Northam credit rating upgraded
JOHANNESBURG (miningweekly.com) – South African platinum miner Northam Platinum’s short-term credit rating has been upgraded from A2 to A1- by credit ratings agency Global Credit Rating.
It also reaffirmed the company’s long-term rating of BBB+ with a stable outlook, the company said on Friday.
The upgrade was obtained despite the industry outlook remaining negative on account of depressed platinum group metal (PGM) prices and cost inflation, illustrating the benefits of the group’s liquid balance sheet and strong shareholder support.
The basis of the rating was formed on the impact of Northam’s fully funded R6.6-billion black economic-empowerment transaction, which raised its empowerment level to 35.4%, on a secured basis for ten years, and incorporated a cash injection of R4.6-billion, notably enhancing Northam’s liquidity and flexibility.
Further, increased production supported the uplift in PGM sales, which saw the group’s revenue increase to over R6-billion for the first time in the 2015 financial year.
Higher mine output at Booysendal and general cost rigour also underpinned a recovery in the group’s operating profit margin, while the mine increased the group’s operational stability and reduced the concentration of risk.
The mine was set to reach steady production in the second half of the year.
A reduction in capital expenditure during the year, both deliberate and occasioned by the virtual completion of Booysendal North, Phase 1, also contributed to the positive rating, while Northam’s redemption of R1.4-billion in three‑year domestic medium-term notes reduced its debt to negligible levels.
A three-year wage agreement recently concluded with the National Union of Mineworkers at Northam’s Zondereinde mine also added to the upgrade.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation















