Table of Contents
Key Points
- Sibanye-Stillwater rebounded with a $70.4 million profit in H2 2024, reversing a $311.1 million loss in H2 2023, thanks to restructuring and higher gold prices.
- Revenue rose 7% to $3.2 billion, with South African gold operations leading, as adjusted EBITDA surged 216%, outpacing PGM operations for the first time since 2017.
- CEO Neal Froneman, set to retire in Sept. 2025, credits restructuring and cost management for Sibanye’s recovery.
South African mining tycoon Neal Froneman, nearing retirement, has successfully guided Sibanye-Stillwater back to profitability, with the diversified metals producer recording a $70.4 million profit in the second half of 2024.
The mining giant—known for its platinum, palladium, and gold assets—owes its comeback to aggressive cost-cutting, strategic restructuring, and a strong performance in its South African gold division, which benefited from soaring bullion prices.
Froneman’s final chapter: Leading Sibanye-Stillwater’s resurgence
The latest financial results come as Froneman prepares to retire at the end of September after leading Sibanye-Stillwater since its inception in 2013. At 65, he steps down after navigating the company through market turbulence and operational challenges.
Just a year ago, Sibanye-Stillwater was weighed down by inefficiencies and falling commodity prices, leading to a R5.71 billion ($311.1 million) loss in H2 2023. But a rebound in gold prices, coupled with restructuring efforts, has helped reverse its fortunes. Revenue climbed 7 percent to R56.93 billion ($3.2 billion), while adjusted EBITDA in the gold segment surged 216 percent to R3.6 billion ($206 million).
However, challenges remain. The company’s South African PGM operations have struggled, with adjusted EBITDA dropping 55 percent to R2.6 billion ($152 million) due to weak PGM prices and rising costs. Production increased by 4 percent—boosted by acquiring Anglo American Platinum’s 50 percent stake in Kroondal—this was offset by lower output at Rustenburg and disruptions from labor unrest.
Gold leads Sibanye-Stillwater’s recovery
For the first time since 2017, the company’s gold operations have surpassed its South African PGM segment, contributing 56 percent of total adjusted EBITDA. A 26 percent jump in the average rand gold price, combined with improved efficiency, added R2.5 billion to adjusted EBITDA, reinforcing gold’s role in the company’s resurgence.
“Our diversification and proactive approach to macroeconomic challenges have strengthened our ability to navigate market volatility,” Froneman said. “Over the past 18 months, restructuring efforts have significantly improved operational stability and profitability. With disciplined cost management and the support of higher gold prices, we are well-positioned to sustain this momentum.”
Strengthening Sibanye-Stillwater’s global position
Beyond South Africa, Sibanye-Stillwater continues to expand its global footprint with gold and base metal projects in the Americas. Froneman holds a 0.12 percent stake—equivalent to 3,284,428 shares—in the company.
The company is also focusing on further cost reductions in its U.S. PGM operations and optimizing its Sandouville nickel refinery in Europe. A recent partnership with the Glencore Merafe Venture is expected to boost the value of its South African PGM chrome production.
Investor confidence in Sibanye-Stillwater’s turnaround is reflected in its stock performance. As economic uncertainty persists, the company remains committed to balancing capital expenditures and maintaining financial stability while leveraging its diversified asset portfolio.
