Higher gold and PGM prices lift Sibanye-Stillwater earnings

Sibanye-Stillwater expects headline earnings per share (HEPS) to more than triple in the six months to end-June, helped by higher gold and platinum group metals (PGM) prices.

The miner expects HEPS of 571c-631c for the first half of 2026, up from 190c a year earlier.

Sibanye’s South African gold operations were a major contributor. Adjusted earnings before interest, tax, depreciation and amortisation (ebitda) increased about 85%.

The gold price received in rand rose 35%, while gold sold increased 5%. Production fell 2%.

The company said production was affected by planned changes at Kloof in Gauteng and operational challenges at Beatrix, the company’s gold mine in the Free State. This was partly offset by a 13% increase in production from surface operations, including a 10% increase at DRDGOLD.

Costs also rose, with gold production costs increasing 14% to R1.64m/kg. Sibanye attributed the increase to inflation, higher royalties and increased pumping costs.

Sibanye’s South African PGM operations recorded an even bigger improvement, with adjusted ebitda rising about 300%.

The price received for platinum, palladium, rhodium and gold rose 67%, while PGM sales increased 12%. Production was broadly unchanged at 831,307 ounces.

Costs rose 10% to R26,252/oz but remained below the lower end of the company’s full-year guidance.

The US PGM operations produced 137,930 ounces, down 2%, while the price received for platinum and palladium rose 70%.

Reported operating profit from the US PGM operations fell 56% compared with the first half of 2025. The 2025 figure included $139m in tax credits that were not repeated this year. Sibanye said underlying profitability improved.

The company said its recycling business also benefited from higher metal prices and increased volumes. Precious metals recycled and sold increased 142% to 2.79 million ounces, while adjusted ebitda rose about 10%.

At the Century zinc operation in Australia, production fell to 45,000 tonnes from 51,000 tonnes, but operating profit rose about 50% as higher zinc prices offset lower output and increased costs.

In Finland, Sibanye is advancing its Keliber lithium project towards production. Mining has started at the Syväjärvi open-pit mine, while the plant that processes the ore is being tested