Sibanye Stillwater ( NYSE: SBSW ) on Thursday cut its full-year guidance for its U.S. palladium and platinum production after flooding and operational challenges affected output.
The company now sees output at its U.S. Stillwater mines at 445K-460K oz this year, well below an earlier forecast of 550K-580K oz, as activities were halted for seven weeks after Montana was hit by floods that followed a warm spell that led to a rapid melt of snow in the mountains.
While Sibanye ( SBSW ) still targets production of 700K oz by 2027, for now it is "prudent to defer capital investment on original growth project and re-engineer the operations to protect margins and long-term value."
The company also said it will focus on keeping all-in sustaining cost below $1K per gold equivalent oz in the medium- and long-term.
Sibanye Stillwater ( SBSW ) shares are "undervalued and near a key support level," Pearl Gray Equity and Research writes in an analysis published on Seeking Alpha .
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Sibanye Stillwater slashes production guidance for U.S. mines after floods