Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — H1 2011 Earnings Presentation
12 slides from Northam Platinum's earnings presentation, Feb 28, 2011
Slide 1: H1 results: six months to 31 December 2010 – Key features
H1 results: six months to 31 December 2010 Glyn Lewis, chief executive 28 February 2011 Key features • Poor production performance impacted by strike • Higher basket price environment • E i Earnings 65% llower • Cash balance maintained year on year • Dividend reduced to 5 cps (4 times cover) • Booys
Slide 2: Safety – remains a key focus
Safety – remains a key focus Injury incidence rates per 200 000 man hours 6 5.0 5 4.1 4 3 2.5 2.3 2.3 2.3 2.1 2 1.5 1.4 1.0 1 0.8 1.2 1.3 1.2 1.3 10 1.0 10 1.0 10 1.0 10 1.0 0.6 0.5 0.7 0 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 H1 2011 LTIIR RIIR 3 3 Zondereinde geology 4 2
Slide 3: Zondereinde geology
Zondereinde geology 5 5 Zondereinde geology 6 6 3
Slide 4: Operating performance
Zondereinde geology 7 7 Operating performance H1 2011 H1 2010 Change Merensky tonnes milled 368 660 500 957 -26.4% Merensky head grade (g/t) 5.7 5.9 -3.4% UG2 tonnes milled 324 800 575 244 -43.5% UG2 head grade (g/t) 4.4 4.6 -4.3% Total tonnes milled 693 460 1 076 201 -35.6% Average combined head gr
Slide 5: Income statement – salient features
Income statement – salient features H1 F2011 H1 F2010 Change (R000) (R000) Sales revenue 1 614 063 1 736 599 -7.1% Cost of sales 1 546 932 1 502 517 3.0% Operating profit 67 131 234 082 -71.3% Share of earnings in associate 1 415 5 174 -72.7% Investment income 50 397 108 034 -53.4% Net sundry income
Slide 6: Market update – Basket price vs costs
R/kg 100 000 200 000 300 000 400 000 500 000 600 000 Jul-07 Aug-07 Aug-07 Sep-07 Oct-07 R167 829 R311 369 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 R183 007 R499 562 May-08 Jun-08 Jul-08 Market update Aug-08 Sep-08 Oct-08 R184 213 R322 814 Nov-08 Basket price vs costs Dec-08 Jan-09 Feb-09 Mar-09 Apr
Slide 7: Market review
Market review • Autocatalysts • continuing recovery in motor manufacturing sector throughout 2010 • global production and sales of light duty vehicles exceed 70 million units • vehicle sales in China exceed 18 million • US market – recovery in HDD market • EU market – increase in diesel market share
Slide 8: Summary outlook and Booysendal – sound progress
Summary outlook • Autocatalyst • recovery likely to continue • on-going on going tightening of emissions legislation • on-going growth in China, but at a reduced rate • US and EU markets poised for further growth • Jewellery • sales likely to remain robust, but challenged by high prices • Industrial
Slide 9: Proposed transaction
Proposed transaction • Rationale – focus on cash and near cash, improved BEE credentials • Assets purchased • R650 million illi cash h • 20.3% of Transhex (valued at R50 million) • 50% of Dwaalkop JV • BEE credentials – post the Mvela unbundling and the proposed transaction Northam’s BEE shareholdin
Slide 10: Sales volumes
H1 results: six months to 31 December 2010 Glyn Lewis, chief executive 28 February 2011 Sales volumes F2011 H1 F2010 H1 Change (kg) (kg) Platinum 2 909 3 777 -23.0% Palladium 1 331 1 815 -26.7% Rhodium 343 420 -18.3% Gold 99 122 -18.9% Total (3PGE+Au) 4 682 6 134 -23.7% Ruthenium 564 661 -14.7% Irid
Slide 11: Sales volumes and sales prices realised (Rands)
Sales volumes F2011 H1 F2010 H1 Change (oz) (oz) Platinum 93 517 121 424 -23.0% Palladium 42 789 58 366 -27.7% Rhodium 11 041 13 500 -18.3% Gold 3 180 3 916 -18.9% Total (3PGE+Au) 150 527 197 206 -23.7% Ruthenium 18 136 21 248 -14.7% I idi Iridium 4 369 4 749 -8.1% 8 1% Copper (tonnes) 357 388 -8.0%
Slide 12: Sales prices realised (US$)
Sales prices realised (US$) F2010 F2009 Change ($/oz) ($/oz) Platinum 1 606 1 306 23.0% Palladium 565 304 85.9% Rhodium 2 236 1 759 27.1% Gold 1 288 1 028 25.3% Total (3PGE+Au) 1 349 1 035 30.3% Ruthenium 184 93 97.8% Iridi m Iridium 732 398 83 9% 83.9% Copper ($/t) 7 114 5 568 27.8% Nickel ($/t) 22
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