2009 Financial Results Presentation Stuart Murray, CEO ......PGM Prices Pt, Pd & Au ($/oz) Rh ($/oz)...

2009 Financial Results PresentationStuart Murray, CEO

12 A 200912 August 2009

2009 - Highlights

● Attributable production for year at 455,675 PGM 4E ouncesan equivalent 13% increase year-on-year (excluding Everest & Platinum Mile)

● Revenue decreased 66% to $311 million as prices collapsed in 1H 2009, however, sustained recovery in $ PGM prices through 2H 2009 from October 2008 lows

Net profit of $24 4 million achieved in 2H reduced full year loss to $45 7 million● Net profit of $24.4 million achieved in 2H reduced full year loss to $45.7 million

● Completed capital base restructure with overwhelming shareholder support

● Group debt reduced to $82 million from $210 million● Group debt reduced to $82 million from $210 million

● Completion of acquisition of Ridge Mining (July 2009)

● Completion of Phase 5 5 expansion at Mimosa Mine● Completion of Phase 5.5 expansion at Mimosa Mine

● Expansion of Aquarius exploration portfolio

● Conclusion of First Plats transaction● Conclusion of First Plats transaction

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PGM Prices

Rh ($/oz)Pt, Pd & Au ($/oz)

10,000

12,000

2,000

2,500

6,000

8,000

1 000

1,500

2,000

4,000

500

1,000

00Jun 08 Sep 08 Dec 08 Mar 09 Jun 09

Platinum Palladium Gold Rhodium

4

PGM Basket Prices

R/oz$/oz

20,000

25,000

2,500

3,000

15,0001,500

2,000

5,000

10,000

500

1,000

00Jun-08 Sep-08 Dec-08 Mar-09 Jun-09

South Africa $4PGM Zimbabwe $4PGM South Africa R4PGM

5

Aquarius Basket Prices

South Africa Zimbabwe

Pt Pd38%Pt Pd

29%

South Africa Zimbabwe

51%

Au 7%

60%

Au 1%

Rh 10%

Rh 4%

FY 2009: $1,044 PGM 4E/oz FY 2009: $931 PGM 4E/ozFY 2009: $1,044 PGM 4E/ozFY 2008: $1,890 PGM 4E/oz

Ir/Ru Cr2O3Ni/Cu

FY 2009: $931 PGM 4E/ozFY 2008: $ 1,358 PGM 4E/oz

Ir/Ru Ni/Cu/Co

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Rand : Dollar

FY2009 average: 9 03FY2009 average: 9.03FY2008 average: 7.23

11 00

12.00

31 July 2008: 7.71 30 June 2008: 7.76

9.00

10.00

11.00

7.00

8.00

5.00

6.00

Jun 08 Sep 08 Dec 08 Mar 09 Jun 09

7

Group Production

PGMs 4EQuarter Ended Full Year Ended

Quarter 1 Quarter 2 Quarter 3 Quarter 4 FY 2008 FY 2009

Production by Mine

Quarter 1 Quarter 2 Quarter 3 Quarter 4 FY 2008 FY 2009Kroondal 101,731 109,707 104,920 105,720 391,117 422,078

Marikana 38,883 42,451 38,851 37,753 125,583 157,938

Everest 32,365 31,703 - 157,994 64,068

Mimosa 43 638 43 232 46 278 46 874 150 832 180 022Mimosa 43,638 43,232 46,278 46,874 150,832 180,022

CTRP 1,764 1,784 1,587 1,689 9,850 6,824

Platinum Mile 5,983 3,103 2,788 4,479 7,041 16,353

Total 224,364 231,980 194,424 196,515 842,417 847,283

PGMs 4EQuarter Ended Full Year Ended

Quarter 1 Quarter 2 Quarter 3 Quarter 4 FY 2008 FY 2009

Production by Mine Attributable to Aquarius

Kroondal 50,866 54,854 52,460 52,859 195,558 211,039

Marikana 19,442 21,226 19,426 18,875 62,791 78,969

Everest 32,365 31,703 - 157,994 64,068

Mimosa 21,819 21,616 23,139 23,437 75,416 90,011, , , , , ,

CTRP 882 892 793 845 4,924 3,412

Platinum Mile 2,992 1,552 1,394 2,238 3,520 8,176

Total 128,366 131,843 97,212 98,258 500,203 455,675

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PGM 4E Ounces (000’s)

500

600Everest

CTRP

400

CTRP

Mimosa

200

300Platinum Mile

M ik

0

100Marikana

Kroondal0

2002 2003 2004 2005 2006 2007 2008 2009

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The prior year that nobody saw coming

• Flashback 12 months: record prices and earnings• Shareholder encouragement to tidy corporate structure• Supported buyback and taking on debt

• Post-Lehman and credit crunch dragged PGM prices• Geological issues at EverestGeological issues at Everest• Negative pipeline adjustments and inventory repricing

• Renewed focus on optimising mining and cutting costs• Active plan to recapitalise the business undertaken• Taking advantage of corporate opportunities

10

Financing response

FLOATING RATE SENIOR SECURED CONVERTIBLE

BONDSR650m RMB BRIDGING LOANR1.57b

BONDS

£44 7m MODEST 1-FOR-9 R200- EVEREST £44.7m RIGHTS ISSUE 300m REDEVELOPMENT

£83.4m EQUITY PLACING R300m BLUE RIDGE WORKING CAPITAL

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Kroondal P&SA1

● Underground production at 6.5 million tons, open-pits mined out

● Production up 8% 422,078 PGM 4E ozs (Aquarius attributable: 211,039 PGM 4E ozs)p % , ( q , )

● Annual average PGM basket price decreased 45% to $1,044 PGM 4E oz

● Cash costs R5,174 PGM 4E oz

● Gross cash margin at 15% (incl. negative sales adjustments)

● Industrial relations improvement, following “Areboleleng” initiative

● Optimised sustaining capex program

12

Marikana P&SA2

● Closure of No. 2 Shaft and open pit optimisation

U d d d ti i d 28% t 1 4 illi & it 27% t 1 2 illi t● Underground production increased 28% to 1.4 million & open-pit 27% to 1.2 million tons

● Production up 26% to 157,938 PGM 4E ozs (Aquarius attributable: 78,969 PGM 4E ozs)

● Basket price decreased 43% to US$1 035 per PGM 4E oz● Basket price decreased 43% to US$1,035 per PGM 4E oz

● Cash costs R6,677 per PGM 4E ounce

● Gross cash margin -10% (incl. negative sales adjustments)Gross cash margin 10% (incl. negative sales adjustments)

● Industrial relations improvement , following “Areboleleng” initiative

13

Everest

● Suspension of the Everest Mine resulting from a subsidence event

● Phase One development of box cuts for two new declines commenced● Phase One development of box-cuts for two new declines commencedCost estimated at R77 million

● Phase Two of the project to include completion of the decline development, establishment of underground services and the reclamation of infrastructure equipping ofestablishment of underground services and the reclamation of infrastructure, equipping of declines and strike sections, and re-establishment of stoping sectionsCost estimated at R173 million

I l i b itt d● Insurance claim submittedand duly settled

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Mimosa

● Increase in underground tonnages to 2.1 million tons

● Production increased 20% to180,022 PGM 4E ozs (Aquarius attributable: 90,111 PGM 4E ozs)

● Basket price decreased 26% to US$931 per PGM 4E oz

C $ G $ G f● Cash costs $501 per PGM 4E ounce and $261 per PGM 4E oz after by-products

● Gross cash margin 50%

● Wedza Phase 5 5 completed● Wedza Phase 5.5 completed

15

Tailings Operations

CTRP Platinum Mile

● Production 6,824 PGM ozs(Aquarius attributable: 3,412 ozs)

● Cash costs R3 003 per PGM ounce

● Production 16,353 PGM ozs(Aquarius attributable: 8,176 ozs)

● Cash costs R3 586 per PGM ounce● Cash costs R3,003 per PGM ounce


● Cash costs R3,586 per PGM ounce


16

Ridge Mining

● Acquisition concluded July 2009

● NAV based valuation, a fair deal for both parties and all shareholders

● An all-share offer for the entire issued share capital of Ridge, exchange ratio of 1 Aquarius share : 2 75 Ridgeexchange-ratio of 1 Aquarius share : 2.75 Ridge

● Blue Ridge well executed small project: complementary fit in Aquarius portfolio2010 forecast 125,000 PGM 4E ozs (50% attributable)

● Sheba’s Ridge: optionality project

17

Exploration

Zondernaam (Bakgaga and MinEx)● Northern end of Eastern Limb. High grade Merensky reef intersected

Chieftain’s Plain & WalhallaChieftain s Plain & Walhalla● East of Everest. Contiguous with Booysendal. Merensky and UG2 reefs intersected

Townlands Prospect Adj t t K d l K5 d illi i● Adjacent to Kroondal K5 - drilling program ongoing

Hoogland Prospect● Within Everest mining area, south of main resource - drilling completedg , g p

Vygenhoek Prospect● North of Everest - pre-feasibility evaluation underway

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P&L Analysis & Breakdown

● Revenue: $310 6 million● Revenue: $310.6 million

● Cost of sales: $(291.6) million

● Amortisation and depreciation: $(42 7) million● Amortisation and depreciation: $(42.7) million

● Foreign exchange: $(20.3) million

● Financing costs: $(36.0) milliong ( )

● Movement in fair value of convertible note: $3.8 million

● Impairment losses: $(13.0) million

● Income tax credit: $15.4 million

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Profit & Loss Account





● Financing costs: $(36.0) millionRevenue from concentrate $403.9 million

g ( )



PGM sales adjustments $(105.0) million

Interest income $11.7 million

● Income tax credit: $15.4 millionRevenue $310.6 million

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● Financing costs: $(36.0) million

Operating costs $(279.9) million

Everest closure costs $(6.7) milliong ( )


● Impairment losses: $(13.0) millionEverest care & maintenancecosts (Jan to Jun 2009) $(2.8) million

● Income tax credit: $15.4 millionZondernaam Prospect (Bakgaga & Minex) $(2.2) million

Cost of Sales $(291.6) million

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● Amortisation and depreciation: $(42 7) million& $( )● Amortisation and depreciation: $(42.7) million



D&A $(30.2) million

Fair Value Upliftg ( )



Platinum Mile $(4.1) million

Kroondal $(6.0) million

● Income tax credit: $15.4 millionMarikana $(1.7) million

Mimosa $(0.6) million

D&A & FVU $(42.6) million

22







Pipeline finance $(23.8) million

Revaluation of Group loans $14 9 milliong ( )



Revaluation of Group loans $14.9 million

Revaluation of net monetary assets $2.0 million

● Income tax credit: $15.4 million$

Zimbabwe exchange impact $(13.4) million

Forex $(20.3) million

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● Financing costs: $(36.0) millionThird party interest $(29 5) milliong ( )



Third party interest $(29.5) million

Rehab liability unwind provision (non-cash) $(6.5) million

● Income tax credit: $15.4 millionp ( ) $( )

Financing costs $(36.0) million

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Movement in fair value ofconvertible note* $3.8 milliong ( )



● Income tax credit: $15.4 million*Reflects fair value of the optionality / derivative component on convertible bonds issued in May 2009

25






● Financing costs: $(36.0) millionEverest infrastructure g ( )



and assets $(10.1) million

Zimbabwean investmentstf li (d ll i ti i t) $(2 9) illi

● Income tax credit: $15.4 millionportfolio (dollarisation impact) $(2.9) million

Impairment loss $(13.0) million

26




● Amortisation and depreciation: $(42 7) millionZimbabwean deferred tax $(7 2) million● Amortisation and depreciation: $(42.7) million



Zimbabwean deferred tax $(7.2) million

Zimbabwean dividend witholding tax $(2.2) milliong ( )



witholding tax $(2.2) million

South African tax paid $(7.0) million

South African income tax● Income tax credit: $15.4 million

South African income tax credit $31.8 million

Income tax credit $15 4 millionIncome tax credit $15.4 million

27


ReportedFY 2009

Everest suspension costs

incl. care & maintenance

Sales adjustments from

prior period FY2008

Adjusted gross profit for FY 2009 to give “cash” profitp

Recognised Sales Revenue $415.6m - - $415.6m

Total Sales Adjustments ($105.0m) - Add back $41.0m ($64.0m)

Net Reported Revenue $310.6m - Add back $41.0m $41.0m

Cost of Sales (excl. D&A) ($291.6m) $9.5m - ($282.1m)

Gross “Cash” Profit / (Loss) $19.0m $9.5m Add back $41.0m $69.5m

G “C h” M i (%) 6 1% 19 8%Gross “Cash” Margin (%) 6.1% - - 19.8%

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Group Financials by Operation

Kroondal Marikana Everest Mimosa CTRP Plat Mile Corp Total

PGM ounces (attributable) 211,039 78,969 64,068 90,011 3,412 8,176 - 455,675

Revenue (net of FX sales variance) 145.8 53.8 32.6 61.1 2.6 6.8 7.8 310.5( )

On mine cash costs (122.4) (59.6) (53.1) (48.0) (2.1) (4.1) (2.1) (291.4)

Amortisation and depreciation (12.4) (9.5) (3.9) (4.1) (0.2) (0.2) - (30.3)

Gross profit 11.0 (15.3) (24.4) 9.0 0.3 2.5 5.7 (11.2)p ( ) ( ) ( )

Amortisation of fair value (6.0) (1.7) - (0.6) - (4.1) - (12.4)

Gross profit after FVU 5.0 (17.0) (24.4) 8.4 0.3 (1.6) 5.7 (23.6)

Other income - - 0.7 0.1 (0.1) 0.1 1.0 1.8Other income 0.7 0.1 (0.1) 0.1 1.0 1.8

Corporate admin and other costs - - - - - - (9.9) (9.9)

Foreign currency gain/(loss) (17.9) (1.5) (6.3) (13.4) - - 18.8 (20.3)

Finance charges - - - - - - (36 0) (36 0)Finance charges (36.0) (36.0)

Fair value adjustment of conv. bond - - - - - - 3.8 3.8

Impairment of assets - - (10.1) (3.0) - - (13.1)

Profit/(loss) before tax (12 9) (18 5) (40 1) (7 9) 0 2 (1 5) (16 6) (97 3)Profit/(loss) before tax (12.9) (18.5) (40.1) (7.9) 0.2 (1.5) (16.6) (97.3)

Tax Expense 15.8

Minority interest 35.8

Net Profit/(loss) after tax (45 7)

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Net Profit/(loss) after tax (45.7)

Cash Flow & Balance Sheet

● AQP attributable capital expenditure $59 million (including rehabilitation trust fund contributions)

● AQP issue of shares raised $192 million plus convertible notes $74 million (less $14 million costs)

● Total group cash balance at period end $153.6 million

o AQP $112 8 milliono AQP $112.8 milliono AQPSA $29.5 milliono Mimosa $2.3 milliono ACS(SA) $8 9 milliono ACS(SA) $8.9 million

● RMB bridge facility $177 million repaid in May 2008

● 2008 final dividend $26.2 million paid in September 2008$ p p

● AQPSA dividend to minorities $3.6 million (prior to flip)

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OutlookOutlook

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For further information please contact:

In AustraliaWilli Boehm or Anne Cully+61 (0)8 9367 5211

[E d]

( )

In South AfricaStuart Murray+27 (0)11 455 2050

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[End]

2009 Financial Results Presentation Stuart Murray, CEO ......PGM Prices Pt, Pd & Au ($/oz) Rh ($/oz)...

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Transcript of 2009 Financial Results Presentation Stuart Murray, CEO ......PGM Prices Pt, Pd & Au ($/oz) Rh ($/oz)...