Preference share dividend payment plunges Northam into full-year loss
The platinum company turned in a strong operational performance and invested heavily in growth during the year
Northam Platinum recorded a strong operational performance during a year of hefty investment in growth, but a large preference share dividend payment, a noncash item, plunged the group into a full-year loss.Northam, one of the most dynamic platinum companies in a stressed local environment, has invested in its new shallow Booysendal mines and its flagship Zondereinde deep-level mine as well as snapping up growth prospects like the mothballed Eland mine from Glencore as well as unmined resources from Anglo American Platinum.Northam spent R1.6bn during the year, a 40% increase, as it invested in expanding Booysendal and Zondereinde and building a new furnace at Zondereinde to address processing constraints that led to a build up in inventory.The metal inventory increased to R402m from R181m a year earlier. The new furnace should be in production from the second half of 2018.Northam’s operating profit for the year to end-June rose to R614m versus R383m in the previous year. Profit befo...
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