To view the PDF file, sign up for a MySharenet subscription.

SIBANYE GOLD LIMITED - Sibanye produces and ships its first consignment of Uranium from its Cooke Operations

Release Date: 29/05/2014 10:09
Code(s): SGL     PDF:  
Wrap Text
Sibanye produces and ships its first consignment of Uranium from its Cooke Operations

Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye” or “the Company”)

Sibanye produces and ships its first consignment of Uranium from
its Cooke Operations

Westonaria, 29 May 2014: Sibanye is pleased to report that it has
produced and shipped its first consignment of uranium, in the
form of 10 tonnes of ammonium diuranate (“ADU”) to the Nuclear
Fuels Corporation of South Africa (Proprietary) Limited
(“NUFCOR”), where its precipitated ADU is calcined to form
Uranium oxide or Uranium Ore Concentrates.

Uranium oxide production from Sibanye’s Ezulwini plant is
forecast to build up to approximately 600,000 pounds per annum,
by the end of 2016. Current ore reserve development at the Cooke
3 and 4 mines is expected to increase available face, thereby
facilitating increased throughput from the uranium by-product
areas.

Neal Froneman CEO of Sibanye, commenting on the ADU shipment
said: “The revenue derived from this uranium by-product will be
offset against costs, lowering the total cost of producing gold
from the Cooke Operation. As both gold and uranium production
rises in the next 18 months, we anticipate a decrease in costs
and increase in profitability at the Cooke Operation”.

“Sibanye remains positive on the longer term outlook for the
uranium price and is currently exploring ways to secure more
attractively priced longer term uranium contracts in order to
limit its exposure to the weak prevailing spot uranium market”,
Froneman said.

Demand for uranium has been negatively impacted by torpid global
economic growth since 2008, and the Fukushima disaster at the end
of 2011, which has significantly depressed spot prices. The
longer term outlook for uranium demand remains positive however,
with demand forecast to outstrip supply significantly from 2017.
This increase in demand is primarily expected to be driven by
demand from planned nuclear power growth in China and reactor
restarts in Japan. Reduced supply from the highly enriched
uranium (“HEU”) programme as a result of the conclusion of the
US-Russia HEU deal in 2013, is also expected to support the price
in the long term. Uranium is primarily sold into longer term
contracts with power utilities and longer term contract prices
remain significantly higher than spot prices.
The Ezulwini plant, which was built by First Uranium Corporation
for approximately R1.2 billion, consists of a gold and uranium
plant with a combined milling and gold leaching capacity of
200,000 tonnes per month and a modularised uranium facility with
a nameplate capacity of 100,000 tonnes per month comprising two
50,000 tonne per month modules.

The Ezulwini plant is potentially key component of Sibanye’s
surface tailings retreatment strategy: the plant provides the
opportunity to advance the extraction of value from the 795
million tons of surface tailings owned by Sibanye on the West
Rand, containing 7.1 million ounces of gold and 115 million
pounds of uranium and enable a more efficient, phased allocation
of capital.


ENDS

Contact

James Wellsted
Head of Investor Relations
Sibanye Gold Limited
+27 83 453 4014
james.wellsted@sibanyegold.co.za

Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

Date: 29/05/2014 10:09:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story