Northam sales up by 48.5% in H1

Northam Platinum

Profits R1.0 billion in H1!

Northam Platinum has posted results for the first half-year of the 2019 financial year. The strategy which was launched in 2015 with the Zambezi Platinum (RF) Limited Black Economic Empowerment transaction, has for the first time unfolded in the numbers. Normalised headline earnings, the primary measure of performance, amounted to R553 million, or 108.5 cents per share, up by 192.6%.

Sales revenues increased by 48.5% to R5.0 billion, mainly on the back of higher volumes and operating profit of R1.0 billion, an all-time record for an interim period. R1.5 billion spent on capital expenditure, mainly in the execution of the group growth strategy. At a presentation to the investment community in Johannesburg, Northam chief executive Paul Dunne commented.

He said: “Our growth strategy remains on track, and projects are generally ahead of schedule, 1: good progress is being made at Booysendal South with the successful commissioning of the rope conveyor and the re-commissioning of the PGM circuit at the South concentrator & 2: At Zondereinde, excellent progress is being made with the ore reserve development in the western extension.

“We believe that these projects will position the group favourably to benefit from a stronger price environment in the next few years.” Good progress was made with the de-stocking of excess inventory. During the period 30K ounces were released, resulting in significantly higher sales volumes of almost 300K 4E ounces, and boosting sales revenues to R5.0 billion. Excess inventory currently sits at approximately 140 000 4E ounces with a market value of around R2.3 billion, using December 2018 prices.

Incoming chief financial officer Alet Coetzee added, “In the current price environment, our main focus remains on cost control and growing our production base down the cost curve, and hereby creating long term value for all out stakeholders.”