JOHANNESBURG (miningweekly.com) – JSE-listed Bauba Platinum swung to a net profit of R95.53-million in the financial year ended June 30, compared with a loss of R5.23-million in the prior financial year.
The company’s only operating mine Moeijelijk resumed mining activities in January amid a significantly improved chrome ore market.
Although the chrome ore price had dropped significantly in May, it has since improved and is on an upward trend again.
The weighted average cost, insurance and freight (CIF) price realised for the financial year was $237/t for 38% to 40% Cr2O3 chrome ore run-of-mine.
Bauba on Friday said it was optimistic for the 2018 financial year, considering the steadily improving chrome ore prices, with current CIF pricing for its product above $200/t.
Opencast production after the May price crash was decreased to preserve Bauba’s resource for more favourable market conditions and production is being increased again to capitalise on the recently improved pricing.
“Our business model and low cost of production ensures that we are able to operate sustainably in a stressed chrome ore market, if need be,” the company stated.
Meanwhile, Bauba reported that, as a result of additional safety measures implemented in securing the highwall face where the underground portal is being built, the Moeijelijk mine will only reach the targeted 30 000 t/m of stable underground LG6 chrome ore production in the first half of 2019 and not June 2018 as previously expected.
A production rate of 20 000 t/m of underground LG6 chrome ore is expected to be achieved in June 2018, with a total underground production forecast for the 2018 financial year of 100 000 t.