ROYAL BAFO­KENG PLAT­INUM

RBPlat trad­ing up­date fore­casts drop in prof­its, but no neg­a­tive im­pact

The Star Early Edition - - BUSINESS REPORT - Sandile Mchunu

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

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