Sibanye Stillwater (SSWJ.J) has reported a narrowed loss of $311 million for the 2024 fiscal year, a significant improvement from the $2 billion loss it recorded in 2023. The company attributed the smaller loss to the positive impact of elevated gold prices, which helped cushion the financial blow from persistently low platinum group metal (PGM) prices.
The Johannesburg-based precious metals producer, which operates a diversified portfolio of assets across gold, platinum, and palladium, faced significant financial pressures last year. The 2023 loss was largely driven by the sharp decline in palladium prices, which heavily impacted Sibanye’s earnings. To further compound its financial challenges, Sibanye also made a $500 million writedown on its U.S. palladium assets, citing a revised lower price forecast for the metal. This followed a broader $2.6 billion impairment charge in 2023, as the company adjusted the value of its assets to reflect the sustained downturn in the platinum group metals market.
Despite these setbacks, Sibanye saw a notable improvement in income from its South African gold operations. Revenue from its gold mines in the region surged by 66% to 5.8 billion rand ($315.96 million) compared to the previous year, driven by stronger gold prices. These increased revenues from gold mining provided a much-needed financial cushion for the company during a period of challenges in other segments of its business.
Sibanye’s management highlighted the strong performance of its mature gold mines as a key factor in the company’s ability to offset the difficulties faced in its PGM operations. In a statement, Sibanye said, “These mature gold mines, buoyed by the tailwind of a strong gold price, delivered materially better financial results for 2024. This performance was particularly notable during a challenging period for most of our other metals, which are more closely aligned with industrial economic cycles and have been significantly impacted by global economic volatility.”
The company’s results reflect the broader trends in the precious metals market, with gold prices seeing an uptick due to global economic uncertainties, including inflationary pressures and geopolitical tensions. While Sibanye’s gold operations delivered strong financial results, the company’s platinum and palladium segments remain vulnerable to external market factors that continue to impact industrial demand.
Sibanye’s decision to focus on its South African gold mines proved to be timely, as these operations were able to capitalize on favorable market conditions, helping to mitigate the effects of lower prices for PGMs. Going forward, the company is expected to continue leveraging its gold assets while navigating the challenges posed by the fluctuating PGM market.
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