Mimosa H1 PGM output seen at record levels

Mimosa H1 PGM output seen at record levels

HARARE, July 27 (The Source) – PGM production (4E) at Mimosa Platinum mine is forecast at a record high for the six months ended 30 June 2016 despite the challenging operating environment.

Parent company, Sibanye Gold Limited of South Africa, said in a trading update for the six months that total group PGM production (4E) for the period is forecast at approximately 178,000 ounces (4E) compared to 168,000oz for the previous comparable period, with Kroondal and Mimosa forecast to deliver all-time record production.

Sibanye took over the entire shareholding of former owner Aquarius earlier this year, including the Kroondal and Mimosa platinum mining operations.

“Both operations continue to deliver above nameplate capacity, a notable achievement given their respective challenging operating environments,” the group said.

Cash costs for Mimosa are estimated at $763/PGM oz with unit costs of approximately $69/ton and cash costs plus capex of approximately $874/oz (4E), compared to cash costs of $798/oz, unit costs of $73/ton and cash costs plus capex of $920/oz (4E) for the previous comparable period.

The group’s PGM (4E) production for the March 2016 quarter increased to 30,483koz compared to 28.676koz in the same period in 2015.

Mimosa is Zimbabwe’s third platinum mine, in addition to the Zimplats and Unki Mine. Great Dyke Investments, a Russo-Zimbabwean joint venture is developing the country’s fourth platinum mine in Darwendale, which has an estimated resource of 45 million ounces.

At group level, earnings for the six-month period are expected to be significantly higher than for the six months ended 30 June 2015, primarily due to a 31 percent higher average rand gold price.

Headline earnings per share (“HEPS”) are expected to be between 92 cents per share and 116 cents per share, higher than the 19 cents per share reported for the previous comparable period.

Earnings per share (“EPS”), which include certain non-recurring items, are expected to be between or 14 cents per share and 22 cents per share, higher than the 20 cents per share reported for the previous comparable period.