Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — Macquarie Global Metals and Mining Conference 2010
24 slides from Northam Platinum's conference presentation, November 2010
Slide 1: Macquarie Global Metals and Mining
Macquarie Global Metals and Mining New York November 2010
Slide 2: Healthy diversified asset portfolio
Healthy diversified asset portfolio 100% 100% 100% 7.5% Northam Booysendal Pandora Zondereinde mine metallurgical processing platinum project joint venture Resource: 25.7 Moz Resource: 103.3 Moz Attributable resource: 1.6 Moz 2
Slide 3: South Africa: host to 80% of PGM resources
South Africa: host to 80% of PGM resources 3
Slide 4: Northam at a glance
Northam at a glance • Listed on the JSE in 1987 • Spun out of GFSA in 1999 Shareholder profile • Admitted to the JSE SRI index in 2006 • Only mid-tier, independent producer Free float with control of metal from mine to market 37% • Resource base in excess of Mvela 130 million ounces Resources 51% •
Slide 5: Consistent delivery, sound track record
Consistent delivery, sound track record • Innovation and technological prowess • Cash generative and profitable • Lean, focused management Cash balances (ZAR) 1 600 000 1 499 748 1 400 000 1 209 912 1 186 709 1 200 000 1 000 000 920 903 831 286 800 000 600 000 400 000 200 000 0 2006 2007 2008 2009 2
Slide 6: Mining in SA: risk profile
Mining in SA: risk profile • Legislative environment • mineral rights and security of tenure Cost profile • black economic empowerment – Sundries mining charter review 18% • Largely unskilled workforce • Safety issues Electricity Labour 9% 44% • Mining input costs Stores 29% 6
Slide 7: Northam mining rights status
Northam mining rights status Applied for Date Minerals Status Zondereinde Old order mining right 8/98 Conversion April 2006 PGE + base metals Awaiting conversion Old order mining right 1/2000 Conversion April 2006 PGE + base metals Awaiting conversion Booysendal Converted Old order mining right 19/2
Slide 8: South Africa: comparative mining depths
South Africa: comparative mining depths Average mining temperature ºC Vertical stress Virgin rock depth m MPA Booysendal 20 3 PPRust 100 Ngezi Kroondal Mimosa 22 5 Rasimone 200 23 6 Stillwater 24 8 Lebowa 300 25 11 Lonmin 400 27 14 Amplats 500 31 19 Implats 600 700 34 25 Norilsk 800 900 1000 Zondere
Slide 9: Zondereinde: enviable track record
Zondereinde: enviable track record PGM sales First production 1993 F2010 395 879 Produced to date 5.6Moz (4E) F2009 333 159 Average head grade* 5.2g/t F2008 276 059 Capex 2010* R231.5 million F2007 344 101 Opex 2010* R239 769/kg F2006 362 821 Reserves* 7.53Moz* Resources* 25.65Moz* Precious metals i
Slide 10: Zondereinde: capacity, infrastructure, expertise
Zondereinde: capacity, infrastructure, expertise • Underground mining operations • twin shaft system • mining both the Merensky and UG2 reefs • technological expertise • pioneers of low environmental impact hydropowered mining technology 10
Slide 11: Zondereinde: capacity, infrastructure, expertise, cont’d
Zondereinde: capacity, infrastructure, expertise, cont’d • Integrated metals processing • two concentrators, smelter, BMR on site • patented, innovative metallurgical applications reduce chrome build-up and improve precious metals recovery • long-standing partnership with Heraeus for precious metals
Slide 12: In the midst of transition
In the midst of transition • Near-term growth to increase output by 40% • Major shareholder unbundling to gain momentum • Potential of increasing liquidity Current shareholder profile Future shareholder profile Toro* 4% ENRC 12% Free float Mvela Holdings 37% 11% Mvela Resources Afripalm 51% 10% Free
Slide 13: Booysendal: near-term growth opportunity
Booysendal: near-term growth opportunity • Massive resource: 130Moz • Shallow ounces, surface outcrop • Production due in early 2013 • Should add 160 000oz (3PGM+Au) or 40% to current output 500000 450000 400000 160 000 120 000 350000 80 000 oz (3PGM+Au) 300000 250000 200000 150000 300 000 300 000 3
Slide 14: Booysendal: best address
Booysendal: best address Two Rivers Mototolo Mareesburg Der Brochen Everest North 37km Booysendal Everest 14.5km MR UG2 5 km 14
Slide 15: To recap – locality
To recap - locality NORTHAM LEBOWA PLATINUM MINE “~ <* = = =“ GAPHASHA JV TWICKENHAM PLATINUM MINE WONDERKOP q I FAULT MARULA ¥.. MINE meyer (Phased 15 jing Area | TEGEND: Mining Area MODIKWA. Merensky Reef Peatiesn oe outcrop Ween MINE — UG2 Chromitite Layer outerop Surgersfort 4 ri —Fauit Ae 14.5k
Slide 16: Booysendal – shallow, near-term expansion
Booysendal – shallow, near-term expansion • 103Moz resource – unlocking value over time • Flexibility in bringing production to market UG2 classification Merensky classification 16
Slide 17: Similar prill splits
Similar prill splits Booysendal (UG2) Zondereinde (combined MR and UG2) Rh Au Rh Au 9% 1% 8% 1% Pd Pd 30% 32% Pt 58% Pt 61% 17
Slide 18: Booysendal: project capex and production build-up
Booysendal: project capex and production build-up • Shareholder approval for convertible bond • R2.5bn bond • R0.5bn flexible bank debt • Funding to be finalised early 2011 2 000 2 500 1 800 1 600 2 000 1 400 1 200 1 500 R million 1 000 Ktpm 800 1 000 600 400 500 200 0 0 2010 2011 2012 2013 2014 201
Slide 19: Transforming Northam
Transforming Northam Northam today New Northam Production 300 000oz 460 000oz (4Es) Resources 18Moz 130Moz (4Es) Life of mine 18 years 50+ years 19
Slide 20: Shareholder info and market statistics
Shareholder info and market statistics Market statistics* Market capitalisation (bn) R18.0 (US$2.6) Shares in issue (m) 360 720 500 Share price R49.89 JSE Share code NHM Sector Platinum *JSE market closing price – 12 November 2010 Rand/US$ – R7.68 20
Slide 21: Forward-looking statements
Forward-looking statements 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 fo
Slide 22: Sustained safety improvements
Sustained safety improvements 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 2 1.5 1.0 1 0.8 1.2 1.3 1.2 1.3 1.0 1.0 1.0 1.0 0.6 0.5 0 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 LTIIR RIIR 22
Slide 23: Sustained safety improvements, cont’d
0 Sep -1 0 Aug -1 J ul- 10 0 J un-1 0 May - 1 0 Apr - 1 Pt Industry 0 Mar - 1 0 Feb- 1 0 J an-1 23 9 Dec -0 9 Nov -0 Xtrata - Pt 9 O ct- 0 9 Sep -0 9 Aug -0 J ul- 09 9 J un-0 EastPlats 9 May - 0 9 Apr - 0 Comparison of injury rate 9 Mar - 0 Sustained safety improvements, cont’d 9 Feb- 0 9 Aquarius J
Slide 24: Shareholder information and contact
Shareholder information and contact Northam Platinum Limited 1st Floor, 1A Albury Park Magalieszicht Avenue Dunkeld West Johannesburg 2196 South Africa Tel: +27 11 759 6000 Fax: +27 11 325 4795 Email: rrautenbach@norplats.co.za; marion@rair.co.za Website: www.northam.co.za 24
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