Sibanye warns on profit, shares tumble

Stillwater mine (Credit: Sibanye Stillwater)

Sibanye Stillwater’s shares fell 5% on Wednesday after the miner said it expected its half-year profit to be halved, citing a strike at its South African gold mines and flooding at its US platinum group metal (PGM) operations which hit production.

Sibanye said its headline earnings per share (HEPS) – the main profit measure for South African companies – would be between 4.02 rand ($0.2447) and 4.47 rand for the six months to June 30, down from 8.43 rand a year earlier.

The company said gold production fell by 77% in the first half following a strike at its South African gold operations between March 9 and June 13.

A seven-week suspension of production at Sibanye’s US PGM operations following floods resulted in a 23% fall in output from the Montana operations, the company said in a trading update.

Sibanye said it had also realized lower prices for its basket of commodities, with PGM prices having come off historical highs seen during the first half of 2021 as the global economy emerged from covid-19 lockdowns.

The company expects to release its half-year financial results on Aug. 25.

($1 = 16.4269 rand)

(By Nelson Banya; Editing by Edmund Blair and Jason Neely)

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