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Higher Sibanye output ups profit off lower gold price, dividend declared

Sibanye CEO Neal Froneman

Sibanye CEO Neal Froneman

Photo by Duane Daws

20th February 2014

By: Martin Creamer

Creamer Media Editor

  

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JOHANNESBURG (miningweekly.com) – JSE- and NYSE-listed gold-mining company Sibanye Gold has increased profits in the six months to December 31 by increasing production and cutting costs in a lower gold-price environment and declared a maiden final dividend.

Sibanye CEO Neal Froneman reported 19%-higher operating profit to R4-billion from R3.4-billion in the six months ended June 2013.

The board approved a maiden final dividend of 75c a share for the six months, resulting in a total dividend of 112c a share for 2013 – the equivalent of a dividend yield of 9.1% at the closing share price on December 31.   

Gold production was 18% higher at 773 600 oz or 24 061 kg, restoring the quarterly production rate to 2010 levels.

The all-in cost was reduced by 10% from the previous six months to $1 043/oz (R336 848/kg) and the all-in cost margin was up 20% from 17% in the previous six months.

The fatal injury frequency rate of 0.10 per million person hours worked was an all-time low.

Net debt fell to R499-million from R1.9-billion at June 30.

The company made R2-billion in debt repayments, reducing gross debt to R2-billion and refinancing bridging loan finance to more favourable and less restrictive terms.

Gold reserves increased 46% to 19.7-million ounces, with a maiden uranium reserve declared of 43.2-million pounds.

Edited by Creamer Media Reporter

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