A sharp increase in costs at Royal Bafokeng Platinum (RBPlat) elicited a barrage of questions at the interim results presentation this week . Cost control is critical as platinum and palladium prices are still weak and RBPlat is trying to conserve cash to complete construction of its Styldrift mine.Total cash operating costs rose 8% to R1.3bn in the six months to June compared with the same period last year and against inflation of 6.35% . This reflected costs at the BRPM mine, since Styldrift is capitalising costs until it moves into its operational phase in the first quarter of next year. RBPlat realised a 9% higher price for its basket of platinum group metals in the first half of this year, only because of rand weakening, since in dollars prices dropped by between 13% and 38%.RBPlat CEO Steve Phiri says the biggest contributors to increased costs were labour, contractors and utilities.CFO Martin Prinsloo says the 9.6% rise in the cost of utilities was restrained. About 38% of wa...
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