Royal Bafokeng Platinum — Technical Presentation (November 2015)
29 slides from Royal Bafokeng Platinum's technical presentation, Nov 17, 2015
Slide 1: RBPlat – Styldrift I Site Visit
LEVERAGING OUR ASSETS THROUGH FLEXIBILITY RBPlat – Styldrift I Site Visit 17 November 2015
Slide 2: Disclaimer
Disclaimer The information presented in this presentation is of a general nature and the forward-looking information, opinions and beliefs of the Company and its affiliates are based on various market related assumptions. Changes in market circumstances after the production of the information may im
Slide 3: Contents
CONTENTS 1. Safety, health and environment 2. Location and brief geological overview 3. The PGM industry and our strategies 4. Styldrift I – The way forward 5. Conclusion
Slide 4: Safety, health and environment
Safety, health and environment >
Slide 5: The RBPlat SHE Strategy – Zero harm through resilience
The RBPlat SHE Strategy – Zero harm through resilience LTIFR /200,000 Safety 1.20 • Rates in-line with national milestones 1.00 • Key targets 0.80 › ZERO fatalities Rate 0.60 › Target 20% year-on-year improvement in LTIFR and SIFR 0.95 0.91 0.40 Road to resilience 0.68 0.61 0.53 0.20 • Competent peo
Slide 6: Location and geological setting
LOCATION AND GEOLOGICAL SETTING >
Slide 7: BRPM JV location relative to neighbouring mines
BRPM JV location relative to neighbouring mines RBPlat – Styldrift I Site Visit 7 17 November 2015
Slide 8: Bushveld Complex
Bushveld Complex Upper Zone Main Zone Merensky Reef Unconformity Critical Zone Northern Limb Transvaal Sequence Lower Zone Bushveld Igneous Complex > Suite of mafic sills intruded floor rocks of the Transvaal Supergroup Western Limb Eastern Limb > Rustenburg Layered Suite: Largest mafic layered Igne
Slide 9: Geological Schematic: Styldrift
Geological Schematic: Styldrift 8000 E 10000 E 12000 E 14000 E 16000 E 18000 E 20000 E Z - Elevation (mamsl) -610 to -400 -806000 N -806000 N -400 to -200 -200 to 0 B 0 - 200 Styldrift I Styldrift II 200 - 400 400 - 600 600 - 800 -808000 N -808000 N 800 - 1200 BRPM -810000 N -810000 N A Western Bush
Slide 10: Merensky Reef Grade Profile
600 Level Merensky Reef Grade Profile 4e g/t 0 5 10 15 20 25 30 35 130 0.11 120 0.08 110 0.97 Best Cut Parameters 100 0.95 90 0.7 80 0.97 70 1.06 Merensky Hangingwall 60 1.26 Stratigraphic Position (cm) Feldspathic Pyroxenite 50 2.21 40 2.43 80cm HW 80cm HW 30 3.27 20 11.69 Pegmatoidal Feldspathic P
Slide 11: The PGM industry and our strategies
The PGM industry and our strategies >
Slide 12: Tailored strategies with inherent flexibility drive efficiencies and create value
Tailored strategies with inherent flexibility drive efficiencies and create value • Significant reduction in LTIFR and SIFR • Effective operational flexibility › UG2 mining platform established • Strong stakeholder relations › BRPM Merensky Phase III replacement › Limited industrial action project a
Slide 13: The SA PGM industry – a challenging environment
The SA PGM industry – a challenging environment 1 Protecting asset value and shareholder wealth – Our approach Sovereign Declining debt crisis • Expect medium to longer term rebound Merensky 1 & depressed • Continue to strategically develop Styldrift I with due cognisance of reserves and commodity p
Slide 14: Deteriorating PGM prices – our response
Deteriorating PGM prices – our response RBPlat / BRPM JV • $/oz Pt basket price reduced by 30% • Capital deferment from June 2014 to Aug 2015 • Styldrift expenditure “self funding” • R/oz basket price reduced by 18% over • Rescheduling and restructuring of mining the same period activities – maximis
Slide 15: Styldrift I The way forward
Styldrift I The way forward >
Slide 16: Styldrift Mine – A high grade, shallow, mechanised Merensky mine
Styldrift Mine – A high grade, shallow, mechanised Merensky mine High quality Shallow Merensky Key operating Production ramp up Merensky mine statistics • Shallow dip 40 - 60 • Twin vertical shaft system: • Mechanised bord and pillar • First ROM production Q3 2015 • Resource grade of 6.94g/t 4E › 10
Slide 17: Styldrift I – a brief history
Styldrift I – a brief history…. 2009 2010 2011 2012 2013 2014 2015 • Site establishment • Bulk earthworks • Pre-sink completed • Shaft sinking on- • Sinking progressed • Surface & U/G ore • Sinking contract • Terrace bulk completed April going to 708L on Main handling terminated earthworks • Bulk ci
Slide 18: Styldrift – timing to maximise the revenue stream
Styldrift – timing to maximise the revenue stream Styldrift I strongly platinum biased Merensky focus Revenue from base metals Revenue from PGMs (4E) • Historically, Merensky reef has commanded a 25% premium over 100% UG2 reef on a revenue per tonne basis 6% 17% 13% 7% 80% • High Pt:Pd ratio of 2.3:
Slide 19: Revised Styldrift construction programme
Revised Styldrift construction programme Strategically aligning construction and production activities to optimise cashflow whilst maintaining the flexibility to ramp- up as and when conditions permit • Align construction progress/activities with • Optimise timing of processing requirements with mar
Slide 20: Strategically align work with current market conditions and forecast
Strategically align work with current market conditions and forecast Impact of price on ability to do work Pricing below R17 500 /Pt oz Pricing above R17 500 /Pt oz Ramp-up of project Zone of progression • Sustained basket prices above R18 500/Pt oz • Develop key infrastructure • Positive market sen
Slide 21: Styldrift I revised construction programme
Styldrift I revised construction programme 2015 Mining and construction - R17,000/Pt oz 2016 Mining and construction – R17,500/Pt oz • Development of underground infrastructure on 600 • Complete 250ktpm concentrator upgrade level • 100ktpm module – upfront design work › Workshops • Continue to devel
Slide 22: 600 Level development and construction activities
600 Level development and construction activities Two sections LEGEND pre-established West Development focus Current workings – Sept 2015 • Maximise available face-length Infrastructure completed end 2016 Service # • Access around shaft infrastructure Deferred infrastructure • Pre-develop footprint
Slide 23: 642 Level mining and construction activities
642 Level mining and construction activities LEGEND Service # Current workings – Sept 2015 Development focus Infrastructure completed 2016 • Ore handling infrastructure Deferred infrastructure • Access/Advance decline north and south • North 1 and South 1 ore-passes Top of • 2 development crews intr
Slide 24: Level development and construction activities
708 Level development and construction activities LEGEND Current workings – Sept 2015 Development focus Infrastructure completed 2016 • Ore handling infrastructure Deferred infrastructure • Water handling infrastructure • Level hand over Service # Main # Settler 1 Silo 1 Silo 2 Settler 2 Silo 3 Silo
Slide 25: “De-risking” the ramp-up
“De-risking” the ramp-up LEGEND Original Revised Current workings – Sept 2015 Description Ramp-up Ramp-up Original ramp-up footprint Revised ramp-up footprint end 2016 Sections pre-established 2 4 Deferred infrastructure Service Two sections pre-established # Stoping face-length 335m 800m West Works
Slide 26: Conclusion
CONCLUSION >
Slide 27: Styldrift Key outputs
Styldrift Key outputs Revised Styldrift ramp-up Recovered ounces (4E) 3000 350.0 2500 300.0 2000 250.0 200.0 ktpm koz 1500 150.0 1000 100.0 500 50.0 0 0.0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 • Total cash outflows related to Styldrift construction activities Description Unit H1-2015 H2-
Slide 28: BRPM JV Production profile
BRPM JV Production profile Merensky contribution RBPlat production plan 4.5 100% 4.0 90% 80% 3.5 70% 3.0 % Contribution 60% 2.5 50% Mt 2.0 40% 1.5 30% 1.0 20% 0.5 10% 0.0 0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017 2018 2019 2020 2021 2022 2023 2024 Merensky UG2 SD1 Merensky North Shaf
Slide 29: Styldrift I remains a sound investment
Styldrift I remains a sound investment The Styldrift project remains a key part of the Company’s organic growth strategy and continues to be developed mainly for the following reasons: • RBPlat is ungeared with a strong balance sheet • 70% of Styldrift expenditure in 2016 funded from surplus BRPM ca
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