Announcements 2017

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 a major subsidiary 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 a major subsidiary of the company:

Name of director of major subsidiary Leon Charl van Schalkwyk
Name of associate C van Schalkwyk
Relationship with director Wife of Mr van Schalkwyk
Name of major subsidiary Booysendal Platinum Proprietary Limited
Nature of transaction Indirect purchase of shares
Class of shares Ordinary shares
Date of transaction 17 May 2017
Price per ordinary share R45.33
Total number of ordinary shares 36 000
Value of transaction R1 631 908.80
Nature and extent of director’s interest Indirect beneficial
Transaction completed on market Yes
Clearance obtained in terms of paragraph 3.66 of the
JSE Listings Requirements
Yes

Johannesburg
18 May 2017

Sponsor and Debt Sponsor
One Capital

Northam exits Pandora Joint Venture

Northam Platinum Limited (Northam) announced today that it has entered an agreement to sell its 7.5% stake in the Pandora joint venture (JV) to Lonmin’s Eastern Platinum Limited for a cash consideration of R45.6 million.


…sustains focus on core operations…

Johannesburg, Monday 15 May 2017.  Northam Platinum Limited (Northam) announced today that it has entered an agreement to sell its 7.5% stake in the Pandora joint venture (JV) to Lonmin’s Eastern Platinum Limited for a cash consideration of R45.6 million.

Northam chief executive Paul Dunne commented that the minority interest in the Pandora JV was not core to Northam’s business.  “With the unfolding of our growth strategy, we wish to concentrate our resources and efforts on our wholly-owned, managed operations and highly prospective projects in the pipeline.”

Amongst other conditions precedent, the transaction is subject to consent from the Minister of Mineral Resources in terms of section 11 of the Mineral and Petroleum Resources Development Act, No. 28 of 2002, and approval from Lonmin’s lending banks.

Distributed by Russell & Associates
Johannesburg
Tel: +27 (0)11 880 3924
Marion Brower: +27 (0) 71 493 0387
Jan Walker: +27 (0) 71 493 0429

Note to editors

Northam’s interest in the Pandora JV is held by its wholly-owned subsidiary Mvelaphanda Resources Proprietary Limited.  The interest in Pandora date back to 2002 to a prior black empowerment transaction conducted by Mvelaphanda Resources Limited with Anglo Platinum Limited, Lonmin’s Eastern Platinum Limited, and the Bapo ba Mogale community.

Northam disposes of its 7.5% interest in the Pandora Joint Venture

Northam is pleased to announce that Mvelaphanda Resources Proprietary Limited, a wholly-owned subsidiary of Northam, entered into a sale of participation interest agreement with Eastern Platinum Limited, a subsidiary of Lonmin Plc on 13 May 2017.


1. Introduction

Northam is pleased to announce that Mvelaphanda Resources Proprietary Limited (“Mvelaphanda”), a wholly-owned subsidiary of Northam, entered into a sale of participation interest agreement with Eastern Platinum Limited (“EPL”), a subsidiary of Lonmin Plc (“Lonmin”) on 13 May 2017 (“Agreement”). In terms of the Agreement Northam, through Mvelaphanda, will dispose of its 7.5% interest in the Pandora joint venture (“Pandora JV”) to EPL (“Transaction”). The consideration payable to Northam under the Transaction amounts to (i) R45,565,000 plus (ii) the amount of any cash calls paid by Northam to the Pandora JV during the period 1 January 2017 to completion of the Transaction, provided that such cash calls do not exceed an amount  of R50,000,000, (“Disposal Consideration”).

The Disposal Consideration will be settled on fulfilment of the Transaction conditions precedent referred to in paragraph 3 below.

2. Background information and rationale

The Pandora JV is managed by Lonmin and is currently held 50% by Lonmin, through EPL, 42.5% by Anglo American Platinum Limited, through Rustenburg Platinum Limited, and 7.5% by Northam, through Mvelaphanda. Northam does not consider its minority interest in the Pandora JV as being core to its business.

3. Conditions precedent

The Transaction is subject to, inter alia, all necessary regulatory approvals being obtained, including consent from the Minister of Mineral Resources in terms of section 11 of the Mineral and Petroleum Resources Development Act, No. 28 of 2002, and approval from Lonmin’s lending banks.

4. Categorisation

The Transaction falls below the threshold for categorisation in terms of the JSE Limited Listings Requirements and this announcement is provided for information purposes only.

Johannesburg
15 May 2017

Corporate Advisor, Sponsor and Debt Sponsor
One Capital 

Attorneys
Cliffe Dekker Hofmeyr Inc. 

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:

Exercise of Northam options

Name of director Ayanda Zemini Khumalo
Date of transaction 3 March 2017
Nature of transaction Exercise of options, paid out as appreciation cash, in terms of the Northam Share Option Scheme. These options vested on18 October 2010 and Mr Khumalo is required to exercise these options, on or before 17 October 2017, failing which they will lapse. 
Class of securities Appreciation cash in respect of ordinary shares
Number of options 62 500 options and 2 450 claw back options
Price at which options were granted R46.57 for the options and R40.00 for the claw back options
Price at which options were exercised R54.91
Value of transaction R557 779.50
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 broad-based economic empowerment 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 dealing by an associate of a director of a major subsidiary of the company and of Zambezi Platinum:

Name of director of major subsidiary   Leon Charl van Schalkwyk
Name of associate C van Schalkwyk
Relationship with director Wife of Mr van Schalkwyk
Name of major subsidiary Booysendal Platinum Proprietary Limited
Nature of transaction Indirect purchase of preference shares
Class of shares Preference shares
Date of transaction 7 March 2017
Price per preference share Various different trades with the following price information:
  • volume weighted average price of R52.96;
  • highest price of R53.00; and
  • lowest price of R52.20
Total number of preference shares 52 374 preference shares
Value of transaction R2 773 742.00
Nature and extent of director’s interest Indirect beneficial interest in Zambezi Platinum resulting in an indirect exposure to Northam ordinary shares
Transaction completed on market Yes
Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements  Yes

Johannesburg
8 March 2017

Sponsor and Debt Sponsor
One Capital

Standout performance at Northam’s Booysendal mine

Northam is pleased to announce that it has made further progress in delivering on its growth strategy by acquiring the Eland Platinum mine from Glencore Operations South Africa (Pty) Ltd (GOSA).


Creating capital efficient, scalable growth opportunities

Johannesburg, 24 February 2017. Northam Platinum Limited (Northam) issued its results for the 2017 financial half-year today, Friday 24 February. Chief executive Paul Dunne provided the commentary below on the group’s performance and prospects.

The standout feature of the first half of F2017 was the good operating performance at Booysendal, and the pace at which growth is being achieved. The production run rate of 100 000 PGM ounces in the first half significantly exceeded the mine’s nameplate capacity. From the original mining footprint we believe we have created capital efficient, scalable growth opportunities with long-term benefits for all stakeholders.

Both the deepening project on the UG2 mine, and work on the Booysendal South mine continued apace. The first blast for the boxcut at Booysendal South was completed in early September 2016 and the mining contract has recently been awarded to begin underground operations in March 2017. The Merensky module at Booysendal North is now complete and producing at 25 000 tonnes per month.

Credit must also go to management and employees for another outstanding safety achievement. The excellent fatality-free run at Zondereinde continued with 6 million fatality-free shifts recorded in November 2016. In early January though, with the start-up, Mr Alexandre Macave, a loco operator with many years’ service, lost his life in an underground rail accident. The board and management express their sincere condolences to the family and colleagues of Mr Macave.

Both tonnages and production ounces were affected at Zondereinde owing to operational reorganisation measures underground. The reorganisation of mining teams followed the discharge of 357 employees after labour disruptions in June 2016. This situation is being addressed and we expect to be back to full complement by March 2017. The drop in milled tonnages was exacerbated by an 18-day outage resulting from a mill bearing failure in the UG2 concentrator.

We remain optimistic that a rise in prices, although gradual, cannot be avoided, given the anticipated rise in demand, even in a conservative global growth climate, and the supply side constraints expected from South African producers in the next few years.

Our fully-funded growth projects at Booysendal, along with the acquisition of new ground to mine at Zondereinde, will add value through an increased production profile, and will allow us to deliver metal into a higher price environment in the years to come.

I am pleased to report that our strategy is unfolding steadily. Adding life to our existing operations has proved to be a cost-effective way of growing our production base, while increasing flexibility and lowering company risk.

Over time, the acquisition of contiguous resources at Zondereinde mine from Anglo American Platinum, announced on 11 October 2016 will restore the balance of Merensky ore to the Zondereinde mining mix, driving high-margin production growth.

The development of Booysendal South continues. With a relatively modest capital programme and small footprint, this brownfields expansion will deliver 250 000 PGM ounces per annum at steady state.

Expanding our metallurgical processing capacity is a critical feature of our growth strategy. Construction work on the dryer and furnace at Zondereinde continues.

Importantly, none of this work would have materialised without the black economic empowerment transaction with Zambezi Platinum (RF) Limited (Zambezi) concluded in 2015.

Our HDSA equity levels remain within the current Mining Charter guidelines, along with headroom to manoeuvre. On the social front, our reinvigorated housing strategy is delivering pleasing results. The hostel conversion programme is now complete, and in total, Zondereinde has built 433 houses in the neighbouring towns of Mogwase and Northam, along with a world-class new industrial change house for our living out employees.

In addition to our brownfields growth strategy, we continue to look for external opportunities. In this regard, we have signed an agreement to purchase the Eland mine near Brits from Glencore Operations South Africa Proprietary Limited for R175.0 million.

We believe that the Eland orebody, together with the established infrastructure, presents an attractive, low-cost opportunity and a medium-term option for growth.

CONCLUSION

Growth doesn’t occur without spend. This has been a busy half-year for both the group and its operating divisions with prepayments made on the aerial rope conveyor infrastructure for Booysendal South of R157.9 million, capital expenditure amounting to R773.0 million and the acquisition of Zambezi preference shares for R208.7 million.

Nevertheless, our cash balance stands at R2.2 billion, and our financial position remains robust. Northam is well positioned to benefit from an upswing in metal prices.

Issued by
Russell & Associates
Johannesburg
Tel +27 (0)11 880 3924
Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429

Northam acquires Eland and enters chrome marketing agreement

[Media Release] Northam is pleased to announce that it has made further progress in delivering on its growth strategy by acquiring the Eland Platinum mine from Glencore Operations South Africa (Pty) Ltd (GOSA).


...drives further consolidation in the PGM sector

Johannesburg, Friday 24 February. Northam is pleased to announce that it has made further progress in delivering on its growth strategy by acquiring the Eland Platinum mine from Glencore Operations South Africa (Pty) Ltd (GOSA).  This proposed transaction is supplemented by an exclusive chrome marketing agreement with Glencore International AG (Glencore) to market and sell chrome produced at Northam’s PGM operations.

In terms of the proposed transaction and for a purchase price of R175 million in cash, Northam will acquire all Eland’s assets, including:

  • Eland’s two mining rights with a resource estimated at 21.3Moz 4E with an average in situ grade of 4.4g/t
  • surface and underground infrastructure including a concentrator with a nameplate capacity of 250ktpm; a chrome spiral recovery plant; a tailings storage facility with a capacity of 100 million tonnes; two decline systems; and surface support infrastructure designed for a 250ktpm operation;
  •  immovable property; and
  •  a mining fleet in excess of 100 vehicles which include low profile mechanised mining equipment.

Commenting on the transaction today, Northam chief executive Paul Dunne said,“The Eland transaction provides Northam with a medium-term option over a large, shallow resource with fully developed, world-class surface infrastructure. Northam will also be acquiring a sizeable mining fleet, a portion of which will be utilised at the Booysendal South operation. The chrome marketing agreement establishes a long-term relationship between Northam and Glencore, a leading global chrome trader, which will contribute to maximising Northam’s chrome revenue.”

The Eland mine is located on the south-eastern limit of the western limb of the Bushveld Igneous Complex. The transaction includes the takeover of Eland’s environmental obligations and responsibilities and is subject to a number of conditions precedent.

Issued by
Russell & Associates
Johannesburg
Tel +27 (0)11 880 3924
Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429

Northam acquires the Eland Platinum mine and concludes a chrome marketing agreement

[SENS] Northam is pleased to announce that it has entered into the following agreements.


  1. INTRODUCTION

    Northam is pleased to announce that it has entered into the following agreements:

    • an agreement with Glencore Operations South Africa (Pty) Ltd (“GOSA”) to purchase the Eland Platinum mine (“Eland” or the “mine”) for a cash consideration of R175 million (“Eland transaction”); and
    • a long-term chrome marketing agreement with Glencore International AG (“Glencore”) to exclusively market and sell chrome produced at Northam’s Zondereinde and Booysendal operations.

    More on Eland

    Eland is located on the south-eastern limit of the western limb of the Bushveld Igneous Complex. It comprises two mining rights and contains a resource estimated at 21.3 Moz 4E with an average in situ 4E grade of 4.4 g/t (source: Glencore resource and reserve statement 2016).

    The mine was placed on care and maintenance in September 2015. In terms of the Eland transaction and for a purchase price of R175 million in cash, Northam will acquire all Eland’s assets, including:

    • Eland’s two mining rights;
    • surface and underground infrastructure including a concentrator with a nameplate capacity of 250ktpm; a chrome spiral recovery plant; a tailings storage facility with a capacity of 100 million tonnes; two decline systems equipped to 1.3km; and surface support infrastructure designed for a 250ktpm operation;
    • immovable property; and
    • a mining fleet in excess of 100 vehicles which includes low profile mechanised mining equipment.

    The transaction includes the takeover of Eland’s environmental obligations and responsibilities. The purchase consideration will be payable on the fulfilment of all the conditions precedent. Northam will be granted access to Eland from the signature date of the agreement to the fulfilment of the conditions precedent in order to facilitate a smooth transfer of ownership. Northam will reimburse GOSA for care and maintenance costs, amounting to approximately R30 million per annum, during this period.

    Commenting on the transaction today, Northam chief executive Paul Dunne said, “the Eland transaction provides Northam with a medium-term option over a large, shallow resource with fully developed, world-class surface infrastructure. Northam will also be acquiring a sizeable mining fleet, a portion of which will be utilised at the Booysendal South operation.

    The chrome marketing agreement establishes a long-term relationship between Northam and Glencore, a leading global chrome trader, which will contribute to maximising Northam’s chrome revenue.”

  2. CONDITIONS PRECEDENT

    The Eland transaction is subject to, inter alia, the following conditions precedent:

    • consent being granted by the Minister of Mineral Resources in terms of section 11 of the Mineral and Petroleum Resources Development Act, No. 28 of 2002;
    • Northam entering into a chrome offtake agreement with GOSA or its affiliates in respect of all chrome produced at Eland; and
    • cancellation of certain existing contractual arrangements between Eland and certain third parties, subject to Northam’s satisfaction.
  3. CATEGORISATION

    The Eland transaction falls below the threshold for categorisation in terms of the JSE Limited Listings Requirements and this announcement is provided for information purposes only.

Johannesburg
24 February 2017

Corporate Advisor, Sponsor and Debt Sponsor
One Capital

Attorneys
Cliffe Dekker Hofmeyr Inc.