INTERIM RESULTS FY2020 27 February 2020
Forward-looking and cautionary 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 economi c 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’ exp loration 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, levels of global demand 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 Inte grated 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. Disclaimer: This entire presentation and all subsequent written or oral forward-looking statements attributable to Implats or any person acting on its behalf are qualified by caution. Recipients hereof are advised the presentation is prepared for general information purposes and not intended to constitute a recommendation to buy- or offer to sell shares or securities in Implats or any other entity. Sections of this presentation are not defined and assured under IFRS, but included to assist in demonstrating Implats’ underlying financial pe rformance. Implats recommend you address any doubts in this regard with an authorised independent financial advisor, stockbroker, tax advisor, accountant or suitably qualified professional. INTERIM RESULTS FY2020 2
Agenda Operational Financial Market Business Group overview review review outlook overview Nico Muller Meroonisha Kerber Sifiso Sibiya Nico Muller Mark Munroe Gerhard Potgieter INTERIM RESULTS FY2020 3
OVERVIEW Nico Muller, CEO
Group safety overview ▪ A good period of safety performance regressed in last quarter FATALITIES & LOST-TIME INJURY FREQUENCY RATE of FY2019 and into the first quarter of FY2020 14 8 ▪ 3 fatalities in H1 FY2020 LTIFR* 6.88 7 ▪ LTIFR improved 9% to 4.83 per million man hours worked 12 6.35 6.01 ▪ TIFR improved 6% to 11.92 per million man hours worked 6 FATALITIES 10 5.30 ▪ 9 out of 16 millionaire sites 9 4.83 5 8 8 7 4 6 Fatality Free Shifts 5 3 4 3 2 ▪ Rtb Services 13.20 million ▪ Marula 2.22 million 2 ▪ Refineries 12.01 million ▪ 20 Shaft 2.00 million 1 ▪ 14 Shaft 4.40 million ▪ 16 Shaft 1.60 million 0 0 ▪ 9 Shaft 3.14 million ▪ Zimplats 1.50 million FY2016 FY2017 FY2018 FY2019 H1FY2020 ▪ 6 Shaft 2.61 million INTERIM RESULTS FY2020 5 *per million man hours worked
Group sustainable development R36 million spent on social Committed to effecting change in gender equality projects in South Africa in H1 FY2020 One of 325 companies globally and one Road construction in Freedom Park and of only eight South African companies Kutlwanong near Rustenburg Industry leaders in employee accommodation and living Received an A rating for conditions disclosures, awareness and management of water security risk Spent R94 million on housing in H1 FY2020 INTERIM RESULTS FY2020 6
Group operational overview* Description H1 FY2020 H1 FY2019 Var (%) Remarks Tonnes Milled Mt 10.31 10.24 1 • Including tonnage from Impala Canada • Concentrate 6E production 6E koz 1 533 1 560 (2) Concentrator issues at Mimosa and Two Rivers Mine-to-market production 6E koz 1 342 1 376 (2) • Impala 6E koz 652 673 (3) Ramp-up from 16 and 20 Shafts, offset by 1 and 9 Shafts • Zimplats 6E koz 299 293 2 Sustained steady-state production • Marula 6E koz 124 118 6 Improved operational performance • Impala Canada 6E koz 8 - 100 Production included from 13 December 2019 • Mimosa 6E koz 120 132 (9) Breakdown in the milling circuit during Q1 • Lower grade and poor concentrator recoveries during Q1 Two Rivers 6E koz 138 161 (14) • Higher receipts from third-parties Third-party purchased 6E koz 190 184 4 • Stock build of 135koz compared to previous period when 66koz was Refined 6E production 6E koz 1 317 1 589 (17) released • Unit cost (milled) R/t 1 157 1 049 (10) Impala (1# restructuring, development), Marula (stoping), Canada costs • Unit cost (refined 6E stock adjusted) R/6E oz 13 157 11 413 (15) 11% increase in costs, reduction in grade, mill failures Unit cost (refined) R/6E oz 12 312 10 885 (13) • Inventory reallocation between Impala and IRS • Right of use assets capitalized R117m Capital expenditure Rm 1 925 1 707 (13) • Reduced spend on 20 shaft Impala Rm 998 1 017 2 • Lower spend on project capital Zimplats Rm 686 657 4 • New tailings dam extension (R117m), fleet replacement (R52m) Marula Rm 204 33 (>100) • New inclusion Impala Canada Rm 37 0 (>100) INTERIM RESULTS FY2020 7 * Includes 18 days from Impala Canada
Group movement in 6E concentrate production 124 299 120 138 8 190 652 koz 6E in concentrate 6% 2% -9% -14% 100% 4% -3% 1 600 1 590 6 12 1 580 7 7 1 570 6E koz in concentrate 21 8 1 560 1 550 23 1 540 1 530 1 560 1 520 1 533 1 510 1 500 H1 FY2019 Impala Canada 3rd party Receipts Marula Zimplats Mimosa Impala Two Rivers H1 FY2020 INTERIM RESULTS FY2020 8
Group business overview H1 H1 REVENUE AND COST OF PRODUCTION Description Var (%) FY2020 FY2019 22 500 6E ounces produced (refined) koz 1 317 1 589 (17) 20 000 6E ounces sold koz 1 328 1 573 (16) 17 500 Revenue per 6E ounce sold R/oz 20 888 14 804 41 R/6E ounce 15 000 12 500 Revenue Rm 28 019 23 521 19 10 000 Cost of sales Rm 21 853 20 289 (8) 7 500 Gross profit Rm 6 166 3 232 91 5 000 Free cash flow Rm 4 989 4 647 7 2 500 - Gross cash Rm 5 996 6 355 (6) Marula Two Zimplats Mimosa Impala IRS + Group in conc Rivers in in matte in conc refined Impala Refined conc refined Head room Rm 7 996 10 355 (4) Cash cost Stay-in-business capital Replacement capital Expansion capital Net cash/(debt) Rm (1 943) (976) (99) Revenue INTERIM RESULTS FY2020 9
Group performance against strategic objectives Protect and strengthen license to Optimise balance sheet and Enhance the competitiveness of Reposition Implats to the lower operate capital allocation the portfolio half of the cost curve Concluded a 3 year wage agreement without LIQUIDITY and CAPITAL STRUCTURE Completed Impala Canada acquisition SAFETY PERFORMANCE third party intervention and/or industrial action Converted the US$ bond LTIFR improved by 8.9% Pro-forma mechanised mine-to-market Paid residual debt at Zimplats ($42.5m) TIFR improved by 6.3% attributable volumes increase to 57% Increased spend on social projects by 16% in Funded Impala Canada acquisition with mixture Impala Canada zero LTIs in CY2019 South Africa of cash and debt (R10.9bn) Improved commodity mix to more closely match R8.0bn liquidity OPERATIONAL PERFORMANCE anticipated future PGM demand Released independent third party assessment of R1.9bn net debt Sustained mine-to-market production all Tailings Storage Facilities in the Group Continued investment in maintenance and PGMs -2% to 1.34Moz (increasing capacity at Marula and Two Rivers) CAPITAL ALLOCATION sustainability of processing assets Increased third party receipts (short term impact on unit costs) PGMs +4% to 190koz Invested R1.9bn in Capex An A rating from CPD for our management of Refined production impacted by stock build-up Repaid debt water risk and a B rating for our efforts on Enhancing operating resilience with additions to PGMs -17% to 1.32Moz Concluded value accretive M&A climate change and disclosures milling capacity planned at Zimplats, Mimosa and Resumed dividend payments Two Rivers COST PERFORMANCE Included In the Bloomberg 2020 Gender Equality Group cash cost inflation of 11% SHAREHOLDER RETURNS Sustained market development and supported Index targeted industry initiatives to grow PGM Cash & SIB cost at IMPALA 12 & 14 shafts flat over Resumed dividend payments based on payment demand in jewellery, auto and industrial spheres two years with volumes up 13% pa of 30% FCF (pre-growth capital) Ongoing constructive dialogue with stakeholders Turnaround sustained at MARULA Declared R1.25 per share interim dividend and government in Zimbabwe and South Africa PGMs +6% to 124koz INTERIM RESULTS FY2020 10
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