NORTHAM Platinum struck a cautious note on recovering platinum group metal markets saying that the outlook remained uncertain and volatile.
Commenting in the group’s year-end production report, Northam CEO Paul Dunne said: “Despite recent improvements in metal prices being realised, the global economic outlook remains uncertain, with potentially volatile metal markets and exchange rates”.
He said Northam remained “internally focused”.
The platinum price has surged nearly 61% year-to-date pulling palladium with it, up 50% over the same period. Both metals are forecast to run a supply deficit this year. For platinum this deficit will be 966,000 ounces, according to the World Platinum Investment Council’s latest forecast.
However, UK-based consultancy SFA (Oxford) said recently that PGM price improvements were driven by falling supply, but demand remains variable. It also thinks there are sufficient above-ground stocks to cap a sustained recovery.
Northam reported a 49.7% decline in interim headline earnings in March totalling 61.1c/share (2024: 121.4c/share and dividend of R1/share). It declared a 15 South African cents per share dividend despite a tripling in net debt to R6.1bn.
Following the second half’s production, Northam reported a 5.2% improvement in total refined metal of 937,942 ounces (4E) for its 2025 financial year compared to 2024. Sales increased 3.8% to 933,210 oz.
Total metal sold exceeded one million ounces for the first time in the company’s history. The milestone is notable for Dunne whom many derided for saying ten years ago Northam would achieve a massive turnaround in production.
The only major drawback for Northam in terms of production for the year under review was underperformance at Eland Platinum. At 75,103 oz, PGM concentrate was below guidance at the mine following two fatal accidents in the previous (third) quarter. Northam said safety levels had improved.
Chrome production from Northam was 1.44 million oz, a 9% year-on-year improvement but below group guidance.
