Sibanye Gold operating profit up 4 % - CNBC Africa

Sibanye Gold operating profit up 4 %


by Trust Matsilele 0

Sibanye Gold's operating profit is up by 4 per cent. PHOTO: commodityonline

The group recorded a normalised earnings of R1.065 billion for the six months ended 30 June 2014 in line with the R1.075 billion earned for the corresponding period in 2013.

(READ MORE: Sibanye Gold delivers increased operating profit)

Sibanye’s gold and uranium reserves increased by 66 per cent to 32.7Moz and 139 per cent to 102.8Mlb, respectively.

The company’s basic earnings increased by 84 per cent to 533 million rand for the six months ended 30 June 2014 with headline earnings of 652 million rand, 26 per cent lower year-on-year.

[DATA SGL:Sibanye Gold Limited] is upbeat over its performance with the chief executive saying that Sibanye’s operations continued to deliver according to expectations. 

“Sibanye’s operations delivered another robust operating result for the six months ended 30 June 2014, with production increasing by eight per cent year-on-year and costs declining in real terms,” Neal Froneman, chief executive officer of Sibanye Gold said.

Froneman noted that despite a two per cent year-on-year decline in the average gold price received to R443, 865 per kilogramme, operating and All-in cost margins have remained steady at 35 per cent and 17 per cent respectively with cash generated by operating activities marginally higher at 3.8 billion rand.

(READ MORES.Africa's Sibanye Gold lifts reserves estimate)

Sibanye is bullish about future prospects seeing possible increase in gold production.

“For the year ending December 2014, gold production is forecast to increase to approximately 50,000kg with the inclusion of seven months’ production from the Cooke Operations from the June month,” the company said.