Thursday, June 24, 2021
FALSE ALARM: Yesterday Eskom narrowly averted another crisis after fears that the mining industry would be shut down again for the second time this year. Pic: LEN KUMALO. 01/01/1980. © SOWETAN.nnnThe government says SA is still in an electricity emergency and that mining cannot bear the brunt of power cuts on its own. Business Day, 25 March 2008, page 3. BD 12/02/2009, pg 7. The IDC is assessing its role as a partner in supporting investment and employment affected by the slowdown. FM 22/5/2009 PG 18 Savca Yearbook 2009. ALARM BELLS: Eskom has had to narrowly avert many crises in the past years which not only brought about major power cuts but also led to fears that the mining industry could be shut down. again for the second time this year. Sowetan 28/02/2012, page 16
AfricaFinanceMiningSouth Africa

Royal Bafokeng Platinum secures R2.1bn in cash-streaming agreement

49views

Royal Bafokeng Platinum (RBPlat) has struck a R2.1bn deal to deliver gold to mining financier Triple Flag, the proceeds of which will be used to settle the costs of its recent acquisition of Bafokeng Rasimone Platinum Mine (BRPM).

RBPlat will deliver 70% of its gold production to Triple Flag until 261,000 ounces are delivered, and 42% thereafter. Triple Flag will pay 5% of the spot gold price per ounce.

Gold is a byproduct of platinum group metals (PGM) production at RBPlat’s mining operations and accounts for approximately 3% of the company’s revenue.

In 2018, the company announced the acquisition of the remaining 33% in the BRPM joint venture from Anglo American Platinum’s wholly owned subsidiary, Rustenburg Platinum Mines.

“This long-term streaming agreement represents a significant commitment of international capital in RBPlat and signals confidence in our business,” said RBPlat CEO Steve Phiri in a statement.

The liquidity injection will strengthen its balance sheet and free up cash, said Phiri.

At 11.55am, RBPlat’s share price was unchanged at R42.50, having gained 60.5% so far in 2019. The JSE’s platinum index has surged 127.5% in the year to date.

Leave a Response