https://www.miningweekly.com
Business|Gold|Mining|Platinum|PROJECT|Safety|Maintenance
Business|Gold|Mining|Platinum|PROJECT|Safety|Maintenance
business|gold|mining|platinum|project|safety|maintenance

External factors weigh on RBPlat’s third-quarter performance

21st October 2022

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

Font size: - +

Despite an improvement in recoveries at its Maseve mine, platinum group metals miner Royal Bafokeng Platinum (RBPlat) recorded a 10.2% reduction in tonnes hoisted to 1.2-million tonnes and a 4.9% reduction in tonnes milled, at 1.19-million tonnes, for the third quarter of the year.

The miner attributes its reduced production to several factors, including high inflationary pressures as a result of global supply chain disruptions and market volatility, the Covid-19 pandemic and unreliable electricity supply.

In addition, RBPlat reports that, because of ongoing uncertainty caused by the current corporate action, there are signs of safety- and production-related impacts.

As a result of these challenges, the miner’s production of concentrate of platinum, palladium, rhodium and gold (4E) declined by 6.2% to 119 100 oz during the period.

For the year to date, total tonnes hoisted amounted to 3.54-million tonnes – a 1.1% increase year-on-year.

For the year-to-date, RBPlat milled 3.49-million tonnes – a 2.5% increase against the nine months to September 30, 2021.

At period’s end, RBPlat had net cash of R5.11-billion, up from the R4.88-billion as at June 30, while the miner also had R3-billion in debt facilities available.

Cash movements for the quarter included the payment of about R711-million for the interim dividend.

Total capital expenditure for the reporting period increased by 10.8% to R466.4-million in line with project and operational stay-in-business capital requirements. Expansion capital expenditure for the quarter decreased year-on-year by 20.6% to R81.9-million.

BRPM

At its Bafokeng Rasimone platinum mine (BRPM), RBPlat increased its tonnes hoisted year-on-year by 4%, to 709 000 t, with Merensky reef production contributing 314 000 t and Upper Group 2 (UG2) reef contributing 2.39-million tonnes.

Tonnes milled at BRPM increased by 9.6% to 741 000 t, with UG2 tonnes milled accounting for 56.1%, or 416 000 t, of BRPM ore milled during the period under review.

Year-to-date tonnes milled increased by 8.5% to two-million tonnes, with UG2 accounting for 54.5% of BRPM tonnes milled.

The built-up head grade for the quarter and year to date improved marginally to 3.96 g/t 4E and 3.88 g/t 4E, respectively, compared with 2021. The increased volumes and improved head grades have resulted in increased 4E ounce production for both the quarter and year to date of 12.4% and 10.2% to 78.1 oz and 204 700 oz, respectively, compared with 2021.

BRPM cash operating costs for the quarter and year to date increased by 18.3% and 19% to R1.24-billion and R3.30-billion, respectively.

Unit cash costs for the quarter increased by 8% and 5.3% to R1 680/4Eoz and R15 941/4Eoz, respectively, while year-to-date unit costs increased by 9.6% to R1 689/t and by 8% to R16 556/4Eoz.

STYLDRIFT

At RBPlat’s Styldrift mine, total reef tonnes hoisted for the reporting period decreased year-on-year by 24.9% (164 000 t) to 494 000 t. The key contributor to the lower performance is the Section 54 1(a) stop notice issued following a fatal accident on September 11.

Quarterly stoping production was further impacted by the temporary loss of face length in the higher-grade north-western production sections as these sections negotiate and re-establish through a known fault feature.

As such, tonnes milled for the quarter decreased year-on-year by 22% to 446 000 t, while year-to-date tonnes milled declined by 4.7% to 1.49-million tonnes.

The built-up head grade for the quarter and year to date declined by 8.6% and 5.7%, to 3.51 g/t 4E and 3.61 g/t 4E, respectively. The reduction in built-up head grade is owing to the re-establishment of stoping sections in the north west resulting in an increase in on-reef mining dilution and lower higher-grade stoping tonnage contribution to the overall ore mix.

However, RBPlat reports that the built-up head grade is expected to improve during the fourth quarter as these sections successfully re-establish and stoping volumes improve.

Styldrift’s cash operating costs for the quarter and year to date increased by 14.8% and 18.9%, to R1.25-billion and R3.43-billion, respectively. The increase in cash costs is attributable to increased mining consumables, secondary support and trackless fleet maintenance costs and on-mine inflation.

Going forward, RBPlat has revised its milling guidance for the full-year from a previously forecasted 4.65-million to 4.9-million tonnes, to its revised 4.6-million to 4.7-million tonnes.

This, the miner says, is expected to yield 4E production of between 455 000 oz and 470 000 oz at a built-up head grade of 3.76 g/t.

In addition, cash operating unit costs for the group are now forecast to be between R19 500/4Eoz and R20 500/4Eoz, compared to the previous range of R18 500/4Eoz and R19 000/4Eoz.

Group capital expenditure has also been revised lower to R2-billion from a previously forecasted R2.2-billion, with stay-in-business expenditure to range between 7% and 8% of operating cost for the year.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.109 0.144s - 107pq - 2rq
Subscribe Now