Royal Bafokeng Platinum achieved record production
Despite the negative impact of the Covid-19 pandemic on Royal Bafokeng Platinum (RBP) operations and the business as a whole, the Group achieved record production with a year-on-year increase in tonnes hoisted of 9.2% to 4 140kt, a 3.7% increase in tonnes milled to 3 990kt and a 4.5% increase in 4E metals in concentrate to 419koz.
KEY FEATURES OF RBP PERFORMANCE
Financial capital
- 278.4% increase in EBITDA to R6 646.5 million
- Basic headline earnings per share of 1 354.4 cents (2019: 50.4 cents)
- Net cash position of R1 643.2 million (2019: net debt of R491.3 million)
- Declaration of maiden dividend of 575.0 cents per share
Manufactured capital
- 3.7% increase in tonnes milled to 3 990kt
- 4.5% increase in 4E ounce production to 419koz
- 10.1% increase in cash operating cost per 4E ounce to R15 560
OUTLOOK AND COMPANY GUIDANCE
Notwithstanding the ongoing uncertainty around the Covid-19 pandemic’s current resurgence, Group production guidance for 2021, subject to any unforeseen operational disruptions, is forecast to increase to between 4.45Mt and 4.85Mt at a 4E built-up head grade of 3.90g/t — 3.95g/t, yielding 475koz — 525koz 4E metals in concentrate.
Group cash unit costs for the year are forecast to be between R14 200 and R15 400 per 4E ounce. Group capital expenditure for 2021, including escalation contingencies, is forecast to be approximately R2.2 billion with the key contributors being:
- R0.4 billion for the finalisation of ancillary works on the Styldrift expansion project
- R0.6 billion for the Maseve 180ktpm MF2 and BRPM TSF upgrades
- R0.5 billion for the Styldrift replacement capital
SIB expenditure is expected to be between R0.6 billion and R0.7 billion equating to between 6% and 8% of operating expenditure.
