Table of Contents
Key Points
- Sibanye-Stillwater nears decision to revive its $281 million Burnstone gold project, paused in 2021 amid a downturn in platinum group metal prices.
- Strong gold prices and solid project fundamentals make Burnstone viable without new funding partners, according to CEO Neal Froneman.
- As Froneman plans to retire in 2025, Sibanye grapples with platinum losses despite a rebound in gold earnings and recent cost-cutting gains.
Sibanye-Stillwater, the mining group led by South African executive Neal Froneman, is preparing to restart its $281 million Burnstone gold project in South Africa. A final decision is just weeks away. “There’s no question, it’s a good project,” Froneman said, noting that the company had already invested R4 billion ($223.3 million) before pausing development in 2021.
Gold prices revive Burnstone mine plan
The decision to halt wasn’t about viability, he explained, but about managing cash during a downturn in platinum group metal prices. “We just had to slow the outflow, and Burnstone was something we could put on hold and return to later.”
Now, with gold prices showing strength, Froneman says there’s no funding obstacle. The project no longer needs a joint venture to move forward. “It’s shallow, the grade is solid, and it’s got a 20-year life. That makes a big difference to how people look at our risk profile,” he said. “At these gold prices, it should be very profitable because it’s not expensive to run.”
Froneman’s stake reflects long-term bet
Under Froneman’s leadership, Sibanye-Stillwater has shifted from a local gold miner into a global metals group, with operations in platinum, palladium, and beyond. The Public Investment Corporation, one of its major backers, appears to believe there’s still value to unlock, even as the company prepares for life after Froneman.
Froneman, who has been at the helm since the company’s creation in 2013, owns more than 3.2 million shares, roughly 0.12 percent of Sibanye-Stillwater. He expanded the company into platinum and palladium markets, building it into a major force in global mining.
Resilience marks final chapter ahead
But the road hasn’t been smooth. A tough commodity market and internal inefficiencies led to a R5.71 billion ($311 million) loss in the second half of 2023. With retirement planned for September 2025, Froneman is now focused on steadying the business before handing over the reins. He credits cost-cutting and restructuring for recent improvements.
Those efforts are starting to show. Revenue rose 7 percent to R56.93 billion ($3.2 billion), and earnings from the gold division jumped 216 percent to R3.6 billion ($206 million). But challenges persist. The company’s South African platinum operations remain under pressure, with earnings down 55 percent due to lower prices and rising costs.
While production rose 4 percent, helped by the acquisition of Anglo American Platinum’s stake in the Kroondal mine, disruptions at Rustenburg and strike action have weighed on results.
