Northam Platinum forcasts losses on earnings

Ayanda Mdluli
JOHANNESBURG- Mining conglomerate, Northam Platinum has warned shareholders that the group’s loss per share for the period ended 31 December 2017 is estimated to range between 77.7 cents per share and 90.7 cents per share.
In addition, the company highlighted that the headline loss per share is estimated to range between 77.6 cents per share and 90.5 cents per share, compared with the loss per share of 64.8 cents and headline loss per share of 64.7 cents reported for the period ended 31 December 2016.
In a statement earlier today, the company said the aforementioned ranges expressed in percentage terms, are, in respect of both the loss per share and headline earnings per share, an increase of 20% and 40% per share.
“The anticipated loss is attributable to the Zambezi Platinum (RF) Limited (“Zambezi”) preference share dividends, which are consolidated in the group’s results in terms of the International Financial Reporting Standards,” the company said in an announcement.
Furthermore, the Zambezi preference shares accrue dividends at a cumulative variable dividend of 3.5% over the prime overdraft interest rate in South Africa.
“Shareholders are reminded that 159 905 453 Northam shares are held for settlement of the Zambezi preference share liability in terms of the Northam guarantee and the accrued dividends are consolidated into the Northam results as a non cash item for Northam.”
“Although the platinum mining industry has experienced difficult economic conditions during the reporting period, both of the group’s operating mines, Zondereinde and Booysendal, are expected to record an operating profit,” said the company.