Sibanye-Stillwater delivers knockout quarterlies

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Sibanye-Stillwater delivers knockout quarterlies

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Published Date: 2021-05-07 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sibanye-Stillwater delivers knockout quarterlies

Core quarterly earnings from its local PGM operations came in higher than the cost of buying them.

Sibanye-Stillwater has delivered a record first-quarter performance as it built on the operational momentum it achieved at the end of last year and benefitted from higher prices for the precious metals it mines. It says the improvement came off a high base set in the first quarter of last year, which was also a record quarter.

The gold and platinum group metals (PGMs) producer said despite ongoing adherence to Covid-19 protocols, with its SA operations having to manage the health and safety challenges associated with the second wave of infections, its SA gold and PMG operations, as well as its US PGM business, all reported higher year-on-year output.

Production at its SA PGM operations rose 6%, while US PGM output came in 9% higher. Its local gold mines increased production by 5%. Over the quarter, palladium and rhodium prices reached record levels due to ongoing supply disruptions and strong physical demand. The average rand price for gold was 8% higher than the same period last year.

Its SA PGM operations in particular benefitted from the strong operational performance, delivering a 90% increase in adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) to R15.3-billion. Group adjusted Ebitda increased by 78% from a year earlier to R19.8-billion.

Sibanye-Stillwater said PGM prices had continued to rise in the second quarter, while the gold price held firm. Due to its rapid growth in the PGM industry, along with the significant outperformance of PGM prices relative to most commodities in recent years, its PGM operations were the predominant contributor to earnings. To help balance its portfolio, it plans to grow its gold portfolio internationally and to advance its green metals strategy. In March it made its first investment into the Keliber lithium project in Finland.

The company's shares closed 1.2% up at R66.80 yesterday.





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