(Reuters) – South Africa’s Northam Platinum on Monday said it expects its annual profit to decline by as much as 12.5% despite increased production due to higher costs and weaker metal prices.
Northam expects headline earnings per share (HEPS) – the most common profit measure in South Africa – of between 22.84 and 25.46 rand ($1.20-$1.34) for the year ended June 30, down from 26.11 rand last year.
The platinum group metal (PGM) miner’s refined production increased 13% to 809,775 ounces.
The higher output and weaker rand helped push Northam’s sales revenue up 16.1%.
However, cash costs per refined ounce increased 12.6%, while the U.S. dollar basket price for Northam’s four PGMs was down 20% compared to last year.
Northam unsuccessfully tried to acquire Royal Bafokeng Platinum as it sought to add its smaller peer’s shallow, high quality PGM assets to its portfolio, triggering a lengthy takeover battle eventually won by larger rival Impala Platinum .
Northam will release its annual results on Aug. 25.
($1 = 19.0254 rand)
(Reporting by Nelson Banya; editing by Jason Neely)