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Platinum group metals producer Royal Bafokeng boosts earnings per share 446% in H1 2021

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(Kitco News) - South African platinum group metals (PGMs) producer Royal Bafokeng Platinum (JSE: RBP) reported today that over the first half of 2021, the company’s 4E PGMs metals in concentrate production increased by 24.3% to 215.7koz, while its unit cost per 4E ounce decreased by 0.2% to R16,649 (~$1,163).

The company added that its EBITDA of R5,499.1 million (~$384 million) in H1 2021 was 163% higher compared to H1 2020 EBITDA of R2,087.8 million (~$146 million), whereas headline earnings per share in H1 2021 were 1,831.9 cents, an increase of 446% compared to H1 2020 earnings of 335.3 cents.

Royal Bafokeng also announced that its Board has approved the declaration of the company’s maiden interim dividend amounting to a gross cash dividend of 535.0 cents per ordinary share from the profits accrued during the six-month period ended 30 June 2021.

The company noted that its production guidance for the full year has been revised to between 4.60Mt and 4.75Mt at a 4E built-up head grade of between 3.90g/t and 3.93g/t. 4E ounce production is expected to be between 475koz and 485koz for the year. Total cash operating costs per 4E ounce for the group are forecast to be between R15,825 and R16,150.

Royal Bafokeng mines PGMs in the Merensky and UG2 reefs on the Boschkoppie, Styldrift and Frischgewaagd farms in the Rustenburg area of South Africa which have been identified as hosting the last undeveloped Merensky reef on the Western limb of the Bushveld complex. RBPlat’s assets are the only known significant shallow high grade Merensky resources and reserves still available for mining in South Africa.

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