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

SIBANYE GOLD LIMITED

(SGL)
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Sibanye Gold : year-end F2019

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02/19/2020 | 02:10am EDT

JOHANNESBURG, 19 February 2020: Sibanye Gold Limited trading as Sibanye-Stillwater(Sibanye-Stillwater or the Group) (JSE: SSW &

NYSE: SBGL) is pleased to report operating and financial results for the six months ended 31 December 2019, and reviewed condensed consolidated provisional financial statements for the year ended 31 December 2019.

SALIENT FEATURES FOR THE SIX MONTHS AND YEAR ENDED 31 DECEMBER 2019

  • Continued improvement in Group safe production including zero fatalities at SA gold operations (+10 million fatality free shifts)
  • 44% increase in revenue to R73 billion (US$5.0 billion) and R432 million profit for 2019 (loss of R2.5 billion (US$191 million for 2018)
  • 79% increase in adjusted EBITDA to record R14,956 million (US$1,034 million)
  • Business significantly de-risked - ND:adjusted EBITDA reduced to 1.25x (from 2.5x at end 2018), well below debt covenants
  • Solid operational recovery in H2 2019 following strike and other operational disruptions in H1 2019
  • Successful Integration and restructuring at the Marikana operation - R1.2 billion of annualised synergies by end 2020 (64% higher than forecast)

US dollar

SA Rand

Year ended

Six months ended

Six months ended

Year ended

Dec 2018

Dec 2019

Dec 2018

Jun 2019

Dec 2019

KEY STATISTICS

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

UNITED STATES (US) OPERATIONS

PGM operations1,2

592,608

593,974

298,649

284,773

309,202

oz

2E PGM2 production

kg

9,617

8,857

9,289

18,475

18,432

686,592

853,130

326,346

421,450

431,681

oz

PGM recycling1

kg

13,427

13,109

10,151

26,535

21,355

1,007

1,403

1,016

1,285

1,508

US$/2Eoz

Average basket price

R/2Eoz

22,150

18,247

14,407

20,287

13,337

313.6

504.2

160.3

208.3

295.9

US$m

Adjusted EBITDA3

Rm

4,332.5

2,958.4

2,264.5

7,290.9

4,151.9

26

27

27

26

28

%

Adjusted EBITDA margin3

%

28

26

27

27

26

677

784

701

772

795

US$/2Eoz

All-in sustaining cost4

R/2Eoz

11,678

10,965

9,929

11,337

8,994

SOUTHERN AFRICA (SA) OPERATIONS

PGM operations2,5

1,175,672

1,608,332

606,506

627,991

980,343

oz

4E PGM2 production

kg

30,492

19,533

18,864

50,025

36,567

1,045

1,383

1,039

1,224

1,475

US$/4Eoz

Average basket price

R/4Eoz

21,671

17,377

14,729

19,994

13,838

217.6

608.3

136.3

143.8

464.5

US$m

Adjusted EBITDA3

Rm

6,753.2

2,043.0

1,880.7

8,796.2

2,881.8

19

32

22

33

32

%

Adjusted EBITDA margin3

%

32

33

22

32

19

787

1,027

755

932

1,074

US$/4Eoz

All-in sustaining cost4

R/4Eoz

15,779

13,228

10,706

14,857

10,417

Gold operations5

1,176,700

932,659

578,188

344,752

587,908

oz

Gold production

kg

18,286

10,723

17,984

29,009

36,600

1,259

1,395

1,212

1,308

1,432

US$/oz

Average gold price

R/kg

676,350

597,360

552,526

648,662

535,929

102.8

(67.0)

21.0

(207.0)

140.0

US$m

Adjusted EBITDA3

Rm

1,967.7

(2,937.1)

355.3

(969.4)

1,362.4

7

(5)

4

(49)

16

%

Adjusted EBITDA margin3

%

16

(49)

4

(5)

7

1,309

1,544

1,308

1,904

1,347

US$/oz

All-in sustaining cost4

R/kg

636,405

869,141

596,100

717,966

557,530

GROUP

(189.0)

4.5

(195.4)

(18.1)

22.6

US$m

Basic earnings

Rm

316.8

(254.7)

(2,576.3)

62.1

(2,499.6)

(1.3)

(69.7)

(9.5)

(89.0)

19.3

US$m

Headline earnings

Rm

254.9

(1,263.1)

(117.6)

(1,008.2)

(16.6)

632.0

1,034.3

315.6

141.9

892.4

US$m

Adjusted EBITDA3

Rm

12,937.5

2,018.5

4,473.8

14,956.0

8,369.4

13.24

14.18

14.20

R/US$

Average exchange rate

14.46

14.69

  1. The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated into SA rand. In addition to the US PGM operations' underground production, the operation processes recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM recycling represents palladium, platinum, and rhodium ounces fed to the furnace.
  2. The Platinum Group Metals (PGM) production in the SA Region is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US Region is principally platinum and palladium, referred to as 2E (2PGM)
  3. 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 of profit/loss before royalties and tax to adjusted EBITDA, see note 11 of the condensed consolidated provisional financial statements. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
  4. See "salient features and cost benchmarks - six months" for the definition of All-in sustaining cost
  5. The SA PGM operations' results for the six months and year ended 31 December 2019 include Marikana operations for the seven months since acquisition. The gold operations' results for the six months and year ended 31 December 2018 include DRDGOLD for the five months since acquisitions

Stock data for the six months ended 31 December 2019

JSE Limited - (SSW)

Number of shares in issue

Price range per ordinary share

R16.76 to R35.89

- at 31 December 2019

2,670,029,252

Average daily volume

21,383,382

- weighted average

2,670,029,252

NYSE - (SBGL); one ADR represents four ordinary shares

Free Float

81%

Price range per ADR

US$4.75 to US$9.93

Bloomberg/Reuters

SGLS/SGLJ.J

Average daily volume

4,153,448

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 1

STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OF SIBANYE STILLWATER

The Group made significant progress delivering on all near-term strategic imperatives during the course of 2019, significantly de- risking the business and in the process establishing a solid base for the delivery of further value to stakeholders. Our strategic focus areas are shown in the diagram below.

Figure 1: Sibanye-Stillwater strategic focus areas

SAFE PRODUCTION

Most pleasing has been continued progress and improvement in safe production, with Group safety for 2019 improving from the fatalities which significantly affected our SA gold operations in H1 2018. On 27 January 2020, the SA gold operations achieved a significant milestone of 10 million fatality free shifts over a 17-month period. This is an unparalleled achievement in the history of our gold operations and in underground deep level mining. Milestones like these illustrate what can be achieved when all stakeholders work together and contribute constructively, and our appreciation goes to our employees, their union representatives and the Department of Minerals Resources and Energy for their invaluable assistance and input. Regrettably though, the Group suffered six fatalities during the year (all at the SA PGM operations). While this was a significant improvement from the 24 fatalities for 2018, our focus on safe production across the Group needs to continue if we are to prevent fatalities. The implementation of longer-term safety and cultural interventions is a strategic priority and we will strive to promote meaningful engagement with all our stakeholders as part of the safety improvement journey and in the further development of our safety culture.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) STRATEGY

Our ESG strategy has been formalised as a core pillar of the Group strategy. There is no doubt that increasingly exacting ESG expectations will shape the way the industry operates over the foreseeable future. A cohesive and integrated approach to management of ESG across the Group has been structured to meet the performance standards expected by our stakeholders.

The ESG strategy is consistent with the holistic and inclusive approach to business which we have followed since the inception of the Group. This is epitomised in our purpose: "Our mining improves lives", which is fundamental to the way we do business and drives our decision making. We care about safe production, our stakeholders, our environment, our company and our future and we will continually strive to improve lives through our mining.

We have also committed to aligning our business practices and procedures with the best and most appropriate guiding principles in the industry. Progress has been made towards securing International Council on Mining and Metals (ICMM) membership in that the assurance and review by an Independent Expert Review Panel has been completed. Final ratification to become an ICMM member is expected on 25 February 2020. It is planned to assure conformance to the responsible gold mining principles of the World Gold Council's "Responsible Gold Mining Principles" during H2 2020. Evaluation under "Together for Sustainability" (TfS) has been completed for the Marikana operation and assurance of the Kroondal and Rustenburg operations is planned by the end of 2020. The "Initiative for Responsible Mining Assurance" (IRMA) self-assessment has been completed at our US PGM operations. We have in addition been recognised in respect of our standing on climate change disclosure, environmental responsibility, gender equity, responsible business and safety through our inclusion in responsible investment indices and receipt of awards.

The public disclosure of our sustainable development performance is guided by responsible mining principles and is done in line with the Global Reporting Initiative requirements (GRI). It provides formal demonstration of our ESG credentials and represents essential positioning among the world's leading mining companies.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 2

We not only aspire to produce our products responsibly and to improve lives through our mining activities, but we also improve lives through the metals we produce. This particularly applies to our PGMs playing a critical role in environmental management and combatting climate change due to their unique chemical and physical properties. PGMs are essential components of many industrial applications that are critical to combatting climate change - clean air technology (catalysts), renewable energy (wind turbines), and future energy solutions (fuel cells) - and will therefore continue to play a critical role in the ongoing development of the global hydrogen economy.

As a relatively new participant in the global mining industry we continue to develop our ESG strategy and approach. Our rapid and transformative acquisitive growth means that we have had to and are still incorporating disparate operations with different cultures and ways of operating. We are on a journey. While we are by no means perfect or where we want to be, we can and will meet the performance expectations of all of our stakeholders.

OPERATING SUMMARY

The Group operating performance for the year ended 31 December 2019 was solid, with the operational issues that affected H1 2019, largely addressed by the end of the year.

SA PGM operations

The consistent operational delivery from the SA PGM operations continued, despite the integration and restructuring of the Marikana operation, the PGM wage negotiations, and the impact of load shedding towards the end of the year. 4E PGM production of 1,608,332 4Eoz (including the Marikana operation for seven months since acquisition), was 37% higher year-on-year, with 4E PGM production (excluding the Marikana operation) of 1,100,734 4Eoz above the upper end of annual guidance.

Following a detailed three-month review of the Marikana operation, a proposed restructuring to create an operating foot-print with a more sustainable cost structure, was announced in September 2019. Mandatory consultations with affected stakeholders in terms of Section 189A (S189) of the Labour Relations Act, 66 of 1995 (LRA) were successfully concluded in early December 2019, with the consequent restructuring effected by early January 2020 without any related operational disruption. Approximately 3,195 jobs were retained as a result of the operational review and S189 consultations, with 1,924 employees exiting during the period. Three generation 1 shafts (East 1, West 1 and Hossy) have reached the end of their reserve lives, resulting in the necessary retrenchment of 1,142 employees and a 1,709 reduction in contractors.

Whilst integration of the service functions is ongoing, the initial estimate of R730 million in annual synergies is already proving to be conservative. Synergies achieved to date imply an annualised run rate of R1,200 million by the end of 2020, which is 64% higher than our initial estimates.

The enlarged SA PGM production base is extremely leveraged to the rand 4E basket price as was evident in the 230% increase in H2 2019 adjusted EBITDA to R6,753 million (US$465 million)compared with R2,043 million (US$144 million) for H1 2019 This was primarily driven by a 25% increase in the average rand 4E basket price and the inclusion of the Marikana operation for the period. The rand 4E basket price in 2020 has already risen by a further 38%. The increase in the 4E basket price is supported by solid fundamentals, which, if sustained, implies a significantly stronger financial outlook for 2020.

US PGM operations

The US PGM operations reported 2E PGM production of 593,974 2Eoz which was in line with revised annual guidance. The operational issues which affected the East Boulder mine and Stillwater West mine during 2019 were successfully addressed during the remaining months in 2019, with both operations achieving normalised production run rates by year-end. Challenging ground conditions were encountered at Blitz during H2 2019, with fall of ground (FOG) conditions leading to orders from the US Mine Safety and Health Administration (MSHA) to suspend mining activities in specific areas, thereby restricting stope access and negatively impacting productivity. The adoption of special ground control measures temporarily impaired advance rates and resulted in reduced stope flexibility. Significant progress has been made on redesigning appropriate support in these areas. Concentrated development activities on the ramp system in the Blitz project area also resulted in increased diesel particulate matter (DPM) emissions beyond the capabilities of installed ventilation in certain development areas, which further impacted output.

While the ground control and DPM challenges have largely been addressed, production and advance rates remain behind plan, delaying the planned production build-up at Blitz by approximately eight months. With the ramp up commencing in Q4 2020, the Fill the Mill (FTM) project remains on track to deliver 40,000 2Eoz per annum. At spot prices, the project is expected to yield an NPV in excess of US$400m.

The 53% increase in the palladium price during 2019 to US$1,916/2Eoz, drove a 38% increase in the average 2E PGM basket price for 2019 to US$1,403/2Eoz (palladium comprises 78% of the 2E basket price, with platinum comprising 22%). As a result, adjusted EBITDA from the US PGM operations increased by 61% year-on-year to US$504 million. The 2E PGM basket price has risen a further 24% during 2020 to over US$2,100/2Eoz, which combined with the forecast increase in 2E PGM production to between 660,000 2Eoz and 700,000 2Eoz, suggests significantly stronger financial delivery for 2020.

SA gold operations

The SA gold operations produced 29,009kg (932,659oz) (Including DRDGOLD) for 2019 and 23,427kg (753,194oz) (excluding DRDGOLD) for 2019. Normalised production run rates for the reduced operating footprint at the SA gold operations were achieved during Q4 2019, following the conclusion of the AMCU strike in April 2019 and a steady production build-up.

The safe production build-up at the West Rand operations, was hampered by heightened levels of seismicity, as ground stresses which accumulated during the five month strike were released, significantly affecting several high grade areas at the Kloof operation in particular. Nonetheless, the operating and financial performance for H2 2019 was significantly better than H1 2019, with production increasing by 71% to18,268kg (587,908oz) and AISC declining by 27% to R636,405/kg (US$1,347/oz).

Due to the improved operating performance and a 22% increase in the average rand gold price received of R676,350/kg (US$1,432/oz) for H2 2019 relative to the comparable period in 2018, the SA gold operations returned to profitability in H2 2019.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 3

Adjusted EBITDA of R1,968 million (US$140 million) for H2 2019 partly offset the R2,937 million (US$207 million) strike related adjusted EBITDA loss from H1 2019, resulting in an adjusted EBIDA loss for 2019 of R969 million (US$67 million). As with the SA PGM operations, the SA gold operations are significantly leveraged to the rand gold price, which has risen by a further 10% to R757,500/oz (US$1,580/oz) year to date. If maintained, this will significantly improve the profitability of the SA gold operations in 2020.

DRDGOLD performed strongly during 2019, benefitting from higher volumes of high-grade surface material from the Driefontein surface facilities, to produce 5,582kg (179,465oz) of gold at an AISC of R514,932kg (US$1,108/oz) yielding adjusted EBITDA of R854 million (US$59 million) for 2019. On 8 January 2020, Sibanye-Stillwater exercised the option to increase its investment holding in DRDGOLD to 50.1% for a cash consideration of R1 billion. This investment has already yielded significant value uplift, with DRDGOLD's current price of R9.50 per share relative to the discounted subscription price paid of R6.46 per share, equivalent to a 47% return on investment (a R511 million gain). This increased investment in DRDGOLD follows an initial 38.05% stake, attained in 2018 through the vending of selected West Rand surface gold processing assets and tailings storage facilities (TSFs) into DRDGOLD for equity. The transaction successfully unlocked value in un-utilised surface infrastructure and TSFs at the SA gold operations, which had no value attributed to them by the market. The 50.1% investment in DRDGOLD is currently worth approximately R4.1 billion, with attributable dividends to date of R52m (Aug 2019) and R108m (Feb 2020) having been declared by DRDGOLD.

LABOUR RELATIONS

The strike at the SA Gold operations which was initiated by the Association of Mineworkers and Construction Union (AMCU) in November 2018, lasted approximately five months before it was resolved in April 2019. The agreed settlement was in Sibanye- Stillwater's favour, with AMCU accepting the same three-year agreement on the same terms that had been agreed with the other unions six-months earlier. While the financial impact of the AMCU strike was significant, we have consistently maintained that absorbing the strike impact was necessary for us to re-establish respectful and more co-operative relations with AMCU.

We remain convinced that the firm stance we adopted was appropriate and necessary, with the losses incurred at the SA gold operations, fully justified by closing the Lonmin transaction with no further objections to the transaction by AMCU and notably more constructive labour engagements achieved at the SA PGM operations during H2 2019. Several key outcomes during the period have set the SA PGM operations up for sustained stability and success:

  • despite the concerns of many market commentators, the wage negotiations at Rustenburg and Marikana were concluded without any industrial unrest resulting in a three-year deal on significantly more favourable terms than our industry peers, which will enhance the competitiveness and sustainability of the SA PGM operations
  • Necessary restructuring at the Marikana operation was also concluded without any industrial action during the four-month process, ensuring the long-term sustainability of the operation
  • Integration of the Marikana operations into the Sibanye-Stillwater operating model and approach has proceeded smoothly, with managers now having assumed their rightful roles to manage the business

The significant increase in the profitability of the SA PGM operations for H2 2019 is further testament to the appropriateness of the decisions and position adopted during the SA gold operations strike. The current three-year wage agreements have secured a period of stability at both the SA gold and the SA PGM operations, which will facilitate the optimisation of the operations and enable significant generation of value from these operations for the benefit of all stakeholders.

FINANCIAL SUMMARY

The financial results for 2019 were significantly improved relative to 2018, despite strike related losses incurred during H1 2019 at the SA gold operations.

Group revenue increased by 44% year-on-year to R72,925 million (US$5,043 million), driven by rising precious metals prices and an improving or steady operating performance across the Group during 2019, as well the inclusion of the Marikana operations from June 2019, boosting Group adjusted EBITDA for 2019 by 79% year-on-year to R14,956 million (US$1,034 million).

The year in review was a tale of two halves, with the financial performance in H2 2019 in stark contrast to H1 2019, which was significantly impacted by strike action at the SA gold operations and other operational disruptions. Revenue for H2 2019 of R49,390 million (US$3,386 million) increased by 110% from R23,535 million (US$1,657 million) for H1 2019 and 85% from R26,746 million (US$1,884 million) for H2 2018. Adjusted EBITDA for H2 2019 of R12,938 million (US$892 million) was 541% higher than adjusted EBITDA of R2,018 million (US$142 million) for H1 2019 and 189% higher than for the comparable period in 2018 (R4,474 million (US$316 million)).

Group profit of R433 million (US$30 million) for 2019, improved significantly from a loss of R2,521 million (US$191 million) for 2018, with H2 2019 profit of R604 million (US$42 million) offsetting the H1 2019 loss of R171 million (US$12 million). Group profit was affected by various non-recurring and/or non-cash items, the most prominent for 2019 being a R1,103 million (US$77 million) gain on acquisition of Lonmin Plc (Marikana operations), a R1,567 million (US$110 million) deferred tax credit recognised by the US PGM operations and recognition of a R3,912 million (US$271 million) fair value loss on the US$ convertible bonds, following the 258% increase in the Sibanye- Stillwater share price during 2019, resulting in the bonds trading well above par value.

Normalised earnings which are more reflective of operational earnings, increased by R3,797 million (US$263 million), to R2,360 million (US$163 million) from a R1,437 million (US$109million) loss in 2018. The financial performance for H2 2019 was again significantly improved relative to H1 2019, with normalised earnings of R4,471 million (US$ 304 million) for H2 2019, R6,582 million higher than the R2,111 million normalized loss for H1 2019.

As a result of the strong operating and financial performance achieved in H2 2019, progress on deleveraging the balance sheet has accelerated. Proforma net debt:adjusted EBITDA (ND:adjusted EBITDA) reduced from 2.5x at 30 June 2019 to 1.25x at year end, well below existing debt covenants and our 1.8x target for the 2019 year-end. Group leverage should continue to decline naturally over the next two quarters as the adjusted EBITDA from Q1 and Q2 2019, which were negatively impacted by the five-month strike at the SA gold operations and the change from a Purchase of Concentrate (PoC) to toll processing arrangement with Anglo American Platinum, fall out of the rolling total. If the run rate that has been achieved over H2 2019 is sustained, our net debt to EBITDA ratio should fall below 1.0x by mid-year. This is without considering the effects of reductions in net debt that should be achieved through application of free cash generated to repaying debt.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 4

We are now highly confident about sustained deleveraging of the company's balance sheet. Moreover, with the balance sheet further de-risked, we are well positioned to resume cash dividends during 2020 based on the current deleveraging trajectory and subject to current commodity prices.

  • Normalised earnings excludes gains and losses on financial instruments and foreign exchange differences, impairments, gain on disposal of property, plant and equipment, occupational healthcare expense, restructuring costs, transactions costs, share-based payment on BEE transaction, gain on acquisition, other business development costs, share of results of equity- accounted investees, after tax, and changes in estimated deferred tax rate

INTERNAL RESTRUCTURING AND NAME CHANGE

Pursuant to the scheme of arrangement (the "Scheme") as approved by shareholders, which will be implemented on 24 February 2020, the underlying business of Sibanye Gold Limited will trade under Sibanye Stillwater Limited from the commencement of business today 19 February 2020, with Sibanye Gold Limited to be delisted and become a wholly owned subsidiary of Sibanye Stillwater Limited, which will trade under the ticker symbol SSW on the JSE from the implementation date, and the ADR on the NYSE under the ticker symbol SBSW.

The Scheme was proposed to create a more efficient corporate structure whereby the gold and PGM portfolios are each held within their own distinct legal entities and to facilitate the Group's growth strategy by reorganising the Group's existing operations.

Sibanye Gold Limited continues to hold the Kloof, Driefontein and Beatrix Operations directly and Sibanye Stillwater Limited will serve as the holding company of the Group.

OUTLOOK

A meaningful recovery in mined 2E PGM production from the US PGM operations is forecast in 2020. Mined 2E PGM production of between 660,000 2Eoz and 700,000 2Eoz is expected, with unit AISC forecast between US$785 - US$820 per 2E ounce. Guided AISC increases are largely attributed to increased capital expenditure and higher royalties and taxes due to the significant increase in the 2E PGM basket price, which currently accounts for some US$60/2Eoz of the AISC increase. Capital expenditure of between US$260 million and US$280 million is forecast. Approximately 60% of this anticipated spend is growth capital in nature, including expenditure on FTM.

Positive basket price momentum has continued into 2020, with the current spot 2E PGM basket price exceeding US$2,150/oz, 53% higher than the average realised 2E PGM basket of US$1,403 in 2019, and 180% higher than the Stillwater acquisition price of US$770/2Eoz. This bodes well for operating margins, adjusted EBITDA and underlying cash flow generation from the US PGM operations in 2020.

The development of Blitz and FTM continues, and ten producing areas/stopes are expected to be commissioned at Blitz by the end of 2022, adding an expected 300koz (2E) of annual production from 2022 onwards. FTM is forecast to add 40koz (2E) of annual 2E PGM production with the build-up commencing in late 2020. FTM involves an incremental expansion of mining and certain support facilities at the East Boulder Mine and Columbus Metallurgical Complex.

4E PGM production from the SA PGM operations for 2020 is forecast at between 1,700,000 4Eoz and 1,850,000 4Eoz with AISC between R16,100/4Eoz and R16,800/4Eoz (US$1,108/4Eoz and US$1,160/4Eoz). Forecast 4E PGM production from the SA operations (excluding Marikana) of between 1,000,000 4Eoz and 1,100,000 4Eoz is consistent with 2019, with AISC between R15,700/4Eoz (US$1,082/4Eoz) and R16,500/4Eoz (US$1,100/4Eoz) and capital expenditure forecast at R1,451 million (US$100 million). 4E PGM production from the Marikana operation is forecast at between 700,000 4Eoz and 750,000 4Eoz, with AISC between R16,600/4Eoz (US$1,145/4Eoz) and R17,300/4Eoz (US$1,195/4Eoz). Higher royalties due to the sharp increase in spot 4E basket price and profitability add approximately R500/4Eoz (US$35/4Eoz) to AISC currently. Capital expenditure for the Marikana operations is forecast at R1,650 million (US$115 million).

Gold production from the SA gold operations for 2020 is forecast at between 29,000kg (932,000oz) and 31,000kg (997,000oz) with AISC between R635,000/kg and R675,000/kg (US$1,362/oz and US$1,437/oz). Capital expenditure is forecast at R3,340 million (US$230 million), with R235 million (US$16 million) of growth capital.

The dollar costs are based on an average exchange rate of R14.50/US$.

Neal Froneman

Chief Executive Officer

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 5

SIBANYE-STILLWATER GROUP SAFETY AND OPERATING REVIEW

SAFE PRODUCTION

There was a significant improvement in Group safe production in 2019, with the SA gold operations maintaining their 17 month fatal free run since 25 Aug 2018, achieving 10 million fatality free shifts on 26 January 2020 which is a record for the deep level mining industry. This is an admirable achievement considering that more than 30,000 employees are mining at depths extending to more than three km below surface. To put this achievement into context, our US PGM operations which employ approximately 1,700 people have been fatality free since October 2011 and in this time have achieved 2.6 million fatality free shifts.

Regrettably, the SA PGM operations recorded six fatalities during the year, a regression on the three fatalities for 2018. This included two fatalities experienced at the Marikana operation soon after the acquisition. The Board and management of Sibanye-Stillwater extend their sincere condolences to the family and friends of our fallen colleagues: Mr Madondana Manzenze, Mr Johannes Tumelo, Mr Sonwabo Bhani, Mr Zolile Booi, Mr Mauricio Chau and Mr Willem Rakgomo. Every effort is being made to address the causes of these incidents and ensure that they are not repeated.

US PGM operations

2019 mined 2E PGM production of 593,974 2Eoz was flat year on year, with All-In Sustaining Cost (AISC) of US$784/2Eoz, 16% higher than for FY2018. Although this cost performance was higher than original guidance, the AISC variance is primarily due to record PGM prices, which drives an increase in royalties and taxes - AISC increases by approximately US$5/2Eoz for every US$100/2Eoz change in the prevailing PGM basket. As a result, the 37% increase in the average 2E PGM basket price for 2019 added approximately US$19/2Eoz to AISC.

Mined PGM production of 309,202 2Eoz for H2 2019, was 4% higher than for the comparable period in 2018. H2 2019 AISC of US$795/2Eoz was 13% higher than for H2 2018, with the majority of the increase due to higher taxes and royalties.H2 2019 production was impacted by falls of ground at Stillwater West and Blitz, and elevated DPM levels at Blitz and the East Boulder mine. Remediation efforts and the more challenging ground conditions affected advance rates and productivity during the H2 2019. These efforts were largely complete at year end, with production from the East Boulder and Stillwater West mines having returned to normalised run rates. The challenges at Blitz have delayed the ramp up of production by approximately eight months with full production rates now expected in 2022 adding an expected 300,000 2Eoz of annual production from 2022 onwards. The development of Blitz and FTM continues, and ten producing areas/stopes are expected to be commissioned at Blitz by the end of 2022. FTM is forecast to add 2E PGM production of 40,000 2Eoz per annum, with the production build-up commencing in late 2020. FTM involves an incremental expansion of mining and certain support facilities at the East Boulder Mine and Columbus Metallurgical Complex.

The Columbus Metallurgical Complex delivered record throughput of mined and recycled material for the six-months ended 31 December 2019. The Columbus Metallurgical Complex processed approximately 329,000oz 2Eoz of mined concentrate and 432,000 3Eoz of recycled material, a total increase of 19% versus H2 2018. During the period the recycling operation fed an average of 27.5 tonnes of material per day (tpd) (+35% versus H2 2018).

The average 2E PGM basket price of US$1,403/2Eoz for 2019 was 38% than for 2018, resulting in adjusted EBITDA increasing by 61% to US$504 million, despite flat year-on-year production and higher unit costs. The recycling operation contributed US$38 million of this total. For H2 2019, a 48% year-on-year increase in the 2E PGM basket price to US$1,508/2Eoz, resulted in adjusted EBITDA increasing by 85% to US$296 million, compared with US$160 million in H2 2018. The recycling operations contributed US$17 million (R248 million) of this total.

Capital expenditure for 2019 amounted to US$235 million, including US$141 million in growth capital incurred at Blitz and FTM. During the period, US$22 million was incurred on sustaining capital and US$72 million on ore reserve development.

SA PGM operations

The strong operating performance from the SA PGM operations continued in 2019. This was a notable accomplishment considering the ongoing integration and restructuring of the Marikana operation and the PGM wage negotiations during the period.

The incorporation of the Marikana operation from June 2019, resulted in annual 4E PGM production increasing by 37% year-on-year to 1,608,332 4Eoz. This was underpinned by consistent operational delivery from the Rustenburg, Kroondal and Mimosa operations, with 4E PGM production from these operations (excluding production from the Marikana operation), of 1,100,734 4Eoz, exceeding the upper limit of annual guidance.

Primarily due to the inclusion of the higher cost Marikana operation and an increase in processing costs at Rustenburg following the transition from a Purchase of Concentrate to a Toll processing arrangement, AISC for 2019 increased by 43% to R14,857/4Eoz (US$1,027/4Eoz). The additional cost impact of the Toll arrangement is more than off-set by significantly higher revenue under this arrangement, with the Rustenburg operations benefitting from exposure to the higher spot 4E basket price on 100% of 4E production, as opposed to the PoC arrangement, the terms of which resulted in a percentage of 4E metal in concentrate being ceded to cover processing costs. AISC was also impacted by a R195 million (US$13.5) increase in royalties following the significant increase (44%) in 4E basket price year-on-year to R19,994/4Eoz (US$1,383/4Eoz).

The leverage of the SA PGM operations to higher basket prices, as a result of the consistent operational performance, is illustrated by the significant increase in profitability, with the adjusted EBITDA margin increasing from 19% in 2018 to 32% in 2019, and adjusted EBITDA for 2019 increasing by 205% to R8,796 million (US$608 million), which was more than the adjusted EBITDA of the entire Group in FY2018

The 4E PGM production of 980,343oz for H2 2019, was 62% higher than for the comparable period in 2018, with AISC for H2 2019 of R15,779/4Eoz (US$1,074/4Eoz), 47% higher year-on-year. Approximately 77% of 2019 adjusted EBITDA was generated in H2 2019, with adjusted EBITDA of R6,753 million 260% higher than for the comparable period in 2018. H2 2019 adjusted EBITDA annualised of R13,506 million (US$919 million) is more than the total nominal acquisition cost of the three SA PGM acquisitions (R12,800 million).

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 6

Rhodium and palladium prices increased significantly during FY2019, driving the average 4E PGM basket price up by 45% for FY2019 relative to the previous year. The average 4E basket price for H2 2019 was 47% higher at R21,671/4Eoz (US$1,475/4Eoz) than for H2 2018. These metals respectively comprise approximately 9% and 31% of the 4E production prill split, but due to their relative price increase comprised 29% and 34% respectively of the 4E PGM revenue basket during H2 2019. The trajectory of these price increases steepened towards the end of H2 2019 and has continued into FY2020. At current spot prices, Rhodium comprises 43% of the SA PGM operations 4E PGM revenue basket and palladium 31%.

4E PGM production from the Rustenburg operation of 354,960 4Eoz was 11% lower than for H2 2018, due to among other things, to a planned reduction in surface production and a revised mass-pull strategy relating to the change to the Toll arrangement and safety related stoppages. AISC from the Rustenburg operations for H2 2019, increased by 36% year-on-year to R15,182/4Eoz (US$1,033/4Eoz), due to transition from the PoC to the higher cost Toll processing arrangement, compounded by lower production and a R75m million/R210/4Eoz increase in royalties and taxes.

The Kroondal operational performance was consistently strong, with 4E PGM production of 133,227 4Eoz for H2 2019, 1% lower than the comparable period in 2018. Kroondal AISC of R11,288/4Eoz (US$768/4Eoz), was 18% higher than the comparable period in 2018, primarily due to a 49% increase in capital expenditure largely to replace belt infrastructure, a R8 million/R28/4Eoz increase in royalties and taxes due to increasing revenue and lower chrome prices, which impacted adversely on AISC.

The integration of the Marikana operation into the SA PGM operations remains on track. During the period under review Marikana produced 426,641 4Eoz and processed an additional 16,769 4Eoz from third parties under POC agreements. AISC of R17,718/4Eoz (US$1,206/4Eoz) for the period are likely to reduce as the cost benefits of the restructuring and closure of certain, higher cost generation 1 shafts become evident and as further cost synergies are realised. Higher royalties will impact on AISC in 2020.

H2 2019 chrome sales of 483,228 tonnes for the SA PGM operations, excluding Marikana, were significantly higher than the 404,560 tonnes sold in H2 2018 due to increased production of 25,000 tonnes as a result of operational efficiency improvements and improved logistics leading to a lower year end stockpile. Chrome revenue was R670 million for H2 2019, higher than the H2 2018 chrome revenue of R625 million, despite the chrome price reducing from $166/tonne in H2 2018 to $142/tonne in H2 2019. Marikana realised chrome sales during the period of 804,000 tonnes contributing chrome revenue of R233 million.

Attributable 4E PGM production from Mimosa of 56,722 4Eoz was 9% lower than for H2 2018, due to a mill breakdown during H2 2019. Subsequent to the breakdown production has stabilized and Mimosa is performing steadily. AISC of R12,318/4Eoz (US$839/4Eoz) increased by 18% (in US$ terms) primarily due to the lower production.

SA gold operations

Total gold production from the SA gold operations for 2019 declined by 21% to 29,009kg (932,659oz) primarily due to the strike in H1 2019 and subsequent measured build-up in production and restructuring which resulted in a number of shafts closing or being placed on care and maintenance, partly offset by 3,037kg (97,642oz) of production from DRDGOLD, which is fully consolidated. Elevated AISC of R717,966/kg (US$1,544/oz) reflect the strike impact and reduced production volumes. Despite a much stronger performance in H2 2019, and a 21% increase year-on-year in the average received rand gold price to R648,662/kg (US$1,395/oz), an adjusted EBITDA loss of R2.9 billion incurred during the strike in H1 2019, resulted in an adjusted EBITDA loss for the year of R969 million (US$67 million). The gold price in 2020 to date has averaged approximately R730,000/kg (US$1,560/oz), 12% higher than for 2019, which support a return to profitability for the SA Gold operations during 2020.

Production for H2 2019 (excluding DRDGOLD) declined by 4% year-on-year to 15,249kg (490,266oz), primarily due to the ongoing build-up of production following the strike, elevated levels of seismic activity following the resumption of safe production after the five month strike with a fire at Kloof 4 shaft, most likely caused by illegal miners affecting production during the period. Seismic events at Kloof Lower, most likely related to the fire resulted in the temporary unavailability of some high grade panels. Load shedding during Q4 2019 was relatively well managed, with approximately 143kg (4,598oz) being lost. Primarily due to lower production volumes AISC for the SA gold operations (excluding DRDGOLD) for H2 2019 increased to R661,902/kg (US$1,401/oz). The significant fixed cost component (over 80% of operating costs) for the SA gold operations, makes costs very sensitive to production volume changes and as a result, unit costs such as AISC invariably increase with reductions in production volumes. The SA Gold operations reported adjusted EBITDA for H2 2019 of R2 billion (US$140 million), 454% higher than for the comparable period in 2018.

Capital expenditure (excluding DRDGOLD) was R96.3 million (US$7.0 million) higher than for the comparable period in 2018, primarily due to an increase in ORD to restore flexibility and enable normalised production levels after the strike period. Sustaining capital expenditure increased by R57 million (US$4.0 million) as a result of the Kloof 1 shaft/3 shaft, Kloof 4 shaft/7 shaft and Kloof 4 shaft/3 shaft integration projects gaining momentum.

The Kloof operation experienced the biggest decline in underground production, with production falling by 6% to 5,180kg (166,541oz). Increased levels of seismicity during the post-strike production build up and the underground fire at 4 Shaft, which prevented access to several high grade stoping areas, resulted in the yield reducing from 7.14g/t to 5.26g/t. Kloof surface production of 833kg (26,782oz) was 30% lower than for H2 2018, due to depletion of higher grade surface reserves during H1 2019 when surface milling was accelerated to compensate for lower underground production during the strike. Some surface material from Kloof was toll treated at Driefontein no. 1 plant and the Ezulwini gold plant to utilize available milling capacity to compensate for the lower underground production. Lower gold production on the back of lower underground and surface grades was the primary factor driving a 39% increase in AISC to R718,014/kg (US$1,520/oz).

The shallower Beatrix operation was less affected by seismicity and other operational disruptions than the deeper West Rand operations during the post-strike production build up. Underground gold production for H2 2019 was 1% higher at 4,056kg (130,403oz) although surface production decreased by 53% to 66kg (2,122oz), as the higher grade surface reserves were depleted. AISC for H2 2019 increased by 4% to R558,558/kg (US$1,183/oz). due to a recovery in volumes after the strike had ended.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 7

FINANCIAL REVIEW OF THE SIBANYE-STILLWATER GROUP

FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 (H2 2019) COMPARED WITH THE SIX MONTHS ENDED 31 DECEMBER 2018 (H2 2018)

Comparability of the SA rand results for the Group is distorted as the Stillwater operations' results are translated to SA rand at the average exchange rate, which for H2 2019 was R14.69/US$ or 4% weaker than for H2 2018 of R14.18/US$. A direct comparison of Stillwater's US dollar results, therefore, is also included.

Further to this, the consolidation of the Lonmin group's (referred to as the Marikana operations) operating and financial results for the six months in H2 2019, acquired during June 2019 and the inclusion of DRDGOLD for the full six months in H2 2019 (compared with five months in H2 2018) skews the direct comparison with the financial results of the Group for the six months ended 31 December 2018.

The revenue, cost of sales, before amortisation and depreciation, net other cash costs, adjusted EBITDA and amortisation and depreciation are set out in the table below:

Figures in millions - SA rand

H2 2019

H2 2018

% change

Revenue

49,391

26,746

85

- US PGM operations

15,541

8,432

84

- SA PGM operations, excluding Marikana

11,521

8,365

38

- Marikana operations

9,819

-

100

- SA gold operations, excluding DRDGOLD

10,515

8,929

18

- DRDGOLD

2,111

1,047

102

- Group corporate1

(116)

(27)

(330)

Cost of sales, before amortisation and depreciation

(35,438)

(21,872)

62

- US PGM operations

(11,236)

(6,167)

82

- SA PGM operations, excluding Marikana

(6,860)

(6,380)

8

- Marikana operations

(7,220)

-

100

- SA gold operations, excluding DRDGOLD

(8,678)

(8,305)

4

- DRDGOLD

(1,444)

(1,020)

42

Net other cash costs

(1,015)

(400)

154

- US PGM operations

28

-

(100)

- SA PGM operations, excluding Marikana

(171)

(104)

64

- Marikana operations

(336)

-

100

- SA gold operations, excluding DRDGOLD

(513)

(305)

68

- DRDGOLD

(23)

9

356

Adjusted EBITDA

12,937

4,474

189

- US PGM operations

4,333

2,265

91

- SA PGM operations, excluding Marikana

4,490

1,881

139

- Marikana operations

2,263

-

100

- SA gold operations, excluding DRDGOLD

1,323

319

315

- DRDGOLD

644

36

1,689

- Group corporate1

(116)

(27)

(329)

Amortisation and depreciation

(4,289)

(3,519)

22

- US PGM operations

(1,193)

(1,210)

(1)

- SA PGM operations, excluding Marikana

(724)

(573)

26

- Marikana operations

(478)

-

100

- SA gold operations, excluding DRDGOLD

(1,810)

(1,678)

8

- DRDGOLD

(84)

(58)

45

1. The streaming transaction is not recognised in the Stillwater segment (see note 16 of the provisional financial statements).

Revenue

Revenue increased by 85% to R49,391 million (US$ 3,386 million). Revenue excluding DRDGOLD and the Marikana operations increased by 46% to R37,461 million (US$2,550 million) from R25,698 million (US$1,812 million). Revenue from the US PGM operations increased by 84% to US$1,058 million (R15,541 million) due to a 48% higher average 2E basket price mainly as a result of increased palladium prices and an increase in recycling volumes. Revenue from the SA PGM operations, excluding the Marikana operations, increased by 38% to R11,521 million (US$784million) due to a 49% higher average 4E basket price mainly as a result of increased palladium and rhodium prices. Revenue from the SA gold operations excluding DRDGOLD increased by 18% to R10,515 million (US$716 million) mainly due to a higher gold price and a weaker rand exchange rate on translation. Revenue from DRDGOLD increased by 102% to R2,111 million (US$144 million) due to the higher gold price, inclusion of DRDGOLD for full six months and increased production volumes from the Far West Gold Recoveries tailings retreatment operation which commenced operation during April 2019.

Cost of sales, before amortisation and depreciation

Cost of sales, before amortisation and depreciation increased by 62% to R35,438 million (US$2,425 million). Cost of sales, before amortisation and depreciation excluding DRDGOLD and the Marikana operations increased by 28% to R26,774 million (US$1,823 million). Cost of sales, before amortisation and depreciation at the US PGM operations increased by 82% to US$765 million (R11,236 million) due to increased recycling volumes. Cost of sales, before amortisation and depreciation at the SA PGM operations, excluding the Marikana operations increased by 8% to R6,860 million (US$467 million) due to the transition to the Toll processing agreement. Cost of sales, before amortisation and depreciation at the SA gold operations excluding DRDGOLD increased by 4% to R8,678 million (US$591 million) mainly due to the 6% increase in the underground tonnes processed compared to H2 2018. Cost of sales, before amortisation and depreciation from DRDGOLD increased by 42% to R1,444 million (US$98 million) due to increased production on the Far West Gold Recoveries tailings retreatment operation which commenced operation during April 2019.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 8

Adjusted EBITDA

Adjusted EBITDA includes other cash costs, care and maintenance costs; lease payments; strike costs and CSI costs. Care and maintenance costs for H2 2019 were R283 million (US$19 million) at Cooke (H2 2018: R291 million (US$21 million)); R168 million (US$12 million) at Marikana (H2 2018: Rnil (US$nil) and R10 million (US$1 million) at Burnstone (H2 2018: Rnil (US$nil). Lease payments of R81 million (H2 2018: Rnil) is included in line with the debt covenant formula. Strike costs for H2 2019 were R27 million (US$2 million) (H2 2018: R32 million (US$2 million) and CSI costs were R91 million (US$6 million) (H2 2018: R38 million (US$3 million).

The adjusted EBITDA for both the US PGM and SA PGM operations has increased due to higher commodity prices. The significant increase in the adjusted EBITDA for the SA PGM operations was due to the inclusion of the Marikana operations which were acquired in June 2019. The adjusted EBITDA for the SA gold operations have increased due to a higher prevailing gold price coupled with the increased recovery in production post the five-month industrial action which commenced during H2 2018.

Adjusted EBITDA is shown in the graphs below:

Amortisation and depreciation

Amortisation and depreciation including DRDGOLD and the Marikana operations increased by 22% to R4,289 million (US$293 million). Amortisation and depreciation excluding DRDGOLD and the Marikana operations increased by 8% to R3,727 million (US$254 million). Amortisation and depreciation at the US PGM operations decreased by 1% to US$81 million (R1,193 million) due to higher mine production and partly offset by an increase in reserves on which the amortisation calculation is based. Amortisation and depreciation at the SA PGM operations excluding the Marikana operations increased by 26% to R724 million (US$49 million) due to an increase in production. Amortisation and depreciation at the SA gold operations excluding DRDGOLD increased by 8% to R1,810 million (US$123 million) due higher production in line with the ramp up post the end of the five month industrial action. Amortisation and depreciation at DRDGOLD increased by 45% to R84 million (US$6 million) due to production commencing during April 2019 on the Far West Gold Recoveries tailings retreatment operation.

Finance expense

H2 2019

H2 2018

% change

Borrowings - interest

(768)

(772)

-

Borrowings - unwinding of amortised cost

(191)

(357)

46

Lease liabilities

(20)

-

(100)

Environmental rehabilitation obligation

(323)

(209)

(54)

Occupational healthcare obligation

(58)

(55)

(6)

Deferred Payment (related to the Rustenburg operations acquisition)

(89)

(100)

11

Deferred revenue (related to the streaming transaction)

(203)

(160)

(27)

Other

(79)

(98)

19

Finance expense

(1,731)

(1,751)

1

Finance expense decreased by R20 million (US$1 million) mainly due to a decrease in the unwinding of amortised cost on borrowings of R166 million (US$11 million) and a decrease in interest on the deferred payment relating to the Rustenburg acquisition of R11 million (US$1 million), partly offset by an increase of R114 million (US$8 million) and R20 million (US$1 million) in the unwinding of the environmental rehabilitation obligation and lease liability interest, respectively.

Sibanye-Stillwater's average outstanding gross debt, including the Marikana operations, excluding the Burnstone Debt and including the derivative financial instrument, was approximately 12% higher at R26.6 billion (US$1.9 billion) in H2 2019 compared with approximately R23.8 billion (US$ 1.6 billion) in H2 2018 mainly due to the R3,359 million fair value adjustment on the derivative portion of the convertible bond resulting from the higher prevailing Sibanye-Stillwater share price.

Gain/loss on financial instruments

The net loss on financial instruments of R5,480 million (US$378 million) for H2 2019 compared with the gain of R994 million (US$71 million) for H2 2018 represents an increase of R6,474 million (US$441 million). The net loss for H2 2019 included a fair value loss on the US$ Convertible Bond derivative financial instrument of R3,359 million (US$229 million), driven by the increase in the share price during 2019, which resulted in the convertible bonds trading well above par. In addition, the fair value loss on the Sibanye Rustenburg Platinum BEE share-based payment obligation (increase of R1,479 million (US$101 million)) and fair value loss on the revised cash flows of the deferred payment (increase of R875 million (US$60 million)) contributed to the increase in the loss on financial instruments. The increase in the fair value of these financial instruments is mainly due to higher long term PGM basket prices.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 9

Non-recurring items

Restructuring costs

Restructuring costs of R619 million (US$42 million) for H2 2019 relates to the S189 restructuring process at the Marikana operations.

Transaction costs

Transaction costs of R350 million (US$24 million) for H2 2019 included advisory and legal fees of R233 million (US$16 million) related to the Lonmin acquisition; advisory and legal fees of R30 million (US$2 million) related to the Sibanye Gold Limited internal restructuring; legal fees of R10 million (US$1 million) related to the Stillwater Mining Company dissenting shareholders claim and platinum jewellery membership costs of R10 million (US$1 million).

Mining and income tax

Current tax including DRGDOLD and the Marikana operations increased from a credit of R59 million (US$5 million) to R1,192 million (US$82 million) due to the increase in taxable mining income for the period at the US and SA PGM operations.

The deferred tax changed from an expense of R1,058 million (US$80 million) to a deferred tax credit R784 million (US$51 million), an increase of R1,842 million (US$125 million). During Q1 2019, the US PGM operations renegotiated its refining and certain sales agreements, resulting in the reversal of the Group deferred tax charge of R1,567 million (US$110 million) recognised in December 2018. The 2019 effective combined federal and state cash tax rates for the US segment are expected to be between 4.1% and 10%. The change of tax is a result of sales moving to a different tax jurisdiction.

The effective tax rate of 40% for H2 2019 was higher than the South African (SA) statutory company tax rate of 28% mainly due to the non-deductible loss on fair value of financial instruments. The effective tax (expense) rate of 62% for H2 2018 was higher than the SA statutory company tax rate of 28% mainly due to a significant deferred tax adjustment recognised in the period resulting from numerous tax reforms which affected the US PGM operations during that period.

Liquidity and capital resources

Free cash flow

Sibanye-Stillwater defines free cash flow as net cash from operating activities, before dividends paid, net interest paid and deferred revenue advance received, less additions to property, plant and equipment.

H2 2019

H1 2019

H2 2018

US PGM operations

3,451

281

106

SA PGM operations

2,286

440

441

SA gold operations

(4,932)

(564)

529

Group corporate and recycling

(389)

(187)

-

After net interest paid of R608 million (H2 2018: R676 million), net cash from other investing activities of R69 million (H2 2018:

R699 million) and net loans repaid of R3,467 million (H2 2018: R4,702 million), cash at 31 December 2019 decreased to R5,619 million

from R5,965 million at 30 June 2019 (H2 2018: cash at 31 December 2018 increased to R2,549 million from R2,100 million at 30 June 2018).

MINERAL RESOURCES AND MINERAL RESERVES

On 18 February 2020, Sibanye-Stillwater reported an update of its Mineral Resources and Mineral Reserves at 31 December 2019.

  • 90% increase in the total Platinum Group Metals (PGM) Mineral Resources to 389.0Moz and a 20% increase in the Group's PGM related Mineral Reserves to 55.1Moz, primarily due to the inclusion of the Marikana (previously Lonmin) assets, acquired in June 2019
  • Ongoing successful definition drilling at the Blitz project, Stillwater Mine, at the United States (US) PGM operations yielded 2.0Moz of additional Mineral Reserves
  • Gold Mineral Resources at the South African (SA) gold operations increased by 52% primarily due to a reduction in costs associated with the Kloof integration project, facilitating a decrease in cut-off grades
  • Exploration projects' advanced through the establishment of key partnerships including Aldebaran Resources Inc, Generation Mining Ltd and Wallbridge Ltd

CHANGE IN GROUP CHAIRMAN

Sello Moloko has tendered his resignation, effective 30 September 2019, in order to focus on his other responsibilities and the ongoing development of the Thesele Group, which he founded in 2005. Vincent Maphai, succeeded Sello as Chairman and non-executive independent director, and joined the Board as Chairman designate effective 1 June 2019. Vincent has a distinguished career in academia, the private sector and public service. Until 30 June 2018, when he retired from full-time work after 48 years, he was a visiting-Professor at Williams College in Massachusetts. Prior to that he served as Corporate Affairs and Transformation Director at the South African Breweries Limited for ten years after a five year period as Chairman of BHP Billiton Ltd, South Africa. Vincent has also been involved in various public policy projects and roles including the National Planning Commission, the Presidential Review Commission (Chair), and the South African Broadcasting Corporation (SABC). He served on the Councils of the University of KwaZulu- Natal (Chair), and the University of South Africa. In an academic career spanning two decades, he has studied and taught at various universities both locally and internationally.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 10

CHANGE IN BOARD OF DIRECTORS

Messrs Wang Bin and Lu Jiongjie have been appointed as Non-Independent,Non-Executive Directors to the Company's Board with effect from 1 January 2020. The appointments are pursuant to a written merger agreement entered into in August 2013 between Sibanye Gold and Gold One International Limited ("Gold One") for the acquisition by Sibanye Gold of Gold One's Cooke and Ezulwini Operations.

Mr Wang Bin has over 20 years of experience in engineering management, operational leadership, project development, and corporate business development in the mining and metals industry. He is currently the deputy general manager of Baiyin Nonferrous Group Co. Ltd, in charge of the overseas investments and assets management. Baiyin is one of the leading mining companies in China with businesses comprising mining, processing, smelting and refining, downstream manufacturing, research & development, investment and trading. Mr. Wang Bin was previously the project director for the acquisition of the 40% minority shareholders' equity of Gold One Group Limited.

Mr Lu Jiongjie is currently the General Manager of Baiyin International Investment Ltd which he established in 2013 as Baiyin's platform for overseas investment and management, and grew to the current size of approximately US$400m investments under management and US$800m debt financing under management, on behalf of Baiyin Group. He previously worked as an Associate and Director of Long March Capital wherein he participated in the various mining transactions, including a $635m investment by a Chinese consortium led by Baiyin in 2011 to acquire Gold One.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 11

SALIENT FEATURES AND COST BENCHMARKS - SIX MONTHS

SA and US PGM operations

GROUP

US

OPERATIONS

SA OPERATIONS

Total SA

Total US PGM

Total SA PGM

Rustenburg2

Marikana3

Kroondal

Plat Mile

Mimosa

and US

Stillwater

PGM

Under-

Under-

Under-

Attributable

Under-

Total

Surface

Surface

Attributable

Surface

Attributable

ground1

ground

ground

ground

Surface

Production

Tonnes milled/treated 000't

Dec 2019

18,935

736

18,199

10,177

8,022

3,545

2,288

3,937

1,774

2,042

3,960

653

Jun 2019

14,099

675

13,424

6,951

6,473

3,449

2,096

780

302

2,018

4,075

704

Dec 2018

14,096

689

13,407

6,435

6,972

3,700

3,008

-

-

2,031

3,964

704

Plant head grade

g/t

Dec 2019

2.73

14.28

2.27

3.34

0.90

3.52

1.14

3.61

0.92

2.45

0.75

3.58

Jun 2019

2.66

14.31

2.08

3.19

0.88

3.44

1.19

3.61

0.87

2.46

0.72

3.57

Dec 2018

2.64

14.68

2.02

3.24

0.89

3.59

1.18

-

-

2.49

0.66

3.57

Plant recoveries

%

Dec 2019

77.50

91.53

73.93

83.16

30.40

82.40

29.05

85.11

32.67

82.83

9.21

75.47

Jun 2019

75.70

91.38

69.95

82.62

21.30

83.21

31.29

87.10

25.60

82.08

12.47

75.25

Dec 2018

75.74

91.23

69.77

83.56

23.30

85.00

31.93

-

-

82.92

11.65

77.23

Yield

g/t

Dec 2019

2.12

13.07

1.68

2.78

0.27

2.90

0.33

3.07

0.30

2.03

0.07

2.70

Jun 2019

2.01

13.12

1.46

2.64

0.19

2.86

0.37

3.14

0.22

2.03

0.09

2.69

Dec 2018

3.05

0.38

2.06

0.08

2.75

2.00

13.48

1.41

2.71

0.21

PGM production4

4Eoz - 2Eoz

Dec 2019

1,289,545

309,202

980,343

909,874

70,469

330,599

24,361

389,326

37,315

133,227

8,793

56,722

Jun 2019

912,764

284,773

627,991

588,977

39,014

317,548

25,132

78,817

2,140

131,781

11,742

60,831

Dec 2018

905,155

298,649

606,506

560,154

46,352

363,136

36,492

-

-

134,712

9,860

62,306

PGM sold

4Eoz - 2Eoz

Dec 2019

1,247,257

306,419

940,838

907,893

32,945

312,333

24,152

405,611

133,227

8,793

56,722

Jun 2019

636,259

271,122

365,137

344,445

20,692

85,370

8,950

66,463

131,781

11,742

60,831

Dec 2018

929,078

322,573

606,506

560,154

46,352

363,136

36,492

-

134,712

9,860

62,306

Price and costs5

Average PGM basket

price6

R/4Eoz - R/2Eoz

Dec 2019

21,794

22,150

21,671

21,810

19,770

22,012

17,633

21,264

22,997

19,300

20,760

Jun 2019

17,787

18,247

17,377

17,326

15,340

17,071

14,688

17,955

17,565

16,258

16,698

Dec 2018

14,614

14,407

14,729

14,809

13,862

14,668

13,777

-

15,189

14,174

14,293

US$/4Eoz - US$/2Eoz Dec 2019

1,484

1,508

1,475

1,485

1,346

1,498

1,200

1,448

1,565

1,314

1,413

Jun 2019

1,253

1,285

1,224

1,220

1,080

1,202

1,034

1,264

1,237

1,145

1,176

Dec 2018

1,031

1,016

1,039

1,044

978

1,034

972

-

1,071

1,000

1,008

Operating cost7

R/t

Dec 2019

949

4,372

806

1,416

82

1,342

238

1,265

735

28

995

Jun 2019

783

4,013

611

1,097

100

1,233

260

1,381

683

25

975

Dec 2018

663

3,612

482

980

74

1,139

141

-

690

22

926

US$/t

Dec 2019

65

298

55

96

6

91

16

86

50

2

68

Jun 2019

55

283

43

77

7

87

18

97

48

2

69

Dec 2018

47

255

34

69

5

80

10

-

49

2

65

R/4Eoz - R/2Eoz

Dec 2019

14,078

10,406

15,308

15,804

9,298

14,394

22,392

16,932

11,266

12,476

11,454

Jun 2019

12,305

9,513

13,707

11,632

16,628

13,394

21,678

18,462

10,454

8,849

11,287

Dec 2018

10,542

8,327

11,259

11,276

11,083

12,068

11,638

-

10,395

9,026

10,461

US$/4Eoz - US$/2Eoz Dec 2019

958

708

1,042

1,076

633

980

1,524

1,153

767

849

780

Jun 2019

867

670

965

819

1,171

943

1,527

1,300

736

623

795

Dec 2018

743

587

794

795

782

851

821

-

733

637

738

Adjusted EBITDA

margin8

%

Dec 2019

57

32

35

23

50

20

47

Jun 2019

51

33

43

14

34

22

38

Dec 2018

44

22

27

-

27

20

31

All-in sustaining cost9

R/4Eoz - R/2Eoz

Dec 2019

14,750

11,678

15,779

15,182

17,718

11,288

13,818

12,318

Jun 2019

12,472

10,965

13,228

13,649

16,930

10,243

8,891

11,815

Dec 2018

10,431

9,929

10,706

11,141

-

9,547

8,966

10,077

US$/4Eoz - US$/2Eoz Dec 2019

1,004

795

1,074

1,033

1,206

768

941

839

Jun 2019

878

772

932

961

1,192

721

626

832

Dec 2018

786

-

673

632

711

736

701

755

All-in cost9

R/4Eoz - R/2Eoz

Dec 2019

15,654

15,212

15,802

15,187

17,740

11,288

14,989

12,318

Jun 2019

13,582

14,274

13,235

13,649

16,939

10,243

9,164

11,815

Dec 2018

11,534

12,964

10,750

11,141

-

9,547

11,369

10,077

US$/4Eoz - US$/2Eoz Dec 2019

1,066

1,036

1,076

1,034

1,208

768

1,020

839

Jun 2019

956

1,005

932

961

1,193

721

645

832

Dec 2018

813

914

758

786

-

673

802

711

Capital expenditure5

Total capital

Rm

Dec 2019

3,483.5

1,798.4

1,685.1

439.8

1,092.9

136.3

15.7

177.5

expenditure

Jun 2019

2,157.0

1,594.5

562.5

378.9

96.1

76.5

11.0

165.6

Dec 2018

2,210.9

1,615.1

595.8

475.9

-

91.5

28.4

105.2

US$m

Dec 2019

238.1

122.2

115.9

29.9

75.6

9.3

1.1

12.1

Jun 2019

151.9

112.4

39.5

26.7

6.7

5.4

0.7

11.7

Dec 2018

155.9

113.9

42.0

33.6

-

6.5

2.0

7.4

Average exchange rates for the six months ended 31 December 2019, 30 June 2019 and 31 December 2018 were R14.69/US$, R14.20/US$ and R14.18/US$, respectively Figures may not add as they are rounded independently

  1. The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated into SA rand. In addition to the US PGM operations' underground production, the operation processes recycling material which is excluded from the statistics shown
  2. Subsequent to the acquisition of the Marikana operations, the Group aligned the Rustenburg operations' accounting policy for inventory to that of the Marikana operations, whereby inventory is accounted for on a relative value basis
  3. The Marikana PGM operations' results for the six months ended 30 June 2019 are for one month since acquisition
  4. Production per product - see prill split in the table below
  5. The Group and total SA PGM operations' unit cost benchmarks exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales
  6. The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment
  7. Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the tonnes milled/treated in the same period, and operating cost per ounce (and kilogram) is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the PGM produced in the same period
  8. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 12

9 All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total 4E/2E PGM production in the same period, For a reconciliation of cost of sales, before amortisation and depreciation to All-in cost, see "All-in costs - six months"

Mining - Prill split excluding recycling operations

GROUP

SA OPERATIONS

US OPERATIONS

Dec 2019

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Jun 2019

Dec 2018

4Eoz

%

4Eoz

%

4Eoz

%

4Eoz

%

2Eoz

%

2Eoz

%

2Eoz

%

Platinum

650,603

50%

581,222

59%

366,958

58%

353,703

58%

69,381

22%

64,095

23%

67,946

23%

Palladium

534,849

42%

295,028

30%

193,964

31%

187,749

31%

239,821

78%

220,678

77%

230,703

77%

Rhodium

86,738

7%

86,738

9%

54,380

9%

51,352

9%

Gold

17,355

1%

17,355

2%

12,689

2%

13,702

2%

PGM production

1,289,545

100%

980,343

100%

627,991

100%

606,506

100%

309,202

100%

284,773

100%

298,649

100%

Ruthenium

139,466

139,466

86,415

81,099

Iridium

35,135

35,135

20,457

18,628

Total

1,464,146

1,154,944

734,863

706,233

309,202

284,773

298,649

Recycling operation

US OPERATIONS

Unit

Dec 2019

Jun 2019

Dec 2018

Average catalyst fed/dayTonne

27.5

26.3

20.3

Total processed

Tonne

4,760

3,728

5,068

Tolled

Tonne

763

1,157

467

Purchased

Tonne

4,306

3,604

3,260

PGM fed

3Eoz

431,681

421,450

326,346

PGM sold

3Eoz

394,273

355,814

237,220

PGM tolled returned

3Eoz

78,453

48,346

75,916

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 13

SA gold operations

SA OPERATIONS

Total SA gold1

Driefontein

Kloof

Beatrix

Cooke

DRDGOLD

Under-

Under-

Under-

Under-

Under-

Total

ground

Surface

ground

Surface

ground

Surface

ground

Surface

ground

Surface

Surface

Production

Tonnes milled/treated

000't

Dec 2019

21,655

2,839

18,816

732

-

985

2,616

1,086

138

36

2,079

13,983

Jun 2019

19,843

1,245

18,598

166

8

504

3,252

536

729

39

2,174

12,435

Dec 2018

18,149

2,672

15,477

684

306

864

2,588

1,050

386

74

2,293

9,904

Yield

g/t

Dec 2019

0.84

4.83

0.24

6.10

-

5.26

0.32

3.73

0.48

0.44

0.31

0.22

Jun 2019

0.54

4.89

0.25

4.16

0.38

7.33

0.36

3.15

0.42

0.41

0.29

0.20

Dec 2018

0.99

5.19

0.27

5.27

0.59

7.14

0.46

3.82

0.36

1.00

0.34

0.19

Gold produced

kg

Dec 2019

18,286

13,714

4,572

4,462

-

5,180

833

4,056

66

16

636

3,037

Jun 2019

10,723

6,087

4,636

690

3

3,692

1,158

1,689

307

16

623

2,545

Dec 2018

17,984

13,858

4,126

3,603

180

6,165

1,183

4,016

140

74

779

1,844

oz

Dec 2019

587,908

440,914

146,994

143,456

-

166,541

26,782

130,403

2,122

514

20,448

97,642

Jun 2019

344,752

195,701

149,051

22,184

96

118,700

37,231

54,303

9,870

514

20,030

81,824

Dec 2018

578,188

445,545

132,643

115,839

5,787

198,210

38,037

129,117

4,501

2,379

25,032

59,286

Gold sold

kg

Dec 2019

18,668

14,023

4,645

4,586

-

5,295

917

4,125

64

17

640

3,024

Jun 2019

10,075

5,510

4,565

507

3

3,505

1,112

1,483

306

15

616

2,528

Dec 2018

17,873

13,851

4,022

3,603

180

6,158

1,101

4,016

140

74

731

1,870

oz

Dec 2019

600,190

450,850

149,340

147,443

-

170,238

29,482

132,622

2,058

547

20,576

97,224

Jun 2019

323,917

177,149

146,768

16,300

96

112,688

35,752

47,679

9,838

482

19,805

81,277

Dec 2018

574,629

445,319

129,310

115,839

5,787

197,984

35,398

129,117

4,501

2,379

23,502

60,122

Price and costs

Gold price received

R/kg

Dec 2019

676,350

655,517

660,093

656,290

687,519

698,214

Jun 2019

597,360

582,157

586,528

586,585

596,989

597,152

Dec 2018

552,526

553,476

552,431

552,406

557,516

560,160

US$/oz

Dec 2019

1,432

1,388

1,398

1,390

1,456

1,478

Jun 2019

1,308

1,275

1,285

1,285

1,308

1,308

Dec 2018

1,212

1,214

1,212

1,212

1,223

1,229

Operating cost2

R/t

Dec 2019

455

2,658

122

3,413

-

3,134

205

1,799

115

208

157

102

Jun 2019

436

5,078

125

11,857

1,650

5,343

183

3,081

176

233

130

105

Dec 2018

509

2,722

148

3,881

253

3,130

194

1,815

102

126

187

104

US$/t

Dec 2019

31

181

8

232

-

213

14

122

8

14

11

7

Jun 2019

31

358

9

835

116

376

13

217

12

16

9

7

Dec 2018

36

192

10

274

18

221

14

128

7

9

13

7

R/kg

Dec 2019

538,696

550,284

503,937

559,973

-

595,946

642,857

481,632

240,909

468,750

513,050

470,695

Jun 2019

806,500

1,038,558

501,812

2,852,609

4,400,000

729,361

514,940

977,798

416,938

568,750

453,451

513,320

Dec 2018

532,081

524,894

556,222

736,747

430,000

438,683

423,382

474,527

280,714

125,676

550,862

557,050

US$/oz

Dec 2019

1,141

1,165

1,067

1,186

-

1,262

1,361

1,020

510

992

1,086

997

Jun 2019

1,767

2,275

1,099

6,248

9,638

1,598

1,128

2,142

913

1,246

993

1,124

Dec 2018

1,167

1,151

1,220

1,616

943

962

929

1,041

616

276

1,208

1,222

Adjusted EBITDA margin3%

Dec 2019

16

13

8

25

(39)

31

Jun 2019

(49)

(577)

(20)

(70)

(48)

14

Dec 2018

4

(32)

20

14

(33)

3

All-in sustaining cost4

R/kg

Dec 2019

636,405

695,137

718,014

558,558

554,795

504,464

Jun 2019

869,141

3,903,529

729,023

982,281

485,261

527,453

Dec 2018

596,100

866,984

517,096

532,603

443,106

569,893

US$/oz

Dec 2019

1,347

1,472

1,520

1,183

1,175

1,068

Jun 2019

1,904

8,550

1,597

2,152

1,063

1,155

Dec 2018

1,308

1,902

1,134

1,168

972

1,250

All-in cost4

R/kg

Dec 2019

652,143

695,137

730,876

558,892

554,795

508,069

Jun 2019

890,958

3,903,529

735,304

982,672

485,261

538,568

Dec 2018

629,296

867,010

526,615

532,940

443,106

732,086

US$/oz

Dec 2019

1,381

1,472

1,548

1,183

1,175

1,076

Jun 2019

1,952

8,550

1,611

2,152

1,063

1,180

Dec 2018

1,380

1,902

1,155

1,169

972

1,606

Capital expenditure

Total capital

expenditure5

Rm

Dec 2019

1,639.4

576.0

731.9

240.4

-

43.6

Jun 2019

426.2

99.9

205.5

65.4

-

38.2

Dec 2018

1,817.3

542.1

656.0

243.4

-

317.8

US$m

Dec 2019

112.7

39.7

50.2

16.5

-

3.0

Jun 2019

30.2

7.1

14.6

4.6

-

2.7

Dec 2018

128.2

38.2

46.3

17.2

-

22.4

Average exchange rates for the six months ended 31 December 2019, 30 June 2019 and 31 December 2018 were R14.69/US$, R14.20/US$ and R14.18/US$, respectively Figures may not add as they are rounded independently

  1. The SA gold operations' results for the six months ended 31 December 2018 include DRDGOLD for the five months since acquisition
  2. Operating cost is the average cost of production and calculated by dividing costs of sales, before amortisation and depreciation, and change in inventory, in a period by the tonnes milled/treated in the same period, and operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation, and change in inventory in a period by the gold produced in the same period
  3. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
  4. All-incost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total gold sold in the same period, For a reconciliation of cost of sales, before amortisation and depreciation to All-in cost, see "All-in costs - six months"
  5. Corporate project expenditure for the six months ended 31 December 2019, 30 June 2019 and 31 December 2018 was R47.5 million (US$3.3 million), R17.2 million (US$1.2 million) and R58.1 million (US$4.1 million), respectively, the majority of which related to the Burnstone project

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 14

CONDENSED CONSOLIDATED PROVISIONAL FINANCIAL STATEMENTS

Condensed consolidated income statement

Figures are in millions unless otherwise stated

US dollar

SA rand

Year ended

Six months ended

Six months ended

Year ended

Reviewed

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Revised

Unaudited

Reviewed

Audited

Dec 2018

Dec

2019

Dec 2018

Jun 2019

Dec 2019

Notes

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

3,826.0

5,043.3

1,883.7

1,657.4

3,385.9

Revenue

21

49,390.5

23,534.9

26,746.4

72,925.4

50,656.4

(3,635.1)

(4,378.6)

(1,788.1)

(1,661.1)

(2,717.5)

Cost of sales

(39,727.7)

(23,586.8)

(25,391.9) (63,314.5)

(48,129.0)

(3,135.6)

(3,879.7)

(1,540.0)

(1,455.1)

(2,424.6) Cost of sales, before amortisation and depreciation

(35,438.3) (20,662.1)

(21,872.8) (56,100.4)

(41,515.2)

(499.5)

(498.9)

(248.1)

(206.0)

(292.9)

Amortisation and depreciation

(4,289.4)

(2,924.7)

(3,519.1)

(7,214.1)

(6,613.8)

190.9

664.7

95.6

(3.7)

668.4

9,662.8

(51.9)

1,354.5

9,610.9

2,527.4

36.4

38.8

20.9

20.2

18.6

Interest income

273.1

287.3

290.8

560.4

482.1

(236.8)

(228.4)

(124.4)

(110.7)

(117.7)

Finance expense

2

(1,731.2)

(1,571.3)

(1,750.5)

(3,302.5)

(3,134.7)

(22.6)

(25.1)

(11.7)

(11.5)

(13.6)

Share-based payments

(200.3)

(163.0)

(164.7)

(363.3)

(299.4)

128.7

(416.0)

71.0

(37.7)

(378.3)

(Loss)/gain on financial instruments

3

(5,479.6)

(535.5)

993.9

(6,015.1)

1,704.1

88.3

22.5

71.2

3.7

18.8

Gain/(loss) on foreign exchange differences

272.9

52.6

959.0

325.5

1,169.1

26.0

49.9

9.9

18.0

31.9

Share of results of equity-accounted investees after tax

10

465.3

255.7

145.7

721.0

344.2

(53.3)

(126.3)

(23.1)

(52.3)

(74.0)

Net other costs

(1,083.1)

(743.1)

(333.2)

(1,826.2)

(705.2)

(43.5)

(53.0)

(20.9)

(21.4)

(31.6)

- Care and maintenance

(461.6)

(304.3)

(298.2)

(765.9)

(576.5)

- Change in estimate of environmental rehabilitation

obligation, and right of recovery receivable and

5.0

(6.1)

5.0

4.2

(10.3)

payable

(149.2)

60.3

66.6

(88.9)

66.6

(2.4)

(27.8)

(2.2)

(26.4)

(1.4)

- Strike related costs

(27.8)

(374.5)

(31.7)

(402.3)

(31.7)

7.7

(9.0)

4.2

(7.8)

(1.2)

- Service entity costs

(18.8)

(111.0)

59.2

(129.9)

102.0

(20.1)

(30.4)

(9.2)

(0.9)

(29.5)

- Other

(425.6)

(13.6)

(129.1)

(439.2)

(265.6)

Gain/(loss) on disposal of property, plant and

4.5

5.3

1.9

(0.3)

5.6

equipment

81.5

(4.9)

28.4

76.6

60.2

(229.7)

(5.9)

(224.9)

(6.6)

0.7

Impairments

4

7.1

(93.1)

(2,981.8)

(86.0)

(3,041.4)

76.3

-

77.7

(1.4)

Gain on acquisition

8.1

-

1,103.0

-

1,103.0

-

(10.8)

(86.6)

(3.1)

(44.6)

(42.0)

Restructuring costs

(619.2)

(633.2)

(48.4)

(1,252.4)

(142.8)

(30.4)

(31.0)

(14.7)

(6.9)

(24.1)

Transaction costs

(350.3)

(97.5)

(209.5)

(447.8)

(402.5)

Gain on derecognition of borrowings and derivative

17.4

-

17.4

-

-

financial instrument

11

-

-

230.0

-

230.0

(1.2)

2.7

(0.4)

-

2.7

Occupational healthcare expense

14

39.6

-

(5.2)

39.6

(15.4)

(92.6)

(59.1)

(114.4)

(154.7)

95.6

Profit/(loss) before royalties,carbon tax and tax

1,338.6

(2,194.9)

(1,491.0)

(856.3)

(1,224.3)

(16.1)

(29.8)

(7.7)

(8.3)

(21.5)

Royalties

(313.7)

(117.3)

(108.9)

(431.0)

(212.6)

-

(0.9)

-

-

(0.9)

Carbon tax

(12.9)

-

-

(12.9)

-

(108.7)

(89.8)

(122.1)

(163.0)

73.2

Profit/(loss) before tax

1,012.0

(2,312.2)

(1,599.9)

(1,300.2)

(1,436.9)

(81.9)

119.9

(75.0)

150.8

(30.9)

Mining and income tax

5

(408.5)

2,141.5

(999.1)

1,733.0

(1,083.8)

(7.2)

(127.8)

5.3

(46.2)

(81.6)

- Current tax

(1,192.4)

(656.3)

58.9

(1,848.7)

(95.3)

(74.7)

247.7

(80.3)

197.0

50.7

- Deferred tax

783.9

2,797.8

(1,058.0)

3,581.7

(988.5)

(190.6)

30.1

(197.1)

(12.2)

42.3

Profit/(loss) for the period

603.5

(170.7)

(2,599.0)

432.8

(2,520.7)

Profit/(loss) for the period attributable to:

(189.0)

4.5

(195.4)

(18.1)

22.6

- Owners of Sibanye-Stillwater

316.8

(254.7)

(2,576.3)

62.1

(2,499.6)

(1.6)

25.6

(1.7)

5.9

19.7

- Non-controlling interests

286.7

84.0

(22.7)

370.7

(21.1)

Earnings per ordinary share (cents)

(8)

-

(9)

(1)

1

Basic earnings per share

6.1

12

(11)

(114)

2

(110)

(8)

-

(9)

(1)

1

Diluted earnings per share

6.2

12

(11)

(114)

2

(110)

2,263,857

2,507,583

2,265,988

2,341,567

2,670,029

Weighted average number of shares ('000)

6.1

2,670,029

2,341,567

2,265,988

2,507,583

2,263,857

2,263,857

2,578,955

2,265,988

2,341,567

2,741,401

Diluted weighted average number of shares ('000)

6.2

2,741,401

2,341,567

2,265,988

2,578,955

2,263,857

13.24

14.46

14.18

14.20

14.69

Average R/US$ rate

The condensed consolidated provisional financial statements for the year and six months ended 31 December 2019 have been prepared by Sibanye-Stillwater's Group financial reporting team headed by Jacques Le Roux (CA (SA)). This process was supervised by the Group's Chief Financial Officer, Charl Keyter and approved by the Sibanye-Stillwater board of directors.

A convenience translation has been applied to the primary statements into US dollar based on the average exchange rate for the period for the condensed consolidated income statement, statements of other comprehensive income and cash flows, and the period-end closing exchange rate for the statement of financial position and exchange differences on translation are accounted for in the statement of other comprehensive income. This information is provided as supplementary information only.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 15

Condensed consolidated statement of other comprehensive income

Figures are in millions unless otherwise stated

US dollar

SA rand

Year ended

Six months ended

Six months ended

Year ended

Reviewed

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Revised

Unaudited

Reviewed

Audited

Dec 2018

Dec 2019

Dec 2018

Jun 2019

Dec 2019

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

(190.6)

30.1

(197.1)

(12.2)

42.3

Profit/(loss) for the period

603.5

(170.7)

(2,599.0)

432.8

(2,520.7)

Other comprehensive income

(137.8)

31.9

(37.6)

0.3

31.6

Other comprehensive income, net of tax

216.3

(682.2)

454.5

(465.9)

1,764.1

-

-

-

-

-

Foreign currency translation adjustments

79.6

(674.4)

409.9

(594.8)

1,719.1

3.4

8.9

3.4

(0.5)

9.4

Mark to market valuation1

136.7

(7.8)

44.6

128.9

45.0

(141.2)

23.0

(41.0)

0.8

22.2

Currency translation adjustments1,2

-

-

-

-

-

(328.4)

62.0

(234.7)

(11.9)

73.9

Total comprehensive income

819.8

(852.9)

(2,144.5)

(33.1)

(756.6)

Total comprehensive income attributable to:

(326.6)

36.4

(232.8)

(16.6)

53.0

- Owners of Sibanye-Stillwater

516.3

(919.4)

(2,119.4)

(403.1)

(733.1)

(1.8)

25.6

(1.9)

4.7

20.9

- Non-controlling interests

303.5

66.5

(25.1)

370.0

(23.5)

13.24

14.46

14.18

14.20

14.69

Average R/US$ rate

  1. These gains and losses will never be reclassified to profit or loss.
  2. The currency translation adjustments arise on the convenience translation of the SA rand amount to the US dollars.

Condensed consolidated statement of financial position

Figures are in millions unless otherwise stated

US dollar

SA rand

Reviewed

Unaudited

Unaudited

Unaudited

Reviewed

Revised

Audited

Dec 2018

Jun 2019

Dec 2019

Notes

Dec 2019

Jun 2019

Dec 2018

4,859.2

5,192.9

5,350.5

Non-current assets

74,908.1

73,220.5

69,727.7

3,802.0

3,997.6

4,105.7

Property, plant and equipment

57,480.2

56,366.5

54,558.2

-

27.1

25.8

Right-of-use assets

9

360.9

382.3

-

480.1

489.0

489.6

Goodwill

6,854.9

6,894.2

6,889.6

260.2

272.4

288.5

Equity-accounted investments

10

4,038.8

3,840.8

3,733.9

10.9

31.9

42.8

Other investments

598.7

450.4

156.0

278.7

322.4

328.7

Environmental rehabilitation obligation funds

4,602.2

4,546.3

3,998.7

21.9

47.1

48.8

Other receivables

683.5

663.9

314.4

5.4

5.4

20.6

Deferred tax assets

288.9

76.1

76.9

1,059.0

1,827.9

1,869.0

Current assets

26,163.7

25,772.6

15,195.3

369.0

1,007.8

1,107.4

Inventories

15,503.4

14,210.0

5,294.8

476.2

361.8

331.1

Trade and other receivables

4,635.0

5,101.6

6,833.0

2.5

3.5

3.7

Other receivables

51.2

49.0

35.2

33.7

23.2

25.4

Tax receivable

355.1

326.6

483.2

-

8.6

-

Non-current assets held for sale

-

120.7

-

177.6

423.0

401.4

Cash and cash equivalents

5,619.0

5,964.7

2,549.1

5,918.2

7,020.8

7,219.5

Total assets

101,071.8

98,993.1

84,923.0

1,723.2

2,145.8

2,224.1

Shareholders' equity

31,138.3

30,253.4

24,724.4

3,175.3

3,431.4

3,972.0

Non-current liabilities

55,606.7

48,383.2

45,566.0

1,276.4

1,535.2

1,692.7

Borrowings

11

23,697.9

21,645.9

18,316.5

28.5

67.4

296.1

Derivative financial instrument

11

4,144.9

950.6

408.9

-

20.4

19.5

Lease liabilities

12

272.8

287.8

-

438.6

572.1

622.5

Environmental rehabilitation obligation and other provisions

13

8,714.8

8,067.2

6,294.2

0.4

0.4

-

Post-retirement healthcare obligation

-

5.2

5.6

81.1

76.6

Occupational healthcare obligation

14

1,080.2

1,164.2

81.0

1,133.4

11.8

12.7

95.9

Share-based payment obligations

1,343.0

178.6

168.9

176.3

154.5

192.0

Other payables

15

2,687.5

2,179.0

2,529.2

454.7

476.9

492.6

Deferred revenue

16

6,896.5

6,724.5

6,525.3

-

-

4.2

Tax and royalties payable

59.1

-

-

707.5

515.2

475.5

Deferred tax liabilities

6,656.8

7,264.2

10,153.2

1,019.7

1,443.6

1,023.4

Current Liabilities

14,326.8

20,356.5

14,632.6

431.2

385.9

2.7

Borrowings

11

38.3

5,441.3

6,188.2

-

7.4

7.9

Lease liabilities

12

110.0

104.9

-

7.7

17.8

10.6

Occupational healthcare obligation

14

148.7

251.2

109.9

4.0

4.2

5.9

Share-based payment obligations

82.1

59.7

56.8

547.5

788.1

819.0

Trade and other payables

11,465.9

11,112.8

7,856.3

21.1

47.5

54.4

Other payables

15

761.4

669.5

303.3

2.1

152.2

90.8

Deferred revenue

16

1,270.6

2,145.8

30.1

6.1

40.5

32.1

Tax and royalties payable

449.8

571.3

88.0

5,918.2

7,020.8

7,219.5

Total equity and liabilities

101,071.8

98,993.1

84,923.0

14.35

14.10

14.00

Closing R/US$ rate

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 16

Condensed consolidated statement of changes in equity

Figures are in millions unless otherwise stated

US dollar

SA rand

Accum-

Non-

Non-

Accum-

Stated

Other

ulated

controlling

Total

Total

controlling

ulated

Other

Stated

capital

reserves

loss

interests

equity

Notes

equity

interests

loss

reserves

capital

3,367.6

510.2

(1,937.8)

1.6

1,941.6

Balance at 31 December 2017 (Audited)

23,998.2

19.8

(13,257.6)

2,569.0

34,667.0

-

(137.6)

(189.0)

(1.8)

(328.4)

Total comprehensive income for the period

(756.6)

(23.5)

(2,499.6)

1,766.5

-

-

-

(189.0)

(1.6)

(190.6)

Loss for the period

(2,520.7)

(21.1)

(2,499.6)

-

-

-

(137.6)

-

(0.2)

(137.8)

Other comprehensive income

1,764.1

(2.4)

-

1,766.5

-

-

-

-

-

-

Dividends paid

(0.6)

(0.6)

-

-

-

-

21.3

-

-

21.3

Share-based payments

281.7

-

-

281.7

-

-

-

-

69.4

69.4

Acquisition of subsidiary with non-controlling

940.3

940.3

-

-

-

interests

-

-

19.3

-

19.3

Transaction with DRDGOLD shareholders

261.4

-

261.4

-

-

3,367.6

393.9

(2,107.5)

69.2

1,723.2

Balance at 31 December 2018 (Audited)

24,724.4

936.0

(15,495.8)

4,617.2

34,667.0

-

31.9

4.5

25.6

62.0

Total comprehensive income for the period

(33.1)

370.0

62.1

(465.2)

-

-

-

4.5

25.6

30.1

Profit for the period

432.8

370.7

62.1

-

-

-

31.9

-

-

31.9

Other comprehensive income

(465.9)

(0.7)

-

(465.2)

-

-

-

-

(6.0)

(6.0)

Dividends paid

(85.0)

(85.0)

-

-

-

-

20.1

-

-

Share-based payments

-

-

290.3

-

20.1

290.3

120.2

-

-

-

120.2

Shares issued for cash1

1,688.4

-

-

-

1,688.4

288.1

-

-

-

288.1

Shares issued on Lonmin acquisition2

8.1

4,306.6

-

-

-

4,306.6

-

-

-

16.5

16.5

Acquisition of subsidiary with non-controlling

8.1

247.0

247.0

-

-

-

interests

-

-

-

-

-

Transaction with DRDGOLD shareholders

(0.3)

(0.3)

-

-

-

3,775.9

445.9

(2,103.0)

105.3

2,224.1

Balance at 31 December 2019 (Reviewed)

31,138.3

1,467.7

(15,433.7)

4,442.3

40,662.0

  1. On 15 April 2019, Sibanye-Stillwater raised net capital of R1.7 billion from a placing of 108,932,356 new ordinary no par value shares to existing and new institutional investors
  2. On 10 June 2019, 290,394,531 shares were issued to the shareholders of Lonmin Plc (refer to note 8.1)

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 17

Condensed consolidated statement of cash flows

Figures are in millions unless otherwise stated

US dollar

SA rand

Year ended

Six months ended

Six months ended

Year ended

Reviewed

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Revised

Unaudited

Reviewed

Audited

Dec 2018

Dec 2019

Dec 2018

Jun 2019

Dec 2019

Notes

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Cash flows from operating activities

657.3

730.3

362.9

68.2

662.1

Cash generated by operations

9,591.8

968.0

5,078.5

10,559.8

8,702.4

495.1

197.7

495.1

123.3

74.4

Deferred revenue advance received

16

1,108.0

1,751.3

6,555.4

2,859.3

6,555.4

(1.6)

(6.3)

(1.0)

(1.3)

(5.0)

Cash-settledshare-based payments paid

(72.1)

(18.8)

(14.2)

(90.9)

(21.7)

(80.8)

(43.3)

(41.1)

(31.6)

(11.7)

Change in working capital

(176.6)

(449.0)

(581.6)

(625.6)

(1,070.0)

1,070.0

878.4

815.9

158.6

719.8

10,451.1

2,251.5

11,038.1

12,702.6

14,166.1

14.7

18.6

7.6

4.3

14.3

Interest received

207.8

60.6

107.1

268.4

194.7

(122.4)

(110.9)

(54.4)

(55.4)

(55.5)

Interest paid

(816.0)

(787.1)

(783.3)

(1,603.1)

(1,620.8)

(17.7)

(28.5)

(11.8)

(4.3)

(24.2)

Royalties paid

(349.9)

(61.6)

(161.3)

(411.5)

(234.4)

(23.2)

(97.3)

(25.6)

(9.6)

(87.7)

Tax paid

(1,271.5)

(135.9)

(337.2)

(1,407.4)

(307.8)

-

(5.9)

-

-

(5.9)

Dividends paid

(84.7)

(0.3)

-

(85.0)

(0.6)

921.4

654.4

731.7

93.6

560.8

Net cash from operating activities

8,136.8

1,327.2

9,863.4

9,464.0

12,197.2

Cash flows from investing activities

(534.8)

(532.9)

(285.7)

(181.9)

(351.0)

Additions to property, plant and equipment

(5,122.7)

(2,583.2)

(4,014.8)

(7,705.9)

(7,080.7)

Proceeds on disposal of property, plant and

6.2

7.0

2.9

1.1

5.9

equipment

86.0

15.0

41.5

101.0

81.9

-

(8.9)

-

(5.3)

(3.6)

Acquisition of subsidiaries

(54.3)

(74.7)

-

(129.0)

-

21.7

207.8

21.7

211.4

(3.6)

Cash acquired on acquisition of subsidiaries

8

1.8

3,002.5

282.8

3,004.3

282.8

9.5

7.7

9.5

4.7

3.0

Dividends received

44.5

66.5

125.2

111.0

125.2

Contributions to environmental rehabilitation

(8.6)

(0.9)

(7.1)

3.3

(4.2)

funds

(60.4)

47.5

(93.6)

(12.9)

(95.3)

Payment of Deferred Payment (related to the

-

(19.6)

(2.9)

(20.0)

0.4

Rustenburg operations acquisition)

15

-

(283.4)

(38.6)

(283.4)

(38.6)

Loan advanced to equity-accounted

(0.2)

-

-

-

-

investee

-

-

(0.8)

-

(3.1)

(103.9)

(22.1)

(103.9)

-

(22.1)

Payments to dissenting shareholders

15

(319.4)

-

(1,375.8)

(319.4)

(1,375.8)

19.3

-

19.3

-

-

Proceeds on loss of control of subsidiaries

-

-

256.1

-

256.1

Proceeds with transfer of assets to joint

-

2.1

-

-

2.1

operation

30.6

-

-

30.6

-

9.2

12.9

7.8

-

12.9

Preference shares redeemed

10

186.9

-

102.8

186.9

102.8

Proceeds on disposal of marketable securities

0.1

-

0.1

-

-

investments

-

-

1.2

-

1.2

Proceeds from environmental rehabilitation

-

10.5

-

-

10.5

funds

151.9

-

-

151.9

-

(581.5)

(336.4)

(338.3)

13.3

(349.7)

Net cash (used)/from investing activities

(5,055.1)

190.2

(4,714.0)

(4,864.9)

(7,743.5)

Cash flows from financing activities

1,293.8

1,312.7

643.7

1,117.0

195.7

Loans raised

11

3,119.9

15,861.8

9,127.4

18,981.7

17,130.2

(1,603.6)

(1,522.0)

(1,002.3)

(1,086.0)

(436.0)

Loans repaid

11

(6,586.4)

(15,421.9)

(13,829.6)

(22,008.3)

(21,231.5)

-

(9.1)

-

(3.6)

(5.5)

Lease payments

(80.8)

(50.9)

-

(131.7)

-

-

118.9

-

118.9

-

Proceeds from share issue

-

1,688.4

-

1,688.4

-

(309.8)

(99.5)

(358.6)

146.3

(245.8)

Net cash (used)/from financing activities

(3,547.3)

2,077.4

(4,702.2)

(1,469.9)

(4,101.3)

Net (decrease)/increase in cash and cash

30.1

218.5

34.8

253.2

(34.7)

equivalents

(465.6)

3,594.8

447.2

3,129.2

352.4

Effect of exchange rate fluctuations on cash

(19.4)

5.3

(10.1)

(7.8)

13.1

held

119.9

(179.2)

2.3

(59.3)

134.3

Cash and cash equivalents at beginning of

166.9

177.6

152.9

177.6

423.0

the period

5,964.7

2,549.1

2,099.6

2,549.1

2,062.4

Cash and cash equivalents at end of the

177.6

401.4

177.6

423.0

401.4

period

5,619.0

5,964.7

2,549.1

5,619.0

2,549.1

13.24

14.46

14.18

14.20

14.69

Average R/US$ rate

14.35

14.00

14.35

14.10

14.00

Closing R/US$ rate

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 18

Notes to the condensed consolidated provisional financial statements

1. Basis of accounting and preparation

The condensed consolidated provisional financial statements are prepared in accordance with the requirements of the JSE Listings Requirements for provisional reports and the requirements of the Companies Act of South Africa. The JSE Listings Requirements require provisional reports to be prepared in accordance with framework concepts, and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), and the South African Institute of Chartered Accountants Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain information required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of these condensed consolidated provisional financial statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements, except for the adoption of IFRS 16 Leases, as set out below.

The condensed consolidated income statement, and statements of other comprehensive income and cash flows for the six months ended 31 December 2018 were not reviewed by the Company's auditor and were prepared by subtracting the reviewed condensed consolidated financial statements for the six months ended 30 June 2018 from the audited comprehensive consolidated financial statements for the year ended 31 December 2018. The condensed consolidated income statement, and statements of other comprehensive income and cash flows for the six months ended 31 December 2019 have not been reviewed by the Company's auditor and were prepared by subtracting the reviewed condensed consolidated financial statements for the six months ended 30 June 2019 from the reviewed condensed consolidated provisional financial statements for the year ended 31 December 2019.

The translation of the primary statements into US dollar is based on the average exchange rate for the period for the condensed consolidated income statement, statements of other comprehensive income and cash flows, and the period-end closing exchange rate for the statement of financial position. Exchange differences on translation are accounted for in the statement of other comprehensive income. This information is provided as supplementary information only.

1.1 Standards, interpretations and amendments to published standards effective on 1 January 2019 issued, effective and adopted by the Group

IFRS 16 Leases was adopted with effect from 1 January 2019. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for most leases under a single on-balance sheet model. IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15Operating Leases-Incentives and SIC-27Evaluating the Substance of Transactions Involving the Legal Form of a Lease. Under the new standard, all lease contracts, with limited exceptions, are recognised in the financial statements by way of right-of-use assets and corresponding lease liabilities. As a practical expedient, Sibanye-Stillwater applied the modified retrospective transition method, and consequently comparative information is not restated. The Group also elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low value (low-value assets). In addition, certain variable lease payments are not permitted to be recognised as lease liabilities and are expensed as incurred.

Under the modified retrospective transition approach, lease payments were discounted at 1 January 2019 using an incremental borrowing rate representing the rate of interest that the entity within the Sibanye-Stillwater Group which entered into the lease would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The average rate applied is 4.05% for the US operations and 9.22% for the SA operations.

Lease liabilities were measured at the present value of the remaining lease payments, discounted using entity-specific incremental borrowing rates. After initial recognition, the lease liabilities are measured at amortised cost using the effective interest method. The impact of adopting of the new accounting standard on the statement of financial position on 1 January 2019 was as follows:

  • increase in right-of-use assets by R302.0 million
  • increase in lease liabilities by R302.0 million
  • no impact on accumulated loss

The right-of-use assets comprise the initial measurement of the corresponding lease liability and restoration costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease (refer note 9).

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 19

2. Finance expense

Figures in million - SA rand

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Notes

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Interest charge on:

Borrowings - interest

(768.4)

(676.5)

(771.6)

(1,444.9)

(1,572.5)

- US$600 million revolving credit facility (RCF)

(212.0)

(23.1)

(21.1)

(235.1)

(26.0)

- R6.0 billion RCF and R5.5 billion RCF (Rand Facilities)

(166.8)

(267.8)

(287.4)

(434.6)

(568.0)

- 2022 and 2025 Notes

(336.3)

(333.8)

(408.9)

(670.1)

(836.6)

- US$ Convertible Bond

(53.3)

(51.8)

(54.2)

(105.1)

(105.9)

- US$350 million RCF

-

-

-

-

(36.0)

Borrowings - unwinding of amortised cost

11

(191.1)

(183.3)

(356.8)

(374.4)

(538.3)

- 2022 and 2025 Notes

(24.9)

(23.0)

(169.2)

(47.9)

(196.7)

- US$ Convertible Bond

(101.3)

(95.5)

(96.3)

(196.8)

(185.8)

- Burnstone Debt

(57.5)

(62.6)

(88.4)

(120.1)

(152.9)

- Other

(7.4)

(2.2)

(2.9)

(9.6)

(2.9)

Lease liabilities

12

(19.8)

(14.1)

-

(33.9)

-

Environmental rehabilitation obligation

13

(322.6)

(256.1)

(209.3)

(578.7)

(398.8)

Occupational healthcare obligation

14

(58.2)

(57.3)

(54.8)

(115.5)

(105.4)

Deferred Payment (related to the Rustenburg operations acquisition)

15

(89.5)

(89.5)

(100.2)

(179.0)

(200.4)

Dissenting shareholders

15

(10.7)

(10.5)

(25.2)

(21.2)

(68.1)

Deferred revenue1,2

16

(202.9)

(149.4)

(160.3)

(352.3)

(160.3)

Other

(68.0)

(134.6)

(72.3)

(202.6)

(90.9)

Total finance expense

(1,731.2)

(1,571.3)

(1,750.5)

(3,302.5)

(3,134.7)

  1. For the six months ended 31 December 2019, finance expense includes R162 million non-cash interest relating to the gold and palladium streaming arrangement with Wheaton Precious Metals International (Wheaton International). Although there is no cash financing cost related to this arrangement, IFRS 15 requires Sibanye-Stillwater to recognise a notional financing charge due to the significant time delay between receiving the upfront streaming payment and satisfying the related metal credit deliveries. A discount rate of 5.2% and 4.6% was used in determining the finance expense to be recognised as part of the steaming transaction for gold and palladium, respectively
  2. For the six months ended 31 December 2019, finance expense includes R41 million non-cash interest relating to the Marikana operations streaming transaction on its Bulk Tailings re- Treatment plant (BTT)

3. (Loss)/gain on financial instruments

Figures in million - SA rand

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Notes

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Fair value loss on rand gold forward sale contracts1

(107.3)

(2.8)

(89.4)

(110.1)

(180.6)

Fair value (loss)/gain on derivative financial instrument

11

(3,358.8)

(552.7)

(132.0)

(3,911.5)

678.1

Fair value adjustment of share-based payment obligations2

(1,207.9)

(10.0)

271.5

(1,217.9)

249.9

(Loss)/gain on the revised cash flow of the Deferred Payment

15

(724.1)

-

150.6

(724.1)

150.6

Fair value (loss)/gain on foreign currency hedge

-

-

(6.3)

-

25.3

(Loss)/gain on the revised cash flow of the Burnstone Debt

11

(96.6)

-

804.6

(96.6)

804.6

Other

15.1

30.0

(5.1)

45.1

(23.8)

Total (loss)/gain on financial instruments

(5,479.6)

(535.5)

993.9

(6,015.1)

1,704.1

  1. At the end of 2017 and during 2018, Sibanye-Stillwater began a hedging programme for Sibanye Gold Limited and Rand Uranium Proprietary Limited by entering into commodity hedging contracts. The contracts comprise gold zero cost collars which establish a minimum (floor) and maximum (cap) gold sales price. At 31 December 2019, the net rand gold forward sale contracts financial liability was R68.3 million, realised loss was R284.6 million and unrealised gain was R174.5 million. As hedge accounting is not applied, resulting gains or losses are accounted for as gains or losses on financial instruments in profit or loss
  2. The fair value adjustment on the share-based payment obligation relate to the Rustenburg BEE transaction (refer note 17.1) The fair value is based on the discounted cash flow forecast over the life of mine of Rustenburg using a discount rate of 13.64%

4. Impairments

Figures in million - SA rand

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Notes

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Impairment of property, plant and equipment

61.4

(66.5)

(2,543.7)

(5.1)

(2,603.3)

Impairment of goodwill

8.3

(54.3)

-

(436.3)

(54.3)

(436.3)

Impairment of equity-accounted investee

10

-

(12.3)

-

(12.3)

-

Impairment of loan to equity-accounted investee

10

-

(14.3)

(1.8)

(14.3)

(1.8)

Total impairments

7.1

(93.1)

(2,981.8)

(86.0)

(3,041.4)

The annual life-of-mineplan takes into account the following:

  • Proved and probable ore reserves of the cash-generating units;
  • Resources valued using appropriate price assumptions;
  • Cash flows based on the life-of-mine plan; and
  • Capital expenditure estimates over the life-of-mine plan.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 20

The Group's estimates and assumptions used in the 31 December 2019 calculation include:

PGM operations

Gold operations

Audited

Reviewed

Reviewed

Audited

Dec 2018

Dec 2019

Dec 2019

Dec 2018

Long-term gold price

R/kg

686,225

585,500

15,050

20,600

R/4Eoz

Long-term PGM (4E) basket price

1,010

1,250

US$/2Eoz

Long-term PGM (2E) basket price

14.3

13.6

%

Nominal discount rate - South Africa1

%

12.4

12.6

7.0

7.6

%

Nominal discount rate - United States

5.0

5.0

%

Inflation rate - South Africa

%

5.0

5.0

1.9

2.0

%

Inflation rate - United States

12 - 28

13 - 35

years

Life of mine

years

6 - 18

5 - 20

1 Nominal discount rate for Burnstone and Mimosa of 17.1% and 23.3%, respectively

5. Mining and income tax

Figures in million - SA rand

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Tax on loss/(profit) before tax at maximum South African statutory company tax rate

(286.3)

650.4

447.9

364.1

402.3

(28%)

South African gold mining tax formula rate adjustment

68.8

(261.4)

(97.2)

(192.6)

(53.0)

US statutory tax rate adjustment

138.4

67.0

33.9

205.4

19.4

Non-deductible amortisation and depreciation

(14.7)

-

-

(14.7)

(21.2)

Non-taxable dividend received

2.1

-

-

2.1

15.4

Non-deductible finance expense

(60.6)

(25.7)

(118.2)

(86.3)

(118.2)

Non-deductibleshare-based payments

(41.9)

(39.4)

(43.3)

(81.3)

(78.9)

(Non-deductibleloss)/non-taxable gain on fair value of financial instruments

(543.2)

(27.9)

171.0

(571.1)

136.9

(Non-deductibleloss)/non-taxable gain on foreign exchange differences

1.2

(1.2)

244.1

-

250.3

Non-taxable share of results of equity-accounted investees

130.3

71.6

40.8

201.9

96.4

Non-deductible impairments

2.3

(24.2)

(122.7)

(21.9)

(123.2)

Non-taxable gain on acquisition

2.9

305.9

-

308.8

-

Non-deductible transaction costs

(67.5)

(26.9)

(110.0)

(94.4)

(110.0)

Tax adjustment in respect of prior periods

12.4

-

(46.6)

12.4

51.4

Net other non-taxable income and non-deductible expenditure

461.9

71.7

65.9

533.6

121.0

Change in estimated deferred tax rate1

7.0

1,544.0

(1,295.2)

1,551.0

(1,295.2)

Deferred tax assets not recognised

(221.5)

(162.4)

(169.5)

(383.9)

(377.2)

Mining and income tax

(408.4)

2,141.5

(999.1)

1,733.1

(1,083.8)

1 During Q1 2019, the US PGM operations renegotiated its refining and certain sales agreements, resulting in the reversal of the Group deferred tax charge of R1,567 million (US$110 million) recognised in December 2018. The 2019 effective combined federal and state cash tax rates for the US segment are expected to be between 5% and 10%. The change of tax is a result of sales moving to a different tax jurisdiction

6. Earnings per share

6.1 Basic earnings per share

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Ordinary shares in issue ('000)

2,670,029

2,670,029

2,266,261

2,670,029

2,266,261

Bonus element of the capitalisation issue ('000)

-

-

-

-

402

Adjustment for weighting of ordinary shares in issue ('000)

-

(328,462)

(273)

(162,446)

(2,806)

Adjusted weighted average number of shares ('000)

2,670,029

2,341,567

2,265,988

2,507,583

2,263,857

Profit/(loss) attributable to owners of Sibanye-Stillwater (SA rand million)

316.8

(254.7)

(2,576.3)

62.1

(2,499.6)

Basic earnings per share (EPS) (cents)

12

(11)

(114)

2

(110)

6.2 Diluted earnings per share

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Weighted average number of shares

Adjusted weighted average number of shares ('000)

2,670,029

2,341,567

2,265,988

2,507,583

2,263,857

Potential ordinary shares ('000)

71,372

-

-

71,372

-

Diluted weighted average number of shares ('000)

2,741,401

2,341,567

2,265,988

2,578,955

2,263,857

Diluted earnings per share (DEPS) (cents)

12

(11)

(114)

2

(110)

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 21

6.3 Headline earnings per share

Figures in million - SA rand

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Profit/(loss) attributable to owners of Sibanye-Stillwater

316.8

(254.7)

(2,576.3)

62.1

(2,499.6)

Gain on disposal of property, plant and equipment

(81.5)

4.9

(28.4)

(76.6)

(60.2)

Impairments

(7.1)

93.1

2,981.8

86.0

3,041.4

Impairment of equity accounted associate

21.0

-

-

21.0

-

Gain on acquisition

-

(1,103.0)

-

(1,103.0)

-

Taxation effect of remeasurement items

2.5

(3.2)

(494.7)

(0.7)

(498.2)

Re-measurement items, attributable to non-controlling interest

3.2

(0.2)

-

3.0

-

Headline earnings

254.9

(1,263.1)

(117.6)

(1,008.2)

(16.6)

Headline earnings per share (HEPS) (cents)

10

(54)

(5)

(40)

(1)

6.4 Diluted headline earnings per share

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Diluted headline earnings per share (DHEPS) (cents)

9

(54)

(5)

(40)

(1)

7. Dividends Dividend policy

Sibanye-Stillwater's dividend policy is to return at least 25% to 35% of normalised earnings to shareholders and after due consideration of future requirements the dividend may be increased beyond these levels. The Board, therefore, considers normalised earnings in determining what value will be distributed to shareholders. The Board believes normalised earnings provides useful information to investors regarding the extent to which results of operations may affect shareholder returns. Normalised earnings is defined as earnings attributable to the owners of Sibanye-Stillwater excluding gains and losses on financial instruments and foreign exchange differences, impairments, gain on disposal of property, plant and equipment, occupational healthcare expense, restructuring costs, transactions costs, share-based payment on BEE transaction, gain on acquisition, other business development costs, share of results of equity-accounted investees, after tax, and changes in estimated deferred tax rate.

In line with Sibanye-Stillwater's strategic priority of deleveraging, the Board of Directors resolved not to pay a final dividend. Sibanye-Stillwater expects to resume dividend payments in H1 2020, based on the current deleveraging trajectory and subject to current commodity prices.

Figures in million - SA rand

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Profit/(loss) attributable to the owners of Sibanye-Stillwater

316.8

(254.7)

(2,576.3)

62.1

(2,499.6)

Adjusted for:

Loss/(gain) on financial instruments

5,479.6

535.5

(993.9)

6,015.1

(1,704.1)

(Gain)/loss on foreign exchange differences

(272.9)

(52.6)

(959.0)

(325.5)

(1,169.1)

(Gain)/loss on disposal of property, plant and equipment

(81.5)

4.9

(28.4)

(76.6)

(60.2)

Impairments

(7.1)

93.1

2,981.8

86.0

3,041.4

Gain on acquisition

-

(1,103.0)

-

(1,103.0)

-

Restructuring costs1

619.2

633.2

48.4

1,252.4

142.8

Transaction costs

350.3

97.5

209.5

447.8

402.5

Gain on derecognition of borrowings

-

-

(230.0)

-

(230.0)

Occupational healthcare expense

(39.6)

-

5.2

(39.6)

15.4

Other

30.1

5.4

18.7

(30.1)

-

Change in estimated deferred tax rate

(7.0)

(1,544.0)

1,295.2

(1,551.0)

1,295.2

Share of results of equity-accounted investees after tax

(255.7)

(145.7)

(344.2)

(465.3)

(721.0)

Tax effect of the items adjusted above

(1,348.5)

(295.3)

(527.9)

(1,643.8)

(345.7)

NCI effect of the items listed above

(42.7)

-

-

(42.7)

-

Normalised earnings2

4,471.2

(2,111.0)

(915.7)

2,360.2

(1,436.9)

  1. Restructuring costs of R619 million were incurred at the Marikana operations for the six months ended 31 December 2019. Restructuring costs of R633.2 million for the six months ended 30 June 2019 include R246.8 million voluntary separation agreements at the Marikana operations and R386.4 million at the SA gold operations
  2. Normalised earnings is a pro forma performance measure and is not a measure of performance under IFRS, may not be comparable to similarly titled measures of other companies, and should not be considered in isolation or as alternatives to profit before tax, profit for the year, cash from operating activities or any other measure of financial performance presented in accordance with IFRS

8. Acquisition

8.1 Lonmin acquisition (Revised)

On 14 December 2017, Sibanye-Stillwater announced that it had reached an agreement with Lonmin Plc (Lonmin) on the terms of a recommended all-share offer to acquire the entire issued and to be issued ordinary share capital of Lonmin (the Lonmin Acquisition). The Lonmin Acquisition was effected by means of a scheme of arrangement between Lonmin and the Lonmin shareholders under Part 26 of the UK Companies Act. Under the initial terms of the Lonmin Acquisition, each Lonmin shareholder was entitled to receive: 0.967 new Sibanye- Stillwater shares for each Lonmin share (Initial offer).

On 15 May 2018, Sibanye-Stillwater received South African Reserve Bank approval for the proposed acquisition of Lonmin and on 28 June 2018, the proposed Lonmin transaction was unconditionally cleared by the UK Competition and Markets Authority. On 21 November 2018, Sibanye-Stillwater announced that the Competition Tribunal had approved the proposed acquisition of Lonmin, subject to specific conditions. In addition to the conditions agreed between Sibanye-Stillwater and the Competition Commission, a further condition had been imposed by the Competition Tribunal, namely a moratorium on retrenchments at the Lonmin operations for a period of six months from the implementation date.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 22

On 25 April 2019, the boards of Sibanye-Stillwater and Lonmin reached agreement on the terms of an increased recommended all-share offer pursuant to which Sibanye-Stillwater, and/or a wholly owned subsidiary of Sibanye-Stillwater, was to acquire the entire issued and to be issued ordinary share capital of Lonmin (the Increased Offer). Under the terms of the Increased Offer, Lonmin shareholders was entitled to receive one new Sibanye-Stillwater share for each Lonmin share.

The Lonmin Transaction (or scheme) was approved by the UK Court and on 7 June 2019 (effective date) and all the conditions precedent to the Lonmin Transaction were fulfilled. Sibanye-Stillwater obtained control of Lonmin on this date. The effective date of the implementation of the Lonmin Transaction was 10 June 2019, when Lonmin's listing on the Financial Conduct Authority's Official List and the trading of Lonmin shares on the London Stock Exchange's Main Market for listed securities was suspended, and 290,394,531 new Sibanye-Stillwater shares were listed on the Johannesburg Stock Exchange.

The year end of Lonmin has been changed to 31 December 2019 and Lonmin is consolidated from the effective date. For the seven months ended 31 December 2019, the Marikana operations contributed revenue of R11,188 million and a net profit of R1,881 million to the Group's results.

The purchase price allocation (PPA) for the 6 months ended 30 June 2019 was prepared on a provisional basis in accordance with IFRS 3 Business Combinations. During the measurement period, management provisionally revised the initial PPA due to new information obtained in accordance with the IFRS 3.

Consideration

The fair value of the consideration is as follows:

Figures in million - SA rand

Reviewed

Jun 2019

Equity instruments (290,394,531 ordinary shares)

4,306.6

Total consideration

4,306.6

Acquisition related costs

The Group incurred acquisition related costs of R233.1 million on advisory and legal fees. These costs are recognised as transaction costs in profit or loss during the period in which incurred.

Identified assets acquired and liabilities assumed

The following table summarises the recognised amounts of assets acquired and liabilities assumed at the acquisition date:

Figures in million - SA rand

Reviewed

Revised

Notes

Jun 2019

Property, plant and equipment

3,158.6

Right-of-use assets

9

133.3

Other investments

320.8

Environmental rehabilitation obligation funds

443.2

Other non-current assets

395.0

Inventories

5,219.5

Trade and other receivables

925.3

Other current assets

14.6

Cash and cash equivalents

2,999.3

Lease liabilities

12

(133.3)

Environmental rehabilitation obligation and other provisions

13

(1,696.9)

Other non-current liabilities

(863.0)

Borrowings

11

(2,574.8)

Trade and other payables

(2,585.7)

Other current liabilities

(99.3)

Total fair value of identifiable net assets acquired1

5,656.6

1 The fair value of assets and liabilities excluding property, plant and equipment, inventories, borrowings, non-current liabilities and environmental rehabilitation obligation approximate the carrying value

The fair value of property, plant and equipment was based on the expected discounted cash flows of the expected ore reserves and costs to extract the ore discounted at a real discount rate of 13.5% for the Marikana operations, an average platinum price of US$1,025/oz and an average palladium price of US$1,170/oz

The fair value of inventories was based on the estimated selling price less costs to complete and costs to sell

The fair value of borrowings is based on the settlement price. The Group restructured the Lonmin group entities funding arrangements to optimise financing costs. The Lonmin Pangaea Investments Management Limited (PIM) prepayment arrangement of US$174.3 million was fully settled by cash on hand and available within the Lonmin group on 5 July 2019

The fair value of other non-current liabilities is calculated based on a discounted cash flows using an effective discount rate of 12.5%

The fair value of environmental rehabilitation obligation is calculated with updated life of mines used in the discounted cash flows of property, plant and equipment

Gain on acquisition

A gain on acquisition has been recognised as follows:

Figures in million - SA rand

Reviewed

Revised

Jun 2019

Consideration

4,306.6

Fair value of identifiable net assets acquired

(5,656.6)

Non-controlling interest, based on the proportionate interest in the recognised amounts of assets and liabilities1

247.0

Gain on acquisition

(1,103.0)

1 The amount recognised as non-controlling interest represents the non-controlling interest holders' effective proportionate share of the fair value of the identifiable net assets acquired

The excess of the fair value of the net assets acquired over the consideration is recognised immediately in profit or loss as a gain on acquisition. The gain on acquisition is attributable to the transaction being attractively priced.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 23

8.2 SFA (Oxford) acquisition

On 21 February 2019, Sibanye-Stillwater announced it had agreed to acquire SFA (Oxford) Limited (SFA Oxford)), an established analytical consulting company that is a globally recognised authority on PGMs and has for several years provided in-depth market intelligence on battery materials and precious metals for industrial, automotive, and smart city technologies.

The purchase consideration comprises an upfront payment of GBP4 million (R74.7 million) at the closing of the transaction and contingent consideration, subject to a maximum payment of GBP6 million (refer note 15).

The acquisition was subject to the fulfilment of various conditions precedent which were completed on 4 March 2019. Sibanye-Stillwater obtained control (100%) on this date.

The PPA has been prepared on a provisional basis in accordance with IFRS 3. If new information obtained within one year of the acquisition date, about facts and circumstances that existed at the acquisition date, identifies adjustments to the below amounts or any additional provisions that existed at the date of acquisition, then the accounting for the acquisition will be revised.

Figures in million - SA rand

Reviewed

Jun 2019

Consideration

127.1

Fair value of identifiable net assets acquired

(4.4)

Goodwill

122.7

The goodwill is attributable to the talent and skills of SFA (Oxford)'s workforce.

The goodwill has been allocated to the Stillwater, Rustenburg and Kroondal cash generating units. None of the goodwill recognised is expected to be deducted for tax purposes.

8.3 Qinsele Resources

On 29 October 2019, Sibanye-Stillwater entered in to a sale of shares agreement (the agreement) to buy the entire issued share capital of Qinisele Resources, a boutique advisory company that specialises in corporate finance, investor relations and research for a total of R54.8 million.

The acquisition was subject to the fulfilment of various conditions precedent which were completed on 31 October 2019 and Sibanye- Stillwater obtained control (100%) on 1 November 2019 (acquisition date).

The PPA has been prepared on a provisional basis in accordance with IFRS 3. If new information obtained within one year of the acquisition date, about facts and circumstances that existed at the acquisition date, identifies adjustments to the below amounts or any additional provisions that existed at the date of acquisition, then the accounting for the acquisition will be revised.

Figures in million - SA rand

Reviewed

Jun 2019

Consideration

54.8

Fair value of identifiable net assets acquired

(0.5)

Goodwill

54.3

The goodwill is attributable to the experience and skills of Qinisele's workforce.

The goodwill cannot be attributed to any current Sibanye-Stillwater operating cash generating units. None of the goodwill recognised is expected to be deducted for tax purposes. The goodwill resulting from the application of IFRS 3 has been impaired at year-end (refer note 4).

9. Right-of-use assets

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

There were no onerous lease contracts that would require an adjustment to the right-of-use assets at the date of initial application.

Figures in million - SA rand

Six months ended

Year ended

Unaudited

Reviewed

Unaudited

Reviewed

Audited

Note

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Impact of adopting IFRS 16 on 1 January 2019

382.3

302.0

-

302.0

-

Additions and modifications

43.6

-

-

43.6

-

Right-of-use assets acquired on acquisition of subsidiaries

8.1

-

133.3

-

133.3

-

Depreciation

(64.5)

(47.2)

-

(111.7)

-

Transfers and other movements

-

(5.7)

-

(5.7)

-

Foreign currency translation

(0.5)

(0.1)

-

(0.6)

-

Carrying value at end of the period

360.9

382.3

-

360.9

-

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 24

10. Equity-accounted investments

The Group holds the following equity-accounted investments:

Figures in million - SA rand

Six months ended

Year ended

Unaudited

Reviewed

Unaudited

Reviewed

Audited

Note

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Balance at beginning of the period

3,840.8

3,733.9

2,683.7

3,733.9

2,244.1

Share of results of equity-accounted investee after tax

465.3

255.7

145.7

721.0

344.2

- Mimosa Investments Limited (Mimosa)

269.1

108.0

74.8

377.1

210.5

- Rand Refinery Proprietary Limited (Rand Refinery)

196.2

148.3

77.2

344.5

143.7

- Other

(0.0)

(0.6)

(6.3)

(0.6)

(10.0)

Dividend received from equity accounted investments

(44.5)

(66.5)

(87.0)

(111.0)

(87.0)

Preference shares redeemed

(186.9)

-

(102.8)

(186.9)

(102.8)

Net loan advanced to equity-accounted investee

-

-

0.8

-

1.4

Impairment of investment in Living Gold Proprietary Limited (Living Gold)

4

-

(12.3)

-

(12.3)

-

Impairment of loan to Living Gold

4

-

(14.3)

-

(14.3)

-

Equity-accounted investment retained on loss of control of subsidiary

-

-

956.0

-

956.0

Foreign currency translation

(35.9)

(55.7)

137.5

(91.6)

378.0

Balance at end of the period

4,038.8

3,840.8

3,733.9

4,038.8

3,733.9

Equity accounted investments consist of:

- Mimosa

2,687.7

2,492.3

2,492.4

2,687.7

2,492.4

- Rand Refinery

387.6

239.3

239.3

396.9

396.9

- Peregrine Metals Ltd (Peregrine)

954.1

960.9

978.0

954.1

978.0

- Other equity-accounted investments

0.1

-

24.2

0.1

24.2

Equity-accounted investments

4,038.8

3,840.8

3,733.9

4,038.8

3,733.9

11. Borrowings

Figures in million - SA rand

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Notes

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Balance at beginning of the period

27,087.2

24,504.7

28,692.3

24,504.7

25,649.5

Borrowings acquired on acquisition of subsidiary

8.1

-

2,574.8

-

2,574.8

-

Loans raised

3,119.9

15,861.8

9,127.4

18,981.7

17,130.2

- US$600 million RCF

576.0

8,491.1

3,478.2

9,067.1

5,391.6

- R6.0 billion RCF1

630.0

520.0

-

1,150.0

360.0

- R5.5 billion RCF

500.0

-

-

500.0

-

- Other borrowings (including DRDGOLD facility)2

1,413.9

6,850.7

5,649.2

8,264.6

10,798.6

- US$350 million RCF

-

-

-

-

580.0

Loans repaid

(6,586.4)

(15,421.9)

(13,829.6)

(22,008.3)

(21,231.5)

- US$600 million RCF

(1,154.6)

(4,671.6)

(2,459.5)

(5,826.2)

(2,744.7)

- R6.0 billion RCF

(1,676.4)

(3,370.0)

-

(5,046.4)

-

- Other borrowings (including DRDGOLD facility)2

(3,755.4)

(7,380.3)

(5,517.5)

(11,135.7)

(10,854.6)

- 2022 and 2025 Notes

-

-

(5,107.4)

-

(5,107.4)

- US$ Convertible Bond

-

-

(745.2)

-

(745.2)

- US$350 million RCF

-

-

-

-

(1,779.6)

Unwinding of loans recognised at amortised cost

2

191.1

183.3

356.8

374.4

538.3

Accrued interest (related to the 2022 and 2025 Notes, and US$ Convertible Bond)

353.2

416.7

463.1

769.9

942.5

Accrued interest paid

(381.2)

(396.5)

(391.2)

(777.7)

(907.2)

Gain on derecognition of borrowings

-

-

(179.7)

-

(179.7)

(Loss)/gain on the revised cash flow of the Burnstone Debt

3

96.6

-

(804.6)

96.6

(804.6)

(Gain)/loss on foreign exchange differences and foreign currency translation

(144.0)

(635.7)

1,070.2

(779.7)

3,367.2

Balance at end of the period

23,736.4

27,087.2

24,504.7

23,736.4

24,504.7

  1. On 25 October 2019 Sibanye-Stillwater refinanced and settled its existing R6 billion Revolving Credit Facility maturing on 15 November 2019 with a new 3-year R5.5 billion Revolving Credit Facility on similar terms
  2. Other borrowings consist mainly of overnight facilities
  3. On 25 October 2019 Sibanye-Stillwater refinanced its existing R6.0 billion Revolving Credit Facility (RCF), maturing on 15 November 2019, with a new 3-year R5.5 billion RCF on similar terms. The outstanding balance under the R6.0 billion RCF of R2.0 billion was settled by way of a drawdown from the new R5.5 billion RCF. Accrued interest for the quarter was settled from available cash resources

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 25

Borrowings consist of:

Figures in million - SA rand

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

US$600 million RCF

5,711.9

6,316.8

2,726.5

5,711.9

2,726.5

R6.0 billion RCF

-

3,046.4

5,896.4

-

5,896.4

R5.5 billion RCF

2,500.0

-

-

2,500.0

-

2022 and 2025 Notes

9,609.8

9,658.8

9,808.7

9,609.8

9,808.7

US$ Convertible Bond

4,578.6

4,513.7

4,496.6

4,578.6

4,496.6

Burnstone Debt

1,330.4

1,187.5

1,145.1

1,330.4

1,145.1

Other borrowings

5.5

2,364.0

431.4

5.5

431.4

- Uncommitted (short-term) facilities

-

0.2

252.3

-

252.3

- Lonmin facility

-

2,358.1

-

-

-

- DRDGOLD facility

-

-

173.3

-

173.3

- Franco Nevada liability

2.0

2.0

2.0

2.0

2.0

- Stillwater Convertible Debentures

3.5

3.7

3.8

3.5

3.8

Borrowings

Current portion of borrowings

Non-current borrowings

23,736.2

27,087.2

24,504.7

23,736.2

24,504.7

(38.3)

(5,441.3)

(6,188.2)

(38.3)

(6,188.2)

23,697.9

21,645.9

18,316.5

23,697.9

18,316.5

Derivative financial instrument (related to the US$ Convertible Bond)

Figures in million - SA rand

Six months ended

Year ended

Unaudited

Reviewed

Unaudited

Reviewed

Audited

Note

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Balance at the beginning of the period

950.6

408.9

311.1

408.9

1,093.5

Loss/(gain) on financial instruments1

3

3,358.8

552.7

132.0

3,911.5

(678.1)

Gain on derecognition of derivative financial instrument

-

-

(50.3)

-

(50.3)

(Gain)/loss on foreign exchange differences

(164.5)

(11.0)

16.1

(175.5)

43.8

Balance at the end of the period

4,144.9

950.6

408.9

4,144.9

408.9

1 The R3,911.5 million loss on financial instrument is mainly attributable to the 258% increase in the Sibanye-Stillwater share price during 2019

11.1 Capital management Debt maturity

The following are contractually due, undiscounted cash flows resulting from maturities of financial liabilities, excluding interest payments: Figures in million - SA rand

Between

Within one

one and four

Five years

Total

year

years

and later

31 December 2019

US$600 million RCF

5,711.9

-

5,711.9

-

R5.5 billion RCF

2,500.0

-

2,500.0

-

2022 and 2025 Notes

9,808.4

-

4,951.8

4,856.6

US$ Convertible Bond

5,376.0

5,376.0

-

Burnstone Debt

2,552.9

-

-

2,552.9

Other borrowings

5.5

5.5

-

-

Net debt to adjusted EBITDA

Figures in million - SA rand

Rolling 12 months

Unaudited

Reviewed

Revised

Reviewed

Dec 2019

Jun 2019

Dec 2018

Borrowings1

26,550.7

26,850.3

23,768.5

Cash and cash equivalents2

5,586.3

5,970.1

2,499.4

Net debt3

20,964.4

20,880.2

21,269.1

Adjusted EBITDA4

14,956.0

6,492.3

8,369.4

Net debt to adjusted EBITDA (ratio)5

1.4

3.2

2.5

  1. Borrowings are only those borrowings that have recourse to Sibanye-Stillwater. Borrowings, therefore, exclude the Burnstone Debt and include the derivative financial instrument
  2. Cash and cash equivalents exclude cash of Burnstone
  3. Net debt represents borrowings and bank overdraft less cash and cash equivalents. Borrowings are only those borrowings that have recourse to Sibanye-Stillwater and, therefore, exclude the Burnstone Debt and include the derivative financial instrument. Net debt excludes cash of Burnstone
  4. The adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) calculation included is based on the definitions included in the facility agreements for compliance with the debt covenant formula, except for impact of new accounting standards and acquisitions, where the facility agreements allow the results from the acquired operations to be annualised. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to, and not as a substitute for, other measures of financial performance and liquidity
  5. Net debt to adjusted EBITDA ratio is defined as net debt as of the end of a reporting period divided by EBITDA of the 12 months ended on the same reporting date

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 26

Reconciliation of profit/(loss) before royalties and tax to adjusted EBITDA:

Figures in million - SA rand

Six months ended

Year ended

Unaudited

Unaudited

Unaudited

Reviewed

Audited

Dec 2019

Revised

Dec 2018

Dec 2019

Dec 2018

Note

Jun 2019

Profit/(loss) before royalties and tax

1,338.6

(2,194.9)

(1,491.0)

(856.3)

(1,224.3)

Adjusted for:

Amortisation and depreciation

4,289.4

2,924.7

3,519.1

7,214.1

6,613.8

Interest income

(273.1)

(287.3)

(290.8)

(560.4)

(482.1)

Finance expense

1,731.2

1,571.3

1,750.5

3,302.5

3,134.7

Share-based payments

200.3

163.0

164.7

363.3

299.4

Loss/(gain) on financial instruments

5,479.6

535.5

(993.9)

6,015.1

(1,704.1)

Gain on foreign exchange differences

(272.9)

(52.6)

(959.0)

(325.5)

(1,169.1)

Share of results of equity-accounted investees after tax

(465.3)

(255.7)

(145.7)

(721.0)

(344.2)

Change in estimate of environmental rehabilitation obligation, and right of recovery

receivable and payable

149.2

(60.3)

(66.6)

88.9

(66.6)

(Gain)/loss on disposal of property, plant and equipment

(81.5)

4.9

(28.4)

(76.6)

(60.2)

Impairments

(7.1)

93.1

2,981.8

86.0

3,041.4

Gain on acquisition

-

(1,103.0)

-

(1,103.0)

-

Restructuring costs

619.2

633.2

48.4

1,252.4

142.8

Transaction costs

350.3

97.5

209.5

447.8

402.5

IFRS 16 lease payments

(50.9)

-

-

12

(80.8)

(131.7)

Gain on derecognition of borrowings and derivative financial instrument

-

-

(230.0)

-

(230.0)

Occupational healthcare expense

(39.6)

-

5.2

(39.6)

15.4

Adjusted EBITDA

12,937.5

2,018.5

4,473.8

14,956.0

8,369.4

12. Lease liabilities

Figures in million - SA rand

Six months ended

Year ended

Unaudited

Reviewed

Unaudited

Reviewed

Audited

Note

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Balance at beginning of the period

392.7

-

-

-

-

Impact of adopting IFRS 16 on 1 January 2019

-

302.0

-

302.0

-

New leases and modifications

51.5

-

-

51.5

-

Lease liabilities on acquisition of subsidiaries

8.1

-

133.3

-

133.3

-

Repayment of lease liabilities

(80.8)

(50.9)

-

(131.7)

-

Interest charge

2

19.8

14.1

-

33.9

-

Transfers and other movements

-

(5.7)

-

(5.7)

-

Foreign currency translation

(0.4)

(0.1)

-

(0.5)

-

Balance at end of the period

382.8

392.7

-

382.8

-

Current portion of lease liabilities

(110.0)

(104.9)

-

(110.0)

-

Non-current lease liabilities

272.8

287.8

-

272.8

-

Lease payments not recognised as a liability

The group has elected not to recognise a lease liability for short term leases (leases of expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. In addition, certain variable lease payments are not permitted to be recognised as lease liabilities and are expensed as incurred.

Minimum lease payments are straight lined over the non-cancellable lease period.

Sub-letting and sale and leaseback transactions

There have been no sub-letting and no sale and leaseback transactions applicable to the current financial year.

13. Environmental rehabilitation obligation and other provisions

Figures in million - SA rand

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Note

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Balance at beginning of the period

8,067.2

6,294.2

4,898.7

6,294.2

4,678.7

Interest charge

2

322.6

256.1

209.3

578.7

398.8

Payment of environmental rehabilitation obligation

62.2

(97.1)

(32.3)

(34.9)

(32.3)

Change in estimate charged to profit or loss1

88.1

0.8

(87.7)

88.9

(90.4)

Change in estimate capitalised1

183.3

(78.2)

618.8

105.1

618.8

Environmental rehabilitation obligation on acquisition of subsidiaries

8.1

-

1,696.9

672.7

1,696.9

672.7

Foreign currency translation

(8.6)

(5.5)

14.7

(14.1)

47.9

Balance at end of the period

8,714.8

8,067.2

6,294.2

8,714.8

6,294.2

Environmental rehabilitation obligation and other provisions consists of:

Environmental rehabilitation obligation

8,597.6

7,950.0

6,176.2

8,597.6

6,176.2

Other provisions

117.2

117.2

118.0

117.2

118.0

Environmental rehabilitation obligation and other provisions

8,714.8

8,067.2

6,294.2

8,714.8

6,294.2

1 Changes in estimates are defined as changes in reserves and corresponding changes in life of mine, changes in discount rates and changes in laws and regulations governing environmental matters

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 27

14. Occupational healthcare obligation

On 3 May 2018, the Occupational Lung Disease Working Group (the Working Group), including the Sibanye-Stillwater Group, agreed to an approximately R5 billion class action settlement with the claimants. The estimated costs were reviewed at 31 December 2018 and discounted using a risk-free rate.

On 26 July 2019 the Gauteng High Court in Johannesburg approved the R5 billion settlement agreement in the silicosis class case. This settlement agreement provides compensation to all eligible workers suffering from silicosis and/or tuberculosis who worked in the Occupational Lung Disease Working Group companies' mines from 12 March 1965 to the date of the settlement agreement. Sibanye- Stillwater currently has provided R1,282.1 million for its share of the settlement cost. The provision is consequently subject to adjustment in the future based on the number of eligible workers.

On 19 December 2019 Sibanye Stillwater provided a guarantee for an amount not exceeding R1,372 million in respect off trust administration contributions, initial benefit contributions and benefit contributions as required by the Trust Deed.

Figures in million - SA rand

Six months ended

Year ended

Unaudited

Reviewed

Unaudited

Reviewed

Audited

Note

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Balance at beginning of the period

1,331.4

1,274.1

1,214.1

1,274.1

1,153.3

Interest charge

2

58.2

57.3

54.8

115.5

105.4

Charge to profit or loss

(39.6)

-

5.2

(39.6)

15.4

Payments made

(67.9)

-

-

(67.9)

-

Balance at end of the period

1,282.1

1,331.4

1,274.1

1,282.1

1,274.1

Current portion of occupational healthcare obligation

(148.7)

(251.2)

(109.9)

(148.7)

(109.9)

Non-current portion of occupational healthcare obligation

1,133.4

1,080.2

1,164.2

1,133.4

1,164.2

15. Other payables

Figures in million - SA rand

Reviewed

Reviewed

Revised

Audited

Dec 2019

Jun 2019

Dec 2018

Deferred Payment (related to Rustenburg operations acquisition)

2,825.6

2,011.8

2,205.9

Contingent consideration related to SFA (Oxford) acquisition

55.8

50.0

-

Right of recovery payable

79.4

87.1

83.2

Deferred consideration related to Pandora acquisition2

275.9

235.4

-

Dissenting shareholders1

-

292.5

287.1

Other non-current payables

212.2

171.7

256.3

Other payables

3,448.9

2,848.5

2,832.5

Current portion of other payables

(761.4)

(669.5)

(303.3)

Non-current other payables

2,687.5

2,179.0

2,529.2

  1. On 21 August 2019, the Court of Chancery of the State of Delaware in the United States of America ruled in favour of the Company in the appraisal action brought by the dissenting shareholders of the Stillwater Mining Company and the Stillwater Mining Company has settled the remaining amount of US$21 million due to the dissenting shareholders (refer to note 18.2).
  2. During 2017 Lonmin acquired the remainder of the 50% in Pandora JV. The consideration paid was made up of 3 components as follows:
    • a cash consideration of $4million,
    • deferred minimum payment of R400 million ; and
    • a contingent consideration of 20% of free cash flows from the Pandora operations for 6 years

At acquisition Sibanye valued the deferred minimum payment of R400 million based on an NPV calculation to be R235 million at acquisition and R276 million at 31 December 2019 and Sibanye valued the contingent consideration at a fair value of zero since Pandora budgeted free cash flow at 20% to be below the R400 million minimum payment for the remaining 4.5 years.

Reconciliation of deferred payment (related to Rustenburg operations acquisition):

Figures in million - SA rand

Six months ended

Year ended

Unaudited

Reviewed

Unaudited

Reviewed

Audited

Note

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Balance at beginning of the period

2,012.0

2,205.9

2,294.9

2,205.9

2,194.7

Interest charge

2

89.5

89.5

100.2

179.0

200.4

Payment of Deferred Payment

-

(283.4)

(38.6)

(283.4)

(38.6)

Loss on revised estimated cash flows

724.1

-

(150.6)

724.1

(150.6)

Balance at end of the period

2,825.6

2,012.0

2,205.9

2,825.6

2,205.9

Reconciliation of dissenting shareholder liability:

Figures in million - SA rand

Six months ended

Year ended

Unaudited

Reviewed

Unaudited

Reviewed

Audited

Note

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Balance at beginning of the period

292.5

287.1

1,450.6

287.1

1,349.7

Interest charge

2

10.7

10.5

25.2

21.2

68.1

Payments to dissenting shareholders

(319.4)

-

(1,375.8)

(319.4)

(1,375.8)

Foreign currency translation reserve

16.2

(5.1)

187.1

11.1

245.1

Balance at end of the period

-

292.5

287.1

-

287.1

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 28

16. Deferred revenue

In July 2018, Sibanye-Stillwater entered into a gold and palladium supply arrangement in exchange for an upfront advance payment of US$500 million. The arrangement has been accounted for as a contract in the scope of IFRS 15 whereby the advance payment has been recorded as deferred revenue. The revenue from the advance payment is being recognised as the gold and palladium is allocated to the appropriate Wheaton International account. An interest cost, representing the significant financing component of the upfront deposit on the deferred revenue balance, is also being recognised as part of finance costs. This finance cost increases the deferred revenue balance, ultimately resulting in revenue when the deferred revenue is recognised over the life of mine.

On 21 October 2019, Sibanye-Stillwater concluded a forward gold sale arrangement where the Group received a cash prepayment of R1,108 million in exchange for the future delivery of 8,482 ounces (263.8 kilograms) of gold every two weeks from 10 July 2020 to 16 October 2020 subject to an initial reference price of R17,371/oz comprising 80% of the prevailing price on execution date.

During 2016 Lonmin secured competitive funding of $50 million to build the Bulk Tailings re-Treatment plant (BTT), through a finance metal streaming arrangement receivable in instalments. The $50 million has been accounted for as deferred revenue as it will be repaid by way of discounted value of 6E metal sales. Contractual deliveries will be at a discounted price and the value of the discount over and above the $50 million upfront payment will be prorated over the project lifetime and charged to the consolidated income statement as a finance expense. The plant was commissioned during February 2018. Sibanye determined the fair value of the BTT deferred revenue to be R628 million at acquisition and R607 million at 31 December 2019.

The following table summarises the changes in deferred revenue:

Figures in million - SA rand

Six months ended

Year ended

Reviewed

Unaudited

Revised

Unaudited

Reviewed

Audited

Note

Dec 2019

Jun 2019

Dec 2018

Dec 2019

Dec 2018

Balance at beginning of the period

8,870.3

6,555.4

-

6,555.4

-

Deferred revenue advance received

1,108.0

1,751.3

6,555.4

2,859.3

6,555.4

Deferred revenue recognised during the period

(2,014.1)

(213.4)

(160.3)

(2,227.5)

(160.3)

Interest charge

2

202.9

149.4

160.3

352.3

160.3

Deferred revenue recognised on acquisition of subsidiary

-

627.6

-

627.6

-

Balance at end of the period

8,167.1

8,870.3

6,555.4

8,167.1

6,555.4

Current portion of deferred revenue

(1,270.6)

(2,145.8)

(30.1)

(1,270.6)

(30.1)

Non-current portion of deferred revenue

6,896.5

6,724.5

6,525.3

6,896.5

6,525.3

17. Fair value of financial assets and financial liabilities, and risk management

17.1 Measurement of fair value

The fair value of financial instruments is estimated based on ruling market prices, volatilities and interest rates at 31 December 2019. The following table set out the Group's significant financial instruments measured at fair value by level within the fair value hierarchy:

Figures in million - SA rand

Reviewed

Reviewed

Revised

Audited

Dec 2019

Jun 2019

Dec 2018

Level 1

Level 2

Level 3

Level 1

Level 2

Level 3

Level 1

Level 2

Level 3

Financial assets measured at fair value

- Environmental rehabilitation obligation funds

4,203.8

398.4

-

3,692.1

854.2

-

3,634.0

364.7

-

- Trade receivables - PGM sales

2,681.1

-

-

3,217.8

-

-

5,310.1

-

-

- Other investments

486.3

-

112.4

72.3

-

378.1

81.5

-

74.5

Financial liabilities measured at fair value

- Derivative financial instrument1

-

4,144.9

-

-

950.6

-

-

408.8

- Rand gold forward sale contracts

-

68.3

-

-

164.0

-

-

240.8

1 The derivative financial instrument is recognised at fair value and valued using option pricing methodologies based on observable quoted inputs

17.2 Risk management activities

Liquidity risk: working capital and going concern assessment

For the year ended 31 December 2019, the Group realised a profit of R432.9 million (31 December 2018: loss of R2,520.7 million). As at 31

December 2019 the Group's current assets exceeded its current liabilities by R11,836.9 million (31 December 2018: R562.7 million) and the

Group's total assets exceeded its total liabilities by R31,138.4 million (31 December 2018: R24,724.4 million). During the year ended 31

December 2019 the Group generated net cash from operating activities of R9,464.0 million (31 December 2018: R12,197.2 million).

The Group currently has committed undrawn debt facilities of R5,688 million at 31 December 2019 (2018: R5,987 million) and cash balances

of R5,619.0 million (31 December 2018: R2,549.1 million). On 25 October 2019 the R6,000 million RCF was successfully refinanced with a R5,500 billion RCF maturing on 10 November 2022 . US$150 million (R2,100 million) of these committed facilities mature in April 2021, with the remainder maturing only after April 2022.

Sibanye-Stillwater's leverage ratio (net debt to adjusted EBITDA) as at 31 December 2019 was 1.4:1 and its interest coverage ratio (adjusted EBITDA to net finance charges) was 6.5:1 (31 December 2018: 2.5:1 and 4.9:1). Both well within the maximum permitted leverage ratio of at most 3.5:1 through to 31 December 2019, and 2.5:1 thereafter; and minimum required interest coverage ratio of 4.0:1, calculated on a quarterly basis, required under the US$600 million RCF and the R5.5 billion RCF (together the RCFs).

Gold and PGMs are sold in US dollars with most of the South African operating costs incurred in rand, the Group's results and financial condition will be impacted if there is a material change in the rand/US dollar exchange rate. High levels of volatility in commodity prices may also impact on profitability. Due to the nature of deep level mining, industrial accidents and mining accidents may result in operational disruptions such as stoppages which could result in increased production costs as well as financial and regulatory liabilities. Further, Sibanye-

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 29

Stillwater's operations may be adversely affected by labour unrests and union activity. These factors could impact on cash generated or utilised by the Group, as well as adjusted EBITDA and financial covenants.

Various events during 2018 and 2019 (2018 safety issues, 2018/2019 gold strike, SA PGM offtake contract change, as well as commodity price and exchange rate volatility) impacted negatively on group earnings and cash flows. Additionally, during 2019, the Group has had to manage delays in approval of the Lonmin acquisition, the take on of inherent uncertainties within the Lonmin business, alongside the now successfully concluded 3 yearly PGM wage negotiations. Good levels of liquidity were maintained throughout the year to manage this increased uncertainty. The Group issued 108.9 million ordinary shares for R1.7 billion on 15 April 2019 and executed a US$125 million (R1.8 billion) gold prepayment transaction on 11 April 2019, to enhance liquidity and balance sheet flexibility. A few days later, on 17 April 2019, AMCU, one of Sibanye-Stillwater'slabour unions, withdrew its wage demands and ended its five-monthstrike action at the gold operations. Various quarterly covenant amendments were also requested, and approved by the RCF lenders, during 2019 to accommodate possible abnormal fluctuations in 12-monthtrailing adjusted EBITDA. A new 3-yearR5.5 billion ZAR RCF was successfully concluded during October 2019 to refinance the maturing R6 billion ZAR RCF. Commodity prices have increased markedly during the third quarter of 2019, significantly improving operating cash flows and outlook.

The Group has thoroughly demonstrated its ability to proactively manage liquidity risk through the above, and other initiatives, during 2019. Improved geographical and commodity diversification, along with improved commodity price outlook, and increased operational scale have enabled management to successfully navigate the simultaneous impact of these abnormal events, positioning the Group for a rapid return to its targeted leverage ratio of 1:1 during 2020.

If required the Group could increase operational flexibility by adjusting mine plans, reducing capital expenditure and/or selling assets. The Group may also, if necessary, consider options to increase funding flexibility which may include, among others, streaming facilities, prepayment facilities or, in the event that other options are not deemed preferable or achievable by the Board, an equity capital raise. The Group could also, with lender approval, request covenant amendments or restructure facilities if needed. This gives management the operational and financing flexibility to continue to manage the operations and capital structure to ensure adequate liquidity and compliance with debt covenants.

The directors believe that the cash generated by its operations, cash on hand, the committed unutilised debt facilities as well as additional funding opportunities will enable the Group to continue to meet its obligations as they fall due. The condensed consolidated provisional financial statements for the year ended 31 December 2019, therefore, have been prepared on a going concern basis.

18. Contingent liabilities

18.1 Purported Class Action Lawsuits

In 2018, two groups of plaintiffs filed purported class action lawsuits, subsequently consolidated into a single action (Class Action), against Sibanye Gold Limited (Sibanye-Stillwater) and Neal Froneman (collectively, the Defendants) in the United States District Court for the Eastern District of New York, alleging violations of the US securities laws. Specifically, the Class Action alleges that the Defendants made false and/or misleading statements about its safety practices and record and thereby violated the US securities laws. The Class Action seeks an unspecific amount of damages. The Defendants have filed a motion to dismiss the Class Action. The Court may decide the motion to dismiss with or without oral argument. As the case is still in the early stages, it is not possible to determine the likelihood of success on the merits or any potential liability from the Class Action nor estimate the duration of the litigation. Sibanye-Stillwater intends to defend the case vigorously.

18.2 Delaware Court of Chancery rules in favour of Sibanye-Stillwater in dissenting shareholder action

The Court of Chancery of the State of Delaware in the United States of America (the Court), in a Memorandum Opinion dated 21 August 2019, has ruled in favour of the Company in the appraisal action brought by a group of minority shareholders (the Dissenting Shareholders) of the Stillwater Mining Company (Stillwater), following the acquisition of Stillwater by the Company in May 2017 for a cash consideration of US$18 per Stillwater share.

In terms of the ruling, the Dissenting Shareholders (together owning approximately 4.5% of Stillwater shares outstanding at the time) received the same US$18 per share consideration originally offered to, and accepted by other Stillwater shareholders, plus interest. The remaining payment of approximately US$21 million due to the Dissenting Shareholders has been paid by Sibanye-Stillwater during the six months ended 31 December 2019.

Certain of the Dissenting Shareholders have filed an appeal with the Supreme Court of the State of Delaware. The Company will continue to defend itself against opportunistic, short-term and self-interested legal action, to protect the interests of our stakeholders.

19. Events after the reporting period

There were no events that could have a material impact on the financial results of the Group after 31 December 2019, other than those discussed below.

19.1 Sibanye Gold Limited scheme of arrangement

On 4 October 2019 Sibanye Gold Limited (trading as Sibanye-Stillwater) and Sibanye Stillwater Limited announced the intention to implement a scheme of arrangement to reorganise Sibanye Gold Limited's operations under a new parent company, Sibanye Stillwater Limited (the "Scheme"). Under the Scheme, Sibanye Stillwater Limited will acquire Sibanye Gold Limited and its controlled entities. On 23 January 2020 Sibanye Gold Limited and Sibanye Stillwater Limited announced that all resolutions for the approval of the Scheme, were passed by the requisite majority voters at the Scheme Meeting held at the Sibanye Gold Limited Academy.

Sibanye Stillwater Limited determined that the acquisition of Sibanye Gold Limited will not represent a business combination as defined by IFRS 3 "Business Combinations". This is because neither party to the Scheme can be identified as an accounting acquirer in the transaction, and post the implementation there will be no change of economic substance or ownership in the Sibanye Gold Limited Group. The Sibanye Gold Limited shareholders will have the same commercial and economic interest as they have prior to the implementation of the Scheme and no additional new ordinary shares of Sibanye Gold Limited will be issued as part of the Scheme. The consolidated financial statements of Sibanye Stillwater Limited therefore will reflect that the arrangement is in substance a continuation of the existing Sibanye Gold Limited Group. Sibanye Gold Limited will be the predecessor of Sibanye Stillwater Limited for financial reporting purposes and for future consolidated financial reporting periods Sibanye Stillwater Limited's consolidated comparative information will be presented as if the reorganisation had occurred before the start of the earliest period presented.

The expected date of implementation of the Scheme is Monday, 24 February 2020.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 30

19.2 DRDGOLD Increase in shareholding

On 10 January 2020, Sibanye-Stillwater announced that it has exercised its option to subscribe for c.168 million additional ordinary shares of DRDGOLD Limited ("DRDGOLD") to attain a 50.1% shareholding in DRDGOLD. The option was exercised on 8 January 2020 in terms of the DRDGOLD option agreement between Sibanye-Stillwater and DRDGOLD, entered into on 22 November 2017. The subscription price for each Option Share was R6.46 per share, payable in cash, representing a 22.69% discount to the closing price of R8.35 per DRDGOLD share and a 10% discount to the 30-day volume weighted average traded price.

19.3 Section189A consultations

On 16 January 2020, Sibanye-Stillwater advised that the consultation process with relevant stakeholders in terms of Section 189A (S189) of the Labour Relations Act, 66 of 1995 (LRA), regarding the proposed restructuring of its Marikana operation and associated services (previously Lonmin), has been concluded.

19.4 Palladium hedge agreement

On 17 January 2020, Stillwater Mining Company Limited (wholly owned subsidiary of Sibanye-Stillwater) concluded a palladium hedge agreement commencing on 28 February 2020, comprising the delivery of 240,000 ounces of palladium over two years (10,000 ounces per month) with a zero cost collar which establishes a minimum floor and a maximum cap of US$1,500 and US$3,400 per ounce, respectively.

19.5 BTT release agreement

On 24 January 2020, Western Platinum Proprietary Limited, Eastern Platinum Limited and Lonmin Limited (collectively the "Purchasers"), subsidiaries of Sibanye-Stillwater, entered into a Release and Cancellation Agreement ("the Release Agreement") with RFW Lonmin Investments Limited ("the Seller"). The Release Agreement sets out the terms and conditions upon which the Purchasers have purchased the Seller's entire interest in the Metals Purchase Agreement ("MPA") for an amount of US$50 million to be settled in cash ("the Early Settlement").

20. Review report of the independent auditor

These condensed consolidated provisional financial statements for the year ended 31 December 2019, have been reviewed by the Company's auditor, Ernst & Young Inc., who expressed an unmodified review conclusion.

The auditor's report does not necessarily report on all of the information contained in these financial results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement they should obtain a copy of the auditor's report together with the accompanying financial information from the Company's registered office.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 31

21. Segment reporting

Figures in million

For the six months ended 31 Dec 2019 (Unaudited)

US PGM

GROUP

OPERATIONS

SA OPERATIONS

GROUP

Corporate

Corporate

Total SA

Total SA

Rusten-

Platinum

and

Total SA

Drie-

DRD-

and

Cor-

SA rand

Total

Stillwater

Operations

PGM

burg

Marikana

Kroondal

Mile

Mimosa

reconciling1

gold

fontein

Kloof

Beatrix

Cooke

GOLD

reconciling1

porate1

Revenue

49,390.5

15,541.1

33,965.3

21,339.4

8,050.7

9,818.7

3,318.2

151.8

1,231.1

(1,231.1)

12,625.9

3,006.2

4,100.5

2,748.8

451.8

2,111.4

207.2

(115.9)

Underground

37,100.9

7,128.9

30,087.9

20,673.5

7,599.5

9,755.8

3,318.2

-

1,231.1

(1,231.1)

9,414.4

3,006.2

3,489.1

2,706.9

11.8

-

200.4

(115.9)

Surface

3,877.4

-

3,877.4

665.9

451.2

62.9

-

151.8

-

-

3,211.5

-

611.4

41.9

440.0

2,111.4

6.8

-

Recycling

8,412.2

8,412.2

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Cost of sales, before amortisation

and depreciation

(35,438.3)

(11,236.7)

(24,201.6)

(14,079.6)

(5,132.6)

(7,219.7)

(1,617.6)

(109.7)

(649.7)

649.7

(10,122.0)

(2,574.2)

(3,744.3)

(2,022.4)

(337.1)

(1,444.0)

-

-

Underground

(24,331.4)

(3,072.2)

(21,259.2)

(13,459.0)

(4,621.7)

(7,219.7)

(1,617.6)

-

(649.7)

649.7

(7,800.2)

(2,577.4)

(3,208.8)

(2,006.5)

(7.5)

-

-

-

Surface

(2,942.4)

-

(2,942.4)

(620.6)

(510.9)

-

-

(109.7)

-

-

(2,321.8)

3.2

(535.5)

(15.9)

(329.6)

(1,444.0)

-

-

Recycling

(8,164.5)

(8,164.5)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Net other cash costs2

(1,014.7)

28.1

(1,042.8)

(506.6)

(105.4)

(336.0)

(52.8)

(12.4)

-

-

(536.2)

(53.4)

(33.8)

(39.2)

(293.0)

(23.4)

(93.4)

-

Adjusted EBITDA

12,937.5

4,332.5

8,720.9

6,753.2

2,812.7

2,263.0

1,647.8

29.7

581.4

(581.4)

1,967.7

378.6

322.4

687.2

(178.3)

644.0

113.8

(115.9)

Amortisation and depreciation

(4,289.4)

(1,193.3)

(3,096.1)

(1,201.6)

(472.4)

(478.2)

(246.2)

(2.5)

(119.8)

117.5

(1,894.5)

(705.0)

(636.0)

(430.9)

(7.6)

(84.2)

(30.8)

-

Interest income

273.1

86.9

186.2

28.4

2.9

(13.3)

36.5

1.2

1.4

(0.3)

157.8

39.2

31.4

23.9

19.0

34.4

9.9

-

Finance expense

(1,731.2)

(141.5)

(1,739.1)

(436.1)

(703.0)

(223.6)

(73.9)

-

(10.3)

574.7

(1,303.0)

(103.6)

(104.0)

(57.6)

(36.9)

(31.2)

(969.7)

149.4

Share-based payments

(200.3)

(30.6)

(169.7)

-

-

-

-

-

-

-

(169.7)

-

-

-

-

(46.0)

(123.7)

-

Net other3

(4,809.8)

7.2

(4,817.0)

(1,523.6)

(11,383.7)

100.1

(4.6)

0.7

(43.0)

9,806.9

(3,293.4)

3.5

9.5

(1.1)

(90.2)

10.8

(3,225.9)

-

Non-underlying items4

(841.3)

(31.5)

(809.8)

(562.0)

1.3

(608.2)

44.9

-

(8.6)

8.6

(247.8)

22.7

6.2

11.0

(4.8)

0.2

(283.1)

-

Royalties and carbon tax

(326.6)

-

(326.6)

(264.6)

(213.0)

(47.2)

(4.4)

-

(39.4)

39.4

(62.0)

(14.7)

(20.1)

(25.1)

(2.1)

-

-

-

Current taxation

(1,192.4)

(290.0)

(902.4)

(1,009.9)

(624.4)

51.5

(436.6)

-

(88.3)

87.9

107.5

(22.7)

(5.5)

(13.3)

-

(73.9)

222.9

-

Deferred taxation

783.9

(111.7)

895.6

51.2

24.6

(0.2)

36.2

(8.0)

(4.3)

2.9

844.4

(392.4)

(163.2)

(159.7)

-

(109.4)

1,669.1

-

Profit/(loss) for the period

603.5

2,628.0

(2,058.0)

1,835.0

(10,555.0)

1,043.9

999.7

21.1

269.1

10,056.2

(3,893.0)

(794.4)

(559.3)

34.4

(300.9)

344.7

(2,617.5)

33.5

Attributable to:

Owners of Sibanye-Stillwater

316.8

2,628.0

(2,344.7)

1,763.0

(10,555.0)

972.7

999.7

19.4

269.1

10,057.1

(4,107.7)

(794.4)

(559.3)

34.4

(300.9)

131.1

(2,618.6)

33.5

Non-controlling interests

286.7

-

286.7

72.0

-

71.2

-

1.7

-

(0.9)

214.7

-

-

-

-

213.6

1.1

-

Sustaining capital expenditure

(1,588.0)

(255.5)

(1,332.5)

(895.4)

(188.2)

(565.0)

(136.3)

(5.5)

(177.5)

177.1

(437.1)

(144.5)

(210.4)

(49.5)

-

(32.7)

-

-

Ore reserve development

(2,291.1)

(450.1)

(1,841.0)

(778.4)

(249.8)

(528.6)

-

-

-

-

(1,062.6)

(431.5)

(441.6)

(189.5)

-

-

-

-

Growth projects

(1,243.8)

(1,092.8)

(151.0)

(11.3)

(1.8)

0.7

-

(10.2)

-

-

(139.7)

-

(79.9)

(1.4)

-

(10.9)

(47.5)

-

Total capital expenditure

(5,122.9)

(1,798.4)

(3,324.5)

(1,685.1)

(439.8)

(1,092.9)

(136.3)

(15.7)

(177.5)

177.1

(1,639.4)

(576.0)

(731.9)

(240.4)

-

(43.6)

(47.5)

-

For the six months ended 31 Dec 2019 (Unaudited)

US PGM

GROUP

OPERATIONS

SA OPERATIONS

GROUP

Total SA

Total SA

Rusten-

Platinum

Corporate and

Total SA

Drie-

DRD-

Corporate and

Cor-

US dollars5

Total

Stillwater

Operations

PGM

burg

Marikana

Kroondal

Mile

Mimosa

reconciling1

gold

fontein

Kloof

Beatrix

Cooke

GOLD

reconciling1

porate1

Revenue

3,385.9

1,060.4

2,333.5

1,467.8

553.6

677.3

226.6

10.3

83.7

(83.7)

865.7

207.5

280.2

188.8

30.7

144.1

14.4

(8.0)

Underground

2,547.6

486.4

2,069.2

1,422.2

522.6

673.0

226.6

-

83.7

(83.7)

647.0

207.5

238.7

186.1

0.8

-

13.9

(8.0)

Surface

264.3

-

264.3

45.6

31.0

4.3

-

10.3

-

-

218.7

-

41.5

2.7

29.9

144.1

0.5

-

Recycling

574.0

574.0

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Cost of sales, before amortisation and

depreciation

(2,424.6)

(766.5)

(1,658.1)

(968.5)

(353.2)

(497.8)

(110.0)

(7.5)

(44.0)

44.0

(689.6)

(175.7)

(254.9)

(137.8)

(22.9)

(98.3)

-

-

Underground

(1,667.0)

(209.2)

(1,457.8)

(926.0)

(318.2)

(497.8)

(110.0)

-

(44.0)

44.0

(531.8)

(175.9)

(218.6)

(136.8)

(0.5)

-

-

-

Surface

(200.3)

-

(200.3)

(42.5)

(35.0)

-

-

(7.5)

-

-

(157.8)

0.2

(36.3)

(1.0)

(22.4)

(98.3)

-

-

Recycling

(557.3)

(557.3)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Net other cash costs2

(68.9)

2.0

(70.9)

(34.8)

(7.2)

(23.2)

(3.6)

(0.8)

-

-

(36.1)

(3.4)

(2.2)

(2.5)

(20.0)

(1.5)

(6.5)

-

Adjusted EBITDA

892.4

295.9

604.5

464.5

193.2

156.3

113.0

2.0

39.7

(39.7)

140.0

28.4

23.1

48.5

(12.2)

44.3

7.9

(8.0)

Amortisation and depreciation

(292.9)

(81.2)

(211.7)

(82.0)

(32.1)

(33.0)

(16.7)

(0.1)

(8.1)

8.0

(129.7)

(48.5)

(43.2)

(29.6)

(0.5)

(5.7)

(2.2)

-

Interest income

18.6

5.9

12.7

1.8

0.2

(1.0)

2.4

0.1

0.1

-

10.9

2.7

2.2

1.7

1.3

2.4

0.6

-

Finance expense

(117.7)

(8.8)

(119.4)

(29.9)

(47.7)

(15.4)

(5.1)

-

(0.7)

39.0

(89.5)

(7.0)

(7.0)

(3.9)

(2.5)

(2.1)

(67.0)

10.5

Share-based payments

(13.6)

(2.1)

(11.5)

-

-

-

-

-

-

-

(11.5)

-

-

-

-

(3.1)

(8.4)

-

Net other3

(332.6)

0.5

(333.1)

(105.3)

(787.2)

7.0

(0.3)

0.1

(2.9)

678.0

(227.8)

0.2

0.6

(0.1)

(6.2)

0.6

(222.9)

-

Non-underlying items4

(58.5)

(2.2)

(56.3)

(40.0)

0.1

(43.1)

3.1

-

(0.6)

0.5

(16.3)

1.8

0.5

0.9

(0.4)

-

(19.1)

-

Royalties and carbon tax

(22.4)

-

(22.4)

(18.2)

(14.6)

(3.3)

(0.3)

-

(2.6)

2.6

(4.2)

(1.0)

(1.4)

(1.7)

(0.1)

-

-

-

Current taxation

(81.7)

(19.8)

(61.9)

(69.4)

(42.8)

3.6

(30.1)

-

(6.1)

6.0

7.5

(1.6)

(0.4)

(0.9)

-

(5.1)

15.5

-

Deferred taxation

50.7

(9.7)

60.4

3.7

1.7

-

2.6

(0.5)

(0.3)

0.2

56.7

(27.7)

(11.7)

(11.4)

-

(7.6)

115.1

-

Profit/(loss) for the period

42.3

178.5

(138.7)

125.2

(729.2)

71.1

68.6

1.6

18.5

694.6

(263.9)

(52.7)

(37.3)

3.5

(20.6)

23.7

(180.5)

2.5

Attributable to:

Owners of Sibanye-Stillwater

22.6

178.5

(158.4)

120.2

(729.2)

66.1

68.6

1.5

18.5

694.7

(278.6)

(52.7)

(37.3)

3.5

(20.6)

9.1

(180.6)

2.5

Non-controlling interests

19.7

-

19.7

5.0

-

5.0

-

0.1

-

(0.1)

14.7

-

-

-

-

14.6

0.1

-

Sustaining capital expenditure

(109.3)

(17.5)

(91.8)

(61.6)

(12.9)

(39.0)

(9.3)

(0.4)

(12.0)

12.0

(30.2)

(10.0)

(14.5)

(3.4)

-

(2.3)

-

-

Ore reserve development

(156.8)

(30.4)

(126.4)

(53.5)

(16.9)

(36.6)

-

-

-

-

(72.9)

(29.7)

(30.2)

(13.0)

-

-

-

-

Growth projects

(84.7)

(74.3)

(10.4)

(0.8)

(0.1)

-

-

(0.7)

-

-

(9.6)

-

(5.5)

(0.1)

-

(0.7)

(3.3)

-

Total capital expenditure

(350.8)

(122.2)

(228.6)

(115.9)

(29.9)

(75.6)

(9.3)

(1.1)

(12.0)

12.0

(112.7)

(39.7)

(50.2)

(16.5)

-

(3.0)

(3.3)

-

  1. Corporate and reconciling items represent the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not generate mining revenue. Group corporate includes the Wheaton Stream transaction
  2. Net other cash costs consist of care and maintenance, strike costs and other costs as detailed in profit or loss. Lease payments are included in net other cash costs to conform with the adjusted EBITDA reconciliation disclosed in note 11.1
  3. Net other consists of gain on financial instruments, gain on foreign exchange differences, and change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable as detailed in profit or loss. Corporate and reconciling items net other includes the share of results equity-accounted investees after tax as detailed in profit or loss
  4. Non-underlyingitems consists of gain on disposal of property, plant and equipment, impairments, gain on acquisition, occupational healthcare expense, restructuring costs and transaction costs as detailed in profit or loss
  5. The average exchange rate for the six months ended 31 December 2019 was R14.69/US$

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2019 32

Figures in million

For the six months ended 30 Jun 2019 (Reviewed) (Revised)

US PGM

GROUP

OPERATIONS

SA OPERATIONS

GROUP

Total SA

Total SA

Rusten-

Platinum

Corporate and

Total SA

Drie-

DRD-

Corporate and

Cor-

SA rand

Total

Stillwater

Operations

PGM

burg

Marikana1

Kroondal

Mile

Mimosa

reconciling2

gold

fontein

Kloof

Beatrix

Cooke

GOLD

reconciling2

porate2

Revenue

23,534.9

11,323.4

12,257.3

6,239.0

2,448.8

1,369.2

2,272.2

148.8

1,111.5

(1,111.5)

6,018.3

296.9

2,708.0

1,049.4

376.6

1,509.6

77.8

(45.8)

Underground

14,427.3

5,214.4

9,258.7

5,943.0

2,301.6

1,369.2

2,272.2

-

1,111.5

(1,111.5)

3,315.7

295.2

2,063.3

870.0

9.4

-

77.8

(45.8)

Surface

2,998.6

-

2,998.6

296.0

147.2

-

-

148.8

-

-

2,702.6

1.7

644.7

179.4

367.2

1,509.6

-

-

Recycling

6,109.0

6,109.0

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Cost of sales, before

amortisation and depreciation

(20,662.1)

(8,332.7)

(12,329.4)

(4,117.1)

(1,334.3)

(1,220.2)

(1,458.7)

(103.9)

(686.6)

686.6

(8,212.3)

(1,864.4)

(3,128.6)

(1,646.8)

(280.2)

(1,292.3)

-

-

Underground

(12,188.9)

(2,528.6)

(9,660.3)

(3,748.9)

(1,070.0)

(1,220.2)

(1,458.7)

-

(686.6)

686.6

(5,911.4)

(1,851.2)

(2,532.3)

(1,518.8)

(9.1)

-

-

-

Surface

(2,669.1)

-

(2,669.1)

(368.2)

(264.3)

-

-

(103.9)

-

-

(2,300.9)

(13.2)

(596.3)

(128.0)

(271.1)

(1,292.3)

-

-

Recycling

(5,804.1)

(5,804.1)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Net other cash costs3

(854.3)

(32.3)

(822.0)

(78.9)

(50.7)

36.1

(50.6)

(12.9)

(8.0)

7.2

(743.1)

(144.2)

(118.9)

(140.6)

(275.6)

(7.3)

(56.5)

-

Adjusted EBITDA

2,018.5

2,958.4

(894.1)

2,043.0

1,063.8

185.1

762.9

32.0

416.9

(417.7)

(2,937.1)

(1,711.7)

(539.5)

(738.0)

(179.2)

210.0

21.3

(45.8)

Amortisation and depreciation

(2,924.7)

(1,092.3)

(1,832.4)

(717.4)

(442.0)

(22.2)

(248.6)

(2.3)

(98.9)

96.6

(1,115.0)

(215.5)

(564.9)

(209.1)

(7.5)

(87.9)

(30.1)

-

Interest income

287.3

58.3

229.0

117.4

41.7

44.2

30.6

0.1

0.8

-

111.6

20.9

21.6

7.5

20.8

30.1

10.7

-

Finance expense

(1,571.3)

(779.2)

(642.7)

(268.1)

(704.5)

(58.8)

(73.0)

-

(11.5)

579.7

(374.6)

(139.2)

(138.9)

(83.5)

(36.8)

(41.8)

65.6

(149.4)

Share-based payments

(163.0)

(22.8)

(140.2)

-

-

-

-

-

-

-

(140.2)

-

-

-

-

(18.2)

(122.0)

-

Net other4

(116.0)

1.1

(117.1)

10.4

1.9

(87.2)

4.3

0.4

(94.2)

185.2

(127.5)

14.0

21.5

14.5

(23.7)

70.8

(224.6)

-

Non-underlying items5

274.3

(43.1)

317.4

820.8

1.1

820.9

(0.1)

-

(18.9)

17.8

(503.4)

(192.2)

(41.3)

(123.4)

(2.1)

4.1

(148.5)

-

Royalties

(117.3)

-

(117.3)

(93.6)

(83.1)

(7.3)

(3.2)

-

(37.7)

37.7

(23.7)

(1.9)

(14.1)

(5.7)

(2.0)

-

-

-

Current taxation

(656.3)

(191.3)

(465.0)

(293.8)

(155.9)

(38.2)

(99.4)

-

(47.2)

46.9

(171.2)

-

-

-

-

4.8

(176.0)

-

Deferred taxation

2,797.8

1,548.0

1,249.8

(37.1)

5.4

0.2

(36.9)

(8.5)

(1.3)

4.0

1,286.9

467.2

313.6

249.6

-

(20.5)

277.0

-

(Loss)/profit for the period

(170.7)

2,437.1

(2,412.6)

1,581.6

(271.6)

836.7

336.6

21.7

108.0

550.2

(3,994.2)

(1,758.4)

(942.0)

(888.1)

(230.5)

151.4

(326.6)

(195.2)

Attributable to:

Owners of Sibanye-Stillwater

(254.7)

2,437.1

(2,496.6)

1,592.0

(271.6)

848.9

336.6

19.9

108.0

550.2

(4,088.6)

(1,758.4)

(942.0)

(888.1)

(230.5)

57.6

(327.2)

(195.2)

Non-controlling interests

84.0

-

84.0

(10.4)

-

(12.2)

-

1.8

-

-

94.4

-

-

-

-

93.8

0.6

-

Sustaining capital expenditure

(451.3)

(66.2)

(385.1)

(307.8)

(128.1)

(95.4)

(76.5)

(7.8)

(165.6)

165.6

(77.3)

(18.5)

(27.7)

(21.0)

-

(10.1)

-

-

Ore reserve development

(1,110.8)

(586.1)

(524.7)

(250.8)

(250.8)

-

-

-

-

(273.9)

(81.4)

(148.8)

(43.7)

-

-

-

-

Growth projects

(1,021.1)

(942.2)

(78.9)

(3.9)

-

(0.7)

-

(3.2)

-

-

(75.0)

-

(29.0)

(0.7)

-

(28.1)

(17.2)

-

Total capital expenditure

(2,583.2)

(1,594.5)

(988.7)

(562.5)

(378.9)

(96.1)

(76.5)

(11.0)

(165.6)

165.6

(426.2)

(99.9)

(205.5)

(65.4)

-

(38.2)

(17.2)

-

For the six months ended 30 Jun 2019 (Unaudited)

US PGM

GROUP

OPERATIONS

SA OPERATIONS

GROUP

Corporate

Corporate

Total SA

Total SA

Rusten-

Platinum

and

Total SA

Drie-

DRD-

and

Cor-

US dollars6

Total

Stillwater

Operations

PGM

burg

Marikana1

Kroondal

Mile

Mimosa

reconciling2

gold

fontein

Kloof

Beatrix

Cooke

GOLD

reconciling2

porate2

Revenue

1,657.4

797.4

863.2

439.4

172.5

96.4

160.0

10.5

78.3

(78.3)

423.8

20.9

190.7

73.9

26.6

106.3

5.4

(3.2)

Underground

1,016.0

367.2

652.0

418.5

162.1

96.4

160.0

-

78.3

(78.3)

233.5

20.8

145.3

61.3

0.7

-

5.4

(3.2)

Surface

211.2

-

211.2

20.9

10.4

-

-

10.5

-

-

190.3

0.1

45.4

12.6

25.9

106.3

-

-

Recycling

430.2

430.2

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Cost of sales, before

amortisation and depreciation

(1,455.1)

(586.8)

(868.3)

(289.9)

(94.0)

(85.9)

(102.7)

(7.3)

(48.4)

48.4

(578.4)

(131.3)

(220.4)

(116.0)

(19.7)

(91.0)

-

-

Underground

(858.5)

(178.1)

(680.4)

(264.0)

(75.4)

(85.9)

(102.7)

-

(48.4)

48.4

(416.4)

(130.4)

(178.4)

(107.0)

(0.6)

-

-

-

Surface

(187.9)

-

(187.9)

(25.9)

(18.6)

-

-

(7.3)

-

-

(162.0)

(0.9)

(42.0)

(9.0)

(19.1)

(91.0)

-

-

Recycling

(408.7)

(408.7)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Net other cash costs3

(60.4)

(2.3)

(58.1)

(5.7)

(3.6)

2.5

(3.6)

(0.9)

(0.6)

0.5

(52.4)

(10.2)

(8.4)

(9.9)

(19.4)

(0.5)

(4.0)

-

Adjusted EBITDA

141.9

208.3

(63.2)

143.8

74.9

13.0

53.7

2.3

29.3

(29.4)

(207.0)

(120.6)

(38.1)

(52.0)

(12.5)

14.8

1.4

(3.2)

Amortisation and depreciation

(206.0)

(76.9)

(129.1)

(50.6)

(31.1)

(1.6)

(17.5)

(0.2)

(7.0)

6.8

(78.5)

(15.2)

(39.8)

(14.7)

(0.5)

(6.2)

(2.1)

-

Interest income

20.2

4.1

16.1

8.3

2.9

3.1

2.2

-

0.1

-

7.8

1.5

1.5

0.5

1.5

2.1

0.7

-

Finance expense

(110.7)

(54.9)

(45.3)

(18.8)

(49.6)

(4.1)

(5.1)

-

(0.8)

40.8

(26.5)

(9.8)

(9.8)

(5.9)

(2.6)

(2.9)

4.5

(10.5)

Share-based payments

(11.5)

(1.6)

(9.9)

-

-

-

-

-

-

-

(9.9)

-

-

-

-

(1.3)

(8.6)

-

Net other4

(7.9)

0.1

(8.0)

0.7

0.1

(6.1)

0.3

-

(6.6)

13.0

(8.7)

1.0

1.5

1.0

(1.7)

5.0

(15.5)

-

Non-underlying items5

19.3

(3.0)

22.3

57.9

0.1

57.8

-

-

(1.3)

1.3

(35.6)

(13.5)

(2.9)

(8.7)

(0.1)

0.3

(10.7)

-

Royalties

(8.3)

-

(8.3)

(6.6)

(5.9)

(0.5)

(0.2)

-

(2.7)

2.7

(1.7)

(0.1)

(1.0)