Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Sibanye’s Deal With Banks for Higher Dividends Pushes Up Shares

July 11 (Bloomberg) -- Sibanye Gold Ltd., the South African mining company that has lost a third of its market value since being spun off by Gold Fields Ltd., won approval from its banks to pay higher dividends to shareholders this year.

Sibanye jumped 8.8 percent in Johannesburg, adding to a 9.2 percent gain yesterday, after saying it may study paying as much as a quarter of earnings in half- and full-year dividends with the agreement if gross debt doesn’t exceed 4 billion rand ($400 million). The annual payout may be as much as 35 percent if debt is a maximum of 3.5 billion rand, it said today in a statement.

Increased dividends will help compensate investors for the slump in gold companies’ shares this year as the price of the metal dived and South African labor unions demanded gains in pay above inflation. The half-year dividend payment also depends on the company concluding wage talks with workers, Sibanye said.

“The revised terms recognize the cash generative ability of our assets, even at lower prevailing gold prices and will provide greater balance sheet flexibility and the ability to pay dividends to shareholders earlier,” Chief Executive Officer Neal Froneman said in the statement. The company said it’s in further negotiations to extend the term of its debt.

Sibanye advanced 8.6 percent to 8.50 rand by 5:20 p.m. in Johannesburg, valuing the company at about 6.2 billion rand.

To contact the reporter on this story: Kevin Crowley in Johannesburg at kcrowley1@bloomberg.net;

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.