Sibanye expects 20% drop in interim HEPS - CNBC Africa

Sibanye expects 20% drop in interim HEPS

Earnings

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Sibanye Gold is a South African gold mining company. PHOTO: Getty Images

“This is as a result of an increase in the weighted average number of shares in issue, from 556,412,788 for the six months ended 30 June 2013 to an estimated 771,294,404 for the six months ending 30 June 2014,” [DATA SGL:Sibanye Gold] said.

“The weighted average number of shares in issue for the six months ended 30 June 2013 was lower as a consequence of only 1,000 shares in issue at the unbundling of Sibanye by Gold Fields. On 16 May 2014, 156,894,754 new Sibanye ordinary shares were issued to Gold One, following the conclusion of the acquisition of the Cooke underground and surface operations.”

(READ MORE: South Africa's Sibanye Gold acquires 75 per cent of Gold One)

The South African gold mining company also indicated that the Cooke operation would be consolidated into Sibanye from June 2014 and that the previous Sibanye production guidance provided on 24 April 2014 excluded any production from these assets.

“The revised gold production forecast for the six months ending 30 June 2014, including one month of gold production from the Cooke operation, is 22,150kg. The total cash cost forecast is 290,000 rand per kg,” said Sibanye Gold.

“Gold production for the 2014 financial and calendar year ending 31 December 2014 is forecasted to increase to 49,000kg, which includes approximately 4,900kg of gold production from the Cooke operation.”

It added that the total cash cost, including the Cooke operation is forecast to increase from 270,000 rand per kg to 285,000 rand per kg.

Sibanye also announced recently that it had produced and shipped its first consignment of uranium to the Nuclear Fuels Corporation of South Africa.

(READ MORE: Sibanye ships first batch of uranium)

“The revenue derived from this uranium by-product will be offset against costs, lowering the total cost of producing gold from the Cooke operation,” Sibanye Gold chief executive, Neal Froneman had said.

“As both gold and uranium production rises in the next 18 months, we anticipate a decrease in costs and increase in profitability at the Cooke operation.” 

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