Operating update for the quarter ended 30 September 2024

Johannesburg, 5 November 2024: Sibanye Stillwater Limited (Sibanye-Stillwater or the Group) (JSE: SSW and NYSE: SBSW) - https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ - is pleased to provide an operating update for the quarter ended 30 September 2024. Group financial results are only provided on a six-monthly basis.

SALIENT FEATURES – QUARTER ENDED 30 SEPTEMBER 2024 (Q3 2024) COMPARED TO QUARTER ENDED 30 SEPTEMBER 2023 (Q3 2023)

KEY STATISTICS – GROUP

KEY STATISTICS BY REGION

1. 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/(loss) before royalties and tax to adjusted EBITDA, see "Adjusted EBITDA reconciliation - Quarters"
2. 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
3. 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 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)
4. See “Salient features and cost benchmarks - Quarters” 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 
5. The acquisition of the Reldan Group of Companies (Reldan) was concluded on 15 March 2024. All salient features for the US Reldan operations are shown separately from the US PGM underground operations and the US PGM recycling
6. The SA PGM production excludes the production associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the production including 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 - Quarters"
7. 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
8. The nickel production at the Sandouville refinery operations is principally nickel metal and nickel salts (liquid form), together referred to as nickel equivalent products 
9. 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
10. See "Salient features and cost benchmarks - Quarters Sandouville nickel refinery for a reconciliation of cost of sales before amortisation and depreciation to nickel equivalent sustaining cost
11. Zinc metal produced (payable) is the payable quantity of zinc metal produced after applying smelter content deductions
12. 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
13. 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 page 25 for more information on the Non-IFRS metrics presented by Sibanye-Stillwater

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

The Q3 2024 operating results reflect the benefits of the actions we have taken to optimise our operations and improve Group profitability,  which are evident in the 9% improvement in Group adjusted EBITDA for Q3 2024 to R3.3 billion (US$184 million) compared with the same period in 2023.

This improved financial performance was primarily due to significantly improved financial contributions from the SA gold operations and the Century retreatment operations in Australia which, due to greater operational stability and higher metal prices during Q3 2024, were able to deliver significantly improved financial contributions to the Group. Despite solid operational delivery from the SA PGM and US PGM operations, persistent low PGM prices continued to squeeze margins, negatively impacting Group adjusted EBITDA. Further financial benefits are expected to materialise from the operational restructuring and optimisation undertaken to date which, together with restructuring of the US PGM operations and Sandouville refinery, are expected to further improve Group profitability.

While the US PGM operations have successfully improved on production and cost expectations during Q3 2024, the 2E PGM basket price has remained well below AISC during 2024 and the US PGM operations have continued to incur financial losses. This has necessitated further restructuring of the US PGM operations to reduce fixed costs and to secure the sustainability of these Tier 1 strategic assets.

The market response to the announcement of the restructuring on 12 September 2024 (covered in detail in our H1 2024 results presentation and in the operational section below) was positive, resulting in the palladium price breaching US$1,000/oz in response to the planned 200,000 2Eoz reduction in 2025 PGM production.

The Group has also actively pursued direct engagement and proactive lobbying with senior regulators and government officials in order to assist in securing the ongoing viability of these strategic assets and to minimise the impact of the restructuring on stakeholders.

Both Montana Senators, citing the restructuring of the US PGM operations, introduced bills proposing a ban on the import of Russian palladium into the US, which provided further support for the palladium price. Leading global media institutions have subsequently reported that US finance officials proposed additional sanctions on Russian metals, including PGMs, at a recent meeting of G7 finance officials in Washington. 

These positive developments were reinforced on 24 October 2024, when the US Department of the Treasury published the final regulations for Section 45X of the Inflation Reduction Act. The IRA, which was initially passed in August 2022, aimed to promote domestic clean energy component production, with Section 45X (S45X) proposing a 10% Advance Manufacturing Production credit for critical minerals, including palladium and platinum. However, subsequent guidance published in December 2023, excluded extraction and processing which reduced the financial benefits for the industry and provided little support for the US PGM operations.

Pleasingly, the final S45X rules have been amended to include extraction, processing in addition to refining costs, which is expected to provide significant financial support for the US PGM operations. While further engagement with our tax advisors is required to secure certainty with regard to the potential benefits for our US PGM operations from the amended S45X rules, our initial estimates amount to approximately US$140 million for 2023 and US$100 million for 2024. Further details will be provided when available.

The tangible support from the US authorities to secure local supply of critical minerals through the IRA and S45X confirms the appropriateness of our strategic positioning in the US and European ecosystems in response to our expectations of increasing multi-polarity and regionalisation of global trade. The European Union and its members have expressed similar intentions to support the development of regional supply chains in Europe. The recent approval of the €500 million (R9.9 billion) green loan for the Keliber lithium project was supported by the European Investment Bank and Finnish credit agency, Finnvera, along with a consortium of leading global banks.

On 21 August 2024, the Group announced that in order to address the Sandouville refinery’s projected losses, agreement had been reached to terminate a key commercial supply contract for the Sandouville refinery in France, with supply culminating on or before 31 December 2024. Consequently, the Sandouville refinery will cease production of nickel metals and salts during H1 2025. 

The GalliCam project is being considered through feasibility studies as a viable economic alternative to the current nickel refinery, utilising much of the existing processing circuit for a cost-effective and efficient chloride-based method to produce precursor cathode active material (pCAM). Pending the outcome of a pre-feasibility study for the GalliCam project, which is underway and scheduled for completion during Q1 2025, and necessary approvals being secured, work will begin to prepare for potential repurposing of the facility for the possible production of pCAM for supply to the French battery industry. We continue to actively engage with French and European authorities regarding future financial support for the development of the GalliCam project which, pending the outcome of the feasibility studies, would enhance its commercial viability.

The operational restructuring and optimisation undertaken since the beginning of 2023 has tangibly improved the stability and profitability of the Group operations and, by preserving operational cash flows, has protected the integrity of the Group balance sheet. 

The Group financial position has also been reinforced through initiatives which include securing early uplift of the Group debt covenants, favourable refinancing of debt facilities with support from our lenders, and more recently,securing non-debt capital. These measures have enhanced Group liquidity and headroom by approximately R25 billion (US$1.4 billion) to date with further progress made with regard to securing additional financing of approximately US$600 million through prepays and streams on selected by-product metals we produce.  

The Group is financially secure and, with further production and cost benefits expected during 2025 from operational restructuring and optimisation, management believes it is well positioned for ongoing strategic delivery and shared value creation.

SAFE PRODUCTION 

Continued year on year improvements in both lagging and leading indicators for all Group-level metrics indicate an ongoing reduction in risk at most of our operations, which pleasingly has been further supported by notable reductions in reported high potential incidents (HPIs) since detailed tracking of such incidents in mid-2022.

These positive trends were maintained during Q3 2024, with year-on-year improvements recorded in all Group level safety indicators. The Group serious injury frequency rate (SIFR) (per million hours worked) for Q3 2024 of 2.36 improved by 4.5% year-on-year, with the lost day injury frequency rate (LDIFR) of 4.01 and total recordable injury frequency rate (TRIFR) of 4.67, improving by 12% and 11% respectively, when compared to Q3 2023. The Group fatal injury frequency rate (FIFR) improved by 30% to 0.05 compared with 0.07 for Q3 2023. 

Despite the reduction in the Group FIFR, the loss of two colleagues from the SA region during the period is an ongoing reminder that we are still on a challenging journey to achieve our goal of zero fatalities. On 18 August 2024, Mr. Kgauta Khoathane, a 48 year old contractor at Driefontein Hlanganani shaft, passed away after from injuries caused by a failed water column pipe. On 21 September 2024, Mr. Monnatlala Moepi, a 47 year old locomotive operator at Khuseleka shaft, passed away due to injuries from a derailment involving track-bound equipment.  

All incidents are being investigated with the relevant stakeholders and support has been provided to the families of the deceased. The board and management of Sibanye-Stillwater extend heartfelt condolences to the families, friends and co-workers of our deceased colleagues. 

The SA region’s serious injury frequency rate (SIFR) (per million hours worked), improved by 3% from 2.42 for Q3 2023 to 2.35 for Q3 2024. The lost day injury frequency rate (LDIFR) and total recordable injury frequency rate (TRIFR) improved by 14% and 13%, when compared to Q3 2023, to 3.93 and 4.52 respectively. The fatal injury frequency rate (FIFR) improved by 30% when compared to Q3 2023, from 0.07 to 0.05, but still included the tragic loss of two colleagues. 

The US region, including the Reldan operations, reported a 33% improvement in recordable injuries, with six injuries for Q3 2024 compared to nine injuries for Q3 2023. The Q3 2024 SIFR of 2.17 improved by 50% compared to 4.37 in Q3 2023. The LDIFR and TRIFR both improved by 17%, when compared to Q3 2023, to 4.33 and 6.5 respectively. 

The European region had six recordable injuries during Q3 2024. This is an increase from the one recordable injury during Q3 2023. The regression was driven by the increased construction work on the Keliber lithium project and the focus on contractor training and compliance with Group safety protocols has intensified.

One recordable injury was experienced in the Australian (AUS) region during Q3 2024 compared to none in Q3 2023. We believe the high percentage of safety stoppages by frontline employees during 2024 (more than 70%) is a reflection of the mature safety culture already entrenched in the region.

Americas (US) region

US PGM operations

The US PGM operations continued to deliver improved operating results at the upper end of expectations from the restructuring concluded in Q4 2023. Mined 2E PGM production of 111,976 2Eoz was 6% higher than for Q3 2023, due to a 7% increase in the underground (UG) mined yield to 11.12 g/t  from 10.44 g/t for Q3 2023. The Stillwater mine (Stillwater West and Stillwater East) produced 64,820 2Eoz or 6% less than for Q3 2023 but the East Boulder mine produced 47,156 2Eoz, 28% higher than for Q3 2023, resulting in an improved overall performance.

All-in sustaining cost (AISC) of US$1,274/2Eoz for Q3 2024, was below the lower level of average annual AISC guidance for 2024, declining by 34% from US$1,922/2Eoz for Q3 2023. This is a notable performance given the circumstances and confirms the relevance of the restructuring which was undertaken during Q4 2023. 

Mined PGMs sold for Q3 2024 of 99,948 2Eoz were 20% lower than for Q3 2023 and 11% lower than mined production for Q3 2024. This was primarily due to the cyber-attack in early July 2024 which resulted in processing downtime at the Columbus metallurgical complex. While the cyber-attack had a limited impact on the mining operations, which continued to operate as planned,  there was a build-up of a stockpile of mine concentrate containing approximately 20,000 2Eoz above normal inventory levels during Q3 2024. This stockpile is expected to be processed before year end.

Capital expenditure for Q3 2024 was US$36 million (R651 million), with ore reserve development capital (ORD) decreasing by 59% to US$23 million (R418 million) and sustaining capital (SIB) of US$6 million (R102 million) for Q3 2024, US$27 million (R500 million) less than for Q3 2023, in line with the repositioning plan to reduce cash outflow. Project capital of US$7 million (R131 million) was primarily for the East Boulder tailings facility expansion.

Despite the significant reduction in AISC and increased production, the 2E PGM basket price has remained below US$1000/2Eoz for most of 2024, between US$300 to 400/2Eoz below the average AISC for 2024 YTD. Despite the improved performance for Q3 2024, the US PGM operations reported an adjusted EBITDA loss of US$6 million (R108 million) for Q3 2024, down from a positive adjusted EBITDA of US$21 million (R397 million). This decline is due to a 17% decrease in the average 2E PGM basket price for Q3 2024 to US$983/2Eoz.

Without increasing production from the US PGM operations, which requires capital investment in ORD and infrastructure to improve the efficiency and flexibility of the mines, in particular Stillwater West which was developed in the late 1980s, opportunities to reduce unit costs further are limited. The capital investment required is not feasible at current PGM prices. Further restructuring to address the absolute losses being incurred by the US PGM operations while ensuring the sustainability of the Columbus autocatalyst recycling operation is therefore being implemented. 

As announced on 12 September 2024, the restructuring will result in 2E PGM production from the US PGM operations decreasing by approximately 200,000 2Eoz for 2025 (from 2024 guidance levels), with the Stillwater West mine being placed on care and maintenance and reduced production from the East Boulder mine, with the focus on lower volume, higher margin production from the East Boulder and Stillwater East mines. The restructuring strategy emphasises operational efficiency, cost reduction, and maintaining flexibility in long-life orebodies, while upholding exemplary ESG standards. Over the longer term the emphasis will be on continuous cost optimisation and modernisation of the mining practices, technology and infrastructure in order to support higher production necessary to reduce AISC to approximately US$1,000/2Eoz.

US recycling operations

During Q3 2024, the PGM recycling operation fed an average of 10.6 tonnes per day (tpd), a 12% increase compared to 9.5 tpd rate for Q3 2023. Recycled ounces sold of 81,228 3Eoz increased from 77,679koz for Q3 2023, but due to a 42% decline in the average 3E PGM recycle basket price to US$1,293/3Eoz, adjusted EBITDA declined to US$5 million (R98 million) from US$8 million (R147 million) for Q3 2023.  

The integration of the Reldan recycling operation, since acquisition in March 2024, continues to progress according to schedule with synergies and other opportunities for value realisation being actively driven. 

Reldan processed 1,263,545 million lbs of mixed scrap and sold 31,006 oz gold, 432,996 oz silver, 4,707 oz platinum, 6,628 oz palladium, and 794,476 million lbs of copper, contributing adjusted EBITDA of US$8 million (R149 million) to the Group for Q3 2024.  

Southern Africa (SA) region

SA PGM operations

The SA PGM operations continued to perform consistently, with 4E PGM production in line with annual guidance and costs well managed. The restructuring of the SA operational and regional services which was concluded towards the end of H1 2024 is expected to deliver further cost and efficiency benefits during Q4 2024 and into 2025. 

4E PGM production (excluding third party purchase of concentrate (PoC)) from the SA PGM operations, increased by 5% to 473,938 4Eoz.  Production was positively impacted by the consolidation of 100% of the Kroondal operation following the acquisition of Anglo American Platinum's 50% share in the Pool and Share Agreement (PSA) in November 2023. This offset lower production from the Rustenburg operation in Q3 2024, primarily due to production still being in build-up during the quarter following repairs to the ore collector bin at the Siphumelele shaft, as well as restructuring and closure of high cost and end of life operations during H1 2024. 4E PGM production from underground increased by 6% to 431,584 4Eoz, with surface production (excluding PoC) declining by 7% to 42,354 4Eoz.

4E PGM production (including PoC) increased by 5% to 499,056 4Eoz, with PoC production of 25,118 4Eoz, 5% higher year-on-year.

AISC (excluding PoC) for the SA PGM operations of R21,228/4Eoz (US$1,182/4Eoz) was 6% higher year-on-year. Containing the increase in unit cost to an inflation comparable percentage was primarily a result of strict cost containment initiatives, partially offset by higher AISC  from the Rustenburg operation due to lower production from the Siphumelele shaft and a relative decrease in production from the Kroondal operation year-on-year following the closure of the low cost Simunye shaft and Klipfontein open cast mine during Q4 2023.  

By-product credits for Q3 2024, increased by 20% to R3.0 billion (US$165 million), reducing AISC by R6,256/4Eoz (US$348/4Eoz). Chrome ore credits, which comprise over 50% of the total by-product value, increased by 55% year-on-year, to R1,613 million (US$90 million). This increase was primarily driven by higher chrome sales of 694kt (from 554kt for Q3 2023), in line with our strategy to grow chrome production, underpinned by a 5% rise in the average spot chrome price to US$305/t for Q3 2024. The Platinum Mile chrome project, which was completed during December 2023, added 23kt to chrome production, coupled with the consolidation of 100% of Kroondal, which added 40kt, and production from Marikana was 33kt higher. AISC (including PoC) of R21,176/4Eoz (US$1,179/4Eoz) also increased by 6% year-on-year. 

Total capital expenditure for Q3 2024, of R1.4 billion (US$77 million) was 5% lower than for Q3 2023, with K4 project capex decreasing by 41% to R159 million (US$9 million). Sustaining capital increased 8% to R521 million (US$29 million), mainly due to a 34% increase in SIB capex at the Rustenburg operation and the consolidation of 100% of Kroondal which offset an R78 million (US$4 million) reduction in SIB from the Marikana operation. Project capital fell 52% to R161 million (US$9 million) following the commissioning of the chrome plant at Platinum Mile towards the end of December 2023.

Adjusted EBITDA of R1,584 million (US$88 million) from the SA PGM operations for Q3 2024 was 37% lower than for Q3 2023, primarily due to the inflation related increase in AISC and a 2% decline in the average 4E PGM basket price to R23,909/4Eoz (US$1,331/4Eoz). The SA PGM operations retain significant leverage to higher 4E PGM basket prices which, together with expected production and cost improvements, should result in an improved adjusted EBITDA contribution from the SA PGM operations for Q4 2024.

4E PGM production from the Rustenburg operation decreased by 8% year-on-year to 167,085 4Eoz primarily due to the build up in production from the Siphumelele shaft after completing repairs to the head gear infrastructure in late July 2024. AISC of R21,570/4Eoz (US$1,201/4Eoz) for Q3 2024 increased by 15% due to lower production, inflationary cost pressures, and a 34% increase in SIB capital expenditure to R206 million (US$11 million). The increased SIB spend was mainly for the Klipfontein re-pulping plant to stabilise the through-put for the Western Limb tailings facility. SIB and ORD spend of R238 million (US$13 million), planned for but not yet invested by the end of Q3 2024, will roll over to Q4 2024 resulting in forecasted SIB and ORD spend for Q4 2024 of R616 million (US$34 million). 

The Marikana operation had a solid quarter operationally, with 4E PGM production (excluding PoC), increasing by 4% to 185,854 4Eoz. Underground production of 176,406 4Eoz, was 3% higher, despite the restructuring of the Rowland shaft and the closure of 4B shaft, due to the ongoing ramp up at K4 shaft (K4 production increased by 13,502 4Eoz year-on-year to 21,702 4Eoz). Third party PoC increased by 5% to 25,118 4Eoz, resulting in production from the Marikana operation (including PoC) of 210,972 4Eoz for Q3 2024. Costs were well managed, with AISC (excluding PoC) 2% lower at R22,265/4Eoz (US$1,240/4Eoz) due to higher production and lower SIB. AISC (including PoC) of R22,027/4Eoz (US$1,226/4Eoz) was 1% lower year-on-year, benefiting from increased production and PoC volumes at lower prices. Project capital expenditure for Q3 2024 was R159 million (US$9 million). Capital expenditure is expected to increase in Q4 2024 mainly due to increased spend on the smelters furnace rebuild and the ruthenium plant upgrade at the precious metals refinery.

The Kroondal operation produced 77,150 4Eoz for Q3 2024 (100% attributable), 62% higher year-on-year, due to the acquisition of Anglo Platinum's 50% share in the PSA from 1 November 2023. On a comparable basis year-on-year (50%), production declined by 19% or 9,025 4Eoz compared with Q3 2023, primarily due to the closure of the Simunye shaft and the Klipfontein opencast mine during 2023. As a result of the relative decline in production, AISC increased by 11% to R20,518/4Eoz (US$1,142/4Eoz). Kroondal capital expenditure is forecast to increase in Q4 2024 due to investment in trackless mobile machinery and ongoing establishment of underground infrastructure to access additional reserves.

Reminder: 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.  H2 2024 operating and financial results will be affected by the transition from POC to toll due to the timing of when production and sales are declared. 

4E PGM production from Platinum Mile declined by 10% to 12,441 4Eoz primarily due to a 6% decrease in run of mine tonnes from the Rustenburg operation and reduced surface tailings feed. The chrome extraction plant which was commissioned at the end of 2023, produced 23kt of chrome for Q3 2024 and is expected to reach nameplate capacity of about 10kt per month by Q1 2025. Despite the lower PGM production and inflationary cost pressures, the increase in chrome credits resulted in AISC at Platinum Mile for Q3 2024 declining by 64% compared with Q3 2023, to R5,546/4Eoz (US$309/4Eoz).

Attributable 4E PGM production from the Mimosa JV for Q3 2024 of 31,408 4Eoz, was 8% higher than for Q3 2023. This increase in production offset significant inflationary cost pressures in Zimbabwe, resulting in operating cost being maintained at US$95/tonne (R1,710/tonne), with AISC decreasing by 16% year-on-year to US$1,147/4Eoz (R20,600/4Eoz). AISC also benefited from lower SIB expenditure of US$7 million (R129 million) following the completion of the plant optimisation project, and reduced expenditure on the new tailings storage facility which is close to completion.

SA gold operations

Gold production from the SA gold operations (excluding DRDGOLD) of 4,263kg (137,059oz) for Q3 2024 was 12% lower than for Q3 2023, primarily due to a 43% decrease in production from the Kloof operation partially driven by the closure of Kloof 4 Shaft. AISC for the SA gold operations (excluding DRDGOLD) of  R1,414,450/kg (US$2,450/oz) was 9% higher than for Q3 2023, due to lower gold production and a 17% reduction in gold sold. 

The financial leverage of the SA gold operations to higher gold prices is evident in the nearly three fold increase in adjusted EBITDA from R344 million (US$19 million) for Q3 2023 to R1,347 million (US$75 million) for Q3 2024, driven by a 24% increase in the average gold price to R1,426,290/kg (US$2,470/oz). The gold price has continued to increase during Q4 2024 and at current spot of around R1,565,000/kg (US$2,745/oz) both the Driefontein and Beatrix operations are expected to generate substantial cashflow, with the benefits compounding as unit costs decline with increasing production from these operations. 

Capital expenditure for Q3 2024 (excluding DRDGOLD) of R962 million (US$54 million), decreased by 27% compared to Q3 2023. This decline is mainly due to a 91% reduction in project capital resulting from terminating the Kloof 4 deepening project, the closure of Kloof 4, and suspension of the Burnstone project. Sustaining capital also decreased by 29%  to R182 million (US$10 million), primarily due to the closure of Kloof 4 shaft. ORD however rose by 10% to R747 million (US$42 million), reflecting increased ORD at Driefontein 5 shaft, where additional production is forecast for 2025. Capital expenditure from the managed SA gold operations for Q4 2024 is expected to be in line with Q4 2023.

At the recent H1 2024 results we highlighted the improving production trends from the Driefontein operation during Q2 2024, and that a significantly improved operational performance was expected during H2 2024. For Q3 2024 throughput increased by 23% (resulting in unit cost (R/t) decreasing by 13%) and, together with a 5% improvement in the underground yield, underground production increased by 29% to 1,869kg (60,090oz) with production from Driefontein 5 shaft (affected by an underground fire during 2023), 251% higher. Consequently AISC decreased by 11% to R1,298,327/kg (US$2,248/oz). well below the average gold price for the period of R1,408,540/kg (US$2,439/oz) due to the increase in production. 

Production from the Beatrix operation improved steadily during Q3 2024 as crews affected by the back break incidents which impacted H1 2024, resumed production with planned production rates exceeded during October 2024. Production for Q3 2024 of 890kg (28,614oz) was 5% lower than for the comparable period in 2023, with AISC of R1,384,437/kg (US$2,398/oz), 3% higher. Production rates were significantly improved by the end of Q3 2024 and, if maintained, should result in significantly lower AISC from the Beatrix operations for Q4 2024 and 2025.

Underground production of 1,079kg (34,691oz) from the Kloof operation for Q3 2024 was 43% or 803kg (25,817oz) lower than Q3 2023 with AISC R1,614,094/oz (US$2,795/oz) remaining elevated. The Kloof operation continues to experience significant operational challenges which have constrained production, including seismicity that affected high grade mining panels mainly at the Kloof main shaft. Production at 7 shaft was impacted by an incident in the shaft which stopped production for two months, resulting in an estimated 80kg less gold production during Q3 2024. The focus at Kloof during Q4 2024 will be on finalising plans to create additional flexibility by developing access to secondary reefs. 

DRDGOLD delivered a 3% increase in gold production, to 1,319kg (42,407oz) for Q3 2024, primarily driven by a 16% increase in throughput, despite a decrease in yield. Gold sales increased by 2% to 1,289kg (41,442oz). Unit cost per tonne also decreased by 7% to R184/t (US$10/t), attributed to higher throughput and a reduction in more expensive mechanically reclaimed sites (clean-up sites), despite the higher winter electricity tariffs. AISC dropped to R931,730/kg (US$1,614/oz), reflecting lower cash operating cost and sustaining capital expenditures. The completion and upcoming commissioning of the solar power plant and battery energy storage system (BESS) are expected to reduce costs further in Q4 2024. 

European (EU) region

Sandouville nickel refinery

For Q3 2024, Nickel equivalent production from the Sandouville refinery of 2,039tNi, was 13% lower than for Q3 2023 (2,352tNi). Nickel metal output declined by 5% to 1,835tNi (Q3 2023: 1,925tNi), and nickel salts production decreased by 52% to 204tNi (Q3 2023: 427tNi). Production was affected by a temporary shortage of starter sheets, which resulted from an electrical rectifier malfunction, and the ramp-up of the new bagging machine, while nickel carbonate production was stopped due to low customer demand.

The Q3 2024 nickel-equivalent sustaining cost of US$22,451/tNi (R403,217/tNi) was 29% lower than for Q3 2023, primarily due to lower feedstock costs due to a 13% decrease in the average LME nickel price, lower energy and reagent costs and savings on fixed costs. By-product credits of US$2 million (R30 million) were 20% lower year-on-year, with sustaining capital 58% lower to US$2 million (R33 million), primarily to ensure plant maintenance and stability.

Nickel metal sales remained steady at 1,657tNi, with nickel salt sales of 270tNi decreasing 6% year-on-year. Total working capital decreased by 19%, from US$24 million to US$20 million. The adjusted EBITDA loss for Q3 2024 was US$8 million (R152 million), which is nearly half of the US$16 million (R296 million) loss recorded in Q3 2023. 

Keliber lithium project

Construction of the Keliber lithium refinery in Kokkola is at an advanced stage, with main equipment installations currently underway. The second phase of the Keliber lithium project, involving the construction of the Päiväneva concentrator and development of the Syväjärvi open pit mine, is progressing as planned after commencing in late 2023.

Key developments during Q3 2024

• Engineering and procurement contracts are nearing completion
• Green loan package of €500 million announced on 22 August 2024, completing the full project financing requirement for the Keliber lithium project
• During Q3 2024, 13 drill holes (56 YTD) were completed, covering 2,295 meters (10,526 meters YTD) at major exploration targets. Several significant intercepts were reported. The seasonal regional exploration, which included boulder mapping and till sampling, concluded by the end of August 2024. Several new exploration permits were received from the authorities
• Capital expenditure for Q3 2024 was €85 million, bringing the year-to-date total to €218 million. 

Australian region

Century zinc retreatment operation

The Century operation delivered a solid operational performance for Q3 2024, producing 27kt of payable zinc, a 9% increase compared with Q3 2023's 25kt.

Sales for the quarter totalled 20kt of payable zinc metal, which was lower than production due to the timing of shipments. AISC for Q3 2024 of US$1,809/tZn (R32,486/tZn) was 3% higher than for Q3 2023. Sustaining capital from the Century operations for Q3 2024 was US$1.7 million (R30 million).  Adjusted EBITDA of US$31 million (R565 million) was US$28 million (R512 million) higher than for Q3 2023. Unfortunately this solid performance from the Century retreatment operation will be affected by the regional fire impact during Q4 2024, with the operations expected to resume production in mid November 2024. 

Significant efforts have been made to minimise future impacts on the operations from rains during the wet season (particularly during the first quarter of the year), including the addition of two satellite slurry winning pontoons, additional dewatering pumping infrastructure, an improved debris removal system, and additional water diversion bunds, and we expect that the strong operational and financial performance from Q3 2024, will continue in 2025.

In early October 2024, the Century operation in Queensland, Australia was impacted by a regional bushfire. While the operations team succeeded in protecting the primary infrastructure at the Century operations (processing plant, hydro mine, airport, underground slurry pipeline and camp), there has been extensive loss of surface piping infrastructure, including the feed and water lines that connect the hydro mine to the processing plant and other key service lines. Suppliers have been contacted and replacement piping is under manufacture and being delivered. Due to the amount of piping required, operations are expected to remain suspended until 16 November 2024. As a result, we anticipate production of payable zinc metal for Q4 2024 to be approximately 9,680 tonnes less than forecast.  Operating guidance for 2024 has revised accordingly (please refer to the Operating guidance section below). 

Options to leverage the existing infrastructure (processing plant, pipeline and port infrastructure) and extend the life of the assets beyond the current zinc retreatment operations are being actively explored. This includes opportunities to potentially utilise the Century infrastructure to access the extensive phosphate resources in the region that are largely undeveloped.

Mt Lyell copper project

The Class 3 Feasibility Study received endorsement, leading to the start of optimisation work for the Class 2 Feasibility Study, focusing on resource model updates, value optimisation, and mine design. A total of US$2 million (R36 million) of expenses were recognised in relation to Mt Lyell during the quarter. 

OPERATING GUIDANCE FOR 2024*

Guidance for the operations for 2024 other than the Century retreatment operation is unchanged. The US PGM operations are however undergoing significant restructuring (refer to H1 2024 results announcement on 12 September 2024)  with Stillwater west mine being placed on care and maintenance during Q4 2024 which may impact production and costs during Q4 2024, and as a result, final results for 2024 may differ from current guidance.  

• 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 at our managed operations is forecast at R6.0 billion (US$343 million)* for the year 
• Gold production from the managed SA gold operations (excluding DRDGOLD) for 2024 is still expected to be 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 at our managed operations 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 expected to be  €300 million (R5.7 billion)*
• Guidance for the Century retreatment operation for 2024 has been revised to reflect the production and cost impact of the October 2024 regional bushfire in Queensland. Production from the Century zinc tailings retreatment operations for 2024 is now forecast to be between 79kt and 88kt of zinc metal (payable) 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

SALIENT FEATURES AND COST BENCHMARKS – QUARTERS

US and SA PGM operations

Average exchange rate for the quarters ended 30 September 2024, 30 June 2024 and 30 September 2023 was R17.96/US$, R18.57/US$ and R18.59/US$, respectively

Figures may not add as they are rounded independently

1. The US and SA PGM operations, Total SA PGM operation and Marikana excludes the production and costs associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the Operating cost, AISC and AIC excluding third party PoC, refer to “Reconciliation of operating cost excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana - Quarters” and “Reconciliation of AISC and AIC excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana – Quarters” 
2. The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated into rand. In addition to the US PGM operations’ underground production, the operation treats recycling material which is excluded from the statistics shown above and is detailed in the PGM recycling table below
3. Kroondal operation includes 100% of production and costs from 1 November 2023, the effective date of acquiring Anglo Platinum's 50% share of the Kroondal PSA 
4. Production per product – see prill split in the table below
5. PGM sold includes the third party PoC ounces sold
6. The US and SA PGM operations and Total SA PGM operations’ unit cost benchmarks and capital expenditure exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales
7. The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment
8. Operating cost, All-in sustaining costs and All-in costs 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" for more information on the metrics presented by Sibanye-Stillwater. All-in sustaining costs and All-in costs are considered pro forma performance measures under the JSE Listing Requirements. This pro-forma financial information is the responsibility of the Group's Board of Directors and is presented for illustration purposes only, and because of its nature All-in sustaining costs and All-in costs should not be considered as a representation of financial performance
9. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. For a reconciliation of cost of sales, before amortisation and depreciation to All-in cost, see “All-in costs - Quarters”

Mining – PGM Prill split including third party PoC, excluding recycling operations

Figures may not add as they are rounded independently

SALIENT FEATURES AND COST BENCHMARKS – QUARTERS (continued)

SA gold operations

Average exchange rates for the quarters ended 30 September 2024, 30 June 2024 and 30 September 2023 was R17.96/US$, R18.57/US$ and R18.59/US$, respectively

Figures may not add as they are rounded independently

1. Operating cost, All-in sustaining costs and All-in costs 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}" for more information on the metrics presented by Sibanye-Stillwater. All-in sustaining costs and All-in costs are considered pro forma performance measures under the JSE Listing Requirements. This pro-forma financial information is the responsibility of the Group's Board of Directors and is presented for illustration purposes only, and because of its nature All-in sustaining costs and All-in costs should not be considered as a representation of financial performance
2. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. For a reconciliation of cost of sales before amortisation and depreciation to All-in cost, see “All-in costs – Quarters”
3. Corporate project expenditure for the quarters ended 30 September 2024, 30 June 2024 and 30 September 2023 was R33 million (US$2 million), R71 million (US$4 million) and R337 million (US$18 million), respectively, the majority of which related to the Burnstone project

SALIENT FEATURES AND COST BENCHMARKS – QUARTERS (continued)

European operations

Average exchange rates for the quarters ended 30 September 2024, 30 June 2024 and 30 September 2023 was R17.96/US$, R18.57/US$ and R18.59/US$, respectively

Figures may not add as they are rounded independently

1. Nickel salts consist of anhydrous nickel, nickel chloride low sodium, nickel chloride standard, nickel carbonate and nickel chloride solution
2. Nickel cakes occur during the processing of nickel matte and are recycled back into the nickel refining process
3. Cobalt chloride and ferric chloride are obtained from nickel matte through a different refining process on an order basis
4. 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
5. The Nickel equivalent sustaining cost, is the cost to sustain current operations. Nickel equivalent sustaining cost and Nickel equivalent sustaining costs per tonne are intended to provide additional information only, do not have any standardised meaning prescribed by IFRS and should not be considered in isolation or as alternatives to cost of sales, profit before tax, profit for the year, cash from operating activities or any other measure of financial performance prepared in accordance with IFRS. Nickel equivalent sustaining cost and Nickel equivalent sustaining costs per tonne as presented in this document may not be comparable to other similarly titled measures of performance of other companies. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and accounting frameworks such as in US GAAP. Differences may also arise related to definitional differences of sustaining versus development capital activities based upon each company’s internal policies. See "Non-IFRS measures" for more information on the metrics presented by Sibanye-Stillwater. This pro-forma financial information is the responsibility of the Group's Board of Directors and is presented for illustration purposes only, and because of its nature Nickel equivalent sustaining costs and Nickel equivalent sustaining costs per tonne should not be considered as a representation of financial performance 
6. Nickel recovery yield is the percentage of total nickel recovered from the matte relative to the nickel contained in the matte received

SALIENT FEATURES AND COST BENCHMARKS – QUARTERS (continued)

Australian operations

Average exchange rates for the quarters ended 30 September 2024, 30 June 2024 and 30 September 2023 was R17.96/US$, R18.57/US$ and R18.59/US$, respectively

Figures may not add as they are rounded independently

1. Concentrate produced contains zinc, lead, silver and waste material, which is exported as a relatively dry product 
2. Concentrate zinc grade is the percentage of zinc contained in the concentrate produced
3. Metal produced (zinc in concentrate) is the zinc metal contained in the concentrate produced
4. Zinc metal produced (payable) is the payable quantity of zinc metal produced after applying smelter content deductions
5. Zinc sold is the zinc metal contained in the concentrate sold
6. Zinc sold (payable) is the payable quantity of zinc metal sold after applying smelter content deductions
7. 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
8. All-in sustaining costs and all-in costs 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"  for more information on the metrics presented by Sibanye-Stillwater. All-in sustaining costs and All-in costs are considered pro forma performance measures under the JSE Listing Requirements. This pro-forma financial information is the responsibility of the Group's Board of Directors and is presented for illustration purposes only, and because of its nature All-in sustaining costs and All-in costs should not be considered as a representation of financial performance
9. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. For a reconciliation of cost of sales, before amortisation and depreciation to All-in cost, see “All-in costs - Quarters”

ALL-IN COSTS – QUARTERS

US and SA PGM operations           

Figures are in rand millions unless otherwise stated