AUDITED RESULTS PRESENTATION Royal Bafokeng Platinum 25 Audited - - PDF document

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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

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

AUDITED RESULTS PRESENTATION

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

FOR THE YEAR ENDED 31 DECEMBER 2014

AUDITED ANNUAL RESULTS

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

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.

2

Disclaimer

Notes Notes

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Royal Bafokeng Platinum 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

>

SECTION 1

OVERVIEW

Notes Notes

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

strategy driving operational success over the past five years

  • Effective operational flexibility

> UG2 mining platform

established

> BRPM Merensky Phase III

replacement proj ect ahead of schedule

> IMS

panel ratio increased from 1.17 to 1.7, a 45% improvement

  • Establishing processing flexibility

> Revised processing strategy > Waterval toll arrangement

Build flexibility

  • Focus on high grade Merensky

assets for growth

> To date a total of R3.8 billion

has been spent on the S tyldrift I expansion proj ect

> S

tyldrift I strengthens Merensky bias and our position

  • n the industry cost curve

> S

tyldrift II pre-feasibility completed and approved and provides longevity and additional Merensky bias to the business

Grow organically Towards operational excellence

  • LTIFR and S

IFR have improved by 47% and 46% respectively

  • Strong stakeholder relations –

stable labour relations and

  • perating environment

> Limited industrial action > Housing and S

LP proj ects

  • 12%

improvement in tonnes milled per TEC

  • Excellent cost management –

remain well positioned in the first quartile of the industry cost curve

  • Revised processing strategy
  • R800 million saving on

Styldrift I capital

Pursue value enhancing

  • pportunities
  • S

ecured two value adding royalty agreements (2.98Moz) with Implats which has yielded R180 million in revenue to date

  • Continual assessment of value

enhancing opportunities

16% Revenue Capex 5% 38% 4E ounces HEPS 13% 9% LTFIR SIFR 63% Tonnes milled 8% 4% Cost/tonne

>

SECTION 2

MARKET REVIEW

>

Notes Notes

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Platinum-group metals markets significantly destocked in 2014

Total platinum supply fell 22% to 4.7Moz in 2014

  • Estimated losses from five months of strike action in S
  • uth Africa 1.4Moz
  • S
  • uth African mine output fell below 3Moz in 2014 from 4.4Moz in 2013
  • Global platinum production fell by 22%

to 4.7Moz in 2014 compared to 2013, while global palladium production fell by 7% to 6.2Moz and global rhodium production fell by 24% to 560koz in 2014

  • Platinum recycling increased 2.3%

to 2.0Moz in 2014, mainly owing to more platinum-rich diesel catalytic converters being scrapped in Europe

S

  • urce: S

FA (Oxford) Note: Market balance excludes producer stock sales and investment 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2000 2002 2004 2006 2008 2010 2012 2014

Moz

Pt demand Pt demand (incl. investment) Peak = 6.9 2014 = 4.7 2013 = 6.1

Primary supply Recycling Global platinum supply

  • 5
  • 4
  • 3
  • 2
  • 1

1 2 3 4 5

  • 1.5
  • 1.0
  • 0.5

0.0 0.5 1.0 1.5

Moz Moz

Balance Stocks (rhs)

Platinum: supply/demand balance

  • 40
  • 35
  • 30
  • 25
  • 20
  • 15
  • 10
  • 5

5 10

  • 2.0
  • 1.5
  • 1.0
  • 0.5

0.0 0.5

Moz Moz

Balance Stocks (rhs)

Palladium: supply/demand balance

  • 400
  • 300
  • 200
  • 100

100 200 300 400 500 600

  • 200
  • 150
  • 100
  • 50

50 100 150 200 250 300

koz koz

Balance Stocks (rhs)

Rhodium: supply/demand balance

7 ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

+420

  • 47
  • 16
  • 39
  • 36

+30 +940 8 000 9 000 10 000 11 000 2013 Automotive Jewellery Chemical Electrical Dental Other Investment 2014 2015f

koz

Changes in palladium demand by category

Investment - key driver of platinum and palladium demand in 2014

220130

Source: SFA (Oxford) +145 +115 +50

  • 20

+10

  • 75

+10

  • 760

7 000 8 000 9 000 2013 Automotive Jewellery Chemical Petroleum Electrical Glass Medical and Biomedical Investment 2014 2015f

koz

Changes in platinum demand by category

8

Notes Notes

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Robust fundamentals: Long-term automotive PGM demand continues to grow

Autocatalyst PGM demand is set to grow:

  • 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 to grow by 4.3% in 2015

  • Palladium autocatalyst demand (incl. non-road)

rose by 5.9% (420koz) to 7.6Moz in 2014 and is expected to grow by 4.4% in 2015

  • Rhodium autocatalyst demand rose by 5.5%

to 865koz in 2014 and is expected to grow by 2.8% in 2015

  • PGM automotive demand is expected to rise above

12Moz in 2015

Source: SFA (Oxford)

3 5 8 10 13 15 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Moz

Platinum Palladium Rhodium

PGM automotive demand (incl. non-road)

9

>

SECTION 3

OPERATIONAL REVIEW

Notes Notes

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Maintain flexible operating platform

  • Understand key constraints
  • Leverage high margin Merensky ounces
  • Utilise UG2 to fill excess capacity

307 320 336 100 200 300 400 2012 2013 2014

m2 m per stoping crew

29,8 31,6 33,1 10 15 20 25 30 35 2012 2013 2014

No. Tonnes milled / TEC

1.48 1.52 1.70 0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 1,8 2012 2013 2014

ratio IMS panel ratio

14.0 10.2 9.3 0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 2012 2013 2014

koz Safety stoppages – 4E ounces lost

Performance in line with strategic objectives

Focus on continuity and stability

  • Drive towards a resilient safety culture
  • More than Mining approach
  • S

takeholder engagement

> S

table labour relations

> Historic five-year wage agreement > R46.7 million local economic

development

> 422 new houses for employees > Funding approved for 3 100 more houses

and associated infrastructure

Develop high quality assets

  • Construct S

tyldrift I

  • Develop S

tyldrift II business case

  • Acquisition and consolidation

BRPM Phase III

> Four months ahead of schedule > Recover 1.2Moz (4E) between 2014 and

2024 Styldrift I project

> 230ktpm, mechanised > Main shaft commissioning Q2 2015 > Ramp up Q1 2016 > S

teady state Q1 2019 Styldrift II

> 125km of exploration > Feasibility to start Q2 2015 > Mechanised, resource 26.87Moz (4E)

11 307 320 336 100 200 300 400 2012 2013 2014

m2 m² per stoping crew

29.8 31.6 33.1 10 15 20 25 30 35 2012 2013 2014

No. Tonnes milled / TEC

1.48 1.52 1.70 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2012 2013 2014

ratio IMS panel ratio

14.0 10.2 9.3 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2012 2013 2014

koz Safety stoppages – 4E ounces lost

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Resilience – key to the safety and health of our employees

Safety

  • One million fatality-free shifts achieved in August 2014

>

S adly two fatal accidents occurred in October 2014

  • Continued our j ourney to resilience

>

13% improvement in LTIFR in 2014

>

9% increase in S IFR a disappointment in 2014

Health and wellness

  • Increased awareness of TB through various campaigns
  • 15%

increase in voluntary counselling and HIV testing

  • Key volume contractor employees now receive Platinum Health medical

benefits

Environment

  • 10%

increase in recycled water usage

>

Set to improve further with commissioning of new water treatment plant in Q1 2015

  • Obtained S
  • uth African National Environmental Management Act (NEMA)

approval for the S tyldrift overland conveyor

0.42 0.26 0.29

  • 0.05

0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 /200 000 hrs

SIFR

0.68 0.61 0.53

  • 0.10

0.20 0.30 0.40 0.50 0.60 0.70 0.80 /200 000 hrs

LTIFR

12

Notes Notes

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Focus on developing sound operating platform yielding results

Robust underground mining platform

  • Development

8%

  • IMS

12%

  • Merensky output consistent
  • UG2 driver of additional ounces

Tonnes delivered 7% Ounces delivered 5%

1 959 1 895 1 908 425 415 563 500 1 000 1 500 2 000 2 500

kt Merensky UG2 Tonnes delivered Description Unit 2012 2013 2014 Var Total development km 39.40 36.50 39.40 8% Development replacement ratio m2/ m 27.10 32.40 28.70

  • 11%

IMS ore reserve face length km 5.71 6.00 6.59 10% IMS panel ratio ratio 1.48 1.52 1.70 12% Stoping square metres - total 000 m² 479 505 527 4% MER 000 m² 415 434 427

  • 2%

UG2 000 m² 64 71 100 41% Tonnes delivered - total kt 2 384 2 310 2 471 7% MER kt 1 959 1 895 1 908 1% UG2 kt 425 415 563 36% UG2 % % 18 18 23 27% Built-up head grade (4E) - total g/ t 4.07 4.38 4.29

  • 2%

MER g/ t 4.22 4.51 4.45

  • 1%

UG2 g/ t 3.36 3.76 3.74

  • 1%

479 505 527 200 250 300 350 400 450 500 550 000 m²

Stoping square metres

13 ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Stable concentrator performance throughout 2014

Increased concentrator throughput

  • Tonnes milled

8%

  • Merensky tonnes milled

1%

  • UG2 tonnes milled

36%

  • UG2 toll treatment

26%

Lower grade and consistent recovery

  • Merensky grade

1%

  • UG2 grade

1%

  • Recovery related to UG2 proportion
  • Metals in concentrate

5%

280 15 3 0.2 4 294 250 260 270 280 290 300 2013 4E oz recovered UG2 volumes Merensky volumes UG2 grade Merensky grade 2014 4E oz recovered

koz Recovered ounces (4E)

14

Description Unit 2012 2013 2014 Var Tonnes milled - total kt 2 375 2 301 2 479 8% MER kt 1 958 1 887 1 914 1% UG2 kt 417 414 565 36% UG2% milled % 18 18 23 28% Tonnes milled - BRPM concentrator kt 2 215 2 010 2 112 5% MER kt 1 958 1 887 1 914 1% UG2 kt 257 123 198 61% UG2% milled % 12 6 9 53% Tonnes milled - UG2 toll kt 160 291 367 26% Built-up head grade (4E) - total g/ t 4.07 4.38 4.29

  • 2%

MER g/ t 4.22 4.51 4.45

  • 1%

UG2 g/ t 3.35 3.76 3.74

  • 1%

Recovery - 4E total concentrating % 86.7 86.4 86.1 0% Recovery - 4E BRPM concentrator % 87.2 87.1 86.8 0% 4E metals in concentrate koz 269 280 294 5% Pt metal in concentrate koz 174 181 190 5%

2 375 2 301 2 479 500 1 000 1 500 2 000 2 500 3 000

kt Tonnes milled

Notes Notes

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Maintained increase in unit costs below mining inflation

BRPM cash costs

2 093 151 71 26 20 2 361 1 750 1 850 1 950 2 050 2 150 2 250 2 350 2 450 2013 BRPM cash costs Additional volumes Shaft head inflation Central services inflation Concentrator inflation 2014 BRPM cash costs R million 7% 6%

  • Cash operating costs concomitant to increased volumes (

13% Y

  • Y)

>

Milled tonnes increased to 2.48Mt ( 7% )

>

Additional volumes impact of R151 million (7% )

>

Inflation related increases of R117 million (6% )

  • Unit cash costs increases below mining inflation

BRPM – R/tonne milled (FY2013 versus FY2014)

15

Description Unit 2012 2013 2014 Var Cash operating costs R'm 2 051 2 093 2 361

  • 13%

Cash operating unit cost R/ t 864 920 957

  • 4%

Cash operating unit cost/ 4E ounce R/ oz 7 616 7 519 8 040

  • 7%

Cash operating unit cost/ Pt ounce R/ oz 11 775 11 592 12 463

  • 8%

920 49 25 15 7 4 3 17 49 957 850 870 890 910 930 950 970 990 1 010 1 030 R/t Milled

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Capex programme operating in line with business requirements

Stay-in-business capital (SIB) SIB expenditure 7%

  • f opex:
  • New water treatment plant
  • Upgrade of locomotive controllers
  • Consistent with range of 6 to 8%
  • f operating

costs

Replacement capital Phase III: R204 million spent in 2014

  • Below budget and ahead of schedule
  • 8 301m (73%

) of development complete and 1 481m ahead of plan

  • Expected saving of R114 million at end of the

proj ect

Expansion capital Styldrift I and II R1 365 million in 2014

  • Expenditure commensurate with S

tyldrift I construction schedule

  • S

tyldrift II: Pre-feasibility complete

  • BRPM 250ktpm concentrator upgrade in

progress

  • 14 S

urface holes drilled on the S tyldrift 90JQ

Capital expenditure

12% 7% 7% 0% 2% 4% 6% 8% 10% 12% 14% %

SIB (%

  • f opex)

16

Description Unit 2012 2013 2014 Var Stay-in-business capital R'm 238 138 154

  • 12%

SIB %

  • f operating cost

% 12% 7% 7% 0% Replacement capital R'm 308 184 204

  • 11%

Phase II R'm 116 9 100% Phase III R'm 192 175 204

  • 17%

Expansion capital R'm 646 737 1 365

  • 85%

Styldrift I R'm 628 691 1 307

  • 89%

Styldrift exploration drilling R'm 9 27 31

  • 13%

Styldrift II R'm 9 19 27

  • 43%

Total capital expenditure R'm 1 192 1 059 1 724

  • 63%

655 737 1 365 308 184 204 238 138 154 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 R million

Notes Notes

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Production and costs

  • Throughput

: 2.4 to 2.5Mt

  • Grade

: 4.15 to 4.20g/ t (4E)

  • UG2 contribution

: 19% for 2015, reducing to around 8% in 2019 inline with S tyldrift ramp-up

  • Ounces recovered

: 275-290koz (4E)/ 180-190koz (Pt)

  • Operating cost

: Unit cost below mining inflation

Capital expenditure

  • S

IB : 6 to 8%

  • f operating costs
  • Replacement

: Around R200 million per annum till 2017

  • Expansion

: Increases to R2.4 billion in 2015 and tapers down to proj ect completion in 2019

2015 operational guidance

73% 65% 54% 41% 24% 8% 17% 35% 50% 68% 19% 17% 12% 9% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2015 2016 2017 2018 2019 % BRPM Merensky Styldrift Merensky BRPM UG2

Merensky:UG2 ratio

17

Capex forecast (incl. escalation and contingency

2.9 2.8 1.8 1.3 0.7 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2015 2016 2017 2018 2019 R billion Expansion Replacement SIB

>

PROJECT UPDATE

S TYLDRIFT I STYLDRIFT II

Notes Notes

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

2 000 4 000 6 000 8 000 10 000 12 000 500 1 000 1 500 2 000 2 500 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Capex forecast Cumulative capex 11 014 R million R million

Styldrift I progress and capital expenditure

Progress against project schedule

  • No slippage on critical path schedule

> Prioritised Main shaft commissioning to alleviate constraint > Deferred non critical underground infrastructure

  • Delivery of trackless fleet on track in accordance with the revised schedule
  • S

ervices shaft reached final depth of 723m

  • Main shaft reached final depth of 758m

Styldrift I capital expenditure profile

Expenditure Unit Plan Actual Var

FY2014 R'm 1 908 1 307 601 Proj ect to date (PTD) R'm 4 567 3 818 749 Commitments PTD R'm – 4 552 – Estimate at completion (EAC) R'm 11 014 11 014 –

19 ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Project schedule

20

2015 2019 Q3 Q1 2016 Q3 Q1 2017 Q3 Q1 2018 Q3 Q1 2019 Main shaft commissioned Services shaft commissioned Start of stoping ramp-up Steady state BRPM concentrating capacity 350ktpm BRPM concentrating capacity 250ktpm Equipping of Main shaft Ventilation shaft 1 Services shaft equipping Access development to start of ramp-up Shaft infrastructure development, construction and equipping Stoping ramp-up 250ktpm concentrator upgrade Overland conveyor belt to concentrator complex 100ktpm concentrator upgrade Q1 Q2 Q4 Q2 Q4 Q2 Q4 Q1 Q4

Mining and infrastructure BRPM concentrator upgrade

  • Main shaft hoisting system commissioning Q2 2015
  • Start of ramp up Q1 2016
  • Steady state achieved in Q1 2019
  • Concentrator upgrade schedule aligned to Styldrift ramp-up
  • 250ktpm concentrator commissioning Q3 2015
  • 350ktpm concentrator capacity achieved during Q2 2017

Ventilation shaft 2 Ventilation shaft 3 V

Notes Notes

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Key project focus for 2015

Main shaft loading box construction

View of shaft loading box construction activities taking place between 708L and shaft bottom at Styldrift I M ain shaft

21

M

Main shaft Services shaft Vent shaft No.1 Vent shaft No.3 Vent shaft No.2 Ore silo’s Settlers

Underground Surface

  • Main and Services shaft equipping and commissioning
  • Ensure smooth transition between shaft sinking and mining contracts
  • Complete Vent shaft No. 1
  • Complete access development to start of ramp up position
  • Early engagement of Aveng Mining
  • Commission BRPM 250ktpm concentrator upgrade
  • Complete 100ktpm concentrator feasibility study
  • Construct overland conveyor linking BRPM and Styldrift I
  • Construction of Eskom substation

Completed to date 2015 2016 2017 2018

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Pre-feasibility study

S

tudy resulted in a positive business case

Mechanised mine design Early access utilising S

tyldrift I infrastructure

Feasibility starts in Q2 2015 > Power and water supply applications > EIA approval process > Opportunity for treatment plant synergies with neighbours

Exploration drilling

14 surface exploration holes amounting to 10 500m of drilling

completed during 2014

Total exploration drilling at 98 holes (125 000m) > 350 Merensky intersections > 307 UG2 intersections > High correlation with previous geological modelling Update of 3D S

eismic model in progress

Styldrift II pre-feasibility provides positive business case

22

Notes Notes

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37

Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

>

SECTION 5

FINANCIAL REVIEW

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Operational stability and impact of cost saving initiatives underpin strong financial performance

  • 5 000

10 000 15 000 20 000 25 000

  • 500

1 000 1 500 2 000 2 500 3 000 3 500 4 000 2010 2011 2012 2013 2014 Average basket price (R/Pt oz) Revenue – R million Revenue Basket price per Pt/oz

Revenue

50 100 150 200 250 300 2010 2011 2012 2013 2014 Cents per share

Headline earnings per share

24

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 200 400 600 800 1 000 1 200 1 400 2010 2011 2012 2013 2014 EBITDA margin % R million EBITDA EBITDA margin %

EBITDA Cash generated by operations versus capital expenditure

Capital expenditure Cash generated by

  • perations

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 %

  • f capital expenditure

R million Cash from operations as a percentage of capex

Notes Notes

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Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Description Unit Year ended 31 December 2014 Year ended 31 December 2013 % Change

Average basket price* R/ Pt oz 19 842 17 927 10.7 Average Rand:US $ received R/ US $ 10.85 9.65 12.4 Revenue R'm 3 767.5 3 251.1 15.9 Cost of sales R'm 2 902.2 2 650.1 9.5 Gross profit R'm 865.3 601.0 44.0 Operating profit R'm 754.4 573.5 31.5 EBITDA R'm 1 189.4 1 008.0 18.0

31.5% increase in operating profit

* Net proceeds from total concentrate sales (including revaluation of pipeline) divided by total platinum ounces produced

25 ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Description Unit Year ended 31 December 2014 Year ended 31 December 2013 % Change

Headline earnings R'm 440.9 283.9 55.3 Weighted average number of shares outstanding #'m 184.7 164.3 12.4 HEPS R/ share 2.39 1.73 38.2

  • R/ share

0.49 0.55

  • R/ share

(0.14) (0.16) Normalised HEPS R/ share 2.74 2.12 29.2 Dividend per share R/ share

  • –

38% increase in headline earnings

26

Notes Notes

slide-15
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39

Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Description Unit Year ended 31 December 2014 Year ended 31 December 2013 % Change Cash generated by operating activities R'm 1 426.5 907.8 57.1 Cash, net of debt (incl. pref share investment) R'm 1 864.2 772.9 141.2 Capit al expendit ure* R'm 1 675.6 1 036.6 61.6 Gross profit margin % 23.0 18.5 24.3 EBITDA margin % 31.6 31.0 1.9 Net Asset Value (NAV) R/ share 72.8 72.2 0.8

57% increase in cash generated by operations

*BRPM JV capex: R1 723.5 million Less elimination of inter-group charges and S tyldrift S BP expense: (R48.7) million Other Group capex R0.8 million RBPlat Group capex: R1 675.6 million

27 ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

* Grossed up to 100% from amount received in terms of disposal of concentrate agreement, excludes pipeline revaluation. Description Year ended 31 December 2014 Average price achieved* Year ended 31 December 2013 Average price achieved*

Volume US$

Volume US$

Platinum (oz)

189 710 1 346/oz 181 351 1 418/oz

Palladium (oz)

78 555 832/oz 74 009 719/oz

Gold (oz)

8 841 1 259/oz 8 771 1 309/oz

Rhodium (oz)

16 974 1 207/oz 15 431 977/oz

Iridium (oz)

5 605 556/oz 5 062 642/oz

Ruthenium (oz)

28 882 61/oz 26 232 64/oz

Nickel (tonne)

1 854 7.65/lb 1 822 6.47/lb

Copper (tonne)

1 180 3.11/lb 1 171 3.21/lb

Strong platinum and base metals bias

28

68.2% 14.2% 3.0% 4.0% 0.8% 0.4% 6.9% 2.2%0.3% 2013 Pt Pd Au Rh Ir Ru Ni Cu Co 64.0% 16.4% 2.8% 5.1% 0.8% 0.4% 8.1% 2.0%0.4% 2014 Pt Pd Au Rh Ir Ru Ni Cu Co

28

Notes Notes

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40

Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Description 2014 R million 2014 %

  • f total

% change 2013 R million 2013 %

  • f total

Labour 883.8 35.8% 14.3% 773.3 34.9% Ut ilities 208.5 8.5% 16.2% 179.4 8.1% Contractor costs 541.9 22.0% 10.8% 489.0 22.1% Materials and other mining costs 729.7 29.6% 12.1% 651.0 29.3% Total cash costs excl. once–

  • ff costs

2 363.9 95.8% 12.9% 2 092.7 94.4% Movements in inventories (10.4) (0.4% ) 60.6% (6.6) (0.3% ) Elimination of intergroup charge (37.2) (1.5% ) 0.1% (35.2) (1.6% ) S

  • cial and labour plan expense

110.3 4.5% 21.2% 91.0 4.1% Retrenchment costs

  • 21.2

1.0% Other costs 40.5 1.6% (24.3% ) 53.5 2.4% Cost of sales (excl. depreciation and amortisation) 2 467.1 100.0% 11.3% 2 216.6 100.0%

11% increase in cost of sales (excluding depreciation and amortisation)

29 ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

283.9 173.0 3.8 95.7 32.4 52.2 147.7 386.0 85.6 43.1 52.0 1.6 202.2 81.0 5.7 440.9 100 200 300 400 500 600 700 800 900 R million Controllable, +144.6 Uncontrollable, +12.4

Volumes, exchange rate and cost control boost earnings

30

Notes Notes

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41

Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

195.0 6.4 411.4 1 426.5 154.3 204.1 1 280.6 36.5 138.2 6.6 1 478.5 1 452.9 500 1 000 1 500 2 000 2 500 Cash and cash equivalents including near cash investments 1 January 2014 Cash generated from operations SIB capex Replacement capex Expansion capex Concentrator upgrade Employee housing assets Rights followed

  • n treasury

shares Increase in housing facility Issue of ordinary shares (net of costs) Cash and cash equivalents including near cash investments 31 December 2014 R million 577.9 RBPlat BRPM JV BRPM JV RBPlat 772.9 1 864.2

Strong cash flow generation

31 ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Maintained strong financial position through 2014

  • Basket price increased by 10.7%

due mainly to ZAR weakening against US D

  • Effective cost management resulting in marginal increase in cash operating costs
  • S

trong cash and funding position

>

S uccessfully raised R1.5 billion from book build and rights offer in H1 2014

>

R1.86 billion cash on hand for the Group

  • RBPlat R1 452.8 million
  • BRPM JV R411.4 million of which R275.6 million (67%

) is attributable to RBPlat >

R258 million working capital facilities

  • R153.8 million was utilised for Eskom, rehab and rental guarantees
  • R104.2 million remains unutilised

>

R200 million employee housing facility

  • R3.5 million utilised for employee housing guarantees
  • R6.6 million housing facility utilised
  • R189.9 million untilised
  • Therefore, RBPlat has R2.02 billion of funding available

32 32

Notes Notes

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42

Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

>

SECTION 6

CONCLUS ION

ROYAL BAFOKENG PLATINUM AUDITED ANNUAL RES ULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Focus remains on operational excellence

  • S

afety, healt h and wellness of every employee remains our key focus

  • Global PGM demand is set to grow in 2015

>

However, prices to remain flat

  • Production for 2015 expected to be between 2.4 and 2.5Mt

>

4E ounces: 275-290koz and platinum ounces: 180-190koz

  • Operating cost increases estimated to remain below mining inflation
  • Capital expenditure for 2015 forecast at around R2.9 billion (wit h expansion capex at R2.4 billion including contingency and

escalations)

  • Focus on commissioning the Main shaft at S

tyldrift by second quarter of 2015

  • Initiate Phase II of our employee housing proj ect for 3 100 houses and associated infrast ructure

34

Notes Notes

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43

Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

THANK YOU

Notes

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44

Royal Bafokeng Platinum Audited annual results for the year ended 31 December 2014

COMPANY INFORMATION

Company registered office Royal Bafokeng Platinum Limited Registration number: 2008/015696/06 Share code: RBP ISIN: ZAE000149936 The Pivot

  • No. 1 Monte Casino Boulevard

Block C 4th Floor Fourways Johannesburg 2021 PO Box 2283 Fourways 2055 South Africa Executive directors SD Phiri (Chief Executive Officer) MJL Prinsloo (Chief Financial Officer) Independent non-executive directors Adv KD Moroka SC (Chairman) Prof L de Beer RG Mills MJ Moffett T Mokgosi-Mwantembe MH Rogers L Stephens Non-executive directors LM Ndala DR Wilson Company Secretary Lester Jooste (ACIS) Email: lester@bafokengplatinum.co.za Telephone: +27 10 590 4519 Telefax: +27 086 572 8047 Public Officer Reginald Haman Email: reginald@bafokengplatinum.co.za Telephone: +27 10 590 4533 Telefax: +27 086 588 4568 Investor relations Lindiwe Montshiwagae Email: lindiwe@bafokengplatinum.co.za Telephone: +27 10 590 4510 Telefax: +27 086 219 5131 Independent external auditors PricewaterhouseCoopers Inc 2 Eglin Road Sunninghill Johannesburg 2157 South Africa Transfer Secretaries Computershare Investor Services Proprietary Limited 70 Marshall Street Johannesburg PO Box 61051 Marshalltown 2107 South Africa Telephone: +27 11 370 5000 Telefax: +27 11 688 5200 Sponsor Merrill Lynch South Africa Proprietary Limited 138 West street Sandton Johannesburg 2196 South Africa

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The Pivot, No 1 Monte Casino Boulevard Block C, Floor 4, Fourways Johannesburg, 2021 PO Box 2283 Fourways, 2055 South Africa Telephone: +27 (0)10 590 4510 Telefax: +27 086 572 8047

www.bafokengplatinum.co.za