Royal Bafokeng Platinum : RECORD PRODUCTION, RECORD EBITDA, HEPS MORE THAN DOUBLE IN SPITE OF CHALLENGING DOMESTIC ENVIRONMENT, OPERATING COMPLEXITY

RECORD PRODUCTION, RECORD EBITDA, HEPS MORE THAN DOUBLE IN SPITE OF "CHALLENGING DOMESTIC ENVIRONMENT, OPERATING COMPLEXITY"

Johannesburg, South Africa. Tuesday, 3 March 2020. Royal Bafokeng Platinum today issued its operating and financial results for the year ended 31 December 2019.

Key operating and financial features (year-on-year) *

• 9.0% increase in 4E metals in concentrate to 401koz
• 9.2% increase in platinum metal in concentrate to 261koz
• 248.4% increase in EBITDA to R1 756 million
• Headline earnings per share (HEPS) more than double to 50.4 cents
• 41.0% reduction in net debt to R491.3 million
• R814.2 million held in cash

• Detailed commentary is contained on pages 5 to 9 in the Audited Annual Results document, available on the Royal Bafokeng Platinum website,www.bafokengplatinum.com

CEO Steve Phiri commented: "While RBPlat witnessed a recovery and strengthening of macro PGM market fundamentals, resulting in a healthy basket price, the domestic environment remained challenging.

Operationally, the year represented a continued transformation as Styldrift moved from a project environment to commercial operating status, and BRPM was required to maintain steady results despite a rapidly depleting South shaft Merensky reserve".

"We achieved significant production and construction milestones at our operations but the overall volume and cost performance did not meet our expectations, largely driven by the operational complexity we have faced this year."

Operations

There was a 9.0% and 9.2% increase in 4E metals in concentrate and platinum metal in concentrate to 401koz and 261koz respectively, reflecting a 12.8% increase in tonnes delivered to the concentrator to 3 829kt and a 12.5% increase in tonnes milled to 3 847kt.

The lower built-up head grade, along with lower recovery potential of the Maseve MF1 circuit and the lack of availability of the BRPM plant secondary mill in the second quarter of 2019, adversely impacted overall 4E recoveries to 83.07%.

Some 6.5koz (4E) was lost as a result of safety- and load shedding related disruptions, of which 5.9koz (4E) was lost due to section 54-related stoppages.

Cash operating costs for the business increased by R2 887 million to R5 675 million, a direct result of Styldrift reaching commercial operating status as of 1 January 2019.

Cash operating cost per tonne milled and 4E ounce for the business equated to R1 475 and R14 139, respectively.

BRPM cash unit costs per tonne milled and 4E ounce increased by 12.2% and 20.0% to R1 361 and R12 562, respectively.

The cash unit costs for Styldrift mine, which is currently in ramp-up phase, amounted to R1 632 per tonne milled and R16 504 per 4E ounce.

Total capital expenditure was 52.0% lower at R1 661 million, largely reflecting the diminishing capital requirements at Styldrift as the project enters its final phase.

Financial

The transformation of the business, assisted by improving macro market conditions, resulted in a 147.2% improvement in headline earnings to R123.1 million, and a 101.6% increase in HEPS to 50.4 cents.

Basic earnings per share were 26.3 cents compared to 78.1 cents however, impacted both by high cash costs and levels of depreciation due to the Styldrift ramp-up and interest charges relating to the Rustenburg Platinum Mine Limited's deferred consideration.

Revenue increased by 106.6% to R7 491.9 million, a result of the addition of Styldrift revenue and the improved macro-environment.

At year-end, cash and cash investments totalled R814.2 million. Some 68.1% of capital expenditure could be funded from cash generated by the operations.

Net debt was 41% lower at R491.3 million.

2020 guidance

Group production guidance for 2020, subject to any unforeseen operational disruptions, is forecast to increase to between 4.2Mt and 4.5Mt at a 4E built-up head grade of 3.90g/t to 4.00g/t, yielding 450koz to 485koz 4E metals in concentrate.

Unit cost guidance is forecast to be between R13 300 and R14 400 per 4E ounce.

Dividend policy

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. Consequently, the Board has approved a policy of distributing a minimum of 10% free cashflow, 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.

Way forward

Steve Phiri commented "RBPlat is now a transformed business that is perfectly positioned. Our ability to deliver volume growth, while improving efficiencies and costs remains key in the current environment. We have optimised our balance sheet through the capital we raised in 2019, extinguished the debt we owed to Anglo American Platinum of R1 863 million and this positions the business well to start returning cash to shareholders in the near to medium term."

FOR FURTHER INFORMATION

LINDIWE MONTSHIWAGAE

EXECUTIVE: INVESTOR RELATIONS AND

CORPORATE COMMUNICATIONS

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