Sibanye Stillwater Limited — FY2021 Form 20-F
Reporting period: Year ended 31 December 2021; filed 22 April 2022. This is an annual report, not a standalone Q4 filing. The supplied filing text does not provide clear standalone fourth-quarter financial results. Financial statements are prepared under IFRS in South African rand (R); amounts below are R millions unless stated otherwise.
Business context
Sibanye-Stillwater is a multinational miner and metals processor, with gold and platinum-group metal (PGM) mining, PGM recycling and tailings retreatment operations, and emerging battery-metals investments. Principal operations span South Africa, the United States and Zimbabwe. The group reported audited FY2021 statements; EY issued unqualified opinions on the financial statements and internal control over financial reporting.
Key financial and operating metrics
| Metric | FY2021 | FY2020 | Change / context |
|---|---|---|---|
| Revenue | 172,194 | 127,392 | +35% |
| Profit for the year | 33,796 | 30,622 | +10%; attributable to owners: R33,054m, up from R29,312m |
| Basic / diluted EPS | 1,140 / 1,129 cents | 1,074 / 1,055 cents | Headline EPS: 1,272 cents, versus 1,068 cents |
| Adjusted EBITDA | 68,606 | 49,385 | +39%; non-IFRS measure |
| Net cash from operations | 32,256 | 27,151 | +19% |
| Adjusted free cash flow | 37,448 | 19,916 | +88%; non-IFRS measure, before specified financing and dividend items |
| Cash and cash equivalents | 30,292 | 20,240 | At year-end |
| Borrowings, total | 20,298 | 18,383 | Includes R1,507m of non-recourse Burnstone debt |
| Recourse borrowings / net cash | 18,791 / 11,466 net cash | 17,119 / 3,087 net cash | Net cash excludes Burnstone cash and debt under the company’s definition |
| Current assets less current liabilities | 44,290 | 34,756 | Positive working capital |
| Capital expenditure | 12,740 | 9,616 | +32% |
| Total dividend per share | 479 cents | 371 cents | 35% of normalised earnings in both years |
Group adjusted EBITDA margin was not stated as a single figure in the cited summary tables. Segment margins were: South African PGMs 61% (2020: 53%), US PGMs 21% (29%), and South African gold 18% (28%). Cost of sales rose 31% to R109,306m; amortisation and depreciation rose 9% to R8,293m. The effective tax rate was 29%, compared with 14% in 2020.
Production included 1.90 million attributable 4E PGM ounces from South African PGM operations, 0.57 million 2E ounces from US underground operations, and 33,372 kg of gold from South African gold operations. South African PGM production increased 21%; US mined PGM output declined 5%; gold output increased 10%. US recycling production declined 10% to 755,148 3E ounces.
Material changes versus FY2020
- Revenue growth reflected higher PGM prices and increased sales volumes, particularly in South African PGMs and recycling. South African PGM revenue rose 55%; US underground PGM revenue fell 8% amid lower mined sales; recycling revenue rose 61%.
- Adjusted EBITDA increased 39%, led by a 78% increase in South African PGMs. US underground adjusted EBITDA fell 12%, and South African gold adjusted EBITDA fell 34% as a lower rand gold price and higher costs offset increased sales volumes.
- Profit growth was partly offset by a R5,148m impairment charge, principally at Kloof (R3,642m), Beatrix (R1,293m) and Driefontein (R212m). Management cited higher expected costs, ageing infrastructure, shorter mine lives and forecast assumptions including gold prices and exchange rates.
- Losses on financial instruments increased to R6,279m from R2,450m, mainly reflecting fair-value changes in deferred payments and B-BBEE-related obligations. This is distinct from operating cash performance.
- Cash generation was strong, but operating cash flow included a substantial increase in tax and royalty payments and R18,176m of dividends paid. Investing cash use increased to R14,568m; financing cash use was R8,344m, including an R8,503m share buyback.
Outlook, commentary and material risks
- Capital and projects: Management forecast approximately R16.6bn of FY2022 capital expenditure, including DRDGOLD. K4 and Klipfontein projects advanced, and Burnstone development resumed in 2021. Actual spending depends on production, commodity prices and economic conditions.
- Battery metals and transactions: The group invested in Keliber lithium, ioneer/Rhyolite Ridge and New Century tailings retreatment. Sandouville nickel facility acquisition closed on 4 February 2022 for approximately EUR85m. The proposed Brazil Santa Rita and Serrote acquisitions were terminated in January 2022 after a geotechnical event at Santa Rita; the company said it would defend its position if litigation were commenced. The Rhyolite Ridge JV remains subject to conditions and permits.
- Other post-year-end developments: In March 2022, a further EUR5m Keliber investment brought the reported holding to approximately 30%; the company was assessing the accounting implications. A January 2022 agreement would give Sibanye-Stillwater full ownership of Kroondal, subject to transaction terms and assessment. The 2022 US PGM operational review could materially affect Stillwater resource and reserve estimates.
- Labour and safety: The filing reports 18 fatalities at South African operations and two at US operations in 2021. Safety stoppages affected output. AMCU and NUM began protected strike action at South African gold operations on 9 March 2022; a final wage settlement was not reported in the supplied text.
- Market and operating exposure: Mined gold and PGMs are generally unhedged, leaving earnings exposed to commodity prices and the rand/US dollar exchange rate. Risks include inflation and input-cost increases, power constraints and tariffs, labour disruption, safety incidents, regulatory stoppages, supply-chain constraints and COVID-19.
- Environmental and legal matters: Environmental rehabilitation obligations, water and mine-closure requirements, potential acid mine drainage and tailings-facility risks may result in material costs. The filing describes a silicosis settlement provision of R1,017m. A post-reporting-date settlement of the Redpath arbitration was agreed at no cost to the company.
- Liquidity and debt: Management reported R15,749m of committed undrawn facilities, strong liquidity and no imminent refinancing requirement. Most immediate facility maturities were the US$600m revolving credit facility in April 2023 and the R5.5bn facility in November 2024. These assessments depend on cash generation, covenant compliance and access to funding.
Most important facts for investors to verify
- Reconcile the R11,466m net-cash measure with gross borrowings, cash balances and the company’s exclusions for Burnstone.
- Assess the sensitivity of gold operations and the R5,148m impairment to commodity prices, exchange rates, costs, production and mine-life assumptions.
- Track the South African gold strike outcome, safety performance and any resulting production or cost impacts.
- Verify 2022 capital-spending plans and the funding, permitting, economics and accounting treatment of battery-metals investments and acquisitions.
- Review tailings capacity, rehabilitation and water obligations, including the status of permits and any developments in the potential Brazil acquisition dispute.
Adjusted EBITDA, adjusted free cash flow, normalised earnings and other similarly labelled measures are non-IFRS and may not be comparable with other companies’ measures.