FY2018 RESULTS BRIEFING We respect, care and deliver ZIMPLATS - - PowerPoint PPT Presentation

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FY2018 RESULTS BRIEFING We respect, care and deliver ZIMPLATS - - PowerPoint PPT Presentation

Aug 29, 2022 149 likes •489 views

FY2018 RESULTS BRIEFING We respect, care and deliver ZIMPLATS LOCATION AND OPERATIONS We respect, care and deliver AT A GLANCE 0 Fatalities 271 000 Pt Oz Produced 2018 US$3 million US$166 million Profit before tax Profit after tax 3

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We respect, care and deliver

FY2018 RESULTS BRIEFING

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ZIMPLATS LOCATION AND OPERATIONS

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AT A GLANCE…

2018

3

0 Fatalities

US$3million

Profit after tax

271 000

Pt Oz Produced

US$166million

Profit before tax

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SUMMARY OF RESULTS

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8.8 million Fatality free shifts ROM Tonnes 6 801 000 Tonnes Milled 6 570 000 Pt 271 000 Oz Head Grade 3.24 g/t 14% Revenue US$582.5m (5%) Operating cost US$1 290/ Pt oz. 64% Profit before tax US$166m Tax expense US$163.3m 248% Cash generated US$195m

Nameplate 6 200 000

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REVENUE CONTRIBUTION BY METAL 2009 TO 2018

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Platinum 55% Palladium 19% Gold 7% Rhodium 4% Nickel 11% Other 4%

2012 2012

Platinum 49% Palladium 27% Gold 6% Rhodium 4% Nickel 10% Other 4%

2015 2015

Platinum 38% Palladium 35% Gold 6% Rhodium 7% Nickel 9% Other 5%

2018 2018

Platinum 68% Palladium 11% Gold 7% Nickel 12% Other 2%

2009 2009

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DEPRESSED PLATINUM PRICES

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200 400 600 800 1 000 1 200 1 400 1 600 1 800 US$/oz

Platinum

200 400 600 800 1 000 US$/oz

Palladium

300 600 900 1 200 1 500 1 800

US$/oz

Gold

5 000 10 000 15 000 20 000 25 000 30 000 US$/ton

Nickel

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OPERATIONS

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We respect, care and deliver Fatality-free shifts 8.8 million Lost-time injuries 3 Total injuries 8 Fatal injury frequency rate Lost-time injury frequency rate 0.19 Total injury frequency rate 0.52

ZERO HARM

SAFETY SUMMARY

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OUR SAFETY JOURNEY

9 154 84 43 38 43 38 20 18 14 6 8 11 20 19 17 10 19 11 12 8 3 3 20 40 60 80 100 120 140 160 180 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 TI LTIs

TI – Total injuries LTI – Lost time injuries

365 days LTI free

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ENVIRONMENTAL PERFORMANCE

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Zero Major environmental non- conformances Ongoing water recycling programmes for production 2% reduction in amount of water extracted from dams and underground Ongoing programmes to manage fresh water consumption Progressive land rehabilitation programmes in place

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METAL PRODUCTION

Ngezi Concentrator

Metal FY2018 FY2017 Variance Platinum (oz) 271 000 281 000 (4%) Palladium (oz) 223 000 233 000 (4%) Gold (oz) 29 000 29 000

  • Rhodium (oz)

24 000 25 000 (4%) Ruthenium (oz) 21 000 22 000 (5%) Iridium (oz) 10 000 11 000 (9%) Silver (oz) 50 000 48 000 4% Nickel (t) 5 000 5 000

  • Copper (t)

4 000 4 000

  • Cobalt (t)

87 67 30%

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FINANCIALS

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CASH UTILISATION FY2002 – FY2018 (US$6 BILLION)

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US$1.6 billion US$2.5 billion

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CASH UTILISATION FY2018 (US$627 MILLION)

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ABRIDGED INCOME STATEMENT

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Sales revenue

  • Metal prices

Gross profit

  • Revenue

Profit before tax

  • Higher gross

profit

Taxation

  • Change in rate

to 25.75%

  • Higher profits

2018 2017 Variance US$ millions % Revenue 583 513 14 Cost of sales ( 368) ( 366) 1 Gross profit 215 146 47 Profit before tax 166 101 64 Taxation ( 163) ( 55) (196) Current income tax ( 65) ( 51) ( 27) Corporate tax: ( 20) ( 10) ( 50) Additional profits tax: ( 43) ( 40) ( 8) Withholding tax ( 2) ( 1) ( 50) Deferred income tax ( 98) ( 5) ( 1 860) Profit after tax 3 46 ( 93) Cash operating cost per Pt oz (US$) 1 290 1 226 (5) Gross revenue per 4E oz (US$) 1 075 922 17 Gross margin (%) 37 28 9

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CONTRIBUTION TO THE FISCUS

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15 53 42 96 113 97 47 62 86 131 20 40 60 80 100 120 140 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 CONTRIBUTION TO THE FISCUS (US$M)

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CAPITAL PROJECTS

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MUPANI MINE DEVELOPMENT

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CAPITAL PROJECTS

BIMHA MINE REDEVELOPMENT

  • US$101m project

budget

  • US$29.9m spent

in FY2018

  • Attained design

capacity in April 2018

  • US$66.2m -

project expenditure to date MUPANI MINE DEVELOPMENT

  • US$264m project

budget

  • US$28.7m spent

in FY2018

  • US$37.8m -

project expenditure to date STAY IN BUSINESS CAPITAL

  • US$31.2 million

spent on replacement of trackless mining machinery (TMM) in FY2018.

  • US$46.2 million

spent on routine stay-in-business capital projects

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US$136 million spent on capital projects

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We respect, care and deliver Total Headcount 6 500 Employee Housing Strategy in place

OUR PEOPLE

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EMPLOYEE WELLNESS

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HIV/AIDS

  • HIV/AIDS

programmes continue to run for staff, their families and the community. MENTAL HEALTH

  • Mental health

programme now in its second year NCDs

  • Continued focus on

NCDs management Occupational Health

  • Occupational health

programmes in place and running effectively

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COMMITTED TO CREATING SHARED VALUE

HEALTH SPORTS DEVELOPMENT COMMUNITY PROJECT ON ALBINISM LIVESTOCK REVITALISATION EDUCATION

US$6 million

Invested in community development projects in FY2018

PICTURE: CHITSUWA DAM

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BEFORE

KADOMA GENERAL HOSPITAL REHABILITATION PROJECT

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DILAPIDATED KITCHEN EQUIPMENT DILAPIDATED LAUNDRY EQUIPMENT POOR WATER RETICULATION

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AFTER

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FACILITIES FACELIFT NEW LAUNDRY BLOCK CONSTRUCTED NEW KITCHEN EQUIPMENT NEW LAUNDRY EQUIPMENT

KADOMA GENERAL HOSPITAL REHABILITATION PROJECT

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COMMUNITY PROJECT ON ALBINISM

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Campaign launched in partnership with:

  • Ministry of Labour and Social Welfare
  • Ministry of Health and Child Care
  • Friends with Albinism

Key project objectives

  • Awareness raising
  • Promotion of integration
  • Facilitation of distribution of sun protection

materials ( lotions, lip balm, hats) Major project achievements:

  • Effective national awareness campaign
  • Skin cancer screening and treatment
  • Provision of eye tests and spectacles
  • Distribution of sun protection materials (

approximately 1000 beneficiaries)

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COMMERCIAL LIVESTOCK PROJECTS

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2017

  • 16 Bonsmara and Tuli

bulls donated to the community for herd improvement.

  • 64 Bucks donated to

the community for improved herd genetics

  • Construction and

rehabilitation of dip tanks 2018

  • 96 project offspring to

date – 47 heifers and 49 bulls

  • Improved animal

health and nutrition

  • Launch of Livestock

Revitalisation ( AI) project in partnership with Zimbabwe Agricultural Society.

  • 200 cattle

inseminated to date in Mat. South

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DEVELOPING SPORT IN THE COMMUNITY

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PROTECTING OUR COMMUNITY

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ZRP TURF POLICE STATION CONSTRUCTED BY ZIMPLATS 11KM FENCE ERECTED BY ZIMPLATS ALONG NGEZI SELOUS HIGHWAY

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EMPOWERMENT

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Indigenisation Enterprise Development

  • The local enterprises ( LEDs) supply engineering and

technical solutions, protective clothing (work suits and

  • veralls), silica and bricks
  • LEDs turnover for FY2018 - US$43m
  • Employee Share Ownership Trust transaction concluded

in January 2017

  • Zimplats Mhondoro-Ngezi Chegutu Zvimba Community

Share Ownership Trust 10% equity being processed

Local Supplier Development

  • Zimplats continued with its strategy of local supplier

development - 69% of total spend in FY2018

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LOCAL PROCUREMENT AND SUPPLIER DEVELOPMENT

29 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

  • 50

100 150 200 250

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

PROPORTION OF LOCAL SPEND EXPENDITURE ($M) Local spend Local spend % of total spend

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DEVELOPING LOCAL SUPPLIERS

  • TOOL FOR ECONOMIC RECOVERY

Import substitution initiatives

 Partnership to establish a bulk emulsion plant – AEL Zimbabwe  Partnership to set up mine roof support – Grindale Engineering

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LOCAL ENTERPRISE DEVELOPMENT

TELSTONE TRADING

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LOOKING AHEAD

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  • 1. Business optimisation
  • Achieving production

volumes

  • Containing costs
  • Preservation of cash

resources

  • Maintaining sustainable

business practices

  • Expansion, diversification

and strategic joint ventures

  • 2. Plans to reline and

improve the existing furnace to improve furnace safety

  • 3. Continued investment in

community projects

  • 4. Support government

efforts and engage them on a multi-stakeholder approach to the national beneficiation facility

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