Sibanye-Stillwater has reaffirmed the central role of its South African operations as the group’s main earnings engine, despite a challenging global backdrop marked by geopolitical tension and slowing economic growth.
In its South Africa operations capital markets day presentation, the company said its local portfolio continues to anchor value creation, with both its platinum group metals (PGM) and gold businesses expected to deliver returns for decades.
South African PGM assets world class
The group described its South African PGM assets as a world-class, long-life portfolio that will remain a key contributor to earnings.
These operations, it said, are well positioned to generate sustained value even as prices stabilise following a period of strong gains driven largely by market speculation.
At the same time, Sibanye-Stillwater’s gold division continues to play an important role, even as it undergoes a strategic shift.
The company is transforming its gold operations into a shallower, higher-margin business, aimed at improving profitability and reducing exposure to the risks associated with deep-level mining.
Its three legacy gold assets, including Driefontein, Kloof and Beatrix, have been central to the group’s growth since 2013, producing 12.2 million ounces and generating R19.5-billion in earnings over that period.
These mines still hold 3.3 million ounces in reserves, underlining their ongoing value. The transition is being supported by projects such as DRDGOLD and Burnstone, which are expected to reposition the portfolio towards more efficient and sustainable operations.
“SA gold operations mainly comprised deep-level underground mining to date. Legacy underground assets face natural depletion, with the current life of mine, excluding Burnstone, ranging from one to 11 years across underground operations,” reads the presentation.
Uncertain external market conditions
Sibanye-Stillwater said it will continue to focus on maximising return on capital employed by investing in its South African portfolio, aligning this with its broader purpose of delivering value to all stakeholders. However, the company cautioned that external market conditions remain uncertain.
Global economic forecasts have been revised downward, largely due to the impact of the Iran conflict and disruptions linked to the Strait of Hormuz.
These developments have placed pressure on key supply chains, affecting commodities such as oil, fertilisers and industrial metals, while also raising inflation risks.
Higher inflation is expected to weigh on consumer spending and industrial activity, particularly in sectors such as automotive manufacturing. As a result, global growth is now projected at around 2.5%, with the United States forecast to grow by 2.2% in 2026. China, while slowing, is seen as relatively resilient, while the Eurozone continues to show weak growth.
Gold prices sensitive to inflation
Gold prices, the company noted, remain highly sensitive to inflation trends and interest rate decisions. After reaching elevated levels earlier this year, prices have corrected, with global exchange-traded fund holdings declining since their February peak. Some central banks have also sold reserves amid dollar funding pressures, although Sibanye-Stillwater expects this to be temporary, with long-term demand likely to remain intact.
The medium-term outlook for gold will depend heavily on how inflation evolves and how central banks respond, as well as the stability of the Iran-US ceasefire and its broader economic consequences.
Meanwhile, PGM prices have begun to consolidate after a prolonged rally. Investment flows into platinum have turned negative in recent months, although strong demand from China has provided some support.
The company highlighted that exports of platinum to China sharply increased in early 2026, with some stockpiling ahead of new market developments.
- Sibanye-Stillwater has reaffirmed the central role of its South African operations as the group’s main earnings engine, despite a challenging global backdrop marked by geopolitical tension and slowing economic growth.
- In its South Africa operations capital markets day presentation, the company said its local portfolio continues to anchor value creation, with both its platinum group metals (PGM) and gold businesses expected to deliver returns for decades.
- South African PGM assets world class The group described its South African PGM assets as a world-class, long-life portfolio that will remain a key contributor to earnings.
- These operations, it said, are well positioned to generate sustained value even as prices stabilise following a period of strong gains driven largely by market speculation.
- At the same time, Sibanye-Stillwater’s gold division continues to play an important role, even as it undergoes a strategic shift.
In its
At the same time,
Its three legacy gold assets, including Driefontein, Kloof and Beatrix, have been central to the group’s growth since 2013, producing 12.2 million ounces and generating R19.5-billion in earnings over that period.
“SA gold operations mainly comprised deep-level underground mining to date. Legacy underground assets face natural depletion, with the current life of mine, excluding Burnstone, ranging from one to 11 years across underground operations,” reads the presentation.
Global economic forecasts have been revised downward, largely due to the impact of the Iran conflict and disruptions linked to the Strait of Hormuz.
Higher inflation is expected to weigh on consumer spending and industrial activity, particularly in sectors such as automotive manufacturing. As a result, global growth is now projected at around 2.5%, with the United States forecast to grow by 2.2% in 2026. China, while slowing, is seen as relatively resilient, while the Eurozone continues to show weak growth.
Gold prices, the company noted, remain highly sensitive to inflation trends and interest rate decisions. After reaching elevated levels earlier this year, prices have corrected, with global exchange-traded fund holdings declining since their February peak. Some central banks have also sold reserves amid dollar funding pressures, although
Meanwhile, PGM prices have begun to consolidate after a prolonged rally. Investment flows into platinum have turned negative in recent months, although strong demand from China has provided some support.
