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Northam posts record operating profit in full-year earnings

Aug 23 2019 13:23
Sibongile Khumalo

Northam Platinum [JSE: NHM] has reported a record operating profit of R2.4bn for the full year to the end of June - up from R823m - representing an increase of 192.7% from the previous year. 

The group's audited annual financial results were released on Friday.

Northam, with operations in the Limpopo province, said its Booysendal and Zondereinde mines had boosted production. It also contained costs and benefited from higher prices received for PGMs, translating to an operating profit margin of 22.6%.

Revenue increased 41.0% to R10.6bn, while net income for the period was R71.4m compared to a loss of R705.4m seen in 2018.

"Despite the difficult economic circumstances prevailing during the period under review, both of Northam's mining operations posted an operating profit," it said.

Zondereinde posted an operating profit of R1.3bn, up from R355.4m the previous year, and Booysendal saw an operating profit of R985.7m, up from R525.4m.

The company's net debt stands at R3bn.

Northam said its growth strategy relied on shallow, mechanisable ore bodies, positioning the company for modern and sustainable mining operations.

"The group continues to deliver on its strategy of developing low-cost, long-life assets in order to position itself at the lower end of the industry cost curve," it added. 

No dividend was declared. 

At 12:33 on Friday, Northam shares were changing hands at R58.70, down 1.61%.

northam  |  platinum
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