Wrap Text
Summarised preliminary financial results
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 group" or "company")
SUMMARISED ABRIDGED FINANCIAL RESULTS
These year-end results have been prepared under the supervision of the chief financial officer, Mr AZ Khumalo CA (SA).
This summarised report is extracted from the audited financial statements, but is not itself audited. The directors take full responsibility
for the preparation of the abridged report and the financial information has been correctly extracted from the underlying annual financial
statements. The audited financial statements are available on Northam's website at www.northam.co.za on Friday, 25 August 2017.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Audited Audited
12 months 12 months
ended ended
30 June 30 June
2017 2016
R000 R000
Sales revenue 6 865 185 6 097 070
Cost of sales (6 251 200) (5 713 722)
Operating costs (5 676 017) (5 007 233)
Concentrates purchased (404 093) (350 514)
Refining and other costs (120 633) (133 186)
Depreciation and write-offs (452 584) (403 545)
Change in metal inventories 402 127 180 756
Operating profit 613 985 383 348
Share of earnings/(losses) from associate and joint venture 4 870 (32 253)
Investment revenue 167 306 265 258
Finance costs excluding preference share dividends (71 185) (39 634)
Net foreign exchange transaction (losses)/gains (46 729) 26 163
Sundry income 73 361 154 765
Sundry expenditure (130 843) (92 122)
Profit before preference share dividends 610 765 665 525
Amortisation of liquidity fees paid on preference shares (16 390) (18 088)
Preference share dividends net of amounts capitalised (1 017 396) (918 806)
Loss on derecognition of preference share liability (901) -
Loss before tax (423 922) (271 369)
Taxation (212 021) (236 894)
Loss for the year (635 943) (508 263)
Audited Audited
12 months 12 months
ended ended
30 June 30 June
2017 2016
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
Total comprehensive income for the year (635 943) (488 441)
Reconciliation of headline loss per share
Loss for the year (635 943) (508 263)
Profit on sale of property, plant and equipment (1 762) (57)
Impairment of associate's assets - 11 185
Loss on sale of investment in associate - 21 024
IFRS 5 adjustment to fair value less cost to sell 841 -
Impairment/(reversal of impairment) of non-core assets - (13 610)
Tax effect on above 493 (3 116)
Headline loss (636 371) (492 837)
Loss per share - cents (181.8) (145.3)
Fully diluted loss - cents (181.8) (145.3)
Headline loss per share - cents (181.9) (140.9)
Fully diluted headline loss per share - cents (181.9) (140.9)
Dividends per share - -
Weighted average number of shares in issue 349 875 759 349 875 759
Fully diluted number of shares in issue 349 875 759 349 875 759
Number of shares in issue 509 781 212 509 781 212
Treasury shares in issue 159 905 453 159 905 453
Shares in issue adjusted for treasury shares 349 875 759 349 875 759
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
12 months 12 months
ended ended
30 June 30 June
2017 2016
R000 R000
Assets
Non-current assets 15 483 553 14 110 084
Property, plant and equipment 9 022 260 7 853 993
Mining properties and mineral resources 5 636 342 5 614 094
Interest in associates and joint ventures 167 214 192 164
Unlisted investment - 6
Land and township development 48 529 51 341
Long-term receivables 83 745 89 717
Investments held by Northam Platinum Restoration Trust Fund 102 233 93 647
Environmental Guarantee Investment 68 104 60 345
Buttonshope Conservancy Trust 11 126 10 445
Long-term prepayments 336 409 -
Other financial assets 7 591 -
Deferred tax assets - 144 332
Current asset 4 103 337 4 867 779
Inventories 1 729 102 1 330 270
Trade and other receivables 548 997 375 204
Cash and cash equivalents 1 786 865 3 105 080
Tax receivables 38 373 57 225
Non-current assets held for sale 49 222 -
Total assets 19 636 112 18 977 863
Audited Audited
12 months 12 months
ended ended
30 June 30 June
2017 2016
R000 R000
Equity and liabilities
Total equity 8 092 041 8 727 984
Stated capital 13 778 114 13 778 114
Treasury shares (6 556 123) ( 6 556 123)
(Accumulated loss)/retained earnings (4 398) 631 545
Equity settled share based payment reserve 874 448 874 448
Non-current liabilities 9 929 685 9 072 179
Deferred tax liability 585 883 590 637
Long-term provisions 304 829 272 820
Preference share liability 8 279 825 7 429 549
Long-term loans 249 428 275 513
Long-term share based payment liability 88 639 84 373
Domestic medium term notes 421 081 419 287
Current liabilities 1 614 386 1 177 700
Current portion of long-term loans 13 434 13 201
Short-term share based payment liability 75 026 56 704
Tax payable 102 550 104 072
Trade and other payables 1 268 172 877 935
Short-term provisions 155 204 125 788
Total equity and liabilities 19 636 112 18 977 863
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity settled Other
(Accumulated share based comprehensive
Stated loss)/retained payment income from
capital earnings reserve associate Total
R000 R000 R000 R000 R000
Balance as at 30 June 2015 7 221 991 1 139 808 874 448 (19 822) 9 216 425
Total comprehensive income for
the year - (508 263) - 19 822 (488 441)
Loss for the year - (508 263) - - (508 263)
Other comprehensive income for
the year - - - 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 year - (635 943) - - (635 943)
Balance as at 30 June 2017 7 221 991 (4 398) 874 448 - 8 092 041
CONSOLIDATED STATEMENT OF CASH FLOWS
Audited Audited
12 months 12 months
ended ended
30 June 30 June
2017 2016
R000 R000
Cash flows from operating activities 981 497 839 081
Loss before taxation (423 922) (271 369)
Adjusted for the following non-cash items as well as discloseable items
Depreciation and write-offs 452 584 403 545
Changes in provisions 19 934 50 221
Changes in long-term receivables 5 972 4 786
Investment revenue (167 306) (265 258)
Finance charges excluding preference share dividends 71 185 39 634
Finance charges on preference shares 1 017 396 918 806
Loss on derecognition of preference share liability 901 -
Liquidity fees on the preference shares 16 390 18 088
Movement in share based payment liability 22 588 10 592
Reversal of impairment of investment in associates - (13 610)
IFRS 5 adjustment to fair value less costs to sell 841 -
Share of (earnings)/losses from associate (4 870) 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 (1 762) (57)
Net foreign exchange movement 46 729 -
Other (1 521) 1 395
Change in working capital (182 388) (162 131)
Movement relating to land and township development 2 812 (41 341)
Transaction fees paid (8 594) -
Investment revenue 167 306 265 258
Taxation paid (52 778) (175 355)
Audited Audited
12 months 12 months
ended ended
30 June 30 June
2017 2016
R000 R000
Cash flows utilised in investing activities (1 990 754) (1 126 793)
Property, plant, equipment, mining properties and mineral reserves
Additions to maintain operations (299 051) (369 636)
Additions to expand operations (1 321 757) (804 344)
Disposal proceeds 3 732 4 235
Increase in long-term prepayment (336 409) -
Investment in associate - cash distributed - 24
Additional investment made in associate (20 243) (20 601)
Proceeds received on the sale of investment in Trans Hex Group Limited - 81 815
Increase in investment held by the Northam Platinum Restoration Trust Fund (8 586) (10 655)
Increase in the investments held by the Environmental Guarantee investment (7 759) (8 223)
Increase in investments held by the Buttonshope Conservancy Trust Fund (681) 592
Cash flows utilised from financing activities (250 130) (745 397)
Interest paid (29 694) (39 634)
Repayment of long-term loans (50 756) -
Issue of long-term loans 38 992 244 950
Acquisition of Zambezi Platinum (RF) Limited preference shares (208 672) -
Issue of domestic medium term debt notes - 419 287
Domestic medium term debt notes repaid - (1 370 000)
Decrease in cash and cash equivalent (1 259 387) (1 033 109)
Net foreign exchange difference on cash and cash equivalents (58 828) -
Cash and cash equivalents at the beginning of the year 3 105 080 4 138 189
Cash and cash equivalents at the end of the year 1 786 865 3 105 080
NOTES TO THE SUMMARISED ABRIDGED
FINANCIAL RESULTS
ACCOUNTING POLICIES AND THE BASIS OF PREPARATION
These abridged 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 the audited financial statements, available on the group's website, for the year ended 30 June 2017. These abridged 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 year as more fully set out below.
The abridged 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 disclosures 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 abridged financial results statements are presented,
as well as additional disclosures in the annual financial statements. They did not impact any amounts recognised in the consolidated
statement of comprehensive income or consolidated statement of financial position.
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.
EVENTS AFTER THE REPORTING PERIOD
Subsequent to year-end, an agreement was entered into to purchase a suite of PGM recycling equipment and the associated premises
from A-1 Specialized Services Inc., a recycler of PGMs. The business is located in the state of Pennsylvania, United States of America.
The total value of the transaction amounts to USD10.7 million in cash.
In addition to the above, the Section 102 Ministerial Consent relating to the approval for the purchase of the Tumela block mineral
resources from Anglo American Platinum Limited for R1.0 billion was obtained.
Apart from these transactions, there have been no other events subsequent to the year-end, which require additional disclosure or
adjustment to these abridged financial results.
FINANCIAL, OPERATING AND PRODUCTION STATISTICS
12 months 12 months
ended ended
NORMALISED HEADLINE EARNINGS PER SHARE (HEADLINE EARNINGS 30 June 30 June
ADJUSTED FOR THE IMPACT OF THE BEE TRANSACTION) 2017 2016
R000 R000
Headline loss (636 371) (492 837)
Add back:
Amortisation of liquidity fees paid on preference shares 16 390 18 088
Non-cash preference share dividends 1 017 396 918 806
Loss on derecognition of preference share liability 901 -
Normalised headline earnings 398 316 444 057
Normalised headline earnings per share (cents) 78.1 87.1
Number of shares in issue including treasury shares 509 781 212 509 781 212
VALUE CREATED AND DISTRIBUTED
Value created and distributed to employees
Salaries and wages 1 608 649 1 583 260
Contributions to retirement benefit funds 128 675 123 964
Contributions to healthcare funds 73 112 68 831
Share based payment settlements 73 495 56 222
Total value created and distributed to employees 1 883 931 1 832 277
Value created and distributed to government
Mining and non-mining tax 70 108 140 825
Mining royalties 45 041 44 283
Pay as you earn deducted from employees 315 077 294 043
Total value created and distributed to tax authorities 430 226 479 151
Total value created and distributed 2 314 157 2 311 428
MARKET INFORMATION AND SHARE STATISTICS
Total number of shares in issue 509 781 212 509 781 212
Weighted average number of shares in issue 349 875 759 349 875 759
Treasury shares held 159 905 453 159 905 453
Market capitalisation 20 620 650 21 920 592
Closing share price (in cents) 4 045 4 300
COMMENTARY ON RESULTS
- Execution of group strategy - both organic and acquisition driven growth
- Group sales revenues increased 12.6% to a record R6.9 billion
- Group operating profit up 60.2% to R614.0 million
- Group unit cash costs - cash cost per equivalent refined platinum oz well
contained at R19 736/oz
- Group cash profit per equivalent refined platinum oz up 44.0% to R5 314/oz
- Improved Booysendal operational performance - metal in concentrate production
increased 23.6% to 199 330 oz
- Group capital expenditure rose 40.1% to R1.6 billion. In addition
R336.4 million spent to date on the Booysendal aerial ropeway conveyor system
- Positive cash balance of R1.8 billion at year end
- Non-cash preference share dividend charge increase from R918.8 million to
R1.0 billion
- Normalised headline earnings of R398.3 million
INTRODUCTION
The Northam group's equivalent refined metal production from own operations increased 8.5% to 474 007oz (F2016: 436 960oz) (4E)
during the reporting period. This was due to a commendable operational performance at both Booysendal North and Zondereinde.
Booysendal North recorded a 23.6% increase in production, while Zondereinde's year-end output was only marginally lower year on
year, as it largely overcame the effects of a workforce reorganisation and an 18-day outage of the UG2 milling circuit during the first
half of the financial year.
Capital expenditure increased 40.1% as the group continued with the development of its expansion projects at both Booysendal and
Zondereinde mines. These include the development of Booysendal South, deepening projects at both mines as well as an additional
new furnace and dryer at the Zondereinde smelter complex. A total of R1.6 billion has been spent (F2016: R1.2 billion).
The group continues to execute its expansion strategy of growing production down the cost curve, both organically and through
acquisitions. In line with our external growth ambitions, we have acquired the Tumela block's mineral resources from Anglo American
Platinum Limited for R1.0 billion and are in the process of acquiring the Eland Platinum mine from Glencore Operations South Africa
Proprietary Limited for R175.0 million. The cash payment of these amounts will be made once all conditions precedent have been met.
Subsequent to year-end, the group acquired PGM recycling assets in Pennsylvania, United States, from A-1 Specialized Services Inc.
for USD10.7 million.
FINANCIAL OVERVIEW
Statement of profit or loss and other comprehensive income
Group sales revenue rose 12.6% to R6.9 billion (F2016: R6.1 billion) on the back of higher US dollar PGM and base metal prices. The
average PGM basket price increased by 8.3% to USD900/oz (F2016 USD831/oz).This translated to total revenue per platinum oz sold
increasing by 11.0% to R25 050 (F2016: R22 566). However, the stronger average exchange rate of R13.63/USD (F2016: R14.33/USD)
tempered the increase in the total revenue.
Sales volumes increased marginally to 453 581oz (F2016: 452 393oz) reflecting the current metallurgical processing capacity
constraints of the group.
Cost of sales increased 9.4% to R6.3 billion (F2016: R5.7 billion) following a 13.4% rise in operating costs to R5.7 billion
(F2016: R5.0 billion). The increase in operating costs is mainly the result of higher on-mine operational costs, which were up 13.7%,
reflecting production volume increases at Booysendal as well as labour and power increases. The value of purchased concentrate from
third parties rose 15.3% to R404.1 million (F2016: R350.5 million) reflecting the 12.1% growth in volumes delivered. The 12.2% increase
in the depreciation charge is attributable to the higher volumes of production as the charge is calculated on the units of production
method and the higher values of property, plant and equipment in line with increasing group capital expenditure.
The change in metal inventory value of R402.1 million (F2016: R180.8 million), reflects the increase in inventories owing to the group's
current constrained metallurgical capacity. Group unit cash costs per equivalent refined platinum oz were well contained, increasing
4.6% to R19 736 (F2016: R18 877), with the group cash profit per equivalent refined platinum oz increasing 44.0% to R5 314
(F2016: R3 689).
With the increased capital expenditure in support of our production growth strategy, cash balances were lower, thereby impacting
revenues from investment which fell 36.9% to R167.3 million (F2016: R265.3 million). Sundry income is down 52.6% at R73.4 million
(F2016: R154.8 million) mainly due to the once off receipt from a cancelled insurance contingency policy and a related insurance refund
in the comparative period.
Included in finance costs, which are up 79.6% to R71.2 million, is the unwinding of the rehabilitation liability charge of R41.5 million.
The interest charges of R51.8 million (F2016: R28.3 million) associated with the two domestic medium-term notes of R175.0 million
and R250.0 million have been fully capitalised in the current period.
Sundry expenditure is up 42.0%, due to the higher care and maintenance costs, which now also include Eland mine, and higher
corporate action costs reflecting the increased corporate activity of the group.
Operating profit increased 60.2% to R614.0 million (F2016: R383.3 million). The group's operating profit percentage improved to 8.9%
(F2016: 6.3%) reflecting higher PGM prices, strong cost control and economies of scale as group production increases.
The 10.7% increase in the cumulative non-cash preference share dividend to R1.0 billion, net of capitalised interest of R24.3 million, is
due to the compounding nature of the preference share liability, and is the main reason for the group's net loss.
Cash flows
Cash flows from operating activities increased to R981.5 million (F2016: R839.1 million) largely as a function of lower tax paid and the
higher working capital requirements which reflect unusually high levels of inventory. The high inventory levels should normalise soon
after the new furnace is commissioned at the beginning of H2 F2018.
The R2.0 billion (F2016: R1.1 billion) of cash utilised in investing activities, which includes a prepayment of R336.4 million (F2016:
RNil), is higher than in the comparative period, reflecting the group's growing capital expenditure programme. With the prepayment,
we have secured cheaper financing from the offshore supplier of the aerial rope conveyor for Booysendal South. The major project
spend is on the 20MW furnace at Zondereinde and the Booysendal South mine development.
Cash flows utilised from financing activities are lower at R250.1 million (F2016: R745.4 million) as there were no fund raising activities
in F2017 compared to the previous period. In F2016 the R1.4 billion domestic medium term note was repaid whilst in the current period
Northam acquired Zambezi Platinum (RF) Limited preference shares to the value of R208.7 million (F2016: RNil).
OPERATIONS
Zondereinde
Management regrets the loss of life, during the F2017 reporting period, of Mr Alexandre Macave. Mr 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 his family and colleagues.
Management and employees are however commended for achieving the six million fatality-free shifts milestone in November 2016.
The lost time injury incident rate (LTIIR) improved to 1.65 injuries per 200 000 hours worked (F2016: 1.92).
Despite the disruptions to production resulting from measures taken to reorganise the workforce, after the discharge of 357 employees,
as well as an 18-day outage of the UG2 milling circuit owing to a mill bearing failure, Zondereinde's equivalent metal production from
own operations was down by only 0.9%, to 280 172oz (F2016: 282 765oz). This is a commendable performance by both management
and employees, who took the necessary measures to meet production targets despite the above mentioned challenges.
Merensky ore remains constrained currently but the Merensky:UG2 ore mix will gradually be modified back to a 55:45 ratio. This should
happen within 24 months of the section 102 approval for the transfer of the recently-acquired Tumela block from Anglo Platinum to
Northam, resulting in the immediate access to new Merensky ore.
Equivalent refined metal processed from third parties was up 12.1% to 30 953oz (F2016: 27 618oz) due to improved availability from
third parties.
The total operating costs at Zondereinde were R3.7 billion (F2016: R3.5 billion), an increase of 7.3%. The increase in the unit cash
cost equivalent per refined platinum oz was contained to 7.6% from R19 409 to R20 890, a notable achievement given the production
challenges outlined above.
Expansionary capital expenditure for the period of R619.2 million (F2016: R294.3 million), combined with sustaining capital expenditure
of R187.2 million (F2016: R259.8 million), resulted in total capital spend of R806.4 million (F2016: R554.1 million). The F2018
expansionary and sustaining capital expenditure is estimated at R325.7 million and R198.6 million respectively.
Zondereinde's current resource estimate is 84.0 million oz (Moz) (F2016: 84.1Moz) excluding the recently purchased Tumela block
which is expected to increase the mine's resource base by an additional 16.7Moz on the section 102 transfer.
Booysendal
Booysendal North mine recorded three million fatality free shifts. The lost time injury incident rate (LTIIR) improved to 0.30
(F2016: 0.44) per 200 000 hours worked. The mechanised mining method continues to be a significant safety differentiator.
Production from the UG2 mine increased 12.2% to 2 326 460 tonnes (F2016: 2 072 958 tonnes) milled at a head grade of 2.8g/t
(F2016: 2.7g/t). The Merensky North mine produced 161 134 tonnes (F2016: 92 645 tonnes) during the year at a head grade of 2.0g/t
(F2016: 1.9g/t).
The total operating costs at Booysendal North increased by 27.5% from R1.5 billion to R2.0 billion. The higher costs are largely
attributable to the higher production volumes from underground. Metal in concentrate produced, plus ore stockpiles increased by 23.6%
to 199 330oz (F2016: 161 300oz).
On a unit basis, the cash cost equivalent per refined platinum oz achieved was R15 747 (F2016: R15 297) representing a 2.9% increase.
Capital expenditure incurred amounted to R773.8 million (F2016: R616.4 million). The key elements of this spend were R120.8 million
spent on the UG2 deepening project, R325.6 million on the Booysendal South project, R202.3 million on the Merensky North decline
and R111.9 million on sustaining capital expenditure.
Management estimates that expansionary and sustaining capital expenditure will amount to R1.2 billion and R108.9 million respectively
in F2018, a total capital spend of R1.3 billion.
MINERAL RESOURCES AND RESERVES
Key points and significant revisions from the previous year
The UG2 and Merensky reserves within the Booysendal North and South mines increased following amendments to the underground
pillar design.
During the 2017 financial year, Northam entered into agreements with Rustenburg Platinum Mines Limited and Glencore Operations
South Africa Proprietary Limited regarding the purchase of a portion of the Amandelbult mine and the Eland mine respectively. These
purchases are still subject to regulatory approval and therefore are not yet finalised. Consequently no formal resource or reserve
estimates for these properties have been included in this statement. Indicative estimates of resource content within these properties
were summarised in Northam's interim results presentation for the period ending 31 December 2016. This presentation is available on
the company's website.
In addition, Northam has entered into an agreement to dispose of its participatory interest in the Pandora joint venture with Lonmin's
Eastern Platinum Proprietary Limited. This transaction is subject to regulatory approval before finalisation, hence the resource and
reserve estimates for this property will be removed from this statement, once all conditions precedent have been met.
Mineral resources are reported inclusive of mineral reserves.
The tables on the following pages summarise the mineral resources and reserves attributable to Northam for both the current and the
previous year.
Northam group reserves estimate (combined proven and probable)
as at 30 June 2017 As at 30 June 2016
4E 4E
Reef Mine Mt g/t Moz Mt g/t Moz
Merensky Booysendal North mine 19.34 2.87 1.78 14.51 2.92 1.36
Booysendal South mine 9.84 2.58 0.82 9.36 2.58 0.78
Dwaalkop* 0.00 0.00 0.00 0.00 0.00 0.00
Pandora* 0.00 0.00 0.00 0.00 0.00 0.00
Zondereinde 21.86 5.53 3.89 21.01 5.51 3.72
Total 51.04 3.95 6.49 44.88 4.06 5.86
UG2 Booysendal North mine 43.84 3.00 4.23 41.53 3.00 4.00
Booysendal South mine 77.57 2.64 6.58 75.86 2.65 6.48
Dwaalkop* 0.00 0.00 0.00 0.00 0.00 0.00
Pandora* 1.12 4.20 0.15 1.21 4.10 0.16
Zondereinde 56.84 4.14 7.56 58.64 4.24 7.99
Total 179.37 3.21 18.52 177.24 3.27 18.63
Combined Booysendal North mine 63.18 2.96 6.01 56.04 2.98 5.36
Booysendal South mine 87.41 2.63 7.40 85.22 2.65 7.26
Dwaalkop* 0.00 0.00 0.00 0.00 0.00 0.00
Pandora* 1.12 4.20 0.15 1.21 4.10 0.16
Zondereinde 78.70 4.53 11.45 79.65 4.58 11.71
Total 230.41 3.38 25.01 222.12 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.
Northam group resources estimate (combined measured, indicated and inferred)
as at 30 June 2017 As at 30 June 2016
4E 4E
Reef Mine Mt g/t Moz Mt g/t Moz
Merensky Booysendal North 86.12 5.06 14.00 87.82 5.06 14.29
Booysendal South 187.55 3.55 21.41 187.55 3.55 21.41
Booysendal North mine 22.12 3.17 2.25 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
Pandora* 0.00 0.00 0.00 0.00 0.00 0.00
Zondereinde 165.27 7.38 39.20 164.44 7.38 39.00
Total 511.09 4.96 81.57 506.81 4.98 81.17
UG2 Booysendal North 152.65 4.86 23.87 152.65 4.86 23.87
Booysendal South 235.66 3.20 24.26 235.67 3.20 24.26
Booysendal North mine 40.26 4.46 5.77 41.41 4.52 6.02
Booysendal South mine 129.07 3.05 12.65 126.76 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 275.20 5.06 44.78 276.41 5.08 45.14
Total 884.58 4.17 118.70 884.60 4.19 119.16
Combined Booysendal North 238.77 4.93 37.87 240.47 4.94 38.16
Booysendal South 423.22 3.36 45.67 423.22 3.36 45.67
Booysendal North mine 62.38 4.00 8.02 58.38 4.15 7.78
Booysendal South mine 141.05 3.02 13.72 138.74 3.04 13.58
Dwaalkop* 75.61 3.66 8.89 75.61 3.66 8.89
Pandora* 14.18 4.65 2.12 14.14 4.65 2.11
Zondereinde 440.47 5.93 83.98 440.85 5.94 84.14
Total 1 395.68 4.46 200.27 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.
CHANGES TO THE BOARD OF DIRECTORS
Mr JG (John) Smithies was appointed as an independent non-executive director on 1 January 2017.
Mr AR (Alwyn) Martin retired from the board at the conclusion of the annual general meeting on 9 November 2016.
Ms HH (Hester) Hickey replaced Mr Martin as chairman of the audit and risk committee on 9 November 2016.
GOING CONCERN AND PROSPECTS
Mining operations have a finite life and are also 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 USD 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. Management is focused on cost control and moving the operations down the cost curve in order
to remain profitable.
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.
DIVIDENDS
Given the continuing difficult conditions in the mining industry, and taking into consideration the cash requirements to fund the
development of the group's project pipeline and growth strategy, the board has resolved not to declare a final dividend for the 2017
financial year (30 June 2016: RNil cents per share).
On behalf of the board
PL Zim PA Dunne
Chairman Chief executive
Johannesburg
22 August 2017
Directors
PL Zim (non-executive chairman), R Havenstein (lead independent director), PA Dunne (chief executive officer)*, AZ Khumalo (chief financial officer),
CK Chabedi, HH Hickey, TE Kgosi, KB Mosehla, TI Mvusi and JG Smithies*
* 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
Company secretary
Ms 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, 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 summarised abridged financial results for the year ended 30 June 2017 booklet, which is available on the Northam website at
http://www.northam.co.za/downloads/send/94-fy2017/1115-northam-platinum-limited-summarised-abridged-financial-results-for-the-year-ended-30-june-2017
and at Northam’s registered office.
Johannesburg
25 August 2017
Sponsor and debt sponsor
One Capital
Date: 25/08/2017 07:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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