JSE-listed Royal Bafokeng Platinum (RBPlat) last week reported higher earnings before interest, taxes, depreciation and amortisation (Ebitda) in the six months to June 30.

Earnings per share rose 103% to 87c a share and Ebitda as a percentage of revenue increased to 31.2% from 20% in the first half of 2012, mainly as a result of the increase in the basket price adjusted by a marginal increase in cash operating costs at the operation.

Other income increased by R10.5-million, from R21.2-million in the first half of last year to R31.7-million in the first six months of this year.

The increase is due mainly to an increase in the Impala royalties.

Finance income reduced by R12.3-million to R22.3-million and relates to interest earned on cash on hand, including dividends received on the Nedbank preference share investment.

Administration expenditure decreased by 3% to R61.4-million, compared with the corresponding period last year.

The current income tax charge reduced to R7.4-million.

Deferred tax increased from the prior year owing to higher Bafokeng Rasimone platinum mine joint venture profits.

Royal Bafokeng Resources Holdings has, however, received notice from the South African Revenue Service (Sars) that it intends reopening the assessments relating to Sars’ intention to disallow interest on shareholder’s loans amounting to R586-million previously deducted and allowed by Sars in the 2008 and 2009 income tax assessments.

The company, which has enlisted independent advice, says it is confident about defending the matter while correspondence with Sars is ongoing.

During the six months, RBPlat increased its cash by R88.4-million after funding all capital expenditure of R446-million.

The company’s balance sheet remains ungeared with cash and near-cash investments of R992-million.

The R500-million Nedbank revolving credit facility was increased to R1-billion last month, with group working capital facilities increasing from R258-million to R458-million.

To date, the revolving credit facility remains undrawn.

RBPlat has provided a R200-million guarantee for the 400 houses being built for personnel.

The company has recorded a 8.4% reduction in the lost-time injury frequency rate, a 1.1% increase in production to 130 278 oz of four-element platinum-group metals and a 5.8% increase in built-up head grade to 4.28 g/t.