Africazine:
Sibanye-Stillwater’s gold operations in South Africa are thriving amid rising metal prices.
The company anticipates headline earnings per share to more than triple in the six months ending June, driven by increased gold and platinum group metals prices. Adjusted earnings before interest, tax, depreciation, and amortisation surged approximately 85%.
Sibanye-Stillwater’s Strong Performance in South Africa
Sibanye-Stillwater’s gold operations in South Africa are a significant contributor to its financial success. The company reported a 14% increase in gold production costs, now at R1.64m/kg, attributed to inflation, higher royalties, and increased pumping costs. Despite these challenges, the company saw a 13% rise in production from surface operations, including a 10% increase at DRDGOLD.
In addition, Sibanye’s platinum group metals (PGM) operations experienced a remarkable improvement, with adjusted EBITDA rising about 300%. The price received for platinum, palladium, rhodium, and gold increased by 67%, while PGM sales grew by 12%. Production remained stable at 831,307 ounces.
South Africa: Key figures on Sibanye-Stillwater’s Earnings
- Headline earnings per share expected to more than triple
- Adjusted EBITDA increased about 85%
- Gold production costs increased 14% to R1.64m/kg
- PGM adjusted EBITDA rose about 300%
- Price received for platinum, palladium, rhodium, and gold rose 67%
- PGM sales increased 12%
- Production broadly unchanged at 831,307 ounces
- Precious metals recycled and sold increased 142% to 2.79 million ounces
Challenges and Future Prospects for Sibanye-Stillwater
While Sibanye-Stillwater is experiencing growth, it faces operational challenges. Planned changes at Kloof in Gauteng and issues at the Beatrix mine in the Free State have affected production. However, the company remains optimistic about its recycling business, which has also benefited from higher metal prices and increased volumes.
Next Steps for Sibanye-Stillwater
- Continue advancing the Keliber lithium project in Finland
- Test the processing plant for ore at the Syväjärvi open-pit mine
Sibanye-Stillwater’s gold operations are capitalizing on favorable market conditions.
