Sibanye Stillwater (SBSW) - 2025 Q2 - Quarterly Report

Financial Performance - Basic loss reduced to R3.6 billion (US$194 million), while headline earnings increased to R5.4 billion (US$292 million), a 19-fold increase compared to H1 2024 [4]. - Group adjusted EBITDA rose to R15.1 billion (US$818 million), representing a 127% year-on-year increase [4]. - Adjusted EBITDA for SA gold operations increased by 118% to R4.8 billion (US$260 million), despite a 13% decrease in production [4]. - Adjusted EBITDA from SA PGM operations for H1 2025 was R4.8 billion (US$260 million), consistent with H1 2024, despite a 16% decrease in 4E PGM sold year-on-year [20]. - Adjusted EBITDA for the US PGM operations increased substantially to US$151 million (R2.8 billion) for H1 2025, a 457% increase compared to H1 2024 [27]. - Group adjusted EBITDA (excluding all S45X credits) increased by 51% to R10.0 billion (US$533 million) for H1 2025 from R6.6 billion (US$355 million) for H1 2024 [50]. - Adjusted EBITDA including S45X credits for H1 2025 was US$129 million (R2.4 billion), 16 times higher than US$8 million (R147 million) for H1 2024 [96]. - The loss for H1 2025 decreased by 44% to R3,906 million, primarily due to lower net cost of sales and recognition of S45X advanced manufacturing production credits [129]. - Profit before royalties, carbon tax, and tax for the six months ended 30 June 2025 was R1,915 million (approximately US$97 million), while for the six months ended 30 June 2024, it was a loss of R5,584 million (approximately US$297 million) [135][140]. Debt and Cash Flow - Net debt to adjusted EBITDA improved to 0.89x as of 30 June 2025, down from 1.79x at 31 December 2024 [4]. - The Group's free cash flow improved by R12.4 billion (US$610 million) to positive R4.5 billion (US$243 million) for H1 2025, compared to a free cash outflow of R6.9 billion (US$367 million) for H1 2024 [53]. - Group free cash flow (FCF) was significantly boosted by R9.2 billion (US$500 million) from the Franco Nevada streaming transaction, with a potential FCF outflow of R4.7 billion (US$258 million) without this transaction [54]. - The Group's cash balance increased by 31% to R21.0 billion (US$1.1 billion) as of June 30, 2025, primarily due to streaming proceeds, while gross debt rose by 2% to R40.2 billion (US$2.3 billion) [55]. - Net debt decreased by R4.2 billion (US$169 million) to R19.2 billion (US$1.1 billion), resulting in a net debt to adjusted EBITDA ratio of 0.89x, supported by a 64% increase in trailing adjusted EBITDA to R21.5 billion (US$1.2 billion) [56]. - The Group realized net cash from operating activities of R13,177 million for H1 2025, a significant increase from R3,697 million in H1 2024 [145]. - Adjusted free cash flow for H1 2025 was R4,473 million, compared to negative R6,875 million in H1 2024, primarily driven by cash proceeds from the Franco-Nevada streaming transaction [147]. Production and Operations - South African PGM operations maintained steady production and good cost management, ensuring ongoing profitability [4]. - US PGM operations benefited from US$159 million (R2.8 billion) in total S45X credits, contributing to improved profitability post-restructuring [4]. - The Century zinc retreatment operations achieved adjusted EBITDA of US$36 million (R657 million) for H1 2025, a turnaround from an adjusted EBITDA loss of US$19 million (R351 million) in H1 2024 [38]. - Gold production from managed SA gold operations decreased by 14% to 7,072 kg (227,370 oz) for H1 2025, primarily due to challenges at the Kloof operation [105]. - Total PGM production for the six months ended June 2025 was 750,150 4Eoz, with a significant increase from 751,064 4Eoz in June 2024, representing a year-over-year growth of approximately 0.15% [158]. - The average rand 4E basket price for Q3 2025 to date is R31,328/4Eoz, which is 16% higher than for H1 2025, indicating potential for increased earnings in H2 2025 [21]. - The average gold price received by SA managed operations for H1 2025 increased by 33% to R1,756,996/kg (US$2,972/oz), significantly enhancing operational profitability [32]. Safety and Environmental Performance - Total Recordable Injury Frequency Rate (TRIFR) improved to 3.90 per million hours worked, a 12% reduction from H1 2024 [12]. - Serious Injury Frequency Rate (SIFR) and TRIFR have shown favorable declines of 14% and 16% respectively over the past 3.5 years [12]. - The Group's safety indicators improved, with the lost time injury frequency rate (LTIFR) decreasing by 11% from 3.99 to 3.57 per million hours worked in H1 2025 [83]. Capital Expenditure and Projects - The Keliber lithium project is nearing completion, with project capex expected to conclude in H1 2026 [4]. - The Marikana K4 shaft project is nearing completion, with capital expenditure expected to decline from R309 million (US$17 million) for H1 2025, contributing to increased revenue as production ramps up [61]. - Total capital expenditure for H1 2025 decreased by 52% year-on-year to US$45 million (R829 million), with sustaining capital down 68% to US$7 million (R121 million) [91]. - Capital expenditure for H1 2025 was €152 million (R3.1 billion), consistent with guidance of €300 million (R5.9 billion) for 2025 [116]. Impairments and Financial Instruments - Impairments recorded were R9,666 million, with R4,230 million related to US PGM operations [134]. - The total finance expense was R2,553 million, with R900 million attributed to US PGM operations [134]. - The company reported a loss on financial instruments for H1 2025 was R391 million, a net loss of R1,887 million compared to a gain of R1,496 million for H1 2024 [138]. - Impairments recognized at 30 June 2025 amounted to R9,666 million, including R5,344 million related to the Keliber lithium project and R3,828 million due to changes in US tax credits [139][144]. Revenue and Sales - Group revenue for H1 2025 decreased by 1% to R54,767 million, primarily due to lower sales volumes at most operations, except for the Century zinc retreatment and Reldan operations [125]. - Revenue from industrial and electronic waste recycling activities was 4,789 million SA rand, reflecting a significant increase from 2,266 million SA rand in June 2024 [179]. - Gold mining activities generated 12,414 million SA rand, while PGM mining activities contributed 26,781 million SA rand for the same period [174].