Royal Bafokeng expects growth in FY2013 HEPS

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This compared to headline earnings per share (HEPS) and earnings per share (EPS) of 104 cents for the year ended 31 December 2012.

“Normalised EPS for the year ended 31 December 2012, after adjusting for an additional amortisation and depreciation charge related to a fair value adjustment is anticipated to be between 200 cents and 220 cents compared to normalised EPS of 142 cents for the previous corresponding period,” [DATA RBP:Royal Bafokeng Platinum Limited] (RBPlat) said.

“The expected increase in EPS, HEPS and Normalised EPS is primarily due to higher sales volumes and higher rand basket prices due to the rand weakening against the US dollar in 2013 compared to 2012 as well as good cost containment resulting from improved mining flexibility and specific cost reduction strategies.”

The South African platinum group metals producer, which is expecting its results for the year ending 31 December 2013 to be released on or around 4 March 2014, announced in November last year that it would significantly reduce its planned capital expenditure by 750 million rand.

“RBPlat announced on 21 June 2012, that it had introduced cash preservation measures in response to the difficult market conditions, at the time characterised by the softening of Platinum Group Metals (PGM) prices as a result of a weaker demand for PGM’s as well as local cost pressures,” it said.

“To this end, the company identified opportunities to defer expenditure in the short to medium-term on certain non-critical items without any material negative impact on the business.”