NORTHAM Platinum expects interim earnings to surge following stronger production and sales performance during the six months to December, said Business Day in a report earlier this week.
The newspaper said Northam would report an increase in headline earnings per share by between 1,518.5c and 1,529.5c from just 61.1c a year earlier, driven by a 53.1% rise in the rand 4E basket price and higher metal volumes.
Sales revenue jumped 60% to R23.3bn whilst operating profit soared 439% to R5.8bn, said Business Day. Earnings before interest, taxation, depreciation and amortisation rose to R7.5bn from R1.8bn previously, it added.
Metal sales increased 13.7% to 519,192 oz whilst refined platinum group metal production from own operations grew 3.7% to 467,818 oz. Chrome concentrate output climbed 14.8% to 822,759 tonnes.
The group reversed a R2.5bn impairment charge at its Eland mine following improved long-term price forecasts. Concentrate production at Eland, acquired from Glencore in 2017 for R175m, rose 19.6% to 44,842 oz.
Northam is advancing renewable energy projects, with an 80MW solar facility at Zondereinde nearing completion and a 20MW solar plant with battery storage planned for Eland. Capital expenditure for the remainder of the financial year is estimated at R3.8bn.
Shares in Northam, which has a market capitalisation of R143bn, have surged 200% over the past year. First-half results will be released on 27 February.
