South African platinum producer Royal Bafokeng Platinum said on Tuesday its full-year profit plunged 35%, weighed down by weak platinum prices and higher restructuring costs.
Headline earnings per share (HEPS) for the year ended Dec. 2017 dropped to 56.4 cents ($0.047) compared with 86.7 cents a year ago.
HEPS is the main profit gauge in South Africa, which strips out certain one-off items.
The platinum producer said despite a recovery in the second half of the financial year, the first half to June 30 2017 was hit by a constrained metal prices and higher costs.
Capital expenditure for the year rose 91.8% to R 2.160 billion on the back of a ramp-up at its Styldrift I operations.
“Given the persistent PGM (Platinum Group Metals) market volatility, our approach remained one of prudently aligning capital spend and its timing with project progress requirements,” the firm said. ($1 = R11.83)