Sibanye Gold Ltd., the South African mining company spun off from Gold Fields Ltd. last month, rose 6.2 percent in Johannesburg after announcing a 16 percent increase in full-year profit.
The stock advanced to 13.80 rand, its highest closing price since Feb. 18, with 16.3 million shares traded, valuing the company at 10.1 billion rand ($1.1 billion).
Net income rose to 3 billion rand, Johannesburg-based Sibanye said in a statement today. About 85 percent of the miner’s earnings were generated in the first half after labor strikes hit production later in the year, it said.
“The results quantify explicitly the capacity of Sibanye’s mines,” Percy Takunda, a mining analyst at Imara SP Reid, said in a phone interview. “They managed to make money in a difficult year. Assuming this year operations stabilize, they do look like a profitable outfit.”
Gold Fields said in November it would place its deeper and most labor-intensive South African mines in Sibanye. The shares opened trading at 13.65 on Feb. 12 and hit a high of 16.20 rand three days later before declining to as low as 12.85 rand on Feb. 21.