Harare – JSE- and NYSE-listed Sibanye-Stillwater will consult with stakeholders about the possible restructuring of its gold operations and associated services, as a result of ongoing financial losses.
Sibanye, an independent mining group domiciled in South Africa is a 50 percent joint venture partner in Mimosa, a PGM operation in Zimbabwe.
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 a trading statement released on Thursday, the miner said it expects to report an attributable loss of R1-billion, or $77-million, for the year ended December 31, 2018, compared with the attributable loss of R4.4-billion, or $333-million, reported for the 2017 financial year.
The narrowed loss was offset by losses from the gold operations owing to safety incidents in the first half of the year and the ongoing strike by Association of Mineworkers and Construction Union (AMCU) members, as well as significant declines in deferred tax rate adjustments relative to 2017.
CEO Neal Froneman said contemplating potential restructuring of this nature is never taken lightly and we are aware of the possible impact on many of our colleagues, adding that best attempts to address the ongoing losses at these operations, have, however, been unsuccessful and sustaining these losses may threaten the viability of our other operations.
Meanwhile, the company expects to report a basic loss a share of 44c, or $0.03, for the year, compared with the basic loss a share of 229c, or $0.17, in 2017.
Sibanye also expects to report headline earnings a share of 65c, or $0.05, compared with the headline loss a share of 12c, or $0.01c, for 2017.
These figures represent an 81% reduction in the basic loss a share and a 642% increase in respect of headline earnings a share. Sibanye will release its full results on February 21.
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
Equity Axis News
