Announcements 2009

Shareholders of Northam are advised that all the ordinary and special resolutions tabled at the company’s annual general meeting held today, Thursday 5 November 2009, were passed with the requisite majorities.

Johannesburg
5 November 2009

Sponsor: Barnard Jacobs Mellet Corporate Finance(Pty) Limited

Key features

• Modular approach confirmed
• Tonnages:
  • Module 1 - 120 000 tonnes milled per month
  • Module 2 - 120 000 tonnes milled per month
• Production and sales volumes:
  • Module 1 - 130 000 (3PGM+Au) per annum
  • Module 2 - 115 000 (3PGM+Au) per annum
• Financing decision to follow on the completion of value engineering process
• Northam Board approval and construction of mine expected in early 2010
• First module capex - R3 billion (2009 terms)
• Combination of steady state Zondereinde mine and significant greenfields growth at Booysendal provides compelling PGM investment opportunity

Northam Platinum Limited is pleased to report that the Booysendal feasibility study report is complete and is in the process of being compiled, while a review of the design and layout is under way. Final board approval for the project is expected early in calendar year 2010.

Northam's acquisition of the Booysendal project became effective in August 2008, with work on the feasibility study having begun in June 2008. Booysendal is located on the eastern limb of the Bushveld Complex, near the town of Lydenburg.

Commenting on the results of the study, Northam CEO Glyn Lewis said today, "The feasibility study has confirmed our approach to the project. Booysendal is living up to our expectations and is likely to be a significant, long-life producer, and one of the new-generation PGM mining projects of the future.

"The mining plan confirms that a modular approach, initially focussing on the UG2 reef, should be implemented. The plan is to mine at a rate of 150 000 tonnes per month and upgrade this production through a Dense Media Separation ("DMS") plant to produce a concentrator feed of 120 000 tonnes per month. The second module will have a similar production profile when it is brought into operation, resulting in a total concentrator fed of 240 000 tonnes milled per month. For module 1, at full capacity, in mid 2009 money terms, the average operating cost is expected to be R410 per tonne mined.

"These operating parameters are expected to give rise to sales of some 130 000 ounces (3PGM+Au - platinum palladium, rhodium, gold) per annum on completion of module 1, rising by a further 115 000 ounces (3PGM+Au) per annum, to a total of 245 000 ounces (3PGM+Au) for both modules.

"The capital cost for module 1 is expected to be R3.0 billion (in 2009 terms) over a five-year period with similar capital expenditure anticipated for module 2. Our intention remains to fund the project through a combination of a rights issue, internal retentions and medium-term bank debt."

Northam will begin the construction of an access road and water pipeline and start the boxcut for the module 1 on-reef decline in the first half of 2010. First concentrate from module 1 is anticipated in 2013, reaching full production in 2015. Module 1's life-of-mine is expected to exceed 20 years, during which period further production expansions would be developed.

The national power utility, Eskom, has undertaken a feasibility study for an 80MVa substation to be situated on the Booysendal property. Eskom is currently also in the process of conducting the Environmental Impact Assessment (EIA) study for the transmission lines from the nearby Steenberg sub-station. The application for the first 20MVa has been submitted and a budget quote is awaited. Our critical path analysis has identified the supply of electricity as a key factor.

The conversion of Booysendal's old order mining right to a new order mining right over nine of the 11 farms was executed on 10 September 2009. The application for new order mining rights on the remaining two farms and the transfer of the Der Brochen extension is in progress.

The scale of Booysendal, together with the accessibility of the reef horizon from surface, provides the project with significant inherent flexibility and growth potential. Further expansions of the mine (such as increasing the UG2 mining rate, or exploitation of the Merensky reef) will be the subject of a further feasibility study.

Further updates will be provided to the market in due course.

Key features: Booysendal feasibility study

Key features of the Booysendal project arising from the feasibility study are:

Modular approach

• The UG2 reef will be optimally mined by developing on a modular basis. Each module aims to produce 150 000 run-of-mine (RoM) tonnes per month. The North Shaft complex, comprising four declines (three on reef and one in the footwall) makes up module 1, with a similar decline configuration considered for the South Shaft or module.
• In order to minimize the environmental impact, a reverse decline system (which has a smaller total footprint than a conventional adit) will be used to access the primary decline cluster to allow for the efficient transport of ore, men, material and machinery and access to the Merensky reef horizon.
• Depending on prevailing economic circumstances and power availability, construction of the second module should begin in 2013.

Access to the reef

• A modified room and pillar mining method will be employed to extract the UG2 reef, which will be transported to surface via a footwall conveyor system connected to the reverse declines. This will allow for maximum flexibility in the mine design and easy future access to the Merensky reef horizon.

Throughput

• Each module will produce approximately 150 000 tonnes per month of RoM ore with a DMS circuit to be used to remove 30 000 tonnes per month of low grade/waste material so as to improve the grade of ore delivered to the UG2 concentrator plant.

Anticipated costs

• The average operating cost for North Shaft is expected to be R410 per tonne mined. There may be a marginal increase in operating cost once the second module is producing, principally as a result of logistical costs arising from the need for a surface cable ropeway conveyor from the second module to an expanded metallurgical facility, and the marginally lower grade UG2 that is anticipated at South Shaft.

Environmental permitting

• Environmental permitting for the first on-reef decline has been approved. The Environmental Management Plan (EMP) amendment for the reverse declines and plant infrastructure is currently underway. Approval is expected in the first half of 2010. Extensive environmental surveys and studies have been undertaken so as to minimise both the footprint of the mine, and its impact on the environment.

Timing and production build-up

• The construction of North Shaft is planned to begin in the second half of 2010, with the first PGM concentrate being produced in 2013, after commissioning of the processing plant.
• " Construction of the South Shaft should begin in 2013, with the first PGM ounces being produced in 2016.

Capital costs

• The project capital cost for module 1 is estimated at R2.97 billion (in 2009 terms). The project capital cost at module 2 is estimated to be similar (in 2009 terms).

Smelting

• Given the proposed implementation at Booysendal of Northam's successful vertical sparger technology in the UG2 concentrator circuit, it is anticipated that the current smelter capacity at Northam's Zondereinde mine will be adequate for the treatment of module 1 UG2 concentrate.
• Accommodating concentrates from module 2 would require an upgrade of smelter capacity and extensions to the crystallizing and electro-winning circuits.

Power supply

• Eskom has completed the feasibility study for an 80 MVa substation to be situated at Booysendal and is doing the EIA study for the transmission lines from Steenberg. Northam has submitted an application for the first 20 MVa and Eskom is in the process of preparing the budget quote. Critical path analysis has identified electricity as a key factor and significant attention is being paid to this aspect. The spare capacity at Mototolo (which, by agreement, is available to Northam) is adequate for the construction of the necessary mining infrastructure.

About Northam and Booysendal

Northam Platinum Limited (Northam) is the only fully independent, black-owned and controlled integrated PGM producer listed on the JSE Limited (JSE). The company wholly owns and operates the cash-generative Zondereinde platinum mine and metallurgical complex on the upper end of the western limb of the South African Bushveld Complex near the town of Thabazimbi.

Northam is planning to develop its wholly-owned 103 million ounce (3PGM+Au) Booysendal project, which is located near Lydenburg on the eastern limb of the Bushveld Complex. In addition, the company holds a 7.5% interest in the Pandora joint venture, a PGM mining operation on the western limb of the Bushveld Complex, near Brits, in partnership with Anglo Platinum, the Bapo Ba Mogale community and Lonmin.

The company has a combined resource base of 130 million ounces (3PGE+Au) (including 8.1 million ounces (3PGE+Au) in mineral reserve at Northam's Zondereinde mine). The progressive development of Booysendal will add some 245 000 ounces (3PGM+Au) to the company's existing annual output of some 300 000 ounces (3PGM+Au) with more than 50 years life-of-mine. As an independent, fully integrated PGM producer, Northam has full control over the entire PGM beneficiation stream of its metals from mine to market.

Distributed by:

Russell & Associates, Johannesburg
Tel: +27 (0)11 880 3924
Fax: +27 (0)11 880 3788

Northam will be hosting a presentation of the feasibility study results. Details as follows:

• Date and time: Thursday 8 October 2009 at 11:30
• Venue: Glenhove Conference Centre, 52 Glenhove Road, Melrose Estate
• Details of the webcast and audio facilities are available on the home page

Solid operating performance from the Zondereinde mine

Metal price slump dents profits

Northam Platinum Limited (Northam, JSE: NHM) has released results for the year ended 30 June 2009.

Key features from the results:

• Sales volumes increase by 22% to 333 000 oz (3PGM+Au)
• 31% decline in rand basket price from R409 161 to R280 609/kg
• Unit cash cost increases held to 14%
• Strong cash position maintained
• Operating margin at 27.5%

Commenting on developments in the year, Northam CEO Glyn Lewis said today that the finalisation of the Booysendal transaction and the implementation of the agreements associated with the acquisition of the Booysendal platinum asset from Mvelaphanda Resources Limited (Mvela Resources) were defining developments in the life of Northam over the past year. “This transaction has resulted in Northam’s empowerment status being cemented at the equity level, which in turn, has led to the inclusion of revenues from the company’s 7.5% stake in the Pandora Joint Venture. These developments signal the transformation of Northam, as it begins to make progress in reducing the risk attached to a single operating asset, diversifying its income streams and starts to benefit from lower cost volume growth,” Lewis said.

Financial and operating results

Results for the year were severely impacted by the global economic slowdown which resulted in metal prices in US dollar terms being 42% lower at US$1 001/oz. The 18% decline in the value of the rand against the US dollar over the period only partly offset the effect of the dollar metal prices, resulting in a rand basket price of R280 609/kg, 31% lower than the previous year, at R409 161/kg.

The Zondereinde mine reported a marginal increase in production to 9 408kg (302 474oz). This, together with the purchase of 487kg (15 657oz) of custom material and a decrease in metal inventories, contributed to the record metal sales of 10 362kg (333 159oz). The overall effect of the combination of the lower prices and increased sales was an 18% decline in sales revenues, down from R3.9 billion in F2008 to R3.2 billion in the year under review.

Lewis explained that company’s cost performance was satisfactory, with the increase in costs per kilogram produced held to 14% at R199 680/kg. “Against the background of increases in steel, chemicals and the 25% higher cost of power and water, this was a very respectable outcome.”

A major contributor to the significantly higher cost of sales over the year was the 60% increase in refining costs incurred in the first half of the year on toll treatment charges, as well as the R140 million spent on purchasing concentrates for custom smelting. Along with depreciation charges of R161 million, and a decrease of R40 million in metal inventories, the net effect on cost of sales was a 47% increase to R2.4 billion.

All these factors had a predictable adverse impact on operating profits, which dropped by some 64% to R818 million. Profit attributable to shareholders declined by 58% to R630 million, with headline earnings per share dropping from 627 cents per share to 169 cents per share. The decline in earnings also reflects the increase in the average number of shares in issue following the allotment and issuing of 121 million new shares as consideration for the Booysendal asset.

Nevertheless, by year end the company was still in a healthy cash position, with R921 million in cash reserves. In view of the company’s expansion prospects, the dividend of 78cps for the year (H1: 38cps; H2: 40cps) is in line with previous guidance of a more cautious approach to dividend payments.

Booysendal project update

The Booysendal feasibility study has progressed according to plan and remains scheduled for completion during the second half of this calendar year after which a value engineering exercise will be undertaken to optimise designs, layouts and schedules. Specialist consulting teams are close to finalising the metallurgical and mine design as well as the infrastructure and environmental components of the project. A modular design and incremental production build-up remains the preferred method of developing the Booysendal mine. “This approach provides flexibility in implementation, given the current uncertain market conditions, and the availability of power and water supplies,” Lewis emphasized.

Prospects

Looking to production at the Zondereinde mine in the year ahead, Lewis anticipates a marginal improvement in metal production. Costs are likely to increase in line with inflation, and earnings will be determined largely by the average Rand basket price received in F2010. Notably, this is currently at a lower level than the R280 609 per kilogram received during this reporting period.

Distributed by:

Russell and Associates
Tel: +27 (0)11 880 3924
Fax: +27 (0)11 880 3788

Shareholders of Northam are advised that Messrs Alwyn Martin, Kelello Chabedi and Mikki Xayiya have been appointed to the board of the company as non-executive directors. In addition, Mr Mark Willcox has been appointed as an alternate director to Mr Mikki Xayiya. The appointments are effective 22 June 2009.

Further biographical details on the new appointments are provided below:

Mr Alwyn Martin (B Com) is a chartered accountant, and is a founding partner of the country's first black-owned accounting firm Christian, Martin and Abrahamse. Over a period of time he has served as a partner at Ernst and Young, chairman of Vodacom Group and CEO of Siemens Telecommunications (Pty) Ltd. His board positions currently include Petmin Limited, Trans Hex Group Limited and Barnard Jacobs Mellet Holdings Limited.

Mr Chabedi (BSc Mining Engineering, IMDP, MDP, MSAIMM) has many years' experience in the mining industry, having worked in various capacities for Anglo Coal. He currently consults to the industry while lecturing in both opencast and underground mining at the University of the Witwatersrand. Mr Chabedi is a director of Mvelaphanda Resources Limited (Mvela Resources).

Mr Mikki Xayiya (BA) is the deputy chairman of Mvelaphanda Holdings (Pty) Ltd (Mvela Holdings) and Mvelaphanda Group Ltd and serves on the board of Mvela Resources. He has served as managing director of Mawenzi Asset Managers (Pty) Ltd and as a policy advisor at the Office of the Premier in Gauteng Province.

Mr Mark Willcox (BA LLB, PG Dip Tax) is a founding member of Mvela Holdings. He currently sits on the boards of Avusa Limited and Mvela Resources Ltd. Mr Willcox is the current chief executive officer of African Management Limited/African Global Capital UK.

Johannesburg
23 June 2009

Sponsor:

Barnard Jacobs Mellet Corporate Finance (Pty) Ltd

Issued by:

Russell & Associates
Tel: +27 11 880 3924

Shareholders of Northam are advised that Mr. P. C. Pienaar has resigned as a director of the company with effect from 4 June 2009.

Mr. Pienaar was appointed a director of the company on the 10th September 2007, having previously served as an alternate director since 2005.

The company appreciates the positive role played by Mr. Pienaar during his tenure on the board and wishes him well in his future endeavours.

Johannesburg
4 June 2009

Sponsor:

Barnard Jacobs Mellet Corporate Finance (Pty) Ltd

Northam Zondereinde mine reports a strong operating performance

Cash positive, healthy operating margin in difficult market conditions

Northam Platinum Limited (Northam, JSE: NHM) released results for the half year ended 31 December 2008.

Key features:

• Metal production higher by 10.7% at 5 193 kg (166 952 oz)
• Sales revenue increases by 7.7% to R1 612 million
• Cash operating cost increases held to below inflation
• Smelter refurbishment completed on schedule and within budget
• Booysendal bankable feasibility study on track
• Cash positive in tough market environment
• Operating margin at 37.5%

Financial and operating results

Higher production and sales volumes from Northam’s Zondereinde mine, contributed to a 7.7% increase in sales revenues to R1 612 million for the half year ending 31 December 2008.

The rand basket price received over the period was slightly higher than in the comparable period in F2008, largely owing to the 21% decline in the rand/US dollar exchange rate, thereby partially offsetting the lower US dollar price for Northam’s basket of metals at US$1 197 per ounce.

A sustained focus on cost control has contained unit costs to single-digit increases, below inflation:

• R/tonne milled - 7.1% higher at R823
• R/kg produced - 9.8% higher at R184 213

Inflationary increases in the cost of labour, consumables and services, in combination with the 10.7% increase in production resulted in total operating costs of R970 million. Reflected in the cost of sales are those associated with additional smelting and refining, which were R42 million higher over the period owing to once-off costs relating to toll treating charges during the Northam smelter refurbishment, which was completed on schedule and within budget.

Profit attributable to shareholders decreased by 21.5% to R371 million compared with that for the six months ended 31 December 2007. Headline earnings per share were lower at 113.5 cents, also reflecting the increase in share capital associated with the acquisition of Booysendal during the period.

Northam metallurgical operations

The metallurgical upgrade programme continued during the reporting period with the refurbishment of the smelter, which started in October 2008 and which was completed on schedule and within budget at the end of December 2008. The smelter has been successfully recommissioned.

In line with Northam’s stated strategy of leveraging the metallurgical operations at the Zondereinde mine, and providing a competitive alternative to juniors entering the sector, an offtake agreement was concluded during the period with Platmin’s Pilanesberg platinum mine, and a toll-treatment agreement with Braemore Resources was concluded.

Northam CEO Glyn Lewis said today, "In the medium term Northam will benefit from the additional flexibility which we will derive from mining different ratios of reef type; in the longer term this adds an opportunity to increase our sales offering to the market and represents a further step in our stated strategy of growing production to feed into the modular build-up of the Heraeus Refinery SA."

Booysendal platinum project – shallow ounce growth into the future

The Booysendal bankable feasibility study is on track for completion in the first half of F2010, according to plan. The expectation that Booysendal’s development will be modular, with an incremental production build-up, remains unchanged. Optimisation studies on alternative mine designs have been completed, and have confirmed that a mechanized approach remains the preferred and lowest cost option.

Commenting on Booysendal’s development Lewis said, "We are initially focusing on developing a 120 000 tpm production unit which will be replicated as market conditions and the availability of power allow. This approach gives us the flexibility to manage our capital expenditure and production in line with prevailing market conditions."

Lewis added, "At current spot metal prices, Northam remains cash positive at an operating level, has no debt and should be able to develop Booysendal from a combination of internal retentions and medium-term loan finance."

Prospects

Production of metals in concentrate is expected to be marginally lower in the second half of the year, whilst sales of PGMs are expected to be in line with those of the first half. Given the prevailing uncertainty in the global economic climate, and its dampening effect on commodity prices, the rand PGM basket price is likely to remain at current levels in the medium term. This should result in earnings in the second half of the financial year being lower than the first half.

Distributed by:

Russell and Associates
Tel: +27 (0)11 880 3924
Fax: +27 (0)11 7880 3788

Johannesburg, 14 January 2009. Shareholders are advised that the company’s earnings per share and headline earnings per share for the six months ended 31 December 2008 are estimated to be between 100 and 120 cents. This compares with the 199 cents per share reported for the previous comparable period ended 31 December 2007.

The anticipated decline in earnings stems from the effects of inflation and increased production on operating costs and the increase in the number of shares in issue during the period under review.

The weighted average number of shares in issue as at 31 December 2008 was 326 813 788, compared with 237 529 261 as at 31 December 2007.

The planned rebuild of the smelter was completed on schedule and within budget and the smelter was re-commissioned during December 2008. The remaining metal derived from stockpiled concentrate is being processed during the second half of the 2009 financial year.

The forecast earnings have not been reviewed by the company’s auditors.

It is anticipated that the interim results for the six months ended 31 December 2008 will be released on or about 5 February 2009.

Johannesburg
14 January 2009

Sponsor:

Barnard Jacobs Mellet Corporate Finance (Pty) Limited

Renewal of cautionary announcement regarding the following proposed inter-conditional transactions:

1. The unbundling by Mvela Resources of its entire shareholding in Northam to its shareholders;
2. The acquisition by Implats of the entire issued share capital of Northam; and
3. The acquitision by Implats of the entire issued share capital of Mvela Resources, post the unbundling of Northam.

Shareholders of Mvela Resources, Northam and Implats (“Shareholders”) are referred to the joint cautionary announcement by Mvela Resources, Northam and Implats (“the Parties”) dated 19 November 2008 regarding the proposed acquisition by Implats of the entire issued share capital of Mvela Resources and Northam through a series of inter-conditional transactions (“the Proposed Transaction”).

Discussions regarding the Proposed Transaction are continuing. Shareholders will be notified of any further developments in due course and are advised to continue to exercise caution in their share dealings until a further announcement is made.

Johannesburg
7 January 2009

Financial advisor to Implats:
Morgan Stanley South Africa (Pty) Ltd

Legal advisor to Implats:
Bell Dewar Inc.

Financial advisors to Mvela Resources:
JPMorgan Chase Bank N.A. (Johannesburg branch) and
N M Rothschild & Sons South Africa (Pty) Ltd

Legal advisor to Mvela Resources:
Bowman Gilfillan

Independent expert advisor to Northam and Mvela Resources:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited

Legal advisor to Northam:
Brink Cohen Le Roux Inc.

Sponsor to Implats:
Deutsche Securities (SA) (Pty) Ltd

Sponsor to Mvela Resources:
JPMorgan Equities Ltd

Sponsor to Northam:
Barnard Jacobs Mellet Corporate Finance (Pty) Ltd