Sibanye-Stillwater Profits Touched New Record, Boosted by Soaring Metal Prices

SEATTLE (Scrap Monster): Precious metals producer, Sibanye-Stillwater provided operating update for the quarter ended 30^th September, 2020. The third quarter earnings hit record-high level, boosted by higher metal prices.

The adjusted EBITDA soared by 182% over the previous year quarter to $992 million in the quarter, which is a new record. The net debt reduced by further $666 million. The net debt to adjusted EBITDA ratio stood at 0.33 times by the end of the quarter.

The company noted that it is in the process of normalizing production run rates at its South African operations. The buoyant metal prices and a weak rand exchange rate are expected to generate significant cash flows in future, it added.

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The production at its South African PGM operations reported 18% decline during the quarter to total 427,715 ounces, mainly due to covid-19-related constraints. Meantime, the SA gold operations have recalled nearly 92% of the workforce and achieved a production run rate of around 99% of planned level. The mined output from its U.S. operations remained more or less flat at 147,835 ounces. The quarterly gold output too remained flat at 288,938 ounces.

Sibanye-Stillwater’s total capital expenditure for Q3 this year amounted to $69 million and was mainly spent on the Blitz project. However, the project is expected to be delayed by up to two years, it noted.