JOHANNESBURG (miningweekly.com) – Royal Bafokeng Platinum (RBPlat) expects to report headline earnings per share (HEPS) of between 51c and 60c for the year ended December 31 – a 30.8% to 41.2% decrease on the HEPS of 86.7c reported for 2016.
Normalised HEPS, after adjusting for the impact of a restructuring charge and a one-off tax benefit in respect of the 2016 housing contribution, are expected to be 2.7% to 15.6% higher year-on-year, at between 64c and 72c, compared with normalised HEPS of 62.3c reported for 2016.
"Given the apparent structural strengthening of the rand against the dollar, it was agreed that it would be prudent to impair the remaining R863-million goodwill still reflected on the balance sheet of the company," RBPlat noted on Friday.
This will likely result in a loss a share of 387c and 397c, compared with earnings a share of 87.6c reported for 2016.
Meanwhile, RBPlat pointed out that the company had delivered a "solid" operational performance in 2017, with production up 8.2% year-on-year.
"The improved operational performance, with the resultant enhanced cash flow contribution from on-reef development revenue at the Styldrift I project, resulted in the group having a substantial cash balance and robust balance sheet at the end of the year," the company said.
RBPlat will release its results on March 6.