Northam Platinum expects to report record full-year earnings as it benefits from higher sales and production and increased metals prices.The group also announced a review of its dividend policy and would pay out 40% of its earnings in future.In August 2023, the board approved an earnings-based dividend policy, providing for a minimum annual payment of 25% of headline earnings. However, in reality over the past three years total annual dividends have averaged 42% of headline earnings. The change more closely aligns policy with actual payouts, it said.Record production, record sales and record earnings had underpinned the strong performance, it said.Northam expects to report record HEPS of between 3,006.1c and 3,082.3c for the year to end-June, an increase of 689.4% to 709.4%.It produced record total equivalent refined platinum group metal (PGM) from its own operations of 938,754oz, up 4.4%. This takes the group within sight of its goal, which it set in 2015, of growing own production to 1-million ounces.Chrome concentrate production increased 17.4% to a record 1.69-milllion tonnes.Total metal sold rose by 8% to 1.087-million ounces. Sales revenue rose 64.1% to R54bn, another record, attributable to a 57.4% appreciation in the rand-4E basket price (combined market value of platinum, palladium, rhodium and gold) together with increased metal sold.Operating profit increased by 293.8% to R14.2bn as a result of higher sales volumes and improved metal prices, with Eland generating its first operating profit at 60% of its steady-state production.The group also announced it has concluded an agreement to increase its existing revolving credit facility from R13.3bn to R15bn, taking its total available banking facilities to R16bn.During the year the group achieved major milestones towards its strategic goals, including the commissioning of 3 shaft at Zondereinde mine. The group said all its operations performed well during the year. “Zondereinde continues to benefit from focused Merensky stoping in the Western extension, together with logistical decongestion resulting from the shift of UG2 stoping to the higher-yielding eastern portions of the mine. “Booysendal’s production exceeds steady state and is continuing to focus on incremental and sustainable productivity gains, while Eland, at 60% of steady state, has delivered a maiden operating profit,” it said.Strong production growth was recorded at Eland, with marginal improvements at Zondereinde ahead of the commissioning of 3 shaft, and at Booysendal on the back of further productivity gains. “This again demonstrates the quality of these operations,” the group said.Northam said having assessed all available alternatives it has concluded a combination of incremental brownfield enhancements to its operations, together with the expansion of its third-party business over the coming five years, will enable growth in sales to more than 1.5-million ounces of PGMs and more than 2-million tonnes of chrome concentrate, while “bullet-proofing” the business against future potential market volatility.With this new strategic goal, which its terms Vision 2031, growth in equivalent refined metal from own production will come from each of the operations and will require capital investment. To realise this targeted increase in production, it will require upgrades to the group’s downstream processing facilities. These include the upgrade of smelter furnace 1, the addition of a third iron reduction converter and enhancements to the base metal refinery, including expanded nickel and copper recovery circuits.“Recent geopolitical turmoil has increased market volatility in the short term, however, our longer-term view remains unchanged. There is a persistent and growing market deficit for the metals we produce, metals that are critical and essential to the modern world. “Our strengthening performance and growth in market share means we are well positioned to continue to deliver superior returns well into the future,” it said.Business Day