Northam pays R2.4bn dividend, highlights business risk ahead

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The current platinum group metals (PGMs) basket price puts 70% of the South African production base at a loss when taking into account replacement capital requirements on top of the working costs. A final gross cash dividend of R2.4-billion from income reserves has been declared.

JOHANNESBURG – The current platinum group metals basket price puts 70% of the South African production base at a loss when taking into account replacement capital requirements on top of the working costs.“The industry at this price is in a very substantial squeeze and pretty precarious position should prices not recover,” Northam CEONortham will be conservative in this market in terms of what it will do from the current position.

“This will potentially lead to a dramatic contraction in mine supply should current prices prevail,” said Dunne during the presentation covered byIf palladium prices remain as they are, the Johannesburg Stock Exchange-listed PGM mining company expects significant pressure on supply and the potential for not insubstantial decline from 2025.

If this is not the case, the world’s primary PGMs production base will rapidly shrink,” Dunne forecast. “This depressed price environment may last for some time in our opinion and we will act accordingly, maintaining focus on operational performance and productivity, cost control and prudent management of the balance sheet and liquidity position.

Sales will be higher than production in the range of 950 000 oz to 990 000 oz including material from third parties.

 

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