Northam Platinum operations under pressure

by Ina King (Potgieter)

This is a result of the global economic outlook and low US dollar metal prices which affect Northam Platinum as an exporter of platinum group metals (PGMs) to global markets. In its half year results for the period ended 31 December 2015, the company has reported that it had undertaken initiatives to improve efficiency and to reduce costs. The company recorded a loss of R272.96 million for the period.

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Revenue generated from sales increased by 5.4% to R3.2 billion from R3.0 billion in the first half of the year, reflecting the group's increasing sales volumes. Sales volumes were 19.3% higher, at 248 075 oz on the lower basket price of R415 196/kg, which reflects the significant decline in the US dollar basket price. During the period, concentrate production from Booysendal has been sold to Zondereinde at 88% of the market related price.

Despite the adverse market conditions, Northam believes that its strong balance sheet and prudent financial controls will enable the company to continue with strategic project development which will position the company to benefit from improving market conditions in the future.

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