Sibanye Stillwater : The importance of establishing R&D ecosystems in support of digital disruption

The importance of establishing R&D ecosystems in support of digital disruption

Wits DigiMine digital technology seminar

Head of Technology and Innovation, Alex Fenn

10 December 2020

Disclaimer

The information in this announcement 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 Stillwater Limited's ("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 announcement 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. 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 States, 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; 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 the spread of other contagious diseases, such as coronavirus ("COVID-19"). Further details of potential risks and uncertainties affecting Sibanye-Stillwater are described in Sibanye-Stillwater's filings with the Johannesburg Stock Exchange and the United States Securities and Exchange Commission, including the Integrated Annual Report and the Annual Report on Form 20-F.

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).

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The general R&D landscape is varied with industry specific requirements

Organisations in different verticals have	Specific verticals will have majority focus	This, in general, makes R&D investment
varied focus in terms of R&D associated	on finite objectives due to a dissociation in	decisions easier to contemplate for a
with their primary value proposition	their product value chain	significant majority of organisations

Long Term Example

• Significant multi-disciplinary fundamental research
• Requires absolute certainty (life or death)
• Entire product evolution

	Medium Term Example			Short Term Example
•	One-dimensional applied research	• Rapidly evolving fundamental and
	with pockets of fundamental research		applied space
• Requires high levels of certainty (and	• Requires low level of certainty in most
	absolute in cases)		cases
•	30% product evolution	• 2-10% product evolution

Pharmaceuticals 5-15 years		Automotive 3-5 years		Information Technology 0-3 years

Despite a large variety of R&D types, generally, industry is able to focus investment

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Mining is inherently complicated and often uniquely challenged, diluting focus

Neighbouring mines may produce the	Bespoke operating paradigms and	This results in disparate R&D programmes
same material but be infrastructurally and	philosophies dilute the impact of industry	with mining companies looking internally
operationally different	investment and limit collaboration	to resolve technical challenges

	Long Term Example			Medium Term Example		Short Term Example
• Significant evolution in mining methods	• New fixed, and mobile machinery,	•	Process automation, visualisation
	and layouts		energy mediums and safety systems	• New management and reporting
• Requires absolute certainty (major	• Requires high levels of certainty (and		methods
	capital investment decisions)		absolute in cases)	•	Limited automation
• A new mine, a new complex product	• Diverse machinery and applications	•	Complex value chain
	Exploration, Resource Management
			Effective Equipment and Operations		Digital Operational Management

Complications in mining result in the perception that we are technology laggards, despite unique challenges

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