Sibanye Stillwater: SA PGM operations deliver consistent performance
The SA PGM operations delivered another consistent performance with 4E PGM production (including attributable production from Mimosa and excluding third party purchase of concentrate (PoC)) of 376,123 4Eoz, 3% lower year-on-year.
PGM production from the underground operations decreased by 1% to 348,940 4Eoz primarily due to the closure of 4B shaft, Marikana operation, toward the end of Q1 2024 and a delayed startup of production from the Saffy shaft during Q1 2025, due to a S54 stoppage imposed after a fatal incident on 21 December 2024, which was only uplifted by the authorities on 21 January 2025. Higher seasonal rainfalls which persisted throughout
Q1 2025, contributed to surface production declining by 24% to 27,183 4Eoz. 4E PGM production of 393,876 4Eoz (including attributable production from Mimosa and PoC) was 5% lower than for Q1 2024, with PoC purchases of 17,753 4Eoz, 31% lower in line with revised annual contractual agreements.
Costs continued to be well contained with total operating costs (excluding PoC) for Q1 2025 1% lower at R9.3 billion (US$502 million) than for Q1 2024 with the cost benefits of the restructuring and closure of 4B shaft in Q1 2024, helping to offset annual inflationary effects. This resulted in unit operating cost (excluding PoC) increasing by 2% to R26,683/4Eoz (US$1,444/4Eoz), well below annual inflation. AISC (excluding PoC) for Q1 2025 increased by 6% year-on-year to R24,599/4Eoz (US$1,331/4Eoz) with AISC (including PoC) also increasing by 6% year-on-year to R24,331/4Eoz (US$1,317/4Eoz), primarily due to 13% lower by-product credits (R358 million (US$16 million) lower to R2.4 billion (US$132 million)). Chrome sales were 21% lower year-on-year due to timing of sales after the Q1 2025 close and a 20% decrease in the market chrome price compared to Q1 2024. Chrome sales are expected to normalise for Q2 2025. Chrome as a percentage of by-product credits therefore declined from 55% in Q1 2024 to 38% in Q1 2025, with by-product credits contributing R6,586/4Eoz (US$356/4Eoz) to AISC (including PoC) for Q1 2025 compared with R7,514/4Eoz) (US$398/4Eoz) for Q1 2024. PoC purchase costs decreased by 16% year-on-year to R496 million(US$27 million).
Capital expenditure of R1.2 billion (US$64 million) for Q1 2025 was 5% higher than for Q1 2024 with ORD increasing by 1% to R548 million (US$30 million) and sustaining capital increasing by 9% to R470 million (US$25 million). Project capital of R167 million was 8% higher due to project study work done on the Siphumelele mechanised UG2 project, Marikana E4 project and the Marikana pit tailing storage facility (TSF) project, with project expenditure at the K4 shaft maintained at R154 million (US$8 million) in line with Q1 2024.
Adjusted EBITDA for Q1 2025, increased by 74% to R2.5 billion (US$137 million), due to the solid operating and cost performance underpinned by the proactive restructuring undertaken since H2 2023, and boosted by a 5% increase in the average PGM basket price to R25,165/4Eoz (US$1,362/4Eoz).
