Wrap Text
Results for the six months and year ended 31 December 2024
Sibanye Stillwater Limited
Incorporated in the Republic of South Africa
Registration number 2014/243852/06
Share codes: SSW (JSE) and SBSW (NYSE)
ISIN - ZAE000259701
Issuer code: SSW
("Sibanye-Stillwater" or the "Group" or the "Company")
Website: www.sibanyestillwater.com
MARKET RELEASE
Results for the six months and year ended 31 December 2024 - Short form announcement
JOHANNESBURG, 21 February 2025: Sibanye-Stillwater (JSE: SSW and NYSE: SBSW) is pleased to report operating and financial results for the six
months ended 31 December 2024, and reviewed condensed consolidated financial statements for the year ended 31 December 2024.
SALIENT FEATURES FOR THE SIX MONTHS AND YEAR ENDED 31 DECEMBER 2024
- Safety continues to improve with Group SIFR and TRIFR at lowest recorded levels since 2013
- Revenue for H2 2024 of R56.9 billion (US$3.2 million) 7% higher than for H2 2023
- Restructuring and closure of loss making operations improve profitability. Capital building initiatives secure Group Balance sheet
- Net debt : adjusted EBITDA1 of 1.79x at 31 Dec 2024 reduces to pro forma 1.08x, post proceeds of stream financing arrangement
- Group adjusted EBITDA of R6.4 billion (US$360 million) stable for the third sequential 6-month period
- SA gold - leverage to higher gold price drove a 216% increase in adjusted EBITDA1 to R3.6 billion (US$206 million) for H2 2024
- SA PGM - operating cost increase of 6% to R23,608/4Eoz (US$1,317/4Eoz) in line with inflation. AISC4 increased by 10% due to higher capex for
H2 2024
- US PGM - consistent production and 27% reduction in AISC to US$1,367/2Eoz for 2024, delivered according to Q4 2024 restructuring plan
- restructured further at end 2024 due to persistently low prices
- S45x benefits for 2025 could enhance profitability of US PGM and US PGM recycling operations by combined US$60 million (R1.1 billion)
- US recycling operations (US PGM and Reldan) contribute US$32 million (R594 million) to Group adjusted EBITDA for 2024
- Australian region - Century operation adjusted EBITDA contribution of US$34 million (R641 million) for the year
- Transaction with Glencore Merafe Venture adds significant value to SA PGM chrome production
KEY STATISTICS - GROUP
US dollar SA rand
Year ended Six months ended Six months ended Year ended
Dec 2023 Dec 2024 Dec 2023 Jun 2024 Dec 2024 KEY STATISTICS Dec 2024 Jun 2024 Dec 2023 Dec 2024 Dec 2023
GROUP
(2,051) (398) (2,458) (390) (8) US$m Basic earnings Rm 38 (7,335) (45,195) (7,297) (37,772)
97 99 (227) 15 85 US$m Headline earnings Rm 1,543 274 (4,107) 1,817 1,784
1,116 715 340 355 360 US$m Adjusted EBITDA1,14 Rm 6,440 6,648 6,409 13,088 20,556
(2,032) (311) (2,459) (372) 61 US$m (Loss)/profit for the period Rm 1,291 (7,001) (45,216) (5,710) (37,430)
Average exchange rate using
18.42 18.32 18.62 18.72 17.92 R/US$ daily closing rate
KEY STATISTICS BY REGION
US dollar SA rand
Year ended Six months ended Six months ended Year ended
Dec 2023 Dec 2024 Dec 2023 Jun 2024 Dec 2024 KEY STATISTICS Dec 2024 Jun 2024 Dec 2023 Dec 2024 Dec 2023
AMERICAS REGION
US PGM underground
operations
427,272 425,842 221,759 238,139 187,703 oz 2E PGM production2,3 kg 5,838 7,407 6,897 13,245 13,290
1,243 988 1,124 977 1,001 US$/2Eoz Average basket price R/2Eoz 17,942 18,289 20,928 18,097 22,890
35 (9) (18) 27 (36) US$m Adjusted EBITDA14 Rm (599) 488 (266) (111) 710
1,872 1,367 1,992 1,343 1,390 US$/2Eoz All-in sustaining cost4,14 R/2Eoz 24,912 25,149 37,090 25,042 34,465
US PGM recycling
310,314 316,470 147,862 154,938 161,532 oz 3E PGM recycling2,3 kg 5,024 4,819 4,599 9,843 9,652
2,334 1,266 1,939 1,252 1,279 US$/3Eoz Average basket price R/3Eoz 22,922 23,437 36,105 23,189 42,981
33 17 13 8 9 US$m Adjusted EBITDA14 Rm 179 147 236 326 607
US Reldan operations5
- 15 - - 15 US$m Adjusted EBITDA15 Rm 262 6 - 268 -
SOUTHERN AFRICA (SA) REGION
PGM operations
1,672,927 1,738,946 873,745 828,460 910,486 oz 4E PGM production3,6,7 kg 28,319 25,768 27,177 54,087 52,034
1,574 1,322 1,304 1,309 1,333 US$/4Eoz Average basket price R/4Eoz 23,892 24,499 24,276 24,213 28,979
958 407 309 255 152 US$m Adjusted EBITDA14 Rm 2,633 4,766 5,826 7,399 17,620
1,089 1,198 1,094 1,150 1,245 US$/4Eoz All-in sustaining cost4,14 R/4Eoz 22,317 21,533 20,363 21,948 20,054
Gold operations
810,584 704,583 393,847 344,109 360,474 oz Gold produced kg 11,212 10,703 12,250 21,915 25,212
1,936 2,378 1,955 2,205 2,560 US$/oz Average gold price R/kg 1,474,973 1,327,000 1,170,362 1,400,468 1,146,093
193 323 63 117 206 US$m Adjusted EBITDA14 Rm 3,631 2,201 1,148 5,832 3,523
1,904 2,126 2,008 2,078 2,175 US$/oz All-in sustaining cost4,14 R/kg 1,253,083 1,250,647 1,202,225 1,251,810 1,127,138
EUROPEAN REGION
Sandouville nickel refinery
7,125 7,705 3,632 4,270 3,435 tNi Nickel production8 tNi 3,435 4,270 3,632 7,705 7,125
Nickel equivalent average
23,955 19,701 21,075 20,309 18,681 US$/tNi basket price9 R/tNi 334,755 380,190 392,420 360,855 441,138
(72) (41) (37) (15) (26) US$m Adjusted EBITDA14 Rm (443) (280) (701) (723) (1,328)
Nickel equivalent sustaining
35,474 24,548 33,492 23,684 25,616 US$/tNi cost10,14 R/tNi 459,031 443,366 623,615 449,644 653,246
AUSTRALIAN REGION
Century zinc retreatment
operation11
Zinc metal produced
76 82 51 42 40 ktZn (payable)12 ktZn 40 42 51 82 76
Average equivalent zinc
1,728 2,678 1,766 2,366 2,898 US$/tZn concentrate price13 R/tZn 51,931 44,297 32,878 49,046 31,815
(15) 34 13 (19) 53 US$m Adjusted EBITDA14 Rm 992 (351) 217 641 (285)
1,975 2,317 1,759 2,228 2,413 US$/tZn All-in sustaining cost4,14 R/tZn 43,244 41,710 32,746 42,446 36,361
1. The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt
covenant formula. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS Accounting Standards
and should be considered in addition to and not as a substitute for any other measure of financial performance and liquidity. For a reconciliation of profit/(loss) before royalties and tax to
adjusted EBITDA, see note 11.1 of the condensed consolidated financial statements
2. The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated to SA rand (rand). In addition to the US PGM operations'
underground production, the operation treats recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM recycling
represents palladium, platinum, and rhodium ounces fed to the furnace
3. The Platinum Group Metals (PGM) production in the SA operations is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US operations is principally
platinum and palladium, referred to as 2E (2PGM) and US PGM recycling is principally platinum, palladium and rhodium referred to as 3E (3PGM)
4. See "Salient features and cost benchmarks" sections for the definition of All-in sustaining cost (AISC). The SA PGM All-in sustaining cost excludes the production and costs associated with
the purchase of concentrate (PoC) from third parties
5. The acquisition of the Reldan Group of Companies (Reldan) was concluded on 15 March 2024. All salient features for the US Reldan operations are shown separately from the US PGM
underground operations and the US PGM recycling
6. The SA PGM production excludes the production associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the production including third party PoC, refer to
the "Reconciliation of operating cost excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana" sections
7. As previously announced, Sibanye Rustenburg Platinum Mines Limited had entered into a pool and share agreement to acquire Rustenburg Platinum Mines Limited 50% ownership of Kroondal.
The acquisition became effective on 1 November 2023 after all conditions precedent had either been met or waived, therefore from 1 November 2023 the SA PGM operations includes 100%
Kroondal
8. The nickel production at the Sandouville refinery operations is principally nickel metal and nickel salts, together referred to as nickel equivalent products
9. The nickel equivalent average basket price per tonne is the total nickel revenue adjusted for other income less non-product sales divided by the total nickel equivalent tonnes sold
10. See "Salient features and cost benchmarks" sections Sandouville nickel refinery for a reconciliation of cost of sales before amortisation and depreciation to nickel equivalent sustaining cost
11. The Century zinc tailings retreatment operation is a leading tailings management and rehabilitation operation in Queensland, Australia. The Century operation was acquired by the Group on 22
February 2023
12. Zinc metal produced (payable) is the payable quantity of zinc metal produced after applying smelter content deductions
13. Average equivalent zinc concentrate price is the total zinc sales revenue recognised at the price expected to be received excluding the fair value adjustments divided by the payable zinc
metal sold
14. Adjusted EBITDA, All-in sustaining cost (AISC) and nickel equivalent sustaining cost are not measures of performance under IFRS Accounting Standards and should not be considered in isolation
or as substitutes for measures of financial performance prepared in accordance with IFRS Accounting Standards. See "Non-IFRS measures" in the operating and financial results booklet for the
year ended 31 December 2024 for more information on the Non-IFRS metrics presented by Sibanye-Stillwater
STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OF SIBANYE-STILLWATER
Our strategic diversification and proactive actions in response to many of the forces currently driving global change have ensured that
the Group is well positioned to sustain a longer period of low prices, and to benefit from opportunities which may emerge. The economic
context may remain challenging for some time and, accordingly, our focus remains on the strategic essentials: optimizing operations for
profitability and sustainability and protecting the Group balance sheet in order to secure our financial health.
The operational restructurings undertaken over the last 18 months have secured greater operational stability and have, on balance,
improved the profitability of the Group, with the SA PGM operations profitable for 2024, the SA gold operations benefiting from the
increasing gold price, and the Century operations in Australia and recycling operations in the US region all contributing positively to the
Group. The restructuring of the US PGM operations in Q4 2024 and ongoing restructuring at Sandouville, are expected to reduce losses
from those operations for 2025, further underpinning Group firmer earnings outlook.
SAFETY
The continued improvement in most of the Group's safety statistics and risk reduction is pleasing. The Group Serious Injury Frequency Rate
(SIFR) and Total Recordable Injury Frequency Rate (TRIFR) declined by 15% and 17% respectively year on year, with SIFR of 2.21 (incidents
per million hours) and TRIFR of 4.36, the lowest recorded levels since 2013. SIFR and TRIFR have declined over the past three years by
compound annual decline rates of 16% and 15% respectively, demonstrating a sustained safety improvement trend over consecutive
years. While we have also observed a consistent decline in high potential incidents (HPIs) reported since H2 2022, with the FIFR reducing
by 34% from the three-year trailing average FIFR, the loss of eight colleagues during 2024 (11 for H1 2023) is tragic and unacceptable. Our
commitment to preventing fatal incidents through our Fatal elimination strategy, remains our utmost priority for 2025. On behalf of
management and the Board of Sibanye-Stillwater, we wish to express our deep regret and extend our sincere condolences to the families
and friends of our late colleagues.
STRATEGIC DELIVERY - APPROPRIATE AND RELEVANT
Proactive restructuring and strategic positioning
The strategic importance of the Group's diversified portfolio of metals, was again reinforced by the significant increase in the financial
contribution of the SA gold operations to the Group. These mature mines, buoyed by the tailwind of a strong gold price, delivered
materially better financial results for 2024, during a challenging period for most of our other metals, which are more aligned with industrial
economic cycles.
Due to a largely improved operating performance for H2 2024 and a 26% increase in the average rand gold price compared with H2
2023, adjusted EBITDA from the SA gold operations increased by R2.5 billion to R3.6 billion for H2 2024, which was R1.0 billion or 38% higher
than adjusted EBITDA from the SA PGM operations for H2 2024, and accounted for 56% of Group adjusted EBITDA for the period.
This was the first 6-month period since 2017 that adjusted EBITDA from the SA gold operations has exceeded the contribution from the SA
PGM operations and marks a notable turnaround from previous years when the SA PGM and US PGM operations comprised 80%-90% of
Group earnings and sustained the Group during a period when the SA gold operations experienced significant operational disruptions.
The significant increase in the profit from the SA gold operations and restructuring of the Group operations have, on balance, stabilised
Group profitability. Group adjusted EBITDA of R6.4 billion (US$360 million) for H2 2024 was in line with adjusted EBITDA of R6.4 billion (US$340
million) for H2 2023, marking the third consecutive 6-month period of consistent Group adjusted EBITDA.
Our strategic investment in circular economy assets is also proving valuable, with the US PGM and Reldan recycling operations offering
stable margins through cycles and contributing combined adjusted EBITDA of US$32 million (R594 million) to the Group for 2024. Our
surface reprocessing assets also contributed to Group profitability, with adjusted EBITDA from the Century reprocessing operations in the
AUS region, adding R641 million (US$34 million) for 2024 with adjusted EBITDA from DRDGOLD for 2024 of R2.5 billion (U$S139 million).
The impact of lower PGM prices and cost inflation on margins from the SA PGM operations was moderated by the restructuring and
closure of loss-making operations during H1 2024. Production from the SA PGM operations was 4% higher year-on-year, however,
additional production from the acquisition of Anglo American Platinum's 50% share in Kroondal, was offset by lower production from the
Rustenburg operation (following the collapse of the bin and conveyor at the Siphumelele shaft) and the Kroondal operation (following
illegal industrial action), and the restructuring and closure of high-cost and end-of-life operations at the Marikana and Kroondal
operations in H1 2024. Operating cost was well managed, increasing by 6% to R23,608/4Eoz (US$1,317) for H2 2024, in line with inflation,
with AISC increasing by 10% to R22,317/4Eoz (US$1,245/4Eoz) due to increased capital at the Rustenburg and Kroondal operations on
extension and chrome projects.
At lower operating margins however, the SA PGM operations, are highly leveraged and due to a marginally lower average 4E basket
price of R23,892/4Eoz (US$1,333/4Eoz) and a 10% increase in AISC, adjusted EBITDA for H2 2024 decreased by 55% to R2.6 billion (US$152
million) compared to H2 2023. The change from a PoC to Toll processing arrangement by the Kroondal operation, also resulted in
production from 1 September 2024 (four months) not being sold due to the build-up of inventory in the processing pipeline. A more stable
production performance for 2025, is expected to moderate cost increases and preserve margins from the SA PGM operations, with the
newly signed Glencore Merafe Venture chrome agreements potentially adding value in future.
The 2E PGM basket price for the US PGM operations has been substantially lower than AISC for the US PGM operations since 2021, despite
the successful restructuring of the US PGM operations undertaken during Q4 2023. Mined 2E PGM production of 425,842 2Eoz for 2024 was
consistent with 2023 and AISC reduced by 27% to US$1,367/2Eoz (R25,042/2Eoz). The 21% decline in the average 2E PGM basket price from
US$1,243/2Eoz for 2023 to US$988/2Eoz for 2024 however, necessitated further restructuring to address ongoing losses.
This next phase of restructuring announced in September 2024 and concluded during Q4 2024, is expected to reduce operating cost
from the US PGM operations for 2025 by approximately US$140 million and capex by US$50 million (reduced in line with lower planned
production rate) compared with 2024. The Stillwater West mine has been placed on care and maintenance, with production focusing on
lower volume, higher margin production from the East Boulder and Stillwater East mines.
The financial position of the US PGM and US Recycling operations could be significantly enhanced by potential payments equivalent to
10% of operating costs arising from Section 45X of the Inflation Reduction Act (IRA). The final Section 45X rules of the IRA, published in Q4
2024 by the US Department of the Treasury, were amended to include extraction and processing costs in addition to refining costs as
qualifying for a 10% Advance Manufacturing Production credit. The change in the US administration in January 2025, has introduced
some uncertainty regarding the Section 45X regulations, Ongoing resource nationalism and an imperative to secure local supply chains
for many jurisdictions, provides a compelling case for continued support for local supply of critical minerals for the US.
The potential Section 45X tax credit benefit for the US PGM operations for 2025, is estimated to be US$30 million (R547 million) for 2025
(equivalent to a US$110/2Eoz reduction in AISC) with the US PGM recycling operations potentially qualifying for an additional estimated
credit of US$30 million (R547 million) for 2025, which combined (US$60 million) would significantly improve profitability from the US PGM
operations. Furthermore, the rules are retrospective with combined credits relating to the 2023 and 2024 financial years estimated at
approximately US$120 million (R2.2 billion) and US$90 million (R1.6 billion).
Balance sheet reinforcement
The initiatives to reinforce the balance sheet announced in February 2024, were largely complete by year-end. During Q4 2024, a US$50
million (R905 million) chrome prepay was concluded on 1 December 2024, with only the US$500 million stream financing undertaken with
Franco Nevada, which was announced on 19 December 2024, pending completion of outstanding conditions precedent.
In total, the transactions concluded over the past year have added approximately R36 billion (US$1.9 billion) of additional headroom for
the Group balance sheet and significantly enhanced Group financial liquidity, flexibility and optionality. Group Net debt to adjusted
EBITDA ratio of 1.79x at the end of December 2024 remained well below the covenant level of 3.5x and, after adjusting for the R9 billion
stream proceeds, pro forma net debt to adjusted EBITDA reduces to 1.08x, which is well below the net debt to adjusted EBITDA ratio of
1.43x at the end of H1 2024 and close to mid cycle comfort levels of 1x.
The Group's liquidity headroom of R45.7 billion (US$2.4 billion (consisting of R16 billion (US$853 million) cash and R29.7 billion (US$1.6 billion)
undrawn facilities), easily covers the R13bn (US$0.7bn) November 2026 bond maturity and is sufficient to sustain the Group for an
extended period. Liquidity headroom to be extended further through the US$500m Stream financing.
Considering the current uncertain macro-economic environment we plan to retain the prudent approach outlined in the 2023 results
presentation in February 2024, to proactively mitigate increases in net debt until positive cashflow from operations is restored.
FINANCIAL OVERVIEW
The restructuring undertaken at the US PGM operations during Q4 2024 (repositioning for lower PGM prices, by deferring production
growth and maintaining lower levels of production to reduce costs and capital requirements), successfully delivered stable mined 2E PGM
production of 425,842 2Eoz for 2024 compared with 2023, with AISC reducing by 27% to US$1,367/2Eoz (R25,042/2Eoz).
Total operating costs for 2024 declined by 3% to US$483 million (R8.8 billion), with unit operating cost of US$1,134/2Eoz (R20,775/2Eoz), 3%
lower year-on-year. AISC benefited from reduced ore reserve development (ORD) and sustaining capital expenditure, as per the
reduced production plan, with ORD of US$105 million (R1.9 billion), 50% lower year-on-year and sustaining capital expenditure decreasing
by 72% to US$33 million (R611 million). Project capital expenditure declined by 62% to US$16 million (R291 million) for 2024 with expenditure
limited to the East Boulder Stage 5 /6 tailings and waste storage facilities.
The Inflation Reduction Act ("IRA") of 2022 added a new tax code, Section 45X, which allows among other for an advanced
manufacturing production tax credit for manufacturing of critical minerals within the US. Under the final rules issued in October 2024, the
company is eligible to claim a 10% production tax credit on costs associated with the production of primary (mined) and secondary
(recycled) applicable critical minerals. Under the initial draft regulation our interpretation was that we were not eligible for a significant
credit, but the revised regulations include extraction and initial processing cost, as well as the costs of purchasing recycle material so long
as that material does not yet meet the final purity metrics. The final eligibility step requires certification from the company's contract
refiner, which is in process.
The US PGM operations anticipate claiming approximately US$61 million (R 1.1 billion) credit to the underground operations relating to
2023 and approximately US$58 million (R1.1 billion) for 2024 resulting in 2023 AISC being 7% lower at US$1,754/2Eoz (R32,297/2Eoz) and 2024
AISC 11% lower at US$1,231/2Eoz (R22,547/2Eoz). These credits are expected to be received in 2026 or 2027 when the tax returns will be
assessed. The estimated Section 45X credit for 2025 is approximately US$30 million (R547 million), equivalent to a US$110/2Eoz reduction in
AISC for 2025.
The global autocatalyst recycling market remains depressed, with no visible signs of recovery. Persistent macroeconomic challenges,
including high interest rates, inflationary pressures, and elevated prices of used and new vehicles, continue to dampen consumer
demand for new vehicles. As a result, older light-duty vehicles remain in service for longer, extending scrappage periods and impacting
the availability of spent autocatalysts for recycling. These factors continued to impact spent autocatalyst receipt and feed rates during
2024. The average spent autocatalyst fed for 2024 increased by 1% to 10.6 tonnes per day, a marginal improvement from 10.5 tonnes per
day for 2023, but still well below average feed rates of around 24 tonnes fed at the peak in 2021. Total PGM ounces fed for 2024 of 316,470
3Eoz were 2% higher year-on-year.
It is anticipated that the US PGM recycling operations will also qualify for a S45X credit of approximately 10% of operating costs. Once we
have the contract certificate from our contractor refiner we expect to be able to claim approximately US$59 million (R1.1 billion) for 2023
and approximately US$32 million (R586 million) for 2024, with approximately US$30 million for 2025 (R547 million), improving the profitability
of the recycling operations.
Since its acquisition in March 2024, Reldan has delivered solid financial and operational results, particularly benefiting from higher gold
volumes and prices compared to 2023, processing over 20 million pounds of mixed scrap and industrial waste. By increasing volumes of
higher margin industrial waste and reducing volumes of lower margin electronic waste, the operating margin increased by 1% for 2024.
Reldan sold 107,680 oz gold, 1.7Moz silver, 15,292 oz platinum, 19,835 oz palladium and 2.6Mlbs of copper, contributing adjusted EBITDA of
US$15 million (R268 million) for 2024 since acquisition to the Group.
The SA PGM operations delivered another consistent operational performance with PGM production of 1,835,410 4Eoz (including
attributable production from Mimosa and third-party purchase of concentrate (PoC)) 4% higher than for 2023 and within annual
guidance of 1.8 to 1.9 million 4Eoz for 2024. PGM production excluding third party PoC for 2024 of 1,738,946 4Eoz was 4% higher than for
2023. Third party PoC of 96,464 4Eoz for 2024 was in line with 2023, but 20% higher than guided for 2024 (80,000 4Eoz).
The strategic importance of the Group's diversified portfolio of metals, is again evidenced by the significant increase in the financial
contribution of the SA gold operations to the Group. Despite significant restructuring, these mature mines buoyed by the tailwind of a
strong gold price in a challenging period for most other metals, which are more aligned with industrial economic cycles, delivered
materially better financial results for 2024. Adjusted EBITDA from the SA gold operations increased by 66% year-on-year, from R3.5 billion
(US$193 million) for 2023 to R5.8 billion (US$323 million) for 2024 (R3 billion loss in 2021). The 66% increase in adjusted EBITDA from our SA gold
operations has provided a critical underpin for the Group, comprising 45% of Group adjusted EBITDA for 2024, from 17% the year before.
The Sandouville nickel refinery financial and operational performance improved in 2024 compared to the previous year as a result of
reduced costs and better plant stability and reliability.
Construction activities at the Keliber lithium refinery in Kokkola, Finland have continued with good progress. The main equipment
installations are being finalised and pre-commissioning activities will start in Q1 2025. The lithium refinery is expected to be completed in
Q3 2025, with cold commissioning commencing thereafter.
The Century zinc tailings retreatment operation (Century operation) produced 82 kilotonnes (kt) of payable zinc metal for 2024 (76kt for
the 10 months in 2023) at AISC of US$2,317/tZn (R42,446/tZn) below guidance of 87kt to 100kt at the beginning of 2024, due to severe
disruptions caused by external factors. As stated, production for Q1 2024 was impacted by heavy wet season conditions which caused
numerous interruptions to production. After a strong production recovery during Q2 and Q3 2024 with good operational consistency,
production was again heavily impacted in Q4 2024 by a regional bushfire which engulfed the mine on the 9 October 2024, damaging
23km of poly piping, vital for operating activities. After replacing all the damaged infrastructure, normalised levels of production were only
achieved in early December 2024.
The Mt Lyell feasibility study (AACE Class 3 Estimate) was completed in H1 2024. Positive project economics indicated an immediate
transition to the next stage of required study (AACE Class 2 Estimate), scheduled for completion in H2 2025.
STRATEGIC REVIEW
The Group focus on strategic essentials has not precluded the progression of several value accretive initiatives.
Chrome value opportunity
On 19 February 2025 a strategic enhancement to the historical Marikana chrome contract (Marikana Contract) and a new Chrome
Management Agreement (CMA) were signed with the Glencore Merafe Venture (GM Venture). The majority of the Chrome Recovery
Plants (CRPs) at Sibanye-Stillwater's SA PGM operations will be operated by the GM Venture once the CMA is effective, which intends to
leverage its processing expertise to optimise chrome production yields and reduce operational costs across all relevant CRPs.
The enhanced Marikana Contract is expected to accelerate completion of delivery of contracted chrome volumes agreed between
Lonmin and the GM Venture in 2011, by approximately 20 years, through increasing feed and improving recoveries from the Marikana
CRPs. Upon expiry of the Marikana Contract, the Marikana CRPs will become subject to the terms of the CMA, increasing Sibanye-
Stillwater's share of free cash flow from chrome production from the Marikana CRPs. Together, these agreements are expected to allow
greater exposure to chrome prices and incentivise future chrome production growth, realising significant value for Sibanye-Stillwater and
enhancing value creation opportunities for the Marikana operation.
The improved economics of Sibanye-Stillwater's chrome production are expected to enhance the inherent value and commercial
viability of development and extension projects at the SA PGM operations, which are currently being assessed.
Uranium strategy
On 9 December 2024, the Group announced that it had agreed to sell its Beatrix 4 shaft, Beatrix operations in the Free State (which
includes the Beisa uranium project) (the Transaction), to Neo Energy Metals Plc. (Neo Energy1) for a total Transaction consideration of
R500 million, comprising R250 million in cash and R250 million in newly issued shares in Neo Energy (which on signing equated to Sibanye-
Stillwater owning a shareholding of approximately 40% in Neo Energy).
The Transaction advances the Group uranium strategy by presenting Neo Energy with an opportunity to develop the Beisa uranium
project to be developed by Neo Energy, while allowing Sibanye-Stillwater to maintain exposure to future uranium production without sole
reliance on Group capital funding.
The Group is also assessing various alternatives to release value from its significant surface uranium resources at Cooke. Further details will
be announced as appropriate.
1. Neo Energy is a uranium exploration and development company listed on the main board of the London Stock Exchange (LSE) and dual-listed in South Africa on the A2X market.
Rhyolite Ridge
Sibanye-Stillwater announced in September 2021 that it had reached an agreement with ioneer to establish a joint venture company with
respect to Rhyolite Ridge. The completion of the joint venture is subject to various conditions precedent under the joint venture
agreement, which has been subject to various amendments since September 2021. These conditions include a final investment decision
from the board of directors of Sibanye-Stillwater affirming its commitment to proceed with Rhyolite Ridge.
In October 2024, Sibanye-Stillwater received updated project and technical information from ioneer in the form of a technical report
summary and other updated technical reports. Management, with the assistance of external specialists, has reviewed and conducted
due diligence on that information. The Board is currently assessing the relevant information to inform an investment decision.
KEY FINANCIAL RESULTS
US dollar SA rand
Year ended Six months ended Six months ended Year ended
Dec 2023 Dec 2024 Dec 2023 Jun 2024 Dec 2024 KEY STATISTICS Dec 2024 Jun 2024 Dec 2023 Dec 2024 Dec 2023
6,172 6,121 2,846 2,949 3,172 Revenue (million) 56,925 55,204 53,116 112,129 113,684
(72) (14) (86) (14) - Basic earnings per share (cents) 1 (259) (1,597) (258) (1,334)
3 3 (8) 1 3 Headline earnings per share (cents) 55 10 (145) 64 63
DIVIDEND DECLARATION
In line with Sibanye-Stillwater's dividend policy and Capital Allocation Framework, the Board of Directors resolved not to declare a final
dividend (2023: no final dividend declared).
This short-form announcement is the responsibility of the Board.
The information disclosed is only a summary and does not contain full or complete details. Any investment decisions by investors and/or
shareholders should be based on a consideration of the full announcement as a whole and shareholders are encouraged to review the
full announcement outlining the operating and financial results for the six months ended 31 December 2024, and reviewed condensed
consolidated financial statements for the year ended 31 December 2024 (results booklet), which is available for viewing on the
Company's website at https://www.sibanyestillwater.com/news-investors/reports/quarterly/ and via the JSE cloudlink at
https://senspdf.jse.co.za/documents/2025/jse/isse/sswe/FY24Result.pdf.
The financial results as contained in the condensed consolidated financial statements for the year ended 31 December 2024, from which
this short-form announcement has been correctly extracted, have been reviewed by EY Inc., who expressed an unmodified review
conclusion thereon. A copy of the auditor's report can be obtained from the Company's registered office, by emailing the Company
Secretary (lerato.matlosa@sibanyestillwater.com).
Contact:
Email: ir@sibanyestillwater.com
James Wellsted
Executive Vice President: Investor Relations and Corporate Affairs
+27(0)83 453 4014
Website: sibanyestillwater.com
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
DISCLAIMER
Forward-looking statements
The information in this report may contain forward-looking statements within the meaning of the "safe harbour" provisions of the United States Private
Securities Litigation Reform Act of 1995. These forward-looking statements, including, among others, those relating to Sibanye Stillwater Limited's (Sibanye-
Stillwater or the Group) financial positions, business strategies, business prospects, industry forecasts, production and operational guidance, climate and
ESG-related targets and metrics, plans and objectives of management for future operations, are necessarily estimates reflecting the best judgment of the
senior management and directors of Sibanye-Stillwater and involve a number of risks and uncertainties that could cause actual results to differ materially
from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various
important factors, including those set forth in this report.
All statements other than statements of historical facts included in this report may be forward-looking statements. Forward-looking statements also often use
words such as "will", "would", "expect", "forecast", "potential", "may", "could", "believe", "aim", "anticipate", "target", "estimate" and words of similar
meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and should be
considered in light of various important factors, including those set forth in this disclaimer. Readers are cautioned not to place undue reliance on such
statements.
The important factors that could cause Sibanye-Stillwater's actual results, performance or achievements to differ materially from estimates or projections
contained in the forward-looking statements include, without limitation, Sibanye-Stillwater's future financial position, plans, strategies, objectives, capital
expenditures, projected costs and anticipated cost savings, financing plans, debt position and ability to reduce debt leverage; economic, business, political
and social conditions in South Africa, Zimbabwe, the United States, Europe and elsewhere; plans and objectives of management for future operations;
Sibanye-Stillwater's ability to obtain the benefits of any streaming arrangements or pipeline financing; the ability of Sibanye-Stillwater to comply with loan
and other covenants and restrictions and difficulties in obtaining additional financing or refinancing; Sibanye-Stillwater's ability to service its bond
instruments; changes in technical and economic assumptions underlying Sibanye-Stillwater's estimation of its Mineral Resources and Mineral Reserves; any
failure of a tailings storage facility; the ability to achieve anticipated efficiencies and other cost savings in connection with, and the ability to successfully
integrate, past, ongoing and future acquisitions, as well as at existing operations; the ability of Sibanye-Stillwater to complete any ongoing or future
acquisitions; the success of Sibanye-Stillwater's business strategy and exploration and development activities, including any proposed, anticipated or
planned expansions into the battery metals or adjacent sectors and estimations or expectations of enterprise value (including the Rhyolite Ridge project);
the ability of Sibanye-Stillwater to comply with requirements that it operate in ways that provide progressive benefits to affected communities; changes in
the market price of gold, silver, PGMs, battery metals (e.g., nickel, lithium, copper and zinc) and the cost of power, petroleum fuels, and oil, among other
commodities and supply requirements; the occurrence of hazards associated with underground and surface mining; any further downgrade of South
Africa's credit rating; the impact of South Africa's greylisting; a challenge regarding the title to any of Sibanye-Stillwater's properties by claimants to land
under restitution and other legislation; Sibanye-Stillwater's ability to implement its strategy and any changes thereto; the outcome of legal challenges to the
Group's mining or other land use rights; the occurrence of labour disputes, disruptions and industrial actions; the availability, terms and deployment of
capital or credit; changes in the imposition of industry standards, regulatory costs and relevant government regulations, particularly environmental,
sustainability, tax, health and safety regulations and new legislation affecting water, mining, mineral rights and business ownership, including any
interpretation thereof which may be subject to dispute; the outcome and consequence of any potential or pending litigation or regulatory proceedings,
including in relation to any environmental, health or safety issues; failure to meet ethical standards, including actual or alleged instances of fraud, bribery or
corruption; the effect of climate change or other extreme weather events on Sibanye-Stillwater's business; the concentration of all final refining activity and
a large portion of Sibanye-Stillwater's PGM sales from mine production in the United States with one entity; the identification of a material weakness in
disclosure and internal controls over financial reporting; the effect of US tax reform legislation on Sibanye-Stillwater and its subsidiaries; the effect of South
African Exchange Control Regulations on Sibanye-Stillwater's financial flexibility; operating in new geographies and regulatory environments where Sibanye-
Stillwater has no previous experience; power disruptions, constraints and cost increases; supply chain disruptions and shortages and increases in the price of
production inputs; the regional concentration of Sibanye-Stillwater's operations; fluctuations in exchange rates, currency devaluations, inflation and other
macro-economic monetary policies; the occurrence of temporary stoppages or precautionary suspension of operations at its mines for safety or
environmental incidents (including natural disasters) and unplanned maintenance; Sibanye-Stillwater's ability to hire and retain senior management and
employees with sufficient technical and/or production skills across its global operations necessary to meet its labour recruitment and retention goals, as well
as its ability to achieve sufficient representation of historically disadvantaged South Africans, or maintain required board gender diversity, in its management
positions; failure of Sibanye-Stillwater's information technology, communications and systems, evolving cyber threats to Sibanye-Stillwater's operations and
the impact of cybersecurity incidents or breaches; the adequacy of Sibanye-Stillwater's insurance coverage; social unrest, sickness or natural or man-made
disaster in surrounding mining communities, including informal settlements in the vicinity of some of Sibanye-Stillwater's South African-based operations; and
the impact of contagious diseases, including global pandemics.
Further details of potential risks and uncertainties affecting Sibanye-Stillwater are described in Sibanye-Stillwater's filings with the Johannesburg Stock
Exchange and the United States Securities and Exchange Commission, including the 2023 Integrated Report and the Annual Financial Report for the fiscal
year ended 31 December 2023 on Form 20-F filed with the United States Securities and Exchange Commission on 26 April 2024 (SEC File no. 333-234096).
These forward-looking statements speak only as of the date of the content. Sibanye-Stillwater expressly disclaims any obligation or undertaking to update or
revise any forward-looking statement (except to the extent legally required). These forward-looking statements have not been reviewed or reported on by
the Group's external auditors.
Non-IFRS1 measures
The information contained in this report may contain certain non-IFRS measures, including, among others, adjusted EBITDA, adjusted EBITDA margin,
adjusted free cash flow, AISC, AIC, Nickel equivalent sustaining cost and normalised earnings. These measures may not be comparable to similarly-titled
measures used by other companies and are not measures of Sibanye-Stillwater's financial performance under IFRS Accounting Standards. These measures
should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Sibanye-
Stillwater is not providing a reconciliation of the forecast non-IFRS financial information presented in this report because it is unable to provide this
reconciliation without unreasonable effort. These forecast non-IFRS financial information presented have not been reviewed or reported on by the Group's
external auditors.
1. IFRS refers to International Financial Reporting Standards Accounting Standards (IFRS Accounting Standards) as issued by the International Accounting Standards Board (IASB)
Websites
References in this document to information on websites (and/or social media sites) are included as an aid to their location and such information is not
incorporated in, and does not form part of, this report.
Date: 21-02-2025 08:00:00
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