JPMorgan cuts Sibanye-Stillwater stake from over $215 million to $157 million

Key Points

• JP Morgan cut its stake in Sibanye-Stillwater from 6.32% to 5.04%, reducing its investment from $215 million to $157 million.
• Sibanye-Stillwater posted a $70.4 million profit in H2 2024 after a $311.1 million loss, aided by cost-cutting and stronger gold prices.
• CEO Neal Froneman plans to step down in September 2025, leaving behind a mining giant undergoing restructuring and investor scrutiny.

JP Morgan Chase & Co., the American multinational finance giant, has reduced its stake in Sibanye-Stillwater, a mining group led by South African magnate Neal Froneman. Once holding over $215 million in the company, JP Morgan has scaled back its investment to $157 million, adjusting its position in response to changing market conditions.

The bank’s shareholding, which stood at 6.32 percent last year, has now dropped to 5.04 percent, according to the latest regulatory filings on the Johannesburg Stock Exchange. This move signals a reassessment of its exposure to the $3-billion mining group amid evolving economic dynamics in South Africa.

A gradual pullback in investment

On May 10, 2024, JP Morgan held a 6.32 percent stake in Sibanye-Stillwater, valued at R3.98 billion ($215.4 million). By Sept. 18, 2024, this had already declined to 6.17 percent, worth R3.18 billion ($174.97 million).

The most recent filing, dated Mar. 19, 2025, shows a further reduction to 5.04 percent, bringing its stake down to R2.84 billion ($156.27 million). This shift aligns with broader investment adjustments by the bank, as it continues to fine-tune its portfolio in response to global and sector-specific trends.

Sibanye-Stillwater’s financial struggles and recovery

JP Morgan’s decision comes as Sibanye-Stillwater grapples with financial challenges. The mining giant, a major producer of platinum, palladium, and gold, reported a $311.1 million loss in the second half of 2023 due to inefficiencies and falling commodity prices.

However, a turnaround began taking shape in H2 2024. Cost-cutting measures, restructuring efforts, and stronger gold prices helped the company post a $70.4 million profit, signaling early signs of recovery.

Despite these gains, weaknesses persist in its South African platinum group metals (PGM) operations. Adjusted EBITDA for its PGM segment fell 55 percent to R2.6 billion ($152 million), impacted by lower PGM prices and rising operational costs.

Production increased by 4 percent, partly driven by the acquisition of Anglo American Platinum’s 50 percent stake in Kroondal. However, setbacks at the Rustenburg mine and labor unrest have dampened overall performance.

What this means for Sibanye-Stillwater and the mining industry

Neal Froneman, a key architect of Sibanye-Stillwater’s expansion, holds a 0.3 percent stake in the company. As he prepares to step down as CEO and executive director on Sept. 30, 2025, his restructuring efforts remain crucial in positioning the company for long-term stability.

JP Morgan’s reduced stake may raise concerns among investors, but it does not indicate a full exit. The bank still holds a significant position in the company, and its decision likely reflects a strategic portfolio adjustment rather than a loss of confidence.

For Sibanye, maintaining investor trust and executing its recovery plan will be critical. As the company navigates financial and operational hurdles, its ability to reinforce stability and sustain growth will shape its future—and influence South Africa’s broader mining industry.