CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 - PowerPoint PPT Presentation

CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015

Disclaimer The information presented in this presentation is of a general nature and the forward-looking information, opinions and beliefs of the Company and its affiliates are based on various market related assumptions. 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 investors should carefully evaluate the accuracy, completeness and relevance of the information and should preferably obtain professional relevant advice. The Company, its directors, officers, managers or employees, advisers or representatives accept no responsibility or liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation also includes market and industry data obtained by the Company from industry publications and surveys and the Company does not have access to the facts and assumptions underlying the numerical data, market data and other information extracted from publicly available sources. As a result, the Company is unable to verify such numerical data, market data and other information. The Company assumes no responsibility for the correctness of any market or industry data included in the materials and presentation. ROYAL BAFOKENG PLATINUM CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 2

CONTENTS 1. OVERVIEW AND STRATEGY 2. MARKET REVIEW 3. OPERATIONAL REVIEW AND PROJECT UPDATE 4. FINANCIAL REVIEW 5. CONCLUSION AND OUTLOOK

SECTION 1 OVERVIEW AND STRATEGY >

Proactively navigating through the challenging environment Overview of the 1 st half of 2015: Safety of our people remains a priority ˃ ˃ Healthy labour relations − mining contracting companies at BRPM align with the five-year wage agreement between RBPlat and NUM ˃ Production impacted by intermittent stoppages Unit cost containment a challenge ˃ ˃ Earnings severely impacted by low PGM prices Tax settlement removes uncertainty ˃ ˃ Scale down of Styldrift I in response to weak pricing environment ROYAL BAFOKENG PLATINUM CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 5

Strategy remains relevant in the current environment • Efficiencies • Safety stability • Cost discipline • Operational stability Towards operational excellence • Labour relations Scale down of • UG2 mining platform Styldrift I • BRPM Merensky Phase III Build flexibility demonstrates • IMS panel ratio • Processing flexibility flexibility and focus on protecting the • Styldrift I project − Commissioning of Main shaft balance sheet Grow organically − Scale down of project in response to weak market conditions • Styldrift II Pursue value-enhancing opportunities • Value-adding royalty agreements ROYAL BAFOKENG PLATINUM CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 6

SECTION 2 MARKET REVIEW >

South African platinum production recovering post 2014 strike Global primary Pt production forecasts (Moz) Platinum 7.0 Peak = 6.9 > Total platinum supply is forecast to recover by 14% to 7.9Moz in 2015 6.5 South African mine output is set to improve by over 900koz to > 2015 = 5.8? 4.0Moz in 2015, but would still be 300koz below the pre-strike levels of 2013 6.0 > Global platinum production could therefore increase by 18% year-on-year to 5.8Moz in 2015 > Platinum recycling is projected to rise by 4% to 2.1Moz in 2015, 5.5 mainly owing to a higher mix of platinum in scrapped catalysts Palladium 5.0 > Global palladium production is set to increase by 5% to 6.7Moz, 2014 = 4.9 helped by the recovering mine output in South Africa 4.5 > Total palladium supply is forecast to grow by 5% to 9.2Moz with a 6% increase in recycling 4.0 Rhodium 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F > Total rhodium supply is expected to be 19% higher at 1.0Moz, compared to 860koz last year Source: SFA (Oxford) ROYAL BAFOKENG PLATINUM CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 8

Platinum demand forecast to grow by 4% but prices to remain depressed in 2015 Platinum demand: 2014 − 2015 (koz) 8 300 High risk growth Largest growth = autos (light vehicles) 8 200 8 100 8 000 7 900 7 800 2014 − 2015 : +325 7 700 7 600 2014 Autos Autos (HDVs) Non-road Jewellery Petroleum Chemical Electrical Glass Other 2015F (LVs) Source: SFA (Oxford) > Demand growth mostly supported by the auto sector • Western Europe light vehicle sales could grow by 5% to over 14 million units − six month year-to-date sales are up 8% at 7.7 million units • Plus higher platinum loadings to meet on-road Euro VI emissions legislation Year-to-date, jewellery demand affected by the slowdown in China > > Industrial demand growth steady, led by higher petroleum and chemical usage > Platinum ETF holdings flat for first six months of 2015 Platinum market much closer to balance as South African mine supply recovers > ROYAL BAFOKENG PLATINUM CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 9

Palladium’s deficit set to narrow in 2015, although remain significant Palladium demand: 2014 − 2015 (koz) 10 100 10 000 9 900 9 800 9 700 2014 − 2015 : Largest growth = +175 9 600 autos (light vehicles) 9 500 2014 Autos Autos (HDVs) Non-road Jewellery Chemical Electrical Dental Other 2015F (LVs) Source: SFA (Oxford) > Demand growth driven almost entirely by the auto (light vehicles) sector • US light vehicle sales could reach 17 million units this year; 4% sales growth to 8.5 million units for the first six months of the year • Light vehicle sales in China may break the 25 million mark but growth slower than forecast − only 2.6% for the first six months of 2015 Palladium ETF holdings have decreased by 3% to 2.84Moz during the first six months of the year > > Palladium’s fundamental deficit looks set to narrow in 2015, but should remain substantial at close to 900koz Palladium prices impacted by cooling growth in China − China accounts for 20% of auto demand > ROYAL BAFOKENG PLATINUM CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 10

SECTION 3 OPERATIONAL REVIEW AND PROJECT UPDATE >

Zero harm remains a key focus Our strategy LTIFR > Principle of zero harm and cultural transformation 0.80 • Leadership, design, systems, behaviour 0.68 0.70 0.61 Focus on high risk areas • 0.60 0.53 0.51 • High standards − regulatory compliance 0.50 /200,000 hrs Safety 0.40 > Sadly two fatal accidents occurred during H1 − with a third fatal being recorded in July 2015 0.30 > Continued improvement in quest for zero harm 0.20 • Lowest SIFR in BRPM history 0.10 Health and wellness - Encouraged by the increased awareness of TB > > TB outreach programme in surrounding communities to be rolled out in Q3 2015 SIFR Environment Proactively managing climate change risks and opportunities > 0.45 0.42 0.40 0.35 0.26 Description Unit H1 2014 H1 2015 Var 0.29 0.30 /200,000 hrs Fatal injuries No. 0 2 − 0.25 LTIFR Rate 0.68 0.51 25% 0.20 0.14 SIFR Rate 0.34 0.14 59% 0.15 Events No. 4 9 -125% 0.10 Production shifts effected No. 16 33 -106% 0.05 Milled tonnes lost kt 35 119 -240% - 4E ounces lost koz 4.0 14.3 -258% ROYAL BAFOKENG PLATINUM CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 12

Prevailing economic conditions necessitate focus on fundamentals Challenging operating environment Focus on operational fundamentals Cash preservation strategy • Depressed PGM market • Provide a safe working environment • Defer capital • High cost inflation Mining flexibility remains key strategy • • Grade and production consistency Lower production performance • • Depletion of stockpile during H2 Cost management • IMS panel ratio Styldrift I project Safety stoppages − 4E ounces lost 1.8 1.7 Eskom load curtailments > 16 1.5 1.6 14.3 > Scale down Styldrift I project 1.6 14 construction activities > Cost drivers above inflation 1.4 12 1.2 > Targeted key infrastructure development 10 • Enrolled labour (10%) 1.0 Ratio koz 8 Concentrator 0.8 Contractor labour (14%) • 6 4.9 0.6 4.0 > Overland conveyor belt deferred 4 0.4 • Utilities (16%) 2 > 250ktpm upgrade under budget and on 0.2 0 schedule 0.0 Platinum price dips below $1 100/oz > H1 2013 H1 2014 H1 2015 H1 2013 H1 2014 H1 2015 > Defer 100ktpm module Delivered tonnes Stockpile > Safety stoppages 95 100 1 178 Styldrift II 1 159 1 200 1 128 90 > Ounce output 9% lower 1 100 80 > Exploration programme deferred 70 1 000 > Feasibility study deferred 60 51 900 50 kt kt BRPM 800 40 30 24 > Improve Merensky:UG2 ratio 700 20 600 > Focus on dilution and sweepings 10 500 0 > Cost containment focus H1 2013 H1 2014 H1 2015 H1 2014 H2 2014 H1 2015 ROYAL BAFOKENG PLATINUM CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 13