https://www.engineeringnews.co.za

Northam expects 60% to 70% improvement in earnings

8th August 2013

By: Idéle Esterhuizen

  

Font size: - +

JOHANNESBURG (miningweekly.com) – JSE-listed Northam Platinum on Thursday said it estimated earnings and headline earnings a share (Heps) for the year ended June 30 would increase by between 60% and 70%, owing to an improved average basket price and sales volumes.

Earnings a share of 81.2c and Heps a share of 80.9c were reported for the previous financial year.

The increase was projected despite production interruptions experienced during the reporting year.

The weighted unaudited average number of shares in issue during the year was 382.56-million, compared with 382.43-million shares in issue in the previous financial year.

The company also said that its Booysendal mine, on the border of Mpumalanga and Limpopo, was successfully commissioned by the end of June and commercial production started on July 1.

During the commissioning phase about 15 000 oz of platinum, palladium, rhodium and gold were produced and some 3 500 oz were sold, the proceeds of which were capitalised. The mine had a stockpile of about 400 000 t.  Northam estimated that Booysendal would achieve its design capacity during the second half of 2015.

Further, the smelter rebuild at the Zondereinde mine, in Limpopo, was progressing on schedule to reach completion by mid-September. A third party was toll-treating mine's production.

The estimated direct cost of the smelter rebuild was about R55-million, which would overlap the financial years ended June 2013 and June 2014. The estimate excluded working capital fluctuations attributable to the rebuild and the opportunity costs, including interest associated with toll treatment of production.

Further, Northam had successfully executed a R120-million tap issue in terms of its existing Domestic Medium Term Note (DMTN) Programme during July. Following the issue, Northam had a capital amount of R1.37-billion in issue in terms of the programme. All these notes mature on September, 4, 2015.

In addition to the debt funding from the DMTN Programme, Northam had a R1-billion revolving credit facility.

The miner’s operations remained vulnerable to, among others, factors particularly affecting the South African platinum mining industry, while the country’s general mining sector remained engaged in industry-wide wage negotiations.

Northam remained cautious in its production and other estimates, until clarity in the mining industry in general, and in respect of the company's operations specifically, had been achieved.

The reviewed preliminary results for the year ended June would be released next Thursday.

Edited by Creamer Media Reporter

Comments

Showroom

Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 
Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.068 0.115s - 156pq - 2rq
Subscribe Now