Announcements 2008
- 08 Dec 2008
Appointment of Company Secretary
The Board is pleased to announce that Mr Bethuel Ngwenya has been appointed as Northam’s new company secretary with effect from 2 December 2008.
The Board is pleased to announce that Mr Bethuel Ngwenya has been appointed as Northam’s new company secretary with effect from 2 December 2008.
Johannesburg
8 December 2008
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
- 19 Nov 2008
Cautionary announcement
Shareholders are referred to the joint announcement by Mvela Resources, Northam and Implats dated 2 October 2008 and the subsequent announcements by Mvela Resources and Northam.
Cautionary announcement regarding the following proposed interconditional transactions:
- The unbundling by Mvela Resources of its entire shareholding in Northam to its shareholders;
- The acquisition by Implats of the entire issued share capital of Northam; and
- The acquisition by Implats of the entire issued share capital of Mvela Resources, post the unbundling of Northam
Shareholders are referred to the joint announcement by Mvela Resources, Northam and Implats (“the Parties”) dated 2 October 2008 and the subsequent announcements by Mvela Resources and Northam dated 20 October 2008 and 27 October 2008, regarding the proposed acquisition by Implats of the entire issued share capital of Mvela Resources and Northam through a series of inter-conditional transactions (“the Proposed Transaction”).
Shareholders are advised that due to the current global financial crisis and economic downturn, the decline in platinum group metal (“PGM”) prices, and the increased volatility within the capital markets, it has become increasingly difficult for the Parties to determine an exchange ratio that would be satisfactory to the shareholders of Implats, Mvela Resources and Northam at this time.
Although platinum and other PGMs are trading at 3 year lows, the long-term outlook for the platinum sector remains positive. The Parties continue to believe in the strategic rationale and benefits of the Proposed Transaction which would uniquely position the combined Implats, Mvela Resources and Northam group as a leading South African-listed company with meaningful empowerment credentials and a diverse portfolio of platinum assets. Implats remains interested in pursuing a transaction with Mvela Resources and Northam. However, Implats is not able to proceed with the Proposed Transaction on the basis of an exchange ratio of 35 Implats shares for every 100 Northam shares in the current market environment.
Implats’ due diligence investigation of Mvela Resources and Northam has been satisfactorily concluded. The Parties believe in the merits of the Proposed Transaction and are continuing discussions.
Shareholders of Mvela Resources, Northam and Implats are advised to exercise caution in their share dealings until a further announcement is made.
Johannesburg
19 November 2008
Financial advisor to Implats
Morgan Stanley South Africa (Pty) Ltd
Legal advisor to Implats
Bell Dewar Inc.
Financial advisors to Mvela Resources
JPMorgan Chase Bank N.A. (Johannesburg branch) and N M Rothschild & Sons South Africa (Pty) Ltd
Legal advisor to Mvela Resources
Bowman Gilfillan
Independent expert advisor to Northam and Mvela Resources
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Legal advisor to Northam
Brink Cohen Le Roux Inc.
Sponsor to Implats
Deutsche Securities (SA) (Pty) Ltd
Sponsor to Mvela Resources
JPMorgan Equities Ltd
Sponsor to Northam
Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
- 17 Nov 2008
Operational update and trading estimate
In view of the deteriorating global economic climate and its consequent effect on commodity prices, the company considers it prudent to provide shareholders with an update on its operational and financial performance for the first four months of the 2009 financial year.
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Introduction
In view of the deteriorating global economic climate and its consequent effect on commodity prices, the company considers it prudent to provide shareholders with an update on its operational and financial performance for the first four months of the 2009 financial year (?the period?). Numbers for the corresponding first four months of the previous financial year are provided for purposes of comparison.
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Salient features for the period
- Production of metals in concentrate up 14.3% to 3 543 kg (113 910 oz)
- Sales volumes up by 639 kg (20 544 oz)
- Healthy sales revenues at R1.3bn
- Average 3PGE+Au basket price of R359 844/kg (US$1 391per oz) realized, 24.3% higher year on year
- Operating margin of 45.8%
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Key operational statistics
4 months ended
31 October 20084 months ended
31 October 2007Development metres 4 370 4 199 Square metres mined 138 551 127 246 Tonnes milled 792 994 707 018 Head grade (g/tonne ? 3 PGE + Au) 5.2 5.0 Precious metals produced (3PGE+Au) (Kg) 3 543 3 099 Precious metals sold (3PGE+Au) (Kg) 3 271 2 632 Average price realised ? R/kg 359 844 303 383 Operating costs ? R/kg 206 708 188 831 Cash operating costs ? R/kg 182 876 169 973 Sales revenue (R?000) 1 288 820 947 692 Cost of sales (R?000) 698 936 440 723 Operating profit (R?000) 589 884 506 969 Profit after tax (R?000) 364 803 290 451 Operating cash flow (R?000) 242 456 108 750 Capital expenditure (R?000) 122 137 56 887 Earnings per share (cents) (Note 1) 117.5 122.4 Headline earnings per share (cents) (Note 1) 117.5 122.4 Weighted average number of shares in issue (Note 1) 310 500 508 237 279 195 Note 1 ? On 20 August 2008 the number of shares in issue increased by 121.0 million as a consequence of the implementation of the Booysendal Transaction.
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Capital expenditure
As indicated at the end of the 2008 financial year, capital expenditure for the year to 30 June 2009 is estimated at R352 million, of which R122 million has been spent to date. The major capital items included in this estimate are a provision of R75 million for the rebuild of the smelter at the Northam mine and R106 million allocated to the deepening project, specifically the decline to 18 level and related development.
The smelter rebuild is proceeding well, in line with the planned schedule and within budget, and remains due for recommissioning at the end of December 2008.
The decline to 16 level is expected to be complete by the end of the financial year after which related development and infrastructure for mining on 15 level will commence.
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Booysendal
The company is proceeding with the Booysendal feasibility study. This is scheduled for completion in the third quarter of calendar 2009. The estimated cost for the current financial year is R50 million of which R24 million has been spent to date. Initial indications that the Booysendal project will follow a modular production ramp-up approach remain unchanged.
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Cash and cash equivalents
As at 31 October 2008, the company had cash and cash equivalents of R917 million, (equivalent to R2.55 per share) after the payment of tax and dividends in excess of R1.1 billion.
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Outlook
During the smelter rebuild Northam?s precious metal concentrate is being refined in terms of a toll refining agreement with a third party. The longer metal pipeline in terms of this agreement will affect unit sales during the first half of the financial year with a consequential effect on earnings per share and headline earnings per share.
At the current spot metal prices and R/$ exchange rate, Northam?s average basket price for the financial year is estimated at R274 161 per kilogram of 3PGE+Au.
Although the rate of exchange of the South African Rand against the US dollar has been characterized by increasing levels of volatility since the end of the 2008 financial year, the Rand has traded weaker by 34% against the US dollar in the first four months of this financial year. Provided there is no significant increase in the value of the Rand against the US dollar from these levels, and spot metal prices do not decline further, the company is confident that it will continue to cover its cash costs and capital expenditure.
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General
The information contained in this announcement has been prepared in accordance with International Financial Reporting Standards (IFRS) and incorporate the accounting policies that are consistent with those adopted in the financial year ended 30 June 2008.
Shareholders are advised that the information included in this announcement is the responsibility of the Northam?s directors and has not been reviewed or reported on by the company?s auditors.
Johannesburg
17 November 2008
Sponsor
Barnard Jacobs Mellet Corporate Finance (Proprietary) Limited
- 12 Nov 2008
Update on accident at Northam Platinum
Further to the accident reported at the Northam platinum mine, on Tuesday 11 November 2008, it appears from initial investigations that the accident may have occurred as a result of drilling into an air pocket.
Johannesburg, 12 November 2008. Further to the accident reported at the Northam platinum mine, on Tuesday 11 November 2008, it appears from initial investigations that the accident may have occurred as a result of drilling into an air pocket. However, investigations into the accident are continuing, and the cause of the accident cannot yet be confirmed.
Drilling operations have been suspended at the mine until further investigations have been completed, and to allow for the retraining of miners.
Northam also confirms that, in a separate and unrelated incident on Monday 10 November 2008, another employee sustained a laceration to his forearm for which he has received treatment.
Enquiries:
Marion Brower
Russell & Associates
Johannesburg
Tel: +27 11 880 3924
- 11 Nov 2008
Fatality at Northam Platinum
The management of Northam regrets to advise the death of an employee at its mine near Thabazimbi in the Limpopo province.
Johannesburg, 11 November 2008. The management of Northam Platinum Limited (Northam) regrets to advise the death of an employee at its mine near Thabazimbi in the Limpopo province today, 11 November 2008 at approximately 11:00 in an underground incident.
The incident occurred at a working face some 1 900 metres underground. It is not yet clear what the cause of the incident was. Further details will be issued as they become available.
The name of the deceased is being withheld until his next of kin have been informed.
An investigation into the cause of the accident is currently being undertaken by the Department of Minerals and Energy (DME), organized labour and management.
Issued by:
Russell & Associates
Johannesburg
Tel: +27 11 880 3924
- 27 Oct 2008
Publication of pro forma financial effects and withdrawal of cautionary announcement
Shareholders of Mvela Resources and Northam are referred to the joint announcement published on 2 October 2008 regarding the proposed acquisition by Impala Platinum Holdings Limited.
Publication of pro forma financial effects and withdrawal of cautionary announcement (PDF - 104KB)
Shareholders of Mvela Resources and Northam are referred to the joint announcement published on 2 October 2008 regarding the proposed acquisition by Impala Platinum Holdings Limited.
Publication of pro forma financial effects and withdrawal of cautionary announcement (PDF - 104KB)
- 20 Oct 2008
Transaction update and further cautionary announcement
Shareholders of Mvela Resources and Northam are referred to the joint announcement published on 2 October 2008 regarding the proposed acquisition by Impala Platinum Holdings Limited.
Shareholders of Mvela Resources and Northam (“the parties”) are referred to the joint announcement published on 2 October 2008 (the “joint announcement”) regarding the proposed acquisition by Impala Platinum Holdings Limited (“Implats”), through a series of inter-conditional transactions, of the entire issued share capital of Mvela Resources and Northam by Implats (collectively, “the Proposed Transaction”).
The announcement of a firm intention to make an offer by Implats (“the firm intention”) is subject to certain pre-conditions, including, inter alia, confirmation by the Department of Minerals and Energy (“DME”) that the conversion credits which accrued to Anglo Platinum Limited pursuant to the transfer of Booysendal to Northam will not be prejudiced by the Proposed Transaction.
Shareholders of the parties are advised that the DME has reviewed the Proposed Transaction and confirmed that the implementation of the Proposed Transaction will not affect the BEE credits which have accrued to Anglo Platinum Limited.
Shareholders of the parties are reminded that the firm intention to make an offer is subject to certain other pre-conditions, and the implementation of the Proposed Transaction is subject to fulfilment of certain conditions precedent, as set out in the joint announcement.
Shareholders of Mvela Resources and Northam are advised to continue to exercise caution when dealing in their Mvela Resources and Northam shares until a further announcement is made.
Johannesburg
20 October 2008
Sponsor to Mvela Resources
JPMorgan Equities
Sponsor to Northam
Barnard Jacobs Mellet Corporate Finance
- 02 Oct 2008
Implats proposes to acquire Mvelaphanda Resources and Northam
Shareholders are advised that Implats has submitted letters of interest to the boards of directors of Mvela Resources and Northam proposing to acquire the entire issued share capital of Mvela Resources and Northam.
Implats proposes to acquire Mvelaphanda Resources and Northam (PDF - 46KB)
Shareholders are advised that Implats has submitted letters of interest to the boards of directors of Mvela Resources and Northam proposing to acquire the entire issued share capital of Mvela Resources and Northam.
Implats proposes to acquire Mvelaphanda Resources and Northam (PDF - 46KB)
- 29 Sep 2008
Resignation of Company Secretary: S J Van Der Spuy
Northam advises that Sybrand van der Spuy has tendered his resignation as company secretary with effect from 31 October 2008.
An appointment to fill this position will be made in due course.
Johannesburg
29 September 2008
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
- 12 Sep 2008
Joint cautionary announcement
Shareholders of Mvela Resources and Northam (“the Companies”) are advised that the Companies have received approaches from interested parties which may result in an offer or offers to acquire the entire issued share capital of Mvela Resources and Northam.
Shareholders of the Companies are advised that due to Mvela Resources` classification as a “pyramid company” in terms of the Securities Regulation Code on Takeovers and Mergers (“SRP Code”), any offer resulting in a change in control of Mvela Resources requires the offeror(s) to make a comparable offer to shareholders of Northam in accordance with Rule 6.3 of the SRP Code. Any potential transactions arising from such approaches, if successfully concluded, may have a material impact on the price of the Companies’ securities. Shareholders of Mvela Resources and Northam are therefore advised to exercise caution when dealing in the Companies` securities until a further announcement is made.
Johannesburg
12 September 2008
Sponsor to Mvela Resources
J.P. Morgan Equities
Sponsor to Northam
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
- 25 Aug 2008
Northam Platinum reports strong set of results in tough operating conditions
Establishes firm strategic foothold in the eastern Bushveld Complex
Johannesburg, 25 August 2008: Northam Platinum Limited (Northam, JSE: NHM) released results for the year ended 30 June 2008 today, Monday 25 August 2008. Highlights include:
- The diversification of the company’s asset base with the consummation of the Booysendal transaction, thereby transforming the company’s prospects to grow into a significant, long-life PGM producer;
- Securing the company’s BEE credentials at the equity level and establishing a strategic foothold in the eastern limb of the Bushveld Complex;
- Signing a concentrate offtake agreement with Platmin’s Pilanesberg Platinum Mines;
- Sales revenues climb to record R3.89 billion;
- Northam mine continues to generate strong cash flows at R1.55 billion;
- 12.6% increase in after-tax profits to R1.50 billion;
- Healthy operating margin at 58.9%;
- Headline earnings reach 627 cps;
- Final dividend of 185 cps declared (330 cps for the year);
- Strong, ungeared balance sheet remains intact.
The Northam mine continued to generate strong levels of cash, at R1.50 billion in the year under review, underpinned by the growth in revenue from metal sales, 3.9% higher year on year at R3.89 billion. Exceptionally strong metal prices, particularly in H2, helped to offset the effect of lower production of metals in concentrate at 9,113 kg (292,989 oz). The 9.7% drop in output was attributable largely to the effects of safety-related stoppages, operational difficulties arising from intermittent power supply and industrial action, which was a feature of the mining industry in South Africa in the reporting period. These impacts were exacerbated at the Northam mine by the ongoing difficulties associated with mining the Merensky pothole facies. Year on year, tonnages mined from the Merensky reef horizon were 17.8% lower at 205,251 tonnes.
“However,” said Northam chief executive Glyn Lewis, “with the continued management focus on improvements to our metallurgical operations, we were able to grow the proportion of UG2 ore treated, which contributed to the 3.8% increase in tonnages from this reef to 963,033 tonnes (F2007: 928,149). Taking into account the production shifts lost, this was a creditable performance and helped to stem the decline in total tonnages milled to 10.9%.”
The lower volumes, along with inflationary cost pressure, had a negative impact on unit cash costs, which at R175,197/kg were 29.5% higher year on year. However the increase in total operating costs was contained to 19.5%. Looking to F2009, Lewis commented, that in the absence of external factors affecting operations, production levels in the next year were likely to increase, which would lead to some improvement in the relative cost performance.
Booysendal platinum project
With the consummation of the Booysendal transaction, work continues apace on the Booysendal project. The prefeasibility study review, which included a geological review, an investigation of mining methods and project elements such as metallurgy, engineering, infrastructure and the associated environmental issues, has been concluded.
Lewis added that the intensive and extensive work of the prefeasibility review had now laid the foundation for the bankable feasibility study. “We are pleased with the progress made by our enormously experienced project team and are very encouraged by the outcomes of the prefeasibility review. A range of production scenarios, 11 in all, ranging in scale from 120,000 to 480,000 tonnes per month have been considered. Although these are initial findings, results suggest a modular production build-up offering flexibility and ameliorating potential risks relating to issues such as power supply and water.”
PGM markets
The year under review was characterized by another period of buoyant market conditions and robust demand for Northam’s basket of metals. This was particularly apparent in the H2 period, when the average basket price rose to levels in excess of R500,000/kg.
Commenting on the recent slump in metal prices, Lewis acknowledged that this had been prompted by negative sentiment from the world’s major vehicle manufacturers and significant speculative disinvestment. “Nevertheless,” he added, “the current basket price still compares favourably with the average basket price of R304,000/kg in the first half of the year.
“With the softer platinum price, there are already some signs of a modest increase in demand from jewellery manufacturers. For the automobile sector, which we believe will continue to be the principal driver of PGM prices, emissions legislation continues to tighten. We believe that these factors, combined with the prospect of higher vehicle sales in the BRIC countries will continue to support demand, and we are confident that the outlook for fundamental demand for PGMs remains sound.”
Prospects
After an eventful year in the life of the company, Northam continues to build on its track record of consistent delivery to shareholders, generating strong levels of cash, standing the company in good stead as it develops a new project. With the Booysendal transaction concluded Northam has now established a firm strategic foothold in the eastern limb of the Bushveld Complex, and has acquired a world-class PGM prospect which brings a near-term expansion opportunity and asset diversification. This new project, together with Northam’s associated metals processing infrastructure and downstream beneficiation opportunities, offers the possibility to provide processing alternatives also for emerging producers in the sector.
Acknowledgement
In acknowledging the role of Anglo Platinum in the company’s fortunes, Lewis concluded, “The finalisation of the Booysendal transaction has brought with it the exit of Anglo Platinum as a long-standing, supportive shareholder and partner in our business. In particular too I must pay tribute to Norman Mbazima, who has recently resigned from the Northam board, and who played an important part in the conclusion of this company-transforming deal.”
Distributed by
Russell & Associates
Johannesburg
Tel +27 11 880 3924
- 21 Aug 2008
Resignation of director
Northam advises that Mr Norman Mbazima, a non-executive director, has resigned from the board of directors of the company with effect from 20 August 2008.
Johannesburg
21 August 2008
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
- 19 Aug 2008
Notice of trading of new Northam and Mvela Resources ordinary shares and Booysendal Transaction update
Further to the joint announcement on 8 July 2008 regarding an update on Booysendal Transaction ("the Transaction"), shareholders of Mvela Resources and Northam are advised that implementation of the Transaction has commenced as follows:
- Mvela Resources will take delivery of 53.1 million Northam shares from Anglo Platinum Limited on 20 August 2008;
- 121 million new Northam ordinary shares will be allotted and issued to Mvelaphanda Equity (Proprietary) Limited, a wholly-owned subsidiary of Mvela Resources. Application for the listing of these shares has been made to the JSE Limited(“JSE”) and the listing is expected to commence on 20 August 2008;
- 3.58 million new Mvela Resources ordinary shares have been allotted and issued to a subsidiary of Afripalm Resources(Proprietary) Limited and were listed on the JSE Limited on 15 August 2008;
- The first 50% of the Booysendal Platinum Project (“Booysendal”), will be transferred to Northam on 20 August 2008 and the remaining 50% will be pledged and held in escrow by Northam pending conversion of the Old Order Mining Title.
Application for the conversion of the Old Order Mining Title covering nine of the eleven Booysendal farms, and for the grant of Mining Title over the remaining two farms presently held under New Order Prospecting Rights, has been lodged with the Department of Minerals and Energy and is currently being processed.
On the grant of the New Order Mining Rights, the implementation will be complete. Shareholders of Mvela Resources and Northam will be advised in due course.
Johannesburg
19 August 2008
Sponsor to Mvela Resources
J.P. Morgan Equities
Sponsor to Northam
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
- 11 Aug 2008
Fatality at Northam Platinum
The management of Northam regrets to advise the death of an employee, Mr TJ Masilo.
Johannesburg, 11 August 2008. The management of Northam Platinum Limited (Northam) regrets to advise the death of an employee, Mr TJ Masilo. Mr Masilo passed away in hospital on Sunday 10 August 2008, following injuries sustained in an accident at the Northam mine on Thursday 7 August 2008.
The accident occurred some 2000 metres below surface in a footwall drive development end when a mechanical prop dislodged (became loose) and struck Mr Masilo.
No one else was injured in the incident.
The affected area has been closed by management and the cause of the accident is being investigated in co-operation with the Department of Minerals and Energy (DME) and organized labour.
The Northam board and management express their sincere condolences to Mr Masilo’s family and friends.
Issued by:
Russell & Associates
Marion Brower
Tel: +27 11 880 3924
Cell: 082 895 0698
- 29 Jul 2008
Advisory notice to shareholders
Northam advises that it intends to release its financial results for the year ended 30 June 2008 on Monday 25 August 2008.
Northam advises that it intends to release its financial results for the year ended 30 June 2008 on Monday 25 August 2008. Further details on timing and a presentation venue will be available on this site shortly.
Johannesburg
29 July 2008
- 14 Jul 2008
Trading update
Shareholders are advised that the company’s earnings per share and headline earnings per share for the year ended 30 June 2008 are expected to be between 620 and 660 cents.
Shareholders are advised that the company’s earnings per share and headline earnings per share for the year ended 30 June 2008 are expected to be between 620 and 660 cents. This compares with the 560 cents per share reported for the previous comparable period ended 30 June 2007.
The expected increase in earnings results from a substantial rise in the average Rand receipts for the company’s basket of metals relative to the previous comparable period, thereby offsetting the effects of anticipated production shortfalls.
The forecast earnings have not been reviewed by the company’s auditors.
It is anticipated that the preliminary results for the year ended 30 June 2008 will be released on or about 7 August 2008.
Issued by
Russell & Associates
Tel: +27 11 880 3924
Marion Brower
Mobile: +27 82 895 0698
- 08 Jul 2008
Booysendal Transaction update
Further to the joint announcement on 6 June 2008 regarding the Booysendal Transaction , shareholders of Mvela Resources and Northam are advised that all contractual elements of the Transaction have been concluded.
Further to the joint announcement on 6 June 2008 regarding the Booysendal Transaction ("the Transaction"), shareholders of Mvela Resources and Northam are advised that all contractual elements of the Transaction have been concluded. There remains one regulatory Condition Precedent outstanding, that being the consent for the transfer of control of the New Order prospecting rights under the Minerals and Petroleum Resources Development Act. Shareholders will be advised in due course when this is received and the transaction is implemented.
Johannesburg
8 July 2008
Sponsor to Mvela Resources
J.P. Morgan Equities
Sponsor to Northam
Barnard Jacobs Mellet
Corporate Finance (Pty) Limited
- 06 Jun 2008
Results of general meetings
Further to the circular to Mvela Resources shareholders dated 9 May 2008 regarding the proposed acquisition by Mvela Resources of Anglo Platinum Limited's interest in the Booysendal Platinum Project.
Further to the circular to Mvela Resources shareholders dated 9 May 2008 regarding:
- the proposed acquisition by Mvela Resources of Anglo Platinum Limited’s (“Anglo Platinum’s”) interest in the Booysendal Platinum Project (“Booysendal”) and Anglo Platinum’s 22.2% interest in Northam for a total cash consideration of R4 billion;
- the proposed subsequent sale by Mvela Resources to Northam of its 100% interest in Booysendal; and
- a specific issue of new ordinary shares by Mvela Resources to a subsidiary of Afripalm Resources (Proprietary) Limited;
and the circular to Northam shareholders dated 9 May 2008 regarding:
- the proposed acquisition by Northam from Mvela Resources of Booysendal;
- the proposed creation of 125 000 000 Northam ordinary shares and proposed issue of 121 000 000 ordinary shares to Mvela Resources in consideration for the acquisition of Booysendal;
- proposed amendments to Northam’s Memorandum and Articles of Association; and
- the proposed waiver by the independent Northam shareholders of their right to receive a mandatory offer from Mvela Resources, (collectively “the Transaction”);
the requisite majorities of Mvela Resources and Northam shareholders passed all the ordinary and special resolutions required to implement the Transaction at their respective general meetings held on 6 June 2008.
The special resolutions have been submitted to the Companies and Intellectual Property Registration Office (CIPRO) for registration as required by the Companies Act, 1973, as amended.
The Transaction is expected to become unconditional and to be implemented by the end of June 2008.
- 09 May 2008
Joint updated Booysendal transaction announcement
Shareholders are advised that the Northam and Mvela Resources circulars relating to the transaction, including the relevant Competent Person’s reports and notices of general meeting required in terms of the JSE Listings Requirements, were posted to shareholders today.
Joint updated Booysendal transaction announcement (PDF - 82KB)
Shareholders are advised that the Northam and Mvela Resources circulars relating to the transaction, including the relevant Competent Person’s reports and notices of general meeting required in terms of the JSE Listings Requirements, were posted to shareholders today.
Joint updated Booysendal transaction announcement (PDF - 82KB)
- 23 Mar 2008
Media statement
The management of Northam regrets to advise the death of an employee, Mr JM Lethiba at its Northam mine in Limpopo Province.
The management of Northam Platinum Limited (Northam) regrets to advise the death of an employee, Mr JM Lethiba at its Northam mine in Limpopo Province.
Mr Lethiba failed to report on surface after the shift in the afternoon of Thursday 20 March 2008. Thirty two proto (rescue) teams, mine personnel and three SAP search and rescue canine units spent approximately 48 hours searching for Mr Lethiba. His body was discovered in the evening of Saturday 22 March 2008 in an area about six kilometres from where he had worked.
An investigation into the cause of Mr Lethiba’s death will be conducted in co-operation with the Department of Minerals and Energy and organised labour.
Issued by:
Russell & Associates
Johannesburg
Tel: +27 11 880 3924
- 12 Feb 2008
Northam first half results reflect tough operating conditions
Northam today posted results for the first half of the 2008 financial year, reporting lower earnings per share of 199 cents (F2007 H1: 280 cps) and a reduced dividend for the period at 145 cps.
Key features:
- Difficult Merensky mining conditions persist
- Drive to push UG2 production continues
- Metals in concentrate produced - 150 755 oz (3PGE + Au)
- Buoyant PGM market conditions continue
- 14% increase in operating costs reflect lower production volumes
- Interim dividend of 145 cps declared
Northam Platinum Limited (Northam) today posted results for the first half of the 2008 financial year, reporting lower earnings per share of 199 cents (F2007 H1: 280 cps) and a reduced dividend for the period at 145 cps.
Results for the half year were adversely affected by the loss of 23 production days owing to safety-related stoppages and intensive retraining programmes for employees.
CEO Glyn Lewis said today, “As expected, the difficulties associated with mining the Merensky reef have persisted. Our emphasis on exploiting the more conformable UG2 reef has borne some success, and has helped us to contain the drop in tonnages mined from both reefs to 17.1%, despite the 24.3% decline in Merensky tonnages.”
As a result of the lower tonnages, and a drop in head grade to 5.0 g/t, (associated mainly with the higher UG2 volumes mined), production of metals in concentrate was lower by 16.5% at 4 689 kg (150 755 oz) compared with H1 in F2007.
Sales revenue at R1.5bn was 17% lower year on year, declining from the R1.8bn level reported in the previous comparable period. Although the average US dollar basket price received for metals rose by 16.3% to US$1 396/oz the relatively strong rand in the period offset the potential gains from the higher prices, and resulted in a ZAR basket price received of R311 369/kg, 11.8% up year on year.
Lewis commented that the innovative metallurgical developments at Northam have facilitated the shift to increase volumes mined from the UG2 reef. Expressed as a ratio, the Merensky/UG2 production stands at 1.4:1. “With the additional external sparger column cell commissioned in August last year, we have made good progress in increasing the proportion of UG2 concentrate in the smelter, largely eliminating the previous problems associated with the build-up of chrome, while at the same time maintaining our PGM recovery rates.
“With the introduction of a high pressure roll crusher in the UG2 circuit within the next couple of months, it may be possible to further increase the throughput of the UG2 concentrator which has a design capacity of 75 000 tonnes per month.”
Reflecting the overall decline in production and general inflationary increases, total operating costs were higher by 14.8%.
Looking ahead, Lewis commented on the ore reserve position, saying there would be a stepped up focus on the deepening project to access the more easily mineable Merensky reef in order to counter the life-of-mine loss in the eastern transition zone of the mine. “We have already established 14 level, with development progressing on 15 level.” Every level opened up below 12, adds some 2.8 years to the mine’s life.
Referring to the situation with regard to power supply, and the possible effect on second half-year results, Lewis noted that production and metal sales should approximate those of H1 if Eskom could continue to supply the company with 90% of its consumption requirements.
On this basis earnings will be determined largely by the average Rand basket price received in the second half, currently at significantly higher levels than the R311 369 per kilogram received in the first half of the 2008 financial year.
Distributed by:
Russell and Associates
+27 11 880 3924
- 31 Jan 2008
Booysendal moves ahead
Mvela Resources, and Northam today announced amended terms and key developments marking progress on the various aspects of the ‘Booysendal transaction’ with Anglo Platinum originally announced in September 2007.
Booysendal strike length increased; key ancillary assets, services secured
Mvelaphanda Resources Limited (Mvela Resources), and Northam Platinum Limited (Northam) today announced amended terms and key developments marking progress on the various aspects of the ‘Booysendal transaction’ with Anglo Platinum Limited (Anglo Platinum) originally announced in September 2007.
Mvela Resources, Anglo Platinum and Northam (the parties) have agreed to increase the extent of the Booysendal project area by 1.3 kilometres along strike into the southern part of Anglo Platinum’s Der Brochen project area (the Booysendal Extension) and have reached agreement on Northam’s purchase consideration for 100% of Booysendal (including the Booysendal Extension) from Mvela Resources being reduced to 121 million new Northam shares from 125 million new Northam shares.
The amendments were agreed by the parties following an independent due diligence commissioned by Northam, which defined an inferred resource for Booysendal of 94 million oz 4PGE (4PGE: platinum, palladium, rhodium and gold), compared with the 112 million oz 4PGE on which the original transaction agreement was based. The independent study assumed a higher geological loss in the southern area than before, due to the relatively shallow presence of basement rocks that have affected the structure and mineralization of the Merensky and UG2 reefs, possibly contributing to more challenging mining conditions in certain areas.
The Booysendal Extension contains approximately 9 million oz 4PGE, resulting in a revised total resource for Booysendal of approximately 103 million oz 4PGE.
Northam CEO, Glyn Lewis, said today, “The inclusion of the Booysendal Extension into the project area adds some 1.3km of strike to the project area, taking the total strike length to 14.5km. Having completed detailed work on the orebody, we now have an increased level of confidence in our planning for the project.”
Agreement in principle has also been reached on key assets and services which add further certainty to the sustainability of the project, comprising:
- Electrical power;
- Water;
- Sites for slimes dams; and
- Access to Booysendal;
Commenting on the developments made Mvela Resources CEO Pine Pienaar said today, “Securing the ancillary assets and services; power, water, access and slimes dam sites, was crucial for the sustainability and economic viability of Booysendal. Having agreed on these essential items, we will be able to move steadily towards concluding the transaction and bringing Booysendal to account.”
In respect of electrical power, Anglo Platinum has supported an arrangement in terms of which Booysendal will have temporary use of 16MVA of excess transformer capacity from transformers at the Mototolo platinum mine (a joint venture between Anglo Platinum and Xstrata), until the commissioning of Booyendal’s own transformers or the first quarter of 2011, whichever is the earlier.
Seven megalitres of water a day from the existing Lebalelo water scheme have been allocated to Booysendal – sufficient until after commissioning and initial production, after which water supplies will be augmented from the De Hoop dam, due for completion in 2013. The Lebalelo pipeline, which currently ends at Motololo, will be extended to Booysendal.
Studies to identify suitable sites for tailings dams will be commissioned over the Booysendal and Der Brochen areas. Anglo Platinum will grant traversing rights over Der Brochen to Booysendal.
Commenting on today’s announcement and the progress made with the transaction, Northam and Mvela Resources chairman Lazarus Zim said today, “In negotiating this transaction we said from the outset that our goal was a win-win outcome for all parties. When we initially announced the transaction we had a certain level of knowledge at our disposal and, having now further evaluated the Booysendal property and having undertaken the appropriate due diligence steps that are necessary to create greater certainty, sustainability and success, we have further refined this transaction. We are now at a stage where we can move on to the next step – closure of the transaction and the feasibility study – so that we can fast-track this project into production. Give the current circumstances in the market and the continued PGM supply shortfalls, Northam is fully committed to delivering this project as expeditiously as possible.”
Contacts:
For Mvela Resources
James Wellsted
+27 11 325 5323
+27 83 453 4014
For Northam Platinum
Marion Brower
+27 11 880 3924
+27 82 895 0698
- 25 Jan 2008
Interruptions to mining and processing operations
Northam advises that mining operations at the company’s Northam mine in Limpopo Province have been adversely affected by power outages over the past two weeks, and were suspended this afternoon, Friday, 25 January 2008 owing to insufficient power to safely continue normal operations.
Johannesburg, 25 January 2008. Northam Platinum Limited (Northam) advises that mining operations at the company’s Northam mine in Limpopo Province have been adversely affected by power outages over the past two weeks, and were suspended this afternoon, Friday, 25 January 2008 owing to insufficient power to safely continue normal operations. This action follows on some limited underground activities during the morning.
Northam has been advised by Eskom that its ability to maintain 40% of the normal base-load of power has been severely compromised by a number of factors. Although Northam understands from Eskom that it is committed to normalizing the situation, Northam has not been informed as to when the supply of the normal base-load will be restored. Northam is therefore unable to indicate with any certainty when operations will resume.
Distributed by:
Russell & Associates
Johannesburg
25 January 2008
- 24 Jan 2008
Trading Update
Shareholders are advised that the company’s earnings per share and headline earnings per share for the six month period ended 31 December 2007 are expected to be between 190 and 210 cents.
Shareholders are advised that the company’s earnings per share and headline earnings per share for the six month period ended 31 December 2007 are expected to be between 190 and 210 cents. This compares with the earnings of 280 cents per share reported for the previous comparable period ended 31 December 2006. The expected decrease in earnings results primarily from lower sales volumes as a consequence of lower production following unplanned safety related stoppages and an increase in inventory.
The financial results on which this trading update has been based have not been reviewed or reported on by the company’s auditors.
It is anticipated that the interim results for the six months ended 31 December 2007 will be released on or about 13 February 2008.
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
- 10 Jan 2008
Company announcement: Resignation of Mr Matthews Nzimande
The board of directors of Northam advises the resignation of Mr Matthews Nzimande, general manager of the company’s Northam mine in the Limpopo province.
The board of directors of Northam advises the resignation of Mr Matthews Nzimande, general manager of the company’s Northam mine in the Limpopo province, effective 6 February 2008.
Speaking on behalf of the board, management and employees, Northam CEO Glyn Lewis said today, “We would like to extend our thanks to Matthews for his contribution to the company over the past three years and we wish him well as he continues to develop his career”.
He was appointed general manager at Northam in 2005. Mr Danny Gonsalves will be relieving as general manager until a successor is appointed.
Northam remains committed to creating career opportunities for previously disadvantaged South Africans.
Issued by:
Russell & Associates
Johannesburg
Tel: +27 11 880 3924