Top South African miner becomes a R122 billion takeover target

Northam Platinum jumped after disclosing that it’s received an unsolicited approach from a “major producer” of platinum-group metals in South Africa.

The Johannesburg-listed miner’s shares surged as much as 11% on Tuesday after the announcement, triggering a short suspension in trading.

The stock later pared those gains to 5.3%, valuing the company at R122 billion.

Northam said it has initiated a competitive process to “consider proposals from pre-selected third parties and other credible interested parties” regarding potential transactions.

That “follows an unsolicited, exploratory, non-binding approach from a major producer,” the company said in a statement.

“The board believes that the process will crystallise the company’s long-term value and strong industry position,” it added.

South Africa is the world’s top supplier of PGMs, with output dominated by four firms. Northam is the smallest of the quartet that also includes Valterra Platinum, Sibanye Stillwater and Impala Platinum. 

The sector has experienced upheaval in recent years, with Anglo American spinning off its platinum business last year, which became Valterra.

Northam lost out to Implats in 2023 after a long-running takeover battle for Royal Bafokeng Platinum Ltd.

The largest single consumer of metals is devices that reduce harmful emissions from diesel and gasoline vehicles.

Platinum has dropped 10% this year and palladium is down 18%, after both metals rebounded strongly in 2025.

Naming the interested party “is not warranted at this stage,” Northam said. If “a credible proposal” is made and accepted, the company’s identity will be revealed, it said.

Northam is expanding PGM output from its mines as the primary supply is forecast to decline in the coming years.

The firm produced almost 940,000 ounces of the metals last year and is targeting 1.5 million ounces by early next decade.

The company said it hasn’t made “any decision to pursue or implement a particular transaction or transaction structure.”

Any offers will be “assessed against Northam’s standalone prospects,” it said.

One Capital Advisory has been appointed as Northam’s advisor for the process.