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Gold strike to push Sibanye-Stillwater to interim loss

27th August 2019

By: Creamer Media Reporter

     

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Gold and platinum-group metals (PGMs) miner Sibanye-Stillwater expects to report an attributable loss of R265-million for the six months ended June 30, compared with a R77-million profit for the six months ended June 30, 2018.

The loss is mainly as a result of a five-month strike at its South African gold operations.

Sibanye on Tuesday noted in a trading update to shareholders that other factors had also negatively impacted on the company's interim results.

These include the deferral of revenue from the Rustenburg operations owing to the transition from the purchase of concentrate to a toll processing arrangement; the recognition of a fair value loss on the dollar convertible bonds; nonrecurring items, include restructuring costs from the South Africa gold operations; other costs as a result of the strike at its gold operations; and a R502-million increase in mining tax.

These were partially offset by significantly higher profitability at Sibanye's South African and US PGM operations as a result of higher platinum and palladium (2E) and platinum, palladium, rhodium and gold (4E) basket prices; and a $110-million deferred tax credit recognised by the US PGM operations, besides others.

The company will publish its interim results on August 29.

 

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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