Despite platinum group metals (PGMs) miner Royal Bafokeng Platinum’s (RBPlat’s) production for the six months ended June 30 having increased by 4.5% on the back of a strong performance at the Bafokeng Rasimone platinum mine, the miner says its basic earnings a share and headline earnings a share will decrease year-on-year.
RBPlat is finalising its financial results for the six months and attributes the decline in earnings to a decrease in the PGMs basket price and a decrease in the royalty income from Impala Platinum.
On-mine inflation, which is higher than the consumer price index, and an increase in the income tax expense and the State royalty charge following the depletion of the unredeemed capital allowance balance, also added cost pressures.
As such, earnings a share for the six months are likely to be R7.65 a share – a decrease of 58.4% year-on-year, while headline earnings a share are likely to be R7.67 apiece – a decrease of 58.1% year-on-year.
RBPlat will publish its results for the six-month period on August 2.