World Markets

South Africa's Northam Platinum annual earnings more than double

South Africa's Northam Platinum on Friday posted a 150% rise in full-year earnings, fuelled by higher metals prices, increased sales revenue and a weaker rand currency.

Adds detail, quote

JOHANNESBURG, Aug 28 (Reuters) - South Africa's Northam Platinum NHMJ.J on Friday posted a 150% rise in full-year earnings, fuelled by higher metals prices, increased sales revenue and a weaker rand currency.

The miner reported normalised headline earnings per share (HEPS) of 676.3 cents ($0.39) for the full year ended June from 270.1 cents a year ago.

"Despite the challenges of the COVID-19 pandemic, this has been a record year for Northam," the company said in a statement.

Northam reported record sales revenue of 17.8 billion rand, a jump of 67.3% from a year earlier.

However, metal output dropped to 515,370 ounces during the year, from 519,954 ounces a year earlier, due to COVID-19 related disruptions.

Mining companies in South Africa, which were forced to temporally close in March, have been anxious about managing the COVID-19 crisis and preventing outbreaks at mine sites where workers are in close quarters and confined spaces.

Northam, which has said it would return value to shareholders through the purchase of Zambezi preference shares and did not declare an annual dividend, now holds 46.7% of the total issued number of Zambezi preference shares.

"We remain single-minded in our commitment to returning value to shareholders, and will continue to do so, despite the current turmoil," Chief Executive Officer Paul Dunne said.

Total group capital expenditure during the year declined to 2.4 billion rand as the company made cutbacks on planned growth projects to manage liquidity amid pandemic related uncertainty.

($1=16.9559 rand)

(Reporting by Tanisha Heiberg; Editing by Clarence Fernandez and Shailesh Kuber)

((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters Messaging: tanisha.heiberg.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest World Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More