Sibanye-Stillwater posts record profit on upbeat commodity prices

Driefontein gold mine. (Image courtesy of Sibanye-Stillwater)

South African miner Sibanye-Stillwater reported on Thursday a stronger profit and 20% increase in South African platinum group metals (PGM) production for 2021, buoyed by a surge in commodity prices.

Sibanye’s profit increased by 13% in 2021 to 33.1 billion rand ($2.16 billion) from 29.3 billion rand in the year-ago period, in what Chief Executive Officer Neal Froneman said was a record.

At Sibanye’s South African PGM operations, production jumped to 1.9 million ounces, while all-in sustaining costs – a measure of the cost of mining – fell by 5%, against a trend of increasing costs across the mining industry.

Sibanye, which is in negotiations with unions over wages at its South African gold operations, reiterated that it has been unable to reach an agreement with organised labour representatives.

While talks with three unions are underway, the Solidarity union split from the rest on Wednesday by announcing it accepted Sibanye’s final wage offer of a 5% annual pay increase.

($1 = 15.3245 rand)

(By Helen Reid; Editing by Jacqueline Wong and Sherry Jacob-Phillips)

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