JSE:NHM

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Executive Summary

Northam Platinum Limited engages in mining, refining, marketing, and selling platinum group metals and its by-products in South Africa, Europe, Japan, Asia, and North America. More Details


Snowflake Analysis

Exceptional growth potential with solid track record.


Similar Companies

Share Price & News

How has Northam Platinum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NHM is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NHM's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

10.7%

NHM

7.9%

ZA Metals and Mining

4.5%

ZA Market


1 Year Return

82.0%

NHM

77.9%

ZA Metals and Mining

19.4%

ZA Market

Return vs Industry: NHM exceeded the ZA Metals and Mining industry which returned 71.6% over the past year.

Return vs Market: NHM exceeded the ZA Market which returned 16.5% over the past year.


Shareholder returns

NHMIndustryMarket
7 Day10.7%7.9%4.5%
30 Day27.4%19.8%8.0%
90 Day32.9%34.6%16.2%
1 Year82.0%82.0%82.0%77.9%27.3%19.4%
3 Year483.5%483.5%337.9%296.5%12.0%-10.8%
5 Year440.5%440.5%246.1%188.8%44.8%8.6%

Long-Term Price Volatility Vs. Market

How volatile is Northam Platinum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Northam Platinum undervalued compared to its fair value and its price relative to the market?

39.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NHM (ZAR245.67) is trading above our estimate of fair value (ZAR241.65)

Significantly Below Fair Value: NHM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NHM is poor value based on its PE Ratio (39.6x) compared to the ZA Metals and Mining industry average (9.4x).

PE vs Market: NHM is poor value based on its PE Ratio (39.6x) compared to the ZA market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: NHM is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: NHM is overvalued based on its PB Ratio (8.9x) compared to the ZA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Northam Platinum forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

39.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NHM's forecast earnings growth (39.4% per year) is above the savings rate (9.3%).

Earnings vs Market: NHM's earnings (39.4% per year) are forecast to grow faster than the ZA market (25.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NHM's revenue (22.8% per year) is forecast to grow faster than the ZA market (9.3% per year).

High Growth Revenue: NHM's revenue (22.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NHM's Return on Equity is forecast to be very high in 3 years time (41.9%).


Next Steps

Past Performance

How has Northam Platinum performed over the past 5 years?

61.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHM has high quality earnings.

Growing Profit Margin: NHM's current net profit margins (12.2%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: NHM has become profitable over the past 5 years, growing earnings by 61.5% per year.

Accelerating Growth: NHM's earnings growth over the past year (3153.3%) exceeds its 5-year average (61.5% per year).

Earnings vs Industry: NHM earnings growth over the past year (3153.3%) exceeded the Metals and Mining industry 307.8%.


Return on Equity

High ROE: Whilst NHM's Return on Equity (22.48%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Northam Platinum's financial position?


Financial Position Analysis

Short Term Liabilities: NHM's short term assets (ZAR6.4B) exceed its short term liabilities (ZAR4.4B).

Long Term Liabilities: NHM's short term assets (ZAR6.4B) do not cover its long term liabilities (ZAR16.6B).


Debt to Equity History and Analysis

Debt Level: NHM's debt to equity ratio (144.6%) is considered high.

Reducing Debt: NHM's debt to equity ratio has increased from 85.6% to 144.6% over the past 5 years.

Debt Coverage: NHM's debt is well covered by operating cash flow (45.8%).

Interest Coverage: NHM's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Northam Platinum current dividend yield, its reliability and sustainability?

0.97%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NHM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NHM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NHM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NHM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NHM is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NHM's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Paul Dunne (57 yo)

7yrs

Tenure

R36,122,000

Compensation

Mr. Paul Anthony Dunne, BSc (Hons), MBA, has been Chief Executive Officer and Director of Northam Platinum Limited since March 01, 2014. Prior to joining Northam he was employed by Impala Platinum Holdings...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.40M) is about average for companies of similar size in the ZA market ($USD2.03M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Dunne
CEO & Director7yrsR36.12m0.012%
ZAR 10.0m
Aletta Coetzee
CFO, Debt Officer & Executive Director2.33yrsR12.32m0.0045%
ZAR 3.9m
C. Smith
Executive of Human Resourcesno datano datano data
Damian Smith
Group Geologistno datano datano data
G. Duma
Head of Sustainability4yrsno datano data
Patricia Beale
Company Secretary9.42yrsno datano data

5.5yrs

Average Tenure

51.5yo

Average Age

Experienced Management: NHM's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Dunne
CEO & Director7yrsR36.12m0.012%
ZAR 10.0m
Aletta Coetzee
CFO, Debt Officer & Executive Director2.33yrsR12.32m0.0045%
ZAR 3.9m
David Brown
Lead Independent Director0.33yrR651.00kno data
Temba Mvusi
Independent Non-Executive Director5.17yrsR352.00kno data
Glyn Lewis
Independent Non-Executive Director0.25yrno datano data
Hester Hickey
Independent Non-Executive Director5.17yrsR568.00kno data
Khomotso Mosehla
Non-Executive Chairman3.33yrsR618.00k1.46%
ZAR 1.2b
John Smithies
Independent Non-Executive Director4.17yrsR467.00kno data
Tebogo Kgosi
Non-Executive Director16.33yrsR706.00k0.18%
ZAR 155.1m
N. Jekwa
Independent Non-Executive Director3.33yrsR713.00k0.000050%
ZAR 42.7k
Mcebisi Jonas
Independent Non-Executive Director2.33yrsR352.00kno data
J. Nel
Independent Non-Executive Director2.33yrsR584.00kno data

3.3yrs

Average Tenure

59yo

Average Age

Experienced Board: NHM's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Northam Platinum Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northam Platinum Limited
  • Ticker: NHM
  • Exchange: JSE
  • Founded: 1977
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: R85.443b
  • Shares outstanding: 349.88m
  • Website: https://www.northam.co.za

Number of Employees


Location

  • Northam Platinum Limited
  • Building 4
  • 1st Floor
  • Johannesburg
  • Gauteng
  • 2090
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NMPN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
NHMJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
NOCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Northam Platinum Limited engages in mining, refining, marketing, and selling platinum group metals and its by-products in South Africa, Europe, Japan, Asia, and North America. The company explores for plat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 17:01
End of Day Share Price2021/03/05 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.