Impairments hit Sibanye-Stillwater earnings

South African mining company Sibanye-Stillwater has reported a 19-fold increase in interim headline earnings to 190 SA cents per share, attributing the growth to higher prices and effective cost management. The mining firm’s boosted performance comes amid a revival in platinum group metals (PGM) and gold prices.

The company’s headline earnings, which exclude once-off items, painted a rosy picture. However, basic earnings were impacted by R9.7-billion in impairments, resulting in a less severe loss of R3.6-billion, compared to the same time last year.

The company’s shares remained stable following the earnings announcement, with little change registered by mid-day on Thursday.

“Increased operational stability and efficient cost control at the majority of Group operations, coupled with the SA gold operations’ leveraged exposure to the rand gold price have significantly boosted Group profitability for H1 2025,” the company shared.

The gold price has been performing extraordinarily well, hitting a historic high of approximately $3,500 an ounce in April, a significant boon for gold producers.

Despite operational hurdles that reduced production by 13% YoY, adjusted EBITDA for H1 2025 surged by 118% to R4.8 billion (US$260 million) from R2.2 billion (US$117 million) for H1 2024. This rise was driven by a 36% YoY increase in the average received gold price to R1,802,580/kg (US$3,049/oz). The company reported this as the highest adjusted EBITDA from the SA gold operations since H2 2020.

In addition, Sibanye enjoyed a boost from the US Inflation Reduction Act by the former Biden administration, which issued a 10% tax credit on operating costs, extending to mining and recycling. This resulted in a total credit of $285-million for 2023, 2024, and H1 of 2025, enhancing cost efficiency and profitability for H1 2025, with associated cash payments anticipated in 2026.

However, changes brought in by the Trump administration will phase out this credit from 2030 to 2034. This decision accounts for over R4-billion of Sibanye’s accounting impairments for the period.

Another significant impairment is linked to the company’s Keliber lithium project due to a dimmed medium-term price outlook for the metal. This is due to oversupply and declining excitement around battery electric vehicles.

Looking ahead, Sibanye indicated optimism, stating, “Gold and PGM prices have rallied further during Q3 2025, which suggests significant upside for earnings and cash flow should higher prices be maintained.”

Sibanye, originally a Gold Fields’ spin-off and once seen as a dividend play, chose not to declare a dividend citing, “… the uncertain global economic and geo-political backdrop.”

These results mark the final set with founding CEO Neal Froneman in charge. One could speculate that he would have liked to leave a dividend as a farewell gift, but the global economic and geopolitical climate remains unpredictable.