Sibanye profit falls after share issue

Johannesburg - Mining giant Sibanye Gold [JSE:SGL] has reported robust operating and financial results for the first half of this year.

Sibanye Gold said on Thursday its first-half earnings fell by more than 50%, reflecting the dilutive impact of a share issue this year.

Diluted headline earnings for the six months to end-June totalled 8 US cents a share, compared with 17c a year earlier.

It said that for the six months ended June 30, production had increased 8% year-on-year, and costs had declined in real terms.

In May Sibanye issued nearly 157 million new shares, equal to 17% of its share capital, to Gold One International to acquire some of the junior miner's assets.

"Despite a 2% year-on-year decline in the average gold price received to R443 865/kg, operating and all-in cost margins have remained steady at 35% and 17% respectively," Sibanye said in a statement.

Cash generated by operating activities increased marginally to R3.886bn.

"Consistent with its strategy of rewarding shareholders with industry benchmark dividends, the group declared an interim dividend of 50c per share, equivalent to 42% of normalised earnings."

The comparable dividend declared last year was 37c per share.

The largest individual producer of gold, Sibanye said production of the precious metal had increased by 8% to 22 143kg, compared to the corresponding period in 2013.

Operating cost declined by 10% to R815 per ton.

Sibanye said its newly acquired Cooke mines had "made a positive contribution to operating profits and operating cash flow after capex in the first month of incorporation".

"All-in cost of R367 601/kg and total cash cost of R291 212/kg, [were] in line with forecasts."

Gold reserves had increased by 66%, and uranium reserves had increased by 139%.