Sibanye Stillwater reported first-half results that marked a significant turnaround from the prior year. Revenue climbed 64% to R90 billion, equivalent to $5.5 billion, while headline earnings per share surged 216% to R6.01 compared with R1.90 in the first half of 2025. The company swung to a profit of R18.8 billion from a R3.9 billion loss a year prior, driven primarily by higher prices for platinum group metals and gold.
Management deployed the earnings windfall conservatively, focusing on balance sheet improvement rather than aggressive growth. Gross debt fell 18% to R32.1 billion over the six-month period, reducing net debt to 0.18 times adjusted EBITDA, and the company remains on pace to cut gross debt in half within two to three years. Adjusted EBITDA more than doubled to R31.8 billion, with cash conversion from operations reaching 65%, enabling the board to declare an interim dividend of R2.01 per share totaling R5.7 billion at the upper end of its payout policy. Liquidity reached R47.6 billion, comprising R22.4 billion in cash and R25.2 billion in undrawn credit facilities.
The company approved two new growth projects alongside its strong operational performance. Burnstone, a shallow gold initiative using existing infrastructure, received $98 million for 2026 with production targeted at 130,000 ounces annually beginning in 2029. Mt Lyell, a Tasmanian copper venture, secured $7.5 million for preparatory work and carries a net present value exceeding $1 billion at prevailing spot prices. The recycling segment, developed through the Metallix acquisition, sold 2.8 million precious metal ounces—up 142%—and produced $164 million in adjusted EBITDA.
Underlying operational trends revealed challenges beneath the headline figures. South African PGM production declined 2% to 789,647 4E ounces due to weaker surface output, while all-in sustaining costs climbed 10% to R26,252 per ounce largely from higher royalties. Gold production slipped 2% as underground output at Kloof dropped 9%, with gold’s all-in sustaining cost rising 14% to R1,638,089 per kilogram. In the United States, PGM production edged down 2% amid lower grades and labor shortages, though the operation achieved an all-in sustaining cost of $1,347 per ounce including a $181 credit from tax incentives.
Management flagged significant risks ahead. The US workforce has resisted mechanization incentives at Stillwater, with union labor agreements still under negotiation. The CEO warned that should mechanization fail to drive costs toward $1,000 per ounce, the operation may not remain viable. The company also noted an epidemic of crime tied to mining activities in South Africa, losing three employees to criminal incidents during the period. Century Zinc production declined 13% to 45,000 tonnes as that asset approaches end of life. Shares traded at a forward price-to-earnings ratio of 3.44, suggesting the market assigns limited durability to the current earnings level.
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