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The final investment decision by Sibanye-Stillwater on the already well-infrastructured Burnstone gold project in South Africa's Mpumalanga province is being targeted for the first half of this year.
At the same time, the strong foundation being created by Sibanye-Stillwater on the platinum group metals (PGMs) front is enabling the Johannesburg Stock Exchange-listed precious metals company to capitalise on the considerably stronger PGM prices.
"With supported fundamentals, potential for additional earnings and cash flow improvements in 2026 is anticipated, allowing continued investing through the cycle in low-risk, low-capital intensity projects with quick paybacks, all supporting stable, high performing operations with optionality to extend our portfolio," is the comment that paints the overall picture amid advantage being taken of substantial project capital having already been expended at the 25-year life-of-mine Burnstone project, where underground infrastructure is in place and surface infrastructure is mostly done. All this has been taking place near the town of Balfour, about 80 km southeast of Johannesburg, in the Dipaleseng municipality.
"The plant's largely built," Sibanye-Stillwater CEO Richard Stewart reported in response to RMB Morgan Stanley research and equity head analyst Chris Nicholson's capital expenditure questioning at last week's comprehensive presentation covered by Mining Weekly.
The remaining capital required is predominantly to open up the orebody. "What we're really looking at is the cost of going from start up to steady state," Stewart explained.
Meanwhile the feasibility under way exemplifies Sibanye-Stillwater's one-million-reserve-ounce strategic shift to a higher-margin, shallower gold-mining focus that extends beyond Burnstone to Cooke surface gold, located about 35km south-west of Johannesburg near the town of Randfontein; Beatrix gold operations, near Welkom and Virginia in the Free State; and attributable surface gold from DRDGOLD, 50 km east of Johannesburg in Brakpan and 80 km west of Johannesburg in Carletonville.
On top of all that, Sibanye-Stillwater's many mature gold operations – also see attached infographic – are highly geared to gold prices and are already generating strong cash flows in the current highly supportive price environment.
"Looking forward, our core gold operations will continue to drive performance excellence, and we are excited about the prospects in our current portfolio," Sibanye-Stillwater COO South Africa Richard Cox enthused.
For 2026, the outlook is positive. Spot prices are up 9% year-to-date to over R2.5-million/kg and 20% above second half 2025 levels, all boding well for another successful year with potential earnings and cash flow growth.
How rising prices are opening up expanding margins was illustrated on a gearing and all-in sustaining cost margin chart, which showed the average gold price received climbing steadily against controlled all-in sustaining cost.
In addition, a free cash flow bar chart highlighted the magnitude of the rapid cash flow turnaround, moving from negative in 2024 to significantly positive in 2025.
However, total production, including DRDGOLD, was 10% down. Underground production fell by 8% on operational challenges at Kloof and surface production was down 16% – an impact mitigated by a 39% gold price boost
The all-in sustaining cost increased 15% to R1.4 million/kg, with 14% lower gold sold.
Persistent 2025 Kloof challenges included a shaft incident at Manyano 7 Shaft, aging ventilation pass infrastructure and ore-pass systems, logistics constraints, as well as seismic risk in high-grade isolated blocks of ground (IBGs).
The resulting 31%-lower year-on-year 2025 production to 3 374 kg prompted a r...

Investment decision end June on already well-infrastructured Burnstone gold project

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