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Northam swings to H1 earnings loss after 14-week strike

Northam swings to H1 earnings loss after 14-week strike

Photo by Bloomberg

6th February 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – JSE-listed Northam Platinum expects to swing to a loss per share and headline loss per share of between 15c and 25c for the six months ended December 31, from earnings and headline earnings per share of 35.6c and 36.3c respectively for the prior year’s comparable period.

The company said in a trading update on Thursday that the expected decline in earnings was largely attributable to industrial action, which started at the group’s Zondereinde mine, in Limpopo, on November 3 and ended on January 21.

The strike was expected to cost the group about R750-million in lost revenue for the 2014 financial year.

The group’s new Booysendal mine, in Mpumalanga, which started production in July last year, was still ramping up to full production and was not yet in a position to contribute positively to the group’s earnings.

Northam expected to release its interim results for the six months on or about February 21.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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