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Operational Results for Q3-2019 Sibanye-Stillwater

Positive devlopment for the Sibanye-Stillwater group

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Johannesburg, 31 October 2019: Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater or the Group) (JSE: SGL & NYSE: SBGL - https://www.youtube.com/watch?v=BHb5SLrbq8s&t=7s ) is pleased to present an operating update for the quarter ended 30 September 2019. Financial results are only provided on a six-monthly basis.

SALIENT FEATURES FOR THE QUARTER ENDED 30 SEPTEMBER 2019

  • Record safety performance by the SA gold operations - over 430 consecutive fatality free days & eight million fatality free shifts

−   two regrettable fatal incidents at the SA PGM operations (at Marikana) in Q3 2019

  • Group adjusted EBITDA increased by 240% to R5.5 billion (US$377 million)

−   The SA PGM operations contributed R2.9 billion (53%), the US PGM operations R1.8 billion (32%) and the SA gold operations R843 million (15%)

  • Outlook for precious metals prices remains constructive – prices continued to strengthen in Q4 2019 to date
  • Deleveraging on track - net debt: adjusted EBITDA of 1.7x at end Q3 2019, down from 2.5x at end H1 2019
  • Integration of Marikana operation progressing well

−   Operational review complete and set for implementation of revised operational plan in 2020

 

 

 

 

 

 

 

 

 

 

US dollar

 

 

 

 

 

SA rand

Quarter ended

 

 

 

 

 

Quarter ended

Sep 2018

Jun 2019

Sep 2019

 

KEY STATISTICS

 

Sep 2019

Jun 2019

Sep 2018

 

 

 

 

UNITED STATES (US) OPERATIONS

 

 

 

 

 

 

 

 

PGM operations1

 

 

 

 

 139,178

 153,874

 147,353

oz

2E PGM2 production

kg

 4,583

 4,786

 4,329

 144,585

 220,161

 202,141

oz

PGM recycling1

kg

 6,287

 6,848

 4,497

 896

 1,267

 1,388

US$/2Eoz

Average basket price

R/2Eoz

 20,362

 18,232

 12,592

 49.1

 103.8

 123.4

US$m

Adjusted EBITDA3

Rm

 1,810.0

 1,493.3

 690.2

 21

 25

 27

%

Adjusted EBITDA margin3

%

 27

 25

 21

 769

 720

 791

US$/2Eoz

All-in sustaining cost4

R/2Eoz

 11,603

 10,365

 10,789

 

 

 

 

SOUTHERN AFRICA (SA) OPERATIONS

 

 

 

 

 

 

 

 

PGM operations5

 

 

 

 

 305,227

 364,483

 518,623

oz

4E PGM2 production

kg

 16,131

 11,337

 9,494

 1,000

 1,218

 1,385

US$/4Eoz

Average basket price

R/4Eoz

 20,316

 17,533

 14,049

 49.5

 82.1

 199.7

US$m

Adjusted EBITDA3

Rm

 2,930.3

 1,180.9

 695.5

 18

 26

 25

%

Adjusted EBITDA margin3

%

 25

 26

 18

 771

 987

 1,104

US$/4Eoz

All-in sustaining cost4

R/4Eoz

 16,190

 14,204

 10,834

 

 

 

 

Gold operations5

 

 

 

 

 308,922

 201,456

 287,330

oz

Gold production

kg

 8,937

 6,266

 9,609

 1,205

 1,307

 1,451

US$/oz

Average gold price

R/kg

 684,172

 604,542

 544,542

 17.3

 (89.9)

 57.4

US$m

Adjusted EBITDA3

Rm

 842.6

 (1,293.5)

 243.1

 5

 (38)

 14

%

Adjusted EBITDA margin3

%

 14

 (38)

 5

 1,290

 1,803

 1,386

US$/oz

All-in sustaining cost4

R/kg

 653,666

 834,216

 582,809

 

 

 

 

GROUP

 

 

 

 

 115.9

 87.7

 377.4

US$m

Adjusted EBITDA6

Rm

 5,536.1

 1,261.5

 1,628.8

 14.05

 14.39

 14.67

R/US$

Average exchange rate

 

 

 

 

  1. The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated to SA 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 (including attributable production from Mimosa) is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au).  The US operations primarily produce palladium and platinum, 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. 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 other measures of financial performance and liquidity
  4. See “salient features and cost benchmarks for the quarters” for the definition of All-in sustaining cost
  5. The SA PGM operations’ results for the quarter ended 30 June 2019 included the Marikana operation for the one month since acquisition and the SA gold operations’ results for the quarter ended 30 September 2018 included DRDGOLD Limited for the two months since acquisition
  6. The Group adjusted EBITDA includes the impact of the streaming transaction which are only recognised at the Corporate level

 

 

 

 

Stock data for the six months ended 30 September 2019

JSE Limited - (SGL)

Number of shares in issue

 

Price range per ordinary share

R15.60 to R21.59

- at 30 September 2019

 2,670,029,252

Average daily volume

18,415,258

- weighted average

 2,670,029,252

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

Free Float

81%

Price range per ADR

US$4.45 to US$5.65

Bloomberg/Reuters

SGLS/SGLJ.J

Average daily volume

4,082,745

 

 

OVERVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2019 COMPARED TO QUARTER ENDED 30 SEPTEMBER 2018

The Group operating performance for the quarter ended 30 September 2019 (Q3 2019) signals a pleasing recovery in the operating and financial performance of the Group, after a difficult eighteen-month period. Most pleasing has been the way our SA gold operations have re-established and improved on what was an industry leading safety record prior to H1 2018, despite the additional challenges posed by the five-month strike, which ended in April 2019. Also encouraging is the strong operating performance from our SA PGM operations, which has been sustained, even as the integration of the Marikana operation has continued. Despite some setbacks, the recovery plans at our SA gold and US PGM operations have also advanced, with all the operations benefitting from higher precious metals prices and recording significantly improved financial results.

With precious metals prices rising further into Q4 2019 and further enhancement of our safe production delivery, the outlook for the remainder of the year remains positive. Should this momentum continue as expected, the Group will be on track to achieve its leverage target of 1x net debt: adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) and potentially resume dividend payments in the latter half of 2020.

Safe PRODUCTION

Q3 2019 marked the fourth consecutive fatality free quarter for the SA gold operations. On 18 October 2019, these operations achieved eight million fatality free shifts (on 29 October it had 430 consecutive days without fatalities), an achievement which is historically unparalleled in the deep level South African gold mining industry. We continue to promote meaningful engagement with all of our stakeholders, as part of the safety improvement journey and in the development of the required safety culture.  On 25 October 2019, the SA gold operations have been recognised as the ‘Best underground safety performer’ and awarded the JT Ryan Award at the SAMI Safety and health excellence awards.

Sadly, two fatal incidents at the recently acquired Marikana operation tarnished a fatality free quarter at all other areas of our business. On 28 August 2019, Mr. S. Bhani, a load haul dump (LHD) operator at Hossy shaft, tragically lost his life when he was caught between the LHD door and the cabin frame while disembarking from the LHD without turning it off. On 16 September 2019, Mr. Z. Booi, a Team Leader at the Saffy shaft, was caught between a derailing hopper and the sidewall during cleaning operations. Utilising the Incident Cause Analysis Method (ICAM) process, investigations into these incidents were conducted and action plans were devised to address and prevent any re-occurrence. The Board and management extend heartfelt condolences to the family and friends of our deceased colleagues.

Positively, the Kroondal operation has achieved 19 months without any fatalities, recording 3.5 million fatality free shifts as at the end of September 2019.

There was also a notable improvement in the safety performance of the US PGM operations for the quarter. A year-to-date total reportable injury frequency rate (TRIFR) of 13.1 (measured per million hours) was significantly better than for the comparable period in 2018 (15.5). The US PGM operations remain focussed on delivering further safety improvements by year-end.

ADJUSTED EBITDA AND GEARING

Group adjusted EBITDA of R5.5 billion (US$377 million) for Q3 2019, represents a 240% increase (up 226% in US dollar terms) from the R1.6 billion (US$116 million) adjusted EBITDA generated in Q3 2018. The SA PGM operations contributed 53% of the total Group adjusted EBITDA, the US PGM operations 32% and the SA gold operations made a positive 15% contribution.

The strong Q3 2019 financial performance has accelerated our deleveraging, with  net debt: adjusted EBITDA of 1.7x at 30 September 2019 (as calculated in terms of the debt facilities) significantly improved relative to net debt: adjusted EBITDA of 2.5x recorded at 30 June 2019, and remaining well below the 2019 covenant ceiling of 3.5x. Should current spot precious metals prices persist during Q4 2019, the Group will be on track to surpass the year-end leverage target of 1.8x.

As announced on 25 October 2019, the Rand Revolving credit facility (RCF), which was due to mature in November 2019, has been successfully refinanced on similar terms, improving liquidity and resolving any near-term financing risk. The new Rand RCF which is due in 2022, has an initial facility value of R5.5 billion, but includes a R2 billion accordion option, which allows for an option to upsize to R7.5 billion and to extend the tenor through two further one-year extensions in the future.

OPERATING REVIEW

US PGM operations

Mined 2E PGM production from the US PGM operations increased by 6% to 147,353 2Eoz compared to 139,178 2Eoz in Q3 2018.

The challenging geotechnical conditions experienced in H1 2019, continued to restrict stope access and negatively impact productivity during the quarter. The adoption of special ground control measures temporarily impaired advance rates and resulted in reduced stope flexibility. Concentrated development activities on the ramp system in the Blitz project area also resulted in diesel particulate matter (DPM) emissions beyond the capabilities of installed ventilation in certain development areas, which further impacted output. Under these circumstances, it is critical to operate with every step being taken to safely maintain the production ramp up at the Stillwater mine.

Both the ground control and DPM issues have been appropriately addressed. East Boulder is performing steadily with the Fill the Mill (FTM) project on track to deliver the scheduled production build up. Although these operational challenges have affected production for 2019, the impact is expected to be temporary, with the long-term trajectory of the Blitz production ramp up unchanged.

The average 2E PGM basket price for the quarter increased by 55% to US$1,388/oz compared with the same period in 2018, which, in addition to higher volumes, resulted in adjusted EBITDA (including recycling) increasing from US$49 million in Q3 2018 to US$123 million in Q3 2019 (a 151% increase or 162% increase in rand terms to R1.8 billion).

Whilst total operating costs and capital expenditures in absolute terms were in line with expectations, unit costs remained elevated due to relative under delivery of production during the period. AISC is further affected by increased tax and revenue royalties resulting from higher PGM prices, with AISC increasing by approximately US$5/2Eoz for every US$100/2Eoz increase in the 2E PGM basket price.  AISC increased by 3% year-on-year from US$769/oz for Q3 2018  to US$794/oz for Q3 2019.

 

The Columbus metallurgical complex performed solidly, processing 158,383 of 2Eoz of mined material and 202,141 3Eoz of recycle material during the quarter, a 20% increase compared to Q3 2018.

 

The recycling operation fed an average of 25.3 tonnes of material per day (tpd) in Q3 2019, a 38% increase compared to Q3 2018, further drawing down excess inventory which had accumulated during 2018.

 

Capital expenditure for the quarter amounted to US$60 million, including expansion capital at Blitz and FTM. US$24 million was incurred on sustaining capital and ore reserve development.

 

SA PGM operations

The SA PGM operations (including a full quarter contribution from the Marikana operation) delivered consistently pleasing operating results. The 70% increase in PGM production to 518,623 4Eoz primarily reflects the consolidation of the Marikana operation for the full quarter and a further 3% production increase from the Kroondal operation, partly offset by lower production from the Rustenburg, Mimosa and Platinum mile operations.

The significant gearing of the SA PGM operations is evident in the 321% increase in adjusted EBITDA, which increased from R696 million in Q3 2018 to R2.9 billion in Q3 2019, primarily driven by a 45% increase in the average 4E PGM basket price to R20,316/4Eoz. Furthermore, attributable adjusted EBITDA from Mimosa of approximately US$12 million (R171 million) compared favourably with the US$8 million (R111 million) for Q3 2018 and is not included in Group adjusted EBITDA as it is equity accounted.

Average AISC for the SA PGM operations of R16,190/oz (US$1,104/oz) for Q3 2019 are not directly comparable with the same period in 2018, due to the inclusion of the Marikana operations for a full quarter and the transition from a purchase of concentrate (PoC) to a toll processing agreement at the Rustenburg operation, as well as the consequential lower than planned production delivery . The planned realisation of synergies and cost savings at the Marikana operations is expected to result in reduced AISC for the SA PGM operations from H1 2020.

Chrome production (excluding the Marikana operation) was 243,000 tonnes (155,000 tonnes at Rustenburg and 88,000 tonnes at Kroondal) a 19% improvement from Q3 2018, however volumes sold for the quarter were lower than for Q3 2018 by 8.5%, due to the timing of sales, which together with a lower average chrome price of US$147/tonne for Q3 2019 (US$169/tonne for Q3 2018), negatively impacted on by-product credits. In addition, the Reflux Classifier was scheduled to deliver 10,000 tonnes chrome per month from June 2019, unfortunately the commissioning was delayed until November 2019. The team is focussing on achieving the planned efficiency by end Q4 2019. The Marikana operation produced 460,218 tonnes of chrome during Q3 2019.

 

The integration of the Marikana operation is proceeding as planned. Following a three-month review of the operations, stakeholders were notified on 25 September 2019 that consultation in terms of Section 189A (Section 189) of the Labour Relations Act, 66 of 1995 (LRA and associated services) (S189) would commence. While the review process concluded that the affected shafts, most of which were at the end of their operating lives were at risk, other shafts which had previously been at risk, such as 4B shaft, K3 mining into Siphumelele ground, Rowland mining into MK2 ground as well as K4 concentrator, will continue to operate, thereby reducing initially (12,500  as communicated by Lonmin before) anticipated job losses. Overall, the outcome will be a more sustainable business which will enhance the security of employment for the majority of the Marikana workforce for a much longer period. The six-month moratorium on forced retrenchments imposed by the Competition Commission Appeal Court will lapse on 7 December 2019.

The Section 189 is only one component of the integration process which enables consolidation synergies to be unlocked. Further updates on the progress of the integration as well as the 2020 plans are scheduled to be shared as part of the 2019 year end results, scheduled to be released on 19 February 2020.

SA PGM wage negotiations

Wage negotiations for the Rustenburg and Marikana operations are continuing according to due process. A dispute was declared by the organised labour and was referred to the Commission for Conciliation, Mediation and Arbitration (CCMA). To date, two sessions for both Rustenburg and Marikana have been facilitated by the CCMA commissioner. The Company continues to engage constructively with organised labour in an attempt to conclude a fair and sustainable wage agreement.

SA gold operations

The build-up to full production (adjusted for the impact of the closure of Beatrix 1, Driefontein 2, 6 and 7 shafts post the Section 189 process which was concluded in June 2019) at the SA gold operations, following the conclusion of the five-month AMCU strike in April 2019, has proceeded at a measured pace. Production has largely normalised, although an underground fire at Kloof 4 shaft, most likely related to illegal mining activities, and elevated levels of seismic activity following the resumption of safe production, has resulted in the temporary unavailability of some high grade panels (a few panels are permanently unavailable) and continued to constrain the Kloof operation. The Beatrix operation has recovered well, with production only 8% below that achieved for Q3 2018 and AISC of R552,679/kg (US$1,172/oz) in line with expectations. Quarter on quarter, gold production (excluding DRDGOLD) increased by 1,408kg (45,268oz) to 7,444kg (239,329oz).

Ongoing stabilisation of the operations during the quarter, coupled with a 26% increase in the average realised rand gold price to R683,500/kg (a 20% increase in US$/oz price at US$1,449/oz) for Q3 2019, has resulted in a significant turnaround in the financial results of the SA gold operations.

Production from DRDGOLD of 1,493kg (48,001oz) was approximately 6% higher than for the Q2 2019 and close to double what was consolidated in Q3 2018. AISC of R509,868/kg (US$1,081/oz) was 2% lower than for Q2 2019 and 10% lower than for Q3 2018 primarily due to the increase in production. The adjusted EBITDA contribution from DRDGOLD increased by 113% quarter-on-quarter, from R153 million for Q2 2019 to R326 million for Q3 2019.

Adjusted EBITDA from the SA gold operations (including DRDGOLD) for Q3 2019 increased by 247% to R843 million (US$57 million) compared to R243 million (US$17 million) for Q3 2018 and a R1.3 billion adjusted EBITDA loss for Q2 2019. These operations are significantly geared to the spot rand gold price and this financial recovery will be further enhanced if current spot rand gold price levels persist and as the operations continue to stabilise.

CORPORATE ACTION

Internal restructuring process, creating a new holding company and listings for the Group

On 4 October 2019, the Group announced an internal restructuring which is proposed to create a more efficient corporate structure and to facilitate the Group’s growth strategy. In order to create a corporate structure whereby the gold and PGM portfolios are each held within their own distinct legal entities, a new Group holding company, Sibanye Stillwater Limited, will be listed, with the same shareholders and the same shares in Sibanye Stillwater Limited being issued to existing Sibanye Gold Limited shareholders. This will be done by way of a scheme of arrangement (“Scheme”) in terms of section 114 of the South African Companies Act, 2008. The Scheme will therefore result in Sibanye Gold Limited, which houses the SA gold operations, becoming a subsidiary of Sibanye Stillwater Limited. The Scheme will require shareholder approval and is expected to be completed in Q1 2020. More information is available at https://www.sibanyestillwater.com/news-investors/news/holding-entity-change/.

Delaware Court of Chancery rules in favour of Sibanye-Stillwater in dissenting shareholder action

The Court of Chancery of the State of Delaware in the United States of America (the Court), in a Memorandum Opinion dated 21 August 2019, has ruled in favour of the Company in the appraisal action brought by a group of minority shareholders (the Dissenting shareholders) of the Stillwater Mining Company (Stillwater), following the acquisition of Stillwater by the Company in May 2017 for a cash consideration of US$18 per Stillwater share.

In terms of the ruling, the Dissenting shareholders (together owning approximately 4.5% of Stillwater shares outstanding at the time) received the same US$18 per share consideration originally offered to, and accepted by other Stillwater shareholders, plus interest. The remaining payment of approximately US$21 million due to the Dissenting shareholders has been paid by Sibanye-Stillwater.

Certain of the Dissenting shareholders have filed a notice of appeal in the Supreme Court of the State of Delaware. The Company will continue to defend itself against opportunistic, short-term and self-interested legal action, to protect the interests of our stakeholders.

OUTLOOK

 

Due to the challenging ground conditions at Blitz and the fall of grounds stoppages experienced year–to-date, mined production for 2019 from the US PGM operations is forecast between 590,000 – 610,000 2Eoz. As a result of this reduced mined output forecast, coupled with higher taxes and royalties associated with the noted increase in the US$ 2E PGM basket price, AISC is forecast to be between approximately US$755  – US$770/2Eoz. Capital expenditure is expected to be at the low end of the previous guidance range of US$235 million to US$245 million.

PGM production guidance from the SA PGM operations (excluding the Marikana operation) remains unchanged between 1,000,000oz to 1,100,000oz and AISC within annual cost guidance of between R12,500/4Eoz and R13,200/4Eoz. (US$922/4Eoz and US$974/4Eoz). Capital expenditure is forecast at R1,400 million (US$103 million). Marikana is expected to produce between 450,000 and 490,000 4E ounces for the seven months since acquisition, with an AISC range between R18,700/4Eoz and R20,056/4Eoz (US$1,380/4Eoz and US$1,480/4Eoz). Capital expenditure is forecast at R1,108million (US$82 million).

Due to operational constraints at the Driefontein and Kloof operations following the production build-up, production for H2 2019 from the SA gold operations (excluding DRDGOLD) is expected to be towards the lower end of guidance of 16,000kg (514,411oz) with AISC at the higher end of guidance of R630,000/kg (US$1450/oz) for H2 2019. Annual production for 2019 is likewise, forecast at the lower end of guidance of 24,000kg (771,617oz). AISC for the full year is forecast at the upper end of guidance of R750,000/kg (US$1,725/oz). Capital expenditure for the SA gold operations for 2019 is forecast to be slightly lower than the guided R2,350 million (US$173 million), which includes approximately R220 million (US$16 million) of project capital. Approximately R1,900 million (US$140 million) of this capital expenditure has been scheduled for H2 2019.

The H2 2019 and annual dollar guidance is based on an average exchange rate of R13.55/US$.

 

Neal Froneman

Chief Executive Officer

 

SALIENT FEATURES AND COST BENCHMARKS FOR THE QUARTERS ENDED 30 SEPTEMBER 2019, 30 JUNE 2019  AND 30 SEPTEMBER 2018

SA and US PGM operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US OPERATIONS

SA OPERATIONS

 

 

 

Total SA and US PGM operations

Total US PGM
Stillwater

Total SA PGM

Rustenburg

Marikana2

Kroondal

Plat Mile

Mimosa

Attributable

 

Under - ground1

Total

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Attributable

Surface

Attributable

Production

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes milled/treated

000't

Sep 2019

 9,936

 345

 9,591

 5,402

 4,189

 1,848

 1,161

 2,227

 925

 1,032

 2,103

 295

 

 

Jun 2019

 8,052

 353

 7,699

 4,068

 3,631

 1,782

 1,074

 780

 302

 1,141

 2,255

 365

 

 

Sep 2018

 7,094

 326

 6,768

 3,288

 3,479

 1,936

 1,593

 -

 -

 1,001

 1,887

 351

Plant head grade

g/t

Sep 2019

 2.71

 14.54

 2.28

 3.34

 0.92

 3.47

 1.24

 3.60

 0.90

 2.46

 0.75

 3.59

 

 

Jun 2019

 2.65

 14.81

 2.10

 3.19

 0.87

 3.39

 1.18

 3.61

 0.87

 2.47

 0.72

 3.59

 

 

Sep 2018

 2.59

 14.55

 2.01

 3.22

 0.87

 3.57

 1.10

 -

 -

 2.45

 0.68

 3.54

Plant recoveries

%

Sep 2019

 76.93

 91.10

 73.77

 83.04

 29.79

 81.04

 29.01

 85.91

 24.50

 82.91

 8.22

 75.37

 

 

Jun 2019

 75.56

 91.03

 70.12

 82.44

 20.23

 82.15

 28.41

 87.10

 25.60

 81.46

 13.12

 74.98

 

 

Sep 2018

 75.30

 89.21

 69.59

 83.18

 22.18

 84.53

 29.77

 -

 -

 82.41

 11.78

 77.19

Yield

g/t

Sep 2019

 2.08

 13.25

 1.68

 2.77

 0.27

 2.81

 0.36

 3.09

 0.22

 2.04

 0.06

 2.71

 

 

Jun 2019

 2.00

 13.56

 1.47

 2.63

 0.18

 2.79

 0.33

 3.14

 0.22

 2.02

 0.09

 2.69

 

 

Sep 2018

 1.95

 13.28

 1.40

 2.68

 0.19

 3.01

 0.33

 -

 -

 2.02

 0.08

 2.73

PGM production3

4Eoz - 2Eoz

Sep 2019

 665,976

 147,353

 518,623

 481,715

 36,908

 166,882

 13,387

 221,635

 19,375

 67,600

 4,146

 25,598

 

 

Jun 2019

 518,357

 153,874

 364,483

 343,936

 20,547

 159,624

 11,543

 78,817

 2,140

 73,958

 6,864

 31,537

 

 

Sep 2018

 444,405

 139,178

 305,227

 283,564

 21,662

 187,663

 16,811

 -

 -

 65,047

 4,851

 30,855

PGM sold

4Eoz - 2Eoz

Sep 2019

 684,771

 140,201

 544,570

 529,538

 15,032

 156,974

 10,886

 279,366

 67,600

 4,146

 25,598

 

 

Jun 2019

 416,811

 143,668

 273,143

 257,329

 15,814

 85,371

 8,950

 66,463

 73,958

 6,864

 31,537

 

 

Sep 2018

 412,800

 107,573

 305,227

 283,564

 21,662

 187,663

 16,811

 -

 65,047

 4,851

 30,855

Price and costs4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average PGM basket price5

R/4Eoz - R/2Eoz

Sep 2019

 20,314

 20,362

 20,316

 20,405

 17,314

 20,337

 17,016

 20,287

 21,053

 18,098

 19,326

 

 

Jun 2019

 17,754

 18,232

 17,533

 17,653

 15,697

 17,382

 14,877

 17,955

 17,918

 16,371

 16,943

 

 

Sep 2018

 13,559

 12,592

 14,049

 14,110

 13,333

 13,994

 13,167

 -

 14,446

 13,907

 13,532

 

US$/4Eoz - US$/2Eoz

Sep 2019

 1,385

 1,388

 1,385

 1,391

 1,180

 1,386

 1,160

 1,383

 1,435

 1,234

 1,317

 

 

Jun 2019

 1,234

 1,267

 1,218

 1,227

 1,091

 1,208

 1,034

 1,264

 1,245

 1,138

 1,177

 

 

Sep 2018

 971

 896

 1,000

 1,004

 949

 996

 937

 -

 1,028

 990

 963

Operating cost6

R/t

Sep 2019

 937

 4,381

 809

 1,395

 94

 1,321

290

 1,250

 721

 27

 1,075

 

 

Jun 2019

 814

 3,952

 663

 1,161

 80

 1,322

 217

 1,381

 633

 25

 973

 

 

Sep 2018

 662

 3,799

 503

 1,008

 76

 1,172

 138

 -

 693

 23

 924

 

US$/t

Sep 2019

 64

 299

 55

 95

 6

 90

 20

 85

 49

 2

 73

 

 

Jun 2019

 57

 275

 46

 81

 6

 92

 15

 97

 44

 2

 68

 

 

Sep 2018

 47

 270

 36

 72

 5

 83

 10

 -

 49

 2

 66

 

R/4Eoz - R/2Eoz

Sep 2019

 14,101

 10,258

 15,249

 15,619

 10,675

 14,632

 25,188

 16,342

 11,003

 13,700

 12,384

 

 

Jun 2019

 12,853

 9,067

 14,603

 13,757

 14,099

 14,756

 20,202

 18,462

 9,765

 8,231

 11,257

 

 

Sep 2018

 10,798

 8,914

 11,753

 11,720

 12,141

 12,086

 13,110

 -

 10,665

 8,782

 10,514

 

US$/4Eoz - US$/2Eoz

Sep 2019

 961

 699

 1,039

 1,065

 728

 997

 1,717

 1,114

 750

 934

 844

 

 

Jun 2019

 893

 630

 1,015

 956

 980

 1,025

 1,404

 1,300

 679

 572

 782

 

 

Sep 2018

 768

 634

 836

 834

 864

 860

 933

 -

 759

 625

 748

All-in sustaining cost7

R/4Eoz - R/2Eoz

Sep 2019

 15,134

 11,603

 16,190

 

 

 15,844

 17,955

 10,877

 15,195

 13,267

 

 

Jun 2019

 12,990

 10,365

 14,204

 

 

 15,091

 16,930

 9,715

 8,275

 11,773

 

 

Sep 2018

 10,819

 10,789

 10,834

 

 

 11,114

 -

 10,131

 8,472

 9,559

 

US$/4Eoz - US$/2Eoz

Sep 2019

 1,032

 791

 1,104

 

 

 1,080

 1,224

 741

 1,036

904

 

 

Jun 2019

 903

 720

 987

 

 

 1,049

 1,192

 675

 575

818

 

 

Sep 2018

 770

 769

 771

 

 

 791

 -

 721

 603

 680

All-in cost7

R/4Eoz - R/2Eoz

Sep 2019

 15,963

 15,195

 16,192

 

 

 15,844

 17,957

 10,877

 15,412

 13,267

 

 

Jun 2019

 14,092

 13,842

 14,208

 

 

 15,091

 16,939

 9,715

 8,392

 11,773

 

 

Sep 2018

 11,751

 13,428

 10,901

 

 

 11,114

 -

 10,131

 12,245

 9,559

 

US$/4Eoz - US$/2Eoz

Sep 2019

 1,088

 1,036

 1,104

 

 

 1,080

 1,224

 741

 1,051

 904

 

 

Jun 2019

 979

 962

 987

 

 

 1,049

 1,193

 675

 583

 818

 

 

Sep 2018

 836

 956

 776

 

 

 791

 -

 721

 871

 680

Capital expenditure8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ore reserve development

Rm

Sep 2019

 677.4

 235.1

 442.3

 

 

 135.9

 306.4

 -

 -

 -

 

 

Jun 2019

 404.0

 273.8

 130.2

 

 

 130.2

 -

 -

 -

 -

 

 

Sep 2018

 384.7

 253.3

 131.4

 

 

 131.4

 -

 -

 -

 -

Sustaining capital

 

Sep 2019

 537.4

 116.0

 421.4

 

 

 91.9

 269.9

 57.0

 2.6

 72.9

 

 

Jun 2019

 289.1

 37.2

 251.9

 

 

 100.8

 95.4

 51.3

 4.4

 93.1

 

 

Sep 2018

 186.9

 85.3

 101.6

 

 

 68.4

 -

 31.9

 1.3

 49.2

Corporate and projects8

 

Sep 2019

 531.6

 530.5

 1.1

 

 

 -

 0.2

 -

 0.9

 -

 

 

Jun 2019

 536.6

 535.1

 1.5

 

 

 -

 0.7

 -

 0.8

 -

 

 

Sep 2018

 385.6

 367.3

 18.3

 

 

 -

 -

 -

 18.3

 -

Total capital expenditure

Rm

Sep 2019

 1,746.3

 881.6

 864.7

 

 

 227.8

 576.5

 57.0

 3.4

 72.9

 

 

Jun 2019

 1,229.6

 846.0

 383.6

 

 

 231.0

 96.1

 51.3

 5.2

 93.1

 

 

Sep 2018

 957.2

 705.9

 251.3

 

 

 199.7

 -

 31.9

 19.7

 49.2

 

US$m

Sep 2019

 119.0

 60.1

 58.9

 

 

 15.5

 39.3

 3.9

 0.2

 5.0

 

 

Jun 2019

 85.5

 58.8

 26.7

 

 

 16.1

 6.7

 3.6

 0.4

 6.5

 

 

Sep 2018

 68.1

 50.2

 17.9

 

 

 14.2

 -

 2.3

 1.4

 3.5

Average exchange rates for the quarters ended 30 September 2019, 30 June 2019 and 30 September 2018 were R14.67/US$, R14.39/US$ and R14.05/US$, respectively

Figures may not add as they are rounded independently

  1. The US PGM operations’ underground production is converted to metric tonnes, and performance is translated into SA rand. In addition to the US PGM operations’ underground production, the operation treats various recycling material which is excluded from the statistics shown above and is detailed in the PGM recycling table below
  2. The Marikana PGM operations’ results for the quarter ended 30 June 2019 are for one month since acquisition. The results for the quarter ended 30 September 2019 includes purchase of concentrate ounces
  3. Production per product – see prill split in the table below
  4. The Group and total SA PGM operations’ unit cost benchmarks and capital exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales
  5. The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment
  6. Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the tonnes milled/treated in the same period, and operating cost per ounce (and kilogram) is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the PGM produced in the same period
  7. All-in cost exclude income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in cost are made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in costs calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total 4E/2E PGM produced in the same period

The US operations All-in-cost, excluding the corporate project expenditure (on the Altar and Marathon projects), for the quarters ended 30 September 2019, 30 June 2019 and 30 September 2018 was US$1,036/2Eoz, US$962/2Eoz and US$951/2Eoz, respectively

  1. The US operations corporate expenditure for the quarters ended 30 September 2019, 30 June 2019 and 30 September 2018 was R0.8 million (US$0.1 million), R2.2 million (US$0.2 million) and R8.9 million (US$0.6 million), respectively, which related to the Altar and Marathon projects

Mining – Prill split excuding recycling operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROUP

SA OPERATIONS

US OPERATIONS

 

Sep 2019

Jun 2019

Sep 2018

Sep 2019

Jun 2019

Sep 2018

Sep 2019

Jun 2019

Sep 2018

 

 

%

 

%

 

%

 

%

 

%

 

%

 

%

 

%

 

%

Platinum

 340,943

51%

 248,480

48%

 209,594

47%

 307,777

59%

 213,849

58%

177,728

58%

 33,166

23%

 34,631

23%

 31,866

23%

Palladium

 270,059

41%

 230,976

45%

 201,936

45%

 155,872

30%

 111,733

31%

94,624

31%

 114,187

77%

 119,243

77%

 107,312

77%

Rhodium

 46,079

7%

 31,847

6%

 25,828

6%

 46,079

9%

 31,847

9%

25,828

9%

 

 

 

 

 

 

Gold

 8,895

1%

 7,054

1%

 7,047

2%

 8,895

2%

 7,054

2%

7,047

2%

 

 

 

 

 

 

PGM production 4E/2E

 665,976

100%

 518,357

100%

 444,405

100%

 518,623

100%

 364,483

100%

 305,227

100%

 147,353

100%

 153,874

100%

 139,178

100%

Ruthenium

 74,264

 

 50,811

 

 41,001

 

 74,264

 

 50,811

 

41,001

 

 

 

 

 

 

 

Iridium

 18,731

 

 12,287

 

 9,470

 

 18,731

 

 12,287

 

9,470

 

 

 

 

 

 

 

Total 6E/2E

 758,971

 

 581,455

 

 494,876

 

 611,618

 

 427,581

 

 355,698

 

 147,353

 

 153,874

 

 139,178

 

Recycling operation

 

 

 

 

 

 

Unit

Sep 2019

Jun 2019

Sep 2018

Average catalyst fed/day

Tonne

 25.3

 27.0

 18.4

Total processed

Tonne

 2,327

 2,457

 1,696

Tolled

Tonne

 354

 576

 188

Purchased

Tonne

 1,973

 1,881

 1,508

PGM fed

3Eoz

 202,141

 220,161

 144,585

PGM sold

3Eoz

 178,685

 172,020

 126,744

PGM tolled returned

3Eoz

 49,317

 32,584

 40,475

 

 

 

SA gold operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA OPERATIONS

 

 

 

 

Total SA gold1

Driefontein

Kloof

Beatrix

Cooke

DRDGOLD

 

Total

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Surface

Production

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes milled/treated

000't

Sep 2019

 10,907

 1,446

 9,461

 376

 -

 485

 1,286

 558

 72

 27

 948

 7,155

 

 

Jun 2019

 10,514

 834

 9,680

 136

 -

 314

 1,625

 362

 273

 22

 1,021

 6,761

 

 

Sep 2018

 8,515

 1,534

 6,981

 402

 180

 471

 1,437

 629

 94

 32

 1,121

 4,149

Yield

g/t

Sep 2019

 0.82

 4.65

 0.23

 5.51

 -

 5.33

 0.29

 3.69

 0.57

 0.44

 0.32

 0.21

 

 

Jun 2019

 0.60

 4.69

 0.24

 4.40

 -

 6.95

 0.34

 3.10

 0.29

 0.45

 0.29

 0.21

 

 

Sep 2018

 1.13

 5.05

 0.27

 5.38

 0.61

 7.09

 0.42

 3.53

 0.34

 0.94

 0.31

 0.18

Gold produced

kg

Sep 2019

 8,937

 6,730

 2,207

 2,072

 -

 2,587

 373

 2,059

 41

 12

 300

 1,493

 

 

Jun 2019

 6,266

 3,913

 2,353

 599

 -

 2,182

 558

 1,122

 80

 10

 300

 1,415

 

 

Sep 2018

 9,609

 7,752

 1,857

 2,162

 110

 3,338

 607

 2,222

 32

 30

 351

 757

 

oz

Sep 2019

 287,330

 216,374

 70,956

 66,616

 -

 83,174

 11,992

 66,198

 1,318

 386

 9,645

 48,001

 

 

Jun 2019

 201,456

 125,806

 75,650

 19,258

 -

 70,153

 17,940

 36,073

 2,572

 322

 9,645

 45,493

 

 

Sep 2018

 308,922

 249,233

 59,689

 69,510

 3,537

 107,319

 19,515

 71,439

 1,029

 965

 11,285

 24,323

Gold sold

kg

Sep 2019

 8,510

 6,295

 2,215

 1,856

 -

 2,485

 412

 1,943

 35

 11

 258

 1,510

 

 

Jun 2019

 5,702

 3,380

 2,322

 419

 -

 2,023

 527

 929

 111

 9

 275

 1,409

 

 

Sep 2018

 9,585

 7,752

 1,833

 2,162

 110

 3,338

 607

 2,222

 32

 30

 351

 733

 

oz

Sep 2019

 273,604

 202,390

 71,214

 59,672

 -

 79,895

 13,246

 62,469

 1,125

 354

 8,295

 48,548

 

 

Jun 2019

 183,322

 108,669

 74,653

 13,471

 -

 65,041

 16,943

 29,868

 3,569

 289

 8,841

 45,300

 

 

Sep 2018

 308,176

 249,233

 58,943

 69,510

 3,537

 107,319

 19,515

 71,439

 1,029

 965

 11,285

 23,577

Price and costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold price received

R/kg

Sep 2019

 684,172

 

 

651,940

663,583

660,971

683,643

 697,483

 

 

Jun 2019

 604,542

 

 

582,100

598,706

596,635

601,408

604,400

 

 

Sep 2018

 544,542

 

 

550,528

545,856

543,301

549,606

553,003

 

US$/oz

Sep 2019

 1,451

 

 

1,382

1,407

1,401

1,449

 1,479

 

 

Jun 2019

 1,307

 

 

1,258

1,294

1,290

1,300

 1,306

 

 

Sep 2018

 1,205

 

 

1,218

1,208

1,202

1,216

 1,224

Operating cost2

R/t

Sep 2019

 463

 2,686

 123

 3,499

 -

 3,221

 216

 1,793

 131

 200

 165

 101

 

 

Jun 2019

 449

 4,188

 127

 8,482

 -

 4,553

 191

 2,495

 211

 291

 140

 106

 

 

Sep 2018

 561

 2,515

 132

 3,585

 326

 2,963

 209

 1,622

 109

 47

 144

 94

 

US$/t

Sep 2019

 32

 183

 8

 239

 -

 220

 15

 122

 9

 14

 11

 7

 

 

Jun 2019

 31

 291

 9

 589

 -

 316

 13

 173

 15

 20

 10

 7

 

 

Sep 2018

 40

 179

 9

 255

 23

 211

 15

 115

 8

 3

 10

 7

 

R/kg

Sep 2019

 564,709

 577,043

 527,096

 634,990

 -

 603,788

 746,113

 485,867

 229,268

 450,000

 522,333

483,255

 

 

Jun 2019

 753,734

 892,563

 522,864

 1,925,876

 -

 655,133

 555,735

 804,902

 721,250

 640,000

 476,667

505,583

 

 

Sep 2018

 497,425

 497,730

 496,153

 666,559

 533,636

 418,065

 495,222

 459,136

 318,750

 53,333

 458,689

 516,651

 

US$/oz

Sep 2019

 1,197

 1,223

 1,118

 1,346

 -

 1,280

 1,582

 1,030

 486

 954

 1,107

 1,025

 

 

Jun 2019

 1,629

 1,929

 1,130

 4,163

 -

 1,416

 1,201

 1,740

 1,559

 1,383

 1,030

 1,093

 

 

Sep 2018

 1,101

 1,102

 1,098

 1,475

 1,181

 925

 1,096

 1,016

 705

 118

 1,015

 1,144

All-in sustaining cost3

R/kg

Sep 2019

 653,666

 

 

777,532

726,096

552,679

565,056

 509,868

 

 

Jun 2019

 834,216

 

 

2,743,914

702,392

894,135

533,803

 520,156

 

 

Sep 2018

 582,809

 

 

785,871

509,303

528,882

484,777

 564,161

 

US$/oz

Sep 2019

 1,386

 

 

1,649

1,539

1,172

1,198

 1,081

 

 

Jun 2019

 1,803

 

 

5,931

1,518

1,933

1,154

 1,124

 

 

Sep 2018

 1,290

 

 

1,739

1,127

1,171

1,073

 1,249

All-in cost3

R/kg

Sep 2019

 671,293

 

 

777,532

738,971

552,932

565,056

 517,285

 

 

Jun 2019

 856,436

 

 

2,743,914

713,569

894,423

533,803

 531,867

 

 

Sep 2018

 609,794

 

 

785,915

516,755

528,882

484,777

 720,775

 

US$/oz

Sep 2019

 1,423

 

 

1,649

1,567

1,172

1,198

 1,097

 

 

Jun 2019

 1,851

 

 

5,931

1,542

1,933

1,154

 1,150

 

 

Sep 2018

 1,350

 

 

1,739

1,144

1,171

1,073

 1,596

Capital expenditure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ore reserve development

Rm

Sep 2019

 560.3

 

 

216.8

251.1

92.4

 -

 -

 

 

Jun 2019

 245.1

 

 

80.0

123.5

41.6

 -

 -

 

 

Sep 2018

 591.3

 

 

232.3

242.6

116.4

 -

 -

Sustaining capital

 

Sep 2019

 143.1

 

 

65.3

55.8

16.5

 -

 5.5

 

 

Jun 2019

 42.7

 

 

12.0

13.2

10.4

 -

 7.1

 

 

Sep 2018

 143.3

 

 

47.4

64.8

26.6

 -

 4.5

Corporate and projects4

 

Sep 2019

 75.7

 

 

 -

37.3

0.5

 -

 11.2

 

 

Jun 2019

 61.3

 

 

 -

28.5

0.3

 -

 16.5

 

 

Sep 2018

 144.3

 

 

0.1

29.4

 -

 -

 114.8

Total capital expenditure

Rm

Sep 2019

 779.0

 

 

282.0

344.1

109.5

 -

 16.7

 

 

Jun 2019

 349.1

 

 

92.0

165.2

52.3

 -

 23.6

 

 

Sep 2018

 879.0

 

 

279.8

336.9

143.0

 -

 119.3

 

US$m

Sep 2019

 53.1

 

 

19.2

23.5

7.5

 -

 1.1

 

 

Jun 2019

 24.3

 

 

6.4

11.5

3.6

 -

 1.6

 

 

Sep 2018

 62.6

 

 

19.9

24.0

10.2

 -

 8.5

Average exchange rates for the quarters ended 30 September 2019, 30 June 2019 and 30 September 2018 were R14.67/US, R14.39/US$ and R14.05/US$, respectively

Figures may not add as they are rounded independently

  1. The SA gold operations’ results for the quarter ended 30 September  2018 included DRDGOLD Limited for the two months since acquisition
  2. Operating cost is the average cost of production and operating cost per tonne is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the tonnes milled/treated in the same period, and operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the gold produced in the same period
  3. 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. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in costs calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) is calculated by dividing the All-in sustaining cost and All-in cos, respectively, in a period by the total gold sold over the same period
  4. Corporate project expenditure for the quarters ended 30 September  2019, 30 June 2019 and 30 September 2018 was R26.7 (US$1.8 million), R15.9 million (US$1.1 million) and R31.2 million (US$2.2 million), respectively. The majority of this expenditure was on the Burnstone project

DEVELOPMENT RESULTS

Development values represent the actual results of sampling and no allowance has been made for any adjustments which may be necessary when estimating ore reserves. All figures below exclude shaft sinking metres, which are reported separately where appropriate.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US PGM operations

Sep 2019 quarter

 

Jun 2019 quarter

Nine months ended 30 Sep 2019

 

Reef

 

 

 

 

Stillwater incl Blitz

East Boulder

 

 

 

 

Stillwater incl Blitz

East Boulder

 

 

 

 

Stillwater incl Blitz

East Boulder

Stillwater

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary development (off reef)

(m)

 

 

 

 

 2,316

 1,151

 

 

 

 

 3,866

 962

 

 

 

 

 8,449

 2,956

Secondary development

(m)

 

 

 

 

 2,330

 761

 

 

 

 

 1,938

 786

 

 

 

 

 7,041

 2,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA PGM operations

Sep 2019 quarter

 

Jun 2019 quarter

Nine months ended 30 Sep 2019

 

Reef

 

 

Batho-pele

Thembe-lani

Khuse-leka

Siphume-lele

 

 

Batho-pele

Thembe-lani

Khuse-leka

Siphume-lele

 

 

Batho-pele

Thembe-lani

Khuse-leka

Siphume-lele

Rustenburg

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced

(m)

 

 

 444

 2,160

 3,148

 1,218

 

 

 455

 1,525

 2,840

 1,156

 

 

 1,144

 5,085

 8,342

 3,224

Advanced on reef

(m)

 

 

 444

 813

 1,096

 647

 

 

 455

 613

 897

 582

 

 

 1,144

 1,858

 2,744

 1,684

Height

(cm)

 

 

 211

 288

 282

 281

 

 

 221

 296

 288

 272

 

 

 217

 289

 286

 280

Average value

(g/t)

 

 

 2.6

 2.4

 2.3

 3.0

 

 

 2.1

 2.4

 2.3

 3.1

 

 

 2.3

 2.4

 2.3

 3.1

 

(cm.g/t)

 

 

 548

 684

 645

 846

 

 

 473

 709

 654

 838

 

 

 495

 693

 664

 852

 

Sep 2019 quarter

 

Jun 2019 quarter

Nine months ended 30 Sep 2019 1

 

Reef

K3

Rowl-and

Saffy

E3

4B

Hossy, E1 & W1

K3

Rowl-and

Saffy

E3

4B

Hossy, E1 & W1

K3

Row-land

Saffy

E3

4B

Hossy, E1 & W1

Marikana

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary development

(m)

 9,806

 6,875

 5,992

 801

 1,550

 120

 3,057

 2,573

 2,006

 211

 450

 3

 12,863

 9,448

 7,998

 1,012

 2,000

 124

Primary development - on reef

(m)

 7,463

 5,476

 4,042

 393

 918

 120

 2,379

 2,050

 1,429

 85

 304

 3

 9,842

 7,526

 5,472

 478

 1,222

 124

Height

(cm)

 217

 218

 221

 237

 217

 230

 218

 214

 219

 241

 211

 220

 217

 217

 220

 238

 216

 229

Average value

(g/t)

 2.8

 2.5

 2.7

 2.7

 2.5

 2.4

 2.8

 2.8

 2.6

 2.6

 2.4

 3.0

 2.8

 2.6

 2.7

 2.6

 2.5

 2.4

 

(cm.g/t)

603

 552

 590

 627

 550

 545

611

 604

 577

 625

 511

 656

 606

 567

 587

 626

 541

 549

 

Sep 2019 quarter

 

Jun 2019 quarter

Nine months ended 30 Sep 2019

 

Reef

 

Kopa-neng

Simunye

Bamba-nani

Kwezi

K6

 

Kopa-neng

Simunye

Bamba-nani

Kwezi

K6

 

Kopa-neng

Simunye

Bamba-nani

Kwezi

K6

Kroondal

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced

(m)

 

 838

 437

 798

 825

 523

 

 633

 404

 589

 725

 584

 

 2,027

 1,227

 1,907

 2,284

 1,684

Advanced on reef

(m)

 

 635

 358

 692

 640

 495

 

 466

 326

 385

 491

 577

 

 1,657

 1,053

 1,560

 1,685

 1,650

Height

(cm)

 

 245

 223

 218

 239

 238

 

 239

 220

 217

 237

 240

 

 241

 221

 215

 239

 239

Average value

(g/t)

 

 1.7

 1.5

 2.3

 2.1

 2.3

 

 1.6

 1.7

 1.8

 1.9

 2.4

 

 1.8

 1.9

 2.2

 2.0

 2.4

 

(cm.g/t)

 

 427

 323

 489

 495

 554

 

 388

 368

 390

 443

 576

 

 428

 417

 479

 474

 572

                                       

 

  1. The year-to-date development results for the Marikana operations include the four months since acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA gold operations

Sep 2019 quarter

 

Jun 2019 quarter

Nine months ended 30 Sep 2019

 

Reef

 

 

Black          Reef

Carbon
leader

Main

VCR

 

 

Black          Reef

Carbon
leader

Main

VCR

 

 

Black          Reef

Carbon
leader

Main

VCR

Driefontein

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced

(m)

 

 

 

 1,095

 212

 900

 

 

 

 97

 123

 262

 

 

 

 1,192

 342

 1,226

Advanced on reef

(m)

 

 

 

 242

 93

 105

 

 

 

 5

 60

 11

 

 

 

 247

 160

 116

Channel width

(cm)

 

 

 

 59

 44

 51

 

 

 

 45

 37

 33

 

 

 

 59

 43

 49

Average value

(g/t)

 

 

 

 14.5

 12.7

 22.2

 

 

 

 48.6

 16.5

 203.3

 

 

 

 15.0

 13.5

 33.3

 

(cm.g/t)

 

 

 

 853

 563

 1,120

 

 

 

 2,185

 609

 6,734

 

 

 

 880

 586

 1,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sep 2019 quarter

 

Jun 2019 quarter

Nine months ended 30 Sep 2019

 

Reef

 

Cobble

Kloof

Main

Libanon

VCR

 

Cobble

Kloof

Main

Libanon

VCR

 

Cobble

Kloof

Main

Libanon

VCR

Kloof

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced

(m)

 

 64

 1,230

 614

 13

 1,257

 

 

 749

 444

 

 581

 

 64

 2,555

 1,323

 13

 2,074

Advanced on reef

(m)

 

 

 355

 146

 13

 181

 

 

 341

 133

 

 126

 

 

 1,026

 384

 13

 392

Channel width

(cm)

 

 

 165

 70

 183

 151

 

 

 167

 117

 

 118

 

 

 161

 98

 183

 126

Average value

(g/t)

 

 

 9.6

 15.5

 3.0

 0.2

 

 

 7.4

 12.3

 

 3.5

 

 

 8.5

 13.3

 3.0

 3.9

 

(cm.g/t)

 

 

 1,576

 1,082

 548

 30

 

 

 1,225

 1,445

 

 416

 

 

 1,375

 1,304

 548

 490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sep 2019 quarter

 

Jun 2019 quarter

Nine months ended 30 Sep 2019

 

Reef

 

 

 

 

Beatrix

Kalkoenkrans

 

 

 

 

Beatrix

Kalkoenkrans

 

 

 

 

Beatrix

Kalkoenkrans

Beatrix

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced

(m)

 

 

 

 

 3,505

 166

 

 

 

 

 1,715

 19

 

 

 

 

 5,755

 185

Advanced on reef

(m)

 

 

 

 

 1,098

 90

 

 

 

 

 708

 8

 

 

 

 

 2,226

 98

Channel width

(cm)

 

 

 

 

 161

 69

 

 

 

 

 121

 83

 

 

 

 

 142

 70

Average value

(g/t)

 

 

 

 

 7.7

 14.4

 

 

 

 

 8.3

 11.2

 

 

 

 

 8.3

 14.1

 

(cm.g/t)

 

 

 

 

 1,245

 997

 

 

 

 

 1,002

 933

 

 

 

 

 1,181

 992

                                       

 

 

 

 

ADMINISTRATION AND CORPORATE INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 (Chairman)

 

 

1

1

1

1

1

1

1

1

Independent non-executive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIBANYE GOLD LIMITED

Trading as SIBANYE-STILLWATER

Incorporated in the Republic of South Africa

Registration number 2002/031431/06

Share code: SGL

Issuer code: SGL

ISIN: ZAE E000173951

 

LISTINGS

JSE: SGL

NYSE: SBGL

 

WEBSITE

www.sibanyestillwater.com

 

REGISTERED OFFICE

Constantia Office Park

Cnr 14th Avenue & Hendrik Potgieter Road

Bridgeview House, Ground Floor

Weltevreden Park 1709

South Africa

 

Private Bag X5

Westonaria 1780

South Africa

Tel: +27 11 278 9600

Fax: +27 11 278 9863

 

INVESTOR ENQUIRIES

James Wellsted

Senior Vice President: Investor Relations

Cell: +27 83 453 4014

Tel: +27 10 493 6923

Email:

[email protected] or [email protected]

 

CORPORATE SECRETARY

Lerato Matlosa

Tel: +27 10 493 6921

Email: [email protected]

DIRECTORS

Dr. Vincent Maphai1 (Chairman)

Neal Froneman (CEO)

Charl Keyter (CFO)

Timothy Cumming1

Savannah Danson1

Barry Davison1

Harry Kenyon-Slaney1

Richard Menell1

Nkosemntu Nika1

Keith Rayner1

Susan van der Merwe1

Jerry Vilakazi1

1 Independent non-executive

 

JSE SPONSOR

JP Morgan Equities South Africa Proprietary Limited

Registration number 1995/011815/07

1 Fricker Road

Illovo

Johannesburg 2196

South Africa

 

Private Bag X9936

Sandton 2196

South Africa

 

OFFICE OF THE UNITED KINGDOM SECRETARIES LONDON

St James’s Corporate Services Limited

107 Cheapside

Suite 31, Second Floor

London EC2V 6DN

United Kingdom

Tel: +44 20 7796 8644

Fax: +44 20 7796 8645

 

AUDITORS

Ernst & Young Inc. (EY)

102 Rivonia Road

Sandton

2146

South Africa

Tel: +27 11 772 3000

AMERICAN DEPOSITORY

RECEIPTS TRANSFER AGENT

BNY Mellon Shareowner Services

PO Box 358516

Pittsburgh

PA15252-8516

US toll-free: +1 888 269 2377

Tel: +1 201 680 6825

Email:

[email protected]

 

Tatyana Vesselovskaya

Relationship Manager

BNY Mellon

Depositary Receipts

Direct Line: +1 212 815 2867

Mobile: +1 203 609 5159

Fax: +1 212 571 3050

Email:

[email protected]

 

TRANSFER SECRETARIES

SOUTH AFRICA

Computershare Investor Services Proprietary Limited

Rosebank Towers

15 Biermann Avenue

Rosebank 2196

 

PO Box 61051

Marshalltown 2107

South Africa

Tel: +27 11 370 5000

Fax: +27 11 688 5248

 

TRANSFER SECRETARIES

UNITED KINGDOM

Capita Asset Services

The Registry

34 Beckenham Road

Beckenham

Kent BR3 4TU

England

Tel: 0871 664 0300 (calls cost 10p a minute plus network extras, lines are open 8.30am – 5pm Mon-Fri) or +44 20 8639 3399 (from overseas)

Fax: +44 20 8658 3430

Email:

[email protected]

SAFE HARBOUR

Where relevant, these actions are subject to the appropriate consultations and approvals.

Certain statements included in this announcement about Sibanye Gold Limited (“SGL”) and Sibanye Stillwater Limited (“Sibanye-Stillwater”), as well as oral statements that may be made by SGL, Sibanye-Stillwater, or by officers, directors or employees acting on their behalf related to the subject matter hereof, may constitute or are based on forward-looking statements, including “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are not based on historical facts, and are generally preceded by, followed by or include the words “target”, “would”, “potential”, “aim”, “foresee”, “may”, “will”, “should”, “expect”, “envisage”, “intend”, “plan”, “project”, “estimate”, “anticipate”, “believe”, “hope”, “can”, “is designed to” or similar phrases. These forward-looking statements, including, among others, those relating to future business prospects, revenues and income, statements which relate to expected timings of the Scheme and potential Scheme benefits, PGM pricing expectations, levels of output, supply and demand, information relating to the Group’s underground Blitz Project adjacent to the east of the existing Stillwater Mine designed to explore, define and extract the PGM resource along the far eastern extent of the J-M Reef, and estimations or expectations of enterprise value, adjusted EBITDA and net asset values wherever they may occur in this announcement, are necessarily estimates reflecting the best judgement of senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in this announcement.

By their nature, these forward-looking statements about SGL and/or Sibanye-Stillwater involve a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond the control of SGL and/or Sibanye-Stillwater, that could cause SGL and/or Sibanye-Stillwater’s actual results and outcomes to be materially different from historical results or from any future results expressed or implied by such forward-looking statements.

Moreover, new risk factors emerge from time to time and it is not possible for SGL and/or Sibanye-Stillwater to predict all such risk factors. SGL and Sibanye-Stillwater cannot assess the impact of all risk factors on their businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results.

IMPORTANT INFORMATION

This announcement is for informational purposes only and does not constitute or form part of an offer to sell or the solicitation of an offer to buy or subscribe to any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This announcement is not an offer of securities for sale into the United States. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933 (the “Securities Act”), or an exemption therefrom.

In connection with the Scheme, Sibanye-Stillwater has filed a registration statement on Form F-4, which includes important information with respect to the Scheme. The final registration statement on Form F-4 will be made available to the relevant security holders of SGL.

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.

SHAREHOLDERS IN THE UNITED STATES AND ADS HOLDERS OF SGL ARE URGED TO READ THE US REGISTRATION STATEMENT REGARDING THE PROPOSED SCHEME CAREFULLY AND IN ITS ENTIRETY, INCLUDING THE EXHIBITS THERETO AND ANY DOCUMENTS PREVIOUSLY FILED WITH THE SEC AND INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THESE DOCUMENTS CONTAIN IMPORTANT INFORMATION ABOUT SGL, SIBANYE-STILLWATER AND THE PROPOSED SCHEME.

Shareholders and ADS holders can obtain free copies of the registration statement on Form F-4, as well as other filings containing information about SGL and Sibanye-Stillwater, without charge, at the SEC’s website at www.sec.gov. Shareholders and ADS holders may also be able to obtain these documents, without charge, from SGL’s website at www.sibanyestillwater.com.

This announcement does not constitute an offer or a solicitation in any jurisdiction in which such offer or solicitation is unlawful. An offer will not be made in, nor will deposits be accepted in, any jurisdiction in which the making or acceptance thereof would not be in compliance with the laws of such jurisdiction. However, if an offer is made, Sibanye-Stillwater may, in its sole discretion, take such action as it may deem necessary to extend an offer in any such jurisdiction.

 

In Europe:

Swiss Resource Capital AG

Jochen Staiger

[email protected]

www.resource-capital.ch

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Swiss Resource Capital AG will use the information you provide in this form to keep in touch with you and to provide you with updates and marketing information. To receive our news, you still have to give us permission to send you E-Mails below.

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