The country’s second-biggest Platinum Group Metal (PGM) producer, Mimosa Mining Company, jointly owned by Sibanye Stillwater and Impala Platinum Holdings (Implats), continues to demonstrate its competitive strength in the PGMs sector, as highlighted in a recent investor presentation titled “Positioned for Ongoing Shared Value Creation,” published by Sibanye Stillwater.
By Rudairo Mapuranga
The presentation showcases Mimosa’s positioning on the industry cost curve, emphasizing its critical role within the group’s portfolio of PGM operations.
According to the presentation, Mimosa remains competitively positioned within the mid-tier of global PGM producers in terms of cash cost plus capital expenditure per ounce of 4E (Platinum, Palladium, Rhodium, and Gold). On the cost curve, Mimosa’s all-in cost (cash cost plus capital expenditure) is approximately R20,000 per ounce. This positions Mimosa above the 50th percentile, highlighting its efficiency in managing production costs relative to global peers.
Furthermore, Mimosa continues to operate at a favourable basket price for the metals produced, with its spot basket price for 6E (including base metals) well above R30,000 per ounce, ensuring the operation remains profitable despite cost pressures. This demonstrates the mine’s ability to generate strong margins even under challenging market conditions.
Mimosa’s cumulative annual production is around 250 Koz (thousand ounces), contributing significantly to Sibanye Stillwater’s overall PGM output. The mine’s competitive cost positioning, in line with its strong production figures, reflects its ability to balance both volume and operational cost control. This combination ensures that Mimosa remains a pivotal asset in Sibanye Stillwater’s PGM portfolio.
As a joint venture between Sibanye Stillwater and Implats, Mimosa benefits from the combined expertise of two of the largest players in the global PGM market. The partnership allows Mimosa to leverage synergies across operational best practices, cost control, and technology, maintaining a balance between production efficiency and cost competitiveness.
The presentation underscores the importance of this strategic partnership, which enables Mimosa to remain within the 50th percentile of global PGM producers in terms of cost while achieving a higher-than-average spot basket price for the metals it produces. This not only strengthens Mimosa’s position on the cost curve but also ensures its long-term sustainability as part of the broader PGM industry.
The investor presentation also highlights future growth prospects for Mimosa, with planned investments in infrastructure and further optimization initiatives aimed at maintaining cost efficiency. By staying focused on managing operational expenditures, Mimosa is expected to continue delivering strong returns for both Sibanye Stillwater and Implats, with ongoing improvements in cost efficiency and production stability.
The mine’s strategic placement on the cost curve, combined with its ability to capitalize on the favourable basket price for its 6E production, positions it well for continued value creation in the future. Mimosa’s cost per ounce relative to its production volume and market prices ensures that it remains a critical contributor to the shared value creation strategy laid out by Sibanye Stillwater.