SIBANYE GOLD LIMITED - Operating update and trading statement for the six months ended 30 June 2018

Release Date: 03/08/2018 14:01
Code(s): SGL
Wrap Text
Operating update and trading statement for the six months ended 30 June 2018

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

Operating update and trading statement for the six months ended 30 June 2018

Johannesburg, 3 August 2018. Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL)
is pleased to provide an operating update and trading statement for the six months
ended 30 June 2018 (H1 2018). The comprehensive financial and operating results
for H1 2018 will be released on Thursday, 23 August 2018.

H1 2018 operating update

The Southern Africa (SA) PGM operations have produced approximately 17,700kg (569koz)
of 4E PGMs at an All-in sustaining cost (AISC) of approximately R10,110/4Eoz
(US$820/4Eoz) for H1 2018. This solid operational result translates into an annual
guidance which will target the top end of 4E PGM production guidance and AISC towards
the bottom end of guidance. We are also pleased to advise that the average 4E basket
price increased by 8%, from R12,006/4Eoz in H1 2017 to R12,941/4Eoz in H1 2018. This
basket price increase together with the good operational performance has resulted
in the adjusted EBITDA* from the SA PGM operations more than doubling relative to
H1 2017, to approximately R1 billion (US$81 million).

The United States (US) PGM operations have produced approximately 294koz of 2E PGMs
at an AISC of approximately US$653/2Eoz. This is also a solid operational performance
in line with annual production and cost guidance for 2018. The average 2E basket
price increased from US$850/2Eoz in H1 2017 to US$993/2Eoz in H1 2018, resulting in
expected adjusted EBITDA from the US region of approximately R1.9 billion (US$150
million). This is significantly more than the same period last year where the US
PGM operations were only included for 2 months in the H1 2017 results.

The SA gold operations have produced approximately 18,610kg (600koz) of gold, at an
AISC of approximately R520,000/kg (US$1,315/oz). This operational performance has
been achieved despite the very significant safety related disruptions on the SA gold
operations.   At an average gold price of R519,994/kg in H1 2018, the SA gold
operations are expected to contribute approximately R1 billion (US$82 million) to
Group adjusted EBITDA. This compares to R2.3 billion (US$171m) for H1 2017.

The average exchange rate in H1 2018 was R12.31/US$ compared with R13.21/US$ in H1

Trading statement

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited
(JSE), a company listed on the JSE is required to publish a trading statement as
soon as they are satisfied that a reasonable degree of certainty exists that the
financial results for the period to be reported upon next will differ by at least
20% from the financial results for the previous corresponding period.

Shareholders are advised that the Sibanye-Stillwater Group expects to report an
attributable profit to shareholders of R77 million (US$6 million) for H1 2018,
compared with an attributable loss of R4,804 million (US$364 million) for the six
months ended 30 June 2017 (H1 2017).
The significant improvement year-on-year primarily reflects inter alia, the improved
operational performance from our PGM operations, the inclusion of a full six months
from the United States (US) region, compared with two months in H1 2017 and no
material non-recurring items. Non-recurring items which were recognised during H1
2017 included impairments of R2,796 million, an occupational healthcare obligation
of R1,077 million , and transaction costs of R402 million.

As a result, the Group expects to report significantly increased earnings per share
(EPS) of 3 cents (0.28 US cents) and headline earnings per share of 4 cents (0.36
US cents) for H1 2018, representing a 101% increase in EPS and a 103% increase in
HEPS, year-on-year.

The Group reported a 298 cents (23 US cents) loss per share and 135 cents (9 US
cents) headline loss per share for H1 2017.

The financial information on which this trading statement is based has not been
reviewed or reported on by Sibanye-Stillwater’s auditors.

Results presentation

Sibanye-Stillwater will release its results for the six months ended 30 June 2018
on Thursday, 23 August 2018 after 08:00 (CAT) and will host a live presentation and
webcast at 10:00 (CAT). For the webcast and conference call details, please refer
to our website at

* The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the
formula included in the facility agreements for compliance with the debt covenant formula. For a reconciliation of
profit/loss before royalties and tax to adjusted EBITDA, see financial statements. Adjusted EBITDA margin is
calculated by dividing adjusted EBITDA by revenue.

Investor relations contact:


James Wellsted
Head of Investor Relations
Tel: +27 (0) 83 453 4014

Sponsor: J.P. Morgan Equities South Africa Proprietary Limited


This announcement includes “forward-looking statements” within the meaning of the “safe
harbour” provisions of the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words such as “target”, “will”,
“forecast”, “expect”, “potential”, “intend”, “estimate”, “anticipate”, “can” and other
similar expressions that predict or indicate future events or trends or that are not
statements of historical matters. The forward-looking statements set out in this announcement
involve a number of known and unknown risks, uncertainties and other factors, many of which
are difficult to predict and generally beyond the control of Sibanye-Stillwater, that could
cause Sibanye-Stillwater’s actual results and outcomes to be materially different from
historical results or from any future results expressed or implied by such forward-looking
statements. These forward-looking statements speak only as of the date of this announcement.
Sibanye-Stillwater 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
announcement or to reflect the occurrence of unanticipated events, save as required by
applicable law.

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