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ROYAL BAFOKENG PLATINUM LIMITED - Condensed Consolidated Interim Results for the six months ended 30 June 2016

Release Date: 01/08/2016 07:05
Code(s): RBP     PDF:  
Wrap Text
Condensed Consolidated Interim Results for the six months ended 30 June 2016

Royal Bafokeng Platinum Limited 
Incorporated in the Republic of South Africa
Registration number: 2008/015696/06 
Share code: RBP
ISIN: ZAE000149936
("RBPlat")

ROYAL BAFOKENG PLATINUM          
CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

KEY FEATURES

ACHIEVEMENTS
>  67% improvement in EBITDA margin
>  229% increase in headline earnings per share
>  Successfully completed the BRPM concentrator 250ktpm in-plant upgrade

IMPROVEMENTS
>  27% reduction in TIFR
>  37% reduction in LTIFR
>  10% increase in tonnes delivered
>  17% increase in tonnes milled
>  16% increase in 4E metals and platinum in concentrate

CHALLENGES
>  Cash operating unit cost increases

DISAPPOINTMENTS
>  Fatality at our BRPM North shaft
>  21%increase in SIFR


OPERATING AND FINANCIAL STATISTICS 
for the six months ended 
                                                     Unit            30 June 2016    30 June 2015          % change
Safety
Fatalities                                          number                      1               2                50
LTIFR                                       /200 000 hours                   0.32            0.51              37.3 
SIFR                                        /200 000 hours                   0.17            0.14             (21.4)
TIFR                                        /200 000 hours                   1.19            1.62              26.5
Production                                                    
Total tonnes delivered                                  kt                  1 296           1 178              10.0 
  BRPM                                                  kt                  1 156           1 167              (0.9)
  Styldrift                                             kt                    140              11           1 172.7
  Merensky                                              kt                  1 018             876              16.2 
  UG2                                                   kt                    278             302              (7.9)
Total development                                       km                   17.6            17.4               1.1 
  Working cost development                              km                   15.2            15.7              (3.2)
  Capital development                                   km                    2.4             1.7              41.2 
IMS ore reserve face length                             km                    5.9             6.1              (3.3)
IMS panel ratio                                      ratio                   1.57            1.67              (6.0)
Total tonnes milled                                     kt                  1 292           1 107              16.7 
  BRPM                                                  kt                  1 150           1 097               4.8 
  Styldrift                                             kt                    142              10           1 320.0 
  Merensky                                              kt                  1 015             810              25.3 
UG2                                                     kt                    277             297              (6.7)
UG2% milled                                              %                     21              27             (22.2)
Built-up head grade (4E)                               g/t                   4.01            4.03              (0.5)
  BRPM                                                  kt                   4.11            4.06               1.2 
  Styldrift                                             kt                   3.23            0.70             361.4 
  Merensky                                             g/t                   4.08            4.14              (1.4)
  UG2                                                  g/t                   3.75            3.72               0.8 
Metals in concentrate                                                                   
  4E*                                                  koz                  142.0           122.0              16.4 
  Platinum*                                            koz                   91.6            78.8              16.2 
  Palladium                                            koz                   37.9            32.3              17.3 
  Rhodium                                              koz                    8.3             7.5              10.7 
  Gold                                                 koz                    4.2             3.5              20.0 
  4E + Ruthenium and Iridium                           koz                  158.8           137.3              15.7 
  Nickel                                                 t                    868             734              18.3 
  Copper                                                 t                    559             466              20.0 
Labour                                                    
Total labour                                        number                  7 229           8 824                 18
  Working cost labour                               number                  6 330           6 279               (0.8)
  Capital labour                                    number                    899           2 545               64.7 
Tonnes milled per total employee costed              t/emp                     30              29                3.4 
Financial                                                    
Cash operating cost                                    R'm                  1 329            1 228              (8.2)
Cash operating cost/tonne milled                       R/t                  1 156            1 119              (3.3)
Cash operating cost/4E ounce**                        R/oz                 10 236           10 080              (1.5)
Cash operating cost/platinum ounce**                  R/oz                 15 882           15 615              (1.7)
Total BRPM JV capital expenditure***                   R'm                    517            1 141              54.7 
  Stay-in-business capital                             R'm                     56               54              (3.7)
  SIB% of operating cost                                 %                    4.2              4.4               4.5 
  Replacement capital                                  R'm                     43               92              53.3 
  Expansion capital                                    R'm                    418              995              58.0 
Gross profit margin                                      %                   11.4              0.6             1 800
EBITDA margin                                            %                   18.5             11.1              66.7
Average basket price                               R/Pt oz                 19 680           18 062               9.0
Average R:US$                                        R/US$                   15.4             11.9              29.4    

*   Includes 12.1koz (4E) and 7.9koz (Pt) from Styldrift for the first six months of 2016.
**  Unit cash costs are calculated excluding tonnages, ounces and costs generated by Styldrift I on-reef development.
*** The R517 million (2015: R1 141 million) capital expenditure for the BRPM JV excludes the elimination of intergroup charges of 
    R9 million (2015: R19 million) resulting in RBPlat Group capital expenditure of R508 million (2015: R1 122 million).
Please note that any differences in various percentages in this table and in the commentary are due to rounding.


COMMENTARY

Overview
The first six months of 2016 continued with no meaningful improvement in the PGM market. Our improved average basket price, lower than 
planned expenditure at Styldrift I, together with our ongoing focus on cash preservation and maintaining a strong balance sheet, 
resulted in R1 033.2 million cash on hand at the end of June 2016.

Through a combination of continued healthy labour relations, an improvement in our overall safety performance, operational flexibility 
at Bafokeng Rasimone Platinum Mine (BRPM), and meaningful increases in Styldrift I’s contribution to production we were able to achieve 
operational stability and a consequent overall improvement in operational performance year-on-year. We have also been able to deliver 
against some of the key performance indicators that underpin our strategic pillars of Towards operational excellence and Build 
flexibility to ensure sustainability. The operational stability we have achieved also provides the basis for continued improvement in 
our operational performance in the future.

Tragically we had a loss of life at BRPM during the reporting period. Mr Mokone lost his life at our North shaft operation on 
12 May 2016. Our Board of directors (the Board) and management team extend their condolences to his family, friends and colleagues. 
Notwithstanding this tragic loss of life we have achieved pleasing improvements not only in most of our key safety metrics, but also 
in our safety systems, people behaviour and standards of compliance. Safety-related stoppages reduced by 73% and as a result the impact 
of safety stoppages on ounces lost improved from 14.3koz (4E) to 3.8koz (4E) compared to the same period in 2015. Achieving zero harm 
remains a key performance indicator of our strategic pillar Towards operational excellence which we are committed to achieving through 
the establishment of a resilient operating culture.

In terms of our third strategic pillar to Grow organically to position RBPlat to compete over the long term, development and 
construction activities at our Styldrift I growth project during the period under review are in line with our stated strategy of 
delaying the ramp-up by at least 12 months, while developing key infrastructure, establishing sufficient stoping face length to 
sustainably deliver 50ktpm and supporting an aggressive ramp-up in order to reach steady state by the first quarter of 2020. 

In line with our strategic pillar to Grow organically, we are pleased to announce that, in terms of section 102 of the Mineral and 
Petroleum Resources Development Act 28 of 2002, the Minister of Mineral Resources has approved the inclusion of the remaining extent 
of portion 10 (a portion of portion 4), portion 14 and portion 17 (a portion of portion 10) of the farm Frischgewaagd 96 JQ into the 
Styldrift mining right. As a result a significant proportion of the Frischgewaagd resources will be converted to reserves in the 
company’s annual Mineral Resources and Reserves Statement for 2016.

Financial capital
RBPlat delivered headline earnings of 77.8 cents per share for the six months ended 30 June 2016 compared to a headline loss of 
60.4 cents per share for the six months ended 30 June 2015. The main reasons for the improved earnings per share include:
>  a higher realised average rand basket price for the six months ended 30 June 2016 (14 cents per share increase)
>  revenue for the six months ended 30 June 2016 included a positive revaluation of the pipeline of R70.2 million while the 
   revaluation of the pipeline for the prior comparative period reflected a negative R12.8 million resulting in a total positive 
   movement of R83 million (21 cents per share increase)
>  a once-off deferred tax credit resulting from our housing project capitalisation (24 cents per share increase)
>  the impact of a once-off current and deferred tax charge related to the settlement of a taxation dispute with SARS relating to the 
   tax assessments for the 2008, 2009 and 2010 tax years that was processed during the previous corresponding period (57 cents per 
   share increase)
>  a reduced fair value depreciation and amortisation charge due to the impairment of fair value adjustments at the end of the 2015 
   financial year (13 cents per share increase).

Net revenue increased by 15.8% from R1 422.6 million in the first half of 2015 to R1 646.9 million for the reporting period due to a 
9% increase in the average rand basket price to R19 680 per platinum ounce in the first half of 2016 compared to R18 062 in 2015 and a 
6% increase in platinum ounces sold.

BRPM’s average cash operating cost per platinum ounce increased by 1.7% from R15 615 to R15 882 due to a 5% increase in platinum ounce 
production and cash operating costs being 8.2% higher.

Our gross profit margin improved from 0.6% to 11.4% for the period ended 30 June 2016. This was due to the 15.8% increase in net 
revenue and a 3.2% increase in total cost of sales for the six months ended 30 June 2016.

Depreciation and amortisation charges included in cost of sales were R50.7 million lower than those of the comparative period in 2015 
due to the fair value adjustments to property, plant and equipment and mineral rights allocated to BRPM being impaired in the latter 
part of 2015.

Earnings before interest, tax, depreciation and amortisation (EBITDA) as a percentage of revenue increased from 11.1% to 18.5% in the 
first half of 2016 mainly as a result of the increased revenue and administration costs being 19% lower.

Our other income increased by R1.5 million from R35.6 million in the first half of 2015 to R37.1 million for the period under review. 
This is due to the increase in the royalties paid by Impala from R22.2 million in 2015 to R29.9 million for the six months ended 
30 June 2016 as well as an increase in the fair value adjustment to the Nedbank equity-linked deposits from R2.7 million in 2015 to 
R10 million in 2016. Other income for the reporting period also included a loss of R8.7 million on the fair value of forward exchange 
contracts (FECs) (R:US$ and Euro FECs) and call options entered into in 2015 mainly to hedge Euro exposure for acquiring equipment from 
Europe for our Styldrift I project. This loss on the fair value of FECs and call options of R8.7 million in 2016 compares to a profit 
of R10.1 million in 2015.  

Finance income decreased by R17.5 million to R45.4 million due to a decrease in cash on hand as cash was invested in the BRPM JV 
expansion projects. 

Finance costs decreased from R7.4 million to R3.6 million mainly due to interest on the PIC housing facility being capitalised to 
housing assets for 2016.

Administration expenses decreased by R16.4 million to R72.2 million compared to the same period last year. The main reason for the 
decrease is that executives and senior management did not receive salary increases and bonuses in 2016.

The income tax charge decreased to R9.1 million as the comparative period income tax charge included a R50 million once-off charge 
relating to the 2008, 2009 and 2010 tax settlement. Deferred tax decreased by R84.7 million from R51.6 million for the six months ended 
30 June 2015 to a deferred tax credit of R33.1 million in 2016. The deferred tax credit in 2016 of R33.1 million consists of a 
R70 million once-off deferred tax credit relating to the tax effect of the housing capitalisation and a R36.9 million deferred tax 
expense due to increased mining income. The R51.6 million deferred tax expense for 2015 included a R60 million once-off charge relating 
to the 2008, 2009 and 2010 tax settlement.

At 30 June 2016 the RBPlat Group had cash and near cash investments of R1 033.2 million of which R37.7 million is ring-fenced to the 
RBPlat housing project. The Group has a R458 million working capital facility of which R158.9 million has been utilised for guarantees 
at 30 June 2016. RBPlat’s revolving credit facility (RCF) of R500 million remained undrawn at 
30 June 2016. 

Styldrift I on-reef development revenue cash receipts during the six months ended 30 June 2016 amounted to R102.6 million with 
R111.3 million outstanding and shown as part of trade receivables at 30 June 2016.

Manufactured capital
Production
Total tonnes delivered to concentrators for the reporting period increased by 10% to 1 296kt compared to the comparative period in 
2015, with Merensky tonnes delivered increasing by 16% to 1 018kt and UG2 tonnes delivered decreasing by 8% to 278kt. The net impact 
of this change in the mining mix resulted in the delivered UG2 contribution percentage decreasing by 19% from 26% to 21% for the first 
six months of this year. The increase in the Merensky contribution is directly attributable to higher on-reef development volumes 
delivered from Styldrift I, our organic growth project.

Working cost development decreased by 3% to 15.2km, the reduction being in line with the deferment of our South shaft UG2 footwall 
development as part of our ongoing cash preservation strategy. Development rates on both the North and South shaft Merensky horizons 
and North shaft UG2 horizon exceed current depletion rates. These development rates, combined with an additional focus on panel 
equipping resources have resulted in our IMS panel ratio increasing by 4% to 1.57 compared to the 1.51 we achieved at the end of 2015. 
Total development increased by 1% with the decrease in working cost development being offset by an increase in capital development at 
our Styldrift I project.


Higher mining volumes and improved mill availability at the BRPM concentrator compared to the first half of 2015 resulted in total 
tonnes milled increasing by 17% or 185kt to 1 292kt. Merensky milled tonnes were 25% higher at 1 015kt and UG2 tonnes milled decreased 
by 7% to 277kt. This resulted in the UG2 contribution being reduced to 21% compared to the 27% for the comparative period, in line with 
our target of a 20% UG2 contribution. Milled volumes from BRPM increased by 5% to 1 150kt.

The 4E built-up head grade decreased marginally by 0.5% from 4.03g/t (4E) to 4.01g/t (4E) despite the higher Merensky contribution to 
overall tonnes milled. The decrease is attributable to the increase in the lower grade on-reef development volumes from the Styldrift I 
project, in line with expectation and previous guidance. 

The 17% increase in milled volumes and 0.5% decrease in built-up head grade combined with stable recoveries yielded a 16% increase in 
4E and platinum ounce production, with 142koz (4E) and 92koz (Pt) metals being produced in concentrate.

Total labour reduced by 18% to 7 229 employees compared to the comparative period in 2015, with working cost labour increasing by 
0.8% or 51 persons and capital labour reducing by 1 646 employees compared to the previous reporting period. This increase in the 
working cost labour is mainly due to the introduction of in-stope roof bolting at our South shaft operation during the second half of 
2015 and additional support service personnel related to our revised safety strategy. The decrease in capital labour is as a direct 
result of the reduction in construction activities at our Styldrift I project and the winding up of capital development activities at 
our North shaft Phase III replacement project as it nears completion.

Notwithstanding the 0.8% increase in working cost labour, productivity improvements were realised in tonnes milled per total employee 
costed due to the higher milled volumes achieved and productivity directed initiatives. Tonnes milled per total employee costed 
increased by 3% compared to the comparative period in 2015.

Operating costs
Our total cash operating costs increased by 8% from R1 228 million to R1 329 million when compared to the first six months of last 
year. Notwithstanding cost savings in our water utility costs due to the implementation of our water treatment plant and cost 
management efforts to keep sundry, stores and consumable cost increases below CPI, significantly higher than CPI increases in labour 
and contractor costs remain a challenge for the industry. The 5% increase in BRPM milled volumes resulted in a unit cash cost per tonne 
milled increase of 3.3%, a unit cash cost per 4E ounce increase of 1.5% and a unit cash cost per platinum ounce increase of 1.7%.

Although we are pleased with the below CPI performance to date, the impact is diminished given the backdrop of high unit cost increases 
experienced in the first half of 2015. As such, our key challenge for the remainder of the year will be to continue maintaining unit 
cost increases below CPI. 

Capital expenditure
Total capital expenditure for the period under review amounted to R517 million, equating to a 55% or R624 million reduction compared to 
the first half of 2015. This reduction in expenditure is in line with the cash preservation initiatives we introduced during the second 
half of 2015 in response to the prevailing depressed market conditions. Expansion and replacement capital expenditure were reduced by 
R577 million. The key initiatives included:
>  scaling down construction-related activities at our Styldrift I project
>  deferring the 100ktpm concentrator module and overland conveyor belt from Styldrift I to the BRPM concentrator
>  deferring the Styldrift II feasibility study and associated exploration drilling
>  review of stay-in-business (SIB) expenditure requirements in the short to medium term.

SIB expenditure increased by 4% to R55.8 million compared to the same period in 2015, amounting to 4.2% of operating expenditure. 
This remains within our cash preservation strategy target of between 4 and 5% of operating expenditure.

Projects
BRPM Phase III replacement project
The Phase III project extends the North shaft Merensky decline system and associated infrastructure from 10 level to the mine boundary 
at 15 level. The project remains ahead of schedule and under budget ending the reporting period 93% complete against a planned 
completion of 89%. The project remains on track to be completed as per project schedule in 2017 despite the deferment of construction-
related activities on 14 and 15 level. All the lateral and decline development on the project is now complete. 

Capital expenditure for the reporting period amounted to R43.2 million resulting in a total project expenditure to date of 
R1 035 million.

Styldrift I expansion project
Development and construction activities progressed steadily during the first six months of 2016 with a total 2 068m of development 
having been completed and 140kt of ore being delivered to the concentrator at a grade of 3.23g/t (4E). The main construction activities 
during the reporting period focussed on establishing temporary workshop facilities, construction of Silo 2 and preparation for Silo 4 
construction and equipping of the Services shaft. 

Notwithstanding the steady progress made to date, development progress has not been to plan due to changes in our support methodology 
subsequent to the fatal accident in December 2015 and localised geotechnical conditions encountered on both 600 level and 642 level 
impacting on development crew performance. Several initiatives are currently being introduced by the operational team to improve 
production capacity and mitigate any slippage. These include:
>  introduction of dump trucks to reduce overall tramming distances
>  introduction of additional bolters and LHDs
>  mobilisation of additional secondary support crews
>  rock hoisting has been extended to night shift, previously only day shift
>  additional key trackless supervisory and operating staff recruited.

Finalisation of our revised capital and production schedule subsequent to the slow-down of construction activities has progressed well 
to date and on schedule for completion during the third quarter of this year. As part of the ongoing technical review process two 
issues were identified as having the potential of impacting both the schedule and costs due to their possible effect on productivity 
and mine design. These are in the process of being quantified as part of our change of scope process and they relate to:
>  an amendment of the regulations to the Mine Health and Safety Act relating to machinery and equipment with specific reference to 
   the implementation of collision avoidance systems on trackless underground machinery
>  revised regional shaft stability pillar requirements.

Capital expenditure on the project for the six months amounted to R414 million bringing total capital expenditure for the project to 
date to R5 891 million. 

BRPM concentrator upgrade
The BRPM concentrator “in-plant” activities related to the 250ktpm upgrade were successfully completed during the second quarter of the 
reporting period. Operational “stress tests” were conducted during the second quarter to verify that the plant’s operational capability 
meets its design capacity from a hydraulic load and metallurgical recovery point of view. 
All tests were successful.

“Out of plant” activities related to the silo construction and overland “tie-in” belt are yet to be completed. The project completion 
is forecast to be within budget, with R291.9 million having been spent on the project to date against a total budget of R349 million.

Human capital
Safety, health and wellness
During the first half of the year our key focus was on the ongoing implementation of our revised safety strategy and initiatives which 
we began implementing late in 2015. We were encouraged by the improvements we achieved of 58% and 48% in our serious injury frequency 
rate (SIFR) and lost time injury frequency rate (LTIFR), respectively, during the first quarter of 2016. However, while our total 
injury frequency rate (TIFR) and LTIFR for the first six months of the year reduced by 27% and 37% year-on-year, we recorded a 
disappointing 21% increase in our SIFR.

At RBPlat all our employees and volume contractors are members of a medical aid. We have identified the main health issues affecting 
our workforce and continually address these. Currently, TB is a major focus as is HIV/Aids management. In line with our commitment to 
screen each of our employees (including contractors) for TB three times over the next three years, 5 786 were screened during the first 
six months of 2016. Thirty-eight employees are currently on the RBPlat TB programme. In addition, 32 employees completed their 
treatment and were cured of TB during the first half of the year. None of our employees currently undergoing treatment for TB have 
multi-drug-resistant TB. We introduced a community TB screening programme in December 2015. Since then 1 215 community members have 
been screened for TB. Any community members suspected of having contracted TB are referred to the nearest clinic for further testing 
and treatment, where necessary.

Labour stability 
Labour stability continues to play a key role in our relationship with our unions and employees. To this end the parties have concluded 
a closed shop agreement in accordance with the provisions of section 26 of the Labour Relations Act 66 of 1995 resulting in the 
majority union (NUM) being the sole bargaining union at RBPlat. This agreement was voted for by 81% of the employees employed at our 
operations. The contractor companies operating at RBPlat's operations have similarly concluded closed shop agreements with their unions 
and employees.

Social and relationship capital
Our purpose is to create economic value that we can share with all our stakeholders. Our Sustainability and Stakeholder Engagement 
framework was reviewed, updated and approved by the Board in June 2016. This framework articulates RBPlat’s strategic commitment to 
sustainable development in line with the sustainable development goals adopted by the UN in 2015 and best practice stakeholder 
engagement. It is an integral part of our approach to risk management and guides our operations to do business in a sustainable manner, 
promotes sound environmental and social practices, encourages transparency and accountability and consolidates important aspects of 
embedding sustainability into the way we do business in our organisation. The framework was approved with three-year implementation 
plans which are continually monitored through Board committees.

Natural capital
Energy management
In line with our new Sustainability framework we have developed an energy management policy and energy management strategy which were 
approved by the Board in June 2016 to support the energy efficiency targets adopted in 2015. As a PGM producer we rely on energy and 
understand that its consumption represents a significant cost for the business and leads to the production and release of greenhouse 
gas emissions which contribute to global climate change. 

The strategy was approved with a three-year implementation plan which will enable us to proactively manage our energy risks, as well 
as related opportunities while supporting the commitments we have made in our Sustainability, Energy Management, Climate Change and 
Safety, Health and Environmental (SHE) policies.

Our concentrator plant performed well within the 2016 energy target of 52kWh/tonne treated and achieved an efficiency of 48.6kWh/tonne 
treated while our mining operations at BRPM achieved an efficiency of 66.7kWh/tonne hoisted, which is higher than the set target of 
59.5kWh/tonne hoisted. Energy saving initiatives identified as part of the approved energy management strategy will be implemented to 
ensure achievement of the efficiency targets.

Water management
Our operations are based in a water scarce region where the increase in demand for water has led to a shortage of water in some parts 
of the North West province. We commissioned our water treatment plant at the end of 2015 to enable us to reduce our use of Magalies 
water. The plant treated approximately 2.62Ml of water per day and produced 469.08Ml of water in the first six months of 2016.

The concentrator plant performed well within the 2016 water efficiency target of 0.49kl/tonne treated and achieved an efficiency of 
0.361kl/tonne treated while the mining operations at BRPM achieved an efficiency of 0.242kl/tonne hoisted, which is slightly higher 
than the set target of 0.206kl/tonne hoisted. 

In line with our Sustainability framework and our climate change strategy we are in the process of developing a formalised water 
management strategy to enable us to proactively manage our water risks and related opportunities. 

Market review
Platinum
Platinum demand is forecast to increase by 1% in 2016 as automotive and jewellery demand expand modestly and offset a slight decline in 
industrial usage. Western Europe is the largest diesel market and tightening emissions legislation and increasing vehicle sales should 
see platinum demand increase in 2016 even though diesel’s market share is gradually declining. European Union passenger car sales were 
up 9.4% in the first half of the year according to the European Automobile Manufacturers Association. 

Platinum jewellery demand in China, the largest jewellery market has been lacklustre so far in 2016, but other regions are expected to 
see increased jewellery sales helping push demand up year-on-year. India in particular is seeing rapid growth in platinum jewellery 
demand driven by Platinum Guild International’s Evara marketing campaign. The outlook for industrial demand is for an overall decline 
this year, as lower demand in both the glass and petroleum sectors outweighs increases in the medical and biomedical and other sectors, 
while chemical and electrical demand is little changed.

Platinum prices weakened towards the end of 2015 as the US Federal Reserve raised interest rates, the US dollar strengthened and the 
rand weakened. The price started the year at $872/oz but recovered by 15% to over $1 000/oz at the end of June 2016, just short of the 
price at the same time last year. A stronger rand-dollar exchange rate, platinum’s link to rising gold prices, solid automotive sales 
in Europe and the prospect of lower year-on-year supply from South Africa have aided the recovery in platinum prices.

Palladium
Palladium demand is projected to increase this year by 1% as its main use in autocatalysts is supported by increasing light vehicle 
sales which are expected to continue to advance in China and remain robust in the US. Palladium prices are dependent on global economic 
growth and particularly on the fortunes of China, which is the largest gasoline market and so a major driver of palladium demand. 
Falling confidence in China’s economic growth projections had seen the palladium price decline to below $500/oz at the beginning of 
2016. However, car sales grew ahead of expectations by just over 8% in the first half of 2016 according to the China Association of 
Automobile Manufacturers, boosted by new models and strong demand for SUVs, as well as ongoing support from a Chinese government 
stimulus package of tax cuts for vehicles with engines under 1.6 litres. Passenger car sales increased by over 17% in June helping to 
lift palladium prices to over $600/oz.

Rhodium
Rhodium demand is expected to drop by 4% in 2016 as thrifting in Western European diesel autocatalysts outweighs gains from gasoline 
three-way catalysts, particularly in China, and increased industrial usage. Unless there are further reductions to projected supply the 
market is likely to remain well supplied. South African supply is forecast to drop by approximately 10% in 2016, but this will only 
serve to keep the market balanced, when the market needs to destock metal that has accumulated since 2008.  

Outlook
In line with our strategy, one of our objectives during the second half of the year is to achieve zero fatalities, maintain the 
improvement in our LTIFR achieved to date and reverse the deterioration in our SIFR by year end so as to show a year-on-year 
improvement. Key to achieving this objective will be the continued implementation of our revised safety strategy and progress the 
business from a compliance based safety culture to a resilient based culture.

In addition to our unwavering approach to safety, focus will also be placed on meeting our strategic objectives with regards to 
production volumes, grade and cost reduction to maximise cashflow by:
>  consolidating operational flexibility and efficiency improvements made at BRPM during the first six months of 2016
>  ensuring Styldrift I remains optimally resourced to meet its development and construction targets to ensure successful execution
>  maintaining strict operational and capital cost control and management
>  maintaining operational stability through ongoing meaningful dialogue with organised labour and communities.

Joint venture production guidance for the full year is forecast at 2.75Mt to 2.90Mt at a 4E built-up head grade of between 3.95 and 
4.05g/t, subject to any unforeseen operational disruptions, and therefore remains in line with the previously communicated guidance. 
Total joint venture capital expenditure for the year remains estimated at R1.3 billion, with the key driver continued to be the 
construction programme for the Styldrift I project estimated at R1 billion. SIB expenditure is forecast to remain between 4 and 5% of 
operating expenditure for the remainder of the year.  

Numerous disruptions to mining have led to a lower projected outlook for South African platinum supply for the year with an expected 
reduction in output to approximately 4.17Moz. Meanwhile platinum recycling from scrap autocatalysts has been growing slower than 
anticipated owing to the ongoing shortfall of scrap volumes from vehicle dismantlers as low scrap steel prices dis-incentivise 
recycling activities. This, against a backdrop of steady platinum demand, should lead to a market shortfall for the year.


CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION 
as at 30 June 2016 
                                                                                 30 June              30 June          31 December 
                                                                                    2016                 2015                 2015 
                                                                                reviewed             reviewed              audited 
                                                            Notes             R (million)          R (million)          R (million) 
Assets   
Non-current assets                                                              17 328.6             20 984.2             17 148.8 
Property, plant and equipment                                                   10 307.6             11 844.4             10 129.7 
Mineral rights                                                                   5 748.6              6 490.3              5 766.0 
Goodwill                                                                           863.3              2 275.1                863.3 
Environmental trust deposits and 
environmental guarantees                                                           130.8                119.1                114.9 
Employee housing loan receivable                                                   162.9                149.6                157.7 
Employee housing benefit                                                            49.0                 47.9                 51.4 
Insurance investment                                                                31.6                 30.0                 31.0 
Deferred tax asset                                                                  34.8                 27.8                 34.8 
Current assets                                                                   2 738.1              3 078.6              2 610.5 
Employee housing benefit                                                             4.2                  4.0                  4.3 
Employee housing assets                                                            311.5                270.9                264.2 
Inventories                                                                         80.2                 97.7                 55.1 
Trade and other receivables                                                      1 307.8              1 393.8              1 365.7 
Current tax receivable                                                               1.2                    -                  3.6 
Cash and cash equivalents                                         6              1 033.2              1 312.2                917.6 
Total assets                                                                    20 066.7             24 062.8             19 759.3 
Equity and liabilities
Total equity                                                                    14 733.8             18 117.9             14 484.3 
Share capital                                                                        1.9                  1.9                  1.9 
Share premium                                                                    9 397.3              9 366.1              9 366.1 
Retained earnings                                                                1 435.9              4 215.1              1 285.9 
Share-based payment reserve                                                        185.7                169.1                194.7 
Non-distributable reserve                                                           82.5                 71.8                 71.8 
Non-controlling interest                                                         3 630.5              4 293.9              3 563.9 
Non-current liabilities                                                          4 110.4              4 964.4              4 125.7 
Deferred tax liability                                                           3 630.6              4 538.5              3 663.7 
PIC housing facility                                                               378.6                334.2                366.9 
Restoration and rehabilitation 
provision and other                                                                101.2                 91.7                 95.1 
Current liabilities                                                              1 222.5                980.5              1 149.3 
Trade and other payables                                                         1 222.5                966.5              1 149.3 
Current tax payable                                                                    -                 14.0                    - 
Total equity and liabilities                                                    20 066.7             24 062.8             19 759.3 

The notes on pages 16 to 24 form an integral part of these condensed consolidated interim financial statements.                       


CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME 
for the six months ended 30 June 2016 
                                                                          For the six months ended                        Year ended 
                                                                          30 June          30 June                       31 December 
                                                                             2016             2015                              2015 
                                                                         reviewed         reviewed                %          audited 
                                                           Notes       R (million)      R (million)          change       R (million)
Revenue                                                        8          1 646.9          1 422.6             15.8          3 044.7 
Cost of sales                                                  9         (1 458.9)        (1 414.3)            (3.2)        (3 084.5)
Cost of sales excluding depreciation and amortisation                    (1 335.8)        (1 254.9)            (6.4)        (2 640.2)
Depreciation and amortisation                                              (150.2)          (200.9)            25.2           (429.2)
Increase/(decrease) in inventories                                           27.1             41.5            (34.7)           (15.1)
Gross profit/(loss)                                                         188.0              8.3          2 165.1            (39.8)
Other income                                                                 37.1             35.6              4.2             68.7 
Administration expenses                                                     (72.2)           (88.6)            18.5           (164.1)
Corporate office                                                            (64.4)           (76.2)            15.5           (126.3)
Housing project                                                              (7.8)           (12.4)            37.1            (37.8)
Impairment of non-financial assets                                           (2.1)               -           (100.0)        (4 466.2)
Finance income                                                               45.4             62.9            (27.8)           106.2 
Finance cost                                                                 (3.6)            (7.4)            51.4            (25.1)
Profit/(loss) before tax                                                    192.6             10.8          1 683.3         (4 520.3)
Income tax credit/(expense)                                   10             24.0           (118.6)           120.2            753.3 
Income tax                                                                   (9.1)           (67.0)            86.4            (76.9)
Deferred tax                                                                 33.1            (51.6)           164.1            830.2 
Net profit/(loss) for the period                                            216.6           (107.8)           300.9         (3 767.0)
Other comprehensive income                                                      -                -                -                - 
Total comprehensive income/(loss)                                           216.6           (107.8)           300.9         (3 767.0)
Attributable to owners of the Company                                       150.0           (115.6)           229.8         (3 044.8)
Attributable to non-controlling interest                                     66.6              7.8            753.8           (722.2)
Basic earnings/(loss) per share (cents/share)                  7             78.2            (60.4)           229.5         (1 589.2)
Diluted earnings/(loss) per share (cents/share)                7             77.7            (60.4)           228.6         (1 589.2)
Headline earnings/(loss) per share (cents/share)               7             77.8            (60.4)           228.8            (83.2)

The notes on pages 16 to 24 form an integral part of these condensed consolidated interim financial statements.


CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY 
for the six months ended 30 June 2016 

                                                                           Share                              Attributable
                                                                          -based           Non-      Retained     to owners          Non-  
                                Number       Ordinary        Share       payment  distributable      earnings/       of the   controlling
                             of shares         shares      premium       reserve       reserves         (loss)      Company      interest       Total
                                issued     R (million)  R (million)   R (million)    R (million)   R (million)   R (million)   R (million) R (million)
Balance at 1 January 
2015 (audited)             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 for the six 
months                               -             -             -          29.4              -             -          29.4             -        29.4 
Mahube ordinary shares 
vested 31 March 2015           187 972             -          12.2         (12.2)             -             -             -             -           - 
2012 BSP shares vested 
in April 2015                  424 985             -          24.7         (24.7)             -             -             -             -           - 
Total comprehensive loss             -             -             -             -              -        (115.6)       (115.6)          7.8      (107.8)
Balance at 30 June 2015 
(reviewed)                 191 743 614           1.9       9 366.1         169.1           71.8       4 215.1      13 824.0       4 293.9    18 117.9 
Share-based payment 
expense for the six  
months                               -             -             -          25.6              -             -          25.6             -        25.6 
Mahube ordinary shares 
vested 31 March 2015                 -             -             -             -              -             -             -             -           - 
2012 BSP shares vested 
in April 2015                        -             -             -             -              -             -             -             -           - 
Total comprehensive loss             -             -             -             -              -      (2 929.2)     (2 929.2)       (730.0)   (3 659.2)
Balance at 31 December 
2015 (audited)             191 743 614           1.9       9 366.1         194.7           71.8       1 285.9      10 920.4       3 563.9    14 484.3 
Share-based payment 
expense for the six 
months                               -             -             -          22.2              -             -          22.2             -        22.2 
2013 BSP shares vested  
in April 2016                  534 376             -          31.2         (31.2)             -             -             -             -           - 
RPM contribution to 
housing project                      -             -             -             -           10.7             -          10.7             -        10.7  
Total comprehensive 
income                               -             -             -             -              -         150.0         150.0          66.6       216.6 
Balance at 30 June 2016 
(reviewed)                 192 277 990           1.9       9 397.3         185.7           82.5       1 435.9      11 103.3       3 630.5    14 733.8 

The notes on pages 16 to 24 form an integral part of these condensed consolidated interim financial statements.  


CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS  
for the six months ended 30 June 2016 
                                                                          For the six months ended                        Year ended 
                                                                          30 June          30 June                       31 December 
                                                                             2016             2015                              2015 
                                                                         reviewed         reviewed                %          audited 
                                                           Notes       R (million)      R (million)          change       R (million)
Cash flows from operating activities   
Cash generated by operations                                                382.2            315.7             21.1            601.9 
Interest paid                                                                   -             (4.5)           100.0             (0.6)
Interest received                                                            27.8             48.3            (42.4)            86.4 
Dividend received                                                             4.5              4.1              9.8              9.7 
Tax refund                                                                    2.2              0.4            450.0              0.4 
Tax paid                                                                     (9.0)           (51.0)            82.4            (78.6)
Net cash flow generated by 
operating activities                                                        407.7            313.0             30.3            619.2 
Cash flows from investing activities       
Proceeds from disposal of 
property, plant and equipment                                                45.0                -            100.0              0.4 
Acquisition of property, plant 
and equipment                                                              (508.1)        (1 122.2)            54.7         (2 018.4)
Styldrift on-reef development 
revenue receipts                                                            102.6                -            100.0                - 
Acquisition of employee housing 
assets                                                                      (34.3)          (260.4)            86.8           (262.5)
Acquisition of insurance 
investment                                                                      -            (30.0)           100.0            (30.0)
Increase in environmental trust 
deposits and guarantees                                                      (7.2)            (2.8)          (157.1)            (2.8)
Call option premiums paid                                                       -                -                -             (9.2)
Net cash flow utilised by 
investing activities                                                       (402.0)        (1 415.4)            71.6         (2 322.5)
Cash flows from financing activities     
Increase in amounts owing to RPM                                             27.4            222.8            (87.7)           436.4 
RPM contribution to housing 
fund received                                                                82.5                -            100.0                - 
Drawdown of PIC housing facility                                                -            334.2           (100.0)           326.9 
Decrease in employee housing facility                                           -             (6.6)           100.0             (6.6)
Net cash flow generated by 
financing activities                                                        109.9            550.4            (80.0)           756.7 
Net increase/(decrease) in cash 
and cash equivalents                                                        115.6           (552.0)           120.9           (946.6)
Cash and cash equivalents at 
beginning of period                                                         917.6          1 864.2            (50.8)         1 864.2 
Cash and cash equivalents at 
end of period                                                  6          1 033.2          1 312.2            (21.3)           917.6 

The notes on pages 16 to 24 form an integral part of these condensed consolidated interim financial statements.                  


NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 
for the six months ended 30 June 2015 

1 Basis of preparation 
The condensed consolidated interim financial statements are prepared in accordance with and containing information required by the 
International Financial Reporting Standard, IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the 
Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements 
of the Companies Act of South Africa. The accounting policies applied in the preparation of these interim financial statements are in 
terms of International Financial Reporting Standards and are consistent with those applied in the previous consolidated annual 
financial statements.
 
2 Accounting policies
The condensed consolidated interim 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 Independent review by the auditors
These condensed consolidated interim financial statements have been reviewed by PricewaterhouseCoopers Inc., who expressed an 
unmodified conclusion thereon. A copy of the auditor’s report on the condensed consolidated interim financial statements is available 
for inspection at the company’s registered office, together with the financial statements identified in the auditor’s report. The 
preparation of these interim financial statements was supervised by the Finance Director, Mr MJL Prinsloo, (CA)SA. 

4 Capital commitments 
Capital commitments relate to the Styldrift I and BRPM Phase III projects. 
                                                                                                For the six months ended
                                                                                      30 June 2016                30 June 2015  
                                                                                          reviewed                    reviewed  
                                                                                        R (million)                 R (million) 
Contracted commitments                                                                       588.5                     1 675.1 
Approved expenditure not yet contracted for                                                4 925.0                     5 021.6 
Total                                                                                      5 513.5                     6 696.7 

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.

5 Contingencies 
5.1 Guarantees issued 
                                                                                                For the six months ended
                                                                                      30 June 2016                30 June 2015  
                                                                                          reviewed                    reviewed  
                                                                                        R (million)                 R (million) 
Eskom guarantee to secure power supply for the Styldrift I project                            17.1                        17.1 
Eskom early termination guarantee for the Styldrift I project                                 17.5                        17.5 
Eskom connection charges guarantee for the Styldrift I project                                40.0                        40.0 
Anglo American Platinum guarantee for environmental rehabilitation liability                  82.6                        77.5 
DMR guarantee for environmental rehabilitation liability                                       1.3                           - 
DMR guarantee for Styldrift II project                                                        30.6                           - 
Rental guarantee                                                                               0.4                         0.4 
Total guarantees issued at 30 June                                                           189.5                       152.5 

5.2 Guarantees received from Anglo American Platinum 
For Anglo American Platinum's 33% share of the Eskom guarantee to 
secure power supply for the Styldrift I project                                               (5.6)                       (5.6)
For Anglo American Platinum's 33% share of the Eskom early termination 
guarantee for the Styldrift I project                                                         (5.8)                       (5.8)
For Anglo American Platinum's 33% share of the Eskom connection charges 
guarantee for the Styldrift I project                                                        (13.2)                      (13.2)
Total guarantees received at 30 June                                                         (24.6)                      (24.6)

6 Available funds 
RBPlat had cash and near cash investments on hand at 30 June 2016 of R1 033.2 million. Included in the R1 033.2 million cash balance is 
restricted cash of R37.7 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 
30 June 2016. 

RBPlat's revolving credit facility (RCF) of R500 million remained undrawn at 30 June 2016. 

7 Basic and headline earnings/(loss) 
                                                                                                For the six months ended
                                                                                      30 June 2016                30 June 2015  
                                                                                          reviewed                    reviewed  
                                                                                        R (million)                 R (million) 
Basic earnings/(loss) - attributable to owners of the Company R (million)                    150.0                      (115.6)
Adjustments net of tax                                                                        (0.7)                          - 
Headline earnings/(loss) R (million)                                                         149.3                      (115.6)
Weighted average number of ordinary shares in issue 
for basic and headline earnings per share                                              191 876 479                 191 424 876 
Basic earnings/(loss) per share (cents/share)                                                 78.2                       (60.4)
Diluted earnings/(loss) per share (cents/share)                                               77.7                       (60.4)
Headline earnings/(loss) per share (cents/share)                                              77.8                       (60.4)
Diluted headline earnings/(loss) per share (cents/share)                                      77.3                       (60.4)

8 Revenue 
                                                                                                For the six months ended
                                                                                      30 June 2016                30 June 2015  
                                                                                          reviewed                    reviewed  
                                                                                        R (million)                 R (million) 
Concentrate sales - production from BRPM concentrator                                      1 462.5                     1 184.0 
UG2 toll concentrate sales                                                                   184.4                       238.6 
Total revenue                                                                              1 646.9                     1 422.6 

Styldrift on-reef development revenue not included above but credited against property, plant and equipment for the six months ended 
amounted to R159.4 million (2015: nil). 

9 Cost of sales 
                                                                                                For the six months ended
                                                                                      30 June 2016                30 June 2015  
                                                                                          reviewed                    reviewed  
                                                                                        R (million)                 R (million) 
Labour                                                                                       512.5                       450.9 
Utilities                                                                                    114.3                       104.3 
Contractor costs                                                                             334.6                       292.1 
Materials and other mining costs                                                             338.4                       352.3 
Materials and other mining costs - BRPM JV                                                   367.7                       380.5 
Elimination of intergroup charges                                                            (29.3)                      (28.2)
Movement in inventories                                                                      (27.1)                      (41.5)
Depreciation                                                                                 132.9                       172.8 
Amortisation                                                                                  17.3                        28.1 
Share-based payment expense                                                                   13.2                        14.0 
Social and labour plan expenditure                                                            13.8                        31.6 
State royalties                                                                                6.1                         4.8 
Other                                                                                          2.9                         4.9 
Total cost of sales                                                                        1 458.9                     1 414.3

10 Income tax credit/(expense) 
                                                                                                For the six months ended
                                                                                      30 June 2016                30 June 2015  
                                                                                          reviewed                    reviewed  
                                                                                        R (million)                 R (million) 
Income tax                                                                                    (9.1)                      (67.0)
  Current year                                                                                (9.1)                      (12.3)
  Prior year                                                                                     -                       (54.7)
Deferred tax                                                                                  33.1                       (51.6)
  Current year                                                                                33.1                         1.0 
  Prior year                                                                                     -                       (52.6)
Total income tax credit/(expense)                                                             24.0                      (118.6)
Tax rate reconciliation: 
Profit before tax                                                                            192.6                        10.8 
Tax expense calculated at a tax rate of 28% (2015: 28%)                                      (53.9)                       (3.0)
Non-taxable income                                                                             9.0                         3.6 
Non-deductible expense                                                                        (0.1)                       (5.4)
Housing contribution                                                                          70.0                           - 
Tax losses not recognised                                                                     (1.0)                       (6.5)
Prior year adjustments*                                                                          -                      (107.3)
                                                                                              24.0                      (118.6)
Effective tax rate (%)                                                                          12%                      1 098% 
* relates mainly to the 2008, 2009 and 2010 RBR tax settlement

11 Related party transactions 
                                                                                                For the six months ended
                                                                                      30 June 2016                30 June 2015  
                                                                                          reviewed                    reviewed  
                                                                                        R (million)                 R (million) 
Amount owing by RPM for concentrate sales                                                  1 214.2                     1 112.9 
Amount owing to RPM for contribution to BRPM JV                                              867.1                       626.1 
Amount owing by Impala Platinum Limited to BRPM JV                                            17.1                        11.4 
Transactions during the six months:     
Concentrate sales to RPM 
(including Stydrift on-reef development revenue)                                           1 806.3                     1 422.6 
Impala Platinum Limited royalty income                                                        29.9                        22.2 
Transactions with Fraser Alexander for rental of 
mining equipment, maintenance of tailings dam and 
operation of sewage plant                                                                      4.4                         5.7 
Royal Marang Hotel for accomodation and conferences                                            0.3                         0.5 
Geoserve Exploration Drilling Company for exploration drilling                                 0.4                         3.2 
Trident South Africa (Pty) Ltd for steel supplies                                              0.7                         0.9 
Mtech Industrial for supply and installation of heat pumps                                     0.1                         1.6 
Fees paid to non-executive directors (RBH/Mogs)                                                0.3                         0.4 

12 Dividends 
No dividends have been declared or proposed in the current period (2015: nil). 

13 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 and financial liabilities 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 30 June: 

                                                                                   Level 1          Level 2            Level 3
                                                                                R (million)      R (million)        R (million)
2016   
Financial assets at fair value through profit or loss
Environmental trust deposits1                                                            -            117.4                  - 
Insurance investment2                                                                    -             31.6                  - 
Call options3                                                                            -              3.4                  - 
Loans and receivables  
Employee housing loan receivable4                                                        -                -              162.9 
Financial liabilities at fair value through profit or loss 
Forward exchange contracts3                                                              -              8.3                  - 
Financial liabilities at amortised cost 
PIC housing facility4                                                                    -                -              378.6 

2015   
Financial assets at fair value through profit or loss  
Environmental trust deposits1                                                            -            111.7                  - 
Insurance investment2                                                                    -             30.0                  - 
Forward exchange contracts and call options3                                             -             10.4                  - 
Loans and receivables    
Employee housing loan receivable4                                                        -                -              149.6 
Financial liabilities at amortised cost 
PIC housing facility4                                                                    -                -              334.2 
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 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 mark-to-market values. 
4. The fair value was determined using a discounted cash flow model. 

Fair value measurements using significant unobservable inputs (level 3) 
                                                                                                     For the six months ended 
                                                                                                 30 June                30 June 
                                                                                                    2016                   2015
                                                                                                reviewed               reviewed
                                                                                              R (million)            R (million) 
Loans and receivables                                                                                                          
Employee housing loan receivable                                                                                                
Opening balance at 1 January                                                                  157.7                       108.8 
(Less)/plus: (Cancellation of sales)/houses sold to 
employees during the period                                                                    (1.0)                       50.5 
Plus: Interest capitalised (including fair value 
interest adjustment)                                                                            6.2                         4.9 
Less: Employee housing benefit reallocation                                                       -                       (14.6)
Closing balances at 30 June                                                                   162.9                       149.6 
                                                                                                                                         
Financial liabilities at amortised cost                                                                                                  
PIC housing facility                                                                                                                     
Closing balance at 30 June                                                                    366.9                           - 
Plus: Draw downs                                                                                  -                       326.8 
Plus: Transaction costs capitalised to the loan                                                   -                         3.4 
Plus: Contractual and fair value interest charges 
capitalised to the loan                                                                        12.5                         4.0 
Less: Amortisation of fair value adjustment to loan                                            (0.8)                          - 
Closing balances at 30 June                                                                   378.6                       334.2 

14 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 separate 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 separate segment.

14.1 Segmental statement of financial position

                                                             Reviewed                                                                           Reviewed
                                                         As at 30 June 2016                                                                As at 30 June 2015
                                        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
Non-current assets                   4 821.0     5 757.1    10 578.1        246.5         6 504.0     17 328.6       4 585.0     5 091.5     9 676.5         227.5         11 080.2     20 984.2 
Allocation of mineral rights 
to segments                            974.6     4 774.0     5 748.6            —        (5 748.6)           —       1 716.3     4 774.0       6 490.            —         (6 490.3)           — 
Non-current assets after 
allocation of mineral rights         5 795.6    10 531.1    16 326.7        246.5           755.4     17 328.6       6 301.3     9 865.5    16 166.8         227.5          4 589.9     20 984.2 
Current assets                       1 695.6       113.4     1 809.0        357.6           571.5      2 738.1       1 625.1        44.6     1 669.7         363.0          1 045.9      3 078.6 
Total assets per statement of 
financial position                   7 491.2    10 644.5    18 135.7        604.1         1 326.9     20 066.7       7 926.4     9 910.1    17 836.5         590.5          5 635.8     24 062.8 
Non-current liabilities                 85.7        13.8        99.5        380.3         3 630.6      4 110.4          79.0        12.7        91.7         334.2          4 538.5      4 964.4 
Current liabilities                  3 311.9       107.0     3 418.9         10.2        (2 206.6)     1 222.5         649.3        78.7       728.0         273.0            (20.5)       980.5 
Total liabilities per statement 
of financial position                3 397.6       120.8     3 518.4        390.5         1 424.0      5 332.9         728.3        91.4       819.7         607.2          4 518.0      5 944.9

14.2 Segmental statement of comprehensive income

                                                            Reviewed                                                                                 Reviewed
                                              For the six months ended 30 June 2016                                                   For the six months ended 30 June 2015
                                        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                    1 646.9           —     1 646.9            —               —      1 646.9       1 421.3         1.3     1 422.6            —                 —      1 422.6 
Cost of sales                       (1 499.4)       (0.2)   (1 499.6)           —            40.7     (1 458.9)     (1 347.6)       (9.3)   (1 356.9)           —             (57.4)    (1 414.3)
  Cost of sales excluding 
  depreciation and amortisation     (1 393.8)          —    (1 393.8)           —            58.0     (1 335.8)     (1 269.1)       (9.1)   (1 278.2)           —              23.3     (1 254.9)
  Depreciation                        (132.7)       (0.2)     (132.9)           —               —       (132.9)       (120.0)       (0.2)     (120.2)           —                 —       (120.2)
  Additional depreciation and 
  amortisation on purchase price 
  allocation of mining assets              —           —           —            —           (17.3)       (17.3)            —           —           —            —             (80.7)       (80.7)
  Movement in inventories               27.1           —        27.1            —               —         27.1          41.5           —        41.5            —                 —         41.5 
Gross profit/(loss) per segment 
and total                              147.5        (0.2)      147.3            —            40.7        188.0          73.7        (8.0)       65.7            —             (57.4)         8.3 
Other income                            42.3        (6.9)       35.4          1.3             0.4         37.1          35.0           —        35.0          0.6                           35.6 
Total administration expenditure           —           —           —         (7.8)          (64.4)       (72.2)            —           —           —        (12.4)            (76.2)       (88.6)
Impairment of non-financial 
assets                                  (1.8)          —        (1.8)        (0.3)              —         (2.1)                                                                                  
Net finance income                       5.2         0.1         5.3         14.4            22.1         41.8           4.0         0.2         4.2          8.9              42.4         55.5 
Profit/(loss) before tax per 
segment and total                      193.2        (7.0)      186.2          7.6            (1.2)       192.6         112.7        (7.8)      104.9         (2.9)            (91.2)        10.8 
Taxation                                                                                                  24.0                                                                            (118.6)
Profit/(loss) after tax                                                                                  216.6                                                                            (107.8)
  Attributable to owners of 
  the Company                                                                                            150.0                                                                            (115.6)
  Attributable to non-controlling 
  interest                                                                                                66.6                                                                               7.8 

14.3 Segmental statement of cash flows

                                                               Reviewed                                                                         Reviewed
                                                 For the six months ended 30 June 2016                                            For the six months ended 30 June 2015
                                        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                             399.6           —       399.6         11.5            (3.4)       407.7         355.5         0.7       356.2         (5.5)            (37.7)       313.0
Net cash flow (utilised)/
generated by investing 
activites                             (132.6)     (241.3)     (373.9)       (34.3)            6.2       (402.0)       (260.5)     (882.8)   (1 143.3)      (290.4)             18.3     (1 415.4)
Net cash flow (utilised)/
generated by financing 
activities                            (158.4)      241.3        82.9            —            27.0        109.9        (203.6)      882.1       678.5        335.4            (463.5)       550.4
Cash and cash equivalents 
at beginning of period                 326.1           —       326.1         60.5           531.0        917.6         411.4           —       411.4          2.9           1 449.9      1 864.2 
Cash and cash equivalents 
at end of period                       434.7           —       434.7         37.7           560.8      1 033.2         302.8           —       302.8         42.4             967.0      1 312.2 


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
The Place
1 Sandton Drive 
Sandton 
Johannesburg 
2196
South Africa

www.bafokengplatinum.co.za


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