Sibanye shares surge on record quarterly operating profitability

JOHANNESBURG – Sibanye-Stillwater shares surged more than 5percent on the JSE yesterday after reporting record quarterly operating profitability during the March 2020 quarter as gold continued to glitter, brushing off the impact of weaker platinum group metal (PGM) prices.

The group said its balance sheet was in good shape after earnings before interest, taxes, depreciation and amortisation (Ebitda) rose to R11.13billion from R10.32bn a year earlier. Gearing was reduced, resulting in net debt to adjusted Ebitda falling to 0.75 times from 1.25 times in December.

The group, whose South African PGM and gold mine production has been reduced to 50percent capacity in response to the government’s Coronavirus lockdown regulations, slashed capital expenditure by R900million to R2.2bn.

Domestic gold operations capital expenditure for 2020 was revised downwards by R840m to R2.5bn.

Sibanye-Stillwater’s local gold mines recorded a R2.7bn turnaround during the period as production stabilised on the price rally.