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The upgrade primarily reflects Northam’s strengthened earnings profile and expectations of continued robust free cash flows and financial metrics on the back of favourable commodity prices.

Other factors sighted by GCR include the surge in Northam’s profitability in recent years, its rising production volumes, the positive manner in which Northam managed and recovered from the impact of Covid-19, the group’s globally competitive cost position and Northam’s record of maintaining conservative financial policies.

GCR continues to view Northam’s liquidity as strong, Northam noted in an October 9 statement.

The stable outlook also reflects GCR’s view that the group will pursue a conservative financial profile and will continue to benefit from its ongoing production ramp up against supportive pricing levels, which are expected to translate into robust margins and cash flows to sustain strong credit metrics over the next 12 to 18 months.