Sibanye Says on Track to Resume Dividends as Earnings Surge

(Bloomberg) --

Sibanye Gold Ltd., 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 amortization surged 240% to 5.5 billion rand ($366 million) in the quarter through September, the South African mining company said Thursday in a statement.

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 U.S. 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%.

Get More

• Sibanye Sees FY Gold Output at Lower End of 771,617 Oz Guidance
• Sibanye Gold CEO Says New York Listing Possible in 2021
• Sibanye CEO Sees Wage Strike Unlikely at Platinum Mines
• Don’t Bet on Palladium Falling Far From Record, Sibanye Says
• Platinum Is a Cash Cow for Miners, But Dividends Remain Elusive

To contact the reporter on this story: Felix Njini in Johannesburg at fnjini@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Dylan Griffiths, Liezel Hill

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