Northam Platinum posted a 12% rise in full-year earnings on high metal prices and despite weaker output, forecast on Monday rising output and prices in the current year.
Northam, a unit of Mvelaphanda Resources, operates the world’s deepest platinum mine, and is poised to fully acquire a huge platinum deposit, which it plans to develop and launch itself into the big league of platinum players.
”With the softer platinum price, there are already some signs of a modest increase in demand from jewellery manufacturers,” Northam chief executive Glyn Lewis said.
”For the automobile sector, which we believe will continue to be the principal driver of PGM [platinum group metal] prices, emissions legislation continues to tighten. We believe that these factors, combined with the prospect of higher vehicle sales … will continue to support demand, and we are confident that the outlook for fundamental demand for PGMs remains sound.”
Four out of five ounces of the metal, which is mainly used in autocatalysts, is produced in South Africa.
Spot platinum dropped to $1 394,00/1 414,50 an ounce from $1 425,50/1 445,50 an ounce late in New York, but was off an 11-month low of about $1 296 hit last week.
Northam posted a 12% jump in full-year headline earnings per share to R6,27 for the year to end-June, and said the dip in production had been offset by higher prices. – Reuters