Northam Platinum’s sales revenue for the fiscal year 2023 rose 16% to R39.5 billion ($2.0 billion) compared to R34.1 billion ($1.74 billion), a year earlier.
It said the increase in sales revenue was the combined result of a 20% increase in platinum, palladium, rhodium, and gold (4E) sales volumes to 885 347 oz 4E in F2023 from the previous year’s 737 923 oz 4E and a 6.9% decrease in the 4E ZAR basket price to R37 488/oz 4E compared to R40 286/oz 4E in F2022.
The lower ZAR basket price is the combined result of a lower 4E US dollar basket price of $2,112/oz 4E from F2022’s $2,640/oz 4E and an increase in the average ZAR/USD exchange rate achieved.
Northam said total revenue per equivalent refined 4E ounce sold decreased by 3.2% to R44 670/4E oz compared to the previous year’s R46 162/4E oz.
This, combined with the unit cash cost increasing by 12.6% from R20 278/4E oz to R22 824/4E oz in F2023, led to a decrease in the cash profit margin per 4E ounce to 48.9% from F2022’s 56.1%.
Northam said an increase in sales revenue led to a gross profit of R15.4 billion compared to R14.9 billion in F2022, and a gross profit margin of 39.1% compared to F2022’s 43.7%.
The group said earnings before interest, taxation, depreciation, and amortisation (EBITDA) amounted to R16.5 billion.
Meanwhile, Northam’s equivalent refined metal from its operations increased by 13% to 809 775 oz 4E in the fiscal year 2023 compared to 716 488 oz 4E, a year earlier due to strong production performance from its mines in South Africa.
“Challenges remain, particularly in respect of high mining inflation and the potential for further and possibly more severe Eskom load curtailment events,” it said.
“However, our growth and operational diversification programmes remain on track and continue to demonstrate the value of our counter-cyclical investments and execution capacity across the group, as well as our flexibility in dealing with these challenges.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
