JOHANNESBURG (miningweekly.com) – Dual-listed Sibanye Gold had delivered a “pleasing” performance since listing in Johannesburg and New York three months ago, despite a decline in the group’s share price triggered by the rout in the gold price, chairperson Sello Moloko said on Monday.

Speaking at Sibanye’s inaugural annual general meeting, held at its office in Westonaria, Gauteng, he said that the sharp drop in the gold price had triggered a “wave of selling, as analysts and the media suggested that the declining gold price threatened the viability of the company’s assets”.

While the precious metal recovered from its biggest two-day loss in 30 years during April, newswire Reuters reported that analysts had questioned gold’s value as part of an investor portfolio.

Since listing on the JSE at R13.05 a share on February 11, Sibanye’s stock had been volatile – trading as high as R17.50 a share before falling to R12.85 apiece in the beginning of the second week.

Shares recovered to R14.24 in March, but from mid-April, the stock embarked on a downward trend to its current trade of R8.35 apiece.

However, Moloko commented that he was “happy” about the company’s performance, citing trade in excess of Sibanye’s market capitalisation since February.

Further, the exit of US shareholders aiming to reduce their exposure to the South African mining industry had not been “as significant as expected”, recording only an 11% reduction.

Currently, US shareholders held a 39% stake, with the remaining shareholding in the hands of South Africans.

Moloko also cited steady gold output for the March quarter, seasonally the worst production quarter of any year.

Despite several production disruptions and a slow start-up in January following the Christmas break, Sibanye delivered a 36% increase in total production to 299 400 oz in the March quarter, from 220 000 oz in the December quarter.

The company generated R1.5-billion in operating profit and free cash flow of R590-million – a 121% rise on the previous quarter.

Notional cash expenditure was down 22% quarter-on-quarter at R381 347/kg and “comfortably lower than the R400 000/kg at which the market thought we would be at risk”, he added.

Sibanye had also achieved a net debt reduction, from R3.9-billion in December, to R2.8-billion by April 30.

Despite holding a positive outlook, he said that the June quarter was likely to be challenging, citing rising tensions ahead of wage negotiations with organised labour, which were set to start at the end of May.

The company previously forecast a 14% rise in group production to 340 000 oz during the June quarter, with full-year production expected to be 1.29-million ounces.

Total cash costs were expected to be 5% lower than in the March 2013 quarter, at $975/oz.

Meanwhile, Sibanye reported the re-election of Timothy Cumming, Barry Davison, Nkosemntu Nika and Susan van der Merwe to the board.

Keith Raynor was re-elected as a member and chairperson of the audit committee. He was joined by Richard Menell, Nika and van der Merwe, who were re-elected as members.