| Thu 31 Jan 2002, 0:00 | | Northam Platinum: Interim Report And Dividend Decl |
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NORTHAM PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1977/003282/06)
Share code: NHM ISIN: ZAE000030912
("Northam")
Interim report and dividend declaration for the six months ended 31 December
2001
KEY FEATURES
Sales revenue R669 million
Headline earnings R127 million
UG2 expansion project now fully operational
Operating profit R193 million
Dividend of 70 cents declared
Underground development programme delivering results
Income Statement
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2001 2000 2001
R'000 R'000 R'000
Sales revenue 669 411 741 579 1 567 883
Cost of sales 476 712 390 747 779 501
Operating costs 374 075 365 029 731 826
Refining and other costs 17 528 12 650 29 601
Depreciation 42 924 43 560 86 999
Change in metal stocks 42 185 (30 492) (68 925)
Operating profit 192 699 350 832 788 382
Investment income 23 000 17 130 39 714
Sundry revenue 21 181 299 9 863
Sundry expenditure - (313) (5 607)
Profit before tax 236 880 367 948 832 352
Tax 109 881 139 153 308 143
Net income 126 999 228 795 524 209
Headline earnings 126 999 228 795 524 209
Basic and headline earnings
per share - cents 55.1 99.4 227.6
Fully diluted earnings
per share - cents 54.7 98.8 226.2
Dividends per share - cents 70.0 100.0 235.0
Weighted average number of shares
in issue 230 634 856 230 166 103 230 310 897
Number of shares in issue 230 724 500 230 197 000 230 564 500
Cash flow statement
Cash flow from operations 215 444 352 160 800 873
Profit before tax 236 880 367 948 832 352
Depreciation 42 924 43 560 86 999
Change in working capital (15 966) (30 832) (53 393)
Tax paid (48 976) (28 768) (70 463)
Other 582 252 5 378
Cash utilised in investing activities (43 785) (84 964) (167 325)
Cash utilised in financing acitvities (310 829) (236 393) (467 764)
Net proceeds from issue of shares 865 190 1 711
Increase in Restoration Trust Fund (344) (289) (1 269)
Dividends paid (311 350) (230 157) (460 682)
Decrease in long-term liabilities - (6 137) (7 524)
Net cash flow (139 170) 30 803 165 784
Cash at beginning of period 544 209 378 425 378 425
Cash at end of period 405 039 409 228 544 209
Operating statistics
Merensky
Development metres 7 635 7 802 14 489
Square metres mined 127 312 167 619 315 161
Tons milled 599 040 860 000 1 576 926
Head grade (g/ton - 3 PGEs + Au) 5.9 5.7 5.8
UG2
Development metres 949 1 648 3 476
Square metres mined 55 092 22 406 66 863
Tons milled 300 476 45 000 371 374
Head grade (g/ton - 3 PGEs + Au) 3.8 3.9 3.9
Combined
Development metres 8 584 9 450 17 965
Square metres mined 182 404 190 025 382 024
Tons milled 899 516 905 000 1 948 300
Head grade (g/ton - 3 PGEs + Au) 5.2 5.7 5.4
Statement of changes in equity
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2001 2000 2001
R'000 R'000 R'000
Equity at beginning of period 1 965 439 1 900 201 1 900 201
Issue of new shares 865 190 1 711
Net income for the period 126 999 228 795 524 209
Dividends distributed (311 350) (230 157) (460 682)
Equity at end of period 1 781 953 1 899 029 1 965 439
Balance sheet
Fixed assets 1 261 976 1 226 272 1 261 159
Unlisted investments 226 181 182
Deferred tax - 61 545 -
Northam Platinum Restoration Trust Fund 7 472 6 148 7 128
Current assets 777 097 723 162 882 506
Inventories 243 993 251 295 284 214
Accounts receivable 128 065 62 639 54 083
Cash and cash equivalents 405 039 409 228 544 209
2 046 771 2 017 308 2 150 975
Share capital 2 290 278 2 287 892 2 289 413
Accumulated loss (508 325) (388 863) (323 974)
Shareholders' equity 1 781 953 1 899 029 1 965 439
Deferred tax 127 867 - 69 723
Long-term provisions 8 761 7 087 8 179
Current liabilities 128 190 111 192 107 634
Accounts payable 115 371 95 774 97 576
Tax 12 819 14 031 10 058
Current portion of
long-term liabilities - 1 387 -
2 046 771 2 017 308 2 150 975
Precious metals in concentrates
produced - 3 PGEs + Au kg 3 867 4 249 8 725
oz 124 330 136 613 280 516
Precious metals sold - 3 PGEs + Au kg 4 192 4 233 8 306
oz 134 776 136 094 267 042
Average price realised
- 3 PGEs + Au R/kg 147 596 161 391 172 733
$/oz 486 688 706
Operating costs - 3 PGEs + Au R/kg 107 832 96 158 93 848
$/oz 355 410 383
Cash costs - 3 PGEs + Au R/kg 96 582 85 847 83 750
$/oz 318 366 342
Capital expenditure
Capital expenditure
incurred during the period R000 43 741 84 984 163 332
Capital commitments at end of period
Contracted R000 9 010 31 743 11 126
Authorised but not contracted R000 48 136 14 838 87 419
R000 57 146 46 581 98 545
Accounting policies
The financial statements have been prepared on the historical cost basis in
accordance with International Accounting Standards and South African
statements of Generally Accepted Accounting Practice and incorporate the
accounting policies which are consistent with those adopted in the previous
year.
Comment on results
Safety
Management is pleased to record that the mine achieved one million fatality-
free shifts during the period. This achievement, however, was subsequently
marred by the death of two employees in mining-related accidents. Management
views all mining-related accidents in a serious light and remains committed
to providing a safe working environment and to the reduction of all risks
that threaten the health and safety of employees.
Operating performance
An unfortunate five-week strike during the first quarter resulted in the
loss to the company of R180 million in revenue and of R20 million in wages
and benefits to employees.
The strike ended with the conclusion of a two-year wage agreement.
Excellent cooperation between management and employees thereafter
facilitated the smooth resumption of production. Initiatives to strengthen
relationships between management and employees are in progress.
Good progress continues with the development programme to establish
Merensky reserves away from the geologically disturbed zones which had
previously hampered production. This is evidenced by the improvement in the
Merensky head grade.
Production from the UG2 reef horizon has met the planned production
targets.
Financial results
The substantial decline in the metal prices, although partly offset by the
depreciation of the Rand, resulted in sales revenues declining by 10%
compared to the six months ended 31 December 2000.
Costs were well controlled but, as a result of lower metal production,
Rand unit cash costs increased by 12% compared to the six months ended 31
December 2000. A decrease in the metal inventory, together with the overhead
costs incurred during the strike, resulted in cost of sales for the period
increasing by 22%.
Currency gains resulting from the depreciation of the Rand were largely
responsible for the increase in sundry revenue.
The profit attributable to shareholders fell by 44% compared to the six
months ended 31 December 2000.
The increase in the tax payments is principally a result of Secondary Tax
on Companies consequent upon the higher dividend declarations. In addition
the company commenced paying non-mining tax with effect from the second half
of the previous financial year.
Prospects
In line with planned increases in metal production, and the implementation
of a cost containment strategy, the company expects to deliver an improved
performance during the second half of the financial year. At current Rand
metal prices, the financial results for the second half of the year should
exceed those of the first half. The improved outlook for the full year has
been recognised in the interim dividend declaration.
Dividend
Dividend number 7 of 70 cents per share has been declared in South African
currency, in respect of the six months ended 31 December 2001. The dividend
will be paid on Wednesday, 27 February 2002 to shareholders recorded in the
books of the company at the close of business on Friday, 22 February 2002
(the record date). To comply with the requirements of STRATE, the last day
to trade cum dividend is Friday, 15 February 2002. The shares will commence
trading ex dividend on Monday, 18 February 2002 and the record date is
Friday, 22 February 2002.
No share certificates may be dematerialised or rematerialised between
Monday, 11 February 2002 and Friday, 22 February 2002, both days inclusive.
On behalf of the Board
T M G Sexwale I C Watson
Chairman Managing Director
Johannesburg
30 January 2001
Registered office: Kenilworth House PO Box 37160
Rutherford Estate Birnam
1 Scott Street 2015
Waverley 2090 Republic of South Africa
Johannesburg
Directors:
T M G Sexwale (Chairman), I C Watson (Managing Director),
M E Beckett (British), B E Davison, D T G Emmett, A S Malone, E Molobi,
R H H van Kerckhoven (Belgian), B R van Rooyen, M J Willcox
Company Secretary:
S J van der Spuy
These results are available on our website at www.northam.co.za
