LBMA (LPPM) Precious Metals Conference 2011

19 September 2011

LBMA Precious Metals Conference

Crumbs on the table? The state of the Southern African platinum industry

Stuart Murray CEO September 2011

Disclaimer

Certain forward looking statements may be contained in the presentation which include, without limitation, expectations regarding metal prices, estimates of production, operating expenditure, capital expenditure and projections regarding the completion of capital projects as well as the financial position of the company. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. No representation or warranty, express or implied, is made by Aquarius that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Aquarius, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. Aquarius accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information.

Session 4 Stuart Murray

LBMA (LPPM) Precious Metals Conference 2011

19 September 2011

Introduction

The last time I addressed this august group was the LPPM Seminar in May 2010. At that time I focused on Tax Freedom Day.

...this presentation is a natural continuation of that theme...

The Platinum Cake

How delicious is it?

Share that delicious piece of cake. Dont eat it all alone! Julius Malema, ANC Youth League President 7 March 2011

Session 4 Stuart Murray

LBMA (LPPM) Precious Metals Conference 2011

19 September 2011

The Rand basket price recently averaged R10,500 / PGM oz

Enough to go around?

Royalties
Currently modest, but scope to increase...

R150

Session 4 Stuart Murray

LBMA (LPPM) Precious Metals Conference 2011

19 September 2011

Labour
Demands for double-digit wage increases every year, regardless of inflation rate

R4,000

Electricity
27% increases for three years in a row with more to come

R650

Session 4 Stuart Murray

LBMA (LPPM) Precious Metals Conference 2011

19 September 2011

Oil-related (diesel and explosives)

Internationally priced, with some relief from the Rand

R950

Steel
Internationally priced, plus the Sishen Surcharge

R800

10

Session 4 Stuart Murray

LBMA (LPPM) Precious Metals Conference 2011

19 September 2011

Spares and maintenance

Largely subject to the South African PPI inflation rate

R800

11

Other costs
Largely subject to the South African PPI inflation rate

R800

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Session 4 Stuart Murray

LBMA (LPPM) Precious Metals Conference 2011

19 September 2011

Tax
28% of everything that remains

R500

13

Stay-in-business capital expenditure

The forgotten cost and the biggest problem facing the platinum industry

R1,500

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Session 4 Stuart Murray

LBMA (LPPM) Precious Metals Conference 2011

19 September 2011

Shareholders owners and providers of capital

Not much left over: R350 out of R10,500 less than 3%

R350

Delicious, perhaps, but not very filling....

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For further information please contact:

Gavin Mackay +44 (0) 7909 547 042

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Session 4 Stuart Murray