Johannesburg - Black-owned Royal Bafokeng Platinum (RBPlats) slid yesterday on the JSE, along with other commodity related stocks as China posted economic data that signaled slowing demand from the world’s second biggest economy. The share drop overshadowed RBPlats higher production figures for the September quarter.
RBPlats fell 4.68 percent yesterday to R29.55, while Northam Platinum dropped by 3.40 percent to R32.36 and Lonmin fell 13.42 percent to R5.87.
For the quarter to September, RBPlats yesterday reported a 3 percent increase in platinum, palladium, rhodium and gold ounces-in-concentrate to 82 900 ounces in the period under review from 80 400 ounces in the September quarter last year.
Seten Naidoo, a mining equity analyst at SBG Securities, said production was higher due to excess stocks from the first half of 2015 being processed in the quarter and added that it was a “good set of operational results”.
“One should not read too much into the share price decline on the day as platinum group metals prices traded weaker on the day and RBPlats traded largely in line with its peers. RBPlats is one of the preferred platinum stocks on the JSE, given the growth Styldrift mine has, its attractive position on the cost curve and enviable labour relations and black economic empowerment credentials,” he said.