Sibanye Stillwater (SBSW) H1 2024 earnings summary

Executive summary

• Strengthened balance sheet and increased liquidity by over ZAR 25 billion (US$1.4 billion) through refinancing, green loans, and prepay arrangements.

• Proactive operational restructuring across regions, especially in the U.S. and South Africa, to optimize costs and preserve margins amid lower commodity prices.

• Record safety performance achieved, with lowest serious injury frequency rate since 2013 and ongoing ESG and Net Zero initiatives.

• Earnings and cash flow impacted by significant decline in PGM basket prices, resulting in a basic loss of ZAR 7.5 billion (US$397 million) and a US PGM impairment of ZAR 7.5 billion (US$401 million).

• Exposure to key metals (PGMs, lithium, gold, zinc) positions the business for future growth as market fundamentals improve.

Financial highlights

• Revenue down 9% year-over-year to ZAR 55.2 billion (US$2.95 billion), mainly due to a 28% drop in PGM basket prices and a 53% drop in U.S. PGM recycling prices.

• Adjusted EBITDA at ZAR 6.6 billion (US$355 million), nearly half of the prior year, mainly from lower revenues.

• Basic loss of ZAR 7.5 billion (US$397 million), driven by a ZAR 7.5 billion impairment of U.S. PGM operations; headline earnings at ZAR 137 million.

• Net debt at ZAR 18.7 billion (US$1.0 billion), with gross debt 9% lower than year-end 2023; liquidity headroom just under ZAR 40 billion (US$2.1 billion).

• No interim dividend declared for H1 2024 due to negative free cash flow and normalised earnings loss.

Outlook and guidance

• Guidance revised for South African gold (16,500–17,500kg; 530–563koz) due to restructuring and seismicity, with higher AISC guidance.

• Keliber lithium project capex for 2024 reduced to €300 million; project fully funded with €500 million green loan.

• U.S. PGM restructuring to reduce production by 200,000 oz in 2025, targeting all-in sustaining costs of $1,000/oz over 2–3 years.

• Sufficient liquidity to withstand prolonged low commodity prices and fund key projects.

• Operational improvements expected from SA gold in H2 2024 and 2025.