- 37% improvement in lost time injury frequency rate
- 67% improvement in EBITDA margin
- 229% increase in headline earnings per share
- Successfully completed the BRPM concentrator 250ktpm in-plant upgrade
- 10% increase in tonnes delivered to concentrators
- 17% increase in tonnes milled, achieving 1 292kt
- 16.% increase in both 4E and platinum ounces produced, amounting to 142koz and 92koz respectively
- 2% increase in cash operating cost per 4E and platinum ounce
- Balance sheet remains ungeared with R1 billion cash on hand
- Development and construction activities. These progressed during the first six months with a total of 2 068m of development having been completed and 140kt of ore being delivered to the concentrator at a grade of 3.23g/t (4E)
- Development progress has not been to plan due to changes in our support methodology subsequent to the fatal accident in December 2015 and localised geotechnical conditions encountered on 600 level and 642 level impacting on development crew performance. Several initiatives are currently being introduced to improve production capacity and mitigate any slippage
- Construction of Silo 2 and preparation activities related to Silo 4 construction
Operational flexibility and stability, underpinned by sound strategy, delivers strong operational and financial performance01 August 2016
Operational flexibility and stability, underpinned by sound strategy, delivers strong operational and financial performance
The safety turnaround strategy implemented late in 2015 has begun to manifest some meaningful improvements in the group’s safety performance. We must guard against complacency and need to persist in achieving our goal of zero harm. One fatality was recorded during the reporting period, with a disappointing 21% increase in our serious injury frequency rate. Despite this our lost time injury frequency rate and total injury frequency rate improved by 37% and 27% respectively.
Total tonnes delivered to the concentrators increased by 10% to 1 296kt compared to the same reporting period in 2015. Merensky tonnes delivered increased by 16% to 1 018kt and UG2 tonnes delivered declined by 8% to 278kt. The net impact of this change in the mining mix resulted in the delivered UG2 contribution percentage decreasing by 19% from 26% to 21% for the first six months of this year. The increase in the Merensky contribution is directly attributable to higher on-reef development volumes delivered from Styldrift I, our organic growth project.
Net revenue increased by 15.8% from R1 422.6 million in the first half of 2015 to R1 646.9 million for the reporting period due to a 9% increase in the average rand basket price to R19 680 per platinum ounce in the first half of 2016 compared to R18 062 in 2015 and a 6% increase in platinum ounces sold.
CASH OPERATING COSTS
Total cash operating costs increased by 8% from R1 228 million to R 1 329 million compared to the first six months of 2015. The 5% increase in BRPM milled volumes resulted in a unit cash cost per tonne milled increase of 3.3%, a unit cash cost per 4E ounce increase of 1.5% and a unit cash cost per platinum ounce increase of 1.7%
Total capital expenditure for the period under review amounted to R517 million, which is 55%, or R624 million lower compared to the same period in 2015. The reduction in expenditure is aligned with our cash preservation initiatives introduced in the second half of 2015. These initiatives included, among others, reducing construction activities and related capital expenditure at our Styldrift I project, deferring the 100ktpm concentrator module and overland conveyor belt from Styldrift to the BRPM concentrator. Further reductions were brought about with the deferment of the Styldrift II feasibility study and the associated exploration drilling. Stay-in-business (SIB) capital was maintained at between 4 to 5% of operating cost.
Styldrift I Expansion Project
The development and infrastructure construction-related activities during the period were aligned with the revised project construction schedule. The focus during the reporting period was on:
BRPM Phase III project (replacement)
The project, which entails the extension of the North shaft decline access infrastructure and associated reef infrastructure from level 10 to the mine boundary at level 15 continues to advance well and remains ahead of schedule and under budget. Project progress and expenditure is aligned with the revised deferment strategy and the project remains set for completion in 2017 as per the original project schedule. Project expenditure for the period amounted to R43 million bringing the total project expenditure to date to R1 035 million.
The results have been reviewed by the auditors.