(Reuters) – South Africa’s Royal Bafokeng Platinum said on Tuesday full-year earnings rose 38 percent, due to higher sales, cost cuts and as currency weakness lifted the rand price of its metals.
The mid-tier producer said in a statement headline earnings per share for the year to December totalled 239 cents, the middle of the range it had flagged to the market, from 173 cents a year ago.
Headline EPS, which excludes certain items, is the main measure of profit in South Africa.
Although the price of platinum fell about 13 percent last year, RBPlat said a weakening in the rand against the dollar meant the average price of its metals rose 10.7 percent in the period.
Platinum’s primary use is for emissions-capping catalytic converters in vehicles.
The company said it does not see prices for its main white metal improving due to available above-ground stocks. Spot platinum on Tuesday was steady at $1,187 an ounce, near 5-1/2 lows reached last month.
“We are not counting on platinum group metal prices improving significantly from 2014 levels in the short term, and we will therefore be continuing to focus on containing cost increases,” RBPlat said.
RBPlats results in a nutshell:
- 5 pct increase in 4e ounce production
- 1.43 billion rand in net cash generated by operations
- Cash on hand at year end of 1.86 billion rand
- Group’s headline earnings increased by 157 million rand from 283.9 million rand in 2013 to 440.9 million rand in 2014
- Increase reflects improvement in our PGM rand basket price and cost saving initiatives implemented in 2014
- Headline EPS for 2014 of 239 cents are 38.2 pct higher than 173 cents per share reported in 2013
- Revenue of 3 767.5 million rand for 2014 was 15.9 pct higher than 3 251.1 million rand for 2013
- EBITDA as a percentage of revenue increased slightly from 30.0 pct in 2013 to 31.6 pct in 2014
- In short to medium term focus will remain on core business of mining brpm, improving safety, maintaining productivity, containing costs.
