Northam Platinum records record results
Underpinned by strong operating performance
Northam Platinum today released its results for the year ended 30 June 2006.
- Record production of 362 000 oz precious metals in concentrate
- Sales revenues 54% higher at R2.4 bn
- Unit cash costs 0.5% lower at R109 677/kg
- Profit attributable to shareholders higher by 183% to R703 million
- Total dividend payments for the year at 280 cps
Metal sales at 362 821 oz, 14% up on the comparable reporting period, contributed to an excellent year for Northam. This, combined with the effect of a 37% increase year on year in the average metal prices received, contributed to sales revenue of R2.4 bn, some 54% higher than the previous reporting period.
At the operating level steady progress has continued, with a 25% increase in development metres, the successful negotiation through the 20 line fissure on four levels, capital development to access 1 level, and the deepening project to 14 level. Overall tonnages milled were 7% higher year on year reaching more than 2.3 million tonnes. Good grade control was maintained, with an average combined head grade of 5.5 g/t recorded over the year, resulting in Northam’s best ever production levels of 361 399 oz.
Commenting on costs, chief executive Glyn Lewis said that the increased volumes had had a beneficial impact on containing operating costs: “Unit cash costs were 0.5% lower year on year; at the rand per tonne level good cost control is also evidenced by an increase of only 3.3%.”
Northam continues to be highly cash generative, with healthy cash reserves of R831 million at the end of the reporting period.
Profit attributable to shareholders climbed sharply to R703 million, up 183% year on year. In line with Northam’s track record of returning cash to shareholders, a final dividend of 165 cps has been declared, bringing the total dividend for the year to 280 cps.
Russell & Associates
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