Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
South Africa’s Sibanye Stillwater on Friday said it expects its half-year profit to fall by as much as 53% due to weaker platinum group metal (PGM) prices and lower output from its US operations.
In a trading update, Sibanye said it expected to post headline earnings per share (HEPS) of between 1.98 rand and 2.18 rand ($0.1039-$0.1144) for the six months to June 30, down from 4.23 rand a year earlier.
Sibanye’s average rand basket price for its PGMs was down 22% while PGM production from its southern African mines was 848,723 ounces versus 849,152 a year earlier.
However, output from its US operations was down 11% at 205,513 ounces following shaft infrastructure damage at the Stillwater mine in Montana and ongoing skills shortages.
Gold production rebounded to 334,721 ounces after plunging to 191,683 ounces during a strike-hit first half of 2022. Still, its output remained well below levels above 500,000 ounces reached before the strike.
Sibanye will release its financial results on Aug. 29.
($1 = 19.0510 rand)
(By Nelson Banya; Editing by Jason Neely)
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