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ANNUAL INTEGRATED REPORT 2014

Five-year operating and financial review

STATEMENT OF COMPREHENSIVE INCOME – GROUP (R000)
  2014 2013 2012 2011* 2010*
Sales revenue 5 339 397 4 420 977 3 684 000 3 571 048 3 945 083
Cost of sales 5 227 915 3 813 301 3 345 311 3 185 754 3 160 108
Operating costs 3 536 002 2 826 094 2 632 926 2 258 548 2 230 369
Concentrates purchased 918 605 657 540 624 774 787 316 735 090
Refining and other costs 267 117 161 591 100 612 68 804 92 972
Depreciation and impairments 445 875 234 690 190 287 147 838 167 346
Change in metal stocks 110 316 (66 614) (203 288) (76 752) (65 669)
           
Operating profit 61 482 607 676 338 689 385 294 784 975
Share of profits from associate 3 464 13 783 16 602 7 248 12 440
Investment revenue 59 963 33 434 53 951 85 520 167 655
Finance charges (176 124) (17 946) – – –
Net sundry income/(expenditure) 97 011 60 108 43 343 53 148 9 557
Profit before tax 45 796 697 055 452 585 531 210 974 627
Tax 26 199 169 054 142 073 182 001 333 601
Net profit after tax 19 597 528 001 310 512 349 209 641 026
Other comprehensive income          
Share of other comprehensive income from associate (1 327) (4 145) (9 868) – –
Profit and total comprehensive income for the year 18 270 523 856 300 644 349 209 641 026
Headline earnings 8 601 522 182 309 248 324 949 640 434
  1. *Where appropriate, financial results have been adjusted for changes in accounting policies and adoption of IFRS
  2. #Restated
NHM share vs Platinum Index [graph]
STATEMENT OF FINANCIAL POSITION – GROUP (R000)
  2014 2013 2012 2011* 2010*
Property, plant and equipment 11 940 390 11 931 051 9 135 822 8 498 935 7 660 720
Interests in associates 496 509 495 498 505 415 505 327 129 741
Other non-current assets 308 525 196 440 189 976 144 278 111 833
  12 745 424 12 622 989 9 831 213 9 148 540 7 902 294
Current assets 1 995 572 1 734 675 1 232 339 2 725 916 2 117 683
Inventories 1 076 853 878 530 811 183 604 647 521 462
Trade and other receivables 244 672 547 920 303 268 410 621 318 054
Investment in escrow – – – – 91 458
Cash and cash equivalents 666 174 298 580 104 980 1 697 853 1 186 709
Receiver of revenue 7 873 9 645 12 908 12 795 –
Mineral resources classified as held-for-sale – – 1 180 300 – –
Total assets 14 740 996 14 357 664 12 243 852 11 874 456 10 019 977
Shareholders’ equity 11 391 872 10 815 635 10 413 247 10 115 352 8 833 154
Deferred tax 502 097 476 053 504 628 477 145 447 212
Domestic medium term notes 1 370 000 1 250 000 – – –
Non-current liabilities and provisions 285 365 271 773 143 972 107 335 64 948
Current liabilities 1 191 662 1 544 203 1 182 005 1 174 624 674 663
Total equity and liabilities 14 740 996 14 357 664 12 243 852 11 874 456 10 019 977
STATEMENT OF CASH FLOWS – GROUP (R000)
  2014 2013 2012 2011 2010
Operating cash flow 945 453 622 463 437 662 769 422 839 683
Cash generated from operations 555 911 877 529 595 918 726 807 947 920
Investment revenue 59 963 33 434 50 723 82 183 163 625
Change in working capital 270 562 (281 104) (90 367) 182 380 783
Change in short-term provisions 14 285 8 204 12 460 6 073 9 111
Interest paid 176 124 123 703 – – –
Taxation paid (131 392) (139 303) (131 072) (228 021) (281 756)
Investing cash flow (826 019) (1 801 501) (2 010 021) (197 171) (373 237)
Financing cash flow 248 042 1 372 638 (20 514) (61 107) (200 640)
Dividends paid (11 066) (21 747) (57 364) (90 202) (216 158)
Proceeds from issue of shares 579 033 2 007# – – –
Finance charges (176 124) (123 703) – – –
Revolving credit facilities utilised (250 000) 250 000 – – –
Domestic medium term notes issued 120 000 1 250 000 – – –
Other financing cash flows (13 801) 16 081 36 850 29 095 15 518
Net cash flow 367 476 193 600 (1 592 873) 511 144 265 806
Cash and cash equivalents at beginning of year 298 580 104 980 1 697 853 1 186 709 920 903
Cash and cash equivalents at end of year 666 056 298 580 104 980 1 697 853 1 186 709
  1. *Where appropriate, financial results have been adjusted for changes in accounting policies and adoption of IFRS.
  2. #Restated
Operating performance
  2104 2013 2012 2011 2010

ZONDEREINDE

          
Merensky          
Tons milled 803 736 958 211 884 660 793 490 1 002 208
Head grade – g/ton (3PGEs + Au) 5.8 5.8 5.9 5.6 5.9
UG2          
Tons milled 920 420 1 157 501 1 049 017 797 355 1 036 017
Head grade – g/ton (3PGEs + Au) 4.3 4.2 4.4 4.3 4.5
Combined          
Tons milled 1 724 156 2 115 712 1 933 677 1 590 845 2 038 225
Head grade – g/ton (3PGEs + Au) 5.0 4.9 5.1 4.9 5.2
Precious metals in concentrates produced – kg 7 331 9 041 8 979 7 779 9 999
Precious metals in concentrates purchased – kg 1 975 1 633 1 877 2 244 2 106
Precious metals sold – kg 9 827 10 704 9 980 9 872 12 313
Revenue – R/kg 400 381 365 217 335 325 323 899 288 255
Operating costs – R/kg 395 629 327 331 311 645 307 203 236 769
Cash costs – R/kg 358 891 302 048 283 934 279 118 215 900
Precious metals in concentrates produced – oz 235 693 290 675 288 675 250 100 321 475
Precious metals in concentrates purchased – oz 63 488 52 502 60 347 72 146 67 709
Precious metals sold – oz 315 941 344 128 320 861 317 392 395 879
Price realised – US$/oz 1 198 1 276 1 345 1 439 1 185
Operating costs – US$/oz 1 189 1 154 1 247 1 363 983
Cash costs – US$/oz 1 078 1 065 1 136 1 238 885

BOOYSENDAL

          
UG2          
Tons milled 1 233 089 – – – –
Head grade – g/ton (3PGEs + Au) 2.6 – – – –
Precious metals in concentrates produced – kg 2 882 – – – –
Precious metals sold – kg 2 503 – – – –
Revenue – R/kg 398 710 – – – –
Operating costs – R/kg 361 902 – – – –
Cash costs – R/kg 277 308 – – – –
Precious metals in concentrates produced – oz 92 668 – – – –
Precious metals sold – oz 80 476 – – – –
Price realised – US$/oz 1 186 – – – –
Operating costs – US$/oz 1 087 – – – –
Cash costs – US$/oz 833 – – – –
  1. #Restated
GROUP SALES
  2014 2013 2012 2011 2010
Group sales per metal – oz          
Platinum 241 831 212 373 195 735 196 688 242 596
Palladium 117 305 100 716 92 000 90 710 116 303
Rhodium 31 007 25 281 27 095 23 550 28 655
Gold 6 275 5 757 6 031 6 444 8 325
Total – 3PGE + Au 396 417 344 127 320 861 317 392 395 879
Group prices realised – US$/oz          
Platinum 1 433 1 568 1 622 1 698 1 452
Palladium 756 683 679 671 384
Rhodium 1 010 1 117 1 523 2 251 2 193
Gold 1 289 1 584 1 686 1 368 1 093
Basket – 3PGE + Au 1 198 1 276 1 345 1 439 1 185
Group prices realised – R/kg          
Platinum 478 261 448 004 404 433 382 245 353 507
Palladium 252 876 195 716 169 151 150 703 93 417
Rhodium 340 018 322 085 381 165 508 056 532 925
Gold 433 281 455 474 421 395 308 068 266 527
Basket – 3PGE + Au 400 042 365 217 335 325 323 899 288 255
FINANCIAL PERFORMANCE – GROUP
  2014 2013 2012 2011 2010
Operating margin – % 1.2 13.7 9.2 10.8 19.9
Effective tax rate – % 57.2 24.3 31.4 34.3 34.2
Return on shareholders’ equity – % 0.2 5.0 3.0 3.7 7.3
Return on total assets – % 0.1 3.7 2.5 2.9 6.4
Current ratio 1.7 1.1 1.0 2.3 3.1
Acid ratio 0.6 0.2 0.1 1.4 1.8
US Dollar / Rand exchange rate          
– average 10.35 8.82 7.77 7.01 7.59
– at year end 10.61 10.01 8.16 6.78 7.67
Share performance
  2014 2013 2012 2011# 2010#
Weighted average number of shares in issue – 000 390 970 382 561 382 426 363 088 360 292
Number of shares at year end – 000 397 586 382 586 382 497 382 416 360 642
Operating cash flow per share – cents 226.5 137.0 114.4 211.9 239.4
Earnings per share – cents 2.4 132.0 81.2 96.2 177.9
Headline earnings per share – cents 2.2 136.5 80.9 89.5 177.8
Dividends per share – cents – – 5.0 15.0 40.0
Dividend cover – – 16.2 6.0 4.4
Net asset value per share – cents 2 865.0 2 827.0 2 722.0 2 645.0 2 449.0
Share price (cents)          
– high 4 790 4 098 2 398 5 153 5 772
– low 3 186 2 251 2 281 3 920 2 700
– at year end 4 550 3 200 2 325 4 247 4 550
Platinum sector index at year end 46.8 37.1 51.2 69.5 73.5
Compound return over 5 years – % 9.0 (13.2) (13.0) 6.6 35.7
Average monthly volume of shares traded – 000 14 793 20 257 23 555 16 289 17 188
Annual liquidity (%) 45.4 63.5 73.9 53.8 57.2
  1. #Restated