HIGHVELD

1
HIGHVELD STEEL AND VANADIUM CORPORATION LIMITED
RESULTS for the year ended December 2005
2
Corporate Vision

• To create superior value and benefits on a
  sustainable basis across commodity cycles for all
  stakeholders, by developing the business into the
  worlds leading vanadium products producer,
  co-producing low cost niche market steel products.

3
Objectives

• Maintain and grow position as the worlds leading
  Vanadium products producer by growing output by
  30 over 5 years.
• Achieve low cost position for steel production by
  reducing cost per ton produced so as to be in
  lowest 25 cost quartile of world producers.
• Meet international environmental standards within
  5 years.

4
Main Drivers

• Focus on Vanadium and Steel Disinvest from
  alloys.
• Re-engineering the organisation improve
  manpower productivity by 30 and ensure
  continuous improvement savings of R100 million
  per annum.
• Procurement initiatives to ensure capital
  efficiency and value for money.
• Capital expenditure to improve plant and
  equipment availabilities, yields and
  efficiencies, and to resolve environmental issues.

5
HIGHLIGHTS

• Lowest LTIFR in history
• Record prices achieved on all major products
• Strong cash inflow R2 708 million generated by
  operations
• Headline earnings per share of 1739.8 cents
• Sale of interest in Columbus Acerinox
• Capital expenditure of R624 million
• Record Dividends attributable to calendar year
  profits
• Normal cents per share of 1880 cents
• Special cents per share of 950 cents

• Twelve months to December 2005

6
LTIFR GROUP

• Twelve months to December

7
ACCIDENTS / FATALITIES

• Twelve months to December

As from 2005 contractors included in safety
statistics
8
Flow of the operation and actual production for
the 12 Months ending December 2005

Highveld Steel and Vanadium Corporation
INVESTMENTS
OPERATIONS
Vanadium VANCHEM
Alloys Rand Carbide
Joint Venture
Equity
lt6mm ore 753627t 1.63 V
Ore Mapochs Mine
Steel Steelworks
gt6mm ore 1 499 700 t 54.77 Fe
Alloys Transalloys
50
100
50
MCFeMn 37 948t
SiMn 104 409t
19
Iron Plant 787 589t
Vanadium Hochvanadium Holdings AG Austria
Vanadium South Africa Japan Vanadium (Pty)
Ltd (SAJV)
Alloys Ferroveld Joint Venture
Export 34.8
Chemicals 16
Vanadium Pentoxide (V2O5) 46
HIVOX (V2O3) 38
Local 8.5
Group 31.1
Local 25.8
Steelworks 24.2
Export 54.9
77.1
Vanadium Slag 66 750tons 22.1 V2O5
Steel Plant 874 920t
Metal Scrap
22.9
Paste 17 189t
Char 76 845t
VANCHEM Smelter
Treibacher 6040 Partnership (6535 above FeV
price of US 17/kg)
FeSi 42 656t
45
12
Ferro Vanadium (FeV) Ferro Vanadium Nitride FeVN
FeV Slag
Mills
70
11
Siltech 52
Transalloys 0
Local 3
Transalloys 32
Steelworks 3
Local 53
Plate 183 675 tons
Coil 202 730 tons
Structural Steel 297 563 tons
Billets 23 271 tons
Columbus 43
Export 5
Local 21
Steelworks 31
Bumatech SA
Alcan UK Formerly Pechiney Via Hochvanadium
Treibacher Partnership Via Hochvanadium
Vametco SA (marketed by Stratcor, USA)
Rolled products to merchants and export markets
Masterloy Products Company 4
SAJV 94 504010 Joint venture
Iron Making
Steel Making
HRC Mill
Billets Slabs Local 20 838t Export 43 488t
Plate Local 150 161t Export 30 910t
Coil Local 199 303t Export 7 182t
Structural Steel Local 144 181t Export 139244t
Coal
Scrap
Oxygen
Alloys
Slabs
Plate Mill
V Products
Nitrovan
Slag
FeV
FeV
Mined Ore
Pre- Reduction Kilns
BOF
Ladle Furnace
Casters
Submerged Arc Furnace
Shaking Ladle
Reading Alloys USA 6
Sections Mill
TiO2 Slag
Vanadium Slag Sales
Blooms Billets
9
PRODUCTION - ROLLED PRODUCTS (tons)

• Twelve months to December

10
PRODUCTION VANADIUM SLAG (tons V2O5)

• Twelve months to December

11
TOTAL OXIDES PRODUCTION Kg V2O5

• Twelve months to December

12
TOTAL FERROVANADIUM PRODUCTION ('000 Kgs V)

• Twelve months to December 2005

13
PRODUCTION SILICOMANGANESE (tons)

• Twelve months to December

14
PRODUCTION FERROSILICON (tons)

• Twelve months to December

15
RAND / DOLLAR EXCHANGE RATE (12 month average)

• Twelve months to December

16
CARBON STEEL EXPORT SELLING PRICES (average /ton)

• Twelve months to December

17
CARBON STEEL EXPORT SELLING PRICES (average R/ton)

• Twelve months to December

18
CARBON STEEL AVERAGE LOCAL SELLING PRICE (R/TON)

• Twelve months to December

19
VANADIUM PENTOXIDE SELLING PRICES (/lb V2O5)

• Twelve months to December

20
VANCHEM FERROVANADIUMAVERAGE SELLING PRICE (/kg
V)

• Twelve months to December

21
VANADIUM PENTOXIDE SELLING PRICES (Average R/kg
V2O5)

• Twelve months to December

22
SILICOMANGANESE EXPORTSELLING PRICES (/TON)

• Twelve months to December

23
MC FERROMANGANESE EXPORTSELLING PRICES (/TON)

• Twelve months to December

24
EBIT BY SEGMENT(R millions)
Excludes profit on sale of investment of
R243 million

• Twelve months to December

25
VANADIUM EBIT BY SEGMENT(R millions)

• Twelve months to December

26
GROUP REVENUE (RM)

• Twelve months to December

27
SEGMENTAL REVENUE (2004 vs 2005)

• Twelve months to December

28
COST SAVINGS (RM)

• Twelve months to December

29
PROFIT BEFORE INTEREST, DEPRECIATION TAX (RM)

• Twelve months to December

Excludes exceptional items
30
GROUP NET INTEREST (PAID)/RECEIVED (RM)

• Twelve months to December

31
INCOME STATEMENTS

• Twelve months to December

32
HEADLINE EARNINGS (RM)

• Twelve months to December

33
HEADLINE EARNINGS PER SHARE (CENTS PER SHARE)

• Twelve months to December

34
CASH FROM OPERATING ACTIVITIES BEFORE TAXATION
AND DIVIDEND PAYMENTS (RM)

• Twelve months to December

35
GROUP CASH FLOW (RM)

• Twelve months to December

36
HIGHVELD GROUP CAPITAL EXPENDITURE (RM)

• Twelve months to December

37
HIGHVELD GROUP (BORROWINGS)/ CASH ON HAND (RM)

• Twelve months to December

38
CASH/(NET BORROWINGS) TO SHAREHOLDERS EQUITY ()

• Twelve months to December

39
BALANCE SHEETS

• Twelve months to December

40
NET WORTH (CENTS PER SHARE)
Now excludes investments in Stainless steel
which yielded 1088.9 cents per share

• Twelve months to December

41
DIVIDEND PER SHARE ATTRIBUTABLE TO CALENDAR
PROFITS (CENTS PER SHARE)

• Twelve months to December

42
SHARE PRICE (CENTS PER SHARE)

• Twelve months to December

43
NUMBER OF EMPLOYEES (GROUP AT YEAR-END) (JOINT
VENTURES EXCLUDED)

• Twelve months to December

44
INSURANCE PREMIUMS VS CLAIMS(R Millions)
SUPPLIED BY MARSH
45
FUTURE DEVELOPMENTS

• Vanadium prices expected to remain at current
  levels
• Export steel prices to soften
• Rand expected to remain strong against US
• 2005 earnings levels not expected to be
  maintained.
• Sale of Anglos holding in Highveld
• Sale of some of the remaining non-core assets

• Twelve months to December 2005

46
OPERATING PROFIT RELATIONSHIP BY SEGMENT

• Twelve months to December