Platinum group metals (PGMs) mining company Royal Bafokeng Platinum (RBPlat) has recorded a 446.3% in headline earnings per share, for the six months ended June.
The company reported headline earnings per share of 1 831.9 cents compared to 335.3 cents, a year earlier.
The PGM market continued to be characterised by buoyant dollar basket prices, mildly tempered by the rand’s strength, yielding a record rand basket pricing environment and strong operating cash flows.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 163.4% from R2 087.8 million to R5 499.1 million, with EBITDA margin increasing to 57.4% from 45.3% in the previous comparative period.
RBPlat’s revenue for the six months rose 108.1% to R9 584.3 million, supported by strong PGM basket prices.
“Although our first-half production was restricted by the slow restart of operations resulting from the Covid-19 second wave and other operational challenges, we increased PGM production by 24.3% to 215.7koz of 4E,” the company said.
Platinum contributed 22.2% to the revenue from RBPlat’s operations in the reporting period, while palladium and rhodium contributed 65.9%.
The basket price per 4E ounce increased by 50.1% to R42 600.4 from R28 388.8, a year earlier mainly driven by an increase in palladium and rhodium prices.
“This was offset by a stronger rand with the average exchange rate received for the period at R14.01 per US dollar, compared to R17.53 per US dollar in the previous comparative period,” the company said.
Production for the full year is expected to be between 4.6Mt and 4.75Mt at a 4E built-up head grade of between 3.90g/t and 3.93g/t.
4E ounce production is expected to be between 475koz and 485koz 4E metals for the year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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