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The final investment decision by Sibanye-Stillwater on the already well-infrastructured Burnstone gold project in South Africa's Mpumalanga province is being targeted for the first half of this year.

At the same time, the strong foundation being created by Sibanye-Stillwater on the platinum group metals (PGMs) front is enabling the Johannesburg Stock Exchange-listed precious metals company to capitalise on the considerably stronger PGM prices.

"With supported fundamentals, potential for additional earnings and cash flow improvements in 2026 is anticipated, allowing continued investing through the cycle in low-risk, low-capital intensity projects with quick paybacks, all supporting stable, high performing operations with optionality to extend our portfolio," is the comment that paints the overall picture amid advantage being taken of substantial project capital having already been expended at the 25-year life-of-mine Burnstone project, where underground infrastructure is in place and surface infrastructure is mostly done. All this has been taking place near the town of Balfour, about 80 km southeast of Johannesburg, in the Dipaleseng municipality.

"The plant's largely built," Sibanye-Stillwater CEO Richard Stewart reported in response to RMB Morgan Stanley research and equity head analyst Chris Nicholson's capital expenditure questioning at last week's comprehensive presentation covered by Mining Weekly.

The remaining capital required is predominantly to open up the orebody. "What we're really looking at is the cost of going from start up to steady state," Stewart explained.

Meanwhile the feasibility under way exemplifies Sibanye-Stillwater's one-million-reserve-ounce strategic shift to a higher-margin, shallower gold-mining focus that extends beyond Burnstone to Cooke surface gold, located about 35km south-west of Johannesburg near the town of Randfontein; Beatrix gold operations, near Welkom and Virginia in the Free State; and attributable surface gold from DRDGOLD, 50 km east of Johannesburg in Brakpan and 80 km west of Johannesburg in Carletonville.

On top of all that, Sibanye-Stillwater's many mature gold operations – also see attached infographic – are highly geared to gold prices and are already generating strong cash flows in the current highly supportive price environment.

"Looking forward, our core gold operations will continue to drive performance excellence, and we are excited about the prospects in our current portfolio," Sibanye-Stillwater COO South Africa Richard Cox enthused.

For 2026, the outlook is positive. Spot prices are up 9% year-to-date to over R2.5-million/kg and 20% above second half 2025 levels, all boding well for another successful year with potential earnings and cash flow growth.

How rising prices are opening up expanding margins was illustrated on a gearing and all-in sustaining cost margin chart, which showed the average gold price received climbing steadily against controlled all-in sustaining cost.

In addition, a free cash flow bar chart highlighted the magnitude of the rapid cash flow turnaround, moving from negative in 2024 to significantly positive in 2025.

However, total production, including DRDGOLD, was 10% down. Underground production fell by 8% on operational challenges at Kloof and surface production was down 16% – an impact mitigated by a 39% gold price boost

The all-in sustaining cost increased 15% to R1.4 million/kg, with 14% lower gold sold.

Persistent 2025 Kloof challenges included a shaft incident at Manyano 7 Shaft, aging ventilation pass infrastructure and ore-pass systems, logistics constraints, as well as seismic risk in high-grade isolated blocks of ground (IBGs).

The resulting 31%-lower year-on-year 2025 production to 3 374 kg prompted a r...

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.

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...