Business
Northam Platinum Feels the Squeeze as PGM Prices Plummet
Northam Platinum is the latest casualty in South Africa’s struggling platinum group metals (PGM) sector, reporting a significant drop in earnings as weak PGM prices continue to batter the industry.
For the six months ending 31 December 2024, Northam Platinum’s sales revenue fell by 3.1% to R14.5 billion, while operating profit plunged by 55.2% to R1 billion. The company’s headline earnings per share (HEPS) saw a steep 49.7% decline to 61.1 cents per share, and basic earnings per share (EPS) dropped by 54.9% to 61.5 cents.
Despite its policy of paying out 25% of headline earnings, Northam declared an interim dividend of only 15 cents per share—a staggering 85% decrease from the previous comparable period.
A Tough Time for PGM Miners
Northam is not alone in its struggle. The entire PGM mining sector is under extreme pressure as prices remain depressed. The global shift toward electric vehicles (EVs), which do not require PGMs for emissions control, has significantly reduced demand for platinum, palladium, and rhodium.
On 27 February 2025, Impala Platinum (Implats) revealed that its earnings had also been hit hard by the price drop, despite aggressive cost-cutting efforts, including mass retrenchments. The company opted not to declare an interim dividend, citing uncertainty in the global economy and continued weak PGM prices.
Anglo American Platinum (Amplats) reported a 40% decline in headline earnings for 2024, with revenue falling by 13% to R19 billion due to lower rand-basket per ounce prices. The situation has left Amplats’ majority shareholder, Anglo American, planning a demerger for June 2025, effectively forcing the South African miner to operate independently.
Northam Platinum’s Key Financials for H1 2024
| Financial Metric | H1 2023 (R’000) | H1 2024 (R’000) | % Change |
|---|---|---|---|
| Sales revenue | 14,994,577 | 14,534,271 | -3.1% |
| Operating profit | 2,417,200 | 1,083,226 | -55.2% |
| Profit for the period | 532,620 | 239,874 | -54.97% |
| EBITDA | 3,170,829 | 1,761,810 | -44.4% |
| Basic EPS (cents) | 136.5 | 61.5 | -54.9% |
| Headline EPS (cents) | 121.4 | 61.1 | -49.7% |
| Dividends per share (cents) | 100.0 | 15.0 | -85.0% |
The Road Ahead for Northam Platinum
With PGM prices showing little sign of recovery and the global economy facing continued uncertainty, Northam and other miners may need to implement further cost-cutting measures. The industry is at a crossroads, with traditional revenue streams threatened by technological shifts such as EV adoption.
Investors and industry stakeholders will be closely watching Northam’s next moves as the company navigates one of the toughest periods in recent mining history.
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