Impala Platinum Holdings Limited Interim results 1 March 2018 Impala Rustenburg 16 Shaft
Forward looking statement Certain statements contained in this presentation other than the statements of historical fact contain forward-looking statements regarding Implats’ operations, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum industry, expectations regarding metal prices, production, cash costs and other operating results, growth prospects and the outlook of Implats’ operations, including the completion and commencement of commercial operations of certain of Implats’ exploration and production projects, its liquidity and capital resources and expenditure and the outcome and consequences of any pending litigation, regulatory approvals and/or legislative frameworks currently in the process of amendment, or any enforcement proceedings. Although Implats believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Accordingly, results may differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metal prices and exchange rates and business and operational risk management. For a discussion on such factors, refer to the risk management section of the company’s Annual Report. Implats is not obliged to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the dates of the Annual Report or to reflect the occurrence of unanticipated events. All subsequent written or oral forward-looking statements attributable to Implats or any person acting on its behalf are qualified by the cautionary statements herein.
Agenda GROUP OPERATIONAL FINANCIAL MARKET BUSINESS OVERVIEW REVIEW REVIEW REVIEW OUTLOOK Nico Muller Nico Muller Ben Jager Gerhard Potgieter Paul Finney
OVERVIEW Nico Muller, CEO
Group - safety overview 6 x FATALITIES NUMBER OF FATALITIES 11 CAUSES LOCATION 9 Marula Mobile 7 Equipment 6 1 2 4 4 5 Impala Fall of 2014 2015 2016 2017 H1 2018 Rustenburg ground LOST TIME INJURY FREQUENCY RATE Fatality Free Shifts 6.49 6.33 6.10 (PER MILLION MAN HOURS WORKED) 5.92 5.27 • Rtb Services • 9 shaft 12.1 million 2.3 million • Refineries • 14 shaft 11.1 million 2.1 million • Zimplats • 6 shaft 7.8 million 1.9 million • Minpro • 11 shaft 3.0 million 1.4 million • 4 shaft 2.5 million 2014 2015 2016 2017 H1 2018
Group - operational overview • 6 Description H1 2018 H1 2017 Var (%) Remarks • Encouraging period-on-period improvement Tonnes Milled Mt 9.94 9.26 7 • Mine-to market increases offset by lower IRS 3 rd party receipts Concentrate production Pt koz 763 766 (0) Mine-to-market production Pt koz 678 658 3 • Impala Pt koz 348 318 9 Good improvement from Impala (14 and 16 shafts) Zimplats Pt koz 140 139 1 • Two Rivers Pt koz 83 97 (14) Lower grade and platinum ounces produced due to mining of split reef Mimosa Pt koz 63 61 3 Marula Pt koz 43 43 0 • Lower receipts from third parties Third-party purchased Pt koz 86 108 (21) • Impacted by Impala stock build-up due to furnace repairs (75 Pt koz) Refined production Pt koz 727 779 (7) • Operating costs well controlled Unit cost (milled) R/t 961 928 (4) • Unit cost (refined) impacted by temporary stock build-up Unit cost (refined) R/oz 28 206 22 797 (24) • Stock-adjusted unit costs (refined) in line with inflation Unit cost (stock adjusted) R/oz 24 055 22 795 (6) Capital expenditure Rbn 1.90 1.59 20 • Increase in capitalised development Impala stay-in-business capital Rm 1 052 865 22 • Ramp-up work at 16 and 20 Shafts Impala replacement projects Rm 390 332 17 • Ramp-up at Mupani project (approved during H1 2017) Zimplats replacement projects Rm 99 70 41 • New investment Waterberg project Rm 408 - -
Group - business overview • 7 REVENUE AND COST OF PRODUCTION Description H1 2018 H1 2017 Var (%) 30 000 Platinum ounces produced (refined) koz 726 700 778 500 (7) 25 000 Platinum ounces sold koz 648 800 730 700 (11) 20 000 Revenue per platinum ounce sold R/oz 25 968 24 921 4 R/Pt oz 15 000 Revenue Rbn 17.28 18.48 (7) 10 000 Cost of sales Rbn 16.55 18.62 11 5 000 Gross profit Rm 733 (139) 627 - Two Zimplats Mimosa in Marula in Impala Group Loss after tax Rm (164) (328) 50 Rivers in in matte conc conc refined refined conc Replacement capital Stay-in-Business capital Cash movement Rbn (3.55) (1.32) (169) Cash cost 2018 basket revenue R/Pt oz sold
OPERATIONAL REVIEW Gerhard Potgieter, COO
Impala PRODUCTION Var 318 333 348 Description H1 2018 H1 2017 (%) Remarks 400 400 350 350 336 319 300 300 272 • Fatalities and lower volumes at 10 & 20 shafts 250 250 Pt oz (000) • Higher production from 1, 11, 12, 14 & 16 200 200 Tonnes milled Mt 5.67 5.05 12 150 150 shafts 100 100 50 50 0 0 • 16 shaft ore passes H1 2017 H2 2017 H1 2018 PGE head grade g/t 4.05 4.15 (2) Pt in concentrate Pt refined • 75 koz stock build-up (furnace 5 rebuild) Refined platinum koz 272 319 (15) • Improvement from 14 and 16 Shaft Platinum in concentrate koz 348 318 9 COSTS 30 405 • Lower refined production volumes Cost per platinum ounce R/oz 30 405 23 304 (30) 23 769 23 304 30000 30000 • Supported by higher production Stock adjusted R/oz 23 822 23 301 (2) 23 822 25000 25000 24 398 23 301 20000 20000 • R1 052 million stay-in-business capital 15000 15000 R/oz Capital expenditure Rbn 1.44 1.20 (20) 10000 10000 • R390 million replacement projects 5000 5000 0 0 Cash flow before financing • R1.44 billion capex H1 2017 H2 2017 H1 2018 Rm (1 625) (1 508) (8) and working capital Cost/Pt oz refined Stock-adjusted • Impala Rustenburg CE (Mark Munroe) commenced on 18 January CASH MOVEMENT • Strategic review underway Rm • Replacement projects: increased focus on operational readiness -1 508 • Transformer fire at the furnace will impact contingency capacity resulting in expected inventory -1 625 -1 871 build of 60 000 ounces by year end H1 2017 H2 2017 H1 2018
Oz (000) H1 2017 318.4 Impala Shafts - Movement in platinum contribution 32.5 14 Ramp – up after fire 10.1 16 Build up Shaft 11 4.7 4.3 1 Production improvement 12 2.0 0.4 EF 0.0 6 0.2 20 Safety incident 1.6 10 Safety incident 2.3 4 Shaft closed 3.2 9 Shaft in harvest mode Shaft closed 8.4 7 7A 8.5 Shaft closed H1 2018 348.3
16 Shaft Project Progress H1 2018 H1 2018 Project progress Act Plan Vent shaft Main shaft Completion 87.8% 88.2% Cost to completion (Rm) Total Approved Capital 7 939 Expenditure to date 6 968 Completed infrastructure Remaining Capital to be spent 971 Additional tramming loops development around the shaft 4th ore pass system Focus Areas • Ore-pass rehabilitation • On reef development rates • Traversing the Hex River Fault • Team build-up • Concurrent off-reef development • Shaft Logistics
16 Shaft Production Readiness TONNAGE BUILD UP 3 000 H1 2018 H1 2018 FY2018 Performance Units Act Plan Plan 100 2 500 384 Percentage of Ramp - up Capital expenditure Rm 173 207 Annual tonnes (000) 80 2 000 1 721 Capital development m 1 059 813 60 1 500 Production tonnes hoisted kt 643 658 1 380 40 1 000 Platinum production kozs 36 35 75 20 500 Stoping teams in place teams 59 63 75 0 0 Immediately mineable face m 1 085 1 385 2 100 2014 2015 2016 2017 2018 2019 2020 2021 2022 FY2017 H1 2018 FY 2022 H1 2018 H1 2018 Costs (Real) Efficiencies Units Act Act Plan Act Plan Off Reef Dev Productivity m/team/month 24.1 28.0 On shaft R/t mined 1 471 1 116 925 On Reef Dev Productivity m/team/month 17.2 23.8 Total cost R/Pt oz 32 503 29 357 20 650 Stoping Productivity ca/team/month 331 334
20 Shaft Project Progress Capital development H1 2018 H1 2018 still to be done Project progress Act Plan Main shaft Completion 87.8% 88.2% Vent shaft Incline development Cost to completion (Rm) Total Completed 22 to 18 level Approved capital 8 375 Expenditure to date 7 667 Remaining capital to be spent 708 Decline development completed 23 to 25 level Focus areas • Mineable face length • Stope team productivity • Managing complex geology Fault lines Mining
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