ROYAL BAFOKENG PLATINUM
RBPlat trading update forecasts drop in profits, but no negative impact
THE ROYAL Bafokeng Platinum (RBPlat) expected a decline in profits for the six months to June, the company informed its shareholders in a trading update released yesterday.
The mining company said it was in the process of finalising its financial results where it expected to report its loss a share and headline loss a share to be between 20 cents and 12c, which is between 125.7 percent and 115.3 percent lower than last year’s results.
“There is a reasonable degree of certainty that the financial results for the period to be reported upon next will differ by at least 20 percent from those of the previous corresponding period,” the group said.
RBPlat said last year it reported earnings a share of 78.2c and headline earnings a share of 77.8c for the previous corresponding period.
The group attributed this decline to a 10 percent reduction in the realised revenue basket price; and to the impact of a once-off restructuring charge to the consolidated interim statement of comprehensive income.
RBPlat – a black-owned and controlled, mid-tier platinum group metals (PGM) producer, and listed on the JSE – expects to release its interim results on or about August 1.
It operates the Bafokeng Rasimone Platinum Mine and is constructing the Styldrift I Project, both of which are located in the North West province. During the six months to June last year the group continued with no meaningful improvement in the PGM market.
Its improved average basket price, lower than planned expenditure at Styldrift I, together with its ongoing focus on cash preservation and maintaining a strong balance sheet, resulted in R1.03 billion cash on hand at the end of the period.
This resulted in the mining company delivering headline earnings of 77.8c a share as compared to a headline loss of 60.4c in 2015.
The main reason for the improved earnings a share was due to a higher realised average rand basket price during the period and revenue that included a positive revaluation of the pipeline of R70.2m while the revaluation of the pipeline for the prior comparative period reflected a negative R12.8m.
The group was not negatively impacted by the loss expected in the company’s results.
It gained 1.89 percent in early trade on the JSE. However, by the end of the day it closed 0.58 percent higher at R33.
The Bafokeng Rasimone Platinum Mine in Phokeng near Rustenburg. yadda yadda and here caption across and here across caption.~ PHOTO: DUMISANI SIBEKO