Announcements 2011

Production stoppages hit Northam results

Northam Platinum Limited today issued its results for the year ended 30 June 2011.


Northam Platinum Limited (Northam) today issued its results for the year ended 30 June 2011.

Key features for the year under review:

Financial results:

  • 12.4% higher rand basket price at R323 899/kg
  • Decline of 19.8% in metal sales to 9 872kg (317 392oz)
  • Sales revenues 9.5% lower at R3.6 billion
  • Earnings down 46% year on year at 96.2cps
  • Modest dividend of 10cps declared

Zondereinde:

  • Disappointing operational performance
  • Strike and safety-related stoppages impact production
  • Merensky ore reserve constraints persist

Booysendal:

  • construction and development on track
  • Mining right and water use licence obtained
  • Progress in funding arrangements

Presenting the group’s results chief executive Glyn Lewis said today that the six-week strike at the Zondereinde division in H1 had had a major negative impact on results for the year, which were further compounded by safety-related stoppages continuing into the second half of the year, exacerbating the already compromised production position. “Furthermore, given the lower production, we were unable to take advantage of the slightly stronger rand basket price received over the year of R323 899/kg (F2010:R288 255/kg).”

Year-on-year total operating costs were 1.3% higher at R2.26 billion, although the unit cost increases were higher, skewed by the significant drop in volumes. Costs continue to be driven by mining input costs, primarily labour and power, increasing above the rate of inflation. The net result was lower operating profit at R385.3 million.

Earnings per share were 45.9% lower at 96.2cps. This takes into account a 6.0% increase in the number of issued shares to 382 416 190 shares during the year.

Zondereinde division

At Zondereinde 65 out of a total of 301 working days were lost to strike action and safety-related incidents. This, along with the constraints on the Merensky reef horizon contributed to the decline in tonnages, from 2 038 225 tonnes in F2010 to 1 590 845 tonnes in the year under review. The lower head grades further exacerbated the situation, leaving metal in concentrate production at 22.2% lower year on year at 7 779kg (250 110oz).

The key to recovery at Zondereinde lies in the availability of Merensky reef, the lack of which is likely to persist for the next 18 months until the additional stoping areas and the decline section come on stream.

Booysendal division

“Good progress has been made with reducing project risk at Booysendal following on the regulatory approvals obtained for the mine, notably a new order mining right, and a water use licence, enabling us now to fast-track the construction and development.”

Management is in the process of securing additional funding to supplement the company’s internal financial resources for the development of the Booysendal mine, which remains on track for first production in early 2013.

Distributed by Russell & Associates
Tel +27 11 880 3924

Trading statement

In terms of the JSE Limited Listings Requirements, companies are required to publish a trading statement as soon as they are reasonably certain that the financial results for the current reporting period will differ by more than 20% from those of the previous corresponding period.


In terms of the JSE Limited Listings Requirements, companies are required to publish a trading statement as soon as they are reasonably certain that the financial results for the current reporting period will differ by more than 20% from those of the previous corresponding period.

Shareholders are advised that both the group’s earnings per share and headline earnings per share for the year ended 30 June 2011 are estimated to be between 80 and 110 cents. This compares with earnings per share of 177.9 cents and headline earnings per share of 177.8 cents reported for the previous comparable period ended 30 June 2010.

The anticipated decline in the group’s earnings per share is a result of both lower PGM sales volumes, due mainly to the six-week strike in the first half of the financial year, and to a lesser extent reflects the marginal increase in the weighted average number of issued shares. The lower sales volumes, approximately 19.8% down on the comparable period, resulted in lower total revenues for the group despite a higher average Rand basket price.

The weighted average number of shares in issue at 30 June 2011 was 363 087 830, compared with 360 291 885 at 30 June 2010.

The preliminary results for the year ended 30 June 2011 will be released on or about 18 August 2011.

The information contained in this announcement has not been reviewed or reported on by the company’s auditors.

Johannesburg
5 August 2011

Sponsor:
One Capital

Northam seeks to engage NUM on discipline dispute

Northam Platinum Limited today sent a written appeal to the National Union of Mineworkers (NUM) to engage in discussions regarding deployment of key employees during days of mourning.

Northam seeks to engage NUM on discipline dispute (PDF - 46KB)


Northam Platinum Limited (Northam) today sent a written appeal to the National Union of Mineworkers (NUM) to engage in discussions regarding deployment of key employees during days of mourning.

Northam seeks to engage NUM on discipline dispute (PDF - 46KB)

Notice of general meeting

Notice is hereby given that a general meeting of shareholders of Northam will be held in the Auditorium, hackle Brooke, Corner of Jan Smuts Avenue and Conrad drive, Craighall, Johannesburg on Thursday, 18 August at 09:30.

Notice of general meeting (PDF - 75KB)


Notice is hereby given that a general meeting of shareholders of Northam will be held in the Auditorium, hackle Brooke, Corner of Jan Smuts Avenue and Conrad drive, Craighall, Johannesburg on Thursday, 18 August at 09:30.

Notice of general meeting (PDF - 75KB)

Operations resume at Northam’s Zondereinde Mine

The management of Northam advises that underground operations resumed this morning, Thursday 14 July 2011, at the company’s Zondereinde mine near Thabazimbi.


The management of Northam advises that underground operations resumed this morning, Thursday 14 July 2011, at the company’s Zondereinde mine near Thabazimbi.

This comes after the suspension of operations following the underground locomotive accident on 6 July 2011.

Management estimates production losses of approximately 7 000 ounces (3PGE+Au).

Johannesburg
14 July 2011

Sponsor
One Capital

Northam responds to NUM dispute

Johannesburg, 12 July 2011. The management of the Zondereinde division of Northam Platinum Limited (Northam) confirms that the National Union of Mineworkers (NUM) has declared a dispute with the company.


Johannesburg, 12 July 2011. The management of the Zondereinde division of Northam Platinum Limited (Northam) confirms that the National Union of Mineworkers (NUM) has declared a dispute with the company.

Management denies that it has refused to bargain with the NUM for those grades where it is representative and has the majority. Management invites the union to honour its agreement and to approach the negotiations without pre-conditions in the bargaining units where they have a majority.

In terms of the existing recognition agreement, which dates back to 2003, NUM requires representivity of 33 ?% in each bargaining unit in order to negotiate on its behalf. This threshold has not been reached in the two additional bargaining units NUM now claims to represent.

Zondereinde management regards this unilateral implementation of a change to the existing agreement between the parties as a fundamental breach of the entire agreement.

Issued by Russell & Associates:
Tel: 011 880 3924

Operations interrupted at Zondereinde

Johannesburg, 6 July 2011. The management of the Zondereinde division of Northam Platinum Limited (Northam) advises that underground mining operations have been interrupted at its platinum mine near Thabazimbi in the Limpopo province following the tragic death of an employee in an underground locomotive accident.


Johannesburg, 6 July 2011. The management of the Zondereinde division of Northam Platinum Limited (Northam) advises that underground mining operations have been interrupted at its platinum mine near Thabazimbi in the Limpopo province following the tragic death of an employee in an underground locomotive accident.

The name of the deceased is being withheld until his next of kin have been advised.

Northam Platinum launches ADR programme in the US with BNY Mellon

Northam Platinum Limited (Northam) is pleased to announce the launch of a sponsored level 1 American Depositary Receipt (ADR) programme in the United States of America.


JOHANNESBURG, Monday 13 June 2011 - Northam Platinum Limited (Northam) is pleased to announce the launch of a sponsored level 1 American Depositary Receipt (ADR) programme in the United States of America. One ADR represents one Northam ordinary share.

Northam has appointed The Bank of New York Mellon (BNY Mellon) as the Depositary Bank for this purpose. Glyn Lewis, Northam chief executive said today, "We are delighted to be able to provide our growing US shareholder base with a more visible profile through this programme. This is particularly pleasing in view of recent corporate developments, which have resulted in improved liquidity in the Northam stock, with the free float increasing to 64%."

This programme offers American investors the opportunity to buy Northam Platinum ADRs in dollars and receive dividend payments in dollars.

Note to editors:

Northam is the only integrated mid-tier South African PGM producer, and has control of its entire metal stream from mine to market. The company has a total resource base of some 110Moz (3PGE+Au) held through its wholly-owned Zondereinde platinum mine (which includes an onsite metallurgical complex and smelter) on the upper end of the western limb of the South African Bushveld Complex near the town of Thabazimbi, and the massive resource at the Booysendal platinum project, on the eastern limb. Northam also holds a 50% joint venture stake in the Dwaalkop project with Lonmin plc (Lonmin), along with a 7.5% stake in the Pandora joint venture with Anglo American Platinum Limited (Amplats), Lonmin and the Bapo ba Mogale mining company.

For further information or interviews please contact:

For Northam Platinum:
Marion Brower
Russell & Associates
011 880-3924
marion@rair.co.za

Fatal accident at Zondereinde Division

Johannesburg, Wednesday 8 June 2011. Northam Zondereinde Division regrets to report that an employee was fatally injured yesterday evening, 7 June 2011, in an underground tramming accident.


Johannesburg, Wednesday 8 June 2011. Northam Zondereinde Division regrets to report that an employee was fatally injured yesterday evening, 7 June 2011, in an underground tramming accident. The mine has stopped all underground tramming operations, pending the outcome of an in loco investigation.

Queries: Marion Brower
Russell & Associates
011 880-3924

Fatality at Zondereinde

Johannesburg, Friday 3 June 2011. Northam Platinum Limited regrets to announce that an employee at its Zondereinde Division, who was injured while engaged in water jet cleaning operations underground on 27 May 2011, has died.


Johannesburg, Friday 3 June 2011. Northam Platinum Limited (JSE:NHM) regrets to announce that an employee at its Zondereinde Division, who was injured while engaged in water jet cleaning operations underground on 27 May 2011, has died.

Investigations into the cause of the incident are under way.

The name of the employee who died will be withheld until next of kin have been informed.

Queries: James Duncan
Russell & Associates
011 880-3924