Oct 7, 2022

DMR approves acquisition of Tumela by Northam Platinum

The Department of Mineral Resources (DMR) has approved the intended acquisition of a portion of the Amandelbult mining right by Northam Platinum.

“Northam Platinum is pleased to have achieved this significant milestone and looks forward to concluding the transaction in due course,” says Northam Platinum CEO Paul Dunne.

“The incorporation of Tumela will increase Zondereinde’s life expectancy to beyond 30 years, it provides significant operating synergies for Zondereinde, delivering flexibility and optionality and allows the mine to continue mining higher-grade Merensky reef at little incremental cost.”

The section 102 consent, issued in terms of the MPRDA mining licence amendment process, will provide Northam’s Zondereinde mine access to an additional resource of 16.7 Moz.

The section 102 consent fulfils one of the key conditions precedent to the transaction, which is valued at R1 billion in cash.

Despite difficult economic circumstances during the reporting period, both of Northam Platinum’s operating mines, Zondereinde and Booysendal, are expected to record an operating profit.

Northam Platinum says the group’s loss per share for the year ended 30 June 2017 ranges between 167.8 and 196.0 cents per share.

Northam Platinum has also reported a headline loss per share estimated to range between 167.3 cents per share and 196.3 cents per share, compared with the loss per share of 145.3 cents and headline loss per share of 140.9 cents reported for the year ended 30 June 2016.

These ranges expressed in percentage terms, are, in respect of a loss per share, an increase of between 15% and 35% per share and, in respect of headline earnings per share, an increase of 19% and 39% per share.

Northam Platinum’s total operating profit is estimated to be higher than the previous year, owing to an improved operational performances and well contained unit costs.

The weighted average number of Northam Platinum shares in issue for the year ended 30 June 2017 was 349 875 759 (30 June 2016: 349 875 759 shares).

Feature image credit: Northam Platinum

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