JOHANNESBURG (miningweekly.com) – Dual-listed Sibanye Gold was set to shed a further 1 500 to 2 000 jobs through “rightsizing” the organisation, as it continued the restructure that enabled the group to bounce back from subpar performance during the second half of last year.
Sibanye on Tuesday posted headline earnings of R880.8-million for the six months to June, which was a substantial increase on the R453.4-million recorded during the six months to the end of December.
But headline earnings dropped sharply from the R2.52-billion reported in the corresponding period of 2012, as an underground fire at its Beatrix mine in February slowed production.
Gold production fell by 5% year-on-year to 656 300 oz, but improved by 23% when compared with the performance of the December half-year when labour unrest hurt output.
Net profit for the period fell to R289.6-million, from R455.6-million in the half-year to December and R2.5-billion during the first six months of last year, when the group was still bundled in Gold Fields.
The group impaired the mining assets of its Beatrix West section, which is undergoing an 18-month closure, by R821-million in the period under review.
The gold producer generated revenue of R9.2-billion in the interim period, up from the R8.99-billion and R7.6-billion achieved in the corresponding first half and preceding December half-year respectively.
Net operating profit of R1.9-billion was up from the R859-million recorded in the six months to December, but down on the R2.4-billion achieved during the six months to June 2012.
The 35 000-employee Sibanye Gold, a spin-off from Gold Fields, progressed its restructuring initiatives, which had resulted in a reduced headcount of 2 729 through a R253-million voluntary separation packages process at the newly separated Kloof and Driefontein operations (formerly KDC) and a R74-million retrenchment process at Beatrix West section.
Sibanye’s corporate and regional operations were combined into the corporate office in Libanon Business Park, in Westonaria, as the organisation was flattened to enable experienced and higher skilled miners to shift closer to the face.
The company also intensified operational focus, maximised its plant use and refocused and streamlined shared services.
Going forward, underground productivity would be dealt with through effective shift arrangements and use, while the group would fast-track its potential fourth mine, the West Rand tailings retreatment joint venture, the prefeasibility of which was currently under review and would be released in September.
Sibanye was developing “stronger for longer” life-of-mine plans, examining secondary reef potential, high-grade pillars and remnant areas.
Sibanye’s aim of ensuring over R2-billion available cash was realised, in an effort to ensure that should the current wage talks hit an impasse, the company was in a position to “ride out the storm”.
The company also reported 51% lower debt at, R1.9-billion, during the interim period under review, from the R3.9-billion at December 2012.