Impala Platinum Holdings Limited · JSE:IMP

Impala Platinum — FY2007 Earnings Presentation

20 slides from Impala Platinum's earnings presentation, Aug 30, 2007

  1. Slide 1: Annual Results FY2007 Key features - financial

    Empowering our people, growing our production Annual Results FY2007 Key features - financial Sales revenue up 80% to R31.5 billion (US$4.4 billion) Heps (cents) on higher metal prices 1,500 Gross profit doubled to R14.5 billion 1,200 Up 75% Record headline earnings per share 900 up 75% to R13.12 600

  2. Slide 2: Key features - operational and corporate

    Key features - operational Safety performance unsatisfactory Gross refined platinum Record platinum production of 000 Oz production 2.026 million ounces 2,100 Up Group gross margin up 10% to 10% 1,800 46% Group unit cost* up 21% due to 1,500 lower production from Impala Group capital expenditure up

  3. Slide 3: Market review: Sales volumes by metal

    Empowering our people, growing our production Market review Sales volumes by metal FY07 FY06 % change Platinum (000oz) 1,827 1,582 16 Palladium (000oz) 870 896 (3) Rhodium (000oz) 206 193 7 Nickel (000t) 16.3 14.8 10 6 3

  4. Slide 4: Average prices achieved; Metal prices surge

    Average prices achieved FY07 FY06 % change Platinum ($/oz) 1,185 988 20 Palladium ($/oz) 334 258 29 Rhodium ($/oz) 5,152 3,015 71 Nickel ($/t) 34,486 15,343 125 Basket ($/Pt oz sold) 2,369 1,721 38 Exchange rate (R/$) 7.20 6.37 13 7 Metal prices surge Rand basket revenue per Pt oz sold R/Pt oz 18,00

  5. Slide 5: Platinum fundamentals remain robust

    Platinum fundamentals remain robust Price 000 oz ($/oz) 100 1400 50 1200 0 1000 (50) 800 (100) 600 (150) 400 (200) 200 (250) 0 CY03 CY04 CY05 CY06 CY07 Market moves back into deficit Surplus/(Deficit) Pt Price Forecast 9 Shanghai platinum trade Price Kgs/day ($/oz) 350 1,340 300 1,320 1,300 250 1,28

  6. Slide 6: Palladium fundamentals improve; Rhodium demand remains strong

    Palladium fundamentals improve Price 000 oz ($/oz) 1600 400 1200 300 800 200 400 100 0 0 CY03 CY04 CY05 CY06 CY07 Balanced market Surplus Pd Price Forecast 11 Rhodium demand remains strong Price 000 oz ($/oz) 120 6000 90 5000 60 4000 30 3000 0 2000 (30) 1000 (60) 0 CY 03 CY 04 CY 05 CY 06 CY 07 Mark

  7. Slide 7: Contribution to sales revenue by metal; Financial review

    Contribution to sales revenue by metal FY06 FY07 Platinum Palladium Rhodium Nickel Ruthenium Other 13 Empowering our people, growing our production Financial review 7

  8. Slide 8: Group gross profit highlights; Headline earnings

    Group gross profit highlights Rm FY2007 FY2006 % change Sales 31,481 17,500 80 Cost of sales 17,009 10,170 67 Gross profit 14,472 7,330 97 Average exchange rate 7.20 6.37 13 (R/$) 15 Headline earnings Rm 12,000 1,695 7,142 10,000 852 1,442 8,000 132 7,232 6,000 Up 83% 3,947 4,000 2,000 0 FY2006 Gros

  9. Slide 9: Normalised headline earnings by entity; Cash net of all debt

    Normalised headline earnings by entity Rm 10,000 766 9,022 298 790 8,000 598 Up 2,529 123% 6,000 4,041 4,000 2,000 0 Normalised Impala IRS Zimbabwe Marula Other Normalised headline operations headline earnings earnings FY2006 FY2007 17 Cash net of all debt Rm 4,000 3,000 2,000 1,000 0 FY 03 FY 04 FY

  10. Slide 10: Operational review: Group safety

    Empowering our people, growing our production Operational review Group safety Fatal injury frequency rate (per million man hours) 0.16 0.32 0.14 0.28 0.12 0.24 0.1 0.20 0.08 0.16 0.06 0.12 0.04 0.08 0.02 0.04 0 0.00 industry Rio Tinto Noranda BHPB AngloGold Xstrata Gold Fields Implats American FY 03

  11. Slide 11: Group safety; Group tonnes milled

    Group safety Lost-time injury frequency rate (per million man hours) 15 6 5 12 4 9 3 6 2 3 1 0 0 Noranda Xstrate Gold Fields BHPB industry Implats AngloGold Rio Tinto American FY 03 FY 04 FY 05 FY 06 FY 07 SA Pt Anglo 21 Group tonnes milled 000t FY2007 FY2006 % change Impala 16,302 16,441 (1) Marula

  12. Slide 12: Group refined platinum production; Group cost per platinum ounce

    Group refined platinum production 000 oz FY2007 FY2006 % change Impala 1,055 1,125 (6) Marula 61 37 65 Mimosa 69 66 5 Zimplats 91 89 2 Other IRS 750 529 42 Group 2,026 1,846 10 23 Group cost per platinum ounce R/oz FY2007 FY2006 % change Impala* (Refined) 5,612 4,584 (22) Marula* (In concentrate) 8,

  13. Slide 13: Group operating margins; Impala

    Group operating margins % FY 2007 FY 2006 % change Impala 62 53 16 Marula 46 19 150 Zimplats 55 42 31 Mimosa 69 53 31 IRS 13 14 (8) Group 46 42 10 25 Impala Production update Future production New shafts on schedule Smelter and Refineries expansions to 2.8 million ounces approved 26 13

  14. Slide 14: Progress on turnaround plan; Production parameters

    Progress on turnaround plan Focus on people • Retention strategy - salary adjustments • Bonus scheme - efficiencies up 10% • Accommodation strategy - better living conditions • ESOP - all employees shareholders • Two year wage settlement • CEO Roadshow - improved communication Motivated employees 27

  15. Slide 15: Marula; Afplats

    Marula Safety satisfactory Tonnes milled up 49% and platinum production up 63% to 65,200 ounces Unit costs decline as production builds up Conversion to conventional mining ahead of schedule Feasibility study on Merensky Reef project under way 29 Afplats R4.2 billion acquisition of Afplats with an e

  16. Slide 16: Two Rivers; Zimplats

    Two Rivers Production of 87,900 ounces of platinum in concentrate in FY2007 Ramp up to full production of 120,000 ounces of refined platinum scheduled for FY2009 Second decline being developed 31 Zimplats Excellent safety performance Record platinum production of 96 500 ounces of platinum in matte P

  17. Slide 17: Mimosa; IRS

    Mimosa Safety disappointing 8.3% increase in platinum production to 78,200 ounces in concentrate Mill failure led to lower than anticipated production Wedza Phase V expansion to 95,000 ounces of refined platinum per annum in January 2008 33 IRS Record platinum production of 971 000 ounces of platinu

  18. Slide 18: Implats scorecard; Growth

    Implats scorecard Safety Production/growth - Implats ☺ - Impala - Afplats ☺ Unit cost control Licence conversions BEE ownership ☺ Returns to shareholders ☺ 35 Empowering our people, growing our production Growth 18

  19. Slide 19: 5 year capex plan; Conclusion

    5 year capex plan Oz 000 Rm 3000 7500 2500 6000 IRS Other 2000 Eastern Limb 4500 1500 Zimbabwe 3000 1000 Western Limb 1500 500 0 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Afplats Marula Merensky Zimplats Phase 1 Refinery expansion Smelter expansion Maintenance capex 37 Conclusion Fundamentals for PGMs re

  20. Slide 20: Annual Results FY2007

    Empowering our people, growing our production Annual Results FY2007 20

Impala Platinum Holdings — FY2007 Earnings Presentation on 6ix