Northam Platinum’s full-year profit was down on weaker platinum prices as well as steeper costs, the company said on Friday.
Releasing its results for the year ended June 30 2009, the miner said its profit had fallen 58% to R630-million and its headline earnings per share had dropped 73% from 627 cents per share to 169 cents per share.
Over the reporting year, the average US dollar price received for Northam’s basket of metals decreased by 42% to $1001 per ounce, the company said.
This decline was, however, partly offset by the 18% decline in the value of the rand against the US dollar over the year, which resulted in the average rand basket price over the year being 31% lower at R280 609 per kilogram.
Northam CEO Glyn Lewis said the company’s cost performance was ”satisfactory”, with the increase in costs per kilogram produced held to 14% at R199 680 per kilogram.
”Against the background of increases in steel, chemicals and the 25% higher cost of power and water, this was a very respectable outcome,” he added.
Looking ahead, he said that in the absence of any unforeseen production interruptions, metal production at the Northam mine in the year ahead was likely to be marginally higher than that achieved in the past year.
”Management at Northam continues to work closely with Eskom to ensure optimal operations in line with Eskom’s guidelines,” Lewis added.
While unit cash operating costs were expected to increase in line with inflation, earnings would be determined largely by the average rand basket price received in 2010, he said. — Sapa