A weaker rand exchange rate helped lift Northam Platinum’s full-year earnings by 69 percent, the mining firm said yesterday, although the outlook remained uncertain and it declined to pay a dividend.
Headline earnings a share for the 12 months to June jumped to R1.365 from 80.9c a year earlier.
Sales revenue rose 20 percent, even as the production of metals in concentrate remained flat at 9 million kilograms following a strike.
Northam said its financial performance would depend largely on international metal prices and a peaceful and productive labour force.
Local platinum producers, including industry leader Anglo American Platinum, are struggling to recover after extended wildcat strikes brought their operations to a halt late last year.
More than 50 people were killed in labour unrest on the platinum belt last year, including 34 shot by police at Lonmin’s Marikana mine on August 16.
Northam shares have gained almost 6 percent this year, beating the JSE’s platinum index, which has fallen about 19 percent.
Yesterday the share price closed 1.44 percent lower at R39.67. – Reuters