Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — H1 2014 Earnings Presentation
24 slides from Northam Platinum's earnings presentation, Feb 21, 2014
Slide 1: Northam: results for the six months ended 31 December 2013
NORTHAM PLATOUCM SMS Sr eiwva & for the six months ended 31 December 2013 KEY FEATURES ah. R ns Strike impacts First operating Booysendal R1 billion raised output at loss recorded ramp-up in successful Zondereinde since 1998 on track fund raising www. northam.co.za
Slide 2: Key features
Key features • Protracted strike at Zondereinde • Significant decline in Zondereinde production • First loss recorded since 1998 • Booysendal ramp-up in progress • R1 billion funding successfully raised H1 RESULTS: six months to 31 December 2013 | 21 February 2014 1
Slide 3: Strike
Strike • Negotiations started 31 July 2013 • 11-week strike started 3 November 2013 • Wage settlement reached 21 January 2014 • 79-day duration (including Christmas break) • Estimated loss of 48 000oz (3PGE+Au) • Revenue loss estimated at R750 million • Employee wages lost R151 million H1 RESULTS: s
Slide 4: Zondereinde operations
Zondereinde operations H1 2014 H1 2013 Change Total tonnes mined 919 650 1 251 905 -26.5% Total tonnes milled 834 234 1 149 058 -27.4% Average combined head grade (g/t) 5.0 5.0 - PGMs in conc – mine production (kg 3PGE+Au) 3 477 4 889 -28.9% PGMs in conc – purchased (kg 3PGE+Au) 589 713 -17.4% PGMs
Slide 5: Zondereinde mine plan
Zondereinde mine plan H1 RESULTS: six months to 31 December 2013 | 21 February 2014 4
Slide 6: Zondereinde mine plan – upper west quadrant
Zondereinde mine plan – upper west quadrant H1 RESULTS: six months to 31 December 2013 | 21 February 2014 5
Slide 7: Zondereinde tonnage ratios
Zondereinde tonnage ratios Percentage tonnage contribution Millhead grade (g/t) H1 RESULTS: six months to 31 December 2013 | 21 February 2014 6
Slide 8: Zondereinde Merensky facies ratios
Zondereinde Merensky facies ratios Percentage Merensky facies H1 RESULTS: six months to 31 December 2013 | 21 February 2014 7
Slide 9: Booysendal operations
Booysendal operations H1 2014 H1 2013 Change Total tonnes mined 615 676 - - Total tonnes milled 870 072 - - Average head grade (g/t) 2.6 - - PGMs in concentrate – mine production (kg 3PGE+Au) 1 763 - - PGMs sold (kg 3PGE+Au) 1 138 - - Basket price received (R/kg) 379 118 - - Cash costs (R/kg) 230 91
Slide 10: Booysendal mine plan – June 2013
Booysendal mine plan – June 2013 H1 RESULTS: six months to 31 December 2013 | 21 February 2014 9
Slide 11: Booysendal mine plan – December 2013
Booysendal mine plan – December 2013 H1 RESULTS: six months to 31 December 2013 | 21 February 2014 10
Slide 12: Income statement – consolidated
Income statement – consolidated H1 2014 H1 2013 Change R000s R000s Sales revenue 2 291 183 2 209 058 3.7% Cost of sales 2 390 727 1 943 035 23.0% Operating profit/(loss) (99 544) 266 023 -137.4% Share of earnings from associate 3 154 2 357 33.8% Investment revenue 27 762 17 420 59.4% Finance charges
Slide 13: Cash flow
Cash flow • Operating cash flows 8.8% higher • Successful R1.0 billion fund raising programme • Lower capital expenditure at Booysendal mine H1 F2014 cash flow statement R million 1800 999.0 -383.8 1600 1400 1176.3 1200 1000 800 271.5 600 400 298.6 200 0 Opening cash Operating Financing Investing ca
Slide 14: Funding
Funding • DMTN tap issue (R120 million) R million DMTN 1 370 • Equity raising – rights offer (R600 million) Nedbank RCF 1 400 • Increased RCF facility (R400 million) Total facilities available 2 770 • Covenant holiday until 31 December 2014 Drawn 2 020 DMTN 1 370 RCF 650 Current facilities available
Slide 15: Market review
Market review • Prices • Pt declined by 13% in 2013; average $1 487, lowest since 2009 • Rh declined by 13% • Pd outperformed other precious metals; gained 2% • Pt demand • autocatalyst – further decline – market weakness, thrifting • jewellery – marginal decline following strong performance in 2012
Slide 16: Market outlook
Market outlook • Demand • disparities in regional and sectoral outlook • Pt – auto off-take to increase; ‘resilient’ jewellery and industrial demand • Pd – auto sector to reach new highs; ETF potential promising • Rh – auto sector (NOx traps) to support demand; emissions legislation • Supply • volum
Slide 17: Summary
Summary • 2013 – a challenging year for Northam • supply disruptions – strikes and work stoppages • concern over reliability and consistency of metal supplies to marketplace • continuing thrifting and substitution • longer term scope for additional demand • concerns over global environmental • jewel
Slide 18: Key issues going forward
Key issues going forward • BEE credentials • Booysendal ramp-up • Zondereinde return to normal production H1 RESULTS: six months to 31 December 2013 | 21 February 2014 17
Slide 19: Northam: results for the six months ended 31 December 2013
NORTHAM PLATOUCM SMS Sr eiwva & for the six months ended 31 December 2013 KEY FEATURES ah. R ns Strike impacts First operating Booysendal R1 billion raised output at loss recorded ramp-up in successful Zondereinde since 1998 on track fund raising www. northam.co.za
Slide 20: Sales volumes – group
Sales volumes – group H1 2014 H1 2013 Change % Platinum kg 3 567 3 474 2.7% Palladium kg 1 716 1 665 3.1% Rhodium kg 395 295 33.6% Gold kg 80 91 -11.7% Total (3PGE+Au) kg 5 758 5 525 4.2% Ruthenium kg 672 563 19.3% Iridium kg 85 73 16.1% Copper tonnes 324 386 -16.1% Nickel tonnes 714 811 -12.0% H1 R
Slide 21: Sales prices realised (R/kg)
Sales prices realised (R/kg) H1 2014 H1 2013 Change % Platinum 460 828 439 262 4.9% Palladium 235 707 178 323 32.2% Rhodium 304 736 313 173 -2.7% Gold 417 885 468 190 -10.7% Total (3PGE+Au) 382 442 354 385 7.9% Ruthenium 17 887 24 075 -25.7% Iridium 207 939 281 121 -26.0% Copper (R/tonne) 47 560 64
Slide 22: Sales volumes – group
Sales volumes – group H1 2014 H1 2013 Change % Platinum oz 114 691 111 704 2.7% Palladium oz 55 171 53 521 3.1% Rhodium oz 12 693 9 501 33.6% Gold oz 2 585 2 929 -11.7% Total (3PGE+Au) oz 185 140 177 655 4.2% Ruthenium oz 21 596 18 101 19.3% Iridium oz 2 729 2 350 16.1% Copper tonnes 324 386 -16.1%
Slide 23: Sales price realised (US$/oz)
Sales price realised (US$/oz) H1 2014 H1 2013 Change % Platinum 1 421 1 588 -10.5% Palladium 727 645 16.3% Rhodium 937 1 132 -17.2% Gold 1 276 1 688 -24.4% Total (3PGE+Au) 1 179 1 281 -8.0% Ruthenium 56 88 -36.4% Iridium 642 1 032 -37.8% Copper (US$/t) 6 828 7 476 -8.7% Nickel (US$/t) 13 764 15 859
Slide 24: Contact details
Contact details Shareholder information Name Northam Platinum Limited 1st Floor, 1A Albury Park Sharecode NHM Magalieszicht Avenue Dunkeld West ISIN code ZAE 000030912 Johannesburg 2196 South Africa Debt issuer code NHMI JSE sector Platinum Shares in issue 397 586 090 Tel: +27 11 759 6000 Fax: +27 1