RBPlats emphasises revised strategy in FY results

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The mid-tier platinum group metals (PGMs) producer saw revenue increase to 3.25 billion rand for the year ending 31 December 2013 from 2.86 billion rand for the same period in 2012.

“In many ways 2013 has seen the culmination of our efforts to achieve our long-term strategic objectives, which was made possible by the support and commitment of our employees, the unions and the communities in which we operate. The Styldrift I project remains on schedule and on budget with a strong performance in 2013,” [DATA RBP:Royal Bafokeng Platinum Limited] (RBPlats) said.

“An important development in 2013 has been the development of our revised ore processing strategy. We believe that the revised strategy will further augment our current operational strategies to ensure our long-term sustainability in the current macroeconomic environment, without sacrificing future UG2 treatment requirements should market conditions improve.”

(READ MORE:Royal Bafokeng set to reduce capex)

Cash generated by operations was up 27.4 per cent from 687.3 million rand for the year ended 31 December 2012 to 875.8 million rand for the 2013 period.  

“From a strategic perspective this has been one of the most important structural improvements we have achieved to date. It has contributed to a number of important performance improvements in safety, grade, labour productivity and ultimately our operating costs that we achieved in 2013,” RBPlats said.

Profit before tax rose 69.5 per cent from 361.3 million rand in 2012 to 612.5 million rand in 2013, net profit for the year increased from 275.7 million rand to 447.8 million rand and diluted earnings per share was up 66.3 per cent from 104 cents to 173 cents.

(READ MORE: Royal Bafokeng expects growth in FY2013 HEPS)

“RBPlat’s focus for 2014 will be on protecting our business continuity through maintaining flexibility in the business, honouring our social licence to operate and the successful negotiation of a mutually beneficial wage agreement with our workforce. We forecast our total capital expenditure for 2014 to be approximately 2.4 billion rand, increasing to about 3.1 billion rand in 2015,” it said.

“We will also need to finalise our funding solution for the Styldrift I project through the combination of an equity capital raising and a structured debt funding package during 2014. In this regard the increase in activity at Styldrift I with the resultant increase in capital expenditure will be a major focus for the business during 2014.”