Royal Bafokeng Platinum: record production when it counted

9WZiafUSdRp5seohu8SR
0
831

Royal Bafokeng Platinum (RB Plats) has released annual results for the year ended December 2021. This has been a wonderful period for the platinum group metal (PGM) players, who deserved a break after years of pain.

Market cycles are incredible things. To give an idea of how severe the swings can be, RB Plats’ return on capital employed in 2014 – 2017 ranged from -29.4% to +3.3%. In 2020 it was 17.7% and in 2021 it increased to 22.4%!

As a reminder, Impala Platinum (Implats) has made an offer for RB Plats. The latter’s independent board has recommended the Implats offer to shareholders, with the caution that there is still a chance of another offer being made. The Takeover Regulation Panel (TRP) is still investigating whether Northam Platinum (which bought out Royal Bafokeng Holdings) should also be required to make a mandatory offer.

Shareholders in RB Plats will hopefully obtain clarity on this soon.

The Implats offer is R90 cash and 0.3 Implats shares per RB Plats share, so the RB Plats share price will fluctuate based on the Implats share price and the possibility of an offer from Northam Platinum.

In 2021, RB Plats grew revenue by 22.8%. This was assisted greatly by record production: 12.1% growth in tonnes hoisted, 16% growth in tonnes milled and 11.5% growth in 4E metals in concentrate.

Cash operating costs per tonne or per ounce (as appropriate) increased by single digits, well below the revenue growth rate. This led to a 28.3% increase in EBITDA to over R8.5 billion, an EBITDA margin of 51.9% (up from 49.7% the prior year).

The percentage increase was even higher at net profit level, with headline earnings per share (HEPS) up by 71.6%.

After capital expenditure of R1.8 billion in 2021 that was almost identical to 2020’s level, there’s lots of free cash flow to go around. This drove a massive jump in the dividend of 86.1% to R10.70 per share.

Please note that the final dividend was R5.35 per share, so investors who come onto the register this month will only receive that amount and not the R10.70 per share.

All eyes are on the TRP and a final answer on whether Northam Platinum needs to make an offer.

Leave a reply

Please enter your comment!
Please enter your name here

Latest Articles

Boring business billions

0
The world’s richest people aren’t always building apps or chasing disruption. Here are three stories that reveal how unglamorous industries keep minting billionaires. From billboards to pig farming and car mats, there are many ways to make it big.

Ghost Bites (AB InBev | Jubilee Metals | HCI | Schroder European Real Estate)

0
With all the news from the first week of January 2026 included in one Ghost Bites, you'll find deal news at AB InBev, Jubilee Metals and HCI. There's also a valuation update at Schroder European Real Estate.

Why ETFs Play a Vital Role in Private Markets

1
Exchange Traded Funds (ETFs) have emerged as a transformative solution, for public markets and also as a strategic bridge to private market exposure. The border between traditional and alternative asset management is dissolving. Clients are driving the convergence, seeking integrated solutions that blend public and private exposures. Duma Mxenge of Satrix explains.

Ghost Bites (AfroCentric | Aspen | Novus – Mustek)

0
Aspen announced the disposal of Aspen APAC and the market loved it. AfroCentric is disposing of Activo and the market forgot to notice - for now, at least. And for Novus, a purchase of 3,000 shares has turned out to be very expensive in the Mustek deal.

UNLOCK THE STOCK: Southern Sun

0
In the 65th edition of Unlock the Stock, Southern Sun joined the platform to talk about the recent numbers and the strategic outlook for the business.

Ghost Bites (Mr Price | NEPI Rockcastle)

2
Mr Price isn't backing off on the NKD deal, despite the absolute hatred for the transaction from the market. NEPI's pre-close update shows the importance of looking at per-share growth.

Sponsored

Ghost Stories #89: 25 years of Satrix – how indexation changed investing in South Africa

In the year 2000, a lot happened. There was some questionable pop music. There was also the Dot-Com Crisis, followed by a period that saw incredible equity returns in South Africa until the Global Financial Crisis hit in 2007/2008. And during that important period in our local market, we also saw the emergence and initial growth of ETFs in South Africa, spearheaded by Satrix. To reflect on 25 years of ETFs in South Africa, René Basson joined me to share the important milestones and fascinating stories that defined this journey. Join us as we look back on how Satrix made it possible for everyone to own the market.

The Finance Ghost Plugged in with Capitec: Ep 6 (Noodles without borders – bringing miso to Mzansi)

Lu-ise Hattingh and Ruan Botha are a great example of the power and value of travel. After spending time in Japan, they fell in love with the culture and food. As all great entrepreneurs do, they also took the opportunity to learn about the Japanese approach to consumer brands. That curiosity eventually sparked a business idea they brought back home. Today, Lu-ise and Ruan are rolling out Market Kokoro franchise stores in South Africa.

Ghost Stories #88: Cell C – more than just an MVNO engine

Cell C has been on quite the adventure in its efforts to carve out a sustainable competitive position. Cell C has created a profitable business model that goes well beyond the MVNO operations that the market tends to focus on. In this podcast, CEO Jorge Mendes joined me to explain Cell C's business and how they plan to win across key verticals.

Ghost Stories #87: Lessons from 2025 – discipline over drama

As we look back on a fascinating year in the markets, Nico Katzke (Head of Portfolio Solutions at Satrix) delivered a fantastic mix of insights on this podcast that can be applied to your strategy in 2026 and beyond. From being careful not to learn the wrong lessons through to choosing simplicity over complexity, there's a lot of great stuff in here to get you ready for another year in the markets.