Buoyant Bullion Prices Boost Sibanye-Stillwater Profits

SEATTLE (Scrap Monster): Sibanye-Stillwater- the largest individual gold producer from South Africa announced results for the initial six-month period of the year. The company’s profits surged higher, mainly driven by higher precious metals prices and weaker currency. All operating segments recorded increased production despite challenges posed by the coronavirus pandemic.

The headline earnings per share for the first six months of the year were SA 350 cents. This compares with a loss per share of 54 cents during the corresponding six-month period last year. The company reported record basic earnings of SA 351 cents. The adjusted EBITDA surged higher by 718% to R16.5 billion. The company’s normalized earnings and free cash flow were R8,845 million and R10,921 million.

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The production from the SA gold operations of 403,621 Oz in H1 2020 was 17% higher than the comparable period in 2019. The integration of the Marikana operation continued to report positive progress during this period. By the end of H1 2020, the SA gold operations achieved deep level hard rock safe production milestone of 12.4 million fatality free shifts.

Neal Froneman, CEO of Sibanye Stillwater hoped that the SA operations are likely to achieve optimal production levels by Q4 2020.