Northam Platinum Holdings Limited · JSE:NPH

Northam Platinum — H1 2007 Earnings Presentation

17 slides from Northam Platinum's earnings presentation, Feb 1, 2007

  1. Slide 1: Interim Results 31 December 2006

    INTERIM RESULTS 31 DECEMBER 2006 Agenda INTERIM RESULTS 31 DECEMBER 2006 • Financial and operating results - Glyn Lewis, CEO • Geology - Damian Smith, Chief Geologist • Market review - Jerry White, Marketing Manager • Outlook - Glyn Lewis, CEO 2 1

  2. Slide 2: Market fundamentals boost performance

    Market fundamentals boost INTERIM RESULTS performance 31 DECEMBER 2006 • Record PGMs market continues • Basket price of R278 505/kg ($1 200/oz) realised Basket Price (3PGE+Au) 1500 310 000 290 000 1300 270 000 1100 250 000 230 000 900 US$/oz R/kg 210 000 700 190 000 500 170 000 150 000 300 130 000 1

  3. Slide 3: Solid operating and record financial performance

    Solid operating performance INTERIM RESULTS 31 DECEMBER 2006 • Anticipated decline in production held to 3% • R/tonne milled operating cost increased by 8.5% Production oz (3PGE+Au) 400 000 361 599 332 888 340 547 350 000 325 214 300 000 271 931 250 000 200 000 180 623 150 000 100 000 50 000 0 F2002

  4. Slide 4: Strong share price performance

    Strong share price performance INTERIM RESULTS 31 DECEMBER 2006 • Total shareholder returns of 181% over one year NHM Pt index 300 250 200 150 100 50 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 7 Operating and financial INTERIM RESULTS performance 31 DECEMBER 2006 8 4

  5. Slide 5: Operating performance and Merensky facies

    Operating performance INTERIM RESULTS 31 DECEMBER 2006 F2007 F2006 Change H1 H1 07/06 Total development metres 8 204 7 210 13.8% Merensky square metres 137 368 148 862 -7.7% Merensky head grade (g/t) 5.6 6.1 -8.2% UG2 square metres 78 152 70 297 11.2% UG2 head grade (g/t) 4.3 4.6 -6.5% Total square

  6. Slide 6: Metal production and total operating costs

    Metal production INTERIM RESULTS 31 DECEMBER 2006 H1 2007 H1 2006 Change Platinum (kg) 3 705 3 581 3.5% Palladium (kg) 1 280 1 734 -26.2% Rhodium (kg) 533 373 42.9% Gold (kg) 100 119 -16.0% Total 5 618 5 807 -3.3% 11 Total operating costs INTERIM RESULTS 31 DECEMBER 2006 Contractors Sundries 8% 8% U

  7. Slide 7: Unit cash costs and cost of sales

    Unit cash costs INTERIM RESULTS 31 DECEMBER 2006 H1 F2007 H1 F2006 Change Rand / tonne mined 484.04 436.31 10.9% Rand / tonne milled 552.06 508.69 8.5% Rand /kilogram (3PGE) 122 989 104 508 17.7% produced 13 Cost of sales INTERIM RESULTS 31 DECEMBER 2006 H1 2007 H1 2006 Change (R000) (R000) Cost of

  8. Slide 8: Refined metal sales

    Refined metal sales INTERIM RESULTS 31 DECEMBER 2006 H1 F2007 H1 F2006 Change Platinum (kg) 3 393 3 611 -6.0% Palladium (kg) 1 511 1 756 -14.0% Rhodium (kg) 457 384 19.0% Gold (kg) 95 116 -18.1% Total 5 455 5 867 -7.0% 15 Refined metal sales INTERIM RESULTS (kg 3 PGE+Au) 31 DECEMBER 2006 H1-07 H1-06

  9. Slide 9: Sales revenue

    Sales revenue (R000s) INTERIM RESULTS 31 DECEMBER 2006 H1 F2007 H1 F2006 Change Platinum 915 778 699 977 30.8% Palladium 116 963 77 647 50.6% Rhodium 498 770 191 448 160.5% Gold 14 733 11 203 31.5% Nickel 193 152 77 720 148.5% Other 67 278 25 823 160.5% Total 1 806 674 1 083 818 66.7% 17 Sales reven

  10. Slide 10: Income statement key features and capital expenditure

    Income statement – key features INTERIM RESULTS 31 DECEMBER 2006 H1 2007 H1 2006 Change Net profit R661m R302m 118.6% Headline earnings per share - cps 279.6 130.1 114.9% Dividends per share 245 115 113.0% Operating margin 54.5% 39.1% 39.4% 19 Capital expenditure INTERIM RESULTS 31 DECEMBER 2006 Act

  11. Slide 11: Geology and mine plan

    Geology INTERIM RESULTS 31 DECEMBER 2006 21 Mine plan INTERIM RESULTS 31 DECEMBER 2006 Area of potential reef disruption yke Big John Dyke ne d 15 li eastern transition zone ke dy l ona diag possible normal reef 20 LJD 37 41 22 11

  12. Slide 12: Markets and revenue contributions

    Markets INTERIM RESULTS 31 DECEMBER 2006 23 Revenue contributions INTERIM RESULTS 31 DECEMBER 2006 100% 5 5 7 9 10 8 11 13 12 8 5 80% 9 12 20 15 23 8 28 Other 30 8 60% Nickel 6 Gold Rhodium 40% 73 Palladium 66 67 57 61 Platinum 49 51 20% 0% F2001 F2002 F2003 F2004 F2005 F2006 H1F2007 24 12

  13. Slide 13: Platinum and Palladium markets

    Platinum INTERIM RESULTS 31 DECEMBER 2006 • 51% of revenue. Price range $1 053 to $1 390. • Significant price volatility – rumours of ETF • Autocat demand continues firm – increasing share of diesel cars in Europe; diesel trucks in US to meet tightening legislation. Increasing Pt demand in soot filt

  14. Slide 14: Rhodium and Nickel markets

    Rhodium INTERIM RESULTS 31 DECEMBER 2006 • 28% of revenue. Price range $4 300 to $5 950. • Autocat sector – demand remains strong – higher loadings to meet legislated emissions standards; some inventory building • Significant autocat industry efforts to engineer-down NOx emissions and reduce Rh load

  15. Slide 15: Ruthenium and market outlook

    Ruthenium INTERIM RESULTS 31 DECEMBER 2006 • Price at $35 in 2003 • Period price range $165 to $620; currently $700+ • Metal used primarily in electronics and petrochemical industries • Vigorous demand for enhanced electronic memory capability - “perpendicular storage” applications; likely to persis

  16. Slide 16: Price outlook and key issues going forward

    Price outlook INTERIM RESULTS 31 DECEMBER 2006 • Pt - Range $1025 - $1360 – average $1171 • Pd - Range $280 - $425 – average $346 (‘Forecast 2007’ – LBMA) • Rh - range $4000 - $7500 – midpoint $5500 • Ni “Nickel bulls tout further rises in strong market” “Merchants predict LME nickel contracts will

  17. Slide 17: Outlook

    Outlook Operating issues • Difficult Merensky mining conditions • Development through and west of 20 line fissure • UG2 remnant conditions Production • PGM production in H2 expected to be 15% lower than H1 Markets • Fundamental demand continues Prospects • H2 earnings expected to decline in line wit

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