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KEY POINTS
- Sibanye-Stillwater returned to profit with R18.8bn earnings in H1 2026.
- Revenue rose 64% to a record R90bn as gold and PGM prices surged.
- The miner cut debt, declared a R5.7bn dividend and advanced major gold and copper projects.
Sibanye-Stillwater has returned to profitability, reporting earnings of R18.8 billion for the first half of 2026 as stronger precious metal prices and improved operational performance boosted revenue and earnings across the diversified mining group.
For the six months ended June 2026, the company recorded record revenue of R90 billion, representing a 64% increase from the same period a year earlier.
Adjusted EBITDA more than doubled to R31.8 billion, while cash generated from operations reached a record R19.6 billion.
The stronger financial performance also enabled Sibanye-Stillwater to reduce its debt and strengthen its balance sheet while declaring an interim dividend for shareholders.
Sibanye-Stillwater’s gross debt declined by 20% year-on-year to R32.1 billion, while net debt fell to R9.7 billion.
The company declared an interim dividend of R5.7 billion, equivalent to 201 cents per share, reflecting the stronger cash-generation position during the period.
The improvement marks a significant turnaround for the miner, with higher prices for gold and platinum group metals providing a major boost to profitability.
South African PGM operations lead growth
The company’s South African platinum group metals operations were the strongest contributor to its improved performance.
PGM production fell marginally by 2% to 789,647 4E ounces, excluding third-party concentrate. However, the decline in production was more than offset by substantially higher metal prices.
The average PGM basket price increased by 67% to R43,996 per 4E ounce, pushing revenue from the South African PGM operations up 73% to R43.1 billion.
Adjusted EBITDA from the division surged 302% to R19.2 billion, while its all-in sustaining cost margin reached 44%.
The results highlight the significant impact that stronger commodity prices had on the company’s profitability during the first half of the year.
Sibanye-Stillwater’s South African gold operations also benefited from higher gold prices.
Gold production declined marginally to 293,665 ounces, but gold sales increased by 5% to 308,261 ounces.
The average gold price rose by 35% to R2.43 million per kilogram, helping the gold business generate record adjusted EBITDA of R9 billion despite higher operating costs.
The improved gold-price environment therefore helped compensate for the slight decline in production and rising costs.
In the United States, Sibanye-Stillwater’s PGM operations produced 137,930 2E ounces during the period, down 2% from the previous year.
Higher PGM prices helped cushion the impact of lower production, although adjusted EBITDA declined to R1.1 billion.
The company attributed much of the decline in earnings to the timing of the recognition of Section 45X tax credits rather than underlying operational difficulties.
Sibanye-Stillwater said it is continuing to pursue efficiency improvements and cost reductions at its US PGM operations, including greater use of mechanisation.
The company is targeting all-in sustaining costs of approximately US$1,000 per 2E ounce and annual production of about 410,000 2E ounces by the end of 2028.
Sibanye-Stillwater’s recycling operations also delivered a significant improvement during the first half of the year.
Underlying adjusted EBITDA, excluding Section 45X tax credits, increased more than fivefold to US$137 million. Recycled precious metals sold rose by 142% to 2.79 million ounces.
The strong performance reinforces the growing contribution of recycling to Sibanye-Stillwater’s broader precious metals business.
Beyond its existing mining operations, Sibanye-Stillwater continued to advance major development projects.
In South Africa, the company’s board approved an investment decision for the Burnstone gold project following an updated feasibility study.
Burnstone is expected to produce approximately 130,000 ounces of gold annually once fully operational, with production targeted to begin in 2029.
The board has also approved the development of the Mt Lyell copper project in Tasmania, Australia.
Mt Lyell is expected to have a mine life of 23 years and is projected to produce about 26,000 tonnes of copper, 16,000 ounces of gold and 116,000 ounces of silver annually.
First production from the project is targeted for early 2029.
Despite the strong financial results, Sibanye-Stillwater said safety remained a major priority.
The company reported its strongest first-half performance on key injury-frequency measures. However, three employees died in two separate incidents at its South African operations during the second quarter.
The fatalities remain a significant concern for the company despite the improvement in broader safety indicators.
Sibanye-Stillwater has largely maintained its production and cost guidance for the rest of 2026.
The decision reflects the company’s confidence in its operational performance and the continued support provided by stronger precious metal prices.
With higher commodity prices, improved cash generation, falling debt and several major growth projects under development, the miner enters the second half of 2026 from a considerably stronger financial position.
