Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — H1 F2018 Earnings Presentation
38 slides from Northam Platinum's earnings presentation, February 2018
Slide 1: Reviewed Interim Results for the Six Months Ended 31 December
NORTHAM PtLATtIN UM Lit Mt Te OD REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER Smart platinum mining
Slide 2: Disclaimer
DISCLAIMER Certain statements in this presentation (other than the statements of historical fact) may contain forward-looking statements regarding Northam’s operations, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum
Slide 3: Key features, operational review, financial review, projects, acquisitions, outlook
Key features Operational review Financial review Projects update Acquisitions update Business outlook
Slide 4: Key Features
Normalised Execution of headline growth strategy earnings on track R189 million Significant New 20MW increase in inventory KEY furnace FEATURES commissioned Capital Steady expenditure operational up to R2.6bn progress Northam Platinum Limited Reviewed Interim Results 2017 4
Slide 5: PGM Prices
PGM PRICES FROM 1 JANUARY 2015 (US$/oz) 2 000 1 800 Platinum (US$) 1 600 Rhodium (US$) 1 400 Palladium (US$/oz) 1 200 1 000 800 600 400 Northam Platinum Limited Reviewed Interim Results 2017 5
Slide 6: Operational Review
NORTHAM PLAT IN UM LiMtiwtTteéoD OPERATIONAL REVIEW smart platinum mining
Slide 7: Safety
SAFETY Zondereinde LTIIR per 200 000 hours worked 2017 1.31 1.31 2016 1.59 1 fatal accident Booysendal LTIIR per 200 000 hours worked 2017 0.31 2016 0.14 Northam Platinum Limited Reviewed Interim Results 2017 7
Slide 8: Consolidated Operations
CONSOLIDATED OPERATIONS H1 F2018 H1 F2017 Change % Total tonnes milled tonnes 2 296 466 2 215 533 3.7 Chrome concentrate produced tonnes 311 082 281 949 10.3 Equivalent refined metal – own production oz 4E 246 473 235 375 4.7 Equivalent refined metal – purchased oz 4E 29 770 14 179 110.0 Total refin
Slide 9: Zondereinde Operations
ZONDEREINDE OPERATIONS H1 F2018 H1 F2017 Change % Merensky square metres mined m2 76 311 84 620 (9.8) Merensky tonnes milled tonnes 378 930 432 174 (12.3) Merensky head grade g/t 4E 6.1 5.8 5.2 UG2 square metres mined m2 116 314 100 839 15.3 UG2 tonnes milled tonnes 589 921 539 070 9.4 UG2 head grad
Slide 10: Booysendal Operations
BOOYSENDAL OPERATIONS H1 F2018 H1 F2017 Change % Merensky tonnes milled tonnes 137 400 32 008 329.3 Merensky head grade g/t 4E 2.0 2.0 - UG2 tonnes milled tonnes 1 190 215 1 212 281 (1.8) UG2 head grade g/t 4E 2.7 2.7 - Total tonnes milled tonnes 1 327 615 1 244 289 6.7 Average combined head grade g
Slide 11: Resource Statement
RESOURCE STATEMENT 31 December 30 June 2017 2017 Operation Moz Moz Booysendal 105.1 105.3 Zondereinde 102.6 84.0 Dwaalkop 8.9 8.9 Pandora – 2.1 Total 216.6 200.3 Subsequent to period end Eland 22.8 – Current group resource 239.4 200.3 Northam Platinum Limited Reviewed Interim Results 2017 11
Slide 12: Slide 12
Slide 13: Normalised Headline Earnings
NORMALISED HEADLINE EARNINGS H1 F2018 H1 F2017 Change R’000 R’000 % Headline loss per the financial results (279 834) (226 369) (23.6) Add back: Amortisation of liquidity fees paid on preference shares 8 195 8 195 - Preference share dividends 460 762 482 753 4.6 Loss on derecognition of preference s
Slide 14: Sales Revenue
SALES REVENUE Down H1 2018 Sales revenue by 3.1% R million 4 000 3 458.8 -214.1 293.4 -184.8 3 500 3 353.3 3 000 2 500 8.5% higher Increased production average USD 2 000 offset by increased basket price 1 500 inventory resulted in negative volume 1 000 variance 500 0 Dec 2016 Volume Price Exchange D
Slide 15: Cost of Sales
COST OF SALES H1 F2018 H1 F2017 Change R’000 R’000 % Sales revenue 3 353 270 3 458 827 (3.1) Cost of sales (3 014 497) (3 106 871) 3.0 Operating costs (3 129 727) (2 771 920) (12.9) Concentrates purchased (430 052) (178 221) (141.3) Refining and other costs (56 563) (66 223) 14.6 Depreciation and wr
Slide 16: Segmental Report – Operating Profit
SEGMENTAL REPORT – OPERATING PROFIT Eliminations Zondereinde Booysendal Total and other R’000 R’000 R’000 R’000 Sales revenue 3 151 036 1 414 522 (1 212 288) 3 353 270 Cost of sales (2 995 443) (1 184 011) 1 164 957 (3 014 497) Operating costs (2 125 616) (1 004 111) - (3 129 727) Concentrates purch
Slide 17: Cash Flow
CASH FLOW Operating cash flow R502.2 million H1 F2018 cash flow R million 4 000 Increase in working capital of 3 500 R1 064.9 million 3 000 1337.4 -2190.7 2 500 502.2 -1064.9 2 000 1786.9 Investing cash flow 1 500 increased 182% 1 000 to R2 190.7 million 500 379.2 0 Opening Operating Change in Finan
Slide 18: Inventory Breakdown (4E)
INVENTORY BREAKDOWN (4E) PMR inventory 44 333oz BMR inventory 10 770oz Smelter inventory 54 504oz Concentrate (pre-smelter) 68 745oz Concentrate in progress 11 995oz Ore stockpiles 30 881oz R'000 - 100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000 900 000 Northam Platinum Limited Revie
Slide 19: EMAL
EMAL i
Slide 20: Zondereinde Smelter Expansion
ZONDEREINDE SMELTER EXPANSION smart platinum mining
Slide 21: Drying plant commissioned
Drying plant commissioned Northam Platinum Limited Reviewed Interim Results 2017 21
Slide 22: New furnace commissioned in December 2017
New furnace commissioned in December 2017 Northam Platinum Limited Reviewed Interim Results 2017 22
Slide 23: First matte tapped on January 2018
First matte tapped on 8 January 2018 Northam Platinum Limited Reviewed Interim Results 2017 23
Slide 24: Booysendal South Project
BOOYSENDAL SOUTH PROJECT smart platinum mining
Slide 25: North road complete and surfaced – grassing of berms in progress
North road complete and surfaced – grassing of berms in progress Northam Platinum Limited Reviewed Interim Results 2017 25
Slide 26: South road surfacing in progress
South road surfacing in progress Northam Platinum Limited Reviewed Interim Results 2017 26
Slide 27: Central boxcut bulk earthworks complete
Central boxcut bulk earthworks complete 10Ml process water dam started Crusher foundations started Northam Platinum Limited Reviewed Interim Results 2017 27
Slide 28: Low level bridge over Dwars River complete
Low level bridge over Dwars River complete Pollution control dam complete Northam Platinum Limited Reviewed Interim Results 2017 28
Slide 29: Development in all seven adits has intersected reef
Development in all seven adits has intersected reef Northam Platinum Limited Reviewed Interim Results 2017 29
Slide 30: Ropecon: all civils complete
Ropecon: all civils complete Northam Platinum Limited Reviewed Interim Results 2017 30
Slide 31: Ropecon: erection of towers in progress
Ropecon: erection of towers in progress Northam Platinum Limited Reviewed Interim Results 2017 31
Slide 32: Booysendal South Tailings Re-treatment Project
BOOYSENDAL SOUTH TAILINGS RE-TREATMENT PROJECT smart platinum mining
Slide 33: Project description
Project description: • hydro-mining and reprocessing the Booysendal South tailings storage facility (TSF) • TSF contains 8.7Mt • planning to extract ~1.3Mt chrome concentrate • capital cost of R100 million • placement of tailings from PGM reprocessing underground to reduce environmental impact North
Slide 34: Project status
Project status: • hydro-mining started November 2017 • 219 400 tonnes processed; 13 900 tonnes chrome concentrate produced • full year expect to process 1 280 000 tonnes producing 123 000 tonnes chrome concentrate • ~June 2018 – commissioning of entire plant • ~June 2018 – start processing for PGMs
Slide 35: Acquisitions Update
Slide 36: Transactions
TRANSACTIONS TUMELA ELAND RECYCLING ASSET • Tumela transaction concluded • Transaction concluded • Transaction concluded in • R1 bn purchase price paid subsequent to period end September • Business readiness planning • Established suite of recycling • Additional ground adds to on track equipment and
Slide 37: Business Outlook
Operations: Project maintain execution competitive is key cost position BUSINESS OUTLOOK Labour Mining relations: Charter wage negotiations Corporate activity Northam Platinum Limited Reviewed Interim Results 2017 37
Slide 38: Contact details
Contact details Building 4, 1st Floor Maxwell Office Park Magwa Crescent West Waterfall City Shareholder information Jukskei View 2090 Name Northam Platinum Limited South Africa Share code NHM Leon van Schalkwyk ISIN code ZAE 000030912 Tel: +27 11 759 6000 Fax: +27 11 325 4795 JSE sector Platinum Em