JOHANNESBURG (miningweekly.com) – Black-owned Royal Bafokeng Platinum (RBPlat) has waded in with increased production and strongly boosted cash in its maiden reporting year.

“Sterling performance for RBPlat”, is the company's own headline of the first reporting year to December 31 for the Bafokeng-controlled company that listed on the JSE in November 2010, after taking over the management control of the Bafokeng Rasimone Platinum Mine (BRPM) from Anglo Platinum on January 4, 2010.

RBPlat, headed by CE Steve Phiri, increased platinum group metals concentrate production by 7% to 288 100 oz, and milled 12% more tons to 2 407 000 t.

Unit costs remained steady at R707/t milled; cash operating costs rose by only 5% an ounce.

Revenue rose to R2,1-billion as a result of 29%-stronger metal prices and increased BRPM production.

Cash flow swelled to R777-million, lifting cash on hand and cash investments of R1,15-billion.

BRPM’s capital expenditure of R967-million is fully funded from operational cash flow and the Styldrift growth project is on schedule and within budget.

RBPlat, which raised R2,98-billion from local and international investors on listing, has ploughed R1-billion of that into the business.
The share price, settled at R65,20 a share upon listing, has since fallen to R63,85 a share.

Due to the accelerated development of the Styldrift Phase 1 Merensky project, total capital for BRPM is anticipated to increase significantly in 2011.

The safety performance at BRPM has been mixed, with the lost-time injury frequency rate improving to 1.0 (2009: 1.2), but the operation suffering three fatalities during the year.

Styldrift

At the Styldrift project, the bulk earthworks and bulk site infrastructure constructions have been completed and the sinking of the main and service shafts has begun.

The power supply agreement for Styldrift has been accepted by Eskom and permanent power supply is planned for 2014.

The listing floated 30,3% of the company’s share capital, with the balance held by Royal Bafokeng Holdings(57,1%) and Anglo Platinum (12,6%).

Continued consolidation of BRPM's operational performance will form the cornerstone of RBPlat’s 2011 strategy.

RBPlat’s healthy financial position and organic growth opportunities aligned with cash generative operations should position the company favourably in a forecasted deficit platinum market environment.

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