Northam’s results underpinned by a solid production and effective cost control

Northam Holdings’ financial results for the six-months ended 31 December 2023 (“H1 F2024”) are underpinned by a solid production performance and effective cost control at all operations within the group. Notwithstanding this, Northam Holdings expects to report a decrease in earnings per share for H1 F2024 compared to the previous six-months ended 31 December 2022 (“H1 F2023”), largely because of the significant decrease in commodity prices together with a loss of R799.7 million on the disposal of the Impala Platinum Holdings Limited (“Implats”) ordinary shares (“Implats Shares”) (JSE share code: IMP) received as part of the disposal consideration following acceptance of the mandatory offer made by Implats to shareholders of Royal Bafokeng Platinum Limited (“RBPlat”), (“Implats Mandatory Offer”).

In its Trading Statement and Trading Update for the six-months ended 31 December 2023 reports the following key metrics:

• 10.6% increase in equivalent refined 4E ounce (“oz”) metal from own operations to 434 977 oz 4E (H1 F2023: 393 309 oz 4E), following a solid performance from all mines across the group, including a 14.9% increase in 4E concentrate produced by Booysendal and a 51.8% increase in 4E concentrate produced from own operations and surface sources at Eland
• 25.5% decrease in sales revenue to R15.0 billion (H1 F2023: R20.1 billion), despite a 10.4% increase in sales volumes to 457 357 oz 4E (H1 F2023: 414 170 oz 4E), primarily attributable to a 42.3% decrease in the 4E ZAR basket price to R24 269/oz 4E (H1 F2023: R42 046/oz 4E)
• 6.7% increase in group unit cash cost per equivalent refined 4E oz
• 28.1% cash profit margin per equivalent refined 4E oz
• 73.3% decrease in gross profit to R2.4 billion
• 68.1% decrease in EBITDA to R3.2 billion
• 86.4% ‘ 96.4% expected decrease in basic earnings per share
• 87.5% ‘ 97.5% expected decrease in headline earnings per share
• Net debt as at 31 December 2023 improved to R2.4 billion with a rolling 12-month net debt to EBITDA ratio of 0.24, and cash and cash equivalents of R11.8 billion, with additional available undrawn facilities of R11.0 billion