Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
Sibanye-Stillwater (JSE: SSW)(NYSE: SBSW) said on Friday it had reduced the number of planned job cuts across its South African platinum group metal (PGMs) operations to 2,600 after talks with stakeholders, including labour unions.
The precious metals producer kicked off in October a restructuring process at its four loss-making mines that was expected to result in the loss of 4,095 jobs.
Sibanye-Stillwater said the reduction in the number of layoffs was possible thanks to strategic decisions taken in consultation with interested parties. These include going ahead with the announced closure of the Simunye shaft, which ceased production in 2023, as well as keeping the 4 Belt (4B) shaft at Marikana open.
The miner said that the Marikana mine shaft, which employs 1,496 permanent workers and 54 contractors, will only stay in production if it does not run up net losses on a monthly basis.
Two other shafts, Rowland and Siphumelele, which were hit by operational and geological issues, “have been repositioned for sustainable levels of production at a lower cost structure”, Sibanye-Stillwater said.
The Johannesburg-based firm noted that almost 1,300 employees had voluntarily left their jobs or accepted early retirement packages, while 467 people left since September due to “natural attrition”.
The company said earlier this week that it expects to report a 91% loss for 2023 due to multiyear-lows for platinum-group metals prices. It also flagged an impairment of 47.5 billion rand ($2.58 billion).
Palladium and platinum prices decline has driven producers in South Africa, including Sibanye-Stillwater to apply severe cost-cutting measures.
Impala Platinum Holdings has offered voluntary job cuts, including at its deep-level Rustenburg complex, while Anglo American Platinum (Amplats) has announced plans to cut 3,700 jobs after its profit plunged 71% last year.
