Johannesburg - Sibanye Gold Ltd., the South African miner spun off by Gold Fields Ltd. this year, said third-quarter earnings rose 10 percent as production rose and costs fell.
Operating profit was 2 billion rand ($201 million) in the three months to Sept. 30, compared with 1.8 billion rand in the previous quarter, the Westonaria-based company said today in a statement.
Production rose 8.6 percent to 12,061 kilograms while all-in costs declined 4.1 percent to 339,847 rand per kilogram.
Sibanye’s total shareholder returns have outperformed former parent Gold Fields by 44 percent since the two separated in February.
The company announced its first dividend last month after profit and output increased in the first half.
The company was formed as a collection of cash-generating South African gold-mining assets, while Gold Fields retained growth mines in Australia, Peru and Ghana.
“We have arrested the negative trends that have characterised these operations over the last decade,” chief executive Neal Froneman said in the statement.
The stock fell 5.3 percent to 13.53 rand a share in Johannesburg trading yesterday, valuing the company at about 9.9 billion rand. - Bloomberg News