South Africa: On the Podium - RBPlat Becomes Latest Platinum Producer to Yield Record Results

analysis

Royal Bafokeng Platinum, a black-owned and mid-tier producer, unveiled record interim results on Tuesday. RBPlat's earnings surge comes in the wake of Anglo American Platinum's (Amplats) record results, a trend expected to be repeated by other miners in this space, such as Sibanye-Stillwater.

Olympic athletes are going for gold, but prices for platinum group metals (PGMs) are leading to some corporate podium performances.

Royal Bafokeng Platinum (RBPlat) on Tuesday posted a record set of interim results, unveiling earnings that have been vaulted skyward by soaring PGM prices, notably for rhodium and palladium -- key catalysts in petrol engines.

"The performance supported further capital returns to its shareholders, with a declaration of a R1.5-billion interim dividend in addition to the R482.3-million buy-back and redemption of a portion of its convertible bonds," the company said in a statement.

By any measure, the company made buckets of cash. Earnings before interest, taxes, depreciation and amortisation (Ebitda) reached almost R5.5-billion compared with almost R2.1-billion in the first six months of 2020. Headline earnings shot up by 465% to R4.87-billion.

RBPlat's assets are the only known deposits of significance that are both shallow and high-grade -- factors that cut costs and lift profits -- on...

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