Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — Corporate Update (February 2002)
28 slides from Northam Platinum's corporate update, Feb 22, 2002
Slide 1: Welcome to Northam
Welcome to Northam • Overview - Managing Director, Ian Watson • Mining: - Mine Manager, Glyn Lewis • geology • technical • Metallurgy • Financial • Conclusion
Slide 2: Where do we come from?
Where do we come from? • Feb 1981 - Prospect drilling started • Jun 1986 - Shaft sinking commenced • Jan 1993 - Official opening of mine and sale of first PGMs • Feb 1999 - First dividend paid • Feb 2000 - Acquisition of ground from Anglo Plats • Aug 2000 - Mvelaphanda BEE deal • Dec 2000 - UG2 plan
Slide 3: After the strike
After the strike • 2 year wage agreement • Progress in joint forums • Relationship building • AIDS policy • Housing policy
Slide 4: Mining location
Mining location • The mine is situated at the northern end of the western limb of the Bushveld complex • Down dip from Amandelbult • Reef horizon 1 200 – 2 050 mbc (Merensky & UG2) • Reef dips 20 degrees south-east • Total lease area is 7 600 hectares • Strike length is 8.5 km
Slide 5: Mining authorisation area
Mining authorisation area i mbi ab az Th N 10 Anglo Plats bi R5 Amandelbult Section azi m hab T rg bu 1 2 n uste 13 Level R 18 Level R511 Middellaagte Graben Brits Current Mining Area Middeldrift Section
Slide 6: Regional geology
Regional geology C EF11 EF10 N 7 Level KN1 13 Level Transition Zone raben VR1 41 Line Fault aagte G 20 Line Fissure/Fault Big John Dyke Zone Middell WY1 N2 Little John Dyke B MT5 37 Line Fissure Zone Mined out Area Pothole Reef Facies Normal Reef Facies
Slide 7: Geological section
Geological section Chromitite MERENSKY Cr NORMAL MERENSKY REEF Zone of Cr mineralisation 12m Transition zone NP2 MERENSKY REEF 5m Transition zone Cr P2 MERENSKY REEF Cr 2 to 4m FWP2 MERENSKY Merensky footwall rocks REEF UG2 UG2 Cr +-38m +-20m below below Normal P2 reef reef Cr UG2 reef Cr Cr
Slide 8: Merensky reef
Merensky reef Two main facies types: Current mining ratio Comment 1. Normal reef 28% Intermediate grade 2. Regional pothole: NP2 reef type 22% Lowest grade reef P2 reef type 41% Highest grade reef FWP2 reef type 4% Generally unmineable
Slide 9: UG2 reef
UG2 reef 3 chromitite layers separated by pyroxenite • Main member approx 80cm thick • Leaders approx 20 cm thick separated by 15cm pyroxenite Grade distribution • Highest in the main members • Lesser in the leaders • Minor in the intermediate pyroxenite
Slide 10: UG2 development requirements
UG2 development requirements 3 Level X/Cut Existing Merensky raise 38m UG2 raise Existing Merensky boxholes UG2 boxhole 4 Level X/Cut
Slide 11: Typical extraction rates
Typical extraction rates Merensky - 13% geological losses (dykes, faults) - 73% extraction of balance (potholing) = 63 % total extraction UG2 - 13% geological losses - 68% extraction of the balance = 59% total extraction
Slide 12: Resources and reserves: Merensky Reef
Resources and reserves Merensky Reef Mineral Reserves Mineral Resources Tonnes MHG Metal Tonnes MHG Metal Mt g/t koz Mt g/t koz Proved 1.6 5.8 298 Measured 1.4 7.6 330 Probable 36.5 5.7 6 639 Indicated 54.2 7.3 12 735 Total 38.1 5.7 6 937 Total 55.6 7.3 13 065
Slide 13: Ore flow – Merensky reef
Ore flow – Merensky reef Face Tons 78 % 7.6 g/t Transition Mining 6% 0.0 g/t Other Sources 4% 1.2 g/t On Reef Development 4% 4.1 g/t Tonnage Discrepancy 8% 0.0 g/t Total Reef Hoisted 100 % 6.2 g/t Mine Call Factor 93 % Mill Head Grade 5.8 g/t
Slide 14: Resources and reserves: UG2 Reef
Resources and reserves UG2 Reef Mineral Reserves Mineral Resources Tonnes MHG Metal Tonnes MHG Metal Mt g/t koz Mt g/t koz Proved 2.0 3.8 242 Measured 1.7 4.7 255 Probable 19.8 3.8 2 446 Indicated 69.3 4.7 10 548 Total 21.8 3.8 2 668 Total 71.0 4.7 10 803
Slide 15: Ore flow – UG2 reef
Ore flow – UG2 reef Face Tons 84 % 4.7 g/t Transition Mining 1% 0.0 g/t Other Sources 4% 0.0 g/t On Reef Development 4% 3.3 g/t Tonnage Discrepancy 7% 0.0 g/t Total Reef Hoisted 100 % 4.1 g/t Mine Call Factor 93 % Mill Head Grade 3.8 g/t
Slide 16: Geothermal gradient
Geothermal gradient • Average mining depth is 1600 mbc • High VRT – 45°C to 67°C • High ventilation requirements • Downcast air 770 m³/sec • Bulk air cooler – air in at 25°C, out at 10°C • Chilled water plant – water in at 15°C, out at 5°C • In-stope coolers
Slide 17: Hydropower
Hydropower • Only mine in the industry using hydropower exclusively • Extensive R&D to develop underground equipment: • Rock drills • Drill rigs • Loaders • Roof bolters • Benefits: • cooling • reduced noise levels • improved drilling efficiencies
Slide 18: Rock mechanics
Rock mechanics Deepest platinum mine in the world : • Major faults and dykes • Sympathetic faulting requiring bracket pillars to prevent ingress of water • Major joint sets • Dome fractures in hanging wall associated with reef type changes • Distinct bed separation Safety implications
Slide 19: Support systems
Support systems Support systems include: • Stoping • backfill • pre-stressed elongates • roof bolts (UG2) • seismic system • Development • roof bolts • long anchors • wire mesh and lacing • wetcrete
Slide 20: Development: face length vs development metres
Development Mineable Face Length vs Development Metres Merensky Reef 5500 2000 5000 1800 4500 1600 Developm ent Metres 1400 4000 Face Length 1200 3500 1000 3000 800 2500 600 2000 400 1500 200 1000 0 02 03 1 2 ay ay p p ct ct ug ar ug ar v Ja c v Ja c b Ju n b n pr pr -0 l- 0 No No Se De Se De Ju Ju
Slide 21: Productivity
Productivity Total Mine Previous Current % Improvement In Stope year M²/man 19.9 22.4 12.5 Tons/man 90.7 107.3 18.2 Advance per Org Unit 9.8 10.5 7.1 Normal Reef Mining M²/man 23.2 26.6 14.7 Tons/man 108.0 124.2 15.0 Advance per Org Unit 10.3 11.8 14.6
Slide 22: Metallurgy
NORTHAM Metallurgy Mining Concentrators Smelter BMR PMR (Heraeus) Merensky Concentrator [| | @e222222250] No 1 Shaft Filter Primary dissolution UG2 Concentrator Nickel Sulphate |‘ Separation No 2 Shaft Furnace Autoclave Purification Thickener Converter a) Pure Products Cathode PGM Copper Concentrate
Slide 23: First half results summary
First half results summary 6 months 6 months Ended 31 Dec Ended 31 Dec 2001 2000 Metals produced kg(3PGE+Au) 3 867 4 249 Sales kg (3PGE+Au) 4 192 4 233 Sales revenue (R000’s) 669 411 741 579 Cost of sales (R000’s) 476 712 390 747 Operating profit (R000’s) 192 699 350 832
Slide 24: Metals production F2002
Metals production F2002 Average monthly metals production 900 800 700 Kg (3PGE+Au) 600 500 400 300 200 100 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Metals in concentrate (3PGE+Au) Forecast
Slide 25: Costs
Costs First half Forecast Labour Cash costs 40.6% 96 733 87 119 R/kg (3PGE+Au) Operating margin 29% 36% Cash cost distribution Contractors 10.5% Sundries 7.1% Stores 32.5% Utilities 9.3%
Slide 26: Basket prices F2002
Basket prices F2002 US$/oz Based on average spot prices and exchange rate ZAR/kg 800 200000 180000 700 160000 140000 600 120000 500 100000 80000 400 60000 40000 300 20000 200 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun US$ Basket Price (3PGE+Au) US$ Basket Price Fcst ZAR Basket Price (3PGE+Au)
Slide 27: Metals prices F2002
Metals prices F2002 Pt, Pd Rh US$/oz US$/oz 600 1800 1600 500 1400 400 1200 1000 300 800 200 600 400 100 200 0 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Platinum Pt forecast Palladium Pd forecast Rhodium Rh forecast
Slide 28: Outlook
Outlook • Metal production at normal levels • Improved profitability • Improved earnings per share
Northam Platinum Holdings — Corporate Update (February 2002) on 6ix