NORTHAM Platinum struggled in the year to end-June pushing up revenues 6.9% to R32.9bn (previous financial year R30.8bn) but recording a 17% drop in taxed profit to R1.48bn (R1.79n) because of grim market conditions.
Operating profit dropped to R3.6bn (R4.8bn) as the operating profit margin pulled back to 10,9% from the previous year’s level of 15.7%
That was despite a steady operating performance in which Northam maintained refined metal production from its own operations at 899,244oz of platinum group metals (pgm) (892,876oz) and pushed up total metal sold by 5.9% to just over 1m oz (950,251oz).
This marked the first time in Northam’s history that pgm sales volumes had exceeded the one-million-ounce mark.
For 2026 Northam is guiding same again total pgm sales of around 1moz although it will push up the contribution of equivalent refined metal from its own production to between 910,000oz and 930,000oz.
As indicated in the trading statement issued earlier in August, CEO Paul Dunne remains cautious on the overall state of the platinum business and his outlook stands in contrast to the more optimistic tone struck by Impala Platinum CEO Nico Muller when he presented Impala’s 2025 financial results yesterday.
Dunne commented, “recent price appreciation is offering some relief to the pgm sector. However, it is still not yet at levels that will support sustainable mining across the industry and certainly not the much-needed development of new operations.”
He added that “the platinum market has tightened and our view remains that the factors underlying these are fundamental and unlikely to correct in the medium-term.
“Existing demand for these special metals remains and new demands are burgeoning such as for ruthenium in data storage and nylon production in particular.”
But he cautioned, “despite positive market signalling, global uncertainty continues and we thereby remain cautious and will maintain our focus on safe production and efficient mining at the right cost enabled by our strong liquidity.”
