JOHANNESBURG, 12 September 2024: Sibanye Stillwater Limited (Sibanye-Stillwater or the Group) (JSE: SSW and NYSE: SBSW) is pleased to report operating results and condensed consolidated interim financial statements (condensed consolidated financial statements) for the six months ended 30 June 2024.

SALIENT FEATURES FOR THE SIX MONTHS ENDED 30 JUNE 2024

  • Continued focus on safety results in ongoing risk reduction and best ever Group safety indicators recorded during H1 2024
  • Lower commodity prices drive 9% decline in revenue to R55.2bn (US$2.9bn)
  • Loss for the period of R7.1bn (US$0.4bn) includes non-cash impairments of R7.5bn (US$0.4bn)
  • Strong financial position maintained with 1.43x net debt: adjusted EBITDA14 well below covenant limits
  • Balance sheet strengthened through non-debt financing initiatives, with further financing in advanced stages
  • Decisive steps taken to optimise operations in the short and medium term
  • Low PGM prices lead to additional restructuring of US PGM operations, reducing 2E production by 200,000 2Eoz to cut costs
  • Benefits of restructuring of SA gold operations and central services expected from H2 2024
  • SA PGM operations deliver solid operational performance and positive free cash flow
  • Keliber lithium project fully funded through €500m green financing

KEY STATISTICS - GROUP

 

US dollar

 

 

 

 

 

SA rand

 

Six months ended

 

 

 

 

Six months ended

 

Jun 2023

Dec 2023

Jun 2024

 

KEY STATISTICS

 

Jun 2024

Dec 2023

Jun 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

GROUP

 

 

 

 

 

 

 

 

 

 

 

 

 

407

(2,458)

(397)

US$m

Basic earnings

Rm

(7,472)

(45,195)

7,423

324

(227)

7

US$m

Headline earnings

Rm

137

(4,107)

5,891

776

340

355

US$m

Adjusted EBITDA1,14

Rm

6,648

6,409

14,147

427

(2,459)

(379)

US$m

(Loss)/profit for the period

Rm

(7,138)

(45,216)

7,786

18.21

18.62

18.72

R/US$

Average exchange rate using daily closing rate

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

Page

 

 

Key statistics by region

2

 

 

Statement by the Group Chief Executive Officer

3

 

 

Safety and operational review

7

 

 

Financial review

12

 

 

Salient features - operational tables - six monthly statistics

21

 

 

Condensed consolidated financial statements

26

 

 

Notes to the condensed consolidated financial statements

29

 

 

Segment reporting - six month

46

 

 

All-in cost (reconciliation) - six months

54

 

 

Reconciliation of operating cost excluding third party PoC

55

 

 

Salient features - operational tables - quarterly statistics

61

 

 

All-in cost (reconciliation) - quarterly statistics

65

 

 

Development results

72

 

 

Non-IFRS measures

74

 

 

Administration and other corporate information

76

 

 

Disclaimer and forward-looking statements

77

 

 

Share data for the Six months ended 30 June 2024

Number of shares in issue

- at 30 June 2024

2,830,567,264

- weighted average

2,830,567,264

Free Float

99%

Bloomberg/Reuters

SSWSJ/SSWJ.J

 

 

JSE Limited - (SSW)

 

Price range per ordinary share (High/Low)

R18.22 to R27.17

Average daily volume

15,804,614

 

 

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

 

Price range per ADR (High/Low)

US$3.93 to US$5.69

Average daily volume

6,180,974

Sibanye-Stillwater Operating and financial results | Six months ended 30 June 2024

1

KEY STATISTICS BY REGION

 

US dollar

 

 

 

 

 

SA rand

 

Six months ended

 

 

 

 

Six months ended

Jun 2023

Dec 2023

Jun 2024

 

KEY STATISTICS

 

Jun 2024

Dec 2023

Jun 2023

 

 

 

 

AMERICAS REGION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US PGM underground operations

 

 

 

 

205,513

221,759

238,139

oz

2E PGM production2,3

kg

7,407

6,897

6,392

1,390

1,124

977

US$/2Eoz

Average basket price

R/2Eoz

18,289

20,928

25,312

53

(18)

27

US$m

Adjusted EBITDA14

Rm

488

(266)

976

1,737

1,992

1,343

US$/2Eoz

All-in sustaining cost4,14

R/2Eoz

25,149

37,090

31,633

 

 

 

 

US PGM recycling

 

 

 

 

162,452

147,862

154,938

oz

3E PGM recycling2,3

kg

4,819

4,599

5,053

2,735

1,939

1,252

US$/3Eoz

Average basket price

R/3Eoz

23,437

36,105

49,804

20

13

8

US$m

Adjusted EBITDA14

Rm

147

236

371

 

 

 

 

US Reldan operations5

 

 

 

 

 

 

0.32

US$m

Adjusted EBITDA14

Rm

6

 

 

 

 

 

 

SOUTHERN AFRICA (SA) REGION

 

 

 

 

 

 

 

 

PGM operations

 

 

 

 

799,182

873,745

828,460

oz

4E PGM production3,6,7

kg

25,768

27,177

24,857

1,867

1,304

1,309

US$/4Eoz

Average basket price

R/4Eoz

24,499

24,276

34,006

649

309

255

US$m

Adjusted EBITDA14

Rm

4,766

5,826

11,794

1,083

1,094

1,150

US$/4Eoz

All-in sustaining cost4,14

R/4Eoz

21,533

20,363

19,716

 

 

 

 

Gold operations

 

 

 

 

416,738

393,847

344,109

oz

Gold produced

kg

10,703

12,250

12,962

1,921

1,955

2,205

US$/oz

Average gold price

R/kg

1,327,000

1,170,362

1,124,871

130

63

117

US$m

Adjusted EBITDA14

Rm

2,201

1,148

2,375

1,813

2,008

2,078

US$/oz

All-in sustaining cost4,14

R/kg

1,250,647

1,202,225

1,061,477

 

 

 

 

EUROPEAN REGION

 

 

 

 

 

 

 

 

Sandouville nickel refinery

 

 

 

 

3,493

3,632

4,270

tNi

Nickel production8

tNi

4,270

3,632

3,493

26,888

21,075

20,309

US$/tNi

Nickel equivalent average basket price9

R/tNi

380,190

392,420

489,635

(35)

(37)

(15)

US$m

Adjusted EBITDA14

Rm

(280)

(701)

(627)

37,486

33,492

23,684

US$/tNi

Nickel equivalent sustaining cost10,14

R/tNi

443,366

623,615

682,628

 

 

 

 

AUSTRALIAN REGION

 

 

 

 

 

 

 

 

Century zinc retreatment operation11

 

 

 

 

24

51

42

ktZn

Zinc metal produced (payable)12

ktZn

42

51

24

1,640

1,766

2,366

US$/tZn

Average equivalent zinc concentrate price13

R/tZn

44,297

32,878

29,871

(28)

13

(19)

US$m

Adjusted EBITDA14

Rm

(351)

217

(502)

2,418

1,759

2,228

US$/tZn

All-in sustaining cost4,14

R/tZn

41,710

32,746

44,030

  • 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. 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 any other measure of financial performance and liquidity. For a reconciliation of profit before royalties and tax to adjusted EBITDA, see note 11.1 of the condensed consolidated financial statements
  • The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated to SA rand (rand). In addition to the US PGM operations' underground production, the operation treats various 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
  • The Platinum Group Metals (PGM) production in the SA operations is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US underground operations is principally platinum and palladium, referred to as 2E (2PGM) and US PGM recycling is principally platinum, palladium and rhodium referred to as 3E (3PGM)
  • See "Salient features and cost benchmarks - Six months " for the definition of All-in sustaining cost (AISC). The SA PGM All-in sustaining cost excludes the production and costs associated with the purchase of concentrate (PoC) from third parties
  • The acquisition of the Reldan Group of Companies (Reldan) was concluded on 15 March 2024. The six months ended 30 June 2024 include the results since acquisition. All salient features for the US Reldan operations are shown separately from the US PGM underground operations and the US PGM recycling
  • The SA PGM production excludes the production associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the production and third party PoC, refer to the "Reconciliation of operating cost excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana - Six months"
  • As previously announced, Sibanye Rustenburg Platinum Mines Limited had entered into a pool and share agreement to acquire Rustenburg Platinum Mines Limited 50% ownership of Kroondal. The acquisition became effective on 1 November 2023 after all conditions precedent had either been met or waived, therefore from 1 November 2023 the SA PGM operations includes 100% Kroondal
  • The nickel production at the Sandouville refinery operations is principally nickel metal and nickel salts (liquid form), together referred to as nickel equivalent products
  • The nickel equivalent average basket price per tonne is the total nickel revenue adjusted for other income less non-product sales divided by the total nickel equivalent tonnes sold
  1. See "Salient features and cost benchmarks - Six months" Sandouville nickel refinery for a reconciliation of cost of sales before amortisation and depreciation to nickel equivalent sustaining cost
  2. The Century zinc tailings retreatment operation is a leading tailings management and rehabilitation operation in Queensland, Australia. The Century operation was acquired by the Group on 22 February 2023 and amounts included since effective date of acquisition
  3. Zinc metal produced (payable) is the payable quantity of zinc metal produced after applying smelter content deductions
  4. Average equivalent zinc concentrate price is the total zinc sales revenue recognised at the price expected to be received excluding the fair value adjustments divided by the payable zinc metal sold
  5. Adjusted EBITDA, All-in sustaining cost (AISC) and nickel equivalent sustaining cost are not measures of performance under IFRS and should not be considered in isolation or as substitutes for measures of financial performance prepared in accordance with IFRS. See "Non-IFRS measures" on pages 74 and 75 for more information on the Non-IFRS metrics presented by Sibanye-Stillwater

Sibanye-Stillwater Operating and financial results | Six months ended 30 June 2024

2

STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER OF SIBANYE-STILLWATER

Considerable progress was made during the six-month period ended 30 June 2024 (H1 2024) to secure the sustainability of our operations through the current low-price environment, and to optimise operational cashflow to protect the integrity of our balance sheet while retaining optimal leverage to a recovery in the commodity price cycle.

The Group maintained a sound financial position, with undemanding Balance sheet leverage of 1.43x net debt: adjusted EBITDA at 30 June 2024 and well within our comfort levels. We have proactively reinforced the Group Balance sheet through a series of financial transactions since June 2024, which have resulted in additional debt headroom (before approaching our leverage covenants) of approximately R25 billion, and significantly enhanced Balance sheet liquidity and flexibility.

The actions we have taken have been decisive and are evidenced by reduced costs and improved profitability at most of our operations during H1 2024 compared with H1 2023, with the full cost benefits from recent restructuring in the SA region expected to materialise in coming periods. Further restructuring of the US operations for the lower PGM price environment will be undertaken, with the GalliCam project assessing the potential for repurposing of the Sandouville refinery potentially being repurposed for sustainability.

The measures taken have ensured that the Group is well positioned, not only to endure through this period of low commodity prices, but with improved optionality and leverage to a turn in the commodity price cycle, which will support ongoing value creation and strategic delivery.

Please note: there is price sensitive information in the H1 2024 results presentation which is not provided in this results document. The presentation will be available at H1 2024 results download linkfrom 14h00 (CAT) / 13h00 (GMT) / 08h00 (EST) / 06h00 (MT). The webcast of the presentation can also be accessed at Webcast link.

SAFE PRODUCTION

The continued improvement in Group safety performance for H1 2024 was pleasing, confirming that our safety strategy continues to gain traction with further real risk reduction in our operating environment. During H1 2024, the Group achieved its lowest recorded Serious Injury Frequency Rate (SIFR) and there has been a consistent decline in high potential incidents (HPIs) since H2 2022. Despite a 43% reduction in the fatal Injury frequency rate (FIFR) to 0.04 (per million hours worked), the loss of three colleagues (six for H1 2023) is tragic and our commitment, through our Fatality elimination strategy, to prevent further fatal incidents remains our utmost priority. On behalf of management and the Board of Sibanye-Stillwater, we wish to express our deep regret and extend our sincere condolences to the families and friends of our late colleagues; Mr Nelson Kunene, Mr Ekabang Hlasa and Mr Reginald Sekati, who are all deeply mourned.

The safety performance of the Group is covered in more detail on page 7 of this report.

STRATEGIC DELIVERY- FOCUSED ON OUR STRATEGIC ESSENTIALS

Our fundamental position regarding the longer-term outlook for the metals we produce and battery metals we will produce remains unchanged, with a considered and measured strategic response to the cyclical downturn in commodity prices. Our strategic focus is to ensure consistency through price cycles and our decisions are not taken based on short-term factors.

We are confident that our strategic interventions to secure operational sustainability and protect our Balance sheet will ensure that the Group will not only prevail through the current low-price cycle, but emerge exceptionally well positioned to benefit from a recovery in metal prices. Our strategy remains relevant and appropriate, and we are confident that we are well positioned for longer-term value creation.

As such, we have continued to invest in the development of the Keliber lithium project (perhaps somewhat counter cyclically during a period of oversupply, as expressed by some observers) to ensure that we are strategically positioned to supply locally produced Lithium Hydroxide (LiOH) necessary for the future development of the battery electric vehicle (BEV) sector in Europe. Despite the current oversupply of lithium, even under more moderate BEV growth assumptions than current market consensus, our analysis suggests that demand for lithium will continue to rise significantly. With permitting and financing of new mining projects becoming more challenging and costly, we believe that future demand will outstrip the increase in new supply of lithium required to support the projected growth resulting in increasing deficits over the latter half of this decade. Moreover, with current low prices being a disincentive to the development of new projects, we remain confident that we will be suitably positioned to deliver production from the Keliber lithium project into the growing deficit market.

Importantly, leading regional financial institutions, the European Investment Bank and Finnish credit agency Finnvera, along with a consortium of leading global banks with specific development financing mandates, participated in the recent €500 million (R9.9 billion) green financing loan raised for the Keliber lithium project. This is a significant vote of confidence in the project and underpins the project's commercial viability, ESG credentials as well as underscoring its strategic importance to the European clean energy transition. The green loan also provides cost-effective,long-term funding required for the full development of the project, as well as enhancing Group liquidity and effectively ring-fencing the existing Group facilities for operational requirements as intended.

Bolstering Balance sheet strength and increasing liquidity

While the Group Balance sheet at the end of H1 2024 remained healthy with net debt to adjusted EBITDA of 1.43x undemanding, in the current uncertain macro-economic environment we retain the prudent approach outlined in the 2023 results presentation in February 2024 to proactively mitigate increases in net debt until positive cashflow from operations is restored.

In June 2024, following proactive engagement with our lenders, the leverage covenant limit for all Group facilities was uplifted to 3.5x for the period from 30 June 2024 to 30 June 2025 inclusive, and to 3.0x for the period from 31 July 2025 to 31 December 2025 inclusive, providing significant financial headroom and reducing financial risk. Assuming adjusted EBITDA of R13 billion (H1 2024 annualised), the covenant uplift to 3.5x provides implied additional net debt headroom of R13 billion until July 2025 and R6.5 billion to the end of December 2025.

During Q3 2024 further actions have been taken to bolster and de-risk the Group Balance sheet, including:

  • Refinancing and upsizing the rand revolving credit facility (RCF), which was due to mature on 11 November 2024, from R5.5 billion to R6.0 billion. The refinanced rand RCF matures in August 2027, thereby extending the period before possible repayment of the first debt obligation by two years. The refinanced facility includes options to further increase the rand RCF by R1 billion during the term through the inclusion of additional lenders, and to extend the facility tenor at the request of Sibanye-Stillwater by means of two further one-year extensions. This is a strong signal of confidence and support from our South African lenders

Sibanye-Stillwater Operating and financial results | Six months ended 30 June 2024

3

  • A first alternative non-debt financing transaction was also concluded in August 2024. A gold prepayment arrangement for delivery of 1,497 kilograms (48,129oz) of gold in equal monthly tranches from October 2024 to November 2026 secured the Group a minimum of R1.8bn (US$100 million) in non-debt financing. The gold delivered will be subject to a floor price of R1,350,000 per kilogram and a cap price of R1,736,000 per kilogram, providing up to 28% upside exposure to higher gold prices
  • The Group is also in advanced stages of securing approximately US$600 million to US$700 million additional non-debt financing through potential prepays and streams (chrome, gold, PGM) from operations in the SA region

In total, these financial management transactions have added approximately R25 billion (US$1.4 billion) of additional debt headroom for the Group balance sheet, and enhanced Group financial liquidity, flexibility and optionality. Further non-debt financing (streams and prepays), if secured, would result in total proforma financing of approximately R36.2 billion (US$2.0 billion) to R38.1 billion (US$2.1 billion).

These proactive measures are likely to be regarded positively by the credit rating agencies, helping to reduce concerns relating to credit rating adjustments (the Group credit rating was recently maintained at BB- by S&P).

For some time now, the Group debt position and future financial leverage have been cited as primary risks by sell side analysts, some of whom raised concerns in the market about a possible dilutive equity capital raise or rights issue as early as H2 2024. We are confident that this perception is now moot.

Optimising operations for profitability and sustainability

The operational initiatives implemented since 2022 have been decisive, and the benefits are beginning to come through in improved financial and operating results for most of the Group operations, preserving cash flow through the current low-price environment.

Further to the expected cost and capital savings (aiming at resetting the cost base) and capital reductions and/or deferrals, which were detailed in the H2 2023 operating and financial results in February 2024, additional annual cost and efficiency benefits of R461 million (US$26.5 million) are expected from the recently concluded restructuring of the Kloof 2 Plant and realignment of the SA region services functions to the reduced operational footprint in the SA region. In comparison to the 2022 cost base, the anticipated benefits outlined in February 2024 have been confirmed with an increased value of R6.6 billion (US$375 million) as detailed below. The gross expected benefit from the actions taken to date is therefore expected to be R7 billion (US403 million).

The repositioning actions and the anticipated benefits are summarised below:

  • February 2023: Closure of Beatrix 4 Shaft and Kloof 1 processing plant (annual benefit of R830 million/US$48 million)
  • November 2023: Closure of Kloof 4 shaft (annual benefit of R1.4 billion/US$80 million)
  • November 2023: Further repositioning of US PGM operations for ongoing decline in 2E basket price (annual benefit of R1.3 billion/US$77 million and capital benefit for 2024 of R1.4 billion/US$79 million)
  • February 2024: Restructuring of SA PGM operations - closure of Simunye shaft and 4 Belt shaft from April 2024, rightsizing of Siphumelele and Rowland shafts (annual benefit of R810 million/US$46 million)
  • April 2024: Re-alignment of the SA regional structure and closure of the Kloof 2 processing plant coupled with the deferral of the Burnstone project (annual benefit of R461 million/US$27 million and capital benefit for 2024 of R1.2 billion/US$69 million)

While the initial benefits from the operational restructuring and optimisation initiated during 2023 are evident in improved operating cost and financial results from the US PGM operations and the Sandouville refinery for H1 2024 compared with H2 2023, due to the more protracted closure process at the deeper SA mines, the full cost and efficiency benefits from restructuring of the SA operations and regional services are expected to materialize in a phased manner over the next 6 months and only reflect fully from 2025.

SA region

SA PGM operations

The SA PGM operations delivered another solid performance, increasing production and generating positive free cashflow for H1 2024. Lower production from the restructuring of loss-making shafts (two of which were closed and two restructured), as well as reduced production from Siphumelele shaft as a result of the shaft bin failure and at Kroondal due to the illegal industrial action, was more than offset by the consolidation of an additional 50% of Kroondal production following the acquisition of Anglo American Platinum Corporation Ltd''s (Anglo American Platinum) 50% shareholding in November 2023. The average 4E PGM basket price resulted in a 4% production (excluding PoC) increase to 828,460 4Eoz, with AISC 9% higher year-on-year to R21,533/4Eoz (US$1,150/4Eoz) (excluding PoC cost). A 28% decline in the average 4E PGM basket price however resulted in adjusted EBITDA declining by 60% to R4.8 billion (US$255 million). Free cash flow of R849 million (US$45 million) reflects a strong recovery from a negative adjusted free cash flow of R263 million (US$14 million) for H1 2023. Further cost benefits from restructuring in the SA region are expected to emerge in coming periods, further underpinning cash flow.

The Kroondal transaction is value accretive for all stakeholders and will extend the life of the Kroondal operations by 10 years, adding 1.7M 4Eoz of additional production whilst bringing forward significant value through the early mining of SRPM resources from low cost Kroondal infrastructure. Whilst the move from Purchase of Concentrate (PoC) to toll will result in AISC for Kroondal increasing, it will also derive full exposure to the metal price and higher margins at spot prices, although H2 2024 operating and financial results will be affected by the transition due to the timing in which production and sales are declared. The consolidation of Kroondal under Sibanye-Stillwater's ownership will also be effected through the consolidation of Kroondal into the Rustenburg operation, creating a simpler management structure and allowing for the Kroondal employees to join the Rustenburg Employees share ownership plan once the merger is finalised.

SA gold operations

Gold production from the SA gold operations of 10,703kg (344,109oz) for H1 2024 was 17% lower than for H1 2023 with AISC of R1,251k/kg (US$2,078/oz), 18% higher, primarily due to cessation of production from Kloof 4 shaft during 2023 but with some costs still being incurred during Q1 2024 due to the phased closure process. Adjusted EBITDA from the SA gold operations of R2.2 billion (US$117 million) was 7% lower than for H1 2023, but 92% higher than for H2 2023, with comparisons strongly influenced by the closure of Kloof 4 shaft. Free cash flow improved by R1.2 billion compared with H2 2023.

Improvements at the Driefontein and Beatrix operations are expected to be sustained into H2 2024, with ongoing cost and efficiency benefits from the SA region restructuring also expected to be realised over the next year. The Burnstone project has been delayed to preserve capital with 2024 expenditure restricted to preserving optionality for potential resumption of the project under more favourable conditions.

Flexibility at the Kloof operation has been impacted by the closure of Kloof 4 shaft with the mine experiencing elevated levels of seismicity during H1 2024 in high grade areas. The creation of flexibility with additional production from the extensive secondary reefs, as well as

Sibanye-Stillwater Operating and financial results | Six months ended 30 June 2024

4

access to targeted higher grade VCR areas, is currently being planned and executed. This includes a review of the Kloof infrastructure to support a lower cost base with enhanced operational flexibility.

SA uranium

We are looking to monetise our SA region uranium assets through commercial arrangements without recourse to our Balance sheet while retaining optionality to positive uranium market fundamentals. The SA uranium assets comprise 32.2mlbs (U3O8) contained in the Cooke TSF and 26.9 mlbs (U3O8) shallow underground resources at the Beisa (Beatrix 4 shaft) resource. Both opportunities are likely to be realized through partnerships following appropriate studies. In March we announced the appointment of Greg Cochran as Executive Vice President (EVP) Head of Uranium. Greg, a respected international mining executive with over 30 years of experience in a diverse range of commodities and in various leadership positions globally and in uranium will be responsible for developing and driving the strategies to realise and optimise the inherent value of the uranium resources.

European region

Keliber lithium project

The Keliber lithium project is progressing well with commissioning of the refinery on track to initially treat third party concentrate during 2025 and first production from own ore during 2026. Due to various factors, capex is unlikely to meet the original guidance of €361 million for 2024 and has been guided down to €300 million, albeit without changes to the overall project budget and timing at this stage. The reduction in capex guidance has positive implications for Group cashflow for 2024, effectively preserving €61 million (R1.2 billion) cash, noting that this is ringfenced for financing of the Keliber lithium project.

Sandouville refinery

The operating performance of the Sandouville refinery was significantly improved as a result of improved circuit availability and production stability following repairs to the cathode units in the electro winning circuit in mid-2023 and other improvements to the plant. Nickel production of 4,270tNi was 22% higher than for H1 2023, with nickel equivalent sustaining cost declining by 37% to US$23,684/tNi (R443,366/tNi), primarily due to reduced feedstock purchase costs (lower nickel price), and lower reagent and overhead costs. Due to these cost and volume improvements and inventory movement benefits during Q1 2024, the adjusted EBITDA loss for H1 2024 of US$15 million (R280 million) was 57% lower than for H1 2023.

Due to a structural change in the nickel market and constraints regarding the further ramp up of production without additional capital investment, the Sandouville refinery is not economically viable in its current form producing nickel metals and nickel salts. Consistent with the Group's commitment to address operational losses and allowing for potential conversion of the Sandouville refinery for production of precursor cathode active material (pCAM), an agreement to terminate the commercial supply contract was reached at a cost of €37 million, with supply ceasing on or before 31 December 2024 and refining of inventory and sales extending into Q1 2025.

Our intention was always to convert or utilise the Sandouville operation to produce battery metals for the French battery industry. During investigations into the viability of producing nickel sulphate, the Gallicam project was identified as an alternative option by the leadership team. This envisages the conversion of the Sandouville facility to produce pCAM, which we believe will be a strategically important product delivered into the European battery ecosystem. It is expected to be lower cost and less capital intensive than current processes or greenfield developments because the novel chloride process identified utilizes most of the existing chloride processing circuit already in place at Sandouville. The chloride chemistry is also indicated to be more efficient and generates more benign waste products than current sulphate processes. We have submitted a patent application for our process in France and are engaging relevant stakeholders regarding the potential future conversion of the Sandouville plant dependent on the outcome of feasibility studies that are underway.

Australian region

Century operation

The Century zinc tailings retreatment operation in Queensland Australia was disrupted by adverse weather in Q1 2024, and cash flows were impacted by scheduled maintenance on trans-shipment vessels during H1 2024. With production normalising from Q2 2024 and sales of stockpiled concentrate in July and August, cashflow should be strong for the remainder of the year. Although zinc metal produced (payable) of 42ktZn and AISC of US$2,228/tZn were towards the lower end of the H1 contribution to 2024 guidance, with continued strong operations annual guidance should be achieved. This, coupled with the increase in the zinc price and significantly lower annual benchmark treatment charges (US$165/tonne in 2024 vs US$274/tonne in 2023), has improved the outlook and the Century operations are expected to contribute positively to Group adjusted EBITDA.

Due to the relatively short reserve life of the zinc tailings operations at Century, options to extend the life of the assets through leveraging the existing processing plant, pipeline and port infrastructure have been actively explored. This includes opportunities to potentially utilise the extensive phosphate resources in the region that are largely undeveloped.

A class 3 feasibility study for the Mt Lyell Copper Project has been completed and will be followed by the Class 2 feasibility study which will take approximately 12 months.

US region

US PGM operations

The restructuring (repositioned for lower production and cost) undertaken during Q4 2023 at the US PGM operations resulted in a significantly improved performance for H1 2024 compared with H1 2023. Mined 2E production was 16% higher than for H1 2023 and 7% higher than for H2 2023, with AISC declining by 23% year-on-year to US$1,343/2Eoz (R25,149/2Eoz), within guidance for 2024 and the best operational performance since H1 2021. PGM prices have remained under pressure during 2024 however, with the average 2E PGM basket price received for H1 2024, 30% lower year-on-year, resulting in adjusted EBITDA (excluding the US$43 million (R812 million) insurance claim related to the 2022 flood) of negative US$16 million (R306 million), compared with positive US$53 million (R976 million) for H1 2023.

Despite the positive production and cost outcomes, the 2E PGM basket price during 2024 has remained at levels some US$300 - 400/oz below the average AISC for H1 2024 and reducing unit cost to achieve profitability at current prices is not possible without increased capital investment in production growth. The capital investment required is not feasible at current PGM prices and as a result, further restructuring of the US PGM operations is necessary to reduce cash outflows while ensuring the sustainability of the Columbus autocatalyst recycling operation. The restructuring is likely to result in sustainable 2E production from the US PGM operations reducing by approximately 200,000 2Eoz (relative to 2024 guidance), with a consequent reduction in the workforce. A fundamental review of the mine operations to

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reduce AISC to approximately US$1,000/2Eoz will then follow. Further detail will be provided in the presentation available at H1 2024 results download link. The slides will also be discussed during the webcast at 14h00 (CAT) / 13h00 (GMT) / 08h00 (EST) / 06h00 (MT), available at Webcast link.

US Recycling

Our strategy to build an urban mining footprint has progressed well. Despite the downturn in commodity prices, the benefits of having recycling operations with stable margins through commodity price cycles were apparent, with the US PGM recycling business contributing positive Adjusted EBITDA of US$8 million (R147 million) and the Reldan recycling operations contributing adjusted EBITDA of US$0.3 million (R6 million) for the four months since acquisition with both contributing positive cashflow.

Sibanye-Stillwater Reldan is an e-waste and industrial scrap business with well-established extensive networks in the US and Mexico, and developing in India. The integration of Reldan is expected to unlock synergies with our existing PGM recycling operations with significant potential to build the footprint into Asia, and particularly India where Reldan already has a joint venture.

FINANCIAL REVIEW

The extended period of low commodity prices (with the notable exception of gold) and persistent cost inflation, has continued to squeeze margins and reduce earnings and cash flows for the global mining industry with even gold mining companies only recently managing to shake off the effects of margin squeeze and beginning to deliver financial leverage.

The Group's financial results for H1 2024 reflect this low prevailing commodity price environment, with Group profitability lower year on year, primarily due to the material decline in PGM prices compared with H1 2023. Significantly higher capex at the Keliber lithium project and DRDGOLD (funding growth projects), offset the capex reductions at the US PGM operations and SA region. As capex drops from peak levels at these projects, Group cash flow should improve materially.

Group adjusted EBITDA declined by 53% to R6.6 billion (US$355 million), with the SA PGM operations, which experienced a R7.0 billion or 60% decline in adjusted EBITDA to R4.8 billion, accounting for 94% of this decline. Other than the US PGM operations and US PGM recycling operations, which were also impacted by lower PGM basket prices year-on-year, the financial performance of the other Group operations improved year-on-year, with an improved operational performance from the Sandouville refinery reducing adjusted EBITDA losses and the SA gold and Century zinc operations benefiting from higher prices. The restructuring actions taken at the US PGM operations and SA region operations, resulted in Group free cash flow improving by R797 million relative to H2 2023.

The Group reported a loss of R7.1 billion (US$379 million) (after tax) for H1 2024 compared with a profit of R7.8 billion (US$427 million) for H1 2023, including a R7.6 billion (US$407 million) impairment of the US PGM operations made due to 5-8% lower consensus palladium prices utilised for fair value calculation purposes. As a result, a basic loss per share (EPS) of 264c with headline earnings per share (HEPS) of 5c is reported for H1 2024 compared with EPS of 264c and HEPS of 208c for H1 2023.

As per the Group dividend policy, no dividend is declared due to a normalised earnings loss of R208 million (US$11 million) for H1 2024.

Despite negative free cash flow of R7.3 billion (US$391 million) for the period, the Group financial position remained solid, with the net debt to adjusted EBITDA ratio of 1.43x being well within comfort levels. Although net debt increased by R6.8 billion (US$367 million) (borrowings of R34.2 billion (US$1.9 billion) and cash and cash equivalents of R15.5 billion (US$844 million)) the primary reason for the increase in leverage from 0.58x at the end of H2 2023 was the decline in the 12 month trailing adjusted EBITDA to R13.1 billion (US$0.7 billion).

To guard against further declines in adjusted EBITDA that may result from protracted low PGM prices, the uplift on Group debt covenants to 3.5x until 30 June 2025 and to 3.0x until 31 December 2025 provides significant financial headroom and reduces financial risk. The other Balance sheet protection measures announced by the Group post the end of H1 2024 (as discussed previously) have further reinforced the Group Balance sheet and significantly improved the Group's financial liquidity and flexibility.

OPERATING GUIDANCE FOR 2024*

Operating guidance for the 2024 year for the SA gold operations and capital for the Keliber lithium project have been revised downward for 2024. US PGM guidance is unchanged and does not account for any possible impacts of the planned further restructuring during H2 2024. Any changes to guidance will be announced when known. Guidance for the other operations remains unchanged.

  • 2E mined production from the US PGM operations is forecast to be between 440,000 2Eoz and 460,000 2Eoz, with AISC between US$1,365/2Eoz (R23,888/2Eoz) to US$1,425/2Eoz (R24,938/2Eoz) excluding any possible S45X credit (45X Advanced Manufacturing Production Credit (S45X credit)) for 2024. Capital expenditure is forecast to be between US$175 million and US$190 million (R3.1 billion and R3.3 billion), including approximately US$13 million (R228 million) project capital
  • 3E PGM production for the US PGM recycling operations is forecast to be between 300,000 3Eoz and 350,000 3Eoz fed for 2024. Capital expenditure is forecast at US$700,000 (R12 million)
  • 4E PGM production from the SA PGM operations for 2024 is unchanged and forecast to be between 1.8 million 4Eoz and 1.9 million 4Eoz including approximately 80,000 4Eoz of third party PoC, with AISC at our managed operations between R21,800/4Eoz and R22,500/4Eoz (US$1,245/4Eoz and US$1,285/4Eoz) - excluding cost of third party PoC. Capital expenditure is forecast at R6.0 billion (US$343 million)* for the year
  • Following the production disruptions highlighted at Kloof and Beatrix for H1 2024, gold production from the managed SA gold operations (excluding DRDGOLD) for 2024 has been revised lower and is now forecast at between 16,500kg (530koz) and 17,500kg (563koz). AISC is forecast to be between R1,250,000/kg and R1,350,000/kg (US$2,222/oz and US$2,399/oz). Capital expenditure is forecast at R3.9 billion (US$223 million), including R390 million (US$22 million) of project capital expenditure provided for the Burnstone project
  • Production from the Sandouville nickel refinery for 2024 is forecast at between 7.5 kilotonnes and 8.5 kilotonnes of nickel product, at a nickel equivalent sustaining cost of between €21,000/tNi (R399k/tNi)* and €23,000/tNi (R437k/tNi)* and capital expenditure of €8 million (R152 million)*
  • Capital expenditure at the Keliber lithium project for 2024 is revised lower to €300 million (R5.7 billion)*
  • Production from the Century zinc tailings retreatment operation for 2024 is forecast at between 87 kilotonnes and 100 kilotonnes of zinc metal (payable) at an AISC of between A$3,032 and A$3,434/tZn (US$2,032 and US$2,302/tZn or R35,560 and R40,285/tZn) and capital expenditure of A$17 million (US$11 million or R196 million). Project capital on the Mt Lyell copper/gold project for 2024 is forecast to be A$6.6 million (US$4 million or R77 million)

* The guidance has been translated where relevant at an average exchange rate of R17.50/US$, R19.00/€ and R11.73/A$

NEAL FRONEMAN

CHIEF EXECUTIVE OFFICER

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SIBANYE-STILLWATER GROUP SAFETY AND OPERATING REVIEW

SAFETY

Our primary safety goal for 2024 continues to be eliminating fatal and serious incidents through our Fatal elimination strategy, which comprises three key pillars: critical controls, critical lifesaving behaviours and critical management routines. Since implementing this strategy, meaningful reductions in risk have been achieved across the majority of our operations and are reflected in the further improvement in safety lagging and leading indicators. During H1 2024, the Group achieved the lowest Serious Injury Frequency Rate (SIFR) and Total Recordable Injury Frequency Rate (TRIFR) since its inception in 2013. There has also been a consistent decline in high potential incidents (HPIs) since H2 2022.

When we commenced our Fatal elimination strategy in 2022, our initial focus was to address the identified major risks that historically caused the most fatal incidents at our operations. This led to the development of 19 Group minimum standards covering all the major risk areas at our operations and provided the basis for a real reduction in the major hazards most prominent in our business.

We continue to encourage a bottom-up approach to safety, empowering our entire workforce to take ownership of their and their colleagues' safety. The considerable increase in the proportion of safety stoppages initiated by frontline employees, to 74% from a baseline of 30% at the start of 2023 and a starting point of 3% in early 2022, serves as a strong leading indicator of heightened awareness and a safety-oriented and enabled culture among our frontline employees, driving our safety value. These developments are helping to build trust and allow line management to provide the leadership required to enable employees to work safely in all respects.

The key focus for 2024 will remain on fully entrenching our strategy and enabling teams to deliver sustainable safe predictable production as we further embed our values-baseddecision-making culture.

In this regard, it was pleasing to note the overall improvement in Group safety indicators year-on-year. The Group serious injury frequency rate (SIFR) improved from 2.79 (per million hours worked) for H1 2023 to 2.12 for H1 2024, a 24% improvement, with the lost time injury frequency rate (LTIFR) decreasing by 17% from 4.78 to 3.97 and total recordable injury frequency rate (TRIFR) decreasing from 5.46 to 4.42 for the same period.

Notwithstanding the progress being made through our Fatal Elimination Strategy, the loss of any colleagues is deeply mourned. On 4 June 2024, Mr Nelson Kunene, a 39-year-old drill rig operator at three shaft, Beatrix operation, was fatally injured when the drill rig toppled over and he was caught between the boom of the rig and the sidewall. On 27 June 2024, Mr Ekabang Hlasa, a 54-year-old loader operator at Masimthembe shaft Kloof operation, succumbed to injuries sustained during a fall of ground incident. Together with the loss of Mr Reginald Sekati a utility vehicle operator at Bathopele, Rustenburg operation, during Q1 2024, a total of three fatalities was experienced during H1 2024, compared with six fatalities during H1 2023. The Group fatal injury frequency rate (FIFR) (per million hours worked) improved from 0.07 for H1 2023 to 0.04 for H1 2024. All incidents have been investigated with relevant stakeholders to understand the root causes and specify risk mitigation measures for implementation.

The Board and management of Sibanye-Stillwater extend their sincere condolences to the loved ones, families and friends of our deceased colleagues, and support has been provided to the families of the deceased.

Turning to the various operations, the SA PGM operations reported an improvement in the safety performance for H1 2024 with the TRIFR decreasing from 5.44 for H1 2023 to 4.05 for H1 2024, a decrease of 26%. Pleasingly the SIFR improved by 32% from 2.37 for H1 2023 to 1.60 for H1 2024, one of the lowest SIFRs ever recorded.

The SA gold operations safety performance also improved, notwithstanding two fatalities reported in H1 2024 (six fatalities in H1 2023), with the FIFR decreasing from 0.19 for H1 2023 to 0.07 for H1 2024. The TRIFR also improved from 4.97 for H1 2023 to 4.27 for H1 2024.

The US operations safety performance for H1 2024 regressed, with recordable injuries increasing from 28 to 30 year-on-year, resulting in the TRIFR increasing from 12.61 for H1 2023 to 15.73 for H1 2024. The integration of the recent acquisition of Reldan precious metals recycling group, is underway and their results are included as part of the US region from 1 April 2024.

The European region recorded a TRIFR of 3.12 for H1 2024, a slight regression as compared to 2.90 for H1 2023. The TRIFR of the European operations is significantly lower than the Group average of 4.42, as a result of Sandouville being an industrial surface complex and the commencement of construction of the Keliber lithium project. The improved focus placed on unsafe work stoppages during 2024 in this region is notable.

The Australian region reported three recordable injuries during H1 2024, at a TRIFR of 9.50. The consistent percentage (>80%) of frontline stoppages recorded during 2024 is a reflection on the mature safety culture already entrenched in the region.

OPERATING REVIEW

Americas (US) region

US PGM operations

The US PGM operations' performance for H1 2024 confirmed the effectiveness of the revised restructuring plan implemented in Q4 2023, delivering the highest production and the lowest AISC since H2 2021. Despite the operational improvement however depressed PGM prices remain a significant challenge and further actions to address the cost structures at the US PGM operations are being taken.

Mined 2E PGM production of 238,139 2Eoz for H1 2024 was 16% higher than for H1 2023, with tonnes milled and plant head grade both improving by 9% and 7% respectively year-on-year. Even adjusting for the impact of the shaft incident at the Stillwater West mine which reduced H1 2023 production by 24,600 2Eoz, production would have been 3% higher.

2E PGM production from the Stillwater mine of 155,222 2Eoz for H1 2024, was 26% higher than for H1 2023, with production from the East Boulder mine of 82,918 2Eoz, 1% higher.

AISC of US$1,343/2Eoz (R25,149/2Eoz) for H1 2024 was 23% lower than for H1 2023, primarily due to increased production, and significantly lower ORD and sustaining costs. AISC excluding the IRS credit adjustment provided for (45X Advanced Manufacturing Production Credit 45x), would have declined by 27% to US$1,366/2Eoz (R25,566/2Eoz). The 45x provision for H1 2024 of US$5 million (R99 million) was lower than provided for H1 2023 (US$25 or R455 million) due to 45x provisions being limited to processing and not applying to mining as per the limited guidance issued by the IRS during H2 2024, after which the H1 2023 45X provision was adjusted on a cumulative basis during H2 2023.

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In line with the revised production plan ORD expenditure declined from US$111 million (R2.0 billion) for H1 2023 to US$65 million (R1.2 billion) for H1 2024, or a decline in unit cost terms of 49% from US$541/2Eoz (R9,858/2Eoz) for H1 2023 to US$273/2Eoz (R5,119/2Eoz) for H1 2024. Sustaining capital decreased by 51% to US$21 million (R391 million) for H1 2024, a decrease in unit cost terms of 58% or US$122/2Eoz (R2,173/2Eoz) to US$88/2Eoz (R1,6425/2Eoz). This reduced expenditure was primarily due to ventilation improvement costs incurred during H1 2023 which were not repeated during H1 2024, reduced transport and mining fleet replacement and lower expenditure on tailings storage facilities (TSF) year-on-year.

The 30% decline in the average 2E PGM basket price to US$977/2Eoz (R18,289/2Eoz) for H1 2024 was the primary reason for the decline in adjusted EBITDA year-on-year, despite improved production and lower AISC. Adjusted EBITDA of US$27 million (R488 million) for H1 2024 was 49% lower than for H1 2023. Adjusted EBITDA for H1 2024 benefited from the award of a US$43 million (R812 million) insurance claim related to the 2022 flood, which was received in Q1 2024. Excluding the insurance claim, adjusted EBITDA would have been negative US$16 million (R306 million)

Capital expenditure decreased by 47% year-on-year to US$93 million (R1.7 billion), with 92% (or US$86 million/R1.6 billion) of this amount spent on ORD and sustaining capital. Growth project capital was 68% lower at US$7 million (R134 million) with the Stillwater East (Blitz) project capital suspended following the repositioning of operations for the lower price environment.

US recycling operations

US PGM recycling operation

The uncertain global economic and geopolitical outlook, ongoing recessionary concerns and higher interest rates led to decreased consumer demand for new vehicles, with light duty vehicles (LDV) remaining in service for extended periods and fewer vehicles being scrapped.

Reflecting these factors, average volumes of spent autocatalysts fed at the US PGM recycling operation of 10.7 tonnes per day (tpd) for H1 2024 were 2% lower when compared to H1 2023 feed rates of 10.9 tpd. During H1 2024, 1,959 tonnes of recycled material was purchased and processed. At the end of H1 2024, approximately 62 tonnes of recycling inventory was on hand, from H1 2023 ending inventory of 27 tonnes.

Adjusted EBITDA from the PGM recycling operation decreased by 61% year-on-year to US$8 million (R147 million). The decrease was due to a 54% decrease in the average 3E PGM recycle basket price to US$1,252/3Eoz (R23,437/3Eoz) and 3E PGM sold increasing by 3% to 157,990 3Eoz.

The current environment remains challenging, however, feed rates have stabilised. Following the recent acquisition of Reldan operations and significant progress in integration, potential synergies are also being assessed.

Reldan recycling operations

The acquisition of the Reldan recycling operations was concluded on 15 March 2024 and financially consolidated into the Group from March 2024. For the period since the closure of the transaction, Reldan processed 6 million lbs of mixed scrap and sold 41,868 oz gold, 855,870 oz silver, 7,143 oz platinum, 7,5000 oz palladium, and 1.1 million lbs of copper.

Adjusted EBITDA of US$0.3 million (R6 million) and adjusted free cash flow of US$9 million (R171 million) were generated by the Reldan operations for the period since acquisition. The integration of Reldan into Sibanye-Stillwater is well advanced and is expected to be completed by year end.

Southern Africa (SA) region

SA PGM operations

The operational performance from the SA PGM operations for H1 2024 (including attributable production from Mimosa and third-party purchase of concentrate (PoC)) was solid, with 4E PGM production of 878,606 4Eoz, 4% higher than for H1 2023. The acquisition of Anglo American Platinum Limited's 50% share of the Kroondal Pool and Share Agreement from 1 November 2023 resulted in an additional 67,834 4Eoz of attributable production for H1 2024, which more than offset the impact of the restructuring and closure of loss-making shafts during the period, the failure of the Siphumelele shaft bin which impacted production for two months and the unprotected sit-in and industrial action at the Kwezi and K6 shafts, Kroondal operation. Production from the Kroondal operation was also lower year-on-year due to the closure of the Simunye shaft and Klipfontein open cast mine towards the end of 2023.

4E PGM production (excluding PoC of 50,146 4Eoz) of 828,460 4Eoz, was 4% higher year-on-year, with underground production of 751,064 4Eoz and surface production of 77,396 4Eoz for H1 2024 (excluding PoC) both increasing by 4%. Production has increased steadily after a slow start to the year with production for June 2024 the highest for H1 2024.

Comparison of total operating cost on a direct basis year-on-year, is difficult due to the consolidation of 100% of Kroondal's costs for H1 2024 (only an attributable 50% for H1 2023) as well as restructuring costs and disruptions incurred during H1 2024, with some of the benefits of the restructuring still to come through in H2 2024.

AISC (excluding PoC) of R21,533/4Eoz (US$1,150/4Eoz) for H1 2024 increased by 9% year-on-year. This increase was primarily driven by a 17% year-on-year increase at the Kroondal operations primarily due to reduced production from the Simunye shaft and the Klipfontein opencast mine that ended in 2023 and the production impact of the illegal strike action. Unit cost at the Rustenburg operation increased by 8% year-on-year, a pleasing result considering higher sustaining capital invested at the Rustenburg operations associated with Kroondal extension projects, and the negative impact of the Siphumelele shaft bin incident which halted production from this shaft for 8 weeks. Costs at Marikana were also well managed with unit costs increasing 9% over the comparison period, primarily driven by restructuring costs associated with the 4B and Rowland shafts and a once of liability adjustment. These impacts were partly mitigated by lower royalties which declined by 75% due to a significant decline in revenue, ORD which declined by 13% due to less development at the 4B, Rowland and Siphumelele shafts. AISC (including PoC) of R21,448/4Eoz (US$1,146/4Eoz) for H1 2024 was 6% higher than for H1 2023, due to a 22% decrease in PoC purchase costs to R1.2 billion (US$66 million), as a result of the year-on-year decline in the PGM basket price.

By-product credits increased by 16% to R5.9 billion (US$316 million) or in unit terms by 12% to R6,733/4Eoz (US$360/4Eoz) primarily due to a 42% increase in the value of chrome sold to R3.1 billion (US$168 million), which was 53% of the by-product credits for H1 2024.

H1 2024 chrome sales of 1,295 kilotonnes (kt) were 19% higher than for H1 2023. Chrome revenue of R3.1 billion (US$168 million) for H1 2024 was 42% higher than for H1 2023, due to increased sales volumes and a 4% increase in the received chrome price of US$298/t. The

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strategic investment in increasing chrome production over the past years, has delivered a strategically relevant and diversified component of the basket of metals produced. Chrome sales have increased from approximately 1,800 kt million tonnes in 2021 to over 2,500kt forecast for 2024.

The SA PGM operations remained profitable despite the significant decline in the 4E PGM basket price. Adjusted EBITDA of R4.8 billion (US$255 million) for H1 2024 was 60% lower than for H1 2023 due to the average 4E PGM basket price for H1 2024 declining 28% to R24,499/4Eoz (US$1,309/4Eoz), partly offset by the 3% depreciation of the rand versus the US dollar year-on-year.

Capital expenditure for H1 2024 was stable year on year, decreasing by 1% to R2.5 billion (US$136 million) compared to H1 2023. ORD declined by 13% due to less development at the 4B, Rowland and Siphumelele shafts post the restructuring, offsetting the combined effects of an 18% increase in sustaining capital. Project capital increased by 1% to R444 million (US$24 million) with spending primarily on the Marikana K4 project (R350 million/US$19 million) and R79 million (US$4 milion) spent at Rustenburg on a reflux classifier chrome recovery unit acquired from a third party.

Production from the Rustenburg operation of 295,266 4Eoz for H1 2024 was 6% lower than for H1 2023, with underground production of 257,059 4Eoz, 7% lower and surface production of 38,207 4Eoz, 4% higher year-on-year. Production was impacted by the Siphumelele head gear bin failure that resulted in a loss of two months of production from March 2024 and with a phased startup from May 2024. After a slow start to the year, the production trend has improved steadily during H1 2024. AISC of R19,721/4Eoz (US$1,053/4Eoz) for H1 2024 was 8% higher year-on-year primarily as a result of lower production and sustaining capital which increased by 27% to R347 million (US$19 million) due to Siphumelele shaft repair costs and other once of items as well as R19 million (US$1 million) investment in the Thembelani incline shaft deepening project which will extend the shaft to access UG2 reef. The Thembelani shaft deepening project is expected to be completed in 2028 at a total cost of R680 million (in 2022 terms). Offsetting these costs was a 72% decrease in royalties due to lower PGM prices, ORD which declined by 11% and by-product credits which were 24% higher to R2.7 billion (US$143 million) primarily due to the 45% increase in chrome revenue. Chrome sold for H1 2024 increased by 32% year-on-year.By-products credits reduced AISC by R9,053/4Eoz (US$484/4Eoz).

Production from the Marikana operation for H1 2024 (including third party PoC) of 362,835 4Eoz was 1% lower than H1 2023 with PoC processed of 50,146 4Eoz, 1% higher. Production (excluding PoC) of 312,689 4Eoz was 2% lower with underground production of 296,669 4Eoz, 3% lower and surface production of 16,020 4Eoz, 30% higher year-on-year, benefiting from better recoveries and improved plant stability following the conversion from hydro mining to a hydro/mechanical hybrid method in 2023. The Marikana underground operations were impacted by the restructuring of the Rowland shaft (13,868 4Eoz) and underperformance and subsequent closure of the 4B shaft (14,490 4Eoz), which was partially offset by increased production from the K4 shaft. AISC (including PoC) of R23,735/4Eoz (US$1,268/4Eoz), was only 3% higher year-on-year, with PoC purchase costs declining by 22% year-on-year to R1.2 billion (US$66 million) in line with the decline in PGM prices. AISC (excluding PoC) increased by 9% year-on-year to R24,308/4Eoz (US$1,299/4Eoz) for H1 2024. The primary factors driving AISC for the Marikana operation, other than above inflation cost factors, was marginally lower production and a once off R372 million liability adjustment in Q1 2024 which increased H1 2024 AISC (excluding PoC) by R1,190/4Eoz (US$64/4Eoz) or 5%. Offsetting these factors was a 79% decline in royalties year-on-year due to the lower PGM basket price and 13% lower ORD, primarily due to lower primary development at the restructured B4 and Rowland, shafts.

The K4 project produced 26,178 4Eoz for H1 2024 (7,063 4Eoz for H1 2023), with production expected to increase during H2 2024 as additional ledging crews are trained and deployed. During the K4 project build up phase operating costs, ORD and sustaining capital will remain elevated on a unit cost basis, but are expected to reduce as production increases. AISC for H1 2024 was approximately R47,000/4Eoz, but is expected to reduce to around R20,000/4Eoz by 2029. Project capital guidance of R825 million (US$51 million) is unchanged for 2024, with R350 million (US$19 million) spent for H1 2024.

Production from the Kroondal operation for H1 2024 of 135,668 4Eoz was 62% higher year-on-year due to the consolidation of 100% of the operations. On a comparable 100% basis year-on-year, production 31,364 4Eoz or 19% lower, primarily due to the closure of the Simunye shaft (-10,692 4Eoz) and Klipfontein opencast mine (-12,306 4Eoz), as well as the unprotected sit-in at the Kwezi shaft and subsequent associated disruptions. AISC increased by 17% year-on-year to R20,845/4Eoz (US$1,114/4Eoz), mainly as a result of the decline in production.

Attributable PGM production from Mimosa for H1 2024 of 61,668 4Eoz was 8% higher than for H1 2023, with tonnes milled increasing by 8% and recoveries by 3% due to optimisation of the reagent suite. AISC of US$1,151/4Eoz (R21,551/4Eoz) was 10% lower year-on-year, due to higher production and reduced sustaining capital following the completion of the plant optimization study and pending completion of the new TSF in Q3 2024.

PGM production from Platinum Mile for H1 2024 of 23,169 4Eoz was 8% lower than for H1 2023, as a result of lower run of mine tonnes surface mined tailings feed. Recoveries have continued to improve post the Waterval West dam conversion to 100% mechanical from hydro-mining, which has improved plant stability resulting in a 4% increase in recovery year-on-year. AISC increased by 4% to R11,049/4Eoz (US$590/4Eoz) despite lower production primarily due to by-product credits which increased by 254% to R145 million (US$8 million). A chrome extraction plant completed at the end of 2023 is in build-up phase and produced 40kt of chrome for H1 2024, which is forecast to build up to 120kt pa. Project capital expenditure declined by 58% to R15 million (US$1 million) for H1 2024 as a result of the completion of the chrome extraction plant.

SA gold operations

Production from the managed SA gold operations (excluding DRDGOLD) for H1 2024 decreased by 21% or 2,163kg (69,542oz) to 8,248kg (265,179oz), with production from the Kloof operation accounting for 68% or 1,461kg (46,972oz) of the production decline. The absence of production from Kloof 4 shaft which was closed during Q4 2023, was compounded by seismic activity at Kloof main shaft which restricted access to high grade panels. Production from the Beatrix operation for H1 2024 was 18% lower contributing 17% of the year-on-year shortfall primarily due to a back-break incident. The Driefontein operation was also temporarily impacted by seismicity and geological challenges however production recovered from a slow start to the year and was much improved by the end of H1 2024. Production from the SA gold operations (including DRDGOLD) for H1 2024 of 10,703kg (344,109oz) was 17% lower than for H1 2023.

As a result of the constrained production, AISC (excluding DRDGOLD) increased by 20% year-on-year to R1,339,500/kg (US$2,226/oz). AISC (including DRDGOLD) of R1,250,647 (US$2,078/oz) was 18% higher year-on-year. AISC/oz is expected to reduce in H2 2024 as production/ gold sales increase and the full effect of the regional restructuring is realised.

The average gold price received for H1 2024 increased by 18% to R1,327,000/kg (US$2,205/oz) offsetting the impact of the operational disruptions to a large extent. Adjusted EBITDA (Including DRDGOLD) of R2.2 billion (US$117 million) for H1 2024, decreased from R2.4 billion (US$130 million) for H1 2023, with adjusted EBITDA from the SA managed operations of R1.1 billion (US$59 million) declining from R1.4 billion (US$79 million) for H1 2023. With the restructuring now largely concluded and remedial action taken at the Driefontein and Beatrix

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operations, it is anticipated that production will improve during H2 2024, with the operational and regional services restructuring which was concluded in June 2024, also expected to reduce AISC for the SA region operations.

Capital expenditure (excluding DRDGOLD) decreased by 27% year-on-year to R2.0 billion (US$106 million) primarily due to the closure of Kloof 4 shaft although ORD increased by 1% to R1.4 billion (US$75 million) due to increased secondary reef development to maintain flexibility at the Kloof and Driefontein operations. Sustaining capital declined by 29% to R292 million (US$16 million) due to significantly lower sustaining capital requirements at both the Beatrix and Kloof operations. Project capital for H1 2024 of R284 million (US$15 million) was 69% or R618 million (US$34 million) lower as a result of the Burnstone project being slowed down with R281 million (US$15 million) spent for H1 2024. Capital expenditure (including DRDGOLD) for H1 2024 increased by 32% to R4.4 billion (US$237 million) as a result of a significant increase in project capital at DRDGOLD (refer to commentary at the end of this section).

Production from the Driefontein operation recovered after a slow start to the year. Monthly production increased from less than 400kg to 650kg to 700kg per month during the period, with underground production for H1 2024 of 3,499kg (112,495oz), 10% lower than for H1 2023 as a result of two Section 54 stoppages at 5 shaft, and seismic incidents which restricted access to high grade panels at 4 and 8 shafts. Production for the remainder of the year is expected to be steady. Surface production of 48kg (1,543oz) was 35% lower year-on-year due to depletion of surface resources as planned. AISC of R1,226,140 (US$2,037/oz) was 15% higher year-on-year due to lower production, annual inflationary increases and additional costs incurred to re-establish workplaces damaged by seismicity. ORD increased by 8% for H1 2024 to R819 million (US$44 million) to maintain mining flexibility. Sustaining capital expenditure decreased by 6% to R178 million (US$10 million) due to a slower start-up of the D1 and D4 pillar projects and a change in contractor terms to performance based.

Underground production from the Kloof operation of 1,944kg (62,501oz) for H1 2024 was 46% lower than for H1 2023, primarily due to the closure of Kloof 4 shaft in late 2023 which produced 720kg (23,149oz) for H1 2023. In addition seismicity affecting high grade panel access at Kloof main shaft necessitated redeployment of crews to lower grade areas resulting in 514kg (16,525oz) less production from Kloof main shaft year-on-year. Surface production of 381kg (12,249oz) for H1 2024 was 84% higher than H1 2023 due to 18% greater tonnes milled and yield increasing by 56%, due to early processing of high grade material at the Driefontein and Ezulwini plants which have spare capacity. AISC for H1 2024 of 1,610,671/kg (US$2,676/oz) was 34% higher year-on-year as a result of lower production with gold sold (41)% lower at 2,399kg (77,130oz). Associated with the closure of Kloof 4 shaft, ORD declined by 5% to R445 million (US$24 million), partially offset by an increase in off-reef development at Kloof 8 shaft and sustaining capital decreased by 41% to R106 million (US$6 million).

Underground production from the Beatrix operation of 1,721kg (55,331oz) for H1 2024 was 15% lower than H1 2023 due primarily due to the two significant back break incidents which occurred on 18 March 2024 and 8 April 2024 in wide channel mining (4 metre stoping width) back areas, where different support standards are now being applied. Mining recommenced in June using the revised support method and is being phased-in over Q3 2024 with some residual impact expected until the end of 2024. AISC increased by 16% year-on-year to R1,213,437/kg (US$2,016/oz), primarily due to the decline in production and 15% lower gold sold, as well as above inflation cost pressures. ORD for H1 2024 was 16% lower at R141 million (US$8 million) due to a decrease in off-reef development with sustaining capital declining by 80% to R8 million (US$0.4 million) due to projects completed in 2023 and re-classification of other projects.

Gold production from the Cooke surface operation for H1 2024 increased by 14% to 645kg (20,737oz) year-on-year with AISC 29% higher year-on-year to R1,364,055/kg (US$2,266/oz) on the back of above inflation increases in chemicals and steel balls and higher aggregate purchase costs of third-party gold bearing material where the purchase price is linked to the gold price. Purchase of aggregate material increased from 288kg (9,259oz) for H1 2023 to 458kg (14,725oz) for H1 2024, but resulted in increased profitability.

Gold production from DRDGOLD for H1 2024 decreased by 4% to 2,455kg (78,930oz) with tonnes milled increasing by 8% and yield declining by 11% year-on-year, due to depletion of reclamation sites before transferring activity to new sites, which were delayed. AISC for H1 2024 increased by 11% to R933,985/kg (US$1,552/oz) as a result of gold sold being 4% lower year-on-year and above inflationary increases in cash operating costs. This increase was moderated by sustaining capital being 47% lower at R123 million (US$7 million). Sustaining capital declined as a result of lower capital spent on the development of the new reclamation sites with spend having been largely incurred in 2023. Project capital increased from R427 million (US$23 million) for H1 2023 to R2.3 billion (US$125 million) for H1 2024 primarily on the construction of the Ergo's solar power plant and battery power storage facility underway. Capital was also invested in the Far West Gold Recoveries' Phase II project, to double the capacity at the Driefontein 2 Plant and to commence construction of the 800- million-tonne regional tailings storage facility). The average rand gold price received by DRDGOLD in H1 2024 increased by 19% year-on- year to R1,330,888/kg (US$2,211/oz) with adjusted EBITDA increasing by 16% to R1.1 billion (US$58 million).

The Burnstone project

Capital investment in the Burnstone project was deferred in H1 2024, with stoping and development activities ceasing apart from the triple barrel main decline shaft development to access the lower mine, which is progressing well.

European region

Sandouville nickel refinery

The operating performance of the Sandouville nickel refinery for H1 2024 improved year-on-year with nickel equivalent production of 4,270tNi, 22% higher than for H1 2023. Nickel metal production increased by 36% to 3,671tNi and nickel salts production of 599 tNi was 24% lower, in line with plan. As a result of a build-up in nickel salts inventory and anticipated lower demand from customers, nickel salts production was reduced to adapt to market requirements with a focus on maximising nickel metal output. The plant stability and reliability have improved steadily following extensive maintenance and improvements made to the cathode circuit in 2023, with nickel recoveries improving to 97.9%.

The nickel-equivalent sustaining cost of US$23,684/tNi (R443,366/tNi) for H1 2024 was 37% lower year-on-year as a result of the higher production, moderating unit prices of energy and reagents, and the lower costs of purchasing nickel matte which is linked to the London Metal Exchange (LME) nickel price and is a meaningful costs component (the average LME nickel cash price was 28% lower year-on-year at US$17,40/tonne for H1 2024). By-product credits of US$5 million (R88 million), 22% lower year-on-year and sustaining capital 10% higher year-on-year at US$6 million (R107 million) incurred to continuously improve plant maintenance and de-bottleneck in order to enhance plant stability.

Nickel metal sales increased by 28% to 3,635 tonne for H1 2024 with nickel salts sales 34% higher at 797 tonnes, 198 tonnes higher than produced, with a temporary pick-up in demand allowing Sandouville to destock accumulated inventory. Since 1 Jan 2024, total working capital has declined from approximately US$33 million to US$24 million, a decline of 27%. Despite a 24% year-on-year decline in the nickel- equivalent average basket price for H1 2024 to US$20,309/tNi (R380,190/tNi), the H1 2024 adjusted EBITDA loss was US$15 million (R280 million), less than half the US$35 million (R627 million) adjusted EBITDA loss incurred for H1 2023.

Keliber lithium project

Sibanye-Stillwater Operating and financial results | Six months ended 30 June 2024

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Sibanye Stillwater Limited published this content on 12 September 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on September 20, 2024 at 09:39:06 UTC.