015) (25.8) (6 867) H1 2021 Deprecia
Slide 34: Segment results: BRPM and Styldrift
RBR BRPM Styldrift operations Description mining mining segments segment segment 2021 RBR operational EBITDA (2015 to H1 2021) Six months ended 30 June 2021 R’m R’m R’m 6 883 7 000 5 887 Revenue 9 584 5 547 4 038 6 000 2 351 Cost of sales (4 368) (2 105) (2 263) 5 000 2 040 R’ million 4 000 Cash cos
Slide 35: Cash flow and cash position
6 months ended 6 months ended 30 YoY Year ended Description Unit 30 June 2021 June 2020 % change 31 December 2020 Cash generated from operating activities R’m 3 243 3 861 (16.0) 5 826 - Cash generated from operations R’m 5 002 1 764 183.6 3 783 - Proceeds from the gold streaming transaction R’m - 2
Slide 36: Capital allocation framework
Our capital allocation framework is integrated into our strategy, budget, planning and management processes. Assessment Valuation Optimal of financial process funding risk and structure returns measure ongoing impact on: performance of: assessment of: Maximise Manufactured capital Operational Optima
Slide 37: Strong liquidity and funding; R2.0 billion capital return
> Strong liquidity and funding > Total of R2.0 billion capital return for the period Note: *
Slide 38: Financial summary and focus areas
> Continued transformation > Strong financial > Discipline in > Finance focus areas of Royal Bafokeng Platinum performance capital allocation for 2021 and beyond • Delivered 15.5% return on • EBITDA of R5 499 million • Maintain robust • Close monitoring of capital employed (H1 2020: R2 088 million)
Slide 39: Outlook and Guidance
OUTLOOK AND GUIDANCE ROYAL BAFOKENG PLATINUM
Slide 40: 2021 guidance: production, costs and capex
> Continued focus on improving our key injury frequency rates > Production is forecast to be between 4.60Mt and 4.75Mt, yielding between 475koz and 485koz 4E metals in concentrate > Forecast built-up head grade of between 3.90g/t and 3.93g/t (4E) > Total cash operating cost per 4E ounce is forecast
Royal Bafokeng Platinum — H1 2021 Earnings Presentation on 6ix