Northam Platinum Holdings expects a 44.7% - 54.7% decline in headline earnings a share for the six months to December 31, as it faces low metal prices, mining and energy cost inflation, and the potential for further Eskom load curtailment events.

Notwithstanding the lower earnings, the group said in a trading statement Wednesday there had been a solid production performance during the six-month period. Headline earnings a share were expected to fall to between 55 cents and 67.1 cents a share from 121.4 cents at the half-year stage last year.

There had been a 3.1% decrease in sales revenue to R14.5 billion, primarily attributable to a 3.3% decline in the 4E basket price to R23 457/oz. There was a 7.5% increase in chrome concentrate sales to 716 622 tons.

Operating profit fell 55.2% to R1.1bn.

A 7.7% increase in group unit cash costs per equivalent refined 4E ounce to R25 381/oz reflected the impact of mining inflation and lower refined metal volumes.

There was a 3.7% increase in equivalent refined metal from own operations to 451 213 oz 4E, following a strong performance from all mines, including a 15.1% increase in 4E metal in concentrate produced from own operations and surface sources at Eland to 37 488 oz 4E.

Refined metal produced fell by 2.5% to 425 151 oz 4E due to the planned rebuild of furnace 2. There was R12.3bn in available banking facilities.

Mining tonnages and grades were expected to improve over the coming two years upon growth and innovation projects reaching completion and achieving their planned targets, the group said.

Metal inventory on hand increased to 529 825 oz 4E, as a result of planned furnace rebuild, with a rand carrying value of R9.2bn and a sales value of R15.1bn when applying the 4E price and exchange rate as at the end of December 2024.

Northam's share price closed 1.72% to R119.2 cents on the JSE Wednesday, slightly higher than the R108.70 that it traded at a year ago

BUSINESS REPORT