Northam adds R1bn to debt facilities as prepares ground for operational growth

NORTHAM Platinum increased its available bank funding facilities by R1bn to R5bn to ensure its balance sheet was prepared for an increase in “scope of operations”, said the firm’s CEO, Paul Dunne.

The increase in bank funding comprises an additional R500m in the existing revolving credit facility (RCF) to R4bn and an R500m increase in the existing general banking (GBF) facility to R1bn, the company said.

“Whilst the RCF and GBF are currently fully undrawn, Northam has reviewed and increased its credit facilities to ensure these remain in step with the significant increase in the
company’s scope of operations,” said Dunne. “Northam is pleased to have secured additional facilities on the same commercial terms”.

Northam produced 352,741 ounces of 4E platinum group metals (PGMs) in the six months ended December, a 15% year-on-year increase, and has a medium-term target of reaching annual production of about one million ounces of PGMs.

However, Dunne said in response to an analyst question at the firm’s interim presentation in March that Northam’s three mines/projects: Zondereinde, Booysendal (and Booysendal South), and Eland Platinum, were replete with optionality and could support yet further production growth beyond a million oz.

“We will double production by the middle of the decade … We are also considering our next phase of growth,” he said, adding that: “I think we can look forward to improved returns”.