Northam Platinum has posted its results for the first half of 2008 and revealed a decline of 28.9 per cent year on year for share earnings.

The firm blamed the loss of 23 days of production because of safety-related stoppages and retraining programmes.

Glyn Lewis, Chief Executive Officer, said: "As expected, the difficulties associated with mining the Merensky reef have persisted.

"Our emphasis on exploiting the more conformable UG2 reef has borne some success, and has helped us to contain the drop in tonnages mined from both reefs to 17.1%, despite the 24.3% decline in Merensky tonnages," he added.

As a result of the lower tonnages, and a drop in head grade to 5.0 g/t, production of metals in concentrate was lower by 16.5 per cent at 4,689 kg (150,755 oz) compared with H1 in F2007.

Sales revenue at R1.5 billion was 17 per cent lower year on year from the 2006 figure of R1.8 billion.

Mr Lewis said that the metallurgical developments at Northam have allowed it to increase volumes mined from the UG2 reef.

"With the additional external sparger column cell commissioned in August last year, we have made good progress in increasing the proportion of UG2 concentrate in the smelter, largely eliminating the previous problems associated with the build-up of chrome, while at the same time maintaining our PGM recovery rates," he explained.

Meanwhile, the firm's full year precious metals sales are expected to be around 50,000 oz less than in the previous year.

A total of 134,165 oz of precious metals, including platinum, was sold in the six-month period down from 175,382 oz sold in the same period in 2006.

Looking to the future, Mr Lewis said the firm would continue to produce metals if Eskom could guarantee at least 90 per cent supply.

"Provided that Eskom can supply the company with not less than 90 per cent of its normal average power consumption, production and sales of metal in the second half of the year should correspond to those in the first half," he said.

Source:

Northam earnings suffer on Merensky challenges, safety setbacks, 12/02/08
http://www.miningweekly.co.za/article.php?a_id=126761

Northam first half results reflect tough operating conditions, 12/02/08
http://www.northam.co.za/ir/media/2008/media_12feb08.asp
http://www.northam.co.za/ir/publications/interim/files/interim_dec2007_12feb08.pdf

Northam might sell 50,000oz less PGM in FY08, 12/02/08
http://www.miningmx.com/platinum/891042.htm


Ÿ Adfero Ltd