Trading statement and updated production forecast for the six-months ending 30 June 2014 and year ending 31 December 2014
Sibanye (JSE: SGL & NYSE: SBGL) wishes to advise shareholders, in compliance with paragraph 3.4(b) of the JSE Listing Requirements, that headline earnings per share (HEPS) for the six months ending 30 June 2014 are likely to be 20% lower than during the comparative period in 2013. 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. A further, more detailed announcement will be released once a more definitive range can be given.
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 the Sibanye listing date on 11 February 2013, Sibanye’s issued shares increased to 731,648,614.
On 16h May 2014, 156,894,754 new Sibanye ordinary shares were issued to Gold One International Limited (Gold One), following the conclusion of the acquisition of the Cooke underground and surface operations.
The financial information on which the trading statement has been based has not been reviewed or reported on by the Company’s auditors.
The Cooke Operation will be consolidated into Sibanye from June 2014. 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 (approximately 650kg (21,000oz)) from the Cooke Operation, is 22,150kg (690,000oz). The six months ending 30 June 2014 total cash cost forecast is R290,000/kg (US$850/oz – at an average exchange rate of R10.60/US$ for the period) and All-in cost R365,000/kg (US$1,070/oz).
Gold production for the 2014 financial and calendar year ending 31 December 2014 is forecasted to increase to 49,000kg (1.58Moz), which includes approximately 4,900kg (158,000oz) of gold production from the Cooke Operation. Total cash cost including the Cooke Operation is forecast to increase from R270,000/kg (US$800/oz) to R285,000/kg (US$845/oz – at an average exchange rate of R10.50/US$ for the year) and All-in cost from R360,000/kg (US$1,070/oz) to R365,000/kg (US$1,080/oz).
Head of Investor Relations
Sibanye Gold Limited
+27 83 453 4014
J.P. Morgan Equities South Africa (Proprietary) Ltd
FORWARD LOOKING STATEMENTS
Certain statements in this document constitute ‘forward looking statements’ within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Group to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or uranium; hazards associated with underground and surface gold and uranium mining; labour shortages and disruptions; availability, terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations and new legislation affecting mining and mineral rights; the outcome and consequence of any potential or pending litigation or regulatory proceedings or other environmental, health and safety issues; power disruptions and cost increases; changes in exchange rates, currency devaluations, inflation and other macro-economic factors; industrial action; temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the HIV/AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document.
The Group undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.