RBPlat CEO Steve Phiri
Photo by: Creamer Media's Dylan Slater
JSE-listed Royal Bafokeng Platinum (RBPlat) subsidiary Royal Bafokeng Resources has reached an agreement to deliver a portion of its gold production to Canadian investment firm Triple Flag Mining Finance Bermuda over the life of its operations for an upfront payment of $145-million, or R2.1-billion.
Additionally, Triple Flag will pay a further 5% of the gold spot price to RBPlat for each gold ounce delivered under the agreement.
RBPlat produces gold as a by-product of platinum group metals production, with gold accounting for about 3% of its revenue.
Triple Flag will receive 70% of RBPlat’s gold production up to 261 000 oz, and after 261 000 oz are delivered, Triple Flag will receive 42% of gold production for the remaining life-of-mine.
RBPlat CEO Steve Phiri said the agreement would help to strengthen the company’s balance sheet.
He added that the company would launch a Triple Flag scholarship programme for RBPlat employees’ families and doorstep communities.
The scholarship will support the studies of more than 50 young future engineers, geologists and other technical professions over the life of the operations and will be funded through a contribution of $100 000/y from Triple Flag, starting in 2020.
“The agreement represents the ideal long-term partnership for Triple Flag, comprising a mutually beneficial investment into a world-class resource and operation with a partner committed to ethical mining and the creation of value for all its stakeholders,” said Triple Flag CEO Shaun Usmar.