Sibanye is on the verge of a major change, as its long-standing CEO Neal Froneman prepares to step down at the end of the month. He will be replaced by Richard Stewart, marking the end of an era for the mining giant.
Despite the leadership transition, Sibanye has shown resilience, driven by soaring gold prices and a rebound in platinum group metals (PGMs). Over the six months ending in June, the company reported strong financial progress, boosted by record-high gold prices. The group earned R5.1 billion in US PGM production credits, which helped push headline earnings up by an impressive 19 times to R5.4 billion compared to the previous half-year.
However, the company faced setbacks too. Due to changes in US policies and sluggish lithium markets, Sibanye wrote down the value of several assets. The company recognised nearly R10 billion in impairments, resulting in a net loss of R3.6 billion for the period. One of the biggest impairments was R5.34 billion on its Keliber lithium project in Finland, which was affected by an oversupply in lithium and low market prices.
Another R3.83 billion impairment was recorded on Sibanye’s US PGM operations after the US government withdrew certain production credits. President Trump’s new legislation, signed into law in July, plans to phase out these tax credits between 2031 and 2034. Despite this, Sibanye’s US operations remain strategically vital, as they are the only primary PGM source in the country, playing a critical role in energy and military technologies.
The US PGM operations still benefit from the “critical minerals” support under the Inflation Reduction Act, enjoying $159 million (around R2.8 billion) in production credits during the period. Apart from impairments, Sibanye’s US operations posted a significant rise in earnings, with adjusted EBITDA jumping from $27 million to $151 million.
In South Africa, PGM production dipped slightly to just over 800,000 ounces, with adjusted EBITDA falling slightly to $260 million. Meanwhile, gold output suffered a 14% decline, with sales dropping 21% year-on-year, partly due to rising electricity costs and gold theft at local mines.
Despite these challenges, Sibanye’s gold operations benefited from soaring prices, more than doubling their adjusted EBITDA to R4.8 billion. In his final results as CEO, Neal Froneman expressed confidence that the company’s strategic restructuring — focusing on high-cost mines and shutting down unprofitable shafts — had set the stage for future success. His leadership leaves Sibanye at a pivotal point, facing both opportunities and uncertainties ahead.