Northam Platinum: Interim loss expected after strike

Northam Platinum expected to post a loss when it reported results on February 21, the platinum producer, which endured an 11-week strike at its Zondereinde mine, said yesterday. It was likely to post a headline loss a share of between 15c and 25c for the six months to December. That compared with headline earnings a share of 36.3c a year earlier. Industrial action at its Zondereinde mine, its biggest operating asset, cost it R750 million in lost revenue. Last month the National Union of Mineworkers signed a two-year deal that included pay increases of 9.5 percent to end the walkout. Other platinum producers remain on strike after talks stalled with another union. Shares closed 0.07 percent lower at R40.50 yesterday. The firm raised R600m during the strike by selling shares as it sought to weather the stoppage and bolster finances for capital expenses at its Booysendal mine, which started production in July last year but was “not yet in a position to contribute positively to earnings”. – Bloomberg