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RBPlat expects interim losses a share to widen on Styldrift ramp-up costs

24th July 2019

By: Marleny Arnoldi

Online News Editor

     

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JSE-listed Royal Bafokeng Platinum (RBPlat) says it achieved record production in the first half of this year, supported by the ramp-up at Styldrift, with platinum, palladium, rhodium and gold (4E) platinum group metals ounces and platinum ounces up by 21.1% and 21.3%, respectively.

Styldrift is a mechanised mine, in North West, that provides access to a high-grade, relatively shallow Merensky resource through a twin vertical shaft system and is a key part of the company’s organic growth strategy.

The Bafokeng Rasimone Platinum Mine (BRPM), in North West, achieved satisfactory results while the ramp-up at Styldrift progressed, albeit at lower-than-planned production levels, the company said this week.

Earnings for the six months ended June 30 were negatively impacted by high cash costs and high levels of depreciation, owing to the Styldrift ramp-up, and interest charges related to a Rustenburg Platinum Mines (RPM) deferred consideration.

The Department of Mineral Resources earlier this month granted a Section 11 approval for the transfer of RPM’s 33% undivided interest in the mining rights attributable to the BRPM joint venture to RBPlat.

RPM, a wholly owned subsidiary of Anglo American Platinum, in July 2018 accepted a R1.8-billion offer from RBPlat for the 33% interest in BRPM.

RBPlat expects to report a basic loss a share of between 65c and 75c apiece for the reporting period. 

This compares to a loss a share of 12.4c reported for the six months ended June 30, 2018.

RBPlat further expects a headline loss a share of between 65c and 75c apiece, compared with the headline loss a share of 6c for the prior comparable period.

The company will release its full financial results on or around August 6.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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