Northam profits surge on output

Johannesburg - Northam Platinum [JSE:NHM], one of South Africa’s smaller platinum producers, said on Friday its first-half earnings more than doubled due to significantly improved production and a higher average price.

Diluted headline earnings per share totalled 51.8 cents for the six months to end-December from 20.9c/share in the same period a year earlier.

The company declared an interim dividend of 5c/share.

Production of metals in concentrate amounted to 4 592kg in the six months, 27% higher than the 3 629kg produced the year before.

The company expects production in the second half of the year to be lower owing to the increased number of public holidays in the period. It said production was also highly dependent on geological conditions.

However, if the rand basket price remains at current levels of R335 000/kg earnings would be higher, said Northam.

The company said a total of 489kg of production was lost to safety stops in the six months.

Total cash costs were 2% lower at R273.812/kg from R279 936/kg previously.

Shares of the company are up 5.4% so far this year, compared with a 6.3% rise in Johannesburg’s All Share [JSE:J203] index.