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SIBANYE GOLD LIMITED - Trading statement for the year ended 31 December 2018

Release Date: 14/02/2019 08:00
Code(s): SGL     PDF:  
Wrap Text
Trading statement for the year ended 31 December 2018

Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)


Trading statement for the year ended 31 December 2018

Johannesburg, 14 February 2019. Sibanye-Stillwater (Tickers JSE: SGL and NYSE:
SBGL) is pleased to provide a trading statement for the year ended 31 December
2018. The comprehensive financial and operating results for the six months and the
year ended 31 December 2018 will be released on Thursday, 21 February 2019.

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited (JSE),
a company listed on the JSE is required to publish a trading statement as soon as
it is satisfied that a reasonable degree of certainty exists that the financial
results for the period to be reported upon next will differ by at least 20% from the
financial results for the previous corresponding period.

Shareholders are advised that the Sibanye-Stillwater Group expects to report an
attributable loss of R1,000 million (US$77 million) for the year ended 31 December
2018,which is a significant improvement on the attributable loss of R4,437 million
(US$333 million) for the year ended 31 December 2017 (comparative period).

The improvement year-on-year primarily reflects, inter alia:
• improved solid operational performance from our PGM operations in both Southern
  Africa (SA) and in the United states (US)
• the benefits of significantly higher PGM basket prices
• the inclusion of a full year from the US PGM operations, compared with eight
  months in the comparative period
• increases in the gains on financial instruments and foreign exchange differences
• decreases in non-underlying items (i.e. impairments, provision for occupational
  healthcare claims, restructuring and transaction costs)

These improvements were partly offset by losses from the SA gold operations due to
safety incidents in the first half of 2018 and the AMCU strike towards the end of
the year, as well as significant decline in deferred tax rate adjustments relative
to 2017.

The deferred tax credit for the comparative period in 2017 of R3,451 million
(compared to a deferred tax credit of R511 million for 2018), was mainly due to the
beneficial impact of the federal tax reform legislation enacted in the US on
22 December 2017. From 1 January 2018, the federal corporate income tax rate reduced
from 35% to 21% which, together with other immaterial changes in the tax base,
resulted in a deferred tax benefit in 2017 of R2,532 million.

As a result, the Group will report a basic loss per share of 44 cents (3 US cents)
for the year ended 31 December 2018, which is significantly less than the basic loss
per share of 229 cents (17 US cents) reported for the previous year and positive
headline earnings per share (HEPS) of 65 cents (5 US cents) compared with the
headline loss per share of 12 cents (1 US cents), for the comparable period in 2017.
This represents an 81% reduction in the basic loss per share and a 642% increase in
respect of HEPS.
The financial information on which this trading statement is based has not been
reviewed or reported on by Sibanye-Stillwater’s auditors.

Results presentation

Sibanye-Stillwater will release its results for the six months and year ended 31
December 2018 on Thursday, 21 February 2019 after 08:00 (CAT) and will host a live
presentation and webcast at 10:00 (CAT). For the webcast and conference call details,
please refer to our website at www.sibanyestillwater.com.



Investor relations contact:

Email: ir@sibanyestillwater.com

James Wellsted
Head of Investor Relations
Tel: +27 (0) 83 453 4014

Sponsor: J.P. Morgan Equities South Africa Proprietary Limited

Ends.

FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” within the meaning of the “safe
harbour” provisions of the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words such as “target”, “will”,
“forecast”, “expect”, “potential”, “intend”, “estimate”, “anticipate”, “can” and other
similar expressions that predict or indicate future events or trends or that are not
statements of historical matters. The forward-looking statements set out in this announcement
involve a number of known and unknown risks, uncertainties and other factors, many of which
are difficult to predict and generally beyond the control of Sibanye-Stillwater, that could
cause Sibanye-Stillwater’s actual results and outcomes to be materially different from
historical results or from any future results expressed or implied by such forward-looking
statements. These forward-looking statements speak only as of the date of this announcement.
Sibanye-Stillwater undertakes no obligation to update publicly or release any revisions to
these forward-looking statements to reflect events or circumstances after the date of this
announcement or to reflect the occurrence of unanticipated events, save as required by
applicable law.

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