Northam to report record profits on best-ever production, soaring PMG pricing
Numbers underpinned by a solid operating performance and a higher metal price
Northam expects to report record operating profit for the second half of 2019 of between R2.9bn and R3.1bn, tripling from R1bn reported in the first half of 2019.
In a trading statement released on Monday, the platinum producer said the record profits for the six months to end-December 2019 were underpinned by a solid operating performance at all its operations and a higher platinum group metal (PMG) basket price received.
The group achieved record production from “own operations” which was 19.6% higher than in the first half of 2019. Sales volumes increased by 11.9%. Revenue is expected to increase from R5bn to between R7.7bn and R7.9bn.
The group said it expects normalised headline earnings (defined as its headline earnings adjusted for the impact of Northam’s BEE transaction) to be in excess of R1.8bn, compared with R553.3m in the first half of 2019.