JSE- and LSE-listed Northam Platinum expects to report a substantial increase in earnings for the six months ended December 31, 2025, driven by higher production volumes, improved metal prices and operational efficiency gains across its South African operations.

The company reported on February 9 that basic earnings a share for the period were expected to rise to between R20.01 and R20.12, compared with 62c in the first half of the 2025 financial year.

Headline earnings a share are also expected to increase, to between R15.19 and R15.30, compared with 61c in the prior comparable period.

Operating profit is projected to reach R5.8-billion, up from R1.1-billion in the first half of the prior financial year.

Total equivalent refined platinum group metals (PGM) produced from Northam’s operations increased by 3.7% to 467 818 oz of platinum, palladium, rhodium, and gold (4E), compared with 451 213 oz in the first half of 2025.

Production of chrome concentrate rose by 14.8% to 822 759 t, supported by improvements in UG2 tonnage throughput, feed grades and concentrator yields.

Total metal sold grew by 13.7% to 519 192 oz of 4E, up from 456 544 oz in the first half of the prior financial year.

Sales revenue increased by 60% to R23.3-billion, reflecting a 53.1% appreciation in the rand 4E basket price, together with higher metal sold. Total revenue rose by 40.7% to R44 782/oz of 4E, compared with R31 835/oz of 4E in the first half of the prior financial year.

The increase in revenue exceeded the 29.4% rise in cost of sales, contributing to an operating profit margin of 25.1%, compared with 7.5% in the first half of the 2025 financial year.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) amounted to R7.5-billion, up from R1.8-billion in the same period a year earlier.

Northam also highlighted operational improvements at its three primary mines.

Zondereinde continues to benefit from logistics decongestion as UG2 stoping shifts from western to higher-yielding eastern sections, alongside increased mining productivity from focused Merensky stoping in the Western extension.

Booysendal is concentrating on productivity and efficiency gains, while Eland is advancing its ramp-up, with square metres and tonnes mined in line with expectations.

At Zondereinde, stoping within the Western extension continues, with equipping of 3 Shaft for personnel and material transport and provision of services nearing completion. Reaming of 3a ventilation shaft is ongoing, and both shafts are scheduled for commissioning in April.

Pilot drilling of 4 Shaft, designed for rock hoisting, has been completed and reaming has started. Booysendal’s decline development is ongoing to increase mineable reserves and operational flexibility.

At Eland, reconfiguration of the ventilation circuit has allowed multi-blast conditions, accelerating decline development and de-risking the mine build programme. Stoping ramp-up is improving feed volumes and grades to the concentrator, and enhancements to the concentrator circuits are yielding additional benefits to PGM and chrome production.

Northam’s unit cash cost rose by 7.2% to R27 208/oz of 4E, up from R25 381/oz of 4E in the first half of 2025. Zondereinde’s unit cash costs increased by 5.5% to R28 210/oz of 4E, Booysendal’s by 2.8% to R18 897/oz of 4E, and Eland’s by 18.8% to R42 441/oz of 4E.

Northam said disciplined cost control and efficiency gains at Zondereinde and Booysendal moderated normal mining inflation, while cost inflation at Eland was driven by crew build-up and a higher number of employees.

An impairment assessment led to the recognition of a reversal of a previously recorded R2.7-billion impairment at Eland of R2.5-billion, following a significant increase in forecast long-term prices and the impact on recoverable amounts.

Northam also recognised a deferred tax asset of R706-million relating to Eland Platinum, owing to reassessment of utilisation against projected taxable profits.

Metal inventory on hand increased to 527 395 oz of 4E, with a carrying value of R10.9-billion and a sales value of R25.4-billion based on current 4E basket prices and exchange rates. The group generated R6.6-billion in cash before R2.7-billion in capital expenditure.

As at December 31, 2025, Northam held a gross cash balance of R9.3-billion, with net debt of R2.6-billion and a net debt-to-Ebitda ratio of 0.24. Available banking facilities of R12.3-billion remain fully undrawn.

Capital expenditure during the period focused on the Western extension project at Zondereinde, the ongoing ramp-up at Eland, and mining fleet purchases and concentrator upgrades at Booysendal South.

Underground tunnel development at Zondereinde progressed with over 2 000 m of additional access tunnels, while strike development reached the fifth mining line, raises were developed on the third line, and stoping continued on the first two lines.

At Eland, declines advanced 3 760 m, accessing 11 strike drives needed for steady state production. Stoping of UG2 reef continues, with 47 crews averaging 9 600 m² of stoping a month.

Northam’s metallurgical operations at Zondereinde saw near-completion of upgrades to the base metal removal plant, commissioning of additional copper electrowinning cells, and installation of vacuum pan dryers to reduce sulphur dioxide emissions.

The company is also developing renewable-energy projects, including an 80 MW solar power facility at Zondereinde through a power purchase agreement with an independent power producer, scheduled for commissioning in the second half of the current financial year. A 20 MW solar project with 40 MWh battery storage will begin at Eland in the second half of the year, followed by a 250 MWh battery park at Zondereinde.

“Northam’s belief in the inherent value of the metals we produce, together with our long-held view of shrinking global primary production, have been the drivers behind our growth strategy.

“This strategy has required the investment of significant capital, both in the acquisition of quality assets, together with the development of those assets into world-class mining and mineral processing operations. A significant pipeline of metal has also been funded and remains unencumbered,” Northam said.