South African miner worth R80 billion sees big profit drop
South Africa’s Northam Platinum reported a 14.4% drop in annual profit on Friday, driven by a surge in mining costs, despite record sales volumes.
Northam Platinum is one of the nation’s largest platinum miners, with a market cap of around R80 billion.
South Africa is comfortably the largest platinum market in the world, accounting for around 80% of the total global supply.
Northam’s headline earnings per share stood at R3.81 in the year ended June 30, compared with year-ago R4.45.
The miner declared a final dividend of R2 per share, bringing the total for the year to R2.15.
Northam’s total refined platinum group metal sales exceeded a million ounces for the first time ever, but cash costs jumped 8.1%, eating into the company’s higher revenue.
(Reporting by Nelson Banya; Editing by Sumana Nandy and Kim Coghill)
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