by TINTSWALO BALOYI

JOHANNESBURG – ROYAL Bafokeng Platinum has announced a substandard set of results for 2015.

This was compounded by the loss of five employees during the period.

“The FY (full year) 2015 financial year was a challenging one for the industry and for ourselves,” the mining firm stated.

It said the reduced demand for platinum group metals, an average US$ platinum price that was 28 percent lower than the previous year, lower  throughput due to safety stoppages and power constraints and lower grades
contributed to annual revenue of R3 billion, 19 percent lower than in FY2014.

Lower revenue, together with a 7,6 percent increase in the cost of sales(costs of sales excluding depreciation and amortisation ) resulted in a significant reduction in eearnings before interest, taxes, depreciation and amortization (EBIDTA) margin to 9,8 percent.

RBPlat made a headline loss of 83 cents per share in the period under review, compared to headline earnings of 239 cents per share the previous year. This negative movement can be attributed to several factors including the 13 percent reduction in the average rand basket price of R17 256/Pt ounce, an increase in cash costs and the settlement of a tax dispute with South African Revenue Service.

The company mourned the loss of five employees.

It said the deaths marred its otherwise promising safety achievements.

RBPLat said its key challenges in the current year were a return to FY2014 productivity levels by ensuring operational stability, volume delivery and grade optimisation.

“We also need to maximise cash flow by containing costs. In addition to achieving operational excellence we need to ensure zero fatalities as well as to maintain our safety improvements,” said Steve Phiri, RBPlat Chief Executive Officer.

– CAJ News