Announcements 2013

Johannesburg, Friday 13 December 2013. The management of Northam Platinum advises that after a strike of six weeks, at its Zondereinde operation, by members of the National Union of Mineworkers, NUM’s demands, in aggregate, remain at an increase of 16% on basic wages. In addition NUM demands an increase of 69% in the living out allowance.

Northam therefore has informed the CCMA that its final offer of wage increases ranging between 8% and 9% for non core and core employees in the A and B categories and an 8% increase in the living out allowance, conditional on a two year wage agreement, remains on the table.

Northam has further proposed to the CCMA that, in the light of NUM’s intransigent position, that the CCMA’s mediation process be held in abeyance until the New Year.

Striking employees have lost R74 million in wages.

Northam’s revenue losses to date amount to some R450 million, with expected losses of R500 million for the year.

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

Northam shareholders are referred to the announcements published on SENS on 20 September 2013 and 1 November 2013, as well as the circular to shareholders issued on 18 November 2013 (circular), setting out the details of Northam’s fully subscribed R600 million renounceable claw-back rights offer of 15 million new Northam ordinary shares (claw-back shares) in the ratio of 3.92068 claw-back shares for every 100 Northam ordinary shares held on Friday, 15 November 2013, at a subscription price of R40 per claw-back share (offer).

As set out in the circular, pursuant to the commitment agreement entered into between Northam and Coronation Asset Management Proprietary Limited (subscriber), the offer was fully subscribed for.

The offer closed at 12:00 on Friday, 6 December 2013 (record date). The results of the offer are as follows:

The claw-back shares will be issued today, Monday, 9 December 2013.

Dematerialised shareholders registered as such on the record date (or their renouncees), who validly subscribed for claw-back shares, will have their accounts with their central securities depository participant or broker credited with the claw-back shares to which they are entitled today, Monday, 9 December 2013.

Certificated shareholders registered as such on the record date (or their renouncees), who validly subscribed for claw-back shares, will have share certificates in respect of the claw-back shares to which they are entitled posted to them via registered post, at their own risk, today, Monday, 9 December 2013.

Sponsor and Debt Sponsor
One Capital

Johannesburg, 28 November 2013. Text of a letter delivered to Messrs. F Baleni, E Tantsi and J Moloko of the NUM on 28 November 2013.

The management of Northam is in receipt of your memorandum ‘Grievances to Northam Platinum Limited’ dated 26 November 2013.

Prior to dealing with the contents of the memorandum, may we compliment the NUM and its members on their conduct during the march on Tuesday, 26 November.

In respect of the memorandum, we have scrutinised all of the issues raised and respond below. We remind you that the dispute is in respect of wages and conditions of service, and will therefore limit our response to these matters only.

There are five main issues raised in your memorandum:

• Wage increases and housing/living-out allowance
• Negotiating in good faith
• Hydro-power
• Maternity leave
• Communication with employees.

We will deal with each issue in turn below.

Wage increases:

Your demand for an across-the-board wage increases of R2,100 per month for core employees and R2,000 per month for non-core employees in category 2-8 amounts to increases of between 22% to 43%. A further increase in the housing/living-out allowance from R2,200 per month to R3,718 per month equates to a 69% increase. Thus, you are seeking an entry level wage increase of around 61%.

The company cannot afford the proposed wage increase or the increase in housing/living-out allowance, not even in a staggered manner in the short term.

Further, any rise in the settlement would inform the affordability of any other issues still in dispute. You are reminded that some demands had been agreed to in principle, providing an amicable settlement in regard to the above is reached.

Management has been mandated to ensure an affordable and sustainable outcome to the wage negotiations, in order to ensure the future sustainability of the mine. The offer of 8.5% (9% inclusive of Service Increment) for core employees and 7.5% (8% inclusive of Service Increment) for non-core employees, and an increase of 8% per year in the living-out allowance for categories 2-8 employees, for the next two years, is a very responsible and fair offer. It must be noted that this is the highest in the mining industry agreed this year, and above that of the gold sector in which the NUM is the dominant union. Given the settlements elsewhere in the industry, to which NUM is party, we are unable to understand NUM’s current position and its refusal to make concessions.

Considering the mine’s financial position, the current economic climate and the depreciating basket price we receive for our metals which has been below the gold price for several years, management must and will continue to act in the best interest of all stakeholders. The company therefore is unable to countenance acceding to NUM’s demands.

Negotiating in good faith:

We take issue with the NUM’s allegation that the company has not bargained in good faith. Good faith bargaining has been a guiding principle of the company’s approach to these and all other negotiations. This is clearly evidenced by the moves and concessions that the company has made.

Negotiation, as you are well aware, is, by definition, a process of give and take. Making concessions is evidence of this.

During the private mediation processes NUM did not alter its demands at all, while the company made two consecutive improvements in its offer. Although the NUM referred the dispute to the CCMA for mediation, the NUM continued to make no concessions during this process. The commissioner declared the dispute unresolved, stating that the parties were too far apart.

At the request of Messrs Tantsi and Moloko, Northam tabled its final offer on 5 November. This was the company’s third revision. Further mediatory processes ensued, but still there was no movement in the demand made by the NUM. It is simply not possible to ‘negotiate’ if only one party ever moves, and the other party maintains its position. We therefore call on NUM to show good faith in its approach to these negotiations.

Hydro-power

There is no scientific evidence of any ill-effects of hydro-power. The benefits of hydro-power are significant in terms of occupational health – cooler conditions, reduced noise, and reduced dust in underground environments.

Northam has been operating on hydro-power for more than 20 years. Other mines in the industry also use hydro-power. That said, should the union wish to raise specific and well-founded concerns, then the company would address them.

We must also take issue with the principle embedded herein. It would be unconscionable for the company to condone employees working in harmful working conditions or compensate employees for working in such harmful working conditions. Should harmful working conditions exist, those conditions need to be addressed.

Maternity leave

There is no industry policy relating to paid maternity leave. Different companies have different policies in place. The Basic Conditions of Employment Act provides for four months unpaid leave. Northam goes further than that, and pays one month of paid leave as well. It should also be noted that Northam bears the cost of pregnant employees not being able to work underground during and immediately after their pregnancy.

Communication with employees

It is management’s right and indeed responsibility, to communicate with employees. We will continue to do so. We will also continue to communicate with the company’s many and varied stakeholders who are affected by the strike action. Again, it is our responsibility to do so.

Now more than ever, it is of critical importance that information is shared in a transparent fashion. The very future of our mine and livelihoods of our employees, their dependents and many, many other interested parties are at stake.

In conclusion

The continued strike brings the affordability of the current offer into question. Similarly, it threatens our ability to consider other non-wage related demands, or our ability to avoid job losses.

May I remind you of one of the basic tenets of the Framework Agreement for a Sustainable Mining Industry, forged under the auspices of the Deputy President and to which the NUM is a signatory, “Workers, the unemployed and vulnerable groups are the biggest losers in unstable economic conditions. Our experience from the 2008 global financial crisis highlights that job losses are often difficult to reverse and that regaining market share is not easy for firms given the high levels of global competition.”

It goes on to say that in order to ‘succeed’, the framework agreement requires stakeholders to dedicate “... the necessary capacity and time; accept that economic realities constrain our decisions; and communicate their commitments as well as progress in implementation consistently and strongly to their members”.

The management of Northam remains willing to engage with NUM leadership, to reach and finalise an amicable settlement. We urge the NUM to reconsider its substantive position with regard to wages and to communicate openly and honestly with all affected parties.

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

Johannesburg, 26 November 2013. The management of Northam Platinum confirms receipt of a memorandum delivered to the company’s corporate office in Johannesburg today, Tuesday 26 November following a march by members of the National Union of Mineworkers (NUM).

Northam financial director Ayanda Khumalo took delivery of the memorandum on behalf of the company. In accepting the union’s demands, Mr Khumalo acknowledged the disciplined approach of the marchers and the peaceful nature of the protest.

The company will review the memorandum and respond to the union as soon as practicably possible.

Memorandum presented to Northam by the NUM, 26 November 2013. (PDF - 82KB)

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

The management of Northam advises that the talks held at the Commission for Conciliation, Mediation and Arbitration (CCMA) on Friday 15 November 2013 to resolve the current impasse between the National Union of Mineworkers (NUM) and the management of the Zondereinde division of the company were inconclusive.

The company’s offer of a 9% increase for core and 8% for non-core employees, and an 8% increase in the living out allowance, remains unchanged. This offer, made on 5 November, is inclusive of a 0.5% service increment.

The NUM’s demands remain as follows for category 2-8 employees (A and B band employees)

• An increase for non-core employees of R2 000 on basic wages (equivalent to 22% - 42% at the lowest levels);
• An increase for core employees of R2 100 on basic wages (equivalent to 23% - 43% at the lowest level);
• The living out allowance to be increased by 69% from R2 200 to R3 718 monthly staggered in two tranches over six months.
• No multi-year agreement.

Northam has indicated its willingness to continue with facilitated talks, and is encouraged by the NUM’s positive reaction to further discussions.

Johannesburg
18 November 2013

Sponsor and Debt Sponsor
One Capital

Johannesburg, Wednesday 13 November 2013. The board of Northam Platinum has taken note of a memorandum delivered by the NUM to Zondereinde management on Tuesday 12 November requesting its involvement in the wage negotiation process. The directors would like to clarify the respective roles and functions of the board and management as follows:

• The board’s role is to provide management with a mandate in the wage negotiation process, not to get involved in the day to day management functions.
• The board conscientiously considered all the relevant factors before having provided management with a wage negotiation mandate.
• At all times executive management updates the board on developments at the negotiating table.

The company would like to reiterate that the union has not indicated any willingness to move from its demand for basic wage increases of R2 000 and R2 100 per month for core and non-core employees respectively, and a living out allowance of R3 718. These demands equate to wage increases of between 22% and 43% and an increase in the living out allowance of 69%. In addition to the basic wage demands above, all the other demands would have the effect of increasing the company’s wage bill by 61%.

Management has acted on the board’s mandate. The company has revised its offer three times. Given the economic conditions in the platinum industry, the current offer is the maximum the company can afford for the business to remain sustainable, and is at the top end of all other settlements in the industry to date. Furthermore, the longer the mine stands, the less affordable the offer becomes.

The NUM has continued to indicate its unwillingness to talk about percentage increases and its preference to deal with the actual quantum. The company’s offer has been presented to the NUM in both formats. For comparability purposes the company’s offer for a two year agreement is presented in the tables below in both percentage and quantum terms:

* For 2014 the higher of CPI+1 or the above

* For 2014 the higher of CPI+1 or the above

A further meeting under the auspices of the CCMA has been scheduled for Friday 15 November 2013.

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

Johannesburg, Wednesday 6 November 2013. Northam shareholders (“shareholders”) are advised that at the annual general meeting of shareholders held on Wednesday, 6 November 2013, all the ordinary and special resolutions as set out in the notice of annual general meeting dated 27 September 2013, were approved by the requisite majority of shareholders present or represented by proxy thereat, with the exception of ordinary resolution no.5 (approval of the group remuneration policy) and ordinary resolution no.8 (approval for the issuing of equity securities for cash).

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

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

Johannesburg, 4 November 2013. The management of the Zondereinde division of Northam advises that all stoping and development related activities were suspended last night, Sunday 3 November 2013, when employees did not report for duty.

Further talks between the National Union of Mineworkers and management have been proposed for Tuesday 5 November 2013.

All other services to keep the mine functional are continuing, including ventilation, pumping and smelting operations.

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

Johannesburg, 31 October 2013. The management of the Zondereinde division of Northam advises that it has been served with a notice to strike by the National Union of Mineworkers (NUM) after the NUM rejected the company’s revised wage offer during a two-day facilitation process earlier this week.

The facilitation process followed on from the parties’ failure to reach agreement on wage increases and other issues for the 2014 financial year at the talks held on Friday 25 October 2013 under the auspices of the CCMA. The company tabled an improved offer, with increases ranging from 7.0% and 8% for the first year, and between 7.0% and 7.5% for year 2, or CPI +1%, whichever is the higher. The previous offers tabled ranged from 6.5% to 7.5% and 6.5% to 7%, or CPI +1%.

Northam has not been advised of any change in the demands of the NUM, which include, among other things:

• No multi-year wage deal
• Distinction between core (production employees) and non-core employees
• The demand for non-core employees is an increase of R2 000 on basic wages (equivalent to 22% - 42% at the lowest levels)
• The demand for core employees is an increase of R2 100 on basic wages (equivalent to 23% - 43% at the lowest level)
• The living out allowance to be increased by 69% from R2 200 to R3 718 monthly.

Combined the NUM demands equate to an average increase of 61%.

The company’s revised offer would add approximately R117.3 million to the current annual wage bill of R1.3 billion.

The strike is expected to begin with effect from the night shift on Sunday 3 November 2013, should the parties not be able to reach an agreement within the next 48 hours.

General manager Danny Gonsalves noted that management will continue to seek to engage with the union in a constructive manner to achieve an outcome which is acceptable to both parties, and ultimately to ensure the sustainability of the operation – and jobs – in the long term.

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

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

Johannesburg

Sponsor
One Capital

Northam Platinum today announced the details of a funding programme to the value of R1 billion which comprises a R600 million fully subscribed claw back rights offer and a R400 million additional revolving credit facility. In addition, certain covenant restrictions have been lifted on the revolving credit facility.

In terms of the claw back rights offer 15 million new Northam ordinary shares will be offered to shareholders at a price of R40 per share, representing a total subscription consideration of R600 million. The claw back offer has been fully subscribed by Coronation Asset Management (Proprietary) Limited. Further details of the claw back offer, the revolving credit facility and covenant holiday are available in an unabridged SENS announcement on the company’s website. (PDF - 62KB)

A challenging economic and operational environment has beset the South African mining industry for an extended period of time, with depressed platinum group metal basket prices, volatile exchange rates, rising costs and a complex industrial relations environment being at the forefront of the industry’s challenges. In addition to these, Northam has had to deal with the following specific circumstances:

• the effects of a three-week strike at the Zondereinde division which resulted in revenue losses of R192 million;
• capital outlay of approximately R55 million associated with the rebuild of the smelter at Zondereinde, along with the toll treatment costs and the considerable lengthening of the working capital pipeline and increased cost of production during the toll treatment period ; and
• funding the balance of the Booysendal capital expenditure programme amounting to approximately R530 million in the 2014 financial year .
• funding of Zondereinde’s ongoing capital programme

After an extensive board and executive management review of the company’s capital and funding requirements, it was agreed to implement a balanced funding programme, with a view to:

• strengthen the company’s balance sheet with a moderate equity injection, amounting to less than 4% of the company’s current issued share capital in order to provide for a portion of Northam’s permanent capital requirements, against the backdrop of the R4 billion capex programme at Booysendal, which is now nearing completion;
• strengthening Northam’s medium-term funding capacity through the introduction of a new revolving credit facility, and
• pro-actively address Northam’s key short to medium term potential borrowing risks and exposure, by introducing amendments to its revolving credit facility.

A circular with details of the claw back offer will be posted to shareholders on or about 18 November 2013. The claw back offer remains conditional upon, inter alia, approval by the JSE of the listing of the claw back shares and the related circular.

Issued by Russell & Associates
Johannesburg
20 September 2013

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

JIBAR rates as at 4 September 2013: 3 Month 5.133%

*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.

Sponsor and Debt Sponsor
One Capital

Booysendal mine successfully commissioned

Johannesburg, Thursday 15 August 2013. Northam Platinum Limited (Northam) posted results for the year ended 30 June 2013 to shareholders today.

Key features for the year:

• Operational recovery at Zondereinde sustained
• Sales revenues increase by 20% to R4.4 billion
• Operating and unit cash cost increases well contained
• Operating margin 13.7%
• Booysendal mine successfully commissioned
• Earnings per share 62.6% higher

Reviewed preliminary results for the year ended 30 June 2013 (PDF - 590KB)

Financial results

Northam posted improved results year on year on the back of higher sales volumes combined with the weakness of the rand which contributed to a 20.0% increase in sales revenues to R4.4 billion (F2012: R3.7 billion).

Metal sales were up by 7.3% to 10 704kg (F2012: 9 980kg) and over the reporting year the rand had weakened by 13.5% against the US dollar to an average of R8.82/US$. At the same time the average US dollar price realised during the period declined by 5.1% from US$1 345 per ounce to US$1 276 per ounce (3PGE+Au).

Cost of sales increased by 14.0% to R3.8 billion, driven by higher volumes sold and higher operating costs. Operating costs were up by 7.3%, reflecting the sustained impact of higher labour and power costs - the most significant components contributing to mining inflation in South Africa. The cost of sales was also adversely impacted by a 60.6% increase in refining costs owing to a weaker ZAR/Euro exchange rate and the outsourcing of smelter services.

Investment revenues were 38.0% lower at R33.4 million (F2012: R54.0 million) owing to the depletion of cash reserves which were used for the construction of the Booysendal mine. After taking account of finance charges incurred, and increases in sundry income, the operating profit increased by 70% to R607.7 million.

Operations – Zondereinde mine

The safety performance at the Zondereinde mine was improved year on year, with some notable achievements in reducing both fatalities and injury rates.

Tonnages milled at Zondereinde mine were 9.4% up at 2 115 712 tonnes, yet the head grade was lower at 4.9g/t (F2012: 5.1g/t) – attributable largely to the lower average UG2 grade, reflecting some poor grade control. Chief executive Glyn Lewis explained that this would be a key focus area for management in the year ahead. In spite of the lower head grade, metal output from underground operations was 5.4% higher.

Production was badly impacted by a three-week strike by rock drill operators (RDOs) in April this year. Their dispute was centred on the payment methodology of production related bonuses. These differences have since been resolved. Wage negotiations for F2014 have begun at Zondereinde.

Operations – Booysendal mine

The group’s new Booysendal mine on the eastern limb was commissioned in the second half of the F2013 financial year. At 30 June 2013 the labour force numbered 1 915 people. Booysendal recorded a million fatality free shifts on 9 March 2013, a commendable achievement in start-up phase.

A total of 242 602 tonnes were milled in F2013, to produce 473kg of metal in concentrate which has been processed. To counter certain delays in the construction of conveyors and other services underground, management has taken on additional contractors in a temporary capacity to mitigate delays to the production ramp-up.

With the permanent power supply having been commissioned in early March this year, the cold and hot commissioning of the concentrator continued until the year end. During this phase, a number of issues have been identified for rectification. These have largely been remedied.

Lewis concluded today that the platinum industry in South Africa remains dominated by social and economic uncertainty, which is manifested in certain uncontrollable factors such the exchange rate between the US dollar and the South African rand, as well as the strong possibility of labour disruptions during F2014. “Northam’s performance will depend largely on a combination of market circumstances and international metal prices, a peaceful and productive labour force, and regular underground mining conditions.”

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

The Johannesburg Stock Exchange (JSE) has granted approval with effect from 11 July 2013 for the listing of a tap issue of NHM001 Senior Unsecured Floating Rate Notes, under the Northam R2 000 000 000 Domestic Medium Term Note Programme dated 3 August 2012.

Notes:

1. The tap issue notes were placed at a lower interest rate of Jibar plus 330bps, which is accounted for in the issue price.
2. The Notes will be immobilised in the Central Securities Depository (“CSD”) and settlement will take place electronically in terms of the JSE Rules.

11 July 2013

Debt Sponsor
One Capital

Northam Platinum management advises with regret that an employee lost his life in a fall of ground accident at the company’s Zondereinde mine yesterday afternoon, Monday 27 May 2013. One other employee sustained injuries in the accident. He is being treated in hospital and is in a satisfactory condition.

Mine management has notified the Department of Mineral Resources (DMR), while operations have been suspended at the mine pending a joint investigation into the cause of the accident by the DMR, Mine Management and organised labour.

The name of the deceased is being withheld until his next of kin have been advised.

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

Shareholders are informed that energy intensity at the Zondereinde mine smelter has been reduced from a maximum of 12 megawatts to a current average of 8 megawatts.

This reduction has been implemented to accommodate a series of ultrasonic and chemical tests to determine the extent of possible erosion of the refractory bricks comprising the walls of the smelter.

These tests will necessitate a reduction in the volume of concentrate treated in the smelter. Receipt of concentrate produced by Platmin Limited has been temporarily suspended. Captive concentrate produced in excess of the reduced capacity of the smelter will if necessary be treated at smelters operated by others on a toll basis.

Shareholders will be informed of the results of the tests as soon as they become available.

Johannesburg
16 May 2013

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

Northam management confirms that drilling operations resumed at Zondereinde this morning Tuesday, 23 April 2013. This follows an agreement between management and the National Union of Mineworkers (NUM) yesterday, Monday, 22 April 2013.

A Memorandum of Understanding signed between the two parties provides for the payment of ‘return to work’ compensation comprising a once off ex gratia payment equivalent to 50% of their basic wages for the duration of the strike period and R2 000.

Total production losses amount to 16 000oz 3PGE+Au with a current value of approximately R192 million.

Johannesburg
23 April 2013

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

Northam advises that the unprotected work stoppage at the company’s Zondereinde mine continued today, Monday 15 April 2013.

In an effort to resolve the impasse with striking rock drill operators, management has continued to engage with representatives of the National Union of Mineworkers (NUM) at national and regional level. The parties and the union have agreed on a review of the application of the mine’s productivity bonus system.

In terms of a Labour Court interdict the current work stoppage at Zondereinde is unprotected. Employees are urged to return to work, and to engage through the established and agreed dispute resolution procedures. Employees have been reminded that failure to heed the terms of the interdict could lead to dismissals.

To date, Northam has lost around 10 600 ounces of 3PGM + Au and around R122.1 million in revenues.

Shareholders will be kept informed of further developments.

Johannesburg
15 April 2013

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

Further to the notice to shareholders issued on Friday 5 April 2013, Northam advises that striking rock drill operators at Zondereinde have failed to resume their duties in spite of an ultimatum issued to them before close of business on Monday 8 April 2013. The company will now follow due process which could result in the dismissal of the affected employees.

The protracted interruption in drilling operations has a detrimental effect on underground working conditions, which could pose a safety risk, and which will deteriorate further if normal operations are not resumed expeditiously. A total of 165kg (5 300 ounces) of metal in concentrate has now been lost, with revenue losses amounting to R62.7 million.

Shareholders will be kept informed of further developments.

Johannesburg
9 April 2013

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

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

JIBAR rates as at 4 March 2013: 3 Month 5.100%

*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.

6 March 2013

Debt Sponsor
One Capital

Shareholders are advised that the group’s earnings and headline earnings per share for the six months ended 31 December 2012 are estimated to be between 30% and 45% lower than in the previous comparable period. Earnings per share of 51.8 cents and headline earnings per share of 51.9 cents were reported for the six months ended 31 December 2011.

The anticipated decline in earnings reflects the finance costs incurred on borrowings and a higher effective tax charge during the period under review. Operating profit for the six months ended 31 December 2012 is expected to be higher than for the period ended 31 December 2011.

The weighted average number of shares in issue for the period ended 31 December 2012 was 382 536 125, compared to 382 416 190 shares in issue for the period ended 31 December 2011.

This estimate has not been reviewed or reported on by the company’s auditors.

It is anticipated that the interim results for the six months ended 31 December 2012 will be released on or about 22 February 2013.

Johannesburg
5 February 2013

Sponsor:
One Capital