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 stage.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%.
(By Felix Njini)