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Sibanye says on track to resume dividends as earnings surge

Q3 earnings more than triple.

Sibanye Gold, the world’s biggest platinum miner, said it’s on track to resume dividend payments in the latter half of 2020 as third-quarter earnings more than tripled.

Adjusted earnings before interest, tax, depreciation and amortisation surged 240% to R5.5 billion in the quarter through September, the South African mining company said Thursday in a statement.

Read: After M&A spree, Sibanye is now the world’s No 1 platinum miner

Key insights

  • Net debt fell to 1.7 times adjusted Ebitda at the end of the quarter, from 2.5 times three months earlier.
  • The company said that ratio should meet its target of 1 times by the end of next year should platinum-group metal prices remain buoyant.
  • Still, Sibanye curbed its output forecast for US platinum metals operations, and said gold production in South Africa will be lower than previously guided.
  • The resumption of payouts also depends on Sibanye avoiding a strike over wages at its platinum mines in South Africa. The company said it continues to engage with labor unions on a new three-year pay deal through the state mediator.

Market reaction

Sibanye shares rose 1.8% as of 9:40 a.m. in Johannesburg, bringing this year’s gain to 185%.

© 2019 Bloomberg L.P.

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