Atlatsa Results FY2014 v5 31 March...
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31 March 2015
Transcript of 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%
| 31 March 2015Annual results for the year ended 31 December 2014 4
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
| 31 March 2015Annual results for the year ended 31 December 2014 5
Operational performance
| 31 March 2015Annual results for the year ended 31 December 2014 6
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 $m 35.1 51.2 (31.5)
Operating cost/tonne milled ZAR/t 1,284 1,197 (7.3)
Operating cost/4E oz ZAR/4E oz 11,540 10,728 (7.6)
Lost-time injury frequency rate (LTIFR) Per 200,00 hours worked 0.98 0.90 (8.9)
Operational performance
| 31 March 2015Annual results for the year ended 31 December 2014 7
708 706 568890 977
336 342296
423481
213285
2010 2011 2012 2013 2014
Tonnes milled (‘000t)
Merensky UG2 Opencast
75 72 6299 110
42 40 41
5864
1420
2010 2011 2012 2013 2014
4E PGM ounces produced (‘000oz)
Merensky UG2 Opencast
8,888
11,009
12,902
10,728 11,540
2010 2011 2012 2013 2014
Operating cost/4E oz (ZAR)
10,292 10,549
7,550
11,054 10,735
2010 2011 2012 2013 2014
Primary development (m)
Ramp-up of underground projectson track• 160,000tpm concentrator milling rate achieved
• Phase I underground development plan of 130,000tpm achieved
• Opencast operation working as a mill gap filler
| 31 March 2015Annual results for the year ended 31 December 2014 8
Total
Brakfontein
Capex ($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
| 31 March 2015Annual results for the year ended 31 December 2014 9
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
| 31 March 2015Annual results for the year ended 31 December 2014 10
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
| 31 March 2015Annual results for the year ended 31 December 2014 11
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• $31.0m to be spent in 2015 on
Brakfontein and Middelpunt Hill operations
| 31 March 2015Annual results for the year ended 31 December 2014 12
Expressed in Canadian Dollars ($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
| 31 March 2015Annual results for the year ended 31 December 2014 13
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
| 31 March 2015Annual results for the year ended 31 December 2014 14
“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
| 31 March 2015Annual results for the year ended 31 December 2014 16
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
| 31 March 2015Annual results for the year ended 31 December 2014 17
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
| 31 March 2015Annual results for the year ended 31 December 2014 18
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]
