Interim results FY2011implats.co.za/pdf/presentations/2011/presentation... · Rhodium ($/oz) 2 253...
Transcript of Interim results FY2011implats.co.za/pdf/presentations/2011/presentation... · Rhodium ($/oz) 2 253...
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One Team One Vision With Pride 1
Interim results FY2011For the half year ended 31 December 2010
One Team One Vision With Pride 2
Key features ‐ operational
• Safety performance unsatisfactory
• Gross refined platinum production
rose by 6% to 952 000 ounces
• Group unit costs excluding share
based compensation up 4% to
R10 271
• Capital expenditure increased by
11% to R2.4 billion as we continue
to invest in our future500
700
900
H1 FY10 H1 FY11
Production
000 oz
6%
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One Team One Vision With Pride 3
Key features ‐ financial
• Revenue up 38% to R15.3 billion
(US$2.1 billion)
• Cost of sales increased by 28%
to R10.3 billion
• Margins up 18% to 33%
• Headline earnings per share
increased 63% to R3.45
• Interim dividend of R1.50 per
share ‐
100
200
300
400
H1 FY10 H1 FY11
Headline Earnings
Cen
ts per share
63%
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Finance reviewDavid Brown
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Group Income Statement
R million H1 FY2011 H1 FY2010 % change FY2010
Sales 15 315 11 122 38 25 446
Cost of sales (10 294) (8 034) (28) (17 294)
Gross profit 5 021 3 088 63 8 152
Gross margin 33 28 18 32
Royalty expenses (417) (195) (114) (536)
Profit before tax 3 206 2 422 32 7 225
Profit 2 152 1 266 70 4 794
HEPS (cps) 345 212 63 786
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Operating costs
Rm
446
1 145
119
206
374
0
200
400
600
800
1 000
1 200
Inflation Volumes Strike Other Total
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Unit cost per platinum ounceR/Pt
oz
9 755
12 322
7 696 8 434 8 035
10 162
14 683
8 084 8 848
9 473
‐
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
Impala * Marula # Zimplats + Mimosa # Two Rivers #
H1 FY10 H1 FY11
* refined platinum # platinum in concentrate + platinum in matte
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Operating margins
Operation H1 FY2011 (%)
H1 FY2010 (%)
Impala 35 31
Zimplats 57 47
Marula 4 1
Mimosa 54 44
Two Rivers 22 24
IRS 11 12
Group 33 28
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Movement in net cash position
1 730
1 622
2 735
2 358
370
115
‐
500
1 000
1 500
2 000
2 500
3 000
Jun 2010 FY2010dividend
Operatingcash flow
Capex Other Dec 2010
Rm
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Capital expenditure
Rm
1844 88
365123 2420
0
500
1000
1500
2000
2500
3000
Impala Marula Zimplats Mimosa Total
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One Team One Vision With Pride 1111
Market reviewDerek Engelbrecht
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Sales volumes by metal
H1 FY2011 H1 FY2010 % change FY2010
Platinum (000oz) 801 694 15 1 435
Palladium (000oz) 477 466 2 945
Rhodium (000oz) 109 120 (9) 228
Nickel (000t) 8 7 22 13
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One Team One Vision With Pride 13
Average prices achieved – major metals
H1 FY2011 H1 FY2010 % change FY2010
Platinum ($/oz) 1 596 1 281 25 1 433
Palladium ($/oz) 554 298 86 376
Rhodium ($/oz) 2 253 1 764 28 2 149
Nickel ($/t) 21 795 16 032 36 18 981
Basket ($/Pt oz sold) 2 624 2 051 28 2 316
(R/Pt oz sold) 18 788 15 793 19 17 555
Exchange rate (R/$) 7.16 7.70 (7) 7.58
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Global vehicle sales
0 10 20 30 40 50 60 70 80
North America
Western Europe
Asia
Rest of World
Total
Millions2009 2010
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Platinum – ETFs and futures
‐
500
1 000
1 500
2 000
2 500
Jan 08 Jan 09 Jan 10 Jan 11
Thousands
NYMEX TOCOM
‐
200
400
600
800
1 000
1 200
1 400
Jan 08 Jan 09 Jan 10 Jan 11
Thousands
ZKB ETF JB US ETF
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Palladium – ETFs and futures
‐
500
1 000
1 500
2 000
2 500
Jan 08 Jan 09 Jan 10 Jan 11
Thousands
NYMEX TOCOM
‐
500
1 000
1 500
2 000
2 500
Jan 08 Jan 09 Jan 10 Jan 11
Thousands
ZKB ETF JB US ETF
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Platinum
000 oz 2011 est 2010 2009
Demand Automotive 3 640 3 280 2 950
Jewellery 2 150 2 120 2 410
Industrial 1 690 1 630 1 230
Investment 450 650 650
Total 7 930 7 680 7 240
Supply SA 4 910 4 750 4 580
Recycle (incl jewellery) 1 450 1 610 1 200
Russia 790 800 775
Other 800 650 575
Total 7 950 7 810 7 130
Supply/Demand Balance 20 130 (110)
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Palladium
000 oz 2011 est 2010 2009
Demand Automotive 5 500 5 100 4 170
Investment 500 1 050 500
Other 3 000 3 160 2 865
Total 9 000 9 310 7 535
Supply SA 2 800 2 590 2 470
Recycle 1 550 1 370 990
Russia 2 800 3 400 3 765
Other 1 290 1 490 980
Total 8 440 8 850 8 205
Supply/Demand Balance (560) (460) 670
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Rhodium
000 oz 2011 est 2010 2009
Demand Automotive 815 752 682
Industrial 165 148 113
Total 980 900 795
Supply SA 690 650 640
Recycle 230 215 185
Other 115 105 100
Total 1 035 970 925
Supply/Demand Balance 55 70 130
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Prospects
• Despite lingering uncertainty in world markets, momentum in
developing countries should provide support
• Auto industry much healthier than one year ago with a return
to more normal inventory levels
• Jewellery demand will consolidate at these price levels
• Investment holdings are expected to remain firm
• No significant increases in SA supply anticipated
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One Team One Vision With Pride 2121
Performance reviewDavid Brown
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Group safety
Fatal injury frequency rate Lost time injury frequency rate
0.12
0.10
0.08
0.12
0.08
0.00
0.05
0.10
0.15
(per million m
an hours)
3.48
2.92 2.92
4.61
4.95
0.00
2.00
4.00
(per million m
an hours)
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One Team One Vision With Pride 23
Refined production
Contribution by entity
000 oz 501
88
5038
6945
161 952
0
100
200
300
400
500
600
700
800
900
1000
Impala Zimplats Mimosa Marula Two Rivers Third Party Toll Total
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Impala
• Tonnes milled increased by 15%
• Merensky/UG2 ratio increased to 43%
• Refined platinum production rose by 16% to 501 000 ounces
• Productivity up 5%
• On‐reef development increased by 16%
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Zimplats
• Tonnes milled up 6% to 2.08 million
• Platinum in matte production increased by 9% to 89 000 ounces
• Phase 2 expansion on track
• Empowerment discussions on‐going
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Mimosa
• Operation at steady‐state production
• Tonnes milled and platinum in concentrate production
unchanged at 1.14 million and 51 000 ounces respectively
• Difficult ground conditions were encountered in the last
quarter
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Marula
• Tonnes milled up 9% to 888 000
• Platinum production in concentrate rose to 41 100 ounces
• Productivity declined by 9%
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Two Rivers
• Operation at steady‐state production
• Tonnes milled and platinum in concentrate production
unchanged at 1.48 million and 73 000 ounces respectively
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Capital projects
• 20 Shaft – delivered first ounces in January 2011
• 16 and 17 Shafts – sinking and development on‐going
• Zimplats Phase 2 – project commenced
• Leeuwkop – bankable feasibility study is on‐going
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ConclusionDavid Brown
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One Team One Vision With Pride 31
Conclusion
• Market outlook continues to improve
• Production largely on track at all operations
• Capital delivery on‐going
• Safety and costs remain focus of attention
• Group well positioned
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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.
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One Team One Vision With Pride 33
Interim resultsfor the half year ended 31 December 2010
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