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Abridged audited group annual results for the year ended 30 June 2020 and notice of annual general meeting
NORTHAM PLATINUM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1977/003282/06)
Share code: NHM ISIN: ZAE000030912
Debt issuer code: NHMI
Bond code: NHM002 Bond ISIN: ZAG000129024
Bond code: NHM006 Bond ISIN: ZAG000158577
Bond code: NHM007 Bond ISIN: ZAG000158593
Bond code: NHM009 Bond ISIN: ZAG000158866
Bond code: NHM011 Bond ISIN: ZAG000159237
Bond code: NHM012 Bond ISIN: ZAG000160136
Bond code: NHM013 Bond ISIN: ZAG000162181
Bond code: NHM014 Bond ISIN: ZAG000163650
Bond code: NHM015 Bond ISIN: ZAG000164922
Bond code: NHM016 Bond ISIN: ZAG000167750
Bond code: NHM017 Bond ISIN: ZAG000167891
Bond code: NHM018 Bond ISIN: ZAG000168097
Bond code: NHM019 Bond ISIN: ZAG000168105
(“Northam” or the “company” or the “group”)
ABRIDGED AUDITED GROUP ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2020 AND NOTICE
OF ANNUAL GENERAL MEETING
Key features:
- Record revenue of R17.8 billion
- Record operating profit of R5.3 billion
- Record EBITDA of R6.0 billion
- Record normalised headline earnings of R3.4 billion equating to 676.3 cents per share, up 150.4%
- Record profit after tax of R2.2 billion
- Return of shareholder value, through 46.7% Zambezi preference share ownership
- Net debt of R3.3 billion
Financial results
Despite the challenges of the COVID-19 pandemic, this has been a record year for Northam. The company has
commenced the fourth strategic phase by returning meaningful value to Northam shareholders (“shareholders”)
and remains committed to returning further value going forward.
The group achieved record sales revenue, record operating profit and record earnings before interest, taxation,
depreciation and amortisation (“EBITDA”) for the year. These record outcomes were achieved notwithstanding
the impact of mine and production stoppages, which occurred as a result of the COVID-19 induced lockdown.
Prior and up to the commencement of the lockdown period, the group was on track to achieve record production
from own operations during the year ended 30 June 2020 (“F2020”).
Sales revenue increased by 67.3% to R17.8 billion (F2019: R10.6 billion) for the year. This increase is attributable
to a 60.8% rise in the 4E basket price to USD1 764/oz (F2019: USD1 097/oz) and a 10.9% weaker ZAR/USD
exchange rate realised.
Despite logistical hurdles associated with the COVID-19 pandemic, including border closures that made the
distribution of refined metal challenging, the group maintained robust refined metal sales of 560 238 4E oz. This
highlights the strong relationships that Northam has developed and maintained with its industrial customer base
over many years.
The average US dollar sales prices achieved during the year under review improved for most metals. Palladium
and rhodium both performed well, increasing by 52.4% and 169.8%, respectively. Both these metals continued
their upward trends subsequent to the financial year end. Platinum however, making up roughly 60% of the sales
volume of Northam’s precious metals 4E basket, continues to be the laggard. The average price achieved during
the year was USD858/oz (F2019: USD824/oz), which impacted the 4E basket price achieved. Platinum now only
contributes 28.0% (F2019: 46.3%) to the 4E basket. Any upward movement in the platinum price will have a
positive impact on the profitability of the group.
The group continues to deliver on its strategy of developing low-cost, long-life assets which are positioning the
group for further strong financial performance even in subdued or potentially volatile commodity markets. The
benefit of Northam’s growth strategy, initiated in 2015, is evidenced by some of the key financial highlights listed
below:
Highlights
30 June 2020 30 June 2019 Variance
%
Sales revenue R17.8 billion R10.6 billion 67.3
Operating profit R5.3 billion R2.4 billion 120.0
Operating profit margin 29.8% 22.6% 31.9
Normalised headline earnings R3.4 billion R1.4 billion 150.4
Earnings per share 620.0 cents 17.2 cents >1000.0
Headline earnings per share 619.5 cents 15.8 cents >1000.0
Normalised headline earnings per share 676.3 cents 270.1 cents 150.4
EBITDA R6.0 billion R2.6 billion 128.3
EBITDA margin 33.8% 24.8% 36.3
Capital expenditure R2.4 billion R2.9 billion (17.2)
Dividends and other means of returning value to shareholders
There are a number of ways that value can be returned to shareholders. This includes cash dividends, but also
includes share buy-backs or the purchase of the Zambezi Platinum (RF) Limited (“Zambezi”) preference shares.
During the year under review, Northam returned value to shareholders by acquiring 49 364 435 Zambezi
preference shares for R3.7 billion. Subsequent to year end an additional 21 134 297 preference shares were
acquired for R1.7 billion. Northam now holds 46.7% of the total issued number of Zambezi preference shares.
The board has therefore resolved not to declare a dividend for the financial year ended 30 June 2020 (F2019:
RNil).
NOTICE OF ANNUAL GENERAL MEETING
The annual general meeting (“AGM”) of shareholders will be held on Friday, 27 November 2020 at 10:00 to
transact the business as stated in the notice of AGM and abridged annual report 2020 (“notice and abridged
annual report 2020”).
In light of the COVID-19 pandemic, the AGM will be held entirely by way of electronic participation. Shareholders
are encouraged to read the notice and abridged annual report 2020 for information on how to attend electronically,
participate in and vote at the AGM.
Shareholders are advised that the notice and abridged annual report 2020, containing the summarised audited
annual financial statements for the year ended 30 June 2020, will be distributed to shareholders today, 28 August
2020.
The annual integrated report 2020, the complete consolidated audited annual financial statements which
incorporates the external auditors’ report in which Ernst & Young Inc. expressed an unmodified audit opinion and
the notice and abridged annual report 2020 are available on the company’s website at
https://www.northam.co.za/investors-and-media/publications/annual-reports or can be obtained from the
company’s registered office on request.
The salient dates for the AGM are as follows:
2020
Record date to determine which shareholders are entitled to receive the notice
and abridged annual report 2020, on Friday, 21 August
Distribution of the notice and abridged annual report 2020 to shareholders, on Friday, 28 August
Last date to trade in order to be recorded in the register to be able to
electronically attend, participate in and vote at the AGM, on Tuesday, 10 November
Record date to determine which shareholders are entitled to electronically
attend, participate in and vote at the AGM, on Friday, 13 November
For administration purposes, forms of proxy to be lodged by 10:00, on * Thursday, 26 November
AGM to be held at 10:00, on Friday, 27 November
Results of AGM published on SENS, on Friday, 27 November
* Any forms of proxy not lodged by this date and time must be submitted to the chairman of the AGM before the
start of the AGM, electronically, as set out in the notice and abridged annual report 2020, before the appointed
proxy may exercise any rights of the shareholder at the AGM.
This short-form announcement is the responsibility of the directors and is only a summary of the information
contained in the full results announcement and does not contain full or complete details.
Any investment decision should be based on the full results announcement accessible via the JSE link at
https://senspdf.jse.co.za/documents/2020/JSE/ISSE/NHM/AFS_2020.pdf and also available on Northam’s
website at https://www.northam.co.za/investors-and-media/publications/annual-reports.
The consolidated audited annual financial statements, from which the full results announcement has been
extracted, have been audited by Ernst & Young Inc., who expressed an unmodified opinion thereon. The key
audit matters contained in the auditor’s report are addressed on page 12 of the consolidated audited annual
financial statements, which is available on Northam’s website at https://www.northam.co.za/investors-and-
media/publications/annual-reports.
The full results announcement and the consolidated audited annual financial statements, incorporating the
auditors’ report, are also available at our registered office and at the office of our sponsor for inspection, at no
charge, during office hours.
On behalf of the board at Johannesburg on 18 August 2020.
KB Mosehla PA Dunne
Chairman Chief executive
DIRECTORS
KB Mosehla (non-executive chairman)
R Havenstein (lead independent non-executive director)
PA Dunne * (chief executive officer)
AH Coetzee (chief financial officer)
DH Brown (independent non-executive director)
CK Chabedi (non-executive director)
HH Hickey (independent non-executive director)
NY Jekwa (independent non-executive director)
MH Jonas (independent non-executive director)
TE Kgosi (non-executive director)
TI Mvusi (independent non-executive director)
JJ Nel (independent non-executive director)
JG Smithies * (independent non-executive director)
* British
Registered office
Building 4, 1st Floor, Maxwell Office Park
Magwa Crescent West
Waterfall City
Jukskei View, 2090
South Africa
PO Box 412694
Craighall, 2024
South Africa
Telephone +27 11 759 6000
www.northam.co.za
Company secretary
PB Beale
Building 4, 1st Floor, Maxwell Office Park
Magwa Crescent West
Waterfall City
Jukskei View, 2090
South Africa
P O Box 412694
Craighall, 2024
South Africa
e-mail:trish.beale@norplats.co.za
Transfer secretaries
Computershare Investor Services Proprietary
Limited
Rosebank Towers
15 Biermann Avenue
Rosebank, 2196
South Africa
Private Bag X9000
Saxonwold, 2132
South Africa
Corporate advisor, sponsor and debt sponsor
One Capital
17 Fricker Road
Illovo, 2196
Johannesburg
South Africa
PO Box 784573
Sandton, 2146
South Africa
Johannesburg
28 August 2020
Date: 28-08-2020 07:05:00
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