Wrap Text
Audited annual results for the year ended 31 December 2018
ROYAL BAFOKENG PLATINUM LIMITED
Incorporated in the Republic of South Africa
Registration number: 2008/015696/06
Share code: RBP
ISIN: ZAE000149936
Bond code: RBPCB
ISIN: ZAE000243853
("RBPlat" or "the Company")
Audited annual results for the year ended 31 December 2018
PERFORMANCE
ACHIEVEMENTS
- 3 000 000 fatality-free shifts at RBPlat
- 1 000 000 fatality-free shifts at Styldrift Mine. Styldrift has remained fatality free since 2016
- Achieving the Styldrift Mine milestone of 150ktpm
- Concluded the Maseve transaction and commissioned the concentrator
- Acquisition of Amplats' 33% interest in BRPM JV on 11 December 2018
- 12.2% increase in 4E metals in concentrate
- 4.7% year-on-year increase in cash operating cost per platinum ounce in line with CPI
CHALLENGES
- Achieving zero harm
IMPROVEMENTS
- 13.2% increase in total tonnes milled year-on-year
- 1.0% reduction in cash operating costs year-on-year, in line with above CPI-related
increases in labour and utility costs and lower BRPM volumes
- 7.7% increase in cash generated by operations to R665.9 million (2017: R618.4 million)
- 25.8% improvement in normalised headline earnings
TRADE-OFFS FOR GROWTH
- Net debt* position of R832.4 million (2017: R1.3 billion net cash)
- Cash position of R883.5 million (2017: R1 333.1 million)
DISAPPOINTMENTS
- Two fatalities in our operations
* Calculated as bank debt less cash and cash equivalents
COMMENTARY
OVERVIEW
2018 was a transformative year for RBPlat during which we delivered on our strategic objectives of pursuing
value-enhancing opportunities and organic growth when we:
- completed the acquisition of Maseve, which gave us an additional 110ktpm of concentrating capacity, which can
be increased to 160ktpm-200ktpm
- became the sole owners of our operations when we acquired the 33% participating interest Anglo American Platinum
Limited (Amplats) held in the BRPM Joint Venture (BRPM JV) through its wholly owned subsidiary Rustenburg Platinum
Mines Limited (RPM). The transaction was effective from 11 December 2018.
- achieved the 150ktpm milestone at Styldrift Mine in October 2018.
While we achieved an improvement in our lost time injury frequency rate (LTIFR) and total injury frequency rate (TIFR)
in 2018, the two fatal accidents we had in our operations during the year were a great disappointment. Mr Venizelos
Alfeu was fatally injured on 24 July in a scraper winch-related accident at BRPM South shaft, while Mr Fallang Lenyatsa
was fatally injured in a fall of ground accident on 11 September at BRPM North shaft. The Board of Directors, management
as well as colleagues at RBPlat wish to extend their sincere condolences to the families and friends of Mr Alfeu and
Mr Lenyatsa.
FINANCIAL CAPITAL
Our rapid response to tough market conditions in 2017 to protect value, and the improvement in market conditions from
the second half of 2018, resulted in a 25.8% increase in our normalised headline earnings year-on-year to R166.5 million
(2017: R132.4 million). Headline earnings, however, decreased 54.2% to R49.8 million in 2018 (2017: R108.8 million).
Earnings per share (EPS) were negatively impacted by:
- R25.9 million relating to the scrapping of feasibility study costs previously capitalised. These costs were in respect
of the 100ktpm concentrator plant originally envisaged to handle the output from the Styldrift Mine as an addition to
the BRPM concentrator
- R40.8 million in care and maintenance costs on the newly acquired Maseve concentrator and mine.
EPS for the year ended 31 December 2018 was 78.1 cents compared to a loss per share of 390.6 cents for the year ended
31 December 2017. Headline earnings per share amounted to 25.0 cents (2017: 56.4 cents), a 55.7% decline year-on-year.
In line with 2017, our earnings only reflect BRPM's contribution to earnings. The earnings from Styldrift Mine, which
achieved commercial production during the fourth quarter of 2018, will be included in our operating profit from
1 January 2019.
The main contributor to the 3.7% increase in our revenue to R3 627.1 million in 2018 (2017: R3 498.5 million) was a
9.7% higher realised average rand basket price per platinum ounce of R21 005.8 (2017: R19 155.7), offset by a 5.5%
reduction in BRPM's platinum production in 2018. Despite the reduction in BRPM's production, our overall platinum ounce
production increased 12.7% year-on-year with the inclusion of Styldrift's on-reef development. Palladium and rhodium
contributed 36.2% to the revenue we earned from our operations in 2018, an increase of 6.5% year-on-year and platinum
contributed 46.4%.
The ramp up of Styldrift Mine to 150ktpm during October 2018 resulted in a 148.4% increase in Styldrift's on-reef
revenue year-on-year to R1 420.3 million (2017: R571.8 million), which was credited against capital expenditure on
the project.
Our total cost of sales increased by 4.1% year-on-year to R3 317.2 million (2017: R3 186.5 million), which is below
inflation. The restructuring RBPlat undertook in 2017, together with other cost saving initiatives, has continued to
deliver cost saving benefits, which resulted in a 2.2% reduction year-on-year in the fixed component of our cash costs
to 69.6% (2017: 71.8%).
Other income decreased by R26.5 million, or 17.6% year-on-year. This was mainly as a result of the once-off inclusion
of R19.5 million in 2017 relating to the fair value gain in the derivative liability from the date of issue of the
convertible bond on 15 March 2017 to 8 May 2017 when shareholder approval was obtained. In addition, our environmental
equity-linked deposit earned a variable loss of R2.1 million compared to a R7.8 million variable return in 2017. Income
from our royalties from Implats increased 15.0% year-on-year to R98.8 million.
The R36.5 million reduction in our finance income was mainly due to the decrease in cash on hand. A reduction in
finance costs from R52.3 million in 2017 to R26.8 million in 2018, resulting from the capitalisation of borrowing costs
amounting to R186.7 million (2017: R58.7 million) in line with the provision of IAS 23 regarding borrowing costs, offset
the reduction in finance income.
The RBPlat Group had cash and near cash investments of R883.5 million at year-end (2017: R1 333.1 million). This cash
balance includes restricted cash of R67.6 million ring-fenced for our Employee Home Ownership Scheme and R84.0 million
earmarked for the payment of the convertible bond coupon. Despite a 95.0% increase year-on-year in the Group's capital
expenditure (including the Maseve acquisition) to R4 168.9 million (2017: R2 138.3 million) RBPlat was able to fund 37.3%
(2017: 50.0%) of its capital expenditure from cash generated by its operations and Styldrift on-reef development revenue
receipts.
In April 2018 we achieved financial closure of Phase I of the Maseve acquisition, which related to the acquisition of
immovable property and the Maseve concentrator plant for US$58 million (R691.4 million). We also reached financial
closure on Phase II of the Maseve transaction, which related to the acquisition of 100% of the shares in Maseve and
shareholder claims owing by Maseve, following the Department of Mineral Resources' (DMR) approval of the section 11
transfer to RBPlat, for the rand equivalent of US$12 million (R167.1 million).
The Company announced terms for the acquisition of the remaining 33% in the BRPM JV from Amplats on 5 July 2018.
The transaction is structured in two phases:
- Phase I - the acquisition of Amplats' 33% participating interest in the BRPM JV for a consideration of
R2 177.8 million
- Phase II - acquisition of the Amplats' mining rights.
Phase I of the acquisition was funded through a combination of cash, equity and debt. RBPlat issued 9 791 823 RBPlat
shares to investors to raise R239.9 million as part settlement of the acquisition. The R314.8 million refund of
contributions made by Amplats to the joint venture during the interim period (from 5 July 2018 to the Phase I effective
date) was settled from cash and facilities on hand. The remaining deferred consideration of R1 610.1 million is due to
be paid to Amplats, either in cash or equity, in three annual instalments commencing 18 months from the closing of the
transaction, being 11 December 2018. Phase II of the transaction remains subject to approval of the DMR in terms of
section 11 of the Mineral and Petroleum Resources Development Act.
One of the conditions precedent to Phase I of the transaction was the increase in the Group's debt facilities from
R2 billion to R3 billion. The enlarged debt facilities comprise a seven-year term debt facility of R750 million
(2017: R750 million), a five-year revolving credit facility of R1 750 million (2017: R750 million) and one-year general
banking facilities of R508 million (2017: R508 million). As at 31 December 2018, RBPlat had drawn down R930 million of the
revolving credit facility and R750 million of the term debt facility. As at 31 December 2018, R119.4 million of the general
banking facilities had been used for guarantees and R65.9 million of this facility had been drawn down to finance working
capital requirements.
MANUFACTURED CAPITAL
Despite a year-on-year increase in our average basket price, the continued depressed demand and surplus in the platinum
market resulted in our 2018 operating environment remaining constrained. Our key challenges within the constraints of
relatively low platinum market prices were ensuring that BRPM continued delivering margin-bearing ounces and that we
achieved the ramp up of Styldrift to 150ktpm.
Our primary focus areas for the year were:
- improving our safety performance
- achieving below inflation increases in our unit costs
- completing the Styldrift Mine infrastructure development, construction and resourcing necessary to produce 150ktpm
- finalising the Maseve transaction and commissioning the Maseve concentrator to support the Styldrift ramp-up to
230ktpm.
While we were able to achieve improvements of 11.9% and 8.9% in our LTIFR and TIFR respectively, overall our safety
performance in 2018 was disappointing.
The completion of the Maseve transaction, which supports our growth ambitions, resulted in a meaningful change in our
operations. With the capacity of the BRPM concentrator fully utilised, the commissioning of the Maseve concentrator in
August 2018 has not only removed the constraint on Styldrift being able to ramp up to 230ktpm but has also allowed us to
continue with mining operations on the Merensky reef at our BRPM South shaft to mid-2020.
We have made significant progress in developing the Styldrift mining and infrastructure footprint to support our
ramp-up schedule and the achievement of the Phase I ramp-up milestone of 150ktpm in October, in line with the guidance for
the year under review. Capital development at Styldrift, which amounted to 7km for the year, remains aligned with project
infrastructure and ore reserve development requirements to meet our steady state ramp-up milestones. BRPM working cost
development was reduced by 7.2% year-on-year, in line with the suspension of UG2 mining activities at South shaft and
current Merensky ore reserve depletion. The BRPM IMS panel ratio of 1.92 remains above our target of 1.50.
The 10.4% decrease in BRPM stoping square metres year-on-year is also mainly attributable to the suspension of UG2
mining activities at South shaft. In 2018 Styldrift stoping square metres increased by 200%, in line with ramp-up
requirements.
Total tonnes delivered to the concentrators increased by 13.5% to 3 395kt. The suspension of South shaft UG2 mining
activities also impacted the tonnes delivered by BRPM, which decreased 6.7% year-on-year to 2 268kt. Styldrift tonnes
delivered increased by 100.9% to 1 127kt, in line with ramp-up requirements. Total tonnes milled increased year-on-year
by 13.2% to 3 420kt. Merensky tonnes milled increased by 21.6% to 2 997kt on the back of increased ramp-up volumes from
Styldrift. UG2 tonnes milled decreased by 24.1% to 423kt.
Overall, our built-up head grade increased by 0.5%, in line with expectations and guidance. BRPM's built-up head grade
increased by 1.2% to 4.21g/t (4E) from 4.16g/t (4E) in 2017 and Styldrift's built-up head grade increased by 15.4% from
2.99g/t (4E) to 3.45g/t (4E). There was a 1.5% reduction in overall recovery to 84.43%. This reduction is mainly
attributable to lower recoveries from the Maseve MF1 circuit, however, recoveries remain in line with expected grade
recovery thresholds. 4E metals in concentrate increased 12.2% to 368koz and platinum metal in concentrate increased 12.7%
to 239koz.
While DMR-related visits increased by 26.3% compared to 2017, the increase in DMR visits can be attributed to the
overall DMR strategy to enforce compliance and achieve sustainable improvements in industry safety statistics through
increased visibility at mines. Section 54 stoppage-related losses reduced by 18.1% to 59kt milled tonnes or 6.7koz 4E
compared to 2017. There were no operational disruptions due to employee or community unrest during 2018.
Operating costs
Year-on-year cash operating costs reduced by 1.0%, despite above CPI-related increases in labour (in accordance with
our five-year wage agreement), utility costs, and lower BRPM volumes. Above CPI increases in our labour, contractor
labour, utilities and sundries combined with the 6.1% reduction in BRPM milled volumes, were key drivers of the unit cost
increases. Cash operating cost per tonne milled increased by 5.6%. Cash operating cost per 4E and platinum ounce increased
by 5.3% and 4.7% respectively, year-on-year.
Capital expenditure
Total capital expenditure increased by 60.1% to R3 459 million compared to 2017. Expansion capital expenditure increased
in line with the Styldrift project construction programme and the delay in the commissioning of Silo No. 4 to
R3 213 million from R2 008 million in 2017. Replacement capital increased by R16 million in line with BRPM North shaft
Merensky Phase III construction requirements to R50 million. Stay-in-business (SIB) expenditure increased by R78 million
to R196 million, which was offset by Styldrift on-reef development revenue of R1 420 million. The key contributor to the
increase in our SIB expenditure was Styldrift SIB capital related to trackless fleet rebuilds, section belt extensions
and shaft maintenance being incurred for the first time. BRPM SIB, as a percentage of operating cost, amounted to 3.4%.
PROJECTS
North shaft Phase III
The project is currently 98.8% complete, with its entire mining scope completed and only the engineering construction
scope remaining on 15 level. The total project scope will be completed during the second half of 2019.
Project expenditure for the year was R50 million, bringing expenditure on the project to date to R1 120 million. Our
cost estimate at completion remains at R1 200 million, which would indicate a saving of approximately R200 million
against the budget of R1 409 million.
Styldrift
Establishing the infrastructure, stoping face length and operational resourcing required to reach 150ktpm was the
primary focus at Styldrift during 2018. The key infrastructure commissioned during 2018 included:
- main Eskom power supply
- Services shaft
- overland belt to the BRPM concentrator
- ventilation shaft No. 3
- 18 trackless workshops
- Silo No. 4 and associated North decline ore handling infrastructure
- Phase I of the South decline ore handling infrastructure
- six strike conveyor sections.
The initial expectation was that Styldrift would reach commercially sustainable production by the end of the first
half of 2018, and as such operating costs associated with on-reef development and stoping would be expensed during the
second half of the year. However, the delays resulting from the complex Silo No. 4 rehabilitation process resulted in
the conversion to a commercially sustainable operation only being achieved by year-end.
This delay has resulted in R1 012 million in operating costs related to on-reef development and stoping costs that
accrued during the second half of the year being capitalised, effectively increasing the Styldrift capital expenditure
required to reach 150ktpm from R10.8 billion to R11.8 billion. The net impact on an overall cash flow basis, however,
remains neutral. Incidental revenue generated from on-reef production at Styldrift amounted to R1 420 million for the
year and R2 410 million for the project to date.
Total project expansion capital expenditure for the reporting period was R3 213 million, bringing the total capital
expenditure for the project to date to R11.8 billion.
HUMAN CAPITAL
One of the key factors that influence how we achieve our strategic objectives is our commitment to keeping our people
safe and healthy. It was therefore disappointing to have not met our objective of zero harm at our operations. Sadly,
two of our BRPM employees lost their lives in fatal accidents during 2018.
Through the statistical evaluation of historical key performance data that we use to track performance, we identified
that an increase in total injuries is one of the six key metrics that represent the overall health of our business and
any increase in serious injuries is an indication that we are at risk of a fatal accident occurring in our operations.
We were, however, encouraged by RBPlat achieving 3 000 000 fatality-free shifts on 4 February 2018 and Styldrift Mine
achieving 1 000 000 fatality-free shifts on 8 September 2018. It was also encouraging that we reduced our LTIFR by 11.9%
year-on-year.
The development of safety leadership skills remains a key focus of our training. Our aim is to improve our people's
skills in the areas that we have identified as being barriers to keeping our people safe, which are leadership, design,
systems and behaviour.
We recognise that good health and wellness contributes to good performance at work. We have already met and exceeded
the December 2024 milestones to screen all our employees (enrolled and contractors) for TB between 2016 and 2018 and our
TB incidence rate reduced 17.5% year-on-year. During 2018, 657 people were placed on INH prophylaxis (2017: 455) with
the aim of reducing the development of active TB in patients with latent TB. There was a 13.3% increase in the number of
employees and contractors who agreed to be tested for HIV/Aids and our HIV prevalence rate remained relatively flat at
23.0%.
Labour stability
Labour stability continues to play an important role in our performance. We continue to maintain good employee
relations. We maintain an ongoing dialogue between management, organised labour and our employees and contractors.
SOCIAL AND RELATIONSHIP CAPITAL
The communities in which we operate are key stakeholders for whom we wish to build sustainable value, through delivering
on our SLP, enterprise and supplier development and our discretionary procurement from previously disadvantaged South
Africans, including from local communities. The communities in which we operate face major socio-economic challenges as
a result of the high rate of unemployment and the low economic growth in the country as a whole. During 2018 we
increased our investment in our SLP by 56% year-on-year to R63.2 million.
Our education support programme, implemented in our doorstep Charora Secondary School, which addresses maths and science
learning, governance, school management skills, infrastructure, safety and security, resulted in 46% of the matric
maths learners achieving a 50% and above pass and 26% of the matric science learners achieving a 50% and above pass in
2018.
NATURAL CAPITAL
Reducing our energy consumption and the related costs is in the interest of the long-term environmental and economic
sustainability of our business. We have efficiency-based reduction targets for both energy and water use in place for
BRPM and the BRPM concentrator, which come to an end in 2019 and new targets will be set. We have also set targets for
Styldrift Mine as part of our Board-approved water and energy strategies.
Both Styldrift Mine and the BRPM concentrator met their energy efficiency targets for 2018. Styldrift's energy
efficiency was a commendable 22% below target and it was able to achieve 40.4kWh per tonne hoisted, which is below its
2018 target of 51.8kWh per tonne hoisted. The BRPM concentrator achieved 45.0kWh per tonne milled, which is also below
its 2018 target of 50.0kWh per tonne milled. BRPM achieved an energy efficiency of 66.4kWh per tonne hoisted, which is
higher than the 2018 target of 58.5kWh per tonne hoisted, but in line with the 2009 baseline of 68.0kWh per tonne hoisted.
As part of our ongoing efforts to reduce our carbon intensity and improve our energy security we commenced work on a
bankable feasibility study on renewable energy. This study investigates the possibility of developing our own source of
solar renewable energy and reducing our reliance on electricity produced using fossil fuels.
798.84Ml of water was treated in our water treatment plant in 2018 resulting in RBPlat achieving a potable water cost
saving of R8.9 million for 2018. Styldrift achieved 0.11kl per tonne hoisted, below its target of 0.29kl per tonne
hoisted while BRPM and the BRPM concentrator did not meet their targets.
We achieved B scores for our voluntary disclosure for both our climate change and water submissions to the CDP in
2018, exceeding both the scores achieved by the global metals and mining sector and the Africa region as a whole.
MARKET REVIEW
Platinum
The platinum price in dollar terms fell by 15% to end 2018 at US$791/oz, reflecting a softer platinum market. However,
in rand terms prices held up relatively well, losing only 1% and finishing the year at R11 372/oz, aided by a weaker
R:US$ exchange rate. Increased platinum requirements for industrial applications helped to offset half of the combined
loss of jewellery and automotive demand in 2018.
Global platinum supply was flat year-on-year at under 8Moz in 2018. Mine production is estimated to have fallen by
0.8% to 6.1Moz. South African supply increased marginally to 4.39Moz, but a decline in output from Zimbabwe and Russia,
helped to reduce overall supply. Autocatalyst recycling grew by an estimated 5.9% to 1.4Moz owing to increased collection
in Europe, while jewellery recycling fell 11.6% following weaker demand, leaving total recycling up 10koz at 1.9Moz.
Palladium
The palladium market was structurally tight in 2018 as evidenced by metal lease rates which peaked at over 30% towards
the end of 2018. Dollar prices responded with a rise of 20% since the start of the year, ending at US$1 267/oz. For
South African mining companies, the palladium price rally was more pronounced as a weaker R:US$ exchange rate increased the
palladium price in local terms by 39% to R18 208/oz by year-end, helping to offset a weaker platinum market.
Rhodium
Rhodium prices increased by 43% during 2018 ending the year at US$2 460/oz, while rand-denominated prices rose by 66%
to R35 378/oz. Rhodium demand is more regionally spread than platinum, mirroring the sales of gasoline vehicles. Rhodium
mine supply contracted by 2.4% to 765koz but was offset by increased recycling of spent autocatalysts.
OUTLOOK
Our focus for 2019 will be on achieving our strategic objectives through maintaining earnings growth and creating
value for all our stakeholders in the short, medium and long term. In addition to normal ongoing operational challenges, our
2019 operating environment will include the complexities inherent in wage negotiations, as our current five-year wage
agreement, which we signed with the National Union of Mineworkers (NUM) on 2 July 2014 comes to an end this year in June.
There will also be elections for the NUM leadership positions at RBPlat, NUM regional elections and the country's
general elections.
Establishing a resilient safety culture remains key to achieving meaningful and sustainable improvements in our key
safety metrics and our pursuit of zero harm. In order to embed and secure the changes required to progress from our
current compliant culture we will continue focusing on:
- behavioural and leadership training
- strengthening our safety management system with regards to its monitoring, control and design environments.
Following the successful recommissioning of the Maseve concentrator and the decision to proceed with the Phase II
ramp-up to 230ktpm at Styldrift, completing the infrastructure required to support the increased production will be a key
focus for both the operational and project teams during 2019. As part of the Maseve MF2 160ktpm upgrade, various chrome
recovery circuit options are also being investigated to complement the concentrator's coprocessing capability. A technical
study to evaluate the potential of increasing the Maseve MF2 upgrade volumes to 200ktpm has also been initiated. The
study is expected to be completed by the second quarter of 2019.
Group production guidance for 2019, subject to any unforeseen operational disruptions, is forecast to increase to
between 4.0Mt and 4.4Mt at a 4E built-up head grade of 3.91g/t to 4.02g/t, yielding 450koz to 480koz 4E metals in
concentrate.
Group capital expenditure for 2019, including escalation contingencies, is forecast to be approximately R1.7 billion
with the Styldrift mining and infrastructure for the 230ktpm ramp-up footprint (R0.9 billion), the Maseve plant upgrade
(R0.2 billion) and tailings storage facility upgrades (R0.3 billion) being the main drivers. SIB expenditure is expected
to be between 5% and 6% of operating expenditure.
Another challenging year is expected for platinum in 2019. Autocatalyst demand is forecast to continue to decline as
European diesel sales contract. Meanwhile, jewellery demand is heavily dependent on China, where sales are projected to
fall steadily.
Industrial demand remains the bright spot for platinum, which is set to grow again, lifted by capacity expansions at
petroleum refineries, and higher chemical and agro-chemical production.
Platinum supply is unlikely to drop from current levels, unless it is disrupted, which should leave the market
oversupplied.
Future tightening emissions standards impacting commercial diesel vehicles in China and India in 2020 should start to
offset falling passenger car demand. In addition, there are many developments in the fuel cell market which uses
platinum, including the roll out of fuel cell-powered buses, trains and cars. The fuel cell market, while still small,
has the potential to be a major consumer of platinum in the future.
An ongoing tightness in the palladium market is expected in 2019. The palladium market will remain in structural
deficit, therefore users will be reliant on stock releases and the lease market which may push prices higher. In addition,
ETF sales, a key source of supply, might not be as forthcoming either.
Total rhodium autocatalyst demand is expected to continue growing in 2019, with China expected to lead growth after
its move to higher loadings in gasoline three-way catalysts, while demand in other regions is likely to be essentially
flat as emissions legislation is stable and vehicle sales growth is limited.
Summary consolidated statement of financial position
as at 31 December 2018
Group
2018 2017
audited audited %
Notes R (million) R (million) change
Assets
Non-current assets 21 483.9 18 448.3 16,5
Property, plant and equipment 14 661.6 11 912.2 23.1
Mineral rights 5 647.7 5 686.5 (0.7)
Environmental trust deposits and guarantees investments 227.0 164.7 37.8
Employee housing loan receivable 611.4 439.5 39.1
Employee housing benefit 226.5 163.2 38.8
Housing insurance investment 39.9 35.7 11.8
Deferred tax asset 69.8 46.5 50.1
Current assets 4 026.7 3 697.1 8.9
Employee housing benefit 16.4 11.8 39.0
Employee housing assets 774.3 579.3 33.7
Inventories 130.2 105.6 23.3
Trade and other receivables 2 222.1 1 667.1 33.3
Current tax receivable 0.2 0.2 0.0
Cash and cash equivalents 4 883.5 1 333.1 (33.7)
Total assets 25 510.6 22 145.4 15.2
Equity and liabilities
Total equity 15 729.0 14 423.9 9.0
Share capital 2.1 1.9 10.5
Share premium 10 061.0 9 643.2 4.3
Retained earnings 5 327.7 701.5 659.5
Share-based payment reserve 338.2 240.8 40.4
Non-distributable reserve - 82.5 (100.0)
Non-controlling interest 5 - 3 754.0 (100.0)
Non-current liabilities 9 025.2 5 837.7 (54.6)
Deferred tax liability 3 195.9 3 774.3 15.3
Convertible bond liability 6 986.7 932.4 (5.8)
PIC housing facility 7 1 299.6 975.0 (33.3)
Interest-bearing borrowings 8 1 650.0 - (100.0)
RPM deferred consideration 9 1 621.6 - (100.0)
Restoration, rehabilitation and other provisions 271.4 156.0 (74.0)
Current liabilities 756.4 1 883.8 59.8
Trade and other payables 677.1 544.9 (24.2)
Current tax payable 13.4 5.0 (168.0)
Current portion of interest-bearing liabilities 65.9 - (100.0)
RPM payable - 1 333.9 100.0
Total equity and liabilities 25 510.6 22 145.4 15.2
The notes below form an integral part of these consolidated annual financial statements.
Summary consolidated statement of comprehensive income
for the year ended 31 December 2018
Group
2018 2017
audited audited %
Notes R (million) R (million) change
Revenue 13 3 627.1 3 498.5 3.7
Cost of sales 14 (3 317.2) (3 186.5) (4.1)
Cost of sales excluding depreciation, amortisation
and movement in inventories (2 922.0) (2 845.7) (2.7)
Depreciation and amortisation (380.1) (361.3) (5.2)
Increase/(decrease) in inventories (15.1) 20.5 (173.7)
Gross profit 309.9 312.0 (0.7)
Other income 124.0 150.5 (17.6)
Administration expenses (284.0) (256.2) (10.9)
Corporate office (264.5) (189.4) (39.7)
Housing project 21.3 (17.8) 219.7
Restructuring costs - (49.0) 100.0
Maseve care and maintenance (40.8) - (100.0)
Gain on bargain purchase 118.3 - 100.0
Impairment of non-financial assets and scrapping of assets (26.3) (864.3) 97.0
Finance income 100.9 137.4 (26.6)
Finance cost (26.8) (52.3) 48.8
Profit/(loss) before tax 316.0 (572.9) 155.2
Income tax expense (60.5) (84.1) 28.1
Current tax expense (35.3) (31.5) (12.1)
Deferred tax expense (25.2) (52.6) 52.1
Net profit/(loss) for the year 255.5 (657.0) 138.9
Other comprehensive income - - -
Total comprehensive income/(loss) attributable to: 255.5 (657.0) 138.9
Attributable to owners of the Company 155.6 (752.7) 120.7
Attributable to non-controlling interest 99.9 95.7 4.4
Basic EPS/(LPS) (cents/share) 78.1 (390.6) 120.0
Diluted EPS/(LPS) (cents/share) 73.3 (390.6) 118.8
Basic HEPS/(HLPS) (cents/share) 25.0 56.4 (55.7)
Diluted HEPS (cents/share) 27.4 56.4 (51.4)
The notes below form an integral part of these consolidated annual financial statements.
Summary consolidated statement of changes in equity
for the year ended 31 December 2018
Attribu-
Share- Non- table to Non-
based distri- owners con-
Ordinary Share payment butable Retained of the trolling
shares premium reserve reserves earnings Company interest Total
Number R R R R R R R R
of shares (million) (million) (million) (million) (million) (million) (million) (million)
2018
Balance at
31 December 2017 192 868 841 1.9 9 643.2 240.8 82.5 701.5 10 669.9 3 754.0 14 423.9
Share-based
payment charge - - - 123.9 - - 123.9 - 123.9
2015 BSP shares vested
in April 2018 467 587 - 26.5 (26.5) - - - - -
Issue of shares 14 663 158^ 0.2 394.3 - - - 394.5 - 394.5
Costs relating to issue
of shares capitalised - - (3.0) - - - (3.0) - (3.0)
Total comprehensive
profit - - - - - 155.6 155.6 99.9 255.5
Transaction with
non-controlling
interest - - - - - 4 388.1 4 388.1 (3 853.9) 534.2
Transfer from
non-distributable
reserve - - - - (82.5) 82.5 - - -
Balance at
31 December 2018 207 999 586* 2.1 10 061.0 338.2 - 5 327.7 15 729.0 - 15 729.0
2017
Balance at
31 December 2016 192 277 990 1.9 9 400.8 216.2 82.5 1 454.2 11 155.6 3 658.3 14 813.9
Share-based payment
charge - - - 64.6 - - 64.6 - 64.6
Convertible bonds -
equity portion - - 202.4 - - - 202.4 - 202.4
2014 BSP shares
vested in
April 2017 590 851 - 40.0 (40.0) - - - - -
Total comprehensive
income - - - - - (752.7) (752.7) 95.7 (657.0)
Balance at
31 December 2017 192 868 841 1.9 9 643.2 240.8 82.5 701.5 10 669.9 3 754.0 14 423.9
* The number of shares is net of 2 500 037 (2017: 2 967 624) treasury shares relating to the Company's management
share incentive scheme and the Mahube Employee Share Trust as shares held by these special purpose vehicles
are eliminated on consolidation
^ 4 871 335 shares were issued for the Maseve acquisition and 9 791 823 shares were issued as part of the initial
consideration for the acquisition of the remaining 33% in BRPM JV
Summary consolidated statement of cash flows
for the year ended 31 December 2018
Group
2018 2017
audited audited %
R (million) R (million) change
Cash flows from operating activities
Cash generated by operations 581.1 569.5 2.0
Interest paid (0.7) (42.8) 98.4
Interest received 108.5 114.7 (5.4)
Dividend received 3.9 2.1 85.7
Tax refund - 2.4 (100.0)
Tax paid (26.9) (27.5) 2.2
Net cash flow generated by operating activities 665.9 618.4 7.7
Cash flows from investing activities
Acquisition of property, plant and equipment (3 510.9) (2 138.3) (64.2)
Acquisition of Maseve net of cash (658.0) - (100.0)
Styldrift on-reef development revenue receipt 973.4 451.1 115.8
Acquisition of employee housing assets (343.4) (493.9) 30.5
Acquisition of housing insurance investments (3.0) - (100.0)
Deposit paid for the acquisition of Maseve - (41.4) 100.0
Employee housing loan receivable repayments 2.4 1.3 84.6
Increase in environmental trust deposits and investments (61.0) (9.8) (522.4)
Net cash flow utilised by investing activities (3 600.5) (2 231.0) (61.4)
Cash flows from financing activities
Contributions from RPM 768.3 444.2 73.0
Drawdown of PIC housing facility 384.5 535.0 (28.1)
Repayment of PIC housing facility (80.0) (40.0) (100.0)
Proceeds from interest-bearing borrowings 2 015.0 - 100.0
Transaction costs on interest-bearing borrowings (15.0) - (100.0)
Repayment of interest-bearing borrowings (270.0) - (100.0)
Proceeds from convertible bonds issued - 1 200.0 (100.0)
Costs relating to issue of convertible bonds capitalised - (29.0) 100.0
Initial payment for acquisition of non-controlling interest (554.7) - (100.0)
Proceeds from the issue of shares 239.9 - 100.0
Costs relating to the issue of shares (3.0) - (100.0)
Net cash flow generated by financing activities 2 485.0 2 110.2 17.8
Net (decrease)/increase in cash and cash equivalents (449.6) 497.6 (190.4)
Cash and cash equivalents at beginning of period 1 333.1 835.5 59.6
Cash and cash equivalents at end of period 883.5 1 333.1 (33.7)
The notes below form an integral part of these consolidated annual financial statements.
Notes to the summary consolidated annual financial statements
for the year ended 31 December 2018
1. Basis of preparation
The summary consolidated annual financial statements are prepared in accordance with the requirements
of the JSE Limited Listings Requirements (JSE Listings Requirements) for provisional reports, and the
requirements of the Companies Act applicable to summary financial statements. The JSE Listings
Requirements require provisional reports to be prepared in accordance with the framework concepts
and the measurement and recognition requirements of International Financial Reporting Standards (IFRS)
and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by the Financial Reporting Standards Council and also, as a minimum, contain
the information required by IAS 34: Interim Financial Reporting. The accounting policies applied in the
preparation of the consolidated annual financial statements from which the summary consolidated
financial statements were derived are in terms of IFRS and are consistent with those accounting
policies applied in the previous consolidated annual financial statements.
The summary consolidated annual financial statements for the year ended 31 December 2018 were prepared
under the supervision of the Financial Director, Hanre Rossouw.
2. Accounting policies
The summary consolidated annual financial statements have been prepared under the historical cost
convention. The principal accounting policies used by the Group are consistent with those of the previous
period, except for the adoption of various revised and new standards. For the impact of adoption of new
standards, refer to Note 1 of the annual financial statements.
3. Audit opinion
These summary consolidated annual financial statements for the year ended 31 December 2018 have been
audited by PricewaterhouseCoopers Inc., who expressed an unqualified opinion thereon. The auditor also
expressed an unqualified opinion on the consolidated annual financial statements from which these
summary consolidated annual financial statements were derived. A copy of the auditor's report on the
summary consolidated annual financial statements and of the auditor's report on the annual consolidated
financial statements are available for inspection at the registered office of Royal Bafokeng Platinum
Limited, together with the annual financial statements identified in the respective auditor's report.
4. Available funds
RBPlat had cash and near cash investments on hand at 31 December 2018 of R883.5 million. Included in the
R883.5 million cash balance is restricted cash of R67.6 million ring-fenced for the RBPlat housing project
and R84 million earmarked for the payment of the convertible bond coupon. The Company concluded R2 billion
in debt facilities in March 2017. During 2018, the facilities were increased to R3 billion. These
facilities consist of a seven-year term debt facility of R750 million, a five-year revolving credit
facility of R1 750 million and one-year general banking facilities of R508 million. R750 million of
term-debt and R930 million of revolving credit facilities were drawn as at 31 December 2018.
R119.4 million of the general banking facilities was utilised for guarantees and R65.9 million of the
general banking facility was drawn at 31 December 2018.
5. Transaction with non-controlling interest (NCI)
At 11 December 2018, RBPlat acquired the remaining 33% participating interest in BRPM JV, from Rustenburg
Platinum Mines (RPM). As RBPlat already controlled the BRPM JV via its 67% participating interest, this
transaction has been accounted for within equity as a transaction with NCI.
The initially agreed purchase consideration was R1 863.0 million. This amount was increased by the cash
calls of R314.8 million contributed by RPM to the BRPM JV from the date of determination of the initial
consideration until the finalisation of the transaction. The total consideration for the transaction
amounted to R2 177.8 million, R554.7 million of which was settled in cash and the remainder was deferred
(refer to note 9 for terms of the deferred consideration). R239.9 million of the cash component was
financed via the issue of 9 791 823 shares into the market.
The liability of R2 102.2 million owed to RPM was settled as part of this transaction (refer to note 27
of the annual financial statements). In addition a deferred tax asset of R609.8 million was recognised
(refer to note 19 of the annual financial statements). As the BRPM JV was an unincorporated partnership,
the partners (and not the partnership) were obligated to pay the tax in their personal capacity.
Therefore, Royal Bafokeng Resources (RBR) was liable for 67% of the tax while RPM was liable for the
other 33%. As RBPlat controlled the JV, 100% of the JV was consolidated including deferred tax.
The acquisition of the 33% interest in the BRPM JV resulted in the increase in the base cost of
the asset which had an impact on the deferred tax balance.
2018
R (million)
Consideration
Initial base consideration 1 863.0
Refund of cash calls 314.8
Total consideration 2 177.8
- Cash 554.7
- Deferred consideration 1 623.1
Balances acquired (6 565.9)
Settlement of RPM payable (2 102.2)
Deferred tax asset raised (609.8)
Equity allocated to NCI (3 853.9)
Increase in retained earnings (4 388.1)
Less: Equity transferred from NCI 3 853.9
Net equity impact (534.2)
6. Convertible bond liability
Convertible bonds
RBPlat issued 120 000 7% senior unsecured convertible bonds for R1.2 billion on 15 March 2017.
Shareholders' approval for the conversion of the convertible bonds was obtained on 8 May 2017.
The bonds are convertible into ordinary shares of RBPlat at the option of the holder at an initial
conversion price of R42.9438. The conversion price is subject to customary adjustments for
reconstructions of equity. These customary adjustments maintain the relative rights of the
bondholders. Interest on the bonds is payable semi-annually in arrears on 16 March and
16 September of each year for five years ending 16 September 2022. The bonds are listed on the
JSE Main Board under stock code number RBPCB.
The R1.2 billion convertible bond was initially recognised as a R300.6 million derivative liability
and a R899.4 million liability.
31 December 31 December
2018 2017
R (million) R (million)
6.1 Derivative - initial recognition - 300.6
Less: Fair value up to date of shareholder approval - (19.5)
Derivative fair value at date of shareholder
approval (8 May 2017) - 281.1
Less: Derivative derecognised - (281.1)
Derivative balance at 31 December - -
6.2 Convertible bond equity
Opening balance at 1 January 202.4 -
Equity recognised on date of shareholder
approval (8 May 2017) - 281.1
Less: Deferred tax recognised on equity portion - (78.7)
Derivative balance at 31 December 202.4 202.4
6.3 Convertible bond liability
Opening balance at 1 January 932.4 -
Liability - initial recognition - 899.4
Less: Transaction cost capitalised - (29.0)
Plus: Fair value interest* 138.3 104.6
Less:
Interest paid (84.0) (42.6)
Convertible bond liability at 31 December 986.7 932.4
* In 2018, R131.7 million (2017: R58.7 million) of the fair value interest was capitalised to
Styldrift project at RBPlat group level.
The carrying amount of the liability portion at initial recognition was measured as the difference
between the cash proceeds and the fair value of the embedded derivative. The liability is subsequently
recognised on an amortised cost basis until extinguished on conversion or maturity of the bonds using
the effective interest rate method.
The following covenants are applicable to existing facilities:
Bond repayment covenant:
RBR shall ensure that on the fourth anniversary of financial close:
- The DSCR exceeds 1.50 times
- The LLCR exceeds 2.00 times
- Net debt to EBITDA shall not exceed 1.25 times
7. PIC housing facility
The PIC facility was used to fund the construction of houses for Phase 2 of the RBPlat housing project
as well as the insurance investment. The PIC facility is a R2.2 billion facility accruing interest at
CPI plus a margin of 1%. Security for the PIC facility is ring-fenced to the RBPlat housing project
assets with no recourse to the BRPM JV business.
The Group recognises the difference between the fair value of the PIC housing facility at initial
recognition and the transaction price as a fair value adjustment to the loan. The initial difference
is amortised over the term of the PIC housing facility.
General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalised during the period of time that is required to complete
and prepare the asset for its intended use or sale. On this basis, the interest expense on the PIC housing
facility is capitalised to employee housing assets.
31 December 31 December
2018 2017
R (million) R (million)
Opening balance at 1 January 975.0 434.0
Plus: Drawdowns 384.5 535.0
Less: Repayment (80.0) (40.0)
Plus:
Contractual interest charges capitalised to loan 65.9 43.3
Plus: Fair value interest charges capitalised to loan 8.5 5.7
Less: Amortisation of fair value adjustment to loan (54.3) (3.0)
Closing balance at 31 December 1 299.6 975.0
8. Interest-bearing borrowings
Interest-bearing borrowings are made up of drawdowns on existing facilities. RBR utilised R750 million
of its term debt facility, R930 million of its revolving credit facility and R335 million of its general
banking facility. At year-end, R270 million of the utilised general banking facility was repaid.
31 December 31 December
2018 2017
R (million) R (million)
Fair value at initial recognition 2 015.0 -
Plus: Transaction costs capitalised (30.0) -
Plus: Repayment (270.0) -
Interest capitalised 0.9 -
Closing balance at 31 December 1 715.9 -
Split between:
Non-current portion of interest-bearing borrowings 1 650.0 -
Current portion of interest-bearing borrowings 65.9 -
1 715.9 -
The following covenants are applicable to the existing facilities:
Financial covenants
RBR shall ensure that the following financial covenants will be met:
- Cumulative debt service coverage ratio (DSCR) shall exceed 1.25 times for measurement periods
ending between 2017 and 2020
- DSCR shall exceed 1.25 times for measurement periods ending between 2021 and 2023
- Cumulative loan life coverage ratio (LLCR) shall exceed 1.50 times for measurement periods ending
between 2017 and 2020
- LLCR shall exceed 1.75 times for measurement periods ending between 2021 and 2023
- Net debt to earnings before interest, taxation, depreciation and amortisation (EBITDA) shall not
exceed 2.00 times
- Net debt to equity shall not exceed 1.00 times
- Interest cover ratio is at least 4.00 times
9. RPM deferred consideration
RBPlat acquired the remaining 33% participating interest in the BRPM JV from RPM. The purchase
consideration was funded by a combination of cash, proceeds from a capital raise and the
remaining balance was deferred.
In total, 9 791 823 shares were issued raising gross proceeds of R239.9 million which was used
for part payment of the purchase consideration. In total, R314.8 million cash was used to pay the
refund of net cash calls payable to RPM. This resulted in a total of R554.7 million paid to Amplats
as initial consideration.
The deferred consideration escalates at a rate equal to the interest rate charged by lenders to RBR,
on the enlarged debt plus a premium of 2%. The deferred consideration is repayable in three annual
payments, each equal to one-third of the deferred consideration balance owing as at that date, with
the first payment due on the first business day following 18 months from the effective date, and the
second and third payment are due on the first and second anniversary thereof, respectively.
The transaction effective date was 11 December 2018.
At the Group's election, all or part of the deferred consideration may be settled through the issue
of RBPlat shares to RPM.
2018 2017
R (million) R (million)
Total purchase consideration 2 177.8 -
Less: Initial payment (554.7) -
Proceeds from capital raised (239.9) -
Refund on net cash calls (314.8) -
Less: Cession and assignment of claims (13.0) -
Interest capitalised 11.5 -
Closing balance at 31 December 1 621.6 -
Split between:
Non-current portion of interest-bearing borrowings 1 621.6 -
Current portion of interest-bearing borrowings - -
1 621.6 -
10. Capital commitments in respect of property, plant and equipment
31 December 31 December
2018 2017
R (million) R (million)
Capital commitments relate to the
Styldrift I and BRPM Phase III projects
Contracted commitments 861.1 969.8
Approved expenditure not yet contracted for 2 951.5 3 670.5
Total 3 812.6 4 640.3
11. Guarantees and commitments
31 December 31 December
2018 2017
R (million) R (million)
11.1 Guarantees
Royal Bafokeng Resources Proprietary
Limited, a wholly owned subsidiary
of RBPlat, granted the following guarantees:
Eskom to secure power supply for
Styldrift I project (guarantee 30823102) 17.1 17.1
Eskom early termination guarantee for
the Styldrift I project (guarantee 31160603) 17.5 17.5
Eskom connection charges guarantee for the
Styldrift I project (guarantee 31173918) 40.0 40.0
Department of Mineral Resources for the
rehabilitation of land disturbed by
prospecting/mining (guarantee 32388608) 1.3 1.3
Eskom security guarantee for power supply
to Styldrift I project (guarantee 34058907) 42.7 42.7
Royal Bafokeng Platinum Management Services
Proprietary Limited, a wholly owned subsidiary
of RBPlat, granted the following guarantees:
Tsogo Sun guarantee arising from lease
agreement (guarantee 34045600) 0.7 0.7
Tsogo Sun guarantee arising from lease
agreement (guarantee 34045708) 0.1 0.1
Total bank guarantees issued at 31 December 119.4 119.4
Department of Mineral Resources guarantee
for environmental rehabilitation liability 260.4 150.7
Department of Mineral Resources guarantee
for Styldrift II project 45.7 45.7
Total insurance guarantees issued at 31 December 306.1 196.4
Guarantees received from Anglo American Platinum
For Anglo American Platinum's 33% share of
the Eskom guarantee to secure power supply for
Styldrift I project (guarantee M523084) - (5.6)
For Anglo American Platinum's 33% share of the
Eskom early termination guarantee for the
Styldrift I project (guarantee M529349) - (5.8)
For Anglo American Platinum's 33% share of the
Eskom connection charges guarantee for the
Styldrift I project (guarantee M529350) - (13.2)
For Anglo American Platinum's 33% share of the
Eskom security guarantee for power supply to
the Styldrift I project - (14.1)
Total guarantees received at 31 December - (38.7)
11.2 Contingent liabilities - remediate groundwater and soil pollution
Royal Bafokeng Resources (RBR) has exposure to remediate groundwater and soil pollution
where RBR operates. The groundwater pollution plume model was updated in 2017 and the
updated model were used to simulate/predict future mining-related groundwater impacts.
Based on the groundwater model update, a project was initiated in 2018 to monitor the
groundwater movement on a continuous basis using borehole loggers. The purpose of the
project is to accurately quantify the size and the rate of movement of the pollution
plume. The project will be completed in Q1 2020. The ultimate outcome of the matter
cannot presently be determined and no liability has been raised in the annual
financial statements.
11.3 Contingent liability - Maseve acquisition
Post implementation of the Maseve transaction, Africa Wide Mineral Prospecting and
Exploration Proprietary Limited (Africa Wide) which held 17.1% of the shares in Maseve
prior to the implementation of the share transaction, instituted legal proceedings
against PTM, RBPlat and Maseve, in terms of which it seeks to have the Maseve transaction
declared unlawful and invalid, or alternatively to be paid an increased amount for its
Maseve shares, which it argues were undervalued.
On 20 September 2018 we advised security holders that PTM's legal advisers and senior council
were of the view that the claim of Africa Wide, was weak and that there are strong prospects of
defending this matter.
12. Business combination
On 5 April 2018, RBPlat announced that it had concluded the acquisition of the plant transaction
(Phase I) while on 26 April 2018, RBPlat announced that it had concluded the acquisition of a 100%
controlling interest of the share capital of Maseve Investments 11 Proprietary Limited (Maseve)
(Phase II) from Platinum Group Metals (RSA) Proprietary Limited (PTM (RSA)) and Africa Wide Mineral
Prospecting and Exploration Proprietary Limited. Immediately before the acquisition of the controlling
interest, PTM (RSA) and Africa Wide held 82.9% and 17.1% respectively. Accordingly, RBPlat and PTM
(RSA) implemented a scheme of arrangement under sections 114 and 115 of the Companies Act where RBPlat
acquired 100% of the issued share capital of Maseve. The combined transaction was for a total
consideration of US$70 million (R858.5 million). The acquisition of the plant and shares was seen
as a single transaction as they are considered to be linked and were classified as an acquisition
of a business, in accordance with IFRS 3: Business Combinations. Determining whether a series of
transactions is linked and whether they should be combined and viewed as a single arrangement is
a matter of judgement and was determined based on the fact that the transactions were entered into
in contemplation of one another and there was no economic need or substantive business purpose for
structuring these transactions separately that could not also have been accomplished in a single
transaction. The effective date of the transaction was therefore deemed to be 26 April 2018.
Maseve is a mining company incorporated in South Africa operating in the North West province.
The mine is currently on care and maintenance. In addition to the mining rights and other assets,
the company owns a concentrator complex designed to process PGMs.
The business combination benefits the Group in that it provides RBPlat with immediate access to
a concentrator plant which will be used to treat ore from Styldrift as well as the strategic
flexibility to extend the life of mine of BRPM South shaft. The mine business will be part of
the head office segment while the concentrator complex will be part of the Styldrift mining
segment.
The following table summarises the consideration paid for the acquisition of Maseve:
2018
R (million)
Total consideration 691.4
Settlement in cash 649.7
Deposit paid* 41.7
Phase II 167.1
Settlement in shares** 154.6
Deposit paid 12.5
Total consideration 858.5
* Deposit paid in 2017.
** The fair value of equity is based on the share price on the effective date of transaction.
Details of identifiable assets acquired, liabilities assumed and goodwill are as follows:
2018
R (million)
Purchase consideration 858.5
Fair value of net assets acquired 976.8
Non-current asset 999.7
Inventories 16.9
Trade and other receivables 33.0
Cash and cash equivalents* 4.2
Non-current liabilities (78.5)
Current liabilities (15.6)
Deferred tax 17.1
Gain on bargain purchase 118.3
* Acquired cash and cash equivalents is netted off against total consideration paid.
Gain on bargain purchase
The fair value of net assets acquired resulted in a gain on bargain purchase of R118.3 million
which has been recognised in the statement of comprehensive income. The Maseve business was under
are and maintenance and the shareholders were previously looking to dispose off the business
resulting in a gain on bargain purchase.
Acquired property, plant and equipment
The fair value of the plant was obtained from an external valuer using a factor of comparable
projects, and a due diligence was performed to identify all the assets acquired.
Acquisition-related costs
Acquisition-related costs of R4 million were charged to operating expenses in profit or loss
and included in operating cash flows for the year ended 31 December 2018. Total acquisition-related
costs since the inception of the transaction amount to R12.9 million.
Acquired trade and other receivables
The fair value of trade and other receivables is R33.0 million and does not include any trade
receivables. The fair value of trade and other receivables represents the gross contractual
amounts receivable. The full gross contractual amount of receivables is expected to be collectable.
The acquired business contributed revenue of Rnil with a net loss of R19.9 million to the
Group for the period from 26 April 2018 to 31 December 2018. If the acquisition had occurred
on 1 January 2018, consolidated revenue and consolidated profit after tax for the year ended
31 December 2018 would have been R3 627.1 million and R244.7 million respectively.
13. Revenue
31 December 31 December
2018 2017
R (million) R (million)
Revenue
Revenue from concentrate sales - production from
BRPM concentrator* - 3 092.90
Revenue from UG2 toll concentrate* - 401.7
Revaluation of revenue (prior year October,
November and December deliveries prices finalised) - 3.9
Revenue from contract with customers 3 500.3 -
Other revenue 126.8 -
Total 3 627.1 3 498.5
* Revenue for prior year was not restated as IFRS 15 was not applied retrospectively
Styldrift on-reef development revenue not included above but credited against property,
plant and equipment for the year ended 31 December 2018 amounted to R1 420.3 million
(2017: R571.8 million).
14. Cost of sales
31 December 31 December
2018 2017
R (million) R (million)
Included in the profit/(loss) before tax are
the following items:
On-mine costs:
- Labour 1 095.0 1 077.5
- Utilities 303.5 264.9
- Contractor costs 831.1 791.8
- Movement in inventories 15.1 (20.5)
- Materials and other mining costs 519.3 636.0
Materials and other mining costs for BRPM JV 565.7 681.0
Elimination of intergroup management fee (46.4) (45.0)
State royalties 17.3 13.4
Depreciation - property, plant and equipment 341.3 318.5
Amortisation - mineral rights 38.8 42.8
Share-based payment expense 45.0 21.1
Social and labour plan expenditure 51.9 35.4
Plant readiness 29.3 -
Other 29.6 5.6
Total cost of sales 3 317.2 3 186.5
15. Related party transactions
31 December 31 December
2018 2017
R (million) R (million)
BRPM JV balances at 31 December:
Amount owing by RPM for concentrate sales* 2 015.9 1 500.9
Amount owing to RPM for contribution to BRPM JV* - 1 495.2
BRPM JV transactions:
Concentrate sales to RPM 5 047.4 4 070.3
Associate of holding company (RBH) balances
at 31 December:
Amount owing by Impala Platinum Limited for
the fourth quarter royalty 31.4 24.5
Fellow subsidiary and associates of holding
company (RBH) transactions:
Fraser Alexander for rental of mining equipment,
maintenance of tailings dam and operation of
sewage plant (a subsidiary of RBH) 12.2 11.4
Impala Platinum Limited for royalties received
(an associate of RBH) 98.8 85.9
Geoserve Exploration Drilling Company for
exploration drilling on Boschkoppie and
Styldrift (a subsidiary of RBH) 7.0 9.5
Trident South Africa Proprietary Limited
for steel supplies (a subsidiary of RBH) 6.7 1.1
Mtech Industrial for supply and installation
of heat pumps (a subsidiary of RBH) 0.3 0.2
The MSA Group for consulting services 0.2 0.1
Royal Marang Hotel for accommodation and
conferences (a subsidiary of RBH) 0.6 0.6
Praxima Holding for payroll administration
fees (an associate of RBH) 0.1 0.1
Fees paid to non-executive directors (RBH/MOGS) 0.5 0.8
* RPM disposed of its 11.44% shareholding in RBPlat during the course of 2018
16. Dividends
No dividends have been declared or proposed in the current period (2017: nil)
17. Financial risk management
Fair value determination
The following table presents the financial assets that are measured at fair value as well as the
financial assets and financial liabilities measured at amortised cost but for which fair value
disclosure are provided at 31 December:
Level 1 Level 2 Level 3
R (million) R (million) R (million)
2018
At fair value
Environmental trust deposits1 - 24.6 -
Housing insurance investment2 - - 39.9
RPM concentrate debtors5 - 2 015.9 -
At amortised cost
Employee housing receivable3 - - 611.4
Impala royalty receivables 31.4 - -
Other receivables (excluding VAT) - 115.3 -
Financial liabilities at amortised cost
Convertible bond liability - - 986.7
PIC housing facility4 - - 1 299.6
2017
At fair value
Environmental trust deposits1 - 37.9 -
Housing insurance investment2 - - 35.7
RPM concentrate debtors5 - 1 500.9 -
At amortised cost
Employee housing receivable3 - - 439.5
Impala royalty receivables 24.5 - -
Other receivables (excluding VAT) - 99.4 -
Financial liabilities at amortised cost
Convertible bond liability - - 932.4
PIC housing facility4 - - 975.0
1 This was valued using the level 2 fair values which are directly derived from the
Shareholders Weighted Top 40 Index (SWIX 40) on the JSE
2 The fair value was determined using market prices for listed investments and discounted
cash flow models for unlisted investments
3 The fair value was determined using a discounted cash flow model. Refer to Note 7 of the
annual financial statements for inputs used to determine the fair value measurement
4 The fair value was determined using a discounted cash flow model. Refer to Note 21 of the
annual financial statements for inputs used to determine the fair value measurement
5 The fair value was determined using the commodity prices and foreign exchange rates
18. SEGMENTAL REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Executive Committee of
the Company that makes strategic decisions.
The Group is currently operating one mine with two decline shafts and the Styldrift I project. These
operations are located in the North West province of South Africa. BRPM and Styldrift (Styldrift I and
II) are shown as separate segments. In addition, due to the different nature and significance of the
employee home ownership scheme, it was decided to show housing as a separate segment. Currently
Styldrift I and II are aggregated into a single reportable segment as it is one mining right.
The Styldrift II pre-feasibility study has been completed. Once a feasibility study is completed, it
will move into development phase and may then be reported on as a separate segment.
18.1 Segmental statement of comprehensive income
For the year ended 31 December 2018
BRPM Styldrift BRPM JV
mining mining mining RBPlat Corporate Consoli-
segment segment segment housing office dation
(A) (B) (A + B) segment segment adjustments Total
R (million) R (million) R (million) R (million) R (million) R (million) R (million)
Revenue 3 627.1 - 3 627.1 230.7 96.8 (327.5) 3 627.1
Cost of sales (3 285.0) (14.7) (3 299.7) (230.3) (56.9) 269.7 (3 317.2)
Cash cost of sales excluding depreciation
and amortisation (2 938.6) (13.8) (2 952.4) (230.3) (18.1) 278.8 (2 922.0)
Depreciation (331.3) (0.9) (332.2) - - (9.1) (341.3)
Amortisation - - - - (38.8) - (38.8)
Movement in inventories (15.1) - (15.1) - - - (15.1)
Gross profit/(loss) per segment and total 342.1 (14.7) 327.4 0.4 39.9 (57.8) 309.9
Other income 116.7 (0.3) 116.4 5.5 3.7 (1.6) 124.0
Total administration expenditure - - - 21.3 (245.7) (59.6) (284.0)
Administration expenditure - - - (19.6) (221.4) (42.4) (283.4)
Depreciation - - - (0.4) (0.7) - (1.1)
Maseve care and maintenance - - - - (23.6) (17.2) (40.8)
Amortisation of employee housing benefit
and fair value adjustment to loan - - - 41.3 - - 41.3
Restructuring costs - - - - - - -
Impairment of - (25.9) (25.9) - (0.4) - (26.3)
non-financial assets and scrapping of assets
Gain on bargain purchase - - - - - 118.3 118.3
Net finance income 18.1 5.3 23.4 40.5 (49.3) 59.5 74.1
Finance income 23.8 6.7 30.5 40.5 102.0 (72.1) 100.9
Finance cost (5.7) (1.4) (7.1) - (151.3) 131.6 (26.8)
Profit/(loss) before tax per segment and total 476.9 (35.6) 441.3 67.7 (251.8) 58.8 316.0
Taxation (60.5)
Profit/(loss) after tax 255.5
Attributable to owners of the Company 155.6
Attributable to non-controlling interest 99.9
18.1 Segmental statement of comprehensive income continued
For the year ended 31 December 2017
BRPM Styldrift BRPM JV
mining mining mining RBPlat Corporate Consoli-
segment segment segment housing office dation
(A) (B) (A + B) segment segment adjustments Total
R (million) R (million) R (million) R (million) R (million) R (million) R (million)
Revenue 3 498.5 - 3 498.5 346.1 89.8 (435.9) 3 498.5
Cost of sales (3 166.9) (8.4) (3 175.3) (344.4) (56.2) 389.4 (3 186.5)
Cash cost of sales excluding depreciation
and amortisation (2 869.1) (8.2) (2 877.3) (344.4) (13.4) 389.4 (2 845.7)
Depreciation (318.3) (0.2) (318.5) - - - (318.5)
Amortisation - - - - (42.8) - (42.8)
Movement in inventories 20.5 - 20.5 - - - 20.5
Gross profit/(loss) per segment and total 331.6 (8.4) 323.2 1.7 33.6 (46.5) 312.0
Other income 111.5 5.6 117.1 3.1 29.4 0.9 150.5
Total administration expenditure (43.7) (5.3) (49.0) (17.8) (196.6) 7.2 (256.2)
Administration expenditure - - - (14.7) (195.1) 7.2 (202.6)
Depreciation - - - (0.3) (1.5) - (1.8)
Maseve care and maintenance - - - - - - -
Amortisation of employee housing benefit and
fair value adjustment to loan - - - (2.8) - - (2.8)
Restructuring costs (43.7) (5.3) (49.0) - - - (49.0)
Impairment of - - - (1.0) (863.3) - (864.3)
non-financial assets
Gain on bargain purchase - - - - - - -
Net finance income 14.9 0.9 15.8 36.4 (25.8) 58.7 85.1
Finance income 20.1 2.0 22.1 36.4 107.5 (28.6) 137.4
Finance cost (5.2) (1.1) (6.3) - (133.3) 87.3 (52.3)
Profit/(loss) before tax per segment and total 414.3 (7.2) 407.1 22.4 (1 022.7) 20.3 (572.9)
Taxation (84.1)
(Loss)/profit after tax (657.0)
Attributable to owners of the Company (752.7)
Attributable to non-controlling interest 95.7
18.2 Segmental statement of financial position
For the year ended 31 December 2018
BRPM Styldrift BRPM JV
mining mining mining RBPlat Consoli-
segment segment segment housing Corporate dation
(A) (B) (A + B) segment office adjustments Total
R (million) R (million) R (million) R (million) R (million) R (million) R (million)
Non-current assets 4 467.5 10 165.2 14 632.7 881.5 17 067.6 (11 097.9) 21 483.9
Allocation of mineral rights and segments 723.0 4 924.7 5 647.7 - (5 647.7) - -
Non-current assets after allocation of
mineral rights 5 190.5 15 089.9 20 280.4 881.5 11 419.9 (11 097.9) 21 483.9
Current assets 2 145.4 805.4 2 950.8 872.5 449.3 (245.9) 4 026.7
Employee housing current assets - - - 790.7 - - 790.7
Inventories 62.4 67.6 130.0 - 4.1 (3.9) 130.2
Trade and other receivables 1 444.0 737.8 2 181.8 14.2 268.1 (242.0) 2 222.1
Current tax receivable - - - - 0.2 - 0.2
Cash and cash equivalents 639.0 - 639.0 67.6 176.9 - 883.5
Total assets per statement of financial
position 7 335.9 15 895.3 23 231.2 1 754.0 11 869.2 (11 343.8) 25 510.6
Non-current liabilities 92.3 18.6 110.9 1 381.6 7 524.6 8.1 9 025.2
Deferred tax liability*** - - - - 3 266.3 (70.4) 3 195.9
Convertible bond- liability - - - - 986.7 - 986.7
Interest-bearing borrowings - - - - 1 650.0 - 1 650.0
RPM deferred consideration - - - - 1 621.6 - 1 621.6
PIC housing facility - - - 1 299.6 - - 1 299.6
Long-term provisions and other 92.3 18.6 110.9 82.0 - 78.5 271.4
Current liabilities 7 163.6 201.6 7 365.2 63.0 361.8 (7 033.6) 756.4
Trade and other payables 137.5 201.6 339.1 63.0 282.5 (7.5) 677.1
RBR payable 7 026.1 - 7 026.1 - - (7 026.1) -
RPM payable - - - - - - -
Current tax payable - - - - 13.4 - 13.4
Interest-bearing borrowings - - - - 65.9 - 65.9
Total liabilities per statement of financial
position 7 255.9 220.2 7 476.1 1 444.6 7 886.4 (7 025.5) 9 781.6
* Includes Styldrift II exploration and evaluation costs
** Employee housing loan receivable is classified as non-current as repayment of the capital portion of these receivables
is expected to commence after 12 months from date of the statement of financial position
*** R0.7 billion of the deferred tax liability is attributable to BRPM mining segment and R2.5 billion to Styldrift mining
segment (Styldrift I and Styldrift II)
^ During 2017, the cost and recoverable amounts of the 20 shaft royalty mineral rights were reallocated from the BRPM CGU
to the Styldrift CGU as we reconsidered the way we will be mining these ounces and concluded it will be from Styldrift
infrastructure and not BRPM
18.2 Segmental statement of financial position continued
For the year ended 31 December 2017
BRPM Styldrift BRPM JV
mining mining mining RBPlat Consoli-
segment segment segment housing Corporate dation
(A) (B) (A + B) segment office adjustments Total
R (million) R (million) R (million) R (million) R (million) R (million) R (million)
Non-current assets 4 080.1 8 118.3* 12 198.4 642.5** 10 413.9 (4 806.5) 18 448.3
Allocation of mineral rights and segments 761.8 4 924.7^ 5 686.5 - - (5 686.5) -
Non-current assets after allocation of
mineral rights 4 841.9 13 043.0 17 884.9 642.5 10 413.9 (10 493.0) 18 448.3
Current assets 1 953.5 333.1 2 286.6 668.7 919.2 (177.4) 3 697.1
Employee housing current assets - - - 591.1 - - 591.1
Inventories 78.5 27.1 105.6 - - - 105.6
Trade and other receivables 1 303.8 306.0 1 609.8 12.2 222.5 (177.4) 1 667.1
Current tax receivable - - - - 0.2 - 0.2
Cash and cash equivalents 571.2 - 571.2 65.4 696.5 - 1 333.1
Total assets per statement of financial
position 6 795.4 13 376.1 20 171.5 1 311.2 11 333.1 (10 670.4) 22 145.4
Non-current liabilities 93.6 13.6 107.2 1 023.8 4 706.7 - 5 837.7
Deferred tax liability*** - - - - 3 774.3 - 3 774.3
Convertible bond- liability - - - - 932.4 - 932.4
Interest-bearing borrowings - - - - - - -
RPM deferred consideration - - - - - - -
PIC housing facility - - - 975.0 - - 975.0
Long-term provisions and other 93.6 13.6 107.2 48.8 - - 156.0
Current liabilities 4 817.4 164.7 4 982.1 45.8 3 768.9 (6 913.0) 1 883.8
Trade and other payables 286.6 164.7 451.3 45.8 3 763.9 (3 716.1) 544.9
RBR payable 3 035.6 - 3 035.6 - - (3 035.6) -
RPM payable 1 495.2 - 1 495.2 - - (161.3) 1 333.9
Current tax payable - - - - 5.0 - 5.0
Interest-bearing borrowings - - - - - - -
Total liabilities per statement of
financial position 4 911.0 178.3 5 089.3 1 069.6 8 475.6 (6 913.0) 7 721.5
* Includes Styldrift II exploration and evaluation costs
** Employee housing loan receivable is classified as non-current as repayment of the capital portion of these receivables
is expected to commence after 12 months from date of the statement of financial position
*** R0.7 billion of the deferred tax liability is attributable to BRPM mining segment and R2.5 billion to Styldrift mining
segment (Styldrift I and Styldrift II)
^ During 2017, the cost and recoverable amounts of the 20 shaft royalty mineral rights were reallocated from the BRPM CGU
to the Styldrift CGU as we reconsidered the way we will be mining these ounces and concluded it will be from Styldrift
infrastructure and not BRPM
18.3 Segmental statement of cash flows
For the year ended 31 December 2018
Corporate
office and
BRPM Styldrift BRPM JV consoli-
mining mining mining RBPlat dation
segment segment segment housing adjust-
(A) (B) (A + B) segment ment Total
R (million) R (million) R (million) R (million) R (million) R (million)
Net cash flow generated/(utilised) by operating activities 797.3 (8.5) 788.8 41.7 (164.6) 665.9
Acquisition of property, plant and equipment (170.3) (3 264.5) (3 434.8) - (76.1) (3 510.9)
Acquisition of Maseve - (720.8) (720.8) - 62.8 (658.0)
Styldrift on-reef development revenue receipts - 973.4 973.4 - - 973.4
Acquisition of employee housing assets - - - (343.4) - (343.4)
Employee housing receivable loan repayments - - - 2.4 - 2.4
Deposit paid for Maseve acquisition - - - - - -
Increase in insurance investment - - - (3.0) - (3.0)
Increase in environmental trust deposits and guarantees (61.0) - (61.0) - - (61.0)
Net cash flow (utilised)/generated by investing activities (231.3) (3 011.9) (3 243.2) (344.0) (13.3) (3 600.5)
Cash investments by/(distributions to) BRPM JV partners (498.2) 3 020.4 2 522.2 - (1 753.9) 768.3
Net drawdowns of PIC housing facility - - - 304.5 - 304.5
Proceeds from interest-bearing liabilities - - - - 2 015.0 2 015.0
Transaction costs on interest-bearing borrowings - - - - (15.0) (15.0)
Repayment of interest-bearing borrowings - - - - (270.0) (270.0)
RPM initial consideration - - - - (554.7) (554.7)
Proceeds from issue of shares - - - - 239.9 239.9
Costs relating to share issue - - - - (3.0) (3.0)
Convertible bond proceeds net of cost - - - - - -
Net cash flow generated/(utilised by financing activities (498.2) 3 020.4 2 522.2 304.5 (341.7) 2 485.0
Net (decrease)/increase in cash and cash equivalents 67.8 - 67.8 2.2 (519.6) (449.6)
Cash and cash equivalents at beginning of period 571.2 - 571.2 65.4 696.50 1 333.1
Cash and cash equivalents at end of period 639.0 - 639.0 67.6 176.9 883.5
18.3 Segmental statement of cash flows continued
For the year ended 31 December 2017
Corporate
office and
BRPM Styldrift BRPM JV consoli-
mining mining mining RBPlat dation
segment segment segment housing adjust-
(A) (B) (A + B) segment ment Total
R (million) R (million) R (million) R (million) R (million) R (million)
Net cash flow generated/(utilised) by operating activities 585.2 (11.5) 573.7 24.5 20.2 618.4
Acquisition of property, plant and equipment (141.3) (2 019.0) (2 160.3) (0.5) 22.5 (2 138.3)
Acquisition of Maseve - - - - - -
Styldrift on-reef development revenue receipts - 451.1 451.1 - - 451.1
Acquisition of employee housing assets - - - (493.9) - (493.9)
Employee housing receivable loan repayments - - - 1.3 - 1.3
Deposit paid for Maseve acquisition - - - - (41.4) (41.4)
Increase in insurance investment - - - - - -
Increase in environmental trust deposits and guarantees (9.8) - (9.8) - - (9.8)
Net cash flow (utilised)/generated by investing activities (151.1) (1 567.9) (1 719.0) (493.1) (18.9) (2 231.0)
Cash investments by/(distributions to) BRPM JV partners (233.4) 1 579.4 1 346.0 - (901.8) 444.2
Net drawdowns of PIC housing facility - - - 495.0 - 495.0
Proceeds from interest-bearing liabilities - - - - - -
Transaction costs on interest-bearing borrowings - - - - - -
Repayment of interest-bearing borrowings - - - - - -
RPM initial consideration - - - - - -
Proceeds from issue of shares - - - - - -
Costs relating to share issue - - - - - -
Convertible bond proceeds net of cost - - - - 1 171.0 1 171.0
Net cash flow generated/(utilised by financing activities (233.4) 1 579.4 1 346.0 495.0 269.2 2 110.2
Net (decrease)/increase in cash and cash equivalents 200.7 - 200.7 26.4 270.5 497.6
Cash and cash equivalents at beginning of period 370.5 - 370.5 39.0 426.0 835.5
Cash and cash equivalents at end of period 571.2 - 571.2 65.4 696.5 1 333.1
19. Earnings/(loss) per share
The weighted average number of ordinary shares in issue outside the Group for purposes of basic earnings/(loss) per
share and the weighted average number of ordinary shares for diluted earnings/(loss) per share are calculated as
follows:
Group
2018 2017
Number of shares issued 195 836 465 195 836 465
Management incentive schemes (2 967 624) (3 558 475)
Number of shares issued outside the Group 192 868 841 192 277 990
Adjusted for weighted shares issued during the year 6 291 033 445 163
Weighted average number of ordinary shares in issue for earnings per share 199 159 874 192 723 153
Dilutive potential ordinary shares relating to management incentive schemes - 9 092
Dilutive potential ordinary shares relating to the convertible bond 27 943 498 27 808 219
Dilutive potential of RPM deferred consideration 3 523 385 -
Weighted average number of potential dilutive ordinary shares in issue 230 626 757 220 540 464
Profit/(loss) attributable to owners of the Company R (million) 155.6 (752.7)
Adjustments:
Add: Net interest on convertible bond 7.1 45.9
Add: Interest on RPM deferred consideration 11.5 -
Less: Derivative fair value - (19.5)
Less: Tax on the above (5.2) (7.4)
Diluted profit/loss R (million) 169.0 (733.7)
Basic earnings/(loss) per share (cents/share) 78.1 (390.6)
Basic earnings/(loss) per share is calculated by dividing the profit/(loss)
attributable to owners of the Company for the year by the weighted average
number of ordinary shares in issue for earnings per share.
Diluted earnings/(loss) per share (cents/share) 73.3 (390.6)#
Diluted earnings/(loss) per share is calculated by adjusting the weighted
number of ordinary shares outstanding to assume conversion of all diluted
potential ordinary shares.
Reconciliation of earnings to headline earnings
Group
2018 2017
Gross Net Gross Net
Headline earnings
Profit/(loss) attributable to owners of the Company R (million) 155.6 (752.7)
Adjustments:
Profit on disposal of property, plant and equipment and other assets R (million) (0.3) (0.3) (1.8) (1.8)
Scrapping of assets R (million) 26.3 12.8 863.3 863.3
Gain on bargain purchase (118.3) (118.3) - -
Headline earnings R (million) 49.8 108.8
Net interest on convertible bond 7.1 5.1 45.9 33.0
Interest on RPM deferred consideration 11.5 8.3 - -
Derivative fair value - - (19.5) (14.0)
Diluted profit/(loss) R (million)# 63.2 127.8
Basic headline earnings per share (cents/share) 25.0 56.4
Diluted headline earnings per share (cents/share) 27.4 56.4
# The effects of anti-dilutive potential ordinary shares are ignored in the calculation of diluted earnings/(loss)
per share and diluted headline earnings per share.
20. Subsequent events
No subsequent event has been identified.
Administration
Shareholders' diary
Financial year-end:
31 December of each year
Interim period-end:
30 June of each year
Integrated report and annual financial statements
Mailed to shareholders
8 March 2019
Company registered office
Royal Bafokeng Platinum Limited
Registration number: 2008/015696/06
Share code: RBP
ISIN: ZAE000149936
Bond code: RBPCB
ISIN: ZAE000243853
The Pivot
No 1 Monte Casino Boulevard
Block C
4th Floor
Fourways
Johannesburg
2021
South Africa
PO Box 2283
Fourways
2055
South Africa
Company Secretary
Lester Jooste
Email: lester@bafokengplatinum.co.za
Telephone: +27 10 590 4519
Telefax: +27 086 572 8047
Investor relations
Lindiwe Montshiwagae
Email: lindiwe@bafokengplatinum.co.za
Telephone: +27 10 590 4510
Telefax: +27 086 219 5131
Public Officer
Reginald Haman
Email: Reginald@bafokengplatinum.co.za
Telephone: +27 10 590 4533
Telefax: +27 086 219 5131
Independent external auditors
PricewaterhouseCoopers Inc.
4 Lisbon Lane
Waterfall City
Jukskei View
2090
South Africa
Transfer secretaries
Computershare Investor Services Proprietary Limited
Rosebank Towers
15 Biermann Avenue
Rosebank
Johannesburg
2196
PO Box 61051
Marshalltown
2107
South Africa
Telephone: +27 11 370 5000
Telefax: + 27 11 688 5200
Sponsor
Merrill Lynch South Africa Proprietary Limited
1 Sandton Drive
Sandhurst
Johannesburg
2196
South Africa
www.bafokengplatinum.co.za
5 March 2019
Date: 05/03/2019 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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