Sibanye-Stillwater recently announced a significant change in its financial standing, choosing not to declare a final dividend following a shift to a net loss. Several factors contributed to this decision.
Financial Decline
The South African precious-metals miner experienced a notable shift in its finances, reporting a net loss of $2.03 billion in 2023 compared to a profit of $1.16 billion in the previous year. This change was primarily due to a non-cash impairment of $2.58 billion, reflecting the decline in platinum-metals prices and an uncertain market outlook. Additional challenges included declines in platinum-metals and nickel prices, as well as rising cost inflation.
Earnings and Operations
Earnings before interest, taxes, depreciation, and amortization dropped by 56% to $1.12 billion, with the majority of earnings stemming from its southern Africa platinum-metals operations. Despite these challenges, Sibanye-Stillwater remains one of the world’s leading platinum-metals miners.
Future Outlook
Despite the recent setbacks, Sibanye-Stillwater remains optimistic about the future demand for platinum group metals (PGMs). The company believes that the weakness in PGM prices is temporary and does not signify a fundamental shift in the market.
Revenue and Forecast
While revenue decreased by 27% to $6.17 billion due to lower prices for platinum-metals and nickel, it surpassed analysts’ expectations. The company managed to beat the consensus forecast of $5.97 billion based on a FactSet poll.
Response and Dividend Policy
In response to these developments, Sibanye-Stillwater opted not to declare a final dividend, aligning with its distribution policy.