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Sibanye Stillwater (NYSE:SBSW) -2.7% in Wednesday’s trading as CEO Neal Froneman said the miner likely will not pay a final dividend in 2023 amid weak spot metal prices.
Froneman’s comments followed a bearish report from RMB Morgan Stanley, which downgraded the company’s prospects and warned of a potential net cash outflow of ~6B South African rand.
The bank recommended investors stay away from Sibanye Stillwater, which recently acquired base metal assets that lost money in the six months ending in June.
The CEO said one of the lossmakers, Australia’s New Century Resources, is “stabilized and not a concern… It will continue to generate profits, even at low zinc price.”
But the Sandouville nickel refining business in France is still struggling, and Froneman said the company may place it on care and maintenance.
Sibanye Stillwater (SBSW) may be forced to close some loss-making shafts, Froneman told Reuters, adding job cuts in platinum mining had become inevitable due to declining precious metals prices.
The price of platinum touched its lowest level in a year on Wednesday before recovering to $875.86/oz, while palladium plunged to its lowest since November 2018 at $1,179.66/oz.
