Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — H1 2013 Earnings Presentation
29 slides from Northam Platinum's earnings presentation, Feb 22, 2013
Slide 1: Results: six months to 31 December 2012
KS RESULTS: six months to 31 December 2012 ~ NORTHAM | N UM Glyn Lewis, chief executive Friday, 22 February 2013 www.northam.co.za
Slide 2: Key features from the results
Key features from the results • Zondereinde production up 6.5% to 4 889kg (157 183oz) • Metal sales 4.4% higher at 5 526kg (177 655oz) • Basket price received up 3.7% to R354 385/kg • Unit costs well contained • Operating profit up 20.6% to R266 million • Net debt of R631 million • Earnings per shar
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 1.7 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 0.9 0.6 0.7 0.5 0 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 H1 F2013 LTIIR RIIR H1 RESULTS: six months to
Slide 4: Zondereinde operating performance
Zondereinde operating performance H1 2013 H1 2012 Change (%) Merensky tonnes milled 534 316 449 117 19.0 Merensky head grade (g/t) 5.8 5.9 (1.7) UG2 tonnes milled 614 742 549 481 11.9 UG2 head grade (g/t) 4.3 4.3 – Total tonnes milled 1 149 058 998 598 15.1 Average combined head grade 5.0 5.0 – PGMs
Slide 5: Zondereinde unit costs
Zondereinde unit costs H1 2013 H1 2012 Change (%) Operating costs - Rand per tonne milled 1 339 1 392 (3.8) Cash costs - Rand per tonne milled 1 232 1 259 (2.2) Operating costs - Rand per kilogram (3PGE+Au) 314 622 302 636 4.0 Cash costs - Rand per kilogram (3PGE+Au) 289 516 273 812 5.7 Operating co
Slide 6: Sales prices realised (Rand/kg)
Sales prices realised (Rand/kg) H1 2013 H1 2012 Change % Platinum 439 262 410 960 6.9 Palladium 178 323 170 234 4.8 Rhodium 313 173 422 466 (25.9) Gold 468 190 423 015 10.7 Total (3PGE+Au) 354 385 341 725 3.7 Ruthenium 24 075 30 293 (20.5) Iridium 281 121 265 476 5.9 Copper (R/tonne) 64 280 59 539 8
Slide 7: Rand basket price vs unit cash costs
Rand basket price vs unit cash costs R/kg 600 000 500 000 400 000 R354 385 R337 442 R341 725 R321 350 R327 934 R308 886 300 000 R291 556 R289 516 R279 936 R273 896 R269 219 R237 702 200 000 100 000 Jan-10 Jan-10 Apr-10 Jun-10 Aug-10 Sep-10 Oct-10 Jan-11 Apr-11 Jun-11 Aug-11 Sep-11 Oct-11 Jan-12 Apr-
Slide 8: Zondereinde mine plan
Zondereinde mine plan H1 RESULTS: six months to 31 December 2012 | 22 February 2013 8
Slide 9: Zondereinde mining ratios
Zondereinde mining ratios 100% 7.0 90% 6.0 80% UG2 53% PERCENTAGE CONTRIBUTION 70% 5.0 MILL HEAD GRADE (g/t) 60% 4.0 50% 3.0 40% MR 30% 47% 2.0 20% 1.0 10% 0% 0.0 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013 H1 UG2 Merensky Head Grade H1 RESULTS: six months to
Slide 10: Zondereinde Merensky facies ratios
Zondereinde Merensky facies ratios 100% 90% 22% NR 80% PERCENTAGE MERENSKY FACIES 4% NP2 70% 60% 50% 57% P2 40% 30% 20% 11% FWP2 10% 7% Waste 0% F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013 H1 H1 RESULTS: six months to 31 December 2012 | 22 February 2013 10
Slide 11: Financial performance
Financial performance H1 RESULTS: six months to 31 December 2012 | 22 February 2013 11
Slide 12: Financial results
Zondereinde operating performance H1 2013 H1 2012 Change (%) R000s R000s Sales revenue 2 209 058 1 979 855 11.6 Cost of sales 1 943 035 1 759 343 10.4 Operating profit 266 023 220 512 20.6 Share of earnings from associate 2 357 3 405 (30.8) Investment revenue 17 420 33 060 47.3 Finance charges (32 3
Slide 13: Operating profit breakdown
Zondereinde operating performance H1 2013 H1 2012 Change (%) Sales revenue 2 209 058 1 979 855 11.6 Cost of sales 1 943 035 1 759 343 10.4 operating costs 1 449 829 1 314 358 10.3 concentrates purchased 264 034 343 643 (23.2) refining costs 101 318 41 258 145.6 depreciation 88 337 88 357 - change in
Slide 14: Cash flow
Cash flow • R1.25 billion financing secured in domestic capital market during the period • Net debt position at 31 December 2012 amounted to R631.1 million • Total debt facilities of R2.25 billion • Uncommitted debt at 31 December 2012 amounted to R1.62 billion H1 F2013 cashflow statement 1800 1223.
Slide 15: Markets
Markets H1 RESULTS: six months to 31 December 2012 | 22 February 2013 15
Slide 16: Market review
Market review • Autocatalysts • marginal decline in Pt demand, increase in Pd demand during 2012 • EU: Eurozone weakness continues; vehicle sales remain subdued • Japan: recovery from 2011 crisis, increase in domestic and export sales • US: growth in vehicle production and sales • China: modest 2012
Slide 17: Market review, cont'd
Market review, cont’d • Industrial • 2012 demand for metal has weakened • decline in glass and electrical sectors • Investment • modest growth in Pt; significant gains in Pd • current ETF holdings • Pt: 1.57Moz • Pd: 2.15Moz H1 RESULTS: six months to 31 December 2012 | 22 February 2013 17
Slide 18: Market outlook
Market outlook • Demand • Automotive and jewellery demand to remain robust • China - dampened growth rate, but strong consumption • Uncertainties in EU • Supply • Reductions in mine supply • Potential for production disruptions • Market balances • Metal deficits likely to persist; deepen • Supply un
Slide 19: Booysendal
Booysendal Mine site: June 2012 H1 RESULTS: six months to 31 December 2012 | 22 February 2013 19
Slide 20: Booysendal update
Booysendal update Mine site: December 2012 H1 RESULTS: six months to 31 December 2012 | 22 February 2013 20
Slide 21: Booysendal update
Booysendal update • Total workforce at Booysendal reduced to 2 000 people • LTIIR – 0.70, RIIR 0.21 (per 200 000 man hours) • Development – 6 500m completed to date; 14 000m2 of stoping completed • Reef stockpile – 320 000 tonnes • Concentrator plant partially cold commissioned; awaiting permanent p
Slide 22: Booysendal mine plan
Booysendal mine plan H1 RESULTS: six months to 31 December 2012 | 22 February 2013 22
Slide 23: Business outlook for H2
Business outlook for H2 • Corporate • AQP transaction – southern Booysendal • BEE credentials • Operations • Zondereinde production remains challenging;the deepening project will help maintain ore ratios • commissioning and first production from Booysendal • Markets • PGM supplies likely to be impac
Slide 24: Results: six months to 31 December 2012
KS RESULTS: six months to 31 December 2012 ~ NORTHAM | N UM Glyn Lewis, chief executive Friday, 22 February 2013 www.northam.co.za
Slide 25: Sales volumes (kg)
Sales volumes (kg) H1 2013 H1 2012 Change % Platinum kg 3 474 3 261 6.5 Palladium Kg 1 665 1 547 7.6 Rhodium Kg 295 385 (23.4) Gold Kg 91 102 (10.8) Total (3PGE+Au) Kg 5 525 5 295 4.4 Ruthenium Kg 563 463 21.6 Iridium Kg 73 87 16.1 Copper tonnes 386 345 11.9 Nickel tonnes 811 757 7.1 H1 RESULTS: six
Slide 26: Sales volumes (oz)
Sales volumes (oz) H1 2013 H1 2012 Change % Platinum oz 111 704 104 837 6.5 Palladium oz 53 521 49 721 7.6 Rhodium oz 9 501 12 384 (23.4) Gold oz 2 929 3 296 (10.8) Total (3PGE+Au) oz 177 655 170 238 4.4 Ruthenium oz 18 101 14 899 21.6 Iridium oz 2 350 2 800 16.1 Copper tonnes 386 345 11.9 Nickel to
Slide 27: Sales prices realised (US$/oz)
Sales prices realised (US$/oz) H1 2013 H1 2012 Change % Platinum 1 588 1 669 (4.9) Palladium 645 692 (6.8) Rhodium 1 132 1 725 (34.4) Gold 1 688 1 706 (1.1) Total (3PGE+Au) 1 281 1 388 (7.7) Ruthenium 88 121 (27.3) Iridium 1 032 1 056 (2.3) Copper ($/t) 7 476 7 925 (5.7) Nickel ($/t) 15 859 19 264 (
Slide 28: Disclaimer
Disclaimer Certain statements in this presentation (other than the statements of historical fact) may contain forward-looking statements regarding Northam’s operation, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum i
Slide 29: 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 Shares in issue 382 438 690 Tel: +27 11 759 6000 Fax: +27 11 325 4795 ADR programme Yes Email: rene.raute