Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — FY2012 Earnings Presentation
28 slides from Northam Platinum's earnings presentation, Aug 24, 2012
Slide 1: Annual results for the year ended 30 June 2012
NORTHAM | N U M — pod arr Annual results for the year ended 30 June 2012 Glyn Lewis, chief executive 24 August 2012
Slide 2: Key features from the results
Key features from the results h Zondereinde production up 15.4% to 8 979kg (288 675 oz) h Metal sales 1.1% higher at 9 980kg (320 861 oz) h Basket price received up 3.5% to R335 325/kg h Unit cost increases well contained h Earnings down by 13.9% to R301 million h Satisfactory progress at Booysendal
Slide 3: Safety
Safety Injury incidence rates per 200 000 man hours 6 5.0 5 4.1 4 3 2.5 2.3 2.3 2.3 2.1 1.9 2 1.5 1.3 1.0 1 0.8 1.2 1.3 1.2 1.3 1.0 1.0 1.0 1.0 0.7 0.9 0.6 0.5 0 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 LTIIR RIIR Annual results for the year ended 30 June 2012 | 24 Aug
Slide 4: Zondereinde operating performance
Zondereinde operating performance 2012 2011 Change (%) Merensky tonnes milled 884 660 793 490 11.5 Merensky head grade (g/t) 5.9 5.6 5.4 UG2 tonnes milled 1 049 017 797 355 31.6 UG2 head grade (g/t) 4.4 4.3 1.6 Total tonnes milled 1 933 677 1 590 845 21.6 Average combined head grade 5.1 4.9 2.6 PGMs
Slide 5: Zondereinde unit costs
Zondereinde unit costs 2012 2011 Change (%) Operating costs - Rand per tonne milled 1 447 1 502 -3.7 Cash costs - Rand per tonne milled 1 318 1 365 -3.4 Operating costs - Rand per kilogram 311 645 307 203 1.4 (3PGE+Au) Cash costs - Rand per kilogram (3PGE+Au) 283 934 279 118 1.7 Operating costs - US
Slide 6: Rand basket price vs cash costs
R/kg 100 000 200 000 300 000 400 000 500 000 600 000 Jan-09 Jan-09 Mar-09 Apr-09 May-09 R246 028 R218 736 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 R196 273 Nov-09 R254 913 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 R321 350 R237 702 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 R279 936 R308 886 Nov-10 Dec-10
Slide 7: Zondereinde mine plan
Zondereinde mine plan Annual results for the year ended 30 June 2012 | 24 August 2012 6
Slide 8: Zondereinde mining ratios
Zondereinde mining ratios 100% 7.0 90% 6.0 PERCENTAGE TONNAAGE CONTRIBUTION 80% COMBINED MILL HEAD GRADE (g/t) UG2 54% 70% 5.0 60% 4.0 50% 3.0 40% MER 46% 30% 2.0 20% 1.0 10% 0% 0.0 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 UG2 MERENSKY HEAD GRADE Annual results f
Slide 9: Zondereinde Merensky facies ratios
Zondereinde Merensky facies ratios 100% 90% 26% NR 80% PERCENTAGE MERENSKY FACIES 70% 4% NP2 60% 50% 40% 53% P2 30% 20% 10% 11% FWP2 6% WASTE 0% F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 Annual results for the year ended 30 June 2012 | 24 August 2012 8
Slide 10: Financial performance
Financial performance Annual results for the year ended 30 June 2012 | 24 August 2012 9
Slide 11: Income statement
Income statement 2012 2011 Change (%) R000s R000s Sales revenue 3 684 000 3 571 048 3.2 Cost of sales 3 345 311 3 185 754 5.0 Operating profit 338 689 385 294 -12.1 Share of earnings from associate 16 602 7 248 129.1 Investment revenue 53 951 85 520 -36.9 Sundry income 43 343 53 148 -18.5 Profit att
Slide 12: Cost of sales breakdown
Cost of sales breakdown 2012 2011 Change (%) Sales revenue 3 684 000 3 571 048 3.2 Cost of sales 3 345 311 3 185 754 5.0 operating costs 2 632 926 2 258 548 16.6 concentrates purchased 624 774 787 316 -20.6 refining costs 100 612 68 804 46.2 depreciation 190 287 147 838 28.7 change in metal inventor
Slide 13: Cash flow statement
Cash flow statement 2012 2011 Change (%) Cash flow from operations 437 662 769 422 -43.1 Investing cash flows (2 010 021) (197 171) -919.4 Financing cash flows (20 514) (61 107) 66.4 Net increase / (decrease) in cash (1 592 873) 511 144 - Cash at beginning of period 1 697 853 1 186 709 43.1 Cash at
Slide 14: Marketing
Marketing Annual results for the year ended 30 June 2012 | 24 August 2012 13
Slide 15: Market review
Market review h Autocatalysts growth in Pt and Pd demand during 2011 EU – Eurozone weakness; decline in vehicle sales Japan – recovery from 2011 earthquake / floods US – vehicle sales growth, increase in recycling China – bouyant sales continue; 7.6 million vehicles H1 2012 h Jewellery i
Slide 16: Market review, cont’d
Market review, cont’d h Industrial record 2011 demand for Pt and Pd demand has softened; potential for further weakness h Investment diminished investment interest current ETF holdings Pt 1.49 million oz Pd 2.01 million oz Annual results for the year ended 30 June 2012 | 24 August 2012 1
Slide 17: Summary outlook
Summary outlook h Autocatalysts EU – weak and potential to weaken further China, Japan, US – outlook positive but uncertainties persist h Jewellery lower price environment should continue to benefit sales growth opportunities in China, Japan, India weaker western economies, buyers more cau
Slide 18: Booysendal
Booysendal Annual results for the year ended 30 June 2012 | 24 August 2012 17
Slide 19: Booysendal project update
Booysendal project update h Surfacing of main access road nearing completion; work on internal roads starting h Development – 4 669m completed to date; reverse declines holed into reef declines h Reef stockpile – 150 000 tonnes h Concentrator plant nearing completion – focus on mechanical, electrica
Slide 20: Booysendal
Booysendal Annual results for the year ended 30 June 2012 | 24 August 2012 19
Slide 21: Booysendal progress
Booysendal progress Mine site Mine site June 2011 June 2012 Annual results for the year ended 30 June 2012 | 24 August 2012 20
Slide 22: Going forward…
Going forward… h Corporate funding – corporate bond AQP transaction – southern Booysendal BEE credentials labour relations h Zondereinde furnace rebuild deepening project h Booysendal power availability project commissioning community issues Annual results for the year ended 30 Jun
Slide 23: Annual results for the year ended 30 June 2012
NORTHAM | N U M — pod arr Annual results for the year ended 30 June 2012 Glyn Lewis, chief executive 24 August 2012
Slide 24: Sales volumes
Sales volumes 2012 2011 Change (%) Platinum kg 6 088 6 118 -0.5 Palladium Kg 2 861 2 821 1.4 Rhodium Kg 843 732 15.2 Gold Kg 188 201 -6.5 Total (3PGE+Au) Kg 9 980 9 872 1.1 Ruthenium Kg 1 091 999 9.2 Iridium Kg 218 241 -9.4 Copper tonnes 660 777 -15.1 Nickel tonnes 1 180 1 372 -14.0 Annual results f
Slide 25: Sales volumes
Sales volumes 2012 2011 Change (%) Platinum oz 195 737 196 688 -0.5 Palladium oz 91 999 90 710 1.4 Rhodium oz 27 093 23 550 15.2 Gold oz 6 032 6 446 -6.5 Total (3PGE+Au) oz 320 861 317 392 1.1 Ruthenium oz 35 080 32 135 9.2 Iridium oz 6 999 7 752 -9.4 Copper tonnes 660 777 -15.1 Nickel tonnes 1 180
Slide 26: Sales prices realised (Rand/kg)
Sales prices realised (Rand/kg) 2012 2011 Change (%) Platinum 404 431 382 245 5.8 Palladium 169 152 150 703 12.2 Rhodium 381 187 508 056 -25.0 Gold 421 375 308 068 36.8 Total (3PGE+Au) 335 326 323 899 3.5 Ruthenium 27 222 40 615 -33.0 Iridium 269 196 190 361 41.4 Copper (R/tonne) 59 671 56 613 5.4 N
Slide 27: Sales prices realised (US$/oz)
Sales prices realised (US$/oz) 2012 2011 Change (%) Platinum 1 622 1 698 -4.5 Palladium 679 671 1.2 Rhodium 1 523 2 251 -32.3 Gold 1 686 1 368 23.2 Total (3PGE+Au) 1 345 1 439 -6.5 Ruthenium 106 180 -41.1 Iridium 1 054 849 24.1 Copper ($/t) 7 820 8 073 -3.1 Nickel ($/t) 18 919 22 532 -16.0 Annual re
Slide 28: Disclaimer
Disclaimer Certain statements in this presentation (other than the statements of historical fact) may contain forward-looking statements regarding Northam’s operation, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum i
Northam Platinum Holdings — FY2012 Earnings Presentation on 6ix