Northam Platinum Holdings Limited · JSE:NPH
Northam Platinum — FY2003 Earnings Presentation
19 slides from Northam Platinum's earnings presentation, Aug 7, 2003
Slide 1: Annual Results for the year ended 30 June 2003
ANNUAL RESULTS for the year ended 30 June 2003 Glyn Lewis – General Manager
Slide 2: Highlights
Highlights • Metals in concentrate produced up 22% to 10 354 kg • Merensky reserves improved to 20 months • Smelter rebuild completed on schedule • Unit operating costs remain constant
Slide 3: Safety performance
Safety performance 3 10 9 7.99 8 2.06 7 2 6 5.28 1.51 4.82 5 1.28 1.21 4.02 1.14 4 2.50 1 3 2 1 0 0 F1999 F2000 F2001 F2002 F2003 F1999 F2000 F2001 F2002 F2003 DIIR (per 200 000 man hours) RIIR (per 200 000 man hours) • 2 million fatality free shifts achieved on 30 September 2002 • Tragically, eight
Slide 4: Operational overview
Operational overview • Total square metres mined up 13.2% to 432 050m2 • Tonnes milled up 14.9% to 2 219 138 • Combined head grade constant at 5.3g/t (3PGE+Au) • PGMs in concentrate produced up 22.4% % to 10 354 kg • Development metres down 12.1% to 14 743m • Metal sales up 2.6% to 9 174 kg • Build-
Slide 5: Mine plan
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Slide 6: Smelter shutdown
Smelter shutdown • Smelter re-build successfully completed and commissioned on schedule • Build-up in inventory of 890 kg (3PGE+Au) in refining pipeline following the smelter shutdown • Effect on: Sales revenue – equivalent to R107.7 million Profit after tax – equivalent to R39.8 million HEPS – equi
Slide 7: Metals production
Metals production F2003 F2002 Change Platinum (kg) 6 399 5 212 22.8% Palladium (kg) 3 123 2 522 23.8% Rhodium (kg) 618 545 13.4% Gold (kg) 214 179 19.6% Total 10 354 8 458 22.4%
Slide 8: Refined metal sales
Refined metal sales F2003 F2002 Change Platinum (kg) 5 571 5 523 0.9% Palladium (kg) 2 771 2 699 2.7% Rhodium (kg) 645 539 19.7% Gold (kg) 187 183 2.2% Total 9 174 8 944 2.6%
Slide 9: Basket prices
Basket prices R/kg US$/oz R’000 800 190 700 180 600 170 500 160 400 150 300 140 200 130 100 120 0 110 Jan- F M A M J J A S O N D Jan- F M A M Jun- J 02 03 03 Platinum Palladium US$ Basket Price R/kg Basket Price
Slide 10: Metal prices realised (R/kg)
Metal prices realised (R/kg) F2003 F2002 Change Platinum 175 249 159 696 9.7% Palladium 79 415 130 256 (39.0%) Rhodium 183 221 339 742 (46.1%) Gold 97 172 96 447 0.8% Basket 145 273 160 367 (9.4%) (3PGEs+Au)
Slide 11: Sales revenue (R000s)
Sales revenue (R000s) F2003 F2002 Change Platinum 976 290 882 057 10.7% Palladium 220 049 351 499 (37.4%) Rhodium 118 222 183 076 (35.4%) Gold 18 160 17 648 2.9% Other 139 278 126 405 10.2% Total 1 471 999 1 560 685 (5.7%)
Slide 12: Unit operating costs
Unit operating costs F2003 F2002 Change Operating costs (R/kg) 105 600 105 426 0.2% Operating costs (R/t 492 467 5.4% milled) Cash costs (R/kg) 96 880 94 861 2.1% Cash costs (R/t milled) 452 416 8.7%
Slide 13: Half year comparison
Half year comparison F2003 H103 H203 Tonnes milled 2 219 138 1 130 077 1 089 061 Metals produced in conc. 10 354 5 205 5 149 Sales kg (3 PGE+Au) 9 174 4 898 4 276 Average price realised 145 273 158 289 130 365 (R/kg 3PGE+Au) Sales revenue 1 471 999 854 382 617 617 Average exchange rate 9.01 10.02 8.
Slide 14: Capital Expenditure
Capital Expenditure R million Accelerated development 42.3 19 line fissure and 9 level RAW 5.4 development Smelter rebuild 35.2 Refrigeration and pumping 38.5 Shafts 5.4 Routine 44.7 Total 171.5
Slide 15: F2004 Capex forecast
F2004 Capex forecast R million Accelerated development 48.7 20 line fissure development 4.1 Backfill reticulation 6.4 Refrigeration and pumping 20.0 Shafts – upgrade 8.7 Routine 42.1 Total 130.0
Slide 16: Operating cash flow
Operating cash flow Rand million 1000 900 800 700 600 449 500 532 400 81 300 293 352 308 200 215 81 100 130 88 0 F1999 F2000 F2001 F2002 F2003 1st Half 2nd Half
Slide 17: Cash distributions
Cash distributions Cents per share 300 250 200 135 175 150 35 100 110 100 100 50 70 15 0 10 20 F1999 F2000 F2001 F2002 F2003 1st Half 2nd Half
Slide 18: Outlook
Outlook • Maintain accelerated development programme in order to increase Merensky face availability • Continue focus on unit costs • Earnings dependent on Rand metal prices and production and cost targets being achieved • Expansion - Pandora on track - Investigating other opportunities
Slide 19: Annual Results
ANNUAL RESULTS for the year ended 30 June 2003 Glyn Lewis – General Manager
Northam Platinum Holdings — FY2003 Earnings Presentation on 6ix