Announcements 2003

Shareholders are advised that the company’s earnings and headline earnings per share for the six month period ending 31 December 2003 are expected to be substantially lower than those of the comparable period ended 31 December 2002. Despite a satisfactory operational performance and a significant increase in the US Dollar value of the company’s basket of metals, the company’s financial results have been adversely affected by materially lower Rand receipts as a consequence of the continued strength of the Rand against the US Dollar.

The company’s forecast earnings and headline earnings per share have not been reviewed by the company’s auditors. Shareholders are advised to exercise caution when dealing in the company’s securities on the JSE until the interim results for the six months ending 31 December 2003 are released.

It is anticipated that the interim results for the six months ending 31 December 2003 will be released on or about 5 February 2004.

This trading statement and cautionary announcement is issued in accordance with the revised Listings Requirements of the JSE Securities Exchange South Africa which became effective on 1 September 2003.

Johannesburg
8 December 2003

Johannesburg, 3 October 2003. The management of Northam Platinum Limited announced today that the 2003 negotiations on wages and conditions of employment have been concluded and that agreement has been reached between the company and the National Union of Mineworkers.

The agreement provides for an average increase of 11%, with higher percentages for the lowest employee categories, reflecting the company’s continuing commitment to minimising the wage gap.

The parties further agreed to establish representative forums to identify and address any reasons for differences in conditions of employment without prejudicing the company’s position; additional benefits for the dependents of employees who die in mine accidents; and the provision of an increased living-out allowance for employees living off the mine premises to promote home ownership amongst Northam Platinum’s employees.

This settlement follows on a two-year agreement reached in 2001 and is effective from 1 July 2003 for a one year period ending June 2004.

Queries:
For Northam Platinum
Gary Campbell-McKay
082 658 9165

The directors of Northam announce that, at the general meeting of shareholders held on Wednesday, 1 October 2003, the ordinary resolution authorising the reduction, in terms of section 90 of the Companies Act, 1973, as amended, of the company’s share premium account by R81 038 475 from R2 075 813 989 to R1 994 775 514 by means of a repayment of share premium to shareholders of 35 cents per Northam share (“the distribution”), was passed by the requisite majority.

Salient dates for the distribution

The distribution will be paid on Monday, 20 October 2003 to those shareholders of the company who are recorded in the company’s register at the close of business on Friday, 17 October 2003. In order to comply with the procedures of STRATE, the last date to trade, cum the distribution, in the company’s shares for purposes of entitlement to the distribution is Friday, 10 October 2003. The shares will commence trading ex the distribution on Monday, 13 October 2003.

Share certificates may not be dematerialised or rematerialised between Monday, 13 October 2003 and Friday, 17 October 2003, both days inclusive.

Johannesburg
1 October 2003

Circular to shareholders regarding the proposed reduction of the share capital of Northam by way of a repayment of share premium, and incorporating

• a notice of general meeting of shareholders; and
• a form of proxy.

• View Circular to Shareholders (PDF - 122KB)

Northam Platinum today reported output of more than 332,000 ounces of PGM metals in concentrate for the year ended 30 June 2003, its highest to date.

Chairman Tokyo Sexwale said today that the company had made good operational strides in building up to these production levels – 22% above the numbers reported in F2002. “With production now well over the 300,000 oz level, and an increase of 3% in precious metals sold, Northam management has done well in containing the effects of a much stronger Rand, resulting in a decline of only 6% in revenue.”

The drop in revenue from R1 561 million in F2002 to R1 472 million reflects the lower Rand basket price received of R145 273/kg (F2002: R160 367/kg), and the impact of the inventory build-up in the refining pipeline during the scheduled smelter shutdown at the beginning of the calendar year. After-tax profits at R275 million were similarly affected by R39.8 million, equivalent to an effect of 17 cents on headline earnings per share (heps), which amounts to 118.7 cents for the reporting period.

The additional production resulted in unit operating costs remaining constant year-on-year. Unit cash costs were marginally higher by 2%, considerably lower than the prevailing inflation rate.

In line with the higher production total operating costs increased by 25%, while costs incurred in toll refining during the smelter shutdown contributed to the additional refining and realisation costs. Also included in the cost of sales is a charge of R14 million in respect of leased metal to meet contractual requirements during the smelter rebuild.

On the operational side the smelter rebuild was successfully completed on schedule. The solid operational performance is also reflected in a 13% increase in square metres mined to 432 050 square metres, a 14% increase in tonnage milled, while the head grade remained constant at 5.3 g/t. The Merensky ore reserve availability has improved to 20 months, although poor ground conditions accounted for a loss of 2.4km in face length.

Commenting on the company’s expansion prospects, Sexwale said that Northam was actively pursuing a number of opportunities to grow the company, and that some of these had reached an advanced stage. “Our participation in the Pandora JV has now been agreed and the parties are awaiting the granting of a mining licence. We are also actively exploring other growth opportunities to diversify our operational base and to bring us down the cost curve. Discussions around some of these prospects have reached an advanced stage, and we hope to be making some announcements within the next couple of weeks.”

Distributed by: Russell & Associates
Tel: +27 11 880 3924
Fax: +27 11 880 3788
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Northam Platinum Limited advises the following change to its board:

Mr. Barry Davison has resigned from the board of Northam Platinum Limited. His resignation takes effect on 30 June 2003.

Mr. Ralph Havenstein has been appointed in his place as non-executive director with effect from 1 July 2003

Circular to shareholders regarding the proposed reduction of the share capital of Northam by way of a repayment of share premium, and incorporating:

• a notice of general meeting of shareholders; and
• a form of proxy

• View Circular to Shareholders (PDF - 120KB)

The management of Northam Platinum Limited is pleased to advise that its on-mine smelter has been successfully commissioned, on schedule, following the planned smelter shutdown and furnace rebuild which commenced at the beginning of the calendar year.

Company shrugs off the effects of surging SA currency

Strong operational performance at SA’s premier platinum empowerment player

Northam Platinum today reported a 64% rise in headline earnings to R207 million for the six month period ended December 2002 (December 2001: R127 million), shrugging off the effects of a stronger rand.

This result was achieved on the back of a 706 kg (22 700 ounces) hike in sales volumes which, in turn, contributed to a 28% increase in turnover to R854 million. With this excellent performance, the board has declared an interim dividend of 90 cents to shareholders, some 29% higher than in the previous corresponding reporting period.

Metals in concentrate (3PGEs + Au) produced for the six months ended December 2002 amounted to 5205 kg (167 348 ounces), an increase of 35% over the 3867 kg reported in December 2001. When stripping out the effect of the strike in the previous financial year, this result still demonstrates an excellent performance, meeting internal production targets and reflecting the increased mining flexibility. This is illustrated by the Merensky ore reserve position having improved by 50% from an availability of 12 months in December 2001 to 18 months in the current reporting period. All indications are there that the Merensky ore reserve position is on track to meet the target of 24 months in November this year. The UG2 ore reserves are also progressing according to plan.

Commenting on the results, Chairman Tokyo Sexwale said today, “This has been a sterling performance for Northam. Apart from making a remarkable recovery after the crippling strike in the previous financial year, there has been further consolidation in the area of safety, as evidenced by the achievement of 2 million fatality-free shifts in September last year.”

General Manager Glyn Lewis added, “Higher production and sales volumes went a long way towards offsetting the effects of the stronger rand. In US dollar terms metal prices were mixed over the period, marked by significant declines in the prices of palladium and rhodium on the one hand, and on the other by a sharply rising platinum price. The net effect of this was that the average metal price realised was only 7% higher, at R158 289/kg.”

Cost of sales were higher In line with the higher production and sales volumes. Unit cash costs were 8% lower, however, declining from US$318/oz to US$292/oz, reflecting the effects of the stringent cost control programme.

Looking forward, Sexwale noted that these very good results would add to Northam’s continued ability to deliver value to shareholders.