Sibanye’s solid operational results for the quarter 2016, with a 14% increase in production and a 30% higher average rand gold price, resulting in a 240% increase in operating profit to R2.5 billion, compared with R744 million for the March 2015 quarter. Total cash cost remained flat year-on-year, despite the implementation of above inflation wage and electricity tariff increases, while All-in sustaining cost was 3% lower.
The forecast gold production for the year remains unchanged at 50,000kg. Total cash cost is forecast atapproximately R355,000/kg and the All-in sustaining cost at approximately R425,000/kg.Progress on the Platinum transactions was pleasing with shareholders overwhelmingly approving both transactions and both receiving competition authority approval.
The acquisition of Aquarius Platinum Limited was concluded on 12 April 2016. The acquisition of the Rustenburg assets remains subject to Section 11 approval for the transfer of mineral rights by the Department of Mineral Resources, which is anticipated in the second half of 2016.
Attributable production for the June 2016 quarter is forecast at 87,500oz (4E), at an average cash cost of R10,300/oz (4E). Attributable capital expenditure is forecast at approximately R95 million.