Citing industrial action and a deteriorating economic environment, Sibanye-Stillwater said profit for its H1 was R12.3 billion (US$803 million), 51% lower than the company's record profit the same period a year prior.
Production from the SA gold operations was 63% lower year-on-year, primarily due to industrial action which extended for more than three months, while the US PGM operations reported a 23% decline in 2E PGM production in H1 2022 compared with H1 2021, as a result of ongoing operational constraints and the temporary suspension of operations at the Stillwater mine following severe regional flooding that occurred in Montana from mid-June 2022, said the company.
Platinum group metal production from the SA PGM operations was 8% lower than for H1 2021, but remains within guidance.
"This continued focus on cost management has resulted in the SA PGM operations migrating meaningfully down the industry cost curve since they were acquired. Considering the significant operational disruptions during the period, and the deterioration in the macro-economic environment, the Group's financial performance for H1 2022 was notable," wrote the company.
