Northam Platinum
Market Cap
R85.4b
Last Updated
2021/03/05 17:01 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
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
| NHM | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.7% | 7.9% | 4.5% |
| 30 Day | 27.4% | 19.8% | 8.0% |
| 90 Day | 32.9% | 34.6% | 16.2% |
| 1 Year | 82.0%82.0% | 82.0%77.9% | 27.3%19.4% |
| 3 Year | 483.5%483.5% | 337.9%296.5% | 12.0%-10.8% |
| 5 Year | 440.5%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
1 month ago | Simply Wall St
Does Northam Platinum Limited (JSE:NHM) Create Value For Shareholders?2 months ago | Simply Wall St
Here's Why I Think Northam Platinum (JSE:NHM) Is An Interesting Stock3 months ago | Simply Wall St
What Does Northam Platinum's (JSE:NHM) CEO Pay Reveal?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 7yrs | R36.12m | 0.012% ZAR 10.0m | |
| CFO, Debt Officer & Executive Director | 2.33yrs | R12.32m | 0.0045% ZAR 3.9m | |
| Executive of Human Resources | no data | no data | no data | |
| Group Geologist | no data | no data | no data | |
| Head of Sustainability | 4yrs | no data | no data | |
| Company Secretary | 9.42yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 7yrs | R36.12m | 0.012% ZAR 10.0m | |
| CFO, Debt Officer & Executive Director | 2.33yrs | R12.32m | 0.0045% ZAR 3.9m | |
| Lead Independent Director | 0.33yr | R651.00k | no data | |
| Independent Non-Executive Director | 5.17yrs | R352.00k | no data | |
| Independent Non-Executive Director | 0.25yr | no data | no data | |
| Independent Non-Executive Director | 5.17yrs | R568.00k | no data | |
| Non-Executive Chairman | 3.33yrs | R618.00k | 1.46% ZAR 1.2b | |
| Independent Non-Executive Director | 4.17yrs | R467.00k | no data | |
| Non-Executive Director | 16.33yrs | R706.00k | 0.18% ZAR 155.1m | |
| Independent Non-Executive Director | 3.33yrs | R713.00k | 0.000050% ZAR 42.7k | |
| Independent Non-Executive Director | 2.33yrs | R352.00k | no data | |
| Independent Non-Executive Director | 2.33yrs | R584.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NMPN.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| NHM | JSE (The Johannesburg Securities Exchange) | Yes | Ordinary Shares | ZA | ZAR | Jan 1992 |
| NOC | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/05 17:01 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.