Business

Siyanda Bakgatla exceeds expectations, and doubles its revenues

By Dineo Faku 1h in the past

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JOHANNESBURG – SIYANDA Bakgatla Platinum Mine, which acquired Anglo American Platinum’s Union Mine two years in the past, has greater than doubled its revenues due to the beneficial platinum group metals (PGM) fundamentals and varied initiatives.

Chief monetary officer Imraan Osman mentioned yesterday that the business exceeded all expectations after producing optimistic revenues of R7.2 billion and earnings earlier than curiosity, taxes, depreciation, and amortisation of R3.3bn within the 2020 monetary year, representing a 108 p.c and 107 p.c respective enchancment in comparison with the prior year.

Osman mentioned the windfall resulted in R705 million revenue after tax and a R200m dividend fee to the shareholders, which embody native communities (27 p.c), and staff (7.3 p.c) who take part within the worker share scheme.

He mentioned the mine invested R16.2m in socio-economic improvement tasks inside the local people and labour sending areas, 4 p.c greater than the earlier monetary year.

“Since acquiring Union Mine from Anglo American Platinum in early 2018, our financial performance has improved significantly, we have stabilised the operations, and have done so with zero fatalities,” Osman mentioned.

Anglo American Platinum bought its 85 p.c curiosity in Union Mine to Siyanda.

As a part of the deal Siyanda was anticipated to promote focus produced by Union Mine to Anglo American Platinum for a interval of seven years from the efficient date of the Transaction whereafter Anglo would toll deal with focus for the remaining lifetime of Union Mine, each on pre-agreed business phrases.

The business achieved 3 million fatality free shifts coupled with a 7 p.c

enchancment within the lost-time-injury-frequency-rate. The company additionally signed a 3-year complete wage settlement with the Association of

Mineworkers and Construction Union till 2022 which has ensured a secure labour surroundings for the workforce of seven 000, together with contractors.

Siyanda mentioned it had spent in extra of R430m in improvement expenditure to open new working areas and create additional operational flexibility underground.

“This created the ability for the mine to improve throughput, while extracting higher quality tons from its underground operations,” Osman mentioned.

“The higher production, coupled with recovery improvements on the metallurgical circuit, resulted in a 20 percent increase in production of 308 536 4E ounces against the 2017 performance under the previous management.”

Osman mentioned 2020 was a difficult year, with the mine being briefly closed beneath lockdown laws from March 26 to April 20.

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