Sibanye Gold Ltd. (SGL.JO)--the No. 1 producer of gold in South Africa--on Wednesday reported a steep loss for the first six months of the year, as impairments to South African gold mines, a provision for a possible lawsuit settlement and a rights issue weighed on earnings.
Sibanye reported a loss of 4.8 billion South African rand ($369.2 million) during the six months ended June 30, compared with a profit of ZAR333 million a year earlier.
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The swing to loss was due to multiple factors, namely: ZAR2.8 billion in impairments at two South African gold mines; a ZAR1.1 billion-provision for the possible settlement of a class-action silicosis lawsuit brought against a group of South African miners; a stronger rand; and ZAR402 million in costs associated with the acquisition of Stillwater Mining Co. in the U.S. Earnings were also affected by a $1 billion rights offer.
However, revenue rose to ZAR19.22 billion from ZAR14.70 billion in 2016.
The company, which is based about an hour southwest of Johannesburg, hasn't declared an interim dividend in order to preserve cash.
Sibanye produced 688,600 ounces of gold in the first half of 2017, down 8% from a year earlier.
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(END) Dow Jones Newswires
August 30, 2017 03:10 ET (07:10 GMT)