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Audited Annual Financial Results for the year ended 31 December 2020 – Short Form Announcement
ROYAL BAFOKENG PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2008/015696/06)
JSE share code: RBP ISIN: ZAE000149936
JSE bond code: RBPCB ISIN: ZAE000243853
("RBPlat" or the "Company" or the “Group”)
AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020 – SHORT FORM ANNOUNCEMENT
KEY FEATURES OF OUR PERFORMANCE
Financial capital
- 278.4% increase in EBITDA to R6 646.5 million
- Basic headline earnings per share of 1 354.4 cents (2019: 50.4 cents)
- Net cash position of R1 643.2 million (2019: net debt of R491.3 million)
- Declaration of maiden dividend of 575.0 cents per share
Manufactured capital
- 3.7% increase in tonnes milled to 3 990kt
- 4.5% increase in 4E ounce production to 419koz
- 10.1% increase in cash operating cost per 4E ounce to R15 560
Human capital
- One fatal injury
- 34.5% improvement in our TIFR
- 48.6% improvement in SIFR
- R225 million paid in salaries during lockdown level 5
- 19% of our workforce is women in mining
- 67.7% of our senior management team are historically disadvantaged
Social capital
- 200-bed field hospital built to ensure medical facilities available to our employees and communities
during Covid-19
- Provided food hampers and hygiene care packages to the community during lockdown level 5
- 47.7% increase in procurement from local historically disadvantaged businesses to R2.5 billion
- R92.0 million investment in our social and labour plan (2019: R65.8 million)
Natural capital
- A– score for our voluntary disclosure to the CDP for climate change and supplier engagement rating
and a B score for our voluntary water disclosure
- Reduced the amount of potable water used in the BRPM concentrator by 626.51Ml by using water
from our treatment plant leading to a R6.4 million cost savings
- Began reporting in line with the TCFD in 2020
OPERATING AND FINANCIAL STATISTICS
Description Unit 2020 2019 % change
Revenue R’m 13 379.4 7 491.9 78.6
4E ounces produced koz 419 401 4.5
Pt ounces produced koz 272 261 4.2
Cash operating cost/tonne milled R/t 1 632 1 475 (10.6)
Cash operating cost/4E ounce R/oz 15 560 14 139 (10.1)
Capital expenditure3 R’m 1 815 1 661 (9.3)
EBITDA margin % 49.7 23.4 112.4
Earnings per share cents/ share 1 369.9 26.3 5 108.7
Headline earnings per share cents/ share 1 354.4 50.4 2 587.3
3 Total Group capital expenditure amounted to R1 873.6 million
OVERVIEW
In 2020 we commemorated our first ten years on the JSE, but we also saw the global spread of the
Covid-19 pandemic, impacting society and all areas of business. The pandemic tested us, and
particularly, our ability to handle and address the risks to our people and our business. Previously we
highlighted the importance of achieving the second pillar of our strategy, building flexibility to
ensure sustainability. Covid-19 has undoubtedly put to the test our ability to be flexible, adapt
rapidly to situations, protect the sustainability of the business, and assist and keep safe the
communities in which we operate. A positive consequence of the Covid-19 pandemic has been the
spirit of collaboration that prevailed among our neighbours and various government departments.
We look forward to continuing with this spirit and to achieve positive outcomes for our industry and
communities. It is essential that we work together and apply global thinking to addressing this crisis
and protect our planet’s people and economies from disaster.
Sadly, despite achieving significant improvements in our total injury (TIFR), lost time (LTIFR) and
serious injury (SIFR) frequency rates, we recorded a fatal injury at our Styldrift operation. On 9
December 2020, Mr Sipho Kopedi Mokgopa lost his life in a fall of ground accident. The Board of
Directors, management as well as colleagues at RBPlat wish to extend their sincere condolences to
the family, friends and colleagues of Mr Mokgopa.
Despite the negative impact of the Covid-19 pandemic on our operations and the business as a
whole, the Group achieved record production with a year-on-year increase in tonnes hoisted of 9.2%
to 4 140kt, a 3.7% increase in tonnes milled to 3 990kt and a 4.5% increase in 4E metals in
concentrate to 419koz.
EXTERNAL AUDIT ROTATION
The Independent Regulatory Board for Auditors (IRBA) requires the mandatory rotation of audit
firms with effect from financial years commencing after 1 April 2023. PricewaterhouseCoopers
Inc.(PwC) have been our auditors since 2009 and as there is a required rotation of the current audit
partner, RBPlat decided on the early adoption of the rotation of audit firms. The Audit and Risk
Committee, after following a comprehensive formal tender process, incorporating the requisites of
the JSE Listings Requirements, has recommended the appointment of KPMG Inc (KPMG) as the
Company’s external auditor, with Mr Henning Opperman as the designated lead audit partner. The
appointment of KPMG as the new external auditor is expected to take effect from the financial year
ending 31 December 2021. This appointment will be recommended to shareholders for approval at
the annual general meeting scheduled for 9 April 2021.
DECLARATION OF DIVIDEND
The RBPlat Board is pleased to advise shareholders that the directors have approved the Company’s
maiden dividend declaration of a final gross cash dividend of 575.0 cents per ordinary share from the
profits accrued during the twelve-month period ended 31 December 2020. The dividend is declared
from retained earnings and will be subject to a dividend withholding tax of 20% for all shareholders
who are not exempt from or do not qualify for a reduced rate of withholding tax. The net dividend
payable to shareholders subject to the withholding tax rate of 20% amounts to 460.0 cents per
ordinary share. The issued share capital at the declaration date is 258 792 016 ordinary shares and
the Company’s tax number is 9512379166.
The salient dates relating to the dividend payment are as follows:
Declaration date Tuesday, 9 March 2021
Last day for trading to qualify and participate in the Monday, 29 March 2021
final dividend
Trading ex-dividend commences Tuesday, 30 March 2021
Record date Thursday, 1 April 2021
Dividend payment date Tuesday, 6 April 2021
Share certificates may not be dematerialised or rematerialised between Tuesday, 30 March 2021
and Thursday, 1 April 2021 both days inclusive. Any changes to the dividend instruction will be
announced on the JSE Stock Exchange News Service.
OUTLOOK AND COMPANY GUIDANCE
Notwithstanding the ongoing uncertainty around the Covid-19 pandemic’s current resurgence,
Group production guidance for 2021, subject to any unforeseen operational disruptions, is forecast
to increase to between 4.45Mt and 4.85Mt at a 4E built-up head grade of 3.90g/t — 3.95g/t, yielding
475koz — 525koz 4E metals in concentrate. Group cash unit costs for the year are forecast to be
between R14 200 and R15 400 per 4E ounce. Group capital expenditure for 2021, including
escalation contingencies, is forecast to be approximately R2.2 billion with the key contributors being:
- R0.4 billion for the finalisation of ancillary works on the Styldrift expansion project
- R0.6 billion for the Maseve 180ktpm MF2 and BRPM TSF upgrades
- R0.5 billion for the Styldrift replacement capital
SIB expenditure is expected to be between R0.6 billion and R0.7 billion equating to between 6% and
8% of operating expenditure.
Since we listed in 2010 the organic growth we have achieved through Styldrift and the value we
added to the business through the opportunistic purchase of Maseve and the remaining 33% of the
BRPM Joint Venture from Amplats, have positioned us well for the future.
Going forward, our focus will be on operational excellence, extracting value for our shareholders and
bondholders through the ongoing optimisation and continual improvement of our competitive
assets and continuing to deliver on our purpose of creating economic value for all our stakeholders
by delivering More than mining.
SHORT FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors. It is only a summary of the information
contained in the full announcement and does not contain full or complete details. Any investment decision
should be based on the full announcement accessible from Tuesday, 09 March 2021, via the JSE link
https://senspdf.jse.co.za/documents/2021/jse/isse/RBP/FY20Result.pdf and also available on the Company’s
website at https://www.bafokengplatinum.co.za/annual-results.php
These annual results have been audited by the Group’s auditors, PricewaterhouseCoopers Inc. who expressed
an unmodified opinion thereon. A key audit matter relating to deferred revenue is addressed in the
unmodified opinion. This audit opinion is available, along with the annual financial statements, on the
Company’s website at https://www.bafokengplatinum.co.za/integrated-reports.php.
Copies of the full announcement may also be requested by contacting Royal Bafokeng Platinum Investor
Relations by email at lindiwe@bafokengplatinum.co.za and are available for inspection at the Company’s
registered office at no charge, on weekdays during office hours. The forecast information contained in this
short form announcement has not been audited, reviewed or reported on by the Company’s auditors.
Johannesburg
09 March 2021
JSE Sponsor
Merrill Lynch South Africa Proprietary Limited
and
Debt Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
For further information, please contact:
Lindiwe Montshiwagae
Executive: Investor Relations and Corporate Communications
Tel: +27 (0)10 590 4510
Email: lindiwe@bafokengplatinum.co.za
Date: 09-03-2021 07:05:00
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