Northam Platinum has reported a downturn in its production figures for the full year ended July 30th.

The company reported a drop in year-on-year production of ten per cent, to 324,296 oz, as the company also saw increases in operating costs of 9.7 per cent and cost of sales growing by 26 per cent over the course of the 12 month period.

However, despite the dip in production, Northam announced a massive 88 per cent increase in attributable earnings for the year, due largely to the continuing surge in the price of precious metals.

Northam explained that production levels had fallen due to continued difficult geological and mining conditions, which have had an adverse impact on the head grades recovered at the Merensky reef.

"We are in the process of addressing this imbalance by turning to account higher grade P2 reserves," explained Northam chief geologist Damian Smith.

The company said it had also made "excellent progress" in its efforts to meet local refining targets.

Source:
Another record year for Northam, Results reflect sustained strong price environment, 2/08/07
http://www.northam.co.za/ir/media/2007/media_02aug07.asp

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