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A strategic investment in Zimbabwe
November/December 2003
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Agenda
! The plan to grow resource ounces
! Implats in Zimbabwe
! Mimosa
! Zimplats
! Exploration
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3
Now a multi-resource company
36%
5%
18%
39%
2%
Impala Marula Barplats Zimplats Mimosa
From this in 1999:
69 Moz Pt 234 Moz Pt
To this in 2003:
Resources as at 30 June
72%
28%
Barplats Impala
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Three-pronged approach
! Mine-to-market
! Impala Refining Services
! Strategic alliances and investments
Impala Marula Mimosa Zimplats
Lonplats Aquarius Two Rivers
IRS
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Implats in Zimbabwe
NN
200 200 0 0 100100
Kilometres Kilometres
HARARE
BULAWAYO
MusengeziComplex
Selukwe Complex
Wedza Complex
Mimosa
Hartley ComplexZimplats
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Management structure – Operations
Keith RumbleCEO, Implats
Marula Zimplats MimosaRustenburg operations
Paul VisserOperations executive –
Rustenburg
Les PatonExecutive director:
Off-lease operations
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History – Investment in Zimplats
R1 285 million*Grand total
2001R66 million (Delta)15%Zimplats
August 2002R205 million (Delta)21%
July 2003R142 million (Absa)15%
Sept 2003R625 million (minorities)31%
R1 038 million82%Total
2001R247 million30%Makwiro
Total resources: 161 million oz of platinum = R8/oz
* Makwiro and Zimplats
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History – Investment in Mimosa
R376 million50%Total
2001R130 million (Zimasco)15%
2001R246 million (Zimasco)35%Mimosa
Total resources: 11.8 million oz of platinum = R32/oz
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Working in Zimbabwe
! Working relationship with Government
! Currency
! Costs and inflation
! Able to import fuel and capital goods
! Power - paid for in dollars
! Dividend flow from Zimbabwe investments continues
! Indigenisation programme:
! Zimplats – heads of agreement signed with Needgate;funds being raised
! Mimosa – negotiations underway
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Mimosa snapshot
! 50:50 JV between Implats and Aquarius Platinum
! Ramping up to full production – 65 000oz platinum-in-concentrate (32 500 oz attributable) by January 2004
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Mimosa - South Hill Deposit MSZ Mineral Resources
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Mimosa - Ore reserves and mineral resources at 30 June 2003
0.63.798.6Total
0.53.797.5Probable
0.13.791.1ProvedMSZ
Pt oz
(million)
Grade 3 PGE & Au (g/t)
Tonnage (millions)
CategoryOrebody
9.93.88153.7Total
6.53.80101.6Inferred
2.63.9740.5Indicated
0.84.2511.6MeasuredMSZ
Pt oz
(million)
Grade 3 PGE & Au (g/t)
Tonnage (millions)
CategoryOrebody
Mineral resources
Ore reserves
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Mimosa - grade profilePG
M P
PM
0
1
2
3
4
5
6
315 285 255 225 195 165 135 105 75 45 15 -30 -60 -90 -120 -150 -180 -210 -240 -270 -300 -330 -360
HEIGHT From Pt Peak (cm)
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
Pt Pd Ni Cu
% B
ASE
MET
ALS
Metal Distribution across the MSZ
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Mimosa - Annual tonnages hoisted
35000
135000
235000
335000
435000
535000
635000
735000
835000
1996 1997 1998 1999 2000 2001 2002 2003*
Tonn
es
Actual Plan
* 9 months of the year
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Impala
56%
Mimosa - breakdown of costs
In comparison to Impala Platinum:
Mimosa
15%
Transport Spares Chemicals DrillingLHD Spares Explosives Labour PowerFuel Other
Power
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Cost comparison – by process
10%
6%
13%3%
69%
Mining Concentrating Smelting Other Transport
Impala Mimosa
56%27%
6%11%
Mining Concentrating Smelting Other Transport
Mining Concentrating Smelting Transport Other
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Mimosa – the way forward
! Potential for expansion
! Possible time frame:
! Pre-feasibility study underway – to be completed March 2004
! Full feasibility to begin in June 2004 - to be completed by December 2004
! Board/government approvals by early 2005
! Plant construction by July 2006
! Ramp-up to full production by July 2007
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Zimplats snapshot
! 82% held by Implats
! Current production of 82 000oz of platinum annually
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Zimplats – MSZ reserves and resources
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Zimplats – Ore reserves as at 30 June 2003
18.03.33343.7Total
15.63.35296.0Probable
2.43.2347.7ProvedMSZ
Pt oz
(million)
Grade 3 PGE & Au (g/t)
Tonnage (millions)
CategoryOrebody
Ore reserves
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Zimplats – Mineral resources as at 30 June 2003
161.24.122 494.1Total
98.64.111 528.2Inferred
55.74.14860.6Indicated
6.94.18105.3MeasuredMSZ
Pt oz
(million)
Grade 3 PGE & Au (g/t)
Tonnage (millions)
CategoryOrebody
Mineral resources
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56%
Impala
Zimplats – breakdown of costs
In comparison to that of Impala Platinum
Zimplats
2%
Spares Chemicals Drilling M ining /LHD's Transport Power Explosives Fuel Labour Other
Power
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59%16%
8%5%
12%
Mining Concentrating Smelting Other Transport
Cost comparison
Zimplats
10%
6%
13%3%
69%
Mining Concentrating Smelting Other Transport
Impala
Mining Concentrating Smelting Transport Other
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Zimplats – the route for the future
! Review of expansion plans by senior Implats team
! In respect of current smelter:
! Not used to capacity
! Could be upgraded
! Thus:
! Option 1: To use smelter to capacityTo extend trial mine
! Option 2: To upgrade smelter
! Option 3: New smelter
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Zimplats – Option 1
! Mining: Existing underground trial mine – 1MtExisting opencast – 2Mt
! Processing - 1.5Mt concentrator at Ngezi
! Capex of US$82m, comprising:! Mining US$20
! Concentrator and tailings dam US$42m
! Housing US$5m
! Infrastructure US$15m
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Zimplats – Option 1
This option has the advantages of:
! Increasing production flexibility
! Reducing volume of ore to be transported
! Providing option to JV with other parties (possible BEE initiatives)
! Lowering level of risk
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Zimplats – the plan going forward
82 000oz
135 000oz
225 000oz
325 000oz
Current July 2005 July 2007 July 2009onwards
Phase 1:
45,000oz
Phase 2:
90,000oz
Phase 3 onwards
100,000oz
US$82m
US$132m
US$xxxm
Possible re-opening of
BMR
Production in Pt ounces:
Additional smelting capacity
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Zimplats – Timing of expansions
Phase 1:
! Feasibility study by end December 2003
! Trial mine will continue to be operated in the interim to continue to assess ground conditions, ability to follow reef and to finalise costs, mining methods and grade
! Project to Boards in April 2004
! Construction could begin in May 2004
! Commissioning in July 2005
! Full production by December 2005
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Exploration in Zimbabwe
! Exploration geologist appointed in Zimbabwe
! Review of all geological data underway
! Analyse data
! Prioritise areas according to mechanised mining methods (widths and dips)
! Highlight areas requiring additional exploration
! Aim is to:
! Protect rights
! Assist decision-making on next phase
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Importance of Zimbabwe
Zimbabwe platinum production in ‘000 oz
201076% of total Implats production
44201210% of Impala Rustenburg production
467202122100Total
67673218Mimosa (attributable)
4001359082Zimplats
FY2014FY2006/7FY2004Current
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November/December 2003
A strategic investment in Zimbabwe