Sibanye gold costs top R1m/kg during strike
The cost of production was nearly double the metal’s price during the five-month Amcu strike
The true cost of the five-month strike at Sibanye-Stillwater’s gold mines was laid bare in its March quarter numbers, with the cost of production nearly double that of the price it received. The group's all-in sustaining costs were R1m per kg of gold, far above the R550,000/kg at normal production levels, CEO Neal Froneman said. At Beatrix, the worst-affected mine during the strike, its all-in sustaining costs were R1.1m/kg. To put these costs into perspective, the global average all-in sustaining cost during 2018 was $897/oz, which at the prevailing exchange rate works out to around R418,000/kg.
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