Published: 09 May 2025

South African mining giant Sibanye-Stillwater has committed to injecting R300 million (US$16,44 million) in capital expenditure into Mimosa Mine in 2025, despite the Zimbabwean platinum operation posting another financial loss in 2024.

The investment, disclosed in Sibanye's 2024 annual report, comes as Mimosa recorded a loss of R97 million in 2024 - an improvement from a R1.9 billion loss in 2023, but still a reflection of sustained operational and economic pressures.

"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)," the miner said.

The Johannesburg-based firm noted that capital spending may vary depending on production volumes, commodity price fluctuations, and broader economic conditions - many of which are outside its control.

In 2024, Mimosa's revenue dipped slightly to R3,1 billion, compared to R3,21 billion in 2023 and R4,26 billion in 2022. The last profit posted by the mine was in 2022, when it recorded a R1,06 billion profit after tax.

Mimosa's operational performance was further hampered by a 5,3% decline in the expected life-of-mine average recovered grade, driven by changing mineralogy and rising production costs.

"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.

These challenges have diminished expected future net cash flows, contributing to the mine's deteriorating financial position. The average PGM basket price used for Mimosa's joint venture was R25,433 per ounce of 4E (platinum, palladium, rhodium, and gold) metals.

Sibanye also highlighted difficulties in repatriating funds from Zimbabwe, a long-standing issue for foreign investors in the country.

Mimosa is a shallow, mechanised platinum group metals (PGM) and base metal mine, situated in the Wedza sub-chamber of the Great Dyke, approximately 32km west of Zvishavane in southern Zimbabwe. It is jointly owned by Sibanye-Stillwater and fellow South African miner Implats through Mimosa Investments Limited.

As of 2024, Sibanye's stake in Mimosa was valued at R4,92 billion. However, with declining revenues and operational constraints, the miner is under growing pressure to restore the mine's profitability.

The exchange rate as at December 31, 2024, was US$1: R18,89, according to the report.
- the independent

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