Sibanye Gold declares dividend on strong June quarter
JOHANNESBURG (miningweekly.com) – Gold mining company Sibanye on Wednesday declared an interim dividend on the back of a strongly improving June quarter and falling all-in costs.
Salient features included half-year gold production of 713 900 oz and a 6%-lower all-in sustaining June-quarter cost of $1 054/oz.
With operating profit increasing from R744-million in the March quarter to R1.62-billion in the June quarter, Sibanye will pay an interim dividend of 10c a share on September 7 on lowered net debt and 12%-higher gold reserves of 19.9-million ounces.
Barring any unplanned disruptions, Sibanye should deliver a significantly improved second-half performance, CEO Neal Froneman said in a Stock Exchange News Service announcement.
The impact of load-shedding by power utility Eskom on the JSE- and NYSE-listed company resulted in R125-million in lost revenue.
The company reported project progress at Kloof and Driefontein below-infrastructure initiatives and the West Rand Tailings Retreatment project (WRTRP), the economic viability of which has been boosted by addition of the Cooke tailings resources.
The internal technical and financial review of the feasibility of the WRTRP has confirmed its robust economic viability.
The uranium module will now be included as part of the initial execution phase, as will Cooke’s uranium surface resources, with Driefontein’s high gold grade surface resources. The project has an internal rate of return of more than 15% and a nine-year payback.
Processing the remaining Sibanye surface resources, selling by-product sulphuric acid and possible taxation benefits relating to capital expenditure offsets at Driefontein and Kloof, conservatively delivers a net present value of between R5.5-billion to R6-billion, said Froneman, who added that the permitting process for the WRTRP had been initiated.
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