Royalty agreement with Impala Platinum Holdings Limited renegotiated
Due to the operational challenges at Impala Rustenburg operations and the rising costs at the 6 and 8 shafts in particular, RBPlat has agreed with Impala to substitute the royalty payment of 15% of revenue earned with a royalty payment linked to market conditions and therefore the profitability of the Impala Rustenburg operations. In terms of the amended Royalty Agreement, Impala will pay the BRPM JV a royalty that is based upon a factor that is linked to the Impala Rustenburg operations’ gross profit margin with a minimum royalty payment of 5% of revenue earned and a maximum royalty payment of 25% of revenue earned, with effect from 1 October 2013, subject to all legal agreements being concluded.
The board of RBPlat believes that the terms of the amended Royalty Agreement align the interests of the two businesses and are therefore beneficial for the shareholders of RBPlat.
The terms and conditions of the 20 shaft royalty agreement with Impala remain unchanged at 17.5% of revenue.
08 November 2013
Macquarie First South Capital (Pty) Limited
For further information, please contact:
Investor Relations Manager
Tel: +27 (0)10 590 4517
Mobile: +27 (0)82 920 7803