Sibanye says on track to resume dividends as earnings surge
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.
- 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.
- Sibanye shares rose 1.8% as of 9:40 a.m. in Johannesburg, bringing this year’s gain to 185%.
(By Felix Njini)