Platinum prices weigh on Sibanye Stillwater’s Q3 earnings

Sibanye Stillwater reported a 5% fall in quarterly core earnings on Thursday due to lower average prices for gold and platinum but said prices are stabilising and the outlook for precious metals is positive.

The South Africa-based miner said group adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to 14.90 billion rand ($984.02 million) for the three months ended Sept. 30, from 15.59 billion rand a year earlier.

South African platinum group metals (PGM) production increased by 20% year-on-year and costs declined by 4%, while the South African gold mines produced 2% more than the same period last year, reflecting a normalisation of mining activities after pandemic-related disruptions.

PGM prices fell in the third quarter as the global semiconductor shortage hit demand from the car industry, but Sibanye said it was confident supply chain constraints should start easing in 2022.

Sibanye said its covid-19 vaccine rollout was going well, with about 50,000 of its full-time employees in South Africa vaccinated by Oct 21.

($1 = 15.1419 rand)

(By Shanima A; Editing by Ramakrishnan M. And Barbara Lewis)