Picture: ISTOCK
Picture: ISTOCK

SIBANYE Gold forecast its gold output this year would increase to 1.61-million ounces from last year’s 1.54-million ounces because operational issues that affected production would not be repeated.

The weakening of the rand against the dollar, the currency in which gold is traded internationally, has pushed the local price of gold to R575,000/kg, which Sibanye said was R100,000/kg higher than last year’s average.

Assuming the domestic gold price remained at those levels, Sibanye said its total cash cost margin would expand to 38% and the margin on its all-in sustaining costs would jump to 25%.

Sibanye, which reports full-year results on February 25, said it generated 1.54-million ounces, or 47,800kg, of gold in the 12 months to December 31 at an all-in sustaining cost of R420,000/kg.

The received price last year was R475,508/kg, giving it a total cash cost margin of 28% and an all-in sustaining cost margin of 11%.

Sibanye had warned investors last year that its gold output would be lower than initially planned because of a tough March quarter and electricity constraints in the June quarter.

Sibanye produced 1.589-million ounces, or 49,432kg, of gold in 2014.