Announcements 2016

Zondereinde mine – situation update 3

The management of Northam Platinum advises that talks continue with all parties to resolve the situation at the Zondereinde mine and return employees to work.


The management of Northam Platinum advises that talks continue with all parties to resolve the situation at the Zondereinde mine and return employees to work.

A mass meeting to be attended by the NUM, management and the SAPS has been scheduled to be held on the mine this morning.

Operations have been interrupted at the mine for two days since the fatal shooting of an employee on Sunday 5 June in Northam town approximately 20 kilometres from the mine.

Johannesburg
8 June 2016

Issued by

Russell & Associates
Johannesburg
Tel +27 (0)11 880 3924

Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429

Zondereinde mine – situation update 2

The management of Northam Platinum’s Zondereinde mine has urged employees to return to work now that calm has returned to the mine.


The management of Northam Platinum’s Zondereinde mine has urged employees to return to work now that calm has returned to the mine.

Underground mining activities were suspended in the immediate aftermath of the death of a Zondereinde employee in the town of Northam on Sunday 5 June.  Another employee was killed near the mine on Monday morning in continued disruptions.  

In the meantime, talks with all parties to reach a constructive conclusion to the current impasse continue.  Northam chief executive Paul Dunne has called on all parties to act responsibly, saying, “We urge all parties to exercise leadership following these tragic incidents, in the interests of safety for all.”

Mine management will assist the authorities in their investigations into the deaths where required, and is seeking to administer to the needs of the families of the deceased.

Johannesburg
7 June 2016

Issued by

Russell & Associates
Johannesburg
Tel +27 (0)11 880 3924

Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429

Zondereinde mine – situation update 1

Further to the statement issued this morning, Monday 6 June, Northam management advises that the violent outbreaks at and near the company’s Zondereinde mine have reduced significantly. This follows on the death of an employee at the Northam town yesterday, and the killing of another employee in clashes this morning.


Further to the statement issued this morning, Monday 6 June, Northam management advises that the violent outbreaks at and near the company’s Zondereinde mine have reduced significantly. This follows on the death of an employee at the Northam town yesterday, and the killing of another employee in clashes this morning.

Management, the SAPS and union leadership will be meeting at the Zondereinde mine at 16:00 this afternoon in an attempt to resolve the current impasse and to ensure that operations resume as soon as is practicably possible, and to ensure safe passage for employees.

Management urges both NUM and AMCU to exercise leadership following these tragic incidents, and to ensure that union members act responsibly and peacefully in the interests of safety for all.

Johannesburg
6 June 2016

Issued by

Russell & Associates
Johannesburg
Tel +27 (0)11 880 3924

Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429

Operations suspended at Zondereinde mine

The management of Northam Platinum Limited advises that an employee of the company’s Zondereinde mine in Limpopo was killed in an act of violence in the town of Northam (approximately 20km from the mine) on Sunday afternoon 5 June 2016.


The management of Northam Platinum Limited advises that an employee of the company’s Zondereinde mine in Limpopo was killed in an act of violence in the town of Northam (approximately 20km from the mine) on Sunday afternoon 5 June 2016.

Zondereinde management will provide any assistance requested by the SAPS in its investigation. The assailant and motive are unknown at this time.

Management has condemned the violence and has expressed sympathy with the family and colleagues of the deceased employee, while it seeks to assist the family.

Following this incident sporadic incidents of intimidation and violence have spread to the mine. Operations at the mine have been temporarily suspended.

Management is seeking to meet with employee representatives, while security and the SAPS are attempting to calm the situation.

Johannesburg
6 June 2016

Issued by

Russell & Associates
Johannesburg
Tel +27 (0)11 880 3924

Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429

Northam issues R175 million of domestic medium term notes

Northam is pleased to announce that the company has successfully raised term debt through an issue of R175 million five year senior unsecured fixed rate domestic medium term notes.


Northam is pleased to announce that the company has successfully raised term debt through an issue of R175 million five year senior unsecured fixed rate domestic medium term notes (“Notes”). The Notes bear a fixed coupon of 13.50% per annum, payable semi-annually, and will be redeemed on 12 May 2021.

The proceeds will further strengthen Northam’s balance sheet and be applied to the development of the company’s project pipeline.

Paul Dunne, Northam’s chief executive officer said:

The Notes match Northam’s project development requirements and a fixed rate allows for prudent forecasting of the debt cash flows over the term.  We are pleased to have again received support from the market and believe that it reaffirms investor confidence in our growth strategy.

Johannesburg
13 May 2016

Issued by

Russell & Associates
Johannesburg
Tel +27 (0)11 880 3924

Northam sells its stake in Trans Hex

Northam is pleased to advise that it has disposed of its 20.3% stake in Trans Hex Group Limited (Trans Hex), a listed diamond producer.


Johannesburg, 09 May 2016.  Northam is pleased to advise that it has disposed of its 20.3% stake in Trans Hex Group Limited (Trans Hex), a listed diamond producer.

“The disposal of this non-core holding is in line with Northam’s strategy of rationalising its asset portfolio, and focusing on growing its PGM business into shallow, mechanisable orebodies,” comments Northam chief executive Paul Dunne.

The transaction has realised a total cash consideration of R81.8 million for the company, which represents a 7.6% premium on the 30 day volume weighted average price of a Trans Hex share on the day prior to the transaction. The funds will be allocated towards developing the company’s internal project pipeline.

Note to editors

Northam’s stake in Trans Hex dates back to 2011 with the unbundling of Mvela Resources Limited. In terms of the transaction Mvela Resources became a wholly-owned subsidiary of Northam and was delisted from the JSE.

In terms of the offer Northam acquired Mvela Resources’ remaining assets, which included a 20.3% stake in Trans Hex.

SENS announcement

For further information:

Russell and Associates, Johannesburg +27 11 880 3924
Marion Brower: 071 493 0398
Jan Walker: 071 493 0429

Johannesburg
9 May 2016

Dealings in securities

Northam shareholders are advised that the company has made awards in accordance with the terms of the Northam Share Incentive Plan (“SIP”).


Northam shareholders (“shareholders”) are advised that the company has made awards in accordance with the terms of the Northam Share Incentive Plan (“SIP”). These include the award of conditional shares relating to Northam’s BEE transaction (“BEE SIP Awards”), which awards were specifically approved by shareholders at the annual general meeting held on 9 November 2016. The BEE SIP Awards have been carved out of the existing total SIP allocation limit previously approved by shareholders on 5 November 2014, therefore the total SIP allocation limit has not been increased as a result of the BEE SIP Awards.

In compliance with paragraph 3.63 of the JSE Limited Listings Requirements (“JSE Listings Requirements”), the dealings by directors of the company, directors of major subsidiaries and the company secretary are as follows:

Name of director Paul Anthony Dunne
Date of award acceptance 18 November 2016
Nature of transaction Acceptance of awards in relation to Northam ordinary shares (“shares”) in terms of the SIP
Class of securities Awards in terms of the SIP
Total number of shares covered by the awards 170 100
(42 900 retention shares with no performance conditions)
(127 200 performance shares with performance conditions)
Vesting date 100% of the retention shares and depending on achievement of the performance conditions, between nil to 135% of the performance shares on 8 November 2019
Strike price R nil
Value of transaction -
Nature and extent of director’s interest Direct beneficial
Transaction completed on market No
Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements  Yes
Designation of director Chief Executive Officer
Name of director Paul Anthony Dunne
Date of award acceptance 18 November 2016
Nature of transaction Acceptance of awards in relation to shares in terms of the SIP
Class of securities Awards in terms of the SIP
Total number of shares covered by the awards 1 500 000 BEE transaction conditional shares with performance conditions
Vesting 100% of the BEE transaction conditional shares on achievement of the performance conditions by 18 May 2025
Vesting date 30 business days after the date on which the performance conditions are achieved
Strike price R nil
Value of transaction -
Nature and extent of director’s interest Direct beneficial
Transaction completed on market No
Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements  Yes
Name of director   Ayanda Zemini Khumalo
Date of award acceptance 18 November 2016
Nature of transaction Acceptance of awards in relation to shares in terms of the SIP
Class of securities Awards in terms of the SIP
Total number of shares covered by the awards 82 900
(20 900 retention shares with no performance conditions)
(62 000 performance shares with performance conditions)
Vesting date 100% of the retention shares and depending on targets met in terms of the performance conditions, between nil to 135% of the performance shares on 8 November 2019
Strike price R nil
Value of transaction -
Nature and extent of director’s interest Direct beneficial
Transaction completed on market No
Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements  Yes
Designation of director Chief Financial Officer
Name of director Ayanda Zemini Khumalo
Date of award acceptance 18 November 2016
Nature of transaction Acceptance of awards in relation to shares in terms of the SIP
Class of securities Awards in terms of the SIP
Total number of shares covered by the awards 700 000 BEE transaction conditional shares with performance conditions
Vesting 100% of the BEE transaction conditional shares on achievement of the performance conditions by 18 May 2025
Vesting date 30 business days after the date on which the performance conditions are achieved
Strike price R nil
Value of transaction -
Nature and extent of director’s interest Direct beneficial
Transaction completed on market No
Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements  Yes
Name of director of major subsidiary   Leon Charl van Schalkwyk
Name of major subsidiary Booysendal Platinum Proprietary Limited
Date of award acceptance 18 November 2016
Nature of transaction Acceptance of awards in relation to shares in terms of the SIP
Class of securities Awards in terms of the SIP
Total number of shares covered by the awards 59 200
(14 900 retention shares with no performance conditions)
(44 300 performance shares with performance conditions)
Vesting date 100% of the retention shares and depending on targets met in terms of the performance conditions, between nil to 135% of the performance shares on 8 November 2019
Strike price R nil
Value of transaction -
Nature and extent of director’s interest Direct beneficial
Transaction completed on market No
Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements  Yes
Designation of director of major subsidiary Chief Commercial Officer
Name of director of major subsidiary Leon Charl van Schalkwyk
Name of major subsidiary Booysendal Platinum Proprietary Limited
Date of award acceptance 18 November 2016
Nature of transaction Acceptance of awards in relation to shares in terms of the SIP
Class of securities Awards in terms of the SIP
Total number of shares covered by the awards 500 000 BEE transaction conditional shares with performance conditions
Vesting 100% of the BEE transaction conditional shares on achievement of the performance conditions by 18 May 2025
Vesting date 30 business days after the date on which the performance conditions are achieved
Strike price R nil
Value of transaction -
Nature and extent of director’s interest Direct beneficial
Transaction completed on market No
Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements  Yes
Name of company secretary Patricia Beatrice Beale
Date of award acceptance 18 November 2016
Nature of transaction Acceptance of awards in relation to shares in terms of the SIP
Class of securities Awards in terms of the SIP
Total number of shares covered by the awards 21 000
(5 300 retention shares with no performance conditions)
(15 700 performance shares with performance conditions)
Vesting date 100% of the retention shares and depending on targets met in terms of the performance conditions, between nil to 135% of the performance shares on 8 November 2019
Strike price R nil
Value of transaction -
Nature and extent of interest Direct beneficial
Transaction completed on market No
Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements  Yes

Johannesburg
22 November 2016

Sponsor and Debt Sponsor
One Capital

Dealings in securities

In compliance with paragraphs 3.63 to 3.66 of the JSE Limited (“JSE”) Listings Requirements, Northam advises its shareholders of the following dealing by a director of the company:


In compliance with paragraphs 3.63 to 3.66 of the JSE Limited (“JSE”) Listings Requirements, Northam advises its shareholders of the following dealing by a director of the company:

Name of director Ayanda Zemini Khumalo
Date of transaction 9 March 2016
Nature of transaction Exercise of options, paid out as Appreciation Cash, in terms of the Northam Share Option Scheme.  These options did vest on1 July 2012 and Mr Khumalo is required to exercise these options, on or before 30 June 2017, failing which they will lapse. 
Class of securities Appreciation Cash in respect of ordinary shares.
Number of options 125,000 options and 4,901 claw back options
Price at which options were granted R45.59 and R40.00 for the claw back options
Price at which options were exercised R48.40
Value of transaction R392,418.40
Nature and extent of director’s interest Direct beneficial
Transaction completed on market No
Clearance obtained in terms of paragraph 3.66 of the JSE listings requirements Yes

Purchase of Zambezi Platinum (RF) Limited (“Zambezi Platinum”) preference shares (“preference shares”)

In terms of the Northam BEE transaction implemented on 18 May 2015, Zambezi Platinum holds ordinary shares in Northam. Pursuant to the preference share terms, Zambezi Platinum is entitled to elect to settle the preference share redemption amount in cash, Northam ordinary shares or a combination thereof. Accordingly, in compliance with paragraphs 3.63 to 3.66 of the JSE Listings Requirements, Northam advises its shareholders of the following dealings by a director of the company and of Zambezi Platinum:

Name of director Ayanda Zemini Khumalo
Nature of transactions Direct purchase of preference shares
Class of shares Preference shares
Transaction 1  
Date of transaction 11 March 2016
Price per preference share R43.50
Total number of preference shares 25 preference shares
Value of transaction R1,087.50
Nature and extent of director’s interest Direct beneficial interest in Northam ordinary shares held by Zambezi Platinum
Transaction completed on market Yes
Clearance obtained in terms of paragraph 3.66 of the JSE listings requirements Yes
Transaction 2  
Date of transaction 14 March 2016
Price per preference share R44.50
Total number of preference shares 475 preference shares
Value of transaction R21,137.50
Nature and extent of director’s interest Direct beneficial interest in Northam ordinary shares held by Zambezi Platinum
Transaction completed on market Yes
Clearance obtained in terms of paragraph 3.66 of the JSE listings requirements Yes

Johannesburg
15 March 2016

Sponsor and Debt Sponsor
One Capital

Zambezi Platinum: Release of reviewed interim results

Zambezi Platinum advises its preference shareholders that the reviewed interim results for the 6 months ended 31 December 2015


Zambezi Platinum advises its preference shareholders that the reviewed interim results for the 6 months ended 31 December 2015, is available on the Zambezi Platinum website: www.northam.co.za/zambezi/ and is also available for inspection at the company’s registered office on request.

Reviewed interim results for the six months ended 31 December 2015

Johannesburg
26 February 2016

Northam well placed to face the future

Northam Platinum Limited (Northam) today posted results for the six months ended 31 December 2015. In a foreword to the results, chief executive Paul Dunne provides a review of the period, and Northam’s progress against its strategic objectives.


Future focus on shallow, mechanisable operations

Friday 26 February 2016. Northam Platinum Limited (Northam) today posted results for the six months ended 31 December 2015. In a foreword to the results, chief executive Paul Dunne provides a review of the period, and Northam’s progress against its strategic objectives.

The first half of the 2016 financial year has been challenging for the entire platinum sector. Prices of PGMs have, along with other commodity prices, moved lower, placing enormous stress on the industry and its stakeholders. Northam has not been immune from these effects. However, by sticking to our conservative overall strategy, we believe the company is well positioned to face the future, to develop further and in the shorter term, to work through the present trough in metals prices.

Our strategy is based on sound operating performances focused on safety and on containing the costs of producing each PGM ounce. Our future focus is and will remain on developing shallow, mechanised operations. We will continue to exploit the Zondereinde mine, helped by a change in the mix of Merensky and UG2 ore, and our growth ounces will be shallow and mechanised. This was the fundamental consideration in our acquisition of the Everest property and crucially, of its processing plant located adjacent to our developing Booysendal South project. The plant will process Booysendal South’s ore and its acquisition contributes to the efficiency of the total capital spend on the mine. The fact is that we have a resource of 100Moz at Booysendal that offers superior risk-to-reward ratio.

As the half year under review progressed, we steadily ramped up production at the Booysendal North property, reaching the planned full production run rate at the end of the period.

The next stage will be the start of the development of Booysendal South, utilising the established infrastructure as a base. This approach will result in a capital efficient project while positioning the company to benefit from an upturn in the PGM market. Booysendal South is at the feasibility study stage, which is expected to be completed by the end of our financial year in June. This project will contribute to the group’s advancement down the cost curve, an essential element in our strategy for the long-term sustainability of the business.

The company’s Black Economic Empowerment (BEE) transaction with Zambezi Platinum (RF) Limited (Zambezi Platinum), delivered a R4 billion cash injection into Northam. At the end of the 10-year lock-in period, Zambezi Platinum is required to redeem the preference shares with cash or Northam shares. All amounts payable to the holders of the preference shares have been guaranteed by Northam.

PGM MARKET

We believe that we are entering the bottom of the price cycle and that it is likely that we shall remain in the trough for some time as the market adjusts to an excess of metal supply and poor macroeconomic conditions in the world’s key economies. Our capital and operating strategies are, however, founded on our understanding that we, as a company, must invest prudently throughout the cycle if we are to benefit over time.

OPERATIONS

Our emphasis on safety has contributed to another fatality free reporting period. This achievement is based on team work and perseverance.

The operational performance during the period under review was good. Zondereinde has adjusted well to a higher UG2 mining ratio which has resulted in a reduction in unit cash costs. Booysendal North mine has completed its production ramp up and the capital footprint is fully developed.

The increased level of disclosure this time around demonstrates the strong competitive cost position of both Zondereinde and Booysendal.

At the start of this financial year the three year wage agreement came into effect, promising a period of stable labour relations from which all can benefit.

We continue to progress our project pipeline, which positions Northam well in this difficult market environment for future growth.

The H1 results for F2016 are disclosed in greater detail than has been the case previously, including segmental analyses, a breakdown of sales and costs, amongst other metrics. These appear in the results booklet, which is made available on the company’s website at www.northam.co.za.

Issued by

Russell & Associates
Johannesburg
Tel +27 (0)11 880 3924

Marion Brower +27 (0) 71 493 0387
Memory Johnstone +27 (0)82 719 3081