Announcements 2020

Notice of an acquisition of a beneficial interest in Northam securities

In accordance with section 122(3)(b) of the Companies Act, No. 71 of 2008, as amended, and paragraph 3.83(b) of the JSE Limited Listings Requirements, Northam shareholders are advised that the company has received notification that Coronation Asset Management Proprietary Limited, on behalf of its clients (“Coronation”), has acquired a beneficial interest in Northam securities (the “Acquisition”).


In accordance with section 122(3)(b) of the Companies Act, No. 71 of 2008, as amended, and paragraph 3.83(b) of the JSE Limited Listings Requirements, Northam shareholders are advised that the company has received notification that Coronation Asset Management Proprietary Limited, on behalf of its clients (“Coronation”), has acquired a beneficial interest in Northam securities (the “Acquisition”).

Following the Acquisition, Coronation now holds 5.03% of the total issued ordinary share capital of the company.

Johannesburg
14 September 2020

Sponsor
One Capital

Interest payments notification – NHM012 AND NHM015

Northam bondholders are advised of the following interest payments due on Monday, 14 September 2020:


Northam bondholders are advised of the following interest payments due on Monday, 14 September 2020:

Bond Code: NHM012
ISIN: ZAG000160136
Coupon: 7.692%
Interest Period: 15 June 2020 to 13 September 2020
Interest Amount Due: R584 332.79
Payment Date: 14 September 2020
Date Convention: Following Business Day

Bond Code: NHM015
ISIN: ZAG000164922
Coupon: 7.242%
Interest Period: 15 June 2020 to 13 September 2020
Interest Amount Due: R9 027 698.63
Payment Date: 14 September 2020
Date Convention: Following Business Day

Johannesburg
9 September 2020

Debt Sponsor
One Capital

Listing of tap issue – NHM016

The JSE Limited (“JSE”) has granted approval for the listing of a tap issuance of NHM016 Senior Unsecured Floating Rate Notes (“Notes”), issued under the Northam Platinum Limited ZAR10 000 000 000 Domestic Medium Term Note Programme, dated 3 August 2012, as amended and supplemented from time to time (“Programme”), as guaranteed by Booysendal Platinum Proprietary Limited, with effect from 7 September 2020.


The JSE Limited (“JSE”) has granted approval for the listing of a tap issuance of NHM016 Senior Unsecured Floating Rate Notes (“Notes”), issued under the Northam Platinum Limited ZAR10 000 000 000 Domestic Medium Term Note Programme, dated 3 August 2012, as amended and supplemented from time to time (“Programme”), as guaranteed by Booysendal Platinum Proprietary Limited, with effect from 7 September 2020.

The details pertaining to the tap issue of NHM016 series are as follows:

Instrument Type: Senior Unsecured Floating Rate Notes
Total Notes in Issue: ZAR5 806 715 839.00 including this issue
Instrument Code: NHM016
Tranche Number: 3
Nominal Amount: ZAR165 966 845.00
Issue Price: 100.573288%
Interest Rate: 3 Month ZAR-JIBAR plus 425 bps per annum
Interest Rate Determination Date(s): 11 August, 11 November, 11 February, and 11 May (or the first Business Day of each Interest Period) of each year until the Maturity Date
Coupon Rate Indicator: Floating
Issue Date: 7 September 2020
Interest Commencement Date:
Maturity Date:
Final Redemption Amount:
11 August 2020
11 May 2025
100% of Nominal Amount
Last Day to Register: By 17h00 on 31 July, 31 October, 31 January and 30 April of each year until the Maturity Date or if such day is not a Business Day, the Business Day before each Books Closed Period
Books Closed Period: 1 August to 10 August, 1 November to 10 November, 1 February to 10 February and 1 May to 10 May of each year until the Maturity Date (all dates inclusive), or if any early redemption occurs, 10 Days prior to the actual Redemption Date
Floating Interest Payment Date(s): 11 August, 11 November, 11 February, and 11 May of each year until the Maturity Date, or, if such day is not a Business Day, the Business Day on which interest will be paid, as determined in accordance with the Applicable Business Day Convention
ISIN: ZAG000167750
Business Day Convention: Following Business Day
Other: The applicable pricing supplement (“APS”) contains additional terms and conditions to the Terms and Conditions as contained in the Programme, (“Additional Terms and Conditions”)
Summary of Additional Terms and Conditions: The Additional Terms and Conditions pertain to the applicable guarantee and the amendment of Condition 16.1 (Senior Notes) by including additional Events of Default in terms of Condition 16.1.1.9 (Other) of the Terms and Conditions. Investors should refer to Appendix “A” of the APS for full details of the Additional Terms and Conditions, available on Northam’s website: https://www.northam.co.za/downloads/send/96-files/1319-applicable-pricing-supplement-nhm016-04-september-2020

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

Johannesburg
4 September 2020

Sole Arranger, Dealer and Debt Sponsor to Northam in respect of the Notes
One Capital

Attorneys to Northam, the Arranger and the Dealer in respect of the Notes
Bowman Gilfillan Inc.

Interest payment notification – NHM013

Northam bondholders are advised of the following interest payment due on Wednesday, 9 September 2020:


Northam bondholders are advised of the following interest payment due on Wednesday, 9 September 2020:

Bond Code:

NHM013

ISIN:

ZAG000162181

Coupon:

6.342%

Interest Period:

9 June 2020 to 8 September 2020

Interest Amount Due:

R81 525.11

Payment Date:

9 September 2020

Date Convention:

Following Business Day

Johannesburg
4 September 2020

Debt Sponsor
One Capital

Another record year for Northam

Johannesburg, 28 August 2020.  Northam Platinum has issued its annual results for the year ended 30 June 2020.  The following documents, making up the suite of 2020 published reports, are available on the Northam website at www.northam.co.za for review. 


…COVID-19 challenges notwithstanding…

Johannesburg, 28 August 2020.  Northam Platinum has issued its annual results for the year ended 30 June 2020.  The following documents, making up the suite of 2020 published reports, are available on the Northam website at www.northam.co.za for review. 

The suite of reports includes:

KEY FEATURES FOR THE YEAR

  • Record revenue of R17.8 billion
  • Record operating profit of R5.3 billion
  • Estimated COVID-related production loss of 108.7 koz 4E
  • Net debt contained to R3.3 billion
  • First production of ~35 koz from Eland
  • ZPLP ownership at 46.7% (R6.0 billion market value)

Speaking to the investment community today, chief executive Paul Dunne commented on the significant impact of the COVID-19 pandemic. “At our operations we have lost five employees to the virus, one of these being a contractor employee. We recognise that premature and unexpected loss of life can have a devastating impact and our sincere condolences go out to the families of the deceased.

“Our operations were badly affected by the national lockdown and phased restart. It is testament to the efforts of mine management, working closely with organised labour and the regulators, that we limited this impact, restarting operations in a safe and sustainable manner.”

As a response to the pandemic, Northam has prioritised the health and well-being of its employees and host communities, and developed an action plan to minimise the social and economic impacts, which comprised:

  • Paying employees and protecting their jobs
  • Implementation of comprehensive health measures and safety protocols to reduce the potential for infection
  • Driving towards operational normalisation, maintaining a focus on safe and sustainable production - Booysendal and Eland are back at full production and Zondereinde is getting there
  • Managing the company’s cash position by trimming capex and restructuring our DMTN programme.

The direct cost estimate of COVID-19 is approximately R1 billion. In order to assist with COVID-19 relief efforts Northam donated funds to the group’s two community trusts.

PERFORMANCE REVIEW
Metal production was flat year on year at 515 370 oz 4E, given the COVID-19 related loss of more than 100 koz, which effectively neutralised the record H1 production levels. However, on the back of a 67.4% increase in rand denominated basket prices, revenue reached a record high of R17.8 billion.  This translated into record operating profit of R5.3 billion and record EBITDA of R6 billion. Net debt was contained to R3.3 billion, and the net debt to EBITDA ratio was held well within the target of 1:1.

The average US dollar sales prices achieved during the year under review improved for most metals.  Palladium and rhodium both performed well, increasing by 52.4% and 169.8%, respectively.  Both these metals continued their upward trends subsequent to the financial year end. Platinum however, making up roughly 60% of the sales volume of Northam’s precious metals 4E basket, continues to be the laggard. The average price achieved during the year was USD858/oz (F2019: USD824/oz), which impacted the 4E basket price achieved. Platinum now only contributes 28.0% (F2019: 46.3%) to the 4E basket. Any upward movement in the platinum price will have a positive impact on the profitability of the group.

Now in the fourth phase of its strategic journey of developing low-cost long-life quality assets, Northam has continued to purchase Zambezi preference shares during the year, and post year end. Its current holding is 46.7% of all shares in issue, and the current value is R5.6 billion which is effectively a value return to shareholders.

Group operational overview
The group’s equivalent refined metal from own operations fell by 0.9% to 515 370 oz 4E (F2019: 519 954 oz 4E. This is 108 685 oz 4E below target and is directly related to the losses associated with the lockdown and the restart of mining activities.

The brunt of losses was felt at the conventional Zondereinde mine; the mechanised Booysendal mine recovered well and group losses were partially offset by additional processing of surface sources at Eland mine.

Group unit cash costs per equivalent refined platinum ounce increased by 28.2% to R29 281/Pt oz. This increase in unit cash cost is the result of the high fixed cost component of underground mining, allied with the production losses incurred.

Total group capital expenditure reduced year on year to R2.4 billion, owing to planned cutbacks and project completion. A decision to temporarily scale back on specific growth projects in the interest of liquidity management was made after the onset of the COVID-19 pandemic.

Projects that have been temporarily scaled back include;

  • the Central Merensky module at Booysendal mine,
  • aspects of the number 3 shaft project at Zondereinde mine and
  • the stoping build-up at Eland mine.

Despite the decision to reduce growth capital spend, the group continues to deliver on its strategy of developing low-cost, long-life assets in order to position itself at the lower end of the industry cost curve.

Scale backs have been structured to minimise the impact on project critical paths. As such, the overall impact on the group’s growth is limited.

At Zondereinde mine, stoping is ramping up within the western extension section and further progress has been made on the deepening project. The pilot hole for the planned number 3 shaft has been completed and reaming to ultimate shaft diameter will commence during the first half of F2021. At the metallurgical facilities, upgrades to the material handling infrastructure are nearing completion. The coming years will see work start on capacity increases at both the original smelter furnace and the base metal removal plant.

The development of Booysendal South is progressing on schedule and on budget, with surface infrastructure construction almost complete and underground development at the UG2 mine on track. Work on the North aerial rope conveyor is continuing, but COVID-19 related stoppages have led to planned commissioning being delayed to December 2021. North Merensky mine build-up will continue.

At Eland mine, processing of surface materials has out-performed budget and will continue. Development of the Kukama decline system has progressed well. An early mining demonstration is ongoing, as is strike development to connect with the Maroelabult section. Despite the decision to pull back on stoping build-up, primary development at Eland mine will continue.

In conclusion
Going forward, Northam guided to PGM production in the range of 650 koz to 670 koz 4E with unit cash costs to be between R28 500 and R29 000/Pt oz, for the next two years. Sales will follow production and will allow for the number 1 furnace rebuild scheduled this year. The capital forecast, for both F2021 and F2022 is estimated at between R2.3 billion and R2.5 billion. At current rand basket price levels the company should generate healthy cash flows.

Paul Dunne pointed to a second meaningful ramp up in production, predominantly coming from the Booysendal South mine. “Growth from all operations will contribute to our medium-term annual production target of 1 million oz 4E over the forecast period.”

Issued by R&A Strategic Communications, Johannesburg, Tel +27 (0)11 880 3924;

Marion Brower +27 71 493 0387; Taryn van Olden 079 527 6882

Abridged audited group annual results for the year ended 30 June 2020 and notice of Annual General Meeting

Despite the challenges of the COVID-19 pandemic, this has been a record year for Northam. The company has commenced the fourth strategic phase by returning meaningful value to Northam shareholders (“shareholders”) and remains committed to returning further value going forward.


Key features:

  • Record revenue of R17.8 billion
  • Record operating profit of R5.3 billion
  • Record EBITDA of R6.0 billion
  • Record normalised headline earnings of R3.4 billion equating to 676.3 cents per share, up 150.4%
  • Record profit after tax of R2.2 billion
  • Return of shareholder value, through 46.7% Zambezi preference share ownership
  • Net debt of R3.3 billion

Financial results
Despite the challenges of the COVID-19 pandemic, this has been a record year for Northam. The company has commenced the fourth strategic phase by returning meaningful value to Northam shareholders (“shareholders”) and remains committed to returning further value going forward.

The group achieved record sales revenue, record operating profit and record earnings before interest, taxation, depreciation and amortisation (“EBITDA”) for the year. These record outcomes were achieved notwithstanding the impact of mine and production stoppages, which occurred as a result of the COVID-19 induced lockdown. Prior and up to the commencement of the lockdown period, the group was on track to achieve record production from own operations during the year ended 30 June 2020 (“F2020”).

Sales revenue increased by 67.3% to R17.8 billion (F2019: R10.6 billion) for the year. This increase is attributable to a 60.8% rise in the 4E basket price to USD1 764/oz (F2019: USD1 097/oz) and a 10.9% weaker ZAR/USD exchange rate realised.

Despite logistical hurdles associated with the COVID-19 pandemic, including border closures that made the distribution of refined metal challenging, the group maintained robust refined metal sales of 560 238 4E oz. This highlights the strong relationships that Northam has developed and maintained with its industrial customer base over many years.
The average US dollar sales prices achieved during the year under review improved for most metals.  Palladium and rhodium both performed well, increasing by 52.4% and 169.8%, respectively.  Both these metals continued their upward trends subsequent to the financial year end. Platinum however, making up roughly 60% of the sales volume of Northam’s precious metals 4E basket, continues to be the laggard. The average price achieved during the year was USD858/oz (F2019: USD824/oz), which impacted the 4E basket price achieved. Platinum now only contributes 28.0% (F2019: 46.3%) to the 4E basket. Any upward movement in the platinum price will have a positive impact on the profitability of the group.

The group continues to deliver on its strategy of developing low-cost, long-life assets which are positioning the group for further strong financial performance even in subdued or potentially volatile commodity markets. The benefit of Northam’s growth strategy, initiated in 2015, is evidenced by some of the key financial highlights listed below:

Highlights

 

30 June 2020

30 June 2019

Variance
%

Sales revenue

R17.8 billion

R10.6 billion

67.3

Operating profit

R5.3 billion

R2.4 billion

120.0

Operating profit margin

29.8%

22.6%

31.9

Normalised headline earnings

R3.4 billion

R1.4 billion

150.4

Earnings per share

620.0 cents

17.2 cents

>1000.0

Headline earnings per share

619.5 cents

15.8 cents

>1000.0

Normalised headline earnings per share

676.3 cents

270.1 cents

150.4

EBITDA

R6.0 billion

R2.6 billion

128.3

EBITDA margin

33.8%

24.8%

36.3

Capital expenditure

R2.4 billion

R2.9 billion

(17.2)

Dividends and other means of returning value to shareholders

There are a number of ways that value can be returned to shareholders. This includes cash dividends, but also includes share buy-backs or the purchase of the Zambezi Platinum (RF) Limited (“Zambezi”) preference shares.

During the year under review, Northam returned value to shareholders by acquiring 49 364 435 Zambezi preference shares for R3.7 billion. Subsequent to year end an additional 21 134 297 preference shares were acquired for R1.7 billion. Northam now holds 46.7% of the total issued number of Zambezi preference shares.

The board has therefore resolved not to declare a dividend for the financial year ended 30 June 2020 (F2019: RNil).

NOTICE OF ANNUAL GENERAL MEETING

The annual general meeting (“AGM”) of shareholders will be held on Friday, 27 November 2020 at 10:00 to transact the business as stated in the notice of AGM and abridged annual report 2020 (“notice and abridged annual report 2020”). 

In light of the COVID-19 pandemic, the AGM will be held entirely by way of electronic participation. Shareholders are encouraged to read the notice and abridged annual report 2020 for information on how to attend electronically, participate in and vote at the AGM.

Shareholders are advised that the notice and abridged annual report 2020, containing the summarised audited annual financial statements for the year ended 30 June 2020, will be distributed to shareholders today, 28 August 2020.

The annual integrated report 2020, the complete consolidated audited annual financial statements which incorporates the external auditors’ report in which Ernst & Young Inc. expressed an unmodified audit opinion and the notice and abridged annual report 2020 are available on the company’s website at https://www.northam.co.za/investors-and-media/publications/annual-reports or can be obtained from the company’s registered office on request.

The salient dates for the AGM are as follows:

 

2020

Record date to determine which shareholders are entitled to receive the notice and abridged annual report 2020, on Friday, 21 August
Distribution of the notice and abridged annual report 2020 to shareholders, on Friday, 28 August
Last date to trade in order to be recorded in the register to be able to electronically attend, participate in and vote at the AGM, on Tuesday, 10 November
Record date to determine which shareholders are entitled to electronically attend, participate in and vote at the AGM, on Friday, 13 November
For administration purposes, forms of proxy to be lodged by 10:00, on * Thursday, 26 November
AGM to be held at 10:00, on Friday, 27 November
Results of AGM published on SENS, on Friday, 27 November

  * Any forms of proxy not lodged by this date and time must be submitted to the chairman of the AGM before the start of the AGM, electronically, as set out in the notice and abridged annual report 2020, before the appointed proxy may exercise any rights of the shareholder at the AGM.

This short-form announcement is the responsibility of the directors and is only a summary of the information contained in the full results announcement and does not contain full or complete details.

Any investment decision should be based on the full results announcement accessible via the JSE link at https://senspdf.jse.co.za/documents/2020/JSE/ISSE/NHM/AFS_2020.pdf and also available on Northam’s website at https://www.northam.co.za/investors-and-media/publications/annual-reports.

The consolidated audited annual financial statements, from which the full results announcement has been extracted, have been audited by Ernst & Young Inc., who expressed an unmodified opinion thereon. The key audit matters contained in the auditor’s report are addressed on page 12 of the consolidated audited annual financial statements, which is available on Northam’s website at https://www.northam.co.za/investors-and-media/publications/annual-reports.

The full results announcement and the consolidated audited annual financial statements, incorporating the auditors’ report, are also available at our registered office and at the office of our sponsor for inspection, at no charge, during office hours.

On behalf of the board at Johannesburg on 18 August 2020.

KB Mosehla                                                               PA Dunne
Chairman                                                                   Chief executive

DIRECTORS  
KB Mosehla (non-executive chairman)
R Havenstein (lead independent non-executive director)
PA Dunne * (chief executive officer)
AH Coetzee (chief financial officer)
DH Brown (independent non-executive director)
CK Chabedi (non-executive director)
HH Hickey (independent non-executive director)
NY Jekwa (independent non-executive director)
MH Jonas (independent non-executive director)
TE Kgosi (non-executive director)
TI Mvusi (independent non-executive director)
JJ Nel (independent non-executive director)
JG Smithies * (independent non-executive director)

* British

Registered office
Building 4, 1st Floor, Maxwell Office Park
Magwa Crescent West
Waterfall City
Jukskei View, 2090
South Africa

PO Box 412694
Craighall, 2024
South Africa

Telephone +27 11 759 6000
www.northam.co.za

Company secretary
PB Beale
Building 4, 1st Floor, Maxwell Office Park
Magwa Crescent West
Waterfall City
Jukskei View, 2090
South Africa

P O Box 412694
Craighall, 2024
South Africa

e-mail: trish.beale@norplats.co.za

Transfer secretaries
Computershare Investor Services Proprietary
Limited
Rosebank Towers
15 Biermann Avenue
Rosebank, 2196
South Africa

Private Bag X9000
Saxonwold, 2132
South Africa

Corporate advisor, sponsor and debt sponsor
One Capital
17 Fricker Road
Illovo, 2196
Johannesburg
South Africa

PO Box 784573
Sandton, 2146
South Africa

Johannesburg
28 August 2020

Interest payment notification – NHM017

Northam bondholders are advised of the following interest payment due on Wednesday, 26 August 2020:


Northam bondholders are advised of the following interest payment due on Wednesday, 26 August 2020:

Bond Code: NHM017
ISIN: ZAG000167891
Coupon: 6.942%
Interest Period: 13 May 2020 to 25 August 2020
Interest Amount Due: R9 883 220.79
Payment Date: 26 August 2020
Date Convention:

Following Business Day

Johannesburg
21 August 2020

Debt Sponsor
One Capital

Interest payment notification – NHM018 AND NHM019

Northam bondholders are advised of the following interest payments due on Tuesday, 25 August 2020:


Northam bondholders are advised of the following interest payments due on Tuesday, 25 August 2020:

Bond Code: NHM018
ISIN: ZAG000168097
Coupon: 8.117%
Interest Period: 25 May 2020 to 24 August 2020
Interest Amount Due: R20 895 070.50
Payment Date: 25 August 2020
Date Convention:

Following Business Day

 

Bond Code: NHM019
ISIN: ZAG000168105
Coupon: 8.367%
Interest Period: 25 May 2020 to 24 August 2020
Interest Amount Due: R9 490 241.10
Payment Date: 25 August 2020
Date Convention:

Following Business Day

Johannesburg
20 August 2020

Debt Sponsor
One Capital

Interest payment notification – NHM011

Northam bondholders are advised of the following interest payment due on Monday, 24 August 2020:


Northam bondholders are advised of the following interest payment due on Monday, 24 August 2020:

Bond Code: NHM011
ISIN: ZAG000159237
Coupon: 7.808% per annum
Interest Period: 25 May 2020 to 23 August 2020
Interest Amount Due: R3 367 708,05
Payment Date: 24 August 2020
Date Convention:

Following Business Day

Johannesburg
19 August 2020

Debt Sponsor
One Capital

Media release: Northam acquires additional Zambezi pref shares

Northam has announced the acquisition of an additional 9 635 664 Zambezi preference shares for a total cash consideration of approximately R804.6 million. This latest transaction brings Northam’s total holding of Zambezi preference shares to 74 729 551, representing 46.7% of the Zambezi shares in issue.


Holding increases to 46.7% of Zambezi shares in issue

Johannesburg, Tuesday 18 August 2020. Northam has announced the acquisition of an additional 9 635 664 Zambezi preference shares for a total cash consideration of approximately R804.6 million. This latest transaction brings Northam’s total holding of Zambezi preference shares to 74 729 551, representing 46.7% of the Zambezi shares in issue.

The face value of the Northam owned prefs as at 17 August 2020, calculated at the initial issue price of the Zambezi preference shares plus accumulated preference share dividends, amounts to approximately R5.96 billion.

Northam’s acquisition of Zambezi preference shares will reduce the preference share dividend expense and liability included in Northam’s consolidated financial statements, as well as Northam’s potential financial exposure under the guarantee it provided to holders of Zambezi preference shares, should the guarantee be called upon.

Furthermore, should Zambezi elect to redeem the Zambezi preference shares through a distribution of ordinary shares in Northam held by Zambezi, then the redemption of the Zambezi preference shares held by Northam will result in a distribution of Northam shares to Northam, thereby reducing the number of Northam shares in issue.

The ZPLP acquisition has been fully funded through Northam’s internal cash resources.

Johannesburg
18 August 2020

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