Sibanye reports robust results

The mining group -- which operates Kloof and Driefontein in the west Witwatersrand region, and Beatrix in the Free State -- declared an interim dividend of 50 cents a share on Wednesday.

 

It said that for the six months ended June 30, production had increased eight percent year-on-year, and costs had declined in real terms.

 

"Despite a two percent year-on-year decline in the average gold price received to R443,865/kg (US1,293/oz), operating and all-in cost margins have remained steady at 35 percent and 17 percent respectively," Sibanye said in a statement.

 

Cash generated by operating activities increased marginally to R3.886 billion (US364 million).

 

"Consistent with its strategy of rewarding shareholders with industry benchmark dividends, the group declared an interim dividend of 50 cents per share, equivalent to 42 percent of normalised earnings."

 

The comparable dividend declared last year was 37 cents per share.

 

The largest individual producer of gold in South Africa, Sibanye said production of the precious metal had increased by eight percent to 22,143kg (711,900oz), compared to the corresponding period in 2013.

 

Operating cost declined by 10 percent to R815/ton.

 

"All-in cost of R367,601/kg (US1,071/oz) and total cash cost of R291,212/kg (US848/oz), [were] in line with forecasts."

 

Sibanye said its newly acquired Cooke mines had "made a positive contribution to operating profits and operating cash flow after capex in the first month of incorporation".

 

Gold reserves had increased by 66 percent to 32.7Moz, and uranium reserves had increased by 139 percent to 102.8Mlb.

 

 (File Photo: Gallo Images)