SIBANYE-Stillwater will report sharply higher headline profits for the six months to end-June but will still record a basic earnings loss because of impairment charges to its US platinum group metal (PGM) operations and the Keliber lithium project.
In a trading statement released today the group said it expected headline earnings per share of between 180 SA cents and 200 SA cents (six months to end-June 2024 – 10c) but would report an earnings loss of between 120c SA cents a share and 133 SA cents (previously loss of 259c a share).
According to Sibanye-Stillwater, US President Donald Trump’s One Big Beautiful Bill Act (OBBBA) which became law on July 4 amended the treatment of Section 45X credits for critical minerals. These were previously assumed to be evergreen in terms of the Inflation Reduction Act but will now be phased out from 2031 to 2034 after which the credits will be terminated.
This reduced the forecast value of previously assumed annual Section 45X credits from 2031 onwards resulting in the impairment.
The impairment of the Keliber lithium project resulted from lower forecast lithium prices and a change in the assumed discount rate which reduced forecast cash flows and the estimated recoverable amount.
Sibanye-Stillwater said its South African gold operations reported improved profitability because of the 36% increase in the average rand gold price received year-on-year which was partially offset by “operational constraints”.
These included increased inventory and ore stockpiles at the South African gold and platinum operations and lower-than-produced metal sales.
Sibanye-Stillwater added there were reduced losses from the US PGM operations “following the restructuring and repositioning” during the first half of 2023 and 2024.
The statement said production from all group operations other than the South African gold operations was within annual guidance ranges for 2025. The South African PGM operations delivered “steady operating results” and produced 804,242 ounces of PGM.
But the operational challenges which hit production from the South African gold mines in the first quarter of 2025 continued in the second quarter and resulted in production for the first six months of 2025 dropping 13% year-on-year to 300,191oz which was below planned levels.
Production for the second half of 2025 is expected to increase boosting revenue and earnings, “should the rand gold price remain at current levels.”
Sibanye-Stillwater also pointed out that “PGM prices have rallied sharply since May 2025 with the average basket price for the third quarter of 2025 to date 19% higher than for the first half of 2025. Should these higher prices continue during the second half of 2025 the South African PGM operations are likely to experience significantly higher earnings.”
