Sibanye Stillwater: Diversified miner Sibanye Stillwater (SSWJ.J) announced on Wednesday that it would trim 287 positions at its U.S. platinum group metals (PGM) operations, citing the need to reduce costs in the face of declining metal prices. PGM prices, primarily utilized by automakers for emission control, have seen a significant decrease over the past year due to concerns about global economic growth.
Palladium prices, in particular, have plummeted nearly 40% this year, with weak demand in China playing a substantial role, while platinum prices have declined by 14%. Last year, the Johannesburg-based miner had initiated the restructuring of its U.S. operations, dominated by palladium, in anticipation of a fall in palladium prices and the impact of inflation on costs.
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The restructuring move will impact around 100 Sibanye-Stillwater employees and 187 contractors, according to the company’s statement. CEO Neal Froneman emphasized the necessity of decisive action to address costs amid challenging market conditions. The restructuring is designed to ensure the sustainability of the U.S. PGM operations during a period of lower-than-anticipated PGM prices. Despite the expected reduction in costs and capital, the company asserted that the restructuring would not significantly impact current mine production or recycling operations.
This announcement comes on the heels of Sibanye’s recent plans to restructure its South African PGM operations, targeting four unprofitable shafts, potentially resulting in the loss of 4,095 jobs. Sibanye’s competitor, Impala Platinum (IMPJ.J), has also initiated voluntary job cut offerings to workers in South Africa as part of cost-cutting measures amid the PGM price downturn.
Our Reader’s Queries
Who owns Sibanye?
Sibanye Stillwater Ltd has a diverse group of top 10 stockholders, each with a significant stake in the company. Lingotto Investment Management LLC holds the largest stake at 3.10%, owning 21,967,407 shares. AQR Capital Management LLC follows with a 0.71% stake, owning 5,031,600 shares. Dimensional Fund Advisors LP and Invesco Advisers, Inc. also have notable stakes at 0.58% and 0.56%, respectively, owning 4,087,519 and 3,967,383 shares. Overall, these top 10 stockholders play a crucial role in the success of Sibanye Stillwater Ltd.
What country is Sibanye-Stillwater?
Sibanye-Stillwater is a publicly traded mining company that was founded in November 2012. Its headquarters are located in Johannesburg, South Africa, and it primarily serves the South African region.
Is Sibanye-Stillwater a good stock to buy?
It’s important to note that SBSW stock falls under the high-risk, high-reward category. Unfortunately, the equity value of the shares dropped by almost 50% last year. However, in the past month, Sibanye managed to return almost 22% to its stakeholders who were struggling.
What is mined at Stillwater Mine in Montana?
At the Stillwater mine, there are two main mining sections. The Western section has been running since 1986 and produces around 250-300koz 2E per year of platinum and palladium in concentrate. On the other hand, the Stillwater East section is currently in a buildup phase.