Sibanye-Stillwater Projects Decline in Earnings for First Half of the Year

Introduction

Key Details

Sibanye-Stillwater, a Johannesburg-listed precious metals miner, has projected a decrease in earnings per share for the first half of the year. They anticipate the earnings per share to be in the range of 249 to 275 South African rand cents (equivalent to 14-15 U.S. cents based on a conversion provided by the company). This is a significant decline compared to the EPS of 426 South African rand cents reported in the previous year.

Furthermore, headline earnings per share are expected to decrease by 48%-53%, with an estimated range of 198 to 218 South African rand cents.

Reasons for the Decline

The decline in platinum group metal prices has had a significant impact on Sibanye-Stillwater's financial performance. This decline has resulted in lower production and higher unit costs from their U.S. platinum operations. Additionally, the share of results from investees has also been affected by these falling prices.

However, there have been some positive factors that have mitigated these negative effects. The South African gold operations have shown improved operating and financial results compared to the previous year. Favorable foreign-exchange rates have also contributed to offsetting some of the decline in earnings.