Share

Power cuts hit Sibanye first quarter output

Johannesburg - South African-focused Sibanye Gold [JSE:SGL] said on Monday power shortages and a delayed start-up after the festive season cut its first quarter bullion output by 5%, sending its shares lower.

Africa’s no.3 gold producer said gold output for the three months to the end of March fell to 9 808kg from 10 338kg a year earlier.

Its shares fell 2.34% to R27.50 by 09:19 GMT compared to the 0.58% increase in Johannesburg’s All-Share index.

Eskom has been struggling to keep the lights on and mining companies, among some of the heaviest power users, have had to cut consumption by up to 20%.

Sibanye said gold production fell due agreements to reduce their power consumption.

The company said in February it would build a R3bn solar-powered power plant to weather electricity shortages.

Sibanye, however, kept its forecast for full-year production unchanged at between 50 000kg and 52 000kg.

The company, along with industry rivals AngloGold Ashanti [JSE:ANG], Harmony Gold [JSE:HAR] and Village Main Reef [JSE:VIL], is set to begin tough wage negotiations in the next few weeks with labour unions.

Sibanye cautioned against "inflated wage and benefits increases" which it said will significantly impact the sustainability of the industry as many gold mines were marginal.

"While delivering short term gains for employees and unions, (inflated wage increases) will inevitably result in the loss of jobs and destroy value for all stakeholders in the longer term," it said.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders