Valterra Platinum Limited · JSE:VAL
Valterra Platinum — FY2023 Earnings Presentation
44 slides from Valterra Platinum's earnings presentation, Feb 19, 2024
Slide 1: 2023 annual results presentation
19 February 2024 1 Rope shovel at Mogalakwena
Slide 2: Disclaimer
Disclaimer American Platinum will operate in the future. Important factors Certain statistical and other information about that could cause Anglo American Platinum’s actual results, Anglo American Platinum included in this presentation is sourced This presentation has been prepared by Anglo American
Slide 3: Operating context, 2023 performance, Going forward, Conclusion, Q&A
Operating context 2023 performance Going forward Conclusion Q&A 3 RBMR Copper Tankhouse
Slide 4: Operating context
Operating context 4 Drill Waterrigs in theatMogalakwena sampling North Pit Mototolo / Der Brochen Casting of Palladium ingots at PMR
Slide 5: Operating context: external and internal factors
Operating context External Internal Uncertain global growth Safety Geopolitical tensions ESG focus Interest rate & fx uncertainties Productivity & efficiencies High inflationary environment Cost management Lower PGM prices Load curtailment management Long term sustainability of the business requires
Slide 6: 2023 performance
2023 performance 6 Marking exploration Water sampling at Mototolocores at Mogalakwena / Der Brochen Casting of Palladium ingots at PMR
Slide 7: Salient features
Salient features Injury rate PGM production EBITDA 31% down 3.8Moz R24bn 2022: 4.0Moz 2022: R74bn 2 Mining EBITDA margin Net cash PGM basket price 35% R15bn $1,657 2022: 57% 2022: R28bn 2022: $2,551 7
Slide 8: Safety
Safety Zero fatalities for two years Safety milestones 7 Fatalities Mototolo 4 12 years fatality free 1 0 0 Unki 2012 2017 2021 2022 2023 12 years fatality free Reducing injuries 10.63 TRCFR1 Mogalakwena 11 years fatality free 4.52 -31% 2.60 2.34 1.61 Amandelbult 2012 2017 2021 2022 2023 3 years fat
Slide 9: ESG: Environment, Social, Governance
ESG Environment Social Governance Envusa renewable energy Employee wellbeing IRMA2 certification No level 4/5 environmental incidents Community development Tailings management conformance 9
Slide 10: ESG: enduring stakeholder value
ESG Taxes and royalties Local procurement Enduring stakeholder value Rand billion R5bn R30bn 148 131 85 Salaries and wages Social investment 66 R16bn R0.7bn 2020 2021 2022 2023 Capital investment Dividends paid3 Taxes & royalties Social investment R21bn R12bn Salaries & wages Local procurement inc d
Slide 11: Operational performance
Operational performance 11 Drilling at the face at Tumela, Amandelbult Mogalakwena in-pit drills
Slide 12: Operational performance: production and sales
Operational performance PGM M&C PGM Refined Ongoing 2024 focus focus 3.8Moz 3.8Moz Safety and productivity 5% 1% Maintaining own-mined production at 2.1-2.3Moz per annum Sales Base metals Chrome Reconfiguration of downstream 3.9Moz 36kt 973kt processing 2% 2% 17% 12
Slide 13: Mogalakwena M&C production
Operational performance 2024 focus M&C production Tonnes mined Built-up head grade Grade at 2.7 -2.9 g/tonne 5% 1% 2% ‘000 ounces Million tonnes 4E g/tonne Pit optimisation Progressing underground 1,026 85.4 2.79 2.73 974 84.7 exploration (higher grade) 85 2022 2023 2022 2023 2022 2023 Continu
Slide 14: Amandelbult productivity and production
Operational performance 2024 focus M&C production Productivity Chrome production Continued focus on safe operations 11% 10% 19% ‘000 PGM ounces PGM oz / employee per annum ‘000 tonnes Drive conventional mining excellence at Dishaba Tumela 713 -4% 634 308 67 64 Progressing 15E & Tumela 1 Sub 25
Slide 15: Unki and Mototolo production
Operational performance 2024 focus Unki M&C Mototolo M&C production production Unki ventilation and materials handling infrastructure projects flat 5% ‘000 PGM ounces ‘000 tonnes Ramp-up of Der Brochen at Mototolo +5% 0% Stable operations at Mototolo Borwa shaft 232 244 290 289 2022 2023 2022 2023
Slide 16: Refined production and processing
Operational performance 2024 focus Refined production Work in progress Smelter capacity stock reduction utilisation Optimising processing 1% ‘000 PGM ounces ‘000 3E ounces % utilisation Mass pull reduction strategy Capacity -1% Mortimer smelter on care & maintenance - to be repurposed 3,831 3,801
Slide 17: Financial performance
Financial performance Platinum bars in dispatch at the PMR
Slide 18: Financial performance: revenue, EBITDA, net cash
Financial performance Revenue EBITDA Net cash R125bn R24bn R15bn 2 Unit cost / PGM oz Mining EBITDA margin 2023 dividend declared R17,859 35% R6bn R21.30 per share / 40% pay-out 18
Slide 19: EBITDA bridge
Financial performance EBITDA Rand billion Uncontrollable Controllable 35% lower PGM basket price 74 $1,657 / PGM oz (41) Above inflationary increases (3) 33 13 (9) (10) 24 Mining EBITDA of R29bn (51) 2022 Price FX CPI Net cost & 2023 volumes Revenue POC inventory 19
Slide 20: Unit cost and sustainable cost reduction
Financial performance 2023 Unit cost vs H1 2023 2024 focus R / PGM oz Sustainable cost reduction (1%) R5bn 138 18,076 55 (286) (124) Unit cost / PGM oz 17,859 ~R16,500 – R17,500 AISC / 3E oz ~$1,050 H1 2023 Fx Above inflationary Higher Lower costs FY 2023 increases production 20
Slide 21: Working capital movements
Financial performance Working capital movements Rand billion 7 6 WIP inventory release in 2023 (3) POC price impact of ~R5bn (3) 12 Customer prepayment ~R11bn (5) 2022 Inventory release Creditors POC price impact Customer 2023 prepayment (Price impact) 21
Slide 22: Total capital expenditure
Financial performance Total capital expenditure 2024 focus Rand billion 4 20.5 1.8 19.2 SIB focused on asset integrity, 0.8 1.5 HME and tailings facilities 1.3 4.2 5.2 2.4 Der Brochen and Tumela 1 Sub Shaft R5bn 5.0 11.3 Progressing the Mogalakwena 6.2 Twin exploration declines 2023 FY 2024E Other /
Slide 23: Cash from operations and capital allocation
Financial performance R30bn Cash from operations R18bn 2023 Sustaining capital R6bn 2023 H1 (R3.2bn) and 2023 H2 dividend (R2.5bn) declared Portfolio Additional shareholder Future project options R3bn upgrade returns including ESG 2023 Mogalakwena underground and breakthrough capital 23
Slide 24: 2023 earnings and dividend per share
Financial performance 2023 earnings and dividend per share 53 2023 full year dividend 2023 dividend declared H2 R21.30/share R5.7bn R24/ Share 40% pay- out ratio H1 21 Dividend pay-out ratio ESOP and community H2 R30/ R9.30/ dividends Share Share H1 R12/ 40% R150m Share Headline earnings Dividends p
Slide 25: Market performance
Market performance 25 Trial fleet of the BMW iX5 Hydrogen FCEVs in South Africa
Slide 26: ICE vehicle production and BEV/PHEV growth
Market performance ICE 5 vehicle production up 8% in 2023 9 BEV6 growth slowed; PHEV7 growth accelerated 10 Million vehicles % of production 10 14% 100 Forecast a 90 12% year ago 80 10% 70 60 8% 50 ICE5 vehicle volumes up 6% 40 8%, compared 30 to 3% 4% 20 expectation at Forecast interim 2% a year 10
Slide 27: 2024 outlook: platinum, palladium, rhodium
Market performance 2024 outlook Platinum Palladium Rhodium Automotive market uncertainty Prolonged deficits Moving into surplus Back to balance BEVs5 vs ICE4 11 Forecast at interim results Recycling flows Forecast at Forecast at interim interim results results Speculative activity 2021 2022 2023e 20
Slide 28: Bringing purpose to the product that we mine and trade
Market performance PGMs for green PGMs for modern PGMs for wealth energy transition life and growth For true and holistic clean For better quality of life For diversified wealth Bringing purpose to the product energy shifts, especially in portfolio that we mine and trade mobility Green H2 & Battery
Slide 29: Going forward
Going forward 29 Mogalakwena in-pit Mogalakwena TSF drills Blinkwater Drone operations
Slide 30: Operational excellence, cost efficiencies and restructuring
Going forward Operational Cost Rationalising Rephasing Reconfiguring excellence efficiencies capital growth processing Focus on value over All assets in H1 of cost SIB capital reduction by Improving near-term Mass pull reduction volume curve R5bn cash flows but preserve strategy long-term optionalit
Slide 31: Deliberate and decisive actions for long term sustainability
Conclusion Deliberate and decisive actions to ensure long term sustainability Strategy Programmes to deliver Value proposition Leader in Safety Portfolio of tier one assets operating in H1 of cost curve ESG Operational Maximising excellence value from Our metals positioned to leverage from energy tr
Slide 32: Q&A
Q&A Mogalakwena drilling and exploration 32 Employees at the Mogalakwena Underground Project
Slide 33: Thank you
Thank you 33 Measuring temperate at the Polokwane Smelter
Slide 34: Appendix
Appendix Mogalakwena drilling and exploration 34 Casting of Palladium ingots at the PMR
Slide 35: Capital expenditure
Appendix 20.5 ~19.0 – 19-5 ~18.5 – 19.0 1.8 ~18.0 – 18.5 0.8 ~1.5 ~1.5 16.9 ~1.3 ~1.5 ~1.0 ~1.0 2.0 4.2 Other / breakthrough capital 13.6 0.8 ~5.2 ~4.5 ~5.0 Mogalakwena underground 2.6 3.6 2.4 0.2 Capitalised waste stripping 3.1 0.9 ~4.1 - 4.3 ~2.9 - 3.1 ~4.9 - 5.1 Life extension 0.4 Stay-in-busines
Slide 36: Guidance
Appendix Unit 2023 2023 2024 2025E 2026E Guidance Achieved Guidance Metal-in-concentrate (M&C) Total PGMs (m ounces) 3.6 – 4.0 3.8 3.3 - 3.7 3.0 - 3.4 3.0 – 3.4 - Own mined (m ounces) 2.5 2.1 - 2.3 2.1 - 2.3 2.1 - 2.3 - Purchase of concentrate (POC) (m ounces) 1.3 1.2 - 1.4 0.9 - 1.1 0.9 - 1.1 Refin
Slide 37: Sensitivity analysis
Appendix EBITDA Impact of 10% change in Sensitivity analysis - 2023 8 February 2024 spot Average realised average realised price and FX Commodity / unit Platinum ($/oz) 890 946 2,188 Palladium ($/oz) 891 1,313 2,492 Rhodium ($/oz) 4,400 6,592 1,897 Gold ($/oz) 2,034 1,982 252 Nickel ($/ton) 15,753 2
Slide 38: Cash generated and net cash by asset
Appendix Net cash Cash Effect of Net cash Economic Tax & 31 generated SIB & waste Project Deferred Exchange Customer 31 Assets free cash Royalties Dividends paid Other December from capital capital 14 consideration rate changes Prepayment December flow 13 paid 2022 operations on cash 2023 Mogalakwen
Slide 39: Cost base by mining type
Appendix Sundry 2023 Cost base (Rbn) Volume % PGMs (koz) Labour Contractors Utilities Consumables Maintenance expenses Opencast Mining 9.2 41% 985 16% 5% 2% 36% 33% 8% Conventional 11.7 29% 703 52% 4% 9% 15% 9% 11% Mining Mechanised 9.8 30% 772 36% 10% 7% 20% 19% 8% Mining Concentrating 9.2 14% 2% 2
Slide 40: Revenue and basket prices by asset
Appendix Joint Company Mogalakwena Amandelbult Mototolo Unki Mining POC/Other operations (ex-trading) Net sales revenue (US$ million) from platinum 394 322 127 103 156 1,102 612 1,714 from palladium 641 219 119 128 151 1,258 440 1,698 from rhodium 196 380 140 63 184 963 553 1,516 from other metals 5
Slide 41: All-in sustaining costs by asset
Appendix Mogalakwena Amandelbult Mototolo Unki Modikwa Kroondal Mining Costs (US$ million) Cash operating costs 861 687 261 241 162 165 2,377 Other costs and marketing 123 310 29 70 17 51 600 Capitalised waste costs 226 - - - - - 226 Sustaining capital & economic interest 305 89 40 46 34 16 530 a To
Slide 42: Revenue and cash operating costs reconciliation
Appendix Attributable Exit & Company – (R million) Mogalakwena Amandelbult Mototolo Unki joint operations C&M Mined POC & toll Trading Other Company (ex trading) share mines a = (b x c)/1000 + d Net revenue 32,101 23,866 8,533 7,843 10,781 - 83,124 40,605 854 - 124,583 123,729 Basket price per b PGM
Slide 43: Footnotes
Appendix 1) Total recordable case injury frequency rate (TRCFR) is a measure of all injuries requiring treatment above first aid per 1,000,000 hours worked (slide 8) 2) Initiative for Responsible Mining Assurance (IRMA) (slide 9) 3) Dividends include dividends paid to Thobo employee trust of R237m (
Slide 44: Investor Relations
Investor Relations Theto Maake theto.maake@angloamerican.com Tel: +27 (0) 83 489 5125 Marcela Grochowina marcela.grochowina@angloamerican.com Tel: +27 (0) 82 400 3222 44 Unki Smelter