Sibanye swings to first-half loss, hit by lawsuit provision, impairments
The company posted a headline loss per share of 147 cents for the six months to 30 June, in line with what it had previously flagged to the market.
JOHANNESBURG – South African precious metals producer Sibanye Gold reported an interim loss on Wednesday, citing impairments and provisions for an expected settlement with miners who contracted lung diseases at work.
A class action lawsuit, mostly relating to the fatal lung disease silicosis, was filed on behalf of miners in 2012 and has led to mounting provisions related to the health and safety conditions afforded the black workforce during South Africa’s apartheid past.
The company posted a headline loss per share of 147 cents for the six months to 30 June, in line with what it had previously flagged to the market. That compared with earnings of 79 cents in the same period last year.
The provision for the expected occupational healthcare settlement is R1.077 billion.
Sibanye said the losses were also attributable to a R2.8 billion impairment charge relating to the cessation of its loss-making Cooke and Beatrix West gold operations and R402 million in costs associated with the acquisition of US platinum producer Stillwater.
The company said in early August that it might lay off up to 7,400 employees at Beatrix West and Cooke. The latter was hit by a violent wildcat strike in June and has been targeted by illegal miners, adding to security and other costs.
The company also said it will also change its name to Sibanye-Stillwater.
The Gold Fields’ spin-off, which has positioned itself as a dividend play from the cash that flows from the mature gold and platinum deposits it mines in South Africa, did not declare an interim dividend.