Scope

THE PRIMARY PURPOSE OF OUR INTEGRATED REPORT IS TO EXPLAIN HOW WE CREATE VALUE FOR ALL STAKEHOLDERS OVER TIME

COMPLIANCE AND REPORTING GUIDELINES

Northam Platinum Limited (Northam or Northam Platinum or the group or the company) is listed on the Johannesburg Stock Exchange (JSE) in South Africa. This integrated report, the company’s notice of annual general meeting (AGM), and the audited annual financial results are published in compliance with the JSE’s listings requirements and the provisions of the South African Companies Act No 71 of 2008 (Companies Act).

Northam is committed to reporting in line with the King Report on Corporate Governance for South Africa 2016 (King IV), published on 1 November 2016. The effective date for disclosure on the application is for the year ending 30 June 2018. The application of these guidelines is reviewed in the corporate governance section of this report.

In its financial disclosure, the group and company reports in terms of International Financial Reporting Standards (IFRS), interpretation issued by the IFRS Interpretations Committee, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and financial pronouncements as issued by the Financial Reporting Standards Council, the JSE listing requirements, the Companies Act and the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC).

Northam’s financial year runs from 1 July to 30 June. In this 2017 financial year (the 2017 reporting period), Northam has continued with its integrated approach to reporting, first embarked upon in F2012. This approach seeks to present to stakeholders a holistic overview of the group’s financial and nonfinancial performance for the reporting period and incorporates the recommendations of the International Integrated Reporting Council (IIRC) and the Global Reporting Initiative (GRI) fourth generation (G4) guidelines. This holistic overview provides a summary of the business, its performance and the value it creates for stakeholders and an assessment of the group’s governance, economic, social and environmental impacts and performance during the reporting period.

REPORTING UNDER THE CAPITALS

The primary purpose of our integrated report is to explain how we create value for all stakeholders over time, through a combination of quantitative and qualitative information. We use the capitals concept to convey this information. The International Integrated Reporting Framework defines capitals as stocks of value that are affected or transformed by the activities and outputs of an organisation. In our report, we have focused on financial, human, social, natural and combined manufactured and intellectual capital.

MATERIAL ISSUES

In formulating our strategy and determining our strategic priorities, we continue to consider those issues that are most material to the business and stakeholders, influence the sustainability of our business and the social, economic and physical environments in which we operate and which fundamentally influence the assessments and decisions of stakeholders.

AUDITING AND ASSURANCE

Northam’s internal and external auditing functions are critical areas of governance. The internal audit function is outsourced to KPMG Services Proprietary Limited (KPMG) for independent appraisal. KPMG’s chief task is to examine and evaluate the group’s systems of internal control in the mitigation of business and financial risks.

The group’s consolidated and separate annual financial statements have been audited by the external auditor, Ernst & Young Inc. The independent auditor’s report may be found in the annual financial statements.

Certain non-financial key performance indicators have been included as part of a limited assurance engagement undertaken by external assurance services provider Ernst & Young Inc in respect of Northam’s application of GRI G4 Guidelines. The group reports in line with the ‘core’ format. The reporting process has also been underpinned by the AA1000 AccountAbility Principles Standards 2008, which include Inclusivity, Materiality and Responsiveness. See the independent assurance report.

REPORTING PARAMETERS AND DEFINITIONS

The financial statements include the group’s subsidiaries, joint ventures and associates. The non-financial disclosure is limited to the group’s two wholly-owned operations, the Zondereinde and Booysendal mines. Discussion on performance is confined to those entities where the group is the operator.

Except where specifically stated otherwise, Northam reports ore resources, reserves, production and grades in terms of platinum, palladium, rhodium and gold content. This is expressed as 3PGE+Au or 4E.

Employees are those people directly employed by Northam. Indirect employees are those people employed by contracting companies i.e. providers of specialised and/or technical services to the operations.

Both ZAR and R signify rands, the South African currency.

Non-financial reporting indicators are defined in a glossary available on the Northam website at www.northam.co.za