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MarketScreener Homepage  >  Equities  >  Johannesburg Stock Exchange  >  Sibanye Gold Limited    SGLJ   ZAE000173951

SIBANYE GOLD LIMITED

(SGLJ)
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Sibanye Gold : Updated Investor relations meeting presentation

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11/19/2019 | 09:15am EST

A unique, exciting, global precious metals company

IR meeting presentation

End November 2019

Disclaimer

The information in this presentation may contain forward-looking statements within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, among others, those relating to Sibanye Gold Limited's (trading as Sibanye-Stillwater)("Sibanye-Stillwater" or the "Group") financial positions, business strategies, plans and objectives of management for future operations, are necessarily estimates reflecting the best judgment of the senior management and directors of Sibanye-Stillwater.

All statements other than statements of historical facts included in this presentation may be forward-looking statements. Forward-looking statements also often use words such as "will", "forecast", "potential", "estimate", "expect" and words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and should be considered in light of various important factors, including those set forth in this disclaimer and in the Group's Annual Integrated Report and Annual Financial Report, published on 29 March 2019, and the Group's Annual Report on Form 20-F filed by Sibanye-Stillwater with the Securities and Exchange Commission on 5 April 2019 (SEC File no. 001-35785). Readers are cautioned not to place undue reliance on such statements.

The important factors that could cause Sibanye-Stillwater's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, our future business prospects; financial positions; debt position and our ability to reduce debt leverage; business, political and social conditions in the United Kingdom, South Africa, Zimbabwe and elsewhere; plans and objectives of management for future operations; our ability to obtain the benefits of any streaming arrangements or

pipeline financing; our ability to service our bond Instruments (High Yield Bonds and Convertible Bonds); changes in assumptions underlying Sibanye-Stillwater's estimation of their

current mineral reserves and resources; the ability to achieve anticipated efficiencies and other cost savings in connection with past, ongoing and future acquisitions, as well as at existing operations; our ability to achieve steady state production at the Blitz project; the success of Sibanye-Stillwater's business strategy; exploration and development activities; the ability of Sibanye-Stillwater to comply with requirements that they operate in a sustainable manner; changes in the market price of gold, PGMs and/or uranium; the occurrence of hazards associated with underground and surface gold, PGMs and uranium mining; the occurrence of labour disruptions and industrial action; the availability, terms and deployment of capital or credit; changes in relevant government regulations, particularly environmental, tax, health and safety regulations and new legislation affecting water, mining, mineral rights and business ownership, including any interpretations thereof which may be subject to dispute; the outcome and consequence of any

potential or pending litigation or regulatory proceedings or other environmental, health and safety issues; power disruptions, constraints and cost increases; supply chain shortages

and increases in the price of production inputs; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary stoppages of mines for safety incidents and unplanned maintenance; the ability to hire and retain senior management or sufficient technically skilled employees, as well as their ability to achieve sufficient representation of historically disadvantaged South Africans' in management positions; failure of information technology and communications systems; the adequacy of insurance coverage; any social unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye-Stillwater's operations; and the impact of HIV, tuberculosis and other contagious diseases.

These forward-looking statements speak only as of the date of the content. Sibanye-Stillwater expressly disclaims any obligation or undertaking to update or revise any forward- looking statement (except to the extent legally required).

2

A unique, diversified, global, precious metal company

27%

Reserves (Moz %)

2018

73%

SA4 US

16%

15%

30%

32%

Production

Adj EBITDA

(oz%)

(Rm%)

Q3 2019

Q3 2019*

54%

53%

SA gold (oz %)

SA PGM (6E %)

US PGM (2E %)

Americas assets

US PGM

Marathon project

East Boulder mine(100%)

with Generation mining

Reserves: 10.9Moz 2E

Stillwater mine(100%)

Altar project

Reserves: 14.8Moz 2E

with Aldebaran (in

Argentina)

*Include SA gold and SA PGM operations inclusive of Lonmin's Reserve and Resource declaration as at Sep 2018

Shares in issue1

2,670,029,252

Shares in ADR form2

719, 621, 508 (ADR ratio 1:4 ordinary share)

Market cap¹

R76 billion (US$5.1 billion)

Listings

JSE Limited share ticker: SGL

NYSE ADR programme share ticker: SBGL

Net debt: Adj EBITDA

Gearing of 1.7x Net debt :adjusted EBITDA* 3

at 30 September 2019

SA PGM

Southern African assets

SA GOLD

Mimosa (50%)

Cooke surface

Reserves: 1.7Moz 4E

Reserves: 0.159Moz Au

Marikana (100%)4

Kloof:

Reserves: 31.2Moz 4E

Reserves: 5.0Moz Au

Platinum Mile (91.7%)

Driefontein

Reserves: n.a.

Reserves: 3.3Moz Au

Rustenburg (100%):

DRDGOLD (38.05%)

Reserves: 14.5Moz 4E

Reserves: 2.2Moz Au

Kroondal (50%)

Beatrix

Reserves: 1.5Moz 4E

Reserves: 1.2Moz Au

Quality portfolio of assets poised to excel

¹ Shares in issue and market cap as at 18 November 2019 2 American depository receipts (ADRs) as at 18 November 2019 3 Definition as per debt covenants which includes 12 months pro-forma adjusted EBITDA of Marikana

3

operations 4 Includes the declaration as per Lonmin at 30 Sep 2018 before the acquisition thereof *The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included

in the facility agreements for compliance with the debt covenant formula. For a reconciliation please refer to the additional Q3 2019 results disclosure available on https://www.sibanyestillwater.com/news-investors/reports/quarterly/

Our values define the way we do business - in the interests of all stakeholders

OUR VISION

SUPERIOR VALUE CREATION

PURPOSE

FOR ALL OUR STAKEHOLDERS

through the responsible

Our mining

mining of our mineral

improves lives

resources

Recognised the importance of all stakeholders to the success and sustainability of our business from the start - superior value creation for all of our stakeholders

26 August 2019: 181 CEO's of the Business Round table in the United

States released a statement on "the Purpose of a Corporation" which moves away from shareholder primacy and includes a

commitment to lead companies for the benefit of all stakeholders

4

Our commitment towards ESG and related reporting guidelines

  • Responsible Gold Mining Principles
    • An over-arching framework that sets out clear expectations as to what constitutes responsible gold mining.
    • Designed to provide confidence to investors, supply chain participants and investors that gold has been produced responsibly.
    • Implementing companies will be required to publicly disclose conformance and obtain external assurance on this.
    • Reflects the commitment of the world's leading gold mining companies to responsible mining.
  • Other ESG commitments, reporting guidelines and recognition by inclusion in ESG indices

5

To build this unique Group we had to transform significantly over 6 years

2013¹ Market cap: R10 billion

Perceived high

cost, short life SA gold company

Value accretive and high quality PGM acquisitions

A major, global precious metal company

2019² Market cap: ~R76 billion

  • Reduced costs
  • Improved flexibility and quality of mining
  • Substantial increase in reserves enhanced by synergistic acquisitions
  • Significantly extended operating life
  • Included Cooke and Wits gold acquisitions
  • Reduced debt/gearing
  • Delivered consistent, industry leading returns
  • Significant PGM acquisitions (Aquarius and Rustenburg operations in 2016) at the bottom of the PGM price cycle
  • Innovatively financed strategic growth enhancing value
  • Implementation of operating model and realisation of consolidation synergies yielding superior value ahead of schedule
  • Acquisition of Stillwater (located in Montana, United States) in May 2017 was transformative, creating a globally competitive and unique SA mining company
  • Unique commodity mix and global geographic presence
  • Lonmin acquisition in June 2019 concluded 4th step in PGM strategy
  • Secures entire beneficiation chain in SA as well as providing significant optionality to PGM prices
  • Well positioned for further success

Delivering value while diversifying risk at the bottom of the cycle

¹ 11 February 2013, Source: IRESS

6

² 18 November 2019 , Source: IRESS

Expected production profile represents a lasting, quality mix of precious metals

If we had made no further acquisitions

or implemented our operating model since unbundling

Base of gold operations' life of mine upon unbundling in 2013

Our life of mine profile post various value accretive acquisitions

Expected PGM and gold* life of mine production plan

5

5

(next 10 years displayed)

Million ounces

4

3

2

1

0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

Beatrix Base

Driefontein Base

Kloof Base

Surface

4

ounces

3

Million

2

1

0

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

SA PGM operations (4E PGMs)

US PGM operations (2E PGM oz)

US Recycling, (2E PGM oz)

Gold operations (oz)

Lonmin operations (4E PGM oz)

Source: Company information

7

Successfully concluded our four-step PGM strategy at favourable prices

Aquarius

Rustenburg

Stillwater

Lonmin

  • First entry into the SA PGM sector - Apr 2016
  • Lean, well run company
  • Operational performance increased to further record levels since acquisition
  • Effective Nov 2016
  • Smart transaction structure aligned with expectations of platinum market outlook
  • Significant synergies with Aquarius and gold central services
  • Realised synergies of ~R1bn in 14 months, well ahead of previous target of R800m over a 3-4 year period
  • Tier one, US PGM producer acquired in May 2017
  • High-grade,low-cost assets with Blitz, a world-class growth project
  • Provides geographic, commodity and currency diversification
  • 78% palladium content provides upside to robust palladium market
  • Effective June 2019. Acquisition price at attractive point in platinum price cycle
  • Significant potential synergies exist with our SA PGM assets
  • Aligns with Sibanye-Stillwater'smine-to-market strategy in SA and adds commercially attractive smelting and refining
  • Sizeable resources expected to provide long-term optionality

Built a leading and influential PGM business at a favourable stage in the precious metals cycle for a total of R38bn (US$2.59bn1) within four years:

  • R4.3bn Aquarius transaction in Apr 2016
  • R3.7bn2 Rustenburg in Nov 2016
  • US$2.2bn for Stillwater effective in May 2017
  • Lonmin all share acquisition in June 2019 at R4.3 bn3 / US$288m3

Executing clearly communicated four step strategy to create a unique PGM business

1.

Converting R38bn to US dollar using a US$/R14.68 exchange rate as of closing prices on 18 September 2019

2.

R1.5bn upfront payment to Amplats plus current estimate of R2.2bn deferred payment (refer to notes to the financial statements for reference)

3.

Estimate purchase price (not accounting value) of the Lonmin transaction based on Lonmin share capital figure of 290,394,531 shares in fixed ratio of 1:1 resulting in 290,394,531new Sibanye- Stillwater

8

shares. Considerations estimate based on spot Sibanye-Stillwater closing share price on the JSE of R14.83 per share on 7 June 2019. US$ price converted at R14.94

Created significant flexibility and optionality to SA PGM resources and reserves

Resources* (4E PGMs)

Reserves* (4E PGMs)

1%

5%

2%

9%

4%

38%

Total

Marikana ops and

28%

Total

29%

278Moz

surface

52Moz

Projects (Lonmin)

60%

Kroondal

19%

Rustenburg

3%

2%

Mimosa

Surface

Projects

Lonmin added sizeable PGM Resources with potential upside from advanced brownfield projects and greenfield project pipeline

Source: Company information

9

9

* Mineral Reserves and mineral Resources declared as at 31 December 2018 except for Lonmin/ Marikana Reserve and Resource figures are as per their declaration as at Sep 2018 before the acquisition by Sibanye-Stillwater. This

declaration is currently subject to an economic valuation aligned to our policy

Track record of successful integration of previous SA PGM acquisitions

  • Rustenburg and Kroondal synergies
    • Initially estimated as R800 million over 3 to 4 years
    • Successfully realised > R1 billion of synergies over 14 months

1

2

3

1.

Northam

2.

Anglo America Platinum

3.

Siyanda Resources

4

4.

Sedibelo Platinum

5.

Wesizwe Platinum

2

6.

Royal Bafokeng Platinum

7.

Impala Platinum

8.

Eastern Platinum

9.

Sibanye-Stillwater

6

Rustenburg and Kroondal

operations

5

Marikana operations

6

(previously Lonmin)

6

7

9

7

8

1

9

Adjacent operations providing significant synergy opportunities

10

Synergies with Marikana expected to provide operational viability

Pre-tax synergies of approx. R1.5bn annually1

Quantified synergies

  • Overhead costs (R730m annually by 2021)
    • corporate office rationalisation (closing London office and delisting)
    • regional shared services
    • operational (mining) services
    • once-offR80m cost required to achieve these synergies
  • Processing synergies
    • differential cost benefits of R780m and an average of approximately R550m annually if moving Rustenburg material to Lonmin PMR
    • Capex of approximately R1bn required for purchase of a new furnace

Incremental synergy potential2

  • Ability to mine through existing mine boundaries
  • Optimal use of surface infrastructure
  • Optimising mining mix
  • Prioritisation of projects and new growth capital
  • Capital reorganisation in line with new consolidated regional plan

Providing sustainability through realizing synergies and instilling appropriate cost structures for sustainable production levels

1.For further information, please refer to page 17, 58 to 60 of the offer announcement on 14 Dec 2017, available at https//sibanyestillwater.com/investors/transactions/lonmin/documents but realisation delayed by a year due

to delayed closing of transaction11 2. Synergies which are unquantifiable at this point in time

Significant transformation into a leading, global precious metals company

Sibanye-Stillwater global PGM ranking - Primary production

2018A platinum

2018A palladium

production (Moz)

production (Moz)

Sibanye-Stillwater²

Norilsk¹

2.73

1.48

Amplats¹

Sibanye-Stillwater²

1.32

1.13

Amplats¹

1.01

Impala¹,*

1.31

Impala¹

0.82

Norilsk¹

0.65

North American Palladium¹

0.22

Northam¹

0.30

Northam¹

0.14

RBPlats¹

0.26

RBPlats¹

0.11

Source: Company filings

Notes:

  1. Peer group information using public company filings with platinum, palladium and rhodium reflect primary production (where available) for 2018 actual. RBPlats based on H1 2019 production. Impala does not disclose primary production for palladium and therefore a similar ratio as the platinum primary production to total production was assumed. North American Palladium also does not disclose primary production for palladium therefore total production was used
  2. 2018 full year production from Sibanye - Stillwater proforma Lonmin (Sep 2018 annuals) excluding recycling volumes

* Impala's production represent the June 2019 year-end results issued on 5 September 2019

Positioned globally as a leading precious metals producer

12

Significant transformation into a leading, global precious metals company

Sibanye-Stillwater global PGM ranking - Primary production

Sibanye-Stillwater global gold ranking

2018A rhodium

production (Koz)

Sibanye-Stillwater²196

Amplats¹ 178

Impala¹,* 164

Northam¹44

RBPlats¹ 21

2018A gold and gold equivalents production (Moz)

Newmont Goldcorp¹

7.40

Barrick¹

5.81

Sibanye-Stillwater² #

3.64

AngloGold¹

3.40

Kinross¹

2.48

Polyus¹

2.44

Freeport-McMoRan¹

2.44

Gold produced

Gold equivalents

Source: Company filings

Notes:

  1. Peer group information using public company filings with platinum, palladium and rhodium reflect primary production (where available) for 2018 actual. RBPlats based on H1 2019 production. Impala does not disclose primary production for rhodium therefore a similar ratio for platinum primary production to total production was assumed
  2. 2018 full year production from Sibanye - Stillwater proforma Lonmin (Sep 2018 annuals) excluding recycling volumes
  • Gold equivalents calculated using a PGM basket price of R473,548/kg and gold price of R552,526/kg
    * Impala's production represent the June 2019 year-end results issued on 5 September 2019

Positioned globally as a leading precious metals producer

13

On the cusp of a re-rating

Revenue drivers - precious metals prices

R/oz

  1. 000
  1. 000
  1. 000
  1. 000
  1. 000
  1. 000
  1. 000
  1. 000
  1. 000

H1 2017

Ave: 16,326/oz

Ave: US$836/2Eoz

Ave: R12,039/4Eoz

H2 2017

H1 2018

H2 2018

H1 2019

Ave: US$1,284/2Eoz

Ave: 18,552/oz

Ave: 17,087/oz

Ave: US$992/2Eoz

Ave: 17,297/oz

Ave: US$1,000/2Eoz

Ave: R16,752/4Eoz

Ave: US$945/2Eoz

Ave: 16,216/oz

Ave: R12,952/4Eoz

Ave: R14,556/4Eoz

Ave: R12,952/4Eoz

1 800

Spot: US$1,564/2Eoz

1 600

Spot: R22,720/4Eoz

Spot: R22,033/oz

1 400

1 200

US$/oz

1 000

800

600

400

Gold R/oz

PGM basket (R/4Eoz)

PGM basket (US$/2Eoz)

Increasing precious metals prices and depreciating rand driving profitability and cash flow in H2 2019

Source: IRESS

15

Net debt reduced with proactive debt management

Net debt reduced and de-leveraging acceleration expected

  • Well within the 3.5x covenant limit - Net debt: adjusted EBITDA of 1.7x as per the covenant calculations*
  • Net debt: adjusted EBITDA ratio expected to reduce significantly by end 2019 as the impact of the events in H1 2019 are diluted by a more stable outlook and normalised earnings from the enlarged Group, alongside the lower net debt values

Debt management to improve capital structure

  • Two transactions executed during April 2019 to improve liquidity and accelerate deleveraging
    • Raised R1.7bn (US$120m) of funding through the issue of shares at near 52 week high prices
    • Raised US$125m (R1.7bn) of funding through a Gold Prepayment arrangement
  • The US$169m Lonmin PIM Prepayment arrangement was settled from cash on hand within the Lonmin group in July 2019
    • Marikana's liquidity and funding are to be provided from Group funding facilities at a cost of below 5% pa compared to the 15% pa cost incurred (both in USD terms) under the Lonmin PIM Prepay. Results in an approximately US$15m (R210m) pa funding cost reduction

Net debt to adjusted EBITDA

30 000

25 000

R million

20 000

15 000

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

17

17

17

18

18

18

18

19

19

19

Net debt balances (rhs)

Net debt: Adjusted EBITDA (lhs)

Covenant limit (rhs)

4.0

3.5

3.0

2.5

2.0x

1.5

1.0

0.5

0.0

Reduced debt and improved ND:EBITDA ratio

*For covenant calculations Marikana's pro forma EBITDA is utilised (i.e. adjusted to represent a full 12 month period, rather than just 4 month as consolidated for accounting purposes) in order to more

16

accurately represent the enlarged entity post an acquisition. This results in a 1.7x Net debt: adjusted EBITDA ratio for covenant calculation purposes, compared to the 3.2x ratio from the financial results

Limited near term debt servicing

Adjusted Debt maturity ladder as at 30 June 2019 in USD* (i.e. Capital repayment profile)

2 500

2 000

1 500

338

million

388

US$

1 000

347

500

216

216

336

448

0

112

2019202020212022202320242025

R5.5bn ZAR RCF

$600m ZAR RCF

$354m 6.125% 2022 bonds

$384m 1.875% 2023 convertible

$347m 7.125% 2025 bonds

Strong liquidity with extended debt maturity tenor

* All values are as at 30 June 2019 and the R14.10/$ exchange rate at that date.

  • The 3 year R5.5bn ZAR RCF
    (US$390m) includes the option to extend the tenor for a further two years and/or increase the facility value to R7.5bn (US$530m)
  • The 3 year US$600m USD RCF (R8.5bn) includes the option to extend the tenor for a further two years and/or increase the facility value to US$750m (R10.5bn)
    • 75% of the USD RCF lenders have approved the first one year extension to the April 2021 maturity
  • Additional tenor extensions and/or value uplifts could be approved by the lenders if requested by Sibanye- Stillwater

17

But it is a journey and we have not arrived yet...

We are working towards…

… and we are currently at

Status

Building a values-based culture

Focus on operational excellence

De-leveraging ongoing

  • significant reduction expected by end of 2019
  • to 1.0x in the longer term

Addressing our SA discount

Readiness for value accretive growth once deleveraging accomplished and inherent value recognised in equity rating

Promoting values-based behaviour through inclusive involvement Culture growth programme strengthening cohesion and engagement

Senior leadership driving segment-specific operational delivery strategies Constructive safe production trends emerging

1,7x* net debt: adjusted EBITDA at end Q3 2019 - well below the 3.5x covenant

  • Impacted by gold strike and deferred earnings from Rustenburg
  • sustained higher commodity prices and weaker R/US$ exchange rate support accelerated de-leveraging

Benefit of diversified operations reducing relative exposure to SA

Exploring options to further enhance resilience to socio-political developments

Commodities market intelligence strengthened through acquisition of SFA Oxford

  • Definition as per debt covenants which includes 12 months pro-forma adjusted EBITDA of Marikana operations. The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt covenant formula. For a reconciliation please refer to the additional Q3 2019 results

disclosure available on https://www.sibanyestillwater.com/news-investors/reports/quarterly/

18

A unique value proposition

A leading precious

3rd largest

Biggest

2nd

Leading

gold and gold

GLOBAL primary

largest

GLOBAL

metal company

equivalent

PRODUCER of

primary

PGM

platinum and

globally

rhodium

producer of

recycler

Palladium

Delivery of superior value to all stakeholders drives strategy

Operational

Gold mine life

Proudly South

The PURPOSE of

>15 years

excellence and

African while

PGM mine life >

our mining is to

innovative growth to

competing on a

IMPROVE LIVES

create sustainability

30 years

global stage

19

Questions?

Contacts

James Wellsted/ Henrika Ninham

ir@sibanyestillwater.com

Tel:+27(0)83 453 4014/ +27(0)72 448 5910

Appendix

Safety moment - Zero harm strategic framework

OUR VALUES

Commitment

Accountability

ENGAGED LEADERSHIP

Respect

ENABLING ENVIRONMENT

Reducing risk exposure by maintaining a safe working environment with equipment, tools and material that enable sustainably safe production

EMPOWERED PEOPLE

Ensuring the required number of trained people to apply relevant standards and procedures to work safely

  • Real risk reduction initiatives ongoing
    • Working place layout improvements
      • Focus on the elimination of 'A' Hazards
    • Infrastructure improvement
      • Rail-boundequipment safety enhancements
  • Safe Production leadership and culture
    • Individual, team and organisation
    • Mirror sessions at SA gold operations
    • Values-baseddecisions intervention
  • Safety days
    • Section 23 withdrawals reinforcement

Enabling

Safety

OUR VALUES

FIT-FOR-PURPOSE SYSTEMS

Subscribing to international best practice principles and integrated systems with a view to certification in the longer term

Bow-tie risk management process

Enhanced Trigger Action Response Plan

introduced

(TARP) for improved rock mass

-

University of Queensland coaching

management

sessions on critical controls

ISO 45001 Occupational Health & Safety

-

Root cause analysis

Management System implementation on

Independent high potential incident reviews

track

Life-saving rules introduced

ICMM membership

in progress

22

Group safety statistics - continued improvement

Lost day injury frequency rate (Group)

8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

5.87

6.74

6.62

5.78

5.89

5.21

0.00

2014

2015

2016

2017

2018

2019 Prog

Serious injury frequency rate (Group)

5.00

4.00

3.00

2.00

1.00

3.88

4.68

4.16

3.57

3.7

3.17

0.00

2014

2015

2016

2017

2018

2019 Prog

Fatal injury frequency rate (Group)

0.18

0.16

0.14

0.12

0.1

0.08

0.06

0.04

0.02

0.12

0.06

0.10

0.07

0.161

0.035

0

2014

2015

2016

2017

2018

2019 Prog

Fatal injury frequency rate (Gold operations only)

0.250

0.200

0.150

0.100

0.050

0.117

0.065

0.108

0.086

0.237

0.000

0.000

2014

2015

2016

2017

2018

2019 Prog

Source: Company information. Year progressive as at end Sep 2019

23

Prog 2019: January - end September 2019

Acquisition of SFA Oxford - fast tracking our PGM insights & technology

More about SFA Oxford (SFA)

Consulting analysts in tomorrow's commodities and technologies

A leading commodity consultancy with expertise in future technologies and mobility

SFA is a world-renowned authority on platinum-group metals and provides

market intelligence on strategic and precious metals for industrial applications,

clean automobiles and technologies for future smart cities, as well as on

evolving jewellery trends and investment

For more than 15 years, the SFA team has successfully undertaken complex assignments for producers, fabricators, end-users, recyclers and investors, whilst compiling the most comprehensive, independent supply and demand database

Acquiring tomorrow's PGM markets

24

2019 Annual guidance

Updated on 31 October 2019

Production

All-in sustaining costs

Total capital

US PGM operations

590 - 610 koz

US$755 - 770/oz

US$235 - 245 million

(2E PGMs mine production)

SA PGM operations2

1.0 - 1.10 moz

R12,500 - 13,200/4Eoz

R1,400 million

(excluding Lonmin)

(4E PGMs)2

(US$922 - 974/4Eoz)¹

(US$103 million)¹

Marikana operation 3

450 - 490 koz

R18,700 - 20,056/4Eoz

R1,108 million

(4E PGMs)3

(US$1,380 - 1,480/4Eoz)¹

(US$82 million)¹

SA Gold operations

24,000kg - 25,000kg

R715,000/kg and R750,000/kg

R2,350 million

(excluding DRDGOLD) - 2019 full year

(772 koz - 804 koz)

(US$1,640/oz and US$1,725/oz)

(US$173 million)

- H2 2019

16,000kg - 17,000kg

R590,000/kg and R630,000/kg

R1,900 million

(514 koz - 546 koz)

(US$1,350/oz and US$1450/oz)

(US$140 million)

Source: Company forecasts

  1. Estimates are converted at an exchange rate of R13.55/US$
  2. SA PGM operations' production guidance include the 50% attributable Mimosa production, although AISC and capital exclude Mimosa due it being equity accounted

3. The Marikana operation was acquired in June 2019 and guidance reflects 7 months for the 2019 year

25

Competent persons' declaration

The Competent Persons, designated in terms of SAMREC, who take responsibility for the reporting of Mineral Resources and Mineral Reserves and the overall regulatory compliance are the respective operational (per mining unit) and project based Mineral Resource Managers. The Competent Persons have sufficient experience relative to the type and style of mineral deposit under consideration and are full-time employees of or contracted to, based on prior employment with the Group, Sibanye- Stillwater. The Competent Persons confirmation signatures are presented in the CPRs per operation.

The Competent Persons further consent is given to the disclosure of this Mineral Resource and Mineral Reserve statement.

Corporate governance on the overall compliance of the company's figures and responsibility for the generation of a Group consolidated statement has been overseen by the lead Competent Persons listed below. The lead Competent Persons have given written consent to the disclosure of the 2018 Mineral Resources and Mineral Reserves statement. They are permanent employees or contracted by Sibanye-Stillwater.

For the United States Region, the lead competent person designated in terms of the SAMREC Code, who takes responsibility for the consolidation and reporting of the Stillwater and East Boulder Mineral Resources and Mineral Reserves, and for the overall regulatory compliance of these figures, is Brent LaMoure, who gave his consent for the disclosure of the 2018 Mineral Resources and Mineral Reserves Statement. Brent [B.Sc Mining Eng] is registered with the Mining and Metallurgical Society of America (01363QP) and has 23 years' experience relative to the type and style of mineral deposit under consideration. For the US project Resource estimation, the competent person is Stanford Foy. Stan is registered with the Society for Mining, Metallurgy and Exploration Inc. (4140727RM) and has 27 years' experience relative to the type and style of mineral deposit under consideration.

For the Southern African Platinum Group Metals (PGM) operations, the lead competent person designated in terms of the SAMREC Code, who takes responsibility for the consolidation and reporting of the SA Platinum Operations Mineral Resources and Mineral Reserves, and for the overall regulatory compliance of these figures, is Andrew Brown, who gave his consent for the disclosure of the 2018 Mineral Resources and Mineral Reserves Statement. Andrew [M.Sc Mining Eng] is registered with SAIMM (705060) and has 35 years' experience relative to the type and style of mineral deposit under consideration.

For the Southern African Gold operations, the lead competent person designated in terms of the SAMREC Code, with responsibility for the consolidation and reporting of the SA Gold Operations Mineral Resources and Mineral Reserves, and for overall regulatory compliance of these figures, is Gerhard Janse van Vuuren, who gave his consent for the disclosure of the 2018 Mineral Resources and Mineral Reserves Statement. Gerhard [GDE (Mining Eng), MBA, MSCC and B. Tech (MRM)] is registered with SAIMM (706705) and has 31 years' experience relative to the type and style of mineral deposit under consideration.

The 38.05% Attributable portion of the DRDGOLD current surface tailings operations including the ERGO and FWGR operations. For this attributable portion of the DRDGOLD resources and reserves, the company was reliant on external competent persons as follows: The Mineral Resources for the ERGO surface operations is based on depletion (up to December 2018) and the Competent Person designated in terms of SAMREC is Mr M Mudau, MSc Eng, Pr. Sci. Nat., the Resource Geology Manager at the RVN Group. The Competent Person designated in terms of SAMREC who takes responsibility for the reporting of the surface Mineral Reserves, also based on depletion up to December 2018, is Mr GJ Viljoen GPr MS 0256, an independent survey contractor.

26

Disclaimer

Sibanye Gold Limited published this content on 19 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 November 2019 14:14:08 UTC

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