RBPlat expects to return to profit, but investors are not impressed
Royal Bafokeng Platinum says the rebound in earnings is partly due to the settlement of a tax dispute with SARS the previous year
Royal Bafokeng Platinum (RBPlat) expects to report a return to profit for 2016. But its rebound was not as good as investors appeared to have expected, and its share price plunged 5.6% to R49.75 after it issued its trading update on Thursday. RBPlat expects to report on February 28 headline earnings per share (HEPS) for the year to end-December of between 80c and 91c. It reported a headline loss per share of 83.2 for 2015. The rebound in earnings was partly due to the previous year’s results suffering from the settlement of a tax dispute with the South African Revenue Service (SARS), the company said in its trading statement. Higher platinum group metals (PGMs) prices in 2016 helped revenue grow 9.8%. "The improved earnings combined with a strong cash flow contribution from on-reef development revenue at the Styldrift I project resulted in the group having a substantial cash balance at the end of the year," RBPlat said. "Cash preservation continues to be a priority and RBPlat remain...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.