Sibanye Stillwater (US:SBSW)2024-09-12 19:42Financial Data and Key Metrics Changes - The company increased its balance sheet strength and liquidity by more than ZAR25 billion or $1.4 billion [13] - The net debt to adjusted EBITDA ratio is currently at 1.43 times, which does not include the gold prepay [17] - The company reported a basic loss of ZAR7.5 billion, primarily due to a ZAR7.5 billion impairment of the US PGM operations [20] Business Line Data and Key Metrics Changes - The South African PGM operations produced just under 880,000 ounces, a 4% increase year-on-year [30] - The US PGM operations saw a 16% increase in mine PGM production to 238,139 2E ounces, the highest since H2 2021 [43] - Gold operational output declined by about 17% year-on-year to just over 10.7 tons [33] Market Data and Key Metrics Changes - The 4E and 2E basket prices were down 28% respectively, and the 3E basket price was down 53% for the US PGM recycling operation [24] - The average 2E PGM basket price declined 30% to $977 an ounce [44] - Despite short-term surpluses, lithium demand is expected to double by 2030 [11] Company Strategy and Development Direction - The company remains focused on strengthening its balance sheet while increasing liquidity [12] - A significant restructuring of operations has been undertaken to position the company for sustainability in the current price environment [29] - The company is committed to embedding ESG practices into its operations and has advanced its green metal strategy [18] Management's Comments on Operating Environment and Future Outlook - Management expects volatility in the short term but believes fundamentals will ultimately drive price appreciation [7] - The company anticipates a robust medium-term outlook for PGMs despite current price pressures [9] - The Keliber Lithium project is fully funded and on track for commissioning in H2 2025, aligning with expected lithium demand growth [38] Other Important Information - The company experienced a cyber-attack in July that impacted its global ICT systems, but operational impact was limited [27] - The restructuring in the US will result in a significant reduction in headcount, with nearly 40% of employees affected [45] - The company is exploring opportunities to leverage existing infrastructure for phosphate deposits [22] Q&A Session Summary Question: What is the outlook for PGM prices? - Management indicated that while there is volatility expected in the short term, they believe the fundamentals will lead to price appreciation as markets tighten [7] Question: How is the restructuring impacting operations? - The restructuring is aimed at reducing costs and improving efficiencies, with a focus on maintaining optionality for higher production in the future [45] Question: What are the expectations for the lithium market? - The company expects lithium demand to double by 2030, with a deficit anticipated starting in 2026/27, aligning with the Keliber project timeline [11][38]