Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Royal Bafokeng Platinum — H1 2022 Earnings Presentation
35 slides from Impala Platinum's earnings presentation, Jun 30, 2022
Slide 1: Condensed Consolidated Interim Results
CONDENSED CONSOLIDATED INTERIM RESULTS 20 FOR THE SIX MONTHS ENDED 30 JUNE 2022 22
Slide 2: Disclaimer
Esl 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 con
Slide 3: Contents
CONTENTS Overview Market review Operational review Financial review Outlook and guidance
Slide 4: Overview
O1 OVERVIEW ROYAL BAFOKENG Drtarints
Slide 5: H1 2022 highlights
˃ 31.0% improvement in SIFR ˃ 38.1% decrease in EBITDA to R3 406.1 million (H1 2021: R5 499.1 million) ˃ 58.1% decrease in basic HEPS to 767.3 cents (H1 2021: 1 831.9 cents) ˃ Interim dividend declared of 245 cents per share (H1 2021: 535.0 cents) ˃ Strong performance from BRPM ˃ 4.5% increase in 4E
Slide 6: Community and sustainability highlights
The two schools we constructed at our employee housing estate have opened Continued support and training offered to host community businesses 83.6% of our total discretionary procurement is with historically disadvantaged businesses RBPlat signed a Memorandum of Understanding with the Mandela Mining
Slide 7: Location of operations and major shareholders
> Competition Commission recommended that the Competition Tribunal Location of our operations approves the Implats mandatory offer > Competition Tribunal has granted Northam leave to participate in the merger proceedings > Closing date on the Implats offer has been extended to 16 September 2022 > Im
Slide 8: Market Review
Q2 MARKET REVIEW MORE THAN MINING we it A ROYAL BAFOKENG ae GD PLATINUM
Slide 9: Global platinum and palladium supply forecast
Global platinum supply forecast Global palladium supply forecast 12.0 12.0 Peak = 10.0 10.0 7.3 8.0 8.0 6.9 6.9 Peak 6.8 6.3 6.0 5.3 6.1 6.0 6.4 5.0 4.9 4.4 4.0 4.6 4.0 2.6 2.8 3.3 2.5 2.0 3.1 2.0 1.9 1.8 0.0 0.0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2001 2003 2005 2007 2009 2011 20
Slide 10: 2021-2022 platinum demand change
2021-2022 platinum demand change 8.0 0.11 0.42 0.13 0.09 0.03 0.015 0.21 7.0 -0.06 7.25 7.25 6.0 6.78 6.78 5.98 5.0 2020 2021 Auto Industrial Jewellery 2022F 2021 N. America W. Europe ROW China Japan 2022F > Total platinum demand is projected to increase by 7% to 7.25Moz in 2022, an increase of 250k
Slide 11: 2021-2022 palladium demand change
2021-2022 palladium demand change 11 0.09 10 0.01 0.09 0.32 0.15 -0.10 -0.02 -0.08 9 9.68 9.68 9.44 9.44 9.26 8 2020 2021 Auto Jewellery Industrial 2022F 2021 W. Europe N. America ROW Japan China 2022F > Palladium automotive demand is forecast to rise by 4.3% to 7.9Moz in 2022, recovering from the 2
Slide 12: Operational Review
A O3 OPERATIONAL REVIEW ROYAL BAFOKENG Pee atingn MORE THAN MINING
Slide 13: Zero Harm, Operating Environment, More Than Mining
Zero Harm Operating Environment More Than Mining ˃ 0 Fatalities ˃ Inflationary cost pressures ˃ SLP Spend – R54.0 million ˃ 32.5% improvement in LTIFR ˃ Constrained supply chain • HRD Spend – R32.4 million ˃ 3 million fatality-free shifts ˃ Electricity supply interruptions • LED Spend – R12.7 millio
Slide 14: Safety initiatives
Total recordable injury frequency rate Serious injury frequency rate Lost time injury frequency rate H1 2022 performance 10.000 0.800 2.000 0.719 1.747 1.724 > No fatalities 8.148 0.603 8.000 7.499 0.600 1.600 > Reduction in severity of injuries /1 000 000 hrs /1 000 000 hrs /1 000 000 hrs 1.164 6.0
Slide 15: Total reef tonnes hoisted and stoping square metres
Total reef tonnes hoisted Total stoping square metres Description Unit H1 2020 H1 2021 H1 2022 % Var Total development km 15.0 19.2 20.6 7.3 2 500 2 333 400 2 158 352 BRPM km 12.2 16.5 17.9 8.5 326 Styldrift km 2.8 2.7 2.7 0.0 2 000 1 788 SD 300 277 SD Stoping square metres 000m² 277 326 352 8.0 SD
Slide 16: Higher milled volumes offset by lower Styldrift grade
HIGHER MILLED VOLUMES OFFSET BY LOWER STYLDRIFT DELIVERED GRADE Total tonnes milled 4E metals in concentrate Description Unit H1 2020 H1 2021 H1 2022 % Var 2 500 250 Total tonnes milled kt 1 623 2 160 2 304 6.7 2 304 225.5 2 160 215.7 BRPM kt 913 1 172 1 265 7.9 Styldrift kt 710 988 1 039 5.2 2 000
Slide 17: Working cost labour and capital labour
Working cost labour Description Unit H1 2020 H1 2021 H1 2022 % Var 12 000 Total labour No. 10 248 10 518 11 130 (5.8) 9 547 9 864 9 033 Working cost labour No. 9 033 9 547 9 864 (3.3) 8 000 BRPM No. 5 131 5 147 5 368 (4.3) Styldrift No. 3 007 3 387 3 396 (0.3) 4 000 Central and shared services No. 4
Slide 18: Cash operating costs
Description Unit H1 2020 H1 2021 H1 2022 % Var Cost environment > Substantial increase in base commodities prices Total cash operating cost R'm 2 896 3 592 4 325 (20.4) > Supply chain bottlenecks Cash operating cost/tonne milled R/t 1 784 1 663 1 877 (12.9) > Electricity Cash operating cost/4E oz R/
Slide 19: BRPM cash operating cost per 4E ounce
Cash operating cost/4E ounce Description Unit H1 2020 H1 2021 H1 2022 % Var 20 000 16 949 BRPM cash operating cost R'm 1 445 1 795 2 144 (19.4) 15 452 16 000 14 490 Cash operating cost/tonne milled R/t 1 582 1 531 1 695 (10.7) 12 000 Cash operating cost/4E oz R/oz 14 490 15 452 16 949 (9.7) R/4E oz
Slide 20: Styldrift cash operating cost per 4E ounce
Cash operating cost/4E ounce Description Unit H1 2020 H1 2021 H1 2022 % Var 25 000 22 037 Styldrift cash operating cost R'm 1 451 1 797 2 182 (21.4) 19 649 20 000 18 045 Cash operating cost/tonne milled R/t 2 044 1 820 2 099 (15.3) 15 000 Cash operating cost/4E oz R/oz 19 649 18 045 22 037 (22.1) R/
Slide 21: Capital expenditure
Stay-in- Description Unit H1 2020 H1 2021 H1 2022 % Var R303 million for H1 2022 business > 7.0% of total operating cost Stay-in-business capital (SIB) R'm 113 173 303 (75.1) capital SIB % of total operating cost % 3.9 4.8 7.0 (45.8) R310 million for H1 2022 Replacement > Aligned with ore reserve de
Slide 22: Progressing Styldrift's operational maturity
PROGRESSING STYLDRIFT’S OPERATIONAL MATURITY Stoping square metres LABOUR . Increasing labour efficiencies and 200 EFFICIENCY improving critical skills alignment ORE . Improve technical 000 m2 100 GENERATION mining performance Closing the efficiency gap by TRACKLESS 0 optimising trackless equipment
Slide 23: Labour efficiency, ore generation, trackless efficiency
LABOUR EFFICIENCY ORE GENERATION TRACKLESS EFFICIENCY ˃ Optimise daily operating window ˃ Bords blasted per day ˃ Machine availability and utilisation ˃ Initiatives to improve skills alignment ˃ Advance per blast ˃ Quality of machine maintenance and services ˃ Critical skills development ˃ Reducing
Slide 24: BRPM TSF, Maseve MF2 upgrade, project studies
BRPM TAILINGS STORAGE FACILITY MASEVE MF2 UPGRADE PROJECT STUDIES ˃ Construction progress delayed by ˃ Flotation circuit commissioned and operational ˃ Styldrift life-of-mine optimisation study inclement weather ˃ Secondary mill hot commissioning commenced ˃ Concentrator optimisation ˃ Estimated dat
Slide 25: Operational priorities
Operational stability and flexibility Cost management and control Styldrift operational maturity Environmental, social and governance stewardship
Slide 26: Financial Review
04 FINANCIAL REVIEW
Slide 27: Income statement and 4E ounces
4E Ounces 6 months ended 6 months ended YoY Year ended 250 Description Unit 30 June 2022 30 June 2021 % change 31 December 2021 225.5 215.7 Revenue R’m 8 173 9 584 (14.7) 16 429 200 Cost of sales R’m (5 401) (4 423) (22.1) (9 637) 173.5 SD Gross profit R’m 2 772 5 162 (46.3) 6 791 SD 99.0 99.6 koz O
Slide 28: Headline earnings reconciliation
6 months ended 6 months ended YoY Year ended Description Unit 30 June 2022 30 June 2021 % change 31 December 2021 Attributable comprehensive income R’m 2 213 4 893 (54.8) 6 510 Less: Profit on disposal of PPE and other assets net of tax R’m (6) (22) 70.9 (22) Plus: Impairment of assets net of tax R’
Slide 29: Revenue contribution and basket price
6 months 6 months Year ended Revenue contribution ended ended YoY 31 December 1.2% 0.4% 6.4% Description Unit 30 June 2022 30 June 2021 % change 2021 2.2% 3.7% Average basket price R/Pt oz 55 471 66 202 (16.2) 54 698 23.5% Average basket price R/4E oz 35 600 42 600 35 216 (16.4) H1 2022 Average R:US
Slide 30: Drivers of cost of sales
Drivers of cost of sales* 6 months 6 months YoY Year ended ended ended % 31 December Description Unit 30 June 2022 30 June 2021 change 2021 39% 37% Cost of sales R’m (5 401) (4 423) (22.1) (9 637) H1 2022 Cash cost of sales R’m (4 845) (3 794) (27.7) (8 375) 8% Depreciation and amortisation R’m (650
Slide 31: RBR operational EBITDA by segment
RBR operational EBITDA (H1 2020 to H1 2022) RBR operations BRPM mining Styldrift mining Description segments 2022 segment segment 7,000 Six months ended 30 June 2022 R’m R’m R’m 5 887 Revenue 8 173 4 771 3 403 6,000 Cost of sales (5 069) (2 411) (2 658) 5,000 2,040 3 823 Cash cost of sales excluding
Slide 32: Cash flow
6 months ended 6 months ended YoY Year ended Description Unit 30 June 2022 30 June 2021 % change 31 December 2021 Cash generated by operating activities R’m 1 065 3 243 (67.2) 5 700 - Cash generated from operations and interest R’m 3 302 5 030 (34.4) 9 030 - Dividend and taxation paid R’m (2 237) (1
Slide 33: Net cash and interim dividend
> Net cash* of R4.9 billion at the end of the period (H1 2021: R3.6 billion) > Debt facilities of R3 billion available at period end > Global economic uncertainty and corporate action > Interim dividend declaration Dividend policy to distribute minimum of 10% of free cash flow before growth capita
Slide 34: Outlook and Guidance
g O5 OUTLOOK AND | GUIDANCE 4} ROYAL BAFOKENG CO iii
Slide 35: Outlook and Guidance
OUTLOOK AND GUIDANCE Production guidance remains between 4.65Mt and 4.90Mt, yielding between 485koz and 505koz 4E metals in concentrate Total cash operating cost per 4E ounce forecast revised up, to between R18 500 and R19 000 for the Group Total capex forecast for 2022 is revised lower to approxima
Royal Bafokeng Platinum — H1 2022 Earnings Presentation on 6ix