Northam Platinum reports 55% increase in HY operating profit, touts 'solid' performance from all operations
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(Kitco News) - Northam Platinum, a major South African producer of platinum group metals, announced today that for the six months ended 31 December 2022 (HY2022), the group's equivalent refined metal from own operations increased by 11.9% to 393,309 oz 4E (HY2021: 351,359 oz 4E).
The company said that a key feature during HY2022 has been the strong production performance from both the Zondereinde and Booysendal mines.
Group production of chrome concentrate increased by 17.4% to 505,841 tonnes in HY2022 (HY2021: 430,697 tonnes), on the back of improvements at all operations.
The company's sales revenue for the period amounted to R20.1 billion (~$1.09 billion), an increase of 44.9% over the comparable period. Northam explained that the increase in sales revenue was the combined result of an increase in 4E sales volumes of 33.9% to 414,170 oz 4E and a higher 4E ZAR basket price.
Earnings before interest, taxation, depreciation and amortization (EBITDA) increased by 54.5% to R10.0 billion (~$542 million), while operating profit increased by 55.0% to R9.1 billion (~$493 million).
Northam said it expects to report a 60.4% -70.4% increase in basic earnings per share (1,548.0 – 1,644.5 cents per share) and a 62.3% -72.3% increase in headline earnings per share (1,560.4 – 1,656.6 cents per share) for the six months ended 31 December 2022 year-over-year, underpinned by a solid performance from all operations.
"The group has delivered a strong set of results whilst achieving significant strategic advancements, including continued progress in respect of the group's organic growth projects, which remain on track; strengthening our balance sheet; and positioning Northam to pursue a possible business combination with RBPlat, by way of the offer," the company said in a press release.
South Africa's Northam Platinum is a primary integrated producer of platinum group metals. All operating mines and recycling operations are wholly owned. The company's target is to produce 1 million oz 4E annually.
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