Good news from Royal Bafokeng
Platinum producer swings back into the black
MINING company Royal Bafokeng Platinum Limited (RBPlat) yesterday said it expected its financial results for the year ending in December to show an upswing to profits following a negative performance last year.
The company said it expected earnings per share to grow between 81 and 92 cents, increasing the earnings by between 105.1 percent and 105.8 percent for the period against the loss per share of 1 589.2 cents recorded during the reporting period last year.
RBPlat said headline earnings per share would increase by a bigger percentage. The miner made a headline loss per share of 83.2 cents in 2015.
However, it said it expected to make a complete turnaround and report headline earnings per share of between 80 and 91 cents
The company said the earnings per share were expected to increase from a loss per share and headline loss per share recorded in 2015 as a result of a 9.8 percent increase in revenue.
“The improved earnings, combined with a strong cash flow contribution from on-reef development revenue at the Styldrift I project, resulted in the group having a substantial cash balance at the end of the year,” the company said.
It has been a positive trading period for the company as it received good news throughout the year
The group added that the increase in earnings per share and headline earnings per share was furthermore impacted by the 2015 once-off current and deferred tax charge related to the settlement of a tax dispute with the South African Revenue Service on its 2008, 2009 and 2010 tax years and the once-off housing project tax credit accounted for during 2016.
It said cash preservation continued to be a priority and RBPlat remained unleveraged with a robust balance sheet, which positioned the company well for the next phase of Styldrift I’s ramp up to 150 000 tons per month.
“The expected improvement in the mining activities will go a long way in allaying the fears of the workers,” it said.
The company was forced to cut jobs towards the end of 2015 as commodity prices tumbled.
RBPlat retrenched at least 174 workers in October 2015, a situation that the miner put down to challenging economic conditions.
RBPlat expects to release its results for the year ended December 2016 on or about February 28.