Northam secures Global Credit Rating upgrade
JOHANNESBURG (miningweekly.com) – Credit rating agency Global Credit Rating has upgraded platinum miner Northam Platinum’s long-term credit rating to A-(ZA) from BBB+(ZA) and reaffirmed Northam’s short-term credit rating at A1-(ZA), with a stable outlook.
“Northam’s credit rating upgrade was achieved despite the current and ongoing challenges being faced by the mining industry, further illustrating the group’s resilience and ability to maintain a strong capital base and liquidity position,” the platinum miner said in an update to shareholders on Friday.
Several considerations led to the upgrade, including the easing of Northam’s corporate risk profile as the company’s second operational mine, Booysendal North, had maintained steady-state production for two years; additional sources of production expected from Northam’s recent transactions; a strong improvement in operating cash flows; and a significant increase in operating profit as a result of improved metal prices, lower production costs, general economies of scale and the implementation of stringent cost controls.
The ratings agency also based its upgrade on the realisation of the projected benefits of Northam’s fully-funded R6.6-billion black economic empowerment transaction through the acquisition of quality platinum group metal assets at favourable prices.
“A further positive rating migration is predicted on the development of Booysendal South and recently acquired orebodies, which should see a continued widening of the group’s operating margins and sustainability of cash flows and credit protection metrics,” the company concluded.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ALBIS FLANGES — founded in 1965 — is a petro-chemical approved manufacturer of flanges and fittings in most grades of steel, listed with Sasol,...
VISIT SHOWROOM
Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...
VISIT SHOWROOM
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
