Northam Platinum Holdings Limited · JSE:NPH

Northam Platinum — FY2006 Earnings Presentation

14 slides from Northam Platinum's earnings presentation, Aug 3, 2006

  1. Slide 1: Record results for Northam

    Glyn Lewis CEO 3 August 2006 Record results for Northam • PGM production up 11.2% to 361 599 oz • Average basket price realised of R189 000/kg • 54% increase in sales revenues to R2.4 bn • Net income of R703 million – 183% higher • Unit cash costs down by 0.5% to R109 677/kg • Cash on hand of R831 m

  2. Slide 2: Operating performance / Safety performance

    Operating performance F2006 F2005 % Change Total development metres 13 920 11 131 25.1% Total square metres mined 416 066 390 093 6.4% Total tonnes milled 2 303 084 2 150 144 7.1% PGMs in conc. produced (kg) 11 247 10 115 11.2% Precious metals in concentrates produced - oz* oz 400 000 350 000 300 00

  3. Slide 3: Metals production / Metal prices realised

    Metals production F2006 F2005 Change Platinum (kg) 6 826 6 297 8.4% Palladium (kg) 3 428 3 056 12.2% Rhodium (kg) 762 547 39.3% Gold (kg) 231 215 7.4% Total 11 247 10 115 11.2% Metal prices realised (R/kg) F2006 F2005 Change Platinum (kg) 210 131 171 186 22.7% Palladium (kg) 54 653 40 287 35.7% Rhod

  4. Slide 4: Markets metal prices / Sales revenue

    Markets metal prices Basket Price (3PGE+Au) 1500 270 000 1300 250 000 1100 230 000 210 000 900 US$/oz R/kg 190 000 700 170 000 500 150 000 300 130 000 100 110 000 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Basket Price (US$/oz) Platinum (US$) Palladium

  5. Slide 5: Revenue contributions F2006 / Income statement – key features

    Revenue contributions F2006 MERENSKY Metal splits Revenue Pt 2% 5% 3% 18% Pd Rh Au R 181 731/kg 31% 9% 62% 71% UG2 Pt 10% 1% 1% Pd 32% Rh Au R 204 901/kg 31% 58% 59% 8% Income statement – key features 2006 2005 % change (R000) (R000) Sales revenues 2 386 1 555 53.5% Cost of sales 1 375 1 283 7.2% Ne

  6. Slide 6: Five year unit cash costs / Highly cash generative

    Five year unit cash costs 120 000.00 160 110 000.00 140 100 000.00 120 90 000.00 100 80 000.00 80 70 000.00 60 60 000.00 40 50 000.00 40 000.00 20 F2002 F2003 F2004 F2005 F2006 Unit cash cost (R/kg) CPIX Highly cash generative R million 900 800 831 700 731 600 500 502 506 400 300 295 200 100 0 F2002

  7. Slide 7: Capital expenditure

    Capital expenditure Actual F2006 R million Access infrastructure to 1 & 14 levels 67.4 Development 38.0 Metallurgical plants 16.9 Additional compressed air capacity 12.3 Backfill reticulation 9.2 Underground equipment 16.1 Routine 46.0 Total 205.9 Capital expenditure R million 250 200 206 200 176 15

  8. Slide 8: Income statement – key features / Returns to shareholders

    Income statement – key features 2006 2005 % change (R000) (R000) Earnings per share (cps) 300.9 107.3 180.4% Headline earnings per 300.9 107.3 180.4% share (cps) Dividends per share (cps) 280 70 300.0% Returns to shareholders Cents per share 300 165 250 175 135 200 H2 150 35 H1 80 100 110 115 100 70

  9. Slide 9: Market review: Markets - platinum

    Market review Markets - platinum • 61% of revenue – price range $860 to $1 331 per oz • Increased autocat demand – notably; • Light-duty diesel vehicles in Europe • Diesel particulate filters & retrofit applications • Strong growth in vehicle sales in China • Jewellery – resilient, but sales diminis

  10. Slide 10: Markets - palladium / Markets - rhodium

    Markets - palladium • 8% of revenue – price range $172 to $404 per oz • Autocatalyst sector – demand diminished due to thrifting on gasoline vehicles • Significant gains in jewellery sector • Demand in China now approaching 1.5 million ounces • Further growth likely, Palladium Alliance International

  11. Slide 11: Markets - nickel / Markets - outlook

    Markets - nickel • 8% of Northam’s revenue. Prices had risen to $ 23 050/mt in May • Historically high prices and significant price volatility • Stainless steel sector • robust demand for refined nickel metal • massive stainless steel capacity expansions in China • Demand set to continue, but higher

  12. Slide 12: Key issues going forward

    Key issues going forward • Wage negotiations • Maintaining production in very difficult mining conditions • Extraction ratios • Development • Conclude Booysendal transaction and continue to explore other opportunities • Licence conversions • Cost control Mine plan 2006 Area of potential reef disrupt

  13. Slide 13: Merensky facies ratios / Outlook

    Merensky facies ratios Four main reef types: Reef type Normal NP2 P2 FWP2 waste Current ratio 7% 32 % 44 % 17 % 8% Historical ratio 28 % 24 % 42 % 6% 4% 100% 80% 60% 40% 20% 0% Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 MONTH Outlook • Marginally lower production anticipated in H1 of F2007 owi

  14. Slide 14: Thank you

    Thank you Glyn Lewis CEO 3 August 2006 14

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