Sibanye Gold forecasts lower profits

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GoldBar Reuters.

Johannesburg - South African gold producer Sibanye Gold said it expected headline earnings per share to be at least 20 percent lower in the six months to end-June, due to an increase in shares issued after it was spun-off from Gold Fields and made acquisitions.

The mining company said it expected higher production in the full financial year after acquiring some operations of smaller rival Wits Gold and also Cooke mines.

“Sibanye is confident that these acquisitions will support a sustained dividend yield for longer,” it said.

Sibanye said it expected gold production in the first half of 2014 to be 3.6 percent higher than a year ago at 22,150kg.

Production for the year ending in December 2014 should increase to 49,000kg.

The company has expressed interest in strike-hit Anglo American Platinum's assets in the platinum belt.

“Growth in the platinum sector is consistent with Sibanye's strategy to grow the business in order to sustain its dividend profile and with its South Africa focus,” Sibanye.

Its shares fell as much as 4 percent as the Johannesburg Stock Exchange opened, but rebounded and were up 0.22 percent at 27.56 rand by 10:50 SA time. - Reuters



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