Make Kitco Your Homepage

PGM producer Royal Bafokeng’s earnings down 58% in H1 2022 due to lower metal prices, higher costs

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - South African platinum group metals (PGM) producer Royal Bafokeng Platinum (JSE: RBP) announced today that in H1 2022, its PGM production increased by 4.5% on the back of a strong BRPM performance.

However, despite production growth, the company estimated that basic earnings per share for the six months ended 30 June 2022 amounted to 765.4 cents, a decrease of 58.4% compared to basic EPS of 1,840.2 cents for the previous corresponding period.  

The company said that earnings decrease was mainly due to the decline in the PGM basket price; decrease in the Impala royalty income; on-mine inflation being higher than CPI; and increase in the income tax expense and the state royalty charge following the depletion of the unredeemed capital allowance balance.

RBPlat mines platinum group metals in the Merensky and UG2 reefs on the Boschkoppie, Styldrift and Frischgewaagd farms in the Rustenburg area, South Africa, which have been identified as hosting the last undeveloped Merensky reef on the Western limb of the Bushveld complex.

The company indicated that its assets are the only known significant shallow high grade Merensky resources and reserves still available for mining in South Africa.


Anglo Pacific posts record $49.2M portfolio contribution in Q2, says commodity prices have pulled back

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.