Century zinc retreatment operation produces 27kt of payable zinc
Sibanye Stillwater reports that the Century operation delivered a solid operational performance for Q3 2024, producing 27kt of payable zinc, a 9% increase compared with Q3 2023’s 25kt.
Sales for the quarter totalled 20kt of payable zinc metal, which was lower than production due to the timing of shipments. AISC for Q3 2024 of US$1,809/tZn (R32,486/tZn) was 3% higher than for Q3 2023.
Sustaining capital from the Century operations for Q3 2024 was US$1.7 million (R30 million). Adjusted EBITDA of US$31 million (R565 million) was US$28 million (R512 million) higher than for Q3 2023.
Unfortunately this solid performance from the Century retreatment operation will be affected by the regional fire impact during Q4 2024, with the operations expected to resume production in mid November 2024.
Significant efforts have been made to minimise future impacts on the operations from rains during the wet season (particularly during the first quarter of the year), including the addition of two satellite slurry winning pontoons, additional dewatering pumping infrastructure, an improved debris removal system, and additional water diversion bunds, and we expect that the strong operational and financial performance from Q3 2024, will continue in 2025.
In early October 2024, the Century operation in Queensland, Australia was impacted by a regional bushfire. While the operations team succeeded in protecting the primary infrastructure at the Century operations (processing plant, hydro mine, airport, underground slurry pipeline and camp), there has been extensive loss of surface piping infrastructure, including the feed and water lines that connect the hydro mine to the processing plant and other key service lines. Suppliers have been contacted and replacement piping is under manufacture and being delivered. Due to the amount of piping required, operations are expected to remain suspended until 16 November 2024. As a result, we anticipate production of payable zinc metal for Q4 2024 to be approximately 9,680 tonnes less than forecast. Operating guidance for 2024 has revised accordingly (please refer to the Operating guidance section below).
Options to leverage the existing infrastructure (processing plant, pipeline and port infrastructure) and extend the life of the assets beyond the current zinc retreatment operations are being actively explored. This includes opportunities to potentially utilise the Century infrastructure to access the extensive phosphate resources in the region that are largely undeveloped.
Mt Lyell copper project
The Class 3 Feasibility Study received endorsement, leading to the start of optimisation work for the Class 2 Feasibility Study, focusing on resource model updates, value optimisation, and mine design. A total of US$2 million (R36 million) of expenses were recognised in relation to Mt Lyell during the quarter.
