Despite a solid operational performance in the third quarter ended September 30, lower average platinum group metal (PGM) and gold prices resulted in a decrease in precious and battery metals producer Sibanye-Stillwater's adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda).
Adjusted Ebitda decreased by 5% year-on-year to $1.02-billion, or R14.88-billion, in the third quarter.
The average PGMs basket price had decreased to $2 711/oz in the third quarter, compared with the average price of $3 488/oz in the quarter ended June 30.
Sibanye attributed the lower PGM prices to the ongoing global semiconductor shortage, which was negatively impacting on PGMs demand in the automotive industry.
"Prices have since stabilised and we remain confident that the automobile supply chain constraints should start easing during the course of 2022," CEO Neal Froneman said in a statement on October 28.
The average gold price, meanwhile, had decreased to $1 781/oz in the third quarter, compared with $1 845/oz in the third quarter of 2020 and $1 807 in the second quarter of this year.
The US PGM operations produced 144 325 oz of platinum and palladium (2E) in the third quarter – a 2% decrease compared with the 147 835 oz produced in the third quarter of 2020.
The South African PGM operations produced 500 073 oz of platinum, palladium, rhodium and gold (4E) in the third quarter – a 20% increase on the 416 934 oz produced in the prior comparable quarter.
Sibanye's South African gold operations produced 293 761 oz – a 2% increase on the 288 938 oz produced in the third quarter of 2020.
The group has maintained its full-year production guidance for 2E PGMs production from its US operations at between 620 000 oz and 650 000 oz, while its forecast 4E PGMs production from its South African operations remains unchanged at between 1.75-million and 1.85-million ounces.
Sibanye's gold production guidance for the full-year also remains unchanged at between 884 000 oz and 948 000 oz.