• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

See More

Northam Platinum earnings slump 30%

Feb 22 2013 09:16 Reuters

Company Data


Last traded 45
Change 1
% Change 3
Cumulative volume 394957
Market cap 0

Last Updated: 24-04-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Northam sees subdued earnings growth

Num declares dispute with Northam

No surprise as Northam profit halves

Surprise inspections for Northam

Court suspends mine safety stoppage

Northam profits surge on output


Johannesburg - Northam Platinum [JSE:NHM], one of South Africa's smaller platinum producers, reported a 30.1% fall in first-half headline earnings as finance and tax charges swelled.

Headline earnings per share for the six months to end December were almost a third lower at 36.3 cents from 51.9 cents in the first half of its previous year.

Production of precious metals in concentrates climbed 6.5% to 157,183 ounces and precious metals sales grew 4.4% to 177,655 ounces.

Northam managed to escape last year's violent labour unrest unscathed but its future will be impacted by the crisis in the South African platinum sector.

"Against the background of a volatile labour relations climate in the South African mining sector, Northam's results reflect a sustained operational recovery at the company's Zondereinde mine," Northam said.

Threats of a worldwide shortage of platinum group metal (PGM) supplies from South Africa helped to stem the decline in the dollar prices of PGMs.

The weakening of the South African rand against the US dollar also played a hand in improving the rand basket price, which helped push up revenue.   

While social and economic uncertainty is expected to dominate the platinum industry's agenda this year the company said it would deliver an improved operational performance compared to the previous year.

Northam did not declare an interim dividend, choosing instead to ensure it has enough cash for the R4bn development of its flagship Booysendal mine.

It also wants to cushion itself against the uncertainty in the South African mining industry.

The company's shares have gained 20.86% in the past 12 months, while the JSE's Platinum Index has fallen 13.10%.

A massive decline in earnings have been reported across the platinum sector as the larger producers struggle to regain their footing after their operations were brought to their knees by extended illegal strikes late last year.

More than 50 people were killed in labour unrest last year.  

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

northam platinum  |  mining  |  platinum


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

10 most expensive cars In the world

This is car porn at its best!


Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote