Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)
Trading statement for the six months ended 30 June 2019
Johannesburg, 27 August 2019: Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL) is
pleased to provide a trading statement for the six months ended 30 June 2019 (H1 2019).
Comprehensive financial and operating results for H1 2019 will be released on Thursday,
29 August 2019 via a conference call and webcast.
In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited (JSE), a
company listed on the JSE is required to publish a trading statement as soon as it is
satisfied that a reasonable degree of certainty exists that the financial results for
the period to be reported upon next will differ by at least 20% from the financial
results for the previous corresponding period.
Shareholders are advised that the Sibanye-Stillwater Group expects to report an
attributable loss of R265 million (US$19 million) for H1 2019, compared with an
attributable profit of R77 million (US$6 million) for the six-months ended 30 June 2018
(H1 2018).
The financial results for H1 2019 primarily reflect the significant impact of the strike
at the SA gold operations, which ended on 17 April 2019, but affected the entire six
month period.
Other significant factors impacting negatively on the H1 2019 results included:
·
deferral of revenue from the Rustenburg operations due to the transition from purchase
of concentrate to a toll processing arrangement
·
recognition of a fair value loss on the US$ convertible bonds of R553 million (an
R810 million gain in H1 2018), due to the bonds trading well above par value, following
the significant increase in the Sibanye-Stillwater share price
·
non-recurring items include restructuring costs from the SA gold operations of R387
million following the conclusion of the S189 consultation process at the SA gold
operations
·
other strike costs of [R374 million] at the SA gold operations
·
a R502 million increase in mining tax due to increased profitability of the PGM
operations
These adverse variances were partially offset by:
·
significantly higher profitability at the SA and US PGM operations due to increased
average 2E and 4E basket prices
·
a gain on bargain purchase relating to the Lonmin acquisition of R1,093 million
·
a US$110 million (R1,567 million) deferred tax credit recognised by the US PGM
operations
As a result, the Group will report a loss per share of 11 cents (0.80 US cents) for H1
2019 compared with earnings per share of 3 cents (0.28 US cents) for H1 2018, and a
headline loss per share of 54 cents (3.80 US cents) for H1 2019 compared with headline
earnings per share of 4 cents (0.36 US cents) for H1 2018, representing a 467% decrease
in EPS and a 1,450% decrease in HEPS, year-on-year.