Sibanye profit more than doubles as it commits to new mines

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Sibanye-Stillwater on Tuesday reported higher first-half earnings for the six months to end-June, helped by higher gold and platinum-group metal prices.Headline earnings per share rose 216% to 601c, while revenue increased 64% to R90bn. Adjusted ebitda more than doubled to R31.8bn, with cash generated by operations rising to almost R21bn.The improved cash generation allowed the precious metal producer to reduce gross debt by 18% to R32.1bn during the six months while it declared an interim dividend of R2.01 per share, for a total payout of R5.7bn.The results come as Sibanye steps up investment in its portfolio, with the board approving two projects, Burnstone, a gold mine in Gauteng, and Mount Lyell, a copper and gold project in Tasmania, Australia.The company said Burnstone is expected to require about R6.2bn of capital and produce about four tonnes of gold a year once it reaches steady-state production. Sibanye expects to begin mining next year and build a stockpile before the planned start of processing in the first quarter of 2029. The project has 2.7-million ounces in reserves, with the company saying successful development could provide access to a further 8.9-million ounces.Mount Lyell, an old mine near Queenstown in Tasmania, will require about $340m to bring back into production. The company said it plans to use existing infrastructure at the site, including underground workings, ventilation and water-pumping systems, to limit the new capital required.The project is expected to have a life of about 23 years and, at steady state, produce about 26,000 tonnes of copper a year, alongside gold and silver.The two projects are part of Sibanye’s plan to sustain production as its existing mines mature. Management said that without further investment, group production would fall to about 1.5-million equivalent ounces over the next decade.CEO Richard Stewart said the company was able to move quickly on its investment plans because of the cash generated during the first half. “The group remained on track with its target of cutting gross debt by 50% over two to three years, while funding new projects from internally generated cash.”Sibanye’s US recycling operations, expanded through two acquisitions integrated over the past 12-18 months, generated $164m in adjusted ebitda and $103m in cash. The operations span Pennsylvania, North Carolina and Columbus.At its Century Zinc operation in Australia, payable zinc production fell 13% to 45,000 tonnes as the mine nears the end of its life and wet weather disrupted operations.At the Keliber lithium project in Finland, mining is under way, and Sibanye is ramping up the concentrator. The company expects to decide later this year whether to start the refinery, with the timing of a move to battery-grade lithium dependent on market conditions and ore quality.Sibanye left most of its 2026 guidance unchanged but increased its forecast for gold production costs and earmarked additional capital for Burnstone and Mount Lyell in the second half.Sibanye spent R8.2bn on capital projects in the first half, down from R9.4bn a year earlier. The company attributed part of the reduction to the completion of major spending on Keliber.Business Day