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RBPlat posts FY loss, delays projects

RBPlat posts FY loss, delays projects

Photo by Duane Daws

1st March 2016

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Ongoing depressed market conditions and a low commodity price environment have prompted South African platinum miner Royal Bafokeng Platinum (RBPlat) to delay some of its capital projects.

During the second half of the 2015 financial year, RBPlat had scaled down mining and construction activities at its Styldrift I expansion project, deferred the 250 000 t/m Bafokeng Rasimone Platinum Mine (BRPM) concentrator upgrade to early 2016, deferred the construction of a 100 000 t/m concentrator module and deferred the Styldrift II feasibility study and exploration drilling, besides other initiatives to reduce noncritical expenditure.

The platinum miner, which on Tuesday posted a headline loss a share of 83c for the 2015 financial year, compared with headline earnings a share of 239c the year before, said the start of ramp-up at the Styldrift I expansion project had been delayed by 12 months, with steady-state production of 230 000 t/m to be achieved in the first quarter of 2020.

Meanwhile, RBPlat attributed the headline loss a share to a 13% drop in the average rand basket price for platinum, higher costs and the settlement of a tax dispute with the South African Revenue Service.

“The 2015 financial year was a challenging one for the industry and for ourselves. The reduced demand for platinum-group metals; an average dollar platinum price that was 28% lower than the previous year; lower throughput due to safety stoppages and power constraints; and lower grades contributed to revenue of R3.04-billion, 19% lower than in 2014.

“Lower revenue, together with a 6% increase in the cost of sales, resulted in a significant reduction in gross profit margin from 23% in 2014 to a gross loss margin of 1% in 2015,” the company pointed out.

Edited by Creamer Media Reporter

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