Mine workers are seen at the Northam Platinum's Zondereinde mine in Limpopo province

S.Africa's Northam Platinum expects FY profits to rise by over 100%

JOHANNESBURG (Reuters) - South Africa's Northam Platinum said on Monday it expected its full-year profits to be over 100% higher than in 2018 after achieving record production and operating profit.

The miner said it anticipated its headline earnings per share (HEPS) - the main profit measure in South Africa - for the year until June 30 to stand between 14.8 cents and 16.8 cents, representing an increase of 107.4% to 108.4%.

In a stock exchange statement, the company said it expected to report a record operating profit of 2.4 billion rand ($156.47 million), which it attributed to efforts to contain costs and a higher basket price.

The group had also achieved record production from its own operations, up 7.4% on 2018, while sales volumes increased by 23.3%, it added.

Normalised headline earnings, which in Northam's case are adjusted for the impact of a black economic empowerment transaction, were expected to rise by over 220% to 1.3 billion rand, it said.

($1 = 15.3380 rand)

(Reporting by Emma Rumney; editing by David Evans)

2019-08-12 17:40:42

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