CORRECTED-UPDATE 1-S.Africa`s Northam Platinum half-year profit jumps 60%

Published: 2022-03-31 tag: precious metals and minerals

(Corrects earnings per share in second paragraph to 961.5 cents and 599.9 cents from 96.15 rand and 59.99 rand)

March 31 (Reuters) - South Africa’s Northam Platinum Holdings posted a 60% jump in half-year profit on Thursday, as firmer platinum group metal (PGM) prices helped offset a dip in production that was caused by work stoppages and COVID-19 absenteeism.

Northam’s headline earnings per share (HEPS) - the main profit measure for South African firms - came in at 961.5 South African cents ($0.6629) for the six months ended December 2021, compared with 599.9 cents a year earlier.

The company did not declare a dividend for the period, which it described as extremely challenging.

Refined metal output dipped by a marginal 0.4% due to two fatalities and COVID-related absences at its Zondereinde operations, while community unrest in the eastern Bushveld region led to production interruptions at Booysendal.

Lower production volumes and the impact of higher general mining inflation on costs added pressure, increasing the unit cash cost per equivalent refined platinum ounce by 18.6%.

During the period under review, Northam acquired a 34.65% shareholding in mid-tier PGM producer Royal Bafokeng Platinum , triggering a bidding war with bigger rival Impala Platinum Ltd, which holds 35.31% of RBPlat.

Northam Chief Executive Officer Paul Dunne said the company’s investment in RBPlat was meant to advance its strategic growth goals.

“It aligns perfectly with our growth, sustainability and diversification strategy, and the consequent introduction of RBH as a significant shareholder further strengthens our empowerment credentials,” Dunne said in a statement.

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