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

South Africa's Northam Platinum FY profit soars three-fold on higher metal prices

JOHANNESBURG (Reuters) - South Africa's Northam Platinum said on Friday its annual profit surged three-fold, underpinned by a surge in metal prices, improved performance and lower costs.

Normalised headline earning per share (HEPS) for the year ended June 30 soared 227% to 270.1 cents, from 82.7 cents during a year-ago period.

HEPS is the main profit measure used in South Africa which strips out certain one-off items.

"Our operations are performing well and we expect to deliver further production growth in the new year. We will continue to focus on costs in order to grow our margins and maintain our relative cost position," said Chief Executive Paul Dunne in a statement.

Earnings before interest, tax, depreciation and amortization (EBITDA) surged to 2.6 billion rand ($170.84 million) from 1.1 billion rand posted in the previous year, the platinum miner said.

The group refined production rose by 7.4% to 519,954 ounces with increased contributions from its local Booysendal and Zondereinde operations.

Group capital expenditure came in at 2.9 billion rand for the finiancial year, the South African firm said, adding that it expects it to taper further next year. The miner's group capital expenditure had peaked at 3.8 billion rand last year.

($1 = 15.2192 rand)

(Reporting by Tanisha Heiberg, Editing by Sherry Jacob-Phillips)

2019-08-23 10:16:42

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