(Reuters) -Sibanye Stillwater reported a narrower first-half loss on Thursday, as production credits at its U.S. palladium business and the restructuring of its South African mines partly offset big writedowns at its U.S. and Finnish operations.
The Johannesburg-based miner posted a loss of $211 million, for the six months to June 30, down from a $372 million loss the year before, when it booked a $407 million impairment on its U.S. operations after cutting its forecast for palladium prices.
Under the Inflation Reduction Act enacted in 2022, the U.S. offers credits as an incentive for the domestic production of critical minerals, including palladium.
“The positive financial outcomes from solid operational management and decisive restructuring were amplified by the incorporation of Section 45X credits in terms of the Inflation Reduction Act,” Sibanye said in a statement.
Sibanye said a total $285 million of combined estimated credits from the 2023 financial year had been recognised, boosting profitability for the first half of 2025. Cash payments are expected in 2026, it added.
However, the company said the production credits would be phased out from 2031 and terminated in 2034 under U.S President Donald Trump’s signature spending law. That prompted Sibanye to book another 3.8 billion rand impairment of its U.S. business due to the expected decrease in future cash flows.
Sibanye also wrote down 5.4 billion rand from the value of its Keliber lithium project in Finland, citing a decrease in the long-term price forecast for the battery mineral.
The diversified miner said record high bullion prices had helped boost income, despite its South African gold mines recording a 14% decrease in output mainly due to increased seismicity and infrastructure challenges at its Kloof mine.
Sibanye said its South African platinum operations, where loss-making shafts were closed last year, were positioned to benefit from the rebound in metal prices.
($1 = 17.5632 rand)
(Reporting by Nelson Banya. Editing by Louise Heavens and Mark Potter)
