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

Disclaimer 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 other 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. Condensed Consolidated Interim Results for the six months ended 30 June 2018 2

CONTENTS Overview Market Review Operational Review Financial Review Outlook

OVERVIEW

Solid performance from Styldrift; continued cost savings at BRPM > 3.1% increase in lost time inj ury frequency rate (LTIFR) SAFETY > 54.6% increase in serious inj ury frequency rate (S IFR) > Regrettably, one fatality post the reporting period > 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) OPERA TIONAL > 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) > Improved EBITDA margin of 13.4% (2017: 6.3% ) FINANCIAL > 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) > Autocatalyst demand for platinum remains under pressure PGM MARKET > Palladium market continues to be in deficit Condensed Consolidated Interim Results for the six months ended 30 June 2018 5

On track to meeting our strategic objectives > S ust ained labour st abilit y > S t able labour product ivit y > Creat ing flexibilit y in our processing > Reduct ion in cash operat ing cost s t hrough t he Maseve acquisit ion t hrough rest ruct uring > Commit t ed t o improving our safet y performance > Impala royalt ies cont inue t o generat e income for RBPlat > S uccessful financial closure of Maseve > On t rack wit h S t yldrift ramp-up acquisit ion t o 150kt pm by Q4 2018 > Acquisit ion of Amplat s 33% int erest in t he BRPM JV Condensed Consolidated Interim Results for the six months ended 30 June 2018 6

MARKET REVIEW

Platinum supply forecast to be steady in 2018 as the increase in recycling supply offsets the decrease in SA mine output Global platinum supply forecast Global platinum demand forecast 10,0 7 800 9,0 45 Peak = 6.9 7 700 45 8,0 2.0 130 2.0 110 7 600 7,0 (120) 2014 = 4.9 7 500 (30) 6.0 6,0 Moz koz 5,0 7 400 (120) (140) 5.3 4.4 4,0 7 300 3,0 7 455 7 455 7 415 7 415 3.1 7 200 2,0 7 100 1,0 0,0 7 000 Global primary supply Recycling SA supply Supply Demand > Total platinum supply (including recycling) is forecast to > Autocatalyst demand is expected to soften by 3.5% (-120koz) decrease by 0.8% (-63koz) to 8.0Moz • 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 > S outh African mine output is estimated to decrease by 0.6% (-27koz) to 4.4Moz > Jewellery demand is predicted to contract by 1.2% (-30koz) > S upply of platinum from recycling is forecast to increase • China is forecast t o decline by 6% in 2018 by 2.2% (43koz) to 2.0Moz • India is proj ect ed t o grow st rongly in 2018, but from a low base Source: SFA (Oxford) Note: Excludes investment demand Condensed Consolidated Interim Results for the six months ended 30 June 2018 8

Total palladium supply to remain flat as output from recycling increases slightly Global palladium supply forecast Global palladium demand forecast 10,0 10 600 2,1 2.5 9,0 45 65 Peak =7.1 10 400 8,0 (1) (15) (20) (25) 7.0 7,0 (35) (75) 10 200 6,0 Moz koz 2014 = 6.4 5,0 10 000 4,0 10 325 10 325 10 295 10 295 9 800 3,0 2,6 2.5 2,0 9 600 1,0 9 400 0,0 Global primary supply Recycling SA supply Supply Demand > Total palladium supply is forecast to be flat at 9.5Moz > Palladium is increasingly exposed to the auto sector as demand erodes in electronic and dental applications > Global palladium production from mines is forecast to decline by 1.4% to 7.0Moz, down by approximately 100koz from a peak of > Chinese vehicle sales expected to grow by 3% , slowing from 5.6% 7.1Moz in 2017 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 Condensed Consolidated Interim Results for the six months ended 30 June 2018 9

OPERATIONAL REVIEW

Business strategy continues to drive operational performance Styldrift Community 150ktpm and ramp-up workforce on target stability Focus on for Q4 2018 improving injury frequency rates Maseve Operating costs acquisition continue unlocks organic to remain flat growth path to 230ktpm Condensed Consolidated Interim Results for the six months ended 30 June 2018 11

Reversing safety trends key to achieving a resilient safety culture Description Unit H1 2016 H1 2017 H1 2018 % Var Total injury frequency rate Lost time injury frequency rate Fatal inj uries No. 1 - - 0.0 3,00 12,00 11,19 2,68 2,60 9,92 TIFR* Rate 5.95 11.19 9.92 11.3 2,50 10,00 /1000 000 hrs LTIFR* Rate 1.61 2.60 2.68 (3.1) 2,00 8,00 /1000 000 hrs 1,61 S IFR* Rate 0.87 1.30 2.01 (54.6) 5,95 1,50 6,00 S afety stoppages No. 6 2 3 (50.0) 4,00 1,00 Production shifts affected No. 16 9 11 (22.2) 2,00 0,50 Milled tonnes lost kt 32 5 7 (40.0) 4E Ounces lost koz 3.75 0.53 0.80 (50.9) 0,00 - H1 2016 H1 2017 H1 2018 H1 2016 H1 2017 H1 2018 * Rebased t o inj uries per 1 000 000 hours Serious injury frequency rate > No fatalities, in line with our goal of zero harm 2,50 • 11.3% improvement in TIFR 2,01 • 3.1% det erioration in LTIFR 2,00 • 54.6% det erioration in S IFR /1000 000 hrs 1,50 1,30 0,87 1,00 0,50 0,00 H1 2016 H1 2017 H1 2018 Condensed Consolidated Interim Results for the six months ended 30 June 2018 12

Leading health and environmental programmes Health Environment > HIV self-test campaign > Pursuing long-term environmental stability > Extensive TB treatment program which includes our doorstep > Carbon disclosure proj ect - CDP • Maint ained A list sust ainable wat er management score for t wo communities consecut ive years > Our efforts to improve the health of our employees: • B band carbon disclosure score for climat e change HIV > BRPM concentrator performance • 710 employees on ant iretroviral t reat ment • 6.4% improvement in energy efficiency from H1 2017 • HIV prevalence rat e st able at 23.1% > Our environmental commitments TB • Global Report ing Inst it ut e –GRI • BRPM JV TB incidence rat e of 591/ 100 000 • Unit ed Nat ions Global Compact - UNGC • Nat ional average of 781/ 100 000 HIV prevalence rate Administered TB screenings BRPM concentrator energy efficiency 30 000 60 30% Baseline 26 791 24 775 24,5% 25 000 50 25% 23,1% 23,1% 23 004 50 49 47 HIV prevalence rate kWh/tonne milled 44 40 20% 20 000 TB screenings 15 000 30 15% Target 20 10% 10 000 10 5% 5 000 - 0 0% H1 2016 H1 2017 2018 H1 2018 2016 2017 H1 2018 H1 2016 H1 2017 H1 2018 Condensed Consolidated Interim Results for the six months ended 30 June 2018 13