Interim Results Presentation – Period ending 30 September 2008

19 November 2008

Introduction

Overview

Financial Statements

Segmental analysis

Operational Review

• Mining services

• Coal mining investments

Strategic Review

Q & A

OverviewSafety, Health, Environmental & Social Development

• It is critical for us and our customers

• The group’s safety systems are designed to comply with:

– ISO 18001 standards

– Minimum requirements of the client company

– Supplementing the requirements of the host mines HSEC system

• Current safety status (to end September 2008)

– Two fatalities reported during the period

– Three serious injuries

– CIFR – 2,39

– TIFR – 9,83

• Rehabilitation liability quantified and audited at the Nkomati operation

• Re – evaluating the Group’s BBBEE contribution, in line with the DTI codes

OverviewFinancial

Revenue increased by 60% to R1 741m [2008: R1 087m]

EBITDA increased by 20% to R461,5m [2008: R385,4m]

EBITA up 16% to R310,2m [2008: R268,4m]

Basic EPS improved by 18% to 79,8 [2008: 67,5]

Cash generated from operations up 244% to R439,8m [2008: R127,9m]

Net asset value per share increased 11% to 890 cents [2008: 702 cents]

Debt to equity gearing decreased to 83% from 85% [March 2008]

EBITDA

0

200

400

600

800

2004 2005 2006 2007 2008 1H '08 1H '09

164219 275

350

649

385461

5 Year History (R millions)

5 year annual compound growth rate: 32% 20% interim YoY Growth

Operating Profit - EBITA

0

100

200

300

400

500

2004 2005 2006 2007 2008 1H '08 1H '09

61115

151199

424

268 310

5 Year History (R millions)

5 year annual compound growth rate: 47% 16% interim YoY Growth

Basic EPS

0

50

100

2004 2005 2006 2007 2008 1H '08 1H '09

23.2

46.669.3

30.4

56.3 67.579.8

5 Year History (cents)

5 Year annual compound growth rate: 19% 18% interim YoY Growth

Abridged Consolidated Income Statement –(R’000)

Reviewed six months - Unreviewed six months -

Audited year

ended

30 September 2008 30 September 2007 31 March 2008

Revenue 1,740,602 1,087,422 2,656,039

Operating profit before finance charges 296,324 249,242 133,947

Finance charges (114,609) (59,321) (149,545)

Excess of fair value of assets and liabilities acquired over purchase price 22,011 - 77,411

Income from investment in associate (net of tax) 59,665 - 68,133

Net profit before taxation 263,390 189,921 129,946

Taxation (72,113) (65,024) (16,379)

Net profit after taxation 191,277 124,897 113,567

Earnings attributable to outside shareholders 7,763 4,994 -

Earnings attributable to ordinary shareholders 183,514 119,903 113,567

Basic earnings per share 79.8 67.5 56.3

Headline earnings/(loss) per share 69.6 67.5 (8.2)

Adjusted basic earnings per share 73.9 75.2 127.9

Shares in issue (000)

- at end of period 235,566 203,430 235,566

- weighted average for the period 230,012 177,599 201,699

Abridged Consolidated Balance Sheet –

Assets (R’000)

Reviewed six months - Audited year ended

30 September 2008 31 March 2008

NON CURRENT ASSETS

Property , plant and equipment 2,618,167 2,234,927

Intangible assets 7,453 12,008

Investment in jointly controlled entity 61,455 -

Investment in equity-accounted associate 296,652 233,550

Goodwill 372,691 372,691

Mineral rights 413,198 364,305

3,769,616 3,217,481

CURRENT ASSETS

Inventories 267,052 301,120

Trade and other receivables 677,982 551,458

Bank balance and cash 109,212 285,175

1,054,246 1,137,753

TOTAL ASSETS 4,823,862 4,355,234

Abridged Consolidated Balance Sheet –

Equity and Liabilities (R’000)

Reviewed six months - Audited year ended

30 September 2008 31 March 2008

CAPITAL AND RESERVES

Share capital and premium 1,533,861 1,530,217

Reserves 562,588 362,081

Ordinary shareholders funds 2,096,449 1,892,298

Outside shareholders funds 95,098 87,335

Total shareholders funds 2,191,547 1,979,633

NON CURRENT LIABILITIES

Long term borrowings 1,390,945 1,300,655

Deferred taxation 238,225 193,334

1,629,170 1,493,989

CURRENT LIABILITIES

Trade and other payables 415,023 351,077

Current portion of long term borrowings 534,780 472,458

Taxation 53,342 58,077

1,003,145 881,612

TOTAL EQUITY AND LIABILITIES 4,823,862 4,355,234

Abridged Consolidated Cash flow

Statement (R’000) Reviewed six months - Unreviewed six months -

30 September 2008 30 September 2007

Profit before tax 263,390 189,921

Non cash flow items 115,604 142,749

Cash generated from operations before working capital adjustments 378,994 332,670

Changes in working capital (29,627) (264,114)

Interest paid 90,397 59,321

Cash generated from operations 439,763 127,877

Interest paid (90,397) (59,321)

Dividend paid - (20,502)

Taxation paid (48,197) (2,109)

Cash flows from operating activities 301,170 45,945

Cash flows from investing activities (592,334) (1,239,137)

Net addition to property , plant and equipment (521,994) (755,415)

Net movement in loans receivable - (30,270)

Investments (78,393) -

Interest received 8,053 -

Acquisition of subsidiary - (453,452)

Cash flows from financing activities 115,201 1,260,413

Issue of shares - 443,943

Movement in treasury shares - 924

Long term liabilities 115,201 815,546

Net increase in cash and cash equivalents (175,963) 67,221

Foreign currency translation reserve - (2,973)

Cash and cash equivalents at the beginning of period 285,175 164,511

Cash and cash equivalents at the end of period 109,212 228,759

Reconciliation of Headline Earnings –

(R’000)

Reviewed six months - Unreviewed six months - Audited year ended

30 September 2008 30 September 2007 31 March 2008

Reconciliation of Headline Earnings

Net profit for the year attributable to equity holders of the parent 183,514 119,903 113,567

Adjust for:

Profit on sale of plant and equipment (2,730) - (8,017)

Loss on sale of plant and equipment 689 - 1,827

Impairment of plant and equipment 200 - 2,131

Excess of fair value of assets and liabilities acquired over purchase price (22,011) - (127,258)

Tax effect of adjustment 515 - 1,177

Headline earnings attributed to ordinary shareholders 160,177 119,903 (16,573)

Amortisation of intangible asset 13,662 19,200 46,258

Provision for unaccounted funds - - 241,661

Tax effect of adjustment (3,825) (5,568) (13,415)

Adjusted earnings attributed to ordinary shareholders 170,014 133,535 257,931

Segmental AnalysisRevenue and NPAT

Revenue NPAT

R’ million R’ million

Opencast Mining Services 869,928 34,673

Scharrighuisen 500,156 (16,191)

Benicon 240,898 31,949

CCT 128,874 18,915

Drilling and Blasting 156,283 4,795

Equipment trading and Engineering 128,277 3,896

Exploration Drilling 535,834 82,583

Crane Hire 23,081 13,086

Coal mining JV s 27,200 70,231

Corporate (17,987)

Total 1740,603 191,277

Mining Services

Opencast MiningScharrighuisen

• Ytd turnover performance, substantially meeting budget expectations from a capacity perspective.

• Severe margin pressure due to poor and historic contract pricing, inefficient asset utilisation and cost control discipline.

• Strengthening of the operational and financial structures within the subsidiary.

• Repricing of selected contracts.

• Termination of unsustainable contracts.

• Rationalisation of fleet.

• Strategic use of resources/facilities.

Opencast MiningBenicon

• Solid Ytd performance, meeting budget

expectations from a capacity perspective.

• New contracts at full production and making good contributions to the business.

• Asset base operating at capacity.

• On track to meet Group budget expectations.

Opencast MiningCCT

• Solid Ytd performance, exceeding budget

expectations from a capacity perspective.

• New contracts making a good contribution

to this business.

• Expected to maintain its earnings during the

second half, despite market volatility.

• Asset base operating at capacity.

• Solid platform for growth in this area.

Overburden Drilling and BlastingTrading as JEF Drill and Blast

• Good turn-around during the six month period

• Specialist drilling and blasting business set up as a standalone entity in support of open cast mining contracts and to meet the sector shift towards outsourcing this function

• Complements the opencast mining divisions and servicing a growing external client base

• Forcast earnings contribution for the second half – in line with the Group’s budget

Equipment, Spares and Engineering

• Strategic support businesses

• Centralised global equipment sourcing, resulting in:

- Rapid deployment

- Capital cost saving

• Spares:

- Global procurement

- Benefits of scale

- Efficiencies

• Engineering:

- Highly skilled in-house resources

- Quick turnaround

• Limited earnings contribution from this segment

Exploration DrillingGeosearch

• Strong contribution for the six month

period.

• Consolidation of drilling geographies -

currently operate in twelve countries in

Southern and Central Africa.

• Demand for exploration drilling continues to

be moderate, but rapid decrease in demand

for “greenfield” exploration.

• Diversification of the Group’s earnings stream on the back of a weaker Rand.

• Main areas of stable business prospects in

Northern Mozambique, Botswana and SA.

• Revised forecast for the remainder of the

2009 financial year.

Mobile Crane HireRitchie Crane Hire Pty Ltd

• High margin contributor

• Specialised medium and heavy duty mobile crane

hire company

• Strong growth opportunities in the mining,

construction and infrastructure development sectors

(large capital projects: Soccer World Cup 2010,

Gautrain, Eskom)

• Synergies with mining services

• Robust earnings for the six month period

• Outlook still intact for the remainder of the 2009

financial year

Coal Mining Portfolio

NkomatiAnthracite

KoornfonteinMine

MerafeCoal

MabapaMining

Jonah CoalIndongo

Sentula Coal Mining (Pty) Ltd

Operational UpdateCoal Portfolio

Jonah CoalAquila

60% 49,9% 50% 75% 25% 25%

Operational Development Exploration

Target Coal Resource AreasSA Coal Investments

Operating Coal AssetsNkomati Anthracite – 60% stake

• Mangweni box-cut - progressing well.

• Procurement of equipment for the underground section – on track for production during Q4 2008.

• Production in line with the budget.

• Market for anthracite from this region remains good.

• Exploration of the Madadeni opencast block - in line

with expectations – production planned for second

quarter 2009.

• Continuing growth opportunity for other Sentula divisions - mining services rendered on and at “arm’s length basis”.

Operating Coal AssetsKoornfontein Mine – 49,9% stake

• Mine continues to produce in line with budgeted expectations.

• Ongoing robust demand for Export and Domestic sales.

• N0 4 Seam feasibility study complete and approved by the Siyanda Coal Board.

• Shareholder approval required for project funding arrangements.

• Mine will benefit from R/$ exchange rate, sales off stock and additional buy-in coal, during the second half.

• Good opportunities for “buy-in” coal to increase the utilisation of the Operation’s infrastructure.

Development Coal AssetsMerafe [50% stake]

Development properties

• Application for mining rights submitted for the

Schoongezicht and Bankfontein properties.

• First production still on track for September

2009.

• Production – 1,5 million tons per annum.

• Sales – Thermal export, “B” Grade domestic and

Eskom products.

• Additional u/g resources identified and evaluated

on the Bankfontein property.

Exploration properties

• Kaallaagte and Rietfontein.

• Pre-feasibility phase of exploration drilling in

progress.

Additional resources

• Ongoing negotiations on properties surrounding

current prospecting licenses.

Development Coal Assets Mabapa [75% stake]

• Option to acquire up to a 75% stake.

• Pre-feasibility phase of exploration drilling

complete – results in line with project

expectations.

• High quality, opencastable, semi hard

coking coal fraction.

• Inferred/Indicated resource totaling 12,8

million tons in situ (met coal horizon).

• Planned start up - June 2010.

• Sales – 1,2 million tons per annum.

Development Coal AssetsIndongo [25% stake]

• Phase 3 exploration drilling has commenced –

project on track for first production in June

2009.

• Total resource estimate of 80 million tons.

• Indentified opencastable resource of 6,7

million tons.

• Sentula [50%] with Jonah Capital[50%] have

earned a 50% plus 1 share stake in the

Mulungwa project.

• Strong local demand for coal for boilers,

smelters and the mining, cement, steel and

beer industries.

• Planned production – 500 kt per annum.

• Contract mining opportunity at the

neighboring Maamba colliery.

Zambezi Valley Coalfield

Exploration Coal AssetsASENJO Energy – Botswana [25% stake]

• Transaction has become unconditional.

• Jonah Coal has earned its 50 % stake, through

the investment of US $ 15 million.

• Initial confirmatory drilling supports the

thickness, quality and extent of the coal seams

on the Dukwe and Mmamabula prospects.

• Pre-feasibility study on the preferred project

area, is still on track to be completed by June

2009.

• The development of infrastructure to exploit

the resources remains a key area of focus.

• Intention is to convert the tenements into value

through energy:

- Electricity (Eskom, Botswana Power

and NamPower)

- Coal to liquids

- Export of high quality thermal coal

Strategic Review

Sentula is well positioned to take

advantage of contract mining

services opportunities in Southern

Africa.

Sentula, through Geosearch, has

one of the larger exploration

drilling companies in Africa.

Sentula has the resources to find,

develop and manage its own coal

resources.

Southern African and worldwide

demand for energy and coal will

remain robust for the foreseeable

future - new mining projects in Africa

will present opportunities to

Sentula’s mining service businesses.

Despite the current projected global

slow- down in demand for resources,

Africa will continue to be a source of

new supply driving the demand for

exploration drilling expertise on the

Continent.

Sentula is in a unique position to

evaluate, develop and exploit coal

opportunities and believes its

objective of becoming a substantial

junior coal mining company within 5

years is attainable.