Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — FY2018 Earnings Presentation
40 slides from Northam Platinum's earnings presentation, September 2018
Slide 1: Northam Platinum Projects Review
NORTHAM smart platinum mining — El >=
Slide 2: Disclaimer
DISCLAIMER Certain statements in this presentation (other than the statements of historical fact) may contain forward-looking statements regarding Northam’s operations, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the platinum
Slide 3: Key features, operational review, financial review, projects update, business outlook
Key features Operational review Financial review Projects update Business outlook
Slide 4: Key features
Normalised Execution of headline growth strategy earnings of on track R421.5 million Tough market New 20MW conditions furnace persist commissioned Record group Good capital operating expenditure performance at R3.8bn 4
Slide 5: PGM prices from 1 January 2015
US$/oz 200 700 1 200 1 700 2 200 2 700 01-Jan-15 01-Feb-15 01-Mar-15 01-Apr-15 01-May-15 01-Jun-15 01-Jul-15 01-Aug-15 PGM PRICES 01-Sep-15 Platinum (US$) 01-Oct-15 01-Nov-15 01-Dec-15 Rhodium (US$) 01-Jan-16 01-Feb-16 01-Mar-16 Palladium (US$/oz) 01-Apr-16 FROM 1 JANUARY 2015 (US$/oz) 01-May-16 01-
Slide 6: Operational review
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Slide 7: Safety: LTIIR Zondereinde and Booysendal
ZONDEREINDE BOOYSENDAL LTIIR per 200 000 hours worked LTIIR per 200 000 hours worked 2018 1.29 2018 0.31 2017 1.65 2017 0.30 2 fatal accidents 7
Slide 8: Operational statistics – Group
OPERATIONAL STATISTICS – GROUP F2018 F2017 Variance % Total tonnage milled tonnes 4 601 876 4 450 111 3.4 Equivalent refined metal – own production oz 6E 571 843 546 984 4.5 Equivalent refined metal – purchased oz 6E 105 562 35 936 193.8 Total refined metal produced oz 6E 549 500 522 129 5.2 Total r
Slide 9: Operational statistics – Zondereinde
OPERATIONAL STATISTICS – ZONDEREINDE F2018 F2017 Variance % Merensky milled tonnes 739 439 814 639 (9.2) Merensky head grade g/t 6E 6.53 6.25 4.5 UG2 milled tonnes 1 193 365 1 147 878 4.0 UG2 head grade g/t 6E 5.24 5.15 1.7 Total milled tonnes 1 932 804 1 962 517 (1.5) Average combined head grade g/
Slide 10: Concentrate stockpile de-stocking
• 16 000 tonnes concentrate by end August • reducing by 4 000t/m • expect to be de-stocked by next time we report • Reverts stockpile being crushed and re-processed • expect to be de-stocked by June 2019 10
Slide 11: Development progress on levels
• Development on 3 to 12 levels • 3 500 metres of development completed • 3-7 levels already intersected reef 3 • 8-12 levels expected to intersect reef 4 by December 2018 5 • Cover drilling ahead of development 6 indicates good ground conditions 7 8 • Stoping expected to start by 9 mid-2019 10 11 1
Slide 12: Operational statistics – Booysendal
OPERATIONAL STATISTICS – BOOYSENDAL F2018 F2017 Variance % Merensky milled tonnes 458 027 161 134 184.3 Merensky head grade g/t 6E 2.27 2.21 2.7 UG2 milled tonnes 2 211 045 2 326 460 (5.0) UG2 head grade g/t 6E 3.31 3.33 (0.6) Total milled tonnes 2 669 072 2 487 594 7.3 Average combined head grade g
Slide 13: Resource statement
RESOURCE STATEMENT 30 June 2018 30 June 2017 Operation Moz 4E Moz 4E Booysendal 105.1 105.3 Zondereinde 105.2 84.0 Eland 19.3 – Dwaalkop 8.9 8.9 Pandora – 2.1 Total group resource 238.5 200.3 13
Slide 14: Employee accommodation
R543 million 467 employees 2 852 spent on accommodation, assisted with single accommodation upgrades to date own housing units units created 14
Slide 15: Employment, wages and procurement
6.9% increase R 2.3 billion R3.2 billion • in total employment to 13 258 paid in salaries, spent with empowered • permanent jobs increased wages and benefits suppliers by 2 003 15
Slide 16: Financial review
smart platinum minin a ————
Slide 17: Normalised headline earnings
NORMALISED HEADLINE EARNINGS F2018 F2017 Variance R000 R000 % Headline loss per the financial results (701 610) (636 371) (10.3) Add back: Amortisation of liquidity fees paid on preference shares 16 390 16 390 - Preference share dividends 1 106 684 1 017 396 (8.8) Loss on derecognition of preference
Slide 18: Sales revenue up by 10%
F2018 sales revenue R million 9 000 739.2 -478.6 8 000 7 552.2 426.4 7 000 6 865.2 Up by 10% 6 000 5 000 4 000 PGM sales volumes 3 000 5% higher 2 000 13.5% higher 1 000 average USD 0 Jun 2017 Volume Price Exchange Jun 2018 Stronger average basket price variance variance rate ZAR/USD exchange rate 1
Slide 19: Sales revenue and cost of sales
SALES REVENUE AND COST OF SALES F2018 F2017 Variance R000 R000 % Sales revenue 7 552 181 6 865 185 10.0 Cost of sales (6 728 867) (6 251 200) (7.6) Operating costs (6 318 000) (5 676 017) (11.3) Concentrates purchased (1 410 506) (404 093) (249.1) Refining and other charges (123 840) (120 633) (2.7)
Slide 20: Statement of profit or loss
STATEMENT OF PROFIT OR LOSS F2018 F2017 Variance R000 R000 % Sales revenue 7 552 181 6 865 185 10.0 Cost of sales (6 728 867) (6 251 200) (7.6) Gross profit 823 314 613 985 34.1 Share of earnings from associates and joint ventures 4 162 4 870 (14.5) Investment revenue 52 633 167 306 (68.5) Finance c
Slide 21: Segmental report – operating profit
SEGMENTAL REPORT – OPERATING PROFIT Intercompany Zondereinde Booysendal Total eliminations R000 R000 R000 R000 Sales revenue 7 142 893 3 034 874 (2 625 586) 7 552 181 Cost of sales (6 787 469) (2 509 516) 2 568 118 (6 728 867) Operating costs (4 240 251) (2 077 749) - (6 318 000) Concentrates purcha
Slide 22: Operating cash flow
Operating cash flow R1 205.0 million F2018 cash flow R million Increase in working capital 4 000 2 421.5 -3 580.9 of R1 547.3 million 3 500 1 205.0 -1 547.3 3 000 2 500 Investing cash flow 2 000 increased to 1 786.9 1 500 R3 580.9 million 1 000 Cash flow from 500 293.2 financing activities 0 Opening
Slide 23: Inventory
40 754oz PMR inventory 37 264oz 9 179oz BMR inventory 4 581oz 83 207oz Smelter inventory 28 705oz 74 922oz Concentrate (pre-smelter) 55 867oz 24 073oz Concentrate in progress 8 928oz 28 427oz Ore stockpiles 23 377oz R000 - 200 000 400 000 600 000 800 000 1 000 000 1 200 000 F2018 F2017 23
Slide 24: Slide 24
Slide 25: New furnace commissioned
New furnace commissioned in December 2017 First matte tapped on 8 January 2018 De-stocking in progress 25
Slide 26: Booysendal South central complex progress
Central complex boxcut complete UG2 stockpile > 85 000 tonnes Equipping of ore silo in progress 10Ml reservoir in progress Crusher civils in progress Pollution control dam complete 26
Slide 27: Booysendal South road complete
Booysendal South road complete Rehabilitation and vegetation of berms and verges in progress ahead of rainy season 27
Slide 28: Booysendal South water pipeline plinths
Booysendal South road complete Plinths for water pipeline in the same footprint 28
Slide 29: Booysendal South aerial rope conveyor
BOOYSENDAL SOUTH Aerial rope conveyor 29
Slide 30: Preparation of conveyor belt prior to installation
Preparation of conveyor belt prior to installation 30
Slide 31: Installation of belt onto ropes
Installation of belt onto ropes 31
Slide 32: Discharge end of ropecon linking into existing conveyor
Discharge end of ropecon linking into existing conveyor feeding Booysendal South concentrator 32
Slide 33: Ropecon drive unit
Ropecon drive unit 33
Slide 34: Ropecon – light environmental impact
Ropecon – light environmental impact 34
Slide 35: Chrome tailings project status
Project status: • hydro-mining started November 2017 • 624 000 tonnes processed; 61 500 tonnes chrome concentrate produced • ~September 2018 – commissioning of entire plant • ~September 2018 – start processing for PGMs • Construction of backfill plant in progress for underground placement of tailing
Slide 36: Concentrator refurbishment in progress
• Concentrator refurbishment in progress in preparation for: • tailings re-processing project to recover chrome and PGMs • processing PGM bearing material from Jubilee Metals • re-commissioning Kukama shaft • trial mining 36
Slide 37: Recycling facility acquired
• Recycling facility acquired for USD10.8 million • Premises and equipment recently refurbished • First trial shipment of material received for processing at Zondereinde 37
Slide 38: Business outlook
Operations: Project maintain execution competitive is key cost position Labour Mining relations: Charter wage negotiations Inventory destocking 38
Slide 39: Questions?
QUESTIONS?
Slide 40: Contact details and shareholder information
Contact details Building 4, 1st Floor Maxwell Office Park Magwa Crescent West Waterfall City Shareholder information Jukskei View 2090 Name Northam Platinum Limited South Africa Share code NHM Leon van Schalkwyk ISIN code ZAE 000030912 Tel: +27 11 759 6000 Fax: +27 11 325 4795 JSE sector Platinum Em