Gold shines for Sibanye-Stillwater
The strategic importance of the Sibanye-Stillwater’s diversified portfolio of metals, was again reinforced by the significant increase in the financial contribution of the SA gold operations to the Group. These mature mines, buoyed by the tailwind of a strong gold price, delivered materially better financial results for 2024, during a challenging period for most of its other metals, which are more aligned with industrial economic cycles.
Due to a largely improved operating performance for H2 2024 and a 26% increase in the average rand gold price compared with H2 2023, adjusted EBITDA from the SA gold operations increased by R2.5 billion to R3.6 billion for H2 2024, which was R1.0 billion or 38% higher than adjusted EBITDA from the SA PGM operations for H2 2024, and accounted for 56% of Group adjusted EBITDA for the period.
This was the first 6-month period since 2017 that adjusted EBITDA from the SA gold operations has exceeded the contribution from the SA PGM operations and marks a notable turnaround from previous years when the SA PGM and US PGM operations comprised 80%-90% of Group earnings and sustained the Group during a period when the SA gold operations experienced significant operational disruptions.
The significant increase in the profit from the SA gold operations and restructuring of the Group operations have, on balance, stabilised
Group profitability. Group adjusted EBITDA of R6.4 billion (US$360 million) for H2 2024 was in line with adjusted EBITDA of R6.4 billion (US$340 million) for H2 2023, marking the third consecutive 6-month period of consistent Group adjusted EBITDA.
