Sibanye-Stillwater on track after better second quarter

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Sibanye-Stillwater on track after better second quarter

Published Date: 2019-08-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sibanye-Stillwater on track after better second quarter

The mining group's US platinum operations bounced back in the three months to June as its SA gold mines recovered from a five-month strike.

Sibanye-Stillwater says it's on track to meet its annual guidance following a much improved second quarter for its three divisions.

In an operating update, the gold and platinum producer said its US Stillwater platinum group metals (PGMs) operation increased production by 18% to 153,874 ounces in the three months to end-June after a slower than anticipated start to the year. And it managed to cut all-in sustaining costs by 13% to about $723 an ounce. First-half production from Stillwater reached 284,773 ounces and it said the planned clawback of production remained on track, with a significant improvement in production and costs forecast for the second half of the year.

Meanwhile, the consistent operational performance from its SA PGM operations continued, with second-quarter production rising 8% to 283,526 ounces and all-in sustaining costs declining by 2% from a quarter earlier. It expects annual production to be at the upper end of its guidance as the second half of its calendar year is generally better from an operational perspective. It's excluded Marikana, acquired with its takeover of Lonmin, from its guidance numbers as it will only be consolidated for the month of June when it was acquired.

The group said the resumption and build-up of production from its SA gold operations following the end to a five-month strike in April had progressed according to plan, with second-quarter gold production of 155,956 ounces, 46% higher than the prior quarter. It expected production to normalise from August, with forecast production of between 514,000 and 546,000 ounces in the second half of the year.

The average exchange rate for the first half of the year was $14.20 from $12.31 in the first half of 2018.

It expects to release its half-year results on 29 August. Its shares fell 2.7% to R20.08 on Thursday.





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