JOHANNESBURG - Platinum miner Northam said on Monday it produced 571,843 ounces of equivalent refined metal in the year ended June, a 4.5 percent increase over the same period last year.
Northam said this followed a strong operational performance from its Zondereinde mine which increased production by seven percent on a year-on-year basis. Output at the Booysendal mine was however adversely affected by a work stoppage in May, when it changed from a contract mining model to an owner mining model.
"Owing to the group’s mining capacity exceeding its processing capacity before and during the current financial period, there has been an inventory build-up," Northam said.
"The bulk of the excess inventory, which is estimated at 170,000 oz, is expected to be processed through the expanded smelter complex in F2019. The value of excess inventory at year-end amounted to R2.1 billion, with an estimated sales value of R2.5 billion."
The company said its growth, diversification and optimisation strategy was on track, with good progress being made in the development of the Booysendal South mine and at Zondereinde, the successful commissioning of the second 20MW furnace which was performing well.