South African miner Sibanye raises loss estimate by $100 million-plus

South Africa’s Sibanye-Stillwater expects its full-year attributable loss to be more than $100 million greater than guidance in a trading statement last week, it said on Wednesday, after a review of tax changes in the United States.

Sibanye now expects a headline loss per share of 1 cent, compared with 12 cents in 2017

The gold and platinum miner’s shares fell into negative territory on the news that it expects the loss to reach 2.5 billion rand ($177 million) rather than 1 billion rand because of the tax changes.

“A further review of the effects… has resulted in an amendment to deferred tax,” it said in a stock exchange announcement.

“This change has no impact on the 2018 cash flows and is expected to unwind over the life of the Stillwater operations.”

Sibanye, which produces platinum and palladium in the United States, said it now expects a headline loss per share of 1 cent, compared with 12 cents in 2017. It had been forecasting headline earnings per share of 65 cents.

Headline earnings per share is a key profit measure in South Africa that strips out one-off items.

The company said a number of tax changes were made in New Jersey in the six months to December, the most significant of which resulted in tax being calculated together on all of the company’s U.S. entities.

This resulted in a revised deferred tax rate for Sibanye of a little less than 1.5 billion rand.

“We will further investigate tax planning alternatives to minimise this additional deferred tax,” Sibanye’s statement said.

Reuters