Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — FY2008 Earnings Presentation
20 slides from Impala Platinum's earnings presentation, Aug 28, 2008
Slide 1: Annual Results FY2008
Annual Results FY2008 28 August 2008 Empowering our people, growing our production Key features - financial Sales revenue up 19% to R37.6 billion Heps (cents) (US$5.1 billion) on higher metal prices 2100 Gross profit rose 23% to R17.7 billion 1800 Up 57% Group gross margin increased to 47% 1500 Reco
Slide 2: Key features - operational and corporate
Key features - operational Gross refined Safety performance improved platinum production 000 Oz Power and safety issues impacted on production 2000 Gross platinum production of 1.91Moz Group unit cost up 17% to R6 930* Group capital expenditure increased by 1700 86% to R5.4 billion 1400 FY04 FY05 FY
Slide 3: Financial review: gross profit highlights
Financial review Empowering our people, growing our production Gross profit highlights Rm FY2008 FY2007 % change Sales revenue 37 619 31 481 19 Cost of sales 19 888 17 009 17 Gross profit 17 731 14 472 23 Closing exchange rate (R/$) 7.93 7.06 12 Group cost per unit (R/oz) 6 930 5 921 17 Empowering o
Slide 4: Unit costs and headline earnings
Unit costs* R/oz 60 133 Up 216 17% 600 6500 6 930 5 921 5500 initiatives Inflation retention Volumes and FY2007 FY2008 Safety Skills grade * Excluding share based payments Empowering our people, growing our production 7 Headline earnings Rm 1 790 1 595 14000 1 055 12000 290 Up 3 259 454 73% 10000 80
Slide 5: Cash net of all debt and capex
Cash net of all debt Rm 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 FY03 FY04 FY05 FY06 FY07 FY08 Empowering our people, growing our production 9 Capex R30 billion capex programme over next 5 years Rm 8,000 7,000 6,000 5,000 Mimosa Zimplats expansion 4,000 Leeuwkop 3,000 Marula Merensky 2,000 Mar
Slide 6: Group safety: fatal injury frequency rate
Operational review Empowering our people, growing our production Group safety Fatal injury frequency rate 0.24 (per million man hours) , 0.20 0.14 0.12 0.16 0.10 0.12 0.08 0.08 0.06 0.04 0.04 0.02 0.00 0.00 Xstrata Gold Fields BHPB* Platinum Implats Lonmin AngloGold Rio Tinto SA Platinum American FY
Slide 7: Group safety and tonnes milled
Group safety Lost-time injury frequency rate (per million man hours) 12 5 , 9 4 3 6 2 3 1 0 0 Platinum SA Platinum Lonmin Rio Tinto BHPB AngloGold Xstrata Gold Fields Implats American FY04 FY05 FY06 FY07 FY08 Anglo Industry Anglo Implats Group Benchmark Empowering our people, growing our production
Slide 8: Group refined platinum production and cost per ounce
Group refined platinum production 000 oz FY2008 FY2007 % change Impala 1 044 1 055 (3) Marula 66 61 8 Zimplats 91 91 - Mimosa 73 69 6 Other IRS 633 750 (16) Gross production 1 907 2 026 (6) Lonmin (9) (162) Headline production 1 898 1 864 2 Empowering our people, growing our production 15 Group cost
Slide 9: Group operating margins and Impala
Group operating margins % FY 2008 FY 2007 % change Impala 65 62 5 Marula 58 46 24 Zimplats 53 55 (4) Mimosa 69 69 - IRS 12 13 (8) Group 47 46 2 Empowering our people, growing our production 17 Impala Safety improved Tonnes milled decline by 3% as less Merensky ore mined Refined platinum production d
Slide 10: Marula and Zimplats
Marula Safety unsatisfactory Tonnes milled unchanged at 1.45 million tonnes Refined platinum production increased by 8% to 66 000 ounces Unit costs rose by 6% to R9 020 Head grade up 8% to 4.44 g/t Capital expenditure of R345 million Full conventional mining production scheduled for FY2011 Feasibili
Slide 11: Mimosa and Two Rivers
Mimosa Safety improved Tonnes milled increased by 2.4% to 1.73 million Refined platinum production increased by 6% to 73 000 ounces Unit costs increased by 30% to R7 023 Head grade marginally down at 3.6 g/t Capital expenditure of R289 million In-fill drilling for Wedza VI expansion is underway Empo
Slide 12: IRS and Leeuwkop project
IRS Platinum production declined by 11% to 863 000 ounces of platinum Life-of-mine offtake agreements signed with Blue Ridge and Smokey Hills Gross profit increased by 5% to R1.88 billion 206 000oz 321 000oz 24% 37% 863 000oz 336 000oz 39% Group purchases Third party purchases Toll treatment Empower
Slide 13: Market review: sales volumes by metal
Market review Empowering our people, growing our production Sales volumes by metal FY08 FY07 % change Platinum (000oz) 1 739 1 827 (5) Palladium (000oz) 885 870 2 Rhodium (000oz) 197 206 (4) Nickel (000t) 13 16 (23) Empowering our people, growing our production 26 13
Slide 14: Average prices achieved and platinum supply/demand
Average prices achieved FY08 FY07 % change Platinum ($/oz) 1 598 1 185 35 Palladium ($/oz) 390 334 17 Rhodium ($/oz) 6 963 5 152 35 Nickel ($/t) 30 253 34 486 (12) Basket ($/Pt oz sold) 2 941 2 369 24 (R/Pt oz sold) 21 528 17 057 26 Exchange rate (R/$) 7.32 7.26 1 Empowering our people, growing our
Slide 15: Palladium and rhodium supply/demand
Palladium 000 oz 2005 2006 2007 2008 Est Demand Automotive 4,605 4,800 4,980 4,715 Other 4,105 3,255 3,260 3,500 Total 8,710 8,055 8,240 8,215 Supply SA 2,575 2,760 2,670 2,455 Other 6,350 6,605 6,435 5,465 Total 8,925 9,365 9,105 7,920 Supply/Demand Balance 215 1,310 865 (295) Empowering our people
Slide 16: What happened? Movements in platinum futures
What happened? Empowering our people, growing our production 31 Movements in platinum futures Movements in long positions $/oz 000 oz 2400 1000 2200 800 2000 600 1800 1600 400 1400 200 1200 0 1000 Aug 07 Nov 07 Feb 08 May 08 Aug 08 Nymex Large Specs Nymex Small Specs Tocom General Public Price Empow
Slide 17: ETF Securities and Shanghai Gold Exchange
ETF securities 000 oz $/oz 500,000 2400 2200 400,000 2000 300,000 1800 1600 200,000 1400 100,000 1200 0 1000 May 07 Nov 07 Aug 08 ETF Securities (Platinum) Price Empowering our people, growing our production 33 Shanghai gold exchange Platinum weekly trading volumes Price kgs ($/oz) 900 2400 800 2200
Slide 18: What next?
What next? Prices were not sustainable Price corrections very healthy Future supply from “juniors” Demand has not collapsed Legislation Empowering our people, growing our production 35 Wrap-up Empowering our people, growing our production 18
Slide 19: Implats scorecard and conclusion
Implats scorecard Safety Production/growth Unit cost control Zimbabwe ☺ Licence conversions ☺ Returns to shareholders ☺ Empowering our people, growing our production 37 Conclusion Fundamentals for PGMs remain 000 oz Platinum growth profile 2500 sound in the medium- to long-term 2000 Growth profile t
Slide 20: Annual Results FY2008
Annual Results FY2008 Empowering our people, growing our production 20
Impala Platinum Holdings — FY2008 Earnings Presentation on 6ix