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Royal Bafokeng Platinum Limited (JSE:RBP) News - RBP quarterly review and production report for the period 1 January 2022 to 31 March 2022
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” or “the Group”)
ROYAL BAFOKENG PLATINUM LIMITED QUARTERLY REVIEW AND PRODUCTION REPORT FOR THE PERIOD 1
JANUARY 2022 TO 31 MARCH 2022 (“REPORTING PERIOD”)
OVERVIEW
- Zero fatalities with improvements in all key safety metrics
- 11.4% increase in tonnes hoisted
- 8.7% increase in tonnes milled
- 7.5% increase in 4E metals in concentrate
- 171kt ore stockpile
- 13.2% increase in cash operating cost per 4E ounce
HEALTH AND SAFETY
The safety and wellbeing of our workforce forms the basis of creating a resilient operating culture and key to achieving our
goal of zero harm. The essential key step to this is the elimination of fatal accidents and all our efforts are focused towards
this goal.
As such we continue to focus on fostering a collaborative culture not only with our employees, but external stakeholders
and the community at large to ensure we achieve improvement in all our key safety, health and environmental objectives.
No fatal accidents were recorded during the reporting period, with quarter-on-quarter improvements of 17.1%, 60.2% and
52.8% in our total injury (TIFR), lost time injury (LTIFR) and serious injury (SIFR) frequency rates respectively.
Notwithstanding the current low national Covid-19 infection and transmission rate environment, protecting the health of our
employees, their families and community continues to be a priority for the business. To date more than 90% of the
workforce has been fully vaccinated and our vaccine booster programme was initiated during the quarter.
Safety-related production losses stemming from Section 54 instructions issued to our operations during the quarter under
review are estimated at 33kt or 3.7koz (4E).
PRODUCTION
A strong operational performance from BRPM and improved Styldrift performance yielded a 11.4% increase in hoisted
tonnes for the reporting period compared to 2021. BRPM tonnes hoisted increased by 15.5% to 611kt and Styldrift by 6.8%
to 500kt.
Total tonnes milled for the reporting period increased by 8.7% year-on-year to 1 119kt with UG2 contribution increasing by
33.1% to 346kt (2021: 260kt) and Merensky contribution increasing marginally to 773kt (2021: 769kt). UG2 accounted for
31% of tonnes milled.
The built-up head grade decreased by 1.0% year-on-year to 3.79g/t (4E), with the BRPM head grade increasing by 2.1%
to 3.85g/t (4E) and the Styldrift head grade reducing by 4.6% to 3.72g/t (4E). The reduction in head grade is attributable
to increased dilution currently being experienced in the Styldrift Merensky reef mining sections.
Milled volumes, built-up head grade and associated recoveries resulted in 6E and 4E metals in concentrate increasing by
7.7% and 7.5% respectively to 124.4koz and 110.6koz compared to the 2021 reporting period.
Closing surface stocks for the reporting period are estimated at 171kt, equating to a 13kt reduction in stocks from December
2021.
BRPM
Reef tonnes hoisted for the quarter amounted to 611kt (2021: 529kt), with Merensky contributing 294kt and UG2 317kt.
Tonnes milled for the reporting period increased by 14.2% to 628kt, with Merensky tonnes milled equating to 282kt and
UG2 tonnes milled 346kt UG2 (55% of tonnes milled).
The built-up head grade for the quarter was 3.85g/t (4E) compared to 3.77g/t (4E) achieved in the comparative period in
2021, equating to a 2.1% increase. The respective Merensky and UG2 4E built-up head grades for the reporting period
were 3.91g/t and 3.79g/t.
Closing surface stocks are currently estimated at 54kt, amounting to a 26kt depletion of surface stocks from December
2021.
STYLDRIFT
Reef tonnes hoisted for the reporting period increased by 6.8% to 500kt, with tonnes milled increasing by 2.5% to 491kt.
The built-up head grade decreased by 4.6% to 3.72g/t (4E) compared to 2021. The decrease in head grade is directly
attributable to higher on-reef dilution currently being experienced in the on-reef trackless development and stoping sections
as they negotiate known localised geological structures and facies changes. The built-up head grade is expected to
improve to around 3.90g/t as sections re-establish through these areas during the second quarter.
Securing ongoing improvements in operating efficiency and optimal utilisation of installed infrastructure through the
business improvement programme initiated during 2021 remains the key operational focus to ensure steady state
production levels are achieved in 2022.
An additional 13kt of surface stocks were accrued during the quarter with closing surface stocks estimated at 117kt.
CONCENTRATING
Total tonnes milled for the reporting period increased by 90kt or 8.7% to 1 119kt compared to the corresponding 2021
period. The BRPM concentrator treated 603kt, the Maseve concentrator treated 406kt, and 110kt UG2 ore was toll treated.
Overall concentrator recovery reduced by 0.2% to 80.93% in line with the reduction in built-up head grade, variations in
ore mix, increased contributions from lower recovery potential Maseve MF1 and toll treatment circuits. The completion of
the MF2 upgrade to the Maseve concentrator, during the second quarter, will bring about an increase in recoveries.
The increase in milled volumes, lower built-up head grade and reduction in recoveries achieved during the quarter, yielded
6E and 4E metals in concentrate increases of 7.7% and 7.5% to 124.4koz and 110.6koz, respectively.
BRPM 6E and 4E metals in concentrate production increased by 16.6% and 16.3% to 71.1koz and 62.7koz respectively.
Styldrift 6E and 4E metals in concentrate both decreased by 2.2% to 53.3koz and 47.9koz, respectively.
CASH OPERATING COSTS
Total cash operating costs increased by 21.7% to R2 022 million for the reporting period compared to 2021. The increase
in expenditure is attributable to increased production and industry-related inflation. Overall unit cash cost per tonne milled
and 4E ounce increased by 12.0% and 13.2% to R1 807 (2021: R1 614) and R18 282 (2021: R16 151) respectively.
BRPM cash operating costs increased by 22.7% to R1 012 million (2021: R825 million) in line with the increase in volumes
and inflation related increases for labour, utilities and stores. Unit cash cost per tonne milled and 4E ounce increased by
7.5% and 5.4% to R1 611 (2021: R1 499) and R16 140 (2021: R15 318) respectively.
Styldrift cash operating costs increased by 20.7% to R1 010 million (2021: R837 million), in line with volumes and on-mine
inflation related increases for labour, utilities and stores. The increase in surface stocks, continued high trackless fleet
maintenance costs and lower grade has resulted in unit operating cost increases per tonne milled and 4E ounce of 17.8%
and 23.6% to R2 057 (2021: R1 746) and R21 086 (2021: R17 066) respectively.
CAPITAL
Total capital expenditure for the quarter increased by 4.2% to R335.1 million compared to the comparative 2021 period.
Expansion capital expenditure reduced by 43.4% to R66.0 million in line with project progress at the Maseve concentrator
MF2 upgrade, the BRPM tailings storage facility expansion and Styldrift. Replacement capital expenditure for the quarter
reduced by 2.6% to R137.3 million compared to 2021.
SIB capital expenditure increased by R67.7 million to R131.8 million in line with planned BRPM UG2 ore reserve
development as well as Styldrift’s trackless rebuild and strike conveyor extension requirements. SIB expenditure for the
reporting period equated to 6.5% of cash operating costs.
FINANCIAL POSITION
As at 31 March 2022, the Company was in a net cash position of R6 508 million, compared to a net cash position of
R4 898 million as at 31 December 2021. This was before the payment of the 2021 final dividend of approximately R1 500
million. At the end of the reporting period and in addition to the R6 508 million cash on hand, RBPlat had approximately
R3 000 million of debt facilities available.
Quarter 1 2022
Unaudited quarter Unaudited quarter
Description Unit vs. Quarter 1
ended 31 March 2022 ended 31 March 2021
2021 % Change
Safety
TIFR (/1 000 000 hrs) rate 7.02 8.47 17.1
SIFR (/1 000 000 hrs) rate 0.17 0.36 52.8
LTIFR (/1 000 000 hrs) rate 0.86 2.16 60.2
Production
Total tonnes hoisted kt 1 112 998 11.4
BRPM kt 611 529 15.5
Styldrift kt 500 468 6.8
Total tonnes delivered kt 1 131 1 023 10.6
BRPM kt 635 541 17.4
Styldrift kt 496 482 2.9
Total tonnes milled kt 1 119 1 029 8.7
BRPM kt 628 550 14.2
Styldrift kt 491 479 2.5
Merensky kt 773 769 0.5
UG2 kt 346 260 33.1
% UG2 of total tonnes milled % 31 25 24.0
BRPM concentrator kt 603 593 1.7
Maseve concentrator kt 406 338 20.1
Toll kt 110 98 12.2
Closing surface stocks kt 171 126 35.7
BRPM kt 54 71 (23.9)
Styldrift kt 117 55 112.7
4E built-up head grade g/t 3.79 3.83 (1.0)
BRPM g/t 3.85 3.77 2.1
Styldrift g/t 3.72 3.90 (4.6)
Merensky g/t 3.79 3.87 (2.1)
UG2 g/t 3.79 3.71 2.2
Concentrator recovery (4E) % 80.93 81.11 (0.2)
BRPM concentrator % 81.07 82.90 (2.2)
Maseve concentrator % 80.81 78.75 2.6
Toll % 78.96 80.66 (2.1)
Metals in concentrate produced
Total
6E ounces koz 124.4 115.5 7.7
4E ounces koz 110.6 102.9 7.5
Platinum koz 71.2 66.3 7.4
Palladium koz 29.5 27.5 7.3
Rhodium koz 7.0 6.3 11.1
Gold koz 2.9 2.8 3.6
Iridium koz 2.3 2.1 9.5
Ruthenium koz 11.5 10.5 9.5
Nickel kt 0.606 0.613 (1.1)
Copper kt 0.378 0.430 (12.1)
Quarter 1 2022
Unaudited quarter Unaudited quarter
Description Unit vs. Quarter 1
ended 31 March 2022 ended 31 March 2021
2021 % Change
BRPM
6E ounces koz 71.1 61.0 16.6
4E ounces koz 62.7 53.9 16.3
Platinum koz 39.9 34.2 16.7
Palladium koz 16.7 14.5 15.2
Rhodium koz 4.9 4.1 19.5
Gold koz 1.2 1.1 9.1
Iridium koz 1.4 1.2 16.7
Ruthenium koz 7.0 5.9 18.6
Nickel kt 0.220 0.226 (2.7)
Copper kt 0.143 0.191 (25.1)
Styldrift
6E ounces koz 53.3 54.5 (2.2)
4E ounces koz 47.9 49.0 (2.2)
Platinum koz 31.3 32.1 (2.5)
Palladium koz 12.8 13.0 (1.5)
Rhodium koz 2.1 2.2 (4.5)
Gold koz 1.7 1.7 0.0
Iridium koz 0.9 0.9 0.0
Ruthenium koz 4.5 4.6 (2.2)
Nickel kt 0.386 0.387 (0.3)
Copper kt 0.235 0.239 (1.7)
Cash operating costs*
Total cash operating costs R’m 2 022 1 662 (21.7)
BRPM R’m 1 012 825 (22.7)
Styldrift R’m 1 010 837 (20.7)
Total cash operating cost / tonne milled R/t 1 807 1 614 (12.0)
BRPM R/t 1 611 1 499 (7.5)
Styldrift R/t 2 057 1 746 (17.8)
Total cash operating cost / 6E ounce R/oz 16 254 14 390 (13.0)
BRPM R/oz 14 233 13 525 (5.2)
Styldrift R/oz 18 949 15 358 (23.4)
Total cash operating cost / 4E ounce R/oz 18 282 16 151 (13.2)
BRPM R/oz 16 140 15 318 (5.4)
Styldrift R/oz 21 086 17 066 (23.6)
Total cash operating cost / Pt ounce R/oz 28 399 25 059 (13.3)
BRPM R/oz 25 363 24 121 (5.1)
Styldrift R/oz 32 268 26 058 (23.8)
Capital expenditure
Total capital R'm 335.1 321.7 (4.2)
Expansion R'm 66.0 116.7 43.4
Replacement R'm 137.3 140.9 2.6
Stay-in-business (SIB) R'm 131.8 64.1 (105.6)
BRPM R'm 34.6 14.9 (132.2)
Styldrift R'm 92.5 45.7 (102.4)
Maseve R'm 0.1 - (100.0)
Concentrators R'm 4.6 3.5 (31.4)
BRPM SIB as a % of operating cost % 3.4 1.8 (88.9)
Styldrift SIB as a % of operating cost % 9.2 5.5 (67.3)
* Please note any difference in totals in this table is due to rounding
The information set out in this announcement has not been reviewed or reported on by the Company’s external auditors.
Johannesburg
25 April 2022
JSE Sponsor:
Merrill Lynch South Africa Proprietary Limited t/a BoFA Securities
For further information, please contact:
Thandeka Mthembu
Manager: Investor Relations
Tel: +27 (0) 10 590 4510
Email: thandekam@bafokengplatinum.co.za
Date: 25-04-2022 09:45:00
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