Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — FY2010 Earnings Presentation
14 slides from Northam Platinum's earnings presentation, Aug 20, 2010
Slide 1: The year in review – the good and the bad
The year in review – the good and the bad • Solid operational performance at ZE • Spotlight on mine safety • 4 week smelter shutdown following precipitator incident • Rand basket price received marginally (2.7%) higher year on year • Solid earnings – no surprises • Booysendal feasibility and optimis
Slide 2: Key features from the results
Key features from the results • Metals in concentrate produced up 6.3% to 9 999 kg (321 475 oz) • Record sales at 395 879 oz • Sales revenue up 24% to R3.9 billion • Average basket price received increased by 2.7% to R288 255 /kg • Earnings 1.7% higher at R641 million • Cash on hand of R1.1 billion
Slide 3: Financials – key features
Financials – key features F2010 F2009 Income statement Change (R000) (R000) Sales Sa es revenue e e ue 39 945 5 083 3 186 86 0 042 23.8% 3 8% Cost of sales 3 160 106 2 368 129 33.4% Operating profit 784 975 817 913 -4.0% Share of earnings from associate 12 440 72 606 -82.9% Investment income 167 655
Slide 4: Cash flow statement
Cash flow statement F2010 F2009 Change (R000) (R000) Cash flows from operations 862 411 717 836 20 1% 20.1% Investing cashflows (395 965) (498 335) Financing cashflows (200 640) (798 348) Net increase/(decrease) in cash and cash equivalents 265 806 (578 845) Cash and cash equivalents at beginning of
Slide 5: Zondereinde geology
Zondereinde geology 9 Zondereinde mining ratios Tonnes Head grade milled Merensky / UG2 production ratio (3PGE+Au) 1800,000 6.0 1600,000 5.8 1400,000 5.6 5.4 1200,000 5.2 1000,000 5.0 800,000 4.8 600,000 4.6 400,000 4.4 200,000 4.2 ,0 4.0 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 Merensky UG2
Slide 6: Zondereinde - operating performance
Zondereinde - operating performance 2010 2009 Change Merensky tonnes milled 1 002 208 1050 404 -4 4.6% 6% Merensky head grade (g/t) 5.9 5.8 1.7% UG2 tonnes milled 1 036 017 1 054 687 -1.8% UG2 head grade (g/t) 4.5 4.4 2.2% Total tonnes milled 2 038 225 2 262 500 -3.2% Average combined head grade (g/
Slide 7: Comparative unit cash costs
Comparative unit cash costs F2010 F2009 Change Rand/tonne milled 1 059 892 18.7% R/kg (3PGE+Au) – total mine production 215 890 199 680 8.1% 13 Market review 14 7
Slide 8: Market review
Market review • Autocatalysts • Recovery in motor manufacturing sector following 2009 slump • EU and US incentive schemes schemes, inventory re-stocking re stocking followed by resurgence in vehicle sales – trending back to pre-recession levels • Growth in vehicle production in China continues – alb
Slide 9: Summary outlook
Summary outlook • Autocatalyst • slowing of EU and US vehicle sales • overall growth to continue, China, emerging markets • on-going tightening of emissions legislation, environmental pressures • Jewellery • Mature markets to perform in line with economic recovery • China maintains significant growt
Slide 10: Booysendal – project update
Booysendal – project update • Optimisation study completed and project approved by Board • Project more robust than anticipated • Accelerated timeline • Concentrator commissioning - January 2013 • Steady state mining - February 2014 • Improved design capacity – 187 500 tpm • Anticipated production o
Slide 11: Key issues going forward
Key issues going forward • Maintain production volumes at Zondereinde • Costs under pressure • Mining inflation • Wage negotiations • Finalise Booysendal funding arrangements • Mvela unbundling • Minerals legislation 21 Northam mining rights status Applied for Date Minerals Status Zondereinde Old or
Slide 12: Sales volumes
Sales volumes F2010 F2009 Change (kg) (kg) Platinum 7 546 6 288 20.0% Palladium 3 617 3 046 18.7% Rhodium 891 848 5.1% Gold 259 180 43.9% Total (3PGE+Au) 12 313 10 362 18.8% Ruthenium 1 351 1 227 10.1% Iridium 293 249 17.7% Copper (tonnes) 930 800 16.3% Nickel (tonnes) 1 752 1 529 14.6% 24 12
Slide 13: Sales prices realised
Sales prices realised (Rands) F2010 F2009 Change (R/kg) (R/kg) Platinum 353 507 325 736 8.5% Palladium 93 417 66 509 40.5% Rhodium 532 924 721 783 -26.2% Gold 266 528 249 129 7.0% Total (3PGE+Au) 288 255 280 609 2.7% Ruthenium 34 876 31 108 12.1% Iridium 114 368 122 676 6.8% Copper (R/t) 48 993 40 9
Slide 14: Revenue contributions
Revenue contributions 100% 5 5 7 9 10 8 5 5 7 11 13 12 8 5 12 80% 9 12 20 19 15 30 9 23 8 29 8 6 30 60% 6 6 40% 73 66 67 64 68 57 61 49 54 49 20% 0% F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 Other Nickel Gold Rhodium Palladium Platinum 27 14
Northam Platinum Holdings — FY2010 Earnings Presentation on 6ix