Sibanye-Stillwater has reported a narrowed annual loss, thanks to a strong performance from its South African gold operations and the restructuring of underperforming assets. The company’s headline earnings reached R1.817 billion, compared to a loss the previous year. The net loss also significantly decreased to R5.71 billion from a massive R37.43 billion. This improvement translates to a loss of 258 cents per share, down from a loss of 1,334 cents per share.
Sibanye highlighted the importance of its diversified portfolio, noting the substantial contribution from its SA gold operations. These mature mines, benefiting from high gold prices, delivered significantly improved results, offsetting challenges faced by other metals more closely tied to industrial economic cycles. A strong second half of the year, coupled with a 26% increase in the average rand gold price, boosted adjusted earnings from SA gold operations by R2.5 billion to R3.6 billion. Notably, these operations generated 38% higher adjusted earnings than the SA PGM operations and accounted for 56% of the group’s total adjusted earnings during this period.
CEO Neal Froneman stated that the company’s strategic diversification and proactive measures have positioned it well to weather prolonged periods of low prices and capitalise on emerging opportunities. He emphasised the focus on operational efficiency, sustainability, and maintaining a healthy balance sheet. Froneman also noted that recent restructurings have improved operational stability and profitability across the group, with SA PGM operations remaining profitable, SA gold benefiting from rising gold prices, and the Century operations in Australia and US recycling operations all contributing positively. Further restructurings in US PGM operations and Sandouville are expected to reduce losses in 2025, strengthening the company’s earnings outlook. Production forecasts were also provided for PGM and gold operations in 2025.