RBPlat shares rise 5% after R400m in capex is deferred

JOHANNESBURG – Royal Bafokeng Platinum (RBPlat) rose nearly 5percent on the JSE yesterday after the platinum group metals company deferred R400million in capital expenditure and announced the withdrawal of its 2020 production guidance due to uncertainty over the impact of the coronavirus pandemic on its business.

The Johannesburg-headquartered group said that the decision followed a review aimed at identifying non-critical items that could be deferred without impacting the operational flexibility.

RBPlat said it withdrew the guidance after it lost 46300 ounces of underground production during the extended national lockdown.

“Given these dynamics, RBPlat withdraws its previously stated 2020 guidance to the market,” it said.

The company previously forecast a production crease of between 4.2million tons and 4.5million tons at a 4E built-up head grade of 4 grams per ton, yielding 485000 ounces 4E metals in concentrate for 2020.