To view the PDF file, sign up for a MySharenet subscription.

ROYAL BAFOKENG PLATINUM LIMITED - Condensed Consolidated Interim Results for the six months ended 30 June 2017

Release Date: 01/08/2017 07:05
Code(s): RBP     PDF:  
Wrap Text
Condensed Consolidated Interim Results for the six months ended 30 June 2017

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

ROYAL BAFOKENG PLATINUM
CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

Measuring our performance
MANUFACTURED CAPITAL
- 70% increase in tonnes delivered from Styldrift
- 14.3% increase in tonnes milled
- 8.9% improvement in tonnes milled per employee 
- 9.4% increase in 4E metals in concentrate
- Flat year-on-year unit cost per tonne milled
- 0.2% increase in unit cost per platinum ounce

HUMAN CAPITAL
- No fatalities in line with our commitment to zero harm
- 88.2% increase in total injury frequency rate (TIFR)
- 48.6% increase in lost time injury frequency rate (LTIFR)

FINANCIAL CAPITAL
- 9.8% reduction in average rand revenue basket price
- EBITDA of R100.4 million (2016: R305.3 million)
- HLPS of 15.3 cents (2016: HEPS 77.8 cents)
- Successful placement of R1.2 billion convertible bonds and securing of R2 billion debt facilities
- Cash and near cash investments of R1 664.5 million (2016: R1 033.2 million)

SOCIAL AND RELATIONSHIP CAPITAL
- R15.9 million spent on our SLP commitment (2016: R13.8 million)
- 86.3% of our total discretionary procurement spend is in HDSA companies

OPERATING AND FINANCIAL STATISTICS FOR THE SIX MONTHS ENDED         
Description                                                     Unit            30 June 2016            30 June 2017                % change 
Safety                                                               
Fatalities                                                    number                       1                       0                   100.0 
LTIFR                                                 /200 000 hours                    0.35                    0.52                   (48.6)
SIFR                                                  /200 000 hours                    0.17                    0.26                   (52.9)
TIFR                                                  /200 000 hours                    1.19                    2.24                   (88.2)
Production                                                                                                           
Total tonnes delivered                                            kt                   1 296                   1 473                    13.7 
BRPM                                                              kt                   1 156                   1 235                     6.8 
Styldrift                                                         kt                     140                     238                    70.0 
Merensky                                                          kt                   1 018                   1 174                    15.3 
UG2                                                               kt                     278                     298                     7.2 
Total development                                                 km                    17.6                    19.1                     8.5 
Working cost development                                          km                    15.2                    15.8                     3.9 
Capital development                                               km                     2.4                     3.3                    37.5 
IMS panel ratio (BRPM)                                         ratio                    1.57                    1.54                    (1.9)
Total tonnes milled                                               kt                   1 292                   1 477                    14.3 
BRPM                                                              kt                   1 150                   1 237                     7.6 
Styldrift                                                         kt                     142                     240                    69.0 
Merensky                                                          kt                   1 015                   1 179                    16.2 
UG2                                                               kt                     277                     298                     7.6 
UG2% milled                                                        %                      21                      20                     4.8 
Built-up head grade (4E)                                         g/t                    4.01                    3.80                    (5.2)
BRPM                                                             g/t                    4.11                    4.04                    (1.7)
Styldrift                                                        g/t                    3.23                    2.53                   (21.7)
Merensky                                                         g/t                    4.08                    3.79                    (7.1)
UG2                                                              g/t                    3.75                    3.85                     2.7 
Metals in concentrate*                       
4E**                                                             koz                   142.0                   155.4                     9.4 
Platinum**                                                       koz                    91.6                    99.9                     9.1 
Palladium                                                        koz                    37.9                    35.9                    (5.3)
Rhodium                                                          koz                     8.3                     9.2                    10.8 
Gold                                                             koz                     4.2                     4.5                     7.1 
Iridium                                                          koz                     2.8                     3.1                    10.7 
Ruthenium                                                        koz                    14.1                    15.5                     9.9 
Nickel                                                             t                     868                     956                    10.1 
Copper                                                             t                     559                     608                     8.7 
Cobalt                                                             t                      22                      24                     9.1 
Labour                                                                                       
Total working cost labour                                     number                   6 330                   6 247                     1.3 
Stoping crew efficiency                                      m²/crew                     336                     352                     4.8 
Tonnes milled/TEC                                              t/emp                    30.3                    33.0                     8.9 
Operating cost***                            
Cash operating cost                                              R’m                   1 329                   1 429                    (7.5)
Cash operating cost/tonne milled                                 R/t                   1 156                   1 155                     0.1 
Cash operating cost/4E oz                                       R/oz                  10 236                  10 227                     0.1 
Cash operating cost/Pt oz                                       R/oz                  15 882                  15 913                    (0.2)
Capital expenditure                          
Total capital expenditure                                        R’m                     517                     847                   (63.8)
Expansion capital                                                R’m                     418                     778                   (86.1)
Replacement capital                                              R’m                      43                      10                    76.7 
Stay-in-business capital (SIB)                                   R’m                      56                      59                    (5.4)
SIB % of operating cost                                            %                     4.2                     4.1                     2.4 
Financial indicators                         
Gross profit                                                     R’m                   188.0                    11.3                   (93.9)
Gross profit margin                                                %                    11.4                     0.7                   (93.9)
EBITDA                                                           R’m                   305.3                   100.4                   (67.1)
EBITDA margin                                                      %                    18.5                     6.3                   (65.9)
Average basket price                                         R/Pt oz                  19 680                  17 745                    (9.8)
Average R:US$ in revenue                                       R/US$                   15.41                   13.07                   (15.2)
ESG information                              
Employees                                                     number                   7 262                   7 849                     8.1 
Total discretionary procurement spend in 
HDSA companies                                                     %                    81.8                    86.3                     5.5 
GHG emission CO2e (Scope 1 and 2)                              tCO2e                 155 307                 166 275                    (7.1)
Water intensity                                          Ml/t milled                   0.646                   0.840                   (30.0)
SLP expenditure                                                  R’m                    13.8                    15.9                    15.2 
* Metals in concentrate produced include Styldrift I on-reef development ounces 
** Includes 15.6koz (4E) (2016: 12.1koz) and 10.1koz (Pt) (2016: 7.9koz) from Styldrift for the first six months of 2017 
*** Costs are calculated excluding Styldrift I on-reef development tonnes, ounces and costs 
Please note that any differences in variance percentages in this table and in the commentary are due to rounding 


COMMENTARY 

OVERVIEW 
The operating environment for the first half of 2017 was characterised by a challenging revenue basket price on the back of a sustained 
low platinum group metals (PGMs) market and a robust South African rand. It is this environment that guided Bafokeng Rasimone Platinum 
Mine’s (BRPM’s) operational strategy and capital expenditure at Styldrift, with specific focus on optimising operating costs, ensuring 
BRPM delivers higher margin bearing ounces and that Styldrift is ramped-up within the constraints of a low price environment. 

While recording a fatality-free reporting period, we are disappointed with our performance in our total lost time and serious injury 
frequency rates. As such, engagement with our employees and securing the commitment of all stakeholders on improving our safety culture 
and maturity continued to be a core part of our daily activities. 

Maintaining operational flexibility, improved overall operational stability and strong management focus resulted in BRPM achieving its 
highest delivered tonnes for the first half of a year since inception in 1998, resulting in essentially flat year-on-year unit costs. 
Production levels at Styldrift continued to increase in line with our stated approach of ramping up to 150ktpm during the initial 
expansion phase. Development metres and delivered tonnages increased by 57% and 70% year-on-year respectively. The increasing tonnages 
delivered by Styldrift and BRPM provided a consistent and more stable ore feed to our recently upgraded concentrator plant which was 
expanded to 250ktpm.  

During the period under review, the Group embarked on a process to restructure and right-size the overhead and operational structure of 
the business to be appropriate for the current and future market environment. 
 
The restructuring strategy entailed a two-pronged approach which consisted predominantly of reducing the fixed cost base through a 
reduction in labour and the enhancement of the quality of the revenue stream. The reduced labour is envisaged to result in an annual 
benefit of approximately R118 million being realised at BRPM. The revenue enhancement will be achieved through the closure of the 
non-profitable South shaft UG2 production sections and redeploying 60% of the UG2 mining crews to superior-margin Merensky at South and 
North shafts and UG2 production at North shaft. This will enable us to maintain current levels of PGM production but with the enhanced 
effect of the base metals revenue that accompanies Merensky production and optimised processing arrangements equating to approximately 
R37 million per annum. The downsizing of labour and the closure of South shaft UG2 was effected on 31 July 2017.
 
HUMAN CAPITAL

Safety, health and wellness
The safety and health of our employees is key in creating a stable and productive working environment and as such we continue to focus 
on achieving a resilient operating culture that will lead us to our aspiration of zero harm. In support of this objective, our focus 
for the reporting period was the ongoing implementation of our revised safety strategy and initiatives which we commenced implementing 
in late 2015. The main interventions in this regard relate to “back to basics”, emotional fitness and risk awareness training to 
improve the behaviour, risk understanding and decision making of employees and supervisors. 

Regrettably, despite being fatality-free for the reporting period and noting improvements in the risk attitude and safety-related 
decision making of our employees, overall our total lost time and serious injury frequency rates increased by 88.2%, 48.6% and 52.9% 
respectively, compared to the first half of 2016. 

Currently TB tracing is a major focus area along with HIV/Aids management. In total, 6 321 people were screened for 
TB during the period under review. There are 36 employees (including contractors) currently on the RBPlat TB programme. 

In total, 29 employees completed their TB treatment and were cured of TB during the first six months of the year. We have 
three employees currently on the multi drug resistant TB treatment programme. We introduced a community TB screening programme in 
December 2015. Since then, 2 839 community members have been screened for TB. Any community member suspected of having contracted 
TB immediately gets accompanied by a Department of Health representative to the nearest clinic for TB testing and then treated, if 
required.

Labour stability
Labour stability continued to play a vital role in RBPlat’s performance during the first half of the year. The company and NUM reviewed 
the current landmark wage agreement which is entering its fourth year of implementation, and the parties expressed satisfaction with 
progress made thus far and as a result, the agreement will run its natural course of five years. 

SOCIAL AND RELATIONSHIP CAPITAL

As previously communicated to various stakeholders, the depressed commodity market resulted in RBPlat reviewing its delivery on some of 
the community infrastructure and development projects. The company, however, continued with its educational and community skills 
development programmes. We also partnered with the Mining Qualifications Authority (MQA) to provide portable skills training to 
300 community members at a cost of R20 million fully funded by MQA.

The company, through Royal Bafokeng Resources Properties, commenced with phase II construction of the employee housing project. 
In addition to the 422 houses already built as part of phase I, a further 736 houses will be complete and occupied by the fourth 
quarter of 2017 which will bring the total employee houses to 1 158 by end of 2017. The employee housing project is part of the shared 
2030 vision with NUM of ensuring that every RBPlat employee is provided a decent and affordable house.

FINANCIAL CAPITAL

RBPlat successfully raised R1.2 billion through the placement of convertible bonds and secured R2 billion debt facilities during the 
six months ended 30 June 2017 which completes RBPlat’s robust funding solution to secure the ramp-up of the Styldrift I project to 
150ktpm.

RBPlat incurred a headline loss of 15.3 cents per share for the six months ended 30 June 2017 compared to a headline profit of 
77.8 cents per share for the six months ended 30 June 2016. The main reasons for the regression to a loss per share are:
-  A 9.8% lower realised average rand basket price for the six months ended 30 June 2017 (attributable 41.7 cents per share decrease)
-  A once-off restructuring charge of R57.1 million (attributable 14.3 cents per share decrease).

Net revenue decreased by 3.2% from R1 646.9 million in the first half of 2016 to R1 593.9 million for the first half of 2017. This is 
due to a 9.8% decrease in the average rand basket price to R17 745 per platinum ounce in the first half of 2017 compared to R19 680 in 
2016 and a 7.3% increase in BRPM platinum ounces produced. 

BRPM’s average cash operating cost per platinum ounce increased by 0.2% from R15 882 to R15 913 due to a 7.3% increase in platinum 
ounce production and a 7.5% increase in cash operating costs.

Our gross profit margin reduced from 11.4% for the six months ended 30 June 2016 to 0.7% for the six months ended 30 June 2017. 
This was due to the 3.2% decrease in net revenue and a 8.5% increase in total cost of sales. 

Depreciation and amortisation charges included in cost of sales were R15.9 million higher than those of the comparative period in 2016 
due to increased production at BRPM.

Earnings before interest, tax and depreciation and amortisation (EBITDA) as a percentage of revenue decreased from 18.5% to 6.3% 
in the first half of 2017 mainly as a result of the decreased revenue and restructuring costs.

Our other income increased by R44.9 million from R37.1 million in the first half of 2016 to R82.0 million for the period under review. 
The increase is due to the following:
-  An increase in the Impala royalties from R29.9 million in 2016 to R39.1 million for the six months ended 30 June 2017
-  An increase in profit on the fair value of forward exchange contracts (R:US$ and Euro FECs) from a loss of R8.7 million in 2016 to 
   a profit of R9.2 million in 2017 
-  A R19.5 million profit on the fair value gain in the derivative liability from the date of issue of the convertible bond 
   on 15 March 2017 to the date that shareholder approval was obtained on 8 May 2017. 

Finance income increased by R21.1 million to R66.5 million due to the increase in cash on hand as a result of the R1.2 billion 
convertible bond proceeds received on 15 March 2017. Finance costs increased from R3.6 million to R30.2 million mainly due to the 
interest expense on the convertible bond. As the convertible bond was issued to fund the Styldrift I project, a qualifying asset, the 
borrowing costs are eligible for capitalisation under IFRS. In determining the amount of borrowing costs eligible for capitalisation 
during the period, all investment income earned on such funds were deducted from the borrowing costs incurred and therefore only the 
net interest expense was capitalised.

Administration expenses increased from R72.2 million to R161 million. The main reason for the increase in the corporate office 
administration expenses is due to the fact that no salary increases and bonuses were paid to executives and senior management in 2016 
while salary increases and bonuses relating to 2016 performance were paid in 2017. In addition, R57.1 million restructuring costs were 
included in the six months ended 30 June 2017.

The income tax charge increased to R11.3 million from R9.1 million due to income tax on increased interest income and increased non-
mining income received from Impala royalties. Deferred tax decreased by R17.2 million. The deferred tax credit of R15.9 million for 
2017 consists of a deferred tax credit of R22 million due to mining losses and a deferred tax expense of R6.1 million relating to the 
convertible bond accounting. The deferred tax credit in 2016 of R33.1 million consisted 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. 

RBPlat issued 120 000 7% senior unsecured convertible bonds for R1.2 billion on 15 March 2017. Shareholders’ approval for the 
conversion of the convertible bonds was obtained on 8 May 2017. The bonds are convertible into ordinary shares of RBPlat at the option 
of the holder at an initial conversion price of R42.9438. Interest on the bonds is payable semi-annually in arrears on 16 March and 
16 September of each year for five years ending 16 September 2022.

The company concluded R2 billion debt facilities in March 2017. The debt facilities consist of a 7 year term debt facility of 
R750 million, a 5 year revolving credit facility of R750 million and 1 year general banking facilities of R508 million. These 
facilities will secure RBPlat’s 67% funding requirement for the Styldrift project. The term debt and revolving credit facility remained 
undrawn at 30 June 2017. R202 million of the general banking facilities were utilised for guarantees at 30 June 2017.

At 30 June 2017 the RBPlat Group had cash and near cash investments of R1 664.5 million of which R67.7 million is ring-fenced to the 
RBPlat housing project and R420 million is earmarked for the settlement of the convertible bond coupon. 

MANUFACTURED CAPITAL

Production 
Total development increased by 1.4km to 19.1km compared to the first six months of 2016. Styldrift capital development increased by 
1.2km in line with the 150ktpm ramp-up requirements, while BRPM capital development reduced by 0.4km due to the completion of 
Phase III decline development in 2016. BRPM working cost development remains aligned to stoping depletion rates with the BRPM IMS panel 
ratio remaining above our target of 1.5 despite stoping square metres at BRPM increasing by 2.6% for the comparative period. 

Tonnes delivered to concentrators increased by 13.7% or 177kt to 1 473kt for the reporting period, with BRPM contributing 
1 235kt and Styldrift 238kt. Merensky delivered tonnes increased by 157kt or 15.3% to 1 174kt, with the BRPM contribution increasing 
by 59kt and Styldrift by 98kt. UG2 delivered tonnes increased by 7.2% to 298kt. 

The 4E built-up head grade for the reporting period decreased by 5.2% from 4.01g/t (4E) to 3.80g/t (4E). The reduction in head grade is 
mainly attributable to additional on-reef dilution at Styldrift associated with the re-establishment of working faces through a known 
fault system to the south and west of the shaft infrastructure on 600 level. Re-establishing working faces through the fault system 
proved more challenging than anticipated resulting in a more complex reef and waste ore handling environment, negatively impacting the 
grade for the majority of the second quarter. The built-up head grade of 2.53g/t (4E) at Styldrift is expected to stabilise at around 
3.30g/t (4E) during the second half of 2017.

The increase in the BRPM plant capacity to 250ktpm, combined with the strong mining performance, resulted in total tonnes milled 
improving by 14.3% to 1 477kt compared to the first half of 2016. BRPM attributable milled volumes increased by 7.6% to 1 237kt 
while Styldrift milled volumes increased by 69% to 240kt. Merensky and UG2 tonnes milled increased by 16.2% and 7.6% to 1 179kt and 
298kt respectively. BRPM concentrator recoveries improved by 0.7% to 86.38% while toll concentrator recoveries remained in line with 
contractual limits.

The 14.3% increase in tonnes milled, combined with the 5.2% decrease in built-up head grade and improved concentrator recoveries 
yielded a 9.4% and 9.1% increase in 4E and platinum ounce production, with 155.4koz and 99.9koz metals being produced respectively.

Working cost labour reduced by 1.3% or 83 employees to 6 247 employees compared to the 2016 reporting period. Despite this reduction, 
total employees increased to 7 819 due to an increase of 590 capital employees as project construction activities are ramped-up to meet 
the 150ktpm steady state project schedule at Styldrift. This is not taking into account the downsizing of labour as part of the 
restructuring which was effected on 31 July 2017.

Productivity improvements in our two key efficiency metrics of square metres per stoping crew and tonnes milled per total employee 
costed (t/TEC) were also realised during the reporting period. Square metres per stoping crew at BRPM increased by 4.8% to 352m2/crew, 
while t/TEC improved by 8.9% to 33.0t/TEC. 

Operating costs
Our total cash operating costs increased by 7.5% from R1 329 million to R1 429 million when compared to the first six months of 2016, 
in line with the increased BRPM volumes and inflation related increases. After excluding the incidental tonnage and ounce contributions 
from Styldrift, unit cash costs amounted to R1 155 per tonne milled, R10 227 per 4E ounce and R15 913 per platinum ounce. This equates 
to a flat year-on-year unit cost per tonne milled and per 4E ounce and a marginal increase of 0.2% per platinum ounce.  

Capital expenditure
Total capital expenditure for the period under review increased by 63.8% to R847 million compared to the corresponding period in 2016. 
Replacement capital reduced by R33 million to R10 million in line with the reduced Phase III construction activities as the project 
nears completion. 

Expansion capital expenditure increased by 86.1% or R360 million to R778 million. The increase in expenditure is as a direct 
consequence of accelerating construction activities related to the 150ktpm ramp-up phase at our Styldrift I project. 

Stay-in-business capital expenditure increased by 5.4% to R59 million compared to the same period in 2016 and amounted to 4.1% of 
operating expenditure.

Projects
BRPM Phase III replacement project 
The total mining scope of the project has been completed with only construction activities related to services, conveyor belts and 
associated bulkheads on 14 and 15 levels remaining. A technical planning review of the Phase III extraction schedule has indicated that 
these levels will only be required to come online during the second quarter of 2019 and as such represents an opportunity to defer 
capital expenditure to 2018 without any negative impact on our extraction strategy.

Capital expenditure for the reporting period amounted to R10 million resulting in the total project expenditure to date of 
R1 046 million.

Styldrift I expansion project
Project construction and development activities for the first six months continued to focus on establishing the infrastructure, stoping 
face length and operational resourcing required to support the 150ktpm expansion phase announced during the fourth quarter of 2016. 

During the reporting period, a total of 3 328 metres of capital development was completed on 600 and 642 levels, with 238kt of ore 
being delivered to the concentrator at a built-up head grade of 2.53g/t (4E). 

Despite the increase in development and construction performance, progress and associated expenditure was lower than budgeted for 
during the reporting period. The lower expenditure, however, does not impact the Q4 2018 150ktpm key milestone as performance remains 
within project execution tolerances.  

Key construction activities presently being undertaken are:
-  Overland belt construction
-  Services shaft equipping
-  Ventilation shaft No.3 construction
-  Silo No.3 and 4 construction
-  600 level permanent trackless workshop and ancillary service bays construction
-  Commenced with Settler No.1 slipe and line activities
-  Conveyor belt construction on 600 and 642 level.

In line with project execution resource requirements, there are currently 23 mining and construction crews operational on site, with 
specialised construction works outsourced:
-  8 trackless crews on 600 level — dedicated to the on-reef infrastructure and decline development 
-  2 trackless crews on 642 level — dedicated to off-reef development for ore handling infrastructure and declines
-  1 trackless crew on 708 level — dedicated to complete off-reef development work related to pumping and ore handling infrastructure
-  12 infrastructure construction crews — dedicated to the workshop, conveyor belt, silo, settler and bulkhead construction and 
   Services shaft equipping.

Given the current challenging market environment, RBPlat has been fully cognisant of the need to prudently manage cash flow and its 
associated timing relative to project progress and the 150ktpm ramp-up requirements in order to maintain a healthy balance sheet.  
As such, our approach has been one of aligning capital spend with the prevailing market conditions by deferring non-critical path 
project work where possible which will not impact our ability to achieve 150ktpm by end of 2018.   

Capital expenditure on the project amounted to R776 million bringing total capital expenditure for the project to date to 
R7.23 billion. Non-critical capital expenditure deferred includes construction of items such as additional access roads, surface 
parking, stores, training centre, change house upgrades and non-critical store items. 
 
NATURAL CAPITAL

Climate change and energy management
As a PGM producer we recognise that we are an energy intensive business and our activities have an impact on climate change through 
the production and release of greenhouse gas (GHG) emissions which contribute to global climate change. However, the overall impact of 
PGMs produced remains positive from a lifecycle point of view considering its lowering of emissions from vehicles. We are committed to 
minimising our GHG emissions and energy consumption in order to promote long term environmental and economic sustainability of our 
operations.  

As part of risk management and sustainability strategies, we have conducted a climate change risk assessment and are in the process of 
implementing our energy saving initiatives identified in our board approved energy management strategy. In addition we have voluntarily 
disclosed our performance with respect to climate change and water management to the Carbon Disclosure Project (CDP).

Our concentrator plant performed well within the 2017 energy target of 51kWh/tonne treated and achieved an efficiency of 47.07kWh/tonne 
treated while our mining operations at BRPM achieved an efficiency of 62.17kWh/tonne hoisted, which is higher than the set target of 
59kWh/tonne hoisted. Total GHG emissions (scope 1 and 2) increased by 7.1% to 166 275 CO2e (2016: 155 307 CO2e) following the rise in 
diesel and electricity consumption at Styldrift due to increased activities on the project.

The energy saving initiatives that we are currently implementing will enable us to meet our energy efficiency targets. In line with our 
board approved climate change strategy, we are in the process of setting energy efficiency targets for our Styldrift operation to match 
progress made at BRPM during the last few years.

Water management
RBPlat operates in a water scarce environment and as such is cognisant of the need to be as efficient with water use as possible.  
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 2.81Ml of water per day and produced 511.55Ml of water in the first six months of 2017.

In line with our sustainability framework and our climate change strategy, we formalised our water management strategy to enable us to 
proactively manage our water risks and related opportunities.
 
Our concentrator plant achieved an efficiency of 0.438kl/tonne treated, slightly above the 2017 water efficiency target of 
0.420kl/tonne treated. Our mining operations at BRPM and Styldrift achieved efficiencies of 0.267 and 0.481kl/tonne hoisted, which were 
both higher than the 2017 targets of 0.202kl/tonne hoisted and 0.317kl/tonne hoisted.

The water saving initiatives that we are currently implementing will enable us to meet our water efficiency targets.

MARKET REVIEW

The platinum price started the year close to $900/oz, rose to above $1 000/oz in February, but subsequently weakened to end the first 
half not far above where it started the year. The rand remained relatively strong against the US$ in the first half of 2017 at around 
R13.20. This led to platinum prices in rand terms dipping below R12 000/oz on a number of occasions during the first half of 2017, to 
lows not seen since November 2015. 

Platinum production is forecast to be 2.5% lower this year as both primary and secondary supply ease. Primary supply is estimated to be 
down 2% year-on-year on lower output from Southern Africa. Secondary supply is expected to contract as lower recycling of jewellery in 
China is likely to more than offset a modest recovery in autocatalyst recycling.

However, lacklustre platinum prices are reflecting limited buying by end-users as overall demand, excluding investment, is forecast to 
soften year-on-year. 

Western Europe remains the largest diesel market, but diesel market share continues to decrease, particularly in the small car segment. 
Diesel share in larger cars remains relatively stable, while in heavy-duty vehicles, diesel is currently the only viable option. 

Purchasing of platinum by Chinese jewellery fabricators in platinum’s largest market has not improved from a weak 2016. Platinum 
trading on the Shanghai Gold Exchange in the first half of 2017 was a third lower than in the first half of 2016, although this 
reflects industrial as well as jewellery demand. 

Investment demand has been steady so far this year with platinum ETFs adding approximately 83koz in the first six months, resulting in 
global ETF holdings increasing to about 2.6Moz. Platinum bar purchases were low in the first quarter owing to the high platinum price. 
However, weaker prices during the second quarter lifted buying. 

Overall, the industrial market balance is projected to be in a modest surplus in 2017. If the platinum price remains weak in the second 
half of the year this would raise the risk of closures of unprofitable mining areas which could move the market closer to balance.

Palladium started the year trading at $676/oz and although volatile, the price continued to trend higher through the first six months 
of the year. Temporary tightness in palladium ingot availability resulted in the price briefly pushing through $900/oz in June before 
it eased back to end the month at $842/oz, up 25% for the year to date.

Palladium demand is expected to be little changed in 2017 as a slight increase in autocatalyst demand is offset by small declines in 
jewellery and industrial usage.

Auto sales growth in China is expected to slow to 5% for the year and was 3.8% in the first half of the year (according to the China 
Association of Automobile Manufacturers). In the US, currently palladium’s largest market, auto sales may have peaked in 2016, with 
sales for the first half of 2017 down by more than 2% year-on-year.

Palladium ETFs have seen significant outflows over the last two years and this has not changed so far in 2017, with holdings falling by 
230koz in the first half resulting in global ETF holdings at approximately 1.4Moz.

The rhodium price has continued its recovery in 2017, rising 35% to $1 040/oz during the first half of the year. However, while the 
price may have improved, the market still remains well supplied. Removal of unprofitable ounces from the market could move the market 
close to balance or into slight deficit.

OUTLOOK

RBPlat remains committed to its objective of achieving a zero harm operating environment by continuing to foster a resilient safety 
culture. Improving our safety performance will therefore be a critical success factor for the business during the second half of the 
year, with specific focus on reducing our injury frequency rate metrics to their historic performance levels and remaining fatality- 
free. 

Operationally our focus will be aimed at consolidating the strong operating performance achieved during the first half by securing 
further tangible gains in volumes, grade and costs with the key focus areas being:
-  Styldrift infrastructure development, construction and resourcing to ensure that production output from Styldrift continues to 
   steadily increase in line with our 150ktpm ramp-up phase
-  Redeploying 60% of the South shaft UG2 stoping crews affected by the restructuring process to higher grade Merensky panels at both 
   shafts and some to UG2 panels at North shaft. This will enable BRPM to maintain its ounce output with higher margin ounces
-  Leveraging the revised organisational structure to optimise the fixed cost base of the business.

Joint venture production for the full year is forecast to increase to between 2.90Mt and 3.00Mt at a 4E built-up head grade of 
approximately 3.94g/t, subject to any unforeseen operational disruptions.

Total joint venture capital expenditure for the second half of the year is estimated at R1.5 billion, with the key driver remaining the 
construction programme of the Styldrift I project. This will equate to a full year forecast of R2.3 billion against previously guided 
capital expenditure of R3.2 billion. SIB expenditure is forecast to remain between 4% and 5% of operating expenditure for the remainder 
of the year.  

The platinum market is forecast to be in a modest surplus (excluding investment demand) for 2017 and prices are expected to have 
limited upside from current levels resulting in margins remaining under pressure for the remainder of the year. The restructured 
business is expected to enhance margins going forward and it remains important for the Group to contain costs and defer non-essential 
capital expenditure. With cash and near cash investments of R1 664.5 million together with the R2 billion debt facilities, RBPlat is 
well poised to take the business to the next phase, that of ramping-up Styldrift to 150ktpm by end of 2018.

Delay in the finalisation of the Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill and the release of the 
controversial Mining Charter III on 15 June 2017 has resulted in the mining regulatory environment remaining very uncertain. RBPlat is 
fully committed to meaningful and sustainable transformation in the mining industry that goes beyond “just” compliance. As such, we are 
supportive of ongoing collaborative stakeholder engagement in pursuit of developing a policy which will support long term 
sustainability and growth in the industry and actively participate in this process.


CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 

                                                    30 June              30 June          31 December 
                                                       2017                 2016                 2016 
                                                   reviewed             reviewed              audited 
                                     Notes       R (million)          R (million)          R (million)
Assets                                 
Non-current assets                                 18 133.9             17 328.6             17 614.3 
Property, plant and equipment                      11 113.6             10 307.6             10 587.2 
Mineral rights                                      5 708.1              5 748.6              5 729.3 
Goodwill                                              863.3                863.3                863.3 
Environmental trust deposits and 
environmental guarantees                              156.7                130.8                147.0 
Employee housing loan receivable                      172.7                162.9                167.2 
Employee housing benefit                               45.6                 49.0                 46.5 
Insurance investment                                   36.0                 31.6                 35.0 
Deferred tax asset                                     37.9                 34.8                 38.8 
Current assets                                      3 860.9              2 738.1              2 703.6 
Employee housing benefit                                4.2                  4.2                  4.2 
Employee housing assets                               578.3                311.5                377.3 
Inventories                                            93.7                 80.2                 79.4 
Trade and other receivables                         1 517.7              1 307.8              1 405.6 
Current tax receivable                                  2.5                  1.2                  1.6 
Cash and cash equivalents                6          1 664.5              1 033.2                835.5 
Total assets                                       21 994.8             20 066.7             20 317.9 
Equity and liabilities                 
Total equity                                       15 021.0             14 733.8             14 813.9 
Share capital                                           1.9                  1.9                  1.9 
Share premium                                       9 643.2              9 397.3              9 400.8 
Retained earnings                                   1 425.4              1 435.9              1 454.2 
Share-based payment reserve                           208.2                185.7                216.2 
Non-distributable reserve                              82.5                 82.5                 82.5 
Non-controlling interest                            3 659.8              3 630.5              3 658.3 
Non-current liabilities                             5 297.8              4 110.4              4 165.0 
Deferred tax liability                              3 697.2              3 630.6              3 635.3 
Convertible bond liability             7.3            909.0                    —                    — 
PIC housing facility                                  592.0                378.6                434.0 
Restoration and rehabilitation 
provision and other                                    99.6                101.2                 95.7 
Current liabilities                                 1 676.0              1 222.5              1 339.0 
Trade and other payables                              586.9                355.4                449.3 
RPM payable                                         1 087.9                867.1                889.7 
Current tax payable                                     1.2                    —                    — 
Total equity and liabilities                       21 994.8             20 066.7             20 317.9 
The notes on pages 17 to 26 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 2017 

                                                   For the six months ended                          Year ended 
                                                   30 June          30 June                         31 December 
                                                      2017             2016                                2016 
                                                 reviewed          reviewed                             audited 
                                    Notes      R (million)       R (million)         % change        R (million)
Revenue                                 8         1 593.9           1 646.9              (3.2)          3 342.2 
Cost of sales                           9        (1 582.6)         (1 458.9)             (8.5)         (3 101.5)
Cost of sales excluding 
depreciation and amortisation                    (1 435.5)         (1 335.8)             (7.5)         (2 803.6)
Depreciation and amortisation                      (166.1)           (150.2)            (10.6)           (312.0)
Increase in inventories                              19.0              27.1             (29.9)             14.1 
Gross profit                                         11.3             188.0             (94.0)            240.7 
Other income                                         82.0              37.1             121.0              88.1 
Administration expenses                            (161.0)            (72.2)           (123.0)           (155.6)
Corporate office                                    (95.9)            (64.4)            (48.9)           (138.4)
Housing project                                      (8.0)             (7.8)             (2.6)            (17.2)
Restructuring costs                                 (57.1)                —            (100.0)                — 
Impairment of non-financial assets                   (0.5)             (2.1)             76.2              (2.6)
Finance income                                       66.5              45.4              46.5              91.8 
Finance cost                                        (30.2)             (3.6)           (738.9)             (7.4)
(Loss)/profit before tax                            (31.9)            192.6            (116.6)            255.0 
Income tax credit                      10             4.6              24.0             (80.8)              7.7 
Income tax expense                                  (11.3)             (9.1)            (24.2)            (24.7)
Deferred tax credit                                  15.9              33.1             (52.0)             32.4 
Net (loss)/profit for the period                    (27.3)            216.6            (112.6)            262.7 
Other comprehensive income                              —                 —                 —                 — 
Total comprehensive (loss)/income                   (27.3)            216.6            (112.6)            262.7 
Total comprehensive (loss)/income 
attributable to:   
Owners of the Company                               (28.8)            150.0            (119.2)            168.3 
Non-controlling interest                              1.5              66.6             (97.7)             94.4 
Basic (loss)/earnings per share 
(cents/share)                          13           (15.0)             78.2            (119.2)             87.6 
Diluted (loss)/earnings per 
share (cents/share)                    13           (11.8)             77.7            (115.2)             87.5 
Headline (loss)/earnings per 
share (cents/share)                    13           (15.3)             77.8            (119.7)             86.7 
The notes on pages 17 to 26 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 2017 

                                                                           Share                              Attributable
                                                                          -based           Non-                   to owners          Non-  
                                Number      Ordinary         Share       payment  distributable      Retained        of the   controlling
                             of shares        shares       premium       reserve       reserves      earnings      Company       interest         Total
                                issued    R (million)   R (million)   R (million)    R (million)   R (million)   R (million)   R (million)   R (million)
Balance at 1 January 
2016 (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 

Share-based payment 
expense for the 
six months                           —             —             —          30.6              —             —          30.6             —          30.6 
Share options exercised              —             —             —           3.4              —             —           3.4             —           3.4 
Total comprehensive 
income                               —             —             —             —              —          18.3          18.3          27.8          46.1 
Balance at31 December 
2016 (audited)             192 277 990           1.9       9 400.8         216.2           82.5       1 454.2      11 155.6       3 658.3      14 813.9 
Share-based payment 
expense for the 
six months                           —             —             —          32.0              —             —          32.0             —          32.0 
Convertible bond — 
equity portion                       —             —         202.4             —              —             —         202.4             —         202.4 
2014 BSP shares vested 
in April 2017                  590 851             —          40.0         (40.0)             —             —             —             —             — 
Total comprehensive loss             —             —             —             —              —         (28.8)        (28.8)          1.5         (27.3)
Balance at 30 June 
2017 (reviewed)            192 868 841           1.9       9 643.2         208.2           82.5       1 425.4      11 361.2       3 659.8      15 021.0 

The notes on pages 17 to 26 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 2017 

                                                          For the six months ended                          Year ended 
                                                          30 June          30 June                         31 December 
                                                             2017             2016                                2016 
                                                        reviewed          reviewed                             audited 
                                           Notes      R (million)       R (million)         % change        R (million)
Cash flows from operating 
activities                       
Cash generated by operations                               122.0             382.2             (68.1)            528.8 
Interest paid                                               (0.5)                —            (100.0)             (0.2)
Interest received                                           58.3              27.8             109.7              74.4 
Dividend received                                            1.6               4.5             (64.4)              5.0 
Tax refund                                                   1.1               2.2             (50.0)              2.5 
Tax paid                                                   (11.9)             (9.0)            (32.2)            (25.2)
Net cash flow generated by 
operating activities                                       170.6             407.7             (58.2)            585.3 
Cash flows from investing 
activities                       
Proceeds from disposal of 
property, plant and equipment                                  —              45.0            (100.0)             47.2 
Acquisition of property, plant 
and equipment                                             (842.5)           (508.1)            (65.8)         (1 136.5)
Styldrift on-reef development 
revenue receipts                                           181.6             102.6              77.0             273.9 
Acquisition of employee housing 
assets                                                    (183.3)            (34.3)           (434.4)            (83.2)
Acquisition of insurance 
investment                                                     —                 —                 —              (2.9)
Increase in environmental trust 
deposits and investments                                    (6.5)             (7.2)              9.7             (20.1)
Net cash flow utilised by 
investing activities                                      (850.7)           (402.0)           (111.6)           (921.6)
Cash flows from financing 
activities                       
Increase in amount owing to RPM                            198.1              27.4             623.0             128.8 
RPM contribution to housing 
fund received                                                  —              82.5            (100.0)             82.5 
Drawdown of PIC housing facility                           140.0                 —             100.0              40.0 
Proceeds from share options        
exercised                                                      —                 —                 —               2.9 
Proceeds from convertible bonds 
issued                                       7           1 200.0                 —             100.0                 — 
Costs relating to issue of 
convertible bonds capitalised              7.3             (29.0)                —            (100.0)                — 
Net cash flow generated by 
financing activities                                     1 509.1             109.9           1 273.2             254.2 
Net increase/(decrease) in cash 
and cash equivalents                                       829.0             115.6             617.1             (82.1)
Cash and cash equivalents at 
beginning of period                                        835.5             917.6              (8.9)            917.6 
Cash and cash equivalents at 
end of period                                6           1 664.5           1 033.2              61.1             835.5 
The notes on pages 17 to 26 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 2017 

1 BASIS OF PREPARATION

The condensed consolidated interim financial statements are prepared in accordance with and contain 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 2017                30 June 2016  
                                                                        reviewed                    reviewed  
                                                                      R (million)                 R (million) 
Contracted commitments                                                     931.5                       588.5 
Approved expenditure not yet contracted for                              4 661.0                     4 925.0 
Total                                                                    5 592.5                     5 513.5 

The capital commitments reflect 100% of the BRPM JV project commitments. In terms of the BRPM JV Agreement, Royal Bafokeng 
Resources Proprietary Limited must fund 67% thereof and Rustenburg Platinum Mines Limited (RPM) the remaining 33%. 

Should either party elect not to fund its share, its 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 2017                30 June 2016  
                                                                                       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 
Eskom security guarantee for power supply to the Styldrift I project                       42.7                           — 
Anglo American Platinum guarantee for environmental rehabilitation liability*              82.6                        82.6 
DMR guarantee for environmental rehabilitation liability                                    1.3                         1.3 
Rental guarantees                                                                           0.7                         0.4 
Total bank guarantees issued at 30 June                                                   201.9                       189.5 
DMR guarantee for the Styldrift II project (100% BRPM JV)                                  45.7                        45.7 
DMR guarantee for environmental rehabilitation liability                                  150.7                           — 
Total insurance guarantees issued at 30 June                                              196.4                        45.7 
* The R82.6 million bank guarantee is in the process of being cancelled as 
  it has been replaced with the R150.7 million insurance guarantee to the DMR. 

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)
For Anglo American Platinum's 33% share of the Eskom security guarantee 
for power supply to the Styldrift I project                                              (14.1)                          — 
Total guarantees received at 30 June                                                     (38.7)                      (24.6)

5.3 Contingencies
Effective 20 November 2015, regulations governing financial provisions for asset retirement obligations was transitioned from the 
Mineral and Petroleum Resources Development Act (MPRDA) to the National Environmental Management Act (NEMA). These regulations 
were amended in October 2016.

In terms of these regulations, 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. Our groundwater pollution plume model 
will be updated in 2017 to qualify the size and rate of the plume movement. This will assist us in determining appropriate remediation 
actions.

The ultimate outcome of the matter cannot presently be determined and no liability has been raised in the interim financial statements. 
BRPM constructed a water treatment plant in 2015 which has reduced our dependence on Magalies Water.  
 
6 AVAILABLE FUNDS 

RBPlat had cash and cash equivalents on hand at 30 June 2017 of R1 664.5 million. Included in this cash balance is restricted 
cash of R67.7 million ring-fenced for the RBPlat housing project and R420 million earmarked for the payment of the convertible bond 
coupon. RBPlat concluded R2 billion debt facilities in March 2017. The debt facilities consist of a 7 year term debt facility of 
R750 million bearing interest at JIBAR plus a margin of 3.7%, a 5 year revolving credit facility of R750 million bearing interest at 
JIBAR plus a margin of 3.75% and 1 year general banking facilities of  R508 million bearing interest at prime less 0.25%. R202 million 
of the general banking facilities were utilised for guarantees at 30 June 2017. 

RBPlat’s term debt and revolving credit facilities remained undrawn at 30 June 2017. 

7 BORROWINGS 

Convertible bonds 
RBPlat issued 120 000 7% senior unsecured convertible bonds for R1.2 billion on 15 March 2017. Shareholders’ approval for the 
conversion of the convertible bonds was obtained on 8 May 2017. The bonds are convertible into ordinary shares of RBPlat at the 
option of the holder at an initial conversion price of R42.9438. The conversion price is subject to customary adjustments for 
reconstructions of equity. These customary adjustments maintain the relative rights of the bondholders. Interest on the bonds is 
payable semi-annually in arrears on 16 March and 16 September of each year for five years ending 16 September 2022. 

The bonds are listed on the JSE Main Board under stock code number RBPCB. 

The R1.2 billion convertible bond was initially recognised as a R300.6 million derivative liability and a R899.4 million liability. 

                                                                                    For the six months ended
                                                                    30 June 2017                30 June 2016  
                                                                        reviewed                    reviewed  
                                                                      R (million)                 R (million)
7.1 Derivative — initial recognition                                       300.6                           — 
Less: Fair value up to date of shareholder approval                        (19.5)                          — 
Derivative fair value at date of shareholder approval (8 May 2017)         281.1                           — 
Less: Derivative derecognised                                             (281.1)                          — 
Derivative balance at 30 June 2017                                             —                           — 

7.2 Convertible bond equity                          
Equity recognised on date of shareholder approval (8 May 2017)             281.1                           — 
Less: Deferred tax recognised on equity portion                            (78.7)                          — 
Net equity recognised as per statement of changes in equity                202.4                           — 

7.3 Convertible bond liability                       
Liability — initial recognition                                            899.4                           — 
Less: Transaction cost capitalised                                         (29.0)                          — 
Plus: Fair value interest*                                                  38.6                           — 
Convertible bond liability at 30 June 2017                                 909.0                           — 
*R12.2 million of the fair value interest was capitalised at RBPlat Group level. 

The carrying amount of the liability portion at initial recognition was measured as the difference between the cash proceeds and 
the fair value of the embedded derivative. The liability is subsequently recognised on an amortised cost basis until extinguished on 
conversion or maturity of the bonds using the effective interest rate method. 

8 REVENUE 

                                                                                    For the six months ended
                                                                    30 June 2017                30 June 2016  
                                                                        reviewed                    reviewed  
                                                                      R (million)                 R (million)
Concentrate sales — production from BRPM concentrator                    1 373.7                     1 462.5 
UG2 toll concentrate sales                                                 220.2                       184.4 
Total revenue                                                            1 593.9                     1 646.9 
Styldrift on-reef development revenue not included above but credited against property, plant and equipment for the six months 
ended 30 June 2017 amounted to R187.3 million (2016: R159.4 million). 

9 COST OF SALES 

                                                                                    For the six months ended
                                                                    30 June 2017                30 June 2016  
                                                                        reviewed                    reviewed  
                                                                      R (million)                 R (million)
Labour                                                                     543.6                       512.5 
Utilities                                                                  122.5                       114.3 
Contractor costs                                                           396.1                       334.6 
Materials and other mining costs                                           337.0                       338.4 
Materials and other mining costs for BRPM JV                               367.1                       367.7 
Elimination of intergroup charges                                          (30.1)                      (29.3)
Movement in inventories                                                    (19.0)                      (27.1)
Depreciation                                                               144.9                       132.9 
Amortisation                                                                21.2                        17.3 
Share-based payment expense                                                 14.2                        13.2 
Social and labour plan expenditure                                          14.8                        13.8 
State royalties                                                              6.0                         6.1 
Other                                                                        1.3                         2.9 
Total cost of sales                                                      1 582.6                     1 458.9 

10 INCOME TAX CREDIT 
                                                                                    For the six months ended
                                                                    30 June 2017                30 June 2016  
                                                                        reviewed                    reviewed  
                                                                      R (million)                 R (million)
Income tax expense                                                         (11.3)                       (9.1)
Current year                                                               (11.3)                       (9.1)
Prior year                                                                     —                           — 
Deferred tax credit                                                         15.9                        33.1 
Current year                                                                15.9                        33.1 
Prior year                                                                     —                           — 
Total income tax credit                                                      4.6                        24.0 
Tax rate reconciliation:                             
(Loss)/profit before tax                                                   (31.9)                      192.6 
Tax credit/(expense) calculated at a tax rate of 
28% (2016: 28%)                                                              8.9                       (53.9)
Non-taxable income — dividends                                               0.4                         1.3 
Non-taxable income — other                                                   1.6                         4.3 
Tax on BRPM JV — NCI share                                                   4.2                         3.4 
Non-deductible expense                                                      (0.6)                       (0.1)
Housing contribution net tax credit                                            —                        70.0 
Tax losses not recognised                                                   (9.9)                       (1.0)
                                                                             4.6                        24.0 
Effective tax rate                                                            14%                         12% 

11 RELATED PARTY TRANSACTIONS 

                                                                                    For the six months ended
                                                                    30 June 2017                30 June 2016  
                                                                        reviewed                    reviewed  
                                                                      R (million)                 R (million)
Amount owing by RPM for concentrate sales                                1 342.0                     1 214.2 
Amount owing to RPM for contribution to BRPM JV                          1 249.1                       949.6 
Amount owing by Impala Platinum Limited to BRPM JV                          26.1                        17.1 
Transactions during the six months:                  
Concentrate sales to RPM (including Stydrift 
on-reef development revenue)                                             1 781.2                     1 806.3 
Impala Platinum Limited royalty income                                      39.1                        29.9 
Transactions with Fraser Alexander for rental of 
mining equipment, maintenance of tailings dam and 
operation of sewage plant                                                    5.5                         4.4 
Royal Marang Hotel for accomodation and conferences                          0.3                         0.3 
Geoserve Exploration Drilling Company for 
exploration drilling                                                         2.4                         0.4 
Trident South Africa (Pty) Ltd for steel supplies                            0.7                         0.7 
Mtech Industrial for supply and installation of 
heat pumps                                                                     —                         0.1 
The MSA Group for consulting services                                        0.1                           — 
Fees paid to non-executive directors (RBH/Mogs)                              0.3                         0.3 

12 DIVIDENDS 

No dividends have been declared or proposed in the current period (2016: nil). 

13 BASIC AND HEADLINE (LOSS)/EARNINGS 

                                                                                    For the six months ended
                                                                    30 June 2017                30 June 2016  
                                                                        reviewed                    reviewed  
                                                                      R (million)                 R (million)
Basic (loss)/earnings — attributable to owners of 
the Company R (million)                                                    (28.8)                      150.0 
Adjustments net of tax                                                      (0.6)                       (0.7)
Headline (loss)/earnings R (million)                                       (29.4)                      149.3 
Weighted average number of ordinary shares in issue 
for basic and headline earnings per share                            192 425 299                 191 876 479 
Weighted average number of ordinary shares in issue 
for diluted earnings and diluted headline earnings per share         202 619 383                 193 195 745 
Basic (loss)/earnings per share (cents/share)                              (15.0)                       78.2 
Diluted (loss)/earnings per share (cents/share)                            (11.8)                       77.7 
Headline (loss)/earnings per share (cents/share)                           (15.3)                       77.8 
Diluted headline (loss)/earnings per share 
(cents/share)                                                              (12.1)                       77.3 

14 IMPAIRMENT REVIEW 

The impairment review process did not result in the identification of any impairment indicators, consequently, no impairment was noted.

15 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)
2017                                         
Financial assets at fair value through profit or loss                               
Environmental trust deposits1                                          —                    97.3                       — 
Insurance investment2                                                  —                    36.0                       — 
Loans and receivables                        
Employee housing loan receivable4                                      —                       —                   172.7 
Financial liabilities at fair value through profit or loss  
Forward exchange contracts3                                            —                     0.3                       — 
Financial liabilities at amortised cost      
Convertible bond liability4                                            —                       —                   909.0 
PIC housing facility4                                                  —                       —                   592.0 

                                                                 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 
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 CoreShare Green 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 2017                30 June 2016  
                                                                        reviewed                    reviewed  
                                                                      R (million)                 R (million)
Loans and receivables                                
Employee housing loan receivable                     
Opening balance at 1 January                                               167.2                       157.7 
Plus/(less): Houses sold to employees during the 
period/(cancellation of sales)                                               2.7                        (1.0)
Plus: Interest capitalised (including fair value 
interest adjustment)                                                         5.4                         6.2 
Less: Settlement of employee housing loan receivable                        (0.9)                          — 
Less: Employee housing benefit reallocation                                 (1.7)                          — 
Closing balances at 30 June                                                172.7                       162.9 
Financial liabilities at amortised cost              
PIC housing facility                                 
Opening balance at 1 January                                               434.0                       366.9 
Plus: Draw downs                                                           140.0                           — 
Plus: Contractual and fair value interest charges 
capitalised to the loan                                                     19.0                        12.5 
Less: Amortisation of fair value adjustment to loan                         (1.0)                       (0.8)
Closing balances at 30 June                                                592.0                       378.6 

16 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. 

16.1 Segmental statement of financial position
                                                                                Reviewed
                                                                           As at 30 June 2017 
                                                   Styldrift           BRPM JV                                         Consolidation
                                  BRPM mining         mining    mining segment             RBPlat        Corporate           adjust-
                                   segment (A)    segment (B)           (A + B)   housing segment           office              ment         Total 
                                   R (million)    R (million)       R (million)        R (million)      R (million)       R (million)   R (million)
Non-current assets                    4 504.3        6 910.8          11 415.1              258.1**       16 436.0          (9 975.3)     18 133.9 
Allocation of mineral                   934.1        4 774.0*          5 708.1                  -         (5 708.1)                -             - 
rights and segments                                                                                                                                
Non-current assets                    5 438.4       11 684.8          17 123.2              258.1         10 727.9          (9 975.3)     18 133.9 
after allocation of                                                                                                                                
mineral rights                                                                                                                                     
Current assets                        1 525.8          252.4           1 778.2              665.5          1 426.7              (9.5)      3 860.9 
Total assets per statement                                                                                                             
of financial position                 6 964.2       11 937.2          18 901.4              923.6         12 154.6          (9 984.8)     21 994.8 
Non-current liabilities                  85.2           13.1              98.3              593.3          7 568.6          (2 962.4)      5 297.8 
Current liabilities                   3 994.8          101.9           4 096.7              102.2            183.2          (2 706.1)      1 676.0 
Total liabilities per statement                                                                                                        
of financial position                 4 080.0          115.0           4 195.0              695.5          7 751.8          (5 668.5)      6 973.8 
*   Includes Styldrift II exploration and evaluation costs.
**  Employee housing loan receivable is classified as non-current as repayment of the capital portion of these receivables is expected to commence 
    after 12 months from date of the statement of financial position.

16.1 Segmental statement of financial position continued
                                                                                    Reviewed
                                                                                As at 30 June 2016 
                                                   Styldrift           BRPM JV                                         Consolidation
                                  BRPM mining         mining    mining segment             RBPlat        Corporate           adjust-
                                   segment (A)    segment (B)           (A + B)   housing segment           office              ment         Total
                                   R (million)    R (million)       R (million)        R (million)      R (million)       R (million)   R (million)
Non-current assets                    4 821.0        5 757.1          10 578.1              246.5         15 717.7          (9 213.7)     17 328.6 
Allocation of mineral                   974.6        4 774.0           5 748.6                  -         (5 748.6)                -             - 
rights and segments                                                                                                                                
Non-current assets                    5 795.6       10 531.1          16 326.7              246.5          9 969.1          (9 213.7)     17 328.6 
after allocation of                                                                                                                                
mineral rights                                                                                                                                     
Current assets                        1 695.6          113.4           1 809.0              357.6            577.8              (6.3)      2 738.1 
Total assets per statement of                                                                                                         
financial position                    7 491.2       10 644.5          18 135.7              604.1         10 546.9          (9 220.0)     20 066.7 
Non-current liabilities                  85.7           13.8              99.5              380.3          6 067.7          (2 437.1)      4 110.4 
Current liabilities                   3 311.9          107.0           3 418.9               10.2            172.7          (2 379.3)      1 222.5 
Total liabilities per statement                                                                                                       
of financial position                 3 397.6          120.8           3 518.4              390.5          6 240.4          (4 816.4)      5 332.9 

16.2  Segmental statement of comprehensive income
                                                                                                           Reviewed
                                                                                            For the six months ended 30 June 2017
                                                               Styldrift           BRPM JV                                         Consolidation                
                                              BRPM mining         mining    mining segment             RBPlat        Corporate           adjust-                
                                               segment (A)    segment (B)           (A + B)   housing segment           office              ment         Total  
                                               R (million)    R (million)       R (million)        R (million)      R (million)       R (million)   R (million) 
Revenue                                           1 593.9              -           1 593.9                4.2                -              (4.2)      1 593.9  
Cost of sales                                    (1 585.4)          (0.1)         (1 585.5)              (3.1)           (27.2)             33.2      (1 582.6) 
Cash cost of sales excluding                                                                                                                                    
depreciation and amortisation                    (1 459.6)             -          (1 459.6)              (3.1)            (6.0)             33.2      (1 435.5) 
Depreciation                                       (144.8)          (0.1)           (144.9)                 -                -                 -        (144.9) 
Amortisation                                            -              -                 -                  -            (21.2)                -         (21.2) 
Movement in inventories                              19.0              -              19.0                  -                -                 -          19.0  
Gross profit/(loss) per segment and total             8.5           (0.1)              8.4                1.1            (27.2)             29.0          11.3  
Other income                                         50.2            1.8              52.0                2.0             27.3               0.7          82.0  
Total administration expenditure                   (57.1)*             -             (57.1)              (8.0)          (101.7)              5.8        (161.0) 
Impairment on non-financial assets                      -              -                 -               (0.5)               -                 -          (0.5) 
Net finance income                                    6.1            0.6               6.7               14.2              3.1              12.3          36.3  
Profit/(loss) before tax per segment and total        7.7            2.3              10.0                8.8            (98.5)             47.8         (31.9) 
Taxation                                                                                                                                                   4.6  
(Loss)/profit after tax                                                                                                                                  (27.3) 
Attributable to owners of the Company                                                                                                                    (28.8) 
Attributable to non-controlling interest                                                                                                                   1.5  
* This relates to restructuring costs incurred at BRPM JV.

16.2  Segmental statement of comprehensive income continued
                                                                                                     Reviewed
                                                                                           For the six months ended 30 June 2016
                                                               Styldrift           BRPM JV                                         Consolidation
                                              BRPM mining         mining    mining segment             RBPlat        Corporate           adjust-
                                               segment (A)    segment (B)           (A + B)   housing segment           office              ment         Total
                                               R (million)    R (million)       R (million)        R (million)      R (million)       R (million)   R (million)
Revenue                                           1 646.9              -           1 646.9                  -                -                 -       1 646.9 
Cost of sales                                    (1 499.4)          (0.2)         (1 499.6)                 -            (23.4)             64.1      (1 458.9)
Cash cost of sales excluding                                                                                                                      
depreciation and amortisation                    (1 393.8)             -          (1 393.8)                 -             (6.1)             64.1      (1 335.8)
Depreciation                                       (132.7)          (0.2)           (132.9)                 -                -                 -        (132.9)
Amortisation                                            -              -                 -                  -            (17.3)                -         (17.3)
Movement in inventories                              27.1              -              27.1                  -                -                 -          27.1 
Gross profit/(loss) per segment and total           147.5           (0.2)            147.3                  -            (23.4)             64.1         188.0 
Other income                                         42.3           (6.9)             35.4                1.3              0.8              (0.4)         37.1 
Total administration expenditure                        -              -                 -               (7.8)           (67.7)              3.3         (72.2)
Impairment on 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 
Profit/(loss) before tax per segment and total      193.2           (7.0)            186.2                7.6            (68.2)             67.0         192.6 
Taxation                                                                                                                                                  24.0 
(Loss)/profit after tax                                                                                                                                  216.6 
Attributable to owners of the Company                                                                                                                    150.0 
Attributable to non-controlling interest                                                                                                                  66.6 

16.3 Segmental statement of cash flows
                                                                                                    Reviewed
                                                                                      For the six months ended 30 June 2017
                                                                     Styldrift           BRPM JV
                                                    BRPM mining         mining    mining segment             RBPlat        Corporate     
                                                     segment (A)    segment (B)           (A + B)   housing segment           office             Total
                                                     R (million)    R (million)       R (million)        R (million)      R (million)       R (million)
Net cash flow generated/(utilised) by operating     
activities                                                 42.6            1.2              43.8               72.0             54.8             170.6   
Net cash flow generated/(utilised) by investing    
activities                                                (71.1)        (596.1)           (667.2)            (183.3)            (0.2)           (850.7)  
Net cash flow generated/(utilised) by financing    
activities                                                  5.5          594.9             600.4              140.0            768.7           1 509.1   
Net (decrease)/increase in cash and cash equivalents      (23.0)             -             (23.0)              28.7            823.3             829.0   
Cash and cash equivalents at beginning of period          370.5              -             370.5               39.0            426.0             835.5   
Cash and cash equivalents at end of period                347.5              -             347.5               67.7          1 249.3           1 664.5   

16.3 Segmental statement of cash flows continued
                                                                                                    Reviewed
                                                                                     For the six months ended 30 June 2016
                                                                     Styldrift           BRPM JV
                                                    BRPM mining         mining    mining segment             RBPlat        Corporate     
                                                     segment (A)    segment (B)           (A + B)   housing segment           office             Total
                                                     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 
Net cash flow generated/(utilised) by investing                      
activities                                               (132.6)        (241.3)           (373.9)             (34.3)             6.2            (402.0) 
Net cash flow generated/(utilised) by financing                      
activities                                               (158.4)         241.3              82.9                  -             27.0             109.9 
Net (decrease)/increase in cash and cash equivalents      108.6              -             108.6              (22.8)            29.8             115.6 
Cash and cash equivalents at beginning of period          326.1              -             326.1               60.5            531.0             917.6 
Cash and cash equivalents at end of period                434.7              -             434.7               37.7            560.8           1 033.2

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
15 Biermann Avenue
Rosebank
Johannesburg
2196

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



Date: 01/08/2017 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story