By Adria Calatayud 
 

Sibanye Gold Ltd. (SGL.JO) on Thursday cut its gold production guidance for 2019 after a 7.5% decline in gold output for the third quarter, but posted sharply higher adjusted earnings.

The South African miner--which has traded as Sibanye-Stillwater Ltd. (SBGL) since it bought U.S. company Stillwater Mining Co.--said it produced 287,330 ounces of gold from South Africa in the quarter to Sept. 30 compared with 308,922 ounces in the year-earlier period.

Output of platinum-group metals rose to 518,623 ounces in the quarter from 305,227 ounces a year earlier in South Africa, and increased to 147,353 ounces from 139,178 ounces in the U.S., Sibanye said.

Quarterly adjusted earnings before interest, taxes, depreciation and amortization more than trebled to 5.54 billion South African rand ($379.0 million) from ZAR1.63 billion in the third quarter of 2018, the company said.

Sibanye said it now expects gold production for the full year toward the lower end of its previously guided range, at around 771,617 ounces due to constraints at its Driefontein and Kloof operations in South Africa. The company had previously guided for output of between 772,000 ounces and 804,000 ounces from its South African gold operations.

The company also cut its U.S. platinum-group metals production guidance to between 590,000 and 610,000 from between 625,000 and 640,000 ounces previously. This was due to challenging ground conditions at its Blitz project in Montana and the fall of ground stoppages experienced year to date, the company said.

Platinum-group metals production from South Africa is unchanged at 1.0 million to 1.1 million ounces, Sibanye said.

 

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

 

(END) Dow Jones Newswires

October 31, 2019 03:07 ET (07:07 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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