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Northam Platinum clocks record revenues, weighs stock re-purchase

Kitco News

Northam Platinum said today its full-year financial results showed a record operating profit of $160 million (R2.4 billion), and normalized headline earnings up 226.7% to $92 million (R1.4 billion).

The integrated platinum group metal producer, which is listed on the JSE, said production grew by 7.4% to 519,954 oz. due to increased contributions from both Booysendal and Zondereinde operations.

Cost were up 22.4% due to labor cost increases and new equipment coming on-line. The company said its capital investment program should start to taper.

Northam CEO Paul Dunne said the company can consider stock buy backs.

"Now that we're over the peak funding requirements for our project pipeline, we’re turning our attention to returning value to shareholders, either by repurchasing our own ordinary shares or the Zambezi preference shares or a combination of the two," said Dunne in a news release. "Any free cash over and above our targeted net debt level will be used for this purpose."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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