Sibanye Stillwater Limited has released its operating and financial outcomes for the six months ending 31 December 2023, along with its reviewed condensed consolidated financial statements for the year. The Johannesburg-based mining group experienced a challenging year, marked by a regrettable increase in fatalities primarily due to an incident involving a contractor at the Burnstone conveyor.
Financial highlights reveal an 18% decrease in revenue compared to 2022, attributed mainly to the downturn in platinum group metals (PGM) and nickel prices. The period culminated in a substantial loss of R37.4 billion (US$2.0 billion), including significant non-cash impairments totaling R47.5 billion (US$2.6 billion). Consequently, no final dividend was declared, with an interim dividend of 53 SA cents per share, equating to an annual yield of 2.1%.
Despite these setbacks, Sibanye-Stillwater undertook proactive measures to rebase high-cost operations, anticipating R6.6 billion in cost savings and capital preservation. The company maintained a robust balance sheet, with a net debt to adjusted EBITDA ratio of 0.58x at year-end.
The South African (SA) gold operations saw a notable turnaround, posting an adjusted EBITDA of R7.1 billion (US$412 million). Meanwhile, SA PGM operations continued to improve their position on the cost curve, with a modest 4% increase in unit costs. On the development front, construction of the Keliber lithium refinery began in Q1 2023, with concentrator earthworks starting in Q4 2023.
The report also detailed the integration of Rustenburg Platinum Mines Limited's 50% ownership into Sibanye Rustenburg Platinum Mines Limited, effective from 1 November 2023, thus including Kroondal at 100% for the last two months of the year.
