Annual Integrated Report 2016




The primary purpose of our integrated report is to explain how we create value over time


Northam Platinum Limited (Northam or Northam Platinum or the group or the company) is listed on the JSE Limited (JSE) in South Africa. This integrated report, together with the company’s notice of annual general meeting (AGM) and abridged annual financial statements, is published in compliance with the JSE’s listings requirements and the provisions of the South African Companies Act No 71 of 2008 (Companies Act).

Northam is committed to reporting in line with the King Report on Corporate Governance in South Africa 2009 (King III). The application of these guidelines is reviewed in the corporate governance section of this report.

In its financial disclosure, the group reports in terms of International Financial Reporting Standards (IFRS), the Companies Act and the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC).

Northam’s financial year runs from 1 July to 30 June. In this 2016 financial year (the 2016 reporting period), Northam has continued with its integrated approach to reporting, first embarked upon in FY2012. This approach seeks to present to stakeholders a holistic overview of the group’s financial and non-financial performance for the reporting period and incorporates the recommendations of the International Integrated Reporting Council (IIRC) and the Global Reporting Initiative (GRI) fourth generation (G4) guidelines. This holistic overview provides a summary of the business, its performance and the value it creates for stakeholders and an assessment of the group’s governance, economic, social and environmental impacts and performance during the reporting period.

The primary purpose of our integrated report is to explain how we create value over time, through a combination of quantitative and qualitative information. We have chosen to use the capitals concept to convey this information, as we believe this provides users of the report with a good understanding of how we create value for all stakeholders. The International Integrated Reporting Framework defines capitals as stocks of value that are affected or transformed by the activities and outputs of an organisation. In our report, we have focused on financial, human, social and natural capital and combined manufactured and intellectual capital.

In formulating our strategy and determining our strategic priorities, we continue to consider those issues that are most material to the business and stakeholders, influence the sustainability of our business and the social, economic and physical environments in which we operate and which fundamentally influence the assessments and decisions of stakeholders.

The financial statements include the group’s subsidiaries, joint ventures and associates. The non-financial disclosure is limited to the group’s two wholly-owned operations, the Zondereinde and Booysendal mines. Discussion on performance is confined to those entities where the group is the operator.


Northam’s internal and external auditing functions are critical areas of governance. The internal audit function is outsourced to KPMG Services Proprietary Limited (KPMG) for independent appraisal. KPMG’s specific tasks are to:

  • examine and evaluate the group’s systems of internal control in the mitigation of business and financial risks; and
  • assist members of management with discharging their duties effectively.

The group’s consolidated annual financial statements have been audited by the external auditor, Ernst & Young Inc. The independent auditor’s report may be found in the annual financial statements.

Certain non-financial key performance indicators in this report have also been assured by independent assurance provider Ernst & Young Inc in respect of Northam’s application of GRI’s G4. The group reports in line with the ‘core’ format. The reporting process has also been underpinned by the AA1000 AccountAbility Principles Standards 2008, which include Inclusivity, Materiality and Responsiveness. See the independent assurance report.

Except where specifically stated otherwise, Northam reports ore resources, reserves, production and grades in terms of its platinum, palladium, rhodium and gold elements/metal content. This is expressed as 3PGE+Au or 4E.

In this report, employees are those people directly employed by Northam. Indirect employees are those people employed by contracting companies i.e. providers of specialised and/or technical services to the operations.

Both ZAR and R signify rands, the South African currency. Non-financial reporting indicators are defined in a glossary available on the Northam website at


  • Financial Capital [icon]

    Exemplary group safety performance

  • Capex [icon]

    R1.2billion capex invested

  • Production [icon]

    PGM production up 15.7%

  • Financial Capital [icon]

    87.1c/share Normalised headline earnings

  • Financial Capital [icon]

    Unit costs well contained

  • Financial Capital [icon]

    US$ basket price down 25%

  • Financial Capital [icon]

    Booysendal South expansion project approved


smart platinum mining