Sibanye Gold won't pay dividend for first time as it posts loss | Fin24
 
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Sibanye Gold won't pay dividend for first time as it posts loss

Aug 30 2017 12:14
Kevin Crowley, Bloomberg


Company Data

GOLD FIELDS LIMITED [JSE:GFI]

Last traded 96
Change 3
% Change 4
Cumulative volume 10605376
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Sibanye Gold Limited [JSE:SGL]

Last traded 44
Change 0
% Change -1
Cumulative volume 29329592
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Johannesburg - Sibanye Gold [JSE:SGL] said it won’t pay an interim dividend for the first time since it began trading in 2013 as the biggest producer of South African gold reported a first-half loss.

The results in the six months through June were affected by a big impairment charge on unprofitable mines it plans to close, provision for a settlement in a lung-disease class-action lawsuit and financing costs following its $2.2bn purchase of US platinum-group metals producer Stillwater Mining.

READ: Mines make room for silicosis settlements

Sibanye’s net debt following the Stillwater deal rose to $1.69bn at the end of June. The company is emphasising cash preservation and the payment of a dividend is “inappropriate until leverage is reduced,” it said in a statement on Wednesday.

Paying a dividend has been a core part of Sibanye’s strategy since it was spun off from Gold Fields [JSE:GFI].

While its South African mines are high-cost and aging, they are proven cash generators that formed the basis of the company’s regular shareholder payouts until now.

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