Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — Investor Presentation (May 2004)
24 slides from Northam Platinum's investor presentation, May 2004
Slide 1: Investor presentation: Leveraging Successful Empowerment
Investor presentation Leveraging Successful Empowerment London – May 2004 Glyn Lewis, General Manager 1
Slide 2: Agenda
Agenda: Introduction and overview Operational data Interim results Outlook and prospects Strategic opportunities going forward 2
Slide 3: What we do
What we do SA’s fourth largest PGM producer – 330,000 oz pa Deep-level mining of Merensky and UG2 reefs Reserves of 11.3 Moz World-class mining, process, infrastructure and expertise JSE listing – platinum sector - NHM Impeccable empowerment credentials 3
Slide 4: A potted history
A potted history 1986 Shaft sinking 1993 Mine opening and first sale of PGMs 1999 First dividends paid 2000 Acquisition of ground from AngloPlats 2000 Unbundling from GFSA 2000 Mvelaphanda BEE transaction 2000 UG2 plant commissioned 2002 Smelter rebuild 2004 Booysendal transaction 4
Slide 5: Location map
Location map WWWEnortham.c © Polokwane (Pietersburg) Mokopane (Potgietersrust) Lebowa di 4 of Amandelbult Section oy __ BO RCe cot me Northam Platinum 0 BelaBela Der Brochen Project Union Section (Warbaths) 5 Groblersdal Pilanesburg Booysendal JV. Impala Platinum © Zeerust Brits Crocodile River Mine
Slide 6: Ownership profile
Ownership profile 22.3% Mvela Resources 22.5% Free Float 55.2% 55.2% Gray 26.1% (Alan Stanlib 6.2%) Anglo Platinum 22.5% 22.5% 6
Slide 7: Ownership profile
Ownership profile 22.3% Mvela Resources 34% BEE 55.2% 22.5% 7
Slide 8: Production over 5 years
Production over 5 years Troy ounces 350,000 332,888 165,540 300,000 280,516 269,156 271,937 143,903 130,396 147,607 250,000 200,000 H2 183,063 H1 150,000 167,348 138,760 136,613 H2 124,330 100,000 50,000 0 F2000 F2001 F2002 F2003 F2004 8
Slide 9: Production profile
Production profile Gold Other PGMs 2% 13% Rhodium Platinum 6% 53% Palladium 26% 9
Slide 10: Distributions
Distributions SA cps 300 250 245 235 200 150 145 H1 120 100 45 50 0 F2000 F2001 F2002 F2003 F2004 10
Slide 11: Merensky Reef
Merensky Reef Two main facies types: Current mining ratio Comment 1. Normal reef 20% Intermediate grade 2. Regional pothole: NP2 reef type 27% Lowest grade reef P2 reef type 43% Highest grade reef FWP2 reef type 5% Generally unmineable Other waste 5% No grade 11
Slide 12: 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 Pyroxenite H/W Highest in the main member Leader 2 Leader 1 Lesser in the leaders Minor in the intermediate pyroxenite Main Member P
Slide 13: Reserves and resources (Northam lease area)
Reserves and resources (Northam lease area) Mineral Reserves Mineral Resources Tonnes MHG Metal Tonnes MHG Metal Mt g/t koz Mt g/t koz Merensky 27.2 6.1 5 306 Merensky 44.8 7.5 10 829 UG2 46.4 4.0 5 988 UG2 63.9 4.7 9 480 Total 73.6 11 294 Total 108.7 20 309 13
Slide 14: 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 14
Slide 15: Rock mechanics
Rock mechanics Seismic system Support systems include: Stoping backfill pre-stressed elongates roof bolts (UG2) Development roof bolts long anchors wire mesh and lacing wetcrete 15
Slide 16: Metallurgical process
Metallurgical process Mining} Concentrators Smelter BMR PMR (Heraeus) Merensky Concentrator 1 No 1 Shaft Primary dissolution UG2 Concentrator Nickel Sulphate | Mii Separation No2 Shaft Furnace Autoclave | Purification Thickener Cee _—— Pure Products Cathode = PGM Copper Concentrate Pt Pd Rh Au Rulr
Slide 17: Interim results key features
Interim results key features Tons milled higher by 7.3% Metals in concentrate up 9.4% to 183 063 oz (5 694 kg) Metal sales increased to 208 523 oz (6 486 kg) Costs contained R418 million cash on hand Interim dividend of 45 cps 17
Slide 18: Interim results summary
Interim results summary 31 Dec 2003 31 Dec 2002 Tonnes milled 1 212 506 1 130 077 Head grade (g/t) 5.5 5.4 Metals produced (oz) 183 063 167 348 Average price realised ($/oz) 549 508 Sales (oz) 208 523 157 461 Sales revenues (R000) 882 077 854 382 Operating profit (R000) 167 215 301 838 Unit cash cos
Slide 19: Interim results - costs
Interim results - costs Cash cost distribution Contractors 9.3% Labour 40.0% Sundries 8.4% Utilities 8.2% Stores 34.1% 19
Slide 20: Metal prices
Metal prices US$/oz R/kg R’000 800 190 700 180 600 170 500 160 400 150 300 140 200 130 100 120 0 110 Jan- F M A M J J A S O N D Jan- F M A M J J A S O N D 02 03 Platinum (US$/oz) Palladium (US$/oz) US$ Basket Price R/kg Basket Price 20
Slide 21: Earnings outlook H2 F2004
Earnings outlook H2 F2004 With fewer available working shifts in the second half of the financial year, production of metals in concentrate is expected to be slightly lower than that reported for the first half. Sales will be in line with metals produced. Should the Rand basket price received re
Slide 22: Strategic opportunities going forward
Strategic opportunities going forward Leveraging enhanced BEE status Diversifying operational base Booysendal JV Pandora JV Dwaalkop JV Refining alternatives 22
Slide 23: Potential attributable resources
Potential attributable resources Booysendal JV – 62.2 million oz (3PGE+Au) *Dwaalkop JV – 2.2 million oz (3PGE+Au) Pandora JV – 1.6 million oz (3PGE+Au) * Resource estimated to a depth of 500 metres below surface 23
Slide 24: Thank you
Northam contact details Corporate office: +27 11 440 8811 Thank you Glyn Lewis Derek Wolstenholme Rene Rautenbach Website: www.northam.co.za Contacts: Northam Corporate Office Tel: +27 11 440 8811 Fax: +27 11 786 2021 Website: www.northam.co.za 24
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