JOHANNESBURG (miningweekly.com) – Precious-metals mining company Sibanye Gold has given notice of skyrocketing earnings.

The company, headed by CEO Neal Froneman, told shareholders on Thursday that its 2016 headline earnings a share would be at least 330% higher and normalised earnings at least 200% higher than in 2015.

For 2016, Sibanye is expecting headline earnings a share of at least 318c a share and normalised earnings a share of at least 429c.

The financial information on which its trading statement is based is at an average rand gold price for the year of R59 000/kg.

In the three months to September 30, group operating profit from gold and platinum soared 71% to R2.7-billion, with gold contributing R2.5-billion at a 36% margin of profit and platinum contributing R190-million at a 25% margin of profit.

Seven per cent lower quarterly gold production of 382 500 oz (11 897 kg) pushed up all-in sustaining costs to R479 785/kg from R420 811/kg in 2015 while the platinum division’s output of 94 791 oz was its best September-quarter production in more than a decade.

The Kloof gold mine had a much-improved quarter and surface gold production increased, but  all the remaining gold operations had lower output with Driefontein experiencing production disruption, Beatrix producing 11% less year-on-year and Cooke's output falling following the closure of the Cooke 4 underground operation.

Sibanye is guiding lower gold production of 48 500 kg for the 12 months to December 30 – 1 500 kg down on previous guidance – and fourth-quarter platinum production of 88 000 oz, at a cash operating cost of $693/oz.

Increased third-quarter production at Platinum Mile lifted that operation’s cash margin to a high 39%.

Sibanye’s safety record was blighted in the quarter when gold division employees Mongezi Bagege, Enock Tsabedze and Lehlohonolo Masithela were fatally injured in July and when platinum-division employee Kabelo Rangagwa was fatally injured at Sibanye’s Kroondal mine in August.