Northam Platinum has released record production and financial results, but has warned that earnings could drop during the financial year.

The firm said that record precious metal production of 361,599oz during the 12 months to June 30th, a rise of 11 per cent, helped it boost sales revenue by 53.5 per cent to R3.4 billion.

Operating profits also trebled, rising to just above 300 cents a share. The firm will offer shareholders a dividend of 280 cents a share.

The firm made a net income of R703 million, 183 per cent higher than previous years.

However, the company predicted a "modest drop" in earnings for the current financial year, with an expected drop in production.

Derek Wolstenholme, Northam Platinum's corporate finance manager, told Bloomberg: "We're expecting production to be slightly lower because of difficult ground conditions."

Despite high platinum prices, profits at the firm will be hit by both lower production and the increase cost of working South Africa's deepest platinum mine. In addition, the firm also faces union negotiations which may prove to be of concern to investors, Mineweb reported.


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