Northam seeks funds to acquire mines

Published Aug 15, 2014

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NORTHAM Platinum wanted to snap up platinum assets in a shake-up of the country’s mining sector, the company said yesterday as it posted a full-year loss due to a protracted strike at its main operations.

The mid-tier producer said it would use its positive cash position and call on shareholders for funds to enable it to buy assets.

“We believe we have good support from our institutional shareholders. If we have got the government right behind us – and we work shoulder to shoulder – we could be able to raise the money,” chief executive Paul Dunne said.

It said it had reviewed its strategy in anticipation of opportunities arising in the sector.

Anglo American Platinum said last month that it planned to sell a slate of mines after a five-month strike.

Northam said it made a headline loss a share of 2.2c for the year to June, against earnings of R1.365 a year earlier. Workers downed tools at its Zondereinde mine for 11 weeks starting in November last year.

Northam said it planned to expand Zondereinde, ramp up production at Booysendal and grow its refining operations.

The shares fell 1 percent to R45.50 yesterday. – Reuters

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