RBPlat declares R1.5bn interim dividend

ROYAL Bafokeng Platinum (RBPlat) yesterday became the latest platinum group metals (PGM) producer to reward shareholders handsomely after posting record profits and a robust operational performance.

RBPlat, which listed on the JSE a decade ago, declared a 535 cents a share interim dividend for the half year ended June 2021 equating to R1.5 billion on the back of a strong metal price environment and a strong operational performance.

RBPlat, which operates the Styldrift and the Bafokeng Rasimone Platinum Mine (BRPM) in North West, is on a positive trajectory after paying a maiden R1.5bn dividend for the year ended December 2020.

RBPlat declared a 108 percent growth in revenue for the six months to R9.584bn, supported by strong PGM basket prices and the growth in the business.

“Although our first-half production was restricted by the slow restart of operations resulting from the Covid-19 second wave and other operational challenges, we increased PGM production by 24.3 percent to 215 700 ounces of 4E,” said RBPlat.

RBPlat said the BRPM contributed 116 100 ounce of 4E production, 16.4 percent higher than a year earlier, while Styldrift’s production increased by 35 percent to 99 600 ounces of 4E.

RBPlat said platinum had contributed 22.2 percent to revenue from operations in the six months, down from 28.1 a year earlier to the revenue and rhodium contributed 65.9 percent up from 60.6 percent a year earlier.

The group said the basket price per 4E ounce had jumped by 50.1 percent to R42 600 from R28 388 a year earlier, mainly driven by an increase in palladium and rhodium prices.

This was offset by a stronger rand with the average exchange rate received for the period at R14.01 per US dollar, compared to R17.53 per US dollar in the previous comparative period.

Chief financial officer Hanre Rossouw said: “Yet again the top performer in our revenue basket was rhodium with the average price increasing threefold to $25 388 (R36 5709) an ounce. We capitalised on its strong performance.”