- Sibanye-Stillwater (NYSE:SBGL) -3.5% premarket despite reporting an H1 profit of 101M South African rand (~$7M) vs. a 2.2B rand loss in the year-ago period, driven by higher palladium prices, and adjusted EBITDA rose 26% Y/Y to $3.9B rand.
- H1 revenue rose 24% to 23.9B rand ($1.63B), as inclusion of a full six months of production from U.S. platinum assets acquired in May 2017 and higher metals prices offset reduced revenue from South African gold operations, which fell to 1.59B rand due to weaker production stemming from the closure of its Cooke mine and disruptions at Driefontein and Beatrix.
- Excluding Cooke operations, SBGL says H1 gold production at its South African mines fell by 7% Y/Y to 598.5K oz. with a 7% increase in all-in sustaining costs to $1,315/oz., mostly due to lower volumes.
- SBGL also says H1 results were hurt by transaction and financing costs from last year's acquisition of Stillwater and higher restructuring costs and impairments associated with losses at South African gold operations.
- Accidents at the company's miner killed 21 people during H1, and CEO Neil Froneman says operating and safety challenges "have been our primary focus and are being proactively addressed."
- The company also says its Lonmin acquisition remains on track and expects to win final approval from South African authorities this year.
- Now read: Wheaton Precious Metals Strikes Again
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