JOHANNESBURG (miningweekly.com) - JSE- and NYSE-listed Sibanye Gold on Friday reported net earnings of R2.98-billion for the year ended December 31, 2012, marking a 16% increase in net earnings compared with that of the equivalent period in 2011.

Material production disruptions in the latter half of the year meant that 85% of the net earnings were generated in the first half of the year. Net earnings for the six months ended June 30, 2012, were R2.53-billion and R455-million for the six months to end December 31.

Unprotected strikes at some of the group’s operations during the year resulted in a 15% decline in production to 1.22-million ounces of gold, down from 1.45-million ounces produced in the 2011 financial year.

Illegal industrial action resulted in about six weeks of lost production and a fire at the Ya Rona shaft at the company’s Kloof-Driefontein Complex’s (KDC) West mine, in Carletonville.

In total, KDC and the company’s Beatrix mine, in the Free State, produced 165 200 oz and 58 100 oz less respectively, compared with the equivalent period in 2011.

UNBUNDLING

Sibanye Gold started trading on the JSE on February 11 at a share price of R13.05 apiece, giving it an initial market capitalisation of about R9.5-billion. This followed gold miner Gold Fields’ board of directors’ approval of the unbundling of Sibanye Gold into an independent, publicly traded company on December 12.

Sibanye Gold's secondary listing on the New York Stock Exchange also commenced on the same day.

The proposed unbundling of Sibanye was announced on November 29.

Included in current liabilities at December 31, 2012, was R17.12-billion owed by Sibanye to Gold Fields’ subsidiary GFL Mining Services (GFLMS). As a result of the GFLMS loan, Sibanye's total liabilities exceeded its total assets by R9.67-billion and R11.98-million as of December 31, 2012, and December 31, 2011, respectively.

On February 1, Gold Fields subscribed for 731.65-million shares in Sibanye at R17.25-billion.

Sibanye used R17.11-billion of the proceeds to repay the GFLMS loan. After the share subscription, the total shares in issue were 731.65-million shares.

REFINANCING

In November, Sibanye entered into a R6-billion term-loan and revolving credit facilities agreement, which would fall to R5-billion. The facilities comprised a R2-billion revolving credit facility and a R4-billion term-loan facility.

The available revolving credit facility amount would reduce from R2-billion to R1.5-billion and the term-loan facility amount would reduce from R4-billion to R3.5-billion. This would occur on the earlier date between Sibanye's board declaring a final dividend in respect of the financial year ending December 31, 2013, or the first anniversary of the one-year unbundling (the rand bridge loan facilities).

The final maturity date of the facilities would be 18 months after the unbundling, on August 18, 2014. The purpose of the rand bridge loan facilities was to refinance Sibanye's remaining debt on unbundling, with the balance to be used to fund Sibanye's ongoing capital expenditure, working capital and general corporate expenditure requirements. 

On February 18, Sibanye Gold refinanced all of its debt, which was under the Gold Fields group debt facilities, by drawing down under the rand bridge loan facilities.