Wrap Text
Reviewed interim results for the six months ended 31 December 2016
NORTHAM PLATINUM LIMITED
(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 "group" or "company")
REVIEWED INTERIM RESULTS
for the six months ended
31 December 2016
These reviewed interim results have been prepared under the supervision of the chief financial officer,
Mr AZ Khumalo CA(SA).
The financial results of the group have been reviewed by Ernst & Young Inc, under the supervision of
Mr M Herbst CA(SA), a registered auditor. A copy of their unmodified reviewed report is available for inspection at
the company's registered office.
The interim results of the group will be published on the group's website on Friday, 24 February 2017.
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
R000 R000 R000
Sales revenue 3 458 827 3 205 358 6 097 070
Cost of sales (3 106 871) (3 111 953) (5 713 722)
Operating costs (2 771 920) (2 373 038) (5 007 233)
Concentrates purchased (178 221) (238 977) (350 514)
Refining and other costs (66 223) (69 954) (133 186)
Depreciation and write-offs (226 835) (203 146) (403 545)
Change in metal inventories 136 328 (226 838) 180 756
Operating profit 351 956 93 405 383 348
Share of earnings/(losses) from associate and joint
venture 1 851 (11 615) (32 253)
Investment revenue 107 442 163 564 265 258
Finance charges excluding preference share
dividends (50 146) (29 258) (39 634)
Sundry income 40 821 127 001 180 928
Sundry expenditure (82 109) (69 278) (92 122)
Profit before preference share dividends 369 815 273 819 665 525
Amortisation of liquidity fees paid on preference
shares (8 195) (8 527) (18 088)
Preference share dividends (482 753) (430 414) (918 806)
Loss on derecognition of preference share liability (902) – –
Loss before tax (122 035) (165 122) (271 369)
Taxation (104 569) (107 847) (236 894)
Loss for the period (226 604) (272 969) (508 263)
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
R000 R000 R000
Other comprehensive income
Items that may be subsequently reclassified
to profit or loss – – 19 822
Share of associate's exchange differences on
translating foreign operations and foreign
currency translation – – (3 947)
Reclassification of other comprehensive income
from associate to profit or loss – – 23 769
Loss and total comprehensive income
for the period (226 604) (272 969) (488 441)
Reconciliation of headline loss per share
Loss for the period (226 604) (272 969) (508 263)
(Profit)/loss on sale of property, plant and
equipment (841) 1 523 (57)
Impairment of associate's assets – – 11 185
Loss on sale of investment in associate – – 21 024
Impairment/(reversal of impairment) of non-core
assets 841 39 951 (13 610)
Tax effect on above 235 (426) (3 116)
Headline loss (226 369) (231 921) (492 837)
Loss per share – cents (64.8) (78.0) (145.3)
Fully diluted loss – cents (64.8) (78.0) (145.3)
Headline loss per share – cents (64.7) (66.3) (140.9)
Fully diluted headline loss per share – cents (64.7) (66.3) (140.9)
Dividends per share – – –
Weighted average number of shares in issue 349 875 759 349 875 759 349 875 759
Fully diluted number of shares in issue 349 875 759 349 875 759 349 875 759
Number of shares in issue 509 781 212 509 781 212 509 781 212
Treasury shares in issue 159 905 453 159 905 453 159 905 453
Shares in issue adjusted for treasury shares 349 875 759 349 875 759 349 875 759
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
R000 R000 R000
ASSETS
Non-current assets 14 579 701 13 660 222 14 110 084
Property, plant and equipment 8 392 953 7 317 097 7 853 993
Mining properties and mineral resources 5 621 172 5 664 180 5 614 094
Interest in associates and joint ventures 164 195 231 138 192 164
Unlisted investment 649 6 6
Land and township development 46 154 18 400 51 341
Long-term receivables 87 011 92 557 89 717
Investments held by Northam Platinum Restoration
Trust Fund 97 832 89 990 93 647
Environmental Guarantee investment 62 219 59 522 60 345
Buttonshope Conservancy Trust 10 545 11 018 10 445
Other financial assets 8 450 – –
Deferred tax asset 88 521 176 314 144 332
Current assets 4 376 131 4 153 965 4 867 779
Inventories 1 482 974 905 379 1 330 270
Trade and other receivables 617 792 341 416 375 204
Cash and cash equivalents 2 227 909 2 906 354 3 105 080
Tax receivables 47 456 816 57 225
Non-current assets held for sale 45 565 – –
Total assets 19 001 397 17 814 187 18 977 863
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
R000 R000 R000
EQUITY AND LIABILITIES
Total equity 8 501 380 8 943 456 8 727 984
Stated capital 13 778 114 13 778 114 13 778 114
Treasury shares (6 556 123) (6 556 123) (6 556 123)
Retained earnings 404 941 866 839 631 545
Equity settled share-based payment reserve 874 448 874 448 874 448
Share of other comprehensive income from
associate – (19 822) –
Non-current liabilities 9 285 653 7 772 836 9 072 179
Deferred tax liability 566 410 543 398 590 637
Long-term provisions 272 205 215 920 272 820
Preference share liability 7 725 705 6 931 596 7 429 549
Long-term loans 248 717 38 063 275 513
Long-term share-based payment liability 52 432 43 859 84 373
Domestic medium-term notes 420 184 – 419 287
Current liabilities 1 214 364 1 097 895 1 177 700
Current portion of long-term loans 13 202 3 801 13 201
Short-term share-based payment liability 71 099 20 049 56 704
Tax payable 105 447 117 497 104 072
Trade and other payables 868 788 817 886 877 935
Other financial liabilities 10 508 – –
Short-term provisions 145 320 138 662 125 788
Total equity and liabilities 19 001 397 17 814 187 18 977 863
INTERIM CONSOLIDATED STATEMENT OF CHANGES OF EQUITY
Equity
settled Other
share-based comprehensive
Stated Retained payment income from
capital earnings reserve associate Total
R000 R000 R000 R000 R000
Opening balance
as at 1 July 2015 7 221 991 1 139 808 874 448 (19 822) 9 216 425
Total comprehensive
income for the period – (272 969) – – (272 969)
Balance as at
31 December 2015 7 221 991 866 839 874 448 (19 822) 8 943 456
Total comprehensive
income for the period – (235 294) – 19 822 (215 472)
Loss for the period – (235 294) – – (235 294)
Other comprehensive
income for the period – – – 19 822 19 822
Balance as at
30 June 2016 7 221 991 631 545 874 448 – 8 727 984
Loss and total
comprehensive income
for the period – (226 604) – – (226 604)
Balance as at
31 December 2016 7 221 991 404 941 874 448 – 8 501 380
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
R000 R000 R000
Cash flows from operating activities 216 430 684 374 839 081
Loss before taxation (122 035) (165 122) (271 369)
Adjusted for the following non-cash items
as well as discloseable items
Deprecation and write-offs 226 835 203 146 403 545
Changes in provisions 18 917 6 195 50 221
Changes in long-term receivables 2 706 1 946 4 786
Investment revenue (107 442) (163 564) (265 258)
Finance charges excluding preference
share dividends 50 146 29 258 39 634
Finance charges on preference shares 482 753 430 414 918 806
Capitalised finance charges
on the preference shares 17 442 – –
Liquidity fees on the preference shares 8 195 8 527 18 088
Movement in share-based payment liability (17 546) (66 577) 10 592
Impairment/(reversal of impairment) of
investment in associates 841 39 951 (13 610)
Share of (earnings)/losses from associate (1 851) 11 615 32 253
Loss on sale of investment in associate – – 21 024
Amortisation of participation interest in the
Pandora joint venture – – 2 600
Profit on sale of property, plant and equipment (841) – (57)
Net foreign exchange difference 30 018 – –
Other 2 173 2 822 1 395
Change in working capital (404 439) 236 499 (162 131)
Movement relating to land and township
development 5 187 – (41 341)
Movement in other financial assets and liabilities 2 058 – –
Investment revenue 107 442 163 564 265 258
Taxation paid (84 129) (54 300) (175 355)
Reviewed Reviewed Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
R000 R000 R000
Cash flows utilised in investing activities (777 978) (515 051) (1 126 793)
Property, plant, equipment, mining properties
and mineral reserves
Additions to maintain operations (130 803) (184 746) (369 636)
Additions to expand operations (624 705) (299 760) (804 344)
Disposal proceeds 918 391 4 235
Movement in land and township development – (8 400) –
Investment in associate – cash distributed – – 24
Additional investment made in associate (16 586) (8 157) (20 601)
Proceeds received on the sale of investment in
Trans Hex Group Limited – – 81 815
Acquisition of unlisted investments (643) – –
Increase in investment held by the Northam
Platinum Restoration Trust Fund (4 185) (6 998) (10 655)
Increase in the investments held by the
Environmental Guarantee investment (1 874) (7 400) (8 223)
Movement in investments held by the
Buttonshope Conservancy Trust Fund (100) 19 592
Cash flows utilised from financing activities (285 605) (1 401 158) (745 397)
Interest paid (50 146) (29 258) (39 634)
Repayment of long-term loans (26 795) (1 900) 244 950
Acquisition of Zambezi Platinum (RF) Limited
preference shares (208 664) – –
Domestic medium-term debt notes issued – – 419 287
Domestic medium-term debt notes repaid – (1 370 000) (1 370 000)
Decrease in cash and cash equivalent (847 153) (1 231 835) (1 033 109)
Net foreign exchange difference
on cash and cash equivalents (30 018) – –
Cash and cash equivalents at the beginning
of the period 3 105 080 4 138 189 4 138 189
Cash and cash equivalents
at the end of the period 2 227 909 2 906 354 3 105 080
NOTES TO THE REVIEWED INTERIM RESULTS
1. ACCOUNTING POLICIES AND THE BASIS OF PREPARATION
The financial statements have been prepared on the historical cost basis, except for the financial instruments to the
extent required or permitted under International Financial Reporting Standards (IFRS) and as set out in the relevant
accounting policies detailed in Northam's annual integrated report, which includes the annual financial statements
for the year ended 30 June 2016. These interim financial statements incorporate the accounting policies which
have been applied on a basis consistent with the previous year, with the exception of the policies adopted during
the period as more fully set out below.
The group interim financial statements have been prepared in accordance with the framework concepts and
the measurement and recognition requirements of IFRS, its interpretations issued by the IFRS Interpretations
Committee, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, presentation
and disclosed as required by IAS34 Interim Financial Reporting the JSE Listing Requirements and the requirements
of the Companies Act No. 71 of 2008 (Companies Act) with the exception of the adoption of the following
amendments, standards or interpretations with effect from 1 July 2016:
- IFRS 10, IFRS 12 and IAS 28 Investment Entities: Applying the Consolidation Exception – Amendments to IFRS 10, IFRS 12 and IAS 28
- IFRS 11 Accounting for Acquisitions of Interest in Joint Operations – Amendments to IFRS 11
- IFRS 14 Regulatory Deferral Accounts
- IAS 1 Disclosure Initiative – Amendments to IAS 1
- IAS 16 and IAS 38 – Clarification of Acceptable Methods of Depreciation and Amortisation – Amendments to IAS 16 and IAS 38
- IAS 16 and IAS 41 Agriculture – Bearer Plants – Amendments to IAS 16 and IAS 41
- IAS 27 – Equity Method in Separate Financial Statements – Amendments to IAS 27
- AIP IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – Changes in methods of disposal
- AIP IFRS 7 Financial instruments: Disclosures – Servicing contacts
- AIP IFRS 7 Financial instruments: Disclosures – Applicability of the offsetting disclosures to condensed interim financial statements
- AIP IAS 19 Employee Benefits – Discount rate: regional market issue
- AIP IAS 34 Interim Financial Reporting – Disclosure of information ‘elsewhere in the interim financial report'
The adoption of these amendments resulted in changes only in the way in which the interim financial results
statements are presented, as well as additional disclosures in the annual financial statements. They did not impact
any amounts recognised in the interim consolidated statement of comprehensive income or interim consolidated
statement of financial position.
2. RELATED PARTIES
The group enters into various sales, purchases, financing and lease transactions in the ordinary course of business
with a large number of entities, some of whom are related parties.
3. EVENTS AFTER THE REPORTING PERIOD
Subsequent to the reporting period, an agreement was entered into with Glencore Operations South Africa
Proprietary Limited to purchase the Eland mine near Brits in the North West province for R175.0 million.
There have been no other events subsequent to the period end which require additional disclosure or adjustment
to these interim financial results.
FINANCIAL, OPERATING AND PRODUCTION STATISTICS
6 months 6 months 12 months
NORMALISED HEADLINE EARNINGS PER SHARE ended ended ended
(HEADLINE EARNINGS ADJUSTED FOR THE IMPACT 31 December 31 December 30 June
OF THE BEE TRANSACTION) 2016 2015 2016
R000 R000 R000
Headline loss (226 369) (231 921) (492 837)
Add back:
Amortisation of liquidity fees paid on
preference shares 8 195 8 527 18 088
Preference share dividends 482 753 430 414 918 806
Loss on derecognition of preference share liability 902 – –
Normalised headline earnings 265 481 207 020 444 057
Normalised earnings per issued share (cents) 52.1 40.6 87.1
Number of shares in issue including treasury shares 509 781 212 509 781 212 509 781 212
VALUE CREATED AND DISTRIBUTED
Value created and distributed to employees:
Salaries and wages 815 741 747 652 1 583 260
Contributions to retirement benefit funds 63 959 63 040 123 964
Contributions to healthcare funds 34 516 32 806 68 831
Share-based payment payouts 43 120 48 868 56 222
Total value created and distributed to employees 957 336 892 366 1 832 277
Value created and distributed to government:
Mining and non-mining tax 72 985 89 604 140 825
Mining royalties 32 132 23 017 44 283
Pay-as-you-earn deducted from employees 162 783 157 976 294 043
Total value created and distributed to government 267 900 270 597 479 151
MARKET INFORMATION AND SHARE STATISTICS
Total number of shares in issue 509 781 212 509 781 212 509 781 212
Weighted average number of shares in issue 349 875 759 349 875 759 349 875 759
Treasury shares held 159 905 453 159 905 453 159 905 453
Market capitalisation 20 646 139 13 453 126 21 920 592
Closing share price (in cents) 4 050 2 639 4 300
RESULTS COMMENTARY
FINANCIAL OVERVIEW
Statement of comprehensive income
Sales revenue generated by the group increased 7.9% to R3.5 billion (H1 F2016: R3.2 billion) compared to the
previous period despite lower sales volumes. The higher revenue reflected a 19.1% increase in the total revenue
per platinum oz sold of R25 720/oz (H1 F2016 R21 594/oz) aided by a 3.2% weaker average ZAR/USD exchange
rate of R13.99/USD (H1 F2016: R13.55/USD).
Sales volumes declined by 9.8% to 223 705 oz for the current period (H1 F2016: 248 075 oz) reflecting metallurgical
constraints and an 18-day outage resulting from a mill bearing failure on the UG2 concentrator at Zondereinde.
Cost of sales were unchanged at R3.1 billion despite higher operating costs. Operating costs increased by 16.8% to
R2.8 billion (H1 F2016: R2.4 billion). This reflected the impact of higher labour and power costs as well as greater
production volumes from the Booysendal North mine. Depreciation and associated write-offs were higher and
the cost of purchased concentrate dropped in line with lower third party deliveries. Higher depreciation costs are
driven by the higher units of production at the Booysendal North mine which increased metal production volumes
by 35.4%.
The positive change in metal inventories reflects the increase in stockpiles within the group as ore production
exceeds current milling and smelting capacity. The higher group revenue with an unchanged cost of sales resulted
in an operating profit of R352.0 million (H1 F2016: R93.4 million), at an operating margin of 10.2% (H1 F2016: 2.9%).
Investment revenues dropped by 34.3% to R107.4 million (H1 F2016: R163.6 million), reflecting the lower average
cash balances during the current period as cash has been deployed for expansion of current production capacity.
Sundry income was down 67.9% largely as a result of the once off receipt from a cancelled insurance contingency
policy and an insurance refund in the comparable period.
The increase in finance charges reflects the costs associated with the two domestic medium-term notes of
R175.0 million and R250.0 million reported at the end of F2016. Included in sundry expenditure, which is up
18.5%, is a net foreign currency loss compared to a net gain in the previous period. The cumulative non-cash
preference share dividends increased by 12.2% to R482.8 million (H1 F2016: R430.4 million), net of capitalised
interest of R17.4 million, due to the compounding nature of the preference share liability.
Although group operating profits were higher at R352.0 million (H1 F2016: R93.4 million), the tax charge was
similar owing to the utilisation of unredeemed capital expenditure against increased mining income and the
reduction of taxable non-mining income.
Cash flows
Abnormally high inventory levels and prepayments drove working capital requirements, which in turn led to a
decline of 68.4% in operating cash flows to R216.4 million (H1 F2016: R684.4 million). The high inventory levels
accounted for in working capital reflect the higher mining production of the group relative to its current metallurgical
capacity, which will be released once the new furnace is commissioned. Working capital movement includes the
prepayment of R157.9 million relating to the construction of the aerial rope conveyor for ore transportation at the
Booysendal South mine.
The cash utilised in investing activities is 51.1% up at R777.9 million (H1 F2016: R515.1 million) owing to the
group's current intensive capital expenditure programme.
Cash flows utilised in financing activities amounting to R285.6 million, decreased 79.6% from the previous
period's R1.4 billion, due to the relatively lower levels of financing-related repayments in the current period. In the
previous period, the repayment of the R1.4 billion domestic medium-term note was recorded. In the current period,
Northam acquired Zambezi preference shares to the value of R208.7 million.
OPERATIONS
Zondereinde
Management and employees of Zondereinde are commended for achieving the milestone of 6 million fatality-free
shifts during the current period. The lost time injury incident rate (LTIIR) improved to 1.59 injuries per 200 000
hours worked (F2016: 1.92)
Management however regrets to report that soon after the end of this reporting period, Mr Alexandre Macave,
a locomotive operator, was fatally injured in an underground rail accident on Friday, 6 January 2017. Mr Macave,
was a Mozambican citizen aged 54, with 25 years' experience. The board and management express their sincere
condolences to the family and colleagues of Mr Macave.
Zondereinde's production was adversely affected by measures taken to reorganise the workforce, along with an
18-day outage of the UG2 milling circuit owing to a mill bearing failure. The workforce reorganisation was a
result of the discharge of 357 employees following labour disruptions in June 2016. In spite of the fewer mining
crews, centare mining targets were met, but tonnage volumes hoisted were lower, as resources were moved from
vamping to stoping teams. UG2 tonnages mined were lower by 12.7% at 610 973 tonnes (H1 F2016: 699 775
tonnes). The Merensky tonnage mined decreased by 2.2% to 512 656 tonnes (H1 F2016: 524 211 tonnes) at a
head grade of 5.8g/t. The decline in total tonnages was 8.2% at 1 123 629 tonnes (H1 F2016: 1 223 986 tonnes)
with a combined head grade of 4.9g/t.
The mining teams are expected to be back at full complement by the end of March 2017. Merensky ore remains
constrained for now, but the ore mix will gradually be modified to accommodate the more dominant Merensky reef
in the additional ground acquired from Anglo Platinum, moving to a Merensky:UG2 ratio of 55:45. This should be
achievable within a 24 month period, post the section 102 approvals.
Total operating costs at Zondereinde for the period were R1.8 billion (H1 F2016: R1.7 billion), a 7.0% increase.
The combination of higher costs and lower production translated into a 12.7% increase in unit cash costs per
equivalent refined platinum ounce to R19 980 (H1 F2016: R17 730 per platinum ounce).
The production of equivalent refined metal declined by 7.0% to 144 292 oz (H1 F2016: 155 063 oz) owing to the
disruptions mentioned above. Third party concentrate added 14 179 oz to on-mine production.
Capital expenditure during the current period was R425.0 million (H1 F2016: R161.9 million). Expansionary project
expenditure accounted for R347.2 million while sustaining expenditure was R77.8 million. The project expenditure
pertained primarily to the construction of the new 20MW furnace and drying plant. Expansion and sustaining
capital expenditure for the remainder of F2017 is estimated at R160.7 million and R137.3 million respectively.
Zondereinde's current total resource estimate is 84.0 million oz (Moz) (F2016: 84.1Moz) excluding the recent
purchase of resources. Mineral resources purchased from the neighbouring Tumela mine are expected to increase
this resource base by 16.7Moz on completion of the transaction.
Booysendal
Booysendal's outstanding safety run continued, with an improvement in the lost time injury rate per 200 000 hours
worked to 0.14 (F 2016: 0.44). The mechanised mining method remains a significant safety differentiator.
The Merensky North mine at Booysendal has been brought into production and is producing at a rate of
25 000 tonnes per month. Production has been stockpiled and 133 952 tonnes (H1 F2016: 42 809 tonnes),
at a head grade of 2.0g/t was mined during the period. The head grade at steady state will be around 2.5g/t.
Production from the UG2 mine increased by 31.4% with 1 190 722 tonnes mined (H1 F2016: 906 000 tonnes)
at a head grade of 2.7g/t. The combined tonnage mined was 1 324 674 tonnes (H1 F2016: 948 809 tonnes) at a
head grade of 2.7g/t.
Chrome concentrate produced for the current period was 138 635 tonnes (H1 F2016: 95 166 tonnes), a 45.7%
increase, in line with the higher volume of UG2 ore mined.
Booysendal's total operating costs rose 42.2% to R948.8 million (H1 F2016: R667.4 million). This is in direct
correlation with the higher production volumes from Booysendal, at 100 021 oz (H1 F 2016: 73 882 oz).
The cash cost per equivalent 3PGM+Au ounce in concentrate was R9 218 (H1 F2016: R9 075) a 1.6% increase
compared to the previous period. This equates to a cash cost per platinum ounce of R15 271/oz (H1 F2016: R14 854/oz).
Capital expenditure was R330.0 million for the period (H1 F2016: R322.1 million) of which R277.5 million was
project expenditure and R52.5 million sustaining expenditure. In addition, R157.9 million was prepaid for the
construction of the aerial rope conveyor system at Booysendal South. The Booysendal estimated expansionary and
sustaining capital expenditure for the rest of F2017 will be R568.5 million and R34.7 million respectively.
MINERAL RESOURCES AND RESERVES
The following tables summarise the mineral resources and reserves attributable to Northam for both the current
period and previous year. Notes on the reporting criteria are pertinent, together with specific notes which can be
found in the Northam annual integrated report for the year ended 30 June 2016, which is available on the group's
website.
Mineral resources are reported inclusive of mineral reserves.
Northam group reserves estimate (combined proven and probable)
as at 31 December 2016 As at 30 June 2016
3PGM + Au 3PGM + Au
Reef Mine Mt g/t Moz Mt g/t Moz
Merensky Booysendal North mine 14.37 2.95 1.36 14.51 2.92 1.36
Booysendal South mine 9.36 2.58 0.78 9.36 2.58 0.78
Dwaalkop* – – – – – –
Zondereinde 20.65 5.51 3.66 21.01 5.51 3.72
Total 44.38 4.06 5.80 44.88 4.06 5.86
UG2 Booysendal North mine 40.34 3.09 4.00 41.53 3.00 4.00
Booysendal South mine 75.86 2.65 6.48 75.86 2.65 6.48
Dwaalkop* – – – – – –
Pandora* 1.12 4.20 0.15 1.21 4.10 0.16
Zondereinde 58.21 4.24 7.93 58.64 4.24 7.99
Total 175.53 3.29 18.56 177.24 3.27 18.63
Combined Booysendal North mine 54.71 3.05 5.36 56.04 2.98 5.36
Booysendal South mine 85.22 2.65 7.26 85.22 2.65 7.26
Dwaalkop* – – – – – –
Pandora* 1.12 4.20 0.15 1.21 4.10 0.16
Zondereinde 78.86 4.57 11.59 79.65 4.58 11.71
Total 219.91 3.45 24.36 222.12 3.43 24.49
* Current resources and reserves of Pandora and Dwaalkop are quoted as at 30 September 2016 while those of the previous year
are at 30 September 2015. The above table excludes any reserves and resources from ground recently acquired from Anglo
American Platinum Limited's Tumela mine.
Northam group resources estimate (combined measured, indicated and inferred)
as at 31 December 2016 As at 30 June 2016
3PGM + Au 3PGM + Au
Reef Mine Mt g/t Moz Mt g/t Moz
Merensky Booysendal North 87.82 5.06 14.29 87.82 5.06 14.29
Booysendal South 187.55 3.55 21.41 187.55 3.55 21.41
Booysendal North mine 16.84 3.23 1.75 16.97 3.23 1.76
Booysendal South mine 11.98 2.77 1.07 11.98 2.77 1.07
Dwaalkop* 38.05 2.98 3.64 38.05 2.98 3.64
Zondereinde 164.14 7.38 38.93 164.44 7.38 39.00
Total 506.38 4.98 81.09 506.81 4.98 81.17
UG2 Booysendal North 152.65 4.86 23.87 152.65 4.86 23.87
Booysendal South 235.67 3.20 24.26 235.67 3.20 24.26
Booysendal North mine 41.41 4.52 5.88 41.41 4.52 6.02
Booysendal South mine 126.76 3.07 12.51 126.76 3.07 12.51
Dwaalkop* 37.56 4.35 5.25 37.56 4.35 5.25
Pandora* 14.18 4.65 2.12 14.14 4.65 2.11
Zondereinde 276.01 5.08 45.07 276.41 5.08 45.14
Total 884.24 4.19 118.96 884.6 4.19 119.16
Combined Booysendal North 240.47 4.94 38.16 240.47 4.94 38.16
Booysendal South 423.22 3.36 45.67 423.22 3.36 45.67
Booysendal North mine 58.25 4.14 7.62 58.38 4.15 7.78
Booysendal South mine 138.74 3.04 13.57 138.74 3.04 13.58
Dwaalkop* 75.61 3.66 8.90 75.61 3.66 8.89
Pandora* 14.18 4.65 2.12 14.14 4.65 2.11
Zondereinde 440.15 5.94 84.01 440.85 5.94 84.14
Total 1 390.62 4.48 200.05 1 391.41 4.48 200.33
* Current resources and reserves of Pandora and Dwaalkop are quoted as at 30 September 2016 while those of the previous year
are at 30 September 2015. The above table excludes any reserves and resources from ground recently acquired from Anglo
American Platinum Limited's Tumela mine.
CHANGES TO THE BOARD OF DIRECTORS
Mr JG (John) Smithies was appointed as an independent non-executive director, effective 1 January 2017 as
announced on 10 November 2016.
Mr AR (Alwyn) Martin retired from the board of directors, at the conclusion of the annual general meeting,
held on 9 November 2016. Ms HH (Hester) Hickey has replaced Mr Martin as chairman of the audit and risk
committee.
GOING CONCERN AND PROSPECTS
Mining operations have a finite life and are dependent amongst other things on geological, technical as well as
economic factors such as commodity prices and exchange rates. The global economic outlook and low US dollar
metal prices are a concern as the group is an exporter of PGMs to global markets. Operations continue to be under
pressure due to increasing input costs (mainly power and labour) and lower metal prices.
The board believes that the group has adequate financial resources to continue operating for the foreseeable future
and, accordingly, the financial statements have been prepared on a going concern basis.
CORPORATE GOVERNANCE
The group is in the process of evaluating compliance in terms of King IV and will update the checklist available on
the Northam website www.northam.co.za in due course.
DIVIDENDS
Given the continuing difficult conditions in the mining industry, and taking into consideration the cash requirements
for the development of the group's project pipeline and acquisition of platinum assets, the board has resolved not
to declare an interim dividend for H1 F2017 (H1 F2016: Rnil cents per share).
On behalf of the board
PL Zim PA Dunne
Chairman Chief executive
Johannesburg
21 February 2017
DIRECTORS
PL Zim (non-executive chairman)
R Havenstein (lead independent director)
PA Dunne (chief executive officer)*
AZ Khumalo (chief financial officer)
CK Chabedi (independent non-executive director)
HH Hickey (independent non-executive director)
TE Kgosi (independent non-executive director)
KB Mosehla (non-executive director)
TI Mvusi (independent non-executive director)
JG Smithies (independent non-executive director)*
* British
REGISTERED OFFICE
Building 4, 1st Floor
Maxwell Office Park
Magwa Crescent West
Waterfall City
Jukskei View 2090
South Africa
PO Box 412694
Craighall 2024
South Africa
WEBSITE
www.northam.co.za
COMPANY SECRETARY
PB Beale
TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited
Rosebank Towers
15 Biermann Avenue
Rosebank 2196
South Africa
PO Box 61051
Marshalltown 2107
South Africa
SPONSOR AND DEBT SPONSOR
One Capital
17 Fricker Road
Illovo 2196
Johannesburg
South Africa
PO Box 784573
Sandton 2146
South Africa
These results are disclosed in greater detail than has been disclosed in the past,
including segmental analyses, breakdown of sales and costs, amongst other metrics.
These appear in the reviewed interim results booklet, which is available on the
Northam website at www.northam.co.za and at Northam's registered office.
Johannesburg
24 February 2017
Sponsor and debt sponsor
One Capital
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