Amandelbult Investment Analysts and Fund Investment Analysts and - PowerPoint PPT Presentation

Amandelbult

Investment Analysts and Fund Investment Analysts and Fund Managers Visit Managers Visit Amandelbult Plat latinum Mine inum Mine Amandelbult P “We at Amandelbult will consistently “We at Amandelbult will consistently improve on our superior performance and improve on our superior performance and enhance our value driven business culture”. enhance our value driven business culture”. 26 MAY 2004

Amandelbult’s Values Amandelbult’s Values • Safety • Our people • The environment • Stakeholder relationships • Innovation • Business success

Agenda Agenda • Location & Mine infrastructure layout • Safety and Environment • Resources and Reserves • Mining Method • Production • Operating Cost • Capital Programme • Human Resources • Key Business Issues

Location & Mine Infrastructure Location & Mine Infrastructure Layout Layout

Location Location Legend UNKI PROJECT Zimbabwe Bushveld Complex Botswana Mozambique Namibia Anglo Platinum Republic % U POLOKWANE (PIETERSBURG) POTGIETERSRUST of Anglo Platinum - Joint Venture PLATINUMS LIMITED South Africa Polokwane Smelter ð Impala Platinum Mines Lonmin PLC % U LEBOWA PLATINUM MINES MOKOPANE (POTGIETERSRUS) Northam Platinum Limited Southern Era PASCHASKRAAL JV Merensky LIMPOPO MODIKWA UG2 TWICKENHAM Platreef % U NORTHAM BURGERSFORT AMANDELBULT BELA BELA (WARMBATHS) % U UNION DER BROCHEN LYDENBURG U % BAFOKENG/RASIMONE BOOYSENDAL JV STYLDRIFT JV NORTH-WEST RUSTENBURG GAUTENG U % MPUMALANGA PRETORIA U % PANDORA JV RUSTENBURG ± WITBANK U % 0 10 20 JOHANNESBURG U % Kilometres

Amandelbult Surface Plan Surface Plan Amandelbult

Mining operations Mining operations

SHE Strategy SHE Strategy Continuous reduction of at risk behavior, sub Continuous reduction of at risk behavior, sub standard conditions, health hazards and standard conditions, health hazards and environmental incidents. environmental incidents.

Safety and Environment Safety and Environment Amandelbult 4 LIFE • 4 Pillars of Safety system • Planned inspections • PTO’s • Accident/Incident investigation • Group Meetings • Lead by example • Implement OTTO • Friendly and Practicable standards • Eliminate at risk behavior

100 150 200 250 50 0 Total Injuries Feb'01 Apr Jun'01 Aug Oct Dec Feb'02 Apr June'02 Aug Oct Dec Feb'03 Apr June'03 Aug Oct Dec

Lost Time Injury Frequency Rate Lost Time Injury Frequency Rate Lost Time Injury Frequency Rate 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Apr Apr Apr Oct Oct Oct Aug'01 Aug'02 Aug'03 Feb'01 Jun Feb'02 Feb'03 Dec June Dec June Dec

Total Number of Fatalities Total Number of Fatalities Total Number of Fatalities 14 12 10 8 Number 6 4 2 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Years

Environment Environment • EMS Status • ISO14001 Certification achieved in February 2004 • Water Consumption and Discharge • Closed circuit water reticulation • Water balance implemented • Waste management • Effective system with permitted landfill site on mine • Dust • Dust fall out low • Public Participation • Bi-annual environmental committee meeting held • Social Issues • Transformation forum • Addicted to business program • Environmental awareness interventions at local schools

Opencast Mining Operations Opencast Mining Operations

Opencast Rehabilitation Opencast Rehabilitation

Mineral Reserves and Resources Mineral Reserves Merensky UG2 UG2 Opencast Reserves Grade Reserves Grade Reserve Grade Mt g/t 4E Mt g/t 4E Mt g/t 4E Proved 22.9 6.42 82.1 4.61 1.4 6 Probable 90 6.59 249.5 4.65 Total 112.9 6.56 331.5 4.64 1.4 6 Mineral Resources Merensky UG2 Resources Grade Resources Grade Mt g/t 4E Mt g/t 4E Measured Indicated 20.8 7.81 26.4 5.03 Inferred 92.3 7.84 233.5 4.75 Total 113 7.83 259.9 4.78

Merensky Resources Resource Classification Measured Indicated Indicated (As per GC overwrite) Inferred

UG2 Resources UG2 Resources Resource Classification Measured Indicated Inferred

Merensky reef facies facies Merensky reef

Merensky Reef Characterisitics Characterisitics Merensky Reef

UG2 Reef Characteristics UG2 Reef Characteristics

Immediately Available Ore Reserves 22 21 20 19 18 17 16 1999 2000 2001 2002 2003 21.1 19 18 18 19.9 Months

3 Shaft Seismic Survey 3 Shaft Seismic Survey Still some noise Stable block on surface Clean and stable block Complex zone Very clean and stable block Stable block

Pothole Reef Characteristics Pothole Reef Characteristics

Mining Method Mining Method

Mining Method Mining Method • West • Designed as conventional breast mining • Central • Section 2 conventional breast mining • Section 7 fully mechanized room and pillar • East • Designed as conventional breast mining

Concentrator Capacities Concentrator Capacities • Merensky • Original design 100ktpm, upgraded over time to current capacity of 320ktpm • UG2 • Original design 100ktpm; 1 st upgrade to 210ktpm and future proposed upgrade to 285ktpm • Opencast (UG2) • Original Merensky plant converted to 25ktpm UG2 unit • New 30ktpm plant erected • Total O/C capacity 55ktpm

Mine Infrastructure Layout Mine Infrastructure Layout

Mine Infrastructure Layout Mine Infrastructure Layout 28 West Twin Raise Bore Surface Raise Boreholes Reef S u b I n c l i n e 5 Level F/W Winze 6 Level

Breast Layout - - Schematic Schematic Breast Layout BREAST LAYOUT • X/Cuts 200m apart • Raise on reef to upper level (200m) • Orepasses to X/Cut and Hlge Raise Boxfront Haulage Travelling Way Cross Cut

Fully Mechanized Layout Fully Mechanized Layout

Fully Mechanized Layout Fully Mechanized Layout Throw blast zone Throw blast zone ledge road 1.5m 1.2m Roof bolts Throw blast zone Reef

Production Production

Development Development Development Meters 50,000 45,000 40,000 35,000 30,000 Metres 25,000 20,000 15,000 10,000 5,000 0 1999 2000 2001 2002 2003 4470 2269 1493 1607 1430 CAPITAL M Total W/C M 36955 37268 44816 44055 47460 TOTAL M 41425 39537 46309 45662 48890

%UG2 Production %UG2 Production UG2 mined as % of total output 100 90 80 70 60 % 50 40 30 20 10 0 1999 2000 2001 2002 2003 29 32 36 44 46 UG2 mined as % of total output

Tons Milled 7,500 7,000 6,500 Tons milled 000 6,000 5,500 5,000 4,500 4,000 1999 2000 2001 2002 2003 Years

Grade 4E g/t g/t Grade 4E 10 8 6 g/t 4E 4 2 0 1999 2000 2001 2002 2003 5.86 5.56 5.68 5.86 5.76 Built Up Grade

Equivalent refined Pt oz Equivalent refined Pt oz 700 650 600 550 500 000 oz 450 400 350 300 250 200 1999 2000 2001 2002 2003 Years

4E Prill Prill Splits Splits 4E Current Concentrator 4E Prill Splits Merensky UG2 Platinum 62.09 58.44 Palladium 29.66 29.06 Rhodium 4.96 11.76 Gold 3.27 0.74

Recovery (Concentrator) Recovery (Concentrator) 100.00% 80.00% % Recovery 4E 60.00% 40.00% 20.00% 0.00% 1999 2000 2001 2002 2003 82.88% 82.83% 85.01% 86.25% 83.72% 4E Recovery

Operating Costs Operating Costs

Cash on- -mine costs mine costs Cash on Rand/ ton milled 500 450 400 350 300 Rands 250 200 150 100 50 0 1999 2000 2001 2002 2003 152 167 184 212 242 R/ton milled

Cash on- -mine costs mine costs Cash on R/oz equiv. refined Pt 6,000 5,000 4,000 Rand's 3,000 2,000 1,000 0 1999 2000 2001 2002 2003 1,618 1,886 1,995 2,210 2,607 R/oz equiv.refined Pt

Profitability and Volume per Mine 2003 Profitability and Volume per Mine 2003 55,0% AS 50,4% 50,0% 45,0% 40,0% Operating Margin % 35,0% RS PPL Group average 28,0% 29,4% 28,6% 30,0% 25,0% US LPM 20,4% 20,5% 20,0% 15,0% BRPM 10,1% 10,0% RS UG2 Project 4,0% 5,0% Modikwa 0,5% 0,0% 0 300 600 900 1 200 1 500 1 800 2 100 2 400 Equivalent Pt oz (000's)

Unit Costs Unit Costs Unit Costs Cash on-mine cost per equiv. Pt oz refined • Planned increase 12% above 2003 • Cost Optimization Target 9% above 2003

Production Initiatives Production Initiatives Production Initiatives • Grade Improvement • Recovery Improvement • Opencast Mining

Cost Initiatives Cost Initiatives Cost Initiatives • Labour – Numbers, efficiencies, overtime etc. • Stores – Steel balls and chemicals • Utilities – Electricity management. • Contractors – Rate increases. • Sundries – Telephones, printing etc.

Capital Capital

Capital Expenditure Capital Expenditure Capital Expenditure 1000 900 800 700 600 R's 000 000 500 400 300 200 100 0 1999 2000 2001 2002 2003 Years

Key current capital projects Key current capital projects • 2# Capital development • Tailings dam extension