Wrap Text
Quarterly Review and Production Report for the Period 1 July to 30 September 2019 and Styldrift Progress Update
ROYAL BAFOKENG PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2008/015696/06)
JSE share code: RBP
ISIN: ZAE000149936
Company code: RBPD
Bond code: RBPCB
ISIN: ZAE000243853
(“RBPlat” or “the Company” or “the Group”)
ROYAL BAFOKENG PLATINUM LIMITED QUARTERLY REVIEW AND PRODUCTION REPORT FOR THE PERIOD
1 JULY TO 30 SEPTEMBER 2019 (“REPORTING PERIOD”) AND STYLDRIFT PROGRESS UPDATE
STYLDRIFT ON TRACK TO MEET Q3 2020 RAMP-UP HOWEVER BRPM PERFORMANCE DISAPPOINTS
OVERVIEW
- Zero fatalities with double digit improvements being recorded in our LTIFR and SIFR
- 9.2% increase in tonnes delivered to concentrators
> 21.3% increase in Styldrift delivered tonnes
> 1.5% increase in BRPM delivered tonnes
- 2.1% increase in tonnes milled
- 2.1% and 1.8% respective reduction in platinum and 4E metals in concentrate
- BRPM cost per 4E ounce increased by 15.1% year to date
- 60.1% reduction in capital expenditure as Styldrift project activity nears completion and becomes
commercially operational as of January 2019
SAFETY
In line with our aspiration of zero harm we are pleased to report that no fatal accidents were recorded during the reporting
period and that our lost time injury frequency rate (LTIFR) and serious injury frequency rate (SIFR) improved by 33.4%
and 32.2% respectively, compared to the third quarter of 2018. For the year to date our LTIFR and SIFR reflect a 26.1%
and 38.6% improvement respectively, compared to the corresponding 2018 reporting period.
Our safety, health and environmental strategy remains firmly based on the principle of continuous improvement and the
vision of achieving zero harm through the establishment of a resilient safety culture, underpinned by a strict safety code
of conduct, discipline and teamwork.
Production losses resulting from safety-related stoppages for the quarter amounted to 23kt tonnes milled or 2.7koz (4E).
PRODUCTION
Total tonnes delivered to concentrators for the reporting period increased 9.2% to 1 025kt whilst total tonnes milled
increased by 2.1% to 1 002kt. Year to date total tonnes delivered and total tonnes milled amounted to 2 860kt and
2 871kt representing a 16.4% and 14.4% respective increase compared to the comparative 2018 reporting period.
A disposal of concentrate agreement pipeline adjustment accrued for the production months of May, June and July was
affected during the reporting period which resulted in an artificial lowering of the built-up head grade by 1.8%.
BRPM
Total tonnes milled for the reporting period reduced by 5.1% to 580kt and 2.4% to 1 692kt for the year to date when
compared to 2018.
Merensky tonnes milled for the quarter and year to date reduced by 91kt (18.0%) and 145kt (10.3%) respectively,
compared to the respective periods in 2018. The reduction in Merensky volumes is attributable to the combined impact
of Merensky reserve depletion at South shaft and lower than expected operational performance at both North and South
shafts during the third quarter. The quarterly operational performance was impacted by increased geotechnical
complexities associated with accessing and mining of “white areas” at South shaft and localised geology encountered
at North shaft Phase III.
Ramping up of UG2 production at our South shaft operation continued during the quarter in line with achieving our stated
output of 20ktpm by the fourth quarter of 2019, with 51kt South shaft UG2 being milled during the quarter. Total UG2
tonnes milled for the quarter amounted to 166kt, representing a 56.6% increase compared to 2018. For the year to date
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UG2 tonnes milled increased by 32.4% to 425kt compared to 2018. UG2 volumes constituted 28.6% of total tonnes
milled for the quarter and 25.1% for the year to date.
The built-up head grade for the year to date is 4.02g/t (4E) compared to 4.16g/t (4E) achieved in the comparative period
in 2018, equating to a 3.4% reduction. The reduction in head grade is mainly attributable to the increase in lower grade
South shaft UG2 contribution, variability in ore mix and resource area dependant grade fluctuations.
STYLDRIFT
We are encouraged by the improvement achieved in key operating metrics during the third quarter and remain confident
that the strategies and action plans initiated to address operational challenges identified to date are delivering the
intended results in support of the 230ktpm third quarter of 2020 milestone.
A total of 432kt of ore was delivered to the concentrators for the quarter, equating to a 21.3% increase against the
comparative 2018 period. This represents a 16.8% improvement in tonnes per month delivered compared to the average
of 123ktpm achieved during the first half of 2019. Tonnes milled for the quarter increased by 14.1% to 422kt, with year
to date milled volumes increasing by 51.9% to 1 179kt.
The built-up head grade at Styldrift continues to improve as the stoping tonnage contribution to overall tonnes delivered
increases in line with the ramp-up profile. The quarter on quarter and year to date built-up head grades improved by
8.9% to 3.66g/t (4E) and 11.9% to 3.76g/t (4E) respectively.
Operationally the focus remains on achieving improvements in operational efficiency through improved trackless mobile
machine availability, minimising in-stope face to tip distances and artisan/operator upskilling programmes.
CONCENTRATING
Total tonnes milled for the reporting period amounted to 1 002kt, representing a 2.1% increase compared to the
corresponding 2018 period with increased mining volumes from Styldrift offsetting the lower BRPM volumes. Merensky
and UG2 tonnes milled were 837kt and 166kt respectively, with UG2 equating to 17% of total milled volumes. The BRPM
concentrator treated 719kt, of which 54kt was UG2 and the Maseve concentrator treated 284kt, of which 112kt was
UG2.
The combined built-up head grade for the year to date remains unchanged at 3.91g/t (4E) compared to 2018. The
quarter on quarter built-up head grade reduced by 1.8% to 3.78g/t (4E) as a result of changes in ore mix, specifically at
BRPM due to the increase in lower grade South shaft UG2 material and the negative ounce adjustment incurred during
the quarter.
The lower recovery potential of the Maseve MF1 circuit and variations in ore mix has impacted on overall recoveries,
with recoveries reducing by 2.2% and 1.9% for the quarter and year to date respectively, compared to 2018.
The combined impact of the lower recoveries, 2.1% increase in milled volumes and a negative metal in concentrate
adjustment accrued during the reporting period yielded a 1.8% and 2.0% quarter on quarter reduction in 4E and platinum
metal in concentrate compared to 2018. Platinum and 4E metal production amounted to 65.3koz and 100.6koz,
respectively.
Year to date platinum and 4E metal in concentrate production increased by 12.4% and 12.2% to 194.5koz and 299.7koz
respectively compared to the respective periods in 2018.
CASH OPERATING COSTS
With Styldrift reaching commercial operating status in January 2019, cash operating costs for the quarter and year to
date increased by 98.8% and 97.1% to R1 513 million and R4 144 million respectively, compared to the comparative
2018 reporting periods.
BRPM operating cash costs for the quarter increased 6.8% to R813 million in line with on-mine inflation related increases
for labour, utilities and stores. Lower milled tonnes, 4E and platinum production volumes of 5.1%, 13.5% and 14.2%
yielded unit operating cost increases per tonne milled, 4E ounce and platinum ounce of 12.6%, 23.7% and 24.6% to
R1 402/t, R13 527/oz and R21 008/oz, respectively. The increase in unit costs are mainly attributed to the
recommencement of mining UG2 at South shaft. This will extend BRPM’s life of mine whilst providing a shift to attractive
UG2 basket pricing with increased exposure to palladium and rhodium.
For the year to date BRPM unit costs per tonne milled, 4E ounce and platinum ounce are R1 327/t, R12 221/oz and
R18 897/oz, equating to a 9.4%, 15.1% and 15.2% increase respectively, year on year.
Styldrift cash costs for the reporting period amounted to R700 million, yielding unit operating cost per tonne milled, 4E
ounce and platinum ounce of R1 659/t, R17 284/oz and R26 316/oz respectively.
With Styldrift currently in ramp-up and BRPM entering a UG2 transition phase, overall RBPlat unit costs do not reflect
the efficiency benefits expected to be accrued from our Styldrift operation at steady state and an optimised lower grade
BRPM mine.
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CAPITAL
Total capital expenditure for the reporting period decreased by 60.1% or R568.1 million to R377.7 million as Styldrift
project activity nears completion and previously capitalised operating costs relating to the Styldrift project are now being
expensed.
Replacement capital expenditure decreased by R10.8 million and R25.5 million for the quarter and year to date when
compared to 2018 in line with the completion of the North shaft Phase III Merensky project scope of work. Stay-in-
business capital increased by R12.8 million or 22.4% in the quarter versus the comparable quarter in 2018, in line with
increased belt construction and trackless equipment maintenance requirements at Styldrift and BRPM Phase III.
PROJECTS
BRPM NORTH SHAFT PHASE III PROJECT (REPLACEMENT)
The mining and engineering scope of works for the project has been completed with project life cycle moving into its
close-out phase, which is expected to be completed by the first quarter of 2020. Estimated cost at completion is forecast
at R1.165 billion yielding a saving of R235 million against a budget of R1.4 billion.
STYLDRIFT PROJECT (EXPANSION)
Project focus for the quarter under review remained on infrastructure creation, commissioning of key ore handling
infrastructure and ore reserve development required to establish the operational flexibility to achieve and sustain the
230ktpm ramp-up milestone.
To this end an additional two strike sections, South 2 and North 3 were commissioned during the quarter, bringing the
total number of fully equipped, operating stoping sections to ten. 1.8km of development and the commissioning of
Ventilation shaft No.2 was also completed during the quarter. Infrastructure commissioning and associated tonnes milled
forecast remains aligned with H2 2019 guidance and remains on track to meet the 230ktpm third quarter of 2020
milestone.
Capital expenditure for the reporting period amounted to R307.4 million bringing the total capital project expenditure to
date to R12.65 billion.
Unaudited Unaudited Quarter 3 YTD Sep
Unaudited Unaudited
quarter quarter 2018 vs. 2018 vs.
YTD 30 YTD 30
Description Unit ended 30 ended 30 Quarter 3 YTD Sep
September September
September September 2019 % 2019 %
2019 2018
2019 2018 Change Change
Safety
TIFR (/1000,000 hrs) rate 10.78 9.66 (11.6) 9.48 9.83 3.6
LTIFR (/1000,000 hrs) rate 2.01 3.02 33.4 2.07 2.80 26.1
SIFR (/1000,000 hrs) rate 1.64 2.42 32.2 1.32 2.15 38.6
Production
Tonnes delivered to concentrators kt 1 025 939 9.2 2 860 2 456 16.4
BRPM kt 592 583 1.5 1 688 1 697 (0.5)
Styldrift kt 432 356 21.3 1 172 759 54.4
Total tonnes milled kt 1 002 981 2.1 2 871 2 510 14.4
BRPM kt 580 611 (5.1) 1 692 1 734 (2.4)
Styldrift kt 422 370 14.1 1 179 776 51.9
Merensky kt 837 875 (4.3) 2 447 2 188 11.8
UG2 kt 166 106 56.6 425 321 32.4
% UG2 of total tonnes milled % 17 11 54.5 15 13 15.4
4E built-up head grade g/t 3.78 3.85 (1.8) 3.91 3.911 -
BRPM g/t 3.86 4.14 (6.8) 4.02 4.16 (3.4)
Styldrift g/t 3.66 3.36 8.9 3.76 3.36 11.9
Merensky g/t 3.79 3.83 (1.0) 3.92 3.89 0.8
UG2 g/t 3.70 4.04 (8.4) 3.86 4.06 (4.9)
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Unaudited Unaudited Quarter 3 YTD Sep
Unaudited Unaudited
quarter quarter 2018 vs. 2018 vs.
YTD 30 YTD 30
Description Unit ended 30 ended 30 Quarter 3 YTD Sep
September September
September September 2019 % 2019 %
2019 2018
2019 2018 Change Change
Concentrator recovery (4E) % 82.66 84.50 (2.2) 82.95 84.57 (1.9)
BRPM % 83.89 85.24 (1.6) 84.18 85.04 (1.0)
Maseve % 79.51 81.40 (2.3) 80.00 81.40 (1.7)
2
Metals in concentrate produced
RBPlat
4E koz 100.6 102.4 (1.8) 299.7 267.0 12.2
Platinum koz 65.3 66.6 (2.0) 194.5 173.1 12.4
Palladium koz 26.7 27.1 (1.5) 79.8 71.0 12.4
Rhodium koz 5.5 5.5 - 16.3 14.6 11.6
Gold koz 3.1 3.2 (3.1) 9.1 8.3 9.6
Iridium koz 1.8 1.8 - 5.3 4.8 10.4
Ruthenium koz 9.4 9.31 1.1 27.4 24.9 10.0
Nickel kt 0.707 0.681 3.8 2.019 1.773 13.9
Copper kt 0.438 0.430 1.9 1.245 1.111 12.1
BRPM
4E koz 60.1 69.5 (13.5) 183.7 197.9 (7.2)
Platinum koz 38.7 45.1 (14.2) 118.8 128.1 (7.3)
Palladium koz 16.0 18.4 (13.0) 49.0 52.6 (6.8)
Rhodium koz 3.7 3.9 (5.1) 10.4 11.2 (7.1)
Gold koz 1.6 2.1 (23.8) 5.5 6.0 (8.3)
Iridium koz 1.0 1.3 (23.1) 3.0 3.7 (18.9)
Ruthenium koz 5.5 6.7 (17.9) 16.5 19.1 (13.6)
Nickel kt 0.401 0.421 (4.8) 1.183 1.208 (2.1)
Copper kt 0.280 0.273 2.6 0.814 0.776 4.9
Styldrift
4E koz 40.5 32.9 23.1 116.0 69.1 67.9
Platinum koz 26.6 21.5 23.7 75.7 45.0 68.2
Palladium koz 10.7 8.7 23.0 30.8 18.4 67.4
Rhodium koz 1.8 1.6 12.5 5.9 3.4 73.5
Gold koz 1.5 1.1 36.4 3.7 2.3 60.9
Iridium koz 0.8 0.5 60.0 2.2 1.1 100.0
Ruthenium koz 3.9 2.61 50.0 10.9 5.8 87.9
Nickel kt 0.307 0.260 18.1 0.836 0.565 48.0
Copper kt 0.159 0.157 1.3 0.431 0.335 28.7
Cash operating costs
RBPlat cash operating cost R’m 1 513 761 (98.8) 4 144 2 103 (97.1)
BRPM R’m 813 761 (6.8) 2 245 2 103 (6.8)
Styldrift R’m 700 - - 1 899 - -
RBPlat cash operating cost / tonne milled R/t 1 510 1 245 (21.3) 1 443 1 213 (19.0)
BRPM R/t 1 402 1 245 (12.6) 1 327 1 213 (9.4)
Styldrift R/t 1 659 - - 1 611 - (100)
RBPlat cash operating cost / 4E ounce R/oz 15 040 10 939 (37.5) 13 827 10 622 (30.2)
BRPM R/oz 13 527 10 939 (23.7) 12 221 10 622 (15.1)
Styldrift R/oz 17 284 - (100) 16 371 - -
RBPlat cash operating cost / Pt ounce R/oz 23 170 16 864 (37.4) 21 306 16 407 (29.9)
BRPM R/oz 21 008 16 864 (24.6) 18 897 16 407 (15.2)
Styldrift R/oz 26 316 - - 25 086 - -
Page 4 of 5
Unaudited Unaudited Quarter 3 YTD Sep
Unaudited Unaudited
quarter quarter 2018 vs. 2018 vs.
YTD 30 YTD 30
Description Unit ended 30 ended 30 Quarter 3 YTD Sep
September September
September September 2019 % 2019 %
2019 2018
2019 2018 Change Change
Capital expenditure
Total capital R'm 377.7 945.8 60.1 998.5 2 325.9 57.1
Expansion R'm 307.4 877.5 65.0 868.8 2 179.6 60.1
Replacement R'm 0.3 11.1 97.3 6.5 32.0 79.7
Stay-in-business (SIB) R'm 70.0 57.2 (22.4) 123.1 114.3 (7.7)
BRPM R'm 23.6 20.7 (14.0) 54.7 49.1 (11.4)
Styldrift R'm 40.5 25.0 (62.0) 60.2 39.8 (51.3)
Maseve R'm - 0.5 100.0 - 0.5 100.0
Concentrators R'm 5.9 11.0 46.4 8.3 24.9 66.7
BRPM SIB as % of operating cost % 2.9 2.7 (7.4) 2.4 2.3 (4.3)
Styldrift SIB as % of operating cost % 5.8 - - 3.2 - -
1
The 2018 number has been restated due to a misstatement in the 2018 third quarter quarterly review and production report
2
Please note any difference in totals in this table is due to rounding
The information set out in this announcement has not been reviewed and reported on by the Company’s external
auditors.
Johannesburg
16 October 2019
JSE Sponsor:
Merrill Lynch South Africa (Pty) Ltd
For further information, please contact:
Investors:
Lindiwe Montshiwagae
Executive: Investor Relations
+27 (0) 10 590 4510
lindiwe@bafokengplatinum.co.za
Media:
Mpueleng Pooe
Executive: Corporate Affairs
+27 (0) 10 590 4515
mpueleng@bafokengplatinum.co.za
Page 5 of 5
Date: 16/10/2019 11:11:00
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