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Trading Statement
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”)
TRADING STATEMENT FOR THE SIX-MONTHS ENDED 30 JUNE 2014
Westonaria 25 July 2014
Further to the trading statements released on 17 April 2014 and 4
June 2014, shareholders are advised that earnings per share ("EPS")
and headline earnings per share ("HEPS") for the six-months ended 30
June 2014, are expected to be between 65 cents per share and 75
cents per share and 75 cents per share and 85 cents per share
respectively, based on an estimated 772.7 million weighted average
ordinary shares in issue during the six-months ended 30 June 2014.
The reason for the increase in EPS is due to non-recurring items
including, inter alia: an R821 million (R591 million after tax),
impairment charge relating to the Beatrix West section and
restructuring cost of R343 million during the six-months ended 30
June 2013. For the six-months ended 30 June 2014, non-recurring
items include inter alia, the equity accounted loss and impairment
of Sibanye’s investment in Rand Refinery as detailed below,
transactional costs and restructuring costs.
It should be further noted that the weighted average number of
shares in issue increased from 566.4 million for the six-months
ended 30 June 2013 to an estimated 772.7 million for the six-months
ended 30 June 2014. The weighted average number of shares in issue
for the six-months ended 30 June 2013 was distorted due to the fact
that, prior to its unbundling from Gold Fields Limited in mid-
February 2013, Sibanye only had 1,000 shares in issue. This resulted
in an unusually low weighted average number of shares in issue for
the six-months ended 30 June 2013. On listing on 11 February 2013,
Sibanye’s issued shares increased to 731.6 million.
The issue of 156.9 million new Sibanye ordinary shares to Gold One
International Limited (“Gold One”) on 16 May 2014, following the
conclusion of the acquisition of the Cooke underground and surface
operations, also affected, to a lesser extent, the difference in the
weighted average number of shares in issue between the periods being
compared.
The decrease in HEPS is primarily as a result of an increase in the
weighted average number of shares in issue as detailed above,
partially offset by the impairment of the investment in Rand
Refinery.
Shareholders are furthermore referred to today’s announcement by
Rand Refinery regarding a loan facility extended to it by certain of
its shareholders, as a precautionary measure. This follows
challenges encountered in the implementation of a new Enterprise
Resource Planning system at the refinery. Sibanye confirms its
participation in the loan facility.
Sibanye owns a 33.1% stake in the Rand Refinery and accounts for it
using the equity accounting method as an associate. Sibanye net loss
relating to equity accounted losses and the impairment charge of its
investment in Rand Refinery will be approximately R316.0 million,
which have impacted EPS and HEPS for the six-months ended 30 June
2014.
The financial information on which the trading statement has been
based, has not been reviewed or reported on by the Company’s
auditors.
Sibanye Gold is currently finalising its Operating and Financial
Results for the six-months ended 30 June 2014, which will be
released on SENS at 08 00 (CAT) on Thursday, 31 July 2014 and on the
Company website: www.sibanyegold.co.za.
ENDS
Contact
James Wellsted
Head of Investor Relations
Sibanye Gold Limited
+27 83 453 4014
james.wellsted@sibanyegold.co.za
Sponsor
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
FORWARD LOOKING STATEMENTS
Certain statements in this document constitute ‘forward looking
statements’ within the meaning of Section 27A of the US Securities
Act of 1933 and Section 21E of the US Securities Exchange Act of
1934.
Such forward looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the
actual results, performance or achievements of the Group to be
materially different from the future results, performance or
achievements expressed or implied by such forward looking
statements. Such risks, uncertainties and other important factors
include among others: economic, business and political conditions in
South Africa and elsewhere; the ability to achieve anticipated
efficiencies and other cost savings in connection with past and
future acquisitions, exploration and development activities;
decreases in the market price of gold and/or uranium; hazards
associated with underground and surface gold and uranium mining;
labour shortages and disruptions; availability, terms and deployment
of capital or credit; changes in government regulations,
particularly environmental regulations and new legislation affecting
mining and mineral rights; the outcome and consequence of any
potential or pending litigation or regulatory proceedings or other
environmental, health and safety issues; power disruptions and cost
increases; changes in exchange rates, currency devaluations,
inflation and other macro-economic factors; industrial action;
temporary stoppages of mines for safety and unplanned maintenance
reasons; and the impact of the HIV/AIDS crisis in South Africa.
These forward looking statements speak only as of the date of this
document.
The Group undertakes no obligation to update publicly or release any
revisions to these forward looking statements to reflect events or
circumstances after the date of this document or to reflect the
occurrence of unanticipated events.
Date: 25/07/2014 12:22:00 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
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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.
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