interims presentation - draft 8.ppt [read-only] · 9 17 income statement (1) cost of sales 2 719 2...
TRANSCRIPT
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INTERIM RESULTSFEBRUARY 2002
2
Highlights
Sales volumes up 13%Solid operational performanceGrowth projects on track
Good performance as attributable income and headline earnings rise by 2.4%, despite
$ price market index decreasing by 35%
2
3
Interim headline EPS and DPS
30460
683
170
1 137
340
3 238
1 420
3 303
1 100
0500
100015002000250030003500
1997 1998 1999 2000 2001
EPS DPS
SA c
ents
4
Key ratios
71.0
82.6
57.2
FY 01
53.355.8Return on assets (%)
55.865.3Return on equity (%)
44.348.7Gross margin achieved (%)
FY 00FY 02Interims
3
5
Group structure
Implats
Impala Platinum
Winnaars-hoek
Barplats Aquarius Limited
Two Rivers Mimosa Lonplats
Impala Refining Services (IRS)
Zimplats
Toll refining
100% 100% 83% 10% 45% 15% 35% 27%
100%
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Income streams
Implats’ attributable
income R2 192 m
Mining operationsR1 494 m (68%)
Impala Refining Services (IRS) Income from
processing 3rd party concentrates R315 m (14%)
Income from Lonplats
R383 m (18%)
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7
THE MARKET
8
Market overview
Impact of slowing economies counteracted by resilience in Chinese jewellery and
US/European car markets
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9
Sales volumes
200300400500600700800900
1000
2000 2001Pt Pd Rh
000 oz +13% growth
Dec 2000 Dec 2001
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Average price achieved for six months
(30.5)1 243864Basket price ($/oz)
(33.8)7 7325 122Nickel ($/ton)
(37.9)2 0431 268Rhodium ($/oz)
(44.5)718399Palladium ($/oz)
(17.7)572471Platinum ($/oz)
%Dec 00Dec 01
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11
Platinum supply and demand
0
1000
2000
3000
4000
5000
6000
7000
1996 1997 1998 1999 2000 2001 2002
InvestmentIndustrialJewelleryAutomobileSupply
‘000
oz
Forecast
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Palladium supply and demand
‘000
oz
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1996 1997 1998 1999 2000 2001 2002
OtherDentalElectronicsAutomobileSupply
Forecast
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13
Outlook
Fundamentals for platinum remain sound in medium to long term– Supported by auto and jewellery markets– South African expansions required to
balance market– Further upside – fuel cells, Indian jewellery
market and even stronger growth in ChinaFuture of palladium hinges in short term on Russian activity– Lower, more stable price scenario could
underpin demand
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FINANCIALS
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15
Turnover
(1.5)5 3845 301Turnover%Dec ‘00Dec ‘01R million
898Exchange rate(1 642)Metal prices
661Sales volumes
83
16
Average R/$ exchange rate achieved
6.11
7.289.06
11.60
0
2
4
6
8
10
12
Dec-99 Dec-00 Dec-01 Current
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Income statement (1)
(16.4)2 3362 719Cost of sales(1.5)5 3845 301Turnover
%Dec ‘00Dec ‘01R million
Gross cash costs up 12.8%Impala cash costs rise 8.8%– Refining costs increased by only 4.4%
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Income statement (2)
2.42 1402 192Attributable income
(447)(338)Royalties
2.03 2383 303Headline EPS (cents)5749Gross margin (%)
1 1831 020Taxation
3 3213 217Income before taxation
22.9494606Income from Lonplats
31231Other income
(16.4)2 3362 719Cost of sales(1.5)5 3845 301Turnover
%Dec ‘00Dec ‘01R million
10
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Capex
0
500
1000
1500
2000
2500
FY00 FY01 FY02
R783 m
R2 090 m
Rand (million)
R1 300 m
2nd half
1st half 1st half
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Dividend policy
Remains unchanged at 1.9 times cover on a proposed basisSplit remains approximately one-third payout at interimsCash balances reduced:– Provisional tax payment R1.3 billion– Acquisitions R750 million– Dividends FY 2001 R4.5 billion
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REVIEW OF OPERATIONS
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Impala Platinum - Safety
Three of four fatal accidents related to FOGDuPont implementing Behavioural Safety Management ProgrammeFive Platinum Rules implemented in January
00.050.1
0.150.2
0.25
FY98FY99
FY00FY01
FY02 in
terim
s
Pt industr
y ave
Ontario ben
chmark
Fatal injury frequency
rate
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Production
21.0143173Impala Refining Services
(1.7)516507Pt from Impala lease area
3.2659680Total platinum
%Dec ‘00Dec ’01‘000 oz
2.38688Toll-refining
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Impala Platinum – Mining operations
Tons milled down 3.8%Headgrade increase of 3%Unit cost/oz platinum up 9.6%– Wage increase of 9% (two-year
agreement)– Excluding increase in insurance costs
and promotional expenditureProductivity maintained at 42m2 per panel employeeSurface stockpile substantially reduced to date
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Impala Platinum - Processing and refining
Mineral ProcessesUG2 plant– Upgrade completed with 30% increase in
throughput– Recoveries marginally better than
pre-upgradeOverall metal recoveries up 2.8%
RefineriesGood performanceFirst-pass yields on all metals highest in the industry3% real reduction in unit costs
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Management of HIV/AIDS
Ongoing education and management programmesPrevalence level of 16-17% Focus on new recruits, surrounding communities
0
1400
2800
4200
5600
7000
8400
9800
11200
12600
14000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 20100%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
WORST CASE
BEST CASE
Actual Impala HIV data
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27
Crocodile River
Satisfactory safety performance - three lost time injuriesConcentrator recoveries improved to above 70%First underground ore by April 200222 000 oz platinum for half-year– on target
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Impala Refining Services
Continues to deliver excellent growthFirst concentrates from Messina in AugustFirst concentrates from Zimplats in December Autocatalyst recycling continues to growHigh return on investment
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Marula Platinum (Winnaarshoek)
New name through consultationMine plan and capex being finalisedTwo-stage build-up to capacityEMPR approved in DecemberStoping operations to commence in 2003Concentrator will be operational in 2004
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STRATEGIC INTERESTS AND ALLIANCES
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Aquarius
LOM contracts for additional concentrate from Kroondal and Marikana being finalised (140 000 Pt oz) Restructuring and refinancing of Aquarius SA expected by end Feb– Conversion of debt into equity raising
Implats’ stake – Subject to regulatory/shareholder
approval
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Lonplats
Attributable production to grow to 250 000 platinum oz by 2006Excellent contribution to cash flow
Stake now worth approximately R10 billion
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Two Rivers
Evaluation drilling in progressBulk sample extracted in January 2002Feasibility to be completed in second half of the yearExpected output of 100 000 platinum oz per annum by 2004
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Zimplats
77km Ngezi to Selous road completeFirst ore delivered to SMCSMC concentrator operationalProduction of 98 000 platinum oz by 2002
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Mimosa Platinum
Expansion project has commenced
Production increase to 68 000 platinum oz per annum by 2003
Good prospects for further growth
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Exploration/Development
Kennedy’s Vale (SA)Birch Lake JV (USA)Franconia Minerals Corporation (USA)River Valley (Canada)Cana Brava (Brazil)
Philnico (Philippines)– Project now closed out
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PROSPECTS
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Prospects
Given malaise in world economy, pgm market has remained satisfactory Outlook for platinum particularly soundDevaluation of Rand will have positive impact on earnings in second halfGrowth strategy – 2 million platinum oz by 2006
FY2002 earnings marginally below record levels of FY2001
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INTERIM RESULTSFEBRUARY 2002