Top CFOs reveal how the mining industry navigated 2022


Charl Keyter, Fathima Ally and others unpack the mining highlights and challenges they faced this year.

Despite facing various operational disruptions, Sibanye was able to turn a half-year profit of R12.3 billion. CFO Charl Keyter (featured) accredited the profit to the precious and green metals company’s stable production and exceptional cost control at its South African PGM operations.

Read more: Sibanye Stillwater was resilient during a year filled with challenges, says CFO Charl Keyter

DRDGold, decided they were going to take a different approach to mining by rehabilitating the areas damaged by the history of mining.

“We are doing our best to do this while trying to minimise the impact of mining operations and addressing things such as dust and water pollution on the environment,” CFO Riaan Davel said in an earlier interview.

Read more: CFO Riaan Davel explains how DRDGold hopes to reverse a legacy of bad mining

Riaan added that DRDGold has hit multiple milestones with the release of its results for the financial year ended 30 June 2022. “The fact that we beat our gold production guidance and came in at expected cash operating costs per kilogram under very challenging circumstances makes me proud,” he said.

Read more: CFO Riaan Davel says DRDGold has “survived well” during challenging circumstances

Positive outlook
According to FD Fathima Ally, in March this year Grindrod reported “exceptional results” for the year ended 31 December 2021, underpinned by record mineral volumes handled at its port and terminals operations, as well as strong performance from its coastal shipping and container depot business.

She explained that this was because Grindrod stuck with and implemented its strategy around quality lending and maintaining healthy capital and liquidity ratios, despite impeding external factors.

Read more: Grindrod sees good results due to record mineral volumes, and people, says FD Fathima Ally

During the year, Amplats’ PGM sales volumes were up 82 percent. Combined with the 22 percent increase in PGM prices, this resulted in unprecedented profits for the company. The company ended the year with R50 billion cash and cleared a record dividend to shareholders of R300/share.

While PGM prices remain high as a result of continued recovery in the automotive sector, and the uncertainty created in the supply of PGMs from Russia following its invasion of Ukraine, CFO Craig Miller explained that Amplats wouldn’t see the same sales volume again soon.

Read more: CFO Craig Miller unpacks the good and bad of increased PGM prices and demand

Ratings upgrades
Moody’s upgraded Sibanye Stillwater’s corporate family rating from Ba3 to Ba2, noting that the company’s credit rating had a positive outlook. “I believe the upgrade is well deserved, considering the financial and capital allocation discipline that we have instilled in the business,” Sibanye Stillwater CFO Charl Keyter said.

Read more: CFO Charl Keyter says Sibanye Stillwater’s credit rating upgrade is well deserved

S&P Global Ratings upgraded Gold Fields’ credit rating from BBB- to BB+. The rating agency also upgraded the company's debt ratings on its senior unsecured notes, raised its short-term rating to A-3 from B, and affirmed its zaAAA/zaA-1+ South African national scale ratings.

Read more: Gold Fields’ strong balance sheet earns it a credit rating upgrade, says CFO Paul Schmidt

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