Johannesburg – Sibanye – a South African gold and
platinum miner – on Thursday reported record annual operating profit for the
year.
The group says its operating profit of R10.5 billion for
the year to December represented a 60 percent increase year-on-year.
Group operating profit of R5.1 billion for the second
half of 2016 was 29 percent higher than for the previous corresponding period.
Sibanye says the gold division contributed R4.8 billion,
while platinum – a recent addition to the group’s portfolio after it bought Aquarius
Platinum and Amplats’ Rustenburg operations – added R304 million.
Sibanye’s half share of the Momosa joint venture, which
is equity accounted and not included in operating profit, contributed R186 million
in profits.
Headline earnings per share – a key measure of
profitability – came in at 148c a share, compared with 121c a year ago.
CEO Neal Froneman says “the positive contribution from
the Platinum Division is notable, with the Aquarius assets continuing to
operate well and the Rustenburg operations showing a solid turnaround and
returning to profitability.”
Sibanye declared a 60c a share dividend, taking the total
dividend to 145c a share, representing a payout of R1.3 billion.
Read also: Sibanye to buy Stillwater for R30bn
Sibanye, currently in the midst of buying US platinum
mine Stillwater for R30 billion, produced 23 805 kg of gold, which was 7
percent lower year-on-year because it stopped mining underground at Cooke 4.
Its platinum operations produced 327 990 ounces of
platinum group metals in the second half of the year.
In October 2016, Sibanye was cleared to buy Anglo
American Platinum's Rustenburg mines for $330 million, which followed its $294
million takeover of Aquarius Platinum in 2015. “The turnaround at the
Rustenburg Operations, was particularly pleasing, with the operating results in
line with our expectations” says Froneman.
“For comparative purposes the production from the
Rustenburg operations was 7 percent higher than the previous quarter and 9
percent higher than the comparable quarter in 2015”.
The integration of the Platinum operations continues with
about R400 million in synergies expected to be realised by year-end.
Shareholders will vote on the Stillwater deal in mid-April.
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