Atlatsa Results FY2014 v5 31 March...

31 March 2015

Cautionary and forward-looking information

This presentation contains “forward-looking statements” that were based on Atlatsa’s expectations, estimates and projections as of the

dates as of which those statements were made, including statements relating to the Restructure Plan and anticipated financial or

operational performance. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such

as “may”, “will”, “outlook”, “anticipate”, “project”, “target”, “believe”, “estimate”, “expect”, “intend”, “should” and similar expressions.

Atlatsa believes that such forward-looking statements are based on material factors and reasonable assumptions, including the

assumption that the opencast mining and accelerated development of underground shafts will have anticipated positive impacts.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s

actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-

looking statements. These include but are not limited to, uncertainties related to market conditions, continued availability of capital,

exploitation successes and the mine continuing to operate as anticipated.

Additional information on Atlatsa, including the Company’s Annual Report on Form 20-F for the year ended December 31, 2014, is

publicly available on the System for Electronic Document Analysis and Retrieval at www.sedar.com and on the United States of

America’s Securities and Exchange Commission’s Electronic Gathering and Retrieval System at www.sec.gov.

Annual results for the year ended 31 December 2014 2| 31 March 2015

Operational and financial snapshot

• 21% increase in revenue to $237.4 million

• Total tonnes milled up 14% to 1,743,781

• 194,036 4E PGM ounces produced up 14%

• 160,000tpm concentrator milling rate achieved

• Cash unit cost increase below mining inflation

• Loss per share down to (5) cents

• Disappointing safety performance with lost-time injuryfrequency rate (LTIFR) at 0.98

| 31 March 2015Annual results for the year ended 31 December 2014 3

Safety and health of our employees

Safety

• Zero fatalities in the 2014 financial year

• 9% increase in lost-time injuries mainly due to non-adherence to safety standards and procedures

• Safety awareness and training intensified

Health• Voluntary HIV/Aids counselling and testing

enrolment increased by 70%

• Reportable TB cases down 12% with increased awareness campaigns

• Reportable occupational disease cases down 50%


2.11

1.87

1.48

0.90.98

0

0.5

1

1.5

2

2.5

2010 2011 2012 2013 2014

LTIFR 2010-2014 including serious injuries

Stakeholders relations at the mine

Labour• Zero days lost to industrial unrest• Recognised unions are NUM (majority union),

TAWUSA and UASA• Majority of labour sourced from surrounding communities

Communities

• Spent $0.6 million (R6.5 million) on Social and Labour Plan initiatives during 2014

• Bursaries allocated for mining engineering studies• Community portable skills ranging from carpentry,

sewing, welding and bricklaying• Supporting foundational-phase learning with

a community crèche• Monametse Village housing project completed

in mid-2014


Operational performance


FY2014 FY2013 % Change

Tonnes milled t 1,743,781 1,525,945 14.3

Recovered grade g/t milled, 4E 3.58 3.56 0.6

4E oz produced oz 194,036 170,295 13.9

UG2 milled to total milled % 27.60 31.98 (13.7)

Primary development to total output m 10,735 11,054 (2.9)

Capital expenditure $m 35.1 51.2 (31.5)

Operating cost/tonne milled ZAR/t 1,284 1,197 (7.3)

Operating cost/4E oz ZAR/4E oz 11,540 10,728 (7.6)

Lost-time injury frequency rate (LTIFR) Per 200,00 hours worked 0.98 0.90 (8.9)

Operational performance


708 706 568890 977

336 342296

423481

213285

2010 2011 2012 2013 2014

Tonnes milled (‘000t)

Merensky UG2 Opencast

75 72 6299 110

42 40 41

5864

1420

2010 2011 2012 2013 2014

4E PGM ounces produced (‘000oz)

Merensky UG2 Opencast

8,888

11,009

12,902

10,728 11,540

2010 2011 2012 2013 2014

Operating cost/4E oz (ZAR)

10,292 10,549

7,550

11,054 10,735

2010 2011 2012 2013 2014

Primary development (m)

Ramp-up of underground projectson track• 160,000tpm concentrator milling rate achieved

• Phase I underground development plan of 130,000tpm achieved

• Opencast operation working as a mill gap filler


Total

Brakfontein

Capex ($m) 18 14 14 13 6 3 2 70Ounces 54,817 71,358 85,690 89,190 92,897 98,703 140,502

Tonnes milled 485,687 589,990 718,049 727,942 752,000 819,821 1,175,000

2014 2015 2016 2017 2018 2019 2020

Middelpunt Hill

Capex ($m) 9 17 13 13 7 4 2 65Ounces 63,917 54,617 65,991 77,956 94,881 95,399 96,700

Tonnes milled 481,324 429,404 516,548 609,791 716,660 728,796 710,602

“Steady-state production to be

achieved by 2020”

Financial performance


Expressed in Canadian Dollars (000) FY2014 FY2013 % Change

Revenue 237,391 195,621 21.4

Cash operating costs – Bokoni (227,981) (195,911) (16.4)

Cash operating profit/(loss)* – Bokoni 9,410 (290) 3,344.8

EBITDA** – Bokoni 1,975 21,558 (90.9)

Cash (utilised by)/generated from operations (11,969) 9,124 (231.2)

(Loss)/profit after tax (49,550) 99,869 (149.6)

Non-controlling interest (24,940) (99,623) 75.0

Loss attributable to Atlatsa shareholders (24,609) 199,492 (112.3)

Basic (loss)/earnings per share – cents (5) 47 (110.6)

Headline (loss) per share** – cents (4) (10) 60.0

* Cash operating profit/ (loss) before depreciation and amortization

**FY2013 EBITDA and headline loss per share include a $244m net profit on sale of various mineral properties

Financial performance


148 144 118

196

237

-

50

100

150

200

250

-

50

100

150

200

250

2010 2011 2012 2013 2014

Revenue ($000)

0

50

100

150

200

250

-

50

100

150

200

250

2010 2011 2012 2013 2014

Revenue to cash on-mine costs ($000)

Revenue Cash on mine costs

-12

-19

-4

-10

-4

-20-18-16-14-12-10

-8-6-4-20

2010 2011 2012 2013 2014

Core earnings per share (cents)

-16

-41

-31

9

-12

-50

-40

-30

-20

-10

-

10

20

2010 2011 2012 2013 2014

Cash generated from / (utilised by) operations ($000)

Cash unit cost increase below mining inflation


1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,197 10 11 2 55 10 1,284

2013 Actual Labour Stores Utilities Contractors Sundries 2014 Actual

R/T

onne

R/tonne delivered

Balance sheet and capital expenditure

Balance sheet• Cost management and capital discipline remain a key focus area• Finance charges lower to $16m in FY2014 from $56m in FY2013 due to finalisation

of Restructure Plan in Q1 2014• $8m cash on hand as at 31 December 2014• $42m additional financial support from Anglo American Platinum Limited (Anglo Platinum)

Capital expenditure• $35.1m spent in 2014• $31.0m to be spent in 2015 on

Brakfontein and Middelpunt Hill operations


Expressed in Canadian Dollars ($m) Less than one year 1 to 3 years 3 to 5 years More than 5 years

Long-term debt obligations 7 190 143 –

4 14 14 17

10

24 15

25 35

25

-

10

20

30

40

2010 2011 2012 2013 2014

$m

Stay-in-business Capital Project Capital

Relationship with Anglo Platinum

Anglo repositioning its portfolio

• Atlatsa continuing discussions with Anglo Platinum and the Department of Mineral Resources surrounding:

• Long-term sustainability of Bokoni Mine

• Atlatsa’s growth plans to scale-up Bokoni operations from 160,000tpm

• funding committed for 160,000tpm underground steady-state operation

• Anglo Platinum’s announced intention to divest from its minority, non-management interest in Bokoni

• Atlatsa and Anglo Platinum remain joint venture partners in Bokoni


Outlook

Safety and health• Safety and health remain focus areas for the Mine• Contractor training to ensure adherence to safety standards and procedures• Wellness campaign drivesRelationship with Anglo Platinum• Discussions ongoingOperations• Mining flexibility and crew efficiencies improving• Disciplined capital allocation and cost management• Operating unit cost increases to remain below mining inflation• Future growth potential to deliver 250,000tpm steady state operation Stakeholder relations• Wage negotiations mid-2016• Ongoing discussions with communities surrounding the Klipfontein opencast operation


“Evolution from a juniorto a mid-tier producer”

Additional information

Annual results for the year ended 31 December 2014 15| 31 March 2015

Abridged income statement


Expressed in Canadian Dollars (000) FY2014 FY2013 % Change

Revenue 237,391 195,621 21.4

Cost of sales (264,758) (233,776) (13.3)

Gross loss (27,367) (38,155) 28.3

General, administrative and other expenses (12,742) 197,940 (106.4)

Operating (loss)/profit (40,110) 159,785 (125.1)

Net finance costs (15,973) (56,062) 71.5

Income tax expense 6,532 (3,853) 269.5

(Loss)/profit for the period (49,550) 99,869 (149.6)

Loss attributable to Atlatsa shareholders (24,609) 199,492 (112.3)

Basic (loss)/earnings per share – cents (5) 47 (110.6)

Headline (loss)/earnings per share – cents (4) (10) 60.0

Abridged statement of financial position


Expressed in Canadian Dollars (000) FY2014 FY2013

Total assets 720,825 773,629

Non-current assets 695,644 698,553

Current assets 25,180 75,076

Total equity 415,206 379,114

Share capital 309,660 71,967

Other 10,696 173,593

Retained earnings (89,283) (64,674)

Non-controlling interests 184,134 198,228

Total liabilities 305,619 394,515

Non-current liabilities 260,788 245,940

Current liabilities 44,830 148,575

Total shareholders equity and liabilities 720,825 773,629

Current liabilities of $45m exceed current assets of $25m as a result of the backlog of trade payables owing to Anglo Platinum The amount will be deferred and paid as part the New Senior Debt Facility

Abridged Group cash flow


Expressed in Canadian Dollars (000) FY2014 FY2013

Cash (utilised by)/generated from operations (11,969) 9,124

Net finance costs (1,405) 205

Income tax paid (353) (7,044)

Net cash from operating activities (13,727) 2,286

Expenditure on capital work-in progress (31,740) (50,987)

Proceeds on disposal of assets held for sale − 171,600

Proceeds from loans and borrowings 14,795 314,088

Payment of loans and borrowings (75,366) (621,960)

Acquisition of shares in Bokoni 207,520

Common shares issued 74,783 −

Foreign currency translation effect (526) 3,791

Other (368) (263)

Net increase/(decrease) in cash and cash equivalents (32,507) 26,074

Contact details

Prudence Lebina

Head of Investor Relations

Tel: +27 11 779 6800

Email: [email protected]

Atlatsa Results FY2014 v5 31 March...

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