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Sibanye-Stillwater expects 162% profit jump in H1 2021 on higher production and commodity prices

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(Kitco News) - Sibanye-Stillwater (NYSE: SBSW) today announced that for the six months ended 30 June 2021 (H1 2021), the company expects more than 162% increase in profit attributable to the owners of the group to between US$1,690 million and US$1,724 million, compared to US$563 million for the six months ended 30 June 2020 (H1 2020).

The company said that earnings per share (EPS) and headline earnings per share (HEPS), are both expected to increase by over 138% for H1 2021 compared with H1 2020. EPS and HEPS are expected to be between 57 US cents and 59 US cents compared with EPS of 21 US cents and HEPS of 21 US cents for H1 2020.

The company attributed the significant increase in profit and earnings to higher production from both the SA PGM and SA gold operations following the COVID-19 hard lockdown that impacted the operations in H1 2020 and successful measures which were implemented to reduce the impact of the ongoing pandemic on continued production; a higher average PGM basket price; and lower outstanding debt resulting in a decrease in finance expenses.

The company said that its 4E PGM production from the SA PGM operations of 928,992 4Eoz was 41% higher than for the comparative period in 2020. Mined underground 4E PGM production increased by 43% year-on-year, to 817,369 4Eoz, with 4E PGM production from surface 34% higher at 76,796 4Eoz and third-party purchase of concentrate treated at the Marikana smelting and refining operations, increasing by 29% to 34,827 4Eoz.

Mined 2E PGM production from the US PGM operations of 298,301 2Eoz (H1 2020: 297,740 2Eoz) was flat year-on-year due to a 21-day safety related work stoppage in June 2021, which reduced production by approximately 20,000 2Eoz. Recycling increased marginally to 402,872 3Eoz.

Production at the company's SA gold operations (including DRDGOLD) increased by 29% to 16,138 kg (518,848 oz) compared with H1 2020.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.