Sibanye-Stillwater H1 profits slow to R12.3bn on production disruptions

Sibanye-Stillwater, the South African mining company, has faced a challenging year marked by various disruptions that have impacted its operations, both internally and externally. The company's gold and platinum group metals (PGM) production have been significantly affected, with a 63% reduction in gold production and a 23% reduction in PGM production. Despite these challenges, Neal Froneman, the Chief Executive Officer of Sibanye-Stillwater, remains optimistic and acknowledges the areas where the company has underperformed. Froneman highlighted the impact of industrial action and major weather events on the company's performance, emphasizing the need for proactive resolution of such issues. While the market may have been critical of Sibanye-Stillwater's performance, Froneman is keenly aware of the company's strengths and weaknesses. The CEO also discussed the importance of maintaining good labor relations at both the ground and national level. While acknowledging the challenges at the national level due to political agendas, Froneman expressed confidence in the company's ability to navigate labor issues and achieve sustainable agreements. Looking ahead, Froneman shared insights into Sibanye-Stillwater's future strategy, particularly focusing on acquisitions and expansion plans. He addressed the Brazil matter, indicating that while it may impact the company's operations, Sibanye-Stillwater remains confident in its position. Froneman also clarified the company's commitment to remaining a South African champion despite its global expansion plans. He highlighted the focus on 'green metals,' including PGMs, battery metals, uranium, and copper, as part of the company's growth strategy. Froneman outlined a vision for the company's future earnings, with a diversified portfolio comprising a third each from PGMs, battery metals, and gold. Additionally, he discussed the significance of gold as a safe haven asset amidst the current global economic uncertainty. In response to a question about the president's energy plan, Froneman praised the plan but highlighted the importance of effective implementation and short-term interventions to address energy challenges. Overall, Froneman's insights provide a comprehensive overview of Sibanye-Stillwater's performance, future plans, and strategic focus amid ongoing industry disruptions and economic complexities.