Northam Platinum Holdings Limited · JSE:NPH

Northam Platinum — H1 2006 Earnings Presentation

14 slides from Northam Platinum's earnings presentation, Feb 2, 2006

  1. Slide 1: Interim results for the six months ended December 2005

    Interim results for the six months ended December 2005 2 Agenda Introduction and overview – Glyn Lewis, CEO Operating results – Glyn Lewis, CEO Financial results – Glyn Lewis, CEO Markets – Jerry White, Marketing Manager Geology – Damian Smith, Chief Geologist Outlook – Glyn Lewis, CEO 1

  2. Slide 2: Safety performance and salient features

    3 Safety performance LTIIR (per 200 000 man hours) RIIR (per 200 000 man hours) 10 3 9 7.99 8 2.06 7 2 6 5.28 1.51 4.82 5 1.28 1.21 4.02 1.14 4 0.96 1.00 0.98 1 3 2.50 2.10 2 1.50 1.52 1 0 0 F1999 F2000 F2001 F2002 F2003 F2004 F2005 H1 2006 F1999 F2000 F2001 F2002 F2003 F2004 F2005 H1 2006 Regrettab

  3. Slide 3: Operating results and operating performance

    5 Operating results ƒ Total development metres 49.7% higher at 7 210m ƒ Total square metres mined up 19.4% to 219 159m2 ƒ Tonnes milled up 20.5% to 1 193 045 tonnes ƒ Combined head grade marginally down at 5.5 g/t (3PGE+Au) ƒ PGMs in concentrate produced 24.9% higher at 5 807 kg ƒ Merensky ore reser

  4. Slide 4: Metals production and refined metal sales

    7 Metals production Six months ended Dec 2005 Dec 2004 Change Platinum (kg) 3 581 2 893 23.8% Palladium (kg) 1 734 1 405 23.4% Rhodium (kg) 373 252 48.0% Gold (kg) 119 99 20.0% Total 5 807 4 649 24.9% 8 Refined metal sales Six months ended Dec 2005 Dec 2004 Change Platinum (kg) 3 611 2 886 25.1% Pal

  5. Slide 5: Sales revenue and revenue contributions

    9 Sales revenue (R000s) Six months ended Dec 2005 Dec 2004 Change Platinum 699 977 482 701 45.0% Palladium 77 647 59 714 30.0% Rhodium 191 448 75 835 152.5% Gold 11 203 8 178 37.0% Nickel 77 720 74 037 5.0% Other 25 823 19 818 30.3% Total 1 083 818 720 283 50.5% 10 Revenue contributions 100% 5 5 7 9

  6. Slide 6: Financial results and capital expenditure

    11 Financial results ƒ Metal sales up 24.2% to 5 867 kg (3PGE+Au) ƒ Sales revenue up 50.5% to R1 084 million ƒ Unit cash costs down 12.7% to R104 508/kg ƒ Net income five times higher at R303 million ƒ Earnings per share increased to 130 cps ƒ R615 million cash on hand 12 Capital expenditure Actual

  7. Slide 7: Capital expenditure forecast and cash distributions

    13 Capital expenditure Forecast F2006 R million Access infrastructure to 1 & 14 levels 43.2 Development 33.7 Metallurgical plants 20.0 Additional compressed air capacity 16.9 Backfill reticulation 14.8 Underground equipment 12.2 Routine 43.5 Total 184.3 14 Cash distributions Cents per share 300 250

  8. Slide 8: Metal prices and basket price vs exchange rate

    15 Metal prices US$/oz US$/oz 1100 3 500 1000 Pt 3 000 900 800 Basket 2 500 Pt 700 Pd Rh Au 600 2 000 Basket Rh 500 Au 1 500 400 300 1 000 200 Pd Pd 100 500 Jul 04 Oct 04 Nov 04 Dec 04 Jan 05 Feb 05 Mar 05 May 05 Jun 05 Jul 05 Oct 05 Nov 05 Dec 05 Jan 06 Sep 04 Sep 05 Aug 04 Apr 05 Platinum (US$/oz)

  9. Slide 9: Markets - autocats and jewellery

    17 Markets - autocats ƒ Autocatalyst sector continues to drive physical Pt market ƒ On-going stringent emissions legislation ƒ Medium / heavy duty diesel - demand for Pt will increase ƒ Light duty diesel – continued growth for Pt autocats in Europe ƒ Increasing Pd substitution in diesel vehicles – b

  10. Slide 10: Markets - industrial and fund activity

    19 Markets - industrial ƒ Surging demand for physical metal ƒ Significant impact on Rh price ƒ LCD glass manufacture - 40% annual growth rate between 2004 and 2007 – flatscreen TVs, notebooks, etc ƒ Major capacity expansions – Taiwan – others to follow ƒ Growth in chemical manufacturing – projects i

  11. Slide 11: Markets – summary outlook

    21 Markets – summary outlook ƒ Fundamental demand for PGMs remains very strong ƒ Supplies to expand – how much and how rapidly will this metal reach the market? ƒ Pd for Pt substitution will continue – but with buoyant markets for both ƒ Risk of fund liquidations – but interest in resources remains

  12. Slide 12: Mine plan

    23 Schematic geological section MERENSKY Cr NORMAL MERENSKY REEF Cr Merensky Hangingwall Merensky Footwall NP2 MERENSKY REEF P2 MERENSKY REEF Cr Cr FWP2 MERENSKY UG2 UG2 Cr REEF +-38m +-20m below below Normal P2 Zone of Reef Reef Mineralisation UG2 REEF Cr Cr Cr 24 Mine plan 12

  13. Slide 13: Challenges and Outlook

    25 Challenges ƒ Production ƒ Development ƒ 9 through 12 levels east in brittle norites ƒ 4, 6 and 7 level west through the 20 line fissure ƒ Stoping ƒ Reduction in percentage Normal reef mined ƒ Poor ground conditions on the 46 and 47 lines ƒ Maintaining extraction ratios on the Merensky horizon ƒ T

  14. Slide 14: Thank you

    Interim results for the six months ended December 2005 Thank you 14

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