Sibanye-Stillwater delivers record earnings

Published Date: 2021-02-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

A strong operational performance coincided with stronger metal prices and a weaker rand.

Sibanye-Stillwater has delivered a record financial performance for its 2020 financial year, which it attributes to the benefits of the strategic growth and diversification it's undertaken in recent years. Last year also marked the end of a three-year deleveraging programme, which saw it reduce debt.

Releasing results for the year to end-December, the gold and platinum group metals (PGMs) group said output at all its three operating segments was consistent with the prior year. The build-up to normalised production levels at its SA operations from the Covid-19 lockdown in the second quarter of the year exceeded forecasts despite the adoption of a phased return to work. Both its SA gold and PGM operations reached normalised production rates in November, positioning it for an improved operational performance this year.

The company said last year's strong performance underpinned its financial results by obtaining full exposure to higher precious metals prices and a weaker rand. Group revenue increased 75% to R127 billion from a year earlier and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 230% to R49.4 billion. Attributable profit surged to R29.3 billion from R62 million in 2019. Headline earnings per share rose to R10.68, a year-on-year increase of 2,770%. It reduced borrowings by R5.35 billion to R18.4 billion and has declared a full-year dividend of 371c per share.

The company's shares fell 0.9% to R68.80 yesterday, reducing gains for the year to 15%.