Sibanye Gold expects up to R1.63bn profit
Fin24

Sibanye Gold expects up to R1.63bn profit

2015-02-09 09:39

Johannesburg - Sibanye Gold [JSE:SGL] advised shareholders that profit for the year ended 31 December 2014 is expected to be between R1.55bn and R1.63bn.

Headline earnings, after accounting for, inter alia, a R120m impairment charge in respect of Sibanye's investment in Rand Refinery (reported in the interim results for the six months ended June 30 2014), a R114m impairment of the Python Plant and a R360m impairment reversal of Beatrix West Section, are estimated to be between R1.42bn and R1.50bn.

These estimates are approximately 38% and 35% lower respectively, than headline earnings reported for the year ended December 31 2013, which included a R591m impairment at Beatrix West Section.

Like-for-like comparisons between earnings per share (EPS) and headline earnings per share (Heps) for the year ended December 31 2014 and the comparable period in 2013 are distorted as a result of an estimated 28% increase in the weighted average number of shares year-on-year. This difference is primarily due to the fact that, until its unbundling from Gold Fields in mid-February 2013, Sibanye only had 1 000 shares in issue.

The weighted average number of shares in issue in 2013, was 650.6 million, compared with the 735.1 million shares in issue at year end. For the acquisition of the Cooke assets during May 2014, Sibanye also issued 156.9 million new ordinary shares to Gold One, which resulted in the weighted average number of shares in issue for the year ended December 31 2014 being 835.9 million, with 898.8 million shares in issue at year end.

Mainly as a consequence of the difference in the weighted average number of shares between the periods, EPS and Heps for the year ended December 31 2014 are expected to be approximately 30% and 50% lower respectively, than the reported EPS of 260 cents per share and Heps of 355 cents per share for the year ended December 31 2013.

EPS are estimated to be between 185c and 195c per share and Heps are estimated to be 170c and 180c per share respectively. The financial information, on which the trading statement has been based, has not been reviewed or reported on by the company's auditors.