Sales revenue for the year ended 30 June 2014 increased to 5.3 billion rand from 4.4 billion rand for the previous financial year. Cost of sales also increased to 5.2 billion rand for the period under review from 3.8 billion rand in 2013.

“The 38.4 per cent increase in group cost of sales to [5.2 billion rand] is as a result of a combination of increases in operating costs, purchased concentrates, refining and related costs and amortisation,” Northam Platinum said in a statement.

“Operating costs increased by 25.1 per cent to 3.5 billion rand, owing to Booysendal mine’s contribution to group costs, whilst concentrate purchased rose by 39.7 per cent to 918.6 million rand.”

(READ MORE: Northam Platinum sees interim operating loss)

[DATA NHM:Northam Platinum] is a platinum group metals (PGM) producer in South Africa with the Zondereinde and Booysendal PGM mines as its two major assets. Northam also has operations in Hanau, Germany.

Profit before tax for the 2014 financial year declined to 45.7 million rand from 697.6 million rand in 2013. Headline earnings per share decreased to 2.2 cents for the period from 136.5 cents in 2013.

PGM sales from the firm’s Zondereinde mine fell by 8.2 per cent to 9,872 kilograms for the period under review from 10,704 kilograms in 2013, while its Booysendal operation contributed towards metal sales for the first time with a total of 2,503 kilograms.

(READ MORE: Northam Platinum remains cautious about production and other estimates)

The average basket price for Zondereinde mine’s metals released was 9.6 per cent higher in 2014 at 400 381 rand per kilogram from 365 217 rand per kilogram in 2013. Booysendal mine’s platinum group metal sales achieved an average price of 398 710 rand per kilogram for the period under review.

Investment revenues were 79.4 per cent higher at 60.0 million rand on the back of higher average cash balances resulting from the group’s fund raising activities in the 2014 financial year, as well as lower capital expenditure as the construction of Booysendal mine nears its end.

“Social and economic uncertainty is likely to continue to influence the fortunes of the platinum industry in the near future,” said Northam.

“Barring any disruptions to Northam’s operations in 2015 and 2016 [financial years], Zondereinde mine is expected to continue in steady state production. The Booysendal mine is anticipated to reach steady state production by October 2015.”