Northam H1 loss widens on BEE transaction
Moneyweb / 23 February 2018 09:55 / Ed Stoddard, Reuters
Northam Platinum reported a widened half-year loss on Friday citing costs related to a transaction to increase its black ownership profile but the mid-tier South African miner still posted an operating profit.
It made a headline loss of 80 cents per share versus a loss of 64.7 cents per share a year earlier. Its operating profit fell almost 4% to R338.8 million.
Northam shares are up 130% since December 2015, outpacing a rise of just over 40% for the JSE’s platinum mining index. It has benefited from cost cutting and high-grade content.
But its financials have been hobbled by preference share dividend payments related to a black economic empowerment (BEE) transaction which increased its black ownership levels to 30%, exceeding a regulatory requirement of 26%.
Northam Platinum has benefited from cost cutting and high-grade content. Picture: Supplied
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