Shareholders are advised that due to prevailing difficult market conditions, characterized by the softening of platinum group metal (PGMs) prices as a result of weaker demand for PGMs particularly from Europe, as well as local cost pressures, RBPlat, to preserve cash flows, has undertaken a strategic review of operating activities and capital expenditure commitments to identify opportunities of deferring expenditure in the short-to-medium term on certain non-critical items without any material negative impact on the business (“Review”).
The Company is of the view that current market conditions are likely to prevail for the remainder of the year and going into 2013, and has therefore decided in this first phase of the Review to introduce the following cash preservation measures:
RBPlat will continue to review capital and other expenditure and to optimise operations while at the same time avoiding any material impact on production and the long-term sustainability of operations. The Company remains confident that long-term fundamental demand for PGMs remains in place, supporting its long-term growth objectives.
21 June 2012
Macquarie First South Capital (Pty) Limited
For further enquiries, please contact:
Investor Relations Manager
Tel: +27 (0)10 590 4517
Royal Bafokeng Platinum
No 1 Monte Casino Boulevard
Block C , Floor 4
Tel: +27 (0) 10 590 4517
Fax:+27 (0) 86 219 5131
Mobile: +27 (0) 82 920 7803
A compelling platinum investment (PDF - 3.7MB)