Sibanye-Stillwater likely to miss guidance

print

Sibanye-Stillwater likely to miss guidance

Published Date: 2020-03-26 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sibanye-Stillwater likely to miss guidance

The group is placing its local mines on care and maintenance and scaling back on new project work in the US.

Sibanye-Stillwater has joined a number of other gold and platinum producers preparing to scale down operations due to the 21-day nationwide lockdown, which starts at midnight.

The mining group said it had begun implementing measures to place its local operations on temporary care and maintenance and subsequently facilitate the safe resumption of operations post the lockdown period.

It said the suspension would adversely impact production at the SA mines and that output this year may differ from its previous guidance.

On Monday, it announced it would significantly reduce the number of people at its US sites, while maintaining production from its current operations at its Stillwater and East Boulder mines. It planned to demobilise contractors involved in new projects, facilitate remote work for employees not required on site, prohibit face-to-face contact with external parties and restrict site access to employees. It said this would affect its Blitz project, which accounts for the majority of contract workers at the US platinum group metals (PGMs) operations.

The group said its US PGM operations were considered a "critical infrastructure industry" as defined by the Cybersecurity and Infrastructure Agency, with PGMs essential components of many chemical, medical and biochemical applications. This included the use of PGMs in many drugs used to treat a wide range of cancers, pacemaker electrodes, catheters, guides for arthroscopic surgery and in self-rescuer masks used by first responders. Platinum is also an essential catalyst in petrochemical plants necessary for energy production.

Its shares rose 12% to R25.22 yesterday.





Similar Stories