Northam Platinum issued a strong statement of confidence on Monday (17th November) that it will continue to meet its operating and capital requirements.

Some miners have been hit badly by recent falls in platinum which have seen the price plunge from $2,000 per oz in July to the current trading level of around $815 per oz.

However, the company announced that production increased to 113,910 oz of metal in concentrate during the four months to 31st October, a 14.3 per cent rise on a year-on-year basis.

In addition, it realised an average PGM-plus-gold basket price of $1,391 per oz (up 24.3 per cent), while it made a profit after tax of R364.8 million for the period, up from R290.5 million last year.

Addressing the results in a statement, Northam explained that it was positive about its future prospects, barring a significant rand appreciation against the dollar or further falls in PGM prices.

It read: "Provided there is no significant increase in the value of the rand against the US dollar from these levels, and spot metal prices do not decline further, the company is confident that it will continue to cover its cash costs and capital expenditure."

Northam and its majority shareholder Mvelaphanda Resources are currently the subject of a takeover bid by Impala Platinum, the world's second largest producer of the precious metal.

Source:
http://www.miningweekly.com/article.php?a_id=147724