Sandouville nickel refinery produces 13% less nickel equivalent

For Q3 2024, Sibanye Stillwater reports that nickel equivalent production from the Sandouville refinery of 2,039tNi, was 13% lower than for Q3 2023 (2,352tNi). Nickel metal output declined by 5% to 1,835tNi (Q3 2023: 1,925tNi), and nickel salts production decreased by 52% to 204tNi (Q3 2023: 427tNi).

Production was affected by a temporary shortage of starter sheets, which resulted from an electrical rectifier malfunction, and the ramp-up of the new bagging machine, while nickel carbonate production was stopped due to low customer demand.

The Q3 2024 nickel-equivalent sustaining cost of US$22,451/tNi (R403,217/tNi) was 29% lower than for Q3 2023, primarily due to lower feedstock costs due to a 13% decrease in the average LME nickel price, lower energy and reagent costs and savings on fixed costs.

By-product credits of US$2 million (R30 million) were 20% lower year-on-year, with sustaining capital 58% lower to US$2 million (R33 million), primarily to ensure plant maintenance and stability.

Nickel metal sales remained steady at 1,657tNi, with nickel salt sales of 270tNi decreasing 6% year-on-year. Total working capital decreased by 19%, from US$24 million to US$20 million. The adjusted EBITDA loss for Q3 2024 was US$8 million (R152 million), which is nearly half of the US$16 million (R296 million) loss recorded in Q3 2023.