Royal Bafokeng swings to loss on softer prices

Johannesburg - Royal Bafokeng Platinum [JSE:RBP] on Tuesday swung into a first-half loss as it battled low metal prices, a softer currency and reduced output.

The mid-tier producer posted a headline loss per share of 60.4 cents for the six months ended June 30, compared with an earnings of 116c a year ago.

Royal Bafokeng chief executive Steve Phiri in a statement described the period under review as its most challenging, adding that the company would slow construction and other spending at its Styldrift project due to lower prices.

The Styldrift project was 55.8% complete by June this year but Phiri said construction for the second half of the year "will be limited to activities which can be funded from excess operational cash flows" from the Bafokeng Rasimone Platinum Mine, one of RBPlat's joint ventures.

The spot price for Royal Bafokeng's main metal used in emissions-capping catalytic converters in cars fell to $940.50 an ounce on Tuesday, its lowest since February 2009.