Harare – In a market release of operating update and trading statement for the six months ended 30 June 2018 Sibanye-Stillwater Group says it expects to report an attributable profit to shareholders of R77 million (US$6 million) for H1 2018, compared with an attributable loss of R4.804 million (US$364 million) for the six months ended 30 June 2017 (H1 2017).

The Group said the significant improvement year-on-year primarily reflects inter alia, the improved operational performance from their PGM operations, the inclusion of a full six months from the United States (US) region, compared with two months in H1 2017 and no material non-recurring items.

Non-recurring items which were recognised during H1 2017 included impairments of R2,796 million, an occupational healthcare obligation of R1,077 million , and transaction costs of R402 million.

Resultantly, the Group expects to report significantly increased earnings per share (EPS) of 3 cents (0.28US cents) and headline earnings per share of 4 cents (0.36 US cents) for H1 2018, representing a 101 percent increase in EPS and a 103 percent increase in HEPS, year-on-year.

The Group reported a 298 cents (23 US cents) loss per share and 135 cents (9 US cents) headline loss per share for H1 2017.

The financial information on which this trading statement is based has not been reviewed or reported on by Sibanye-Stillwater’s auditors.

During the period under review the Group said the Southern Africa (SA) PGM operations produced approximately 17,700kg (569koz) of 4E PGMs at an All-in sustaining cost (AISC) of approximately R10.110/4Eoz (US$820/4Eoz) for H1 2018.

It said this solid operational result translates into an annual guidance which will target the top end of 4E PGM production guidance and AISC towards the bottom end of guidance.

“We are also pleased to advise that the average 4E basket price increased by 8 percent, from R12.006/4Eoz in H1 2017 to R12.941/4Eoz in H1 2018.

“This basket price increase together with the good operational performance has resulted in the adjusted EBITDA  from the SA PGM operations more than doubling relative to H1 2017, to approximately R1 billion (US$81 million).

“The United States (US) PGM operations have produced approximately 294koz of 2E PGMs at an AISC of approximately US$653/2Eoz. This is also a solid operational performance in line with annual production and cost guidance for 2018,” it said.

Sibanye-Stillwater said the average 2E basket price increased from US$850/2Eoz in H1 2017 to US$993/2Eoz in H1 2018, resulting in expected adjusted EBITDA from the US region of approximately R1.9 billion (US$150 million) and this is significantly more than the same period last year where the US PGM operations were only included for 2 months in the H1 2017 results.

It said the SA gold operations have produced approximately 18,610kg (600koz) of gold, at an AISC of approximately R520.000/kg (US$1,315/oz) despite the very significant safety related disruptions on the SA gold operations.

At an average gold price of R519.994/kg in H1 2018, the SA gold operations are expected to contribute approximately R1 billion (US$82 million) to Group adjusted EBITDA compared to R2.3 billion (US$171m) for H1 2017.

The average exchange rate in H1 2018 was R12.31/US$ compared with R13.21/US$ in H1 2017.

Sibanye is an independent mining group domiciled in South Africa. It currently owns and operates gold, uranium and platinum group metals ("PGMs") operations and projects throughout the Witwatersrand Basin and the western limb of the Bushveld Complex in South Africa.

 In addition, Sibanye is a 50 percent joint venture partner in Mimosa, a PGM operation in Zimbabwe.

Sibanye is the largest individual South African producer of gold, one of the ten largest gold producers globally and the world's fifth largest producer of PGMs.

Sibanye's shares are traded on the JSE under the symbol "SGL" and its American Depositary Receipts are traded on the NYSE under the symbol "SBGL".