After losing to Impala Platinum Holdings in a takeover war, the CEO of Northam Platinum Holdings claimed on Thursday that his company’s stake in Royal Bafokeng Platinum (RBPlat) gave him a position of strength and was “the silver medal “. Since November 2021, Northam has acquired a 34.68% stake in RBPlat, hampering Impala’s quest to gain full control of the business. Impala owns 35.31% of RBPlat and has launched a mandatory offer to the remaining shareholders of the intermediate producer of platinum group metals (PGM). When asked if Northam could still achieve its strategic objectives as a minority shareholder in RBPlat during a conference call, chief executive Paul Dunne said the investment in RBPlat was essential.
Its comprehensive earnings per share (HEPS) – the main measure of South African corporate profits – came to 961.5 South African cents ($0.6629) for the six months ended December 2021, from 599.9 cents a year earlier. The CEO of Northam expects the decarbonization of the auto industry to be dominated by hybrid vehicles rather than electric vehicles, which will drive demand for PGMs. “The constraints and prices of electrification lead us to believe that hybrid vehicles will dominate light-duty vehicle trends over the next two decades,” Dunne said.
“Our position is already a position of strength, in many ways, some of which are not so obvious. The 35% strategic stake, if I can put it in plain language, is the silver medal,” Dunne said. , declining to give details citing market regulations. He said RBPlat was a good fit for Northam’s quest for high-grade shallow PGM resources. “The RBPlat ore body contains 68 million ounces (of PGM), of which a significant proportion resides less than 700 meters deep, that’s very shallow under current industry conditions and extraction rates are high at 75%,” Dunne said. Firmer prices for PGMs helped Northam offset a drop in production caused by work stoppages and absenteeism related to COVID-19.
Summary of news:
- Northam Platinum half-year profits up 60% in South Africa
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