Northam Platinum Holdings Limited · JSE:NPH

Northam Platinum — H1 2008 Earnings Presentation

25 slides from Northam Platinum's earnings presentation, Feb 13, 2008

  1. Slide 1: Interim Results, 13 February 2008

    13 February 2008 www.northam.co.za

  2. Slide 2: Agenda

    Agenda • Safety • Operating and financial performance • Geology • Market review • Outlook 2 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.za

  3. Slide 3: Overview

    Overview • 23 production days lost following safety stoppages • Production of PGMs down 16.5% • Record PGM prices continue • Significant cost pressures • Operating margin remains above 50% 3 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.za

  4. Slide 4: Safety: a key focus area

    Safety: a key focus area Injury incidence rates per 200 000 man hours 6 5.0 5 4.1 4 3 2.5 2.3 2.3 2.4 2.1 2 1.5 1 1.2 1.3 1.2 1.3 1.0 1.0 1.0 1.0 0 F2001 F2002 F2003 F2004 F2005 F2006 F2007 H1 F2008 LTIIR RIIR 4 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.za

  5. Slide 5: Operating performance

    Operating performance H1 F2008 H1 F2007 Change Total development metres 6 426 8 204 -21.7% Merensky square metres 103 920 137 368 -24.4% Merensky head grade (g/t) 5.6 5.6 0% UG2 square metres 74 644 78 152 -4.5% UG2 head grade (g/t) 4.4 4.3 1.4% Total square metres mined 178 564 215 520 -17.2% Total

  6. Slide 6: It's a UG2 story…

    It’s a UG2 story… 120 2.5:1 2.2:1 2.0:1 1.6:1 1.4:1 1.4:1 100 80 60 40 20 0 F2003 F2004 F2005 F2006 F2007 H1 F2008 Merensky UG2 6 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.za

  7. Slide 7: … with help from the rhodium price

    … with help from the rhodium price Metal prices used MERENSKY Pt – $1 700 /oz Pd – 370 /oz Metal splits Revenue Rh – 7 000 /oz Pt Au - $820 /oz 5% 3% 1% Pd 23% Rh Au 29% R 377 000/kg 7% 63% 69% UG2 Pt 10% 1% 0% Pd Rh 40% Au R 439 000/kg 31% 54% 58% 6% 7 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DE

  8. Slide 8: Sales volumes

    Sales volumes H1 F2008 H1 F2007 Change (kg) (kg) Platinum 2 607 3 393 -23.2% Palladium 1 214 1 511 -19.7% Rhodium 285 457 -37.6% Gold 67 95 -29.5% Total (3PGE+Au) 4 173 5 455 -23.5% Ruthenium 647 663 -2.4% Iridium 106 139 -23.7% Copper (tonnes) 275 328 -16.2% Nickel (tonnes) 563 682 -17.4% 8 INTERIM

  9. Slide 9: Revenue contributions

    Revenue contributions 100% 5 5 7 9 8 10 11 7 13 12 8 5 80% 9 12 20 15 27 8 29 23 Other 30 8 60% Nickel 6 6 Gold Rhodium 40% Palladium 73 66 67 Platinum 57 61 49 49 53 20% 0% F2001 F2002 F2003 F2004 F2005 F2006 F2007 H1 F2008 9 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.

  10. Slide 10: Cost of sales

    Cost of sales H1 2008 H1 2007 Change (R000) (R000) Cost of sales 708 090 820 745 (13.7%) Operating costs 797 819 695 054 14.8% Concentrates purchased - 66 364 Refining and realisation 35 085 41 650 (15.8%) Depreciation 71 999 63 684 13.1% Change in metal stocks (196 813) (46 007) (327.8%) 10 INTERIM

  11. Slide 11: Unit cash costs

    Unit cash costs H1 F2008 H1 F2007 Change Rand / tonne mined 674.10 484.04 39.3% Rand / tonne milled 768.29 550.86 39.4% Rand /kilogram (3PGE Au) 167 828 122 722 36.8% produced 11 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.za

  12. Slide 12: Income statement

    Income statement H1 F2008 H1 F2007 Change (R000) (R000) Sales revenue 1 497 084 1 806 674 -17.1% Cost of sales 708 090 820 745 -13.7% Operating profit 788 994 985 929 -20.0% Investment income 40 868 35 545 15.0% Net sundry income (6 839) 3 142 -317.7% Profit before tax 823 023 1 024 616 -19.7% Tax 3

  13. Slide 13: Geology

    Geology 13 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.za

  14. Slide 14: Geology - key points

    Geology - key points • Eastern transition zone – Merensky life-of-mine (LOM) loss • Deepening project progress – LOM gain • 20 line progress – continuing development but slow reserve build-up • Facies mix – implications for grade 14 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.north

  15. Slide 15: Mine plan

    Mine plan dyke 15 line yke Big John D y s p la ine eastern 19 l transition zone al gon dia possible normal reef 41 20 LJD 37 15 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.za

  16. Slide 16: Percentage Merensky facies and grade

    NP2 and grade 5c m 100% 13% 80% PERCENTAGE MERENSKY FACIE 27% 60% 40% 40% 6 0cm 20% 14% 6% 0% Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 MONTH 16 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.za

  17. Slide 17: Markets

    Markets 17 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.za

  18. Slide 18: Market review

    Market review • Robust demand for Northam’s basket of metals has persisted; prices have remained bouyant throughout the reporting period. • Pt - (53% of revenue) - continued growth in autocat demand (diesel vehicles, particulate filters, after treatment applications). Jewellery sales resilient. Grow

  19. Slide 19: Rhodium metal prices

    Metal prices 7 500 7 000 $ 6 850 6 500 1 700 6 000 $ 1 544 5 500 1 300 5 000 4 500 Pt, Pd, Au Rhodium 4 000 900 3 500 $ 842 3 000 2 500 500 2 000 $ 380 1 500 1 000 100 500 07 07 08 06 M 7 07 06 06 07 07 07 08 07 07 08 06 06 07 07 06 7 r0 l0 ay ar ar g g n n n ct ct ov ov b b p p l ec ec Ap Ju Ju Au

  20. Slide 20: Basket prices US$/oz

    Basket prices 2 000 450 000 1 800 400 000 1 600 1 400 350 000 1 200 US$/oz R/kg 300 000 1 000 R 304 494/kg R 291 547/kg 800 250 000 R 264 866/kg 600 200 000 400 200 150 000 7 6 7 07 07 08 06 6 6 07 7 07 7 7 08 8 6 7 06 07 07 -0 l-0 l-0 -0 -0 -0 -0 -0 -0 -0 -0 p- p- n- n- n- b- b- g- g- r- ov ec ov e

  21. Slide 21: Market outlook

    Market outlook • Demand outlook for all metals to remain strong. • Pt & Rh markets currently driven by physical shortages & supply side risks; the market deficit for these metals to continue. • Pd – market surplus to persist; however continued substitution for Pt in autocats, supported by demand fro

  22. Slide 22: Rhodium metal prices outlook

    Metal prices outlook 8 000 7 500 2 100 $ 9 000 7 000 $ 7 000 6 500 $ 2 200 1 700 $ 1 500 6 000 5 500 5 000 Pt, Pd, Au Rhodium 1 300 4 500 4 000 3 500 900 3 000 2 500 2 000 500 $ 500 $ 400 1 500 1 000 100 500 07 07 08 6 07 07 8 06 07 07 07 08 07 07 08 06 07 07 07 0 r0 ay ar ar r g ct ct n n n ov ov b

  23. Slide 23: Conclusion

    Conclusion 23 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 www.northam.co.za

  24. Slide 24: Key issues going forward

    Key issues going forward Operating issues • Safety • Skills retention • Costs • Power disruptions • Merensky mining conditions Growth • Conclude Booysendal transaction Markets • Strong fundamental demand continues Outlook • Production in H2 is expected to correspond to H1 and earnings will be determ

  25. Slide 25: Northam Platinum

    NORTHAM PLATINUM FOR THE SIX MONTHS ENDED 31 DECEMBER 2007

Northam Platinum — H1 2008 Earnings Presentation on 6ix