Northam returns to full-year profit


Northam returns to full-year profit

Published Date: 2019-08-13 | Source: Stephen Gunnion | Author: Stephen Gunnion

Northam returns to full-year profit

The platinum producer says its two mines reported solid operating performances as it benefitted from higher metals prices.

Northam Platinum says it will report a record operating profit for the year to end-June, while net profit will also be positive after losses the previous year.

In a trading statement, the platinum producer said revenue for the 12 months rose 41% to R10.6 billion and operating profit surged 193% to R2.4 billion. That will result in a rise of between 108% and 109% in basic earnings per share to between 16.2c and 18.2c, from a 201.5c loss. Headline earnings per share are expected to increase to between 14.8c and 16.8c from a 200.5c loss.

The group said its results were underpinned by solid operating performances at Zondereinde and Booysendal, its two operating mines, well-contained unit cash costs and a higher price for the platinum group metals (PGMs) it sold. Production from its own operations increased by 7.4% to 519,954 ounces, while sales rose 23.3% to 583,069 ounces.

Normalised headline earnings, which are adjusted for the impact of its black economic empowerment transaction, are likely to be more than 220% higher at above R1.3 billion.

Its results are due for release on 23 August. Its shares closed 1% lower at R61.54 yesterday. The trading statement was released at the close of trade.

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