Condensed Consolidated Interim Results For the six months ended 30 - - PowerPoint PPT Presentation

Condensed Consolidated Interim Results

For the six months ended 30 June 2018

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Disclaimer

2

The information presented in t his presentation is of a general nature and the forward-looking information, opinions and beliefs of the Company and it s 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 t o the accuracy of any information after publication. Before relying on the informat ion, investors or potential investors should carefully evaluate the accuracy, completeness and relevance of the information and should preferably obtain professional relevant advice. The Company, it s direct ors, 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 presentat ion also includes market share and industry data obtained by t he Company from industry publications and surveys and the Company does not have access t o the facts and assumptions underlying the numerical data, market data and

• ther information extracted from publicly available sources. As a result, the Company is unable t o verify such numerical data,

market data and other information. The Company assumes no responsibility for the correctness of any market share or industry data included in the materials and presentation.

CONTENTS

Overview Market Review Operational Review Financial Review Outlook

OVERVIEW

Condensed Consolidated Interim Results for the six months ended 30 June 2018

5

Solid performance from Styldrift; continued cost savings at BRPM

SAFETY

> 3.1% increase in lost time inj ury frequency rate (LTIFR) > 54.6% increase in serious inj ury frequency rate (S IFR) > Regrettably, one fatality post the reporting period

OPERA TIONAL

> 69.2% increase in tonnes milled from S tyldrift to 406kt (2017: 240kt) > 4.2% improvement in 4E built -up head grade to 3.96g/ t (2017: 3.80g/ t) > 6.6% increase in platinum ounces to 106.5koz (2017: 99.9koz) > 6.1% reduction in cash operating costs to R1 342 million (2017: R1 429 million) > 3.5% increase in unit cost per tonne milled to R1 195 (2017: R1 155) > 1.5% increase in unit cost per platinum ounce to R16 159 (2017: R15 913)

FINANCIAL

> Improved EBITDA margin of 13.4% (2017: 6.3% ) > 154.4% increase in S tyldrift on-reef development revenue to R476.5 million (2017: R187.3 million) > Net cash position of R227.8 million (2017: R1.7 billion)

PGM MARKET

> Autocatalyst demand for platinum remains under pressure > Palladium market continues to be in deficit

Condensed Consolidated Interim Results for the six months ended 30 June 2018

On track to meeting our strategic objectives

6

> On t rack wit h S t yldrift ramp-up t o 150kt pm by Q4 2018 > Impala royalt ies cont inue t o generat e income for RBPlat > S uccessful financial closure of Maseve acquisit ion > Acquisit ion of Amplat s 33% int erest in t he BRPM JV > S ust ained labour st abilit y > S t able labour product ivit y > Reduct ion in cash operat ing cost s t hrough rest ruct uring > Commit t ed t o improving our safet y performance > Creat ing flexibilit y in our processing t hrough t he Maseve acquisit ion

MARKET REVIEW

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Platinum supply forecast to be steady in 2018 as the increase in recycling supply offsets the decrease in SA mine output

8

Global platinum supply forecast Global platinum demand forecast Supply

> Total platinum supply (including recycling) is forecast to decrease by 0.8% (-63koz) to 8.0Moz > S

• uth African mine output is estimated to decrease by

0.6% (-27koz) to 4.4Moz > S upply of platinum from recycling is forecast to increase by 2.2% (43koz) to 2.0Moz

Demand

> Autocatalyst demand is expected to soften by 3.5% (-120koz)

• There is a t hreat of short -t erm disrupt ion from t he int roduct ion of real

driving emissions (RDE) t est ing in S ept ember 2018

> Jewellery demand is predicted to contract by 1.2% (-30koz)

• China is forecast t o decline by 6%

in 2018

• India is proj ect ed t o grow st rongly in 2018, but from a low base

Source: SFA (Oxford) Note: Excludes investment demand

2.0 2.0 5.3 3.1 4.4 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0 Global primary supply Recycling SA supply Peak = 6.9 6.0 2014 = 4.9 Moz 7 455 7 415 7 455 7 415 110 (30) (120) 130 45 45 (120) (140) 7 000 7 100 7 200 7 300 7 400 7 500 7 600 7 700 7 800 koz

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Total palladium supply to remain flat as output from recycling increases slightly

9

Global palladium supply forecast Global palladium demand forecast Supply

> Total palladium supply is forecast to be flat at 9.5Moz > Global palladium production from mines is forecast to decline by 1.4% to 7.0Moz, down by approximately 100koz from a peak of 7.1Moz in 2017

Demand

> Palladium is increasingly exposed to the auto sector as demand erodes in electronic and dental applications > Chinese vehicle sales expected to grow by 3% , slowing from 5.6% growth seen in the first half of 2018. Gasoline and gasoline hybrids are dominant, battery electric vehicles show high growth but small volumes (source: CAAM) > US light vehicle sales are up 2.0% to 8.6 million units in the first half of 2018 but annual sales could decline if trade tariffs are implemented (source: Automotive News Data Center)

Source: SFA (Oxford) Note: Excludes investment demand

10 325 10 295 10 325 10 295 45 (1) (75) 65 (15) (20) (25) (35) 9 400 9 600 9 800 10 000 10 200 10 400 10 600 2,1 2.5 2,6 2.5 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0 Global primary supply Recycling SA supply Peak =7.1 7.0 2014 = 6.4 Moz koz

OPERATIONAL REVIEW

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Business strategy continues to drive operational performance

Community and workforce stability Operating costs continue to remain flat Maseve acquisition unlocks organic growth path to 230ktpm Styldrift 150ktpm ramp-up

• n target

for Q4 2018

Focus on improving injury frequency rates

11

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Description Unit H1 2016 H1 2017 H1 2018 % Var Fatal inj uries No. 1

• 0.0

TIFR* Rate 5.95 11.19 9.92 11.3 LTIFR* Rate 1.61 2.60 2.68 (3.1) S IFR* Rate 0.87 1.30 2.01 (54.6) S afety stoppages No. 6 2 3 (50.0) Production shifts affected No. 16 9 11 (22.2) Milled tonnes lost kt 32 5 7 (40.0) 4E Ounces lost koz 3.75 0.53 0.80 (50.9)

Reversing safety trends key to achieving a resilient safety culture

12

> No fatalities, in line with our goal of zero harm

• 11.3%

improvement in TIFR

• 3.1%

det erioration in LTIFR

• 54.6%

det erioration in S IFR

* Rebased t o inj uries per 1 000 000 hours

5,95 11,19 9,92 0,00 2,00 4,00 6,00 8,00 10,00 12,00 H1 2016 H1 2017 H1 2018 /1000 000 hrs

Total injury frequency rate

1,61 2,60 2,68

• 0,50

1,00 1,50 2,00 2,50 3,00 H1 2016 H1 2017 H1 2018 /1000 000 hrs

Lost time injury frequency rate

0,87 1,30 2,01 0,00 0,50 1,00 1,50 2,00 2,50 H1 2016 H1 2017 H1 2018 /1000 000 hrs

Serious injury frequency rate

Condensed Consolidated Interim Results for the six months ended 30 June 2018

49 47 50 44

10 20 30 40 50 60 H1 2016 H1 2017 2018 H1 2018 kWh/tonne milled

Leading health and environmental programmes

13

Health

> HIV self-test campaign > Extensive TB treatment program which includes our doorstep communities > Our efforts to improve the health of our employees: HIV

• 710 employees on ant iretroviral t reat ment
• HIV prevalence rat e st able at 23.1%

TB

• BRPM JV TB incidence rat e of 591/ 100 000
• Nat ional average of 781/ 100 000

24,5% 23,1% 23,1%

0% 5% 10% 15% 20% 25% 30% 2016 2017 H1 2018 HIV prevalence rate

HIV prevalence rate

24 775 23 004 26 791

• 5 000

10 000 15 000 20 000 25 000 30 000 H1 2016 H1 2017 H1 2018 TB screenings

Administered TB screenings

Environment

> Pursuing long-term environmental stability > Carbon disclosure proj ect - CDP

• Maint ained A list sust ainable wat er management score for t wo

consecut ive years

• B band carbon disclosure score for climat e change

> BRPM concentrator performance

• 6.4%

improvement in energy efficiency from H1 2017

> Our environmental commitments

• Global Report ing Inst it ut e –GRI
• Unit ed Nat ions Global Compact - UNGC

Baseline

BRPM concentrator energy efficiency

Target

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Description Unit H1 2016 H1 2017 H1 2018 % Var Total development km 17.6 19.1 17.0 (11.0) BRPM km 15.6 15.8 13.7 (13.3) S tyldrift capital development km 2.1 3.3 3.3 0.0 IMS panel ratio (BRPM) ratio 1.57 1.54 1.89 22.7 Total tonnes delivered kt 1 296 1 473 1 516 2.9 BRPM kt 1 156 1 235 1 114 (9.8) S tyldrift kt 140 238 402 68.9 Merensky kt 1 018 1 174 1 301 10.8 UG2 kt 278 298 215 (27.9) Built-up head grade (4E) g/ t 4.01 3.80 3.96 4.2 BRPM g/ t 4.11 4.04 4.17 3.2 S tyldrift g/ t 3.23 2.53 3.36 32.8

Increased Styldrift contribution aligned to 150ktpm ramp-up

14

> BRPM development  13.3%

− remains aligned with depletion rates

> BRPM IMS

panel ratio of 1.89

> 3.3km of capital development at S

tyldrift

> Tonnes delivered  2.9% > Built-up head grade  4.2%

BRPM 1 156 BRPM 1235 BRPM 1 114 Styldrift 140 Styldrift 238 Styldrift 402

• 200

400 600 800 1 000 1 200 1 400 1 600 1 800 H1 2016 H1 2017 H1 2018 kt

Tonnes delivered

4,11 4,04 4,17 3,23 2,53 3,36 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 H1 2016 H1 2017 H1 2018 g/t

Built-up head grade (4E)

BRPM Styldrift

Condensed Consolidated Interim Results for the six months ended 30 June 2018

BRPM 1 150 BRPM 1 237 BRPM 1 123

Styldrift 142 Styldrift 240 Styldrift 406

200 400 600 800 1 000 1 200 1 400 1 600 1 800 H1 2016 H1 2017 H1 2018 kt

Total tonnes milled

91,6 100,0 106,5 20 40 60 80 100 120 H1 2016 H1 2017 H1 2018 koz

Pt metal in concentrate

Description Unit H1 2016 H1 2017 H1 2018 % Var Total tonnes milled kt 1 292 1 477 1 529 3.5 BRPM kt 1 150 1 237 1 123 (9.2) S tyldrift kt 142 240 406 69.2 Merensky kt 1 015 1 179 1 314 11.5 UG2 kt 277 298 215 (27.9) UG2% milled % 21% 20% 14% 30.0 BRPM concentrator tonnes milled kt 1 135 1 284 1 407 9.6 Merensky kt 1 015 1 179 1 313 11.4 UG2 kt 120 105 94 (10.5) UG2% milled % 11% 8% 7% 12.5 Tonnes milled - UG2 Toll kt 158 193 122 (36.8) Recovery - 4E (total concentrating) % 85.27 85.63 84.62 (1.2) Recovery – 4E (BRPM) % 85.80 86.38 84.94 (1.7) 4E metals in concentrate koz 142.0 155.4 164.5 5.9 BRPM koz 129.8 139.8 128.4 (8.2) S tyldrift koz 12.1 15.6 36.1 131.4 Pt metal in concentrate koz 91.6 99.9 106.5 6.6 BRPM koz 83.7 89.8 83.0 (7.6) S tyldrift koz 7.9 10.1 23.5 132.7

BRPM concentrator at full capacity: Maseve plant start-up H2 2018

15

> Tonnes milled  3.5%

• Merensky tonnes milled  11.5%
• S

tyldrift tonnes milled  69.2%

• UG2 tonnes milled  27.9%

> Metals in concentrate

• 4E  5.9%
• Pt  6.6%

Condensed Consolidated Interim Results for the six months ended 30 June 2018 336 352 343 50 100 150 200 250 300 350 400 H1 2016 H1 2017 H1 2018 m2/crew

BRPM stoping efficiency - total

30,3 33,0 33,2 10 15 20 25 30 35 H1 2016 H1 2017 H1 2018 t/TEC

Tonnes milled / TEC

Description Unit H1 2016 H1 2017 H1 2018 % Var Total labour No. 7 228 7 819 8 520 (9.0) Working cost labour No. 6 330 6 247 5 627 9.9 Capital labour No. 898 1 572 2 893 84.0 S toping efficiency – total m2/ crew 336 352 343 (2.6) Tonnes milled/ TEC t/ TEC 30.3 33.0 33.2 0.6

Working cost labour aligned to restructuring

16

> 9.9%

 decrease in working cost labour

> 84.0%

 in capital labour

• In line with construction activities and ramp-up of S

tyldrift

> Labour efficiencies

• 2.6%

 in stoping efficiency

• 0.6%

 in tonnes milled per TEC

6 330 6 247 5 627 1 000 2 000 3 000 4 000 5 000 6 000 7 000 H1 2016 H1 2017 H1 2018 No.

Working cost labour

898 1 572 2 893 500 1 000 1 500 2 000 2 500 3 000 3 500 H1 2016 H1 2017 H1 2018 No.

Capital labour

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Description Unit H1 2016 H1 2017 H1 2018 % Var Cash operating costs R'm 1 329 1 429 1 342 6.1 Cash operating cost/ tonne milled R/ t 1 156 1 155 1 195 (3.5) Mining cost/ tonne milled R/ t 826 817 865 (5.9) Processing cost/ tonne milled R/ t 168 184 168 8.7 S ervices cost/ tonne milled R/ t 163 154 162 (5.2) Cash operating cost/ 4E oz R/ oz 10 236 10 227 10 449 (2.2) Cash operating cost/ Pt oz R/ oz 15 882 15 913 16 159 (1.5)

Containing unit costs remains a key focus

17

Key drivers > Inflation at 4.2% > Above inflation increases

• Contractors (6.8%

)

• S

undries (0.2% )

• Enrolled labour (2.4%

)

• Utilities – water (7.8%

)

> S tores flat year-on-year > Below inflation increases

• Utilities - electricity (0.8%

)

1 329 1 429 1 342 200 400 600 800 1 000 1 200 1 400 1 600 H1 2016 H1 2017 H1 2018 R' million

Cash operating costs

15 882 15 913 16 159 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 H1 2016 H1 2017 H1 2018 R/oz

Cash operating cost/Pt oz

1 156 1 155 1 195 200 400 600 800 1 000 1 200 1 400 H1 2016 H1 2017 H1 2018 R/t

Cash operating cost/tonne milled

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Description Unit H1 2016 H1 2017 H1 2018 % Var Stay-in-business capital (SIB) R'm 56 59 57 3.4 S tay-in-business capital (BRPM) R'm 56 54 42 22.2 S IB %

• f operating cost (BRPM)

% 4.2 3.8 3.2 15.8 S tay-in-business capital (S tyldrift) R'm 5 15 (200.0) Replacement capital R'm 43 10 21 (110.0) North shaft phase III extension R'm 43 10 21 (110.0) Expansion capital R'm 418 778 1 303 (67.5) S tyldrift I R'm 414 776 1 303 (67.8) S tyldrift exploration & S tyldrift II R'm 4 2 100.0 Total capital expenditure R'm 517 847 1 381 (63.0)

Accelerating construction activities drives increase in capital expenditure

18

517 847 1 381 200 400 600 800 1 000 1 200 1 400 1 600 H1 2016 H1 2017 H1 2018 R’million

Total capital expenditure

414 776 1 303 200 400 600 800 1 000 1 200 1 400 H1 2016 H1 2017 H1 2018 R’million

Styldrift capital expenditure R1 303 million 67.5% increase

Expansion capital

R21 million 110.0% increase

Replacement capital

R57 million 3.4% decrease

Stay-in-business capital

Condensed Consolidated Interim Results for the six months ended 30 June 2018 13 225 40 535 44 628 10 000 20 000 30 000 40 000 50 000 2016 2017 H1 2018 m2

Stoping production Description Unit H1 2016 H1 2017 H1 2018 Capital expenditure Annual R’ bn 0.41 0.78 1.30 Proj ect-to-date R’ bn 5.89 7.23 9.76 Project progress Development m 2 068 3 328 3 285 Proj ect-to-date development m 8 016 14 294 21 085 ROM tonnes delivered kt 140 238 402 Proj ect-to-date ROM tonnes delivered kt 242 732 1 457 Revenue generation Annual R’ m 137 187 477 Proj ect-to-date R’ m 192 605 1 466

Styldrift project progress: 150ktpm on target for Q4 2018

19

> S urface infrastructure

• Commissioned overland ore handling system H1 2018

> Underground infrastructure

• 3.3km of infrastructure development
• S

ervices shaft fully equipped – commissioned Q1 2018

• Progressed S

ilo 3, 4 and S ettler 1 construction

• Raiseboring of ventilation shaft No.3
• Commissioned western side conveyor infrastructure
• Commissioned UG2 ore handling infrastructure

2,07 3,33 3,28 0,0 1,0 2,0 3,0 4,0 H1 2016 H1 2017 H1 2018 km

Capital development

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Innovative solution to Silo 4 geotechnical conditions

20

64m

6m diameter steel rings Concrete void filling Excavation sidewall 8m –Concrete Plug

> Challenging geotechnical conditions > Installation of sixty 6-metre diameter by 1-metre high rings > Forty rings completed in H1 2018 > Commission Q4 2018 > Last key piece of capital infrastructure required to support 150ktpm

S ilo 4 rehabilitation methodology

642 level 708 level

Bulkhead installation

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Stoping gearing up to meet Q4 150ktpm milestone

21

Legend Development completed end June 2018 Stoping completed end June 2018 Section strike belts commissioned Section strike belts to be installed

8 stoping crews at June 2018

> 813kt of Merensky ore from st oping > 98 400m2 mined

Section S1 - E Section N1 - E Section S2 - E Section N1 - W Section S1 - W Section N2 - E Section S2 - W Section N2 - W

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Services Shaft Main Shaft Section N4 Q2 -’19 Section N3 Q4 -’18 Section N2 Q3 -’18 Section S2 Q4 - ‘18 Section S3 Q2 -’19 Section N5 Q1 -’20 Ventilation shafts 1,2 and 3 708 Level Silo 4 Q4 -’18 708 Level Settler 1 Q1 -’19 708 Level Silo 3 Q3 -’19 Legend Development completed end 2017 Development completed end Jun 2018 Decline and infrastructure development 150ktpm Decline and infrastructure development 230ktpm Section S3 Q1 -’20

1 200 1 850 2 455 2 760 2 760 500 1 000 1 500 2 000 2 500 3 000 2018 2019 2020 2021 2022 kt Production range 2018 -2019 2 050

Styldrift ramp-up

1 300

Key milestone dates for Styldrift ramp-up to 230ktpm

22

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Key Styldrift life of mine infrastructure progress

23

Description 150ktpm 230ktpm Completion date Surface infrastructure Main shaft

Complete

Offices & changehouse

Complete

Overland belt

Complete

S ervices shaft

Complete

Underground infrastructure Electrical supply

Complete

Material distribution

Complete

S ilo 1 & 2

Complete

S ilo 3

Under const ruct ion

Q3’ 19 S ilo 4

Under const ruct ion

Q4’ 18 S ettler 1

Under const ruct ion

Q1’ 19 S ettler 2

To be constructed

Q2’ 20 Temporary water handling (150ktpm)

Complete

Workshops

Complete

Under const ruct ion

Ventilation shafts Ventilation shaft 1

Complete

Ventilation shaft 2

Under const ruct ion

Q2’ 19 Ventilation shaft 3

Complete

FINANCIAL REVIEW

Condensed Consolidated Interim Results for the six months ended 30 June 2018

25

Improved realised average rand basket

Description Unit 6 months ended 30 June 2018 6 months ended 30 June 2017 % Change Year ended 31 December 2017 Average basket price R/ Pt oz 19 990 17 745 12.7 19 156 Average rand received R:US $ 12.95 13.07 (0.9) 13.29 Revenue R’ m 1 659.6 1 593.9 4.1 3 498.5 Cost of sales R’ m (1 504.0) (1 582.6) 5.0 (3 186.5) Gross profit R’m 155.6 11.3 1 277.0 312.0 Administ rat ion expenses R’ m (132.0) (103.9) (27.0) (207.2) Maseve care and maint enance and operational readiness cost s R’ m (20.5)

• (100.0)
• Rest ruct uring cost s and ot her income

R’ m 47.8 24.9 92.0 101.5 Impairment of non-financial asset s R’ m (27.3) (0.5) NMF (864.3) Net finance income R’ m 35.3 36.3 (2.8) (85.1) Profit/(loss) before tax R’m 58.9 (31.9) 284.6 (572.9) Operat ing profit / (loss) R’ m 50.9 (67.7) 175.2 206.3 EBITDA R’ m 222.5 100.4 121.6 572.2

Condensed Consolidated Interim Results for the six months ended 30 June 2018

26

40.2%

• f capital expenditure funded from cash generated by operating

activities and Styldrift on-reef development revenue

Description Unit 6 months ended 30 June 2018 6 months ended 30 June 2017 % Change Year ended 31 December 2017 Cash generated by operat ing act ivit ies R’ m 150.4 122.0 23.3 618.4 Net cash posit ion R’ m 227.8 1 664.5 (86.3) 1 333.1 Cash and cash equivalent s R’ m 727.9 1 664.5 (56.3) 1 333.1 Cash and cash equivalent s – 100% BRPM R’ m 489.2 347.5 40.8 571.2 Cash and cash equivalent s – RBPlat corporat e office and housing proj ect ring-fenced cash R’ m 238.7 1 317.0 (81.9) 761.9 Term debt drawn down R’ m (500.1)

• (100.0)
• Capital expenditure*

R’ m 1 397.8 842.5 (65.9) 2 138.3 Acquisit ion of Maseve R’ m 729.1

• (100.0)
• Gross profit margin

% 9.4 0.7 1 242.9 8.9 EBITDA margin % 13.4 6.3 112.7 16.4 Net Asset Value (NAV) R/ share 54.6 58.9 (7.3) 55.3

*BRPM JV capex: R1 380.9 million Less: Eliminat ion of int er-group charges of (R55.5 million) Ot her Group capex R72.4 million RBPlat Group capex: R1 397.8 million

Condensed Consolidated Interim Results for the six months ended 30 June 2018

27

Significant strengthening of most USD metal prices except platinum

Description Unit 6 months ended 30 June 2018 6 months ended 30 June 2017 Volume* US$ Volume* US$ Plat inum

• z

83 001 896/ oz 89 825 940/ oz Palladium

• z

34 079 985/ oz 37 516 845/ oz Gold

• z

3 865 1 296/ oz 4 055 1 262/ oz Rhodium

• z

7 287 2 188/ oz 8 373 963/ oz Iridium

• z

2 373 1 320/ oz 2 809 935/ oz Rut henium

• z

12 339 247/ oz 14 152 61/ oz Nickel t onne 794 6.73/ lb 727 4.12/ lb Copper t onne 508 3.08/ lb 512 2.52/ lb

The t able above illust rat es t he average prices received by BRPM JV in t erms of t he disposal of concent rat e agreement (excluding t he pipeline revaluat ion) grossed up t o 100% . * Excludes S t yldrift ounces

48,9% 22,1% 3,3% 10,5% 2,1% 2,0% 7,7% 2,3%

2018

Pt Pd Au Rh Ir Ru Ni Cu

58,6% 22,0% 3,6% 5,6% 1,8% 0,6% 5,0% 2,0%

2017

Pt Pd Au Rh Ir Ru Ni Cu

Condensed Consolidated Interim Results for the six months ended 30 June 2018

28

6.4% decrease in costs of sales excluding depreciation and amortisation

Description 6 months ended 30 June 2018 R million 6 months ended 30 June 2018 %

• f Total

% Change 6 months ended 30 June 2017 R million 6 months ended 30 June 2017 %

• f Total

Labour 511.9 38.6% 5.8 543.6 38.4% Ut ilit ies 129.6 9.8% (5.8) 122.5 8.6% Cont ractor cost s 411.5 31.0% (3.9) 396.1 28.0% Mat erials and ot her mining cost s 304.2 22.9% 17.1 367.1 25.9% Total cash costs excl. once–

• ff costs

1 357.2 102.4% 5.0 1 429.3 100.9% Movement s in invent ories (38.9) (2.9% ) 104.7 (19.0) (1.3% ) Eliminat ion of int ergroup charge (33.6) (2.5% ) 11.6 (30.1) (2.1% ) S

• cial and labour plan expense

19.4 1.5% (31.1) 14.8 1.0% Ot her cost s 21.6 1.6% (0.5) 21.5 1.5% Cost of sales (excl. depreciation and amortisation) 1 325.7 100.0% 6.4% 1 416.5 100%

Condensed Consolidated Interim Results for the six months ended 30 June 2018

29

Headline loss per share

Cents/share (15.3) (36.5) (12.0) (5.1) (7.0) 36.5 (20.8) 2.3 (1.0) (6.0)

• 50
• 25

25 50 Headline loss per share: H1 2017 Revenue - improved realised average rand basket price Revenue - decreased volumes Decrease in other income Maseve care and maintenance and

• perational readiness costs

Increase in depreciation, amortisation, admin and other costs, reduction in restructuring costs Decrease in costs due to decreased volumes Increase in costs - mining inflation Real cost savings Other Headline loss per share: H1 2018 52.9

Condensed Consolidated Interim Results for the six months ended 30 June 2018

(29.4) (146.8) 146.5 (20.5) 33.0 9.3 (16.5) 247.0 (18.1) (12.2) (34.2) (83.7) (53.4) (32.6) (11.6)

• 200
• 150
• 100
• 50

50 100 150 200 250 300 Headline loss - H1 2017 Revenue - volume decrease Decrease in costs due to decreased volumes Maseve care and maintenance and

• perational readiness costs

Increase in admin and other costs, decrease in restructuring costs and net finance income Real cost savings Revenue - exchange rate Revenue - metal prices Revenue - revaluation of pipeline Increase in depreciation and amortisation Decrease in other income Increase in costs - mining inflation Increase in tax Increase in non-controlling interest Headline loss - H1 2018 21.5 controllable (3.7) uncontrollable

Headline loss

30 R’million

Condensed Consolidated Interim Results for the six months ended 30 June 2018

1 333.1 42.3 412.0 (57.1) (21.3) (1 319.4) (729.1) 453.5 185.0 500.0 (165,8) (40,0) (15,7) 727.9

• 400

400 800 1 200 1 600 2 000 Cash and cash equivalents - 1 January 2018 Cash generated by operations Interest, dividends and tax Styldrift on-reef development revenue receipts SIB capex Replacement capex Expansion capex Maseve acquisition Increase in amount due to RPM Drawdown on PIC housing facililty Proceeds from interest bearing borrowings Acquisition of employee housing assets Repayment of PIC facility Employee housing receivable - capital repayments received and increase in environmental trust deposits Cash and cash equivalents - 30 June 2018 150.4

571.2 761.9 238.7 489.2

604.7

• 1 397.8

R’million

Operational cash generation increase in line with capex increase

31

Condensed Consolidated Interim Results for the six months ended 30 June 2018

RBPlat well positioned to continue to grow as planned

32

> S ignificant progress made with strategic value-enhancing transactions

• S

uccessful financial closure of Phase 1 and Phase 2 of the Maseve acquisition

• Maseve plant and surface rights sold to the BRPM JV at cost
• Conclusion of legally binding agreements with Anglo American Platinum for the acquisition of their 33%

participating interest in the BRPM JV

> Improved gross profit margin due to a higher realised average rand basket price and reduction in costs > 1.9% reduction in cash fixed cost base from 72.7% to 70.8%

• f total cash costs due to the successful restructuring process

embarked on in 2017 > 154% increase in the S tyldrift on-reef development revenue to R476.5 million > 40.2%

• f R1.4 billion capital expenditure funded from cash generated by operating activities and S

tyldrift on-reef development revenue receipts > Net cash position of R227.8 million

• Cash and cash equivalent s of R727.9 million
• R500.1 million of t he R750 million t erm debt facilit y ut ilised at t he end of June 2018
• R750 million RCF remains un-ut ilised

OUTLOOK

Condensed Consolidated Interim Results for the six months ended 30 June 2018

Committed to long-term value creation

34

> The platinum market is forecast to be in surplus in 2018

• Without significant supply cuts from loss-making mines, prolonged lower platinum prices can be expected

> Reversing the deterioration in our key safety metrics is a key obj ective > Production guidance for the full year is unchanged at 3.35Mt to 3.50Mt

• Grade is forecast at 3.95g/ t to 4.04g/ t (4E)
• 4E metals of 370koz to 387koz
• S

tyldrift is forecast to deliver between 1.2Mt and 1.3Mt

> Capex for the year is estimated at R2.9 billion to R3.1 billion

• includes capitalised operating costs for H2 of between R600 million and R800 million

> Ramp up S tyldrift to 150ktpm by year-end and move from a capital proj ect to an operating mine > Conclude the acquisition of Anglo American Platinum’s 33% interest in the BRPM JV

Condensed Consolidated Interim Results

For the six months ended 30 June 2018