Announcements 2018

1. Purchase of Zambezi Platinum (RF) Limited (“Zambezi Platinum”) preference shares (“preference shares”)

In terms of the Northam broad-based black economic empowerment transaction implemented on 18 May 2015, Zambezi Platinum holds ordinary shares in Northam. Pursuant to the preference share terms, Zambezi Platinum is entitled to elect to settle the preference share redemption amount in cash, Northam ordinary shares or a combination thereof.

Accordingly, in compliance with paragraphs 3.63 to 3.66 of the JSE Limited Listings Requirements (“Listings Requirements”), Northam advises its shareholders of the following dealings by a director of the company and Zambezi Platinum and an associate of a director of a major subsidiary of the company and Zambezi Platinum:

Transaction 1

Transaction 2

2. Purchase of Northam ordinary shares

In compliance with paragraphs 3.63 to 3.66 of the JSE Limited Listings Requirements (“Listings Requirements”), Northam advises its shareholders of the following dealings by an associate of a director of a major subsidiary of the company:

Johannesburg
21 December 2018

Sponsor and Debt Sponsor
One Capital

In compliance with paragraph 3.63 of the JSE Limited Listings Requirements (“JSE listings requirements”), Northam hereby advises its shareholders of the following dealings by directors of the company, a director of a major subsidiary and the company secretary:

Johannesburg
04 December 2018

Sponsor and Debt Sponsor
One Capital

Northam shareholders (“shareholders”) are advised that at the annual general meeting of shareholders held on Tuesday, 6 November 2018 (“AGM”), the ordinary and special resolutions, as set out in the notice of AGM dated Thursday, 30 August 2018, were approved by the requisite majority of shareholders present or represented by proxy at the AGM. Further details regarding the voting results for each of the resolutions are contained below.

Changes to the board of directors

In compliance with paragraph 3.59 of the JSE Limited Listings Requirements, shareholders are advised that Messrs MH (Mcebisi) Jonas and JJ (Jean) Nel have been elected as independent non-executive directors of the board at the AGM. Mr Jean Nel’s appointment is with effect from the date on which the amendment of the company's memorandum of incorporation (“MOI”) envisaged in special resolution number 1 becomes effective.

Results of annual general meeting

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 the audited group annual financial statements of the company for the year ended 30 June 2018

Ordinary resolution number 2.1 – re-election of Mr CK Chabedi as a director

Ordinary resolution number 2.2 – re-election of Ms HH Hickey as a director

Ordinary resolution number 2.3 – re-election of Mr TI Mvusi as a director

Ordinary resolution number 2.4 – election of Dr NY Jekwa as a director

Ordinary resolution number 2.5 – election of Mr MH Jonas as a director

Ordinary resolution number 2.6 – election of Mr JJ Nel as a director, conditional on special resolution number 1 being approved and the amendment of the company's MOI envisaged therein becoming effective.

Ordinary resolution number 3 – re-appointment of Ernst & Young Inc. as the independent external auditor of the company

Ordinary resolution number 4.1 – re-election of Ms HH Hickey as a member of the audit and risk committee

Ordinary resolution number 4.2 – re-election of Mr DH Brown as a member of the audit and risk committee

Ordinary resolution number 4.3 – re-election of Mr R Havenstein as a member of the audit and risk committee

Ordinary resolution number 4.4 – re-election of Ms TE Kgosi as a member of the audit and risk committee

Ordinary resolution number 5.1 – endorsement of the group’s remuneration policy

Ordinary resolution number 5.2 – endorsement of the group’s remuneration implementation report

Special resolution number 1 – approval of amendment to the company's MOI to increase the maximum number of directors

Special resolution number 2.1 – approval of non-executive directors’ fees for the year ending 30 June 2019

Special resolution number 2.2 – approval of the payment of additional non-executive directors’ fees for additional meetings held during the financial year ended 30 June 2018

Special resolution number 3.1 – approval of financial assistance to related and interrelated companies

Special resolution number 3.2 – approval of financial assistance to executive directors and/or prescribed officers and their related and interrelated persons

Special resolution number 4 – approval of general authority to repurchase issued shares

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 in respect of each resolution.

- Abstentions are calculated as a percentage in relation to the total issued share capital of Northam.

Johannesburg
6 November 2018

Sponsor and Debt Sponsor
One Capital

In compliance with paragraph 3.59 of the JSE Limited Listings Requirements, Northam shareholders are advised of the appointment of Ms Aletta Helena (Alet) Coetzee as successor to Mr Ayanda Khumalo, current Chief Financial Officer (“CFO”) of Northam, with effect from 15 November 2018.  This follows a decision by Mr Khumalo to step down, effective 1 November 2018.  He will be taking time off before embarking on the next phase of his career.  Ms Coetzee has been part of Northam’s senior management team since joining the group in December 2015. 

The appointment of Ms Coetzee arises from a comprehensive process followed by the board of directors (“board”) to find a suitable replacement for Mr Khumalo.

Ms Coetzee is a Chartered Accountant (South Africa) and former associate director at Ernst & Young Inc. (“EY”), Northam’s external auditor.  Ms Coetzee worked at EY for almost 14 years and has been involved with the group since June 2007 when she first joined the external audit team. 

The board has full confidence in Ms Coetzee’s ability to seamlessly take over from Mr Khumalo and is pleased to have found a highly qualified and experienced replacement.

The members of the board would like to express their grateful appreciation to Mr Khumalo for his service to the company and especially for pro-actively ensuring a smooth transition.  They wish him well in his future endeavours and welcome Ms Coetzee as CFO.

Johannesburg
24 October 2018

Purchase of Zambezi Platinum (RF) Limited (“Zambezi Platinum”) preference shares (“preference shares”)

In terms of the Northam broad-based economic empowerment transaction implemented on 18 May 2015, Zambezi Platinum holds ordinary shares in Northam. Pursuant to the preference share terms, Zambezi Platinum is entitled to elect to settle the preference share redemption amount in cash, Northam ordinary shares or a combination thereof.

Accordingly, in compliance with paragraphs 3.63 to 3.66 of the JSE Limited Listings Requirements (“JSE Listings Requirements”), Northam advises its shareholders of the following dealings by a director of a major subsidiary of the company and of Zambezi Platinum:

Transaction 1

Transaction 2

Transaction 3

Johannesburg
17 September 2018

Sponsor and Debt Sponsor
One Capital

“The best defence for Northam in this difficult market remains our relative position on the cost curve.” Paul Dunne, CEO

Johannesburg, Friday 07 September 2018. Northam Platinum Limited (Northam) has released its results for the year ended 30 June 2018. The following publications are available on the group’s website for further information:

• The summarised financial results and group statistical information 2018
• The annual integrated report 2018
• The 2018 notice of annual general meeting and abridged annual report

The chief executive’s message to shareholders is reproduced below.

The year under review has been among the busiest in the company’s history as we have progressed our strategy of growing and diversifying our operations. This has been achieved during a period with significant challenges for South Africa’s PGM mining sector. A period of consolidation will follow in F2019 characterised by project execution, operational delivery and stock reduction. Post the commissioning and ramp up of the Booysendal expansion project, the company is expected to become a strong cash generator, enabling Northam to purchase further Zambezi preference shares. The best defence for Northam in this difficult market remains in our relative position on the cost curve, ensuring that all production is cash generative.

PGM MARKETS

In nominal terms, the rand basket price for PGMs is unchanged from its level of a decade ago, a decade in which inflationary cost pressures have continued to erode operating margins. However, while our confidence in the markets for PGMs in the medium to long term remains undiminished, the past 12 months have underscored the fact that short-term challenges persist and that our strategy of managing the business to ensure that Northam is positioned in the bottom half of the industry cost curve is correct.

Immediate challenges were highlighted by the soft price of platinum, the principal contributor to our basket of metals. For most of the financial year, the platinum price fluctuated between USD850/oz and USD1 020/oz. Post year-end the price has fallen below USD800/oz. It is fair to say that the ‘dieselgate’ issue at certain major auto manufacturers combined with the potential future penetration of battery electric vehicles created significant negative sentiment towards platinum during the course of this year.

In contrast, the spot price of palladium rose steadily from USD838/oz in July to a high of USD1,139/oz in January 2018. That was followed by a period of price consolidation even as there were concerns over the possible effects of US sanctions on Russian deliveries into the global supply chain. The palladium price, which exceeded that of platinum, ended the year at $954/oz, having declined in tandem with the platinum price.

Palladium’s relative price strength, together with that of rhodium which rose 128% over the year, provided Northam with some relief from platinum’s weakness. Palladium’s principal use is as a catalyst for petrol driven motor vehicles where demand growth is likely to persist for several decades even with the advent of battery-driven vehicles. Platinum, on the other hand, finds its automotive use as a catalyst for diesel powered vehicles whose sales have been affected by negative sentiment following the ‘dieselgate’ scandal.

Northam and other PGM producers remain price takers to a large extent, and our continuing success is determined by our ability to contain the cost of production.

HEALTH AND SAFETY

Our commitment to ensuring that our employees enjoy safe and healthy working conditions remains our primary concern.

Sadly, there were two fatal accidents at Zondereinde this year. Mr Feliciano Sebastiao Massingue, a diamond drill operator, lost his life in an underground rail accident in July 2017. Mr Daniel du Plessis, an underground fitter, was fatally injured in an engineering-related accident in June 2018. Management’s thoughts remain with the families and friends of Mr Massingue and Mr du Plessis.

Despite this safety setback, Zondereinde achieved a 22% improvement in its lost time injury incidence rate (LTIIR). The Booysendal mine continues with its world class safety record, achieving an LTIIR of 0.31 per 200 000 hours worked and 3 000 000 fatality free shifts.

STRATEGIC PROGRESS

While our aspirational target of producing 1Moz or more of PGMs remains, we will not chase production for the sake of size alone. All our ounces are and must remain profitable.

During the year’s first half we acquired the ground adjacent to Zondereinde’s western boundary from Anglo American Platinum. This western block, acquired for a cash consideration of R1 billion, provides Zondereinde with additional Merensky and UG2 resources that can be developed cost-effectively by leveraging Zondereinde’s existing underground and surface infrastructure. As a consequence, Zondereinde’s life expectancy has been extended to more than 30 years.

A further strategic development was the acquisition of the mothballed Eland mining assets from Glencore at a price of R175 million. It is not envisaged that full-scale mining will be resumed at Eland until the global PGM market recovers or until we anticipate a sustainable recovery. However, in a move to take advantage of the synergy that our new acquisition makes possible, we have initiated the restoration of concentrator operations following an agreement to process PGM-bearing material from Jubilee Metals, beginning February 2019. The concentrator’s production will be processed further at Zondereinde’s smelter, where a second furnace was brought into operation in February this year. The Eland tailings dam will be reprocessed for chrome and PGMs and Kukama shaft will be recommissioned for trial mining on 1 level west.

The commissioning of the second furnace was a vital development in our longer-term strategy of positioning Northam as a major integrated mine-to-market player. The R1.0 billion smelter expansion and furnace were built with the help of a €20 million contribution by our long-term refining partner, Heraeus Deutschland GmbH & Co. KG (Heraeus), a partnership that has successfully endured for the past 30 years. Significant de-stocking of excess concentrate is expected during the course of F2019.

Full technical details of our operations at our Zondereinde and Booysendal mines are provided elsewhere in this report. In summary, however, Zondereinde has had a very solid year. Merensky grades of over 6g/t were instrumental in boosting production to 349 000 6E oz.

At Booysendal, a few teething problems with the startup of the dense media separation plant were mastered and overcome in the second half of the year. Work was completed on deepening the existing UG2 North mine while, simultaneously, developing the Booysendal Merensky North and Booysendal South operations. The aerial rope conveyor system which will link Booysendal Central mine to the Booysendal South Concentrator is scheduled to be commissioned by April 2019 and may come in ahead of schedule.

In addition, Booysendal has successfully transitioned to full owner-operator status. Since its inception in 2013, Booysendal’s mining operations were carried out on a contract basis by Murray & Roberts Cementation (MRC). As that contract approached its conclusion, however, it was decided that the mine’s management and operation should revert to Northam. The process included the permanent employment of the contractor workforce by Northam. No jobs were lost and our new employees now enjoy the full benefits of permanent employment. Our contractual arrangement with Minopex South Africa also ended in December, and the concentrator moved to an owner-operator model.

While maintaining our focus on mining, we recognised and acted upon a low-risk opportunity to diversify into recycling. In July, we entered into an agreement with the liquidators of A-1 Specialised Services to acquire that company’s mothballed autocatalyst recycling assets and property in Pennsylvania, USA for a cash purchase price of USD10.8 million. The acquisition has given us a low-cost entrée into the recycling sector and is underpinned to a high degree by the value of the building and land. The first trial shipments of recycled material landed in South Africa in April this year for processing at our Zondereinde smelter. Development of this segment within Northam will be done slowly and carefully over time.

During the course of the year we disposed of our 7.5% participation interest in the Pandora joint venture on 1 December 2017, which we considered to be non-core.

INDUSTRIAL RELATIONS

We are conducting wage negotiations at our Zondereinde mine after the financial year end. We expect negotiations to be tough but to be completed with mutual understanding and respect.

Negotiations at Booysendal are scheduled for June 2019. Despite the unprotected work stoppage that was carried out by the former MRC employees in late March to early April, which did impact production somewhat, Booysendal has had a satisfactory year.

THE FUTURE

With regard to the draft Mining Charter of 2018, Northam’s position remains aligned with that of the Minerals Council South Africa, of which Northam is a member. The Mining Charter 2018 is a material improvement on the 2017 Mining Charter draft. However, more work needs to be done to create a Charter that promotes competitiveness, investment, growth and transformation in South Africa. Northam remains well positioned with respect to ownership credentials through the Zambezi Platinum participation.

In the second half of the year, management concluded that it would be prudent to increase available funding going forward mainly as insurance against cash flow requirements for Northam’s business during this period of low rand basket prices. And so, with effect from 17 May, the domestic medium term note programme was increased by R1 billion. Northam also secured a new R1 billion two-year revolving credit facility, increasing total revolving credit facilities to R3 billion until April 2020. The additional R2 billion funding flexibility strengthens Northam’s balance sheet capability in support of the group’s key strategic initiatives, including the development of the Booysendal expansion. Together with existing cash reserves, the new facility provides Northam with increased financial flexibility, ensuring that the group’s growth initiatives remain fully funded in the medium term.

Our focus remains to keep our operations lean and well positioned to take full advantage of a recovery in metal prices, while ensuring we are profitable and cash-flow positive after sustaining capital expenditure.

APPRECIATION

It would be remiss of me not to mention the role which our former chairman Lazarus Zim played in Northam’s development. His wise counsel was invaluable over his 10-year tenure. Lazarus retired in November and was succeeded by Brian Mosehla, the chairman of our BEE partner Zambezi Platinum.

The proposed appointments of Mr Mcebisi Jonas and Mr Jean Nel at our AGM in November will further strengthen an already diverse and very experienced board.

The past year has been a period in which unstinting teamwork was essential, and I must commend my colleagues throughout the company for their efforts, which are so essential to our success. My thanks and appreciation go to all of them.

Issued by
R&A Strategic Communications
Johannesburg
Tel +27 (0)11 880 3924
Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429

In compliance with paragraph 3.59(a) of the JSE Limited Listings Requirements, Northam shareholders are advised that Mr MH (Mcebisi) Jonas and Mr JJ (Jean) Nel have been appointed as independent non-executive directors to the board of Northam (“board”), with effect from 6 November 2018. The appointments are subject to shareholder approval at the Northam annual general meeting, to be held on Tuesday, 6 November 2018 (further details of which will be published on SENS in due course).

Mr Mcebisi Jonas served as Deputy Finance Minister in the Government of the Republic of South Africa from 2014 to 2017 and was a member of the National Assembly until April 2017. Mr Jonas is an independent non-executive director of MTN Group Limited and is one of four independent presidential investment envoys, appointed by President Cyril Ramaphosa to attract investors to South Africa. He is also a former chairperson and non-executive director of the Public Investment Corporation.

Mr Jean Nel is a non-executive director of Mimosa Holdings (Pvt) Limited and Mimosa Investments Limited, which entities own and manage the Mimosa Platinum mine in Zimbabwe. Mr Nel has more than 18 years’ experience in mining and mining finance, including having served as the CEO of Aquarius Platinum from 2012 to 2016, at which time he led the successful disposal of Aquarius Platinum to Sibanye Gold Limited (now Sibanye-Stillwater Limited). He is a Chartered Accountant (South Africa) and a CFA charterholder.

Mr Brian Mosehla, chairman of the board, commented, “Northam is pleased to welcome Messrs Mcebisi Jonas and Jean Nel to the board. They bring extensive additional experience and expertise to Northam, which will further strengthen the board’s diversity and independence. We look forward to their meaningful contribution to the group’s future growth and development.”

Johannesburg
3 September 2018

Sponsor and Debt Sponsor
One Capital

In compliance with paragraphs 3.63 to 3.66 of the JSE Limited Listings Requirements (“Listings Requirements”), Northam advises its shareholders of the following dealings by an associate of a director of a major subsidiary of the company:

Johannesburg
2 July 2018

Sponsor and Debt Sponsor
One Capital

In compliance with paragraphs 3.63 to 3.66 of the JSE Limited Listings Requirements (“Listings Requirements”), Northam advises its shareholders of the following dealings by an associate of a director of a major subsidiary of the company

Johannesburg
4 June 2018

Sponsor and Debt Sponsor
One Capital

In compliance with paragraphs 3.63 to 3.66 of the JSE Limited Listings Requirements (“Listings Requirements”), Northam advises its shareholders of the following dealings in shares by a director of the company:

Johannesburg
29 May 2018

Sponsor and Debt Sponsor
One Capital

The JSE Limited has granted approval for the listing of NHM005 Senior Unsecured Fixed Rate Notes, under the Northam Platinum Limited ZAR2 000 000 000 Domestic Medium Term Note Programme dated 3 August 2012 (“Programme”), as guaranteed by Booysendal Platinum Proprietary Limited, with effect from 18 May 2018.

The Notes will be immobilised in the Central Securities Depository (CSD) and settlement will take place electronically in terms of JSE Rules.

Johannesburg
17 May 2018

Arranger, Dealer and Debt Sponsor
One Capital

Attorneys to Northam in respect of the Notes
Bowman Gilfillan Inc.

The JSE Limited has granted approval for the listing of NHM004 Senior Unsecured Fixed Rate Notes, under the Northam Platinum Limited ZAR2 000 000 000 Domestic Medium Term Note Programme dated 3 August 2012 (“Programme”), as guaranteed by Booysendal Platinum Proprietary Limited, with effect from 20 April 2018.

The Notes will be immobilised in the Central Securities Depository (CSD) and settlement will take place electronically in terms of JSE Rules.

Johannesburg
19 April 2018

Arranger, Dealer and Debt Sponsor
One Capital

Attorneys to Northam in respect of the Notes
Bowman Gilfillan Inc.

In compliance with paragraphs 3.63 to 3.66 of the JSE Limited (“JSE”) Listings Requirements, Northam advises its shareholders of the following dealings in shares by a director of a major subsidiary of the company:

Johannesburg
29 March 2018

Sponsor and Debt Sponsor
One Capital

Purchase of Zambezi Platinum (RF) Limited (“Zambezi Platinum”) preference shares (“preference shares”)

In terms of the Northam broad-based economic empowerment transaction implemented on 18 May 2015, Zambezi Platinum holds ordinary shares in Northam. Pursuant to the preference share terms, Zambezi Platinum is entitled to elect to settle the preference share redemption amount in cash, Northam ordinary shares or a combination thereof.

Accordingly, in compliance with paragraphs 3.63 to 3.66 of the JSE Listings Requirements (“Listings Requirements”), Northam advises its shareholders of the following dealings by a director and chairman of the company and of Zambezi Platinum:

Johannesburg
13 March 2018

Sponsor and Debt Sponsor
One Capital

Johannesburg, Friday, 23 February 2018. Northam Platinum today issued results for the first half-year of the 2018 financial year.

KEY FEATURES

• Group LTIIR improved by 15.8% to 1.01
• Steady operational progress
• Equivalent 4E refined metal from own operations up 4.7%% to 246 473oz
• Revenue increased by 3.1% to R26 516/Pt oz sold
• Unit cash costs well contained at R20 851/Pt oz
• Execution of growth strategy on track – capex at R2.6 billion
• New 20MW furnace commissioned
• Booysendal South absorbed R940 million capex
• Tumela transaction concluded for consideration of R1.0 billion

Financial overview

Refined metal production from group operations increased to 246 473oz (H1 F2017: 235 375oz), pointing to a sound operational effort at the group’s operations.

Sales volumes in the period were lower, reflecting the continued build-up of inventory ahead of the commissioning of the new furnace at the Zondereinde metallurgical complex. The lower volumes, along with a stronger South African currency (ZAR13.43/USD cf to H1 F2017: R13.99/USD) over the period, had a predictable effect on sales revenues, which dropped marginally to R3.4 billion (H1 F2017: R3.5 billion).

Despite significant US dollar price increases for palladium and rhodium, revenue from platinum, which constitutes approximately 60% of the production basket, dropped by 17.8%, resulting in a lower average market price achieved.

Operating costs for mining and concentrating increased by 10.6% to R2.4 billion (H1 F2017: R2.2 billion) and 12.1% to R347.0 million (H1 F2017: R309.6 million) respectively, owing to labour and power cost increases and the expenditure associated with commissioning the dense media separation (DMS) plant at Booysendal mine.

The group operating profit was down by 3.8% to R338.8 million, with the operating margin largely unchanged from the previous period at 10.1% (H1 F2017: 10.2%).

Operating cash flows were negative to the value of R562.7 million (H1 F2017: positive R216.4 million) owing to the high inventory levels and prepayments resulting in higher working capital requirements. The high level of inventory is expected to normalise during H2 F2018 given the recent commissioning of the new furnace as concentrate is processed through this new facility.

Cash utilised in investing activities rose by 181.6% to R2.2 billion (H1 F2017: R778.0 million) reflecting the intensity of the group’s capital expenditure programme as production is expanded in line with the growth strategy. The major spend has been on the new 20MW furnace at Zondereinde, which is now complete and commissioned, the acquisition of the Tumela block and the development of Booysendal South mine.

Group performance

Milled tonnages from the combined operations increased by 3.7% to 2.3 million tonnes. Both Zondereinde and Booysendal contributed to the increase and the 4.7% improvement in PGM production to 246 000 ounces. Purchased metal also picked up year on year to 30 000 ounces with two additional long term customers secured. “We intend to grow our third party smelting business over the next year or two,” said CEO Paul Dunne, “thereby taking advantage of the increase in furnace capacity.”

The smelter constraints continued to impact refined metal production, which was lower by 9% at 212 000oz. Refined metal production is expected to increase significantly in the second half.

The production of chrome concentrate increased by 10% to 311 000 tonnes in line with the higher UG2 tonnages milled at both operations. This is an important revenue stream for Northam.

Zondereinde operations

Year-on-year tonnages at Zondereinde were largely unchanged at 1 136 541 tonnes with the UG2’s contribution 10.2% higher at 673 042 tonnes, and the Merensky tonnages 9.6% lower at 463 499 tonnes. With the increase in the higher grade P2 reef mined, the Merensky head grade increased to 6.1g/t. Equivalent refined metal production was 5.7% higher at 152 487oz. Third party concentrate added 4E equivalent metal of 27 561oz (H1 F2017: 14 179oz) to on-mine production.

Zondereinde continues to be impacted by the constrained availability of Merensky reef. The Tumela block is expected to improve the availability of Merensky mining face over the next two years as new reserves are established.

With plans being put in place to access and develop the Tumela block, the permanent workforce has been increased by 6%. The combination of higher costs and volumes translated into a 9.0% increase in unit cash costs per equivalent refined platinum ounce to R21 775/oz (H1: F2017 R19 980/oz).

With a significant increase in metal inventory Zondereinde’s operating profit fell to R155 million. “We believe,” commented Northam’s Dunne, “that Zondereinde remains in a competitive cost position.”

The on-mine capital expenditure for the year was R1.4 billion which included the R1.0 billion payment for the Tumela resource. R94 million was spent on sustaining capex. Forecast capex for the remainder of the financial year is R162 million for expansion capex and R205 million for sustaining capex.

Zondereinde’s total resource estimate increased to 102.59 million oz (Moz) (F2017: 83.98Moz), owing to the inclusion of the Tumela block resources acquired.

Booysendal operations

Tonnages from the UG2 mine declined by 1.8% to 1 190 215 tonnes milled (H1 F2017: 1 212 281 tonnes) at a constant head grade of 2.7 g/t. Given some teething problems associated with the start-up of the DMS plant, the overall plant recovery declined. Operating the DMS will enable the processing of higher mined tonnages with a marginal overall recovery sacrifice.

Chrome produced for the current period was 144 382 tonnes (H1 F2017: 138 635 tonnes), a 4.1% increase, while metal in concentrate dropped marginally to 98 900oz.

Booysendal operating costs increased by 5.8% to R1.0 billion (H1 F2017: R948.8 million). The cash cost per equivalent 4Eoz in concentrate is R9 938 (H1 F2017: R9 218). This equates to a cash cost per platinum oz of R16 459/oz (H1 F2017: R15 271/oz), an increase of 7.8%.

Capital expenditure at Booysendal reached R1.2 billion for the period (H1 F2017: R330.0 million) with R1.1 billion on project expenditure and R25.2 million on sustaining expenditure. In addition, R140.2 million was prepaid for the construction of the aerial rope conveyor system. The estimated expansionary and sustaining capital expenditure for the remainder of F2018 will be R690.7 million and R72.0 million respectively.

Issued by
R&A Strategic Communications
Johannesburg
Tel +27 (0)11 880 3924
Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429

Another expansion initiative completed

Johannesburg, Thursday, 15 February 2018. Northam Platinum chief executive Paul Dunne today hosted a senior delegation from Heraeus Deutschland GmbH & Co. KG (Heraeus) and Heraeus South Africa Proprietary Limited (HSA) at the opening of the smelter complex expansion at the group's Zondereinde mine near Thabazimbi in the Limpopo province.

The smelter opening and launch of the second furnace at the group's metallurgical complex marks a major milestone in Northam's strategic growth initiatives, and underpins the renewal of the companies' long-term strategic partnership. In terms of an agreement struck in October 2015, Heraeus contributed an amount of €20 million to the Northam smelter expansion programme, and the parties committed to the following:

• an extension of the their existing 30-year partnership;
• Heraeus to continue to refine Northam's PGM concentrates at competitive terms; and
• Northam undertakes to make up to 40% of its refined precious metals available for sale to Heraeus.

Paul Dunne said: "Today we are celebrating the fruits of a mutually beneficial, long-standing business partnership between our companies. For Northam, the addition of a second furnace at Zondereinde is a critical element of our group's strategic growth in that it:

• supports the expansion programme at Booysendal;
• has the flexibility to handle and process the higher volumes from Zondereinde;
• immediately raises the group's processing capacity to more than 1 million PGM ounces; and
• significantly reduces our operational risk."

The new 20MW furnace will provide the additional capacity required to treat the growing volumes from Zondereinde, Booysendal and those of Eland when it starts producing. It has been designed to be used as a pure UG2 furnace to accommodate the higher UG2 ore percentages or as a conventional Merensky/UG2 furnace. The new furnace incorporates a number of advances in the area of PGM smelting. These include extended refractory lining life expectancy, metal containment and cooling, along with best practice in terms of monitoring, tapping and furnace control functions.

Heraeus Precious Metals President André Christl commented: "As Heraeus Precious Metals grows and innovates the precious metals industry, we want to partner with companies that share that same ambition. Northam Platinum has demonstrated that for the past 30 years, and we're delighted this new smelter puts our partnership on the path to a 50-year golden anniversary in 2038."

Heraeus media release:
Heraeus investment in Northam Platinum's state-of-the-art platinum smelter in South Africa strengthens its global supplier network
Source: Heraeus Precious Metals

NOTE TO EDITORS

Heraeus is a leading international technology group headquartered in Hanau, Germany. The company's business is to create high-quality solutions for its customers and to strengthen their long-term competitiveness by combining material expertise with technological know-how.

The portfolio ranges from components to co-ordinated material systems, which are used in a wide variety of applications in the steel, electronics, chemical, automotive and telecommunications industries.

In the 2016 financial year, Heraeus generated revenues of €21.5 billion. The group employs approximately 12,400 employees worldwide in more than 100 subsidiaries in 38 countries and Heraeus holds a leading position in its global markets.

Issued by
R&A Strategic Communications
Johannesburg
Tel +27 (0)11 880 3924
Marion Brower: +27 71 493 0387
Jan Walker: +27 71 493 0429

Johannesburg
15 February 2018

Johannesburg, Tuesday 30 January 2018. Northam is pleased to advise that its acquisition of the Eland platinum mine (Eland) from Glencore Operations South Africa (Pty) Limited (Glencore) has been finalised and has become unconditional.

Northam first advised shareholders of the acquisition of Eland on 24 February 2017 for a cash consideration of R175 million which secures full ownership of the Eland mine and infrastructure, through Eland Platinum, a wholly-owned Northam subsidiary.

Northam will operate Eland Platinum on a fully integrated mine to market basis. PGM concentrate produced at Eland mine will be processed at Northam’s Zondereinde smelter complex.

Paul Dunne, Northam’s Chief Executive Officer, said “Northam is well advanced in developing its mine plan for Eland and is looking forward to recommissioning the mine to unlock the potential of this large, shallow resource with fully developed infrastructure. The Eland transaction further diversifies Northam’s asset footprint and significantly enhances the long-term optionality and flexibility of Northam’s asset portfolio.”

Issued by
R&A Strategic Communications
Johannesburg
Tel +27 (0)11 880 3924
Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429

In compliance with paragraphs 3.63 to 3.66 of the JSE Limited Listings Requirements (“Listings Requirements”), Northam advises its shareholders of the following dealing by an associate of a director of a major subsidiary of the company:

Johannesburg
03 January 2018

Sponsor and Debt Sponsor
One Capital