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NORTHAM PLATINUM LIMITED - Abridged audited group annual results for the year ended 30 June 2019 and notice of annual general meeting

Release Date: 23/08/2019 07:05
Code(s): NHM NHM002 NHM010 NHM011 NHM012 NHM006 NHM007 NHM008 NHM009     PDF:  
 
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Abridged audited group annual results for the year ended 30 June 2019 and notice of annual general meeting

NORTHAM PLATINUM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1977/003282/06)
Share code: NHM ISIN: ZAE000030912
Debt issuer code: NHMI
("Northam" or the "company" or the "group")

Bond code: NHM002       Bond ISIN: ZAG000129024
Bond code: NHM006       Bond ISIN: ZAG000158577
Bond code: NHM007       Bond ISIN: ZAG000158593
Bond code: NHM008       Bond ISIN: ZAG000158858
Bond code: NHM009       Bond ISIN: ZAG000158866
Bond code: NHM010       Bond ISIN: ZAG000159229
Bond code: NHM011       Bond ISIN: ZAG000159237
Bond code: NHM012       Bond ISIN: ZAG000160136


ABRIDGED AUDITED GROUP ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2019 
AND NOTICE OF ANNUAL GENERAL MEETING

Key features:

-   Record operating profit of R2.4 billion
-   Record production from own operations of 519 954 oz 4E
-   Normalised headline earnings of 270.1 cents per share, up 226.6%
-   Execution of growth strategy remains firmly in place, with R2.6 billion spent on its execution 
    during the period under review
-   Net debt of R3 billion
-   Commendable safety performance LTIIR of 0.93

Financial results

Northam achieved a record operating profit of R2.4 billion for the financial year ended 30 June 2019 
(F2018: R823.3 million), representing a 192.7% increase from the previous corresponding period, underpinned 
by a solid operating performance at both operations, well contained unit cash costs and a higher basket 
price received. This translates to an operating profit margin of 22.6% (F2018: 10.9%).

The group achieved a record production from own operations amounting to 519 954 oz 4E (F2018: 483 941 oz 4E), 
representing a 7.4% increase from the previous corresponding period, with increased contributions from
both Booysendal and Zondereinde. Group chrome concentrate production increased by 17.6% to 764 528 tonnes
on the back of growth at Booysendal and Zondereinde, as well as first production from Eland 
(F2018: 650 091 tonnes).

The total comprehensive income for the period was R71.4 million (F2018: loss of R705.4 million). Included in
the income for the period is the impact of the black economic empowerment ("BEE") transaction relating to the
Zambezi Platinum (RF) Limited preference shares, which are consolidated into the group results and accrued a
cumulative variable dividend (accrued dividends) amounting to R1.3 billion (F2018: R1.1 billion). This negatively
impacted the consolidated group results for the period under review. Shareholders are reminded that this is a
non-cash item.

Normalised headline earnings per share for the period were 226.6% higher at 270.1 cents (F2018: 82.7 cents)
per share. Normalised headline earnings, which is Northam's main measure of performance, has been calculated
taking into account the headline earnings/loss per share adjusted for non-cash items relating to the BEE
transaction. These include the preference share dividends associated with the BEE transaction, as detailed above.

Total group capital expenditure reduced year on year to R2.9 billion as major project milestones were completed.
R2.6 billion was spent on expansionary capex and R221.8 million on sustaining capex.

Despite the difficult economic circumstances prevailing during the period under review, both of Northam's mining
operations posted an operating profit. Zondereinde achieved an operating profit of R1.3 billion (F2018: R355.4 million) 
and Booysendal achieved an operating profit of R985.7 million (F2018: R525.4 million).

The group continues to deliver on its strategy of developing low-cost, long-life assets in order to position itself at
the lower end of the industry cost curve.

Highlights
                                                                      30 June 2019       30 June 2018      Variance
                                                                                                                  %
 Sales revenue                                                       R10.6 billion       R7.6 billion          41.0
 Operating profit                                                     R2.4 billion     R823.3 million         192.7
 Operating profit margin                                                     22.6%              10.9%         107.3
 Normalised headline earnings                                         R1.4 billion     R421.5 million         226.7
 Earnings/(loss) per share                                              17.2 cents      (201.5 cents)             
 Headline earnings/(loss) per share                                     15.8 cents      (200.5 cents)             
 Normalised headline earnings per share                                270.1 cents         82.7 cents         226.6
 EBITDA                                                               R2.6 billion       R1.1 billion         138.2
 EBITDA margin                                                               24.8%              14.7%          68.7
 Cash generated from operating activities                             R2.7 billion       R1.1 billion         140.7
 Capital expenditure                                                  R2.9 billion       R3.8 billion        (24.3)

Dividends

Given the company's current capital structure, project commitments and economic operating environment, the
Northam board of directors (the "board") are of the view that the most efficient way to return value to investors
precludes the payment of a cash dividend. The board has therefore resolved not to declare a dividend for the
financial year ended 30 June 2019 (F2018: R Nil).

NOTICE OF ANNUAL GENERAL MEETING

The annual general meeting ("AGM") of Northam shareholders ("shareholders") will be held at Northam, Building 4, 
1st Floor, Maxwell Office Park, Magwa Crescent West, Waterfall City, Jukskei View, Midrand, South Africa on
Thursday, 7 November 2019 at 12:00 to transact the business as stated in the notice of AGM and abridged
annual report 2019 ("notice and abridged annual report 2019").

Shareholders are advised that the notice and abridged annual report 2019, containing the condensed audited
financial statements for the year ended 30 June 2019, will be distributed to all shareholders by no later than
Friday, 30 August 2019.

The annual integrated report 2019, the complete consolidated audited annual financial statements which
incorporates the external auditors' report in which Ernst & Young Inc. expressed an unmodified audit opinion and
the notice and abridged annual report 2019 are available on the following link:

https://www.northam.co.za/investors-and-media/publications/annual-reports or can be obtained from the
company's registered office on request.

The salient dates for the AGM are as follows:
                                                                                                             2019
Record date to determine which shareholders are entitled to receive the notice                  
and abridged annual report 2019                                                                 Friday, 23 August
Distribution of the notice and abridged annual report 2019                                      Friday, 30 August
Last day to trade in order to be eligible to attend and vote at the AGM                       Tuesday, 22 October
Record date to determine which shareholders are entitled to attend and vote at the AGM         Friday, 25 October
Forms of proxy for the AGM to be lodged by 12:00 on                                        Wednesday, 6 November*
AGM to be held on                                                                            Thursday, 7 November
Results of AGM released on SENS on                                                           Thursday, 7 November

* Any forms of proxy not lodged by this date and time must be delivered to the chairperson of the AGM
  before the appointed proxy may exercise any rights of the shareholder at the AGM.

This short-form announcement is the responsibility of the directors and is only a summary of the information in
the full announcement and does not contain full or complete details.

Any investment decision should be based on the full results announcement accessible via the JSE link at
https://senspdf.jse.co.za/documents/2019/JSE/ISSE/NHM/AFS_2019.pdf and the full audited annual financial
statements available on our website at https://www.northam.co.za/investors-and-media/publications/annual-reports

The full results announcement and the full audited annual financial statements, incorporating the Ernst & Young Inc. 
auditors' report, are also available at our registered office and at the office of our sponsor for inspection, at
no charge, during office hours.


On behalf of the board at Johannesburg on 20 August 2019.

KB Mosehla                                            PA Dunne
Chairman                                              Chief executive

DIRECTORS

KB Mosehla                                          (non-executive chairman)
R Havenstein                                        (lead independent director)
PA Dunne *                                          (chief executive officer)
AH Coetzee                                          (chief financial officer
DH Brown                                            (independent non-executive director)
CK Chabedi                                          (independent non-executive director)
HH Hickey                                           (independent non-executive director)
NY Jekwa                                            (independent non-executive director)
MH Jonas                                            (independent non-executive director)
TE Kgosi                                            (independent non-executive director)
TI Mvusi                                            (independent non-executive director)
JJ Nel                                              (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

Telephone +27 11 759 6000
www.northam.co.za

Company secretary
PB Beale
Building 4, 1st Floor, 
Maxwell Office Park
Magwa Crescent West
Waterfall City
Jukskei View, 2090
South Africa

PO Box 412694
Craighall, 2024
South Africa

e-mail:trish.beale@norplats.co.za

Transfer secretaries
Computershare Investor Services Proprietary Limited
Rosebank Towers
15 Biermann Avenue
Rosebank, 2196
South Africa

PO Box 61051
Marshalltown, 2017
South Africa

Sponsor and debt sponsor
One Capital
17 Fricker Road
Illovo, 2196
Johannesburg
South Africa

PO Box 784573
Sandton, 2146
South Africa

Johannesburg
23 August 2019



Date: 23/08/2019 07:05:00
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