NORTHAM PLATINUM LIMITED - Northam increases its Zambezi preference share holding to approximately 70% by acquiring R3.5bn of Zambezi prefs

Northam increases its Zambezi preference share holding to approximately 70% by acquiring R3.5bn of Zambezi prefs

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: NHM006   Bond ISIN: ZAG000158577
Bond code: NHM007   Bond ISIN: ZAG000158593
Bond code: NHM009   Bond ISIN: ZAG000158866
Bond code: NHM011   Bond ISIN: ZAG000159237
Bond code: NHM012   Bond ISIN: ZAG000160136
Bond code: NHM014   Bond ISIN: ZAG000163650
Bond code: NHM015   Bond ISIN: ZAG000164922
Bond code: NHM016   Bond ISIN: ZAG000167750
Bond code: NHM017   Bond ISIN: ZAG000167891
Bond code: NHM018   Bond ISIN: ZAG000168097
Bond code: NHM019   Bond ISIN: ZAG000168105
(“Northam” or the “Company”)


NORTHAM INCREASES ITS ZAMBEZI PREFERENCE SHARE HOLDING TO APPROXIMATELY 70% BY ACQUIRING 
R3.5 BILLION OF ZAMBEZI PREFERENCE SHARES


Northam shareholders are referred to the announcement dated 18 August 2020 (“previous announcement”)
pertaining to the acquisition by Northam of preference shares in Zambezi Platinum (RF) Limited (“Zambezi”)
(“Zambezi preference shares”).

Northam is pleased to announce that, since the date of the previous announcement, it has acquired an
additional 37 179 697 Zambezi preference shares for a total cash consideration of approximately R3.5 billion
(“ZPLP acquisitions”). Following the ZPLP acquisitions, Northam holds 111 909 248 Zambezi preference
shares (“Northam owned prefs”), representing approximately 70% of all Zambezi preference shares in issue.

The face value of the Northam owned prefs as at 15 October 2020, calculated as the initial issue price of the
Zambezi preference shares plus accumulated preference share dividends, amounts to approximately
R9.1 billion.

As stated in the previous announcement, Northam’s acquisition of Zambezi preference shares will reduce the
preference share dividend expense and liability included in Northam’s consolidated financial statements, as well
as Northam’s potential financial exposure under the guarantee it provided to holders of Zambezi preference
shares, should the guarantee be called upon. Furthermore, should Zambezi elect to redeem the Zambezi
preference shares through a distribution of ordinary shares in Northam (“Northam shares”) held by Zambezi,
then the redemption of the Zambezi preference shares held by Northam, at such time, will result in a distribution
of Northam shares to Northam, thereby reducing the number of Northam shares in issue.

The ZPLP acquisitions have been fully funded through Northam’s internal cash resources.

The ZPLP acquisitions are not categorised transactions in terms of the JSE Limited Listings Requirements and
information relating thereto is provided for information purposes only.

Paul Dunne, Northam’s Chief Executive Officer said “Northam has continued to return significant value to
shareholders by accelerating the purchase of Zambezi preference shares to the current 70% holding. This
strategy will positively impact future earnings and earnings per share and will add to the success of our
empowerment transaction. Furthermore, Northam no longer considers the back-up guarantee provided in favour
of the Zambezi preference shareholders to be a dilution risk to Northam ordinary shareholders and this is a
significant milestone for the Company. Our mines and operations have proved to be resilient following the COVID-
19 induced national lockdown and the commitment demonstrated by the Northam employees in restoring
operations to normality has been outstanding.”


Johannesburg
15 October 2020

Corporate Advisor, JSE Sponsor and Debt Sponsor to Northam
One Capital

Attorneys to Northam
Cliffe Dekker Hofmeyr Inc.

Date: 15-10-2020 09:55:00
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