Sibanye-Stillwater ten years on.
JOHANNESBURG (miningweekly.com) – This month ten years ago, Sibanye Gold Limited was unbundled by Gold Fields Limited and listed on the JSE and the NYSE as an independent company with three deep-level South African gold mines and a market capitalisation of R10-billion.
Today, the group, headed by CEO Neal Froneman, is intent on building a portfolio of green metals and energy solutions that reverse climate change, the company states in a release to Mining Weekly. (Also watch attached Creamer Media video.)
It has evolved into a multinational diversified mining and metals processing group with a portfolio of operations, projects and investments across five continents, plus a market capitalisation 12 times larger than it was in 2013.
In addition to the capital growth in the business, it has returned R40-billion in additional value to investors in the form of dividends and share buybacks, which is four times its initial market capitalisation on listing.
This decade-long journey represents significant value creation for all stakeholders, and not exclusively for investors.
Early on in its existence, it recognised the importance of creating superior value for all stakeholders, a philosophy that is captured by its Umdoni tree, which symbolises its business ethos, and the early adoption of a stakeholder capitalism and shared value culture approach.
In 2013, it employed just over 36 000 people including contractors in South Africa, which by 2021 had increased to 85 000 worldwide.
It paid R6-billion in salaries and benefits in 2013, which grew to R26-billion in 2021, a four-fold increase.
In addition to these salaries and benefits, R1.4-billion over the last two years has benefited 46 000 employees in the form of dividends and other employee share option scheme payments.
Entry-level salaries at its South African gold operations have increased by over 105% since 2013, significantly higher than inflation, contributing to a decent living wage and reducing wage disparity.
The value it has shared with its communities through socio-economic development and corporate social investment programmes has also increased in the last ten years, from just over R1-billion in 2013 to over R2.2-billion in 2021, a 110% increase. It has recently gone beyond these investments by committing 1.5% of equivalent value in dividends paid out to shareholders, to infrastructure development projects in its local communities.
Its contribution to local society and economies goes beyond these investments, with taxes and royalties paid to governments increasing from R554-million in 2013 to almost R18-billion in 2021, a more than 30 times increase.
In the six months to the end of December last year, group adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of R41.1-billion for 2022 was 40% lower than the record adjusted Ebitda of R68.6-billion for 2021, but still the third highest group adjusted Ebitda recorded since listing.
In the six months to the end of December last year, group adjusted earnings before interest tax depreciation and amortisation (Ebitda) of R41.1-billion for 2022 was 40% lower than the record adjusted Ebitda of R68.6-billion for 2021, but still the third highest group adjusted Ebitda recorded since listing.
This was despite the R6.3-billion 47%-declining Ebitda loss of its United States underground platinum group metals mines and the R3.5-billion Ebitda loss of its South African gold operations.
Normalised earnings for 2022 of R21-billion were 46% lower year-on-year, with normalised R9.8-billion half-year earnings 32% down on the corresponding half-year period of 2021.
A final half-year dividend R3.5-billion, which with the interim dividend of R3.9-billion represents an annual dividend yield of 6% for 2022.
Free cash flow was at R9.5-billion (US$581 million) and cash and cash equivalents at R26.1-billion exceeding borrowings of R20.2-billion and resulting in a R5.9-billion net cash position