Precious metals mining company Sibanye Stillwater has posted a record quarterly financial performance, with group adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of R19,826 million ($1,325 million) for the first quarter of 2021.
This was 78% higher than adjusted EBITDA for Q1 2020 of R11,132 million (US$724 million), which was then a record quarter for the group.
It said the South African PGM operations, in particular, benefited from strong operational performance and sharply higher PGM prices, delivering a 90% increase in adjusted EBITDA to R15,280 million (US$1,021 million) from R8,043 million (US$523 million) for the first quarter of 2020.
"Notably, adjusted EBITDA generated by the SA PGM operations for this quarter, is higher than the total acquisition costs of these operations, emphasising the significant return on investment already delivered and the future windfalls stakeholders can continue to expect," it said.
"With the 4E PGM basket having increased further during Q2 2021, the outlook for the year is very promising."
Precious metals prices remained strong during Q1 2021, with palladium and rhodium prices again reaching record levels, supported by ongoing supply disruptions and strong physical demand.
It said PGM markets remained tight with the fundamental outlook for these metals positive.
Longer-term the group's PGMs and green metals are expected to continue to play a critical role as global sentiment shifts towards a more environmentally conscious future.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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