Sibanye Stillwater : interim F2020

JOHANNESBURG, 27 August 2020: 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 for the six months ended 30 June 2020.

SALIENT FEATURES FOR THE SIX MONTHS ENDED 30 JUNE 2020

• Record headline earnings of SA 350 cps (US 21 cps)
• Record normalised earnings of R8.8 billion (US$531 million) and adjusted free cash flow of R10.9 billion (US$655 million)
• Interim dividend of R1.3 billion (US$79 million) declared - SA 50 cps or US 11.8 cents per ADR (at US$/R16.97)
• 0.55x net debt: adjusted EBITDA3 - deleveraged back to levels pre the PGM acquisition strategy
• In excess of R1.6 billion invested into COVID-19 social relief efforts

	US dollar						SA rand
Six months ended					Six months ended
Jun 2019	Dec 2019		Jun 2020		KEY STATISTICS		Jun 2020	Dec 2019	Jun 2019
					UNITED STATES (US) OPERATIONS
					PGM operations1,2
284,773	309,202		297,740	oz	2E PGM production2	kg	9,261	9,617	8,857
421,450	431,681		397,472	oz	PGM recycling1	kg	12,363	13,427	13,109
1,285	1,508		1,837	US$/2Eoz	Average basket price	R/2Eoz	30,621	22,150	18,247
208.3	295.9		360.0	US$m	Adjusted EBITDA3	Rm	6,002.0	4,332.5	2,958.4
26	28		26	%	Adjusted EBITDA margin3	%	26	28	26
772	795		866	US$/2Eoz	All-in sustaining cost4	R/2Eoz	14,429	11,678	10,965
					SOUTHERN AFRICA (SA) OPERATIONS
					PGM operations 2,5
627,991	980,343		657,828	oz	4E PGM production2	kg	20,461	30,492	19,533
1,224	1,475		2,002	US$/4Eoz	Average basket price	R/4Eoz	33,375	21,671	17,377
143.8	464.5		542.8	US$m	Adjusted EBITDA3	Rm	9,050.1	6,753.2	2,043.0
33	32		42	%	Adjusted EBITDA margin3	%	42	32	33
932	1,074		1,156	US$/4Eoz	All-in sustaining cost4	R/4Eoz	19,277	15,779	13,228
					Gold operations
344,752	587,908		403,621	oz	Gold produced	kg	12,554	18,286	10,723
1,308	1,432		1,613	US$/oz	Average gold price	R/kg	864,679	676,350	597,360
(207.0)	140.0		100.9	US$m	Adjusted EBITDA3	Rm	1,682.9	1,967.7	(2,937.1)
(49)	16		16	%	Adjusted EBITDA margin3	%	16	16	(49)
1,904	1,347		1,493	US$/oz	All-in sustaining cost4	R/kg	800,048	636,405	869,141
					GROUP

(18.1)	22.6	563.1	US$m	Basic earnings	Rm	9,385.0	316.8	(254.7)
(89.0)	19.3	561.5	US$m	Headline earnings	Rm	9,360.4	254.9	(1,263.1)
141.9	892.4	990.4	US$m	Adjusted EBITDA3	Rm	16,514.0	12,937.5	2,018.5
14.20	14.69	16.67	R/US$	Average exchange rate using daily closing rate

1. 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 recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM recycling represents palladium, platinum, and rhodium ounces fed to the furnace
2. 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 operations is principally platinum and palladium, referred to as 2E (2PGM)
3. The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt covenant formula. For a reconciliation of profit/loss before royalties and tax to adjusted EBITDA, see note 8.1 of the condensed consolidated interim financial statements. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
4. See "salient features and cost benchmarks - six months" for the definition of All-in sustaining cost
5. The SA PGM operations' results for the six months ended 30 June 2019 included the Marikana operations for the one month since acquisition

Stock data for the six months ended 30 June 2020		JSE Limited - (SSW)
Number of shares in issue		Price range per ordinary share (high/low)		R16.53 to R49.45
- at 30 June 2020	2,676,001,886	Average daily volume		22,482,104
- weighted average	2,673,616,767	NYSE - (SBSW); one ADR represents four ordinary shares
Free Float	81%	Price range per ADR (high/low)			US$3.68 to US$13.25
Bloomberg/Reuters	SSWSJ/SSWJ.J	Average daily volume			3,918,149

The price range and volume provided includes the share information of Sibanye Gold Limited until 18 February 2020 and the share information of Sibanye Stillwater Limited from 19 February 2020 pursuant to the scheme of arrangement with a one to one share exchange ratio. The Sibanye Stillwater shares commenced trading on 19 February 2020 and the average daily volume per ordinary share and per ADR share was 23,270,606 and 3,473,356 respectively and the price range high and low was the same as reflected in the table above

Sibanye-Stillwater Operating and financial results | Six months ended 30 June 2020 1

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

The Group delivered solid operating results for the six months ended 30 June 2020 (H1 2020), with production from all the operating segments increasing year-on-year despite the challenges and disruptions posed by the global COVID-19 pandemic. Along with significantly higher precious metal prices received for the period, the operational results underpinned a robust financial performance from the Group. Record six month adjusted EBITDA of R16,514 million (US$990 million) for H1 2020 was 718% higher than for the comparable period in 2019 and attributable profit of R9,385 million (US$563 million) compared with a R255 million (US$18 million) loss for H1 2019.

Normalised earnings of R8,845 million (US$531 million) and adjusted free cash flow of R10,921 million (US$655 million), facilitated continued delivery on our strategic imperatives, specifically, ongoing reduction of debt and balance sheet leverage to 0.55x net debt: adjusted EBITDA and the resumption of cash dividends, with a R1,338 million interim dividend (US$79 million at assumed US$/R16.97 rate) declared based on the current shares in issue.

The efforts to contain the impact of the COVID-19 pandemic extended beyond our operations however, with the consequent economic and social devastation requiring an intensified focus on the social element of our environmental, social and governance (ESG) strategic pillar, in order to provide critical support to our employees and communities. The continued improvement in the Group safety performance and the substantial financial and social assistance provided to employees and their communities has complemented the operating and financial performance delivered during the period. We committed over R1.5 billion in financial support to employees not at work during the period and over R100 million was committed to community and government support. Further details are provided below.

SAFE PRODUCTION

The continued improvement in Group safety performance for H1 2020 is noteworthy and achieved in exceptional circumstances, with adjustment to protocols and distractions caused by COVID-19 resulting in reduced levels of production in South Africa for a substantial portion of the second quarter. Safe production milestones included the Group recording its first fatality free quarter (Q2 2020) since Q4 2018, with the SA gold operations achieving a remarkable deep level hard rock safe production milestone of 12.4 million fatality free shifts by the end of H1 2020.

Regrettably, after achieving 13 million fatality free shifts on 4 August 2020, the SA gold operations have subsequently had two fatalities. On 8 August 2020, Mr Mfuneko Manikela, a contractor employed at Thuthukani Shaft, Kloof, was travelling in a centre gully to collect equipment when he was caught in ore flowing down the raise line. He was 36 years old and is survived by his wife. On 13 August 2020 Mr Bonginkosi Deric Hlophe, a learner miner at Hlanganani Shaft, Driefontein was struck by a gravity fall of ground while travelling above a strike gully. He was 38 years old and is survived by his wife and three dependents. The Board and management of Sibanye-Stillwater have extended condolences and support to the families of the deceased colleagues.

These tragic incidents are a stark reminder that the dynamic environment in which we operate is unyielding and the focus on safe production by adhering to safety rules, standards and procedures, requires ongoing attention. The additional mental and emotional fatigue associated with COVID-19 and its impact in the work environment is continually evaluated. We continue to drive our safety improvement strategy to secure real risk reduction through three pillars of our safety improvement strategy: an enabling environment, empowered people and fit for purpose systems.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

Managing the safety, health and social implications of COVID-19

The Group employs over 80,000 people at its geographically diversified operations in three countries, supports local communities and a diverse supplier network in these regions and makes a significant contribution to regional and local economies. The spread of COVID-19 was identified and prioritised as a significant risk by the Group in February 2020. To protect the safety, health and wellbeing of our employees, contractors and communities, extensive safety and health protocols were developed and implemented to mitigate the risk in the work environment, while ensuring the ongoing continuity and sustainability of the operations.

Measures taken are regional and operational specific and in South Africa, are in line with the guideline for a mandatory code of practice for management and mitigation of COVID-19, include protocols for remote work arrangements, limitations on travel and direct engagement, physical distancing, usage of appropriate personal protective equipment (PPE), screening and testing and the provision of quarantine and isolation facilities by the South African operations to reduce the possible pressure on public health facilities.

At the US PGM operations, the pragmatic approach to managing the threat of the COVID-19 pandemic taken by the Montana public health authorities and proactive actions taken by management to reduce the number of employees and contractors on site, enabled the US operations to continue operating largely unaffected throughout H1 2020, minimising the potential financial and social consequences of COVID-19 on our employees and communities in the region. An increase in infections in Montana as the US reduces COVID-19 restrictions is possible, although the imposition of further operating restrictions is considered unlikely.

In contrast, the indefinite extension of the initial three week lockdown by the authorities in South Africa, and the increasingly inconsistent regulatory approach, created heightened uncertainty and resulted in severe economic and social distress throughout the country. Balancing the necessity for prudent operational management in order to ensure the ongoing viability and sustainability of the SA operations while recognising the dire situation facing our employees and communities in South Africa and the critical need for appropriate financial, mental and emotional support, posed a significant challenge.

Notwithstanding the uncertain outlook and heightened risks, significant efforts continue to be made by the Group to assist stakeholders and contribute to the national efforts to manage the threat posed by the COVID-19 pandemic.

Sibanye-Stillwater Operating and financial results | Six months ended 30 June 2020

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Contributions made by Sibanye-Stillwater during Q2 2020 to support various stakeholders included:

• Financial contributions including approximately R1,500 million in wages, Unemployment Insurance Fund payments (UIF) and cash advances extended to non-working employees, pending payment of some claims made but not paid by the UIF
• Salary sacrifices by the Board and Executive management which were donated to the national solidarity fund of just over R2 million
• Donations of approximately R23 million to COVID-19 national relief funds
• Financial assistance of over R14.5 million committed to service providers and suppliers from local communities
• Approximately 9,400 food parcels distributed to destitute communities, 20 water tanks donated to communities around Marikana without access to clean water and blankets and mattresses to local homeless shelters, amounting about R5.5 million
• Critical support to Government health care efforts including the donation of scarce PPE to the value of R2 million, approximately R3 million to sanitise local health facilities, old age homes, schools and taxi ranks and a contribution of approximately R1.8 million to assist with community tracing and screening
• Approximately R45 million spent on the preparation and conversion of existing Company accommodation and hospitals to quarantine and isolation facilities, in order to assist local government by alleviating pressure on public health care facilities
• Over R1 million budgeted for extensive and ongoing community awareness and education programmes
• In partnership with the University of the Witwatersrand in SA, we supplied 3,700 face shields to frontline health workers working in health facilities around our operations

For more information on our COVID-19 efforts, please refer to our website at https://www.sibanyestillwater.com/news-

investors/news/responding-to-covid-19/.

Operations in SA were suspended during the first five weeks of the national lockdown, with a progressive ramp-up in capacity permitted from May 2020 subject to COVID-19 workplace restrictions being applied. Revised work arrangements allowing for greater social distancing continued to be necessary however, especially in the more congested labour-intensive environments. As a result, a gradual, phased approach to the SA production build-up was adopted, with between 65 - 75% of employees recalled and 70% - 86% of planned production run rates achieved by the end of H1 2020.

The initial risk-based framework adopted by the SA government, that informed the application of the initial stringent three-week social and economic lockdown and the subsequent two week extension appears to have been abandoned, with the Government subsequently adopting a more adaptive adjustment of the regulations and indefinitely extending the lockdown, adding uncertainty to an already fraught environment. Despite COVID-19 infections increasing substantially in the inland provinces during June and July and a high number of confirmed cases across the South African mining industry, we have not experienced undue pressure to suspend operations during this phase. This is ascribed to a number of factors including the early development and implementation of comprehensive COVID-19 health and safety protocols at our operations, the recognition of wide-spread community transmission, our adoption of a phased approach to the production ramp-up, the readiness of public and private health services to cope with the pandemic and the imperative of sustaining economic activity to avert further social distress in the country.

There is clear evidence globally that people of advanced age or with pre-existing medical conditions (or co-morbidities) are more susceptible to developing severe and possibly fatal COVID-19 symptoms and it is our imperative to protect vulnerable employees. While we attempt to adapt or provide alternative working arrangements for such employees, it has unfortunately become necessary to restrict certain vulnerable employees (currently estimated at between 5-8% of the workforce) from reporting for duty until the threat of COVID-19 has diminished. This will result in temporarily operating at staffing levels below our original plans, with critical skills to be secured through contracting arrangements where necessary. As such, optimal production levels are therefore only likely to be reached by Q4 2020.

SA's strategy to mitigate the spread of COVID-19 now revolves around non-pharmaceutical interventions, targeted social measures and restrictions on activities that give rise to heightened levels of transmission in society while permitting economic activity to the greatest extent that is prudent. The rate of new infections has passed a peak in most provinces with daily confirmed and active cases declining. This trend is mirrored at our operations with infection rates, particularly at our SA PGM operations declining substantially since the peaks experienced in mid-July 2020. While it is envisaged that it will be necessary to sustain current measures for a prolonged period to avoid a resurgence in COVID-19 cases, the likelihood of more stringent measures being re-imposed appears remote at present.

Marikana renewal and restitution

The acquisition of Lonmin, which was finally concluded in June 2019, followed a detailed due diligence which recognised the tragic legacy associated with Marikana and the ongoing consequences which would accompany the acquisition, due to a lack of closure and justice for stakeholders affected by the events in August 2012.

Lonmin was facing financial failure which would have had severe and lasting repercussions for all stakeholders in the region. The acquisition by Sibanye-Stillwater has already ensured a more economically viable and sustainable future for these operations and all stakeholders. Sibanye-Stillwater has committed to a process of renewal and restitution at Marikana and sees the change in ownership of the assets as an opportunity to honour the past, bring closure and create a new future together with stakeholders in the region.

This commitment includes:

• Ensuring delivery on outstanding SLP commitments made by Lonmin and engaging in new and impactful SLP agreements

Sibanye-Stillwater Operating and financial results | Six months ended 30 June 2020

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• Fostering healing and closure by:
• • Providing ongoing counselling and emotional support for the widows and their families
  • Ensuring educational support and sustainability for the widows and the141 beneficiaries
  • Pursuing unfulfilled justice and restitution for those affected

On 14 August 2020, Sibanye-Stillwater hosted an inaugural virtual Marikana Memorial lecture in honour of the 44 employees who lost their lives in 2012. At this event, a commitment was made that Sibanye-Stillwater would seek full reconciliation within the mining communities around Marikana so that this situation will never happen again. This would be achieved in three stages:

1. All stakeholders would have to critically and honestly acknowledge the historical practices that contributed to social injustice and violence, akin to a Truth and Reconciliation commission.
2. Sibanye-Stillwaterwould undertake constructive and transparent engagement with all stakeholders (akin to our Good Neighbour agreement at our US PGM operations) in order to catalyse change in the region.
3. The creation of the development of a social and economic compact that would create superior value for all stakeholders, and one that would leave a legacy beyond mining by increasing engagement about socioeconomic growth and development to address poverty, unemployment and inequality and would create a sustainable future for mining and mining communities.

As part of the Memorial events, Sibanye-Stillwater handed over six houses to the widows of some of the deceased with a commitment to deliver a further 13 houses by the end of the year. A memorial wall was also unveiled in recognition of the tragedy and in honour of the deceased.

Our approach to engagement is centred on shared value to ensure the sustainable social development of communities by working collaboratively with government, non-governmental organisations and communities, with representative stakeholder forums formed and the planning of bigger regional renewal projects.

OPERATING SUMMARY (for more detail refer to page 8-10)

US PGM operations

The classification of PGMs, particularly platinum, as essential products by the US authorities due to their widespread use in medicines and medical products and a critical role in agriculture and catalysis in the oil refining industry, together with the pro-active implementation of COVID-19 protocols and steps taken to comply with social distancing requirements, enabled the US mining operations to continue operating largely uninterrupted throughout H1 2020. Productivity was however affected by additional time required to accommodate social distancing requirements, resulting in the US PGM operations achieving 89% of planned production levels for Q2 2020.

Mined 2E PGM production of 297,740 2Eoz was 5% higher than for H1 2019, with recycled production of 397,472 3Eoz 6% lower, primarily due to a global slowdown of auto catalyst collections and deliveries and logistical constraints caused by the global imposition of COVID-19 restrictions. All-in sustaining cost (AISC) of US$866/ 2Eoz for H1 2020 was 12% higher than for the comparable period, largely due to lower 2E PGM production from the Stillwater mine complex. Higher royalties and taxes, as a result of higher than plan PGM basket prices were also a contributing factor, adding US$41 per ounce to the year-on-year variance. Although the US region was able to continue operating during the COVID-19 pandemic, the pandemic has resulted in further cost inflation. Since March 2020, the region has incurred approximately US$3 million in COVID-19 related expenditure.

The average realised mined 2E PGM basket price for H1 2020 of US$1,837/2Eoz was 43% higher than for H1 2019 with the average realised recycling 3E PGM basket price benefiting from the higher rhodium price, increasing 87% year-on-year to US$2,238/3Eoz and boosting revenue by 73% compared to H1 2019, to US$1,381 million. Adjusted EBITDA increased to US$360 million for H1 2020, a 73% increase compared with H1 2019, with the US PGM operations contributing 36% of Group adjusted EBITDA. The recycling operations generated adjusted EBITDA of US$27 million for H1 2020.

COVID-19 measures taken to reduce the number of people on site in response to COVID-19, included suspending specific growth capital activities, largely associated with the Stillwater East mine (Blitz). Given the delays caused by COVID-19 along with improved geological and geotechnical knowledge gained as a result of new development and drilling, a review of the ramp up schedule is being conducted. Early indications are that the Blitz project will be delayed by up to 18 months. Further detail will be provided once the study has been concluded. The Fill the Mill project (FTM) is advancing according to schedule and within budget, with an annualised steady state production run rate increase of 40,000 2Eoz. This project is expected to yield an NPV of over US$400m and an IRR of 124% at the spot 2E PGM basket price.

SA operations

In contrast to the US PGM operations, the stringent economic and social restrictions imposed in South Africa from late March 2020, significantly impacted production from the SA operations during the latter part of H1 2020 with the SA PGM operations achieving only 50% of expected 4E PGM production for Q2 2020, 43% lower than for Q1 2020. The SA gold operations achieved 54% of expected production for Q2 2020, a 32% decline compared to Q1 2020.

Following constructive engagement with the South African Department of Mineral Resources and Energy, a progressive ramp up to 50% of capacity was permitted from May 2020, with a further relaxation of restrictions allowing a build-up to full capacity from June, subject to COVID-19 workplace protocols being observed. Revised work arrangements allowing for greater social distancing, especially in the more congested labour-intensive environments require the adoption of a gradual, phased production build up. At the end of H1 2020, between 65%-75% of employees had been recalled, with the SA operations forecast to achieve optimal production levels in Q4 2020 as outstanding members of the workforce are recalled. As a result of further relaxation of restrictions, approximately 80% of employees from the SA PGM operations and 86% of employees from the SA gold operations had been recalled by 24 August 2020.

Sibanye-Stillwater Operating and financial results | Six months ended 30 June 2020

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