Sibanye-Stillwater has said the integration of its newly acquired Australian assets from New Century are progressing well.
Sibanye officially acquired New Century Resources in May after first making an offer in February. Prior to the transaction, Sibanye already owned a majority 19.9 per cent stake in the company.
Sibanye said the acquisition has boosted its exposure to tailings retreatment.
“Production from the Century operation recovered strongly from the flood impact (during) H1 2023 (first half of 2023),” the company said in its September 2023 (Q3) quarter report.
“For Q3 2023, the Century operation produced 25,000 tonnes of payable zinc metal, an increase from the 23,000 tonnes produced in Q2 2023.
“AISC (all-in sustaining cost) for Q3 2023 of $US1753/tonne ($2729) was 13 per cent lower than for Q2 2023, resulting in a significant financial turnaround, with the Century operation recording a $US3 million ($4.6 million) adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) profit compared with a $US23 million ($36 million) loss for the previous quarter.
“The Century operation invested $US2 million ($3.1 million) on capital expenditure in Q3 2023.”
Sibanye-Stillwater chief executive officer Neal Froneman reacted to the news.
“As guided, the operational performances of … the Century zinc retreatment operation in Australia for Q3 2023 improved, with operations recovering from disruptions which impacted H1 2023,” he said.
“This improved operational performance resulted in the Century operation contributing positively to Group adjusted EBITDA for Q3 2023, a significant turnaround from adjusted EBITDA losses from Q2 2023.”
Sibanye is gearing up to expand its Australian footprint further by acquiring the Mount Lyell copper mine in Tasmania.
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