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.
Perfomance
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’.