Northam Platinum Ltd. expects a record operating profit of 2.4 billion South African rand for its fiscal year ended June 30, a 192.7% increase year over year, due to well-contained costs, a higher platinum group metals basket price, and strong performances at its Zondereinde and Booysendal operations.
The company estimated normalized headline earnings exceeding 1.3 billion rand for the financial year, increasing by more than 220% year over year from 421.5 million rand. Normalized headline earnings were adjusted for the impact of a black economic empowerment transaction, the company said in an Aug. 12 trading statement.
Headline EPS was estimated at 14.8 South African cents to 16.8 cents, with results planned to be released on or around Aug. 23.
Northam Platinum said it produced 519,954 ounces of 4E PGM, comprising platinum, palladium, rhodium and gold, from its own operations during the fiscal year, increasing 7.4% from 2018, while sales volumes increased 23% to 583,069 ounces.
For the first half of the fiscal year, the company reported a 41.1% increase in 4E PGM production year over year and a 40.5% jump in sales to 294,823 ounces. Contributing factors included a 4.2% rise in the PGM basket price and a weaker rand against the U.S. dollar.