Precious metals producer Sibanye-Stillwater (JSE: SSW)(NYSE: SBSW) a 47.5 billion rand ($2.58 billion) impairment on its upcoming 2023 results due to falling prices for the main metals it mines, including palladium, platinum and nickel.
The company said it expects to report in March a loss per share for 2023 of 12.68 rand to 14.01 rand, compared with a profit of 6.51 rand a share the previous year.聽This is equivalent to an eye-popping 91% drop in annual profit.
The announcement comes only two months after the South African miner announced it would lay off 1,500 workers from its gold mines. It also said at the time it had begun talks that could affect 4,000 more employees at its platinum group metals聽(PGMs)聽operations, including those in the United States.
鈥淲e have already taken proactive steps to address loss-making production at unprofitable operations and the group remains focused on ensuring the sustainability of our business and delivering on our strategical essentials through this period of low commodity prices,鈥� the company .
Sibanye shares fell more than 5% in afternoon trading in Johannesburg, closing at ZAC聽1,994. The stock has lost almost 48% of its value in the past year, mainly due to the prices decline of palladium and rhodium.
The sharp drop of PGMs prices decline has driven producers to apply severe cost-cutting measures.聽Anglo American Platinum said on Monday it would cut聽3,700 jobs聽at its South African operations, or 17% of the Anglo American unit鈥檚 workforce.聽
Impala Platinum Holdings has聽offered voluntary job cuts, including at its deep-level Rustenburg complex.
Despite the challenges, Sibanye noted that all its South African聽and Australian operations were profitable before the end of the fourth quarter of 2023.聽
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