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Precious metals miner Sibanye-Stillwater said on Friday its headline earnings per share could halve in the six months to end-June, amid pressure on its platinum group metal (PGM) operations as a result of production challenges in the US, as well as lower prices.
Headline earnings per share are expected to fall in a range of 48% to 53% to end-June, it said in a trading update, having generated R11.9 billion of this profit measure in the prior comparative period.
Sibanye said profits were under pressure from a 22% decline in the average rand price of the basket of four PGM metals it produces, with SA production declining only slightly to 848 723 ounces. US production fell 11% to 205 513 ounces of the two metals it produces there, under pressure from a skills shortage and a shaft incident in Montana, US that resulted in damaged equipment, but no injuries.
READ | Shaft incident to hit Sibanye US production
Sibanye did get a boost from gold - the price of which rose 22% amid an 18% depreciation of the rand - while production from the SA-managed gold operations surged by 233% to 334 721 ounces.
This was mainly due to a recovery after operations were suspended for about three months in 2022 as a result of the industrial action and consequent lockout.
READ | Strike ends as Sibanye and gold miners reach settlement
Along with PGMs and gold, Sibanye also produces and refines iridium and ruthenium, nickel, chrome, copper and cobalt. The group has recently begun to build and diversify its asset portfolio into battery-metals mining and processing - such as copper or lithium.
Shares in the group, which is valued at about R81.6 billion on the JSE, were down almost 2% in early afternoon trade and are down almost 40% in the year to date.
