Sibanye reports record quarterly production and maintains annual guidance
Salient features for the quarter ended 30 September 2014
- Record gold production of 13,210kg (424,700oz)
- Operating profit of R1.78 billion (US$167 million)
- All-in sustaining costs of R384,777/kg (US$1,116/oz)
Westonaria, 28 October 2014: Sibanye Gold Limited (JSE: SGL & NYSE: SBGL) reported record gold production 13,210kg (424,700oz) for the September 2014 quarter, 10% higher than during comparable quarter in 2013, resulting in an operating profit of R1,784 million (US$166.6 million). This was primarily due to a solid performance from its Kloof, Driefontein and Beatrix underground operations and the inclusion of a full quarter’s production from the Cooke Operations for the first time.
The Group continues to invest in its future, with a significant increase in ore reserve development year-on-year. The quarter also saw significant cost increases, as a consequence of the 2014 annual wage increases which were implemented from July, and the higher winter power tariff. These above inflation cost increases, resulted in All-in sustaining cost increasing by 6% from the previous quarter to R384,777/kg (US$1,116/oz).
Neal Froneman, CEO of Sibanye, commenting on the September 2014 quarter said: “Sibanye is well on track to deliver on annual guidance. Although we had a solid quarter from the majority of our operations we have seen our margins decrease to 11% during this quarter as we have incurred both winter electricity price tariffs and the 2014 annual wage increases. The management team will, as it has in the past, work out these above inflation cost increases over time. Sibanye’s operating profit remained steady at R1,784 million (US$166.6 million) for the quarter, and will continue to underpin the company’s benchmark dividend policy”.
Forecast production for the year ending 31 December 2014 remains unchanged at 50,000kg (1.61Moz). Total cash cost is forecast at approximately R295,000/kg (US$850/oz), All-in sustaining cost R372,000/kg (US$1,070/oz) and All-in cost at R380,000/kg (US$1,095/oz).
James Wellsted Head of Investor Relations Sibanye Gold Limited +27 83 453 4014 email@example.com