Sibanye-Stillwater has officially appointed Dr Richard Stewart as its new CEO, marking a significant transition in the mining major’s growth narrative, which was previously shaped by former CEO Neal Froneman. Stewart steps into this role as the company enjoys a remarkable 200% increase in share price since the start of the year, fueled by a resurgence in platinum group metals (PGM) and rising gold prices.
Stewart faces a range of challenges, including illegal mining, cable theft, escalating power costs, and the shifting landscape of global critical mineral policies. Froneman, the architect of Sibanye’s transformation over the past 12 years, transformed the company from a local gold miner into a prominent player in the international precious metals market. He was instrumental in founding Sibanye in 2013 through the unbundling of Gold Fields’ South African mines and expanding into the PGM sector with the acquisition of Stillwater Mining Company in 2017.
Under Froneman’s leadership, Sibanye grew into a PGM powerhouse, now valued at R140 billion on the Johannesburg Stock Exchange (JSE). The company returned over R46 billion to shareholders through dividends and share buybacks between 2013 and June 2024, according to its latest annual results.
The recent surge in platinum prices, reaching 12-year highs, has been driven by supply constraints and increased demand for hybrid electric vehicles, which have contributed to elevated safe-haven demand. Sibanye’s US PGM operations have also played a crucial role in its attractiveness to investors, particularly during Donald Trump’s second presidential term, as they provide the only primary PGM supply source in the US.
However, the outlook for Sibanye’s US operations shifted in July when Trump announced plans to phase out production credits for local PGM miners, potentially impacting profitability without state support.
In South Africa, the company grapples with rising illegal mining activities and theft, exacerbated by record gold prices. Last year, Sibanye reported the highest number of illegal mining incidents in over a decade, while copper cable theft at its PGM operations resulted in direct financial losses of R53.4 million in 2022 and R113 million in 2023.
Additionally, increasing electricity tariffs have made power a more significant portion of operating costs, rising from 9% in 2007 to 23% today. Regular disruptions to water supply have compelled the company to invest hundreds of millions to reduce reliance on municipal resources, particularly critical given the water-scarce location of its SA PGM operations in the Bushveld Complex.
Stewart’s Academic Credentials
– BSc (Honours) in Geology (Witwatersrand)
– PhD in Geology (Witwatersrand)
– MBA – Warwick Business School, UK
– Registered Natural Scientist (PrSciNat);
– Fellow of the Geological Society of South Africa
Sibanye Professional Roles (25+ Years)
– Executive Vice President: Business Development
– Group COO, appointed December 2020
– Chief Regional Officer: Southern Africa, appointed May 2022
Previous Positions Outside Sibanye
– Executive Vice President: Technical Services, Gold One (prior to 2014)
– Chief Executive Officer, Goliath Gold Limited
– Management roles at the Council for Scientific and Industrial Research (CSIR), Shango Solutions (consultancy), Uranium One, and African Global Capital (as Investment Consultant)
Industry Leadership & Other Credentials
– Vice President, Minerals Council South Africa
– Over 25 years’ experience in South Africa’s geological and mining sectors
In a statement, Stewart expressed gratitude for Froneman’s “visionary leadership” and welcomed Mduduzi Bhulose as the new executive vice-president of business development. Bhulose brings 21 years of experience in investment and mining, having worked with notable firms such as Anglo American, Rand Merchant Bank, and the Public Investment Corporation, where he was head of listed equities.