JOHANNESBURG (miningweekly.com) – The group operating profit of Sibanye-Stillwater in the three months to the end of September was 41% higher than last year’s third quarter and 5% up year-on-year.

The Johannesburg- and New York-listed precious metals mining company, headed by CEO Neal Froneman, on Thursday reported group operating profit of R2 859-million on 4%-higher gold production of 372 177 oz, 1%-higher South African platinum group metals (PGMs) production of 306 184 oz, and first production three months ahead of schedule from the Blitz project, at Stillwater, in the US.

The operational momentum of the third-quarter is expected to continue to the end of December, resulting in the group ending the year on a firmer financial footing with improved cash flow and better balance sheet leverage.

Gold production is expected to be at the upper limit of previous guidance of 1.35-million ounces to 1.38-million ounces with all-in sustaining costs (AISC) of $1 115/oz to $1 140/oz.

Total capital expenditure (capex) is forecast at R3.2-billion.

Previous guidance for the US region remains unchanged with production forecast at between 350 000 oz and 380 000 oz for the eight months to December 31 with AISC at between $620/oz and $650/oz. Total capex is expected to be $115-million for the eight months.

Underperforming gold operations face a restructuring process under Section 189A of the Labour Relations Act, while South African PGM operations continue to deliver helped by the earlier-than-expected realisation of cost synergies.

An increasingly supportive environment for commodities has resulted in continued gains in precious metals prices during the September 2017 quarter, with the average prices received increasing across the board.

The focus is now firmly on optimising the operations.

Regrettably, there were, four fatal quarter-three accidents that resulted in the deaths of Nkosinathi Marumo, Thandisile Deku, Puseletso Molebogeng Mashego, Geraldo Julio Sitoe, and Sibongile Ganithuli.