Integrated report

Our performance

Financial capital

Key features in 2019

106.6% increase

in revenue to R7 491.9 million

248.4% increase

in EBITDA to R1  756.4 million

147.2% improvement

on headline earnings year-on-year to R123.1 million

48.6% increase

in royalties from Implats year-on-year

In 2019 our investment in our financial capital addresses our most material financial capital issues in the short, medium and long term, which are:

Other SDG's impacted

Level 1

Level 2

Level 3

Key to our SDG focus areas:

Level 1: Our main focus areas
Level 2: SDGs tp which we contribute directly
Level 3: SDGs to which we contribute indirectly

Promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all is one of RBPlat’s four main UN SDG focus areas. It involves our ability to grow our stock of financial, manufactured, human, intellectual and social capital. The key performance indicator (KPI) against which we measure our financial capital contribution to SDG 8 is through revenue generation
SDG 8 target

SDG 8.1

Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% gross domestic product growth per annum in the least developed countries

Revenue generation

R7 491.9 million

2018: R3 627.1 million


Statement of financial position

Summary consolidated statement of financial position at 31 December 2019
R (million)
R (million) 
Non-current assets 3.2    22 160.7    21 483.9    
  Property, plant and equipment 4.8    15 367.4    14 661.6    
  Mining rights (2.6)   5 502.7    5 647.7    
  Environmental trust deposit and guarantees investments 8.3    245.9    227.0    
  Deferred tax asset (16.6)   58.2    69.8    
  Employee housing loan receivable, benefit and other 12.4    986.5    877.8    
Current assets 19.0    4 790.0    4 026.7    
  Employee housing asset and benefit (8.9)   720.1    790.7    
  Inventories and trade and other receivables 35.4    3 185.2    2 352.5    
  Derivative financial asset 100.0    70.5    —    
  Cash and cash equivalents (7.8)   814.2    883.5    
Total assets  5.6    26 950.7     25 510.6    
Equity and liabilities            
Total equity 6.8    16 186.6    15 158.3^  
Non-current liabilities 6.0    9 024.5    9 595.9^  
  Deferred tax liability (2.1)   3 846.5    3 766.6^  
  Convertible bond liability (6.4)   1 049.5    986.7    
  PIC housing facility (10.9)   1 440.9    1 299.6    
  Interest-bearing borrowings 20.9    1 305.5    1 650.0    
  RPM deferred consideration 33.8    1 073.4    1 621.6    
  Lease liabilities (100.0)   16.2    —    
  Restoration, rehabilitation provision and other (7.8)   292.5    271.4    
Current liabilities (130.0)   1 739.6    756.4    
Total equity and liabilities (5.6)   26 950.7    25 510.6    
Net asset value per share (cents per share) (16.4)   63.2    75.6^  
^ Refer to Note 27 in the annual financial statements for details of the restatement relating to correction of error
Note: The summary consolidated statement of financial position, summary consolidated statement of comprehensive income and summary consolidated statement of cash flows are only summaries of the full set of the 2019 consolidated financial statements available online and do not contain full details. Any investment decisions by investors or shareholders should be based on consideration of the full set of consolidated financial statements published online on RBPlat’s website (
Summary of consolidated statement of comprehensive income for the year ended 31 December 2019
R (million)
R (million)
Revenue 106.6    7 491.9    3 627.1    
Cost of sales (105.3)   (6 810.6)   (3 317.2)   
Gross profit 119.8    681.3    309.9    
Other income 116.0    267.9    124.0    
Administration expenses (18.7)   (337.2)   (284.0)   
   Corporate office 24.4    (187.3)   (247.8)*  
   Housing project (351.2)   (53.5)   21.3    
   Industry membership and market development 0.6    (16.6)   (16.7)*  
   Maseve care and maintenance and other costs (69.6)   (69.2)   (40.8)   
   Restructuring costs (100.0)   (10.6)   —    
Gain on bargain purchase (100.0)   —    118.3    
Scrapping and impairment of non-financial assets (124.0)   (58.9)   (26.3)   
Net finance (cost)/income (679.6)   (429.5)   74.1    
Profit before income tax (60.9)   123.6    316.0    
Income tax credit/(expense) 1.7    (59.5)   (60.5)   
Non-controlling interest 100.0    —    (99.9)   
Profit attributable to the owners of the Company (58.8)   64.1    155.6    
Headline earnings 147.2    123.1    49.8    
Basic earnings per share (cents per share) (66.3)   26.3    78.1    
Diluted earnings per share (cents per share) (64.1)   26.3    73.3    
Basic headlines earnings per share (cents per share) 101.6    50.4    25.0    
Diluted headline earnings per share (cents per share) 101.6    50.4    25.0    
Dividend per share (cents per share) —    —    —    

* R16.7 million of corporate office costs has been reallocated and disclosed separately as industry membership and market development

Headline earnings

2019 was a remarkable year on RBPlat's journey to deliver on its strategic objectives. Our financial performance for the year reflects the significant progress we made with our:

The transformation of our business, assisted by improving macro market conditions, resulted in a 147.2% improvement in headline earnings to R123.1 million in 2019 (2018: R49.8 million). Our headline earnings per share improved year-on-year to 50.4 cents (2018: 25.0 cents) while our basic earnings per share was 26.3 cents compared to 78.1 cents for the year ended 31 December 2018.

Headline earnings per share

Factors impacting earnings

During 2019 our earnings per share (EPS) were also impacted by:


The addition of Styldrift revenue and an improved macro environment, resulted in a 106.6% increase in revenue to R7 491.9 million for the period, compared to R3 627.1 million in 2018. Following the ramp-up of Styldrift, 4E and platinum ounce production increased by 9.0% and 9.2%, respectively. Platinum contributed 38.4% (2018: 46.4%) to the revenue of our operations in the reporting period, while palladium and rhodium contributed 47.2% (2018: 36.2%). The basket price per platinum ounce increased by 36.8% to R28 743.0 (2018: R21 005.8) assisted by an increase in palladium and rhodium prices and a weaker rand, with our average exchange rate received for the period improving by 5.3% to R14.55 per US dollar.


Cost of sales

The inclusion of Styldrift was also the main contributor to the 105.3% increase in cost of sales to R6 810.6 million (2018: R3 317.2 million). Styldrift's contribution to cost of sales was R3 252.4 million, with an average cash operating cost per 4E ounce of R16 504. Although Styldrift's cost of sales during 2019 was higher than expected, we expect the operation to deliver a significant improvement in unit costs as it ramps up to full capacity. BRPM's contribution to total cost of sales increased by 4.5% year-on-year to R3 432.3 million (2018: R3 285.0 million), which is well in line with mining inflation. The contributors to the 20.0% increase year-on-year in BRPM's average cash operating cost per 4E ounce to R12 562 includes the ramp-up of UG2 ore mining at South shaft, Eskom power curtailment and lower production.

Our focus on delivering cost optimisation and the ramp-up of Styldrift has resulted in a further reduction in the fixed cost component of our cash costs, having achieved a 0.5% improvement in the period under review to 69.1% (2018: 69.6%).

During the second half of 2019, RBPlat initiated a review of corporate costs and a new optimisation programme. This process, which will continue in 2020, has already delivered a more streamlined executive team with improved reporting lines and accountabilities. Our corporate office charges decreased by 24.4% year-on-year to R187.3 million.

Cost of sales

Summary of consolidated statement of cash flows for the year ended 31 December 2019
R (million)
R (million)
Net cash inflow from operating activities 54.3    1 027.6    665.9   
Net cash (outflow) from investing activities 51.3    (1 751.8)   (3 600.5)  
Net cash inflow from financing activities (73.6)   654.9    2 485.0   
Net decrease in cash and cash equivalents 84.6    (69.3)   (449.6)  
Cash and cash equivalents at beginning of period (33.7)   883.5    1 333.1   
Cash and cash equivalents at end of period (7.8)   814.2    883.5   

Cash flow

Gross profit

Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased 248.4% from R504.1 million to R1 756.4 million, with our EBITDA margin increasing to 23.4% from 13.9% in the previous comparative period. RBPlat's consolidated gross profit increased by 119.8% to R681.3 million from R309.9 million in the comparative period.

Supported by a strong pricing environment, BRPM reported a 217.5% growth in gross profit to R1 086.2 million. In its first year of commercial production Styldrift reported a gross loss of R279.0 million due to high cash costs and high levels of depreciation as a result of the ramp-up.

Other income

Other income increased by R143.9 million, or 116.0% compared to 2018. This was partly as a result of the R70.5 million foreign exchange gain on the currency hedge for the expected proceeds of the gold streaming agreement, the R13.7 million net realised gains or the fair value of foreign exchange contracts and an increase in Impala royalties of 48.6% to R146.8 million.

Cash flow

The growth in our business and improving market conditions contributed to a 54.3% increase in cash inflow from operating activities to R1 027.6 million. We invested a total of R327.0 million in stay-in-business and replacement capital expenditure, to deliver free cash flow before expansionary capital expenditure of R700.6 million. Expansionary capital expenditure for 2019 including borrowing costs capitalised and elimination of intercompany management fee amounted to R1 368.3 million, with net cash flow from investing activities totalling R1 751.8 million, a 51.3% reduction from 2018. Net cash inflow from financing activities of R654.9 million was supported by R1 029.1 million proceeds from the rights offer.

Summary of consolidated segmental analysis
R (million)
R (million)
(A + B)
R (million)
R (million)
office and  
R (million) 
R (million) 
Summary of segmental statement of comprehensive income — for the year ended 31 December 2019              
Revenue 4 518.5  2 973.4  7 491.9  105.3  (105.3)    7 491.9  
Cost of sales (3 432.3) (3 252.4) (6 684.7) (105.3) (20.6)    (6 810.6) 
   Cash cost of sales excluding depreciation and amortisation (3 090.7) (2 681.0) (5 771.7) (105.3) 151.0     (5 726.0) 
   Depreciation (349.9) (574.2) (924.1) —  (26.6)    (950.7) 
   Amortisation —  —  —  —  (145.0)    (145.0) 
   Movement in inventories 8.3  2.8  11.1  —  —     11.1  
Gross profit/(loss) per segment and total 1 086.2  (279.0) 807.2  —  (125.9)    681.3  
Profit/(loss) before tax per segment and total 1 264.8  (273.8) 991.0  (57.3) (810.1)    123.6  
Summary of segmental statement of financial position — as at 31 December 2019              
   Non-current assets 5 192.2  15 732.4  20 924.6  964.1   272.0     22 160.7  
   Current assets 2 410.9  1 350.8  3 761.7  751.0  277.3     4 790.0  
   Non-current liabilities 103.2  25.3  128.5  1 533.6  7 362.4     9 024.5  
   Current liabilities 7 642.5  590.1  8 232.6  81.6  (6 574.6)    1 739.6  
Summary of segmental statement of comprehensive income — for the year ended 31 December 2018              
Revenue 3 627.1 —  3 627.1  230.7  (230.7)    3 627.1  
Cost of sales (3 285.0) (14.7) (3 299.7) (230.3) 212.8     (3 317.2) 
   Cash cost of sales excluding depreciation and amortisation (2 938.6) (13.8) (2 952.4) (230.3) 260.7     (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) 342.1  (14.7) 327.4  0.4  (17.9)    309.9  
Profit/(loss) before tax 476.9  (35.6) 441.3  67.7  (193.0)    316.0  
Summary of segmental statement of financial position — as at 31 December 2018              
   Non-current assets 5 190.5  15 089.9  20 280.4  881.5  322.0     21 483.9  
   Current assets 2 145.4  805.4  2 950.8  872.5  203.4     4 026.7  
   Non-current liabilities 92.3  18.6  110.9  1 381.6  8 103.4^   9 595.9^
   Current liabilities 7 163.6  201.6  7 365.2  63.0  (6 671.8)    756.4  

^ Refer to Note 27 in the annual financial statements for details of the restatement relating to error

Scrapping and impairment of non-financial assets

In 2019, there was no scrapping of non-financial assets compared to the R25.9 million in 2018 relating to the feasibility study cost previously capitalised in respect of the possible addition to the BRPM concentrator plant to mill ore from Styldrift. The plant addition was set aside after the acquisition of Maseve, which included a concentrator plant with capacity to treat ore from Styldrift.

In 2019, an impairment of R58.9 million relating to employee housing assets was recognised as a result of suspension of construction of houses for Phase II.

Finance income and finance costs

Finance costs increased from R26.8 million in 2018 to R553.6 million in 2019, mainly as a result of the interest on the RPM deferred consideration of R211.8 million (2018: R11.5 million) and interest on our credit facilities including the convertible bond, expensed of R231.5 million (2018: R6.5 million). Within our RBPlat housing segment, the R89.7 million increase in the expensed interest on the PIC housing facility, which was previously capitalised, was offset by a R43.8 million increase in interest received mainly from additional house sales.

Balance sheet and funding

As at 31 December 2019 the RBPlat Group had cash and cash investments of R814.2 million (2018: R883.5 million). This includes restricted cash of R129.5 million ringfenced for our Employee Home Ownership Scheme and R84 million earmarked for the payment of the convertible bond coupon. In 2019, RBPlat was able to fund 68.1% (2018: 37.3%) of its capital expenditure from cash generated by its operations. Net debt, calculated as interest-bearing borrowings less cash and cash equivalents, ended the period at R491.3 million presenting a 41.0% decrease from 2018.

Capital raise

In March 2019, RBPlat successfully raised R1 029.1 million through a rights offer. Overall, 46 777 694 shares were issued at a price of R22.0. The rights offer was oversubscribed and resulted in our free float increasing to 58.8%.

BRPM JV acquisition

The Company announced terms for the acquisition of the remaining 33% participating interest in the BRPM JV from RPM, a wholly owned subsidiary of Amplats on 5 July 2018. The transaction was structured in two phases:

Phase I of the acquisition was funded by means of 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 from RPM to the joint venture during the interim period (from 5 July 2018 to the Phase I effective date) was settled from cash and available facilities. The remaining deferred consideration was due to be paid to RPM, either in cash or equity over a three-year period, commencing 18 months from the closing of the transaction on 11 December 2018.

On 16 July 2019, the Department of Mineral Resources and Energy (DMRE) confirmed that it has granted unconditional consent in terms of section 11(1) of the Mineral and Petroleum Resources and Development Act, 2002, to the transfer of RPM's undivided interest in the mining rights. Accordingly, in terms of Phase II of the transaction, RBR will proceed to register full title in respect of RPM's 33% undivided interest in the mining rights attributable to the BRPM JV (which entails consolidating RPM's 33% participation interest with the 67% already held by RBR in such mining rights). Accordingly, the Company confirms that in addition to Phase I of the transaction having been completed, the conditions precedent to Phase II of the transaction have now been met.

On 30 January 2020, RBPlat settled the full balance of the deferred consideration outstanding at that date, amounting to R1 851.0 million. The balance was settled in cash from proceeds of the gold streaming agreement.

Gold streaming

In October 2019, RBPlat announced a gold streaming agreement through its wholly owned subsidiary, Royal Bafokeng Resources Proprietary Limited, with Triple Flag Mining Finance Bermuda Limited (Triple Flag). In terms of this agreement, the Company will receive an upfront cash payment of US$145 million (equating to approximately R2.1 billion) in exchange for the future delivery of gold from the RBPlat mining operations (excluding Styldrift II and the Impala royalty areas), payable over the life of mine. RBPlat will deliver 70% of its payable gold production to Triple Flag until 261 000 ounces are delivered under the stream, and 42% of payable gold production thereafter. For every ounce delivered as part of the stream, Triple Flag will pay 5% of the spot gold price to RBPlat. The transaction closed in the first quarter of 2020 following regulatory and other approvals.

Capital allocation

Our capital allocation framework is integrated into our strategy, budget, planning and management processes in order to balance risk and returns in the application of financial capital in our business. Critically, the assessment of financial risk and returns is extended to also consider the impact on our manufactured, human, intellectual, social and relationship and natural capital.

Our governance structures, including the delegation of authority framework, ensures that capital allocation decisions are mandated to the appropriate level that can best assess the potential risk and rewards, while ensuring accountability of actions.

We apply a rigorous valuation process to motivate, support and track the performance of our organic growth projects, as well as potential mergers and acquisitions. This process recognises the significant uncertainty of macro economic factors with the aim to balance return and risk throughout commodity cycles.

The funding of financial capital is a further important component of our capital allocation framework. This is done through an ongoing assessment of the optimal sources of capital, including equity and various sources of debt, in order to maximise shareholder returns while maintaining an appropriate level of risk.

Dividend policy

Shareholder returns are an important expression of capital allocation, with our preference being to return excess cash to shareholders through sustainable dividend payments.

While the development of Styldrift has presented a significant investment phase for RBPlat, the successful ramp-up of Styldrift together with the ongoing cash generation from BRPM and the Impala royalties, is expected to underpin strong cash flow generation that will support sustainable dividends. As such, the Board has approved a policy of distributing a minimum of 10% of free cash flow, before growth capital, while maintaining discretion to consider balance sheet flexibility, and prevailing market conditions. This will be done through an annual dividend each financial year, with consideration also given to special dividends, where appropriate.

The way forward

Our ability to deliver volume growth, while improving efficiencies and costs, remains key in the current environment. To meet our stewardship responsibilities in terms of RBPlat's financial capital and creating value for our stakeholders, we will make every effort to protect and grow our financial capital in the short, medium and long term, through responsible investment in capital expenditure to increase profitability and grow the business.

To achieve this, we will: