Production at Northam Platinum's Zondereinde mine rose slightly to 302,474 oz over the last financial year.

The company's results for the year ending June 30th 2009 show production was three per cent higher than the figure recorded 12 months previously, while metal sales hit a new record of 333,159 oz.

However, increased production was not enough to offset greater costs and weaker platinum production, with sales revenues declining by 18 per cent and operating profits falling by 64 per cent.

Despite this, Northam chief executive officer Glyn Lewis believes developments centred on the Booysendal transaction and acquisition of the Booysendal platinum asset from Mvelaphanda Resources Limited mean the last financial year has been a positive one for the company.

"These developments signal the transformation of Northam as it begins to make progress in reducing the risk attached to a single operating asset, diversifying its income streams and starts to benefit from lower cost volume growth," he commented.

Mr Lewis said he expects production at the Zondereinde mine to increase further over the next 12 months, while costs have been tipped to stay in line with inflation.

It is thought that Booysendal could help to add around 350,000 oz to Northam's existing output.

Source:

Northam preliminary announcement of annual results (14/08/09)Northam Platinum FY profit down on costs, low prices (14/08/09)

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