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RBP - Royal Bafokeng Platinum Limited - RBPLAT quarterly review and production
report for the period 1 January to 31 March 2012
ROYAL BAFOKENG PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2008/015696/06)
JSE share code: RBP ISIN: ZAE000149936
("RBPlat" or the "Company")
RBPLAT QUARTERLY REVIEW AND PRODUCTION REPORT FOR THE PERIOD 1 JANUARY TO 31
MARCH 2012
Fatality in February 2012, although LTIFR improves by 40%
Increased production losses due to Section 54 stoppages and mining skills
turnover (Rock Drill Operators)
Expansion and replacement projects on track and within budget
Description Unit Q1 Q1 Q4 % Change
2012 2011 2011
Q1 Q1
2012 2012
vs. vs.
Q1 Q4 2011
2011
Safety
LTIFR (/200,000 hrs) rate 0.67 1.11 0.84 40% 20%
SIFR (/200,000 hrs) rate 0.45 0.35 0.45 -27% 0%
Production
Tonnes delivered to kt 532 550 496 -3% 7%
concentrators
Total tonnes milled kt 512 545 509 -6% 1%
% UG2 of total tonnes % 10.3% 11.1% 11.5% -7% -11%
milled
4E built-up head grade g/t 4.11 4.34 4.46 -5% -8%
Metals in concentrate
produced
4E oz 59 217 66 134 64 281 -10% -8%
Platinum oz 38 426 42 838 41 722 -10% -8%
Nickel t 439 461 463 -5% -5%
Copper t 275 315 286 -13% -4%
Cash Operating Costs
Operating cash cost / R/t 874 798 857 -9% -2%
tonne milled
Operating cash cost / 4E R/oz 7,559 6,582 6,783 -15% -11%
oz
Operating cash cost / Pt R/oz 11,648 10,161 10,451 -15% -11%
oz
Capital Expenditure
Total capital R`m 249.2 278.0 280.7 10% 11%
Expansion R`m 131.1 194.9 120.7 33% -9%
Replacement R`m 73.5 77.9 106.2 6% 31%
Stay-in-business R`m 44.5 5.2 53.8 -747% 17%
SAFETY
Regrettably, a Platcro Mining Services (Pty) Limited employee Mr Castigo Mario
Ndeve, lost his life on 6 February 2012 in a fall of ground incident at our
North shaft. We extend our deepest sympathies to the family, friends and
colleagues of Mr Ndeve.
RBPlat`s lost time injury frequency rate (LTIFR) improved by 40% in the first
quarter of 2012 compared with the same period in 2011 and improved by 20%
compared with the fourth quarter of 2011. The serious injury frequency rate
(SIFR) deteriorated, however, by 27% during the quarter under review compared
with the first quarter of 2011, but remained stable compared to the previous
quarter.
Seven Section 54 notices were issued during the quarter affecting a total of 19
production shifts.
Zero harm remains one of the primary goals of RBPlat`s strategic objective to
achieve operational excellence. The cross audit safety campaign initiated in
2011 will continue in 2012, the key focus of which continues to be the reduction
in injury frequency rates and minimising safety-related stoppages (whether self
or regulatory-imposed).
PRODUCTION
Total tonnes delivered to concentrators was 3% lower than the first quarter of
2011. Key contributing factors to the reduced mining production volumes were the
increase in Section 54-related stoppages and an increased turnover of Rock Drill
Operators as a result of industrial action at neighbouring mines. Section 54-
related production losses for
the first quarter of 2012 are estimated at 61,618 tonnes compared with 28,925
tonnes for the first quarter in 2011.
In total, 4E ounces-in-concentrate declined by 10% during the period under
review, when compared with the corresponding quarter in 2011 and was
attributable to:
- 6% lower volumes treated as a result of the lower tonnes delivered to
concentrators; and
- 5% reduction in the 4E built-up head grade mainly due to the increase in
stoping dilution. Remedial action has been instituted.
The concentrator performance remains satisfactory with a 1% higher 4E recovery
when compared to the first quarter of 2011, despite the reduction of built-up
head grade.
April 2012 production has been encouraging and the Company is expecting an
improved operational performance for the remainder of the year.
CASH OPERATING COSTS
Fixed costs represent a substantial component of total cash operating cost.
Therefore the cash operating cost per platinum ounce-in-concentrate produced
increased by 15% to R11, 648 compared with the first quarter of 2011, with the
key contributing factors being:
- the reduced volumes (10%) and;
- above Consumer Price Index (CPI) related increases (6.1%) associated with
(i) annual July 2011 salary increases, (ii) electricity tariff increases in
April 2011 and (iii) water tariff increases in July 2011.
The cash cost per tonne milled increased by 9% to R874 compared with the first
quarter of 2011. The increase was also being attributed to reduced volumes and
above CPI-related increases.
The primary cost reduction strategies continue to be the optimisation of
production volumes whilst bringing identified cost saving initiatives to
fruition.
CAPITAL
Capital expenditure ended 10% lower for the first quarter compared with the
first quarter of 2011, with reduced expenditure on expansion and replacement
projects offsetting the increased stay-in-business (SIB) expenditure. Capital
expenditure is aligned with the construction programmes of the various projects.
PROJECTS
Styldrift I Project (expansion)
Sinking at the Main shaft has progressed to a depth of 364.2m and the Services
shaft to 266m. A total of 260m has been sunk during the quarter at the two
shafts. Sinking rates have improved significantly during the quarter with the
primary focus being the maintainance of the shorter sinking cycles that are
currently being achieved. It is anticipated that the first key sinking
milestone, Merensky 594m level (Merensky reef intersection), will be reached by
September 2012.
Capital expenditure for the quarter was R124.96 million, with the 2012 year
forecast expenditure at R787 million (including contingencies and escalation).
At the end of the quarter under review the project-to-date commitment was R1,
963 billion and expenditure was R1,363 billion.
The overall project is on schedule, at around 28.24% of completion.
BRPM Phase II Project (replacement)
The Phase II replacement project is the extension of the decline systems at both
North and South shafts from 6 level down to 10 level. The extension at North
shaft was successfully completed in September 2011 and South shaft extension
remains on schedule for completion in September 2012.
The project remains below budget with expenditure for the quarter of R25.98
million and R2, 177 billion spent on the project to date.
BRPM Phase III Project (replacement)
The Phase III replacement project entails the extension of the North shaft
access infrastructure and associated reef infrastructure from level 10 to the
boundary of the mine (level 15).
The overall project is 26% complete, which is slightly ahead of schedule.
The project remains below budget, with expenditure for the quarter of R47.55
million and R265.90 million for the project to date.
NOTE
The financial information in this quarterly review and production report has not
been reviewed or reported on by RBPlat`s auditors.
Johannesburg
25 April 2012
JSE Sponsor
Macquarie First South Capital (Pty) Limited
For further enquiries, please contact:
Lindiwe Montshiwagae
Investor Relations Manager
Tel: +27 (0)10 590 4517
E-mail: lindiwe@bafokengplatinum.co.za
Date: 25/04/2012 11:00:03 Supplied by www.sharenet.co.za
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