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Higher costs and flat rand-metal prices weigh on Northam Platinum
Northam Platinum expects to report lower full-year earnings, reflecting the effect of mining cost inflation against flat rand-metal prices.The group said on Monday it expected headline earnings per share (HEPS) for the year to end-June to decline by 9.4% 19.4% to 358.6c 403.1c.
The group reported a 6.9% increase in sales revenue to R32.9bn, mainly due to a 5.9% increase in total metal sold to just more than 1-million ounces. The group sold more than 1-million ounces for the first time. However group unit cash cost per equivalent refined 4E ounce rose 8.1% to R25 728/4E ounce, reflecting the impact of mining cost inflation.
Operating profit declined 25.5% to R3.6bn, reflecting the effect of mining cost inflation against flat rand metal prices. Earnings before interest, taxes, depreciation and amortisation (ebitda) declined to R4.9bn from R6.3bn a year ago.
The group said the challenging market conditions experienced during most of the 2025 financial year, with largely depressed platinum group metal (PGM) prices, put revenue and profitability under pressure, as well as cash generation, despite a marginal improvement of 1% in total revenue per equivalent refined 4E ounce sold.
The groups equivalent refined metal produced from own operations increased 0.7% to 899,244oz, with marginal improvements at Zondereinde ahead of the commissioning of 3 shaft, despite the effect of power and water outages, and at Booysendal, due to productivity gains.
Production of chrome concentrate increased by 9% to 1.4-million tonnes due to improvements in UG2 tonnage throughput, feed grades and concentrator yields, particularly at Eland where yields have almost doubled during the year.
Mining tonnages and grades across the group are expected to improve over the coming two years as Northams growth and innovation projects near completion, which, along with an expected increase in mineable reserves, will provide important additional operational flexibility.
Total refined metal produced increased 5.2% to 937,942oz.
Northam said the global economic outlook remained uncertain despite recent improvements in metal prices due to the possibility of volatile metal markets and exchange rates.
Northams relative position in the industry, and the ability to retain operational flexibility and balance sheet strength, remain our key differentiators. The group remains committed to the strategic goal of growing safe and sustainable production down the sector cost curve, it said.
The group, which is valued at R86.6bn on the JSE, will release its annual results on August 29.