Sibanye suffers $311 million loss under Neal Froneman

Key Points

• Sibanye cut its 2024 loss to $311 million, down from $2.03 billion in 2023, amid gold price recovery and operational restructuring under Neal Froneman.
• Despite weak PGM and nickel markets, gold, and zinc segments outperformed, helping offset losses and stabilize core operations ahead of Froneman’s retirement.
• Strategic actions included halting key projects, slashing U.S. PGM spending by 60 percent, and integrating Reldan to boost performance and reduce overall losses.

South African mining giant Sibanye-Stillwater, under the leadership of the outgoing CEO Neal Froneman, has narrowed its losses in a challenging year, reporting a reduced $311 million (R5.7 billion) loss for 2024. The improvement marks a significant recovery from the prior year’s $2.03 billion loss, driven by asset impairments and collapsing commodity prices.

A year ago, the diversified miner struggled with operational inefficiencies and a steep decline in PGM and nickel prices. However, a rebound in gold prices and aggressive restructuring in early 2024 helped stem the decline. The latest results reflect the ongoing volatility in global metals markets but also highlight Sibanye’s progress in stabilizing its operations ahead of Froneman’s retirement.

Sibanye trims losses as Froneman exits leadership

In the latest fiscal year, revenue dipped slightly by 1 percent to R112.13 billion ($6.12 billion), largely due to weaker PGM prices and lower sales volumes in US recycling operations. However, this decline was partially offset by stronger performance in gold and zinc segments alongside the integration of the Reldan operation.

Adjusted EBITDA fell 36 percent to R13.1 billion ($700 million), under pressure from weak PGM markets and a structural nickel slump. The US PGM operations were hit hardest, with EBITDA plunging 116 percent to R100 million ($9 million) amid persistent 2E PGM price softness.

France’s Sandouville nickel refinery also struggled, though efficiency gains and higher output helped narrow losses. In contrast, South African gold operations offset some of the decline, posting a 66 percent EBITDA increase driven by record gold prices.

In response, Sibanye moved decisively—halting the Burnstone project, restructuring regional services in South Africa, cutting US PGM investment by nearly 60 percent as growth plans were deferred, and scaling back capital spend. As CEO Neal Froneman prepares to retire in September after over a decade at the helm, these results close a tenure defined by resilience, bold strategy, and navigating deep market cycles.

Strengthening Sibanye-Stillwater’s global position

Beyond South Africa, Sibanye-Stillwater continues to expand its global footprint with gold and base metal projects in the Americas. Froneman holds a 0.12 percent stake—equivalent to 3,284,428 shares—in the company.

However, total assets declined by 3.46 percent from R142.94 billion($7.7 billion) to R137.99 billion($7.36 billion) while accumulated losses climbed from R8.47 billion($1.3 billion) to R13.82 billion($1.6 billion). Despite the broader downturn, select assets outperformed.

The Century zinc retreatment project delivered a 325 percent surge in EBITDA, supported by higher zinc prices and favorable treatment charges. Meanwhile, the newly acquired Reldan operation contributed R300 million ($15 million) since joining the portfolio in March 2024.