Stakeholder
Communication

Investment proposition

BLACK EMPOWERMENT STATUS

We are black owned and controlled. Because the Royal Bafokeng Nation through its investment arm Royal Bafokeng Holdings (RBH) has a 52.53% investment in RBPlat we not only comply with black economic empowerment requirements but exceed them. RBH followed its rights when it supported our capital raising programme in 2014 and it has stated that it views RBPlat as its quality growth investment vehicle in platinum.

  LONG LIFE QUALITY ASSETS

  • Prime location on the western Limb of the Bushveld complex
  • Long-term shallow depth mining (>60-year life of mine)

  EXISTING ASSET — BRPM

  • Access to 6.95Moz (4E) Merensky resource at 7.64g/t 4E and  11.58Moz (4E) UG2 resource at 5.17g/t
  • Set to remain Merensky biased in the long-term with UG2 production contributing approximately 20%

  HIGH QUALITY ORGANIC GROWTH

  • Styldrift I will increase production to 350kt per month by Q1 2020
    • Access to 16.25Moz (4E) Merensky resource at 6.941g/t (4E) and  9.94Moz (4E) UG2 resource at 5.07g/t
  • Styldrift II represents 40% of total resource
    • To be brought forward as an expansion project
    • Pre-feasibility study completed

  STRONG FINANCIAL POSITION

  • Only platinum business free cash flow positive in 2014 (after expenditure on stay in business and replacement capex, but excluding expansionary capex)
  • Competitive position on the industry cost curve
  • No gearing
  • Cash balance of R1.8 billion at end of 2014

  LABOUR AND TRADE UNION STABILITY

  • Long-term wage agreement in place (concludes in 2019)
  • No production lost to industrial action in 2014

  STRENGTH AND DEPTH OF MANAGEMENT SKILLS AND EXPERIENCE

  • Foresight in 2010 to introduce business flexibility through early co-extraction and create additional immediately stopable reserves
  • Flexibility allows us to adapt quickly to the constantly changing environment:
    • 2012 ‒ reacted rapidly to a reduction in platinum price by deferring capex that would not adversely impact the business in short to medium term
    • 2013 — change proposed processing solution for Styldrift I after a thorough investigation of options including possible collaboration with neighbouring mines. Decision was based on both cost implications and providing the best long term Merensky driven solution
  • Project management skills BRPM Phase III replacement project on time and within budget
  • Additional technical resources assigned to the Styldrift I project to ensure delivery to the revised schedule which has been delayed by six months over a 10-year project life
  • Ability to contain costs in a challenging environment
COMMITMENT TO TRANSPARENCY AND ACCOUNTABILITY

Open and honest communication to investors when challenges arise

  COMMITMENT TO TRANSPARENCY AND ACCOUNTABILITY

  • Open and honest communication to investors when challenges arise

  A SOCIALLY RESPONSIBLE COMPANY

  • Best performer status on JSE Socially Responsible Investment (SRI) Index

  AWARD WINNING BUSINESS

  • Winner of the EY Excellence in Integrated Reporting awards 2014 and winner of the Mid Cap category of the Chartered Secretaries Southern Africa JSE Integrated Reporting  Awards 201