Royal Bafokeng Platinum secures R2.1bn in cash-streaming agreement

It will settle the costs of its recent acquisition of Bafokeng Rasimone Platinum Mine. 

Royal Bafokeng Platinum (RBPlat) has struck a R2.1 billion deal to deliver gold to mining financier Triple Flag, the proceeds of which will be used to settle the costs of its recent acquisition of Bafokeng Rasimone Platinum Mine (BRPM). 

RBPlat will deliver 70 percent of its gold production to Triple Flag until 261,000 ounces are delivered, and 42 percent thereafter. Triple Flag will pay 5 percent of the spot gold price per ounce.

Gold is a by-product of platinum group metals (PGM) production at RBPlat’s mining operations and accounts for approximately 3 percent of the company’s revenue. 

In 2018, the company announced the acquisition of the remaining 33 percent in the BRPM joint venture from Anglo American Platinum’s wholly owned subsidiary, Rustenburg Platinum Mines

“This long-term streaming agreement represents a significant commitment of international capital in RBPlat and signals confidence in our business,” said RBPlat CEO Steve Phiri in a statement.

The liquidity injection will strengthen its balance sheet and free up cash, said Steve.