Sibanye Stillwater flags over 138% profit jump in H1’21

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  • HEPS are expected to increase from 350 SA cents to between 835 cents and 852 cents 
  • Expects more than 162% increase in profit attributable to the owners of the Group
  • Attributable to higher production and firm commodity prices

Johannesburg – South African miner, Sibanye Stillwater with a 50% holding in Zimbabwe-based Mimosa Mine, on Thursday, said that earnings per share (EPS) and headline earnings per share (HEPS) are both expected to increase by over 138% for the six months ended 30 June 2021 (H1 2021) compared with H1 2020.

EPS and HEPS are expected to be between 835 SA cents (57 US cents) and 852 SA cents (59 US cents) compared with EPS of 351 SA cents (21 US cents) and HEPS of 350 SA cents (21 US cents) for H1 2020.

The Group also advised that it expects more than 162% increase in profit attributable to the owners of the Group to between R24,588 million (US$1,690 million) and R25,084 million (US$1,724 million) for H1 2021, compared to R9,385 million (US$563 million) for the same period last year.

The significant increase in profit attributable to owners, basic earnings and headline earnings for the period compared to the comparative period in 2020 is mainly attributed to higher production from both the SA PGM and SA gold operations following the COVID-19 hard lockdown that impacted the operations in H1 2020 and successful measures which were implemented to reduce the impact of the ongoing pandemic on continued production.

Benefiting from the ongoing global trends on the commodities market, the higher earnings growth is also boosted by bullish average PGM basket price as well as lower outstanding debt resulting in a decrease in finance expenses.

“The Group again delivered a solid operating performance for the six months ended 30 June 2021, which underpinned the strong financial performance, ensuring leverage to higher precious metal prices and offsetting the impact of the 13% stronger rand against the US dollar,” the Group said.

4E PGM production from the SA PGM operations of 928,992 4Eoz was 41% higher than for the comparative period in 2020. Mined underground 4E PGM production increased by 43% year-on-year, to 817,369 4Eoz, with 4E PGM production from surface 34% higher at 76,796 4Eoz and third-party purchase of concentrate treated at the Marikana smelting and refining operations, increasing by 29% to 34,827 4Eoz.

Meanwhile, mined 2E PGM production from the US PGM operations of 298,301 2Eoz (H1 2020: 297,740 2Eoz) was flat year-on-year due to a 21-day safety related work stoppage in June 2021, which reduced production by approximately 20,000 2Eoz.

Production at the SA gold operations (including DRDGOLD) increased by 29% to 16,138 kg (518,848 oz) compared with H1 2020.

Sibanye-Stillwater will release its results for the six months ended 30 June 2021 on Thursday, 26 August 2021.

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