SOUTH African miner Sibanye-Stillwater has revealed that it will inject R300 million (US$16,44 million) in capital expenditure into Mimosa mine this year amid a significant loss recorded last year.
Mimosa made a loss of R97 million in 2024, which was an improvement from the loss of R1,9 billion in 2023.
“Sibanye-Stillwater expects to spend approximately R21,1 billion on capital in 2025, which includes the capital expenditure of DRDGOLD (R3,4 billion) and Mimosa (R0,3 billion),” Sibanye said in a statement attached to its recent 2024 annual report.
“The actual amount of capital expenditure will depend on a number of factors, such as production volumes, the commodity prices and general economic conditions and may differ from the amount forecast. Some of these factors are outside of the control of Sibanye-Stillwater.”
In 2024, Mimosa recorded revenue of R3,1 billion, a slight decrease from R3,21 billion realised in the previous year and R4,26 billion in 2022.
Coincidentally, 2022 was the last time Mimosa posted a profit after tax which came to R1,06 billion.
Sibanye also recorded a 5,3% decrease of Mimosa’s expected life of mine average recovered grade due to plant recoveries being affected by a change in the mineralogy of the ore, combined with inflationary increases in working costs.
These challenges resulted in a decrease in the expected future net cash flows from Mimosa and are what is behind the decline in revenue since 2022.
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“The lower value in use led to an after-tax equity account impairment of property, plant and equipment amounting to R1,384 million and the further impairment of the investment in the equity-accounted investee of R423 million,” Sibanye said.
The average platinum group of metals (PGM) basket price used on the Mimosa equity-accounted joint venture was R25 433 per ounce of 4E metals.
The company revealed that the repatriation of funds from Zimbabwe remains difficult.
Mimosa is a shallow, mechanised PGM and base metal mining operation located in the Wedza sub-chamber of the Great Dyke of Zimbabwe, some 32km west of Zvishavane, a major mining centre situated 340km south-west of Harare.
Mimosa is jointly held by South African platinum group of metals firm Implats and Sibanye through Mimosa Investments Limited, which owns and operates the Mimosa mine.
Sibanye’s stake was valued at R4,92 billion as of 2024.
Exchange rate as at December 31, 2024: US$1: R18,89.
