Thanks to rocketing platinum and palladium prices, and solid output growth, Sibanye-Stillwater has delivered record results in the first quarter of 2021.
The Johannesburg-headquartered company is the world's largest producer of platinum, second largest producer of palladium and third largest producer of gold.
Its adjusted profit before interest, taxes, depreciation, and amortisation (Ebitda) rocketed by 78% to R19.8 billion compared to the same period a year before.
Production across its operations increased over the same period, with its US output of platinum group metals (PGM) up 9%, while in South Africa, its PGM output was up 6% and gold gained 5%.
Thanks to big increases in PGM prices, its local PGM operation saw a 90% gain in Ebitda to almost R15.3 billion.
"Notably, adjusted Ebitda generated by the SA PGM operations for this quarter, is higher than the total acquisition costs of these operations, emphasising the significant return on investment already delivered and the future windfalls stakeholders can continue to expect," Sibanye-Stillwater said in a statement.
Since 2016, Sibanye has bought various platinum interests, including Aquarius Platinum, Anglo American Platinum’s Rustenburg operations, and the Stillwater Mining Company in the US. It took over Lonmin, which owns the Marikana mining operations, in 2019.
The company said that with a further increase in PGM prices in the second quarter, the outlook for the year is "very promising".
Its share price, which has almost doubled over the past year, gained a further 1% on Thursday.
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