Northam sets target date for dividend
PGM producer in aggressive growth and acquisition programme
Northam Platinum expects to be able to revisit dividend payments in two years after its growth projects start generating cash, bolstering a balance sheet that is not expected to have less than R500m until then. Northam is in the throes of an aggressive growth and acquisition programme while most of its peers are struggling. It expects output to nearly double in the next two years to about 850,000oz platinum group metals (PGMs). Northam is also branching out into recycling through the purchase of the assets of a liquidated American automotive catalyst recycling company for $10.7m, planning a steady gathering of high-quality contracts. Northam has spotted a strategic way to supply metal into the market as South African output continues to fall, with Northam CEO Paul Dunne forecasting production from the world’s single-largest source of PGMs to fall below 4-million ounces, the lowest in more than a decade. Northam has nearly R1bn in metal tied up for its smelting operation at its Zonde...
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