JOHANNESBURG - SIYANDA Bakgatla Platinum Mine, which acquired Anglo American Platinum’s Union Mine two years ago, has more than doubled its revenues thanks to the favourable platinum group metals (PGM) fundamentals and various initiatives.
Chief financial officer Imraan Osman said yesterday that the business exceeded all expectations after generating positive revenues of R7.2 billion and earnings before interest, taxes, depreciation, and amortisation of R3.3bn in the 2020 financial year, representing a 108 percent and 107 percent respective improvement compared to the prior year.
Osman said the windfall resulted in R705 million profit after tax and a R200m dividend payment to the shareholders, which include local communities (27 percent), and employees (7.3 percent) who participate in the employee share scheme.
He said the mine invested R16.2m in socio-economic development projects within the local community and labour sending areas, 4 percent more than the previous financial 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 said.
Anglo American Platinum sold its 85 percent interest in Union Mine to Siyanda.
As part of the deal Siyanda was expected to sell concentrate produced by Union Mine to Anglo American Platinum for a period of seven years from the effective date of the Transaction whereafter Anglo would toll treat concentrate for the remaining life of Union Mine, both on pre-agreed commercial terms.
The business achieved 3 million fatality free shifts coupled with a 7 percent
improvement in the lost-time-injury-frequency-rate. The company also signed a 3-year comprehensive wage agreement with the Association of
Mineworkers and Construction Union until 2022 which has ensured a stable labour environment for the workforce of 7 000, including contractors.
Siyanda said it had spent in excess of R430m in development expenditure to open new working areas and create further operational flexibility underground.
“This created the ability for the mine to improve throughput, while extracting higher quality tons from its underground operations,” Osman said.
“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 said 2020 was a challenging year, with the mine being temporarily closed under lockdown regulations from March 26 to April 20.
BUSINESS REPORT