Sibanye-Stillwater has reported a nine per cent year-on-year increase in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to $US184 million ($281 million).
The result, which was revealed in Sibanye’s September 2024 quarterly report (Q3 2024) was credited to Sibanye’s efforts to optimise its operations and improve Group profitability.
Sibanye’s South African (SA) gold operations were a particular highlight for the quarter, generating a 292 per cent increase in adjusted EBITDA to $US75 million ($114.5 million) thanks to a 24 per cent rise in the rand gold price. A total of 179,465 ounces (oz) were produced by the SA gold operations during the quarter.
Sibanye’s SA platinum group metals (PGM) operations delivered a five per cent increase in platinum, palladium, rhodium and gold (4E PGM) production, producing 473,938oz of 4E PGM. The result delivered an adjusted EBITDA of $US88 million ($134 million).
The Century operation in Queensland also delivered a strong quarterly performance, producing 27,000 tonnes of zinc. The result is a nine per cent increase in zinc production compared to the September 2023 quarter. The outcome from Century is especially welcome following Sibanye temporarily closing the operation due to a regional bushfire.
“This improved financial performance was primarily due to significantly improved financial contributions from the SA (South African) gold operations and the Century retreatment operations in Australia which, due to greater operational stability and higher metal prices during Q3 2024, were able to deliver significantly improved financial contributions to the Group,” Sibanye chief executive officer Neal Foreman said.
“Despite solid operational delivery from the SA PGM and US PGM operations, persistent low PGM prices continued to squeeze margins, negatively impacting Group adjusted EBITDA. Further financial benefits are expected to materialise from the operational restructuring and optimisation undertaken to date which, together with restructuring of the US PGM operations and Sandouville refinery, are expected to further improve Group profitability.”
Sibanye also secured a €500 million ($821.6 million) green financing loan for the Keliber lithium project, which is intended to produce battery-grade lithium hydroxide for lithium-ion batteries.
The funds will be used to construct and develop its lithium mining, processing and refining facilities in Kaustinen, Kronoby and Kokkola, all in Finland.
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