Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — Investor Presentation (May 2006)
13 slides from Northam Platinum's investor presentation, May 2006
Slide 1: Investor presentation May 2006
Investor presentation May 2006 Contents About Northam The market Performance Growth Conclusion 2 1
Slide 2: About Northam / Current operations
About Northam Broadly-based black economic empowerment company Listed on JSE since 1987. Admitted to JSE SRI Index in April 2006 Wholly-owns and operates the Northam Platinum mine on the Western Limb of the Bushveld Complex, near Thabazimbi in Limpopo Province Pursuing expansion – Booysendal
Slide 3: Into the market / Returns to shareholders
Into the market Refining undertaken by Heraeus: new refinery being constructed in South Africa as alternative to “big two” Capacity development by Northam End products in high demand – good delivery status Reliable and independent supplier to established contractual customer base in major
Slide 4: The market
7 The market Platinum market to remain robust Demand Prices reached 25-year highs Automotive industry remains largest user (+/– 50% of platinum offtake) continuing strong demand for light-duty diesel vehicles in Europe increasingly stringent legislation Platinum jewellery fabrication conti
Slide 5: Palladium gains momentum / Rhodium
Palladium gains momentum Demand Strong gains in jewellery sector – particularly in China, USA Autocatalyst demand continues in excess of 4Moz Substitution gains in diesel sector – likely to increase Supply Mine production rising, particularly in Russia. Expansion gains in SA Significant su
Slide 6: Performance / Risk management
11 Performance Risk management Major thrust to manage and reduce operational risk Focus on safety and environmental issues Integrated sustainability practices: admitted to JSE SRI Index April 2006 12 6
Slide 7: Consistent improvements / Reserves and resources
Consistent improvements F2004 F2005 F2006 H1 H2 H1 H2 H1 Total square metres 245 360 190 845 183 566 207 327 219 159 mined Total tonnes milled 1 212 506 1 020 081 989 883 1 160 261 1 193 045 PGMs in conc. 5 694 4 898 4 649 5 466 5 807 produced (kg) Refined PGMs sold (kg) 6 486 5 247 4 723 5 199 5 86
Slide 8: Production profile / Sales revenue
Production profile, cont’d Current production: 64% Merensky / 36% UG2 Metal splits Revenue 3.4% Platinum 2.0% Merensky 5.8% Palladium Rhodium 24.6% Gold Revenue: 29.6% R181 770/kg 61.2% 9.7% 63.6% 2.1% Platinum 1.1% UG2 12.7% Palladium Rhodium 44.6% Gold 45.0% 51.4% Revenue: 33.8% R212 820/kg 9.3% 1
Slide 9: Metal prices / Key financial performance indicators
Metal prices Basket Price (3PGE+Au) US/oz R/kg 1300 250,000 1100 230,000 210,000 900 190,000 700 170,000 500 150,000 300 130,000 100 110,000 01/07/05 21/07/05 11/08/05 01/09/05 21/09/05 11/10/05 31/10/05 18/11/05 08/12/05 30/12/2005 20/01/2006 09/02/2006 02/03/2006 23/03/2006 12/04/2006 08/05/2006 B
Slide 10: Growth
19 Growth Pursuing growth in margins and ounces Optimising current operations External vertical sparger – capex of R1.5 m repaid in one month High intensity cells installed to improve UG2 recoveries to a record 85% Leveraging metallurgical processing/refining expertise, capacity and technolo
Slide 11: Conclusion
21 Conclusion Still upside in Northam… Market fundamentals remain sound – record prices set to continue Steady performance expected as development continues apace Continued emphasis on cost containment Highly cash generative Track record of returning cash to shareholders Only mid-sized S
Slide 12: Contact details / Disclaimer
Contact details Derek Wolstenholme: Corporate finance manager [email protected] Rene Rautenbach: Manager - projects [email protected] Marion Brower: Russell and Associates [email protected] Tel: +27 (0)11 759 6000 Website: www.northam.co.za 23 Disclaimer This presentatio
Slide 13: Investor presentation
Investor presentation May 2006 13
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