03 Aug - 6 min read

Condensed Consolidated Interim Results for the six months ended 30 June 2021 – Short Form Announcement

Condensed Consolidated Interim Results for the six months ended 30 June 2021 – Short Form Announcement

ROYAL BAFOKENG PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2008/015696/06)
JSE share code: RBP ISIN: ZAE000149936
JSE bond code: RBPCB ISIN: ZAE000243853
("RBPlat" or the "Company" or the “Group”)


CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021 – SHORT FORM
ANNOUNCEMENT

KEY FEATURES OF OUR PERFORMANCE

Financial

    -       EBITDA of R5 499.1 million (H1 2020: R2 087.8 million)
    -       Headline earnings per share of 1 831.9 cents (H1 2020: 335.3 cents)
    -       Net cash position of R3 625.2 million (H1 2020: R701.8 million)
    -       Conversion and partial buy-back of R1.2 billion convertible bonds
    -       535.0 cents per share interim dividend declared

Operational

    -       Slow start to the year due to Covid-19 and a fatal injury at Styldrift in December 2020
    -       33.1% increase in tonnes milled to 2 160kt (H1 2020: 1 623kt)
    -       5.5% decrease in 4E built-up head grade to 3.81g/t (H1 2020: 4.03g/t)
    -       24.3% increase in 4E ounces to 215.7koz (H1 2020: 173.5koz)
    -       Cash cost per 4E ounce decreased by 0.2% to R16 649 (H1 2020: R16 685)

More than Mining

    -       One fatal injury
    -       35.1% decline in total injury frequency rate
    -       16.1% improvement in serious injury frequency rate
    -       Commenced vaccination of our employees
    -       R2.0 billion procurement spend from historically disadvantaged businesses

Natural

    -       Reviewed and updated our sustainability framework, climate change strategy and policy and energy
            management strategy
    -       392.62Ml of water treated at the BRPM water treatment plant, which amounts to 38.7% of potable
            water consumed at the BRPM concentrator plant

OPERATING AND FINANCIAL STATISTICS

 Description                                                  Unit         30 June 2021      30 June 2020   % change
 Revenue                                                      R’m          9 584.3           4 606.0        108.1
 4E ounces produced                                           koz          215.7             173.5          24.3
 Pt ounces produced                                           koz          138.8             112.7          23.2
 Cash operating cost/tonne milled                             R/t          1 663             1 784          6.8
 Cash operating cost/4E ounce                                R/oz          16 649            16 685         0.2
 Cash operating cost/platinum ounce                          R/oz          25 873            25 695         (0.7)
 Capital expenditure                                          R’m          830               780            (6.4)
 EBITDA margin                                                 %           57.4              45.3           26.7
 Earnings per share                                       cents/ share     1 840.2           338.0          444.4
 Headline earnings per share                              cents/ share     1 831.9           335.3          446.3


OVERVIEW

During the first half of the year, the PGM market continued to be characterised by buoyant dollar
basket prices, mildly tempered by the rand’s strength, yielding a record rand basket pricing
environment and strong operating cash flows. However, the Covid-19 pandemic remains at the
forefront of our strategic planning having progressed through the second wave during January with
the third wave resurgence starting mid-June. We continue to maintain appropriate measures to limit
the spread of the virus, maintaining a safe operating environment for our employees and limiting the
impact on our production.

Sadly, despite recording improvements in both our lost time and serious injury frequency rates for
the reporting period, we recorded one fatal accident at our BRPM operation. On 12 May 2021, Mr
Mavie was fatally injured in a fall of ground incident at BRPM North shaft. The Board of Directors
(the Board) and management wish to extend their sincere condolences to the family, friends and
colleagues of Mr Mavie.

Our lost time injury frequency rate (LTIFR) and serious injury frequency rate (SIFR) improved by 1.3%
and 16.1% respectively, with the total injury frequency rate (TIFR) declining by 35.1%.

Notwithstanding an increase in tonnes hoisted, milled and metals in concentrate compared to the
first half of 2020, our overall performance did not meet our expectations with the Covid-19
pandemic disrupting operational and project construction performance in both the first and second
quarters.

The first quarter performance was severely disrupted by reduced labour availability, during the post
festive break ramp-up, due to increased infection rates and slow return of foreign national
employees due to the second wave of the Covid-19 pandemic. Complications related to the re-
issuing of work permits to foreign nationals employed by the new volume contractors at BRPM,
Eskom load curtailment, adverse weather conditions and the loss of operating momentum at
Styldrift due to a fall of ground fatal accident during December 2020, further impacted our first
quarter performance.

The loss in operating momentum following the December fall of ground fatal accident and delays in
the commissioning of the remaining spare IMS sections have impacted Styldrift’s ability to leverage
its installed infrastructure capacity effectively.

Completing the required construction milestones to secure the required IMS flexibility and
embedding operational maturity and efficiency remained a key focus for the operational team.

Despite continued steady progress being made on the Maseve MF2 180ktpm and the BRPM tailings
storage facility upgrades, there have been further delays at the Maseve MF2 project, with the
commission of the upgrade being postponed to the fourth quarter of 2021.

Over the first half of 2021, 4E metals in concentrate production increased by 24.3% to 215.7koz,
while our unit cost per 4E ounce decreased by 0.2% to R16 649.


DECLARATION OF DIVIDEND

The Board is pleased to advise shareholders that the directors have 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 dividend was
declared from retained earnings and will be subject to a dividend withholding tax of 20% for all
shareholders who are not exempt from or do not qualify for a reduced rate of withholding tax. The
net dividend payable to shareholders subject to the withholding tax rate of 20% amounts to 428.0
cents per ordinary share. The issued share capital at the declaration date is 289 016 546 ordinary
shares and the Company’s tax number is 9512379166.

The salient dates relating to the dividend payment are as follows:

 Declaration date                                                           Tuesday, 3 August 2021
 Last day for trading to qualify and participate in the                    Tuesday, 24 August 2021
 final dividend
 Trading ex-dividend commences                                         Wednesday, 25 August 2021
 Record date                                                                 Friday, 27 August 2021
 Dividend payment date                                                     Monday, 30 August 2021


Share certificates may not be dematerialised or rematerialised between Wednesday, 25 August 2021
and Friday, 27 August 2021 both days inclusive. Any changes to the dividend instruction will be
announced on the JSE Stock Exchange News Service.


OUTLOOK AND COMPANY GUIDANCE

During the second half of the year we will continue to focus our efforts on improving our key injury
frequency rates in support of creating a zero harm operating environment.

Our key operational focus areas for the second half of 2021 are aimed at developing operating
maturity to leverage the infrastructure capabilities of Styldrift. Our operational focus will be on
improving the consistency with which crews meet production targets for stoping and developing by
maintaining focus on our key operational metrics.

Production guidance for the full year is 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.

Group capital expenditure is forecast to remain unchanged at approximately R2.2 billion, with SIB
expenditure between 6% and 8% of operating cost for the year.


SHORT FORM ANNOUNCEMENT

This short-form announcement is the responsibility of the directors. It is only a summary of the
information contained in the full announcement and does not contain full or complete details. Any
investment decision should be based on the full announcement accessible from Tuesday, 03 August
2021, via the JSE link https://senspdf.jse.co.za/documents/2021/jse/isse/RBP/H121Result.pdf and
also available on the Company’s website at https://www.bafokengplatinum.co.za/annual-results.php

These condensed consolidated interim financial statements have been reviewed by KPMG Inc., who
expressed an unmodified review conclusion thereon.

Copies of the full announcement may also be requested by contacting Royal Bafokeng Platinum
Investor Relations by email at lindiwe@bafokengplatinum.co.za and are available for inspection at
the Company’s registered office at no charge, on weekdays during office hours. The forecast
information contained in this short form announcement has not been audited, reviewed or reported
on by the Company’s auditors.


Johannesburg

03 August 2021



JSE Sponsor

Merrill Lynch South Africa Proprietary Limited t/a BofA Securities



For further information, please contact:

Lindiwe Montshiwagae

Executive: Investor Relations and Corporate Communications

Tel: +27 (0)10 590 4510

Email: lindiwe@bafokengplatinum.co.za

Date: 03-08-2021 07:05:00
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