Northam battered by lower metals prices and empowerment scheme
The platinum miner, which halved its full-year loss, is reconsidering its involvement in the loss-making Pandora venture, which is likely to need further cash injections
Northam reported a loss for the year of R508m, half the R1.03bn loss the previous year. It recorded a finance cost of R919m related to the preference shares issued in the May 2015 black economic empowerment scheme with Zambezi Platinum. Northam, which operates two mines, reported its operating profit fell 36% to R383m, driven down by lower prices for the platinum group metals the company produced, which offset the 16% increase in output for the year to end-June. Northam sold 7% more metal in the year, but the rand price fell 6% from a year ago, to R382,979/kg, reflecting a 25% fall in the dollar price of the basket of metals that was offset by a weakening of the rand. Northam raised production to 436,960oz during the year, with its new shallow and mechanised Booysendal mine reaching steady-state production and its deep-level Zondereinde mine turning in a "solid operating performance", the company said on Friday. "In line with the group strategy to diversify into shallow mechanisable...
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