Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — Nedcor Securities Mid Cap Conference 2003
25 slides from Northam Platinum's conference presentation, Feb 25, 2003
Slide 1: Northam Platinum
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Slide 2: Contents
Contents • Who we are • What we do • Where we are • Where we come from • Our shareholders • Our market • Geology • Reserves and resources • Interim results • Key issues going forward • Prospects
Slide 3: Who we are
Who we are • SA’s fourth largest PGMs producer • Production of 300 000 oz PGMs per annum • Reserves of 10.8 million oz PGMs • Life of mine of 17 years • Employs 6 500 people • Only listed broadly-based empowerment PGM company • Listed on the JSE Securities exchange
Slide 4: What we do
What we do • Leaders in deep level underground platinum mining • World-class infrastructure for mining, concentrating, smelting and base metal refining • Hydro-power • Backfill • Independent metals marketing
Slide 5: Where we are
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Slide 6: Where we come from
Where 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 2000 - Acquisition of ground from Anglo Plats • Apr 2000 - Unbundled from GFSA • Aug 2000 - Mvelaphanda BEE deal • Dec 2000 - UG2 plant co
Slide 7: Our shareholders
Our shareholders Mvela Resources Anglo Platinum 22.4% 22.5% Northam Free float (55.1%) Institutions (49.1%) Allan Gray (23.8%), Stanlib (7.9%)
Slide 8: Our market
Our market • Platinum • Used primarily in autocatalysts and jewellery • Good demand fundamentals going forward • Palladium • Largely used in autocatalysts and electronics/dental industry • Demand continues; ample supply • Rhodium • Used primarily in autocatalysts and chemical/glass industry • Steady
Slide 9: What we produce
What we produce 2% 13% 6% 53% 26% Platinum Palladium Rhodium Other PGMs Gold
Slide 10: Metal prices
Metal prices US$/oz R/US$ 650 13 600 12 550 11 500 10 450 9 400 8 350 7 300 6 250 5 200 4 Jul-01 A S O N D Jan- F M A M J J A S O N D Jan- 02 03 Platinum Palladium US$ Basket Price R/$ Exchange rate
Slide 11: Production profile
Production profile Troy ounces 350 000 300 000 250 000 83626 81759 79508 80891 200 000 150 000 50381 100 000 185980 169080 176925 167248 50 000 102721 0 F1999 F2000 F2001 F2002 H1 F2003 Platinum Palladium Rhodium Gold
Slide 12: Geological section
Geological section Chromitite MERENSKY Cr NORMAL MERENSKY REEF Zone of Cr mineralisation 12m Transition zone NP2 MERENSKY REEF Cr 5m Transition zone P2 MERENSKY REEF Cr 2 to 4m FWP2 MERENSKY Merensky footwall rocks REEF UG2 UG2 Cr +-38m +-20m below below Normal P2 reef reef UG2 reef Cr Cr Cr
Slide 13: Mineral reserves
Mineral reserves Proved and Probable Mineral Reserves at 1 July 2002 Tonnes MHG Metal Mt g/t koz Merensky reef 28.4 6.3 5 721 UG2 reef 37.9 4.2 5 057 Total 66.3 5.1 10 778
Slide 14: Interim results operational highlights
Interim results operational highlights • Two million fatality free shifts achieved • Production of 5 205 kg (3 PGE+Au) was 36.6% up on the comparable period for the previous year which was affected to some extent by a strike • Merensky ore reserves up 50% to 18 months • Smelter rebuild on schedule
Slide 15: Interim results financial highlights
Interim results financial highlights • Rising platinum price negated to some extent by decline in palladium and rhodium prices and strengthening rand • Average price realised per kg (3PGE and Au) up 7% to R158 289 • Sales revenue up 28% to R854 million • Headline earnings up 64% to R207 million • In
Slide 16: Good sales revenue
Good sales revenue R million 1 800 1 600 1 400 1 200 826 891 1 000 800 632 600 373 854 400 742 669 200 347 420 0 F1999 F2000 F2001 F2002 H1 F2003 First Half Second Half
Slide 17: Operating cash flow
Operating cash flow R million 1000 900 800 700 600 449 500 532 400 300 293 352 308 200 215 81 100 130 88 0 F1999 F2000 F2001 F2002 H1 F2003 1st Half 2nd Half
Slide 18: Cash distributions
Cash distributions Cents per share 300 250 200 135 175 150 100 100 90 100 70 50 15 10 20 0 F1999 F2000 F2001 F2002 H1 F2003 1st Half 2nd Half
Slide 19: Distribution policy
Distribution policy Intention to maximise distribution of cash after providing for necessary capex and other expenditure
Slide 20: Northam Share Price
750 950 1150 1350 1550 1750 1950 2150 2350 Jul.2 Jul.23 Cents per share Aug.14 Sept.4 Sept.26 Oct.17 Nov.7 Nov.28 Dec.20 Jan.16 Feb.6 Feb.27 Mar.20 Apr.15 May.7 May.28 July 2001 – February 2003 Jun.19 Northam Share Price Jul.10 Jul.31 Aug.22 Sept.12 Oct.4 Oct.25 Nov.15 Dec.6 Jan.3 Jan.24 Feb.14 Shar
Slide 21: Key issues going forward
Key issues going forward • Improving the ore reserve position for mining flexibility • Continued focus on costs • Managing the impact of HIV/AIDS • Growth initiatives
Slide 22: Mining scorecard – progress
Mining scorecard – progress • HR Development - ABET, e-learning • Employment Equity - Employment equity plan submitted annually • Migrant labour - 50% of labour force is foreign – no discrimination • Community and rural development - Discussions in progress • Housing and living conditions - Housing
Slide 23: Mining scorecard – progress
Mining scorecard – progress • Procurement - Policy in place to give preference to HDSA companies on commercial terms • Ownership and joint ventures - 22.4% equity owned by Mvelaphanda Resources • Beneficiation - Concentrating, smelting, base metal refinery • Reporting - Comprehensive reporting in th
Slide 24: Prospects
Prospects • Feb 2003: Concluded the Pandora JV agreement with Anglo Platinum, Lonmin and Bapo Ba Mogale • Well positioned growth in terms of mining scorecard • Further beneficiation initiatives planned • F2003 earnings dependent on R/$ exchange rate and metal prices
Slide 25: Northam Platinum
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Northam Platinum — Nedcor Securities Mid Cap Conference 2003 on 6ix