Announcements 2024

Interest Payment Notification – NHM016

Northam bondholders are advised of the following interest payment due on Monday, 13 May 2024:


Northam bondholders are advised of the following interest payment due on Monday, 13 May 2024:

Bond Code:

NHM016

ISIN:

ZAG000167750

Coupon:

12.617%

Interest Period:

12 February 2024 to 12 May 2024

Interest Amount Due:

R116 242 864.17

Payment Date:

13 May 2024

Date Convention:

Following Business Day

 

Johannesburg
8 May 2024

Debt Sponsor
One Capital

Interest Payment Notification – NHM023

Northam bondholders are advised of the following interest payment due on Monday, 22 April 2024:


Northam bondholders are advised of the following interest payment due on Monday, 22 April 2024:

Bond Code:

NHM023

ISIN:

ZAG000190968

Coupon:

11.4%

Interest Period:

22 January 2024 to 21 April 2024

Interest Amount Due:

R6 906 526.03

Payment Date:

22 April 2024

Date Convention:

Following Business Day

 

Johannesburg
17 April 2024

Debt Sponsor
One Capital

Interest Payment Notification – NHM022

Northam bondholders are advised of the following interest payment due on Monday, 25 March 2024:


Northam bondholders are advised of the following interest payment due on Monday, 25 March 2024:

Bond Code:

NHM022

ISIN:

ZAG000190133

Coupon:

12.15%

Interest Period:

27 December 2023 to 24 March 2024

Interest Amount Due:

R103 691 095.89

Payment Date:

25 March 2024

Date Convention:

Following Business Day

 

Johannesburg
19 March 2024

Debt Sponsor
One Capital

Interest Payment Notification – NHM015

Northam bondholders are advised of the following interest payment due on Wednesday, 13 March 2024:


Northam bondholders are advised of the following interest payment due on Wednesday, 13 March 2024:

Bond Code:

NHM015

ISIN:

ZAG000164922

Coupon:

11.692%

Interest Period:

13 December 2023 to 12 March 2024

Interest Amount Due:

R14 574 958.90

Payment Date:

13 March 2024

Date Convention:

Following Business Day

 

Johannesburg
8 March 2024

Debt Sponsor
One Capital

Condensed reviewed interim financial results for the six months ended 31 December 2023 and cash dividend declaration

Shareholders of Northam Holdings (“Shareholders”) are advised that the company has, today, published its condensed reviewed interim financial results for the six months ended 31 December 2023 (“Interim Results”).


Shareholders of Northam Holdings (“Shareholders”) are advised that the company has, today, published its condensed reviewed interim financial results for the six months ended 31 December 2023 (“Interim Results”).

Financial results overview

  Six months ended 31 December 2023 Six months ended 31 December 2022 Variance %
Sales revenue R000 14 994 577 20 119 026 (25.5%)
Operating profit R000 2 417 200 9 066 564 (73.3%)
Operating profit margin % 16.1 45.1 (64.3%)
Earnings per share cents 136.5 1 596.2 (91.4%)
Headline earnings per share cents 121.4 1 608.5 (92.5%)
Dividends per share cents 100.0 - 100.0%
EBITDA* R000 3 170 829 9 953 810 (68.1%)
EBITDA margin % 21.1 49.5 (57.4%)

* Earnings before interest, taxation, depreciation and amortisation, and excluding losses on the sale of the Impala Platinum Holdings Limited shares

Cash dividend declaration

For the six months ended 31 December 2023, the board of directors (“board”) has resolved to declare and pay an interim gross cash dividend of 100.0 cents per share (31 December 2022: Nil cents per share and for 30 June 2023: 600.0 cents per share), which in aggregate amounts to an interim gross cash dividend of approximately R396.2 million. The interim gross cash dividend has been declared from income reserves.

A dividend withholding tax of 20% will be applicable to Shareholders who are not exempt from, or who do not qualify for, a reduced rate of dividend withholding tax. Accordingly, for those Shareholders subject to dividend withholding tax at a rate of 20%, the final net cash dividend will amount to 80.0 cents per share (31 December 2022: Nil cents per share and 30 June 2023: 480.0 cents per share).

The following dates are applicable to the interim dividend:

Last day to trade (cum dividend), on Monday, 18 March 2024
Trading ex-dividend, on Tuesday, 19 March 2024
Record date to determine which Shareholders are eligible to receive the dividend, on Friday, 22 March 2024
Payment date of the dividend, on Monday, 25 March 2024

Shareholders may not dematerialise or rematerialise their Northam Holdings shares between Tuesday, 19 March 2024 and Friday, 22 March 2024, both days inclusive.

The following additional information is disclosed regarding the interim dividend:

  • Northam Holdings’ issued share capital as at the date of this announcement is 396 238 229 ordinary shares (of which 1 share is held by Northam Platinum, a subsidiary of Northam Holdings)
  • Northam Holdings’ registration number is 2020/905346/06
  • Northam Holdings’ income tax reference number is 9586451198

About this announcement

This announcement is the responsibility of the board and contains information extracted from the Interim Results.

As the information in this announcement does not provide all of the details, any investment decisions should be based on the published condensed reviewed interim financial results for the six months ended 31 December 2023 (which incorporates the external auditor’s report in which PricewaterhouseCoopers Incorporated expressed an unmodified review conclusion) accessible via the JSE cloudlink here, and on the company’s website here.

Johannesburg
1 March 2024

Corporate Advisor and Sponsor to Northam Holdings
One Capital

Corporate Advisor and Debt Sponsor to Northam Platinum
One Capital

Increase in production helps to mitigate the impact of the current depressed PGM market

Northam Platinum Holdings Limited issued its interim results for the six-month period ended 31 December 2023 today.


Johannesburg, Friday, 1 March 2024 – Northam Platinum Holdings Limited issued its interim results for the six-month period ended 31 December 2023 today. The interim results may be accessed on the company’s website, https://www.northam.co.za/investors-and-media/publications/financials.

Key features

  • Strong performance from all operations across the group
  • 10.6% increase in equivalent refined 4E ounce metal from own operations to 434 977 4E oz for the six-month period
  • Cost control measures limiting the increase in group unit cash cost per equivalent refined 4E oz to 6.7%
  • Continued weakening in the PGM price environment
  • Sale of investment in RBPlat, significantly strengthened Northam’s balance sheet and liquidity position
  • Net debt as at 31 December 2023 improved to R2.4 billion
  • Cash on hand and available undrawn banking facilities as at 31 December 2023 collectively amounted to R22.8 billion. Cash and cash equivalents of R11.8 billion and available undrawn banking facilities of R11.0 billion
  • Interim cash dividend of 100.0 cents per share declared

Commenting on the current PGM market conditions, chief executive officer Paul Dunne noted: “The PGM industry is currently navigating significantly depressed PGM prices and high inflation, together with a raft of global geopolitical uncertainties and locally, Eskom load curtailments. We have not yet seen a change in fundamentals which are likely to move the market into more positive territory, and consequently, the short-term outlook remains challenging.

We anticipate the depressed pricing environment will continue over the next 12 to 24 months, placing significant pressure on earnings and cash generation across the PGM mining sector.

Preservation and prudent management of liquidity is now of utmost importance to ensure the sustainability of our operations as we focus on protecting the interests of our shareholders and the broader stakeholder base.”

The PGM industry in South Africa continues to be impacted by Eskom load curtailment events and there is no certainty as to when improvements will be seen in this regard.

Northam is continuing to install self-generation capacity with a mix of diesel generators and renewable energy initiatives.

To this end, Dunne noted: “Across the group, we currently have on-demand power generation capacity from diesel generators of 22 MW. Additional capacity of 35 MW has been purchased and is being installed, with commissioning expected before the end of the third quarter. This additional capacity will enable all operations to operate unimpeded under level 4 Eskom load curtailment conditions, which is equivalent to stage 6 loadshedding. Furthermore, Northam is in the process of sourcing additional generators to further protect the operations against potentially greater future disruption.

In addition to the on-demand generator capacity, development of an 80 MW solar power farm to provide behind-the-meter electricity to the Zondereinde mine and metallurgical complex is in progress. Power will be supplied behind the Eskom meter and will accordingly not be subject to load curtailment events. Development is in collaboration with an Independent Power Producer (IPP), who will fund the construction and manage the installation.”

Despite the load curtailment events, Northam’s operations had a strong performance, increasing production by 10.6% to 434 977 4E oz for the six-month period. This helped to partially offset the 42.3% weakening in the 4E ZAR basket price.

Commenting on the financial performance, chief financial officer Alet Coetzee noted “We operate a largely fixed cost business and consider increasing production, and doing so efficiently, to be our best defence against current global inflationary pressures. Our capital allocation and treasury decisions have been guided by our growth strategy and our results have benefitted from our consistent approach to growing our production base down the industry cost curve".

Northam continues to focus on cost containment and was able to limit the increase in unit cash costs to 6.7%, a solid achievement considering the prevailing high inflation environment.

Despite the depressed PGM pricing environment, Northam paid R730 million to employees during the period as part of its various profit share schemes.

Coetzee also spoke to the opportunity presented by the Implats Mandatory Offer: “In light of the prevailing market conditions and negative medium-term outlook, the Implats Mandatory Offer presented a unique and attractive opportunity to lock-in substantial value in relation to the RBPlat shares held by Northam and significantly strengthen our balance sheet and liquidity position.” 

Northam’s liquidity position and operational flexibility positions the company favourably in the current pricing environment. Relative positioning on the industry cost curve, and the ability to retain operational flexibility and balance sheet strength, are becoming increasingly important sector differentiating factors.

Given the current market conditions, Northam has trimmed its capital schedule in the interest of capital preservation. At Zondereinde, certain workstreams have been deferred in instances where it will not have a detrimental impact on the overall 3 shaft project. At Booysendal, development of declines at both the South Merensky and the BS4 modules have been temporarily halted and mining crews at South Merensky have been limited. At Eland, development of the decline systems have been temporarily paused, in order to focus on strike and raise development and mineable reserves, whilst limiting capital expenditure.

The group remains focused on improving its safety performance, and the health and wellness of all employees, by continuously seeking to reduce injuries through the application of appropriate technologies, training and reinforcing operational standards and responsibilities.

In closing, Dunne commented “We recognise the importance of being proactive, forward looking and responsive to changing market conditions and this remains relevant to all our decisions, now more so than ever.”

Ends

Media contact:

Memory Johnstone
memory@rasc.co.za
T: +27 11 880 3924 / M: +27 82 719 3081

Investor relations contact:

Sherilee Lakmidas
sherilee@rasc.co.za
T: +27 11 880 3925 / M: +27 72 443 7285

Appointment of an independent Non-Executive Director

The board of directors of Northam Holdings (“Board”) is pleased to announce the appointment of Mrs Geralda Wildschutt as an independent non-executive director of the Board and as a member of the SEHR&T committee, with effect from Friday, 1 March 2024.


In compliance with paragraph 3.59 of the JSE Limited Listings Requirements, the board of directors of Northam Holdings (“Board”) is pleased to announce the appointment of Mrs Geralda Wildschutt as an independent non-executive director of the Board and as a member of the SEHR&T committee, with effect from Friday, 1 March 2024.

Mrs Wildschutt is currently an independent non-executive director of Caledonia Mining Corporation Plc, a gold mining company listed on the New York Stock Exchange and on AIM of the London Stock Exchange. She serves on the Climate Change Advisory Panel of Sasol Limited, a company listed on the JSE Limited. Mrs Wildschutt served as a consultant to Anglo American PLC, Gold Fields Limited, Ivanhoe Mines Limited and Debswana Diamond Company Limited on a range of environmental, social and governance (“ESG”) topics. She holds a Masters’ Degree in Psychology from the University of Cape Town and an MBA from the Business School of the Netherlands.

Mr Paul Dunne, the chief executive officer of the company, will step down as a member of the SEHR&T committee immediately following the appointment of Mrs Wildschutt.

Mr Temba Mvusi, the independent chairman of the Board, commented, “Northam Holdings is pleased to welcome Mrs Wildschutt to the Board. She brings a range of expertise in ESG to the company, which will further strengthen the Board’s ESG competency. We look forward to her contribution.”

Johannesburg
28 February 2024

Corporate Advisor and Sponsor to Northam Holdings
One Capital

Corporate Advisor and Debt Sponsor to Northam Platinum
One Capital

Interest payment notification – NHM019, NHM021, NHM024, NHM025 AND NHM026

Northam bondholders are advised of the following interest payments due on Monday, 26 February 2024:


Northam bondholders are advised of the following interest payments due on Monday, 26 February 2024:

Bond Code:

NHM019

ISIN:

ZAG000168105

Coupon:

12.367%

Interest Period:

27 November 2023 to 25 February 2024

Interest Amount Due:

R108 406 101.40

Payment Date:

26 February 2024

Date Convention:

Following Business Day

 

Bond Code:

NHM021

ISIN:

ZAG000181496

Coupon:

12.617%

Interest Period:

27 November 2023 to 25 February 2024

Interest Amount Due:

R18 024 335.10

Payment Date:

26 February 2024

Date Convention:

Following Business Day

 

Bond Code:

NHM024

ISIN:

ZAG000195926

Coupon:

10.367%

Interest Period:

27 November 2023 to 25 February 2024

Interest Amount Due:

R2 584 649.32

Payment Date:

26 February 2024

Date Convention:

Following Business Day

 

Bond Code:

NHM025

ISIN:

ZAG000195934

Coupon:

11.367%

Interest Period:

27 November 2023 to 25 February 2024

Interest Amount Due:

R25 505 679.45

Payment Date:

26 February 2024

Date Convention:

Following Business Day

 

Bond Code:

NHM026

ISIN:

ZAG000195942

Coupon:

12.117%

Interest Period:

27 November 2023 to 25 February 2024

Interest Amount Due:

R38 970 263.84

Payment Date:

26 February 2024

Date Convention:

Following Business Day

 

Johannesburg
21 February 2024

Debt Sponsor
One Capital

Trading statement and trading update for the six-months ended 31 December 2023

Northam Holdings’ financial results for the six-months ended 31 December 2023 (“H1 F2024”) are underpinned by a solid production performance and effective cost control at all operations within the group.


Key metrics:

  • 10.6% increase in equivalent refined 4E ounce (“oz”) metal from own operations to 434 977 oz 4E (H1 F2023: 393 309 oz 4E), following a solid performance from all mines across the group, including a 14.9% increase in 4E concentrate produced by Booysendal and a 51.8% increase in 4E concentrate produced from own operations and surface sources at Eland
  • 25.5% decrease in sales revenue to R15.0 billion (H1 F2023: R20.1 billion), despite a 10.4% increase in sales volumes to 457 357 oz 4E (H1 F2023: 414 170 oz 4E), primarily attributable to a 42.3% decrease in the 4E ZAR basket price to R24 269/oz 4E (H1 F2023: R42 046/oz 4E)
  • 6.7% increase in group unit cash cost per equivalent refined 4E oz
  • 28.1% cash profit margin per equivalent refined 4E oz
  • 73.3% decrease in gross profit to R2.4 billion
  • 68.1% decrease in EBITDA to R3.2 billion
  • 86.4% – 96.4% expected decrease in basic earnings per share
  • 87.5% – 97.5% expected decrease in headline earnings per share
  • Net debt as at 31 December 2023 improved to R2.4 billion with a rolling 12-month net debt to EBITDA ratio of 0.24, and cash and cash equivalents of R11.8 billion, with additional available undrawn facilities of R11.0 billion

Introduction

In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies are required to publish a trading statement as soon as they are satisfied, with a reasonable degree of certainty, that the financial results for the current reporting period will differ by at least 20% from the financial results of the previous corresponding period.

Northam Holdings’ financial results for the six-months ended 31 December 2023 (“H1 F2024”) are underpinned by a solid production performance and effective cost control at all operations within the group. Notwithstanding this, Northam Holdings expects to report a decrease in earnings per share for H1 F2024 compared to the previous six-months ended 31 December 2022 (“H1 F2023”), largely because of the significant decrease in commodity prices together with a loss of R799.7 million on the disposal of the Impala Platinum Holdings Limited (“Implats”) ordinary shares (“Implats Shares”) (JSE share code: IMP) received as part of the disposal consideration following acceptance of the mandatory offer made by Implats to shareholders of Royal Bafokeng Platinum Limited (“RBPlat”), (“Implats Mandatory Offer”).

The table below provides key earnings per share information for H1 F2024, compared to that of H1 F2023:

 

H1 F2024

H1 F2023

Variance

Basic earnings per share (cents)

56.7 – 216.3

1 596.2

(96.4% – 86.4%)

Headline earnings per share (cents)

41.0 – 201.8

1 608.5

(97.5% – 87.5%)

Number of shares in issue including treasury shares

396 238 229

396 615 878

(0.1%)

Weighted average number of shares in issue*

390 090 148

390 237 523

(0.0%)

*The weighted average number of shares in issue have been used to determine the basic and headline earnings per share.

Production

The group’s equivalent refined metal from own operations increased by 10.6% to 434 977 oz 4E (H1 F2023: 393 309 oz 4E). Zondereinde’s metal production was flat, as expected ahead of the commissioning of 3 shaft, whilst growth from the Booysendal South mine and Eland was in line with our forecast.

Group production of chrome concentrate increased by 31.8% to 666 692 tonnes (H1 F2023: 505 841 tonnes), on the back of increased UG2 tonnages and recovery improvements at all operations. This was particularly pleasing, given the recent strengthening of the chrome price.

The group continued to progress its strategic goals of sustainably growing safe production down the sector cost curve. Challenges remain, particularly in respect of metal prices, mining inflation and the potential for higher frequency and longer duration Eskom load curtailment events. Our capital growth programme remains on-track and is improving our operational resilience during the current weak market conditions.

A key feature has been the solid production performance achieved by all operations. Zondereinde has benefitted from focussed Merensky stoping in the Western extension, together with logistics decongestion resulting from the ongoing shift in UG2 stoping from the western to the eastern portions of the mine. Booysendal delivered growth on the back of strong production from North mine, as well as the ongoing ramp-up of South mine. Eland production is ramping up on schedule with stoping production up by 170%, while mineable reserves have almost doubled. This has yielded a 51.8% increase in 4E metal production from own operations and surface sources and a 100.0% increase in chrome concentrate. The successful, on-schedule completion of a new 4.5 metre diameter raise-bored ventilation shaft during December 2023 has created environmental conditions in the deeper sections of the mine which are critical to the medium-term schedule.

All operations have been subject to numerous Eskom load curtailment events, however, the combination of our comprehensive load management protocols, as well as increased on-demand self-generation capacity, is limiting consequential production losses. The group’s programme to further increase self-generation capacity is well advanced and will assist in mitigating potential losses resulting from Eskom load curtailment events. Furthermore, all safety metrics show improvement from the previous financial year, with both Booysendal and Eland remaining fatality free since inception.

Key production metrics for H1 F2024, compared to H1 F2023, are as follows (in oz 4E):

 

H1 F2024

H1 F2023

Variance

Equivalent refined metal production from own operations at Zondereinde

160 188

160 806

(0.4%)

Concentrate production from own operations at Booysendal

250 004

217 630

14.9% 

Concentrate production from own operations and surface sources at Eland

32 574

21 463

51.8% 

Total equivalent refined metal production from own operations

434 977

393 309

10.6% 

Equivalent refined metal purchased from third parties

83 107

38 739

114.5% 

Total production including purchased material

518 084

432 048

19.9% 

Unit cash costs

The increase in group unit cash costs has been limited to 6.7%, despite the ongoing trend of generally higher mining inflation. We have benefitted from growing mining production, improved concentrator feed grades and disciplined, focussed cost control.

Unit cash costs per 4E ounce for the group, and per operation, for H1 F2024 compared to H1 F2023, are as follows (in R/oz 4E):

 

H1 F2024

H1 F2023

Variance

Zondereinde cash cost per equivalent refined 4E ounce

24 778

23 479

(5.5%)

Booysendal cash cost per 4E ounce in concentrate produced

17 173

16 169

(6.2%)

Eland cash cost per 4E ounce in concentrate produced*

33 652

30 292

(11.1%)

Group cash cost per equivalent refined 4E ounce

23 562

22 088

(6.7%)

*Eland is in ramp-up phase.

The total cost of purchased concentrates and recycling material increased by 32.0% to R2.1 billion (H1 F2023: R1.6 billion), with 4E ounce volumes purchased increasing by 114.5%. The cost of purchased material is based on ruling commodity prices as well as the relevant prill split of the purchased material.

Sales revenue

The decrease in sales revenue, despite an increase in 4E sales volumes of 10.4% to 457 357 oz 4E (H1 F2023: 414 170 oz 4E), is attributable to a significantly lower 4E ZAR basket price of R24 269/oz 4E (H1 F2023: R42 046/oz 4E), representing a decrease of 42.3%. The lower ZAR basket price is the combined result of a lower 4E US dollar (“USD”) basket price of USD 1 302/oz 4E (H1 F2023: USD 2 422/oz 4E) and an increase in the average ZAR/USD exchange rate achieved i.e. a weaker Rand, being R18.64/USD (H1 F2023: R17.36/USD).

Total revenue per equivalent refined 4E ounce sold decreased by 32.5% to R32 785/oz 4E (H1 F2023: R48 577/oz 4E). This, combined with unit cash costs increasing by 6.7% from R22 088/oz 4E in H1 F2023 to R23 562/oz 4E in H1 F2024, led to a decrease in the cash profit margin per 4E ounce to 28.1% (H1 F2023: 54.5%).

The table below summarises dispatched metal volumes to the group’s precious metal refiners, compared to metal volumes refined and sold together with the average USD sales prices achieved per metal:

 

Dispatched

Total refined metal produced

Total equivalent refined metal sold (including the sale of concentrate)

Average sales
prices achieved

 

oz

oz

oz

USD/oz

Platinum

276 430

261 876

276 358

918

Palladium

133 327

126 970

133 583

1 180

Rhodium

42 628

42 551

42 512

4 110

Gold

4 910

4 781

4 904

1 937

Total 4E

457 295

436 178

457 357

1 302

Included in total equivalent refined metal sold in the table above is concentrate sold to a third party to honour legacy offtake agreements relating to the Everest and Maroelabult operations, which contained 24 497 oz 4E in concentrate (H1 F2023: 22 034 oz 4E). Refined metal sold to the group’s customers totalled 433 535 oz 4E (H1 F2023: 392 744 oz 4E), representing an increase of 10.4%.

Financial results

Sales revenue decreased by 25.5% compared to an increase in cost of sales of 13.8%. This resulted in a gross profit of R2.4 billion (H1 F2023: R9.1 billion), and a gross profit margin of 16.1% (H1 F2023: 45.1%).

We operate a largely fixed cost business and consider increasing production, and doing so efficiently, to be our best defence against current global inflationary pressures. Our capital allocation and treasury decisions have been guided by our growth strategy and our results have benefitted from our consistent approach to growing our production base down the industry cost curve.

Earnings before interest, taxation, depreciation and amortisation, and excluding losses on the sale of the Implats Shares, (“EBITDA”) amounted to R3.2 billion (H1 F2023: R10.0 billion).

As at 31 December 2023, inventory on hand amounted to 458 113 oz 4E, valued at R13.7 billion when applying the 4E price and exchange rate at 31 December 2023.

For the six-months ended 31 December 2023, our operations generated cash to the value of R698.5 million (before capital expenditure), impacted primarily by working capital movements relating to a build-up of inventory to the value of R909.7 million and the settlement of trade and other payables amounting to R1.4 billion, mainly relating to the payout of profit share schemes across the group. Capital expenditure amounting to R2.4 billion was paid in cash during the period.

In light of the prevailing market conditions and negative medium-term outlook, the Implats Mandatory Offer presented a unique and attractive opportunity during the period for Northam to lock-in substantial value in relation to the RBPlat ordinary shares (“RBPlat Shares”) held by Northam, with a strong cash underpin that was not adversely affected by the steep decline in Platinum Group Metals (“PGM”) equity valuations across the sector. This also presented an opportunity to significantly strengthen our balance sheet and liquidity position, which in turn provides additional flexibility and optionality.

In accordance with the terms of the Implats Mandatory Offer (details of which are contained in the offer circular issued by Implats dated 17 January 2022), Northam disposed of all of its RBPlat Shares during the period. The offer consideration receivable per RBPlat Share tendered into the Implats Mandatory Offer amounted to R90.00 in cash and 0.3 new Implats Shares. Northam Holdings received, in aggregate, R9.0 billion in cash and 30 065 866 Implats Shares.

The Implats Shares were subsequently disposed of on-market for a total consideration of R3.1 billion, representing a volume weighted average price of R103.95 per Implats Share.

Due to the decrease in the value of Implats Shares from the date of the acceptance of the Implats Mandatory Offer to the date of sale, a loss of R799.7 million was recognised on the sale of the Implats Shares.

During the period under review, the group paid R2.3 billion in dividends, in respect of the final dividend declared for the financial year ended 30 June 2023, and settled the NHM020 series in the Domestic Medium-Term Note Programme (“DMTN Programme”) to the value of R682.0 million, which matured during H1 F2024.

Capital expenditure

Capital expenditure amounted to R2.4 billion (H1 F2023: R2.6 billion). This is in line with our trimmed capital schedule, and the combined result of lower expansionary capital of R1.6 billion (H1 F2023: R1.8 billion), slightly offset by a marginal increase in sustaining capital expenditure to R846.0 million (H1 F2023: R813.3 million).

The majority of expansionary capital expenditure related to significant activity on the Western extension project at Zondereinde, together with the ongoing ramp‑up at Eland. Sustaining capital expenditure at Booysendal increased in line with production levels, whilst sustaining capital requirements at our metallurgical operations increased as a result of the upgrade to the furnace slag concentrator at Zondereinde.

We plan significant development activity at the Western extension of Zondereinde, as well as at Eland, over the coming 18 months.

At Zondereinde mine, stoping is ramping-up within the Western extension section and further progress has been made on the deepening project. Equipping of 3 shaft, for personnel and material transport, as well as the provision of services, is in progress and on track, as is reaming of 3a ventilation shaft. Both shafts are scheduled to be commissioned towards the end of the financial year ending 30 June 2025 (“F2025”). Pilot drilling of the 3b rock hoisting shaft continues, and shaft commissioning is scheduled for the 2028 calendar year. In the interest of capital preservation during the current PGM market conditions, certain workstreams have been deferred in instances where it would not have a detrimental impact on the overall project.

Upgrades to the base metal removal plant are progressing well at the group’s metallurgical facilities, and the commissioning of the expanded and upgraded furnace slag concentrator will improve overall metal recoveries, as well as the cash conversion of excess inventory.

The development of Booysendal South mine is on track. The full complement of stoping crews is in place at the Central UG2 modules and production has reached steady state levels on a monthly basis. Decline development is continuing in order to increase mineable reserves and operational flexibility. Progress of the South Merensky module is on target, with current focus on stoping in the upper mining levels. Stoping is continuing at the BS4 UG2 module and will ramp-up during the coming 12 months. Development of declines at both the South Merensky and the BS4 modules has been temporarily curtailed and mining crews at South Merensky have been limited in the interest of capital preservation. Commissioning of the North aerial rope conveyor during the financial year ended 30 June 2022 has enabled the ramp-up of the North Merensky module to its phase two steady-state production rate.

At Eland mine, processing of ore from surface sources continues, whilst underground feed is being batch treated. Development of the decline systems has been temporarily paused, in order to focus on strike and raise development and consequently increase mineable reserves, whilst limiting capital expenditure. We expect to resume decline development in F2025, subject to market conditions at that time. Underground stoping ramp-up continues on schedule.

A raft of global geopolitical issues has the potential to cause further disruption to PGM markets and metal prices, whilst the potential for further and more severe Eskom load curtailment events could lead to additional operational disruptions. We continue to monitor the market and are rolling out additional on-demand self-generation capacity at all of our operations. We will amend our capital programme when and where prudent, taking into account the changing landscape.

Conclusion

Our revenue is dependent upon external cyclical and variable markets, in terms of both price and demand patterns. However, the bulk of our costs are fixed and our ability to significantly suspend or reduce these costs is limited.

With the decrease in commodity prices, earnings across the PGM sector are under pressure. This will consequently constrain cash generation across the sector resulting in prudent management of liquidity becoming even more important.

The following factors have been considered as part of the liquidity management of the group:

  • The group’s growth strategy is focussed on growing production down the industry cost curve by developing shallow, mechanisable orebodies. Our programme of optimising existing operations is progressing and remains on track. We have utilised our balance sheet to grow the business and the project pipeline has been funded through cash generated by our operations, as well as the utilisation of our banking facilities and the R15.0 billion DMTN Programme.
  • The staggered maturity profile of Northam’s DMTN Programme provides an additional degree of certainty and flexibility to prudent cash flow management. Northam has proactively managed its DMTN Programme’s maturity profile to appropriately match the production growth build-up, and therefore the cash generation capacity of the group. Furthermore, the maturity profile has been staggered over a number of years to enhance and protect our liquidity position.
  • The group’s available banking facilities amount to R11.0 billion, comprising a R10.0 billion revolving credit facility and a R1.0 billion general banking facility. These facilities remain undrawn.
  • As at 31 December 2023, net debt improved to R2.4 billion, with cash and cash equivalents of R11.8 billion and the rolling 12-month net debt to EBITDA ratio at 0.24.
  • Through the acceptance of the Implats Mandatory Offer, Northam received R9.0 billion in cash and 30 065 866 Implats Shares, which were sold on market for approximately R3.1 billion. The Implats Mandatory Offer presented a well-timed opportunity in the prevailing PGM market for Northam to secure a significant cash injection that materially strengthened Northam’s balance sheet and liquidity position.

The global economic outlook remains uncertain, resulting in volatile metal prices and exchange rates. Prevailing PGM market conditions and the material decline in the 4E basket price have negatively impacted the profitability and rate of cash generation of the group. The group’s financial performance is influenced by the exchange rate and commodity prices together with the stability of Northam’s broader operating environment. Relative positioning on the industry cost curve, and the ability to retain operational flexibility and balance sheet strength, are becoming increasingly important sector differentiating factors. Northam has always maintained inherent optionality and flexibility in executing its growth strategy and these considerations remain key drivers to all our decisions.

The financial information contained in this announcement is the responsibility of the board of directors of Northam Holdings and has not been reviewed or reported on by Northam Holdings’ auditors, PricewaterhouseCoopers Incorporated. The reviewed results for Northam Holdings for H1 F2024 are expected to be published on or about Friday, 1 March 2024.

Johannesburg
19 February 2024

Corporate Advisor and Sponsor to Northam Holdings
One Capital

Corporate Advisor and Debt Sponsor to Northam Platinum
One Capital

Interest Payment Notification – NHM016

Northam bondholders are advised of the following interest payment due on Monday, 12 February 2024:


Northam bondholders are advised of the following interest payment due on Monday, 12 February 2024:

Bond Code:

NHM016

ISIN:

ZAG000167750

Coupon:

12.608%

Interest Period:

13 November 2023 to 11 February 2024

Interest Amount Due:

R116 159 945.43

Payment Date:

12 February 2024

Date Convention:

Following Business Day

 

Johannesburg
7 February 2024

Debt Sponsor
One Capital

Disclosure of an acquisition of a beneficial interest in Northam Holdings securities

In accordance with section 122(3)(b) of the Companies Act, No. 71 of 2008, as amended (“Companies Act”), and paragraph 3.83(b) of the JSE Limited Listings Requirements (“JSE Listings Requirements”), Northam Holdings shareholders are advised that the company received notification, in the prescribed form, from Old Mutual Limited (“Old Mutual”), advising that it has acquired a beneficial interest in the securities of Northam Holdings, such that Old Mutual now holds a beneficial interest of 5.04% in the company’s total issued share capital.


In accordance with section 122(3)(b) of the Companies Act, No. 71 of 2008, as amended (“Companies Act”), and paragraph 3.83(b) of the JSE Limited Listings Requirements (“JSE Listings Requirements”), Northam Holdings shareholders are advised that the company received notification, in the prescribed form, from Old Mutual Limited (“Old Mutual”), advising that it has acquired a beneficial interest in the securities of Northam Holdings, such that Old Mutual now holds a beneficial interest of 5.04% in the company’s total issued share capital.

The company will file the relevant notification with the Takeover Regulation Panel and the Companies and Intellectual Property Commission, as required in terms of sections 122(3)(a) and 122(3A) of the Companies Act.

The board of directors of Northam Holdings (“Board”) accepts responsibility for the information contained in this announcement and certifies that, to the best of the Board’s knowledge and belief, the information contained in this announcement is true and that there are no facts that have been omitted which would make any statement in this announcement false or misleading and that this announcement contains all information required by law and the JSE Listings Requirements.

Johannesburg
17 January 2024

Debt Sponsor
One Capital

Interest payment notification – NHM023

Northam bondholders are advised of the following interest payment due on Monday, 22 January 2024


Northam bondholders are advised of the following interest payment due on Monday, 22 January 2024:

Bond Code:

NHM023

ISIN:

ZAG000190968

Coupon:

11.35%

Interest Period:

23 October 2023 to 21 January 2024

Interest Amount Due:

R6 876 234.25

Payment Date:

22 January 2024

Date Convention:

Following Business Day

 

Johannesburg
17 January 2024

Debt Sponsor
One Capital

Voluntary production update

Northam is pleased to report a 10.6% increase in total equivalent refined metal production from own operations, and a 19.9% increase in total production (including purchased material), for the 6-month period ended 31 December 2023 (H1 F2024), compared to the 6-month period ended, 31 December 2022 (H1 F2023).


Northam is pleased to report a 10.6% increase in total equivalent refined metal production from own operations, and a 19.9% increase in total production (including purchased material), for the 6-month period ended 31 December 2023 (H1 F2024), compared to the 6-month period ended, 31 December 2022 (H1 F2023).

Key production metrics for H1 F2024 compared to H1 F2023 are as follows:

  H1 F2024
oz 4E
H1 F2023
oz 4E
%
variance
Equivalent refined metal production from own operations at Zondereinde 160 188 160 806 (0.4%)
Concentrate production from own operations at Booysendal 250 004 217 630 14.9% 
Concentrate production from own operations at Eland 32 574 21 463 51.8% 
Total equivalent refined metal production from own operations 434 977 393 309 10.6%
Equivalent refined metal purchased from third parties 83 107 38 739 114.5% 
Total production including purchased material 518 084 432 048 19.9% 

Production growth has been achieved due to the continued focussed execution of the group’s growth strategy. We have targeted increased mechanisation to grow production whilst lowering operational risk and improving our relative position on the industry cost curve. This protects our operations against subdued or volatile commodity markets.

Johannesburg
15 January 2024