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ARM Platinum Moving into overdrive RBC Platinum conference 16 May 2008.

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Presentation on theme: "ARM Platinum Moving into overdrive RBC Platinum conference 16 May 2008."— Presentation transcript:

1 ARM Platinum Moving into overdrive RBC Platinum conference 16 May 2008

2 2 Perfect diversified commodity mix 90%

3 3 Growing diversified commodity business 12 months to 30 June months to 31 December 2007 Attributable EBIT split between operations * Nkomati operating profit split: Nickel (52%) and Chrome (48%) * Nkomati operating profit split: Nickel (86%) and Chrome (14%) Attributable EBIT split between operations calculated from published EBIT (or segmental results) before corporate and exploration expenses and excluding the 45% minority interest in Two Rivers

4 4 ARM Platinum volume growth Explorers, Juniors,????, Majors Attributable PGMS (000 oz)

5 5 Power mitigation Dayshift – Nightshift Compressed Air vs Diesel / Electric Diesel / Gas Generators Stockpile management Shallow Deposits / Opencast

6 6 Western – Eastern – North – Zimbabwe Reef Type, Width, Grade, Prill Split, F/W and H/W Dip, Strike (4 – 5 km), Depth Mining Method – Production Statistics Infrastructure - Water,power,road,rail,towns Project Management Timing Capex Opex Platinum Mine Optimisation

7 7 Mine project – time versus depth Mine development 0 years 8 years Depth from surface 500m Opencast Two Rivers Modikwa 4 years Plant Nkomati

8 8 Two Rivers: Introduction Eastern Limb of Bushveld Complex PGM Producer 2.7 Mtpa (225,000 tpm) 220,000 PGE oz pa (120,000 Pt oz pa) Joint Venture ARM (55%)Management Impala (45%) Smelting, Refining, Marketing Fundamentals Owner operator Outsource concentrator & tailings operations Undertaking to employ local labour

9 9 Two Rivers: Mine – Shallow Deposit Dec 01:Land Purchase Sep 02:Bulk Sample Shaft Jan 04:Trial Mining Jun 05:Project Approval Aug 06:Plant Commissioning (1 month early and 12% below budget) Jan 07:North Decline Mar 07:Plant Full Production Mar 08:UG Mining Full Production 7 Years

10 10 Two Rivers: Geology

11 11 Two Rivers UG2 Reef Section : North - South

12 12 Analyst Visit Two Rivers Resource & Reserve Statement As at Feb 2008 Merensky Reef 120m above UG2

13 13 Two Rivers: Mining

14 14 Two Rivers: Decline Cross Section Analyst Visit – Sep m 430m

15 15 Two Rivers Operational Summary Statistics

16 16 Tons per Month Two Rivers: Tonnes Milled Profile Unprotected Strike Ramp Up

17 17 Industry Cost Curve R/ton Milled 2007 Two Rivers Steady State: 275 R/t v v Source: BJM research

18 18 Locality – Modikwa Platinum Mine

19 19 Total lease area ha Mpumalanga Province Modikwa Platinum Mine – lease area 24.8km

20 20 Modikwa Resource Classification – Tonnage 100 % JV (Millions) Resource discounted for geological losses MerenskyUG2Total Measured 18.7 (8.6%) 50.7 (24.8%) 69.4 (16.4%) Indicated 46.8 (21.5%) 64.4 (31.5%) (26.3%) Inferred (69.9%) 89.6 (43.8%) (57.2%) Total December 2007 Resource Statement

21 21 UG2 Investment Centres N3# N1# N2# S1# S2# S3# Merensky Investment Centres N3# N1# N2# S2# S1# Modikwa Both Reefs under continuous evaluation

22 22 Footwall Drive ASG PILLARS Footwall Drive 200 m 4 m 210 m 105 m Mining Direction Mining Direction Mined Out Area Unmined Area See Enlargement 30 m 8 m 10 m 4 m Enlargement Cross Cut Travelling Way & SO Muck Bay Final Layout Modikwa Breast stoping layout with footwall development

23 23 Only breast mining is taking place (dip mining completely phased out) All panels are expected to be on the standard 210m breast spacing by 2010 Modikwa Conversion from Dip to Breast Mining

24 24 Merensky trial mining Modikwa Average Tons Milled per Month H1 07 – Strike Steady State – 240 kt / month

25 25 Modikwa Built-up Headgrade

26 26 Nkomati Nickel Project Nkomati Nickel is a 50:50 JV between ARM and Norilsk Nickel Total nickel in concentrate: tpa Average grade: 0.35% Ni; Total plant capacity: 625 ktpa PCMZ Nickel in concentrate: tpa Average grade: 0.25%Ni; PCMZ plant: 250 ktpm MMZ Nickel in concentrate: tpa Average grade: 0.45%Ni; MMZ plant: 375 ktpm Project released Sept 2007 Open cast mine expected to produce at a steady state C1 cash cost of c.$3.50/lb Ramp-up: 2009 Full production: 2011 Capital cost of R3.2 billion, >20% committed, mainly funded from Nkomati cash flows CHROME a significant value contributor Oxidised lumpy chrome sales of 1 mtpa for 4 yrs Chrome concentrate sales of 1 mtpa (2011) from PCMZ plant completed and processing of chrome fines currently being stockpiled Other By-products include: ounces of PGM (Pt:Pd 1:2.7) tpa Copper 250 tpa Cobalt

27 27 Nkomati

28 28 Kalplats Exploration Pre-feasibility in progress Opencast Potential Platinum Australia presentation later

29 29 2 x 2010 Delivering on growth plans in ARM Platinum Operation (100% basis) Project stage Production in FY 2007 At steady state Life of mine (years) ProductionFinancial year Modikwa Approaching steady state PGMs oz PGMs2008/9 30 years on the UG2 orebody Two RiversAt steady state PGMs oz PGMs years on the UG2 orebody Nkomati InterimRamp-up t Ni t Cu oz PGMs t Ni t Cu oz PGMs years without large scale expansion released Nkomati Large Scale Expansion Project Released and constructing n/a t Ni t Cu oz PGMs Nkomati ChromeProduction t tpa20075 Kalplats PGM Project Explorationn/a

30 30 ARM Platinum Summary Eastern Limb Shallow, Long Life Assets Established PGM Producer Positive Cash Flows Growth Potential

31 31 Questions?

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