ANNUAL RESULTS FY2018 13 September 2018
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 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, 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 Integrated 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 performance. Implats recommend you address any doubts in this regard with an authorised independent financial advisor, stockbroker, tax advisor, accountant or suitably qualified professional. ANNUAL RESULTS FY2018 2
AGENDA OPERATIONAL FINANCIAL MARKET BUSINESS GROUP REVIEW REVIEW REVIEW OUTLOOK OVERVIEW Nico Muller Meroonisha Kerber Sifiso Sibiya Nico Muller Mark Munroe Gerhard Potgieter ANNUAL RESULTS FY2018 3
OVERVIEW Nico Muller, CEO
GROUP ‐ SAFETY OVERVIEW FATALITIES & LOST ‐ TIME INJURY FREQUENCY RATE • 7 months fatality free, new Implats record 16 7 6.49 6.10 5.92 14 5.55 • 11 out of 17 millionaire sites 6 5.27 LTIFR 11 12 5 9 10 4 7 7 8 3 6 4 2 7 x FATALITIES 4 1 2 0 0 2014 2015 2016 2017 2018 CAUSES LOCATION Marula Fatality Free Shifts 1 Equipment 3 • • Rtb Services 12.34 million 9 Shaft 2.51 million 4 6 • • Refineries 11.33 million 6 Shaft 2.05 million Impala • • Zimplats 8.78 million 11 Shaft 1.95 million Fall of Rustenburg ground • • Minpro 3.33 million 1 Shaft 1.25 million • • 4 Shaft 2.56 million Mimosa 1.12 million • 14 Shaft 2.63 million • The entire Impala Rustenburg operation has achieved 4.26 million fatality free shifts ANNUAL RESULTS FY2018 5
GROUP ‐ SUSTAINABILITY OVERVIEW Improving Social Environmental health investment custody ZERO 51% 16% 29% Level 4 ‐ 5 environmental increase in social decline in employee increase in local 13% incidents since 2014 investment spend deaths from AIDS ‐ related procurement from 15% • Kanana Multipurpose decrease in Level 3 causes since 2014 suppliers in mine lease environmental incidents Centre & Library areas in SA (R2.9bn) improvement in ART • Luka Makgotla offices year ‐ on ‐ year uptake year ‐ on ‐ year 6% • Road infrastructure $6.0m 530 • Schools invested in socio ‐ TB incident rate per improvement in water 45% • Water reticulation economic development 100 000, significantly utilisation year ‐ on ‐ year Of water used was at Zimplats lower than national (2.12Kl/tonne milled) 3 43% • Kadoma Hospital recycled average of 1 000 • Turf Police Station schools officially reduction in new • Commercial livestock opened in Rustenburg pulmonary TB cases 11% $2.5m project in FY2018 recorded over 5 years less energy used in invested in refurbishment 4% 69% 3 366 FY2018 of Kadoma Hospital in of Zimplats’ total annual lower direct SO 2 Zimbabwe homes built in local emissions year ‐ on ‐ year procurement spend from communities since 2009 local suppliers ANNUAL RESULTS FY2018 6
GROUP ‐ OPERATIONAL OVERVIEW Description 2018 2017 Var (%) Remarks • Tonnes Milled Mt 19.36 18.33 6 Significant improvement despite 9 additional milling shifts in previous period Concentrate production Pt koz 1 574 1 557 1 Mine ‐ to ‐ market production Pt koz 1 316 1 304 1 • Increased production from build ‐ up shafts, offset by closure of old shafts at Impala Impala Pt koz 669 651 3 • FY2018 calendar change – milling shifts reduce by 9 days Zimplats Pt koz 274 281 (2) • Lower grade due to split reef at Two Rivers Two Rivers Pt koz 163 182 (11) • Steady production Mimosa Pt koz 125 122 3 • Marula Pt koz 85 68 25 Excellent improvement following FY2017 restructuring & improved stability • Third ‐ party purchased Pt koz 259 253 2 Benefitted from a once off toll refining contract • Refined production Pt koz 1 468 1 530 (4) 77 000 pt oz stock build ‐ up due to smelter repairs and fire at No 5 furnace Unit cost (milled) R/t 1 035 1 076 4 • Operating costs well contained ‐ separation costs has been excluded from cash costs Unit cost (refined stock adjusted) R/oz 22 931 22 838 ‐ • Stock ‐ adjusted unit costs (refined) well below inflation Unit cost (refined) R/oz 24 660 22 657 (9) • Unit cost (refined) impacted by temporary stock build ‐ up Capital expenditure Rbn 4 606 3 430 (34) • Furnace rebuild and increase in capitalized development Impala Rm 2 767 2 472 (12) • New Mupani mine development, restore Bihma mine to full production, fleet Zimplats Rm 1 738 863 (101) • Tailings dam extension delayed Marula Rm 101 113 11 • Purchase of 15% stake in the project Waterberg project Rm 425 ‐ ‐ ANNUAL RESULTS FY2018 7
GROUP – MOVEMENT IN PLATINUM IN CONCENTRATE CONTRIBUTION 669 669 85 125 274 163 Koz Pt in concentrate 259 3% xx 25% 2% 3% ‐ 2% ‐ 11% 1 610 1 600 3 7 6 1 590 19 Pt koz in concentrate 17 1 580 1 570 18 1 560 1 574 1 550 1 557 1 540 1 530 FY2017 Impala Marula 3rd party receipts Mimosa Zimplats TwoRivers FY2018 ANNUAL RESULTS FY2018 8
GROUP ‐ BUSINESS OVERVIEW Description 2018 2017 Var (%) REVENUE AND COST OF PRODUCTION Platinum ounces produced (refined) koz 1 468 1 530 (4) 30 000 Platinum ounces sold koz 1 355 1 469 (8) 25 000 Revenue per platinum ounce sold R/oz 25 935 24 670 5 20 000 ( R/Pt oz) Revenue Rbn 35.85 36.84 (3) 15 000 Cost of sales Rbn 34.28 37.37 8 10 000 Gross profit Rm 1.58 (0.53) 398 5 000 Impairment Rm 13 629 10 229 ‐ 0 Two Zimplats Mimosa Marula Impala Impala + Group Rivers in in matte in conc in conc refined IRS Refined Loss for the year Rbn 10 793 8 098 (33) conce refined Cash costs Stay in business capital Replacement capital Expansion capital HEPS cps (171) (137) (25) 2018 R/Pt oz sold ANNUAL RESULTS FY2018 9
MINERAL RESOURCES AND MINERAL RESERVES • Attributable Group Mineral Resource estimate ATTRIBUTABLE MINERAL RESOURCES ATTRIBUTABLE MINERAL (Variance Moz Pt) RESOURCES OF reduced by 57.8 million platinum ounces 200 134 MOZ PT 160 − Zimplats release of land ‐ 44.5 Moz pt 2% 6% 0.8 ‐ 44.6 9% − Imbasa & Nkosi prospecting rights ‐ 8.6 120 ‐ 8.6 Moz pt ‐ 5.2 ‐ 0.1 ‐ 0.04 Moz Pt 191.6 37% − Impala prospecting rights 9% ‐ 5.2 Moz pt 80 133.8 40 37% 0 2017 Zimplats Afplats / Impala Mimosa Marula Rivers 2018 Imbsa / Inkosi Two Zimplats Impala Two Rivers Afplats Marula Mimosa ATTRIBUTABLE MINERAL ATTRIBUTABLE MINERAL RESERVES • Attributable Group Mineral Reserve estimate RESERVES OF 21.2 MOZ PT (Variance Moz Pt) 25 reduced by 1.2 million platinum ounces 2.5 20 0.9 5%4% 8% − Impala strategic review ‐ 4.4 Moz pt Moz Pt ‐ 4.4 ‐ 0.1 ‐ 0.1 15 − Two Rivers (Kalkfontein RE portion) +0.9 Moz pt 22.4 21.2 47% 10 − Zimplats steeps +2.5 Moz pt 36% 5 0 2017 Impala Mimosa Marula Rivers Zimplats 2018 Two Zimplats Impala Two Rivers Marula Mimosa For details please see Implats Mineral Resource and Mineral Reserve statement 2018 ANNUAL RESULTS FY2018 10
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