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Sibanye says on track to resume dividends as earnings surge

Q3 earnings more than triple.
Sibanye shares are up 1.8% on Thursday. Image: Waldo Swiegers, Bloomberg

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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