In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies are required to publish a trading statement as soon as they are satisfied, with a reasonable degree of certainty, that the financial results for the current reporting period will differ by at least 20% from the financial results of the previous corresponding period.
Improvement in normalised headline earnings
The group expects normalised headline earnings, defined as the group’s headline earnings adjusted for the impact of Northam’s black economic empowerment transaction, which constitutes the group’s main measure of performance, to be in excess of R550.0 million (H1 F2018: R189.1 million), representing an increase in excess of 190%.
Improvement in loss and headline loss per share
Shareholders are advised that the loss per share for the six months ended 31 December 2018 is expected to be between 17.8 cents and 18.6 cents per share and headline loss per share is expected to be between 18.6 cents and 19.4 cents per share, compared with the loss per share of 81.1 cents and headline loss per share of 80.0 cents reported in the comparative prior period (“H1 F2018”). The aforementioned ranges expressed in percentage terms, are, in respect of the loss per share, a decrease of between 77% and 78% and, in respect of the headline loss per share, a decrease of between 76% and 77%.
The anticipated loss and headline loss per share is attributable to Zambezi Platinum (RF) Limited’s non-cash preference share dividends, which are consolidated into Northam’s results in terms of International Financial Reporting Standards.
The number of shares in issue remains unchanged at 509 781 212 (H1 F2018: 509 781 212), which the group uses to determine the normalised headline earnings per share. The weighted average number of shares in issue for the period ended 31 December 2018 also remains unchanged at 349 875 759 (H1 F2018: 349 875 759 shares), which the group uses to calculate the loss and headline loss per share.
The expected improvement in earnings is primarily driven by a 40.5% increase in 4E metal sales volumes, which is underpinned by Northam’s growth and diversification strategy. The US Dollar basket price improved by 4.2% to USD1 013 per 4E oz (H1 F2018: USD972 per 4E oz) and the average ZAR/USD exchange rate weakened 5.7% to ZAR14.19/USD (H1 F2018: ZAR13.43/USD).
The financial information contained in this announcement has not been reviewed or reported on by Northam’s auditors. The condensed reviewed interim results for the period ended 31 December 2018 are expected to be published on or about 22 February 2019.
7 February 2019
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