| Fri 6 May 2011, 16:05 | | NHM - Northam Platinum Limited - Further announcement relating to the proposed |
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NHM
NHM
NHM - Northam Platinum Limited - Further announcement relating to the proposed
sale of The Southern Portion of the Booysendal Mining right to Aquarius Platinum
NORTHAM PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1977/003282/06
(ISIN: ZAE000030912)
(Share Code: NHM)
("Northam" or "the Company")
FURTHER ANNOUNCEMENT RELATING TO THE PROPOSED SALE OF THE SOUTHERN PORTION OF
THE BOOYSENDAL MINING RIGHT TO AQUARIUS PLATINUM (SOUTH AFRICA) (PROPRIETARY)
LIMITED, A WHOLLY OWNED SUBSIDIARY OF AQUARIUS PLATINUM LIMITED FOR R1.2 BILLION
IN CASH ("THE TRANSACTION") AND WITHDRAWAL OF CAUTIONARY ANNNOUNCEMENT
Northam shareholders are referred to the announcement published by the Company
on 4 May 2011 ("the Announcement") which set out details of the Transaction and
are advised that unaudited pro forma financial effects of the Transaction
("Financial Effects") on Northam`s basic earnings per share ("EPS"), headline
earnings per share ("HEPS"), fully diluted EPS, fully diluted HEPS, net asset
value per share ("NAVPS") and net tangible asset value per share ("NTAVPS") are
set out below.
FINANCIAL EFFECTS
The Financial Effects have been prepared in terms of the JSE Limited Listing
Requirements and the Guide on Pro Forma Financial Information issued by the
South African Institute of Chartered Accountants ("SAICA Guide").
The Financial Effects have been prepared to illustrate the impact of the
Transaction on Northam`s published reviewed results for the six months ended 31
December 2010, as published on 23 February 2011 ("Interim Results"), had the
Transaction occurred on 1 July 2010 for consolidated statement of comprehensive
income purposes, and on 31 December 2010, for consolidated statement of
financial position purposes.
It should be noted that the Financial Effects do not take into account the pro
forma financial effects of the related party acquisition by Northam of all the
issued ordinary shares in Mvelaphanda Resources Limited ("Mvela"), details of
which were set out in the circular to Northam shareholders dated 18 February
2011 ("the Mvela Transaction"). The Mvela Transaction was approved by Northam
shareholders on 14 March 2011 and will be effected by way of a scheme of
arrangement ("the Scheme"). The Scheme will become operative on Monday, 6 June
2011.
The Financial Effects have been prepared using accounting policies that comply
with IFRS and are consistent with those applied in the Interim Results.
The Financial Effects are the responsibility of Northam`s directors and have
been prepared for illustrative purposes only and, due to their nature, do not
fairly present the financial position, results of operation or cash flows of
Northam after the Transaction.
Before the After the Change
Transaction Transaction %
EPS (cents) 21.0 25.9 23.3
Fully diluted EPS 20.9 25.8 23.4
HEPS (cents) 21.0 20.9 (0.5)
Fully diluted HEPS 20.9 20.8 (0.5)
NAVPS (cents) 2 461 2 466 0.2
NTAVPS (cents) 893 1 225 37.2
Number of ordinary shares in 361 258 500 361 258 500 --
issue at 31 December 2010
Weighted average number of 360 747 809 360 747 809 --
shares in issue for the period
ended 31 December 2010
Fully diluted number of shares 362 498 431 362 498 431 --
in issue for the period ended
31 December 2010
Notes:
The "Before the Transaction" column information has been extracted,
without adjustment, from the Interim Results.
The "After the Transaction" column is based on the "Before the
Transaction" column and after the following principal assumptions:
1) EPS,HEPS, fully diluted EPS and fully diluted HEPS
1.1)the Southern portion of Booysendal is sold for an amount of R1.2
billion, net of value added tax and tax charges arising from the disposal.
1.2) a gain on the disposal of the Southern portion of Booysendal
amounting to R19.7 million is recorded.
1.3) no adjustment for interest accruing on the cash consideration of R1.2
billion has been made, in line with the SAICA Guide.
1.4) estimated costs relating to the Transaction of R508 000 have been
taken into account.
1.5) the fully diluted EPS and HEPS are based on the weighted number of
shares in issue during the period plus the weighted average number of
Northam Share Option Scheme options outstanding during the period.
2) NAVPS and NTAVPS
2.1) accounted for the cash received of R1.2 billion and accounted for a
reduction of R1.18 billion in the value of the mining properties and
mineral resources and the resultant gain on disposal of the Southern
portion of Booysendal, amounting to R19.7 million.
2.2) accounted for the estimated costs applicable to the Transaction of
R508 000.
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Further to the publication of the Financial Effects, the cautionary statement as
set out in the Announcement is hereby withdrawn.
Johannesburg
6 May 2011
Sponsor
One Capital
Date: 06/05/2011 16:05:51 Produced by the JSE SENS Department.
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