JSE-listed Northam Platinum on Monday reported a 12,6% rise in post-tax profits to R1,5-billion for the year ended June 30, after higher metal prices offset lower production.

Earnings for the year were 12% up to R6,27 a share, after the company lifted revenue by 3,9% to R3,89-billion.

During the year, Northam Platinum produced 9,7% less platinum-group metals, or 292 989 oz, while sales were one-fifth lower than the previous year at 276 059 oz.

The company declared a final dividend of R1,85 a share.

Northam blamed the drop in production on the effects of safety-related stoppages, operational difficulties arising from intermittent power supply and industrial action.

The lower volumes, along with inflationary cost pressure, had a negative impact on unit cash costs, which, at R175 197/kg, were 29,5% higher year-on-year.

BOOYSENDAL PROJECT

Northam said that a prefeasibility study had been completed on the Booysendal project, in which it acquired a 50% stake earlier this year through a deal with Anglo Platinum and Mvelaphanda Resources, the company that now owns 63% of Northam.

“We are pleased with the progress made by our enormously experienced project team and are very encouraged by the outcomes of the prefeasibility review,” said Northam CE Glyn Lewis.

A range of production scenarios, 11 in all, ranging in scale from 120 000 t/m to 480 000 t/m have been considered for the project.

“Although these are initial findings, results suggest a modular production build-up offering flexibility and ameliorating potential risks relating to issues such as power supply and water,” said Lewis.

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