| Thu 8 Aug 2002, 0:00 | | Northam - Preliminary reviewed results and dividen |
|
ended 30 June 2002
Northam Platinum Limited
(Incorporated in the Republic of South Africa)
(Registration number 1977/003282/06)
JSE Share code: NHM ISIN: ZAE000030912
("Northam")
HIGHLIGHTS
Revenue maintained at R1 560 million despite 5-week strike
Available Merensky Reserves 50% up at 17 months
Free cash flow up 12% at R187 million
Final dividend of 175 cents per share declared
Income Statement
Year Year
ended ended
30 June 30 June
Change 2002 2001
% R`000 R`000
Sales revenue (0.5) 1 560 685 1 567 883
Cost of sales 25.2 975 549 779 501
Operating costs 9.8 803 514 731 826
Refining and other costs 41 394 29 601
Depreciation 99 451 86 999
Change in metal stocks 31 190 (68 925)
Operating profit (25.8) 585 136 788 382
Net investment income 52 023 39 714
Sundry revenue 20 852 9 863
Sundry expenditure (59) (5 607)
Profit before tax (21.0) 657 952 832 352
Tax (15.9) 259 121 308 143
Net income (23.9) 398 831 524 209
Headline earnings (23.9) 398 831 524 209
Normal and headline earnings per share
(cents) (24.1) 172.8 227.6
Fully diluted earnings per share
(cents) (24.2) 171.4 226.2
Dividends per share (cents) 245.0 235.0
Weighted average number of
shares in issue 230 744 049 230 310 897
Fully diluted number of shares in issue 232 696 600 231 696 160
Number of shares in issue at year-end 230 914 500 230 564 500
Statement of changes in equity
Equity at beginning of period 1 965 439 1 900 201
Issue of new shares 1 580 1 711
Net income for the period 398 831 524 209
Dividends distributed (472 942) (460 682)
Equity at end of period 1 892 908 1 965 439
Operating statistics
Merensky
Development metres 14 622 14 489
Square metres mined 264 463 315 161
Tons milled 1 288 141 1 576 926
Head grade (g/ton - 3 PGEs + Au) 6.1 5.8
Available ore reserves in months 17 11
UG2
Development metres 2 148 3 476
Square metres mined 116 931 66 863
Tons milled 643 286 371 374
Head grade (g/ton - 3 PGEs + Au) 3.8 3.9
Available ore reserves in months 35 26
Combined
Development metres 16 770 17 965
Square metres mined 381 394 382 024
Tons milled 1 931 427 1 948 300
Head grade (g/ton - 3 PGEs + Au) 5.3 5.4
Precious metals in concentrates produced
- 3 PGEs + Au kg 8 458 8 725
oz 271 937 280 516
Precious metals sold - 3 PGEs + Au kg 8 944 8 306
oz 287 546 267 042
Average price realised - 3 PGEs + Au R/kg 160 367 172 733
US$/oz 497 706
Operating costs - 3 PGEs + Au R/kg 105 426 93 848
US$/oz 325 383
Cash costs - 3 PGEs + Au R/kg 94 861 83 750
US$/oz 292 342
Commitments
Capital commitments R`000 R`000
Authorised but not contracted 89 760 87 419
Contracted 7 259 11 126
97 019 98 545
Other commitments R`000 R`000
Information Technology Outsource Service Provider
Due in one year 6 661 -
Due in two to five years 25 524 -
Thereafter 7 666 -
Operating lease rentals - office equipment
Due in one year 184 342
Due in two to five years 465 68
Thereafter 19 -
Operating lease rentals - premises
Due in one year 292 480
Due in two to five years 489 -
Cash flow Statement
Year Year
ended ended
30 June 30 June
2002 2001
R`000 R`000
Cash flows from operations 747 481 800 873
Profit before tax 657 952 832 352
Depreciation 99 451 86 999
Change in working capital 58 522 (53 393)
Tax paid (69 176) (70 463)
Other 732 5 378
Cash flows utilised in investing activities (87 575) (167 325)
Property, plant and equipment
Additions to maintain operations (90 170) (83 909)
Additions to expand operations - (79 423)
Disposals 2 645 535
Investments - net (50) (4 528)
Cash flows from/(utilised in) financing activities (472 802) (467 764)
Net proceeds from issue of shares 1 580 1 711
Increase in Restoration Trust Fund (1 440) (1 269)
Dividends paid (472 942) (460 682)
Decrease in long-term liabilities - (7 524)
Net cash flow 187 104 165 784
Cash and cash equivalents at beginning of period 544 209 378 425
Cash and cash equivalents at end of period 731 313 544 209
Balance sheet
Fixed assets 1 249 774 1 261 159
Unlisted investments 173 182
Northam Platinum Restoration Trust Fund 8 568 7 128
Current assets 1 038 062 882 506
Inventories 249 252 284 214
Accounts receivable 57 497 54 083
Cash and cash equivalents 731 313 544 209
2 296 577 2 150 975
Share capital 2 290 993 2 289 413
Accumulated loss (398 085) (323 974)
Shareholders` equity 1 892 908 1 965 439
Deferred tax 249 103 69 723
Long-term provisions 9 393 8 179
Current liabilities 145 173 107 634
Accounts payable 124 550 97 576
Tax 20 623 10 058
2 296 577 2 150 975
Audit review
Ernst & Young, the company`s auditors, have reviewed the financial results. A
copy of their report is available for inspection at the company`s registered
office.
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 on two occasions during the year under review. This achievement was,
however, marred by the deaths of two employees in mining related accidents.
Management is firmly committed to the eradication of all risks that threaten the
health and safety of employees.
Operating performance
The previously reported five-week strike reduced potential production by
approximately 1 200 kg (3PGE + Au). As a result, production was marginally lower
at 8 458 kg (3PGE + Au).
Good progress continues with the development programme to establish Merensky
reserves as evidenced by the increase in ore reserve availability from 11 months
to 17 months.
Production from the UG2 reef horizon has met the planned production targets.
Financial results
Substantial lower prices, in US Dollar terms, were partially offset by the
decline in the Rand exchange rate. The average price received thus declined by
7.2% to R160 367 per kg (3PGE + Au). This movement was offset by the sale of
metals from inventory thereby maintaining revenue of R1 560 million compared to
R1 568 million for 2001.
Unit cash costs were severely impacted by the lost production and the wasted
overheads associated with the strike and increased by 13.3%. These wasted costs,
coupled with the sale of the metal inventory which was valued at the prevailing
high unit costs, resulted in a 25% increase in the cost of sales.
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 23.9% compared to the previous
year.
Capital expenditure
Capital expenditure is being prioritized. Essential items include
R33 million on refurbishing the smelter after an 11-year campaign, and R42.6
million for the accelerated development programme.
Pandora joint venture
The Pandora joint venture between Anglo Platinum and Lonmin Platinum has a
design capacity of 11 000 kilograms of 3PGEs + Au per annum. Discussions
regarding Northam`s participation in the joint venture are in progress.
Prospects
Accelerated development on the Merensky Reef is targeted at 24 months of
available reserves. The UG2 reserve totals 36 months. Metal production is thus
expected to increase and costs are being rigorously controlled. Provided there
are no adverse changes in the prevailing US Dollar metal prices and the Rand
exchange rate, earnings should improve.
As a Black Empowerment Company, Northam is actively pursuing investment
opportunities arising from the prevailing mining environment.
Northam has no borrowings and maintains a substantial cash balance.
Dividend
A final dividend, dividend number 8, of 175 cents per share has been declared
in South African currency, in respect of the year ended
30 June 2002.
The dividend will be paid on Monday, 2 September 2002 to shareholders recorded
in the books of the company at the close of business on
30 August 2002 (the record date). To comply with the requirements of STRATE the
last day to trade cum dividend is Friday, 23 August 2002. The shares will
commence trading ex dividend on Monday, 26 August 2002 and the record date is
Friday, 30 August 2002.
No share certificates may be de-materialised or re-materialised between Monday,
26 August 2002 and Friday, 30 August 2002, both days inclusive.
On behalf of the Board
T M G Sexwale I C Watson
Chairman Managing Director
Johannesburg
7 August 2002
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
NORTHAM
A broadly based black empowerment company
Date: 08/08/2002 08:00:00 AM Produced by the JSE SENS Department
