Sibanye's gold production up 13% - CNBC Africa

Sibanye's gold production up 13%

Earnings

by Trust Matsilele 0

Sibanye gold production up 13 per cent for the six months and financial year ended 31 December 2014.

“Gold production increased by 13 per cent to 27,289kg (877,400oz) compared with the six months ended 31 December 2013 with total cash cost of R298,520/kg (US$847/oz) and All-in sustaining cost of R376,687/kg (US$1,069/oz),” said the group in a statement.

The group also saw a dividend of 62 South African cents per share being declared, resulting in a total annual dividend of 112 South African cents per share amounting to approximately one billion rand in cash returned to shareholders.

(READ MORE: S. Africa’s Sibanye Gold lifts reserves estimate)

The group says its revenue was driven by the rand gold price and the level of gold produced and sold during the year.

“Revenue increased by 18 per cent to 11.9 billion rand (US$1,093 million) for the six months ended 31 December 2014 from 10.1 billion rand (US$1,007 million) for the comparable period in 2013.”

According to the company, this was primarily due to a 13 per cent increase in gold production from 24,061kg (773,600oz) to 27,289kg (877,400oz).

“On a like-for-like basis, excluding the contribution from Cooke, gold production was marginally lower period-on-period at 23,627kg (759,600oz), due to operational disruptions linked to intermittent power supply and lower yields at Driefontein.”

[DATA SGL:Sibanye Gold Limited] also reported four billion rand operating profit with net debt of 1.5 billion resulting in a net debt to EBITDA ratio of 0.2 times.

Neal Froneman, chief executive officer of Sibanye Gold said, 2014 was a year of operational and financial consolidation for Sibanye.

“Our primary objective was to entrench the new operating model and operational structures, which had been successfully, implemented at the Beatrix, Driefontein and Kloof operations (“Beatrix, Driefontein and Kloof”) in 2013, whilst integrating the newly acquired Cooke Operation (“Cooke”) into the Group,” he said.

“At the same time, cognisant of the importance of ensuring the consistency and
sustainability of our performance, we established dedicated internal capacity focused on securing the long term future of our company.”

(READ MORE: Sibanye Gold production in line with guidance)

Froneman said a dedicated projects team was assessing all organic opportunities within the group while a new business development function was established to consider external, value accretive opportunities, ensuring that the operations focus on delivery. 

“We have also established a Safe Technology function which will explore ways to modernise the operations, by using new technologies to improve working conditions and make the working environment safer for employees, while at the same time improving productivity and reducing costs.”  

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