Economic Performance

  • The ultimate determinant of all business sustainability is positive cash flows generated by profits.
  • In the prevailing severely depressed world commodity price environment, the dollar price of PGMs is at historically low levels.
  • SPM achieved monthly break-even several times during 2015. Given its improving metal production and cost reduction profiles, the company expects to start generating cash from operations during 2016. Cash generation will increase significantly at higher metal prices.
  • SPM makes significant contributions to the national economy of RSA in the following areas:
    • Foreign exchange earnings (Forex).
    • Direct and indirect employment.
    • Direct and indirect taxations.
    • Economic multipliers arising from operating and capital expenditures (opex and capex).
  • During 2015, these contributions were as follows:
    • Forex from metal sales USD163,299,000.
    • Average head count: 2,066.
    • Total tax USD148,000.
    • Opex USD252,381,000.
    • Capex USD34,289,000.
  • SPM has cash reserves.