Sibanye Stillwater reports strong operational performance for 2020

JOHANNESBURG – Sibanye Stillwater, in its trading statement for the year ended 31 December 2020, advises that it expects to report profit attributable to the owners of the Group of between R28,726 million (US$1,745 million) and R29,898 million (US$1,816 million) for the financial year ended 31 December 2020.

This compares with and is substantially higher than profit attributable to the owners of the Group of R62 million (US$4 million) for the previous financial year.

The expected increase in earnings was underpinned by a solid Group operational performance for 2020, despite the COVID-19 disruptions (as announced on 20 January 2021) and driven by higher metal prices and a weaker rand.

The production contribution from the Marikana operations for the full 12-month period, following the acquisition of Lonmin in June 2019 and the realisation of significantly higher than forecast synergies, along with a notable return to profitability from the SA gold operations, following the strike in H1 2019, were the main drivers of this operational performance.

Average precious metal prices were significantly higher year-on-year, with the average 4E PGM basket price 83% higher to R36,651/4Eoz (US$2,227/4Eoz), the average 2E PGM basket price 36% higher to US$1,906/2Eoz (R31,373/2Eoz) and the average rand gold price 43% higher to R924,764/oz (US$1,747/oz). Depreciation of the rand relative to the US dollar also boosted revenue, with the exchange rate on average 14% weaker for the period at R16.46/US$

These increases were partially offset by:

  • Higher mining and income tax expenses
  • Loss on the early settlement of the US$ convertible bond
  • Fair value loss on deferred payment relating to the acquisition of the Rustenburg operation

The translation of rand amounts into US dollar is based on an average exchange rate of R16.46/US$ for 2020 and R14.46/US$ for 2019. This information is provided as supplementary information only.

The financial information on which this trading statement is based has not been reviewed or reported on by Sibanye-Stillwater’s auditors.

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