Sibanye-Stillwater to impair US mine for R8.79bn

SIBANYE-Stillwater said in a trading statement on Wednesday that it would write-down its US-based Stillwater palladium/platinum mine by about R8.79bn.The impairment stems from a decision announced last year to cut production at Stillwater as the outlook for the palladium price had deteriorated.The impairment will feature in the miner’s 2024 annual results presentation on Friday (February 21) in which Sibanye-Stillwater’s full year share earnings would come in at a loss of between R2,45 and R2,71 South African cents per share.This compares to a heavier loss for 2023 of R13,34/share. Therefore Friday’s numbers represent something of a year-on-year improvement, largely owing to profit-making in the second half, the group said in its statement.Lower royalties, an insurance payout on Stillwater, translation gains, and a decrease in an onerous contract at Sandouville, the firm’s French base metals refinery, also contributed to the improved basic earnings year-on-year.Of its headwinds, there is the continued deterioration in the rand basket price of platinum group metals, which Sibanye-Stillwater said was down 16% on average year-on-year (21% lower in dollar terms).A comfort is be the gold price. Its price received for the 12 months was 22% higher. Reldan, a US scrap recycling company that Sibanye-Stillwater bought for $156m in March last year, also made a contribution to revenue.Sibanye-Stillwater announced in September it would cut production at Stillwater by 200,000 ounces per year. Some 800 in employee and contractor job losses were expected as production reduced to about 200,000 oz in 2025. Stillwater West mine was put on care and maintenance while high grade output at Stillwater East section was also targeted.On a headline earnings basis, which ignores exceptional items such as write-downs, Sibanye-Stillwater expected to report between 63 and 67 SA cents per share. This compares to headline earnings of 63c/share in 2023 representing flat to improved earnings year-on-year of seven per cent.Sibanye-Stillwater said most of the major gold, platinum group metal and metals production from recycling was within guidance ranges except Stillwater Mine in the US owing to the restructuring. The Century zinc tailings retreatment operation in Australia also missed guidance as a result of a previously reported bushfire, it said.The post Sibanye-Stillwater to impair US mine for R8.79bn appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.comWeiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com