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Cape Town - Sibanye Gold [JSE:SGL] said on Thursday that it expects a 1 433% decrease in earning per shares and a 284% decrease in headline earnings per share for the six months ended June 30 2016.
The decline in profits came after Sibanye announced on August 3 that it was starting a restructuring plan that could see about 7 400 jobs being cut. The miner, which employs 58 000 workers in South Africa, announced restructuring plans at its Beatrix West and Cooke operations.
Its share price was trading 2.5% higher on Thursday, adding to gains that has seen the miner increase its share price by almost 65% in the year to date.
Sibanye said in a statement on Thursday that it expects to make a R4.8bn loss for the six-months ended 30 June 2017, a massive shift from its earnings of R333m for the six months ended 30 June 2016.
“The decrease in earnings is primarily attributable to non-recurring items, which were four fold higher than for the comparative period, and the 14% appreciation of the average rand relative to the US dollar, which impacted group revenue,” the miner said.
Non-recurring items of about R4.4bn include a R2.8bn impairment charge relating to the cessation of the loss making Cooke and Beatrix West operations, announced on August 3.
It also included a R1.1bn occupational healthcare provision, relating to possible settlement of the silicosis class action litigation, and R402m costs associated with the acquisition of Stillwater.
Gold produced for the six months ended 30 June 2017 declined by 8% relative to the comparable period to 21 418kg. “This was mainly due to the suspension of operations at Cooke 4 during the second half of 2016, the impact of illegal mining at the Cooke Operations and lower volumes and grades from Beatrix West,” it said.
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