Wrap Text
Royal Bafokeng Platinum Limited
(Incorporated in the republic of South Africa)
Registration number: 2008/015696/06
Share code: RBP
ISIN: ZAE000149936
ROYAL BAFOKENG PLATINUM
AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015
KEY FEATURES
ACHIEVEMENTS
> Successful commissioning of Styldrift I Main shaft
> Rapid response to changing market conditions
> Net cash flow generated by operating activities of R619 million
> R918 million cash on hand at year-end
IMPROVEMENTS
> 54% improvement in serious injury frequency rate (SIFR) year-on-year
> 23% improvement in lost time injury frequency rate (LTIFR) year-on-year
CHALLENGES
> The impact of the sustained depressed PGM market on our ability to ramp up Styldrift I by 2020
> 16% increase in cash operating cost per platinum ounce year-on-year
> Oversupplied platinum market
DISAPPOINTMENTS
> Five fatal accidents at our operations in 2015
> US$ PGM price performance
> Rand basket price performance
> Scaling down of activities at Styldrift I
COMMENTARY
Overview
During an extremely challenging year we had to respond rapidly to preserve cash and protect our balance sheet in a depressed PGM
market. This involved a material reduction in construction activities and the related capital expenditure at our Styldrift I project
and an increased focus on mining and processing the Merensky Reef at our Bafokeng Rasimone Platinum Mine (BRPM). Styldrift I remains
our core platform for organic growth. However, it is not deemed appropriate to ramp up our platinum ounces from the high-quality
Merensky Reef into a currently depressed market and it is also not prudent to burden our balance sheet by raising debt under the
prevailing market conditions.
Human capital
Safety, health and wellness
The five fatal accidents that occurred in our operations during 2015 are of great concern to us. The RBPlat Board of directors (the
Board) and management extend their condolences to the families, friends and colleagues of Mr Paquete, Mr Muchanga, Mr Sidumo,
Mr Bendzane and Mr Seoehla. The safety, health and wellness of our employees is paramount to RBPlat achieving its goal of operational
excellence. We have done well in terms of reducing our lost time injury frequency rate (LTIFR), which improved 22.8% year-on-year and
has reduced by 59% since we took operational control of the BRPM Joint Venture in January 2010, and our serious injury frequency rate
(SIFR) which improved 54.1% year-on-year and has reduced 75% over the past six years.
We commissioned investigations by an independent safety specialist to establish the reasons behind the serious deterioration in fatal
accidents during 2015 when we are achieving a steady, and clearly sustainable improvement in our injury frequency rates. The
investigations identified that leadership, behavioural maturity and contractor management needed addressing. We have revised our
safety management strategy and introduced several additional safety initiatives to address these areas more effectively. These
initiatives include:
> behaviour-based leadership programmes
> establishment of a best practice and mentoring team
> additional occupation technical training programmes
> reviewing and aligning our volume contractor safety management strategies with RBPlat requirements
> review and revise safety incentive systems.
Notwithstanding the fatal accidents we have suffered this year, RBPlat remains resolute in its drive to achieve zero harm through our
uncompromising commitment to the safety of our employees and our objective of zero harm will be a major focus in our operations during
2016.
Noise-induced hearing loss (NIHL) is the most prevalent occupational health issue in our operations and we are encouraged by the 50%
decrease in the number of cases diagnosed with NIHL exceeding 10% year-on-year.
We also achieved our commitment to ensure that all the employees of our contractors are members of a medical aid scheme.
Labour stability
Labour stability continued to play an important role in our performance in 2015. Our management, the union representatives and our
workforce all continue to invest time and effort in maintaining a partnership based on trust, mutual respect, transparency and
fairness. The commitment of all parties to constructive engagement plays a key role in our labour stability.
During 2015 we started work on Phase 2 of our employee home ownership scheme and 417 employees purchased homes in Phase 1 of the
scheme.
Social and relationship capital
Our purpose is to create economic value that we can share with all our stakeholders. The communities in which we operate are key
stakeholders of RBPlat. Our close-out report for our social and labour plan (SLP) projects for the period 2010 to 2014 was submitted to
the Department: Mineral Resources (DMR) in November 2015. It is often extremely challenging to ensure the sustainability of community
projects, however, we are proud of what we have achieved through our investment of
R487.9 million in our SLP since we took over operational control of the BRPM Joint Venture in 2010.
We took the decision that the main focus of our SLP for 2016 will be human resource development and education support. Our investment
in education support, which was designed to address maths and science learning, governance, school management skills at all levels
including school governing bodies, infrastructure, safety and security has made good progress. We will continue to focus on improving
maths and science learning, governance and school management skills in 2016.
Manufactured capital
Our ability to meet production targets, keep costs below mining inflation and deliver against our organic growth strategy was impacted
by:
> an increase in safety stoppages due to the fatal accidents suffered
> weak PGM market conditions
> Eskom power supply constraints
> industry inflationary pressures.
The operational flexibility we have developed however, made it possible for us to minimise the impact of disruptions to production and
respond effectively to current market conditions. These measures included:
> maintaining our immediately stopable reserves at optimal levels
> establishing the UG2 mining platform
> ensuring our Phase III Merensky replacement project remained ahead of schedule
> our modular approach to our processing requirements.
In response to the prevailing market conditions our focus during the second half of the year was on managing our operations through a
depressed market cycle and reducing non-critical expenditure. This required several cost management initiatives and structural changes
to the business at both an operational and project level. These included:
> scaling down of mining and construction activities at Styldrift I
> deferring the 250ktpm BRPM concentrator upgrade
> deferring the 100ktpm concentrator module construction
> deferring the construction of Phase III 14 and 15 levels planned for 2016 into 2017
> deferring the Styldrift II feasibility study and exploration drilling
> suspending UG2 development at South shaft into 2017, as current reserves are sufficient for mining requirements during 2016
> reducing the number of UG2 trial mining stoping teams at South shaft and transferring them to higher grade Merensky Reef panels
> reducing stay-in-business capital expenditure to between 4 and 5% of operating costs
> aligning our employees with revised project and operational requirements
> transferring experienced development resources from Phase III to Styldrift to assist with early development of key infrastructure.
Overall, our tonnes delivered decreased by 1% or 15kt to 2 456kt from 2 471kt in 2014. Our Merensky tonnes delivered reduced by 2% to
1 872kt with UG2 tonnes delivered increasing by 4% to 585kt, compared to 2014. The reduction in Merensky tonnes is directly
attributable to the increase in safety-related stoppages.
Total development reduced by 11% or 4.4km to 35.5km when compared to 2014. This reduction was due to the increase in safety stoppages
and the deferment of South shaft UG2 footwall development, as part of our cash preservation strategy. Despite this reduction
development remains aligned with stoping depletion rates, with our IMS panel ratio of 1.51 being in line with our target of 1.5.
Our power management strategy, which involves reducing our overall load by restricting crushing operations at the plant proved
effective in minimising the direct impacts of stage 1 and 2 curtailments on production, enabling our underground operations to continue
unaffected. Stage 3 load curtailments however, resulted in several unscheduled stoppages negatively impacting on our milling volumes
and recoveries.
During 2015 an estimated 275kt of milling production was lost due to safety stoppages compared to 79kt for the comparative 2014 period.
The majority of the stoppages were directly related to the five fatalities and were necessary to address statutory requirements and
correct specific operational deficiencies. The stoppages affected mainly Merensky production sections with Merensky related losses
estimated at 227kt.
Our 4E built-up head grade reduced by 4% from 4.29g/t in 2014 to 4.11g/t in 2015. The reduction in grade was due to the increased
contribution of UG2, on-reef development tonnes from the BRPM Phase III and Styldrift I projects and higher than planned North shaft
on-reef stoping dilution as a result of the introduction of in-stope bolting. Our strategy remains to preferentially mine and treat
Merensky, with UG2 being used to supplement production volumes.
Total tonnes milled reduced by 1% to 2 461kt. Merensky tonnes milled reduced by 2% to 1 874kt, while UG2 tonnes milled increased by 4%
to 587kt. This resulted in the percentage of UG2 tonnes milled increasing marginally to 24% from 23% in 2014. The reduction in total
milled volumes and the increase in UG2 contribution were directly related to mining volumes. The recoveries from the BRPM concentrator
were in line with expectations, given the reduction in head grade.
The 1% reduction in milled volumes and 4% reduction in built-up head grade yielded a 5% reduction in 4E and platinum ounce production,
with 278koz (4E) and 180koz platinum metals being produced in concentrate.
Operating costs
Our cash operating costs increased by 8% to R2 548 million and, combined with the 1% reduction in milled volumes, resulted in the unit
cost per tonne milled increasing by 11% to R1 066. The 4% reduction in built-up head grade and marginally lower associated recovery
resulted in the unit operating costs per 4E and platinum ounce increasing by 16% to R9 359 and R14 504, respectively.
Capital expenditure
Stay-in-business (SIB) capital expenditure decreased by 28% in 2015 compared to 2014 and equated to 4.4% of operating expenditure. The
decrease in SIB, which was as a consequence of our current cash preservation strategy, will not have a negative impact on operational
sustainability in the short to medium term. We expect our SIB expenditure to remain between 4 and 5% in 2016.
Replacement and expansion capital expenditure is in line with project construction progress for the year.
The increase in our total capital expenditure for 2015 of R285 million, or 17% to R2 009 million, is attributable to Styldrift I
construction-related expenditure preceding the scaling down of construction activities during the second half of the year.
Projects
Styldrift I expansion project
On 4 August 2015 the Board implemented a strategic decision to materially reduce construction activities and the related capital
expenditure on the Styldrift I project. The material reduction in PGM prices experienced during the first half of the year and the view
that the PGM market is likely to remain depressed in the medium term influenced this decision. This resulted in:
> suspension of all major contracts, notably the mining contract with Aveng, contracts involved with the overland conveyor belt
construction and deferral of all major contracts relating to the supply of mining equipment, fleet and infrastructure
> the transfer of RBPlat's experienced development resources from Phase III at BRPM to Styldrift I to assist with the early
development of key infrastructure.
In order to better align the timing of the ramp up of Styldrift I to the prevailing market conditions, the start of ramp up has
currently been delayed by 12 months, which will result in steady state production of 230ktpm being achieved in the first quarter of
2020.
Our revised mining and construction plan is based on a self-funding strategy with the majority of the work being funded from surplus
BRPM cash flows and revenues generated from on-reef development at Styldrift I. The plan focuses on developing key infrastructure and
establishing sufficient stoping face length to enable us to sustainably deliver 50kt per month to the concentrator and position
Styldrift I favourably to initiate an aggressive ramp up when market conditions permit.
We completed 1.6km of development in 2015, delivered 65kt of on-reef development ore to the concentrator, completed the support and
lining of Silo 2 and commissioned Ventilation shaft 1. Project expenditure for the year was R1 659 million, which brought the
cumulative expenditure to R5 477 million project to date.
Our revised project scope requires a total of 7.8km of development to be completed by the end of 2016 with 1.0km completed in 2015 and
6.8km planned for completion in 2016. This will result in:
> four pre-established stoping sections equating to approximately 800m of face length
> four equipped workshops and 32 pre-developed workshops
> 900m of footwall development including associated ore-passes on 642 level
> reaming and lining of Silo 4 and sliping of Settler 1 to establish the necessary ore handling and pumping infrastructure on
708 level.
This will position us well to commence with ramp up during 2017, market conditions permitting.
The completion of the 250ktpm upgrade of the BRPM concentrator, originally scheduled for 2015, was affected by our cash preservation
strategy. As a result, its completion was deferred to the first quarter of 2016.
BRPM Phase III replacement project
The North shaft Phase III replacement project involves the extension of the North shaft Merensky decline system and associated
infrastructure from 10 level down to the mining boundary at 15 level. The project was 88% complete against a plan of 81%, with
development 1 158m, or 10 months, ahead of schedule at year-end. This allowed us to divert some of our most experienced development
resources to the Styldrift I development programme and defer the construction of the last two levels (14 and 15) to 2017, which will
reduce capital expenditure in 2016. This deferment will have no impact on the handover dates for those levels or the mine extraction
plan as project completion remains set for 2017, as per the project schedule.
The project remains below budget, with expenditure for 2015 amounting to R203 million and a cumulative amount of R992 million for the
project to date.
Financial capital
Our focus on cash preservation to maintain a strong balance sheet and our decision to slow down Styldrift I has positioned the Group
favourably to benefit from stronger PGM prices when the PGM price environment improves.
RBPlat's results reflect the impact of low growth in demand for PGMs, an average US$ platinum price received that was 28% lower than in
2014 and lower grades and throughput.
Our revenue of R3 044.7 million for 2015 is down 19% year-on-year due to a 13% lower realised average rand basket price and 5% lower
PGM production and sales compared to 2014.
While we had grade and throughput challenges throughout the year we were able to achieve a significant improvement in our cash
operating cost in the second half of the year. We closed the year with an average cost per platinum ounce of R14 504, which was a 7%
improvement on our cash operating cost for the first half of the year. The cash unit cost per platinum ounce increased by 16% from
R12 463 to R14 504 due to a 5% decrease in platinum ounce production, the front-end loading of the wage increases in terms of our
five-year wage agreement and above inflation utility increases.
The 19% decrease in our revenue and 6% increase in our cost of sales resulted in a significant reduction in our gross profit margin
from 23% in 2014 to a gross loss margin of 1% in 2015.
Given the decrease in PGM prices and the reduction in the market value of the company, the components of the BRPM JV
(BRPM, Styldrift I and Styldrift II), and goodwill allocated to each of these components, were assessed for impairment resulting in an
impairment charge of R4 466.2 million (attributable after tax R2 886.2 million).
Our loss before tax which includes the abovementioned impairment charge is R4 520.3 million for 2015 compared to a profit of
R844.5 million in 2014.
Total SLP expenditure for 2015 amounted to R74.5 million of which R63.8 million was expensed and R10.8 million was capitalised to the
Styldrift I project.
Other income increased by 172% from R25.2 million in 2014 to R68.7 million in 2015. This increase is due to higher royalty income from
Implats and a gain of R21.4 million on the fair value of forward exchange contracts (FECs) (ZAR:US$ and euro FECs) and call options
entered into in 2015. We entered into the euro FECs to hedge our euro exposure resulting from the acquisition of equipment for our
Styldrift I project from Europe. In 2014 our royalty income from Implats was negatively impacted by the lengthy industrial action
during the first five months of the year.
Our administration costs increased by 20% from R137.3 million in 2014 to R164.1 million in 2015, mainly due to a
R22.7 million increase in costs relating to the RBPlat home ownership scheme.
Finance income increased by 10% from R96.4 million in 2014 to R106.2 million in 2015 largely due to the treasury management system that
we implemented during 2015 which resulted in a 3% improvement (R21 million) in our return on cash investments and cash balances.
Finance costs increased from R5.1 million in 2014 to R25.1 million in 2015, mainly due to a R18.8 million interest expense incurred on
the PIC housing facility put in place in 2015.
The income tax charge increased to R76.9 million in 2015 mainly as a result of a R50 million once-off charge relating to RBR's 2008,
2009 and 2010 tax settlement. Deferred tax decreased from an expense of R222.0 million for the 12 months ended
31 December 2014 to a credit of R830.2 million for 2015. The deferred tax credit relates mainly to the impairment charge (R855 million
credit) and mining losses (R23 million credit) offset against a R60 million deferred tax charge relating to the RBR tax settlement
mentioned earlier.
RBPlat made a headline loss of 83 cents per share for the year ended 31 December 2015 compared to headline earnings of 239 cents per
share for the year ended 31 December 2014. The main contributors to this negative movement of 322 cents
per share were:
> 144.2 cents resulting from the 13% reduction in the average rand basket price of R17 256/Pt ounce
> total negative movement of 41.9 cents in 2015 due to the pipeline revaluation
> 57.5 cents attributable to the settlement of the tax dispute with SARS described previously (R50 million income tax and R60 million
deferred tax)
> 90.6 cents attributable to mining inflation increase in cash costs
> positive 12.4 cents relating to other movements.
Natural capital
Addressing the causes and adapting to the impacts of climate change is core to our strategy, which seeks to deliver
More than mining by creating economic value for all our stakeholders. During 2015, our new climate change policy and strategy was
approved by the Board in line with our endorsement of the UN Caring for Climate initiative, which is the largest business movement to
address climate change. We have participated in the Preparing Business for Paris Campaign (COP21) and have committed ourselves to:
> ensuring responsible corporate engagement in climate policy
> providing climate change information in mainstream corporate reports.
The Board approved the water and energy targets for the next ten years and also adopted detailed plans for achieving our energy targets
following a detailed review of energy efficiencies in our operating businesses.
We have taken steps to reduce our dependence on Magalies Water by building a water treatment plant at BRPM which was commissioned
during the year. It will provide us with four megalitres of treated industrial water for use in certain concentrator processes, which
is expected to reduce our use of Magalies Water in 2016.
We are proud that RPBlat's latest CDP disclosure and performance score improved 10% in the year of COP21, from 87% C in 2014 to 96%
B in 2015.
Market review
Platinum
The average dollar platinum price for 2015 was US$1 053/oz ending off the year at a reduced level of $868/oz with the macro-economic
influences that were negative for commodities towards the end of 2014 continuing through 2015. South African platinum supply was at
its highest level of 4.1Moz since 2013. Low prices led to a 1% drop in recycling volumes from autocatalysts and jewellery. Automotive
demand rose by 4% to a seven-year high of 3.42Moz, largely due to higher diesel output and tighter EU emission limits. Jewellery demand
fell 5% to 2.58Moz with the strong growth in India partly offsetting the weak Chinese market. The surge in Japanese investment as
platinum fell below Y4 000 per gram in July 2015 outweighed ETF selling in the USA and Europe.
Palladium
The palladium supply rose by 6% to 6.77Moz in 2015 as South African output recovered. Weak PGM prices have led to hoarding by scrap
collectors, but autocatalyst recycling is still up 100koz. Gross palladium demand was up 195koz in 2015 to 10Moz. Autocatalyst
consumption set a new record of 7.68Moz in 2015, but the growth rate will slow as the Chinese car market growth slows. Despite negative
investment demand the palladium market remained in fundamental deficit of 865koz for 2015.
Rhodium
A rebound in the South African supply pushed rhodium nearer to balance, with a 25koz deficit in 2015. Primary supply rose by 20% to
701koz, partly offset by a 9% drop in autocatalyst recoveries of rhodium. Automotive demand rose slightly in 2015 to 858koz, as vehicle
production rose, while industrial and other demand were stable.
Changes to the board of directors
Shareholders were advised during the year under review that Mr LM Ndala resigned and Mr V Nhlapo was appointed to the Board on
24 November 2015. Mr Ndala made a very valuable contribution to the Board during the nearly three years he has been a director of
RBPlat. The Board welcomes Mr Nhlapo and looks forward to his contribution as an experienced miner who is familiar with RBPlat's
operations.
Outlook
In 2016 we will continue to focus on achieving operational excellence, zero fatalities, maintaining the improvement in our LTIFR and
SIFR, returning to the productivity levels of 2014 at BRPM and delivering 50kt per month from Styldrift I by end of 2016.
Our key operational challenges in 2016 will be to ensure operational stability, volume delivery, grade optimisation and cost
containment in order to maximise our cash flow. Zero harm, astute cost control and maintaining stable labour and stakeholder relations
will be critical success factors for 2016.
We anticipate that PGM prices will remain at their currently depressed levels at least for the next 12 months. Our business and
operational planning for 2016 is based on an assumed average basket price of R17 500/Pt ounce (2015 real terms) with our SIB, BRPM
Phase III replacement and Styldrift I expansion related capital expenditure being aligned accordingly.
Styldrift I remains a key component of our organic growth strategy and as such we will continue to develop, construct and equip long
lead items and infrastructure required to support ramp up when market conditions improve. Prudent expenditure will however, be
required in the medium term to ensure the Styldrift I project continues to progress without impacting the overall health of our
business.
At our assumed revenue basket price for 2016, a total of R1 billion capital expenditure is scheduled at Styldrift I during 2016, of
which we estimate approximately R600 to R700 million will be funded from cash flow generated by our BRPM operations and Styldrift
on-reef development. We have the flexibility to pull back some of the infrastructure spend on the project should the average rand
basket price reduce below our assumed level of R17 500/Pt ounce for a prolonged period.
Total joint venture capital expenditure for 2016, including escalation and contingencies, is forecast at around R1.3 billion, the key
driver being the Styldrift I capital construction programme. SIB capital expenditure is forecast at between 4 and 5% of operating
expenditure.
Joint venture production for 2016, subject to any unforeseen operational disruptions, is forecast to increase (in line with the revised
Styldrift I construction schedule) to between 2.75 and 2.9Mt at a 4E built-up head grade of 3.95 to 4.05g/t. The reduction in built-up
head grade is directly attributable to the high percentage of on-reef development at Styldrift I (related to workshop infrastructure in
2016), which Styldrift I will contribute to our overall production.
We will also continue to focus on maintaining optimal flexibility and actively pursue value enhancing opportunities which, if
appropriate, will be put to our shareholders for their consideration.
We expect the Group after taking working capital requirements and the above assumptions into account, to end 2016 with a positive cash
balance, with the likelihood that the R500 million revolving credit facility secured in January 2016 will remain unutilised by end of
2016.
Directors' responsibility statement
The summary consolidated annual financial statements included in this announcement are the full responsibility of the directors.
The directors confirm that the financial information has been correctly extracted from the underlying 2015 audited consolidated
annual financial statements.
SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2015
Group
2015 2014
audited audited %
Notes R (million) R (million) change
Assets
Non-current assets 17 148.8 19 969.9 (14.1)
Property, plant and equipment 10 129.7 10 889.5 (7.0)
Mineral rights 5 766.0 6 518.4 (11.5)
Goodwill 863.3 2 275.1 (62.1)
Environmental trust deposits 114.9 113.6 1.1
Employee housing loan receivable 4 157.7 108.8 44.9
Employee housing benefit 51.4 36.9 39.3
Insurance investment 5 31.0 - 100.0
Deferred tax asset 34.8 27.6 26.1
Current assets 2 610.5 3 534.0 (26.1)
Employee housing benefit 4.3 3.0 43.3
Employee housing assets 6 264.2 54.8 382.1
Inventories 55.1 51.7 6.6
Trade and other receivables 1 365.7 1 558.0 (12.3)
Current tax receivable 3.6 2.3 56.5
Cash and cash equivalents 7 917.6 1 864.2 (50.8)
Total assets 19 759.3 23 503.9 (15.9)
Equity and liabilities
Total equity 14 484.3 18 196.3 (20.4)
Share capital 1.9 1.9 0.0
Share premium 9 366.1 9 329.2 0.4
Retained earnings 1 285.9 4 330.7 (70.3)
Share-based payment reserve 194.7 176.6 10.2
Non-distributable reserve 71.8 71.8 0.0
Non-controlling interest 3 563.9 4 286.1 (16.8)
Non-current liabilities 4 125.7 4 574.9 (9.8)
Deferred tax liability 3 663.7 4 486.7 (18.3)
PIC housing facility 8 366.9 ' 100.0
Restoration and rehabilitation provision 95.1 88.2 7.8
Current liabilities 1 149.3 732.7 56.9
Trade and other payables 1 149.3 726.1 58.3
Employee housing facility ' 6.6 (100.0)
Total equity and liabilities 19 759.3 23 503.9 (15.9)
The notes on pages 18 to 28 form an integral part of these summary consolidated annual financial statements.
SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2015
Group
2015 2014
audited audited %
Notes R (million) R (million) change
Revenue 11 3 044.7 3 767.5 (19.2)
Cost of sales 12 (3 084.5) (2 902.2) (6.3)
Cost of sales excluding depreciation,
amortisation and movement in inventories (2 640.2) (2 477.5) (6.6)
Depreciation and amortisation (429.2) (435.1) 1.4
(Decrease)/increase in inventories (15.1) 10.4 (245.2)
Gross (loss)/profit (39.8) 865.3 (104.6)
Other income 68.7 25.2 172.6
Administration expenses (164.1) (137.3) (19.5)
Corporate office (126.3) (122.2) (3.4)
Housing project (37.8) (15.1) (150.3)
Impairment of non-financial assets 13 (4 466.2) ' (100.0)
Finance income 106.2 96.4 10.2
Finance cost (25.1) (5.1) (392.2)
(Loss)/profit before tax (4 520.3) 844.5 (635.3)
Income tax credit/(expense) 753.3 (245.7) 406.6
Income tax (76.9) (23.7) (224.5)
Deferred tax 830.2 (222.0) 474.0
Net (loss)/profit for the period (3 767.0) 598.8 (729.1)
Other comprehensive income ' '
Total comprehensive (loss)/income (3 767.0) 598.8 (729.1)
Total comprehensive (loss)/income attributable to:
Owners of the Company (3 044.8) 440.9 (790.6)
Non-controlling interest (722.2) 157.9 (557.4)
Basic (loss)/earnings per share (cents/share) 18 (1 589.2) 238.6 (766.1)
Diluted (loss)/earnings per share (cents/share) 18 (1 589.0) 238.0 (767.6)
Headline (loss)/earnings per share (cents/share) 18 (83.2) 238.6 (134.9)
The notes on pages 18 to 28 form an integral part of these summary consolidated annual financial statements.
SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2015
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)
2015
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
Share'based payment expense ' ' ' 55.0 ' ' 55.0 ' 55.0
Mahube ordinary shares vested
31 March 2015 187 971 ' 12.2 (12.2) ' ' ' ' '
2012 BSP shares vested in April 2015 424 985 ' 24.7 (24.7) ' ' ' ' '
Total comprehensive loss ' ' ' ' ' (3 044.8) (3 044.8) (722.2) (3 767.0)
Balance at
31 December 2015 191 743 613 1.9 9 366.1 194.7 71.8 1 285.9 10 920.4 3 563.9 14 484.3
2014
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 expense ' ' ' 48.2 ' ' 48.2 ' 48.2
Mahube ordinary shares vested
31 March 2014 187 971 ' 12.2 (12.2) ' ' ' ' '
2011 BSP shares vested in
March/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)
Rights followed on treasury shares ' ' (6.4) ' ' ' (6.4) ' (6.4)
Share options exercised 384 217 ' 19.1 ' ' ' 19.1 ' 19.1
RPM 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
* The number of shares is net of 1 982 760 (2014: 1 762 632) 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.
The notes on pages 18 to 28 form an integral part of these summary
SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2015
Group
2015 2014
audited audited %
R (million) R (million) change
Cash flows from operating activities
Cash generated by operations 601.9 1 358.5 (55.7)
Interest paid (0.6) (1.1) 45.5
Interest received 86.4 80.3 7.6
Dividend received 9.7 14.2 (31.7)
Tax refund 0.4 ' 100.0
Tax paid (78.6) (25.4) (209.4)
Net cash flow generated by operating activities 619.2 1 426.5 (56.6)
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment 0.4 ' 100.0
Acquisition of property, plant and equipment (2 018.4) (1 675.6) (20.5)
Acquisition of employee housing assets (262.5) (138.2) (89.9)
Acquisition of insurance investment (30.0) ' (100.0)
Increase in environmental trust deposits (2.8) (0.1) (2 700.0)
Call option premiums paid (9.2) ' (100.0)
Net cash flow utilised by investing activities (2 322.5) (1 813.9) (28.0)
Cash flows from financing activities
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 amount owing to RPM 436.4 ' 100.0
Drawdown of PIC housing facility 326.9 ' 100.0
(Decrease)/increase in employee housing facility (6.6) 6.6 (200.0)
Net cash flow generated by financing activities 756.7 1 478.7 (48.8)
Net (decrease)/increase in cash and cash equivalents (946.6) 1 091.3 (186.7)
Cash and cash equivalents at beginning of the year 1 864.2 772.9 141.2
Cash and cash equivalents at end of the year 917.6 1 864.2 (50.8)
NOTES TO THE SUMMARY CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
1 Basis of preparation
The summary consolidated annual 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 annual 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 previous consolidated
annual financial statements.
The summary consolidated annual financial statements for the year ended 31 December 2015 were prepared under the supervision of the
Financial Director, Martin Prinsloo CA(SA).
2 Accounting policies
The summary consolidated annual financial statements have been prepared under the historical 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 of this review period.
3 Audit opinion
These summary consolidated annual financial statements for the year ended 31 December 2015 have been audited by PricewaterhouseCoopers
Inc., who expressed an unqualified opinion thereon. The auditor also expressed an unqualified opinion on the consolidated annual
financial statements from which these summary consolidated annual financial statements were derived. A copy of the auditor's report on
the summary consolidated annual 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 housing loan receivable
Group
2015 2014
as at 31 December R (million) R (million)
Opening balance 108.8 '
Plus: Houses sold to employees during the year (inclusive of VAT) 61.1 148.0
Plus: Interest capitalised (including fair value interest adjustment) 10.1 1.8
Less: Settlement of housing loan and impairment (0.6) '
Less: Employee housing benefit reallocation (21.7) (41.0)
Closing balance 157.7 108.8
5 Insurance investment
An amount of R30 million was invested in an insurance investment relating to the RBPlat housing project. The fair value adjustment for
the year was R1 million.
6 Employee housing assets
During the period under review, land to the value of R260.4 million was acquired for Phase 2 of the RBPlat housing project. Phase 2 of
the RBPlat housing project is a five year project aimed to deliver a further 3 100 houses to RBPlat employees.
7 Available funds
RBPlat had cash and near cash investments on hand at 31 December 2015 of R917.6 million. Included in the R917.6 million cash balance is
restricted cash of R60.5 million ring-fenced for the RBPlat housing project. The Group has an intra-month funding working capital
requirement which is met through a R458 million working capital facility of which R158.9 million has been utilised for guarantees at
31 December 2015.
8 PIC housing facility
The PIC facility was used to fund the acquisition of land for Phase 2 of the RBPlat housing project as well as the insurance investment
referred to in Notes 5 and 6. The PIC facility is a R2.2 billion facility accruing interest at CPI plus a margin of 1%. Security for
the PIC facility is ring-fenced to the RBPlat housing project assets with no recourse to the BRPM JV business.
The Group recognises the difference between the fair value of the PIC housing facility at initial recognition and the transaction price
as a fair value adjustment to the loan. The initial difference is annualised over the term of the PIC housing facility.
Group
2015 2014
as at 31 December R (million) R (million)
Opening balance ' '
Plus: Drawdowns 326.9 '
Plus: Transaction costs capitalised to loan 22.3 '
Plus: Contractual interest charge capitalised to loan 15.1 '
Plus: Fair value interest charges capitalised to loan 3.7 '
Less: Amortisation of fair value adjustment to loan (1.1) '
Closing balance 366.9 '
9 Capital commitments
Capital commitments relate to the Styldrift I and BRPM Phase III projects.
Group
2015 2014
as at 31 December R (million) R (million)
Contracted commitments 608.7 887.4
Approved expenditure not yet contracted for 4 523.0 5 008.7
Total 5 131.7 5 896.1
The capital commitments reflect 100% of the BRPM JV project commitments. In terms of the BRPM JV Agreement, Royal Bafokeng Resources
(Pty) Ltd must fund 67% thereof and Rustenburg Platinum Mines Ltd (RPM) the remaining 33%.
Should either party elect not to fund their share, their interest will be diluted according to the terms of the BRPM JV Agreement.
Group
10 Guarantees and contingencies
10.1 Guarantees
Group
2015 2014
as at 31 December R (million) R (million)
Royal Bafokeng Resources Proprietary Limited, a wholly-owned
subsidiary of RBPlat, granted the following guarantees:
Eskom to secure power supply for Styldrift I 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 for rehabilitation of land disturbed
by mining activities at the BRPM JV 82.6 77.5
Department: Mineral Resources for the rehabilitation of land
disturbed by prospecting/mining 1.3 1.3
Employee housing guarantee ' 3.5
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 at 31 December 158.9 157.3
10.2 Contingent liability
The BRPM JV may have a potential exposure to remediate groundwater and soil pollution that may exist where the JV operates. The
operations continue to monitor and mitigate impacts if and when they arise. Numerous scientific, technical and legal studies still need
to be embarked on to scientifically quantify the impact and the most appropriate remediation options. The ultimate outcome of the
matter cannot presently be determined and no liability has been raised in the annual financial statements. BRPM constructed a water
treatment plant in 2015 which will improve the effective use of water.
11 Revenue
Group
2015 2014
for the year ended 31 December R (million) R (million)
Concentrate sales ' production from BRPM concentrator 2 607.1 3 339.6
UG2 toll concentrate sales 437.6 427.9
Total revenue 3 044.7 3 767.5
Revenue and concentrate trade debtors are fair valued every month following the month of delivery of the concentrate to RPM until the
price is fixed in the third month following delivery.
The fair value adjustment is recognised in revenue.
12 Cost of sales
Group
2015 2014
for the year ended 31 December R (million) R (million)
Labour 946.3 883.8
Utilities 233.5 208.5
Contractor costs 633.4 541.9
Materials and other mining costs 694.5 692.5
Materials and other mining costs - BRPM JV 734.7 729.7
Elimination of intergroup charges (40.2) (37.2)
Movement in inventories 15.1 (10.4)
Depreciation - Property, plant and equipment 366.9 369.8
Amortisation - Mineral rights 62.3 65.3
Share-based payment expense 29.5 21.8
Social and labour plan expenditure 63.8 110.3
State royalties 10.4 12.6
Styldrift incidental expenses 5.5 3.8
Retrenchments 20.5 -
Other 2.8 2.3
Total cost of sales 3 084.5 2 902.2
13 Impairment of non-financial assets
BRPM Housing
operations Styldrift I assets 2015 2014
for the year ended 31 December R (million) R (million) R (million) R (million) R (million)
Impairment of property, plant and equipment 2 362.3 - - 2 362.3 -
Impairment of mineral rights 690.1 - - 690.1 -
Impairment of goodwill 134.6 1 277.2 - 1 411.8 -
Impairment of employee housing loan
receivable and benefit - - 2.0 2.0 -
Impairment charge for the year 3 187.0 1 277.2 2.0 4 466.2 -
Less: Tax effect (854.7) - - (854.7) -
Less: Non-controlling interest (725.3) - - (725.3) -
Net impairment 1 607.0 1 277.2 2.0 2 886.2 -
With the listing of the Company in 2010 the property, plant and equipment and mineral rights were fair valued and goodwill was
recognised for RBR's 67% interest in the BRPM JV. The goodwill was calculated as the difference between the purchase consideration for
the 67% interest in the BRPM JV and the Group's share of net assets acquired for each of the cash-generating units (CGUs) within the
BRPM JV being the BRPM operations, Styldrift I and Styldrift II. No goodwill was attributed to non-controlling interest.
Given the decrease in PGM prices and the reduction in the market value of the Company, the CGUs within the BRPM JV and the goodwill
allocated to each CGU were assessed for impairment by comparing the respective recoverable amounts to the carrying amounts for each
CGU. The fair value adjustment to property, plant and equipment and of the fair value adjustment to mineral rights as well as the
goodwill allocated to BRPM operations were impaired. The recoverable amount for the BRPM operations is R4.6 billion. A portion of
goodwill allocated to Styldrift I was impaired. The recoverable amount for Styldrift I is R6.0 billion. There was no impairment of
goodwill allocated to Styldrift II. The recoverable amounts have been determined on a fair value less costs to sell basis using
discounted cash flow models and attributable resource values. This is a fair value measurement classified as level 3. The impairment
relating to the employee housing loan receivable and employee housing benefit is as a result of agreements being terminated due to
dismissals, resignations or cancellations.
14 Related party transactions
The Group is controlled by Royal Bafokeng Platinum Holdings Proprietary Limited (incorporated in South Africa), which owns 52.31% of
RBPlat's shares. RPM owns 11.57% of RBPlat's shares and the remaining 36.12% are widely held.
The Group's ultimate parent is Royal Bafokeng Platinum Holdings Proprietary Limited (RBH). RBH is an investment holding company with a
large number of subsidiaries and associates and is incorporated in South Africa.
Group
2015 2014
for the year ended 31 December R (million) R (million)
BRPM Joint Venture balances at 31 December:
Amount owing by RPM for concentrate sales 1 181.5 1 344.6
Amount owing to RPM for contribution to BRPM JV
(working capital nature) 839.7 403.3
Amount owing by RPM for housing project costs 71.8 71.8
BRPM Joint Venture transactions:
Concentrate sales to RPM 3 099.3 3 767.5
Associate of holding company balances at 31 December:
Amount owing by Impala Platinum Limited for the fourth quarter royalty 12.7 10.8
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) 10.3 7.2
Impala Platinum Limited for royalty income (an associate of RBH) 46.7 18.2
Geoserve Exploration Drilling Company for exploration drilling on
Boschkoppie and Styldrift (a subsidiary of RBH) 7.9 17.0
Trident South Africa Proprietary Limited for steel supplies
(a subsidiary of RBH) 3.6 1.6
Tarsus Technologies for electronic equipment purchases
(a subsidiary of RBH) ' 1.6
Royal Bafokeng Administration for bulk water supply
(a subsidiary of RBH) ' 5.1
Mtech Industrial for supply and installation of heat pumps
(a subsidiary of RBH) 1.3 3.1
Royal Marang Hotel for accomodation and conferences
(a subsidiary of RBH) 0.4 0.9
Fees paid to RBH in respect of rights offer ' 4.2
Fees paid to non-executive directors (RBH/Mogs) 0.7 0.6
15 Dividends
No dividends have been declared or proposed in the current period (2014: nil).
16 Financial risk management
Financial risk factors: Fair value determination
The table below analyses financial instruments 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 and 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 financial assets measured at fair value as well as the financial assets and financial liabilities
measured at amortised cost but for which fair value disclosure are provided at 31 December.
Level 1 Level 2 Level 3
R (million) R (million) R (million)
2015
Financial assets at fair value through profit or loss
Environmental trust deposits1 ' 107.4 '
Insurance investment2 ' 31.0 '
Forward exchange contracts and call options3 ' 11.9 '
Loans and receivables
Employee housing loan receivable4 ' ' 157.7
Financial liabilities at amortised cost
PIC housing facility4 ' ' 366.9
2014
Financial assets at fair value through profit or loss
Environmental trust deposits1 ' 108.9 '
Insurance investment2 ' ' '
Loans and receivables
Employee housing loan receivable4 ' ' 108.8
Financial liabilities at amortised cost ' ' '
PIC housing facility4 ' ' '
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 values were determined using market prices for listed investments and discounted cash flow models for unlisted
investments.
3. The fair values of the forward exchange contracts and call options are based on the mark to market values.
4. The fair values were determined using discounted cash flow models.
17 Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments,
has been identified as the Executive Committee of the Company, that makes strategic decisions.
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. BRPM and Styldrift I are shown as separate segments. In addition, due to the different nature and
significance of the employee home ownership scheme, it was decided to show housing as a seperate segment. The Styldrift II
pre-feasibility study has been completed. Once a feasibility study is completed, it will move into development phase and will then be
reported on as a seperate segment.
The Executive Committee of the Company is regarded as the chief operating decision-maker.
17.1 Segmental statement of comprehensive income
For the year ended 31 December 2015 For the year ended 31 December 2014
BRPM Styldrift BRPM JV Corporate BRPM Styldrift BRPM JV Corporate
mining mining mining RBPlat office and mining mining mining RBPlat office and
segment segment segment housing consolidation segment segment segment housing consolidation
(A) (B) (A + B) segment adjustment Total (A) (B) (A + B) segment adjustment Total
R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million)
Concentrate sales 3 034.0 10.7 3 044.7 ' ' 3 044.7 3 761.9 5.6 3 767.5 ' ' 3 767.5
Cost of sales (2 933.8) (6.1) (2 939.9) ' (144.6) (3 084.5) (2 952.5) (13.3) (2 965.8) ' 63.6 (2 902.2)
Cash cost of sales excluding
depreciation and amortisation (2 664.5) (5.5) (2 670.0) ' 29.8 (2 640.2) (2 704.1) (13.3) (2 717.4) ' 239.9 (2 477.5)
Depreciation (254.2) (0.6) (254.8) ' ' (254.8) (258.8) ' (258.8) ' ' (258.8)
Additional depreciation and
amortisation on purchase
price allocation of mining
assets ' ' ' ' (174.4) (174.4) ' ' ' ' (176.3) (176.3)
Movement in inventories (15.1) ' (15.1) ' ' (15.1) 10.4 ' 10.4 ' ' 10.4
Gross profit/(loss) per
segment and total 100.2 4.6 104.8 ' (144.6) (39.8) 809.4 (7.7) 801.7 ' 63.6 865.3
Other income 67.1 (1.0) 66.1 2.8 (0.2) 68.7 20.2 4.6 24.8 0.4 ' 25.2
Total administration
expenditure ' ' ' (37.8) (126.3) (164.1) ' ' ' (15.1) (122.2) (137.3)
Impairment of non-financial
assets (3 052.4) ' (3 052.4) (2.0) (1 411.8) (4 466.2) ' ' ' ' ' '
Net finance income 8.4 0.3 8.7 6.6 65.8 81.1 7.2 0.7 7.9 (7.1) 90.5 91.3
(Loss)/profit before tax per
segment and total (2 876.7) 3.9 (2 872.8) (30.4) (1 617.1) (4 520.3) 836.8 (2.4) 834.4 (21.8) 31.9 844.5
Taxation 753.3 (245.7)
(Loss)/profit after tax (3 767.0) 598.8
Attributable to owners
of the Company (3 044.8) 440.9
Attributable to non-
controlling interest (722.2) 157.9
17.2 Segmental statement of financial position
For the year ended 31 December 2015 For the year ended 31 December 2014
BRPM Styldrift BRPM JV Corporate BRPM Styldrift BRPM JV Corporate
mining mining mining RBPlat office and mining mining mining RBPlat office and
segment segment segment housing consolidation segment segment segment housing consolidation
(A) (B) (A + B) segment adjustment Total (A) (B) (A + B) segment adjustment Total
R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million)
Non-current assets 5 786.0 10 359.2* 16 145.2 240.6 763.0 17 148.8 6 031.0 9 131.7 15 162.7 145.7 4 661.5 19 969.9
Current assets 1 553.9 101.1 1 655.0 342.0 613.5 2 610.5 1 629.6 34.6 1 664.2 102.9 1 766.9 3 534.0
Employee housing current assets ' ' ' 268.5 ' 268.5 ' ' ' 57.8 ' 57.8
Inventories 37.3 17.8 55.1 ' ' 55.1 51.7 ' 51.7 ' ' 51.7
Trade and other receivables 1 190.5 83.3 1 273.8 13.0 78.9 1 365.7 1 166.5 34.6 1 201.1 42.2 314.7 1 558.0
Current tax receivable ' ' ' ' 3.6 3.6 ' ' ' ' 2.3 2.3
Cash and cash equivalents 326.1 ' 326.1 60.5 531.0 917.6 411.4 ' 411.4 2.9 1 449.9 1 864.2
Total assets per statement of
financial position 7 339.9 10 460.3 17 800.2 582.6 1 376.5 19 759.3 7 660.6 9 166.3 16 826.9 248.6 6 428.4 23 503.9
Non-current liabilities 82.0 13.1 95.1 366.9 3 663.7 4 125.7 77.8 10.4 88.2 ' 4 486.7 4 574.9
Deferred tax liability ' ' ' ' 3 663.7 3 663.7 ' ' ' ' 4 486.7 4 486.7
PIC facility ' ' ' 366.9 ' 366.9 ' ' ' ' ' '
Restoration and rehabilitation
provision 82.0 13.1 95.1 ' ' 95.1 77.8 10.4 88.2 ' ' 88.2
Current liabilities 3 148.4 108.1 3 256.5 259.5 (2 366.7) 1 149.3 1 693.9 2.3 1 696.2 270.6 (1 234.0) 732.8
Total liabilities per statement
of financial position 3 230.4 121.2 3 351.6 626.4 1 297.0 5 275.0 1 771.7 12.7 1 784.4 270.6 3 252.7 5 307.7
*Includes Styldrift II mineral rights
17.3 Segmental statement of cash flows
For the year ended 31 December 2015 For the year ended 31 December 2014
BRPM Styldrift BRPM JV Corporate BRPM Styldrift BRPM JV Corporate
mining mining mining RBPlat office and mining mining mining RBPlat office and
segment segment segment housing consolidation segment segment segment housing consolidation
(A) (B) (A + B) segment adjustment Total (A) (B) (A + B) segment adjustment Total
R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million) R (million)
Net cash flow generated/
(utilised) by operating
activities 622.5 44.9 667.4 (11.5) (36.7) 619.2 1 368.1 1.7 1 369.8 (73.8) 130.5 1 426.5
Cash flows from investing
activities
Proceeds on disposal of
property, plant and equipment 0.4 ' 0.4 ' ' 0.4 ' ' ' ' ' '
Acquisition of property,
plant and equipment (317.0) (1 746.5) (2 063.5) ' 45.1 (2 018.4) (389.3) (1 327.3) (1 716.6) (0.4) 41.4 (1 675.6)
Acquisition of employee
housing assets ' ' ' (262.5) ' (262.5) ' ' ' (138.2) ' (138.2)
Acquisition of insurance
investment ' ' ' (30.0) ' (30.0) ' ' ' ' ' '
Increase in environmental
trust deposits (2.8) ' (2.8) ' ' (2.8) (0.1) ' (0.1) ' ' (0.1)
Call option premiums paid ' (9.2) (9.2) ' ' (9.2) ' ' ' ' ' '
Net cash flow (utilised)/
generated by investing
activities (319.4) (1 755.7) (2 075.1) (292.5) 45.1 (2 322.5) (389.4) (1 327.3) (1 716.7) (138.6) 41.4 (1 813.9)
Cash flows from financing
activities
Cash investments by/
(distributions to)
BRPM JV shareholders (388.4) 1 710.8 1 322.4 ' (886.0) 436.4 (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)
Drawdowns in PIC housing facility ' ' ' 326.9 ' 326.9 ' ' ' ' ' '
Increase in intercompany loans ' ' ' 34.7 (34.7) ' ' ' ' 215.3 (215.3) '
(Decrease)/increase in employee
housing facility ' ' ' ' (6.6) (6.6) ' ' ' ' 6.6 6.6
Net cash flow (utilised)/
generated by financing
activities (388.4) 1 710.8 1 322.4 361.6 (927.3) 756.7 (762.3) 1 325.6 563.3 215.3 700.1 1 478.7
Net increase in cash and
cash equivalents (85.3) ' (85.3) 57.6 (918.9) (946.6) 216.4 ' 216.4 2.9 872.0 1 091.3
Cash and cash equivalents at
beginning of period 411.4 ' 411.4 2.9 1 449.9 1 864.2 195.0 ' 195.0 ' 577.9 772.9
Cash and cash equivalents at
end of period 326.1 ' 326.1 60.5 531.0 917.6 411.4 ' 411.4 2.9 1 449.9 1 864.2
18 (Loss)/earnings per share
The weighted average number of ordinary shares in issue outside the Group for the purposes of basic (loss)/earnings per share and the
weighted average number of ordinary shares for diluted (loss)/earnings per share are calculated as follows:
Group
2015 2014
for the year ended 31 December R (million) R (million)
Number of shares issued 193 726 374 167 737 114
Mahube Trust ' (281 957)
Management incentive scheme (2 595 717) (2 995 495)
Number of shares issued outside the Group 191 130 657 164 459 662
Adjusted for weighted shares issued during the year 461 403 20 337 340
Weighted average number of ordinary shares in issue
for earnings per share 191 592 060 184 797 002
Management incentive scheme 25 136 476 576
Weighted average number of ordinary shares in issue for
diluted earnings per share 191 617 196 185 273 578
Basic (loss)/earnings ' attributable to owners of
the Company R (million) (3 044.8) 440.9
Adjustments net of tax and non-controlling
interest R (million) 2 885.2 '
Headline (loss)/earnings R (million) (159.6) 440.9
Basic (loss)/earnings per share (cents/share) (1 589.2) 238.6
Diluted (loss)/earnings per share (cents/share) (1 589.0) 238.0
Headline (loss)/earnings per share (cents/share) (83.2) 238.6
Diluted headline (loss)/earnings per share (cents/share) (83.2) 238.0
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
V Nhlapo
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
Date: 01/03/2016 07:05:00 Supplied by www.sharenet.co.za
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