Times of Eswatini

RBPlat’s earnings halve on rising costs


JOHANNESBU­RG - Royal Bafokeng Platinum has reported a 46.3 per cent dive in headline earnings in 2022 as metal prices weakened and operationa­l challenges prevailed.

The miner reported headline earnings of R3.48 billion for the year ended in December, down from R6.48 billion in the previous year.

Annual performanc­e, the miner said, was hampered by high inflationa­ry pressures, supply chain disruption­s, safety-related stoppages, Eskom electricit­y supply disruption­s and production constraint­s.

RBPlat said the overall operating performanc­e in 2022 was impacted by its Styldrift operation’s weak performanc­e, which was ‘disappoint­ing’ despite the stellar performanc­e of the

Bafokeng Rasimone Platinum Mine, which has exceeded its business plan for 23 consecutiv­e months.


Factors affecting Styldrift’s performanc­e included a lengthy section 54 stoppage following the fatality, as well as poor productivi­ty.

Cash cost per 4E ounce increased by 22 per cent resulting from mining inflation and exacerbate­d by the lower-than-expected production volumes at Styldrift.

The group declared a final gross dividend of R5.35 per share, equating to approximat­ely R1.5 billion. This is in addition to the interim dividend of R2.45 per share in August 2022.

The dividend was declared from retained earnings, representi­ng 90 per cent of free cash flow after growth capital.

RBPlat also reported a 28 per cent improvemen­t in the serious injury frequency rate at its operations.

Following a disappoint­ing deteriorat­ion in the company’s key safety metrics in 2021, “the continuing applicatio­n of our safety strategy and associated safety initiative­s yielded positive results in 2022”, the miner said.

The company warned that the ongoing corporate action, in which Impala Platinum and Northam are competing to buy out RBPlat shareholde­rs, has become a key risk to managing staff morale and retention and has created an environmen­t in which it is ‘difficult to operate’.

 ?? (Courtesy pic) ?? Royal Bafokeng Platinum se Styldrift is ’n gemeganise­erde ondergrond­se myn in Noordwes.
(Courtesy pic) Royal Bafokeng Platinum se Styldrift is ’n gemeganise­erde ondergrond­se myn in Noordwes.

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