Investor Presentation October 2009 One Team One Vision With Pride - - PDF document

▶
investor presentation
SMART_READER_LITE
LIVE PREVIEW

Investor Presentation October 2009 One Team One Vision With Pride - - PDF document

Feb 23, 2024 137 likes •348 views

Investor Presentation October 2009 One Team One Vision With Pride Introducing Implats Implats is in the business of mining, refining and marketing platinum group metals and associated base metals One Team One Vision With Pride 2 1 Extensive

slide-1
SLIDE 1

1

One Team One Vision With Pride

Investor Presentation

October 2009

One Team One Vision With Pride

2

Introducing Implats

Implats is in the business of mining, refining and marketing platinum group metals and associated base metals

slide-2
SLIDE 2

2

One Team One Vision With Pride

3

Extensive mineral resources

  • 230 million attributable platinum ounces as at 30 June 2009*

Marula 3% Zimplats 41% Mimosa 2% Afplats 10% Tamboti 10% Impala 33% Two River 1% * Attributable Mineral Resources (inclusive of Mineral Reserves)

One Team One Vision With Pride

4

Implats …

  • strives to be the best platinum

producing company and deliver superior returns to its shareholders

  • produced 1.7 million ounces of

platinum in FY2009

  • generated sales revenue of

R26 billion in FY2009 (equivalent to $3 billion)

Implats share price – monthly average

  • 50

100 150 200 250 300 350

Rands

FY05 FY06 FY09 FY08 FY07

slide-3
SLIDE 3

3

One Team One Vision With Pride

5

Analysis of shareholders

  • Geographical distribution of shareholders as at 30 June 2009

South Africa 54% United States 21% United Kingdom 10% Luxembourg 5% Singapore 1% Other countries 9%

Source: JP Morgan/Cazenove One Team One Vision With Pride

6

Key statistics

  • Operations are located on two

prime deposits

  • The Bushveld Complex in

S

  • uth Africa
  • The Great Dyke in Zimbabwe
  • Impala Refining S

ervices – toll- refining and third party processing

slide-4
SLIDE 4

4

One Team One Vision With Pride

7

Metals produced

3 428 Total PGMs FY2009 Platinum (000oz) 1 704 Palladium (000oz) 1 008 Rhodium (000oz) 248 Nickel (000t) 14.5

One Team One Vision With Pride

8

Revenue by metal

FY2008

5% 7% 27% 7% 54%

FY2009

62% 7% 20% 6% 5%

Platinum Palladium Rhodium Nickel Other

slide-5
SLIDE 5

5

One Team One Vision With Pride

9

Group structure

Note: Refined platinum ounces indicated above have been rounded for illustrative purposes

Implats

1 704 000 oz

IRS Toll treatment

205 000 oz

Impala

950 000 oz

Mimosa

79 000 oz

Zimplats

97 000 oz

Two Rivers

116 000 oz

Mine-to-market Managed Operations Marula

73 000 oz

Mine-to-market Non-managed Operations

Group Concentrate/Matte Purchase contracts 365 000 oz 100% 73% 87% 50% 45% 100% 3rd Party Concentrate/Matte Purchase contracts 184 000 oz

One Team One Vision With Pride

Operations

slide-6
SLIDE 6

6

One Team One Vision With Pride

11

South African operations

Afplats

One Team One Vision With Pride

12

Impala (100% )

  • Largest single platinum producing entity in the world

 Produced 950 000 ounces of platinum in FY2009  Employs 29,500 (41 000 including contractors)  Life-of-mine of 30 years at around 1 million ounces of platinum

  • Mining

 14 shafts with 5 declines  3 new shafts under construction

  • Mineral Processes

 Concentrating and smelting operation

  • Base metal and precious metal refineries
  • Reserves and resources

 74 million attributable platinum ounces

slide-7
SLIDE 7

7

One Team One Vision With Pride

13

Marula (73% )

  • Currently in ramp-up to 125 000 ounces of platinum –5 year time frame

 Produced 74 000 ounces of platinum in concentrate in FY2009  Employs 3,500 including contractors  Has a life-of-mine offtake agreement with IRS

  • Mining

 2 on-reef declines and 1 off-reef conventional decline  Converting to conventional breast mining – hybrid mining  UG2

  • Processing

 Concentrator

  • Reserves and resouces

 8.2 million attributable platinum ounces

One Team One Vision With Pride

14

Two Rivers (45% )

  • Joint venture with African Rainbow Minerals

 Produced 118 000 ounces of platinum in concentrate in FY2009  Employs 2,850 including contractors  Has a life-of-mine offtake agreement with IRS

  • Mining

 2 on-reef declines  Fully mechanised bord and pillar mining method  UG2

  • Processing

 Concentrator

  • Reserves and resouces

 2.6 million attributable platinum ounces

slide-8
SLIDE 8

8

One Team One Vision With Pride

15

Zimbabwean operations

Victoria Falls

One Team One Vision With Pride

16

Zimplats (87% )

  • Ramp-up of Phase 1 expansion – 180 000 ounces of platinum

 Produced 96 000 ounces of platinum in matte in FY2009  Employs 5,500 including contractors  Has a life-of-mine offtake agreement with IRS

  • Mining

 3 declines  Fully mechanised bord and pillar mining method  MS

Z

  • Processing

 2 concentrators and smelter

  • Reserves and resouces

 92.9 million attributable platinum ounces

slide-9
SLIDE 9

9

One Team One Vision With Pride

17

Mimosa (50% )

  • Joint venture with Aquarius Platinum

 Produced 91 500 ounces of platinum in concentrate in FY2009  Employs 1,900 including contractors  Has a life-of-mine offtake agreement with IRS

  • Mining

 1 decline  Fully mechanised bord and pillar mining method  MS

Z

  • Processing

 Concentrator

  • Reserves and resouces

 4 million attributable platinum ounces

One Team One Vision With Pride

18

IRS

  • Undertakes processing of third party material

 Metal purchase agreements  Toll refining agreements  Produced 753 800 ounces of platinum in FY2009

  • One of the world’ s largest refiners of spent autocatalysts
  • Life-of-mine offtake agreements with Implats group operations,

Aquarius, Eastern Platinum, Blue Ridge and S mokey Hills

  • Impala’ s investment in additional smelting and refining capacity

continues to open up opportunities for growth

slide-10
SLIDE 10

10

One Team One Vision With Pride

The Market

One Team One Vision With Pride

20

Platinum

000 oz 2006 2007 2008 2009 Est

Demand Automotive 4,040 4,080 3,750 3,010 Jewellery 1,665 1,545 1,355 1,895 Industrial 1,830 1,870 1,780 1,570 Investment (30) 150 400 330 Total 7,505 7,645 7,285 6,805 S upply S A 5,435 5,145 4,465 4,480 Other 2,290 2,365 2,845 2,345 Total 7,725 7,510 7,310 6,925 S upply/ Demand Balance 220 (135) 25 10

slide-11
SLIDE 11

11

One Team One Vision With Pride

21

ETF’s and Nymex Vs TOCOM

000 oz $/ oz

  • 200

400 600 800 1,000 1,200 1,400 1,600 Jan 08 Jul 08 Jan 09 Jul 09 Nymex Net Longs TOCOM Net Longs Oct 09

000 oz

100 200 300 400 500 600 700 Jan 08 Jul 08 Jan 09 Jul 09 Oct 09 500 1000 1500 2000 ZKB ETF Securities Price

One Team One Vision With Pride

22

500 1,000 1,500 2,000 2005 2006 2007 2008 YTD09* HK Net Import SGE

China / Hongkong Imports

(000 oz) * January to August 09

slide-12
SLIDE 12

12

One Team One Vision With Pride

23

Palladium

000 oz 2006 2007 2008 2009 Est Demand Automotive 4,800 5,025 4,760 4,450 Other 3,380 3,355 3,720 3,280 Total 8,180 8,380 8,480 7,730 S upply S A 2,760 2,670 2,355 2,460 Other 6,595 6,445 6,015 4,755 Total 9,355 9,115 8,370 7,215 S upply/ Demand Balance 1,175 735 (110) (515)

One Team One Vision With Pride

24

Rhodium

000 oz 2006 2007 2008 2009 Est Demand Automotive 825 844 761 663 Industrial 144 146 134 133 Total 969 990 895 796 S upply S A 648 662 582 595 Other 292 310 324 297 Total 940 972 906 892 S upply/ Demand Balance (33) (18) 11 96

slide-13
SLIDE 13

13

One Team One Vision With Pride

25

Market outlook

  • Economic recovery, whilst tentative seems to be

gathering pace

  • Vehicle sales will slowly recover – the legislative net

will widen and will continue to tighten

  • Alternative propulsion will not materially impact in

the next 5 – 10 years

  • Pressure on new mine supply across the globe will

be a feature for the next few years

One Team One Vision With Pride

Results FY2009

slide-14
SLIDE 14

14

One Team One Vision With Pride

27

300 600 900 1200 1500 1800 2100 FY05 FY06 FY07 FY08 FY09

Key features - financial

(cents) Down 52%

  • Sales revenue down 31% to

R26.1 billion (US$3 billion) primarily on lower metal prices

  • Cost of sales reduced by 18%

to R16.4 billion

  • Gross profit declined 45%

to R9.8 billion

  • Group gross margin declined

to 37%

  • Headline earnings per share

decreased 52% to R10.01

  • Final dividend of R2.00 per share;

R3.20 for the year

Headline earnings

One Team One Vision With Pride

28

Gross refined platinum production

1400 1700 2000 FY05 FY06 FY07 FY08 FY09

Key features - operational

  • Safety unsatisfactory
  • Tonnes milled declined by 1% to

20.1 million

  • Gross platinum production of

1.7 Moz

  • Group unit cost up 10% to R8 526

including share based payments and up 32% to R9 129 excluding share based payments

  • Group capital expenditure

increased by 29% to R6.9 billion

000 oz

Lonmin

slide-15
SLIDE 15

15

One Team One Vision With Pride

29

Group safety

Fatal injury frequency rate

(per million man hours)

0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 FY05 FY06 FY07 FY08 FY09

Implats Group Benchmark

,

0.00 0.04 0.08 0.12 0.16 0.20 0.24 0.28 0.32 Gold Fields AngloGold Anglo Platinum SA Platinum Industry Implats Rio Tinto Anglo American BHPB Xstrata Lonmin

One Team One Vision With Pride

30

Group safety

Lost-time injury frequency rate

(per million man hours)

1 2 3 4 FY05 FY06 FY07 FY08 FY09

,

3 6 9 12 AngloGold Anglo Platinum Gold Fields SA Platinum Industry BHPB Lonmin Anglo American Implats Rio Tinto Xstrata

Implats Group Benchmark

slide-16
SLIDE 16

16

One Team One Vision With Pride

31

(2) 7.93 7.76 Closing exchange rate (R/ $) Rm FY2009 FY2008 % change S ales 26 121 37 619 (31) Cost of sales (16 359) (19 888) (18) Gross profit 9 762 17 731 (45) Gross margin 37% 47% (21) Revenue per platinum oz 17 217 21 528 (20) Average exchange rate achieved (R/ $) 8.63 7.32 18

Gross profit highlights

One Team One Vision With Pride

32

Key ratios and margins

47 37 Gross Margins 12 12 IRS FY2009 FY2008 Ratios Return on equity 14 38 Return on assets 10 20 Impala 50 65

slide-17
SLIDE 17

17

One Team One Vision With Pride

33

Group tonnes milled

000t FY2009 FY2008 % change Impala 15 102 15 855 (5) Marula 1 574 1 455 8 Zimplats 2 357 2 201 7 Mimosa 2 111 1 732 22 Group* 20 083 20 380 (1)

* Group includes 50% of Mimosa One Team One Vision With Pride

34

Group refined platinum production

000 oz FY2009 FY2008 % change Impala 950 1 044 (9) Marula 73 66 11 Zimplats 97 91 7 Mimosa 79 73 8 Other IRS 505 633 (33) Gross production 1 704 1 907 (11)

slide-18
SLIDE 18

18

One Team One Vision With Pride

35

Group cost per platinum ounce

R/ oz FY2009 FY2008 % change Impala*

(Refined)

8 559 6 546 31 Marula*

(In concentrate)

11 730 9 020 30 Zimplats

(In matte)

11 740 9 215 27 Mimosa

(In concentrate)

9 454 7 023 35 Group*

(Refined)

9 129 6 930 32

* Excludes share based payments

One Team One Vision With Pride

Conclusion

slide-19
SLIDE 19

19

One Team One Vision With Pride

37

Conclusion

  • Fundamentals for PGMs remain

sound in the medium- to long- term

  • Growth profile to 2.1 million
  • unces of platinum by 2014
  • Safety, volumes and cash

preservation remain the key priorities

400 800 1200 1600 2000 FY09 FY10 FY11 FY12 FY13 FY14 Impala Marula Zimplats Mimosa Two Rivers IRS

000 oz

Platinum growth profile One Team One Vision With Pride

38

Investing in Implats Johannesburg (JS E): IMP London (LS E): IPLA United S tates (Level 1 ADR): IMPUY

slide-20
SLIDE 20

20

One Team One Vision With Pride

39

Forward-looking statement

Certain statements contained in this presentation other than the statements of historical fact contain forward-looking statements regarding Implats’ operations, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum industry, expectations regarding metal prices, production, cash costs and other operating results, growth prospects and the outlook of Implat s’ operations, including the completion and commencement of commercial operations of certain of Implats’ exploration and production proj ects, its liquidity and capital resources and expenditure, and the outcome and consequences of any pending litigation or enforcement proceedings. Although Implats believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Accordingly, results may differ materially from those set out in the forward- looking statements as a results of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metal prices and exchanges rates and business and operational risk management. For a discussion on such factors, refer to the risk management section of the company’ s Financial S

  • tatements. Implats is not obliged to update publicly or release any revisions to

these forward-looking statement to reflect events or circumstances after the dates of the Annual Financial S tatement or to reflect the occurrence of unanticipated events. All subsequent written or

  • ral forward-looking statements attributable to Implats or any person acting on its behalf are

qualified by the cautionary statements herein.

One Team One Vision With Pride

Investor Presentation

October 2009