Northam Platinum recorded a small increase in pgm production during its latest financial year, it has been confirmed.

The company announced that output for the 12 months to 30th June reached 321,475 oz, which was a rise of 6.3 per cent in comparison to the previous yearly total.

In addition, the firm's operations - which currently revolve around the Zondereinde mine - saw pgm sales increased by 18.8 per cent on an annualised basis to 395,879 oz.

Chief Executive Glyn Lewis revealed that smelter issues during the second quarter, due to an incident in the precipitator, had a negligible impact on production.

"Following the installation of a temporary bypass around the precipitator the smelter is back in operation while the final repairs should be completed in the second quarter of the new financial year," he said.

However, Mr Lewis warned that production could be affected in the upcoming financial year as the challenge of mining the Merensky reef at the facility intensify.

As a result, Northam is now considering various avenues to raise funds for its Booysendal project, which could add 162,000 oz of pgms to its annual production levels.

The company may sell a R2 billion convertible note early next year, while also seeking a R500 million rand revolving credit facility as it begins work on the world's deepest platinum mine.

Mr Lewis added: "We now have board approval for the development of our Booysendal project, which promises to be more robust than the initial feasibility work suggested.

"We are also optimistic about the feasibility of establishing a ConRoast smelting facility in Mpumalanga province, which provides us with more smelting optionality, while also reducing our reliance on Eskom."

Northam Platinum has a combined resource base of 133 million ounces pgm, with more than 50 years' life of mine.

Sources:



Northam boosts FY sales, sees further costincreases for 2011 (20/08/10)



Northam Platinum May Sell 2 Billion-Rand Bondin 2011 (20/08/10)

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