annual results presentation fy2010 (final) · 2017-08-18 · -our vision remains zero harm-our...
TRANSCRIPT
8/26/2010
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Annual resultsAnnual resultsfor the year ended 30 June 2010
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AgendaAgenda
» Overview
David Brown
2
a d o
» Market review
Derek Engelbrecht
» Performance review
David Brown
» Financial reviewa c a e e
Dawn Earp
» Conclusion
David Brown
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Key features Key features -- operationaloperational3
» Safety performance
unsatisfactory Production
» Gross refined platinum
production rose by 2% to
1.74 million ounces
» Group unit costs excluding
share based compensation up
11% R10 089 1200
1400
1600
1800Production
000 o
z
11% to R10 089
» Group capital expenditure
decreased by 34% to
R4.6 billion
1000
FY09 FY10
Key features Key features -- financialfinancial
» Revenue down 3% to R25.4 billion
(US$3.4 billion)500
Dividends
» Cost of sales increased by 6%
to R17.3 billion
» Gross profit declined 16% to
R8.2 billion
» Headline earnings per share 100
200
300
400
500
Cen
ts p
er s
har
e
decreased 22% to R7.86
» Final dividend of R2.70 per share;
R3.90 for the year
-
FY09 FY10
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5
Market reviewMarket reviewDerek Engelbrecht
OverviewOverview6
» Sales volumes and prices achieved
» 2009 – In review
» 2010 – Back on track
» Prospects for the year ahead
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Sales volumes by metalSales volumes by metal
FY2010FY2010 FY2009FY2009 % change% change
Platinum (000oz) 1 435 1 503 (5)
Palladium (000oz) 945 781 21
Rhodium (000oz) 228 180 27
Nickel (000t) 13 14 (7)
Average prices achieved Average prices achieved –– major metalsmajor metals
FY2010FY2010 FY2009FY2009 % change% change
Platinum ($/oz) 1 433 1 219 18($/ )
Palladium ($/oz) 376 263 43
Rhodium ($/oz) 2 149 3 517 (39)
Nickel ($/t) 18 981 12 995 46
Basket ($/Pt oz sold) 2 316 1 995 16
(R/Pt oz sold) 17 555 17 217 2
Exchange rate (R/$) 7.58 8.63 (12)
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2009 in review2009 in review9
Vehicle salesVehicle sales
000 units 20092009 20082008 % Change% Change
North America 12 616 15 880 (20.6)
Western Europe 14 966 15 379 (2.7)
Asia 22 913 18 688 22.6
Rest of World 13 376 16 051 (16.7)
Total sales 63 871 65 998 (3.2)
Total production 59 400 67 300 (11.7)
2009 in review2009 in review10
SGE volumesSGE volumes
kgs
10 000
15 000
20 000
25 000
30 000
-
5 000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008 2009
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2009 2009 in reviewin review11
NymexNymex/TOCOM /TOCOM -- PlatinumPlatinum
800
1 200
1 600
2 000
000 o
z
-
400
NYMEX TOCOM
2009 in review2009 in review12
NymexNymex/TOCOM /TOCOM -- PalladiumPalladium
600
800
1 000
1 200
1 400
1 600
1 800
000 o
z
-
200
400
NYMEX TOCOM
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2009 in review2009 in review13
Platinum ETFsPlatinum ETFs
200
300
400
500
600
700
800
000 o
z
-
100
200
Jan-09 Apr-09 Jul-09 Oct-09
ETFs ZKB
Dec -09
2009 2009 in reviewin review14
Palladium ETFsPalladium ETFs
450
600
750
900
1 050
1 200
1 350
000 o
z
-
150
300
Jan-09 Apr-09 Jul-09 Oct-09
ZKB ETFs
Dec -09
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2010 2010 –– Back on trackBack on track15
Auto production Auto production –– major marketsmajor markets
HH1 20101 2010 H1 2009H1 2009 % Change% Change
North America 5 758 3 546 66.6
Western Europe 6 785 5 631 20.5
Asia 17 479 12 318 41.9
Rest of World 6 049 5 023 20.4
Total production 36 071 26 429 36.5
Total sales 35 204 30 518 15.4
PlatinumPlatinum
000 000 ozoz 2010 2010 EstEst 20092009 20082008
Demand Automotive 3 350 2 950 3 830
Jewellery 2 145 2 410 1 355
Industrial 1 395 1 230 1 755
Investment 550 650 425
Total 7 440 7 240 7 365
Supply SA 4 765 4 580 4 485
Recycle 900 850 970Recycle 900 850 970
Russia 800 775 800
Other 805 925 1 075
Total 7 270 7 130 7 330
Supply/Demand Balance (170) (110) (35)
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PalladiumPalladium
000 oz000 oz 2010 2010 EstEst 20092009 20082008
Demand Automotive 4 710 4 170 4 940
Other 3 740 3 365 3 620
Total 8 450 7 535 8 560
Supply SA 2 525 2 470 2 355
Recycle 1 420 990 1 085
R i 3 135 3 765 3 750Russia 3 135 3 765 3 750
Other 1 065 980 1 180
Total 8 145 8 205 8 370
Supply/Demand Balance (305) 670 (190)
RhodiumRhodium
000 oz000 oz 2010 2010 EstEst 20092009 20082008
Demand Automotive 718 682 759Demand Automotive 718 682 759
Industrial 148 113 136
Total 886 795 895
Supply SA 668 642 582
Recycle 200 185 222
Other 108 101 106Other 108 101 106
Total 976 928 910
Supply/Demand Balance 110 133 15
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ProspectsProspects
» Economic growth will continue but at a
measured pace
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measured pace
» Jewellery growth will remain steady
» Supply challenges and under-investment
will haunt the market
» Platinum market will continue in deficit
» Palladium market moves into deficit
» Investor outflows will signal return to
risk/growth
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Performance reviewPerformance reviewDavid Brown
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Group safetyGroup safety
Fatal injury frequency rateFatal injury frequency rate Lost time injury frequency rateLost time injury frequency rate
21
0.06
0.12
0.10
0.08
0.12
0.05
0.10
0.15
ion m
an h
ours
) 3.41 3.48
2.92 2.92
4.61
2.00
4.00
lion m
an h
ours
)
0.00
(per
mill
0.00(p
er m
il
Bradley Curve FY2010Bradley Curve FY2010
DuPont’s assessmentof Impalaof Impala
1 2 3 4 5
Reactive Dependent Independent Interdependent
Natural Instinct Supervision Self-Empowerment Teams
Edict Control Acceptance Compliance Commitment Dedication
1 2 3 4 5
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SafetySafety
» The way forward
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- Our vision remains zero harm
- Our initial goal remains zero
lost-time injuries in every area
- Safety training
Visible safety behaviour- Visible safety behaviour
ProductionProduction24
231 1 741
1 800
2 000 Contribution by entity
871 68
154 94
135
188
400
600
800
1 000
1 200
1 400
1 600
000 o
z
-
200
400
Impala Marula Zimplats Mimosa Two Rivers
Third Party
Toll Total
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Future production growthFuture production growth25
2 000
500
1 000
1 500
000 o
z
-
500
FY10 FY11 FY12 FY13 FY14 FY15
Impala Marula Zimplats Mimosa Two Rivers IRS
Group unit cost per platinum ounceGroup unit cost per platinum ounce26
49690 10 089
10 000
10 500
9 129
374 9 592
8 000
8 500
9 000
9 500
0 000
R/o
z
7 000
7 500
FY2009 Inflation Volumes Other FY2010 "Normalised"
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Unit cost per platinum ounceUnit cost per platinum ounce27
14 208 14 000
16 000
R/P
to
z
8 559
11 730 11 740
9 454 8 830
10 003
7 614
9 018 8 463
4 000
6 000
8 000
10 000
12 000
-
2 000
Impala Marula Zimplats Mimosa Two Rivers
FY09 FY10
Cost strategy going forwardCost strategy going forward
In the current environment,
cost containment is fundamental
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to the sustainability of the
company
The key focus areas to address this are:
» Production
» Productivity
» Cost saving initiatives
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Capital expenditureCapital expenditure29
698 127 13 4 554
4 500
5 000
3 435
281
1 000
1 500
2 000
2 500
3 000
3 500
4 000
Rbn
-
500
1 000
Impala Marula Zimplats Mimosa Afplats Total
Capital projects Capital projects –– Impala RustenburgImpala Rustenburg
» 9 million platinum ounces
30
9 o p a u ou ces
» No acquisition cost
» No infrastructure cost
» Extension of existing operations
» Secure labour force
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Capital projects Capital projects –– Impala RustenburgImpala Rustenburg
ShaftShaft 2020 1616 1717
Cost (Rbn) 6.8 7.2 11.1
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Cost (Rbn) 6.8 7.2 11.1
Completion date FY17 FY19 FY23
Full production (000 Pt oz) 150 000 180 000 180 000
First production date FY11 FY13 FY17
Project status
Shafts- Main- Ventilation- Refrigeration
CommissionedCommissioned
-
SunkSunk
-
50% sunk80% sunk93% sunk
Capital projects Capital projects -- ZimplatsZimplats
» Phase 2 Expansion Project
- Cost of $450 million
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$
» Increases production by
90 000 ounces to 270 000
ounces of platinum
» Project has commenced and
is scheduled for completion
by 2014
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Finance reviewFinance reviewDawn Earp
Gross Gross profit movementprofit movement
1 844
12 000
14 000
9 762
1 102
1 2183 621
1 054
995 104
8 152
4 000
6 000
8 000
10 000
Rm
-
2 000
FY2009 Revenue volumes
Revenue Prices
Revenue Exchange
rate
Operating Cost
Share based compensation
Depreciation Metals Purchased
(incl change in stock)
FY2010
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Gross profit by Gross profit by entityentity
421
1 1888 000
9 000 8 152
5 368 16
1 159421
2 000
3 000
4 000
5 000
6 000
7 000
Rm
-
1 000
2 000
Impala Marula Zimplats Mimosa IRS FY2010
Headline earningsHeadline earnings
6 0156 000
6 500
263 842
1 610
792
4 718
3 000
3 500
4 000
4 500
5 000
5 500
Rm
2 000
2 500
3 000
FY2009 Gross profit Exchange gain Net finance income
Taxation and Other
FY2010
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Headline earningsHeadline earnings
5 285
6 000
1 274
3 444
2 000
4 000
Rm
730
-
H1 FY2009 H2 FY2009 H1 FY2010 H2 FY2010
Movement in cash net of debt Movement in cash net of debt
6 000
7 000 5 918 4 412
1 363 H1: 2 440
H1: 2 211
1 730
H2: 3 478
H2: 2 201
2 000
3 000
4 000
5 000
Rm
781
1 202
718
-
1 000
Jun 2009 FY2009 dividend
Operating cash flow
Capex FY2010 int dividend
Other Jun 2010
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ConclusionConclusionDavid Brown
Implats’ scorecardImplats’ scorecard40
Safety Safety Production Unit cost control Zimbabwe Returns to shareholders
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ConclusionConclusion
» Implats has maintained a strong balance
sheetsheet
» Growth profile to 2.1 million ounces of
platinum by 2014 remains unchanged
» The group is positioned to benefit from the
positive medium- to long-term
f d t l f PGMfundamentals for PGMs
» Growth opportunities exist throughout the
group
ForwardForward--looking statementlooking 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
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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.
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Annual resultsAnnual resultsfor the year ended 30 June 2010
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