Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — Investor Day (June 2016)
19 slides from Northam Platinum's investor day presentation, Jun 30, 2016
Slide 1: Strategic Update: Strengthening the NHM Investment Case
STRATEGIC UPDATE: STRENGTHENING THE NHM INVESTMENT CASE Paul Dunne, CEO Northam Investor Day 30 June 2016
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: Recent Metal Prices
RECENT METAL PRICES 1 600 1 400 1 200 US$/oz 1 000 800 600 400 01-Jul-14 01-Sep-14 01-Nov-14 01-Jan-15 01-Mar-15 01-May-15 01-Jul-15 01-Sep-15 01-Nov-15 01-Jan-16 01-Mar-16 01-May-16 Platinum (US$) Palladium (US$) Basket Price (US$/oz) 2
Slide 4: Northam: Who We Are
NORTHAM WHO WE ARE • Mid-tier, integrated PGM producer • full control of metal from mine to market • Fully empowered with 31.4% HDSA holding • Strong balance sheet • Diverse operating assets • Booysendal North – shallow, modern, mechanised, producing 160 000oz 4E (90 000oz Pt) • Zondereinde – establ
Slide 5: Zondereinde: Established Producer
ZONDEREINDE ESTABLISHED PRODUCER Mature, reliable, long-life operation • Twin shaft system • Mining both Merensky and UG2, producing ~280 000oz 4E annually • Highest average grades in the industry • Pioneers of low environmental impact hydropowered mining technology • 20 year LoM • Deepening project
Slide 6: Booysendal UG2 North: Modern, Mechanised
BOOYSENDAL UG2 NORTH MODERN, MECHANISED Shallow, mechanised, scaleable operation • Infrastructure completed for steady state production • UG2 reef • Shallow ounces, surface outcrop • 2016 capex of R363 million (R113m stay in business; R250m project capex) • Excellent safety record • Labour complemen
Slide 7: Processing Capacity: Integrated Metals Processing
PROCESSING CAPACITY INTEGRATED METALS PROCESSING • Two concentrators, smelter, base metals removal on site at Zondereinde • Long-standing partnership with Heraeus for precious metals refining • Independent marketing to established global customer base • Planned smelter expansion (capex R750 million)
Slide 8: Why Is Northam Investing?
WHY IS NORTHAM INVESTING? • Steady demand growth • Diminishing SA supply 7
Slide 9: Platinum Demand: Steady Growth
PLATINUM DEMAND STEADY GROWTH 10.0 9 million oz 9.0 8.0 7.0 6.0 Pt Moz 5.0 4.0 3.0 2.0 1.0 0.0 2005 2010 2015 2020 2025 Autocatalyst Jewellery Other Source: SFA (Oxford) Ltd 8
Slide 10: Southern African Mine Supply
SOUTHERN AFRICAN MINE SUPPLY EXISTING PRODUCING SHAFTS 6.0 5.0 4.0 Pt Moz 3.0 2.0 1.0 0.0 2005 2010 2015 2020 2025 2030 Source: SFA (Oxford) Ltd, Northam, company reports 9
Slide 11: Why Invest in Northam?
WHY INVEST IN NORTHAM? • Steady PGM demand growth • Depleting primary mine supply • Significant organic and greenfields growth options • Strong balance sheet • Fully empowered • Low cost, long life assets 10
Slide 12: A Hypothetical 2020 Industry Cost Curve
A HYPOTHETICAL 2020 INDUSTRY COST CURVE 35 000 Minimum incentive price 30 000 25 000 R/Pt oz 20 000 A B C D 15 000 10 000 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 Pt oz 11
Slide 13: Booysendal North: Organic Expansion
BOOYSENDAL NORTH ORGANIC EXPANSION Merensky expansion UG2 expansion • Bulk sample, trial mining and feasibility • Deepening existing mine by two levels to study complete produce an additional 30 000 4E oz per annum • Initial 25 000 additional 4E oz per annum at a capital cost of R270 million at capi
Slide 14: Booysendal South (Everest): Growth Project
BOOYSENDAL SOUTH (Everest) GROWTH PROJECT • Acquisition cost of R450 million • Surface infrastructure includes: • 250ktpm concentrator • tailings facilities • water allocation • power allocation • offices and workshops • Target mining area is Booysendal South orebody • containing some 60Moz • Six-ye
Slide 15: Zondereinde: Internal Optimisation
ZONDEREINDE INTERNAL OPTIMISATION Unlocking the value • Deepening project on track • Infrastructure suite to provide good quality Merensky reef • Underground refrigeration plant on 13 level installed to improve environmental conditions underground • Shifting the mining mix to: • UG2: 65% • Merensky:
Slide 16: Northam's Recipe for Success
NORTHAM’S RECIPE FOR SUCCESS • Stability, leadership and team work build self esteem • Safety, production, morale – a virtuous circle • Understand the orebody and set the right plan 15
Slide 17: Balance Sheet
BALANCE SHEET • Operations cash positive • DMTN capital and interest of R1 393.5 million repaid • Cash balance of R2 906.4 million at end Dec 2015 H1 F2016 cashflow statement 6 000 5 000 684.4 (1 401.0) 4 138.2 4 000 (515.1) R million 2 906.4 3 000 2 000 1 000 0 Opening cash balance Operating cash f
Slide 18: Conclusion
CONCLUSION • Northam is well positioned in a stressed sector • Growth projects are fully funded • Intend to be 'first to market' • Importantly, we believe in our country, our company, our people and our product… − very rare and special metals 17
Slide 19: Contact details
Contact details Building 4, 1st Floor Maxwell Office Park Magwa Crescent West Waterfall City Jukskei View 2090 South Africa Shareholder information Name Northam Platinum Limited Rene Rautenbach Share code NHM Tel: +27 11 759 6000 Fax: +27 11 325 4795 ISIN code ZAE 000030912 Email: rene.rautenbach@no