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NORTHAM PLATINUM HOLDINGS LIMITED NORTHAM PLATINUM LIMITED
Incorporated in the Republic of South Africa Incorporated in the Republic of South Africa
Registration number: 2020/905346/06 Registration number: 1977/003282/06
JSE share code: NPH JSE debt issuer code: NHMI
ISIN: ZAE000298253 Bond code: NHM021 Bond ISIN: ZAG000181496
("Northam Holdings" or, together with its subsidiaries, Bond code: NHM022 Bond ISIN: ZAG000190133
"Northam" or the "group") Bond code: NHM023 Bond ISIN: ZAG000190968
Bond code: NHM025 Bond ISIN: ZAG000195934
Bond code: NHM026 Bond ISIN: ZAG000195942
Bond code: NHM027 Bond ISIN: ZAG000216052
Bond code: NHM028 Bond ISIN: ZAG000216045
Bond code: NHM029 Bond ISIN: ZAG000216037
("Northam Platinum")
VOLUNTARY TRADING STATEMENT AND TRADING UPDATE FOR THE YEAR ENDED 30 JUNE 2025 AND A POST YEAR-END ONCE-OFF CASH INFLOW
OF USD66.0 MILLION FOLLOWING REDETERMINATION OF HISTORICAL REFINING OUTCOMES
Northam Holdings' financial results for the year ended 30 June 2025 ("F2025") are underpinned by a solid operational performance.
Notwithstanding this, Northam Holdings expects to report a decrease in basic and headline earnings per share for F2025 compared
to the financial year ended 30 June 2024 ("F2024").
Key metrics for F2025
' The group's equivalent refined metal produced from own operations increased to 899 244 oz 4E (F2024: 892 876 oz 4E).
' Group production of chrome concentrate increased by 9.0% to 1 439 752 tonnes (F2024: 1 320 963 tonnes), on the back of
improvements in UG2 tonnage throughput, feed grades and concentrator yields.
' 5.2% increase in total refined metal produced to 937 942 oz 4E (F2024: 891 721 oz 4E).
' 6.9% increase in sales revenue to R32.9 billion (F2024: R30.8 billion), primarily attributable to a 5.9% increase in total metal sold
to 1 006 475 oz 4E (F2024: 950 251 oz 4E), with total metal sold by the group having exceeded 1 million oz 4E for the first time.
' 8.1% increase in group unit cash cost per equivalent refined 4E ounce to R25 728/4E oz (F2024: R23 811/4E oz), reflecting the
impact of mining cost inflation.
' 25.5% decrease in operating profit to R3.6 billion (F2024: R4.8 billion), reflecting the impact of mining cost inflation against flat
rand metal prices.
' 14.8% ' 19.8% expected decrease in basic earnings per share.
' 9.4% ' 19.4% expected decrease in headline earnings per share.
' Net debt of R5.1 billion with a net debt to EBITDA ratio of 1.04 at year-end, before taking into account the post year-end
USD66.0 million once-off cash inflow referred to below.
' R12.3 billion fully undrawn and available bank facilities.
Introduction
The table below provides key earnings per share information for F2025, compared to that of F2024:
F2025 F2024 % Variance
Basic earnings per share (cents) 369.9 ' 392.9 461.0 (19.8% ' 14.8%)
Headline earnings per share (cents) 358.6 ' 403.1 445.0 (19.4% ' 9.4%)
Number of shares in issue including treasury shares 400 102 916 396 238 229 1.0%
Weighted average number of shares in issue* 390 315 166 389 975 640 0.1%
*The weighted average number of shares in issue has been used to determine the basic earnings per share and headline earnings
per share.
Safety
The group's overall safety performance improved, with the total injury incidence rate (TIIR) expressed per 200 000 hours worked
recorded at 1.14 (F2024: 1.23).
At Eland mine, we sadly lost two of our personnel, during the first half of F2025, in separate incidents. On 5 August 2024, Mr Aubrey
Katlego Sithole, a shotcrete assistant, passed away in a barring incident which occurred during shotcreting operations in an
underground development tunnel. On 29 November 2024, Mr Koshi Charles Makhobo, an engineering fitter, was fatally injured whilst
undertaking maintenance on a conveyor belt.
On 2 March 2025, we sadly also lost one of our employees, Mr Domingo Armando Novele, a tramming team leader at Zondereinde
mine, in a material tramming incident.
The Northam board extends its heartfelt sympathy to the family, friends and colleagues of Mr Sithole, Mr Makhobo and Mr Novele.
The safety of our employees remains of utmost importance and takes precedence over any production, operational or financial
objectives.
Improving safety performance, as well as the health and wellness of our workforce, remain critical focus areas for the business.
Production
During F2025, the group made further progress in the pursuit of its strategic goals of growing safe and sustainable production down
the sector cost curve. Challenges remain, particularly in respect of metal prices, mining and energy cost inflation, as well as the
possible risk of Eskom load curtailment, and the growing threat of water utility outages.
Execution of our capital growth programmes remain on track, despite significant safety interventions at Eland limiting mining volumes.
Our progressive production growth and resultant operational resilience continue to demonstrate the long-term contribution of our
investments made over the past decade in pursuit of establishing a competitive and sustainable production base, which is able to
withstand potential medium to long-term cyclical downturns.
A key feature of F2025 has been the strong production delivered by Zondereinde and Booysendal. Zondereinde continues to benefit
from logistical decongestion resulting from the ongoing shift of UG2 stoping, from the western portions of the mine to higher yielding
eastern portions of the mine. Booysendal, having reached its steady state production profile, is now focussing on productivity gains.
The group's equivalent refined metal from own operations increased by 0.7% to 899 244 oz 4E (F2024: 892 876 oz 4E), with marginal
improvements at both Zondereinde and Booysendal: Zondereinde ahead of the commissioning of 3 shaft, despite the impact of power
and water outages caused by Eskom and Magalies Water, respectively; and Booysendal, on the back of productivity gains. This once
again demonstrates the quality of these operations. Despite experiencing two fatal accidents during the first half, and a subsequent
decision to limit mining build-up, Eland's own production of 4E ounces improved by 5.0%.
Key production metrics are as follows:
F2025 F2024
oz 4E oz 4E % Variance
Equivalent refined metal produced from own operations at Zondereinde
(exceeded guidance) 330 769 328 513 0.7%
Metal in concentrate produced from own operations at Booysendal
(exceeded guidance) 512 147 511 340 0.2%
Metal in concentrate produced from own operations at Eland*
(below guidance) 72 442 69 020 5.0%
Total equivalent refined metal produced from own operations
(within guidance) 899 244 892 876 0.7%
*Metal in concentrate produced from own operations at Eland amounted to 75 103 oz 4E, and 72 442 oz 4E on a stock adjusted
basis.
Group production of chrome concentrate increased by 9.0% to 1 439 752 tonnes (F2024: 1 320 963 tonnes), on the back of
improvements in UG2 tonnage throughput, feed grades and concentrator yields, particularly at Eland where yields have almost
doubled during F2025.
Mining tonnages and grades across the group are expected to improve over the coming two years as our growth and innovation
projects near completion, which, along with an expected increase in mineable reserves, will provide important additional operational
flexibility.
Unit cash costs
The unit cash cost for the group amounted to R25 728/4E oz (F2024: R23 811/4E oz), representing an increase of 8.1% for the year.
Unit cash costs increased at Zondereinde by 7.8% to R26 758/4E oz, Booysendal by 5.6% to R18 502/4E oz, and at Eland by 17.2%
to R40 562/4E oz.
Unit cash costs per 4E ounce for the group, and per operation, are as follows:
F2025 F2024
R/4E oz R/4E oz % Variance
Zondereinde cash cost per equivalent refined 4E ounce
(better than guidance) 26 758 24 830 (7.8%)
Booysendal cash cost per 4E ounce in concentrate produced
(within guidance) 18 502 17 520 (5.6%)
Eland cash cost per 4E ounce in concentrate produced
(higher than guidance) 40 562 34 607 (17.2%)
Group cash cost per equivalent refined 4E ounce
(lower end of guidance) 25 728 23 811 (8.1%)
Sales revenue
Sales revenue amounted to R32.9 billion, an increase of 6.9% (F2024: R30.8 billion).
The increase in sales revenue is predominantly attributable to a 5.9% increase in 4E volumes sold.
The challenging market conditions experienced during most of F2025, with largely depressed Platinum Group Metal ("PGM") prices
realised during the financial year, continued to place significant pressure on revenue and profitability, as well as cash generation,
despite a marginal improvement of 1.0% in total revenue per equivalent refined 4E ounce sold, to R32 690/4E oz
(F2024: R32 377/4E oz).
The table below summarises metal volumes dispatched to the group's precious metal refiners, compared to metal volumes refined
and sold, together with the average USD sales prices achieved (expressed per metal and on a 4E basis) during F2025:
Total
equivalent
refined metal
Total refined sold (including Average sales
metal the sale of prices
Dispatched produced concentrate) achieved
oz oz oz USD/oz
Platinum 579 810 564 011 604 724 990
Palladium 282 064 275 011 295 228 975
Rhodium 92 517 89 188 95 881 4 840
Gold 10 171 9 732 10 642 2 882
Total 4E 964 562 937 942 1 006 475 1 372
Included in total equivalent refined metal sold is concentrate sold to a third party to honour legacy offtake agreements relating to the
Everest and Maroelabult operations, which contained 75 342 oz 4E in concentrate (F2024: 52 317 oz 4E). Total refined metal sold
to the group's customers totalled 933 210 oz 4E (F2024: 899 377 oz 4E).
Financial results
Sales revenue increased by 6.9%, against an increase in cost of sales of 13.0%. This resulted in an operating profit of R3.6 billion
(F2024: R4.8 billion), and an operating profit margin of 10.9% (F2024: 15.7%).
We operate a largely fixed cost business and consider increasing production, and doing so efficiently and sustainably, to be our best
defence against current global inflationary pressures and weak metal prices. Our capital allocation and treasury decisions have been
guided by our growth strategy and our results have benefitted from our consistent approach to growing our production base down
the sector cost curve.
Earnings before interest, taxation, depreciation and amortisation ("EBITDA") amounted to R4.9 billion (F2024: R6.3 billion).
Metal inventory on hand increased to 495 350 oz 4E, with a carrying value of R9.0 billion and a sales value of R16.5 billion when
applying the 4E basket price and exchange rate as at 30 June 2025.
Our operations generated cash to the value of R4.7 billion, before cash capital expenditure of R5.0 billion.
During F2025, Domestic Medium Term Notes ("DMTNs") amounting to R4.2 billion were settled upon maturity. In June 2025, Northam
successfully concluded a private placement of new DMTNs to the value of R5.7 billion under Northam Platinum's R15.0 billion DMTN
Programme, as amended and/or supplemented from time to time ("DMTN Programme"), ("Placement"). The maturity profile of the
new notes has been staggered intentionally, taking into consideration, inter alia, Northam's business strategy, the extent and expected
completion dates of current and planned capital projects and the maturity profile of the notes in issue under the DMTN Programme
prior to the Placement. This provides additional certainty and flexibility, and protects Northam's liquidity position and capacity to
execute growth projects through metal price cycles.
Our growth strategy and allocation of capital are underpinned by our belief in the special metals we produce and their continued
global importance. The Placement will provide Northam with sufficient flexibility and liquidity to pursue an accelerated capital
investment programme in the short- to medium-term in the continued execution of our strategy to safely, efficiently and sustainably
increase our PGM production against a depleting primary supply from the sector. The solid operational performance, together with
our favourable position on the sector cost curve, ensures Northam's sustainable future, enhancing our investment case.
As at 30 June 2025, the group's gross cash balance amounted to R6.9 billion.
Northam's total available banking facilities amount to R12.3 billion, comprising the revolving credit facility ("RCF") of R11.3 billion and
general banking facilities ("GBF") of R1.0 billion. Both these facilities remain undrawn.
Post year-end once-off cash inflow of USD66.0 million
Subsequent to year-end, Northam and Heraeus Precious Metals GmbH & Co. KG ("Heraeus") concluded an amicable engagement
undertaken with a view to arrive at a mutually acceptable redetermination of historical refining outcomes, spanning over multiple
years, in order to more accurately and fairly reflect refining results. Heraeus has made a once-off payment to Northam, to the value
of USD66.0 million in this regard. Going forward, Heraeus has implemented certain pro-active steps to ensure a more accurate and
fair determination of refining outcomes.
Capital expenditure
Capital expenditure of R4.9 billion related to significant activity on the Western extension project at Zondereinde, the ongoing ramp-
up at Eland, mining fleet purchases and concentrator upgrades at Booysendal South. Further development activity at Zondereinde
and Eland is planned for the 2026 financial year ("F2026").
At Zondereinde mine, stoping continues to ramp-up within the Western extension section. Equipping of 3 shaft for personnel and
material transport, as well as the provision of services, is in progress, with the establishment of the intermediate pumping chamber
achieving a key milestone. Reaming of 3a ventilation shaft continues. Both shafts are scheduled for commissioning during the first
quarter of the 2026 calendar year. These milestones will deliver efficiency benefits to mining in the Western extension section. Pilot
drilling of 3b rock hoisting shaft is complete, and reaming will soon commence.
At the group's metallurgical facilities, upgrades to the base metal removal plant are progressing well and the expanded and upgraded
furnace slag concentrator is processing slag inventory. Following a scheduled rebuild completed during August 2024, smelter
furnace 2 is operating well, as is furnace 1.
At Booysendal, all mining modules are operating at steady state levels. Decline development is continuing in order to increase
mineable reserves and operational flexibility.
At Eland mine, processing of ore from surface sources continues, whilst ore production from underground mining ramps up, albeit at
a reduced rate as a result of additional safety interventions. This, combined with an increase in stoping crews operating in advance
of production, negatively impacted unit cash costs, a situation that is expected to normalise over the next two years. Development of
the decline system was re-commenced following a temporary pause in 2024, as part of a capital trimming exercise at the time for
liquidity preservation purposes. A planned reconfiguration of the mine's ventilation circuit towards the end of F2025 has enabled
multi-blast conditions, which now allows for accelerated decline development rates. A new 4.5 metre diameter raise-bored ventilation
shaft significantly improved environmental conditions, particularly in the deeper sections of the mine that are critical to the medium-
term ramp-up, and facilitated the planned ventilation reconfiguration. Focus remains on strike and raise development, in order to
increase mineable reserves. Underground stoping ramp-up continues, improving feed volumes and grades to the concentrator.
Enhancements to the PGM and chrome concentrator circuits at each of the mines are continuing to generate low-risk and profitable
improvements in metal recoveries.
Capital expenditure for F2026 is estimated at R5.2 billion, with the bulk to be invested in elective growth programmes.
The possibility of further Eskom load curtailment events, and newly emerging challenges from water utilities caused by failing
infrastructure, could lead to operational disruptions. The combination of additional on-demand self-generation capacity at all our
operations, together with ongoing improvements in water recycling and supplementary water supplies, mitigate these significant risks.
In order to reduce the impact of Eskom tariff inflation, and to further our decarbonisation strategy, the group is pursuing a series of
renewable energy initiatives.
The development of an 80 MW solar power facility at Zondereinde is in progress. Development is in collaboration with an independent
power producer ("IPP") through a power purchase agreement ("PPA"). Power will be supplied behind the Eskom meter and will thus
not be subject to load curtailment events. Construction has commenced, and commissioning is scheduled midway through F2026.
Once operational, the facility will improve security of power supply, whilst reducing energy costs and the mine's carbon footprint. The
group will further benefit from two additional PPAs concluded with IPPs. Firstly for 140 MW of renewable energy from the Karreebosch
wind farm, located close to Sutherland in the Western Cape, a project that is in construction and scheduled to generate energy from
2027, and secondly, 80 MW from the Thakadu solar farm, located close to Virginia in the Free State, also scheduled for commissioning
in 2027. The group is also exploring other renewable energy projects, and we expect the bulk of our energy requirements to be met
from renewable sources before the end of the decade.
Conclusion
Commodity markets are known for their cyclicality. The current outlook for global PGM demand and supply remains uncertain, which
in turn results in an uncertain outlook for PGM prices. A raft of global geopolitical and macro-economic issues have the potential to
cause further disruption to the PGM markets and metal prices, whilst the possibility of Eskom load curtailment events and interruptions
in water supply could lead to additional operational disruption and challenges. We continue to monitor the market and are confident
that our recently commissioned, additional on-demand self-generation capacity units at all our operations will significantly contribute
towards mitigating risks associated with load curtailment events, in addition to the ongoing efforts and initiatives to increase water
recycling and the availability of supplementary water supplies.
Despite the increase in PGM prices after year-end, the low PGM price environment is constraining earnings across the entire PGM
sector. The sector's ability to respond to lower PGM prices by suspending or reducing costs is limited, as the majority of mining costs
are fixed in nature. This is consequently constraining cash generation across the sector, requiring ever more prudent management
of liquidity.
The following factors have been considered as part of the liquidity management of the group:
' The group's growth strategy is focussed on growing sustainable production down the sector cost curve by developing shallow,
mechanisable orebodies. Our programme of optimising existing operations continues and remains on track. We have utilised
our balance sheet to grow the business and the project pipeline has been funded through cash generated by our operations, as
well as the utilisation of our DMTN Programme and, from time to time, our banking facilities.
' The staggered maturity profile of Northam's DMTN Programme provides an additional degree of certainty and flexibility to enable
prudent cash flow and liquidity management. Northam has proactively managed its DMTN Programme's maturity profile to
appropriately match the production growth build-up, and therefore the expected cash generation capacity of the group.
Furthermore, the maturity profile has been staggered over a number of years to enhance and protect our liquidity position through
metal price cycles.
' The group's available banking facilities amount to R12.3 billion, comprising an R11.3 billion RCF and a R1.0 billion GBF. These
facilities remain fully undrawn.
' Should market conditions require, adjustments will be made to the group's expansionary capital expenditure, if necessary, to
preserve liquidity.
In light of prevailing PGM market uncertainty, Northam remains internally focussed with full emphasis on operational excellence,
particularly surrounding safe, sustainable production and efficient mining at the right cost.
Despite recent improvements in metal prices being realised, the global economic outlook remains uncertain, with potentially volatile
metal markets and exchange rates.
Northam's relative position in the industry, and the ability to retain operational flexibility and balance sheet strength, remain our key
differentiators. The group remains committed to the strategic goal of growing safe and sustainable production down the sector cost
curve.
The financial information contained in this announcement is the responsibility of the board of directors of Northam Holdings and has
not been reviewed or reported on by Northam Holdings' auditors, PricewaterhouseCoopers Incorporated. The audited results
of Northam Holdings for F2025 are expected to be published on or about 29 August 2025.
Johannesburg
18 August 2025
Corporate Advisor and Sponsor to Northam Holdings
One Capital
Corporate Advisor and Debt Sponsor to Northam Platinum
One Capital
Date: 18-08-2025 05:00:00
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