RBPlat boosts war chest to R1bn
Royal Bafokeng Platinum says, despite a mediocre sector, its plan is coming together and it has a war chest or R1 billion.
|||Johannesburg - Royal Bafokeng Platinum says it has not experienced any meaningful improvement in the platinum group metals market in the first half of the year.
Despite this, it says its plan is coming together and it has a war chest or R1 billion.
In its results announcement, for the six months to June, the company notes its improved average basket price, lower than
planned expenditure at Styldrift I, together its ongoing focus on cash preservation and maintaining a strong balance sheet, resulted in R1 billion cash-on-hand at the end of June.
“Through a combination of continued healthy labour relations, an improvement in our overall safety performance, operational flexibility at Bafokeng Rasimone Platinum Mine (BRPM), and meaningful increases in Styldrift I’s contribution to production we were able to achieve operational stability and a consequent overall improvement in operational performance year-on-year.
“We have also been able to deliver against some of the key performance indicators.”
The listed miner notes RBPlat delivered headline earnings of 77.8 cents per share in the period, compared to a headline loss of 60.4 cents a share a year ago.
This, it says, was thanks to a higher realised average rand basket price, once-off gains and lower depreciation and ammortisation charges.
Net revenue increased 15.8 percent from R1.4 billion to R1.6 billion thanks to a 9 percent increase in the average rand basket price to R19 680 per platinum ounce in the first half of 2016 compared to R18 062 in 2015 and a 6 percent increase in platinum ounces sold, it says.
Its average cash operating cost per platinum ounce increased 1.7 percent from R15 615 to R15 882 due to a 5 percent increase in platinum ounce production and cash operating costs being 8.2 percent higher.
“Our gross profit margin improved from 0.6 percent to 11.4 percent for the period. This was due to the 15.8 percent increase in net revenue and a 3.2 percent increase in total cost of sales.”
It also notes its expansion plans remain on track, and it expects to invest R1.3 billion this year in capital items.
IOL