Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — Non-Deal Roadshow (November 2014)
18 slides from Northam Platinum's roadshow presentation, Nov 7, 2014
Slide 1: UK and North American Roadshow
NORTHAM PEATINA & ti MtitT e Bo UK AND NORTH AMERICAN ROADSHOW 7-13 NOVEMBER 2014
Slide 2: Northam – who we are
Northam – who we are • Only mid-tier, integrated PGM producer with control of metal from mine to market • Owner and manager of two diverse operating assets • Booysendal – shallow, modern and mechanised, ramping up to steady state 160 000oz 4E (90 000oz Pt) by second half of 2015 • Zondereinde – esta
Slide 3: Northam – asset portfolio
Northam - asset portfolio NORTHAM PLATINUM LimMiwgTteob 100% Zondereinde mine & metallurgical processing 100% Booysendal mine Northam Chrome » 100% a) Producers Ca) 20.3% _ Trans Hex Group } ) Resource: 80.1Moz Resource: 103.9Moz Cr,0, concentrate Attributable resource: 2.1Moz Attributable resource:
Slide 4: Capacity, infrastructure, expertise
Capacity, infrastructure, expertise • Zondereinde – established, steady state, reliable producer • twin shaft system • mining both Merensky and UG2, producing ~300 000oz 4E annually • highest average grades in the industry – 5.0g/t • pioneers of low impact environmental hydropowered mining technolog
Slide 5: Shareholder information
Shareholder information Ownership profile (pre-BEE transaction) - as at 26 September 2014 • JSE listing since 1987 18.4% • Admitted to the Socially Responsible Investement Index since 2006 • Sponsored Level 1 ADR facility in the US 42.0% • Market cap of R14 billion (US$1.2 billion) 21.4% 5.2% 13.0%
Slide 6: F2014 in review
F2014 in review • 11-week wage strike at Zondereinde precursor to 5-month industry strike • Wage increases settled at between 7.5% and 9.5% • Zondereinde stages full recovery from strike by fourth quarter • Booysendal ramp-up continues • Balance sheet strengthened: rights offer successfully raised R
Slide 7: BEE transaction – key features
BEE transaction – key features • Landmark R6.6 billion BEE equity transaction • Effective net 35.4% HDSA ownership (including the Toro Trust) • R4 billion net cash injection to fund growth aspirations • Current value and growth potential supported by anchor shareholders, PIC and Coronation Asset Man
Slide 8: BEE transaction - structure
BEE transaction - structure Transaction structure New ordinary shares issued: 112.1 million BEE representation: 22.0% Value: R4.6 billion BEE SPV Total shares: (US$418 million) 159.8 million BEE representation: 31.4% Existing ordinary shares: 47.7 million Value: R6.6 billion BEE representation: 9.4%
Slide 9: BEE transaction - structure, cont’d
BEE transaction - structure, cont’d Total HDSA interest = 35.4% BEE SPV Toro Trust 31.4% effective 4.0% Strategic Employees Communities HDSA women partners 3.0% 5.0% 6.0% 17.4% Khomelela Atisa Booysendal Employee Trust Women’s Consortium Community Trust Consortium 4.0% Malundi Zondereinde Consortium
Slide 10: BEE - final structure
BEE - final structure R4 billion (US$364 million) net cash injection Back-up guarantee provided by Northam 31.4% 4% 35.4% HDSA Toro Trust effective shareholding credits HDSA ownership Preference shares BEE SPV Other Preference 100% of HDSA SPV’s shareholders ordinary shares HDSA participants 9
Slide 11: Five year impression
Five year impression 6 Sales revenue (ZAR billion) 450 000 PGMs sold (oz) 5.3 395 879 400 000 5 344 128 4.2 350 000 315 941 320 861 317 392 3.9 4 3.7 3.6 300 000 250 000 3 200 000 2 150 000 100 000 1 50 000 0 0 2014 2013 2012 2011 2010 2014 2013 2012 2011 2010 2 000 Capital expenditure (ZAR million)
Slide 12: Balance sheet at 30 June 2014
Balance sheet at 30 June 2014 • Domestic medium term note (DMTN) tap issue (R120 million/US$12 million) • Equity raising - rights offer (R600 million/US$60 million) • Increased RCF facility (R400 million/US$40 million) R million DMTN 1 370 • Covenant holiday until 31 December 2014 Nedbank RCF 1 400
Slide 13: Mining in SA – risk factors
Mining in SA – risk factors Group cost profile • Labour relations and inter-union rivalry 0% 13% • Legislative environment • mineral rights and security of tenure • Mining Charter review 42% • black economic empowerment 21% • Mining input costs • Education and skills void • Community concerns 24% La
Slide 14: Strategic review
Strategic review • Internal operational optimisation • Zondereinde • increasing LoM and further exploiting UG2 • metallurgical processing - leveraging advantages and reducing risks • Booysendal • continued ramp-up • improving concentrator recoveries • evaluate growth opportunities • Evaluating exter
Slide 15: Business strategy
Business strategy BUSINESS MODEL AND STRATEGY INPUTS wow uaa — Mary *retayy IO” %, 2 y ys Y & ry MINING, PROCESSING, ACCOUNTING “~@ Processing Zondereinde: deepening Zondereinde: UG2 Cost curve . “@ Booysendal: full production Booysendal: metallurgical Tecoveries Booysendal: Merensky ~“@ Greenfields
Slide 16: Investment case
Investment case • Solid operating platform • Large resource base • Optionality at Booysendal • Empowerment credentials in place • Balance sheet secures war chest • Well positioned for industry consolidation • Optionality at Booysendal 15
Slide 17: Disclaimer
Disclaimer Certain statements in this presentation (other than the statements of historical fact) may contain forward-looking statements regarding Northam’s operations, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum
Slide 18: Contact details Shareholder information
Contact details Shareholder information 1st Floor, 1A Albury Park Name Northam Platinum Limited Magalieszicht Avenue Share code NHM Dunkeld West ISIN code ZAE 000030912 Johannesburg 2196 South Africa Debt issuer code NHMI JSE sector Platinum Rene Rautenbach Shares in issue 397 586 090 Tel: +27 11 75