Wrap Text
A solid December quarter operating result
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”)
A SOLID DECEMBER 2015 QUARTER OPERATING RESULT. OUTLOOK FOR 2016
SIGNIFICANTLY IMPROVED*
Westonaria 1 February 2016: Sibanye (JSE: SGL & NYSE: SBGL) advises shareholders
that, consistent with the trend throughout the year, the operational results for the
December 2015 quarter improved further, particularly with regard to the cost
performance.
Group gold production of approximately 12,800kg (411,500oz) was marginally higher
than during the September 2015 quarter, but costs improved noticeably. Total cash
cost (TCC) and All–in sustaining cost (AISC) for the quarter of approximately
R330,000/kg and R400,000/kg respectively, were each approximately 5% lower
quarter-on-quarter. Costs in dollar terms are approximately 14% lower than during
the September 2015 quarter, benefiting from the 9% depreciation in the average
rand:dollar exchange rate quarter-on-quarter. Total cash costs for the December
2015 quarter will be approximately US$720/oz with AISC of approximately US$907/oz.
These costs compare favourably with Sibanye’s global gold peers and place it
amongst the lowest cost producers in the industry. The average exchange rate for
the December 2015 quarter was R14.21/US$.
Gold production for the year ended 31 December 2015 will be in line with revised
guidance at approximately 47,800kg (1.54Mozs), reflecting the impact of the
relatively poor March 2015 quarter and the Eskom load shedding in the June 2015
quarter. TCC for the year of approximately R350,000/kg (US$850/oz) and AISC of
approximately R420,000/kg (US$1,030/oz) are also in line with previous guidance in
rand terms, but significantly lower than previous guidance in dollar terms. The
average gold price received for the year ended 31 December 2015 was
R475,508/kg (US$1,160/oz) resulting in a TCC margin of 28% and an AISC margin of
11%.
The operational issues that affected performance in 2015 are unlikely to be
repeated. Gold production guidance for the year ending 31 December 2016 is
forecast to increase to approximately 50,000kg (1.61Moz), with TCC forecast at
approximately R355,000/kg and AISC at approximately R425,000/kg. The recent
sharp depreciation of the rand to over R16.00/US$,means that costs in dollar terms
are likely to be significantly lower than in 2015; assuming an average exchange rate
of R15.00/US$ for 2016, TCC is forecast at US$735/oz and AISC at US$880/oz. All-in
cost is forecast to be R440,000/kg (US$915/oz), due, inter alia, to the initiation of the
Kloof and Driefontein below infrastructure projects and the development of the
Burnstone mine which were approved in 2015.
Due to the weaker rand, the rand gold price year to date has averaged
approximately R575,000/kg, which is approximately R100,000/kg higher than in 2015.
Should this gold price persist throughout 2016, the Group TCC margin will increase to
approximately 38% and the AISC margin to approximately 25%.
* Forecast is for Sibanye Gold and excludes any contribution from the pending platinum
acquisitions
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) Ltd
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.
These forward-looking statements, including, among others, those relating to
Sibanye’s future business prospects, revenues and income, wherever they may
occur in this document and the exhibits to this document, are necessarily estimates
reflecting the best judgment of the senior management of Sibanye and involve a
number of known and unknown risks and uncertainties that could cause actual
results, performance or achievements of the Group to differ materially from those
suggested by the forward-looking statements. As a consequence, these forward
looking statements should be considered in light of various important factors,
including those set forth in this document. Important factors that could cause the
actual results to differ materially from estimates or projections contained in the
forward looking statements include without limitation: economic, business, political
and social conditions in South Africa and elsewhere; changes in assumptions
underlying Sibanye’s estimation of its current mineral reserves and resources; the
ability to achieve anticipated efficiencies and other cost savings in connection with
past and future acquisitions as well as existing operations; the success of exploration
and development activities; changes in the market price of gold and/or uranium;
the occurrence of hazards associated with underground and surface gold and
uranium mining; the occurrence of labour disruptions and industrial action; the
availability, terms and deployment of capital or credit; changes in government
regulations, particularly environmental regulations and new legislation affecting
water, 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; fluctuations in exchange rates,
currency devaluations, inflation and other macro-economic factors; the occurrence
of temporary stoppages of mines for safety incidents and unplanned maintenance
reasons; Sibanye’s ability to hire and retain senior management or sufficient
technically skilled employees, as well as its ability to attract sufficient historically
disadvantaged South Africans representation in its management positions; failure of
Sibanye’s information technology and communications systems; the adequacy of
Sibanye’s insurance coverage; any social unrest, sickness or natural or man-made
disaster at informal settlements in the vicinity of some of Sibanye’s operations; and
the impact of HIV, tuberculosis and other contagious diseases. 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: 01/02/2016 01:07:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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