Royal Bafokeng Platinum (RBPlat) said on Friday its full-year guidance remains unchanged due to the continued strong Bafokeng Rasimone Platinum Mine (BRPM) production and improved concentrating volumes.
The share price on Fridayell 2.42% to R145.
In its quarterly review and production report – for the period January 1, 2023, to March 31, 2023 – the mid-tier miner said full-year guidance remained at 470 000 to 490 000 ounces of four metals it produced (4E), subject to any unforeseen operational disruptions.
Total tonnes hoisted decreased by 2.4% to 1 085 million tonnes, as it was affected by operational difficulties at its Styldrift mine. It said the sustained strong operational performance from BRPM was unable to offset the under-performance from Styldrift.
RBPlat said BRPM tonnes hoisted increased by 4.6% to 639 million tonnes, while Styldrift decreased by 10.8% to 446 million tonnes.
"Despite the ongoing challenges at Styldrift, management remains confident that the operational strategies implemented will yield improved volume, grade and cost performance during the second quarter," it said.
Total tonnes milled for the reporting period increased by 6.6% year-on-year to 1 192 million tonnes.
RBPlats reported that the built-up head grade decreased by 6.3% year-on-year to 3.55g/t (4E) due to a 3.9% and 9.1% reduction in BRPM and Styldrift head grades to 3.70g/t (4E) and 3.38g/t (4E), respectively.
"The reduction in head grade is mainly attributable to an increase in on-reef mining dilution currently being experienced at Styldrift, with a change in the UG2 mining mix and facies impacting BRPM," the group said.
Cash operating costs increased by 20.2% to R2.4 billion for the reporting period compared to 2022.
"The increase in operational expenditure is attributable to an increase in total tonnes milled, increase in BRPM mining volumes, sustained inflationary pressures and abnormally high trackless fleet related costs at Styldrift," it said.
Meanwhile, the bidding war to acquire RBPlat came to an end earlier this month when Northam Platinum, which fought against Impala Platinum’s acquisition of RBPlat, withdrew its offer after announcing on April 5 that it was terminating its proposed offer following a drop in platinum group metal (PGM) prices.
On April 6, RBPlat said the Independent Board confirmed that the offer by Impala , as set out in the Impala offer circular dated January 17, 2022, continues to be the only offer made to RBPlat shareholders.
"As set out in the announcement released by Impala on March 29, 2023, the longstop date and the closing date for the offer by Impala have been extended to April 28, 2023," it said.
Impala is close to gaining majority control of RBPlat and has been steadily buying shares. It now owns a 44.48% stake.
BUSINESS REPORT