Northam Platinum (NPH) H2 2024 earnings summary

Executive summary

• Achieved record production and sales volumes, with refined metal production up 10.3% to 892,876 oz 4E and sales volumes up 7.3% to 950,251 oz 4E, despite weaker metal prices.

• Revenue declined 22.2% to ZAR 30.8 billion, mainly due to a 38.7% drop in average 4E basket price, despite higher volumes.

• Maintained strong operational focus, with all three mines performing well and significant progress on key projects, including Eland ramp-up and Zondereinde Three Shaft.

• Declared a final dividend of ZAR 0.70 per share, totaling ZAR 1.70 for the year.

• Shifted strategic focus from mining to processing, expanding processing facilities to maximize economic benefit.

Financial highlights

• Gross profit was ZAR 4.8 billion at a margin of 15.7%, with EBITDA at ZAR 6.3 billion (margin 20.4%).

• Net debt reduced to ZAR 3.1 billion, with a net debt to EBITDA ratio of 0.5 and undrawn banking facilities of ZAR 12.3 billion.

• Basic EPS and HEPS were ZAR 4.61 and ZAR 4.45, respectively, impacted by a loss on sale of Impala shares.

• Cash flows from operating activities totaled ZAR 3.5 billion; ZAR 4.7 billion spent on capital expenditure.

• R2.8 billion returned to shareholders via dividends.

Outlook and guidance

• PGM production guidance for FY2025: 880,000–910,000 4E ounces; sales expected at 980,000–1,020,000 oz 4E.

• Group unit cost guidance: ZAR 25,500–26,500 per 4E ounce; Zondereinde ZAR 27,000–28,000, Booysendal ZAR 18,000–19,000, Eland ZAR 36,000–37,000.

• Chrome sales expected to improve to 1.4 million tons.

• CapEx forecast for FY2025 is ZAR 4.3 billion, focused on Eland and Three Shaft development.

• Ongoing cost control measures, including a moratorium on recruitment and delayed non-essential CapEx.