Sibanye-Stillwater diversity play off to mixed start
5 Nov 2024
Sibanye-Stillwater released its operating update for the quarter ended 30 September 2024, revealing a complex picture of performance across its diverse portfolio. While the company has made strides in optimising operations and improving profitability, challenges remain in certain sectors. Despite solid operational delivery, PGM operations have been squeezed by persistently low PGM prices. The impact is particularly pronounced in the US PGM operations, which have continued to incur financial losses.
Sibanye recently secured a €500m green financing loan for the Keliber lithium project
"While the US PGM operations have successfully improved on production and cost expectations during Q3 2024, the 2E PGM basket price has remained well below AISC during 2024 and the US PGM operations have continued to incur financial losses," said Neal Froneman, CEO of Sibanye-Stillwater.
In response, the company has undertaken restructuring efforts to reduce fixed costs and ensure the sustainability of these assets.
The market has responded positively to these measures, with the palladium price showing signs of recovery.
Critical minerals diversity strategy
Sibanye-Stillwater's strategic investments in lithium and nickel are showing promise.
The company recently secured a €500m green financing loan for the Keliber lithium project, a key step in developing this battery metal resource.
However, the Sandouville nickel refinery in France is facing projected losses, leading to the termination of a key commercial supply contract.
The refinery is expected to cease production of nickel metals and salts during H1 2025.
Gold is up
Sibanye-Stillwater's financial performance was largely driven by significantly improved contributions from the SA gold operations and the Century retreatment operations in Australia.
These operations benefited from greater operational stability and higher metal prices during the quarter.
The operational restructuring and optimisation undertaken since the beginning of 2023 has tangibly improved the stability and profitability of the Group operations and, by preserving operational cash flows, has protected the integrity of the Group balance sheet.
The miner remains optimistic about its future prospects and is well-positioned for ongoing strategic delivery and shared value creation, with further production and cost benefits expected in 2025.
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