By: Mining review Africa

Sibanye-Stillwater expects to report a loss per share (EPS) for 2024 between 245 SA cents (13 US cents) and 271 SA cents (15 US cents), representing a significant improvement from the 1,334 SA cents (72 US cents) loss reported in 2023. This marks an enhancement of 80% to 82% year-on-year.

This announcement forms part of the company’s trading statement, in compliance with JSE Limited Listing Requirements, which mandate disclosure when anticipated results differ by at least 20% from the previous period. Sibanye-Stillwater will release its financial and operational results for the second half and full year ending December 31, 2024, on February 21, 2025.

The anticipated EPS figures have been notably impacted by an impairment of R8,791 million (US$501 million) in property, plant, and equipment from its U.S. platinum group metals (PGM) operations. This impairment stems from revised long-term palladium price forecasts and restructuring efforts in Q4 2024, which included suspending operations at the Stillwater West mine and scaling back mining at the East Boulder mine. As a result, production in 2025 is expected to decrease by approximately 200,000 2Eoz compared to the guidance for 2024.

On the other hand, Headline Earnings Per Share (HEPS) for 2024 are anticipated to be positive between 63 SA cents (3 US cents) and 67 SA cents (4 US cents), representing modest year-on-year improvement of 0% to 7%. This positive outlook is attributed to several factors: reduced impairments, increased net gains on financial instruments—primarily from fair value gains on convertible bonds—improved results from equity-accounted investees following prior impairments, decreased costs related to onerous contracts, and additional income from insurance proceeds. However, challenges remain due to continued low average PGM basket prices leading to reduced revenue and increased costs of sales at Marikana operations.

The company also released a 2024 production update. Group production was in line with guidance except U.S PGM operations and the Century operation, which fell short due to restructuring and bushfires in the area. In South Africa, PGM production was 1,835,410 4Eoz, a 4% year-on-year improvement on the back of the acquisition of Anglo American Platinum’s stake in the Kroondal pool. Production was however disrupted by operational issues such as infrastructure breakdowns and labor unrest.

The US PGM operations were strong with production of 425,842 2Eoz, as per 2023 levels. Recycling operations were also satisfactory, processing 316,470 3Eoz, under prevailing market conditions. Gold mining from operated operations fell by 16% to 16,896 kg, primarily due to the Kloof 4 shaft closure and seismically induced events.

In Europe, nickel production at the Sandouville refinery was 7,705 tonnes, an 8% rise based on improved operational stability, while the Australian Century’s zinc operation produced 82 kilo tonnes of payable zinc that was, however, affected by adverse weather and bushfire incidents.