NORTHAM PLATINUM LIMITED - Northams short and long term credit ratings re-affirmed and outlook raised

Northam’s short and long term credit ratings re-affirmed and outlook raised

NORTHAM PLATINUM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1977/003282/06)
Share code: NHM ISIN: ZAE000030912
Debt issuer code: NHMI
Bond code: NHM002 Bond ISIN: ZAG000129024
Bond code: NHM003 Bond ISIN: ZAG000129032
(“Northam” or the “company”)


NORTHAM’S SHORT AND LONG TERM CREDIT RATINGS RE-AFFIRMED AND OUTLOOK RAISED


Northam wishes to advise shareholders that the credit rating agency, Global Credit Rating Co.
(“GCR”), has reaffirmed Northam’s short term credit rating at A1-(ZA) and the company’s long term
rating of BBB+(ZA) with the Outlook raised from Stable to Positive.

Although the GCR view on resource corporates is a Negative Outlook, there is sufficient comfort in
the developments at Northam for the panel to accord a Positive Outlook.

GCR has published a detailed credit rating report (available from GCR at http://globalratings.net)
detailing the key criteria which form the basis for its rating, these include:

    -   The impact of Northam’s fully funded R6.6 billion black economic empowerment
        transaction (“BEE Transaction”), which secured Northam’s status as a fully-empowered
        mining company, for at least 10 years and incorporated a cash injection of R4.6 billion,
        which will be used to fund the expansion of platinum group metal (“PGM”) output to
        800,000 oz annually in six years.
    -   Further diversification into mechanised and inherently lower cost ore bodies which secure
        stronger margins and return on capital, providing greater operational and financial
        flexibility.
    -   The timely delivery of steady-state production at Booysendal North and the strategic
        acquisition of Booysendal South (formerly Everest Mine).
    -   The 7% increase in PGM sales volumes which has sustained Northam’s revenue above R6
        billion in the financial year ended 30 June 2016, despite a 6% fall in the ZAR basket price
        from the prior year.
    -   The marginal year-on-year increase in normalised headline earnings to R444.1 million in
        the financial year ended 30 June 2016, after removing the effect of the preference
        dividends accrued and capital items related to the BEE Transaction.
    -   Operations remained cash generative for the year ended 30 June 2016, which coupled with
        R265 million in interest income, nearly trebled operating cash flow.
    -   Northam’s operations are expected to be net ungeared in the medium term assuming no
        significant decrease in PGM prices.
    -   Following the issue of 3 and 5 year domestic medium term notes, which raised
        R425 million in aggregate, Northam has sound debt service ratios.


Johannesburg
13 October 2016

Sponsor and Debt Sponsor
One Capital

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