Sibanye Stillwater (SBSW) - 2021 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue increased by 35% from R127 billion in 2020 to R172 billion in 2021, driven by strong PGM prices [121] - EBITDA rose by 40% year-on-year to R69 billion [124] - Headline earnings for 2021 were approximately R37 billion compared to R29 billion in 2020, with headline earnings per share at 1.272 [130] Business Line Data and Key Metrics Changes - South African PGM operations produced over 940,000 ounces in the second half of the year, a 5% increase year-on-year, with a free cash flow of over R8.2 billion [92] - US PGM operations faced a decline, producing approximately 270,000 ounces, an 11% decrease compared to the previous year [100] - South African gold operations produced just over 550,000 ounces, a 4% decrease year-on-year, with unit costs increasing by 16% to R814,000 per kilogram [109][110] Market Data and Key Metrics Changes - The recycling PGM basket price increased from $2,200 per 3E ounce to about $3,500 per 3E ounce [123] - The average basket price for PGMs sold was just over R40,000 per 4E ounce, higher year-on-year [93] Company Strategy and Development Direction - The company is focused on building a green metals portfolio and achieving carbon neutrality by 2040 [23][19] - A strategic refresh was undertaken to adapt to challenges such as climate change, pandemics, and socio-economic inequalities [72][66] - The company aims to enhance its ESG credentials and build pandemic-resilient ecosystems [80][81] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 and its impact on safety and operations [5][6] - The company is optimistic about its ability to achieve carbon neutrality and has made significant progress in renewable energy projects [30][28] - Future production guidance for US PGM operations is between 550,000 and 580,000 ounces, while South African gold operations are forecasted to produce between 25 and 27 tons [114][117] Other Important Information - The company declared a total dividend of just under R14 billion for 2021, representing a 9.8% dividend yield [49] - The company has a robust balance sheet with a net cash position of R11.5 billion [51] Q&A Session Summary Question: What are the company's plans regarding carbon neutrality? - The company is committed to achieving carbon neutrality by 2040 and has outlined a detailed pathway to reach this goal [23][27] Question: How is the company addressing safety concerns? - Management highlighted the implementation of a comprehensive safety strategy and independent reviews to enhance safety measures [7][12] Question: What is the outlook for production in the coming year? - The company provided guidance for US PGM operations at 550,000 to 580,000 ounces and for South African gold operations at 25 to 27 tons [114][117]