RBPlat expecting 120% surge in Heps for 2019

ROYAL Bafokeng Platinum (RBPlat), said yesterday that it expected headline earnings per share (Heps) for the year ended December 31, 2019, to surge by up to 120 percent.

RBPlat said headline earnings a share would range between 45 and 55 cents, a jump of between 80 and 120 percent, compared to 25c for the previous corresponding period.

RBPlat said the growth in the business and improved market conditions had supported significant growth in revenue and operating profit.

“It’s especially reflected in the second half of 2019’s performance, with revenue increasing by more than 100 percent and earnings before interest, taxes, depreciation and amortisation increasing nearly 250 percent,” the company said.

The JSE-listed group said it would likely return cash to shareholders after settling the R1.8 billion payment related to the acquisition of the Bafokeng Rasimone Joint Venture (BRPM) from proceeds of the recent gold-streaming agreement.

“The repayment of the deferred consideration will reduce the company’s overall finance costs,” the company said.

RBPlat bought a 33 percent stake in

BRPM for R1.8bn in late 2018 and had the flexibility to pay the debt outright after signing a R2.1bn gold streaming agreement with Triple Flag Mining Finance Bermuda.

The streaming agreement aimed at strengthening its balance sheet and freeing-up cash and signalled confidence in the business.

Gold is a by-product of RBPlat’s output and represents 3 percent of the company’s revenue.

The group yesterday reported a 57 percent growth in its 4E platinum, palladium, rhodium and gold production from its Styldrift mine.

The company said the growth at Styldrift was partly offset by a 9 percent decrease in BRPM 4E ounces, which was impacted by the shift in production at South shaft from Merensky to UG2 ore, lower Merensky grades achieved at North shaft Phase III and Eskom power curtailments.