Royal Bafokeng Platinum (RBPlat) anticipates significant losses per share (LPS) and headline losses per share (HLPS) for the six months to 30 June 2015 as a result of typical South African mining—related challenges.
The LPS and HLPS loss for the period is expected to be between R0.52 and R0.69 (between negative 144.8% and 159.5%), compared to an earnings per share (EPS) and headline earnings per share (HEPS) of R1.16 cents for the previous corresponding period (the six months ended 30 June 2014).
The expected decrease from an EPS and HEPS in 2014 to the LPS and HLPS in 2015 is primarily attributable to the following:
- A lower realised revenue basket price;
- The impact of a once-off current and deferred tax charge related to the settlement of a taxation dispute with SARS relating to the tax assessments for the 2008, 2009 and 2010 tax years;
- Reduced ounce production due to on-going and intermittent safety stoppages following the fatality during the first quarter resulting in a higher proportion of lower grade UG2 reef mining and reduced Merensky reef production;
- Reduced concentrator plant availability and output due to recurrent stoppages related to the increased frequency of Eskom load curtailments together with more unscheduled maintenance and repairs; and
- Cost increases primarily attributable to the front-end loaded nature of wage increases in terms of the 5-year wage agreement combined with above inflationary utility cost increases.