Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — H1 2009 Earnings Presentation
24 slides from Northam Platinum's earnings presentation, Feb 5, 2009
Slide 1: For the six months ended 31 December 2008
FOR THE SIX MONTHS ENDED 31 DECEMBER 2008 Glyn Lewis, Chief Executive Officer 5 February 2009 www.northam.co.za
Slide 2: The line-up
The line-up • The new Northam • Key features of the half-year • Booysendal – progress report • K issues Key i going i fforward d • The Northam investment case 2
Slide 3: Evolving corporate structure
Evolving corporate structure • Progress in diversifying the asset base 100% 100% 100% Northam Booysendal Zondereinde mine metallurgical processing platinum project Heraeus refining 3
Slide 4: The Northam track record
The Northam track record • Northam mine – reliable, consistent mid-tier producer • approximately i t l 5.0 50M Moz produced d d tto d date t • highest recovered yield in the industry • cost p profile in the lower half of industry y cost curve • Moderate capex requirements going forward • Cash positi
Slide 5: Northam into the future
Northam into the future • Booysendal, a world class orebody, shallow and conducive to mechanisation • project planning on track North • intrinsic value retained based on long term Polokwane PGM fundamentals PP Rust WF • modular approach to development provides Mokopane Lebowa funding flexibility in
Slide 6: Fully integrated metallurgical operations
Fully integrated metallurgical operations • Concentrator plants, reliable smelter and base metals removal plant • Smelter rebuild and upgrade g completed on schedule and within budget g • Tradition of innovation, improving recoveries • Leveraging capacity, offtake agreements concluded • Platmin • Po
Slide 7: H1 2009: key features from the results
H1 2009: key features from the results • 10.7% increase in production to 5 193 kg (166 952 oz) • Good grade control • Below inflation unit cost increases • Healthy cash levels at R731 million • Operating margin at 37% • Focus on safety – sustained improvements 7
Slide 8: Safety: a key focus area
Safety: a key focus area Injury Incldence rates per 200 000 man hours [dbl INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2008 www.northam.co.za
Slide 9: Creditable operating performance
Creditable operating performance H1 F2009 H1 F2008 Change Total development metres 6 272 6 426 -2.4% Merensky square metres 107 752 103 920 3.7% Merensky head grade (g/t) 5.8 5.6 3.6% UG2 square metres 88 242 74 644 18.2% UG2 head grade (g/t) 4.4 4.4 - Total square metres mined 196 000 178 564 9.8%
Slide 10: Sales volumes
Sales volumes H1 F2009 H1 F2008 Change ( ) (kg) ( ) (kg) Platinum 2 771 2 607 6.3% Palladium 1 341 1 214 10.5% Rhodium 409 285 43.5% Gold 78 67 16.4% Total (3PGE+Au) 4 599 4 173 10.2% Ruthenium 305 647 -52.9% Iridium 129 106 21.7% Copper (tonnes) 277 275 1.0% Nickel (tonnes) 583 563 3 6% 3.6% 10
Slide 11: Income statement
Income statement H1 F2009 H1 F2008 Change (R000) (R000) Sales revenue 1 612 257 1 497 084 7.7% Operating profit 602 037 788 994 -23.7% Investment est e t income co e 72 434 40 868 77.2% Net sundry income 22 758 (6 839) 432.8% Booysendal expenditure (41 617) - - Profit before tax 655 612 823 023 -20.
Slide 12: Cost of sales
Cost of sales H1 2009 H1 2008 Change (R000) (R000) Sales volumes (kgs) 4 599 4 173 10.2% *Operating costs – on mine 896 823 740 224 21.6% Concentrates purchased 14 029 - - Smelting, refining and realisation 151 317 92 680 63.3% Depreciation 106 897 71 999 48.5% Change in metal stocks (158 846) (196
Slide 13: Comparative unit cash costs
Comparative unit cash costs H1 F2009 H1 F2008 Change R d / ttonne milled Rand t t l1 ill d – total 822 87 822.87 768 29 768.29 7 1% 7.1% R/kg (3PGE+Au) – total 184 213 167 828 9.8% Rand / tonne milled – on mine2 759 69 759.69 712 05 712.05 6 7% 6.7% R/kg (3PGE+Au) – on mine 170 070 155 545 9.3% 1 To
Slide 14: Continuous improvements in processing performance
Continuous improvements in processing performance Head grade Tonnes milled (3PGE+A 1 800 000 6.5 1 600 000 2.5:1 2.2:1 2 0:1 2.0:1 1 6:1 1.6:1 6.0 1 400 000 1.4:1 5.5 1 200 000 1.1:1 1 000 000 5.0 800 000 4.5 600 000 1.0:1 4.0 400 000 3.5 200 000 0 3.0 F2003 F2004 F2005 F2006 F2007 F2008 H1 F2009 Me
Slide 15: Cash positive at current prices
Cash positive at current prices Rand basket Price (spot) R/kg (3PGE+Au) 700 000 600 000 R533 566 500 000 R467 203 R406 837 400 000 R311 089 R297 792 300 000 R236 706 200 000 R183 290 R184 610 R183 798 R167 612 R166 823 R175 620 100 000 Jul-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 May-08 Jun-08 J
Slide 16: Revenue contributions
Revenue contributions 100% 5 5 7 9 10 8 5 5 11 13 12 8 5 80% 9 12 20 15 30 28 23 8 29 30 8 60% 6 6 6 40% 73 66 67 61 57 54 57 49 49 20% 0% F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 H1 F2009 Platinum Palladium Rhodium Gold Nickel Other 16
Slide 17: Market outlook
Market outlook • Current uncertainty regarding market surplus or deficit to persist in near term • Demand • autocatalyst – demand severely depleted, consolidation during 2009 • industrial, electrical, chemical – demand to contract on global recession • jewellery – opportunities for growth at lower a
Slide 18: Booysendal – on schedule
Booysendal – on schedule • Uninterrupted focus on project feasibility work • M d l d Modular design i ensuring i maximum i flflexibility ibilit • Plant and infrastructure design on track • Completion of BFS during 2nd half of 2009 18
Slide 19: Preliminary implementation schedule
Preliminary implementation schedule Booysendal capex estimate Jan 2009 C2009 C2010 C2011 C2012 C2013 Bankable feasibility study Project set-up and site establishment Mining Decline 1 Portal Mining Decline 2 Portal Mining Decline 3 Portal Mining Concentrator Order mills Commission concentrator Constr
Slide 20: Capex spread and production build-up
Capex spread and production build-up 140,000 1000 900 120,000 s pa 800 s pm / Ounces 100,000 700 R million 80,000 600 500 60,000 400 Tonnes 40,000 300 200 20,000 100 R70m 0 0 2009 2010 2011 2012 2013 2014 Production build-up (ktpm) ounce profile Initial capex (Rm) 20
Slide 21: Implats approach
Implats approach • Implats approach • unsolicited approach • Booysendal remains premier new production opportunity in the Bushveld • we will continue with Booysendal in our time frame • BFS carried out by independent consultants • size of the resource indicates that value will be unlocked over time
Slide 22: Key issues going forward
Key issues going forward • Northam • wage negotiations ti ti • working days in second half • Platmin • Braemore • Booysendal • complete BFS • evaluate Booysendal funding mechanism 22
Slide 23: Northam investment case
Northam investment case • Track record of consistent delivery • Unit costs at lower half of industry cost curve • Positive cash levels • Diversifying revenue stream • Strong, ungeared balance sheet • Growth prospects based on shallow ounces 23
Slide 24: For the six months ended 31 December 2008
FOR THE SIX MONTHS ENDED 31 DECEMBER 2008 Glyn Lewis, Chief Executive Officer 5 February 2009 www.northam.co.za
Northam Platinum Holdings — H1 2009 Earnings Presentation on 6ix