Goldfield’s Sibanye Gold decision pays off as profit soars

The company reported a 63% increase in operating profit to R3.3-billion for its interim results to June 2013 despite a sharp drop in the gold price. 

Sibanye Gold has brought its net debt down 51% to R1.9-billion and has pushed up gold production 23% to 20 413kg. 

In a statement, management attributed the strong results to "a greater focus and control at operational level, and the initial benefits from the implementation of Sibanye Gold's new operating strategy". 

The company said the first quarter of 2013 was affected by a number operational disruptions like the fire at Beautrix West and a Driefontein power outage, but the second quarter was "significantly" better. 

Neal Froneman, chief executive of Sibanye Gold, said he was pleased that improved operational trends continued to improve in the third quarter. 

With regard to the possible impact of the lower gold price, Froneman said: "Sibanye Gold planned its reserves at R380 000 per kilogram and its production for 2013 at R400 000 per kilogram, and at this stage has not had to review those plans. We began implementing cost reduction initiatives in February, well before the gold price began to decline and have not had to take remedial action or gold price related impairments."

Greater flexibility
Sibanye Gold restructured debt on July 8 this year. The company said it would give it "greater financial flexibility and remove the constraint on paying an interim dividend". 

One of the results of the restructuring was to allow the company flexibility to fo consider increasing the final dividend from 25% to 35%. 

On the issue of wage negotiations between the South African gold mining industry and trade unions, Froneman said that they would make every effort to avoid a strike, but said it has made provision for an extended strike should one occur.

Froneman said Sibanye Gold's performance supports his believe that the company's assets "despite having been in operation for many decades, are still some of the best gold mines in the world and, will continue to be so for many years to come".

Sibanye Gold has three principal operations, namely Kloof and Driefontein in the West Wits area and Beatrix in the Free State. Sibanye Gold is one of the largest gold producers in South Africa and among the top 10 largest gold producers in the country.

Advertisting

‘Judge President Hlophe tried to influence allocation of judges to...

Deputy Judge President Patricia Goliath accuses Hlophe of attempting to influence her to allocate the case to judges he perceived as ‘favourably disposed’ to former president Jacob Zuma

SAA grounds flights due to low demand

SAA is working to accommodate customers on its sister airlines after it cancelled flights due to low demand

Isabel dos Santos did not loot Angola alone

Once again, Western auditing and consulting firms shamelessly facilitated corruption on an international scale

Lekwa municipality won’t answer questions about why children died in...

Three children are dead. More than a dozen homes have been gutted by fires in the past six months. And, as...
Advertising

Press Releases

Upskill yourself to land your dream job in 2020

If you received admission to an IIE Higher Certificate qualification, once you have graduated, you can articulate to an IIE Diploma and then IIE Bachelor's degree at IIE Rosebank College.

South Africans unsure of what to expect in 2020

Almost half (49%) of South Africans, 15 years and older, agree or strongly agree that they view 2020 with optimism.

KZN teacher educators jet off to Columbia University

A group of academics were selected as participants of the programme focused on PhD completion, mobility, supervision capacity development and the generation of high-impact research.

New-style star accretion bursts dazzle astronomers

Associate Professor James O Chibueze and Dr SP van den Heever are part of an international team of astronomers studying the G358-MM1 high-mass protostar.

2020 risk outlook: Use GRC to build resilience

GRC activities can be used profitably to develop an integrated risk picture and response, says ContinuitySA.

MTN voted best mobile network

An independent report found MTN to be the best mobile network in SA in the fourth quarter of 2019.

Is your tertiary institution is accredited?

Rosebank College is an educational brand of The Independent Institute of Education, which is registered with the Department of Higher Education and Training.

Is your tertiary institution accredited?

Rosebank College is an educational brand of The Independent Institute of Education, which is registered with the Department of Higher Education and Training.