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Sibanye-Stillwater Trading statement and operations update for the six months ended 30 June 2022
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
Sibanye-Stillwater Trading statement and operations update for the six months ended
30 June 2022
Johannesburg, 17 August 2022. Sibanye-Stillwater (Tickers JSE: SSW and NYSE: SBSW)
provides a trading statement and operating update for the six months ended 30 June 2022
(H1 2022 or the Period).
In terms of paragraph 3.4(b)(i) of the Listing Requirements of the JSE Limited (JSE),
a company listed on the JSE is required to publish a Trading statement as soon as it
is satisfied that a reasonable degree of certainty exists that the financial results
for the next period to be reported on, will differ by at least 20% from the financial
result for the previous corresponding period.
Trading Statement for H1 2022
The Group advises that Earnings per share (EPS) and Headline earnings per share (HEPS)
for H1 2022, are expected to be between 402 SA cents (26 US cents) and 447 SA cents (29
US cents) compared with EPS and HEPS of 843 SA cents (58 US cents) for H1 2021,
representing a decline of 47% to 52% compared to H1 2021.
The decrease in EPS and HEPS for the period compared to the comparative period in 2021
is primarily due to the following:
• A reduction in gold production from the SA gold operations for Q2 2022 due to the
industrial action which commenced on 9 March 2022 and was finally resolved on 13
June 2022. In addition and as reported the suspension of processing activities in
late December 2021, to allow for the reinforcement of the Beatrix tailings storage
facility (TSF), resulted in no ore being processed or sold from the Beatrix
operations for Q1 2022
• Production from the US PGM operations for Q2 2022 was also significantly impacted
by the severe regional flooding in Montana on 12 and 13 June 2022, with the Stillwater
operations being suspended for a seven-week period
• Lower relative precious metals prices, with the average rand 4E PGM basket price 19%
lower for H1 2022 and the average US dollar 2E PGM basket price 15% lower than H1
2021
• This decline in average commodity prices also resulted in the Group recording a 45%
decline in share of results of equity-accounted investees after tax compared to H1
2021
• These negative financial impacts were partially offset by lower royalties and mining
and income taxes
The conversion of rand amounts into US dollar is based on an average exchange rate of
R15.40/US$ for H1 2022 and R14.55/US$ for H1 2021. This is provided as supplementary
information only.
The financial information on which this trading statement is based has not yet been
reviewed or reported on by Sibanye-Stillwater’s auditors.
Operating update for H1 2022 compared to H1 2021
4E PGM production from the SA PGM operations, including purchase of concentrate (POC)
of 849,152 4Eoz, was 9% lower than for the comparative period in 2021. A 9% decrease
in underground 4E PGM production to 751,717 4Eoz was partly offset by a 6% increase in
surface production of 72,089 4Eoz, with third-party purchase of concentrate treated at
the Marikana smelting and refining operations of 25,346 4Eoz, 27% lower due to the
winding down of two third party purchase of concentrate contracts in Q4 2021.
Mined 2E PGM production from the US PGM operations of 230,039 2Eoz (H1 2021: 298,301
2Eoz) was 23% lower year-on-year primarily due to the temporary cessation of operations
at the Stillwater mine following the regional flooding in Montana on 12 and 13 June
2022 and mining flexibility and labour constraints which continued to impact
productivity at both operations. 2E PGM production from the Stillwater mine was 15,000
2Eoz lower compared to Q1 2022 due to the flood impact, with a total 60,000 2Eoz of
planned production impacted during the seven-week suspension of operations at the
Stillwater mine.
Recycling ounces fed during H1 2022 decreased by 10% to 361,333 3Eoz year-on-year mainly
due to ongoing logistical constraints globally and adjustments to the blend ratio of
high grade recycle feed following the reduction in volumes of mined concentrate post
the flood event.
Production from the SA managed gold operations (excluding DRDGOLD) decreased by 77% in
H1 2022 to 3,128kg (100,568 oz) compared with H1 2021 due to no material gold production
occurring during the three-month industrial action and from the Beatrix operation during
Q1 2022, due to the suspension of processing operations to allow for precautionary
reinforcement and buttressing of the Beatrix TSF from 28 December 2021. Maintenance
work on the Beatrix TSF was completed by the end of May 2022.
During Q1 2022, the acquisition of the Sandouville nickel refinery in Le Havre, France
was concluded. Sandouville produced 3,499 tonnes of nickel metal, 1,066 tonnes of nickel
salts and 113 tonnes of cobalt chloride since acquisition. Integration of the
Sandouville refinery continues. Further detail will be provided in our H1 2022 results.
Results webcast and conference call
Sibanye-Stillwater will release its results for the six-months ended 30 June 2022 on
Thursday, 25 August 2022 and will host a live presentation shared via a webcast (link:
https://78449.themediaframe.com/links/sibanye210826.html) and conference call
(register on:
https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumbe
r=4552862&li nkSecurityString=7ab5fd95a) at 12h00 (CAT) / 06h00 (EST) / 04h00 (MDT).
About Sibanye-Stillwater
Sibanye-Stillwater is a multinational mining and metals Group with a diverse portfolio
of mining and processing operations and projects and investments across five continents.
The Group is also one of the foremost global PGM autocatalytic recyclers and has
interests in leading mine tailings retreatment operations. For more information, visit
our website at www.sibanyestillwater.com
Investor relations contact:
Email: ir@sibanyestillwater.com
James Wellsted
Executive Vice President: Investor Relations and Corporate Affairs
Tel: +27 (0) 83 453 4014
Website: www.sibanyestillwater.com
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
FORWARD LOOKING STATEMENTS
This announcement contains forward-looking statements within the meaning of the “safe
harbour” provisions of the United States Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact included in this
announcement may be forward-looking statements. Forward-looking statements may be
identified by the use of words such as “will”, “would”, “expect”, “forecast”,
“potential”, “may”, “could”, “believe”, “aim”, “anticipate”, “target”, “estimate” and
words of similar meaning.
These forward-looking statements, including among others, those relating to Sibanye-
Stillwater Limited’s (“Sibanye-Stillwater”) future business prospects, financial
positions, production and operational guidance, climate and ESG-related statements,
targets and metrics, plans and objectives of management for future operations and
ability to complete or successfully integrate ongoing and future acquisitions, are
necessarily estimates reflecting the best judgement of Sibanye-Stillwater’s senior
management. Readers are cautioned not to place undue reliance on such statements.
Forward-looking statements involve a number of known and unknown risks, uncertainties
and other factors, many of which are difficult to predict and generally beyond the
control of Sibanye-Stillwater that could cause its actual results and outcomes to be
materially different from historical results or from any future results expressed or
implied by such forward-looking statements. As a consequence, these forward-looking
statements should be considered in light of various important factors, including those
set forth in Sibanye-Stillwater’s 2021 Integrated Annual Report and annual report on
Form 20-F filed with the United States Securities and Exchange Commission on 22 April
2022 (SEC File no. 333-234096). These forward-looking statements speak only as of the
date of this announcement. Sibanye-Stillwater expressly disclaims any obligation or
undertaking to update or revise any forward-looking statement (except to the extent
legally required).
Date: 17-08-2022 08:00:00
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