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ROYAL BAFOKENG PLATINUM LIMITED - Audited Annual Results for the Year Ended 31 December 2014

Release Date: 03/03/2015 07:30
Code(s): RBP     PDF:  
Wrap Text
Audited Annual Results for the Year Ended 31 December 2014

Royal Bafokeng Platinum Limited 
Registration number: 2008/015696/06 
Share code: RBP
ISIN: ZAE000149936
(“RBPlat” or the “Company” or “Group”)

         
AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014


KEY FEATURES

-  Labour stability
-  13% improvement in lost time injury frequency rate
-  5% increase in 4E ounce production
-  7% increase in cost per 4E ounce
-  R1.43 billion in net cash generated by operations
-  Cash on hand at year end of R1.86 billion


COMMENTARY

Overview
The operational stability, continuity and flexibility which have been a hallmark of our business are a consequence of the commitment 
to driving business performance and strategy demonstrated by our leadership, employees and organised labour. In 2014 our shareholders’
support of our equity raising programme for Styldrift I demonstrated their confidence in our ability to maintain this performance and 
deliver against our organic growth strategy.  Through their ongoing support our investors also endorse our declared commitment to seek 
and deliver the good from mining and to leave a lasting legacy of sustainable benefits for all our stakeholders.

Human capital
Safety, health and wellness
One of the key factors that influence how RBPlat goes about achieving its strategic objectives is its commitment to keeping our people 
safe and healthy. It was therefore disappointing to have not met our objective of zero harm at our operations, with two of our 
employees sadly losing their lives in two separate incidents during October 2014, one of which occurred at our BRPM operation and the 
other at our Styldrift I project. On Saturday, 4 October 2014, Mr Xadreque Chihungo, who was employed as  a stage hand by Shaft 
Sinkers, was fatally injured in a shaft-related incident at Styldrift I. This is the second fatal accident at Styldrift, the previous 
fatal accident occurring in 2010. On Friday, 10 October, Mr Refumane Petrose Kanono, who was employed as a loco operator by JIC, was 
fatally injured in an underground accident at BRPM’s South shaft, when he was trapped by a ventilation door. Post year end we also had 
a fatal accident as a result of a fall of ground at BRPM in January 2015. On Thursday, 8 January 2015, Mr Amelio Paquette, who was 
employed as a winch operator by JIC, was fatally injured when he was trapped during a fall of ground in a stope panel at BRPM’s North 
shaft. The Board extends its condolences to the families, friends and colleagues for their loss. We remain confident, however, that our 
road to resilience safety programme supported by our strategy of strengthening the barriers that prevent injuries will enable us to 
achieve our safety targets and objectives. Since implementing the programme in 2010 we have achieved a 46.7% and 45.6% reduction in our 
lost time injury frequency rate (LTIFR) and serious injury frequency rate (SIFR), respectively. Our LTIFR reduced from 1.001 in 2010 to 
0.533 in 2014, with our SIFR reducing to 0.289 in 2014 from 0.531 in 2010.

We are encouraged by the increase in the number of people screening and testing for TB. We embarked on various campaigns, which 
included the communities within which we operate to increase awareness of knowing one’s status with regard to TB and the treatments 
available to them. We are also encouraged by the 15% increase in voluntary counselling and HIV testing.

The safety, health and wellness of our employees plays an important role in achieving sustained operational continuity and as such it 
will continue to be a major focus during 2015. We remain confident that our focus on these areas, which includes using new technology 
and approaches to keep our people safe, will make it possible for us to achieve our safety, health and wellness objectives.

Labour stability
Labour stability played a very important role in our performance in 2014. RBPlat’s management, the union representatives and our 
workforce all invested and continue to invest time and effort to build a partnership based on trust, mutual respect, transparency and 
fairness. We believe that the willingness of all parties to engage with and respond to each other has established a partnership that 
played a key role in both our labour stability and our pleasing production performance in 2014.

This partnership also resulted in the completion of the first phase of our employee home ownership scheme near Rustenburg, which we are 
justifiably proud of. By the end of the year we had completed 422 houses, 295 employees had signed sales agreements, many of whom have 
already taken occupation of their new homes. We are also pleased about our new wage agreement that we announced on 17 July 2014, which 
extends to 2019.

Social and relationship capital
We completed our Mining Charter commitments, in terms of our social and labour plans (SLPs) covering the period 2010 – 2014, ahead of 
time. Because it was not possible to deliver on all our original commitments due to changed community circumstances, we consulted with 
the communities and agreed on suitable replacement projects, for which we obtained approval from the Department of Mineral Resources 
(DMR). We also, at the request of the communities, included some additional projects, over and above our original commitments. Over the 
five-year period we invested R413.4 million in the SLPs for BRPM and Styldrift I. Our SLPs focused on: basic infrastructure 
(R25.8 million); health support (R22.8 million); SLP human resource development (R280.2 million); education support for schools 
(R32.3 million); job creation and poverty alleviation (R31.3 million); community enterprise development (R2.5 million) and community 
skills development (R12.8 million). Education and skills development is a key focus for us. We were therefore very pleased that our 
investment in maths and science facilities and teaching resulted in very encouraging improvements in maths and physical science marks, 
particularly in the Grade 11 pupils at the Charora High School (a 35% increase in the maths overall pass rate and a 67% increase in the 
physical science overall pass rate). In terms of both skills development and poverty alleviation and job creation, the training we 
provided for community members resulted in 168 of them qualifying as rock drill and winch operators and 71 training as pipe, track and 
ventilation assistants. A number of these community members have been employed in our operations. Our enterprise development programme 
supports the Rustenburg Local Municipality’s prioritisation of SMME support. In this connection we are developing a light industry 
centre that can be used as an incubation facility for SMMEs.

We have planned our SLPS for 2015 – 2019 through consultative engagement with all the relevant community leaders and the Rustenburg 
Local Municipality to ensure our projects integrate with and support its integrated development plan. We await the DMR’s approval of 
our SLPs.

Manufactured capital
Production
Our ongoing focus on safeguarding our operational flexibility by ensuring that immediately stopable reserves (IMS) are maintained at 
optimal levels, with the extraction of the UG2 reef horizon as a supplemental source of ore to our Merensky production, continues to 
pay dividends. It resulted in year-on-year improvements in most key production matrices with increases in tonnes delivered, tonnes 
milled, metals in concentrate and operating efficiencies. This, combined with effective cost management initiatives, has yielded year-
on-year operating unit cost increases below mining inflation.

The year-on-year increase in total development at the BRPM JV in 2014 of 8% from 36.5km to 39.4km is mainly attributable to an increase 
in the working cost development required to maintain our ore reserve and IMS targets and ensure sustainable production. Our IMS face 
length improved by 10% to 6.6km.

BRPM’s overall IMS panel ratio per stoping crew ended at 1.7 for the financial year, which is 13% higher than our target of 1.5 and a 
12% improvement year-on-year. This increase was a direct result of optimisation related to improving the distribution of IMS on a 
level-by-level basis and ensuring development rates and equipping requirements remain aligned with depletion rates. Stoping output 
increased by 4%, with a total of 527 000m2  being mined, compared to 505 000m2  in 2013.

Our delivered tonnes increased by 7% year-on-year to 2 471kt, with Merensky delivered tonnes increasing by 1% to 1 908kt and UG2 
delivered tonnes by 36% to 563kt.

The overall built-up head grade decreased marginally year-on-year by 2%, from 4.38g/t (4E) to 4.29g/t (4E). This reduction, which was 
due to the increased contribution of on-reef development from the Phase III project and UG2 trial mining to our overall run-of-mine 
(ROM) volumes, was in line with expectations.

RBPlat’s total milled tonnes increased by 8% to 2 479kt from 2 301kt in 2013, with 2 112kt and 367kt being milled at the BRPM and 
Anglo American Platinum (Amplats) Waterval concentrators, respectively. The improved milling throughput was as a result of increased 
mining volumes.

Merensky and UG2 mill volumes increased by 27kt and 151kt to 1 914kt and 565kt, respectively, compared to the same period in 2013. 
UG2 contributed 23% of the total tonnes milled. The overall and BRPM concentrator recoveries, which ended marginally lower at 86.05% 
and 86.77%, respectively, are in line with expectations. Toll concentrating recoveries were within expected contractual limits. 
This, combined with the 2% lower built-up head grade and 8% increase in mill volumes, yielded a 5% increase in both 4E and platinum 
metals in concentrate year-on-year, with 294koz and 190koz being produced, respectively.

Work on the first phase of our concentrator upgrade to 250ktpm began in August 2014 as planned and is ongoing. The upgrade has had no 
impact on the overall plant performance. This is being achieved by scheduling project work during normal planned maintenance downtime. 
This project is currently on schedule and within budget.

Operating costs
Our cash operating costs at BRPM increased by 13% year-on-year to R2 361 million. Increased production volumes and our continued focus 
on cost management contained cash unit cost increases to below mining inflation, with the unit cost increases per tonne milled and per 
4E ounce amounting to 4% and 7%, respectively. The unit cost per tonne milled amounted to R957 and the unit cost per 4E ounce was 
R8 040. Cash operating cost per platinum ounce increased by 7.5% to R12 463.

Capital expenditure
Stay-in-business (SIB) capital costs ended the year at R154 million which was R16 million or 12% up from 2013. This increased 
expenditure can mainly be attributed to the construction of a new water treatment facility at BRPM and the upgrading of locomotive 
controllers. SIB capital during 2014, at 7% of operating costs, remained well within our target range of between 6 and 8%.

During 2014 the replacement capital expenditure on the BRPM Phase III project was, as forecast, R204 million. We expect the annual cost 
of this project to be between R180 million and R200 million per annum until it is completed in 2017.

Our expansion capital (including exploration drilling and studies for Styldrift II) expenditure increased by 85% or R628 million to 
R1 365 million. This increased expenditure is mainly related to the increase in construction activities at our Styldrift I project.

Projects
BRPM capital projects
The two key capital projects at BRPM in 2014 were the North shaft chairlift project and the Phase III North shaft Merensky replacement 
project.

North shaft chairlift project
The North shaft chairlift project, which will provide employees with a faster and safer method of transportation into the mine than the 
previous belt riding option, included the development and installation of a chairlift from surface to 5 level. Work on the project, 
which began in June 2011, was completed in October 2014 and the chairlift was commissioned in November 2014. Capital expenditure on the 
project ended within the approved project budget at completion.

Phase III North shaft replacement project
This project, which extends the life of Merensky at BRPM’s North shaft by extending the North shaft Merensky decline system and 
associated infrastructure from 10 level to the mine boundary at 15 level, is scheduled to be completed in 2017. As previously 
mentioned, the project is already making an on-reef development contribution to BRPM’s production.

The overall project is ahead of schedule and is 73% complete against a planned completion of 67% with 8 301 metres of development being 
achieved to date. The cumulative expenditure for the project to date amounts to R789.4 million.

The project is expected to be completed with an estimated saving of R114 million against an approved project budget of R1 409 million.

Styldrift I project
As we advised in August 2014 when we announced our interim results and again in October when we released our third quarter results, 
the hoisting capacity of the Services shaft at Styldrift I has been identified as a key constraint. The Services shaft provides all 
logistical support for underground development and construction work on 600, 642 and 708 levels, including rock hoisting, 
transportation of men and material and all services during the period the Main shaft is being equipped.

Technical analysis highlighted that this constraint will effectively limit the rate at which key infrastructure required for the 
commissioning of the Main shaft and the start of production ramp-up, can be developed, constructed and equipped.

A detailed technical review of the overall underground mining and construction schedule and key constraints was subsequently conducted 
in order to identify ways of mitigating the impact of the constraint on the schedule. It resulted in the following revisions:
-  all construction activities were placed on full calendar operations
-  a double kibble was introduced to reduce shift change delays
-  Services shaft schedule was revised
-  additional columns were installed in the Services shaft to improve concrete and shot-crete delivery to underground construction  
   sections
-  construction of water settlers 1 and 2 was deferred
-  construction of the UG2 and spare reef silos (3 and 4) was deferred
-  lateral development on 642 and 600 levels was rescheduled and rates revised.

The net result of this review is a three-month delay in the Main shaft commissioning, a six-month delay in the start of production 
ramp-up with a commensurate delay in reaching steady state. The Main shaft commissioning, previously scheduled for the first quarter 
of 2015, will now take place in the second quarter of 2015. The start of ramp-up, previously scheduled for the third quarter of 2015, 
is now scheduled for the first quarter of 2016, with steady state being achieved in the first quarter of 2019.

The project baseline schedule has subsequently been revised to incorporate the constraints we identified and reflect the changes in 
execution methodology. The project remains on schedule against the revised baseline with no slippage on the critical path by year end.
The impact of the delay in production ramp-up on the overall BRPM JV output will be partially mitigated by securing additional 
production from BRPM’s South shaft during 2018.

Total capital expenditure on the project for the 2014 financial year was R1 307 million (including the concentrator project, 
contingency and escalation).

By year end R3 818 million of the total capital commitment for the project of R4 552 million had been expended. The capital cost of the 
project remains R11 014 million, as the impact of the delayed Main shaft commissioning and start of ramp-up will be absorbed by savings 
and contingencies. The capital cash flow has been aligned to the revised baseline project schedule, resulting in lower expenditure in 
2015 and higher expenditure in 2016 and concentrator-related construction activities have been delayed to align with the revised ramp-
up requirements.

Financial capital
The Group’s headline earnings increased by R157 million from R283.9 million in 2013 to R440.9 million in 2014. This increase reflects 
the improvement in our PGM rand basket price and cost saving initiatives implemented in 2014.

Our headline earnings per share for 2014 of 239 cents are 38.2% higher than the 173 cents per share reported in 2013.

Our revenue of R3 767.5 million for 2014 was 15.9% higher than the R3 251.1 million for 2013. The increase is due to a 9.7% increase 
in our rand basket price and a 5.2% increase in 4E production volumes. The base metal content of the Merensky reef makes a valuable 
contribution to our rand basket price.

Revenue from production through the BRPM concentrator increased by 13.4% from R2 944.7 million to R3 339.6 million. The 2014 revenue 
number included R5.6 million (2013: R11.9 million) generated from the on-reef development from Styldrift I project.

Revenue from toll concentrating of UG2 increased by 39.7% from R306.4 million in 2013 to R427.9 million in 2014 due to a 26.3% increase 
in toll production volumes and an increase in the rand basket price.
Our gross profit margin improved significantly from 18.5% in 2013 to 23.0% in 2014. This was due to a 15.9% increase in revenue, which 
was offset by a 9.5% increase in cost of sales. This limited increase in the cost of sales was a result of our continued focus on cost 
management in 2014.

BRPM’s average cash unit cost per tonne milled increased by 4% from R920 per tonne milled in 2013 to R957 per tonne milled in 2014. The 
cash unit cost per platinum ounce increased by 7.5% from R11 592 to R12 463 per platinum ounce produced. The BRPM JV remains at the 
lower end of the industry cost curve.

Total SLP expenditure for 2014 amounted to R133.0 million of which R110.3 million was expensed and R22.7 million was capitalised to the 
Styldrift I project. This is 26.4% higher than the 2013 SLP spend of R105.2 million.

Other income decreased by 67.5% from R77.5 million in 2013 to R25.2 million in 2014. The decrease is mainly due to the reduction in the 
royalty income from Implats as a result of industrial action at Implats during the first five months of 2014.

Administrative costs increased by 30.8% from R105.0 million in 2013 to R137.3 million in 2014. The increase was due to: R14.0 million 
relating to the RBPlat housing project; R1.6 million relating to legal fees in respect of the Royal Bafokeng Resources (RBR) tax 
contingency and R4.3 million more gross bonuses paid in 2014 compared to 2013 as a result of improved profitability.

EBITDA as a percentage of revenue increased slightly from 30.0% in 2013 to 31.6% in 2014 as a result of increased revenue and our 
continued focus on cost management performance.

Finance income increased by 125.8% from R42.7 million in 2013 to R96.4 million in 2014 due to the increased cash on hand as a result 
of the bookbuild and rights offer completed in April 2014.

Finance costs increased from R3.7 million in 2013 to R5.1 million in 2014.

Current income tax increased by 51.9% from R15.6 million in 2013 to R23.7 million in 2014 mainly due to the increase in taxable income 
as a result of increased interest income. Deferred tax expense increased by 48.9% from R149.1 million in 2013 to R222.0 million in 2014 
due to increased BRPM JV profits.

In 2013 we advised that we had received a revised tax assessment from SARS for Royal Bafokeng Resources (RBR) for the years 2008, 2009 
and 2010, amounting to R437.5 million, made up of income tax, penalties and interest. Senior counsel has been engaged to advise on this 
issue. We have lodged an objection against these assessments and an application to suspend payment in terms of Section 164 (2) of the 
Tax Administration Act. After SARS disallowed RBR’s objection, RBR lodged a Notice of Appeal in November 2014. Based upon independent 
advice and consultation to date, RBR remains confident that it has a reasonable prospect of successfully defending this matter.

Market review
Platinum
The platinum price declined 6% year-on-year to average US$1 348/oz in 2014, despite a platinum market deficit. The five- month strike 
in the South African platinum sector contributed to South African refined mine supply falling by 1.37Moz. Gross demand excluding 
investment was up by 3.3% for the year, while recycling growth was up 2.3% to 2.0Moz. However, investment holdings were lower by 
760koz compared to 2013. This was due to the new ETF launch in 2013 that led to more than 900koz of investment demand that year.

Palladium
The deficit in the palladium market is estimated to have widened to 1.75Moz in 2014, excluding producer stock sales and the allocation 
of metals to ETFs. Global ETFs absorbed a net 940koz of additional metal in 2014. Prices peaked at US$910/oz in September but along 
with a commodity-wide sell-off and dollar strengthening, prices fell to US$804/oz by year end. This reflects the availability of stock 
to meet current market requirements.

Rhodium
The average rhodium price increased by almost 10% to US$1 173/oz in 2014, partly attributable to a drop in primary supply. Gross demand 
excluding investment increased by 3.8% year-on-year to breach 1Moz for the first time since 2008. Industrial demand, net of recycling, 
decreased by 4.5% year-on-year to 150koz, although demand for autocatalysts has improved by 5.5%. A substantial drop in supply and a 
slowing of recycling rates resulted in fundamentals switching to a deficit in 2014, but the industry remains well stocked for now and 
price pressure is limited in the near term.

Outlook
In the short to medium term our focus will remain on achieving operational excellence in our core business of mining BRPM, improving 
safety, maintaining productivity and containing costs.

We are confident that production from BRPM will be between 2.4 and 2.5Mt for 2015, given our good stakeholder relations and strong 
operating platform, with the head grade being maintained at between 4.15g/t (4E) and 4.20g/t (4E). Our Merensky ore will be 
preferentially treated at the BRPM concentrator facility and excess UG2 will be toll treated at Waterval.

The expansion of our concentrator, which will process the ore from both BRPM and Styldrift I, will be completed in the first quarter of 
2017 and it is expected to start processing ore from Styldrift I in the third quarter of 2015.

Capital expenditure on Styldrift I will continue to increase as we complete and commission the Main and Services shafts and develop and 
equip the mine. In this regard, we will be developing a hedging strategy to manage the cost of imported equipment for Styldrift I that 
we will be purchasing in euros in 2015. Total capex for 2015 including SIB and replacement is forecast at R2.9 billion (including 
escalation and contingency).

The result of the Styldrift II pre-feasibility study was presented to the Board in February 2015. It indicated a very good business 
case to proceed with a feasibility study, which the Board approved.

Global platinum demand is estimated to rise just over 4% in 2015 to around 8.2Moz supported by the tighter emissions legislation 
(Euro 6). However, this may be dampened by the growth in recycling estimated at over 8%. A structural market deficit is forecast to 
persist for the palladium market which should lead to higher prices as stocks deplete; however, the market is currently well stocked. 
The rhodium market is expected to remain close to balance.

We expect the rand to remain at similar weak levels to those we experienced in 2014 and we also expect metal prices to remain 
relatively flat. This combination is likely to result in our average revenue basket for 2015 being fairly similar to what we achieved 
in 2014.

Maintaining the sound labour and community relations we have developed over the past few years will be paramount in ensuring ongoing 
operational and project continuity. As such, our key focus during 2015 will be on:
-  expanding the communication and feedback forums used to engage with labour and union representatives and to further enhance the 
   mutual trust and understanding of the business that has been established to date
-  meeting our social and labour plan commitments through the ongoing development of skills and infrastructure as part of our 
   contribution to local economic development in the communities in which we operate.

We will continue to stay abreast of industry developments regarding innovation and new technologies; this will allow us to extract 
incremental benefits throughout our value chain and contribute to upskilling of our employees.


SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2014

                                                                                                      Group          
                                                                              31 December         31 December
                                                                                     2014                2013
                                                                                  audited              audited                %
                                                                               R (million)          R (million)          change
ASSETS 
Non-current assets                                                               19 960.5             18 558.4              7.6
Property, plant and equipment                                                    10 889.5              9 567.9             13.8
Mining rights                                                                     6 518.4              6 583.7             (1.0)
Goodwill                                                                          2 275.1              2 275.1                –
Environmental trust deposit                                                         113.6                106.8              6.4
Employee housing receivable                                                          99.4                    –            100.0
Employee housing benefit                                                             36.9                    –            100.0
Deferred tax asset                                                                   27.6                 24.9             10.8
Current assets                                                                    3 543.4              2 259.1             56.9
Employee housing assets                                                              54.8                 46.5             17.8
Inventories                                                                          51.7                 35.5             45.6
Employee housing receivable                                                           9.4                    –            100.0
Employee housing benefit                                                              3.0                    –            100.0
Trade and other receivables                                                       1 558.0              1 404.2             11.0
Current tax receivable                                                                2.3                    –            100.0
Cash and cash equivalents                                                         1 864.2                772.9            141.2
Total assets                                                                     23 503.9             20 817.5             12.9
EQUITY AND LIABILITIES 
Total equity                                                                     18 196.3             15 986.3             13.8
Share capital                                                                         1.9                  1.7             11.8
Share premium                                                                     9 329.2              7 808.9             19.5
Retained earnings                                                                 4 330.7              3 889.8             11.3
Other reserves                                                                      248.4                157.7             57.5
Non-controlling interest                                                          4 286.1              4 128.2              3.8
Non-current liabilities                                                           4 574.9              4 331.6              5.6
Deferred tax liability                                                            4 486.7              4 262.0              5.3
Long-term provisions                                                                 88.2                 69.6             26.7
Current liabilities                                                                 732.7                499.6             46.7
Trade and other payables                                                            726.1                499.4             45.4
Employee housing facility                                                             6.6                    –            100.0
Current income tax payable                                                              –                  0.2          (100.0)
Total liabilities                                                                 5 307.6              4 831.2              9.9
Total equity and liabilities                                                     23 503.9             20 817.5             12.9

Notes 1 to 15 form an integral part of these summary consolidated financial statements.


SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2014

                                                                                                      Group          
                                                                              31 December         31 December
                                                                                     2014                2013
                                                                                  audited              audited                %
                                                             Notes             R (million)          R (million)          change
Revenue                                                          9                3 767.5              3 251.1             15.9
Cost of sales                                                   10               (2 902.2)            (2 650.1)            (9.5)
Cost of sales excl depreciation, amortisation and 
movement in inventories                                                          (2 477.5)            (2 223.2)           (11.4)
Depreciation and amortisation                                                      (435.1)              (433.5)            (0.4)
Increase in inventories                                                              10.4                  6.6             57.6
Gross profit                                                                        865.3                601.0             44.0
Other income                                                                         25.2                 77.5            (67.5)
Administrative expenses                                                            (137.3)              (105.0)           (30.8)
Finance income                                                                       96.4                 42.7            125.8
Finance cost                                                                         (5.1)                (3.7)           (37.8)
Profit before tax                                                                   844.5                612.5             37.9
Income tax expense                                                                 (245.7)              (164.7)           (49.2)
Income tax                                                                          (23.7)               (15.6)           (51.9)
Deferred tax                                                                       (222.0)              (149.1)           (48.9)
Net profit for the year                                                             598.8                447.8             33.7
Other comprehensive income                                                              –                    –                –
Total comprehensive income                                                          598.8                447.8             33.7
Total comprehensive income attributable to:
Owners of the Company                                                               440.9                284.2             55.1
Non-controlling interest                                                            157.9                163.6             (3.5)
Basic earnings (cents per share)                                 8                    239                  173             38.2
Diluted earnings (cents per share)                               8                    238                  173             37.6
Headline earnings (cents per share)                              8                    239                  173             38.2

Notes 1 to 15 form an integral part of these summary consolidated financial statements.                                        


SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
as at 31 December 2014
                                                                 Share                               Attributable
                                                                -based           Non-                   to owners            Non-  
                            Number    Ordinary       Share     payment  distributable      Retained        of the    controlling
                         of shares      shares*    premium     reserve       reserves      earnings       Company       interest         Total
                            issued* R (million) R (million) R (million)    R (million)   R (million)   R (million)    R (million)   R (million)
Balance at
31 December 2013      164 459 662          1.7     7 808.9       157.7             –        3 889.8      11 858.1        4 128.2      15 986.3
Share-based payment
charge                          –            –           –        48.2             –              –          48.2              –          48.2
Mahube ordinary 
shares vested 
in March 2014             187 971            –        12.2       (12.2)            –              –             –              –             –
2011 BSP shares 
vested in March 
and April 2014            263 029            –        17.1       (17.1)            –              –             –              –             –
Issue of shares – 
bookbuild              11 290 323          0.1       699.9           –             –              –         700.0              –         700.0
Issue of shares – 
rights offer           14 545 455          0.1       799.9           –             –              –         800.0              –         800.0
Costs relating to 
issue of shares 
capitalised                     –            –       (21.5)          –             –              –         (21.5)             –         (21.5)
Costs relating to 
rights followed on 
treasury shares                 –            –        (6.4)          –             –              –          (6.4)             –          (6.4)
Share options 
exercised                 384 217            –        19.1           –             –              –          19.1              –          19.1
RPM capital
contribution to 
housing fund                    –            –           –           –          71.8              –          71.8              –          71.8
Total comprehensive
Income                          –            –           –           –             –           440.9        440.9          157.9         598.8
Balance at
31 December 2014      191 130 657          1.9      9 329.2      176.6          71.8         4 330.7     13 910.2        4 286.1      18 196.3
Balance at
31 December 2012      164 150 804          1.7      7 789.0      119.7             –         3 605.6     11 516.0        3 964.6      15 480.6
Share-based payment
charge                          –            –            –       57.9             –               –         57.9              –          57.9
Mahube ordinary
shares vested 
in March 2013             187 971            –         12.2      (12.2)            –               –            –              –             –
2013 retrenchments
(BSP early 
vesting)**                 43 044            –          2.6       (2.6)            –               –            –              –             –
2010 BSP shares
vested in 
December 2013              77 843            –          5.1       (5.1)            –               –            –              –             –
Total comprehensive
income                          –            –            –          –             –           284.2        284.2          163.6         447.8
Balance at
31 December 2013      164 459 662          1.7      7 808.9      157.7            –          3 889.8     11 858.1        4 128.2      15 986.3

*  The number of shares is net of 1 762 632 (2013:1 622 781) treasury shares relating to the Company’s management share incentive scheme and the 
   Mahube Employee Share Trust as shares held by these special purpose vehicles are eliminated on consolidation.
** 18 D1 and below, and 17 D2 and above employees were retrenched in 2013. All retrenchment costs have been fully paid out.

Notes 1 to 15 form an integral part of these summary consolidated financial statements.
 

SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2014

                                                                                                     Group          
                                                                              31 December          31 December
                                                                                     2014                 2013
                                                                                  audited              audited                %
                                                                               R (million)          R (million)          change

Net cash flow generated by operating activities                                   1 426.5                907.8             57.1
Cash generated by operations                                                      1 358.5                875.8             55.1
Interest paid                                                                        (1.1)                   –           (100.0)
Interest received                                                                    80.3                 31.1            158.2
Dividends received                                                                   14.2                 18.3            (22.4)
Tax paid                                                                            (25.4)               (17.4)           (46.0)
Net cash flow utilised by investing activities                                   (1 813.9)              (784.8)          (131.1)
Proceeds from disposal of property, plant and equipment                                 –                  0.3           (100.0)
Decrease in held-to-maturity investments                                                –                253.9           (100.0)
Acquisition of property, plant and equipment                                     (1 675.6)            (1 036.6)           (61.6)
Acquisition of housing assets                                                      (138.2)                   –           (100.0)
Increase in environmental trust deposit                                              (0.1)                (2.4)           (95.8)
Net cash flow generated by financing activities                                   1 478.7                    –           (100.0)
Issue of ordinary shares net of cost                                              1 478.5                    –            100.0
Costs relating to rights followed on treasury shares                                 (6.4)                   –            100.0
Increase in housing facility                                                          6.6                    –            100.0
Net increase in cash and cash equivalents                                         1 091.3                123.0            787.2
Cash and cash equivalents at beginning of year                                      772.9                649.9             18.9
Cash and cash equivalents at end of year                                          1 864.2                772.9            141.2

Notes 1 to 15 form an integral part of these summary consolidated financial statements. 

SUMMARY CONSOLIDATED NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 December 2014

1.  Basis of presentation
The summary consolidated financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements 
(JSE Listings Requirements) for abridged reports, and the requirements of the Companies Act applicable to summary financial statements. 
The JSE Listings Requirements require abridged reports to be prepared in accordance with the framework concepts and the measurement and 
recognition requirements of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as issued by 
the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and also, as a 
minimum, contain the information required by IAS 34: Interim Financial Reporting. The accounting policies applied in the preparation of 
the consolidated financial statements from which the summary consolidated financial statements were derived are in terms of IFRS and 
are consistent with those accounting policies applied in the preparation of the previous consolidated annual financial statements.

The summary annual financial statements for the year ended 31 December 2014 were prepared under the supervision of the Chief 
Financial Officer, Martin Prinsloo CA(SA).

2.  Accounting policies
The summary consolidated financial statements have been prepared under the historic cost convention. The principal accounting policies 
used by the Group are consistent with those of the previous period, except for the adoption of various revised and new standards. The 
adoption of these standards had no material impact on the financial results for this  review period.

3.  Audit opinion
These summary consolidated financial statements for the year ended 31 December 2014 have been audited by PricewaterhouseCoopers Inc. 
who expressed an unmodified opinion thereon. The auditor also expressed an unmodified opinion on the annual financial statements from 
which these summary consolidated financial statements were derived.
A copy of the auditor’s report on the summary consolidated financial statements and of the auditor’s report on the annual consolidated 
financial statements are available for inspection at the registered office of Royal Bafokeng Platinum Limited, together with the annual 
financial statements identified in the respective auditor’s report.

4.  Employee home ownership scheme
During 2013, RBPlat embarked on an initial pilot housing project which ultimately will involve the construction of approximately 3 500 
houses for eligible enrolled employees over a five-year period. In December 2013, RBPlat took ownership of the first batch of houses 
which were recognised as property, plant and equipment. At that stage it was uncertain when the houses would be sold. As the intention 
is to sell the houses to employees within a 12 month period, the employee housing assets were subsequently reclassified as current 
assets. At 31 December 2014, 422 houses were built, 295 of which were sold to employees.

Friedshelf 1408 (Pty) Ltd (Friedshelf), a wholly owned subsidiary within the RBPlat Group is a property company, which was created in 
2013 for the purpose of the housing scheme. All unsold houses are classified as inventory in the books of Friedshelf and on sale of the 
houses, revenue is recognised. On Group level however, unsold houses are classified as current assets. On sale of the houses, an 
employee housing receivable is recognised. This reclassification occurs because RBPlat is a mining company and is not in the business 
of buying and selling houses. All houses are sold to employees at cost.

The employee housing receivable is recognised at fair value using a discounted cash flow model. The difference that arises between the 
loan amount outstanding and the fair value of the employee housing receivable is recognised as an employee housing benefit. A Nedbank 
housing facility was drawn to fund a portion of the purchase of the employee houses, which is recognised as a liability.

5.  Capital commitments
Capital commitments in respect of property, plant and equipment
                                                                                         Group
                                                                                   2014           2013
                                                                             R (million)    R (million)
Commitments contracted for                                                        887.4          918.3
Approved expenditure not yet contracted for                                     5 008.7        6 432.7
Total                                                                           5 896.1        7 351.0

The commitments reflect 100% of the BRPM JV project commitments. Effectively Royal Bafokeng Resources Proprietary Limited (RBR) must 
fund 67% thereof and RPM the remaining 33%.

Should either party elect not to fund their share, the participation interest in the BRPM JV will be diluted according to the terms 
reflected in the BRPM JV agreement.

6.  Guarantees and contingencies
                                                                                         Group
                                                                                   2014           2013
                                                                             R (million)    R (million)
6.1  Guarantees
Royal Bafokeng Resources Proprietary Limited, a wholly 
owned subsidiary of RBPlat, granted the following guarantees:
Eskom to secure power supply for Styldrift I project development                   17.1           17.1
Eskom early termination guarantee for Styldrift I                                  17.5           17.5
Eskom connection charges guarantee for Styldrift I                                 40.0           40.0
Anglo American Platinum Limited for the rehabilitation of land 
disturbed by mining activities at BRPM                                             77.5           77.5
DMR for the rehabilitation of land disturbed by prospecting/mining                  1.3            1.3
Housing guarantee for employees*                                                    3.5          200.0
Royal Bafokeng Platinum Management Services Proprietary Limited, 
a wholly owned subsidiary of RBPlat, granted the following guarantees:
Tsogo Sun guarantees arising from lease agreements                                  0.4            0.4
Total guarantees issued 31 December                                               157.3          353.8

*  The housing guarantee of R200 million reduces as the funds are drawn 
   from the Nedbank working capital facilities or funded from cash resources.

6.2  Tax contingency
On 31 January 2013 Royal Bafokeng Resources Proprietary Limited (RBR) received notice from the South African Revenue Services (SARS) 
that they have completed an audit of RBR’s 2008 to 2010 tax assessments and that they intend reopening these assessments to effect 
certain proposed adjustments. These proposed adjustments primarily relate to SARS intending to disallow interest on shareholder’s loans 
amounting to R586 million previously deducted by RBR and allowed by SARS in the 2008 and 2009 income tax assessments. On 19 February 
2014, RBR received revised assessments from SARS for the 2008, 2009 and 2010 years amounting to R437.5 million comprising income tax of 
R106 million, penalties of R246.4 million and interest of R85.1 million, payable within seven days. RBR lodged an objection against 
these assessments and an application to suspend payment of taxes in terms of section 164(2) of the Tax Administration Act. SARS 
disallowed RBR’s objection and RBR lodged a notice of appeal in November 2014. Based on independent advice and consultation to date, 
RBR remains confident that it has a reasonable prospect of successfully defending this matter.

7.  Financing facilities in place
Royal Bafokeng Resources (RBR) cancelled its R1 billion revolving credit facility (RCF) with Nedbank Capital during July 2014.

The RCF incurred commitment fees of 0.625% of the unutilised portion of the facility up to 29 June 2014 and 0.725% from 30 June 2014 
until cancellation occurred. The RCF will be superseded with term debt to be raised for the completion of the Styldrift I project.

In addition, RBR has a R450 million, RBPlat a R3 million and RBPlat MS a R5 million working capital facility with Nedbank Capital. 
In all, R200 million of the R450 million was allocated for the RBPlat housing facility.

Interest on the working capital facilities is based on a three-month JIBAR plus a margin of 2.45% nominal annual interest compounded 
monthly in arrears and it is repayable by 31 December 2015. There are commitment fees payable on these facilities of 0.625% of the 
unutilised portion of the facilities.

At year end RBR utilised R156.9 million (2013: R353.4 million) of its working capital facility for guarantees and R6.6 million in 
respect of the employee housing facility and RBP MS utilised R0.4 million (2013: R0.4 million) for guarantees.

8.  Earnings per share
The weighted average number of ordinary shares in issue outside the Group for the purposes of basic earnings per share and the weighted 
average number of ordinary shares for diluted earnings per share are calculated as follows:

                                                                                         Group
                                                                                   2014           2013
Number of shares issued                                                     167 737 114    166 082 443
Mahube Trust                                                                   (281 957)      (563 914)
Management incentive scheme                                                  (2 995 495)    (1 367 725)
Number of shares issued outside the Group                                   164 459 662    164 150 804
Adjusted for weighted shares issued during the year                          20 337 340        168 987
Weighted average number of ordinary shares in issue for earnings 
per share                                                                   184 797 002    164 319 791
Management incentive scheme                                                     476 576        149 113
Weighted average number of ordinary shares in issue for diluted 
earnings per share                                                          185 273 578    164 468 904
Profit attributable to owners of the Company R (million)                          440.9          284.2
Basic earnings per share (cents per share)                                          239            173
Basic earnings per share is calculated by dividing the profit 
attributable to owners of the Company for the year by the weighted 
average number of ordinary shares in issue for earnings per share
Diluted earnings per share (cents per share)                                        238            173
Diluted earnings per share is calculated by adjusting the weighted 
average number of ordinary shares outstanding to assume conversion 
of all diluted potential ordinary shares
Headline earnings
Profit attributable to owners of the Company is adjusted as follows:
Profit attributable to owners of the Company R (million)                          440.9          284.2
Adjustment net of tax:  
Profit on disposal of property, plant and equipment R (million)                       –           (0.3)
Headline earnings R (million)                                                     440.9          283.9
Basic headline earnings (cents per share)                                           239            173
Diluted headline earnings (cents per share)                                         238            173

9.  Revenue 
                                                                                         Group
                                                                                   2014           2013
                                                                             R (million)    R (million)
Revenue from concentrate sales – production from BRPM concentrator              3 339.6        2 944.7
Revenue from UG2 toll concentrate                                                 427.9          306.4
Total                                                                           3 767.5        3 251.1

10.  Cost of sales
                                                                                         Group
                                                                                   2014           2013
                                                                             R (million)    R (million)
On-mine costs:
– Labour                                                                          883.8          773.3
– Utilities                                                                       208.5          179.4
– Contractor costs                                                                541.9          489.0
– Movement in inventories                                                         (10.4)          (6.6)
– Materials and other mining costs                                                692.5          615.8
– Materials and other mining costs – BRPM JV                                      729.7          651.0
– Elimination of intergroup management fee                                        (37.2)         (35.2)
State royalties                                                                    12.6           10.9
Depreciation – Property, plant and equipment                                      369.8          372.2
Amortisation – Mineral rights                                                      65.3           61.3
Share-based payment expense                                                        21.8           35.8
Social and labour plan expenditure                                                110.3           91.0
Retrenchments                                                                         –           21.2
Styldrift incidental expenses                                                       3.8            4.8
Other                                                                               2.3            2.0
Total cost of sales                                                             2 902.2        2 650.1
 
11.  Related party transactions
                                                                                         Group
                                                                                   2014           2013
                                                                             R (million)    R (million)
BRPM Joint Venture balances at 31 December:
Amount owing by RPM for concentrate sales                                       1 344.6        1 313.2
Amount owing to RPM for contribution to BRPM JV (working capital nature)          403.3          213.4
Amount owing by RPM for housing project costs                                      71.8              –
BRPM Joint Venture transactions:
Concentrate sales to RPM                                                        3 767.5         3251.1
Associate of holding company balances:
Amount owing by Impala Platinum Limited for the fourth quarter royalty             10.8           10.9
Fellow subsidiaries and associates of holding company transactions:
Transactions with Fraser Alexander for rental of mining equipment, 
maintenance of tailings dam and operation of sewage plant 
(a subsidiary of RBH)                                                               7.2           10.7
Impala Platinum Limited for royalty income (an associate of RBH)                   18.2           75.2
Geoserve Exploration Drilling Company for exploration drilling on 
Boschkoppie and Styldrift (a subsidiary of RBH)                                    17.0           23.2
Trident South Africa Proprietary Limited for steel supplies 
(a subsidiary of RBH)                                                               1.6            0.8
Tarsus Technologies for electronic equipment purchases 
(a subsidiary of RBH)                                                               1.6            2.4
Royal Bafokeng Administration – bulk water supply (a subsidiary of RBH)             5.1              –
MTech Industrial – supply and install heat pumps (a subsidiary of RBH)              2.7              –
Royal Marang Hotel for accommodation and conferences (a subsidiary of RBH)          0.9            0.7

12.  Dividends
No dividends have been declared or proposed for the current period (2013: Rnil).

13.  Segmental reporting
The Group is currently operating one mine with two decline shafts and the Styldrift I project. These operations are located in the 
North West province of South Africa, 120 kilometres from Johannesburg, 30 kilometres from Rustenburg and 17 kilometres from Phokeng. 
With the increase in the capital spend and progress on the Styldrift I project, it was decided to show BRPM and Styldrift I as separate 
segments from 2014 onwards. In addition, due to the different nature and significance of the RBPlat housing project, it was also 
decided to show housing as a separate segment.

The Executive Committee of the Company is regarded as the chief operating decision-maker.

13.1  Segmental statement of comprehensive income

                                           BRPM       Styldrift        BRPM JV         RBPlat    Corporate office
                                         mining          mining         mining        housing   and consolidation
                                        segment         segment        segment*       segment          adjustment           Total
2014                                 R (million)     R (million)    R (million)    R (million)         R (million)     R (million)
Concentrate sales                       3 761.9             5.6        3 767.5              –                   –         3 767.5
Houses sold to employees                      –               –              –          129.9              (129.9)              –
Cash cost of sales                     (2 363.9)              –       (2 363.9)             –                37.2        (2 326.7)
Cost of housing assets for
employees                                     –               –              –         (129.9)              129.9               –
Depreciation                             (258.8)              –         (258.8)             –                   –          (258.8)
Movement in inventories                    10.4               –           10.4              –                   –            10.4
Other operating income                     20.2             4.6           24.8            0.4                   –            25.2
Share-based payment expenses
(non-cash)                                (21.8)              –          (21.8)             –               (19.5)          (41.3)
Other operating expenditure              (318.4)          (13.3)        (331.7)             –               215.3          (116.4)
Administration expenditure and
royalties                                     –               –              –          (14.0)             (115.2)         (129.2)
Amortisation of employee housing
benefit                                       –               –              –           (1.1)                  –            (1.1)
Additional depreciation and
amortisation on purchase
price allocation                              –               –              –              –              (176.3)         (176.3)
Net finance income                          7.2             0.7            7.9           (7.1)               90.4            91.2
Profit before tax per segment
and total                                 836.8            (2.4)         834.4          (21.8)               31.9           844.5
Taxation                                                                                                                   (245.7)
Non-controlling interest                                                                                                   (157.9)
Contribution to basic earnings
per share                                                                                                                   440.9
Contribution to headline earnings
per share                                                                                                                   440.9
2013
Concentrate sales                             –               –        3 251.1              –                   –         3 251.1
Houses sold to employees                      –               –              –              –                   –               –
Cash cost of sales                            –               –       (2 092.8)             –                36.0        (2 056.8)
Cost of housing assets for
employees                                     –               –              –              –                   –               –
Depreciation                                  –               –         (262.7)             –                   –          (262.7)
Movement in inventories                       –               –            6.6              –                   –             6.6
Other operating income                        –               –           76.8              –                   –            76.8
Share-based payment expenses
(non-cash)                                    –               –          (35.8)             –                   –           (35.8)
Other operating expenditure                   –               –         (119.0)             –                   –          (119.0)
Administration expenditure and
royalties                                     –               –              –              –              (115.9)         (115.9)
Amortisation of employee housing
benefit                                       –               –              –              –                   –               –
Additional depreciation and
amortisation on purchase price
allocation                                    –               –              –              –              (170.8)         (170.8)
Net finance income                            –               –            6.0           (0.1)               33.1            39.0
Profit before tax per segment
and total                                     –               –          830.2           (0.1)             (217.6)          612.5
Taxation                                                                                                                   (164.7)
Non-controlling interest                                                                                                   (163.6)
Contribution to basic earnings
per share                                                                                                                   284.2
Contribution to headline earnings
per share                                                                                                                   283.9

* The comparative information has not been split between the BRPM and Styldrift mining segments as these two segments form the BRPM JV

13.2  Segmental statement of financial position
                                           BRPM         Styldrift      BRPM JV         RBPlat   Corporate office
                                         mining            mining       mining        housing  and consolidation
                                        segment           segment      segment*       segment         adjustment           Total
                                     R (million)       R (million)  R (million)    R (million)        R (million)     R (million)
2014
Segment total assets                    5 504.8           4 392.3      9 897.1          245.7                  –         10 142.8
Segment non-current assets              4 286.6           4 357.7      8 644.3          139.8                  –          8 784.1
Segment current assets                  1 218.2              34.6      1 252.8          105.9                  –          1 358.7
PPA adjustment to carrying amount
of PPE (includes mineral rights)              –                 –            –              –            8 920.6          8 920.6
Corporate assets and consolidation
adjustments                                   –                 –            –              –              301.2            301.2
Goodwill                                      –                 –            –              –            2 275.1          2 275.1
Cash and cash equivalents                 411.4                 –        411.4            2.9            1 449.9          1 864.2
Total assets per the statement of
financial position                      5 916.2           4 392.3     10 308.5          248.6           12 946.8         23 503.9
Segment total liabilities               1 771.7              12.7      1 784.4          270.6             (261.8)         1 793.2
Segment non-current liabilities            77.8              10.4         88.2              –                6.6             94.8
Segment current liabilities             1 693.9               2.3      1 696.2          270.6             (268.4)         1 698.4
Current liabilities and consolidation
adjustments                                   –                 –            –              –             (972.2)          (972.2)
Unallocated liabilities (tax and
deferred tax)                                 –                 –            –              –            4 486.7          4 486.7
Total liabilities per the statement
of financial position                   1 771.7              12.7      1 784.4          270.6            3 252.7         5 307.7
Group capital expenditure per cash
flow statement                            389.3           1 327.3      1 716.6            0.4              (41.4)        1 675.6

2013
Segment total assets                          –                 –      8 423.8           53.0                  –         8 476.8
Segment non-current assets                    –                 –      7 166.7           53.0                  –         7 219.7
Segment current assets                        –                 –      1 257.1              –                  –         1 257.1
PPA adjustment to carrying amount
of PPE (includes mineral rights)              –                 –            –              –            9 096.9         9 096.9
Corporate assets and consolidation
adjustments                                   –                 –            –              –              195.8          195.8
Goodwill                                      –                 –            –              –            2 275.1        2 275.1
Cash and cash equivalents                     –                 –        195.0              –              577.9          772.9
Total assets per the statement of
financial position                           –                  –      8 618.8            53.0          12 145.7       20 817.5
Segment total liabilities                    –                  –        928.8            53.1                 –          981.9
Segment non-current liabilities              –                  –         68.6               –                 –           68.6
Segment current liabilities                  –                  –        860.2            53.1                 –          913.3
Current liabilities and consolidation
adjustments                                  –                  –            –               –            (412.9)        (412.9)
Unallocated liabilities (tax and
deferred tax)                                –                  –            –               –           4 262.2        4 262.2
Total liabilities per the statement
of financial position                        –                  –        928.8            53.1           3 849.3         4831.2
Group capital expenditure per cash
flow statement                               –                  –      1 054.8               –             (18.2)       1 036.6

* The comparative information has not been split between the BRPM and Styldrift mining segments as these two segments form the BRPM JV

13.3  Segmental statement of cash flows
                                               BRPM       Styldrift        BRPM JV         RBPlat   Corporate office
                                             mining          mining         mining        housing  and consolidation
                                            segment         segment        segment*       segment          adjustment           Total
                                         R (million)     R (million)    R (million)    R (million)         R (million)     R (million)
2014
Segment cash flow statement
Net cash flow generated by 
operating activities                        1 368.1             1.7        1 369.8          (73.8)              130.5         1 426.5
Cash generated by operations                1 337.7             1.7        1 339.4          (65.4)               66.0         1 340.0
Dividends received                                –               –              –              –                14.2            14.2
Interest received                              11.9               –           11.9            2.7                65.7            80.3
Interest paid                                     –               –              –          (11.1)               10.0            (1.1)
Tax paid                                          –               –              –              –               (25.4)          (25.4)
Royalty income received                        18.5               –           18.5              –                   –            18.5
Net cash flow utilised by 
investing activities                         (389.4)       (1 327.3)      (1 716.7)        (138.6)               41.4        (1 813.9)
Proceeds from disposal of PPE                     –               –              –              –                   –               –
Decrease in held-to-maturity 
investments                                       –               –              –              –                   –               –
Acquisition of PPE                           (389.3)       (1 327.3)      (1 716.6)          (0.4)               41.4        (1 675.6)
Acquisition of housing assets                     –               –              –         (138.2)                  –          (138.2)
Increase in environmental trust 
deposits                                       (0.1)              –           (0.1)             –                   –            (0.1)
Net cash flow generated by 
financing activities                         (762.3)        1 325.6          563.3           215.3              700.1         1 478.7
Cash investments by/(distributions to)
BRPM JV shareholders                         (762.3)        1 325.6          563.3               –             (563.3)              –
Issue of ordinary shares net of cost              –               –              –               –            1 478.5         1 478.5
Costs relating to rights followed on
treasury shares                                   –               –              –               –               (6.4)          (6.4)
Increase in housing facility                      –               –              –               –                6.6            6.6
Increase in intercompany loans                    –               –              –           215.3             (215.3)             –
Net increase/(decrease) in cash and
cash equivalents                              216.4               –          216.4             2.9              872.0        1 091.3
Cash and cash equivalents at beginning
of period                                     195.0               –          195.0               –              577.9          772.9
Cash and cash equivalents end of
the year                                      411.4               –          411.4             2.9            1 449.9        1 864.2
2013
Segment cash flow statement
Net cash flow generated by
operating activities                              –               –          958.1            (0.1)             (50.2)         907.8
Cash generated by operations                      -               -          863.8               –              (72.6)         791.2
Dividends received                                –               –              –               –               18.3           18.3
Interest received                                 –               –            9.7               –               21.4           31.1
Interest paid                                     –               –              –            (0.1)               0.1             –
Tax paid                                          –               –              –               –              (17.4)        (17.4)
Royalty income received                           –               –           84.6               –                  –          84.6
Net cash flow utilised by 
investing activities                              –               –       (1 056.9)              –              272.1        (784.8)
Proceeds from disposal of PPE                     –               –            0.3               –                  –           0.3
Decrease in held-to-maturity investments          –               –              –               –              253.9         253.9
Acquisition of PPE                                –               –       (1 054.8)              –               18.2      (1 036.6)
Acquisition of housing assets                     –               –              –               –                  –             –
Increase in environmental trust deposits          –               –           (2.4)              –                  –          (2.4)
Net cash flow generated by financing
activities                                        –               –          (17.3)              –               17.3             –
Cash investments by/(distributions to)
BRPM JV shareholders                              –               –          (17.3)              –               17.3             –
Issue of ordinary shares net of cost              –               –              –               –                  –             –
Cost relating to rights followed on
treasury shares                                   –               –              –               –                  –             –
Increase in housing facility                      –               –              –               –                  –             –
Increase in intercompany loans                    –               –              –               –                  –             –
Net increase/(decrease) in cash and
cash equivalents                                  –               –         (116.1)              –              239.1         123.0
Cash and cash equivalents at beginning
of period                                         –               –          311.1               –              338.8         649.9
Cash and cash equivalents end of
the year                                          –               –          195.0               –              577.9         772.9

* The comparative information has not been split between the BRPM and Styldrift mining segments as these two segments form the BRPM JV

14.  Financial risk management
Fair value determination
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as 
follows:
-  Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
-  Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is,
   as prices) or indirectly (that is, derived from prices) (level 2)
-  Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The following table presents the environmental trust deposit that is measured at fair value and the employee housing receivable that is 
measured at amortised cost but for which fair value disclosure is provided at 31 December:

                                                                                Level 1          Level 2            Level 3
                                                                 Notes       R (million)      R (million)        R (million)
2014
Financial assets at fair value through profit or loss
Environmental trust deposits1                                                         –            108.9                  –
Financial assets at amortised cost
Employee housing receivable2                                                          –                –              108.8
2013
Financial assets at fair value through profit or loss
Environmental trust deposits1                                                         –            102.2                  –
Financial assets at amortised cost
Employee housing receivable2                                                          –                –                  –

1  This was valued using the level 2 fair values which are directly derived from the Shareholders Weighted Top 40 Index (SWIX 40) on 
   the JSE and the Bettabeta CIS BGreen portfolio exchange traded fund
2  The fair value was determined using a discounted cash ?ow model

15.  Subsequent events
On 14 January 2015, RBPlat announced that it has served formal notice to terminate its contract with Shaft Sinkers as its principal 
shaft sinking and development contractor on 14 January 2015, for all work related to the sinking, lining, equipping and commissioning 
of the Main and Services shafts and all related station and off-station development for the Styldrift I Project.

As part of the Company’s ongoing risk mitigation strategy for the business, RBPlat commenced with a process in 2014 to contract 
directly, where appropriate, with all project-related suppliers and have available all critical equipment required to continue with the 
shaft equipping and construction.

Furthermore, RBPlat is engaging with all interested parties including Shaft Sinkers, their employees, union representatives and Aveng 
Mining Shafts and Underground, a division of Aveng Africa Limited which was appointed in September 2013 as mining contractor for the 
ramp-up of the Styldrift I project, to identify and implement mechanisms required to secure the continued services of the employees on 
site and minimise the impact on the project.


COMPANY INFORMATION

Company registered office

The Pivot
No. 1 Monte Casino Boulevard Block C
4th Floor 
Fourways 
Johannesburg 
2021

PO Box 2283
Fourways 
2055
South Africa

Executive directors
SD Phiri (Chief Executive Officer)
MJL Prinsloo (Chief Financial Officer)

Independent non-executive directors
Adv KD Moroka SC (Chairman)
Prof L de Beer
RG Mills 
MJ Moffett
T Mokgosi-Mwantembe 
MH Rogers 
L Stephens

Non-executive directors
LM Ndala
DR Wilson


Company Secretary
Lester Jooste (ACIS)
Email:  lester@bafokengplatinum.co.za 
Telephone: +27 10 590 4519
Telefax: +27 086 572 8047

Investor relations
Lindiwe Montshiwagae
Email: lindiwe@bafokengplatinum.co.za 
Telephone: +27 10 590 4510
Telefax: +27 086 219 5131

Public Officer
Reginald Haman
Email:  reginald@bafokengplatinum.co.za 
Telephone: +27 10 590 4533
Telefax: +27 086 588 4568

Independent external auditors
PricewaterhouseCoopers Inc 
2 Eglin Road
Sunninghill 
Johannesburg 
2157
South Africa

Transfer Secretaries
Computershare Investor Services Proprietary Limited
70 Marshall Street 
Johannesburg

PO Box 61051
Marshalltown 
2107
South Africa
Telephone: +27 11 370 5000
Telefax: +27 11 688 5200

Sponsor
Merrill Lynch South Africa Proprietary Limited
138 West Street 
Sandton 
Johannesburg 
2196
South Africa

www.bafokengplatinum.co.za


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