Sibanye-Stillwater Reports Strong First-Half 2025 Results with Profitability Boost from S45X Credits
Sibanye-Stillwater Delivers R15.1bn EBITDA and Turns Corner with S45X Credits Amid Strong PGM and Gold Prices
Sibanye-Stillwater has posted significantly improved results for the six months ended June 30, 2025, with all operations—except South African gold—remaining on track to meet production and cost guidance for the full year.
The group highlighted stronger profitability, effective restructuring, and the impact of US Inflation Reduction Act (IRA) credits as key drivers of performance.
The company reduced its basic loss to R3.6 billion, a R3.7 billion improvement year-on-year, while delivering headline earnings of R5.4 billion—19 times higher than the first half of 2024.
The difference between the two measures was primarily due to R9.7 billion in impairments.
Outgoing CEO Neal Froneman reported that adjusted EBITDA rose 127% to R15.1 billion, inclusive of Section 45X (S45X) credits.
Excluding these credits, EBITDA was still robust at R10 billion, 51% higher than the same period last year.
The group credited its operational stability, disciplined cost management, and leverage to higher commodity prices for the improved performance.
South African gold operations fell short of production and cost targets but benefited from higher rand gold prices, making a stronger financial contribution.
South African PGM operations delivered R4.8 billion in adjusted EBITDA, broadly flat year-on-year, despite a 16% drop in production (151,863 oz 4E metals).
A 7% higher average basket price offset lower volumes, while inventory built up in H1 is expected to be processed and sold in H2.
In the US, restructuring of PGM operations in late 2024 has started to pay off, with production and costs ahead of guidance.
Although metal sales were lower due to a smelter transition, profitability improved. Excluding S45X credits, adjusted EBITDA losses narrowed to $9 million (R51 million), compared to a $16 million (R324 million) loss a year earlier.
Boost from S45X Credits
A key contributor to the results was the recognition of R5.1 billion in S45X credits, tied to clean energy provisions under the IRA.
These credits, relating to 2023, 2024, and the first half of 2025, were booked against the cost of sales in US PGM mining and recycling operations. Cash payments are expected in 2026.
For the second quarter, Sibanye-Stillwater also finalized agreements with its contract refiner, unlocking $159 million (R2.8 billion) in credits for its US PGM underground operations. This included $20 million (R360 million) attributable to H1 2025.
As a result, adjusted EBITDA for US PGM operations surged 457% to $151 million (R2.8 billion) compared with the first half of 2024.
The group noted that higher PGM and gold prices in the third quarter are already improving margins. The average 2E PGM basket price of $1,229/oz so far in Q3 is 25% above H1 levels, narrowing the gap with all-in-sustaining costs.
“Improved operational profitability and cash flow, together with effective balance sheet management, have strengthened our financial position.
We are confident Sibanye-Stillwater is well positioned to thrive under multiple scenarios and continue creating long-term value for stakeholders,” the company stated.
