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RBPlat expects H1 loss

13th July 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Lower platinum basket prices, a R110-million tax settlement with the South African Revenue Services, mine stoppages and lower-grade upper group two reef mining, have contributed to Royal Bafokeng Platinum  recording losses for the six months ended June 30.

The platinum miner expected to report a loss a share and headline loss a share of between 52c and 69c for the six months, compared with earnings a share and headline earnings a share of 116c for the six months to June 2014.

The JSE-listed company added that reduced Merensky reef production, reduced concentrator plant availability and output owing to recurrent stoppages related to the increased frequency of State-owned power provider Eskom’s load curtailments, together with more unscheduled maintenance and repairs and cost increases primarily attributable to the front-end loaded nature of wage increases in terms of the five-year wage agreement, combined with above-inflationary utility cost increases, had also contributed to the losses.

Normalised earnings a share for the six months under review, after adjusting for an additional after-tax effect of amortisation and depreciation charge related to a fair value adjustment, as well as the one-off tax charge were anticipated to be between 4c and 21c, or between 97% and 84.2% lower than the 133c recorded in the six months to June 2014.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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