(Corrects after company gave an amended figure for EBITDA ratioin paragraph 7, adds dropped word in paragraph 3)By Zandi Shabalala and Pratima DesaiLONDON, May 16 (Reuters) - Higher prices for industrialprecious metals palladium and platinum have boosted earnings atSibanye-Stillwater, enabling the miner to repay debt and plan toresume dividends next year, its chief executive Neal Fronemansaid.
Sibanye , once the industry's highest dividendpayer, last made a payout to investors in 2016.The company also expects to halve the amount of job cutspreviously announced in the gold division to around 3,000,Froneman told Reuters in London."We haven't got final numbers yet because the process isn'tcomplete, but it's probably about half what was expected."Palladium , now around $1,300 an ounce, hit recordhighs above $1,600 in March, while platinum prices haverecovered to around $850 an ounce after falling to 10-year lowsbelow $800 last year.This, combined with production rising after safetydisruptions and a strike, will mean a healthy balance sheet nextyear, Froneman said."We will be sufficiently deleveraged to start payingdividends again in 2020. Our current net debt to EBITDA ratio isthree, we are projecting that at less than 1.8 by the end ofthis year," he said."We should see significant EBITDA increases from the goodperformance of our South African platinum business and of coursebringing Lonmin into the mix also creates earnings."Sibanye is in the process of buying South Africa's Lonmin . South Africa's Competition Appeals Court will on Fridayrule on a union request to block the deal. Shareholders vote onit at the end of May.Sibanye's U.S. platinum business will also help the companyto a solid performance, as Stillwater is primarily a palladiumproducer.
"It is 78% palladium and 22% platinum. If you couple thatwith our South African business, our group ends up with a 50-50platinum, palladium exposure."South African ore is typically 60% platinum, 30% palladiumand 10% rhodium and other minor precious metals.Sibanye heads into platinum wage negotiations for the firsttime next month after it bought Anglo American Platinum'sRustenburg operations and is acquiring mining company Lonmin Plc ."Continuous above-inflation wage increases are notsustainable, you end up with a margin squeeze and eventually joblosses," Froneman said.
(Editing by Veronica Brown and Dale Hudson)