[miningmx.com] – SIBANYE Gold said gold production for its 2015 financial year would be up to 6% lower than forecast as a full recovery from disruptions at Kloof mine during the period proved elusive.
“Despite the solid and continuing operational recovery after the March 2015 quarter, particularly at Beatrix and Cooke, various operational disruptions and distractions related to the on-going wage negotiations have continued to impede a full recovery at Kloof, and to a lesser extent, Driefontein,” the company said in a statement today.
“Operating trends continued to improve during the September 2015 quarter, but even with a further forecast improvement for the December 2015 quarter, it is unlikely that we will claw back production that was lost during the March 2015 quarter,” it said.
Gold production is subsequently forecast to be between 4% and 6% lower than original guidance at some 1.51 million ounces and 1.54 million ounces. Shares in the company were just over 9% weaker in the first hour of trade on the Johannesburg Stock Exchange.
Said Goldman Sachs in a morning note: “Overall, we expect the stock to trade down today especially on the back of hawkish Fed yesterday which has seen gold trend down”.
Total cash cost is forecast at between R350,000/kg and R360,000/kg and All-in sustaining costs (AISC) at between R425,000/kg and R435,000/kg.
Costs in dollar terms remain largely unchanged due to the weaker rand/dollar exchange rate which is forecast at an average R12.50/US$ for 2015, it said.
Total cash cost is forecast at between $870/oz and $895/oz and AISC between $1,060/oz and $1,085/oz.
