Sibanye takes R47.5 billion impairment after platinum prices slump

Sibanye Stillwater expects to report a loss for last year after slumping platinum-group metals prices and operational problems across its businesses forced it to take impairments of R47.5 billion ($2.5 billion).

The announcement is another blow for South Africa’s embattled mining industry after Anglo American Platinum said earlier this week that it was proposing a restructuring that may affect 3,700 jobs.

Sibanye last year said it was consulting with labor unions over operating changes that could impact about 7,000 jobs at its platinum and gold mines.

“We have already taken proactive steps to address loss-making production at unprofitable operations, and the group remains focused on ensuring the sustainability of our business and delivering on our strategical essentials through this period of low commodity prices,” Sibanye said in a statement on Wednesday.

Sibanye said it expects to report a loss per share for 2023 of R12.68 to R14.01 compared with a profit of R6.51 the previous year. Some of its impairments relate to its losses in the US and at the Sandouville nickel refinery.