JOHANNESBURG- Mining group Sibanye-Stillwater said it expected to report an attributable loss of more than R4 billion for the year ended 31 December 2017, due to impairments, restructuring and transaction costs and a significant drop in commodity prices.
This was also exacerbated by the average rand: dollar exchange rate year-on-year, the company said in a trading announcement.
The company said a R2 billion gain on acquisition which was recognized during the comparative period was also a significant contributing factor to the year-on-year difference.
In addition, the company said its normalised earnings of R522 million for the second half of 2017 was significantly higher than the R1 billion normalised loss for the first half of the year, resulting in a normalised loss of R480 million for the year ended 31 December 2017 compared with normalised earnings of R3 billion compared to the previous financial period.
“Earnings per share (EPS) and headline earnings per share (HEPS) for the period, are further affected by the rights offer and capitalization issue. As a result, the Group expects to report a loss per share of 229 cents for the year ended 31 December 2017 and a headline loss per share of 12 cents. EPS and HEPS for the comparative period were 225 cents and 162 cents, respectively. This represents a 202% decrease in respect of EPS and a 107% decrease in respect of HEPS,” according to data supplied by the company.