(Reuters) -Sibanye Stillwater’s shares slumped to their lowest this year after it suffered its second consecutive full-year loss in two years.
Sibanye’s shares declined 9% at 0857 GMT after the precious metals producer posted a $311 million loss last year. However, the Johannesburg-based miner said a rally in gold prices helped partially offset the impact of persistently low platinum group metal (PGM) prices.
Sibanye’s profit tumbled $2 billion in 2023, hammered by a slump in prices for platinum and palladium, metals which are used to manufacture devices that help curb vehicle emissions.
Sibanye wrote down $500 million of its U.S. palladium assets, citing a lower palladium price outlook, following a $2.6 billion impairment charge in 2023.
Income at Sibanye’s gold mines in South Africa surged 66% to 5.8 billion rand ($316 million) due to a rally in gold prices.
The gold mines, which are some of the oldest in South Africa and deepest in the world, contributed 45% of the group’s core earnings or EBITDA.
While Sibanye has diversified into PGMs, lithium, nickel and zinc processing, the gold mines are “an insurance policy” when prices for industrial metals decline, outgoing CEO Neal Froneman said.
Sibanye is among South African platinum miners that have cut jobs and restructured operations as they battled to squeeze profits amid a slump in metal prices.
The Sibanye board is currently reviewing updated project information on the proposed Ryolite Ridge joint venture in Nevada with ioneer and an investment decision could be made before the end of February, Froneman said.
“We’ve presented our assessment, having received the detailed feasibility study. Probably within a week we will be able to advise the market of our decision,” he said.
($1 = 18.3567 rand)
(Reporting by Nelson Banya and Felix Njini; Editing by Christopher Cushing, Shri Navaratnam and David Evans)
