Business News 25.8.2016 10:21 am

Gold price increase sends Sibanye profits past R5bn

Picture: Thinkstock

Picture: Thinkstock

Sibanye chief executive Neal Froneman said the first half of 2016 had been very positive for mining companies and gold producers in particular.

Sibanye Gold has on Thursday reported strong financial results for the six months ended in June, driven largely by a higher prevailing rand gold price as the operating profit increased by 128 percent to R5.4 billion, up from R2.4 billion.

Sibanye said this was underpinned by solid operational delivery from both the Gold and Platinum divisions.

Sibanye declared an interim dividend of R785 million or 85 cents a share.

A 31% increase in the average rand gold price to R603.42 a kilogram contributed positively to Sibanye’s earnings.

The Platinum Division, which was incorporated in April following the conclusion of the Aquarius Platinum acquisition, delivered a record quarterly production of 92.77 ounces, resulting in an attributable operating profit of R72 million.

Sibanye declared an interim dividend of R785 million or 85 cents a share.

The firmer gold and platinum prices and weak rand have driven a very good financial result, underpinned by a solid operational performance.

This compares with an interim dividend of R91 million or 10 cents a share declared in the first half of 2015, and the total dividend for the year ended in December, of R917 million or 100 cents a share.

Sibanye chief executive Neal Froneman said the first half of 2016 had been very positive for mining companies and gold producers in particular.

“The firmer gold and platinum prices and weak rand have driven a very good financial result, underpinned by a solid operational performance,” Froneman said.

“This has enabled Sibanye to continue to generate strong cash flow, maintain a robust balance sheet and continue to deliver on its commitment to pay industry leading dividends.”

Sibanye said barring any unplanned disruptions, the gold division should deliver a significantly improved performance in the second half of the year as the production guidance of 50 000 kilograms remained unchanged, although the future of Cooke 4 shaft was currently under review.

– African News Agency (ANA)

today in print