9/7/2010 Investor presentation Investor presentation September 2010 1 Introducing Implats Implats is in the business of Implats is in the business of mining, refining and marketing platinum group metals and associated base metals and remains a PGM-focused producer 1
9/7/2010 Introducing Introducing Implats Implats Operations are located on the two prime platinum deposits two prime platinum deposits » The Bushveld Complex in South Africa » The Great Dyke in Zimbabwe Group structure Group structure Implats 1 741 000 oz 100% Mine-to-market Mine-to-m arket I RS Managed Non-m anaged Operations Operations 45% 100% Tw o Rivers I m pala Group 3 rd Party 135 000 oz 871 000 oz Concentrate/ Matte Concentrate/ Matte Toll treatm ent Purchase contracts Purchase contracts 231 000 oz 73% 451 000 oz 188 000 oz Marula 68 000 oz 87% Zim plats 154 000 oz 50% Mim osa 94 000 oz Note: Refined platinum ounces for FY2010 indicated above have been rounded for illustrative purposes 2
9/7/2010 Extensive mineral resources Extensive mineral resources 225 million attributable platinum ounces* as at 30 June 2010 - 57% in South Africa and 43% in Zimbabwe Tamboti Impala 30% 12% Two River 1% Marula 3% Afplats 10% Mimosa 2% Zimplats 42% * Attributable Mineral Resources (inclusive of Mineral Reserves) Analysis of shareholders Analysis of shareholders Geographical distribution of shareholders as at 30 June 2010 Other Other countries Canada 7% 1% Luxembourg 4% United Kingdom South Africa 10% 55% United States 23% Source: JP Morgan/ Cazenove 3
9/7/2010 Major PGM uses Major PGM uses 7 Platinum Platinum Palladium Palladium Rhodium Rhodium Catalyst to control exhaust Catalyst to control Catalyst to control Automotive emissions emissions exhaust emissions exhaust emissions exhaust emissions exhaust emissions Spark plug tips (particularly (essential for No x Oxygen sensors in vehicle hydrocarbon control) control) on-board diagnostic Oxygen sensors in systems vehicle on-board diagnostic systems Small/ large bars, coins, Coins, ETFs (exchange Investment ETFs (exchange traded traded funds) funds) Jewellery Fabrication Fabrication Electroplating to give Alloying agent platinum jewellery white finish jewellery Whitening agent in production of white gold Electrode coating in fuel Tailgas burner Fuel-processing catalyst Fuel Cells cell stack Fuel-processing catalyst Tailgas burner Petroleum Reforming and Hydrocracking to isomerisation for achieve higher yields upgrading octane quality Major PGM uses Major PGM uses 8 Platinum Platinum Palladium Palladium Rhodium Rhodium Chemical Gauze for catalytic Catchment gauze to Process catalysts, eg production of nitric acid production of nitric acid recover Pt and Rh in recover Pt and Rh in production of ammonia production of ammonia Process catalyst for nitric acid production (Kellogg process) producing bulk (PTA) and Process catalysts specialty chemicals (eg silicones) Dental Hardener in dental alloys Alloying agent Alloy coating for hard disks Conductive paste in Alloyed with platinum in Electronics to improve storage multi-layer ceramic chip thermocouples capacity capacitators Thermocouples to monitor Conductive tracks of temperature in steel, semi- hybrid integrated conductor and glass conductor and glass circuits circuits industries Salts for plating process Glass Production of LCD glass Alloyed with platinum in Bushings for producing producing LCD glass glass fibre Alloyed with platinum in Specialty glasses bushings Glass for TVs, monitors and cathode ray tubes Glass substrates for hard disks 4
9/7/2010 Key strategies Key strategies 9 Key objectives for Key objectives for Implats Implats Cost Cost effective growth … effective growth … is a major objective for the group and embraces the following areas: - Safety, health and environment - Cost leadership - Capital delivery - Balance sheet management - People 5
9/7/2010 Growth … Growth … … … in both production and the resource base is key, not only in in both production and the resource base is key, not only in terms of ounces but in the realisation terms of ounces but in the realisation of value of value Key areas of growth » Exploration - Brownfields – exploration around current mining operations - Greenfields – has involved projects in Australia, Southern Africa, South and North America Southern Africa South and North America » Organic growth - Growth derived from assets we own or have an ownership stake in - Afplats, Marula, Mimosa, Two Rivers and Zimplats Growth … Growth … … … in both production and the resource base is key, not only in in both production and the resource base is key, not only in terms of ounces but in the realisation terms of ounces but in the realisation of value of value Key areas of growth (continued) » Acquisitions - Strategy is to evaluate all significant resource targets in terms of value » Recycling - Remain a relevant player in this sector as it is set to grow 6
9/7/2010 Growth … Growth … … … in both production and the resource base is key, not only in in both production and the resource base is key, not only in terms of ounces but in the realisation terms of ounces but in the realisation of value of value » 2.1 million ounces of platinum by 2014 2 000 1 500 1 000 500 - FY10 FY11 FY12 FY13 FY14 FY15 Impala Marula Zimplats Mimosa Two Rivers IRS Safety … Safety … … … remains the group’s highest priority remains the group’s highest priority Vision » Zero Harm Key objective » Zero tolerance with non-compliance to standards and » Zero tolerance with non compliance to standards and procedures 7
9/7/2010 Safety … Safety … … … remains the group’s highest priority remains the group’s highest priority Key focus areas » Creating and promoting a culture of safety - a broader approach that encompasses safety in all aspects of employee’s lives » Visible leadership - Management taking responsibility and leading by example Management taking responsibility and leading by example » Communication - Extensive use of media and support structures to reach all employees regardless of language or literacy » Training - Increased frequency and intensity of behavioural-based training to refresh the message and address new recruits Safety … Safety … … … remains the group’s highest priority remains the group’s highest priority Key challenges » Employee Risk Behaviour » Staff turnover » Skills » Skills » Health 8
9/7/2010 Cost leadership … Cost leadership … … … ensures sustainability and competitiveness in the industry ensures sustainability and competitiveness in the industry Vision » Industry cost leader Key areas of focus » Productivity - Significant efficiency improvements will be realised as new deep level shafts come on stream shafts come on-stream » Materials efficiency - Optimal usage » Consumables - Leveraging our buying power » Labour complements - Optimal headcount Cost leadership … Cost leadership … … … ensures sustainability and competitiveness in the industry ensures sustainability and competitiveness in the industry Key challenges » Labour demands » Utility costs » Skills availability Skill il bilit » Health 9
9/7/2010 Cost leadership … Cost leadership … … … ensures sustainability and competitiveness in the industry ensures sustainability and competitiveness in the industry Industry cash cost curve 2009 (cost per platinum ounce) (cash costs includes mining, processing, refining and other) num ounce Platinum Price $ per platin Marula Platinum Crocodile River Mogalakwena Amandelbult Zimplats Rustenburg Rustenburg Mimosa Two Rivers Blue Ridge Marikana Modikwa Mototolo Kroondal Northam Lonmin Impala Bokoni Union BRPM Eland Platinum ounces (000) Cost leadership … Cost leadership … … … ensures sustainability and competitiveness in the industry ensures sustainability and competitiveness in the industry Industry cash cost curve 2009 (cost per platinum ounce net of by-product revenue) (cash costs includes mining, processing, refining and other) Platinum Price num ounce Cro Mo Amandelbult A ocodile River $ per platin ogalakwena Rustenburg Rustenburg Blue Ridge Mototolo Modikwa Marikana Two Rivers Kroondal Northam Zimplats Mimosa Lonmin Marula Impala Bokoni BRPM Union Eland Platinum ounces (000) 10
9/7/2010 Capital delivery … Capital delivery … … … provides for future cost efficient production provides for future cost efficient production » All projects must deliver on time, on target and within budget » Projects yield a rate of return greater than the weighted average cost of capital » Capex of R5 billion in FY10 is expected to be higher in FY11 with big ticket items including Rustenburg and Zimplats’ Phase 2 expansion » Over next 5 years 80% of capex will be spent on maintenance Capital projects Capital projects – – Impala Rustenburg Impala Rustenburg 22 » 9 million platinum ounces 9 o p a u ou ces » No acquisition cost » No infrastructure cost » Extension of existing operations » Secure labour force 11
Recommend
More recommend
