Sibanye sets mine profit deadline
CEO Neal Froneman says its loss-making Rustenburg mines have just nine months to return to profitability
Sibanye Gold’s newly acquired and loss-making Rustenburg mines had up to nine months to return to profitability or face the suspension of about 300,000oz of loss-making production. Speaking at the release of stellar full-year results on Thursday, CEO Neal Froneman said the newly increased dividend-withholding tax would prompt the board to reconsider the payment of dividends as the first call on its cash. Finance Minister Pravin Gordhan on Wednesday raised the tax by a third to 20%, meaning less money would go to shareholders when companies declared dividends. Sibanye has prided itself on being a leading gold industry dividend player, having returned R1.3bn to shareholders in 2016. "We do need to think about it. I don’t think we as a company or our shareholders will get the benefit of a dividend with a 20% withholding tax … it’s no use throwing money away just to maintain a dividend-paying track record…." Froneman said. Sibanye paid R1.5bn cash upfront for the Rustenburg mines it bou...
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