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ROYAL BAFOKENG PLATINUM LIMITED - Quarterly Review and Production Report

Release Date: 14/04/2016 09:03
Code(s): RBP     PDF:  
Wrap Text
Quarterly Review and Production Report

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


  ROYAL BAFOKENG PLATINUM LIMITED (RBPLAT) QUARTERLY REVIEW AND PRODUCTION REPORT FOR
                                       THE PERIOD

                                             1 JANUARY TO 31 MARCH 2016

 Operational flexibility and stability, underpinned by sound strategy, delivers strong operational performance

Key features 

     -    58% and 48% improvement in serious and lost time injury frequency rates respectively
     -    9% increase in tonnes delivered
     -    12% improvement in tonnes milled
     -    4% increase in built-up head grade
     -    18% improvement in 4E and platinum ounces produced
     -    3% reduction in cash operating cost per 4E and platinum ounce
     -    53% reduction in capital expenditure – in line with cash preservation strategy

                                                                            Unaudited        Unaudited      March 2016
                               Description                       Unit     quarter ended    quarter ended    vs. March
                                                                          31 March 2016    31 March 2015       2015


Safety
  SIFR (/200,000 hrs)                                             rate             0.05             0.12           58%
  LTIFR (/200,000 hrs)                                            rate             0.25             0.48           48%

Production
Tonnes delivered to concentrators                                 kt                616              564             9%
  BRPM                                                            kt                554              553             0%
  Styldrift                                                       kt                 62               11          464%
4E delivered grade                                                g/t              4.06             4.00             1%
  Merensky                                                        g/t              4.11             4.22           (3%)
  UG2                                                             g/t              3.88             3.66             6%

Total tonnes milled                                               kt                607              540            12%
 BRPM                                                             kt                544              530             3%
 Styldrift                                                        kt                 63               10          530%
% UG2 of total tonnes milled                                      %                  22               27          (19%)
4E built-up head grade                                            g/t              4.04             3.87             4%
  Merensky                                                        g/t              4.12             4.00             3%
  UG2                                                             g/t              3.75             3.53             6%
Concentrator recovery (4E)                                        %               86.14            85.47             1%

Metals in concentrate produced*
 4E                                                               koz              67.9             57.5           18%
   Platinum                                                       koz              43.6             36.9           18%
   Palladium                                                      koz              18.3             15.3           20%
   Rhodium                                                        koz                4.0              3.6          11%
   Gold                                                           koz                2.0              1.6          25%
 4E + Ruthenium and Iridium                                       koz              74.0             63.1           17%
 Nickel                                                            kt             0.417            0.348           20%
 Copper                                                            kt             0.265            0.222           19%

Cash operating costs
Cash operating costs**                                           R’m                625              595           (5%)
Cash operating cost / tonne milled**                              R/t             1 149            1 121           (2%)
Cash operating cost / 4E oz**                                    R/oz            10 095           10 383             3%
Cash operating cost / Pt oz**                                    R/oz            15 718           16 153             3%


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Capital expenditure
Total capital                                                                    R'm         236.7   508.8      53%
  Expansion                                                                      R'm         184.6   445.2      59%
  Replacement                                                                    R'm          31.2    42.0      26%
  Stay-in-business (SIB)                                                         R'm          20.9    21.7       4%
  SIB as a percentage of operating cost                                          %             3.3     3.6       8%
*Metals in concentrate produced include Styldrift I on-reef development ounces
** Costs are calculated excluding Styldrift I on-reef development tonnes, ounces and costs

SAFETY

The safety turnaround strategy implemented late in 2015 continues to show positive trends with our objective to
progress the operation to a Resilient culture and achieve our goal of zero harm. No fatalities were recorded during the
reporting period, with serious injury and lost time injury frequency rates reducing by 58% and 48% respectively.

PRODUCTION
Total tonnes delivered to concentrators increased by 9%, whilst tonnes milled increased by 12%, the built-up head grade
improved by 4% and overall concentrator recovery ended 1% higher compared to the first quarter of 2015. The improvement
in tonnes milled, built-up head grade and recovery yielded an 18% year-on-year increase in 4E and platinum ounce
production.

CASH OPERATING COSTS

Persistent focus on cost management has resulted in the year-on-year increase in cash operating costs being
maintained well below mining inflation at 5% and combined with the improved production volumes resulted in the unit
cost per tonne milled increasing by only 2%.

The 4% increase in built-up head grade and 1% improvement in recovery has yielded a 3% reduction in the cash
operating cost per 4E and platinum ounce compared to the same period in 2015.

CAPITAL

Capital expenditure ended 53% or R272 million lower for the period under review when compared to the same period
in 2015. The reduction in expenditure is aligned with our cash preservation strategy initiated in the second half of 2015
which included reducing construction activities and related capital expenditure at our Styldrift I project, deferring
construction activities on our Phase III replacement project and maintaining SIB expenditure at around 4%.

PROJECTS

Styldrift I project (expansion)

Mining and infrastructure construction related activities during the quarter were aligned with the revised project
construction schedule. The key focus during the quarter was on:
     -    Completion of the BRPM 250ktpm concentrator upgrade – metallurgical circuit
     -    Continuing with on-reef lateral development on 600 Level to establish workshops and related infrastructure
     -    Preparatory mining and construction activities to support development and raise-boring activities on 642 and
          708 Levels to establish rock and water handling related infrastructure
     -    Silo 2 construction
     -    Upfront preparation work related to commencing with Services shaft equipping in the third quarter of 2016

Capital expenditure for the quarter amounted to R185 million bringing total expenditure on the project to R5.66 billion.
Total expenditure for the project for 2016 remains forecast at R1 billion.

BRPM Phase III project (replacement)

The project, which entails the extension of the North shaft decline access infrastructure and associated reef
infrastructure from level 10 to the mine boundary at level 15 continues to advance well. Project progress and
expenditure is aligned with the revised deferment strategy and the project remains set for completion in 2017 as per
the original project schedule. Project expenditure for the quarter amounted to R31.2 million bringing the total project
expenditure to date to R1.02 billion.


The information set out in this announcement has not been reviewed and reported on by the company’s external
auditors.



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Johannesburg
14 April 2016
JSE Sponsor:
Merrill Lynch South Africa (Pty) Ltd
For further information, please contact:
Lindiwe Montshiwagae - Head: Investor relations
Tel: +27 (0) 10 590 4510
Email: lindiwe@bafokengplatinum.co.za




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Date: 14/04/2016 09:03:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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