Sibanye Stillwater and Glencore venture adds significant value to SA PGM chrome production
JOHANNESBURG: Sibanye-Stillwater has reported operating and financial results for the six months ended 31 December 2024, and reviewed condensed consolidated financial statements for the year ended 31 December 2024.
SALIENT FEATURES FOR THE SIX MONTHS AND YEAR ENDED 31 DECEMBER 2024
- Revenue for H2 2024 of R56.9 billion (US$3.2 million) 7% higher than for H2 2023
- Restructuring and closure of loss making operations improve profitability. Capital building initiatives secure Group Balance sheet
- Net debt : adjusted EBITDA1 of 1.79x at 31 Dec 2024 reduces to pro forma 1.08x, post proceeds of stream financing arrangement
- Group adjusted EBITDA of R6.4 billion (US$360 million) stable for the third sequential 6-month period
- SA gold – leverage to higher gold price drove a 216% increase in adjusted EBITDA1 to R3.6 billion (US$206 million) for H2 2024
- SA PGM – operating cost increase of 6% to R23,608/4Eoz (US$1,317/4Eoz) in line with inflation. AISC4 increased by 10% due to higher capex for H2 2024
- US PGM – consistent production and 27% reduction in AISC to US$1,367/2Eoz for 2024, delivered according to Q4 2024 restructuring plan
- restructured further at end 2024 due to persistently low prices
- S45x benefits for 2025 could enhance profitability of US PGM and US PGM recycling operations by combined US$60 million (R1.1 billion)
- US recycling operations (US PGM and Reldan) contribute US$32 million (R594 million) to Group adjusted EBITDA for 2024
- Australian region – Century operation adjusted EBITDA contribution of US$34 million (R641 million) for the year
- Transaction with Glencore Merafe Venture adds significant value to SA PGM chrome production
Neal Froneman, Chief Executive of Sibanye-Stillwater says that “Our strategic diversification and proactive actions in response to many of the forces currently driving global change have ensured that the Group is well positioned to sustain a longer period of low prices, and to benefit from opportunities which may emerge. The economic context may remain challenging for some time and, accordingly, our focus remains on the strategic essentials: optimizing operations for profitability and sustainability and protecting the Group balance sheet in order to secure our financial health.
The operational restructurings undertaken over the last 18 months have secured greater operational stability and have, on balance, improved the profitability of the Group, with the SA PGM operations profitable for 2024, the SA gold operations benefiting from the increasing gold price, and the Century operations in Australia and recycling operations in the US region all contributing positively to the Group. The restructuring of the US PGM operations in Q4 2024 and ongoing restructuring at Sandouville, are expected to reduce losses from those operations for 2025, further underpinning Group firmer earnings outlook.
