RBPlat revenues, production up
by MTHULISI SIBANDA
JOHANNESBURG – ROYAL Bafokeng Platinum (RBPlat) has defied protracted industry strikes to record increases in revenue and output.
The South African-based miner announced 33 percent increase in headline earnings per share, 18 percent increase in revenue, 3 percent increase in production and R2.2 billion cash on hand for the half year ended June 30.
Revenue increased by R1.8 billion (compared to R1.5 billion for the six months ended 30 June 2013) while production increased by 134 229 PGM ounces (4E).
Although operating costs remain a challenge for the industry – RBPlat’s cash operating cost per tonne increased by 7,2 percent during the period under review to R983 – the company successfully achieved its target of managing cost increases to below 10 percent – and these costs were largely offset by the additional milled volumes.
RBPlat’s performance was, in contrast, marked by operational stability and, on 16 July 2014 the company announced a long-term wage agreement.
The highlight of the six month period was, according to CEO Steve Phiri, the conclusion of a long-term wage agreement with employees, represented by the National Union of Mineworkers (NUM), without any form of industrial action.
“Both parties conducted negotiations in a constructive and mature manner and we are grateful to our employees for continuing to focus on the business at hand during this turbulent period for the industry,” said Phiri.
Phiri said that both the wage agreement and the home ownership scheme, by contributing to the wellbeing of employees and their families, will contribute to future stability of the company.
“These developments will also make the workplace safer. And because we are committed to keeping our employees safe from any harm, it will help us to build on our much improved 2013 safety record.
“Ultimately this will benefit our providers of capital and all our stakeholders and we therefore are confident that we will achieve the anticipated 2.3 to 2.4 million tonnes of full year production,” Phiri said.
– CAJ News
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