Sibanye-Stillwater’s platinum group metal (PGM) operations in South Africa produced 451,560 4E oz during the quarter that ended September 30, 2023, which was 4% higher than 432,143 4E oz recorded a year earlier.
The output excluded third-party purchases of concentrate (PoC).
The growth, it said, was due to improved production from the Rustenburg and Marikana operations, which offset lower production from the Kroondal operation as a consequence of the planned closure of the Simunye shaft in 2022.
Sibanye said production, including PoC, was 6% higher year-on-year at 475,555 4E oz due to third-party PoC processing increasing by 44% to 23,995 4E oz year-on-year.
The company said no ore stockpiles were reported at the end of the quarter, compared with the end of the third quarter in 2022, when underground ore containing about 33,000 4E oz was stockpiled on the surface.
“The group's strategic response to the load curtailment has been very effective, underpinned by the relative advantage of processing capacity that averts the risk of accumulating ‘deferred production’,” it said.
Following the sharp decline in the 4E PGM basket price, Sibanye said that it will need to restructure to ensure long-term profitability and sustainability, as four of its shafts have become unprofitable.
It said chrome sales from the SA PGM were 1% lower year-on-year at 554,000 tonnes during the third quarter of 2023.
The chrome price received increased by 28% year-on-year to $290 per tonne from the previous year’s $227 per tonne, underpinning a 25% increase in chrome revenue to R1 billion ($56 million).
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
