Northam Platinum forecasts big fall in annual profit
The platinum group metal miner’s refined production rose 13% to 809,775oz
14 August 2023 - 10:42
byNelson Banya
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Northam Platinum said on Monday that it expected its annual profit to decline as much as 12.5% despite increased production, due to higher costs and weaker metal prices.
Northam expects headline earnings per share (HEPS) — the most common profit measure in SA — of between R22.84 and R25.46 for the year ended June 30, down from R26.11 in 2022.
The platinum group metal (PGM) miner’s refined production increased 13% to 809,775oz.
The higher output and weaker rand helped push Northam's sales revenue up 16.1%.
However, cash costs per refined ounce increased 12.6%, while the dollar basket price for Northam’s four PGMs was down 20% compared to 2022.
Northam unsuccessfully tried to acquire Royal Bafokeng Platinum as it sought to add its smaller peer’s shallow, high-quality PGM assets to its portfolio, triggering a lengthy takeover battle eventually won by larger rival Impala Platinum.
Northam will release its annual results on August 25.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Northam Platinum forecasts big fall in annual profit
The platinum group metal miner’s refined production rose 13% to 809,775oz
Northam Platinum said on Monday that it expected its annual profit to decline as much as 12.5% despite increased production, due to higher costs and weaker metal prices.
Northam expects headline earnings per share (HEPS) — the most common profit measure in SA — of between R22.84 and R25.46 for the year ended June 30, down from R26.11 in 2022.
The platinum group metal (PGM) miner’s refined production increased 13% to 809,775oz.
The higher output and weaker rand helped push Northam's sales revenue up 16.1%.
However, cash costs per refined ounce increased 12.6%, while the dollar basket price for Northam’s four PGMs was down 20% compared to 2022.
Northam unsuccessfully tried to acquire Royal Bafokeng Platinum as it sought to add its smaller peer’s shallow, high-quality PGM assets to its portfolio, triggering a lengthy takeover battle eventually won by larger rival Impala Platinum.
Northam will release its annual results on August 25.
Reuters
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