Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — FY2013 Earnings Presentation
27 slides from Northam Platinum's earnings presentation, June 2013
Slide 1: Northam Platinum
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Slide 2: Key features from the results
Key features from the results • Zondereinde production marginally higher at 9 041kg (290 675oz) • Metal sales 7.3% higher at 10 704kg (344 128oz) • Basket price received up 8.9% to R365 217/kg • Operating profit up 79.4% to R607.7 million • Earnings per share up 62.6% up at 132.0 cps • Net debt of R
Slide 3: Zondereinde safety
Zondereinde 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 1.5 1.3 1.0 1 0.8 1.2 1.3 1.2 1.3 1.0 1.0 1.0 1.0 0.9 0.8 0.6 0.7 0.5 0 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013 LTIIR RIIR 3 PRELIMINARY RESULTS FOR THE
Slide 4: Zondereinde production
Zondereinde production F2013 F2012 Change (%) Merensky tonnes milled 958 211 884 660 8.3 Merensky head grade (g/t) 5.8 5.9 (1.7) UG2 tonnes milled 1 157 501 1 049 017 10.3 UG2 head grade (g/t) 4.2 4.4 (4.5) Total tonnes milled 2 115 712 1 933 677 9.4 Average combined head grade 4.9 5.1 (3.9) PGMs in
Slide 5: Zondereinde unit costs
Zondereinde unit costs 2013 2012 Change (%) Operating costs - Rand per tonne milled 1 447 1 447 0.0 Cash costs - Rand per tonne milled 1 322 1 318 0.3 Operating costs - Rand per kilogram (3PGE+Au) 334 899 311 645 7.5 Cash costs - Rand per kilogram (3PGE+Au) 309 421 283 934 9.0 Operating costs - US$
Slide 6: Zondereinde mine plan
Zondereinde mine plan 6 PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2013
Slide 7: Zondereinde mining ratios
Zondereinde mining ratios 100% 7.0 90% 6.0 80% UG2 55% PERCENTAGE CONTRIBUTION 70% 5.0 MILL HEAD GRADE (g/t) 60% 4.0 50% 3.0 40% MR 30% 45% 2.0 20% 1.0 10% 0% 0.0 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013 UG2 Merensky Head Grade 7 PRELIMINARY RESULTS FOR THE
Slide 8: Zondereinde Merensky reef facies ratios
Zondereinde Merensky reef facies ratios 100% 90% 22%NR PERCENTAGE MERENSKY FACIES 80% 4%NP2 70% 60% 50% 59%P2 40% 30% 20% 10% 9%FWP 6%Waste 0% F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013 8 PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2013
Slide 9: Booysendal
BOOYSENDAL 9 PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2013
Slide 10: Booysendal update
Booysendal update • Total workforce at Booysendal reduced to 1 915 people • LTIIR – 0.53, RIIR 0.33 (per 200 000 man hours) • 1 million fatality free shifts achieved on 9 March 2013 • Eskom power conductor commissioned in March 2013 • Concentrator plant commissioned • Tailings storage facility compl
Slide 11: Booysendal operating performance
Booysendal operating performance F2013 F2012 Square metres stoped 41 639 - Tonnes mined 747 586 - Tonnes milled 242 602 - Head grade (g/t 3PGE+Au) 2.40 - PGMs in concentrate produced (kg 3PGE+Au) 473 - PGMs sold (kg 3PGE+Au) 109 - Reef stockpile (tonnes) 400 000 102 900 11 PRELIMINARY RESULTS FOR TH
Slide 12: Booysendal mine plan
Booysendal mine plan 12 PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2013
Slide 13: Financial performance
FINANCIAL PERFORMANCE 13 PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2013
Slide 14: Income statement
Income statement F2013 F2012 Change (%) R000s R000s Sales revenue 4 420 977 3 684 000 20.0 Cost of sales 3 813 301 3 345 311 14.0 Operating profit 607 676 338 689 79.4 Share of earnings from associate 13 783 16 602 (17.0) Investment revenue 33 434 53 951 (38.0) Finance charges (17 946) - - Net sundr
Slide 15: Cost of sales
Cost of sales F2013 F2012 Change (%) R000s R000s Sales revenue 4 420 977 3 684 000 20.0 Cost of sales 3 813 301 3 345 311 14.0 operating costs 2 826 094 2 632 926 7.3 concentrates purchased 657 540 624 774 5.2 refining costs 161 591 100 612 60.6 depreciation 234 690 190 287 23.3 change in metal inve
Slide 16: Cash flow
Cash flow • R1.25 billion financing secured in domestic capital market during the period • Available debt facilities at 30 June 2013 of R2.25 billion (including the above) • Net debt at 30 June 2013 amounted to R1 201.4 million • Undrawn facilities (RCF) at 30 June 2013 amounted to R750 million F201
Slide 17: Revenue vs cost of sales
Revenue vs cost of sales R000s 4 500 000 4 000 000 3 500 000 3 000 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 0 2007 2008 2009 2010 2011 2012 2013 Platinum Palladium Rhodium Gold Nickel Other Operating costs Cost of sales 17 PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2013
Slide 18: Markets
Markets 18 PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2013
Slide 19: Market review
Market review • PGM prices declined sharply in first half of 2013 • Platinum declined 13%; palladium 6%; rhodium 7% • Pt demand • autocatalyst and industrial sectors remain subdued • growth in jewellery and investment sectors • Pd demand • more robust than Pt • growth in gasoline vehicle production
Slide 20: Market outlook
Market outlook • Demand • Pt and Rh likely to continue subdued • Pd outlook more positive • Supply • higher volumes of recycled material • cutbacks in primary mine supplies • potential for production disruptions • Market balances • metal deficits expected to deepen in Pt and Pd; surplus in Rh • abov
Slide 21: Business outlook
Business outlook • Operations • Zondereinde production remains challenging especially in the NW quadrant however, the deepening project should help maintain ore ratios • Booysendal equipping and production ramp-up • furnace rebuild and toll refining • power availability and costs • Markets • Pt and
Slide 22: Northam Platinum
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Slide 23: Sales volumes (kg)
Sales volumes (kg) F2013 F2012 Change % Platinum 6 606 6 088 8.5 Palladium 3 133 2 861 9.5 Rhodium 786 843 (6.8) Gold 179 188 (4.8) Total (3PGE+Au) 10 704 9 980 7.3 Ruthenium 1 315 1 091 20.5 Iridium 261 218 19.7 Copper (tonnes) 678 660 2.7 Nickel (tonnes) 1 313 1 180 11.3 23 PRELIMINARY RESULTS FOR
Slide 24: Sales volumes (oz)
Sales volumes (oz) F2013 F2012 Change % Platinum 212 375 195 737 8.5 Palladium 100 715 91 999 9.5 Rhodium 25 280 27 093 (6.8) Gold 5 758 6 032 (4.8) Total (3PGE+Au) 344 128 320 861 7.3 Ruthenium 42 268 35 080 20.5 Iridium 8 382 6 999 19.7 Copper (tonnes) 678 660 2.7 Nickel (tonnes) 1 313 1 180 11.3
Slide 25: Sales prices realised (R/kg)
Sales prices realised (R/kg) F2013 F2012 Change % Platinum 448 077 404 431 10.8 Palladium 196 059 169 152 15.9 Rhodium 322 097 381 187 15.5 Gold 455 340 421 375 8.1 Total (3PGE+Au) 365 217 335 326 8.9 Ruthenium 23 390 27 222 (14.1) Iridium 284 864 269 196 5.8 Copper (R/tonne) 65 171 59 671 9.2 Nicke
Slide 26: Sales prices realised (US$/oz)
Sales prices realised (US$/oz) F2013 F2012 Change % Platinum 1 567 1 622 (3.4) Palladium 684 679 0.7 Rhodium 1 117 1 523 (26.7) Gold 1 583 1 686 (6.1) Total (3PGE+Au) 1 276 1 345 (5.1) Ruthenium 82 106 (22.6) Iridium 985 1 054 (6.5) Copper ($/t) 7 398 7 820 (5.4) Nickel ($/t) 16 045 18 919 (15.1) 26
Slide 27: Contact details and shareholder information
Contact details Shareholder information 1st Floor, 1A Albury Park Name Northam Platinum Limited Magalieszicht Avenue Dunkeld West Sharecode NHM Johannesburg 2196 South Africa JSE sector Platinum Tel: +27 11 759 6000 ADR programme Yes Fax: +27 11 325 4795 Email: rene.rautenbach@norplats.co.za; Sponso