Sibanye shares rally despite 51% profit slump

accreditation
0:00
play article
Subscribers can listen to this article
Sibanye-Stillwater CEO Neal Froneman.
Sibanye-Stillwater CEO Neal Froneman.

For the six months to end-June, Sibanye-Stillwater's profit slumped by 51% to R12.3 billion from a record level last year. Its latest half-year profit performance is still the third-largest on record.

Apart from weaker prices for gold and platinum group metals (PGM), the group suffered big disruptions at its South African gold and US PGM operations.

Production from the SA gold operations was 63% lower year-on-year, due to a three-month-long strike. Added to this, no ore was processed or sold from the Beatrix operations in the first quarter of the year as activities were suspended to allow for the reinforcement of the tailings storage facility.

The US PGM operations reported a 23% decline due to operational constraints and the impact of flooding in June. PGM production from South Africa was 8% lower than, but its costs were maintained in line with inflation.

"This continued focus on cost management has resulted in the SA PGM operations migrating meaningfully down the industry cost curve since they were acquired," the company said.

A cash dividend of 138c per share was declared.

Sibanye's share price climbed 2.3% following the results, but remains 50% below levels reached earlier this year.

Sibanye says it is prioritising growth in green metals or close to, North America and Europe, "in order to establish a preferential position supplying critical metals to the growing battery ecosystems in these regions".

However, the significant increase in battery metal prices since early 2021, has required a more cautious approach to mergers and acquisitions, the company added. 


We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.48
-2.3%
Rand - Pound
21.07
-0.8%
Rand - Euro
18.88
-1.2%
Rand - Aus dollar
12.10
-0.1%
Rand - Yen
0.13
-0.4%
Platinum
973.57
-5.0%
Palladium
1,621.00
-2.9%
Gold
1,865.26
-2.5%
Silver
22.34
-4.8%
Brent Crude
82.17
-0.8%
Top 40
74,082
+0.6%
All Share
80,241
+0.6%
Resource 10
75,186
+0.7%
Industrial 25
103,461
+0.8%
Financial 15
16,550
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders