Northam Platinum (NPH) H1 2025 earnings summary

Executive summary

• Record production increased 3.7% to 451,213 oz 4E, with strong output at Eland and steady-state at Booysendal, despite challenging market and operational conditions.

• Revenue declined 3.1% to R14.5bn, with operating profit down 55.2% to R1.1bn and EBITDA down 44.4% to R1.8bn, reflecting lower PGM prices and cost inflation.

• Interim dividend of 15.0 cents per share declared, in line with policy of 25% of headline earnings; capex remained steady at R2.4bn.

• Emphasis on safe, efficient, and sustainable mining, with record low lost-time injury frequency rate, though two fatalities occurred at Eland.

• Chrome concentrate production increased 7.5% to 716,622 tonnes, driven by improved throughput and yields, especially at Eland.

Financial highlights

• Sales revenue decreased 3.1% year-over-year to R14.5bn, mainly due to softer metal prices, lower sales volumes, and a stronger ZAR/USD exchange rate.

• Operating profit dropped to R1.1bn, with an operating margin of 7.5% (down from 16.1%); EBITDA margin fell to 12.1%.

• Basic EPS was 61.5 cents; headline EPS 61.1 cents.

• Net debt increased to R6.1bn, with a net debt/EBITDA ratio of 1.26; cash and cash equivalents at R4.0bn; undrawn banking facilities of R12.3bn.

• Cash flows from operating activities were R419.2m after R2.4bn capex and dividend payments.

Outlook and guidance

• Full-year equivalent refined metal sales forecast: 980,000–1,020,000 oz 4E; production guidance unchanged.

• Group capex guidance at R4.6bn; unit cash cost per 4E oz expected at R25,500–R28,000 depending on operation.

• Chrome sales expected at 1.45–1.5 million tonnes for the year.

• Inventory expected to reduce to 480,000–500,000 4E ounces by year-end, with further destocking planned.

• Focus remains on operational excellence, cost control, and cash preservation amid volatile PGM prices and exchange rates.