Resources charge as Sibanye-Stillwater posts 371% EBITDA surge

The JSE surged on Wednesday, with the All Share climbing 3.61% and the Resource 20 advancing 6.46% as gold and platinum group metal prices underpinned a broad mining rally. Sibanye-Stillwater led all counters with an 11.31% jump after reporting explosive Q1 earnings, while Implats, Harmony, Gold Fields, and DRDGOLD all gained more than 8%. Energy and chemicals names bucked the trend, with Sasol shedding 7.65% and the FTSE/JSE Chemicals index off nearly 6%.

SSW Record EBITDA but focus shifts to refinancing execution

Sibanye-Stillwater reported a 371% year-on-year surge in Q1 adjusted EBITDA to R19.4 billion, driven by significantly higher PGM and gold basket prices alongside solid operational execution. South African PGM operations delivered a 393% EBITDA increase to R12.4 billion with unit costs held flat at R24,629 per 4Eoz, while the recycling division posted an 817% year-on-year EBITDA increase to US$98 million after full incorporation of the North Carolina site. The quarter was also fatality-free with a 9% improvement in the serious injury frequency rate. Despite the exceptional results, all-in sustaining costs rose 15% at SA gold operations and 14% at US PGM operations, reflecting inflationary pressures and higher royalty taxes linked to elevated commodity prices.

Concurrently, the group launched a cash tender offer for its 2026 and 2029 senior note maturities, funded through a combination of new US-dollar-denominated notes and existing cash. The transaction is explicitly contingent on successful pricing of the new notes, introducing execution risk for bondholders to monitor. Management described the move as a proactive step to reduce the maturity wall and aggregate gross debt, with R2.3 billion in new cash generated during the quarter also supporting balance sheet flexibility.

DRD R2.3bn cash pile builds as production targets upper guidance

DRDGOLD delivered a 6% increase in gold production to 1,219 kilograms during the quarter, keeping the company on track for the upper end of its 140,000–150,000 ounce full-year production guidance. Adjusted EBITDA rose 21% to R1.81 billion, supported by a 13% quarter-on-quarter increase in the Rand gold price that more than offset a decline in gold volumes sold. All-in sustaining costs and all-in costs per kilogram both decreased by 5% and 7% respectively, aided by easing capital requirements as major projects near completion.

Cash balances expanded to R2.3 billion, representing a R581.9 million increase over the period, preserving the debt-free balance sheet while fully funding capex. The strong cash accumulation provides a solid backstop even if the gold price pulls back near term. The reported figures are unaudited operational metrics and do not yet constitute final IFRS financial statements.

WEZ Operational turnaround confirmed as shares remain suspended

Wesizwe Platinum expects a significant turnaround from a restated headline loss of 12.23 cents per share to positive HEPS of between 8.64 and 11.08 cents, marking a clear operational recovery from prior-year losses. The projected swing to profitability is measured against a restated loss base, which complicates year-on-year comparability, and the underlying figures remain subject to external auditor review. The recovery is encouraging for operational momentum after what were evidently challenging prior periods.

Investors should note, however, that the shares remain in listing suspension, effectively trapping any potential upside until regulatory resolution is achieved. The combination of an ongoing suspension and a demanding valuation multiple means the fundamental recovery, while real, has limited near-term tradable value for most market participants.

MTU Legacy pricing drag eliminated with new HMS Bergbau offtake

Mantengu has terminated a legacy chrome marketing contract with RWEST that previously imposed unilateral below-market pricing structures costing the company R29 million. Under the new offtake agreement with HMS Bergbau Africa, pricing aligns with prevailing market conditions rather than the punitive legacy terms. The elimination of the R29 million headwind is a direct earnings tailwind that could meaningfully improve future profitability, though the market will watch closely whether the new partner delivers on its market-aligned pricing commitments.

The stock trades at a demanding 29.4x trailing P/E, suggesting the market is awaiting proof of execution under the new contract before granting the valuation multiple further credit.

QFH Double-digit HEPS growth guided at undemanding valuation

Quantum Foods expects headline earnings per share to grow 12% to 20% to between 83.5 and 89.5 cents for the half-year ended 31 March 2026. The expansion is driven by operational efficiencies in feeds and broiler farming and a strong African segment recovery in Zambia and Uganda, where lower feed costs and increased demand boosted earnings. These figures are unaudited management estimates ahead of the final interim results.

The egg division faced headwinds with a 9% decline in average selling prices partially offset by volume gains and lower feed costs, and unallocated Head Office costs rose due to long-term incentive scheme expenses. A non-recurring after-tax profit of R8.1 million from the disposal of a breeder farm flatters the headline EPS growth figure. At a trailing P/E of just 7.9x, the double-digit earnings growth makes this a compelling value story, even as structural pricing pressure in the egg business warrants ongoing monitoring for income-focused investors.

JBL Copper output surges but FY2026 guidance suspended

Jubilee Metals reported a 28.7% increase in nine-month saleable copper production to 2,177 tonnes, driven by a 112.7% production increase at the Roan concentrate facility to 1,999 tonnes and higher cathode output at the Sable Refinery. The Lost Time Frequency Injury Rate improved to 0.00 from 1.40 in the prior year, reflecting enhanced safety outcomes. Molefe Mine operations are expanding with 250,162 tonnes of ore mined during the period to support future ramp-ups.

Despite the strong historical volume growth, the group placed its full-year FY2026 production guidance under review due to commissioning delays at the Roan facility, which is currently operating at only 75% of its targeted rate. The suspension of guidance leaves investors without a clear full-year production target and adds near-term execution uncertainty. An independent JORC-compliant resource report is also delayed until Q4 2026.

ANG All 17 AGM resolutions pass with pockets of minority dissent

AngloGold Ashanti shareholders passed all 17 resolutions at its 2026 AGM, including the re-election of CEO Alberto Calderon with 99.99% support and the approval of the 2025 Annual Report and Accounts with similarly overwhelming backing. The near-unanimous results underscore management stability and confidence in the group's financial reporting.

Notable minority dissent emerged against the re-election of one director, where 22.27% of votes were cast against, and against the authorization for political donations, where 24.69% opposed the resolution. The Directors' Remuneration Report encountered minor resistance with 6.50% opposition. While no resolution failed, the institutional friction on board composition and donations may signal future governance engagement themes for long-term holders to monitor.

What we are watching

Investors should watch for the outcome of Sibanye-Stillwater's debt tender process and new senior note pricing, while Balwin Properties is scheduled to release its annual results and host a webcast on 11 May 2026.