South Africa-based Royal Bafokeng Platinum saw a 20 per cent drop in profits for the first half of 2011 as higher operating costs bit into its bottom line.

The pgm producer said diluted headline earnings per share totalled 105 cents, lower than the 132 cents recorded in the correspondent period in 2010.

Operating costs are also expected to rise at a higher rate for the rest of the year as a result of rising input costs and higher wages, following a three-year wage deal with South Africa's National Union of Mineworkers.

However, production for the first half of the year remained steady, totalling 142,100 oz of platinum, palladium, rhodium and gold. Full-year production is also expected to remain at a similar level to 2010, when Royal Bafokeng Platinum produced 288,100 oz of pgms.

The company recently announced that it hopes to fund its expansion plans, including the Styldrift II project, through cash it has generated through its existing operations.

Source:

RBPlat's H1 earnings fall, production steady (16/08/11)
 

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