Sibanye Gold Ltd.

Sibanye is a primarily South Africa-focused mining company committed to paying industry-leading dividends. An independent mining group – domiciled in and focused on South Africa – Sibanye currently owns and operates high-quality gold and uranium operations and projects throughout the Witwatersrand Basin. The Group’s corporate office is located close to Westonaria, in the province of Gauteng, near its West Wits operations. In 2016 produced the company around 1.6 Mio. ounces gold and the reserves rose to 31 Mio. ounces gold and 114 Mio. lbs Uranium. The 2015 AISC stood at 1,031 USD/ounce gold with falling tendency to now 895 USD/ounce gold as mentioned in the Q1-2016 report. The operational margin was in 2015 at solid 28%. Sibanye is amongst the Top 10 of the worldwide gold producers, mines in addition Uranium on a by-product basis and starts in 2016 the Platinum production.

As a responsible corporate citizen, Sibanye fosters and maintains constructive engagement with all stakeholders in order to deliver on its vision to deliver superior value to all of its stakeholders, to maintain its licence to operate, and ultimately for the long-term success and sustainability of the business. The Group currently owns and operates four underground and surface gold operations in South Africa – the Cooke, Driefontein and Kloof operations in the West Witwatersrand region, and the Beatrix Operation in the southern Free State province. In addition to its mining activities, Sibanye owns and manages significant extraction and processing facilities at its operations where gold-bearing ore is treated and beneficiated to produce gold doré.

Sibanye is currently investing in a number of organic projects. Those currently being developed include the Kloof and Driefontein below infrastructure projects on the West Rand and the Burnstone project on the South Rand of Gauteng province. Engineering design is underway on the West Rand Tailings Retreatment Project (WRTRP) and financing options are being considered for this project, which awaits environmental permits before it is submitted to the Board for approval. A dedicated projects team continues to assess and refine plans for projects, including Beisa, Bloemhoek and De Bron Merriespruit in the Free State.

In line with Sibanye’s strategy to create value for stakeholders and enhance or sustain its dividend, it entered into two separate transactions to acquire the Rustenburg platinum assets from Anglo American Platinum Limited (Rustenburg Operations) and Aquarius Platinum Limited (Aquarius) in 2015. These transactions are expected to be finalised during the course of 2016.

Sibanye mines, extracts and processes gold ore to produce a beneficiated product, doré, which is then further refined at Rand Refinery Proprietary Limited (Rand Refinery) into gold bars with a purity of at least 99.5% in accordance with the Good Delivery standards determined by the London Bullion Market Association. The refined gold is then sold on international markets. Sibanye holds a 33% interest in Rand Refinery, one of the largest global refiners of gold, and the largest in Africa. Rand Refinery markets gold to customers around the world.

In addition, Sibanye derives uranium ore as a by-product of gold production from the Cooke operation and keeps it separate from other gold ores by way of a dedicated stream into the uranium section of the Ezulwini gold and uranium plant. The uranium ore is first treated for uranium and then subsequently to recover gold. Production of uranium as a by-product enables Cooke’s gold Mineral Resources to be optimised. Revenue from the sale of uranium is offset against gold production costs, thereby allowing lower-grade gold resources to be mined profitably.

Company Objectives

Sibanye Gold wants to close the two Platinum transactions and start Platinum production as soon as possible with a target above 1 Mio. ounces per annum. Continued and rising dividends for the next years are a major target of the company as well to maintain the high safety standards and good relations to the government and the communities.  

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Data & Facts

ISIN:ZAE000173951
WKN:A1KBRZ
FRA:0SG
JSE:SGL
NYSE:SBGL
Outstanding Shares: 923.902.469

Management

Head Office: Libanon Business Park, 1 Hospital Street
  Libanon, Westonaria,1780 - South Africa
   
Management: Neal Froneman, CEO
  Charl Keyter, CFO
  Hartley Digkale, Executive VP Corporate Affairs
  Dawie Mostert, Executive VP Commercial Services
  Jean Nel, Divisional CEO - Platinum Division
  Wayne Robinson, Divisional CEO - Gold & Uranium Division
  Richard Stewart, Executive VP - Business Development
  Robert van Niekerk, Executive VP - Organisational Effectiveness
  John Wallington, Executive VP - Coal and Energy

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