Sibanye Stillwater has posted a robust financial outcome for the quarter ending in September, with earnings enhanced by elevated metals prices and improved operational consistency following restructurings over the past two years. The new chief executive, who assumed the role on 1 October after the previous leader’s departure, highlighted that the reliable performance across all group activities supported a solid financial result, coupled with rising commodity values, leading to a 198 per cent rise in group adjusted earnings before interest, tax, depreciation, and amortisation to R9.9 billion. As reported by Moneyweb, this figure included contributions from various segments, with the South African platinum group metals operations delivering an adjusted EBITDA of R5.0 billion, up 213 per cent year-on-year.
All segments made positive contributions on an operating cost and all-in sustaining cost basis, with the exception of the Sandouville nickel refinery in France, which is undergoing a phased reduction in output before being placed under care and maintenance. The executive noted that the elevated earnings demonstrated the group’s substantial exposure to higher precious metals prices, which have continued their upward trajectory into the fourth quarter. According to Miningmx, the average basket price for South African PGMs climbed to R32,438 per 4E ounce, contributing to the tripling of overall EBITDA compared to the previous year.
In a climate of macroeconomic and sociopolitical uncertainty, shifts are unavoidable, and increased volatility in commodity prices is anticipated in the short term. Nevertheless, the prospects for precious metals prices appear favourable for the remainder of 2025 and extending into 2026. The uncertain global environment bolsters gold as a traditional refuge asset, while the recent surge in platinum group metals prices has been fuelled by greater investment interest and replenishment of stocks, influenced by macroeconomic concerns, with long-term support from sound market fundamentals.
The South African PGM operations yielded 493,863 ounces, marking a 4 per cent increase year-on-year and a 15 per cent rise from the prior quarter. Steady output, effective cost management, and a 36 per cent higher basket price underpinned the earnings. As detailed by Moneyweb, underground production rose 8 per cent to 464,803 ounces, while surface processing declined 31 per cent to 29,060 ounces. The group’s South African gold operations, inclusive of DRDGOLD, exhibited enhanced performance alongside a 35 per cent higher average gold price. Production stood at 137,637 ounces, consistent with the third quarter of the previous year, with recoveries at Driefontein and Beatrix offsetting earlier setbacks.
Output from the US PGM operations aligned with the planned results from the restructuring in the fourth quarter of 2024, showing a 6 per cent improvement from the second quarter. The return to profitability in these US activities affirms the strategic choice to reorganise them progressively since mid-2022. According to Miningmx, the Stillwater mine in the US generated US$33 million in adjusted EBITDA, including credits, signifying a recovery from near-collapse conditions the previous year.
The company has retained its annual operational projections, expecting all segments to achieve their targets for 2025. Additional efforts include a focus on safety, with the year-to-date total recordable injury frequency rate below four, and commitments to decarbonisation, such as the commissioning of renewable energy projects that have already yielded savings and reduced emissions. As reported by Moneyweb, two fatalities occurred during the quarter, underscoring the ongoing dedication to eliminating such incidents. Looking ahead, challenges for 2026 involve replanning at the Kloof gold mine and assessing the ramp-up of the Keliber lithium project amid market surpluses, as noted in various analyses of the results.