NORTHAM PLATINUM LIMITED - Northam and Heraeus extend strategic co-operation agreement

Northam and Heraeus extend strategic co-operation agreement

NORTHAM PLATINUM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1977/003282/06)
JSE share code: NHM ISIN code: ZAE000030912
(“Northam Platinum” or “Northam”)


NORTHAM AND HERAEUS EXTEND STRATEGIC CO-OPERATION AGREEMENT

Northam Platinum is pleased to announce that it has agreed terms to extend its co-operation
agreement with Heraeus Deutschland GmbH & Co. KG (Heraeus) and Heraeus South Africa
Proprietary Limited (HSA). The agreement will cement the strategic partnership between the
companies and support Northam’s expansion plans.

In terms of the agreement Heraeus will contribute € 20 million (approximately R300 million at
the current exchange rate) to expand the capacity of Northam’s existing smelter, with the
construction of a 20MW second furnace at the Zondereinde metallurgical complex. The total
cost of the expansion is estimated at R750 million.

Northam chief executive Paul Dunne said today, “the addition of a second furnace at the
Zondereinde division is a critical element of Northam’s strategic growth: it supports the
expansion programme at Booysendal and the increased UG2 mining at Zondereinde and will
immediately raise the group’s processing capacity to more than 1 million PGM ounces. In
addition, it reduces operational risk, while providing headroom for third party concentrate
purchases and toll treatment arrangements.”

The agreement also provides for the renewal of the current offtake and toll refining
agreements with Heraeus, and a represents a landmark initiative in which both parties will
also support product development and optimisation.

Heraeus’ capital contribution will be fixed according to a progress schedule, and paid in
tranches. The furnace is planned to be commissioned by the end of the 2017 calendar year.
In return Northam will renew its toll refining agreement with Heraeus and HSA for a period of
20 years at competitive terms. Northam also undertakes to sell up to 40% of its production
to Heraeus or HSA at market prices.

The various elements of the agreement underscore Northam’s plans for growth and
expansion, underpinned by a conservative approach to capital expenditure, particularly in
the current climate of metal price weakness.
Dunne concluded that this investment by Heraeus is a clear sign of confidence in platinum
group metals, their markets and in Northam. “This development is significant, not only in that
it further cements our companies’ already long-standing business partnership, but is an
expression of confidence in PGMs and their markets, Northam’s performance to date, and
our expansion strategy.”



Johannesburg
23 October 2015


Sponsor and Debt Sponsor
One Capital

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