Sibanye-Stillwater expects big jump in first-half profits

The Marikana platinum mine, located near Rustenburg, about 112km from Johannesburg. (Image courtesy of Sibanye-Stillwater)

South African miner Sibanye-Stillwater said on Thursday it expected half-year earnings to rise by more than 138%, driven by higher production that followed a covid-19 lockdown and higher metals prices.

Headline earnings per share, the main profit measure in South Africa, are expected to rise to between 835 South African cents and 852 cents in the six months ended June 30, up from 350 cents in the previous comparable period.

The precious metals miner said lower outstanding debt, resulting in a decrease in finance costs had also contributed to the profit increase.

“The group again delivered a solid operating performance, which underpinned the strong financial performance, ensuring leverage to higher precious metal prices and offsetting the impact of the 13% stronger rand against the U.S. dollar,” it said.

Production rose 41% to 928,992 ounces year on year at its South African platinum group metals operations. The company’s U.S. output was flat at 298,301 ounces due to a 21 day safety-related work stoppage in June, which reduced production by about 20,000 ounces, Sibanye said.

Gold production at its South Africa operations rose by 29% to 518,848 ounces.

Sibanye expects to release its half-year results on August 26.

(By Nqobile Dludla; Editing by David Evans and Jane Merriman)

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