Sibanye slashes full-year output guidance, despite improved third quarter
Despite a third-quarter recovery in output, dual-listed Sibanye Gold has revised its full-year production guidance downwards as it prepares to post lower earnings for the year to December 31.
The gold producer on Thursday said various operational “disruptions and distractions” continued to hamper efforts to offset the production lost in the first quarter despite a “solid and continuing” operational recovery during the third quarter of the year under review.
“Operating trends continued to improve during the September quarter, but, even with a further forecast improvement for the December quarter, it is unlikely that we will claw back the production that was lost during the March quarter.
“As such, we are downgrading guidance for the year,” Sibanye CEO Neal Froneman said in an update to shareholders.
Sibanye forecast a 4% to 6% drop in gold production to between 1.51-million ounces and 1.54-million ounces for the full year, with total cash costs expected to come in at between $870/oz and $895/oz and all-in sustaining costs (AISC) at between $1 060/oz and $1 085/oz.
The group expected a more than 20% decline in earnings per share and headline earnings per share from the 186c and 170c a share respectively achieved in the prior year.
During the third quarter of the year, Sibanye recovered from the operational challenges experienced during the first quarter; however, performance was below the corresponding quarter’s in the prior year, owing to two fires, seismicity and illegal industrial action during the three months under review.
The group’s gold output of 410 600 oz was higher than the 398 500 oz achieved in the June quarter but lower than the 424 700 oz produced in the September 2014 quarter.
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