FY2018 RESULTS BRIEFING We respect, care and deliver
ZIMPLATS LOCATION AND OPERATIONS We respect, care and deliver
AT A GLANCE… 0 Fatalities 271 000 Pt Oz Produced 2018 US$3 million US$166 million Profit before tax Profit after tax 3 We respect, care and deliver
SUMMARY OF RESULTS Nameplate 6 200 000 ROM Tonnes Tonnes Milled 8.8 million Fatality free shifts 6 801 000 6 570 000 14% (5%) Pt 271 000 Oz Revenue Operating cost Head Grade 3.24 g/t US$582.5m US$1 290/ Pt oz. 64% 248% Tax expense Profit before tax Cash generated US$163.3m US$166m US$195m 4 We respect, care and deliver
REVENUE CONTRIBUTION BY METAL 2009 TO 2018 2012 2012 2009 2009 Other Other Nickel 2% 4% 12% Nickel 11% Gold 7% Rhodium 4% Palladium Gold Platinum 11% Platinum 7% 55% 68% Palladium 19% 2015 2015 2018 2018 Other Other Nickel 4% Nickel 5% 10% 9% Rhodium Platinum Rhodium 4% 38% 7% Gold Platinum Gold 6% 49% 6% Palladium Palladium 27% 35% 5 We respect, care and deliver
DEPRESSED PLATINUM PRICES Platinum Palladium 1 000 1 800 1 600 800 1 400 1 200 600 US$/oz US$/oz 1 000 800 400 600 400 200 200 0 0 Nickel Gold 30 000 1 800 25 000 1 500 20 000 1 200 US$/ton US$/oz 15 000 900 10 000 600 5 000 300 0 0 6 We respect, care and deliver
OPERATIONS 7 We respect, care and deliver
SAFETY SUMMARY Fatality-free shifts 8.8 million Total injury Lost-time frequency rate injuries 0.52 3 ZERO HARM Lost-time injury Total injuries frequency rate 8 0.19 Fatal injury frequency rate 0 8 We respect, care and deliver
OUR SAFETY JOURNEY 180 TI – Total injuries LTI – Lost time injuries 160 154 140 365 days LTI free 120 100 84 80 60 43 43 38 38 40 20 20 19 19 18 17 20 14 12 11 11 10 8 8 6 3 3 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 TI LTIs 9 We respect, care and deliver
ENVIRONMENTAL PERFORMANCE Zero Major environmental non- conformances Ongoing water recycling programmes for production 2% reduction in amount of water extracted from dams and underground Ongoing programmes to manage fresh water consumption Progressive land rehabilitation programmes in place 10 We respect, care and deliver
METAL PRODUCTION Metal FY2018 FY2017 Variance Platinum (oz) 271 000 281 000 (4%) 223 000 233 000 (4%) Palladium (oz) Gold (oz) 29 000 29 000 - Rhodium (oz) 24 000 25 000 (4%) Ruthenium (oz) 21 000 22 000 (5%) Iridium (oz) 10 000 11 000 (9%) 50 000 48 000 4% Silver (oz) 5 000 5 000 - Nickel (t) Ngezi Concentrator Copper (t) 4 000 4 000 - Cobalt (t) 87 67 30% 11 We respect, care and deliver
FINANCIALS 12 We respect, care and deliver
CASH UTILISATION FY2002 – FY2018 (US$6 BILLION) US$1.6 billion US$2.5 billion 13 We respect, care and deliver
CASH UTILISATION FY2018 (US$627 MILLION) 14 We respect, care and deliver
ABRIDGED INCOME STATEMENT 2018 2017 Variance Sales US$ millions % revenue Revenue 583 513 14 • Metal prices Cost of sales ( 368) ( 366) 1 Gross profit 215 146 47 Profit before tax 166 101 64 Taxation ( 163) ( 55) (196) Gross profit Current income tax ( 65) ( 51) ( 27) • Revenue Corporate tax: ( 20) ( 10) ( 50) Additional profits tax: ( 43) ( 40) ( 8) Withholding tax ( 2) ( 1) ( 50) Profit before Deferred income tax ( 98) ( 5) ( 1 860) tax • Higher gross Profit after tax 3 46 ( 93) profit Cash operating cost per Pt oz (US$) 1 290 1 226 (5) Taxation Gross revenue per 4E oz (US$) 1 075 922 17 • Change in rate Gross margin (%) to 25.75% 37 28 9 • Higher profits 15 We respect, care and deliver
CONTRIBUTION TO THE FISCUS 140 120 CONTRIBUTION TO THE FISCUS (US$M) 100 80 131 60 113 97 96 86 40 62 53 47 42 20 15 0 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2017 FY2018 FY2016 16 We respect, care and deliver
CAPITAL PROJECTS MUPANI MINE DEVELOPMENT 17 We respect, care and deliver
CAPITAL PROJECTS US$136 million spent on capital projects BIMHA MINE MUPANI MINE STAY IN BUSINESS REDEVELOPMENT DEVELOPMENT CAPITAL • US$101m project • US$264m project • US$31.2 million budget budget spent on replacement of • US$29.9m spent trackless mining • US$28.7m spent machinery in FY2018 in FY2018 (TMM) in FY2018. • Attained design • US$37.8m - capacity in April project • US$46.2 million 2018 expenditure to spent on routine date stay-in-business • US$66.2m - capital projects project expenditure to date 18 We respect, care and deliver
OUR PEOPLE Total Headcount Employee Housing 6 500 Strategy in place 19 We respect, care and deliver
EMPLOYEE WELLNESS Occupational HIV/AIDS MENTAL HEALTH NCDs Health • HIV/AIDS • Mental health • Continued focus on • Occupational health programmes programme now in NCDs management programmes in continue to run for its second year place and running staff, their families effectively and the community. 20 We respect, care and deliver
COMMITTED TO CREATING SHARED VALUE US$6 million Invested in community development projects in FY2018 COMMUNITY SPORTS LIVESTOCK HEALTH PROJECT ON EDUCATION DEVELOPMENT REVITALISATION ALBINISM PICTURE: CHITSUWA DAM We respect, care and deliver
KADOMA GENERAL HOSPITAL REHABILITATION PROJECT BEFORE POOR WATER DILAPIDATED LAUNDRY DILAPIDATED KITCHEN RETICULATION EQUIPMENT EQUIPMENT 22 We respect, care and deliver
KADOMA GENERAL HOSPITAL REHABILITATION PROJECT AFTER NEW LAUNDRY BLOCK CONSTRUCTED NEW KITCHEN EQUIPMENT FACILITIES FACELIFT NEW LAUNDRY EQUIPMENT 23 We respect, care and deliver
COMMUNITY PROJECT ON ALBINISM Campaign launched in partnership with: • Ministry of Labour and Social Welfare • Ministry of Health and Child Care • Friends with Albinism Key project objectives • Awareness raising • Promotion of integration • Facilitation of distribution of sun protection materials ( lotions, lip balm, hats) Major project achievements: • Effective national awareness campaign • Skin cancer screening and treatment • Provision of eye tests and spectacles • Distribution of sun protection materials ( approximately 1000 beneficiaries) 24 We respect, care and deliver
COMMERCIAL LIVESTOCK PROJECTS 2018 2017 • 96 project offspring to • 16 Bonsmara and Tuli date – 47 heifers and bulls donated to the 49 bulls community for herd improvement. • Improved animal health and nutrition • 64 Bucks donated to the community for • Launch of Livestock improved herd Revitalisation ( AI) genetics project in partnership with Zimbabwe • Construction and Agricultural Society. rehabilitation of dip tanks • 200 cattle inseminated to date in Mat. South 25 We respect, care and deliver
DEVELOPING SPORT IN THE COMMUNITY 26 We respect, care and deliver
PROTECTING OUR COMMUNITY ZRP TURF POLICE STATION CONSTRUCTED BY 11KM FENCE ERECTED BY ZIMPLATS ZIMPLATS ALONG NGEZI SELOUS HIGHWAY 27 We respect, care and deliver
EMPOWERMENT • Employee Share Ownership Trust transaction concluded in January 2017 Indigenisation • Zimplats Mhondoro-Ngezi Chegutu Zvimba Community Share Ownership Trust 10% equity being processed • The local enterprises ( LEDs) supply engineering and Enterprise technical solutions, protective clothing (work suits and Development overalls), silica and bricks • LEDs turnover for FY2018 - US$43m • Zimplats continued with its strategy of local supplier Local Supplier development - 69% of total spend in FY2018 Development 28 We respect, care and deliver
LOCAL PROCUREMENT AND SUPPLIER DEVELOPMENT 100% 250 90% 80% PROPORTION OF LOCAL SPEND 200 70% EXPENDITURE ($M) 60% 150 50% 40% 100 30% 20% 50 10% - 0% FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Local spend Local spend % of total spend 29 We respect, care and deliver
DEVELOPING LOCAL SUPPLIERS - TOOL FOR ECONOMIC RECOVERY Import substitution initiatives Partnership to establish a bulk emulsion plant – AEL Zimbabwe Partnership to set up mine roof support – Grindale Engineering 30 We respect, care and deliver
LOCAL ENTERPRISE DEVELOPMENT TELSTONE TRADING We respect, care and deliver
LOOKING AHEAD 1. Business optimisation • Achieving production volumes • Containing costs • Preservation of cash resources • Maintaining sustainable business practices • Expansion, diversification and strategic joint ventures 2. Plans to reline and improve the existing furnace to improve furnace safety 3. Continued investment in community projects 4. Support government efforts and engage them on a multi-stakeholder approach to the national beneficiation facility 32 We respect, care and deliver
33 We respect, care and deliver
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