AUDITED RESULTS PRESENTATION Royal Bafokeng Platinum 25 Audited - PDF document

AUDITED RESULTS PRESENTATION Royal Bafokeng Platinum 25 Audited annual results for the year ended 31 December 2014

AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014 Notes Disclaimer The informat ion presented in this presentation is of a general nature and the forward-looking informat ion, opinions and beliefs of t he Company and it s affiliates are based on various market relat ed assumpt ions. Changes in market circumstances after the production of the information may impact on the accuracy thereof. No assurance can therefore be given as to the accuracy of any information after publication. Before relying on the information, investors or potential invest ors should carefully evaluate the accuracy, completeness and relevance of the information and should preferably obtain professional relevant advice. The Company, it s directors, officers, managers or employees, advisers or representat ives accept no responsibility or liability whatsoever for any loss howsoever arising from any use of this present ation or its cont ents or otherwise arising in connection wit h this presentation. This presentat ion also includes market share and industry data obtained by the Company from industry publications and surveys and the Company does not have access t o the fact s and assumptions underlying the numerical dat a, market data and other information extracted from publicly available sources. As a result, the Company is unable t o verify such numerical data, market data and ot her information. The Company assumes no responsibility for the correctness of any market share or industry data included in the materials and presentation. ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014 2 Notes Royal Bafokeng Platinum 26 Audited annual results for the year ended 31 December 2014

CONTENTS 1. OVERVIEW 2. MARKET REVIEW 3. OPERATIONAL REVIEW 4. PROJECT UPDATE 5. FINANCIAL REVIEW 6. CONCLUS ION Notes SECTION 1 OVERVIEW > Notes Royal Bafokeng Platinum 27 Audited annual results for the year ended 31 December 2014

����������������� strategy driving operational success over the past five years Towards operational Pursue value enhancing Build flexibility Grow organically excellence opportunities � LTIFR and S IFR have improved � � Focus on high grade Merensky � Effective operational flexibility S ecured two value adding royalty by 47% and 46% respectively assets for growth agreements (2.98Moz) with > UG2 mining platform � Implats which has yielded Strong stakeholder relations – > To date a total of R3.8 billion established R180 million in revenue to date stable labour relations and has been spent on the S tyldrift > BRPM Merensky Phase III operating environment I expansion proj ect � Continual assessment of value replacement proj ect ahead of > Limited industrial action > S tyldrift I strengthens enhancing opportunities schedule Merensky bias and our position > Housing and S LP proj ects > IMS panel ratio increased from on the industry cost curve 1.17 to 1.7, a 45% � 12% improvement in tonnes > S tyldrift II pre-feasibility improvement milled per TEC completed and approved and � Establishing processing flexibility � Excellent cost management – provides longevity and remain well positioned in the > Revised processing strategy additional Merensky bias to first quartile of the industry the business > Waterval toll arrangement cost curve � Revised processing strategy � R800 million saving on Styldrift I capital Capex Revenue LTFIR SIFR 4E ounces Cost/tonne HEPS Tonnes milled 16% 9% 63% 4% 38% 13% 8% 5% ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014 Notes SECTION 2 MARKET REVIEW > > Notes Royal Bafokeng Platinum 28 Audited annual results for the year ended 31 December 2014

Platinum-group metals markets significantly destocked in 2014 Global platinum supply Total platinum supply fell 22% to 4.7Moz in 2014 9.0 � Estimated losses from five months of strike action in S outh Africa 1.4Moz 8.0 � 7.0 Recycling S outh African mine output fell below 3Moz in 2014 from 4.4Moz in 2013 2013 = 6.1 Peak = 6.9 6.0 � Global platinum production fell by 22% to 4.7Moz in 2014 compared to 2013, while global 5.0 Moz palladium production fell by 7% to 6.2Moz and global rhodium production fell by 24% to 4.0 2014 = 4.7 560koz in 2014 3.0 Primary supply � Platinum recycling increased 2.3% to 2.0Moz in 2014, mainly owing to more platinum-rich 2.0 diesel catalytic converters being scrapped in Europe 1.0 0.0 2000 2002 2004 2006 2008 2010 2012 2014 Pt demand Pt demand (incl. investment) Palladium: supply/demand balance Rhodium: supply/demand balance Platinum: supply/demand balance 300 600 1.5 5 0.5 10 250 500 4 5 1.0 200 400 3 0.0 0 150 300 2 -5 0.5 100 200 1 -0.5 -10 koz koz Moz Moz Moz Moz 50 100 0.0 0 -15 -1.0 -20 0 0 -1 -0.5 Balance -25 -50 -100 -2 Balance Balance Stocks (rhs) Stocks (rhs) -1.5 -30 -100 -200 -3 Stocks (rhs) -1.0 -35 -150 -300 -4 -2.0 -40 -200 -400 -1.5 -5 S ource: S FA (Oxford) ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014 7 Note: Market balance excludes producer stock sales and investment Notes Investment - key driver of platinum and palladium demand in 2014 Changes in platinum demand by category 9 000 +50 +10 +115 +10 +145 -20 -75 koz 8 000 -760 7 000 2013 Automotive Jewellery Chemical Petroleum Electrical Glass Medical and Investment 2014 2015f Biomedical Changes in palladium demand by category +940 11 000 220130 +420 +30 -47 -16 10 000 -39 -36 koz 9 000 8 000 2013 Automotive Jewellery Chemical Electrical Dental Other Investment 2014 2015f Source: SFA (Oxford) ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014 8 Notes Royal Bafokeng Platinum 29 Audited annual results for the year ended 31 December 2014

Robust fundamentals: Long-term automotive PGM demand continues to grow PGM automotive demand (incl. non-road) 15 Autocatalyst PGM demand is set to grow: 13 � Platinum autocatalyst demand (incl. non-road) rose by 4.5% (145koz) to 3.3Moz in 2014, from 3.1Moz in 2013. Autocatalyst demand is expected 10 to grow by 4.3% in 2015 � Palladium autocatalyst demand (incl. non-road) Moz 8 rose by 5.9% (420koz) to 7.6Moz in 2014 and is expected to grow by 4.4% in 2015 � 5 Rhodium autocatalyst demand rose by 5.5% to 865koz in 2014 and is expected to grow by 2.8% in 2015 3 � PGM automotive demand is expected to rise above 12Moz in 2015 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Platinum Palladium Rhodium Source: SFA (Oxford) ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014 9 Notes SECTION 3 OPERATIONAL REVIEW > Notes Royal Bafokeng Platinum 30 Audited annual results for the year ended 31 December 2014