Dual-listed Sibanye-Stillwater is expecting its earnings per share (EPS) and headline earnings per share (HEPS) for the six months ended 30 June 2022 to be between 26 US cents and 29 US cents compared with EPS and HEPS of 58 US cents, a year earlier, representing a decline of 47% to 52% year-on-year.
The decrease in EPS and HEPS for the period is mainly due to a reduction in gold production from the South African gold operations for the second quarter.
“In addition and as reported the suspension of processing activities in late December 2021, to allow for the reinforcement of the Beatrix tailings storage facility (TSF), resulted in no ore being processed or sold from the Beatrix operations for the [first quarter] of 2022,” said the company.
The decline in EPS and HEPS is also attributed to production from the US PGM operations being significantly impacted by the severe regional flooding in Montana on 12 and 13 June 2022, with the Stillwater operations being suspended for seven weeks
Lower relative precious metals prices also affected the earnings as the average rand 4E PGM basket price was 19% lower for the first half of 2022 while the average US dollar 2E PGM basket price was 15% lower than the same period last year.
The decline in average commodity prices also resulted in the group recording a 45% decline in the share of results of equity-accounted investees after tax compared to the first six months of 2021.
Meanwhile, 4E PGM production from the South African PGM operations, including the purchase of concentrate (POC) of 849,152 4Eoz, was 9% lower than for the comparative period in 2021.
It said a 9% decrease in underground 4E PGM production to 751,717 4Eoz was partly offset by a 6% increase in surface production of 72,089 4Eoz, with third-party purchase of concentrate treated at the Marikana smelting and refining operations of 25,346 4Eoz, 27% lower due to the winding down of two third party purchase of concentrate contracts in the fourth quarter of 2021.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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