Sibanye-Stillwater braces for challenging interim results

3 Sep 2024

Sibanye-Stillwater issued a trading statement signalling a significant drop in earnings for H1 2024. The full results are scheduled for release on 12 September, but the preliminary figures paint a challenging picture. The company expects a loss per share ranging from 250.8c to 277.2c. This is a dramatic reversal from the 262c earnings per share reported in the same period last year, representing a decline of more than 100%.

Sibanye-Stillwater faced numerous setbacks at its Rustenburg operations

Several factors have contributed to this challenging financial performance, but it is chiefly a result of a significant drop in platinum group metal (PGM) prices that hit revenue hard.

This was partially offset by an increase in the average gold price, but lower forecasted palladium prices have led to a substantial impairment of the company's US PGM operations.

A mine worker takes a break underground as South Africa's Gold Fields bets on solar to cut costs and carbon, at Gold Fields' South Deep mine, south-west of Johannesburg. Source: Reuters/Siphiwe Sibeko

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The miner also failed to capitalise on the gold surge because of lower production and higher costs at the South African gold operations.

Production from the SA PGM operations was disrupted by damage to surface infrastructure at the Siphumelele shaft, which compounded issues.

Silver linings

Despite the challenges, there was a gain on financial instruments helped to offset some of the losses.

While that reduced revenue and profitability led to a decrease in taxes and royalties.

Sibanye's full results will give further insights into the company's performance and outlook.

While the first half of 2024 has been challenging, the company's diversified operations and focus on cost management may help it navigate the current difficulties.