Announcements 2018

Johannesburg, Friday 23 February 2018. Looking back at the company’s performance over the first half-year of F2018, chief executive Paul Dunne referred to a “rewarding period, as the Northam team further consolidated the company’s strategy of optimisation and operational diversification.

“This approach has been fundamental to growing our business and developing a suite of sustainable and long-life mining assets that deliver benefits to all our stakeholders.”

The effect of higher US dollar basket prices, buoyed particularly by rises in the prices of palladium and rhodium, was largely offset by the strengthening South African currency, which kept the increase in the rand basket price to 4.1%. Although Dunne was confident that the platinum price would recover, with an anticipated rise in demand in line with global economic growth, he emphasised the company’s unwavering approach to containing costs, which he described as “fundamental to our sustainability”.

“We believe we have maintained, and continue to strive to maintain our relative position in the lower half of the industry cost curve.”

There were significant developments at both the group’s producing assets, Zondereinde and Booysendal. At Zondereinde preparations are being made to access the new Tumela ground on the mine’s western boundary, while the stoping width at Booysendal was also optimised. The dense media separation plant was commissioned and construction and development of the central complex and aerial rope conveyor at the south section proceeded apace.

The commissioning of the new furnace at the Zondereinde metallurgical complex in December represents a step change to Northam’s prospects and fortunes. The enlarged smelter complex is pivotal to the group’s growth strategy, in that it

• supports the Booysendal expansion programme
• has the flexibility to handle and process higher UG2 volumes
• immediately raises the group’s processing capacity to more than 1 million PGM ounces; and
• significantly reduces our operational risk.

“As the new furnace is steadily ramped up to its full capacity, it will allow the processing of excess concentrate stocks, thereby reducing inventory and providing a boost to revenue in the second half of the financial year,” said Dunne.

Referring to the group’s acquisitions and the focus on core business, Dunne pointed out that the Tumela transaction had been concluded, that the group had purchased a metals recycling asset in Pennsylvania, in the USA and had disposed of its 7.5% holding in the Pandora joint venture. After the end of the period the acquisition of Eland was also finalised.

Dunne concluded by pointing out that the next six months would be one of project execution and bedding down the recently acquired assets.

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

Shareholders are advised that the group’s loss per share for the period ended 31 December 2017 is estimated to range between 77.7 cents per share and 90.7 cents per share and the headline loss per share is estimated to range between 77.6 cents per share and 90.5 cents per share, compared with the loss per share of 64.8 cents and headline loss per share of 64.7 cents reported for the period ended 31 December 2016. The aforementioned ranges expressed in percentage terms, are, in respect of both the loss per share and headline earnings per share, an increase of 20% and 40% per share.

The anticipated loss is attributable to the Zambezi Platinum (RF) Limited (“Zambezi”) preference share dividends, which are consolidated in the group’s results in terms of the International Financial Reporting Standards. The Zambezi preference shares accrue dividends at a cumulative variable dividend of 3.5% over the prime overdraft interest rate in South Africa. Shareholders are reminded that 159 905 453 Northam shares are held for settlement of the Zambezi preference share liability in terms of the Northam guarantee and the accrued dividends are consolidated into the Northam results as a non cash item for Northam.

Although the platinum mining industry has experienced difficult economic conditions during the reporting period, both of the group’s operating mines, Zondereinde and Booysendal, are expected to record an operating profit.

The weighted average number of Northam shares in issue for the period ended 31 December 2017 was 349 875 759 (31 December 2016: 349 875 759 shares).

The information on which this trading statement and trading update is based has not been reviewed or reported on by the group’s external auditors. The reviewed interim results for the period ended 31 December 2017 are anticipated to be published on or about 23 February 2018.

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
9 February 2018

Sponsor and Debt Sponsor
One Capital

Northam shareholders are referred to the announcement published on SENS on 24 February 2017 in respect of the acquisition by Northam of the Eland Platinum mine, for a cash consideration of R175 million (the “Eland transaction”), subject to the fulfilment of certain conditions precedent.

Northam is pleased to announce that the Eland transaction has become unconditional. Northam will acquire full ownership of the Eland mine and ancillary infrastructure via Eland Platinum (Pty) Limited (“Eland Platinum”), a wholly-owned subsidiary of Northam.

Northam will operate Eland Platinum on a fully integrated mine to market basis. PGM concentrate produced at Eland mine will be beneficiated 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. The Eland transaction further diversifies Northam’s asset footprint and significantly enhances the long-term optionality and flexibility of Northam’s asset portfolio.”

Johannesburg
30 January 2018

Corporate Advisor, Sponsor and Debt Sponsor: One Capital

Attorneys: Cliffe Dekker Hofmeyr Inc.

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:

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 Listings Requirements, Northam advises its shareholders of the following dealing by an associate of a director of a major subsidiary of the company and of Zambezi Platinum:

Johannesburg
02 January 2018

Sponsor and Debt Sponsor
One Capital