Sibanye Raises Its Loss Estimate By $ 100 Million
Shares in the gold and platinum mine fell after information released that the company was forecasting a loss of R 2.5 billion ($ 177 million) due to US tax changes instead of R 1 billion.
Sibanye, which produces platinum and palladium in the United States, said it currently expects a total loss per share of 1 cent, up from 12 cents in 2017. Total EPS was forecast at 65 cents.
EPS is a key earnings metric in South Africa and excludes one-off items.
The company said a number of tax changes were made in New Jersey in the six months prior to December, the most significant of which resulted in the tax being calculated jointly for all of the company's US entities.
As a result, the deferred tax rate for Sibanye has been revised at just under R1.5 billion.
“ We will continue to explore tax planning alternatives to minimize this additional deferred tax ,” Sibanye said in a statement.