Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — FY2015 Earnings Presentation
28 slides from Northam Platinum's earnings presentation, Aug 20, 2015
Slide 1: Reviewed preliminary results for the year ended 30 June 2015
REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 Paul Dunne, Chief executive 20 August 2015
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: Agenda
Agenda • Key features of 2015 • Operational review • Financial review • Market update • Project update • Business outlook REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 PAGE 3
Slide 4: Key features
Key features • Empowerment status secured • Successful capital raising of R4.6 billion • Acquisition of Everest signals strategic growth on track • Satisfactory performance from operations • Booysendal ramp-up on track • Market conditions continue to disappoint • Three-year wage settlement concluded
Slide 5: Operational review
OPERATIONAL REVIEW REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 PAGE 5
Slide 6: Safety
Safety • Zondereinde LTIIR 1.31, RIIR 0.94 • 3 million fatality free shifts • shaft incident • Booysendal LTIIR 0.54, RIIR 0.41 4 3.5 3 2.5 2 1.5 1 0.5 0 F2012 F2013 F2014 F2015 ZE LTIIR BY LTIIR REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 PAGE 6
Slide 7: Zondereinde operations
Zondereinde operations F2015 F2014 Change % Merensky tonnes milled 795 885 803 736 -1.0% Merensky head grade (g/t) 5.7 5.8 -1.7% UG2 tonnes milled 1 064 499 920 420 15.7% UG2 head grade (g/t) 4.3 4.3 - Total tonnes milled 1 860 384 1 724 156 7.9% Average combined head grade (g/t) 4.9 5.0 -2.0% PGMs
Slide 8: Booysendal operations
Booysendal operations F2015 F2014 Change % Total tonnes mined 1 670 437 1 233 089 35.5% Total tonnes milled 1 786 375 1 517 109 17.7% Average combined head grade (g/t) 2.6 2.6 - PGMs in conc – mine production (kg 3PGE+Au) 3 809 2 882 32.2% PGMs sold (kg 3PGE+Au) 3 509 2 503 40.2% Basket price receiv
Slide 9: Financial review
FINANCIAL REVIEW REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 PAGE 9
Slide 10: Income statement
Income statement F2015 F2014 Change % R’000 R’000 Sales revenue 6 035 535 5 339 397 13.0% Cost of sales 5 439 722 5 277 915 3.1% Operating profit/(loss) 595 813 61 482 869.1% Share of earnings from associate and joint venture 28 769 3 464 730.5% Investment revenue 72 043 59 963 20.1% Finance charges
Slide 11: Cost of sales
Cost of sales F2015 F2014 Change % R’000 R’000 Sales revenue 6 035 535 5 339 397 13.0% Cost of sales 5 439 722 5 277 915 3.1% operating costs 4 342 571 3 536 002 22.8% concentrates purchased 602 395 918 605 (34.4%) refining costs 199 470 267 117 (25.3%) depreciation 339 949 445 875 (23.8%) change in
Slide 12: Segmental report
Segmental report Zondereinde Booysendal TOTAL R’000 R’000 R’000 Sales revenue 4 057 454 1 978 081 6 035 535 Cost of sales 3 658 605 1 781 117 5 439 722 operating costs 3 150 404 1 192 167 4 342 571 concentrates purchased 602 395 - 602 395 refining costs 83 408 116 062 199 470 depreciation 167 988 17
Slide 13: Normalised earnings
Normalised earnings F2015 F2014 R’000 R’000 Profit or (loss) for the year (1 033 945) 19 597 Less: non-controlling interest portion 1 704 10 111 Profit or (loss) for the year attributable to owners of the parent (1 035 649) 9 486 Corporate action transactional costs 172 640 - Net lock-in fee 242 429
Slide 14: Cash flow
Cash flow • Operating cash flow 61.4% lower • R4 599 million share issue • Investing cash flow up 43.9% to R1 102 million • Cash at year end R4 138 million F2015 cashflow statement 6000 4232.6 -1102.1 5000 4138.2 R million 4000 3000 2000 341.6 1000 666.1 0 Opening cash Operating cash Financing cash
Slide 15: Markets
MARKETS REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 PAGE 15
Slide 16: Market review: PGM prices from July 2014
Market review PGM prices from 1 July 2014 1,600 Pt $1486/oz 1,500 1,400 $1277/oz 1,300 1,200 US$/oz Pt $1078/oz (-27%) 1,100 1,000 $947/oz (-26%) Pd $845/oz 900 800 700 Pd $670/oz (-21%) 600 500 01-Jul-14 01-Sep-14 01-Nov-14 01-Jan-15 01-Mar-15 01-May-15 01-Jul-15 Platinum (US$) Palladium (US$) Bask
Slide 17: Market review
Market review • PGM fundamentals remain challenging • Weak global macro-economic conditions; declining commodity prices • US dollar strength • Growth in Pt and Pd demand in certain sectors • Resumption of PGM supplies following 2014 strikes • Above-ground stocks remain plentiful • Forecast growth in
Slide 18: Market outlook
Market outlook • Outlook for global growth remains uncertain • Enduring overhang of above ground PGM stocks • Uncertain outlook for primary mine supplies • Near-term potential for both upside and downside price movements • Longer term outlook is for demand growth, price support REVIEWED PRELIMINARY
Slide 19: Update on growth projects
UPDATE ON GROWTH PROJECTS REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 PAGE 19
Slide 20: Booysendal - Merensky update
Booysendal - Merensky update • Merensky pre-feasibility study • boxcut • bulk sample • metallurgical test work REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 PAGE 20
Slide 21: Booysendal South
Booysendal South • Acquisition of Everest mine • Booysendal South mining concept • utilising Everest infrastructure • four mining modules • road access • aerial ropeway system • integration with North mine REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 PAGE 21
Slide 22: Business outlook
Business outlook • Operations • Zondereinde • Booysendal • Mining Charter • Markets • Strategy REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 PAGE 22
Slide 23: Appendices
APPENDICES REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2015 PAGE 23
Slide 24: Sales volumes – group (kg)
Sales volumes – group Group F2015 F2014 Change Platinum kg 7 894 7 522 4.9% Palladium kg 3 875 3 649 6.2% Rhodium kg 1 195 964 23.9% Gold kg 182 195 -7.0% Total (3PGE+Au) kg 13 145 12 330 6.6% Iridium kg 396 319 24.4% Ruthenium kg 1 792 1 360 31.7% Copper tonnes 679 764 -11.1% Nickel tonnes 1 322 1
Slide 25: Sales volumes – group (oz)
Sales volumes – group Group F2015 F2014 Change Platinum oz 253 785 241 831 4.9% Palladium oz 124 581 117 305 6.2% Rhodium oz 38 430 31 005 23.9% Gold oz 5 839 6 276 -7.0% Total (3PGE+Au) oz 422 630 396 417 6.6% Iridium oz 12 748 10 246 24.4% Ruthenium oz 57 601 43 725 31.7% Copper tonnes 679 764 -11
Slide 26: Sales prices (R/kg)
Sales prices (R/kg) Group F2015 F2014 Change Platinum 457 795 478 259 -4.3% Palladium 293 911 252 877 16.2% Rhodium 429 668 340 033 26.4% Gold 449 097 433 263 3.7% Total (3PGE+Au) 406 812 400 042 1.7% Iridium 204 175 174 909 16.7% Ruthenium 58 974 19 544 201.7% Copper (R/tonne) 67 769 68 967 1.7% Ni
Slide 27: Sales prices (US$/oz)
Sales prices (US$/oz) Group F2015 F2014 Change Platinum 1 248 1 433 -12.9% Palladium 799 756 5.7% Rhodium 1 168 1 010 15.6% Gold 1 222 1 289 5.2% Total (3PGE+Au) 1 108 1 197 7.4% Iridium 556 518 7.3% Ruthenium 65 59 10.2% Copper ($/tonne) 5 947 6 626 -10.2% Nickel ($/tonne) 15 169 15 686 -3.3% REVIE
Slide 28: Contact details and shareholder information
Contact details Shareholder information 1st Floor, 1A Albury Park Name Northam Platinum Limited Magalieszicht Avenue Share code NHM Dunkeld West ISIN code ZAE 000030912 Johannesburg 2196 South Africa Debt issuer code NHMI JSE sector Platinum Rene Rautenbach Shares in issue 509 781 212 Tel: +27 11 75