South Africa’s mining industry is showing signs of improved operational performance, supported by stronger commodity prices and renewed investment in mine development. Sibanye-Stillwater has reported a 9% year-on-year increase in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to R10.8 billion for the third quarter of 2026, while several of its South African mining projects continue to advance.
In its operating update published on 5 November 2026, the Johannesburg-based mining group highlighted improved performance across its South African platinum group metals (PGM) and gold operations, alongside continued investment in infrastructure, mine extensions and operational efficiency.
The results provide an important indication of how mining companies are balancing production requirements, rising operating costs and long-term investment as the industry approaches the final quarter of the year.
South African platinum operations deliver improved performance
Sibanye-Stillwater reported that its South African PGM operations achieved their strongest quarterly production performance of 2026 during the September quarter.
The group’s adjusted EBITDA from these operations increased by 16% year-on-year to R5.8 billion, supported by stable sales volumes and a 15% improvement in the average PGM basket price, which reached R37,250 per four-element ounce.
However, production challenges remain. Year-on-year PGM production, including third-party concentrate purchases, declined by 10% to 458,202 ounces.
The company attributed the decrease mainly to lower surface production, reduced output from certain Rustenburg operations and the progressive depletion of ore reserves at some established mining areas.
Despite these pressures, the Marikana K4 shaft continued to demonstrate progress. Production from the shaft reached 30,453 four-element ounces during the quarter, representing an 8% improvement compared with the previous quarter.
The development is significant because underground mine expansions require sustained investment in access infrastructure, equipment, workforce capacity and processing facilities before they can deliver consistent production.
Capital expenditure increases as mine development continues
One of the most notable aspects of the latest update is the increase in investment across Sibanye-Stillwater’s South African platinum operations.
Total capital expenditure increased by 33% year-on-year to R1.9 billion during the third quarter.
The company allocated R672 million towards ore reserve development, while sustaining capital expenditure increased to R961 million. Project capital expenditure also rose significantly, reaching R303 million, representing a 97% increase compared with the corresponding period in 2025.
These investments are directed towards maintaining existing operations, developing underground mining areas and advancing projects intended to support future production.
The Thembelani extension project continued progressing, while development work commenced at the Siphumelele UG2 project.
For South Africa’s mining construction and engineering industries, these developments highlight the continued importance of underground infrastructure, mine development services, specialist engineering, equipment supply and maintenance.
Although the announcement does not confirm new contractor appointments, increased project spending provides an indication of the scale of infrastructure and operational work required to sustain mining activities.
Burnstone and Mt Lyell move into execution
Sibanye-Stillwater also reported progress on its longer-term growth projects.
The Burnstone gold project in South Africa and the Mt Lyell project in Australia have advanced into the execution phase, with planning, mobilisation and preparatory activities underway.
The Burnstone restart is particularly relevant to South Africa’s mining sector because it represents continued investment in developing the group’s gold portfolio.
The company said governance structures were being established and key personnel appointments were underway to support the delivery of the restart project.
At the same time, its Siphumelele and Thembelani extension projects remain important components of its strategy to extend the life of existing mining operations.
For construction companies and engineering service providers, the execution of mining projects can create opportunities across civil works, underground development, mechanical installations, electrical infrastructure and equipment maintenance.
However, the timing and scale of individual procurement opportunities will depend on project requirements and the company’s implementation schedule.
Gold operations face production and cost pressures
While the platinum operations recorded improved quarterly performance, Sibanye-Stillwater’s South African gold operations continued to face challenges associated with underground production.
Gold operations generated adjusted EBITDA of R3.4 billion during the quarter, an 8% decline compared with the corresponding period in 2025.
Underground production was affected by lower output at Beatrix, Driefontein and Kloof.
At Driefontein, flooding at the Khomanani 8 Shaft in August resulted in a six-week suspension of mining activities, affecting production and operational flexibility.
The company also reported higher unit all-in sustaining costs across its gold operations, reflecting lower production volumes, inflationary input costs, additional pumping requirements and increased operational expenditure.
Nevertheless, the business is continuing its transition towards a shallower, longer-life and potentially lower-risk gold portfolio.
The Burnstone restart forms part of this longer-term direction.
Safety and mechanisation remain important priorities
Beyond production and capital investment, the operating update highlighted improvements in several safety indicators.
Sibanye-Stillwater reported a 10% improvement in its serious injury frequency rate for the first nine months of 2026 compared with the corresponding period in 2025. Its total recordable injury frequency rate also improved by 9%.
However, the company acknowledged the tragic deaths of two employees associated with its Beatrix operations during the reporting period.
The group continues to implement its Fatal Elimination Strategy, focusing on critical risk management, leadership accountability and improved operational discipline.
Internationally, its US PGM operations were affected by an approximately five-week industrial strike. Production declined by 19% year-on-year to 59,417 ounces.
The conclusion of labour negotiations and the introduction of team-based incentives are expected to support the company’s transition towards a more mechanised operating model.
What the latest results mean for the mining industry
Sibanye-Stillwater’s third-quarter update highlights the relationship between production performance, commodity prices and investment in mining infrastructure.
While higher metal prices supported the group’s earnings, lower production at certain operations and rising operating costs demonstrate the importance of operational efficiency and disciplined capital allocation.
The continued advancement of Marikana K4, Siphumelele, Thembelani and Burnstone also reinforces the importance of maintaining investment in existing mines and developing future production capacity.
For South Africa’s mining and construction sectors, the next phase will depend on how effectively companies convert project investment into sustainable production, improved safety and long-term operational performance.
As Sibanye-Stillwater moves towards the end of 2026, the implementation of its development projects and its ability to manage production costs will remain important indicators of the group’s performance and its contribution to the wider mining economy.
Read more: https://www.sibanyestillwater.com/news-investors/page/5/?utm
