Sibanye Gold Earnings Rise 10 Percent on Production Increases

gold mining

(Bloomberg) – The South African miner, Sibanye Gold Ltd. (SGL), turned by Gold Fields Ltd. this year, said 3rd-quarter profit rose 10% as production increased and costs dropped.

Operating earnings were 2 billion rand ($201 million) in the 3 months to September 30, in comparison with 1.8 billion rand in the prior quarter the Westonaria-based company stated on Thursday. Production increased 8.6% reaching 387,800 oz as all-in costs decreased 9.6% to reach $1,059 an oz.

Sibanye’s total shareholder earnings have overtook previous parent Gold Fields by 44% since the two separated in February. The company said its first dividend last month when earnings and output rose in the 1st half. The company formed for generating cash South African gold-mining assets, whereas Gold Fields recalled growth mines in Australia, Ghana and Peru.

CEO Neal Froneman stated “We have arrested the negative trends that have characterized these operations over the last decade,”

Sibanye shares increased 4.6% and traded 3.1% higher at 13.95 rand as of 10:26 A.M. in Johannesburg.

Sibanye possible output is around 378,000 oz of gold at an all-in cost of $1,125 an oz in the 4th quarter it said on Thursday. That will rise yearly output by 5.2% to 1.42 million oz and cut all-in costs by 4% to reach 360,000 rand a kilogram.