Johannesburg, South Africa — 24 April 2013 – Northam Platinum “’ a JSE-listed independent mid-tier miner “’ has confirmed that drilling operations have resumed at its Zondereinde mine in the Mpumalanga province of South Africa.
A company statement issued here says this follows an agreement between management and the National Union of Mineworkers (NUM) yesterday.
A Memorandum of Understanding signed between the two parties provides for the payment of ‘return to work’ compensation comprising a once off ex gratia payment equivalent to 50% of their basic wages for the duration of the strike period, and R2 000.
Total production losses have amounted to 16 000oz 3PGE+Au with a current value of approximately R192 million.
Reporting last month on its performance in the second half of the 2012 calendar year, Northam underlined the sustained operational recovery at Zondereinde. It pointed out that a solid operational performance at Zondereinde had resulted in a 6.5% rise in the production of metals in concentrate to 157,183oz.
Metal sales were also higher at 177,655oz. The higher sales volumes, combined with a marginal uptick in the rand basket price (3.7% higher year on year at R35,385) contributed to the sales revenues of R2.2 billion “’ 12% higher year on year.
The overall improvement in performance resulted in an operating profit of R266 million, 20.6% higher year on year.
For the first time in Northam’s life it is carrying debt on the balance sheet, a function of the company’s expansion. The total debt facilities available to the company amount to R2.25 billion. At the end of the reporting period Northam’s net debt position was R631.1 million.
Source: Northam Platinum. For more information, click here.