Sibanye's results strike gold

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The company’s quarter results showed an increase in gold production from 379.500oz in June 2014 to 424.700oz in September, despite the group’s significant cost increases.

The cost increases can be attributed to annual wage increases, higher winter power tariffs and an increase in planned ore reserve developments.

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

The group reported a 10 per cent increase in production to 424,700oz in September 2014 from 387,800oz in September 2013.

“This was primarily due to a solid performance from the Kloof, Beatrix and Driefontein underground operations and the inclusion of a full quarter’s production from the Cooke Operations for the first time after the Cooke transaction was concluded in May 2014,” said [DATA SGL:Sibanye Gold].

Gold production from underground operations increased by nine per cent; while surface operations also reported a 10 per cent increase in production.

“The group continues to invest in its future, with a significant increase in ore reserve development year-on-year,” they said.

(READ MORE: Zimbabwe’s Jan-July gold output down 26% yr-yr)

The company had a 166.6 million US dollar operating profit in September, up from the 165.5 million US dollar operating profit in June.

Sibanye have improved their safety performance, following four fatal accidents at three of their operations.

The company predicts that production, ending 31 December, will continue at 1.61Moz.