Sibanye-Stillwater reports record profit in H1 2021, plans to push its green energy metals strategy
(Kitco News) - Sibanye Stillwater (NYSE: SBSW), the world's largest primary producer of platinum and rhodium, the second largest primary producer of palladium and a top tier gold producer, today announced another record financial performance for the six months ended 30 June 2021 (H1 2021).
The company said that improved operational performance, together with considerably higher commodity prices, resulted in profit for H1 2021 increasing by 160% to R25,319 million (US$1,740 million) compared with R9,731 million (US$584 million) for H1 2020. This surpassed the previous group record of R20,891 million (US$1,277 million) reported for H2 2020, by 21% or R4,428 million (US$463 million), the company noted in its statement.
Basic earnings per share (EPS) of 843 SA cents (58 US cents/232 US cents/ADR) and headline earnings per share (HEPS) of 843 SA cents (58 US cents/232 US cents/ADR) both increased by approximately 140% year-on year, benefiting from the strong operating performance and robust commodity prices. Normalised earnings of R24,411 million (US$1,678 million) was 176% higher than for H1 2020.
The company said that in line with the dividend policy, an interim dividend of approximately R8,544 million (US$565 million) (292 cents per share/US77.2 cents per ADR), equivalent to an annualised dividend yield of 10%, was approved by its Board. This interim dividend is equivalent to 35% of normalised earnings and is at the upper end of the range specified in the group dividend policy.
In addition, the company pointed out that it plans to become a meaningful participant in the green energy metals space, which would complement its existing leading PGM mining and recycling operations, the company’s latent uranium potential, as well as its existing gold presence.
Preliminary steps to position the corporation in the green energy metals sector were made during the H1 2021, with the acquisition of an initial stake in the Keliber lithium project in Finland and the proposed acquisition of the Sandouville nickel refinery in France.
Sibanye-Stillwater is a leading international precious metals mining company, with a diverse portfolio of PGM operations in the United States and Southern Africa, gold operations and projects in South Africa, and copper, gold and PGM exploration properties in North and South America.