Miningweb: Sibanye-Stillwater swings to profit as gold price soars and US operations benefit from tax credits

Key topics:Turnaround to profit: Sibanye-Stillwater swung to R5.4bn (US$292m) headline earnings in H1 2025, boosted by soaring gold prices and US tax credits.Operational highlights: SA gold EBITDA rose 118% despite a 13% production drop; US PGM units gained from Section 45X credits, while France’s nickel refinery faces closure.Outlook and caution: Stronger balance sheet and positive market outlook, but no interim dividend declared due to global uncertainty.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..BizNews Reporter.Sibanye-Stillwater has reported a dramatic turnaround in its financial fortunes for the first half of 2025, driven by a surging gold price and significant tax credits for its US operations. The company's headline earnings soared 19-fold to R5.4 billion (US$292 million), a stark contrast to the same period last year.However, the bottom line was impacted by impairment charges of R9.7 billion (US194 million), although this was a significant improvement on the previous year.Key Financial Highlights:Group adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 127% to R15.1 billion (US$818 million).The company's net debt to adjusted EBITDA ratio was almost halved, falling to 0.89x from 1.79x at the end of December 2024, signaling a much stronger balance sheet.A total of R5.1 billion (US$285 million) in Section 45X credits for its US PGM operations was a major contributor to the improved results.Operational Performance:South African Gold Operations: A Golden LiningThe standout performers were the South African gold operations, which saw their adjusted EBITDA increase by a massive 118% to R4.8 billion (US$260 million). This was almost entirely due to a 36% increase in the average rand gold price received during the period.However, production from the gold operations declined by 13% to 300,191 ounces, with the company citing operational challenges, including infrastructure constraints.PGM Operations: A Mixed BagThe South African PGM operations delivered a steady performance, with production in line with guidance. The company is well-positioned to benefit from a recent rally in PGM prices.The US PGM operations, on the other hand, saw production fall but benefited from restructuring efforts and the aforementioned Section 45X tax credits. These credits are part of the US Inflation Reduction Act and provide a 10% credit on operating costs for mining and recycling.Other Operations:The Century zinc retreatment operation in Australia saw a 22% increase in production.The Sandouville nickel refinery in France is being ramped down and will be placed on care and maintenance from the beginning of 2026.Outlook:Sibanye-Stillwater has a positive outlook for the second half of 2025, with the company expecting to benefit from the recent rally in PGM prices and the continued strength of the gold price. The company also anticipates an improvement in production from its South African gold operations.The company has a strong liquidity position and is well-placed to navigate the current economic climate. However, no interim dividend was declared, with the board citing global economic and geopolitical uncertainty..Download the results PDF below:

Miningweb: Sibanye-Stillwater swings to profit as gold price soars and US operations benefit from tax credits

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