AFRICANGLOBE – Royal Bafokeng Platinum (RBPlat) on Monday said its interim earnings soared on the back of weaker South African currency.
JSE-listed platinum miner said headline earnings a share surged 103 percent from 43 cents to 87.2 cents in the six months ended June this year.
According to Reuters, mining companies gain from a shakier South African currency as they pay for costs in rands and sell output in dollars.
RBPlat is owned and controlled by Black people belonging to the Bafokeng nation in South Africa’s Rustenburg area.
It is a mid-tier platinum group metals (PGMs) miner.
It came into existence after a partnership of mining businesses (RBPlat) and a huge development project, Styldrift.
RBPlat shareholding consists of 57 percent and 13 percent by Royal Bafokeng Holdings (RBH), the RBPlat’s parent company, and Anglo American Platinum (Amplats).
Steve Phiri, the CEO of RBPlat, said during the period under review the company amplified its cash position by R88.4 million ($9 million). This was after the company was involved in a capital outlay of R446 million ($45.3 million).
The firm’s balance sheet during the period under review stayed unguarded with “cash and near-cash investments” of R992 million($100.8 million), according to Mining News.
The firm said Nedbank’s R500 million ($50.7 million) credit line was also amplified to R1 billion ($101.6 million) in July. The company’s working capital surged from R258 million to R458 million, Mining News reported.
By: Mzwandile Jacks