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The 2025 headline earnings per share of Sibanye-Stillwater soared by 285% and earnings before interest, taxes, depreciation and amortisation (Ebitda) came within a hair's breadth of trebling with a 189% increase of just under R38-billion, the Johannesburg Stock Exchange-listed gold and platinum group metals (PGMs) mining company reported on Friday, February 20.

Despite the complex financial accounting matters, driven primarily by impairments, the Appian settlement, fair value losses, and higher share-based payment expenses, core operational financial performance reflected a significant turnaround. (Also watch attached Creamer Media video.)

Against that background, the board has declared a final cash dividend of R3.7-billion for the six months ended December 31, representing 35% of normalised earnings.

This represents an increase of 146% compared with the last dividend that Sibanye-Stillwater paid in 2023. Taxes and royalties, which have also increased in proportion to profitability, rose to R4.3-billion.

Without 2025's non-routine cash impacts, including gold price hedging put in place in December 2024, money available would have increased by R5.2-billion to some R14.6-billion.

Liquidity headroom is at a strong R40-billion, which is roughly five-and-a-half months of operating expenditure plus capital expenditure.

The next priority on the debt profile will be the upcoming renewal and downsizing of the 2026 R675-million bond, the target date for completion of which is the first half of this year, Sibanye-Stillwater CFO Charl Keyter spelt out during the very comprehensive 2025 results presentation, covered by Mining Weekly.

"If I could try and summarise our strategic refresh in one word, it would be simplification," said CEO Dr Richard Stewart, who reported that Sibanye-Stillwater ended 2025 in a position of strengthened financial and operational performance, with positive momentum continuing during 2026.

"Specifically, what we're really focusing on in the short term is maximising and driving operating margins. We're doing that through a keen focus on operational excellence and simplifying the operating model that we have, and then further simplification through our portfolio, such that we're focusing on the highest return cash generative assets, and ensuring an appropriate management focus in that regard.

"This is all coupled with a very disciplined capital allocation framework, which we shared as being roughly a third towards shareholder returns, a third towards reducing our gross debt, and a third towards growth.

"Our PGM operations and organic growth will be our immediate focus," Stewart emphasised.

South Africa PGM operations produced 1 797 928 four-element ounces of PGMs despite a 29% decline in surface production owing to heavy rainfall and the transition between tailings storage facilities.

All-in sustaining cost (AISC) rose 10% to R24 193/4E oz on higher PGM price-linked royalty payments and increased sustaining capital. Higher second-half PGM prices drove a 125% Ebitda increase to R16.7-billion.

The US PGM operations produced 284 069 two-element ounces at an AISC of 21 516 oz, well below plan.

There was a 114% Ebitda to R12.5-billion from the production of 632 341 oz of gold by South Africa gold operations.

The US recycling business contributed R4.1-billion Ebitda while Keliber lithium greenfield project in Finland absorbed €299-million capital.

The Century zinc operation in Australia recovered on improved production stability, zinc price support, and reduced treatment charges while the Sandouville nickel refinery in France received its last nickel matte. The site has been placed on care and maintenance.

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Anglo American group company Kumba Iron Ore is investing R11.2-billion worth of capital in its "exciting" waste-to-premium-product project that has a three-year payback.

Enabled by the modular build approach that has been adopted, 37% of Kumba's overall ultrahigh dense media separation (UHDMS) project has been completed, with 90% of the engineering work already done.

Slightly higher 2026 unit cost of between R530/t and R560/t is being guided to reflect lower production later in the year, when the main UHDMS tie-in is implemented, new Kumba CFO Xolani Mbambo reported during the Johannesburg Stock Exchange's full-year 2025 results presentation on Thursday, February 19.

The project, with excellent earnings before interest, taxes, depreciation and amortisation (Ebitda) credentials, turns material previously binned into saleable, premium-fetching product.

"The economics around the project speak for themselves. Ebitda margins above 50% and an internal rate of return of more than 30% means that payback from full production is just three years," Kumba CEO Mpumi Zikalala pointed out during the presentation covered by Mining Weekly.

"But for me, what matters most is the long-term benefit. UHDMS gives Sishen meaningful life extension and strategic flexibility for years to come, fundamentally delivering long-term, sustainable value for all our stakeholders," Zikalala added.

Previously, the UHDMS project was paused for engineering design uplift but as things stand now all major procurement has been completed with main tie-in scheduled for August.

During main tie-in execution, use will be made of stockpiled material to keep sales going and keep sales guidance intact.

Zikalala spoke of the UHDMS project remaining "one of the most exciting projects in our pipeline. The technology not only enables us to increase the volume of premium grade products; it also allows us to use low-grade material more effectively, cutting waste and improving our overall cost efficiencies, and we are reducing our cutoff grade from 48% to 40% and the economics around the project speak for themselves."

"Capex for this project will be phased in line with implementation sequence," Mbambo pointed out.

STRENGTH OF MINERAL ENDOWMENT

Right now, Kumba has 764-million tons of mineral resources, 471-million tons of which were already confirmed from the company's 2024 resource cycle.

"We've now added another 293-million tons, two-thirds at Sishen and a third at Kolomela, which really shows that our exploration programme is doing exactly what it's meant to do," said Zikalala.

"We're not slowing down. Our exploration teams are actively expanding our understanding of the orebody and building options for the future.

"As I've said before, the Northern Cape province is a very interesting province when it comes to iron-ore. At the same time, our mine planning engineers are enhancing pit designs to optimise the extraction of the orebody.

"Our ore reserves now stand at around 802-million tons, and since 2022, we've added 175-million tons before depletion.

"That's a big step forward and speaks to the long-term resilience of our business. We've just added another year to both Sishen and Kolomela, taking their life of mine to 2041.

"Our ambition is to, however, increase life-of-mine, and we are working towards a value accretive pathway to improve or increase or extend Kumba life-of-mine," said Zikalala.

In addition to the UHDMS project at Sishen, two important resource areas are being advanced at Kolomela, where they are making use of Kolomela's existing infrastructure, which will keep capital costs down and speed up future development timelines.

In 2026, Kumba expects total production of between 31-million tons and 33-million tons, reflecting the main UH...

Mining Weekly Editor Martin Creamer discuses Orion Minerals looking to longer-term exploration potential in the Northern Cape; platinum’s innovative new scent detection role; and mining’s standout 2025 performance being in “other metallic minerals”.

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Glencore's positive experience with the South African government, Nagle remarked, extended well beyond the ferrochrome discussions, which are themselves showing all the signs of enabling competitiveness.

"My experience with the South African government has been positive across the board. We have challenges, not only in ferrochrome. We have challenges with Astron. We have challenges in the coal business," Nagle said response to journalist questions.

"They're receptive, they're open, they understand, they're smart, they're supportive. If they can't solve the problem, it gets moved to someone who can solve the problem. I really enjoy the interactions and they're certainly far more constructive and better than some other countries that we operate in," said Nagle, who spoke of Glencore continuing to be "very pro" South Africa.

"We believe South Africa's a great country to invest in" and if the right opportunity arise, Glencore will invest more.

Lion Smelter in Steelpoort, Limpopo, achieved its first ferrochrome production tap on February 16, following the successful recommissioning of 50% of its operating capacity. That follows the approval by the National Energy Regulator of South Africa of a 12-month interim electricity tariff of 87.74c per kWh.

The Glencore-Merafe Chrome Venture anticipates that Lion will return to full operational capacity by March 31.

While the interim 87.74c per kWh tariff enables Lion to return to full operational capacity in the short term, it remains insufficient to support sustainable operations over the long term.

The same position applies to Boshoek or Wonderkop smelters. All three smelter operations would require a tariff of 62c per kWh to operate on a commercially sustainable and viable basis over the long term.

Engagement with all relevant stakeholders is under way while initiatives designed to compete with a very challenging global market environment are implemented to protect jobs, support local economies and secure the future of South Africa's ferroalloys industry.

In response to a question on whether that would level the playing field with competitors, Fullard said: "It will definitely put us back into the ring, so that means that we'll definitely then have a fighting chance.

"But is that going to be enough? We will definitely have to do additional work we are not going. To think outside the box, do investments in technology. We're also looking at our own business, making sure that we're not only competitive from an electrical perspective, but also sharpening our pencil," said Fullard while pointing out that it is

not only the government that must provide help on the electricity side, but that "we, as a company, must also look at ourselves.

"So, definitely yes, that will bring us into a fighting ring, but that's only the start," Fullard reiterated.

GOOD 2025 PERFORMANCE

Meanwhile, In Wednesday's preliminary results report, Nagle hailed 2025 as a year of significant progress, marked by a strong operational performance, continued portfolio optimisation and clear momentum for the London- and Johannesburg-listed company's copper-led growth strategy.

Glencore is targeting 1.6-million tonnes of copper annual production by 2035, supported by capital-efficient copper growth options.

Wednesday also saw the announcement of the finalisation of a land access package in the Democratic Republic of Congo that is destined to add 300 000 t of copper production a year.

Also, for the second consecutive year, Glencore met full-year production guidance for key commodities.

"Glencore's standalone investment case is strong. Our regularly updated, illustrative annualised free cash flow generation at spot commodity prices, is currently a very healthy $7-billion.

"We have a well-diversifi...

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Following Orion's selection from the very high number of 780 Xplor programme applicants, Lennox spoke of "launching off into 2026 with a renewed vigour around exploration".

"It's a very pleasing outcome," added Lennox about Orion making it through to the final 11 BHP Xplor parties.

Moreover, in the week before last, the Johannesburg – and Sydney-listed Orion also reached a binding agreement with Glencore.

"We've had a very good start to the year, particularly with these two prime announcements. As the market knows, we've been working hard to get the Glencore prepayment agreement in place, and we've done that. There are a few conditions precedent that we're working through, but we're confident we'll have those largely concluded by the end of March," said Lennox, a former leading light of Palabora Mining Company, which operates a copper smelter and copper refinery complex in South Africa's Limpopo province.

Lennox: Correct, I did, and the market announcement Monday last week details the facts and figures of the Glencore agreement, but we had a delay during the course of last year in reaching that agreement, and I'm sure the market understands that there was a lot of discussion in the market about Glencore late last year, even this year, and so we've had to defer that by three months. In our announcement, we said that previously we were looking at Christmas this year, but now we've said we'll be producing concentrate at the end of the first quarter of 2027.

Is this trading agreement largely on Glencore taking bulks, copper and zinc concentrates from Prieska into the market?

It is. We start with the bulk concentrate out of the Uppers, then we move into the copper and zinc concentrate for the Deeps. The Uppers is a smaller, getting-match-fit-ready part of the operations. The real prize is the Deeps. We have a very clear line of sight into the Uppers and into the Deeps and, pleasingly, Glencore will be marketing our concentrate off into the future.

When I chatted to BHP Xplor, they really loved everything about Orion and they said what's very interesting is the possibility of deep copper-centric metal systems emerging in South Africa's Northern Cape.

Yes, that's the simple detail around BHP Xplor. South Africa has, to my knowledge, been explored extensively. The issue with the Northern Cape is undercover exploration, the Kalahari and those type of deposits. Pleasingly, Orion's deposits are at surface. They are not undercover and the large amount of data we have on the Northern Cape, and in particular, our thinking, our IP, around what that region looks like, is, to my mind, what attracted BHP Xplor. They think it's a very prospective region, and Orion showed them a very clear, well-thought-out, professional understanding about how to explore in the Northern Cape.

You've executed the binding prepayment agreement with a wholly owned subsidiary of Glencore for a $250-million prepayment facility, and it's linked to all these sales of concentrates. What subsidiary is this and give us a little bit more insight into that.

A lot of it is in confidence, but we now have a relationship with Glencore that provides us with substantial funding, US$250-million, and that comes in two tranches. There's an initial tranche of US$40-million, which allows us to start execution of the Uppers. The second tranche, which is US$210-million, comes in two segments. There's an earlier US$50-million that allows us to address long-lead items for the Deeps and there's a subsequent US$160-million that comes a little later, when we're in the main activities of executing the Deeps and bringing it into production.

So, that's the prepayment, and it is a prepayment. We have to repay that over time, but it's linked also to the offtake ag...