Announcements 2016

Dealings in securities

In compliance with paragraph 3.63 of the JSE Limited Listings Requirements (“JSE Listings Requirements”), the dealings in securities by a director of the company and a director of a major subsidiary are as follows.


In compliance with paragraph 3.63 of the JSE Limited Listings Requirements (“JSE Listings Requirements”), the dealings in securities by a director of the company and a director of a major subsidiary are as follows:

Name of director Ayanda Zemini Khumalo
Nature of transaction Purchase of shares
Class of securities Ordinary shares
Date of transaction 22 December 2016
Price per ordinary share

Various different trades with the following price information:

  • volume weighted average price of R38.20;
  • highest price of R38.24; and
  • lowest price of R38.16
Total number of ordinary shares 5 000
Value of transaction R190 975.00
Nature and extent of director’s interest Direct beneficial
Transaction completed on market Yes
Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements Yes
Name of director of major subsidiary   Leon Charl van Schalkwyk
Name of major subsidiary Booysendal Platinum Proprietary Limited
Name of major subsidiary Purchase of shares
Class of securities Ordinary shares
Date of transaction 22 December 2016
Price per ordinary share

R37.50

Total number of ordinary shares 26 500
Value of transaction R993 750.00
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
23 December 2016

Sponsor and Debt Sponsor
One Capital

Dealings in securities

In compliance with paragraph 3.63 of the JSE Limited Listings Requirements (“JSE Listings Requirements”), the dealings in securities by a director of the company are as follows:


In compliance with paragraph 3.63 of the JSE Limited Listings Requirements (“JSE Listings Requirements”), the dealings in securities by a director of the company are as follows:

Name of director Paul Anthony Dunne
Nature of transaction Purchase of shares
Class of securities Ordinary shares
Date of transaction 21 December 2016
Price per ordinary share

Various different trades with the following price information:

  • volume weighted average price of R37.82;
  • highest price of R37.99; and
  • lowest price of R37.46
Total number of ordinary shares 26 050
Value of transaction R985 211.00
Nature and extent of director’s interest Direct beneficial
Transaction completed on market Yes
Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements Yes

Johannesburg
22 December 2016

Sponsor and Debt Sponsor
One Capital

Dealings in securities

Northam shareholders are advised that the company has made awards in accordance with the terms of the Northam Share Incentive Plan. These include the award of conditional shares relating to Northam’s BEE transaction (“BEE SIP Awards”), which awards were specifically approved by shareholders at the annual general meeting held on 9 November 2016.


Northam shareholders (“shareholders”) are advised that the company has made awards in accordance with the terms of the Northam Share Incentive Plan (“SIP”). These include the award of conditional shares relating to Northam’s BEE transaction (“BEE SIP Awards”), which awards were specifically approved by shareholders at the annual general meeting held on 9 November 2016. The BEE SIP Awards have been carved out of the existing total SIP allocation limit previously approved by shareholders on 5 November 2014, therefore the total SIP allocation limit has not been increased as a result of the BEE SIP Awards.

In compliance with paragraph 3.63 of the JSE Limited Listings Requirements (“JSE Listings Requirements”), the dealings by directors of the company, directors of major subsidiaries and the company secretary are as follows:

Name of director

Paul Anthony Dunne

Date of award acceptance

18 November 2016

Nature of transaction

Acceptance of awards in relation to Northam ordinary shares (“shares”) in terms of the SIP

Class of securities

Awards in terms of the SIP

Total number of shares covered by the awards

170 100

(42 900 retention shares with no performance conditions)

(127 200 performance shares with

performance conditions)

Vesting date

100% of the retention shares and depending on achievement of the performance conditions, between nil to 135% of the performance shares on 8 November 2019

Strike price

R nil

Value of transaction

-

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

Designation of director

Chief Executive Officer

Name of director

Paul Anthony Dunne

Date of award acceptance

18 November 2016

Nature of transaction

Acceptance of awards in relation to shares in terms of the SIP

Class of securities

Awards in terms of the SIP

Total number of shares covered by the awards

1 500 000 BEE SIP Awards with performance conditions

Vesting

100% of the BEE SIP Awards on achievement of the performance conditions by 18 May 2025

Vesting date

30 business days after the date on which the performance conditions are achieved

Strike price

R nil

Value of transaction

-

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

Name of director  

Ayanda Zemini Khumalo

Date of award acceptance

18 November 2016

Nature of transaction

 

Acceptance of awards in relation to shares in terms of the SIP

Class of securities

Awards in terms of the SIP

Total number of shares covered by the awards

82 900

(20 900 retention shares with no performance conditions)

(62 000 performance shares with performance conditions)

Vesting date

100% of the retention shares and depending on targets met in terms of the performance conditions, between nil to 135% of the performance shares on 8 November 2019

Strike price

R nil

Value of transaction

-

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

Designation of director

Chief Financial Officer

Name of director

Ayanda Zemini Khumalo

Date of award acceptance

18 November 2016

Nature of transaction

Acceptance of awards in relation to shares in terms of the SIP

Class of securities

Awards in terms of the SIP

Total number of shares covered by the awards

700 000 BEE SIP Awards with performance conditions

Vesting

100% of the BEE SIP Awards on achievement of the performance conditions by 18 May 2025

Vesting date

30 business days after the date on which the performance conditions are achieved

Strike price

R nil

Value of transaction

-

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

Name of director of major subsidiary  

Leon Charl van Schalkwyk

Name of major subsidiary

Booysendal Platinum Proprietary Limited

Date of award acceptance

18 November 2016

Nature of transaction

 

Acceptance of awards in relation to shares in terms of the SIP

Class of securities

Awards in terms of the SIP

Total number of shares covered by the awards

59 200

(14 900 retention shares with no performance conditions)

(44 300 performance shares with performance conditions)

Vesting date

100% of the retention shares and depending on targets met in terms of the performance conditions, between nil to 135% of the performance shares on 8 November 2019

Strike price

R nil

Value of transaction

-

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

 

Designation of director of major subsidiary

Chief Commercial Officer

Name of director of major subsidiary

Leon Charl van Schalkwyk

Name of major subsidiary

Booysendal Platinum Proprietary Limited

Date of award acceptance

18 November 2016

Nature of transaction

Acceptance of award in relation to shares in terms of the SIP

Class of securities

Awards in terms of the SIP

Total number of shares covered by the awards

500 000 BEE SIP Awards with performance conditions

Vesting

100% of the BEE SIP Awards on achievement of the performance conditions by 18 May 2025

Vesting date

30 business days after the date on which the performance conditions are achieved

Strike price

R nil

Value of transaction

-

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

Name of company secretary

Patricia Beatrice Beale

Date of award acceptance

18 November 2016

Nature of transaction

 

Acceptance of awards in relation to shares in terms of the SIP

Class of securities

Awards in terms of the SIP

Total number of shares covered by the awards

21 000

(5 300 retention shares with no performance conditions)

(15 700 performance shares with performance conditions)

Vesting date

100% of the retention shares and depending on targets met in terms of the performance conditions, between nil to 135% of the performance shares on 8 November 2019

Strike price

R nil

Value of transaction

-

Nature and extent of interest

Direct beneficial

Transaction completed on market

No

Clearance obtained in terms of paragraph 3.66 of the JSE Listings Requirements

Yes

Johannesburg

22 November 2016

<>Sponsor and Debt Sponsor - One Capital

John Smithies appointed to the board

[Media Release] Northam Platinum is pleased to announce the appointment of Mr JG (John) Smithies to the company’s board with effect from 1 January 2017.


Northam boosts its technical know-how

Johannesburg, Thursday 10 November 2016. Northam Platinum is pleased to announce the appointment of Mr JG (John) Smithies to the company’s board with effect from 1 January 2017.

Mr Smithies, a former chief executive at Impala Platinum Holdings Limited (Implats) is a mining engineer with 28 years’ experience.  He held a number of key senior management positions at Implats, including that of director of operations.

Northam chief executive Paul Dunne said today “John Smithies has a wealth of technical and mining experience in the South African PGM mining industry.  We look forward to sharing some of his wisdom.”

Mr Smithies will be a non-executive independent director on the Northam board.

Issued by

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

Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429

Appointment of independent non-executive director

[SENS] In compliance with paragraph 3.59(a) of the JSE Limited Listings Requirements, Northam shareholders are advised that Mr J G (John) Smithies has been appointed as an independent non-executive director to the board of Northam, with effect from 1 January 2017.


In compliance with paragraph 3.59(a) of the JSE Limited Listings Requirements, Northam shareholders are advised that Mr J G (John) Smithies has been appointed as an independent non-executive director to the board of Northam (“board”), with effect from 1 January 2017.

Mr Smithies is a mining engineer and has spent the majority of his career at Impala Platinum Holdings Limited (“Implats”), where he held a number of senior management positions including that of director of operations and chief executive officer, before retiring from Implats.

Mr Lazarus Zim, chairman of the board, commented, “Northam is pleased to welcome John to the board and we look forward to benefit from his extensive technical and hands-on mining experience in the platinum sector, which will further strengthen the company.”

Johannesburg
10 November 2016

Sponsor and Debt Sponsor
One Capital

Results of annual general meeting and retirement of director

Northam shareholders are advised that at the annual general meeting of shareholders held on Wednesday, 9 November 2016, the ordinary and special resolutions, as set out in the notice of AGM dated Friday, 23 September 2016, were approved by the requisite majority of shareholders present or represented by proxy at the AGM.


Northam shareholders (“shareholders”) are advised that at the annual general meeting (“AGM”) of shareholders held on Wednesday, 9 November 2016, the ordinary and special resolutions, as set out in the notice of AGM dated Friday, 23 September 2016, were approved by the requisite majority of shareholders present or represented by proxy at the AGM.

Mr Alwyn Martin retired from the board of directors (“board”) at the conclusion of the AGM. As recommended by the Northam nomination committee, Ms Hester Hickey has replaced Mr Martin as chairman of the audit and risk committee. The board would like to thank Mr Martin for his valuable contribution to the company during his tenure as a director of Northam.

The total number of Northam shares eligible to vote at the AGM is 509 781 212.

All resolutions proposed at the AGM, together with the number and percentage of shares voted, the percentage of shares abstained, as well as the percentage of votes carried for and against each resolution, are as follows:

Ordinary resolution number 1 – adoption of annual financial statements for the year ended 30 June 2016
Shares Voted ForAgainstAbstained

485 850 146

95.3%

100.0% 0.0% 0.0%
Ordinary resolution number 2.1 – re-election of Mr CK Chabedi as a director
Shares Voted ForAgainstAbstained

485 974 531

95.3%

100.0% 0.0% 0.0%
Ordinary resolution number 2.2 – re-election of Mr PL Zim as a director
Shares Voted ForAgainstAbstained

485 974 531

95.3% 96.3% 3.7% 0.0%
Ordinary resolution number 2.3 – re-election of Ms HH Hickey as a director
Shares Voted ForAgainstAbstained

485 974 531

95.3%

100.0% 0.0% 0.0%
Ordinary resolution number 2.4 – re-election of Mr TI Mvusi as a director
Shares Voted ForAgainstAbstained

485 974 531

95.3%

100.0% 0.0% 0.0%
Ordinary resolution number 3 – re-appointment of Ernst & Young Inc. as the independent external auditor of the company
Shares Voted ForAgainstAbstained

482 587 706

94.7%

84.4% 15.6% 0.7%
Ordinary resolution number 4.1 – re-election of Mr R Havenstein as a member of the audit and risk committee
Shares Voted ForAgainstAbstained

485 974 531

95.3%

92.6% 7.4% 0.0%
Ordinary resolution number 4.2 – re-election of Ms HH Hickey as a member of the audit and risk committee
Shares Voted ForAgainstAbstained

485 448 298

95.2%

99.7% 0.3% 0.1%
Ordinary resolution number 4.3 – re-election of Ms T E Kgosi as a member of the audit and risk committee
Shares Voted ForAgainstAbstained

485 974 531

95.3%

99.3% 0.7% 0.0%
Ordinary resolution number 5 – approval of the group’s remuneration policy
Shares Voted ForAgainstAbstained

484 876 523

95.1%

87.5% 12.5% 0.2%
Ordinary resolution number 6 – approval of amendments to the Northam Share Incentive Plan
Shares Voted ForAgainstAbstained

484 866 923

95.1% 77.7% 22.3% 0.2%
  • * A modification to the proposed amendments to the rules of the Northam Platinum Limited Share Incentive Plan (“SIP”), which have been made available for inspection at the company’s registered office, was tabled at the AGM prior to proposing this ordinary resolution number 6. In terms of the modification, any allocation or award under the new long term BEE transaction incentive plan will be subject to a maximum allocation of 5 000 000 shares, which number is included in the existing total SIP allocation limit of 19 879 000 shares and not in addition thereto.
Special resolution number 1 – approval of amendments to the existing memorandum of incorporation (“MOI”) – fractional entitlements
Shares Voted ForAgainstAbstained

484 876 623

95.1%

100.0% 0.0% 0.2%
Special resolution number 2 – approval of amendments to the existing MOI - distributions
Shares Voted ForAgainstAbstained

484 876 623

95.1%

100.0% 0.0% 0.2%
Special resolution number 3 – approval of non-executive directors’ remuneration for the year ending 30 June 2017
Shares Voted ForAgainstAbstained

484 885 976

95.1%

100.0% 0.0% 0.2%
Special resolution number 4 – approval of financial assistance in terms of Section 45 of the Companies Act 71 of 2008
Shares Voted ForAgainstAbstained

484 885 976

95.1%

100.0% 0.0% 0.2%
Special resolution number 5 – approval of general authority to repurchase issued shares
Shares Voted ForAgainstAbstained

484 885 976

95.1%

96.7% 3.3% 0.2%

Notes

  • Percentages of shares voted are calculated in relation to the total issued share capital of Northam
  • Percentage of shares voted for and against are calculated in relation to the total number of shares voted for each resolution
  • Abstentions are calculated as a percentage in relation to the total issued share capital of Northam

Johannesburg
9 November 2016

Sponsor and Debt Sponsor
One Capital

Northam acquires Zambezi preference shares

Northam hereby advises shareholders of the acquisition of 4 043 018 preference shares (preference shares) in Zambezi Platinum (RF) Limited (Zambezi) from Coronation Asset Management Proprietary Limited acting as investment manager on behalf of its clients (Coronation), (acquisition).


Johannesburg, 1 November 2016. Northam hereby advises shareholders of the acquisition of 4 043 018 preference shares (preference shares) in Zambezi Platinum (RF) Limited (Zambezi) from Coronation Asset Management Proprietary Limited acting as investment manager on behalf of its clients (Coronation), (acquisition). 

The acquisition was effected on 31 October 2016 at R49.468 per preference share, for a total cash value of R200 million, and constitutes approximately 2.5% of the total preference shares in issue.

The preference shares were issued by Zambezi in 2015 in terms of Northam’s black economic empowerment transaction (Northam BEE transaction), which raised Northam’s empowerment equity levels to 31.4%.

Northam chief executive Paul Dunne said today:

“The preference shares offer an attractive yield whilst acting as a partial hedge against any potential financial liability which could arise in respect of the guarantee that Northam provided to the holders of preference shares in terms of the Northam BEE transaction.”

RATIONALE

Northam considers the preference shares to be a high-yield instrument with a credit risk profile that matches that of Northam. Accordingly, an investment in the preference shares provides the following benefits:

  • the preference shares generate a high return without the introduction of significant additional third party risk for Northam;
  • Northam may access future liquidity through the disposal of the preference shares in the future;
  • should Zambezi elect to redeem the preference shares using Northam ordinary shares, Northam will benefit from the discount that shall be applied to the Northam ordinary shares for purposes of the redemption calculations;
  • the acquisition partially hedges Northam against the potential future liability which could become payable pursuant to the guarantee provided by Northam to preference shareholders in respect of the preference shares (guarantee); and
  • the net finance charges and liability included in Northam’s consolidated financial statements in relation to the preference shares will be reduced when setting off these preference shares held as an asset.

PURCHASE CONSIDERATION

The price paid of R49.468 per preference share was calculated as the redemption value of a preference share as at 31 October 2016, being an amount equal to the issue price of R41.00 plus the accrued dividends at that date. The aggregate value of the acquisition was R200 million and was funded from Northam’s cash reserves.

DETAILS OF ZAMBEZI AND THE PREFERENCE SHARES

Zambezi was incorporated as a special purpose vehicle for purposes of facilitating the Northam BEE transaction, the primary purpose of which is to (i) hold the Northam ordinary shares it acquired as part of the Northam BEE transaction (BEE shares) for the benefit of historically disadvantaged South African participants and (ii) issue the preference shares. Zambezi is a ring-fenced entity and does not conduct any operational business activities, with its only investment being the BEE shares.

The preference shares, which were issued at R41.00 per share, are cumulative, redeemable preference shares which accrue dividends daily at an effective rate equal to the prime interest rate plus 3.5% compounded annually and are redeemable on 18 May 2025. The preference shares are secured by the BEE shares held by Zambezi and payments to their holders are guaranteed by Northam.

The preference shares may be redeemed, at Zambezi’s election, in cash and / or through the distribution of the BEE shares held by Zambezi in Northam. In the event that the preference shares are redeemed through the distribution of the BEE shares, the settlement value of the BEE shares shall be calculated at the 30 day volume weighted average price of a Northam ordinary share, as at the date preceding the settlement date, less 10%.

If payment under the guarantee is required, Northam may, at its election, settle the associated liability using cash and / or new Northam ordinary shares.

SMALL RELATED PARTY TRANSACTION AND FAIRNESS OPINION

Coronation is deemed to be a material shareholder of Northam in that it is able to exercise voting control on behalf of its clients over shares constituting an approximate 29.68% interest in Northam, and is therefore considered a related party in terms of paragraph 10.1(b)(i) of the JSE Limited Listings Requirements (Listings Requirements). Accordingly, the acquisition is classified as a small related party transaction in terms of paragraph 10.7 of the Listings Requirements.

The acquisition is not subject to shareholder approval, provided an independent professional expert has confirmed that the terms of the acquisition are fair as far as Northam’s shareholders are concerned. Northam appointed KPMG Services Proprietary Limited as an independent expert to provide an opinion on the fairness of the acquisition

In accordance with paragraph 10.7(b) of the Listings Requirements, and the fairness opinion, the board hereby confirms its opinion on the fairness of the acquisition for Northam shareholders. A copy of the fairness opinion is available for inspection at Northam’s registered office, being Building 4, 1st Floor, Maxwell Office Park, Magwa Crescent West, Waterfall City, Jukskei View, for a period of 28 days from the date of this announcement.

Issued by

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

Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429
Janet Whitaker: +27 11 880 3924

Northam’s short and long term credit ratings re-affirmed and outlook raised

Northam wishes to advise shareholders that the credit rating agency, Global Credit Rating Co. (“GCR”), has reaffirmed Northam’s short term credit rating at A1-(ZA) and the company’s long term rating of BBB+(ZA) with the Outlook raised from Stable to Positive.


Northam wishes to advise shareholders that the credit rating agency, Global Credit Rating Co. (“GCR”), has reaffirmed Northam’s short term credit rating at A1-(ZA) and the company’s long term rating of BBB+(ZA) with the Outlook raised from Stable to Positive.

Although the GCR view on resource corporates is a Negative Outlook, there is sufficient comfort in the developments at Northam for the panel to accord a Positive Outlook.

GCR has published a detailed credit rating report (available from GCR at http://globalratings.net) detailing the key criteria which form the basis for its rating, these include:

  • The impact of Northam’s fully funded R6.6 billion black economic empowerment transaction (“BEE Transaction”), which secured Northam’s status as a fully-empowered mining company, for at least 10 years and incorporated a cash injection of R4.6 billion, which will be used to fund the expansion of platinum group metal (“PGM”) output to 800,000 oz annually in six years.
  • Further diversification into mechanised and inherently lower cost ore bodies which secure stronger margins and return on capital, providing greater operational and financial flexibility.
  • The timely delivery of steady-state production at Booysendal North and the strategic acquisition of Booysendal South (formerly Everest Mine).
  • The 7% increase in PGM sales volumes which has sustained Northam’s revenue above R6 billion in the financial year ended 30 June 2016, despite a 6% fall in the ZAR basket price from the prior year.
  • The marginal year-on-year increase in normalised headline earnings to R444.1 million in the financial year ended 30 June 2016, after removing the effect of the preference dividends accrued and capital items related to the BEE Transaction.
  • Operations remained cash generative for the year ended 30 June 2016, which coupled with R265 million in interest income, nearly trebled operating cash flow.
  • Northam’s operations are expected to be net ungeared in the medium term assuming no significant decrease in PGM prices.
  • Following the issue of 3 and 5 year domestic medium term notes, which raised R425 million in aggregate, Northam has sound debt service ratios.

Johannesburg,
13 October 2016

Sponsor and Debt Sponsor
One Capital

Northam acquires contiguous additional resources at Zondereinde Mine from Anglo American Platinum Limited

Northam is pleased to announce that it has entered into agreements with Rustenburg Platinum Mines Limited (“RPM”), a wholly owned subsidiary of Anglo American Platinum Limited, on 10 October 2016.


  1. INTRODUCTION

    Northam is pleased to announce that it has entered into agreements with Rustenburg Platinum Mines Limited (“RPM”), a wholly owned subsidiary of Anglo American Platinum Limited, on 10 October 2016, whereby Northam will:

    • acquire a portion of the Amandelbult mining right contiguous with the north western boundary of Northam’s Zondereinde mine, including all of RPM’s rights and obligations thereto (“Acquired Resource”), for a cash consideration of R1 billion;
    • acquire a portion of the Elandsfontein 386 KQ farm overlying part of the Acquired Resource, in exchange for a portion of the Zondereinde mining right, located on the north western corner of the Zondereinde mining right including all of Northam’s rights and obligations thereto (“Sold Resource”), (collectively the “Transaction”).

    Paul Dunne, Northam’s Chief Executive Officer, said “the Transaction adds flexibility and optionality to the mining operations at Zondereinde. The Acquired Resource is of high quality, is well understood by Northam and allows us to better leverage the existing Zondereinde infrastructure. The additional resource also enables Northam to continue mining higher grade Merensky ore for a longer period, with relatively low incremental capital expenditure. Northam is confident that the Transaction will add sustainable shareholder value, unlocking a large resource in a capital efficient manner. The Transaction positions Zondereinde on a similar long-term footing as our Booysendal operation.”

  2. BACKGROUND INFORMATION

    Acquired Resource

    The Acquired Resource is contiguous with the north western boundary of Zondereinde. Its resource characteristics and properties are similar to those of the Zondereinde orebody lying to the west of Zondereinde mine shaft. A short lead time and limited capital expenditure is required to access the Acquired Resource from Zondereinde’s existing infrastructure.

    It extends on dip from approximately 1 400 metres below surface, corresponding to the Zondereinde 3 level, to the deepest extent of planned mining on 18 level. Laterally, it extends for approximately 3.6 kilometres.

    Sold Resource

    The Sold Resource is located in the north western corner of the Zondereinde mining right. This area has never been mined and did not form part of the Zondereinde life of mine (LOM) plan, as it is above the minimum depth required for effective use of hydro-powered mining equipment.

  3. RATIONALE

    The acquisition of the Acquired Resource provides Northam with numerous benefits, such as it:

    • Extends the Zondereinde economic LOM to beyond 30 years.
    • Provides extensive mining flexibility associated with a high quality resource that is well understood by Northam.
    • Provides early access to additional higher grade Merensky and UG2 reef on 10 and ultimately 16 mining levels.
    • Reduces the overall average mining depth of the Zondereinde mine, with associated potential savings.
    • Provides long-term optionality and reduces Zondereinde’s operational risk profile.
  4. CONDITIONS PRECEDENT

    The Transaction is subject to, inter alia, the consent by the Minister of Mineral Resources in terms of section 102 of the Mineral and Petroleum Resources Development Act, No. 28 of 2002.

  5. CATEGORISATION

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

Johannesburg
11 October 2016

Corporate Advisor, Sponsor and Debt Sponsor
One Capital

Attorneys
Cliffe Dekker Hofmeyr Inc.

Northam acquires mining right from Anglo American Platinum

In a three-part transaction valued at R1 billion, Northam Platinum today announced the acquisition of a strategic resource holding from Anglo American Platinum Limited (Anglo Platinum).


Large resource adds further life to Zondereinde

Johannesburg, Tuesday 11 October 2016. In a three-part transaction valued at R1 billion, Northam Platinum today announced the acquisition of a strategic resource holding from Anglo American Platinum Limited (Anglo Platinum).

The transaction, concluded with Anglo Platinum subsidiary Rustenburg Platinum Mines Limited (RPM), makes provision for the following:

  • Northam’s acquisition of a portion of the mining right and associated resource from the Amandelbult mine on the north-western boundary of Northam’s Zondereinde mine, This large resource is similar in character to that of the Zondereinde orebody lying to the west of the mine shaft. A short lead time and limited capital expenditure are required to access the acquired resource from Zondereinde’s existing infrastructure.
  • Northam’s acquisition of the land overlying the resource, in exchange for the disposal of a portion of the Zondereinde mining right on the north-western corner of the Zondereinde property. Zondereinde has no plans to mine this area as it is not suitable for the effective use of hydro-powered mining equipment, which is used throughout the Zondereinde underground workings.

Northam chief executive Paul Dunne said today, “The transaction brings flexibility and optionality to the mining operations at Zondereinde. The acquired resource is of high quality, is well understood by Northam and allows us to better leverage the existing Zondereinde infrastructure. The additional resource also enables Northam to continue mining higher-grade Merensky ore for a longer period, with relatively low incremental capital expenditure. Northam is confident that the transaction will add sustainable shareholder value, unlocking a large resource in a capital efficient manner. The transaction positions Zondereinde on a similar long-term footing as our Booysendal operation.”

The resource acquired from Anglo Platinum holds significant benefits for Northam, including:

  • extending the Zondereinde economic life of mine to beyond 30 years;
  • providing extensive mining flexibility;
  • early access to additional higher-grade Merensky and UG2 reef;
  • reducing the overall average mining depth of the Zondereinde mine, with associated potential savings;
  • reducing mining risk and enhancing long-term flexibility and optionality for Zondereinde

The transaction is subject to the consent of the Minister of Mineral Resources in terms of section 102 of the Mineral and Petroleum Resources Development Act, No. 28.

Issued by

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

Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429