Dual-listed Sibanye-Stillwater on Thursday said its three segments’ operating results for the second quarter, ended June 30, had significantly improved relative to the first quarter.
In an operational update to shareholders, it said further operational improvements were expected throughout the second half of the current financial year, which should allow it to meet its full-year guidance.
Mined platinum and palladium (2E) platinum group metals (PGM) production from the US PGM operations of 153 874 oz for the second quarter was 18% higher quarter-on-quarter, while all-in sustaining costs (AISC) decreased by about 13% to $723/oz of 2E PGMs.
This brought total 2E PGM production for the first half of the year to 284 773 oz, at an AISC of about $774/oz. The planned clawback of production from the first quarter remained on track, with a significant improvement in production and costs forecast for the second half of the year.
The commissioning of the second electric furnace in the first half of the year enabled the delivery of record throughput of mined and recycled material from the Columbus Metallurgical Complex for the half-year.
For the six-month period, the recycling operation fed an average of 26.3 t/d of material – an 11% year-on-year increase.
Meanwhile, the consistent operational performance from the South African PGM operations continued, with second-quarter platinum, palladium, rhodium and gold (4E) PGM production, excluding the Marikana operations, of 283 526 oz – 8% higher than in the first quarter.
AISC decrease by about 2% quarter-on-quarter to about $869/oz.
Owing to seasonal factors, the second half of the calendar year is generally better from an operational perspective for South African mining operations.
As such, yearly 4E PGM production, excluding the Marikana operations, is expected to be at the upper end of yearly guidance of between one-million ounces and 1.1-million ounces and AISC within guidance of between $922/oz and $974/oz.
The Marikana operations will be consolidated as part of the South African PGM operations from the month of June.
GOLD OPERATIONS
The resumption and build-up of production from the South African gold operations, excluding the DRDGold operations, following a five-month strike that ended in April, has progressed according to plan, with gold production for the second quarter at 155 956 oz, 46% higher than in the first quarter.
Production from the South African gold operations is expected to normalise from August, with forecast production for the second half of the year of between 514 000 oz and 546 000 oz. This is significantly higher than the first half of the year’s production of 262 904 oz and more reflective of forecast production rates before the strike.
As a result of the planned production build-up, AISC for the second half of the year of between $1 350/oz and $1 450/oz is forecast to be significantly lower than the $2 110/oz achieved for the first half of the year.
Sibanye will release its full interim results on August 29.