Announcements 2012

Noteholders are hereby advised of the interest rate reset on the following Note:

JIBAR rates as at 4 December 2012: 3 Month 5.125%

*When the Interest Payment Date falls on a non-business day, one of the following business day conventions will be applied, as specified for each individual bond in its applicable pricing supplement:

1. Following: Means interest will be paid on the first business day after the weekend or public holiday.

2. Modified Following: Means interest will be paid on the first business day after the weekend or public holiday. However, if the first business day after the weekend or public holiday falls in a new calendar month, interest will then be paid on the last business day before the weekend / public holiday.

3. Preceding: Means interest will be paid on the last business day before the weekend or public holiday.

7 December 2012

Debt Sponsor
One Capital

Northam shareholders (“shareholders”) are advised that at the annual general meeting of shareholders held on Wednesday, 7 November 2012, all the ordinary and special resolutions as set out in the notice of annual general meeting dated 28 September 2012, were approved by the requisite majority of shareholders present or represented by proxy thereat.

The required special resolutions will be lodged with the Companies and Intellectual Property Commission in due course.

Johannesburg
7 November 2012

Sponsor
One Capital

Notice of annual general meeting

The annual general meeting of Northam shareholders will be held in Room HB1, Hackle Brooke, 110 Conrad Drive, corner Jan Smuts Avenue and Conrad Drive, Craighall, Johannesburg, South Africa on Wednesday, 7 November 2012 at 10h00 to transact the business as stated in the notice of annual general meeting, forming part of the abridged annual report 2012 (“notice and abridged report”).

No change statement

Shareholders are advised that the summarised audited financial statements for the 12 months ended 30 June 2012 as contained in the notice and abridged report 2012, will be distributed to shareholders on Friday, 5 October 2012. The audited annual financial statements 2012 contain no material modifications to the reviewed preliminary results, which were published on SENS on 24 August 2012.

The annual integrated report 2012 containing the full audited annual financial statements, the sustainable development report 2012, and the notice and abridged report 2012, are available throughout our website or can be obtained from the company’s registered office on request.

Annual integrated
report 2012
View online

Sustainable
development report
2012 View online

Notice of AGM and abridged annual report 2012 Download (PDF - 675KB)

Memorandum of Incorporation Download (PDF - 209KB)

Johannesburg
5 October 2012

Sponsor
One Capital

In accordance with Section 122(3)(b) of the Companies Act, No 71 of 2008, as amended and paragraph 3.83(b) of the JSE Listings Requirements, Northam shareholders are advised of the following:

• The company has received notification that the funders of Newshelf 848 Proprietary Limited (“Newshelf”) a subsidiary of Afripalm Resources Proprietary Limited, have disposed of 37 248 400 Northam shares. Consequently, Newshelf no longer has a beneficial interest in Northam (“the Disposal”).
• The company has received notification that the Public Investment Corporation (“PIC”) (on behalf of the Government Employees Pension Fund (“GEPF”)) has acquired a beneficial interest in securities of the company (“the PIC Acquisition”). Following the PIC Acquisition, PIC now holds 18.9% of the issued ordinary share capital of the company.

Johannesburg
5 September 2012

Sponsor
One Capital

Introducing the group’s results for the year ended 30 June 2012, chief executive Glyn Lewis said today the platinum mining business had been particularly challenging during the past year with poor economic fundamentals, safety stoppages and labour relations issues to deal with. He added, “More recently, and more disturbing, have been the tragic and troubling events at Marikana. We hope that the experiences of recent days will have had a sobering effect on all parties and that logic and discipline will prevail going forward throughout the industry.”

Key features for the year:

• Solid operating performance at Zondereinde
• Increase in PGM concentrates produced
• Unit cash cost increases well contained to 1.7%
• Satisfactory progress at Booysendal
• Credit facilities of R1.65 billion secured

Financial performance

The ready supply of mine platinum group metals (PGMs) to the market continued largely undiminished, and combined with the increased volumes of recycled metal resulted in a protracted period of market surplus. Metal prices reacted accordingly and weakened notably in recent months. In dollar terms the average PGM basket price was 6.5% lower year on year, at US$1 345/oz (F2011: US$1 439/oz). In spite of a weakening of the rand, averaging 10.7% over the year, the rand basket price received increased only marginally to R335 325/kg (2011: R323 899/kg).

Sales volumes were virtually flat year-on-year at 9 980 kg (320 861 oz) resulting in largely unchanged revenues at R3.7 billion (F2011: R3.6 billion). Higher production levels translated into a 16.6% rise in operating costs, which on a unit level were contained to 1.4%. Nevertheless, the higher volumes did little to stem to decline in the profit margin, dropping to a low of 9.2%.

Zondereinde mine

Higher tonnages and grades at the Zondereinde mine translated into PGM output rising by 15.4% to 8 979 kg (288 675 oz). Mining on the Merensky reef horizon continues to be challenging. However, ore reserve development on 15 level is in progress, with increased volumes expected from H1 2013. The furnace at Zondereinde is currently being rebuilt following a run-out at the smelter earlier in the year. The furnace should be operational again by the end of September 2012. In the interim Northam has been using third party toll-smelting facilities.

Booysendal mine

Steady progress continues to be made at the company’s new Booysendal mine. More than 4500 metres of underground development has been completed and the reverse decline system has been connected with the on-reef declines. “This is a significant milestone in the development programme and is a credit to the management at Booysendal,” said Lewis.

The reverse decline is currently being equipped with a conveyor while preparations for the installation of a chairlift, underground pumps and ventilation fans are on track.

On surface, construction of the concentrator plant and other mine infrastructure is well advanced. The plant is likely to completed by the end of H1 F2013, but hot commissioning remains subject to the availability of Eskom power. The company is currently working with Eskom to resolve the difficulties associated with access to and construction of a powerline over an Eskom servitude east of the mine. Subject to the resolution of this situation, production remains on track for H2 of F2013.

A total of R1.7 billion has been spent in the current year on the development of this mine. Estimated capex in F2013 is estimated at R1.3 billion. A total of R2.5 billion of Booysendal’s development has been funded from internally generated cash resources.

Financing arrangements

In order to meet its funding requirements, Northam secured a five-year revolving credit facility for an amount of R1 billion in November 2011. A further R650 million bridging loan facility is in place.

The company is currently engaged in raising additional third party debt funding to cover the completion of phase 1 of the Booysendal mine, the deepening project at the Zondereinde mine as well as other operational and working capital requirements of the group.

In conclusion

Looking forward Lewis pointed to continued economic uncertainties in global markets which are expected to weigh on PGM prices for the foreseeable future. “Whilst we will endeavour to improve output from our operations, which may also be affected by recent events in the industry, the outlook for earnings growth is subdued.”

Issued by
Russell and Associates
Johannesburg
Tel +27 11 880 3924

Northam shareholders are advised that an unauthorised land occupation on the farm Schaapkraal 42JT to the east of the Booysendal mine has resulted in delays to the installation of a permanent power supply to the Booysendal mine.

Eskom’s sub-contractors are being prevented from completing the installation of a power line on an Eskom servitude from the national Eskom grid to the Booysendal mine

The company and Eskom are taking steps to protect their rights and to minimise further delays.

Johannesburg
19 July 2012

Sponsor
One Capital

Section 54

The management of Northam advises that mining operations resumed on the night shift of Friday, 25 May 2012 at the No 1 shaft of the company?s Zondereinde division following the upliftment of the section 54 instruction. As per the company?s previous advice to shareholders, the affected shaft was closed on Tuesday, 22 May 2012.

Smelter

Further to the announcements published on SENS on 11 May 2012 and 15 May 2012, the company advises that a toll smelting and refining agreement has been finalised with a third party. The toll agreement will have no effect on the company’s revenue or costs in the current financial year.

The previous guidance in the announcement dated 15 May 2012 indicating an anticipated R300 million drop in revenue in the financial year ending 30 June 2012 remains valid.

Johannesburg
28 May 2012

Sponsor
One Capital

Further to the announcement issued by Northam on Friday, 11 May 2012 advising of a smelter run-out at its Zondereinde mine, and following an assessment of the associated damage to the smelter, Northam management has advised that it is implementing plans to rebuild the smelter as soon as is practicably possible.

The rebuild, originally scheduled for the next financial year, could take up to four months to complete. Northam is currently in discussions to secure alternative smelting services in order to contain the impact on the company.

Commensurate with the lower sales volumes, revenues for the financial year ending 30 June 2012 are likely to be some R300 million lower than anticipated owing to the interruption to metals processing in the last two months of the year. These revenues should be realised in the next financial year when the metal will be sold.

Mining and concentrating activities are continuing at the Zondereinde mine.

Johannesburg
15 May 2012

Sponsor
One Capital

Shareholders of Northam are advised that Mr P L (Lazarus) Zim, chairman of the board, has withdrawn Mr A K Gupta as his alternate director, effective 5 April 2012.

Johannesburg
5 April 2012

Sponsor
One Capital

Northam Platinum has issued its half-year results for the period ended 31 December 2011 today, Friday 24 February 2012.

Key developments in the period:

• Improved production at Zondereinde
• Two-year wage deal signed
• Ongoing solid progress at Booysendal
• Financing secured
• Revenues reach R2 billion
• Earnings 161% higher at R198.2 million.

Northam’s improved results for the half-year emerged largely on the back of Zondereinde’s performance. Metals in concentrate produced at the company’s western limb operation were 27% higher at 4 592kg (147 636oz). The higher rand basket price, averaging R341 725/kg (F2011 H1: R308 886/kg) over the period, helped to boost sales revenues to almost R2 billion.

In tandem with the higher volumes, and also reflecting the increases in mining input costs, total operating costs were higher by 24.2%. Inversely, however, unit operating costs declined by 3.3% year on year. As anticipated, the higher volumes also translated into higher refining costs, which were further impacted by the weakening of the rand against the euro by 11.6%.

Headline earnings rose by 161.6% to R198.3 million. The board declared a dividend of 5 cents per share, indicating the requirement to conserve cash to finance the group’s growth ambitions.

The increased momentum in the construction and development activities at the Booysendal mine led to the higher cash flows utilised in investing activities, which rose to R899.3 million in the period. The group’s cash position remains healthy, largely unchanged year-on-year at R972.1 million.

Zondereinde – an improved performance

Total tonnes milled at Zondereinde increased by 44.0% to 998 598 tonnes. The head grade was lower at 5.0g/t, reflecting the higher ratio of UG2 reef volumes mined. Metals in concentrate produced increased by 26.5% to 4 592kg (147 636oz), while metal sales rose to 5 295kg (170 238oz). Northam chief executive Glyn Lewis told the investment community today that mining conditions on the Merensky reef continue to be challenging. “However,” he added, “steady progress is being made in improving mining flexibility on the western side of the mine. In addition, the deepening project, with the aim of reaching more conformable Merenksy reef, is ongoing. Volumes from this area should pick up towards the end of H1 F2013.”

Booysendal – solid progress

Steady progress continues at the group’s new Booysendal mine on the eastern limb of the Bushveld Complex.

“Reef exposure has confirmed our expectations of structure and grade,” says Lewis, “while bulk surface earthworks are now largely complete and the focus is now on mechanical and electrical construction of plant infrastructure and the erection of mine buildings.”

A total of R785.2 million has been spent in the current period for the development of this mine. The estimated capital expenditure for F2012 is expected to be R1.8 billion. During the year Northam concluded an agreement to raise a R1.0 billion revolving credit facility, in line with the group’s previously stated funding strategy.

Outlook

Lewis pointed to the challenges at Zondereinde, indicating that the pace of the recovery will be largely determined by geological and mining conditions. Production in the second half of the year is likely to be slightly lower than that of H1 owing to more public holidays in the period, while costs are anticipated to be reasonably contained. In the absence of any untoward disruptions to production, and if the rand basket price were to remain at current levels (R335 000/kg) (F2011: R323 899/kg), earnings for the year are anticipated to increase.

Issued by
Russell & Associates
Johannesburg
Tel +27 11 880 3924