Northam Platinum posts profit dip as costs surge

South Africa’s Northam Platinum on Friday reported a 2.9% dip in full-year profit despite record production, citing lower metal prices and surging costs.

Northam’s headline earnings per share (HEPS) – the main profit measure in South Africa – was 26.11 rand ($1.56) in the year to June 30, down from 26.88 rand the previous year.

The company’s output rose 3.7% to a record 716,488 platinum group metal (PGM) ounces, up from 690,867 ounces previously, despite two mining-related fatalities, Covid-19 induced absences and community unrest that affected its Booysendal operations.

Northam, which is in a bidding war with larger rival Impala Platinum for the acquisition of mid-tier PGM miner Royal Bafokeng Platinum, did not declare a dividend, saying it was at a “critical juncture” on its growth path.