CAPE TOWN - Northam Platinum, South Africa’s second biggest platinum producer which has been on a buying spree, and said that it expected its losses for the year to June to expand to between 167.8 cents and 196c compared with a loss a share of 145.3c recorded in the last period.
The anticipated loss was due to higher Zambezi Platinum preference share dividends, which were consolidated in the group’s results for the period.
Despite the difficult economic circumstances during the reporting period, both of the group’s operating mines, Zondereinde and Booysendal, are expected to record an operating profit. The group’s total operating profit is estimated to be higher than the previous year, owing to improved operational performance.
Zambezi Platinum is the group’s black economic empowerment vehicle, set up in an R6.6 billion transaction three years ago to bring Northam’s black ownership levels to 31.4%.
The purchase of 112 million Northam shares by Zambezi was financed through the preference shares listed on the JSE.
Last month it announced a $10.7m (R142.77m) deal to acquire the platinum group metals recycling equipment in the US.