Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
JOHANNESBURG, Oct 26 (Reuters) – Sibanye-Stillwater reported a 4 percent quarter-on-quarter rise in gold production and a 41 percent jump in group operating profit on the back of higher commodity prices.
The mining company, which last year bought Stillwater, the only U.S. platinum producer, in a $2.2 billion deal, said gold production rose to 11,576 kg in the three months to September 30 while group operating profit was $216.8 million.
“The group operating results for the September 2017 quarter reflect continued improvements during the year, underpinned by higher commodity prices and a more positive commodity price outlook,” the company said in a statement.
The group, which said in August it would restructure operations in its domestic market, said underperforming gold operations were being addressed and the restructuring process was progressing well.
Platinum group metals (PGM) production in South Africa was unchanged, while in the United States PGM output from the Stillwater Mine rose to 4,217 kg from 2,915 kg.
The company’s shares were up 3.85 percent at 17.81 rand at 0751 GMT.
($1 = 14.0845 rand)
(Reporting by Nqobile Dludla; editing by Jason Neely and Jane Merriman).
