Impala Platinum : Implats - UBS investor call

Implats - UBS investor call

December 2019

Forward-looking and cautionary 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, regulatory approvals and/or legislative frameworks currently in the process of amendment, or any 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, levels of global demand 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 Integrated 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.

Disclaimer: This entire presentation and all subsequent written or oral forward-looking statements attributable to Implats or any person acting on its behalf are qualified by caution. Recipients hereof are advised the presentation is prepared for general information purposes and not intended to constitute a recommendation to buy- or offer to sell shares or securities in Implats or any other entity. Sections of this presentation are not defined and assured under IFRS, but included to assist in demonstrating Implats' underlying financial performance. Implats recommend you address any doubts in this regard with an authorised independent financial advisor, stockbroker, tax advisor, accountant or suitably qualified professional.

Implats - UBS investor call	2

Who we are

Our strategy

Implats strategy prioritises value over volume in a zero harm environment with a specific focus on positioning the Group to be sustainably profitable through the cycle

Our vision

To be the worlds' best PGM producer,

sustainably delivering superior value to all our stakeholders

Implats - UBS investor call

Our values

We respect, care and deliver

Our mission

To mine, process, refine and market high-quality PGM products, safely, efficiently and at the best possible cost from a competitive asset portfolio through team work and innovation

3

Our value-focused strategy

The Group's value-focused strategy aims to reduce exposure to high-cost,deep-level conventional mining over time,

repositioning the business as a high-value, sustainable, profitable and competitive PGM producer

Strategic objectives

Reposition Impala to	Enhance the	Optimise balance	Protect and
the lower half of the	competiveness	sheet and capital	strengthen our
cost curve	of our portfolio	allocation	licence to operate

Implats - UBS investor call	4

A globally competitive portfolio

		Canada
Production	Koz 6E	261.9
Cash costs	ZAR/oz 6E	8 550
Total Cost	ZARoz 6E	11 316
EBITDA	Rm	2 361
Reserves	Moz 6E PGM	4
Sep-19 Basket price received	ZAR/oz 6E	21 667

Mechanised PGM production		Attributable production
60%			2 500
50%			2 000
40%		(koz)	1 500
30%		1 000
57%
51%
20%			500
10%			0
			Implats	Implats & NAP
0%			Platinum	Palladium	Rhodium
Implats	Implats & NAP

Implats - UBS investor call

		Zimbabwe
Production	Koz 6E	634
Cash costs	ZAR/oz 6E	9 009
Total Cost	ZARoz 6E	11 687
EBITDA	Rm	4 012
Reserves	Moz 6E PGM	26
Sep-19 Basket price received	ZAR/oz 6E	19 229

		SA	IRS refined
Production	Koz 6E	1 607	1 683
Cash costs	ZAR/oz 6E	12 419
Total Cost	ZARoz 6E	13 902
EBITDA	Rm	5 443	3249
Reserves	Moz 6E PGM	18.5
Sep-19 Basket price received	ZAR/oz 6E	18 595
			5

PGM pricing has underpinned a financial turnaround

Impala Rustenburg: Basket price per platinum ounce

FY2019 cost of production and achieved revenue (R/oz 6E)

43 000

3 100

(R/oz 6E PGM )

20 000

R19 844

38 000

2 600

R16 184

16 000

R14 881

R15 221

R14 872

R15 254

33 000

R12 607

R13 032

28 000

2 100

12 000

23 000

1 600

8 000

18 000

1 100

4 000

13 000

-

8 000

600

Two Rivers

Zimplats

Marula

Mimosa

Impala

Implats

NAP

Implats +

NAP

Jan/10

Jan/11

Jan/12

Jan/13

Jan/14 Jan/15

Jan/16 Jan/17

Jan/18 Jan/19

R/oz Pt

$/oz Pt

Cash cost

Stay-in-business capital

Replacement capital

Expansion capital

Revenue

Implats - UBS investor call	6

PGM markets - a snapshot

 Falling diesel market share				 Auto growth off thrifted base
			 Material revisions in loading
 Two Phases of HD legislation in China
			expectations for NOx abatement -
	and India in medium-term	PGM markets
	Value in use vs palladium expectations
Industrial underpinned by 'Developing'
				range from between 3:1 to as high as
	growth and nascent fuel cell demand				8:1
	Jewellery market uncertainty				 Industrial demand linked to fabrication
 In need of a demand pull				 Demand revisions underpin a material
						change in UG2 pricing outlook
	 On 'auto pilot' due to loadings change in developing		 Processing and funding impediments to Northern Limb
	markets and gasoline market share			expansion
	 Deficits increase with China 6 legislation implementation		 We expect price-inducedlife extension of UG2 supply
	 Industrial demand is primarily linked to consumer goods =		 Funded growth from Russia delivers medium-term
	price elastic			growth
	 Long-term auto growth will be balanced by expected		 Market uncertainty and SA investment climate
	recycling growth and ultimately BEV penetration			 Secondary supply is heavily 2025-2030 weighted

	Platinum			Palladium			Rhodium
1 000			-			40
800
600			-500			20
400						-
200			-1 000
-			-1 500			-20
-200					-40
-400			-2 000			-60
2018	2019F	2020F
2018	2019F	2020F
2018	2019F	2020F
Implats - UBS investor call		7

PGM Demand

• Automotive markets

1. 2019: Weak YtD October performance -5.3%o Contraction driven by:
2. • -9.5%YtD decline in China, weak GDP growth and trade uncertainty exacerbated by inventory management ahead of China 6
   • Slowing US growth after strong recovery post GFC
   • Decline in Western Europe on trade and Brexit woes
   • Japan eking out growth ahead of October tax

1. Pace of decline in diesel share beginning to moderate; but structurally has spurred better-than-expected gasoline volumes

• 1. 2020 expected to show modest recovery, but at risk from global slow- down and trade tensions
• Platinum jewellery markets
• 1. Pleasing growth in India and the US together with a stable outlook for Japan

• 1. A sobering outlook for the Chinese market which faces increasingly nuanced consumer market and a declining promotional wallet
• Investment
• 1. 1Q19 Platinum ETF flurry moderated in 2Q19 and 3Q19, while paper positioning has been bolstered by gold

1. Bar and coin likely to be small positive driver in 2019

1. Palladium disinvestment from ETFs continues, while paper positioning remains modest

WORLD LIGHT-DUTY VEHICLE SALES BY REGION - 2019 YTD

	2018	2019	2018
	growth
	(millions)	(millions)
	(%)
USA	14.2	14.0	-1.2
Western Europe	13.8	13.7	-0.7
China	22.6	20.4	-9.5
Japan	4.4	4.4	0.5
Rest of the World	23.5	21.9	-6.8
Total	78.5	74.4	-5.3

Source: LMC Automotive November 2019

Implats - UBS investor call	8

Investor positioning - Paper & ETFs

			COMEX Palladium
4
3							2 000
2
1							1 500
0							1 000
-1							500
-2
-3							0
Jan-96	Jan-99	Jan-02	Jan-05	Jan-08	Jan-11	Jan-14	Jan-17
	Long, koz (LHS)			Short, koz (Inverse) (LHS)
	Net Position, koz (LHS)		Palladium price (USD/oz) (RHS)
5			COMEX Platinum
4							2 000
3
2							1 500
1
0							1 000
-1							500
-2
-3							0
Jan-96	Jan-99	Jan-02	Jan-05	Jan-08	Jan-11	Jan-14	Jan-17

Long, koz (LHS)		Short, koz (Inverse) (LHS)
Net Position, koz (LHS)		Platinum price (USD/oz) (RHS)

Implats - UBS investor call

Palladium ETF Holdings

3.5						2 000
3.0
2.5						1 500
2.0						1 000
1.5
1.0						500
0.5
0.0						0
Apr/07	Apr/09	Apr/11	Apr/13	Apr/15	Apr/17	Apr/19
	ETC		US ETC		ZKB
	JB		NGPLD		ETFPLD
		Platinum ETF Holdings
4.0						2 350
3.5						2 150
3.0						1 950
2.5						1 750
2.0						1 550
1.5						1 350
1.0						1 150
0.5						950
0.0						750
Apr/07	Apr/09	Apr/11	Apr/13	Apr/15	Apr/17	Apr/19
	ETC		US ETC		ZKB
	JB		NGPLT		ETFPLT
	Others		Price, USD/oz (RHS)
						9

PGM market outlook

• The outlook for global growth remains murky with no short-term resolution to uncertainties caused by trade-wars, Brexit and rising geo- political tensions.
• The structural underpin from technological developments and evolution, together with tightening legislation is vital to maintain the trend of tightening demand and supply in the medium-term:

1. Market development activity has seen discussion on platinum for palladium substitution move from meeting rooms to the R&D labs of major fabricators with indicative volumes and timing now visible in the medium-term outlook

• 1. Together with HDD, this has the potential to drive fundamental demand growth/pull
• Rest of the metals all enjoying strong supply/demand fundamentals, driven by:
• 1. Palladium: Automotive

1. Rhodium: Automotive and Industrial

1. Limited potential near-term supply response

Implats - UBS investor call	10

Our performance against strategic KPI's in FY2019

Reposition Implats to the lower

half of the cost curve

SAFETY PERFORMANCE

Fatalities reduced from 7 to 5

LTIFR reduced by 12%

OPERATIONAL PERFORMANCE

Sustained mine-to-market production

Increased refined production

PGM +5%

Platinum +4%

Palladium +7%

COST PERFORMANCE

Group stock adjusted unit cost ↑4% Group unit cost per refined ounce ↓8%

IMPALA returned to profitability

MARULA turnaround sustained

Generating cash for the Group

Implats - UBS investor call

Enhance the competitiveness

of the portfolio

Completed IMPALA phase 1 restructuring

without disruptions

Industry leading cost performance from

IMPALA with stock adjusted unit cost growing

by only 4% per annum from 2016

Industry leading processing facilities

IRS cash cost R850/PGM ounce

Announced NAP TRANSACTION and

completed WATERBERG DFS

Sustained MARKET DEVELOPMENT and supported targeted industry initiatives to grow PGM demand

R1.5bn invested over 5 years

Optimise balance sheet and

capital allocation

Improved balance sheet LIQUIDITY and

CAPITAL STRUCTURE

R6.8bn gross profit

R7.7bn free cash flow

R8.2bn gross cash

R12.2bn liquidity

R1.1bn net cash

Optimised CAPITAL ALLOCATION

Invested R3.8bn in Capex

Repaid debt of R2.2bn

Converted US$ bonds

Reduced excess processing INVENTORY

57koz Pt drawdown

Sustained DIVIDEND PAYMENTS from Zimplats, Mimosa and Two Rivers

Protect and strengthen license

to operate

Improved SAFETY performance despite poor

fourth quarter

No level 4/5 ENVIRONMENTAL incidents

reported during the year

Reviewed all TAILING STORAGE FACILITIES

design and operational management Published information

Sustained OCCUPATIONAL HEALTH

surveillance and wellness programmes

TB well below national average

Sustained good relations with all key STAKEHOLDERS in RSA and Zimbabwe 7 day disruption at Marula

11

Delivering a profitable Impala Rustenburg

Status

FY2017

Unprofitable

operation

12

operational

shafts

ramping up to

750koz Pt

Opex + capex*

R29 006/oz

Capital

R2 472m

(nominal)

Labour

42 253

Implats - UBS investor call

Status

FY2019

Free cash flow

generative

10

operational

shafts,

producing

683koz Pt

Opex + capex*

R26 179/oz

Capital

R2 006m

(nominal)

Labour

39 523

OPERATIONAL

Description		FY2019	FY2018	% change
LTIFR	pmmhw	5.42	6.54	17
Pt Production	koz in conc	688	669	3
Unit cost	R/Pt oz	24 945	24 005	(4)
Face length	km	21.0	20.2	4
Efficiency	t/man/a	289	269	7
Recoveries	%	89.15	87.84	1

*in FY2018 terms

Future status

FY2022

Free cash flow

generative

6

operational

shafts

producing

~520koz Pt

Opex + capex*

<R24 500

Capital

R1 400m

(real FY2018)

Labour

~27 000

12

Strengthening the balance sheet

• Cash net of debt of R1.1 billion at 30 June 2019 (excluding finance leases) - a notable improvement on closing net debt position in prior year of R5.3 billion
• RCF fully repaid during first half of the year. First tranche of Zimplats facility repaid and remainder due Dec 2019
• Group headroom available of R12.2 billion comprising:
• • R8.24 billion cash, including Zimplats (R945 million only R4 million of this in local currency)
  • Committed RCF of R4 billion in place until June 2021, undrawn at year end
  • R2 billion available on metal prepayment facility

R million	June 2019	June 2018	Variance (%)
Gross cash	8 242	3 705	122
Convertible bonds	(5 831)	(5 489)	(6)
Derivative financial instrument	151	21
Marula BEE debt	(888)	(887)
Zimplats debt	(599)	(1 167)	49
Revolving credit facilities	-	(1 510)
Debt excluding leases	(7 167)	(9 032)	21
Net cash/(debt) excluding leases	1 075	(5 327)	120

Gearing ratio	n/a	13.4%

Implats - UBS investor call	13

Conversion of US$ convertible bonds

CONVERTIBLE BONDS 2022

• Long dated debt

	Stock overhang	INCENTIVISED OFFER

Early conversion of USD bonds

FINANCIAL IMPACTS

• No incentive for bondholders to convert (although in the money)
• Elected to convert US$ bonds only
• • Higher relative cost given CCIRS i.e. 9.8% pa on R3.25 billion
  • NPV of future coupon payments estimated at over R800 million
  • Holders largely non-resident specialist bond funds with elevated short positions

• Incentivised Conversion offer launched on 17 July and closed on 22 July
• Final take-upof 99.9% - only one outstanding bond of US$200k
• Total cash consideration of
  US$37.6m (R524.3m), including accrued interest
• CCIRS cancelled and R77 million proceeds received
• Remaining bondholder elected to convert and was settled in shares (no incentive premium payable)

• Incentive premium of R510 million expensed
• Earnings to improve
• • Lower interest charges - R319 million pa
  • No longer impacted by fair value movements on the CCIRS, the conversion option or the foreign exchange translation gains/losses on the bond
• Earnings per share impacted by issue of 64.3 million additional shares
• Net debt reduced by R3 billion
• Fair value of USD conversion option liability of
  R1.8 billion transferred to equity on the conversion date

Implats - UBS investor call

14

Acquisition of North American Palladium

Co-operative and positive relationship since 2017 centred on exploration joint venture on Sunday Lake Project

Withdrawal from sales process in 2018 to focus on the operational and financial challenges of implementing the Impala Rustenburg restructuring

Recent significant strengthening of balance sheet on the back of higher PGM pricing and good operational performance

Due diligence revisited in 2019 given the more

supportive environment for a transaction

An established PGM producer in an attractive

mining jurisdiction

NAP is listed on the TSX in Toronto

Strategy focuses on increasing underground

mined volumes and increasing mill throughput to

drive production gains

Reliable operational performance since 2017 resulting in increased total ore recovery and production rates, lowered operating costs, and improved geotechnical ground conditions

NAP is set to become one of Canada's largest and

lowest cost underground metal mines

Significant development and exploration upside

NAP Ore volumes (incl. surface stock) vs mined grade

	2.5										3.5
minedTonnes(Mt)	2.0										3.0	gradeMined(g/t Pd)
									2.5
1.5										2.0
	1.0										1.5
	0.5										1.0
										0.5
	0.0											-
		Jun/16 Dec/16	Jun/17	Dec/17 Jun/18	Dec/18 Jun/19
				UG			OP		Surface		Mined Grade

		NAP Palladium production vs AISC and Revenue
productionPalladium(000 oz Pd)	150								1 600
120								Revenue&AISCperounce($/oz)
									1 200
	90								800
	60
	30								400
	-								-
	Jun/16 Dec/16 Jun/17 Dec/17 Jun/18	Dec/18 Jun/19
				Palladium oz		Revenue		AISC

2013	2014	2015	2017
Study on Lac des Iles	Sunday Lake Project initiated	Test treatment of NAP	Option agreement between
Implats and NAP on the
concentrates by IRS
		Sunday Lake Project

2018

Implats participates in NAP's sales process, but withdraws due to internal operational and financial challenges

2019

Confirmatory due

diligence and

transaction negotiations

Implats - UBS investor call	Source: NAP Limited Quarterly Reporting and MD&A	15

Acquisition of NAP accelerates delivery of strategic objectives

Reposition Implats to the lower

half of the cost curve

SAFETY PERFORMANCE Operated for over 12 months with zero

lost-time injury

OPERATIONAL PERFORMANCE

700 employees

Mined volumes: 4mt

6E PGM: 262koz

Palladium: 232koz

COST PERFORMANCE

AISC per palladium ounce of US$781/oz

Cash cost of ZAR8,550/oz 6E

NET SALES REVENUE

Achieved revenue:

US$1,216/oz palladium

R18,272/oz 6E

Enhance the competitiveness

of the portfolio

Increases exposure to MECHANISED

ASSETS

PALLADIUM-RICH orebody improves

COMMODITY MIX to more closely match current and forecast 3E PGM demand

Increase exposure to the global

PALLADIUM SUPPLY AND PRICING

without supply expansion

Expand RESOURCE INVENTORY with potential to add to life-of-mineand improve grade

Potential for IRS to optimise capacity utilisation by treating NAP's high-grade PGM concentrates without limiting IRS optionality

Optimise balance sheet and

capital allocation

Detailed DUE DILIGENCE to confirm

management plans

FREE CASHFLOW AND NET ASSET VALUE

accretive

Low cost with ability to generate

free cash flow in excess of both capital

expenditure requirements and

debt servicing

Funded in prudent manner to enhance

SHAREHOLDER RETURNS

Protect and strengthen license

to operate

World class SAFETY

Geographic diversification and footprint for potential growth in North America

A stable and attractive mining

jurisdiction

Impeccable ENVIRONMENTAL track

record and reporting

Well established MANAGEMENT TEAM

Focus on relationships with

COMMUNITIES

Implats - UBS investor call

Source: NAP Limited Quarterly Reporting and MD&A; Financial data: 12m June 2019; R/C$ 10.76	16

Enhanced palladium exposure without increasing supply

Repositions attributable mined metal mix

• Increased palladium production to match both gross and auto demand
• Rhodium volumes remain in line with auto requirements

Diversifies geographic sources

• North American presence added to South Africa and Zimbabwe

Increases palladium exposure without adding to supply

• Attributable mined volumes for IMP & NAP:
• • 18% of primary Platinum supply
  • 13% of primary Palladium supply
  • 19% of primary Rhodium supply

Processing optionality

• Nature of NAP concentrates allow for potential future inclusion in IRS processing streams
• Inclusion of NAP concentrates in IRS does not preclude ability to treat other 3rd party concentrates

3E PGM demand mix vs Group production

		5%		7%		7%		7%
	54%								35%		42%
				69%
									57%		51%
	41%
				24%
	2018 Gross Demand	2018 Auto Demand			IMP		IMP&NAP
						Platinum		Palladium			Rhodium
				PGM peer group mined prill split
	2%		7%				7%	7%	9%	6%
									39%	29%	27%
		42%		40%
	79%
				53%			54%	62%	67%
		51%
	19%
	Peer 1	IMP&NAP			Peer 2	Peer 3	Peer 4	Peer 5
						Platinum		Palladium			Rhodium

Implats - UBS investor call	Source: Company Data 12m to June 2019, JM May 2019 PGM Review, Data is on attributable mined volumes	17

Key focus areas for FY2020

Advance Impala	FOCUS
Rustenburg restructuring	AREAS
 Entrench operational turnaround

• Conclude 1 and 9 Shaft closure/outsourcing
• Extract value from 12 and 14 Shafts
• Ramp-up16 and 20 Shafts

Enhance the competitiveness of the portfolio

 Continuous improvement in safety and productivity

• Grow exposure to low-cost mechanised assets
• • Zimbabwe
  • North American Palladium
  • Waterberg
  • Other value-accretive opportunities

Strengthen our licence to operate

• Implement wage settlement
• Maintain operational continuity at Marula
• Manage growing community expectations
• Sustain role/position in Zimbabwe

Capital allocation

• Further enhance balance sheet flexibility
• • Operational excellence
  • Dividends from associates
  • Inventory release
• Sustainable shareholder returns through dividend payments and/or share buybacks

Implats - UBS investor call	18

Implats - UBS investor call

December 2019