[miningmx.com] — NORTHAM Platinum, one of South Africa’s smaller platinum producers, on Monday reported a drop in first-half profit, hit by a strike and safety-related stoppages, and said the outlook was challenging.
Northam said headline earnings per share for the six month to the end of December fell to 21 cents, compared with 59.9c in the comparable period.
Northam was hit by a six-week strike over wages last year and the company has said the action cost it R380m in lost revenue.
Sales revenue for the six months fell to R1.61bn from R1.74bn in the comparable period.
Northam said it expects full-year output to be “significantly lower” compared with the previous year on the back of production stoppages, while operating costs are expected to increase at a higher rate than inflation.
The company declared an interim dividend of 5c/share, compared with 20c in the comparable period.
Shares in the company are up 9% so far this year, outperforming a 0.57% rise in Johannesburg’s Top 40 index of blue chips.
Bigger rivals Anglo Platinum and Impala Platinum reported a jump in full-year and first-half earnings respectively, boosted by stronger metal prices.
