Sibanye-Stillwater posts record full-year profit; South Africa unions support strike

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Sibanye-Stillwater (NYSE:SBSW) reports a record full-year profit of 33.1B South African rand ($2.23B) for FY 2021, up from 29.3B rand ($1.77B) in 2020, while adjusted EBITDA jumped to 68.6B rand ($4.64B) from 49.4B rand ($3B) a year earlier.

Sibanye says it achieved FY 2021 production guidance in all operating segments on the back of robust commodity prices, led by South African 4E PGM production of nearly 1.84M oz, which was above the upper end of the guided range, and South African gold output of 892.1K oz.

The company declared a final dividend of 1.87 rand/share, or 48.68 U.S. cents/ADS.

For FY 2022, Sibanye forecasts platinum group production of 1.76M-1.85M oz for its South African operations and 550K-580K oz in the U.S.; Southern African gold production is expected at 813K-873K oz.

Separately, members of South Africa's NUM and UASA unions voted 62% in favor of a strike at Sibanye's gold mines, after wage talks reached a stalemate; earlier this week, South Africa's Solidarity union said it accepted Sibanye's final wage offer.

Comments

[Slade_01]

From the company web site, the next dividend will be about $0.48 after the withholding tax per ADR depending on the exchange rate at the time and will trade ex-dividend on March 24th.

www.sibanyestillwater.com/... Under FY21.

[charliezap]

@911Slade
The language on the website is not clear, but in fact, it's $0.48 before the 20% South African withholding tax, so it's $0.394 after (depending on exchange rate). The $0.096 is recoverable as a foreign tax credit in a US taxable account when you file your US tax return next year. But it is not recoverable if your SBSW ADR is held in an IRA.

[Slade_01]

@charliezap Thanks, I doubt that I will still have it by then, I bought it cheap and have been writing calls against it. Just prior to the Ukraine attack when it was around 17, I wrote 50 $20 Mar 18 calls that have a big chance of getting called with the big swings lately. The premiums I collected since my purchase on 12-1 have been quite a bit more than the dividend so I can't whine too much. And yeah its in a Roth.

[jmartucci]

@911Slade I also bought many shares in a Roth at around $4. A good decision to balance out the bad ones.
Jim

[MS51]

Here we go again, talk of a strike.

[Andy D.]

@MS51
SA telling partial truth, some YES some NO for a strike.
Multiple unions involved. Unresolved at this point.

[charliezap]

@MS51
Well, AMCU and NUM announced they would strike, starting Wednesday.

www.businesslive.co.za/...

[Andy D.]

@charliezap
What % of the work force do these 2 unions represent, any idea?

[TastyLaksa]

Its down today though. Why?

[FirstFIREWealth_P01135809]

I really really really really really really really... love this stock

[JackCr]

@FirstFIREWealth Do you know the dividend per ADR?
Seems to be some disagreement about this.....

[brenk83]

@JackCr
48.68 c per ADR

Go SBSW site and look for earnings presentation page 59. Last page.

[petey pete]

Let's gooooo!

[L.Stoney]

The gift that keeps on giving