Embed Size (px)
Citation preview
25/08/2011
1
One Team One Vision With Pride
Annual Results
for the year ended 30 June 2011
Management Preview
One Team One Vision With Pride
Agenda
- Overview -David Brown
- Market review -Derek Engelbrecht
- Operational review -David Brown
- Financial review -Brenda Berlin
- Conclusion -David Brown
2
25/08/2011
2
One Team One Vision With Pride
Key features - operational
3
Safety remained unsatisfactory
Gross refined platinum production
rose by 5.5% to 1.84 million ounces
Group unit costs excluding share
based compensation were up 8% to
R10 867 per platinum ounce
Group capital expenditure increased
by 22% to R5.5 billion as we build for
the future 1000
1200
1400
1600
1800
FY10 FY11
Platinum Production
000
oz
00
0 o
z.
Up 5.5%
One Team One Vision With Pride
Key features - financial
Revenue up 30% to R33.1 billion
(US$4.7 billion)
Gross profit rose by 43% to
R11.6 billion
Margins up by 9% to 35%
Headline earnings per share
increased 41% to R11.05
Cash generated from operating
activities rose by 40% to
R8.3 billion
Final dividend of R4.20 per share;
R5.70 for the year
-
200
400
600
800
1 000
1 200
FY10 FY11
HEPS
Cen
ts p
er s
hare
cps
Up 41%
25/08/2011
3
One Team One Vision With Pride
Market Review
Derek Engelbrecht
One Team One Vision With Pride
Overview
Sales volumes and prices achieved
2010 – In review
2011 – prospects for the year ahead
6
25/08/2011
4
One Team One Vision With Pride
Sales volumes by metal
FY2011 FY2010 % change
Platinum (000oz) 1 665 1 435 16
Palladium (000oz) 1 011 945 7
Rhodium (000oz) 221 228 (3)
Nickel (000t) 16 13 21
One Team One Vision With Pride
Average prices achieved – major metals
FY2011 FY2010 % change
Platinum ($/oz) 1 691 1 433 18
Palladium ($/oz) 670 376 78
Rhodium ($/oz) 2 275 2 149 6
Nickel ($/t) 23 965 18 981 26
Basket ($/Pt oz sold) 2 799 2 316 21
(R/Pt oz sold) 19 677 17 555 12
Exchange rate (R/$) 7.03 7.58 (7)
25/08/2011
5
One Team One Vision With Pride
Macro environment 2010/11
Developed world struggling with debt
Emerging markets continue to outperform
Low interest rates, weak dollar, firm commodity prices
One Team One Vision With Pride
Investments
0
500
1,000
1,500
2,000
2,500
Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11
Ou
nc
es,
Th
ou
sen
ds
NYMEX TOCOM
0
500
1,000
1,500
2,000
Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11
Ou
nc
es,
Th
ou
san
ds
NYMEX TOCOM
Palladium Exchange Investment Jan 09 - July 11 Platinum Exchange Investment Jan 09 - July 11
25/08/2011
6
One Team One Vision With Pride
Light & Heavy Duty Vehicles Sales
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010
Ve
hic
le S
ale
s (M
illio
ns)
North America Western Europe Africa
Asia Eastern Europe Middle East
South America
One Team One Vision With Pride
Light & Heavy Duty Vehicles Sales - Forecast
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010 2011 2012
Veh
icle Sales (Millions)
North America Western Europe Africa
Asia Eastern Europe Middle East
South America
25/08/2011
7
One Team One Vision With Pride
Shanghai Gold Exchange – raising the bar
1 000
1 100
1 200
1 300
1 400
1 500
1 600
1 700
1 800
1 900
14 500
15 000
15 500
16 000
16 500
17 000
17 500
18 000
2009 2010 2011
Vo
lum
e (
kgs)
Volume KG $ Price Ave
$ 1107
$ 1784
$ 1590
Pric
e($
)
January - July
One Team One Vision With Pride
Platinum
000 oz 20102011
estimate
2012
estimate
Demand Automotive 3 270 3 630 4 070
Jewellery 2 160 2 180 2 270
Industrial 1 695 1 725 1 780
Investment 650 250 150
Total 7 775 7 785 8 270
Supply SA 4 735 4 740 4 970
North America 230 360 370
Other 1 015 740 880
Recycle 1 020 1 100 1 130
Russia 800 790 785
Total 7 800 7 830 8 135
Supply/Demand Balance 25 45 (135)
25/08/2011
8
One Team One Vision With Pride
Palladium
000 oz 20102011
estimate
2012
estimate
Demand Automotive 5 200 5 510 6 100
Industrial 3 155 3 220 3 150
Investment 1 055 200 200
Total 9 410 8 930 9 450
Supply SA 2 530 2 635 2 735
North America 665 865 930
Other 810 645 665
Recycle 1 370 1 530 1 800
Russia 3 400 2 850 2 750
Total 8 775 8 525 8 880
Supply/Demand Balance (635) (405) (570)
One Team One Vision With Pride
Rhodium
000 oz 20102011
estimate
2012
estimate
Demand Automotive 750 810 880
Industrial 150 170 180
Total 900 980 1 060
Supply SA 650 670 710
North America 15 20 20
Other 25 30 30
Recycle 230 240 260
Russia 70 70 65
Total 990 1 030 1 085
Supply/Demand Balance 90 50 25
25/08/2011
9
One Team One Vision With Pride
Factors driving future demand
Economic growth will be supported by developing economies
Growing desire for vehicle ownership in BRICS
Heavy duty diesel market strong and growing robustly
Jewellery resilient at higher prices
Supply challenges and under-investment will haunt the market
Platinum market will move into deficit whilst palladium deficit
grows significantly
17
One Team One Vision With Pride
Operational Review
David Brown
25/08/2011
10
One Team One Vision With Pride
Group safety
Fatal injury frequency rate Industry comparison*
19
0.12
0.10
0.08
0.12
0.05
0.00
0.05
0.10
0.15
(pe
r m
illio
n m
an
ho
urs
)
0.000
0.025
0.050
0.075
0.100
0.125
0.150
0.175
Implats Platinum industry
(per
mill
ion
man
hou
rs)
2007 2008 2009 2010 2011
*Calendar year statistics reported to the DMR
One Team One Vision With Pride
Group safety
Lost time injury frequency rate Total injury frequency rate
20
3.48
2.92 2.92
4.614.94
0.00
2.00
4.00
(per
mill
ion
man
hou
rs)
22.49
16.97
13.9515.21
13.47
0
5
10
15
20
25
(per
mill
ion
man
hou
rs)
25/08/2011
11
One Team One Vision With Pride
Group refined platinum production
21
941
175 71
99
142
159
249 1 836
-
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
Impala Zimplats Marula Mimosa Two Rivers Third Party Toll Total
Mine-to-market1 428 000 ozs
00
0 o
zIRS
408 000 ozs
One Team One Vision With Pride
Group unit cost per platinum ounce
22
R/P
toz
10 003
7 614
14 208
9 018 8 467
10 089 10 801
8 232
16 884
9 685 9 615
10 867
-
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
Impala Zimplats Marula Mimosa Two Rivers Group
FY10 FY11
R/P
t o
z
25/08/2011
12
One Team One Vision With Pride
Capital projects - Impala Rustenburg
20 Shaft– Different design – incline/decline spine layout– Over-optimistic planning parameters– Encountered bad ground conditions– Logistical constraints– Mining to recommence in FY2013
16 Shaft– Conventional layout– Development to reef commenced– Shaft equipping to commence FY2012– Mining to commence in FY2014
17 Shaft– Conventional layout– Refrigeration shaft sinking complete– Main and ventilation shafts still sinking– First production in FY2017
23
One Team One Vision With Pride
Capital projects - Zimplats
Phase 2 Expansion Project commenced
– Cost of $460 million
Increases production by 90 000 ounces to 270 000 ounces of
platinum
First production scheduled for FY2013 with full production in
the following year
24
25/08/2011
13
One Team One Vision With Pride
Financial Review
Brenda Berlin
One Team One Vision With Pride
Group Income Statement
R million FY2011 FY2010 % change
Sales 33 132 25 446 30
Cost of sales (21 490) (17 294) (24)
Gross profit 11 642 8 152 43
Gross margin 35 32 9
Royalty expenses (804) (536) (50)
Profit before tax 9 561 7 225 32
Profit 6 810 4 794 42
HEPS (cps) 1 105 786 41
25/08/2011
14
One Team One Vision With Pride
Operating costs per platinum ounce
10 089
10 867
672444
338
9 000
9 200
9 400
9 600
9 800
10 000
10 200
10 400
10 600
10 800
11 000
FY2010 Inflation Volumes Other FY2011
R/P
toz
One Team One Vision With Pride
Gross profit by entity
11 642
7 510
2 052692
1 419
(31)
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
Impala Zimplats Marula Mimosa IRS FY2011
R m
illio
n
25/08/2011
15
One Team One Vision With Pride
Group capital expenditure
29
Rbn
4 240
840
242186 32
5 540
0
1 000
2 000
3 000
4 000
5 000
6 000
Impala Zimplats Marula Mimosa Afplats Total
R m
illio
n
One Team One Vision With Pride
Movement in net cash position
1 730
1 622
8 285
5 289
897
493 2 700
-
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
Jun 2010 FY2010dividend
Operatingcash flow
Capex Interimdividend
Other Jun 2011
R m
illio
n
25/08/2011
16
One Team One Vision With Pride
Conclusion
David Brown
One Team One Vision With Pride
Implats’ scorecard
32
Safety Production Unit cost control Profitability Capital delivery Returns to shareholders
25/08/2011
17
One Team One Vision With Pride
Strategy
Remain a low cost / high margin producer
Organic growth opportunities– Zimplats Phase 2 and subsequent expansion
– Afplats
Capital projects - Investing for the future– Impala Rustenburg
– Zimplats
Optimisation of cost base– Zimplats
– Marula
One Team One Vision With Pride
Conclusion
Investing in our future
Maintaining a strong balance sheet
Focus on organic growth opportunities
Delivering low cost / high margin ounces
Positioned to benefit from the positive medium- to long-term
fundamentals for PGMs
25/08/2011
18
One Team One Vision With Pride
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 Implats’ operations, including the completion and commencement of commercial operations of
certain of Implats’ exploration and production projects, 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 result 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 exchange rates and business
and operational risk management. For a discussion on such factors, refer to the risk management section
of the company’s Annual Report. Implats is not obliged to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after the dates of the Annual Report or to
reflect the occurrence of unanticipated events. All subsequent written or oral forward-looking statements
attributable to Implats or any person acting on its behalf are qualified by the cautionary statements herein.
35
One Team One Vision With Pride
Annual results
for the year ended 30 June 2011
36
