Royal Bafokeng Platinum (RB Plat) expects to report a loss of between 10,5c a share and 13.5c a share for the six months to end-June which would represent an improvement of between 10% and 30% on the 15c a share lost in the previous comparable period of 2017.
In a trading statement released this morning RB Plat said the group also expected to report a headline loss of between 4.5c a share and 7.5c a share for the six months which would represent an improvement of between 51% and 70.6% on the headline loss of 15.3c a share reported in the comparable period of 2017.
RB Plat indicated it would report an improved operating and financial performance reflecting a 6% drop in cash operating costs and an estimated 13% rise in the basket price received on metal sales but said earnings were negatively hit by two items.
The first was a R25.9m impairment on the feasibility study costs previously capitalised in respect of the Styldrift concentrator plant which was originally envisaged to be built as an addition to the BRPM concentrator plant.
The second was a charge of R20.5m in care and maintenance and “operational readiness” costs in respect of the newly acquired Maseve concentrator plant and mine in anticipation of the plant commissioning and ramping-up in the second half of 2018.
RB Plat has acquired the Maseve mine from Toronto-listed Platinum Group Metals (PTM) following a deal struck in September last year. Final approval for the transaction was granted by the Department of Mineral Resources in April.
RB Plat expects to release its interim results on or about August 6.
