Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — FY2009 Earnings Presentation
20 slides from Northam Platinum's earnings presentation, Aug 14, 2009
Slide 1: Annual Results for the Year Ended 30 June 2009
LAT HEH ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2009 Glyn Lewis, Chief Executive Officer 14 August 2009
Slide 2: Key features from the results
Key features from the results • 21.7% increase in sales volumes to 10 362 kg (333 159 oz) • Increase in unit cash costs held to 14% • Rand basket price received 31.4% down to R280 609/kg • Operating margin of 25.7% • Headline earnings of 168.6 cents per share • Cash on hand of R921 million • Final d
Slide 3: Sustained safety improvements
Sustained safety improvements Injury incidence rates per 200 000 man hours 3 2.5 2.3 2.3 2.3 2.1 2 1.5 1.5 1.0 1 1.3 0.5 1.0 1.0 1.0 1.0 0.6 0 F2004 F2005 F2006 F2007 F2008 F2009 LTIIR RIIR 3
Slide 4: Operating performance
Operating performance F2009 F2008 Change Merensky development metres 8 071 9 615 -16.1% Merensky tonnes milled 1 050 404 1059 624 - 0.9% Merensky head grade (g/t) 5.8 5.6 3.6% UG2 development metres 3 770 3 117 20.9% UG2 tonnes milled 1 054 687 963 033 9.5% UG2 head grade (g/t) 4.4 4.4 - Total tonne
Slide 5: 18 level expansion project
18 level expansion project • Conveyor decline • developed incrementally over the past number of years to access normal Merensky reef on the lower levels of the mine • stoping established on 13 and 14 levels • development in progress on 15 and 16 level • Material decline • this project is to provide
Slide 6: Sustained improvement in processing performance
Sustained improvement in processing performance 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 Merensky UG2 Head g
Slide 7: Unit cash costs – respectable increases
Unit cash costs – respectable increases F2009 F2008 Change Rand/tonne mined 803.98 683.37 17.6% Rand/tonne milled 892.38 789.34 13.1% Rand/kilogram (3PGE+Au) produced 199 680 175 197 14.0% 7
Slide 8: Still cash positive
Rand basket Price (spot) 700 000 600 000 piMn A 200 000 > R409 159 i \ ax = 400 000 300 000 eee R199 680 RT/9 197 100 000 PPPEL PTE ERLE RTE GLEE EE ETE ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2009 www.northam.co.za |e |
Slide 9: Sales volumes
Sales volumes F2009 F2008 Change (kg) (kg) Platinum 6 288 5 275 19.2% Palladium 3 046 2 523 20.7% Rhodium 848 643 31.9% Gold 180 146 23.3% Total (3PGE+Au) 10 362 8 586 20.7% Ruthenium 1 227 1 059 15.9% Iridium 249 208 19.7% Copper (tonnes) 800 573 39.6% Nickel (tonnes) 1 529 1 110 37.7% 9
Slide 10: Income statement
Income statement F2009 F2008 Change (R000) (R000) Sales revenue 3 186 042 3 886 137 (18.0%) Operating profit 817 913 2 277 489 (64.1%) Income from JV 72 606 − − Net sundry income 123 987 81 362 52.4% Profit before tax 1 014 506 2 358 851 (57.0%) Tax 384 024 866 040 (55.7%) Profit attributable to sha
Slide 11: Cost of sales
Cost of sales 2009 2008 Change (R000) (R000) Cost of sales 2 368 129 1 608 648 47.2% Operating costs 1 905 889 1 626 610 17.2% Concentrates purchased 140 192 − Refining and realisation 120 917 75 540 60.1% Depreciation 160 907 149 325 7.8% − Change in metal stocks 40 224 (242 827) 11
Slide 12: Capital expenditure
Capital expenditure Actual F2009 F2010 R million R million 18 level expansion project 53.6 104.3 Metallurgical plants 88.7 32.9 Access infrastructure to 1 level 9.8 2.5 Ventilation 7.6 6.7 Development 36.2 37.8 Backfill reticulation 11.1 21.6 Underground equipment 13.1 24.9 Power management 21.1 2.0
Slide 13: Basket price
“EEE LEEREPEEELLPLLEEEESE —— Basket Price (US$/oz) —— Platinum (US$) —— Palladium (US$) ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2009 www.northam.co.za
Slide 14: R/$ exchange rate
R/kg basket price vs exchange rate R/$ exchange rate Basket price (R/kg) 14
Slide 15: Revenue contributions
Revenue contributions 100% 5 5 7 9 8 5 5 10 11 13 12 8 5 80% 9 12 20 19 15 30 8 29 23 6 30 8 60% 6 6 40% 73 66 67 64 57 61 54 49 49 20% 0% F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 Other Nickel Gold Rhodium Palladium Platinum 15
Slide 16: Market outlook
Market outlook • Autocatalysts • past year characterised by diminished demand and stock depletion • demand to recover – at a modest rate – to instill new price support • Jewellery • lower price environment has stimulated solid demand in some regions • 2009 sales to date (China & Japan) have been str
Slide 17: Booysendal – on schedule
Booysendal – on schedule • Feasibilty study on track for completion during second half of calendar year • modular approach commencing on UG2 remains the preferred option for developing Booysendal • mine design, metallurgical design and infrastructure layouts largely complete • in the process of comp
Slide 18: Where we are?
Where we are? • Progress in diversifying income streams • Ownership of large resource base • Strong cash position - R921 million • Ungeared balance sheet 18
Slide 19: Key issues going forward
Key issues going forward • Zondereinde mine • wage negotiations • maintaining production profile • Booysendal mine • complete feasibilty study • finalise funding • Corporate • Mvela unbundling 19
Slide 20: Thank you
Thank you LAT HEH ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2009 Glyn Lewis, Chief Executive Officer 14 August 2009
Northam Platinum Holdings — FY2009 Earnings Presentation on 6ix