Platinum-group metals (PGMs) miner Royal Bafokeng Platinum (RBPlat) achieved a 6.5% year-on-year increase in platinum, palladium, rhodium and gold (4E) metals in concentrate production to 72 300 oz for the three months ended March 31.
Platinum ounces were up 6.2% year-on-year to 46 300 oz.
Total tonnes delivered to concentrators increased by 17.1% to 721 000 t, with the Bafokeng Rasimone platinum mine (BRPM) having contributed 597 000 t and Styldrift 124 000 t.
Total tonnes milled during the period rose 13.7% to 690 000 t, with BRPM contributing 571 000 t and Styldrift 119 000 t. The contribution from the upper group 2 reef to overall tonnes milled reduced from 22% to 20.5%.
The average 4E grade reduced by 6.2% year-on-year from 4.04 g/t to 3.79 g/t.
RBPlat attributed the reduction in grade to “higher-than-planned on-reef dilution at Styldrift associated with the negotiation of a known fault structure to the south and west of the shaft infrastructure on 600 Level”.
The company expects 4E grades at Styldrift to stabilise at the 3.30 g/t mark during the second quarter of this year, following the completion of negotiations of the fault structure.
Meanwhile, BRPM’s grades reduced marginally by 0.7% and remain in line with RBPlat’s expectations.
Costs
For the quarter under review, cash operating costs increased by 12.2% to R701-million, owing to higher production volumes and labour-cost-related inflation.
The cash operating unit cost for each tonne milled and 4E ounce produced were 6.8% and 7.2% higher than in the comparative 2016 period at R1 227/t milled and R10 823/oz respectively.
“A key operational focus for the business is to improve the fixed/variable cost ratio of our operations to target below- consumer-price-index unit increases for the [full] year.
“As such, we have initiated a formal review process of the entire business to identify opportunities and develop a detailed strategy to implement the changes required,” RBPlat said.
Capex
RBPlat raised its capital expenditure (capex) by 56.6% year-on-year to R370.6-million in the quarter under review.
Expansion capex increased by 87.5% to R346.1-million in line with mining and construction activities geared towards achieving the 150 000 t/m ramp-up at Styldrift.
Replacement capex, meanwhile, reduced by 92% to R2.5-million, owing to current project construction activities. Stay-in-business capex increased marginally from R20.9-million to R22-million.
The BRPM Phase III replacement project, which involves the construction ore handling infrastructure on the 14 and 15 levels, remains on schedule. Project expenditure for the quarter amounted to R2.5-million, bringing the total project expenditure to date to R1.04-billion.
Meanwhile, activities at the Styldrift I expansion project, during the quarter, were focused on continuing with decline access to the north and south development on both the 600 and 642 levels to establish stoping sections, as well as ongoing development and construction work on 600 Level to establish workshops, stores and material bays.
Work also continued on mining and construction activities to support raise- boring, as well as sliping and lining of rock passes and water handling infrastructure on the 642 and 708 levels. The services shaft was also equipped and construction of the overland belt undertaken.
RBPlat invested R346-million in capex in the Styldrift I expansion project during the quarter, taking total expenditure on the project to date to R6.8-billion.