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Release Date: 10/02/2020 17:00
Wrap Text
Trading statement

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: 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
Bond code: NHM013       Bond ISIN: ZAG000162181
Bond code: NHM014       Bond ISIN: ZAG000163650
Bond code: NHM015       Bond ISIN: ZAG000164922
(“Northam” or the “group”)


In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies are required to publish
a trading statement as soon as they are satisfied, with a reasonable degree of certainty, that the financial
results for the current reporting period (H1 F2020) will differ by at least 20% from the financial results of
the previous corresponding period (H1 F2019).

Northam expects to achieve a record operating profit for the six months ended 31 December 2019,
underpinned by a solid operating performance at all operations and a higher basket price received. The
group achieved a record production from own operations amounting to 306 738 4E oz, representing a
19.6% increase from H1 F2019. Sales volumes increased by 11.9% to 329 760 4E oz.

Financial highlights
                                                                  H1 F2020                         H1 F2019
Revenue                                                R7.7 – R7.9 billion                     R5.0 billion
Operating profit                                       R2.9 – R3.1 billion                     R1.0 billion
Basic earnings/(loss) per share                      326.18 – 329.82 cents                     (18.2) cents
Headline earnings/(loss) per share                   326.40 – 330.20 cents                     (19.0) cents
Number of shares in issue                                      509 781 212                      509 781 212
Weighted average number of shares*                             349 875 759                      349 875 759

* Used to determine the basic and headline earnings per share, calculated as 509 781 212 shares in issue less
159 905 453 shares held by Zambezi Platinum (RF) Limited (Zambezi). Zambezi is Northam’s major empowerment
shareholder and Zambezi’s financial results are consolidated into the group’s financial results.

The group expects normalised headline earnings (defined as the group’s headline earnings adjusted for
the impact of Northam’s black economic empowerment transaction), which constitutes the group’s main
measure of performance, to be in excess of R1.8 billion (H1 F2019: R553.3 million), representing an
increase in excess of 240% from H1 F2019.

During the period under review, Northam returned value to shareholders by acquiring 32.5 million
Zambezi preference shares (representing 20.3% of all Zambezi preference shares in issue) for
R2.4 billion. Northam now holds 22.9% of all Zambezi preference shares in issue, whilst maintaining a net
debt to EBITDA ratio of 1 to 1.

The financial information contained in this announcement has not been reviewed or reported on by
Northam’s auditors. The condensed reviewed interim results for the six months ended 31 December 2019
are expected to be published on or about 28 February 2020.

10 February 2020

Sponsor and Debt Sponsor
One Capital

Date: 10-02-2020 05:00:00
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