HomeNewsNortham earnings will more than halve

Northam earnings will more than halve

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Johannesburg, South Africa — MININGREVIEW.COM — 22 December 2010 – Northam Platinum “’ one of South Africa’s smaller platinum producers “’ has revealed that its earnings for the first half of the current financial year will more than halve, hit by a strike and safety-related stoppages.

In a statement issued here, Northam said headline earnings for the six months to 31December 2010 would likely total between 15 and 25 cents per share, compared with 59.9 cents in the same period a year earlier.

“The anticipated decline in earnings stems primarily from lower sales revenues due to the strike and production interruptions in the beginning of the financial year stemming from safety-related stoppages,” the statement added.

The company was hit by a six-week strike over wages earlier this year and has revealed that the action cost it R380 million in lost revenue.

Shares in Northam were down 0.46% at R45.79 by 1443 GMT yesterday, compared with a 0.85% rise in Johannesburg’s Top-40 blue chip index.

South Africa’s 2011 platinum supply may rise a little next year, after falling slightly in 2010, a leading refiner said. This year, South Africa’s platinum output is expected to fall by 1% from last year to 4.59 million ounces, Johnson Matthey said in its latest platinum review.