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South Africa’s Northam Platinum on Friday reported a 25-fold surge in its half-year profit, driven by higher metal prices and increased production.
The company also unveiled a record interim dividend.
Northam’s headline earnings per share came in at 15.24 rand ($0.9583) for the six months that ended on December 31, up from 0.61 rand a year earlier.
The Johannesburg-based miner declared a record interim dividend of 7 rand per share, up from 0.15 rand a year earlier.
Northam’s refined metal output rose 3.7% to 467,818 ounces during the half, while metal sales jumped nearly 14%.
Revenue soared 60% to 23.2 billion rand on stronger sales and a 53% increase in the basket price.
Spot platinum more than doubled in 2025 and hit a record of more than $2,700 an ounce in late January, driven by tight supplies and rising investment demand for precious metals.
Meanwhile, the European Union’s U-turn on a 2035 combustion-engine ban further supported prices, given platinum’s key role in the catalytic converters that curb vehicle emissions.
Northam CEO Paul Dunne said while firmer platinum group metal (PGM) prices had bolstered ongoing mining from existing operations across the industry, ageing shafts and low investment over the past decade meant supply would continue to decline.
“Despite some recent speculative froth due to geopolitical turmoil, our view remains that the underlying market factors driving pricing are fundamental,” Dunne said in a statement.
“While this should support the much-needed development of new operations, the extended timelines for mining development mean that primary supply of PGMs will continue to fall and thus current prices are likely to remain firm in the medium-term,” he added.
Platinum output in South Africa, which supplies 70% of global output of the metal, has declined from a peak of 5.3 million ounces in 2006 to 3.9 million ounces in 2025, according to Johnson Matthey.
Output could fall by about 10% over the next five years to around 3.5 million ounces.
($1 = 15.9039 rand)
(By Nelson Banya; Editing by Sumana Nandy, Muralikumar Anantharaman and Thomas Derpinghaus)