Midtier platinum group metals (PGMs) miner Royal Bafokeng Platinum (RBPlat) increased its mine production by 4.6% year-on-year for the first quarter of this year, with 998 000 t hoisted from the Bafokeng Rasimone platinum mine (BRPM).
Tonnes hoisted from the Styldrift mine increased by 7.8%, to 468 000 t, while total tonnes milled for the reporting period increased by 22.1% year-on-year, to 1.02-million tonnes, with Merensky contributing 769 000 t and upper group two (UG2) 260 000 t – 25% of total tonnes milled.
Overall, the miner’s production of platinum, palladium, rhodium and gold (4E) increased by 14.2% year-on-year, notwithstanding numerous factors negatively impacting its first-quarter performance, especially in January and February.
At the end of the quarter under review, RBPlat held net cash of R3.9-billion, compared with a net cash position of R1.64-million as at December 31, 2020.
It had about R2.13-billion of debt facilities available, with cash and cash equivalents on hand of R4.45-billion.
Meanwhile, notwithstanding the ongoing uncertainty about the duration, potential resurgence and associated operational impacts of the Covid-19 pandemic, RBPlat’s guidance for the full-year is forecast to increase to between 4.45-million and 4.85-million tonnes at a 4E built-up head grade of between 3.9 g/t and 3.95 g/t – yielding between 475 000 oz and 525 000 oz of 4E metals-in-concentrate.
Group cash unit costs for the year of 4E are forecast to be between R14 200/oz and R15 400/oz; while group capital expenditure, including escalation contingencies, is forecast to be about R2.2-billion.
NEGATIVE IMPACTS
The factors impacting RBPlat’s first-quarter performance included the second wave of the Covid-19 pandemic, which resulted in lower labour availability during the initial ramp-up of operations after the December festive break. This was owing to the increase in infection rate (and associated isolation/quarantine requirements) and national border congestion resulting in the slow return of foreign national employees.
In addition, a loss of operating momentum at Styldrift was experienced following a fall-of-ground fatal accident on December 9, 2020; as well as impacts resulting from securing approval of startup procedures in line with Department of Minerals Resources and Energy guidelines.
Adverse weather conditions also negatively impacted on RBPlat’s surface ore handling logistics at its Maseve concentrator.
Electricity load curtailment by Eskom led to a reduction in overall plant efficiencies and performance, resulting in RBPlat’s operations suffering downtime.
Further, the miner was also impacted on by the complexity associated with re-issuing of work permits to foreign nationals employed by new volume contractors appointed at BRPM, further impacting BRPM’s labour availability.
Meanwhile, for the period under review, RBPlat’s built-up head grade decreased to 3.83 g/t.
RBPlat says the reduction in head grade is attributable to increased dilution experienced in the Merensky reef mining sections and higher contribution of lower-grade UG2 to overall production volumes.
Milled volumes, built-up head grade and associated recoveries yielded 4E and platinum metals in concentrate of 102 900 oz and 66 300 oz, respectively, compared with the prior comparable quarter.