Northam Platinum Suffers First Operating Loss in 15 Years

Mineweb reported that in announcing its results for the six months ended December 31, 2013, Northam Platinum Ltd. (OTCMKTS:NMPNY) said it recorded its first operating loss in 15 years. The slip was caused by a 79-day strike aimed at garnering increased wages for workers at the company’s Zondereide operation.

As quoted in the market news:

Combined tonnes milled fell by 28.4% in the period to 823 234 tonnes, while production of metals in concentrate fell by 28.9% to 3 477kg.

According to the company’s Securities Exchange Network (SENS) announcement, Platinum group metal sales from Zondereinde fell 16.4% to 4 620 kg.

Due to the weak rand, the average rand basket price was higher at R383 258/kg and contributed to a marginal increase of 3.7% in revenue to R2.3-billion, said Lewis.

The cost of sales rose 23% to R2.4-billion owing to higher operating costs, increases in third-party toll-treated refining costs and Booysendal’s R224-million amortisation and depreciation charge.

Click here to read the full Mineweb report.