RBPlat CEO Steve Phiri
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Black-controlled platinum mining company Royal Bafokeng Platinum (RBPlat), which managed to maintain operational stability in a sector wracked by violent strikes, on Tuesday reported increased production, revenue and earnings.
Production rose 3% to 134 229 platinum group metal (PGM) ounces, revenue rose 18% to R1.8-billion and headline earnings a share soared 33% to 116c a share.
The cash on hand of the JSE-listed company headed by Steve Phiri was R2.2-billion.
Cost challenges included a 7.2% increase in cash operating cost a ton to R983/t and an 8.5% increase in cash operating cost per four-element ounce to R8 288.
The 6.3% increase in serious injury frequency rate to 0.34 was a disappointment.
The company’s vision and mission is to deliver the good from mining and to leave a lasting legacy of sustainable benefits for stakeholders.
The company cites its most important half-year outcome as the three-year wage agreement it signed without industrial action.
Business continuity contributed to a relatively steady production environment and ounce output compared to the corresponding period last year.
A 15.6% improvement in the PGM basket price contributed to the 33% earnings-per-share surge.
Overall progress of the mining and construction portion of the Styldrift I project ended the reporting period at 46.6%, which is 0.4% behind the planned progress.
Constraints associated with the principal shaft sinking and development contractor and delays related to the loading box cutting below 708 level at the main shaft impacted negatively on the project critical path, which ended the reporting period 26 days behind schedule.
Expenditure remains well below budget.
At Bafokeng Rasimone Platinum Mine (BRPM), total tons milled increased by 4.1% mainly as a result of a 51 000 t (25.6%) increase in upper group two (UG2) production.
Merensky reef head grade of 4.25 g/t was maintained at similar levels to those in the first half of 2013, which, combined with the 4.1% increase in tons milled, yielded a 3% increase in PGM output to 134 000 oz and a 2.1% increase in platinum ounce output over the reporting period.
The increase in UG2 mining resulted in an increase in toll concentrating volumes from 89 900 t to 170 300 t.
The BRPM concentrator recovery of 86.97% was in line with the previous performance of 86.98%.
Surface stocks have increased by 26 800 t, or 3 200 oz, since the start of the year.
The successful mining of the UG2 general facies remains a strategic element of the long-term mining plan at BRPM.
Trial mining of the UG2 at the South shaft delivered steadily improving results with grades peaking at 3.65 g/t in June.
RBPlat’s strategy at BRPM remains to maximise Merensky production and supplement this production with the UG2 reef to increase operational flexibility.