A unique, exciting, global precious metals company
IR meeting presentation
End November 2019
Disclaimer
The information in this presentation may contain forward-looking statements within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, among others, those relating to Sibanye Gold Limited's (trading as Sibanye-Stillwater)("Sibanye-Stillwater" or the "Group") financial positions, business strategies, plans and objectives of management for future operations, are necessarily estimates reflecting the best judgment of the senior management and directors of Sibanye-Stillwater.
All statements other than statements of historical facts included in this presentation may be forward-looking statements. Forward-looking statements also often use words such as "will", "forecast", "potential", "estimate", "expect" and words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and should be considered in light of various important factors, including those set forth in this disclaimer and in the Group's Annual Integrated Report and Annual Financial Report, published on 29 March 2019, and the Group's Annual Report on Form 20-F filed by Sibanye-Stillwater with the Securities and Exchange Commission on 5 April 2019 (SEC File no. 001-35785). Readers are cautioned not to place undue reliance on such statements.
The important factors that could cause Sibanye-Stillwater's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, our future business prospects; financial positions; debt position and our ability to reduce debt leverage; business, political and social conditions in the United Kingdom, South Africa, Zimbabwe and elsewhere; plans and objectives of management for future operations; our ability to obtain the benefits of any streaming arrangements or
pipeline financing; our ability to service our bond Instruments (High Yield Bonds and Convertible Bonds); changes in assumptions underlying Sibanye-Stillwater's estimation of their
current mineral reserves and resources; the ability to achieve anticipated efficiencies and other cost savings in connection with past, ongoing and future acquisitions, as well as at existing operations; our ability to achieve steady state production at the Blitz project; the success of Sibanye-Stillwater's business strategy; exploration and development activities; the ability of Sibanye-Stillwater to comply with requirements that they operate in a sustainable manner; changes in the market price of gold, PGMs and/or uranium; the occurrence of hazards associated with underground and surface gold, PGMs and uranium mining; the occurrence of labour disruptions and industrial action; the availability, terms and deployment of capital or credit; changes in relevant government regulations, particularly environmental, tax, health and safety regulations and new legislation affecting water, mining, mineral rights and business ownership, including any interpretations thereof which may be subject to dispute; the outcome and consequence of any
potential or pending litigation or regulatory proceedings or other environmental, health and safety issues; power disruptions, constraints and cost increases; supply chain shortages
and increases in the price of production inputs; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary stoppages of mines for safety incidents and unplanned maintenance; the ability to hire and retain senior management or sufficient technically skilled employees, as well as their ability to achieve sufficient representation of historically disadvantaged South Africans' in management positions; failure of information technology and communications systems; the adequacy of insurance coverage; any social unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye-Stillwater's operations; and the impact of HIV, tuberculosis and other contagious diseases.
These forward-looking statements speak only as of the date of the content. Sibanye-Stillwater expressly disclaims any obligation or undertaking to update or revise any forward- looking statement (except to the extent legally required).
2
A unique, diversified, global, precious metal company
27%
Reserves (Moz %)
2018
73%
SA4 US
16% | 15% |
30% | 32% |
Production | Adj EBITDA |
(oz%) | (Rm%) |
Q3 2019 | Q3 2019* |
54% | 53% |
SA gold (oz %)
SA PGM (6E %)
US PGM (2E %)
Americas assets
US PGM | ||
Marathon project | ||
East Boulder mine(100%) | with Generation mining | |
Reserves: 10.9Moz 2E | ||
Stillwater mine(100%) | ||
Altar project | ||
Reserves: 14.8Moz 2E | ||
with Aldebaran (in | ||
Argentina) | ||
*Include SA gold and SA PGM operations inclusive of Lonmin's Reserve and Resource declaration as at Sep 2018
Shares in issue1 | 2,670,029,252 |
Shares in ADR form2 | 719, 621, 508 (ADR ratio 1:4 ordinary share) |
Market cap¹ | R76 billion (US$5.1 billion) |
Listings | JSE Limited share ticker: SGL |
NYSE ADR programme share ticker: SBGL | |
Net debt: Adj EBITDA | Gearing of 1.7x Net debt :adjusted EBITDA* 3 |
at 30 September 2019 |
SA PGM | Southern African assets | SA GOLD |
Mimosa (50%) | Cooke surface | |
Reserves: 1.7Moz 4E | Reserves: 0.159Moz Au | |
Marikana (100%)4 | Kloof: | |
Reserves: 31.2Moz 4E | Reserves: 5.0Moz Au | |
Platinum Mile (91.7%) | Driefontein | |
Reserves: n.a. | Reserves: 3.3Moz Au | |
Rustenburg (100%): | DRDGOLD (38.05%) | |
Reserves: 14.5Moz 4E | Reserves: 2.2Moz Au | |
Kroondal (50%) | Beatrix | |
Reserves: 1.5Moz 4E | Reserves: 1.2Moz Au |
Quality portfolio of assets poised to excel
¹ Shares in issue and market cap as at 18 November 2019 2 American depository receipts (ADRs) as at 18 November 2019 3 Definition as per debt covenants which includes 12 months pro-forma adjusted EBITDA of Marikana | 3 |
operations 4 Includes the declaration as per Lonmin at 30 Sep 2018 before the acquisition thereof *The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included |
in the facility agreements for compliance with the debt covenant formula. For a reconciliation please refer to the additional Q3 2019 results disclosure available on https://www.sibanyestillwater.com/news-investors/reports/quarterly/
Our values define the way we do business - in the interests of all stakeholders
OUR VISION
SUPERIOR VALUE CREATION | PURPOSE |
FOR ALL OUR STAKEHOLDERS | |
through the responsible | Our mining |
mining of our mineral | |
improves lives | |
resources | |
• Recognised the importance of all stakeholders to the success and sustainability of our business from the start - superior value creation for all of our stakeholders
• 26 August 2019: 181 CEO's of the Business Round table in the United
States released a statement on "the Purpose of a Corporation" which moves away from shareholder primacy and includes a
commitment to lead companies for the benefit of all stakeholders
4
Our commitment towards ESG and related reporting guidelines
- Responsible Gold Mining Principles
- An over-arching framework that sets out clear expectations as to what constitutes responsible gold mining.
- Designed to provide confidence to investors, supply chain participants and investors that gold has been produced responsibly.
- Implementing companies will be required to publicly disclose conformance and obtain external assurance on this.
- Reflects the commitment of the world's leading gold mining companies to responsible mining.
- Other ESG commitments, reporting guidelines and recognition by inclusion in ESG indices
5
To build this unique Group we had to transform significantly over 6 years
2013¹ Market cap: R10 billion
Perceived high
cost, short life SA gold company
Value accretive and high quality PGM acquisitions
A major, global precious metal company
2019² Market cap: ~R76 billion
- Reduced costs
- Improved flexibility and quality of mining
- Substantial increase in reserves enhanced by synergistic acquisitions
- Significantly extended operating life
- Included Cooke and Wits gold acquisitions
- Reduced debt/gearing
- Delivered consistent, industry leading returns
- Significant PGM acquisitions (Aquarius and Rustenburg operations in 2016) at the bottom of the PGM price cycle
- Innovatively financed strategic growth enhancing value
- Implementation of operating model and realisation of consolidation synergies yielding superior value ahead of schedule
- Acquisition of Stillwater (located in Montana, United States) in May 2017 was transformative, creating a globally competitive and unique SA mining company
- Unique commodity mix and global geographic presence
- Lonmin acquisition in June 2019 concluded 4th step in PGM strategy
- Secures entire beneficiation chain in SA as well as providing significant optionality to PGM prices
- Well positioned for further success
Delivering value while diversifying risk at the bottom of the cycle
¹ 11 February 2013, Source: IRESS | 6 |
² 18 November 2019 , Source: IRESS | |
Expected production profile represents a lasting, quality mix of precious metals
If we had made no further acquisitions
or implemented our operating model since unbundling
Base of gold operations' life of mine upon unbundling in 2013
Our life of mine profile post various value accretive acquisitions
Expected PGM and gold* life of mine production plan
5
5
(next 10 years displayed)
Million ounces
4
3
2
1
0
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | |
Beatrix Base | Driefontein Base | |||||||||||||||
Kloof Base | Surface | |||||||||||||||
4 | |
ounces | 3 |
Million | 2 |
1 | |
0 |
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 |
SA PGM operations (4E PGMs) | US PGM operations (2E PGM oz) | ||||||||
US Recycling, (2E PGM oz) | Gold operations (oz) | ||||||||
Lonmin operations (4E PGM oz)
• Source: Company information | 7 |
Successfully concluded our four-step PGM strategy at favourable prices
Aquarius
Rustenburg
Stillwater
Lonmin
- First entry into the SA PGM sector - Apr 2016
- Lean, well run company
- Operational performance increased to further record levels since acquisition
- Effective Nov 2016
- Smart transaction structure aligned with expectations of platinum market outlook
- Significant synergies with Aquarius and gold central services
- Realised synergies of ~R1bn in 14 months, well ahead of previous target of R800m over a 3-4 year period
- Tier one, US PGM producer acquired in May 2017
- High-grade,low-cost assets with Blitz, a world-class growth project
- Provides geographic, commodity and currency diversification
- 78% palladium content provides upside to robust palladium market
- Effective June 2019. Acquisition price at attractive point in platinum price cycle
- Significant potential synergies exist with our SA PGM assets
- Aligns with Sibanye-Stillwater'smine-to-market strategy in SA and adds commercially attractive smelting and refining
- Sizeable resources expected to provide long-term optionality
Built a leading and influential PGM business at a favourable stage in the precious metals cycle for a total of R38bn (US$2.59bn1) within four years:
- R4.3bn Aquarius transaction in Apr 2016
- R3.7bn2 Rustenburg in Nov 2016
- US$2.2bn for Stillwater effective in May 2017
- Lonmin all share acquisition in June 2019 at R4.3 bn3 / US$288m3
Executing clearly communicated four step strategy to create a unique PGM business
1. | Converting R38bn to US dollar using a US$/R14.68 exchange rate as of closing prices on 18 September 2019 | |
2. | R1.5bn upfront payment to Amplats plus current estimate of R2.2bn deferred payment (refer to notes to the financial statements for reference) | |
3. | Estimate purchase price (not accounting value) of the Lonmin transaction based on Lonmin share capital figure of 290,394,531 shares in fixed ratio of 1:1 resulting in 290,394,531new Sibanye- Stillwater | 8 |
shares. Considerations estimate based on spot Sibanye-Stillwater closing share price on the JSE of R14.83 per share on 7 June 2019. US$ price converted at R14.94 |
Created significant flexibility and optionality to SA PGM resources and reserves
Resources* (4E PGMs) | Reserves* (4E PGMs) | ||||
1% | 5% | ||||
2% | 9% | ||||
4% | |||||
38% | |||||
Total | Marikana ops and | 28% | Total | ||
29% | 278Moz | surface | 52Moz | ||
Projects (Lonmin) | 60% | ||||
Kroondal | |||||
19% | Rustenburg | 3% | |||
2% | Mimosa | ||||
Surface |
Projects
Lonmin added sizeable PGM Resources with potential upside from advanced brownfield projects and greenfield project pipeline | ||
Source: Company information | 9 | 9 |
* Mineral Reserves and mineral Resources declared as at 31 December 2018 except for Lonmin/ Marikana Reserve and Resource figures are as per their declaration as at Sep 2018 before the acquisition by Sibanye-Stillwater. This |
declaration is currently subject to an economic valuation aligned to our policy
Track record of successful integration of previous SA PGM acquisitions
- Rustenburg and Kroondal synergies
- Initially estimated as R800 million over 3 to 4 years
- Successfully realised > R1 billion of synergies over 14 months
1
2
3 | 1. | Northam | ||
2. | Anglo America Platinum | |||
3. | Siyanda Resources | |||
4 | 4. | Sedibelo Platinum | ||
5. | Wesizwe Platinum | |||
2 | 6. | Royal Bafokeng Platinum | ||
7. | Impala Platinum | |||
8. | Eastern Platinum | |||
9. | Sibanye-Stillwater | |||
6 | Rustenburg and Kroondal | |||
operations | ||||
5 | Marikana operations | |||
6 | (previously Lonmin) | |||
6 | ||||
7 | ||||
9 | 7 | 8 | 1 | |
9 |
Adjacent operations providing significant synergy opportunities
10
Synergies with Marikana expected to provide operational viability
Pre-tax synergies of approx. R1.5bn annually1
Quantified synergies
- Overhead costs (R730m annually by 2021)
- corporate office rationalisation (closing London office and delisting)
- regional shared services
- operational (mining) services
- once-offR80m cost required to achieve these synergies
- Processing synergies
- differential cost benefits of R780m and an average of approximately R550m annually if moving Rustenburg material to Lonmin PMR
- Capex of approximately R1bn required for purchase of a new furnace
Incremental synergy potential2
- Ability to mine through existing mine boundaries
- Optimal use of surface infrastructure
- Optimising mining mix
- Prioritisation of projects and new growth capital
- Capital reorganisation in line with new consolidated regional plan
Providing sustainability through realizing synergies and instilling appropriate cost structures for sustainable production levels
1.For further information, please refer to page 17, 58 to 60 of the offer announcement on 14 Dec 2017, available at https//sibanyestillwater.com/investors/transactions/lonmin/documents but realisation delayed by a year due
to delayed closing of transaction11 2. Synergies which are unquantifiable at this point in time
Significant transformation into a leading, global precious metals company
Sibanye-Stillwater global PGM ranking - Primary production
2018A platinum | 2018A palladium | ||||||||
production (Moz) | production (Moz) | ||||||||
Sibanye-Stillwater² | Norilsk¹ | 2.73 | |||||||
1.48 | |||||||||
Amplats¹ | Sibanye-Stillwater² | ||||||||
1.32 | |||||||||
1.13 | |||||||||
Amplats¹ | 1.01 | ||||||||
Impala¹,* | |||||||||
1.31 | |||||||||
Impala¹ | 0.82 | ||||||||
Norilsk¹ | 0.65 | North American Palladium¹ | 0.22 | ||||||
Northam¹ | 0.30 | Northam¹ | 0.14 | ||||||
RBPlats¹ | 0.26 | RBPlats¹ | 0.11 | ||||||
Source: Company filings
Notes:
- Peer group information using public company filings with platinum, palladium and rhodium reflect primary production (where available) for 2018 actual. RBPlats based on H1 2019 production. Impala does not disclose primary production for palladium and therefore a similar ratio as the platinum primary production to total production was assumed. North American Palladium also does not disclose primary production for palladium therefore total production was used
- 2018 full year production from Sibanye - Stillwater proforma Lonmin (Sep 2018 annuals) excluding recycling volumes
* Impala's production represent the June 2019 year-end results issued on 5 September 2019
Positioned globally as a leading precious metals producer
12
Significant transformation into a leading, global precious metals company
Sibanye-Stillwater global PGM ranking - Primary production | Sibanye-Stillwater global gold ranking |
2018A rhodium
production (Koz)
Sibanye-Stillwater²196
Amplats¹ 178
Impala¹,* 164
Northam¹44
RBPlats¹ 21
2018A gold and gold equivalents production (Moz)
Newmont Goldcorp¹ | 7.40 | |||
Barrick¹ | 5.81 | |||
Sibanye-Stillwater² # | 3.64 | |||
AngloGold¹ | ||||
3.40 | ||||
Kinross¹ | 2.48 | |||
Polyus¹ | 2.44 | |||
Freeport-McMoRan¹ | ||||
2.44 | ||||
Gold produced | ||||
Gold equivalents |
Source: Company filings
Notes:
- Peer group information using public company filings with platinum, palladium and rhodium reflect primary production (where available) for 2018 actual. RBPlats based on H1 2019 production. Impala does not disclose primary production for rhodium therefore a similar ratio for platinum primary production to total production was assumed
- 2018 full year production from Sibanye - Stillwater proforma Lonmin (Sep 2018 annuals) excluding recycling volumes
-
Gold equivalents calculated using a PGM basket price of R473,548/kg and gold price of R552,526/kg
* Impala's production represent the June 2019 year-end results issued on 5 September 2019
Positioned globally as a leading precious metals producer
13
On the cusp of a re-rating
Revenue drivers - precious metals prices
R/oz
- 000
- 000
- 000
- 000
- 000
- 000
- 000
- 000
- 000
H1 2017
Ave: 16,326/oz
Ave: US$836/2Eoz
Ave: R12,039/4Eoz
H2 2017 | H1 2018 | H2 2018 | H1 2019 |
Ave: US$1,284/2Eoz |
Ave: 18,552/oz
Ave: 17,087/oz | Ave: US$992/2Eoz | Ave: 17,297/oz | ||||||||||
Ave: US$1,000/2Eoz | Ave: R16,752/4Eoz | |||||||||||
Ave: US$945/2Eoz | Ave: 16,216/oz | |||||||||||
Ave: R12,952/4Eoz | ||||||||||||
Ave: R14,556/4Eoz | ||||||||||||
Ave: R12,952/4Eoz |
1 800
Spot: US$1,564/2Eoz
1 600
Spot: R22,720/4Eoz
Spot: R22,033/oz
1 400
1 200
US$/oz
1 000
800
600
400
Gold R/oz | PGM basket (R/4Eoz) | PGM basket (US$/2Eoz) | ||
Increasing precious metals prices and depreciating rand driving profitability and cash flow in H2 2019
Source: IRESS | 15 |
Net debt reduced with proactive debt management
Net debt reduced and de-leveraging acceleration expected
- Well within the 3.5x covenant limit - Net debt: adjusted EBITDA of 1.7x as per the covenant calculations*
- Net debt: adjusted EBITDA ratio expected to reduce significantly by end 2019 as the impact of the events in H1 2019 are diluted by a more stable outlook and normalised earnings from the enlarged Group, alongside the lower net debt values
Debt management to improve capital structure
- Two transactions executed during April 2019 to improve liquidity and accelerate deleveraging
- Raised R1.7bn (US$120m) of funding through the issue of shares at near 52 week high prices
- Raised US$125m (R1.7bn) of funding through a Gold Prepayment arrangement
- The US$169m Lonmin PIM Prepayment arrangement was settled from cash on hand within the Lonmin group in July 2019
- Marikana's liquidity and funding are to be provided from Group funding facilities at a cost of below 5% pa compared to the 15% pa cost incurred (both in USD terms) under the Lonmin PIM Prepay. Results in an approximately US$15m (R210m) pa funding cost reduction
Net debt to adjusted EBITDA
30 000
25 000
R million
20 000
15 000
Jun | Sep | Dec | Mar | Jun | Sep | Dec | Mar | Jun | Sep |
17 | 17 | 17 | 18 | 18 | 18 | 18 | 19 | 19 | 19 |
Net debt balances (rhs)
Net debt: Adjusted EBITDA (lhs)
Covenant limit (rhs)
4.0
3.5
3.0
2.5
2.0x
1.5
1.0
0.5
0.0
Reduced debt and improved ND:EBITDA ratio
*For covenant calculations Marikana's pro forma EBITDA is utilised (i.e. adjusted to represent a full 12 month period, rather than just 4 month as consolidated for accounting purposes) in order to more | 16 |
accurately represent the enlarged entity post an acquisition. This results in a 1.7x Net debt: adjusted EBITDA ratio for covenant calculation purposes, compared to the 3.2x ratio from the financial results |
Limited near term debt servicing
Adjusted Debt maturity ladder as at 30 June 2019 in USD* (i.e. Capital repayment profile)
2 500
2 000 | |||
1 500 | 338 | ||
million | |||
388 | |||
US$ | 1 000 | ||
347 | |||
500 | 216 | 216 | |
336 | 448 | ||
0 | 112 |
2019202020212022202320242025
R5.5bn ZAR RCF | $600m ZAR RCF | |
$354m 6.125% 2022 bonds | $384m 1.875% 2023 convertible | |
$347m 7.125% 2025 bonds |
Strong liquidity with extended debt maturity tenor
* All values are as at 30 June 2019 and the R14.10/$ exchange rate at that date.
-
The 3 year R5.5bn ZAR RCF
(US$390m) includes the option to extend the tenor for a further two years and/or increase the facility value to R7.5bn (US$530m) - The 3 year US$600m USD RCF (R8.5bn) includes the option to extend the tenor for a further two years and/or increase the facility value to US$750m (R10.5bn)
- 75% of the USD RCF lenders have approved the first one year extension to the April 2021 maturity
- Additional tenor extensions and/or value uplifts could be approved by the lenders if requested by Sibanye- Stillwater
17
But it is a journey and we have not arrived yet...
We are working towards… | … and we are currently at | Status | ||
Building a values-based culture
Focus on operational excellence
De-leveraging ongoing
- significant reduction expected by end of 2019
- to 1.0x in the longer term
Addressing our SA discount
Readiness for value accretive growth once deleveraging accomplished and inherent value recognised in equity rating
Promoting values-based behaviour through inclusive involvement Culture growth programme strengthening cohesion and engagement
Senior leadership driving segment-specific operational delivery strategies Constructive safe production trends emerging
1,7x* net debt: adjusted EBITDA at end Q3 2019 - well below the 3.5x covenant
- Impacted by gold strike and deferred earnings from Rustenburg
- sustained higher commodity prices and weaker R/US$ exchange rate support accelerated de-leveraging
Benefit of diversified operations reducing relative exposure to SA
Exploring options to further enhance resilience to socio-political developments
Commodities market intelligence strengthened through acquisition of SFA Oxford
- Definition as per debt covenants which includes 12 months pro-forma adjusted EBITDA of Marikana operations. The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt covenant formula. For a reconciliation please refer to the additional Q3 2019 results
disclosure available on https://www.sibanyestillwater.com/news-investors/reports/quarterly/ | 18 |
A unique value proposition
A leading precious | 3rd largest | Biggest | 2nd | Leading |
gold and gold | GLOBAL primary | largest | GLOBAL | |
metal company | equivalent | PRODUCER of | primary | PGM |
platinum and | ||||
globally | rhodium | producer of | recycler | |
Palladium | ||||
Delivery of superior value to all stakeholders drives strategy
Operational | Gold mine life | Proudly South | The PURPOSE of |
>15 years | |||
excellence and | African while | ||
PGM mine life > | our mining is to | ||
innovative growth to | competing on a | ||
IMPROVE LIVES | |||
create sustainability | 30 years | global stage | |
19
Questions?
Contacts
James Wellsted/ Henrika Ninham
ir@sibanyestillwater.com
Tel:+27(0)83 453 4014/ +27(0)72 448 5910
Appendix
Safety moment - Zero harm strategic framework
OUR VALUES
Commitment
Accountability | ENGAGED LEADERSHIP |
Respect | |
ENABLING ENVIRONMENT
Reducing risk exposure by maintaining a safe working environment with equipment, tools and material that enable sustainably safe production
EMPOWERED PEOPLE
Ensuring the required number of trained people to apply relevant standards and procedures to work safely
- Real risk reduction initiatives ongoing
- Working place layout improvements
- Focus on the elimination of 'A' Hazards
- Infrastructure improvement
- Rail-boundequipment safety enhancements
- Safe Production leadership and culture
- Individual, team and organisation
- Mirror sessions at SA gold operations
- Values-baseddecisions intervention
- Safety days
- Section 23 withdrawals reinforcement
Enabling
Safety
OUR VALUES
FIT-FOR-PURPOSE SYSTEMS
Subscribing to international best practice principles and integrated systems with a view to certification in the longer term
• Bow-tie risk management process | • Enhanced Trigger Action Response Plan | |
introduced | (TARP) for improved rock mass | |
- | University of Queensland coaching | management |
sessions on critical controls | • ISO 45001 Occupational Health & Safety | |
- | Root cause analysis | Management System implementation on |
• Independent high potential incident reviews | track | |
• Life-saving rules introduced | • ICMM membership | |
in progress |
22
Group safety statistics - continued improvement
Lost day injury frequency rate (Group)
8.00 | ||||||
7.00 | ||||||
6.00 | ||||||
5.00 | ||||||
4.00 | ||||||
3.00 | ||||||
2.00 | ||||||
1.00 | 5.87 | 6.74 | 6.62 | 5.78 | 5.89 | 5.21 |
0.00 | ||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 Prog |
Serious injury frequency rate (Group)
5.00
4.00
3.00 | |||||||
2.00 | |||||||
1.00 | |||||||
3.88 | 4.68 | 4.16 | 3.57 | 3.7 | 3.17 | ||
0.00 | |||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 Prog |
Fatal injury frequency rate (Group)
0.18 | ||||||
0.16 | ||||||
0.14 | ||||||
0.12 | ||||||
0.1 | ||||||
0.08 | ||||||
0.06 | ||||||
0.04 | ||||||
0.02 | 0.12 | 0.06 | 0.10 | 0.07 | 0.161 | 0.035 |
0 | ||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 Prog |
Fatal injury frequency rate (Gold operations only)
0.250 | ||||||
0.200 | ||||||
0.150 | ||||||
0.100 | ||||||
0.050 | ||||||
0.117 | 0.065 | 0.108 | 0.086 | 0.237 | 0.000 | |
0.000 | ||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 Prog |
Source: Company information. Year progressive as at end Sep 2019 | 23 |
Prog 2019: January - end September 2019 |
Acquisition of SFA Oxford - fast tracking our PGM insights & technology
More about SFA Oxford (SFA)
Consulting analysts in tomorrow's commodities and technologies
A leading commodity consultancy with expertise in future technologies and mobility
SFA is a world-renowned authority on platinum-group metals and provides
market intelligence on strategic and precious metals for industrial applications,
clean automobiles and technologies for future smart cities, as well as on
evolving jewellery trends and investment
For more than 15 years, the SFA team has successfully undertaken complex assignments for producers, fabricators, end-users, recyclers and investors, whilst compiling the most comprehensive, independent supply and demand database
Acquiring tomorrow's PGM markets
24
2019 Annual guidance
Updated on 31 October 2019 | Production | All-in sustaining costs | Total capital |
US PGM operations | 590 - 610 koz | US$755 - 770/oz | US$235 - 245 million |
(2E PGMs mine production) | |||
SA PGM operations2 | 1.0 - 1.10 moz | R12,500 - 13,200/4Eoz | R1,400 million |
(excluding Lonmin) | (4E PGMs)2 | (US$922 - 974/4Eoz)¹ | (US$103 million)¹ |
Marikana operation 3 | 450 - 490 koz | R18,700 - 20,056/4Eoz | R1,108 million |
(4E PGMs)3 | (US$1,380 - 1,480/4Eoz)¹ | (US$82 million)¹ | |
SA Gold operations | 24,000kg - 25,000kg | R715,000/kg and R750,000/kg | R2,350 million |
(excluding DRDGOLD) - 2019 full year | (772 koz - 804 koz) | (US$1,640/oz and US$1,725/oz) | (US$173 million) |
- H2 2019 | 16,000kg - 17,000kg | R590,000/kg and R630,000/kg | R1,900 million |
(514 koz - 546 koz) | (US$1,350/oz and US$1450/oz) | (US$140 million) | |
Source: Company forecasts
- Estimates are converted at an exchange rate of R13.55/US$
- SA PGM operations' production guidance include the 50% attributable Mimosa production, although AISC and capital exclude Mimosa due it being equity accounted
3. The Marikana operation was acquired in June 2019 and guidance reflects 7 months for the 2019 year | 25 |
Competent persons' declaration
The Competent Persons, designated in terms of SAMREC, who take responsibility for the reporting of Mineral Resources and Mineral Reserves and the overall regulatory compliance are the respective operational (per mining unit) and project based Mineral Resource Managers. The Competent Persons have sufficient experience relative to the type and style of mineral deposit under consideration and are full-time employees of or contracted to, based on prior employment with the Group, Sibanye- Stillwater. The Competent Persons confirmation signatures are presented in the CPRs per operation.
The Competent Persons further consent is given to the disclosure of this Mineral Resource and Mineral Reserve statement.
Corporate governance on the overall compliance of the company's figures and responsibility for the generation of a Group consolidated statement has been overseen by the lead Competent Persons listed below. The lead Competent Persons have given written consent to the disclosure of the 2018 Mineral Resources and Mineral Reserves statement. They are permanent employees or contracted by Sibanye-Stillwater.
For the United States Region, the lead competent person designated in terms of the SAMREC Code, who takes responsibility for the consolidation and reporting of the Stillwater and East Boulder Mineral Resources and Mineral Reserves, and for the overall regulatory compliance of these figures, is Brent LaMoure, who gave his consent for the disclosure of the 2018 Mineral Resources and Mineral Reserves Statement. Brent [B.Sc Mining Eng] is registered with the Mining and Metallurgical Society of America (01363QP) and has 23 years' experience relative to the type and style of mineral deposit under consideration. For the US project Resource estimation, the competent person is Stanford Foy. Stan is registered with the Society for Mining, Metallurgy and Exploration Inc. (4140727RM) and has 27 years' experience relative to the type and style of mineral deposit under consideration.
For the Southern African Platinum Group Metals (PGM) operations, the lead competent person designated in terms of the SAMREC Code, who takes responsibility for the consolidation and reporting of the SA Platinum Operations Mineral Resources and Mineral Reserves, and for the overall regulatory compliance of these figures, is Andrew Brown, who gave his consent for the disclosure of the 2018 Mineral Resources and Mineral Reserves Statement. Andrew [M.Sc Mining Eng] is registered with SAIMM (705060) and has 35 years' experience relative to the type and style of mineral deposit under consideration.
For the Southern African Gold operations, the lead competent person designated in terms of the SAMREC Code, with responsibility for the consolidation and reporting of the SA Gold Operations Mineral Resources and Mineral Reserves, and for overall regulatory compliance of these figures, is Gerhard Janse van Vuuren, who gave his consent for the disclosure of the 2018 Mineral Resources and Mineral Reserves Statement. Gerhard [GDE (Mining Eng), MBA, MSCC and B. Tech (MRM)] is registered with SAIMM (706705) and has 31 years' experience relative to the type and style of mineral deposit under consideration.
The 38.05% Attributable portion of the DRDGOLD current surface tailings operations including the ERGO and FWGR operations. For this attributable portion of the DRDGOLD resources and reserves, the company was reliant on external competent persons as follows: The Mineral Resources for the ERGO surface operations is based on depletion (up to December 2018) and the Competent Person designated in terms of SAMREC is Mr M Mudau, MSc Eng, Pr. Sci. Nat., the Resource Geology Manager at the RVN Group. The Competent Person designated in terms of SAMREC who takes responsibility for the reporting of the surface Mineral Reserves, also based on depletion up to December 2018, is Mr GJ Viljoen GPr MS 0256, an independent survey contractor.
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Sibanye Gold Limited published this content on 19 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 November 2019 14:14:08 UTC