Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — Merger or Acquisition (September 2007)
30 slides from Northam Platinum's merger presentation, September 2007
Slide 1: The Booysendal transaction
The Booysendal transaction Unveiling the only independent, fully integrated, HDSA owned, platinum company Northam Platinum Limited September 2007 7 NORTHAM oa MVELAPHANDA HOLDINGS Euemep alm MVELAPHANDA RESOURCES — PLaATiInum Limite (PROPRIETARY) LIMITED LIMITED
Slide 2: Introduction and overview
Introduction and overview A great day for Mvela Resources Gaining control of an operational mining company in platinum sector A transformational transaction for Northam: A new lease on life From 17 million 4E oz to 129 million 4E oz From a 16 year life of mine to over 100 years Sustainability 2 Full
Slide 3: Mvela Resources - delivering on its strategic intent
Mvela Resources - delivering on its strategic intent Pine Pienaar 3
Slide 4: Introducing the transaction
Introducing the transaction Mvela Resources acquiring, for R4 billion in cash, Anglo Platinum s 50% interest in Booysendal Entire interest of 53 million Northam shares Northam to acquire full ownership of Booysendal (100%) for 125 million new ordinary shares Mvela Resources to become controlling sha
Slide 5: Fully BEE compliant
Fully BEE compliant Current structure Resultant structure Mvela Afripalm Mvela Afripalm Holdings Resources Holdings Resources 19.6% 31.0% 19.6% 31.0% Mvela Anglo Mvela Resources Platinum Resources 21.8% 22.4% 63.4% Northam Northam 100% 100% 100% Northam Northam mine Booysendal mine 5 50% 50% Booysen
Slide 6: Rationale for Mvela Resources
Rationale for Mvela Resources Excellent fundamentals for the platinum sector: Positive outlook for PGM prices Sector previously identified for growth Size and quality of Booysendal resource world class Technical and operational experience and stability of Northam management offer key competencies Fr
Slide 7: Arriving at the price
Arriving at the price Mvela Resources paid cash - receiving shares which are exposed to market and economic cycles and risks Mvela Resources/Afripalm carrying community costs for Northam Mvela Resources subject to constraints: Required to maintain empowerment shareholding Lock in exposed to cycles A
Slide 8: Key factors for Mvela Resources
Key factors for Mvela Resources Size - 112 million oz resource - 10 608 hectares - 12 km strike length Quality - surface access o o - 8 -10 dip - prill split high platinum (ratio of 1.8:1 Pt:Pd) - in situ grade Merensky 3.82g/t (3PGE+Au) UG2 4.87g/t (3PGE+Au) Growth alternative organic growth option
Slide 9: Funding
Funding The Transaction will be funded by: Existing cash resources of R1.5 billion (30 June 2007) A R2.5 billion pref share facility @ 68% of prime with a 5.5 year term 9
Slide 10: Transaction timeline
Transaction timeline Circular release mid October 2007 Shareholders meetings November 2007 Anticipated conclusion of transaction/effective date end December 2007 10
Slide 11: What the transaction means for Northam
What the transaction means for Northam Glyn Lewis 11
Slide 12: Northam today is constrained
Northam today is constrained Current life of mine of 16 years Mining is getting deeper and more challenging, costs increasing Production growth within Northam lease is constrained Potential to increase processing capacity, given the right Merensky/UG2 mix Current shareholding structure inhibits corp
Slide 13: What the transaction brings to Northam
What the transaction brings to Northam Broader asset base - significantly reducing risk profile Potential to at least double production Quality resource ± 100 yrs LOM Reduction of average unit costs Ownership of full beneficiation stream 13 Strategic advantage as major BEE-controlled operator Source
Slide 14: Transforming Northam
Transforming Northam Northam today New Northam Production (4PGEs) 325,000oz ± 650,000 Resources (4PGEs) 17 Moz 130 Moz Life of mine 16 years ± 100 years Job creation ±12,000 8,000 14
Slide 15: Narrowing the resource gap
Narrowing the resource gap Attributable resources (4E Moz) 800 700 600 500 400 300 200 100 0 15 Angloplats Implats Lonmin NHM+100% Anooraq* Aquarius Northam B.dal *: post 4 September 2007 transaction
Slide 16: Improved average cash margin over time
Improved average cash margin over time* Cash margin Booysendal UG2 60% Booysendal MR 50% 40% 30% Northam MR 20% Northam UG2 10% 0% 16 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Pt oz *Estimated cash margins in 2010 assuming 10% R/tonne inflation from 2006 base; reflects royalties and margins up to
Slide 17: About Booysendal
WY aa MVELAPHANDA HOLDINGS (PROPRIETARY) LIMITED i... NORTHAM ¥v MVELAPHANDA RESOURCES LIMITED
Slide 18: Substantial resources
Substantial resources Geo Width 3PGE+Au PGE content Merensky Tonnes loss cm g/t (oz) Measured 23% 25 028 372 87 4.74 3 814 180 Indicated 23% 29 655 092 78 3.94 3 756 520 Inferred 23% 216 527 730 85 3.70 25 757 608 Total 23% 271 211 194 84 3.82 33 328 308 Geo Width 3PGE+Au PGE content UG2 Tonnes loss
Slide 19: Prill splits
Prill splits Merensky prill split UG2 prill split (3PGE+Au) (3PGE+Au) Au, 1.20% Au, 8.20% Rh, 8.40% Rh, 2.50% Pd, 30.90% Pd, 35.10% Pt, 55.30% Pt, 58.40% 19
Slide 20: A world class resource
A world class resource Reef dips 8° - 11° due west Merensky/UG2 170m apart Der Brochen urg Project boundary esb ann 1st phase UG2 mechanised Joh Pietersburg Booysendal UG2 Outcrop Merensky conventional Uysedoorns Merensky Outcrop Conformable reef, except in pe vicinity of major geological sho Draaik
Slide 21: Rapid project development
Rapid project development Tonnes Merensky UG2 3500 3000 2500 2000 1500 1000 500 00 Sep 2007 Mar 2008 Dec 2009 2010 2011 2012 2013 Finalise BFS Announce Complete First Steady state start mine 21 transaction pre-feasibility production production construction
Slide 22: Project development cont'd
Project development cont d UG2 mine plan (120ktpm) 2010 2011 2012 2013 Production (000 t) 500 1000 1440 1440 Head grade (3PGE+Au) 3.38 3.38 3.38 3.38 *Cash cost (R/t milled) July 2007 terms 272.00 272.00 272.00 272.00 * Excludes royalties, decommissioning, refining and realisation Merensky mine plan
Slide 23: How the transaction stacks up
How the transaction stacks up 23
Slide 24: Then and now
Then and now Original transaction Proposed transaction Value in shares 46 million* 125 million Interest in 50% 100% Booysendal Other transaction No management control Management control features No control over offtake Full control over metal pipeline to market Market factors: Share price Dec 2003 R
Slide 25: A great deal
Xs 10 20 30 40 50 60 70 80 0 tra ta Xs /E tra la US$/4E oz ta nd /E la nd (in cl .M W ad es i) iz w e/ Af ri ca W id e Af r io re /L on m Transaction cost in Af r .P t/ A great deal Im pl at s . S. Pl at / Lo nm in NH US$/resource oz M /B oo ys en da l 25
Slide 26: Northam going forward
m4 EE. = NortHam Y MVELAPHANDA RESOURCES
Slide 27: Capex, cash and dividends
Capex, cash and dividends Capex Northam currently ungeared Anticipated capex of R4.8 billion R000 Year end cash balances To be raised via combination of 1,400 cash retentions, equity and/or 1,200 R 1,210 debt depending on market 1,000 circumstances R 831 800 R 731 Cash 600 R 502 R 506 Northam remain
Slide 28: Conclusion
MVELAPHANDA HOLDINGS MVELAPHANDA RESOURCES (PROPRIETARY) LIMITED LIMITED v Ee. NorrHam Y
Slide 29: Conclusion
Conclusion Opportunity of acquisition of scarce, long-life resource Significant ore resources with scope for increasing production Scaling up will offer much-needed reduction to cost profile Northam transformed into a long-life, less risky operation with critical mass Meeting requirements of the Min
Slide 30: The Booysendal transaction
The Booysendal transaction Unveiling the only independent, fully integrated, HDSA owned, platinum company Northam Platinum Limited September 2007 7 NORTHAM oa MVELAPHANDA HOLDINGS Euemep alm MVELAPHANDA RESOURCES — PLaATiInum Limite (PROPRIETARY) LIMITED LIMITED
Northam Platinum — Merger or Acquisition (September 2007) on 6ix