JOHANNESBURG – Sibanye-Stillwater said on Wednesday it expects its full-year attributable loss to be over $100-million larger than the guidance given in a trading statement last week, following a review of tax changes in the US.
The gold and platinum miner's shares fell into negative territory on the news that it expects the loss to reach R2.5-billion rather than the R1-billion previously guided because of the tax changes.
"A further review of the effects . . . has resulted in an amendment to deferred tax," it said in a stock exchange announcement.
"This change has no impact on the 2018 cash flows and is expected to unwind over the life of the Stillwater operations."
Sibanye, which produces platinum and palladium in the United States, said it now expects a headline loss per share of 1 cent, compared with 12 cents in 2017. It had been forecasting headline earnings per share of 65 cents.
Headline earnings per share is a key profit measure in South Africa that strips out one-off items.
The company said a number of tax changes were made in New Jersey in the six months to December, the most significant of which resulted in tax being calculated together on all of the company's US entities.
This resulted in a revised deferred tax rate for Sibanye of a little less than R1.5-billion.
"We will further investigate tax planning alternatives to minimise this additional deferred tax," Sibanye's statement said.
The company reports full-year results on Thursday.