PGM miner Sibanye Stillwater, a leading precious metals mining company, announced on Monday that it expects to report a half-year loss due to a significant writedown on its US assets. The company attributed the loss to the declining price of palladium, a key metal used in vehicle exhaust systems to reduce emissions.<\/p>\n\n\n\n
The writedown, valued at R7.5 billion ($420 million), reflects the sharp decline in palladium prices, which have fallen 40% in 2023 and an additional 10% this year. The decrease in palladium prices has been driven by the growing adoption of electric vehicles (EVs), which reduces the demand for palladium and other Platinum Group Metals (PGMs).<\/p>\n\n\n\n
The company released a trading statement and production update for the six months to the end of June 2024 on Monday, giving investors a glimpse at the company\u2019s challenges. Sibanye said it expects to report a loss per share for H1 2024 of between 250.8 South African cents and 277.2 cents compared with earnings per share (EPS) in the same period last year of 262 cents. <\/p>\n\n\n\n
This is more than a 100% decline year-on-year and mainly reflects the R7.5 billion impairment taken at its US-based platinum operations. <\/p>\n\n\n\n
This impairment was taken due to lower medium- to long-term forecasted prices for palladium mined in the US, resulting in a decrease in expected future earnings. <\/p>\n\n\n\n
Industry-Wide Implications<\/strong><\/p>\n\n\n\n