Precious metals miner Sibanye-Stillwater receives positive outlook from S&P

Ratings agency S&P Global has revised the outlook for Sibanye-Stillwater to positive from stable due to “extremely strong” platinum group metals (PGMs) basket prices.
“We think PGM prices could remain elevated but realised rand pricing could be partly offset by lower dollar exchange rates,” said S&P. 
“The strong pricing environment seen in 2021 to date is likely to persist, owing to supply-and-demand deficits expected for palladium and rhodium over the next three to five years before substitution to platinum takes effect.” 
It said demand was being driven by tightening emissions control regulations in the automotive sector, resulting in increased PGM loading requirements in catalytic converters, while supply is tempered by years of underinvestment in South African PGMs mining.
Mining Weekly reports that the positive outlook shows that S&P could potentially raise the rating again within the next 24 months, subject to certainty on Sibanye’s business.
The agency also confirmed the miner’s ‘BB-’ long-term rating, and raised its South Africa national scale rating on the company to ‘zaAA+’, from ‘zaAA’.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished