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Sibanye Stillwater: Operating Update for the Quarter Ended 30 September 2018

Johannesburg, 1 November 2018: Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater or the Group) (JSE: SGL & NYSE: SBGL) is pleased to present an operating update for the quarter ended 30 September 2018. Financial results are only provided on a six-monthly basis.

SALIENT FEATURES FOR THE QUARTER ENDED 30 SEPTEMBER 2018

  • Solid operational performance from SA and US PGM operations maintained

collectively contributing 85% of Group adjusted EBITDA¹ during the quarter

  • Financial position improved by the US$500 million Streaming transaction

allowing for a 28% reduction in outstanding bonds (nominal value)

majority of debt only repayable after 2021/22 when Blitz is fully ramped up

  • H1 2018 safety and operational disruptions continue to impact SA gold operations
  • Safety achievement by South African operations of 2.7 million fatality free shifts as at end October 2018
  • Ongoing strategic delivery despite operational disruptions
         

US dollar

     

SA rand

Quarter ended

     

Quarter ended

Sep 2017

Jun 2018

Sep 2018

 

KEY STATISTICS

 

Sep 2018

Jun 2018

Sep 2017

    

SOUTHERN AFRICA (SA) REGION

    
    

PGM operations

    

 306,184

 282,972

 305,227

oz

4E PGM2 production

kg

 9,494

 8,801

 9,523

 953

 1,028

 1,000

US$/4Eoz

Average basket price

R/4Eoz

 14,049

 13,013

 12,551

 40.6

 46.9

 49.5

US$m

Adjusted EBITDA1

Rm

695.5

593.6

534.8

 15

 16

 18

%

Adjusted EBITDA margin1

%

 18

 16

 15

 777

 792

 771

US$/4Eoz

All-in sustaining cost3

R/4Eoz

 10,834

 10,025

 10,229

    

Gold operations4

    

 372,176

 306,974

 308,922

oz

Gold production

kg

 9,609

 9,548

 11,576

 1,280

 1,307

 1,205

US$/oz

Average gold price

R/kg

 544,542

 531,640

 542,407

 104.5

 50.0

17.3

US$m

Adjusted EBITDA1

Rm

 243.1

 632.9

 1,377.2

 22

 12

 5

%

Adjusted EBITDA margin1

%

 5

12

22

 1,150

 1,295

 1,290

US$/oz

All-in sustaining cost3

R/kg

 582,809

 526,833

 487,068

    

UNITED STATES (US) REGION

    
    

PGM operations5

    

 135,585

 145,410

 139,178

oz

2E PGM2 production

kg

 4,329

 4,523

 4,217

 197,300

 168,842

 144,585

oz

PGM recycling5

kg

 4,497

 5,252

 6,137

 914

 966

 896

US$/2Eoz

Average basket price

R/2Eoz

 12,592

 12,225

 12,047

 59.8

 74.7

 49.1

US$m

Adjusted EBITDA1

Rm

690.2

945.0

 788.3

 23

 25

 21

%

Adjusted EBITDA margin1

%

 21

 25

 23

 695

 674

 769

US$/2Eoz

All-in sustaining cost3

R/2Eoz

 10,789

 8,526

 9,162

    

GROUP

    

 204.9

 171.6

 115.9

US$m

Adjusted EBITDA1

Rm

 1,628.8

 2,171.5

 2,700.3

13.18

12.65

14.05

R/US$

Average exchange rate

    
  • 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. For a reconciliation of profit/loss before royalties and tax to adjusted EBITDA, see note 10 on page 89 of the 2017 Group Annual Financial Statements available at www.sibanyestillwater.com/investors/financial-reporting/annual-reports/2017. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
  • The Platinum Group Metals (PGM) production in the SA region is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US region is principally platinum and palladium, referred to as 2E (2PGM).
  • See “salient features and cost benchmarks for the quarter ended” on page 6 and 7 for the definition of All-in sustaining cos
  • The gold operations’ results for the quarter ended 30 September 2018 include DRDGOLD Limited for two months since acquisition.
  • 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.
     

Stock data for the quarter ended 30 September 2018

JSE Limited - (SGL)

Number of shares in issue

 

Price range per ordinary share

R7.08 to R9.85

- at 30 Sept 2018

2,265,879,337

Average daily volume

6,975,462

 

- weighted average

2,265,879,337

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

Free Float

78%

Price range per ADR

US$2.05 to US$2.65

Bloomberg/Reuters

SGLS/SGLJ.J

Average daily volume

3,527,691

 

 

OVERVIEW AND UPDATE FOR THE QUARTER ENDED 30 SEPTEMBER 2018

The Group safety performance improved significantly during the third quarter ended September 2018 (Q3 2018), due to ongoing interventions and safety improvement plans, gaining traction at all our operations. These initiatives were supported by continuing tripartite cooperation and input from key stakeholders, arising from the successful, multi-stakeholder Safety Summits that began in May 2018.

The focus on safe production remains the highest priority across the Group, We are pleased to report that the South African (SA) operations achieved over 2.7 million fatality free shifts as at end October 2018.

The SA and United States (US) Platinum Group Metal (PGM) operations maintained solid production results during the quarter, with adjusted EBITDA from the SA PGM operations (excluding Mimosa), 30% higher than for the comparable period in 2017. Adjusted EBITDA and All-in Sustaining Cost (AISC) from the US PGM operations for the quarter, were negatively affected by a deferral of sales for the entire September month until early October. This followed a request from a third party precious metals refiner, to defer deliveries of September production, whilst it undertook a stock take at its US refinery operations.

The significant operational challenges experienced at the SA gold operations during H1 2018 and the additional safety improvement interventions undertaken, continued to affect productivity across the gold operations in Q3 2018, with Driefontein in particular, delivering at substantially reduced production rates. As a result, adjusted EBITDA from the SA gold operations for Q3 2018, was substantially lower than for the comparable period in 2017, with AISC significantly elevated. In light of the underperformance at the SA Gold operations, guidance for the year ended 31 December 2018, has been revised, as detailed in the outlook section below.

Whilst there was a significant improvement in spot precious metal prices towards the end of the Q3 2018, the average price environment for the quarter was lackluster. Precious metal commodity prices in July and August 2018 remained below the quarter averages, which in turn, were only marginally higher than for the comparable period in 2017.

As a result of the reduced contribution from the SA gold operations during the period and the deferral of September sales into October 2018 at the US PGM operations, Group adjusted EBITDA declined by 40% to R1,629 million (US$116 million) relative to Q3 2017. The Group PGM operations contribution to Group adjusted EBITDA increased to 85% from 49% in Q3 2017.

The more positive precious metals and commodity price environment in September 2018, has been sustained into Q4 2018, as general market confidence in the outlook for precious metals and commodities overall, has improved. Together with the rand regressing to seemingly sustained weaker levels, the outlook for the remainder of the year appears to be more positive.

Safe PRODUCTION

The focus on safe production across our operations continues, with ongoing campaigns to heighten safety awareness and a longer term safety strategy being implemented.

Our intensified focus on safe production since the two tragic safety related incidents in Q2 2018 in the SA region, has yielded positive results. In particular, promoting site specific decisions in alignment with our CARES values by emphasising the importance of the right our employees to withdraw from conditions they feel might not be safe, as well as reinforcing the role of the health and safety representative, has resulted in greater attention being focused by employees on the safe production readiness of our operations and on the application of safe operating practices. The Safety Summit process has also been effective in enlisting deeper cooperation, and clarifying the role of the unions, in collaborative support of safety improvement. The SA gold operations realised substantial improvements in all safety performance rates from H1 2018, with the SA PGM operations also maintaining an improving safety trend, and, injury rates at the US PGM operations tracking to historical levels.

Securing formal accreditation under ISO45001 as the successor to OHSAS18001 for our safety management system has commenced as the basis of a more rigorous application of world class safety requirements, and we also intend to obtain formal assurance under the ICMM code, which we have been honouring in support of our commitment to responsible mining, as the basis for becoming an ICMM member.

Invitations have been issued to eminent global mining safety professionals and academics to become members of our Global Safe Production Advisory Panel that will provide forward looking perspectives towards leading safe production practice. This is complemented by a request seeking to formulate a “Virtual centre of excellence” on the application of multi-disciplinary research to which constructive responses have been received from many of the leading global mining universities and research institutes.

Positively though, since the last fatal accident on 25 August 2018, Sibanye-Stillwater achieved a significant milestone of 2 million fatality free shifts across the SA region in mid-October 2018, rising to 2.7 million fatality free shifts by the end of October. We will continue with our efforts to ensure a safe working environment for employees.

OPERATING REVIEW

SA Region

SA PGM operations

Attributable 4E PGM production from the SA PGM operations (including Mimosa) of 305,227oz for Q3 2018 was flat relative to Q3 2017 (306,184oz). Kroondal had another record performance, with production increasing by 6% relative to the previous year. Rustenburg’s underground production was in line with the prior year but surface production was 1,736oz lower than in Q3 2017, mainly due to a lower feed grade of material treated and test work done in preparation for 2019 toll refining of underground ore.

Underground operating costs for the SA PGM operations (excluding Mimosa) increased by 6% to R11,720/4Eoz (US$834/4Eoz), reflecting the above inflation increases in wages and electricity costs, as well as higher winter power tariffs.

Chrome production of 204,277 tonnes (125,992 tonnes at Rustenburg and 78,285 tonnes at Kroondal) was similar to levels produced in Q2 2018, volumes sold for the quarter were lower than for Q 2 2018 however, due to timing of sales, which together with a lower average chrome price of US$169/tonne for Q3 2018 (S$196/tonne for Q2 2018), impacted on by-product credits. AISC (which includes sustaining capital expenditure and royalties, net of by-product credits, per 4E ounce of PGM produced) for the SA PGM operations was consequently 5% higher than for Q3 2017 at R10,834/4Eoz (US$771/4Eoz), but within guidance for the 2018 year.

The SA PGM operations (excluding Mimosa) reported a 30% increase in adjusted EBITDA to R696 million (US$50 million) for Q3 2018, and contributed 43% of the Group adjusted EBITDA. Attributable adjusted EBITDA from Mimosa, of approximately R111 million (US$8 million) is not included in Group adjusted EBITDA, as it is equity accounted separately.

SA gold operations

As announced on 1 August 2018, all conditions precedent to the DRDGOLD Limited (DRDGOLD) transaction were met and the transaction was implemented on 31 July 2018. Sibanye-Stillwater consolidated DRDGOLD in its operating and financial results from 1 August 2018 and the current operating results and adjusted EBITDA includes 100% of DRDGOLD.

Total gold production from the SA gold operations for Q3 2018 of 9,609kg (308,922oz), includes 757kg (24,323oz) or two months of production from DRDGOLD.

Like-for-like production from the SA gold operations, excluding DRDGOLD, declined 24% to 8,852kg (284,600oz) for Q3 2018 quarter compared to Q3 2017, reflecting the continuing trauma on the organisation from the tragic safety incidents in H1 2018, the ongoing rehabilitation of seismically affected production areas and the suspension of underground mining at the Cooke operations in late 2017.

Lower production output resulted in unit operating cost for the SA gold operations (excluding DRDGOLD) increasing by 20% to R495,798/kg (US$1,097/oz). AISC was 20% higher than for Q3 2017 and increased at Driefontein, Kloof and Beatrix by 50%, 21% and 6% respectively due to lower production, in part due to the continuing effects of the H1 2018 safety incidents.

Adjusted EBITDA (excluding DRDGOLD) for Q3 2018 quarter of R239 million (US$17 million) was 83% lower than for the comparable period in 2017. The SA gold operations contributed 15% to the Group adjusted EBITDA during the quarter.

Rehabilitation of the footwall access on the western side of Masakhane continues and is on track to begin building up production from the end of Q4 2018 with completion expected in Q1 2019. The ongoing effects and the trauma caused by the H1 safety incidents have been more severe than anticipated resulting in 2018 annual guidance being revised accordingly.

US Region

US PGM operations

Underground 2E PGM production of 139,178oz for Q3 2018, was 3% higher than for the comparable period in 2017. Early Q3 mine production shortfalls at the Stillwater Mine were recovered at the end of the quarter. Production rates for Q4 2018 are anticipated to be higher due to a second stope block at Blitz coming on-line.

AISC of US$769/2Eoz was higher year-on-year, largely due to higher maintenance costs and planned outages at the metallurgical complex, as well as the temporary deferral of by-product sales due to the September month stock take at the third party refinery. With the ramp-up of the second stope block at Blitz in Q4 2018, AISC for the last quarter is anticipated to be substantially lower. The expected sale additional month’s production (four months in Q4 2018), is likely to benefit adjusted EBITDA, with additional by-product credits consequently benefiting AISC.

Due to the ongoing rebuild and expansion of the second furnace (EF2), recycling throughput has been temporarily reduced at the Columbus Metallurgical Complex. In total, 271,329oz 2E ounces were processed (mined: 126,744 2Eoz and recycled: 144,585 3Eoz) for the quarter, compared to 339,000oz (mined: 141,700 2Eoz and recycled: 197,300 3Eoz) for Q3 2017.

The recycling throughput was 18.4 tonnes of feed material per day for the quarter, compared with 23.0 tonnes per day for Q3 2017. Processing volumes are expected to normalise once EF2 is brought back online in Q4 2018.

The average 2E PGM basket price in Q3 2018 was US$896/2Eoz, 2% lower than the realized basket price of US$914/2Eoz for Q3 2017. The US PGM operations contributed US$49 million (R690 million) or 42% to Group adjusted EBITDA during the quarter, at an average adjusted EBITDA margin of 21%. This was based on selling only two months production.

The spot 2E PGM basket price is currently over US$1,020/2Eoz, or 14% higher than the average realised price for Q3 2018.

CORPORATE ACTION

Stream financing

On 16 July 2018, Sibanye-Stillwater announced the completion of a gold and palladium stream agreement with Wheaton Precious Metals International Limited (Wheaton International), in terms of which Sibanye-Stillwater has received US$500 million from Wheaton International in exchange for an agreed percentage of planned gold and palladium production from its US PGM operations (comprised of the East Boulder and Stillwater mining operations).

US$395 million of the proceeds were utilised during the quarter to repurchase approximately US$145 million (cash settlement value including accrued interest) of the 6.125% Notes due 27 June 2022 and approximately US$200 million (cash settlement value including accrued interest) of the 7.125% Notes due 27 June 2025, issued by Stillwater Mining Company and approximately US$50 million (cash settlement values including accrued interest) of Sibanye Gold Limited’s 1.875% Convertible Bonds, due 26 September 2023. The repurchase resulted in a 28% reduction of outstanding bond nominal values and will result in an approximate US$25 million reduction in annual coupon costs for the Group. The balance of the proceeds were applied towards short term debt repayments. The repayment profile of the Group is well structured with 67% of gross debt maturing only after 2021/22 when it is expected that production from Blitz would reach steady state. Further detail on the stream is available at: www.sibanyestillwater.com/investors/events/streaming-transaction.

The proposed Lonmin acquisition

On 18 September 2018, the South African Competition Commission (the Commission) recommended to the South African Competition Tribunal (Tribunal), that the proposed acquisition of Lonmin Plc be approved by the Tribunal, subject to certain conditions, which are agreeable to both Sibanye-Stillwater and the Commission. The Tribunal is the regulatory body which provides final approval for large mergers in South Africa.

The Tribunal hearing which was initially scheduled for 18 and 19 October 2018 was rescheduled for the week of the 12th of November 2018, a ruling on the proposed merger by the Tribunal is anticipated before the end of November 2018. Fulfilment of other conditions precedent, including the approvals of Lonmin and Sibanye-Stillwater shareholders and the courts of England and Wales, is now unlikely to be before the end of 2018 and closure of the proposed transaction is likely to occur in January 2019. Further information on the transaction is available at www.sibanyestillwater.com/investors/transactions/Lonmin.

DRDGOLD

On 1 August 2018, the DRDGOLD transaction was concluded. Sibanye-Stillwater now owns 38.05% (265,000,000 DRDGOLD ordinary shares) of the issued share capital of DRDGOLD. In addition, pursuant to the transaction, Sibanye-Stillwater has an option to subscribe for the Option Shares within 24 months from the date of implementation of the transaction to further attain up to a 50.1% shareholding in DRDGOLD at a 10% discount to the 30 day volume weighted average traded price of a DRDGOLD share on the day prior to the date of exercise of the option. Further information on the transaction is available at www.sibanyestillwater.com/investors/transactions/drdgold.

Altar

On 29 June 2018, Sibanye-Stillwater announced it had entered into an agreement with Regulus Resources Inc. (Regulus) and a newly formed subsidiary of Regulus, Aldebaran Resources Inc. (Aldebaran), to create a strategic partnership to unlock value at the Altar copper-gold project located in Argentina. The partnership unlocks immediate value from this greenfields exploration project to Sibanye-Stillwater, while enabling the experienced Aldebaran team to explore the upside potential of the Altar project by providing it with the exploration focus they bring.

The consideration to Sibanye-Stillwater, for Aldebaran’s option to acquire up to an 80% interest in the Altar Project, comprises:

  • An upfront cash payment of US$15 million and a shareholding of 19.9% in Aldebaran to Sibanye-Stillwater
  • A commitment from Aldebaran to carry the next US$30 million of spend at the Altar Project over a maximum of five years, as an initial earn-in of a 60% interest in the Altar Project (the Initial Earn-in)
  • Aldebaran may also elect to earn into an additional 20% interest in the Altar Project by spending an additional US$25 million over a three-year period following the Initial Earn-in.

Sibanye-Stillwater has received the upfront proceeds (US$15 million), while retaining a direct interest in the project of either 40% or 20% (should Aldebaran exercise its additional earn in option) as well as an indirect exposure through its 19.9% shareholding in Aldebaran. Together with the upfront US$15 million received, Aldebaran has issued an aggregate of 15,449,555 Aldebaran shares (19.9% holding) to Sibanye-Stillwater, of the current 77,635,957 issued and outstanding Aldebaran Shares, all in accordance with the JV Agreement. The Aldebaran Shares are expected to begin trading on the TSX Venture Exchange under the ticker symbol "ALDE" in early November 2018.

The transaction successfully closed on 25 October 2018. For more information on this transaction, refer to www.sibanyestillwater.com/investors/transactions/altar.

Purported class action

Two purported class action lawsuits have been filed against Sibanye Gold Limited (Sibanye-Stillwater), Neal Froneman (the Group CEO) and Charl Keyter (the Group CFO) in the United States District Court for the Eastern District of New York, alleging violations of the US securities laws. The first lawsuit, Case No. 18-cv-03721, was filed on 27 June 2018 by Kevin Brandel, individually and on behalf of all other persons who purchased Sibanye securities between 7 April 2017 and 26 June 2018, inclusive (the “Class Period”). The second lawsuit, Case No. 18-cv-03902, was filed on 6 July 2018 by Lester Heuschen, Jr., also individually and on behalf of members of the Class Period (collectively, the “Class Actions”). The Class Actions allege that certain statements by Sibanye-Stillwater in its annual reports filed with the US Securities and Exchange Commission were false and/or misleading. Specifically, the Class Actions allege that Sibanye made false and/or misleading statements about its safety practices and record and thereby violated the US securities laws. The Class Actions seek an unspecified amount of damages.

As the cases are in the early stages, it is not possible to determine the likelihood of success on the merits or to quantify any potential liability from the Class Actions nor estimate the duration of the litigation. Sibanye-Stillwater intends to defend the cases vigorously. 

South African Mining Charter

The revised South African Mining Charter was published towards the end of September 2018 with significant amendments from the consultation draft published in June 2018. While the implementation guidelines scheduled for development by November 2018 are necessary to provide clarity on certain issues and fully understand the implications for Sibanye-Stillwater’s mining rights, recognition of the continuing consequences of historical empowerment transactions for the duration of existing mining rights provides improved investment certainty. The Minerals Council will continue to engage on behalf of its members with the Department of Mineral Resources to resolve the issues that remain outstanding.

Gold wage negotiations

The gold wage negotiations in South Africa have progressed to an advanced stage with all the other gold companies in the bargaining unit having concluded various agreements. Sibanye-Stillwater continues to engage the unions in an attempt to reach an affordable yet fair agreement, which does not further compromise the sustainability of its operations. While strike action remains a possibility we will continue to strive to avoid this outcome, but are well prepared to deal with a strike should one transpire.

OUTLOOK

Production rates at our SA and US PGM operations should be sustained in Q4 2018, with the US PGM operations likely to benefit from the sale of deferred September production in October and a partial unwind of inventories.

Precious metal prices have been noticeably higher in October 2018, following relatively depressed average prices in Q3 2018, with the palladium price in particular reflecting the sustained deficit and limited availability of stock. The rand remains volatile, but given the deterioration in the outlook for the South African economy, appears to have established a new base above R14.00/US$, which is significantly weaker than the beginning of the year and will benefit the SA gold and PGM operations.

The SA PGM operations are expected to produce in line with previously guided forecast of 4E PGM production of between 1.1 Moz and 1.15Moz (including Mimosa), with AISC expected to be at the lower end of the guidance of between R10,750/4Eoz and R11,250/4Eoz (US$825/4Eoz and US$860/4Eoz). Capital expenditure is expected to be R1,000 million (US$77m), R200 million (US$15m) lower than previously guided. Cost and capital guidance exclude Mimosa.

The tragic safety incidents in H1 2018, have had a significant and continuing effect on production at the SA gold operations, compounded by losses in areas affected by seismicity and currently subject to rehabilitation. As a result, operational guidance for the SA gold operations in 2018 has been revised and excludes DRDGOLD. Production for the year ending 31 December 2018 is now forecast at between 35,000kg and 36,000kg (1.13Moz and 1.16Moz), with AISC between R550,000/kg and R565,000/kg (US$1,311/oz and US$1,347/oz). Capital expenditure is forecast at approximately R3,000 million (US$230 million).

The dollar costs used in the guidance are based on an average exchange rate of R13.05/US$ for the 2018 year.

2E PGM production guidance from the US PGM operations for the year ending 31 December 2018 is unchanged at between 580,000oz and 610,000oz with AISC guidance between US$640/2Eoz and US$680/2Eoz. Capital expenditure is expected to be up to US$222 million.

Neal Froneman

Chief Executive Officer

 

SALIENT FEATURES AND COST BENCHMARKS FOR THE QUARTER ENDED 30 SEPTEMBER 2018, 30 JUNE 2018 AND 30 SEPTEMBER 2017

SA and US PGM operations

             
 

GROUP

SA REGION

US REGION

   

Total SA and US

Total SA PGM

Kroondal

Mimosa

Plat Mile

Rustenburg

Total US PGM
Stillwater

Attributable

PGM operations

Total

Under-
ground

Surface

Attributable

Attributable

Surface

Under-
ground

Surface

Under- ground1

Production

            

Tonnes milled/treated

000't

Sep 2018

 7,094

 6,768

 3,288

 3,479

 1,001

 351

 1,887

 1,936

 1,593

 326

  

Jun 2018

 6,958

 6,632

 3,057

 3,575

 961

 361

 2,070

 1,735

 1,505

 326

  

Sep 2017

 7,223

 6,914

 3,209

 3,705

 978

 359

 2,202

 1,872

 1,503

 309

Plant head grade

g/t

Sep 2018

 2.59

 2.01

 3.22

 0.87

 2.45

 3.54

 0.68

 3.57

 1.10

 14.55

  

Jun 2018

 2.56

 1.95

 3.25

 0.82

 2.50

 3.57

 0.62

 3.54

 1.12

 15.17

  

Sep 2017

 2.56

 2.01

 3.26

 0.92

 2.39

 3.59

 0.60

 3.64

 1.39

 14.86

Plant recoveries

%

Sep 2018

 75.30

 69.59

 83.18

 22.18

 82.41

 77.19

 11.78

 84.53

 29.77

 89.21

  

Jun 2018

 74.80

 68.34

 81.11

 24.41

 82.51

 77.76

 9.69

 83.23

 34.61

 91.31

  

Sep 2017

 74.43

 68.68

 84.11

 21.43

 81.85

 78.19

 11.70

 86.00

 27.57

 91.00

Yield

g/t

Sep 2018

 1.95

 1.40

 2.68

 0.19

 2.02

 2.73

 0.08

 3.01

 0.33

 13.28

  

Jun 2018

 1.91

 1.33

 2.65

 0.20

 2.06

 2.77

 0.06

 2.95

 0.39

 13.87

  

Sep 2017

 1.90

 1.38

 2.74

 0.20

 1.96

 2.80

 0.07

 3.14

 0.38

 13.65

PGM production2

4Eoz - 2Eoz

Sep 2018

 444,405

 305,227

 283,564

 21,662

 65,047

 30,855

 4,851

 187,663

 16,811

 139,178

  

Jun 2018

 428,382

 282,972

 260,198

 22,774

 63,697

 32,141

 3,995

 164,360

 18,779

 145,410

  

Sep 2017

 441,769

 306,184

 282,666

 23,518

 61,633

 32,334

 4,971

 188,699

 18,547

 135,585

PGM sold

4Eoz - 2Eoz

Sep 2018

 412,800

 305,227

 283,564

 21,662

 65,047

 30,855

 4,851

 187,663

 16,811

 107,573

  

Jun 2018

 419,656

 282,972

 260,198

 22,774

 63,697

 32,141

 3,995

 164,360

 18,779

 136,684

  

Sep 2017

 444,645

 306,184

 282,666

 23,518

 61,633

 32,334

 4,971

 188,699

 18,547

 138,461

Price and costs3

            

Average PGM basket price4

R/4Eoz - R/2Eoz

Sep 2018

 13,559

 14,049

 14,110

 13,333

 14,446

 13,532

 13,907

 13,994

 13,167

 12,592

  

Jun 2018

 12,724

 13,013

 13,041

 12,726

 13,447

 12,814

 13,137

 12,884

 12,638

 12,225

  

Sep 2017

 12,385

 12,551

 12,550

 12,571

 12,520

 12,650

 12,666

 12,560

 12,545

 12,047

 

US$/4Eoz

Sep 2018

 971

 1,000

 1,004

 949

 1,028

 963

 990

 996

 937

 896

  

Jun 2018

 1,005

 1,028

 1,031

 1,006

 1,063

 1,013

 1,038

 1,018

 999

 966

  

Sep 2017

 940

 953

 953

 954

 950

 960

 961

 954

 953

 914

Operating cost5

R/t

Sep 2018

 662

 503

 1,008

 76

 693

 924

 23

 1,172

 138

 3,799

  

Jun 2018

 592

 474

 1,012

 68

 657

 899

 16

 1,209

 139

 2,862

  

Sep 2017

 590

 462

 974

 68

 626

 750

 15

 1,156

 145

 3,305

 

US$/t

Sep 2018

 47

 36

 72

 5

 49

 66

 2

 83

 10

 270

  

Jun 2018

 47

 37

 80

 5

 52

 71

 1

 96

 11

 226

  

Sep 2017

 45

 35

 74

 5

 48

 57

 1

 88

 11

 251

 

R/4Eoz - R/2Eoz

Sep 2018

 10,798

 11,753

 11,720

 12,141

 10,665

 10,514

 8,782

 12,086

 13,110

 8,914

  

Jun 2018

 7,496

 11,842

 11,964

 10,622

 9,916

 10,087

 8,310

 12,758

 11,113

 6,411

  

Sep 2017

 7,399

 11,062

 11,092

 10,741

 9,931

 8,319

 6,860

 11,472

 11,781

 7,541

 

US$/4Eoz - US$/2Eoz

Sep 2018

 768

 836

 834

 864

 759

 748

 625

 860

 933

 634

  

Jun 2018

 592

 936

 945

 839

 784

 797

 657

 1,008

 878

 507

  

Sep 2017

 562

 840

 842

 816

 754

 632

 521

 871

 895

 573

All-in sustaining cost6

R/4Eoz - R/2Eoz

Sep 2018

 10,819

 10,834

  

 10,131

 9,559

 8,472

 11,114

 10,789

  

Jun 2018

 9,475

 10,025

  

 9,597

 8,579

 6,383

 10,252

 8,526

  

Sep 2017

 9,876

 10,229

  

 10,188

 8,559

 7,081

 10,317

 9,162

 

US$/4Eoz - US$/2Eoz

Sep 2018

 770

 771

  

 721

 680

 603

 791

 769

  

Jun 2018

 749

 792

  

 758

 678

 504

 810

 674

  

Sep 2017

 749

 777

  

 773

 650

 537

 782

 695

All-in cost6

R/4Eoz - R/2Eoz

Sep 2018

 11,751

 10,901

  

 10,131

 9,559

 12,245

 11,114

 13,428

  

Jun 2018

 10,398

 10,160

  

 9,597

 8,579

 14,743

 10,255

 10,809

  

Sep 2017

 10,778

 10,229

  

 10,188

 8,559

 7,081

 10,317

 11,885

 

US$/4Eoz - US$/2Eoz

Sep 2018

 836

 776

  

 721

 680

 871

 791

 956

  

Jun 2018

 822

 803

  

 758

 678

 1,165

 810

 854

  

Sep 2017

 818

 777

  

 773

 650

 537

 782

 902

Capital expenditure

            

Ore reserve development

Rm

Sep 2018

 384.7

 131.4

  

 -

 -

 -

 131.4

 253.3

  

Jun 2018

 339.1

 116.3

  

 -

 -

 -

 116.3

 222.8

  

Sep 2017

 325.9

 120.7

  

 -

 -

 -

 120.7

 205.2

Sustaining capital

Rm

Sep 2018

 186.9

 101.6

  

 31.9

 49.2

 1.3

 68.4

 85.3

  

Jun 2018

 143.7

 66.4

  

 29.0

 29.6

 (5.4)

 42.8

 77.3

  

Sep 2017

 177.9

 82.2

  

 40.6

 53.6

 3.8

 37.8

 95.7

Corporate and projects7

Rm

Sep 2018

 385.6

 18.3

  

 -

 -

 18.3

 -

 367.3

  

Jun 2018

 365.9

 34.0

  

 -

 -

 33.4

 0.6

 331.9

  

Sep 2017

 366.5

 -

  

 -

 -

 -

 -

 366.5

Total capital expenditure

Rm

Sep 2018

 957.2

 251.3

  

 31.9

 49.2

 19.7

 199.7

 705.9

  

Jun 2018

 848.8

 216.8

  

 29.0

 29.6

 28.0

 159.8

 632.0

  

Sep 2017

 923.9

 256.5

  

 40.6

 53.6

 3.8

 158.5

 667.4

 

US$m

Sep 2018

 68.1

 17.9

  

 2.3

 3.5

 1.4

 14.2

 50.2

  

Jun 2018

 67.1

 17.1

  

 2.3

 2.3

 2.2

 12.6

 49.9

  

Sep 2017

 70.0

 19.5

  

 3.1

 4.1

 0.3

 12.0

 50.5

Average exchange rates for the quarters ended 30 September 2018, 30 June 2018 and 30 September 2017 were R14.05/US$, R12.65/US$ and R13.18/US$, respectively.

Figures may not add as they are rounded independently.

  • 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 underground statistics shown above and is detailed in the PGM recycling table below.
  • Production per product – see prill split in the table below.
  • The Group and total SA PGM operations’ unit cost benchmarks exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales.
  • The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment.
  • 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.
  • All-in costs 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 costs is made up of All-in sustaining costs, 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 costs and All-in costs, respectively, in a period by the total 4E/2E PGM produced in the same period.

The US region All-in cost, excluding the corporate project expenditure (on the Altar and Marathon projects), for the quarters ended 30 September 2018, 30 June 2018 and 30 September 2017 was US$951/2Eoz, US$832/2Eoz and US$900/2Eoz, respectively.

  • The US region corporate expenditure for the quarters ended 30 September 2018, 30 June 2018 and 30 September 2017 includes R8.9 million (US$0.6 million), R41.4 million (US$3.4 million) and R21.1 million (US$1.6 million), respectively, related to the Altar and Marathon projects.
                   

Mining - Prill split excluding Recycling operations

 

GROUP

SA REGION

US REGION

 

Sep 2018

Jun 2018

Sep 2017

Sep 2018

Jun 2018

Sep 2017

Sep 2018

Jun 2018

Sep 2017

 

4Eoz / 2Eoz

%

4Eoz / 2Eoz

%

4Eoz / 2Eoz

%

4Eoz

%

4Eoz

%

4Eoz

%

2Eoz

%

  

2Eoz

%

Platinum

 209,594

47%

 197,721

46%

 208,051

47%

 177,728

58%

 164,959

58%

 177,108

58%

 31,866

23%

 32,762

23%

 30,943

23%

Palladium

 201,936

45%

 200,342

47%

 200,818

45%

 94,624

31%

 87,694

31%

 96,176

31%

 107,312

77%

 112,648

77%

 104,642

77%

Rhodium

 25,828

6%

 20,096

5%

 25,875

6%

 25,828

8%

 20,096

7%

 25,875

8%

      

Gold

 7,047

2%

 10,223

2%

 7,025

2%

 7,047

2%

 10,223

4%

 7,025

2%

      

PGM production

 444,405

100%

 428,382

100%

 441,769

100%

 305,227

100%

 282,972

100%

 306,184

100%

 139,178

100%

 145,410

100%

 135,585

100%

Ruthenium

 41,001

 

 37,465

 

 40,265

 

 41,001

 

 37,465

 

 40,265

       

Iridium

 9,470

 

 9,969

 

 9,261

 

 9,470

 

 9,969

 

 9,261

       

Total

 494,876

 

 475,816

 

 491,295

 

 355,698

 

 330,406

 

 355,710

 

 139,178

 

 145,410

 

 135,585

 
                   

Recycling operation - 3E PGM

               
 

US REGION

              
 

Unit

Sep 2018

Jun 2018

Sep 2017

              

Average catalyst fed/day

Tonne

 18.4

 21.8

 23.0

              

Total processed

Tonne

 1,696

 1,984

 2,120

              

Tolled

Tonne

 188

 307

 359

              

Purchased

Tonne

 1,508

 1,677

 1,761

              

PGM fed

Troy oz

 144,585

 168,842

 197,300

              

PGM sold

Troy oz

 126,744

 147,872

 141,700

              

PGM tolled returned

Troy oz

 40,475

 29,996

 34,600

              

 

SA gold operations

               
   

SA REGION

   

Total SA gold

Driefontein

Kloof

Beatrix

Cooke

DRDGOLD1

 

Total

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Surface

Production

              

Tonnes milled/treated

000't

Sep 2018

 8,515

 1,534

 6,981

 402

 180

 471

 1,437

 629

 94

 32

 1,121

 4,149

  

Jun 2018

 4,772

 1,619

 3,153

 450

 388

 479

 1,624

 685

 111

 5

 1,030

 -

  

Sep 2017

 4,924

 2,007

 2,917

 551

 1,090

 574

 933

 725

 78

 157

 816

 -

Yield

g/t

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

  

Jun 2018

 2.00

 5.19

 0.36

 5.59

 0.52

 7.21

 0.37

 3.55

 0.37

 1.20

 0.29

 -

  

Sep 2017

 2.35

 5.25

 0.36

 6.00

 0.40

 7.21

 0.42

 3.28

 0.27

 4.52

 0.24

 -

 Gold production

kg

Sep 2018

 9,609

 7,752

 1,857

 2,162

 110

 3,338

 607

 2,222

 32

 30

 351

 757

  

Jun 2018

 9,548

 8,403

 1,145

 2,516

 203

 3,452

 606

 2,429

 41

 6

 295

 -

  

Sep 2017

 11,576

 10,529

 1,047

 3,306

 438

 4,137

 390

 2,376

 21

 710

 198

 -

 

oz

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

  

Jun 2018

 306,974

 270,162

 36,812

 80,891

 6,527

 110,984

 19,483

 78,094

 1,318

 193

 9,484

 -

  

Sep 2017

 372,176

 338,514

 33,662

 106,290

 14,082

 133,007

 12,539

 76,390

 675

 22,827

 6,366

 -

Gold sold

kg

Sep 2018

 9,585

 7,752

 1,833

 2,162

 110

 3,338

 607

 2,222

 32

 30

 351

 733

  

Jun 2018

 9,548

 8,403

 1,145

 2,516

 203

 3,452

 606

 2,429

 41

 6

 295

 -

  

Sep 2017

 11,576

 10,529

 1,047

 3,306

 438

 4,137

 390

 2,376

 21

 710

 198

 -

 

oz

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

  

Jun 2018

 306,974

 270,162

 36,812

 80,891

 6,527

 110,984

 19,483

 78,094

 1,318

 193

 9,484

 -

  

Sep 2017

 372,176

 338,514

 33,662

 106,290

 14,082

 133,007

 12,539

 76,390

 675

 22,827

 6,366

 -

Price and costs

              

Gold price received

R/kg

Sep 2018

 544,542

  

 550,528

 545,856

 543,301

 549,606

 553,003

  

Jun 2018

 531,640

  

 531,519

 531,099

 538,907

 547,508

 -

  

Sep 2017

 542,407

  

 540,251

 542,412

 543,763

 547,687

 -

 

US$/oz

Sep 2018

 1,205

  

 1,218

 1,208

 1,202

 1,216

 1,224

  

Jun 2018

 1,307

  

 1,306

 1,305

 1,325

 1,346

 -

  

Sep 2017

 1,280

  

 1,275

 1,280

 1,284

 1,293

 -

Operating cost2

R/t

Sep 2018

 561

 2,515

 132

 3,585

 326

 2,963

 209

 1,622

 109

 47

 144

 94

  

Jun 2018

 910

 2,345

 173

 3,115

 196

 2,878

 194

 1,483

 123

 140

 137

 -

  

Sep 2017

 969

 2,134

 167

 2,643

 175

 2,337

 186

 1,418

 141

 2,917

 138

 -

 

US$/t

Sep 2018

 40

 179

 9

 255

 23

 211

 15

 115

 8

 3

 10

 7

  

Jun 2018

 72

 185

 14

 246

 15

 227

 15

 117

 10

 11

 11

 -

  

Sep 2017

 74

 162

 13

 201

 13

 177

 14

 108

 11

 221

 10

 -

 

R/kg

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

  

Jun 2018

 454,881

 451,886

 476,856

 557,075

 374,384

 399,421

 520,957

 418,320

 334,146

 116,667

 476,610

 -

  

Sep 2017

 412,215

 406,838

 466,285

 440,442

 436,073

 324,196

 445,385

 432,786

 523,810

 645,070

 568,182

 -

 

US$/oz

Sep 2018

 1,101

 1,102

 1,098

 1,475

 1,181

 925

 1,096

 1,016

 705

 118

 1,015

 1,144

  

Jun 2018

 1,118

 1,111

 1,172

 1,369

 920

 982

 1,280

 1,028

 821

 287

 1,171

 -

  

Sep 2017

 973

 960

 1,101

 1,040

 1,029

 765

 1,051

 1,022

 1,236

 1,523

 1,341

 -

All-in sustaining cost3

R/kg

Sep 2018

 582,809

  

 785,871

 509,303

 528,882

 484,777

 564,161

  

Jun 2018

 526,833

  

 646,083

 479,966

 475,951

 496,678

 -

  

Sep 2017

 487,068

  

 522,703

 419,395

 498,748

 646,035

 -

 

US$/oz

Sep 2018

 1,290

  

 1,739

 1,127

 1,171

 1,073

 1,249

  

Jun 2018

 1,295

  

 1,588

 1,180

 1,170

 1,221

 -

  

Sep 2017

 1,150

  

 1,234

 990

 1,177

 1,525

 -

All-in cost3

R/kg

Sep 2018

 609,794

  

 785,915

 516,755

 528,882

 484,777

 720,775

  

Jun 2018

 542,187

  

 646,193

 489,724

 476,032

 496,678

 -

  

Sep 2017

 503,041

  

 526,068

 425,160

 499,458

 646,035

 -

 

US$/oz

Sep 2018

 1,350

  

 1,739

 1,144

 1,171

 1,073

 1,596

  

Jun 2018

 1,333

  

 1,588

 1,204

 1,170

 1,221

 -

  

Sep 2017

 1,187

  

 1,242

 1,004

 1,179

 1,525

 -

Capital expenditure

              

Ore reserve

Rm

Sep 2018

 591.3

  

 232.3

 242.6

 116.4

-

 -

development

 

Jun 2018

 532.1

  

 220.3

 203.8

 108.0

-

 -

  

Sep 2017

 596.6

  

 242.2

 237.7

 116.7

-

 -

Sustaining capital

 

Sep 2018

 143.3

  

 47.4

 64.8

 26.6

-

 4.5

  

Jun 2018

 105.7

  

 55.9

 35.1

 14.7

-

 -

  

Sep 2017

 139.6

  

 58.5

 65.0

 16.1

-

 -

Corporate and

 

Sep 2018

 144.3

  

 0.1

 29.4

 -

-

 114.8

projects4

 

Jun 2018

 40.1

  

 0.3

 39.6

 0.2

-

 -

  

Sep 2017

 38.7

  

 12.6

 26.1

 -

-

 -

Total capital

Rm

Sep 2018

 879.0

  

 279.8

 336.9

 143.0

-

 119.3

expenditure

 

Jun 2018

 677.9

  

 276.5

 278.5

 122.9

-

 -

  

Sep 2017

 774.9

  

 313.3

 328.8

 132.8

-

 -

 

US$m

Sep 2018

 62.6

  

 19.9

 24.0

 10.2

-

 8.5

  

Jun 2018

 53.5

  

 21.8

 22.0

 9.7

-

 -

  

Sep 2017

 58.9

  

 23.8

 25.0

 10.1

-

 -

Average exchange rates for the quarters ended 30 September 2018, 30 June 2018 and 30 September 2017 were R14.05/US$, R12.65/US$ and R13.18/US$, respectively.

Figures may not add as they are rounded independently.

  • On 31 July 2018, Sibanye-Stillwater acquired 38% of the issued share capital and obtained control of DRDGOLD Limited (DRDGOLD). From this date, Sibanye-Stillwater consolidates and presents 100% of DRDGOLD’s production, price and costs, and capital expenditure statistics shown.
  • Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation 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 in a period by the gold produced in the same period.
  • All-in costs 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 costs is made up of All-in sustaining costs, being the cost to sustain current operations, given as a sub-total in the All-in cost 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 costs and All-in costs, respectively, in a period by the total gold sold over the same period.
  • Corporate project expenditure for the quarters ended 30 September 2018, 30 June 2018 and 30 September 2017 amounted to R31.2 million (US$2.2 million), R53.2 million (US$4.2 million), and R93.0 million (US$7.0 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.

SA gold operations

                 

Quarter ended

 

30 Sep 2018

30 Jun 2018

Nine months ended 30 Sep 2018

 

Reef

 

Black Reef

Carbon
leader

Main

VCR

 

Black Reef

Carbon
leader

Main

VCR

 

Black Reef

Carbon
leader

Main

VCR

Driefontein

Unit

               

Advanced

(m)

 

 131

 1,304

 698

 875

 

 65

 1,688

 676

 867

 

 261

 4,432

 2,033

 2,734

Advanced on reef

(m)

 

 47

 285

 105

 198

 

 59

 377

 149

 197

 

 155

 954

 482

 522

Channel width

(cm)

 

 179

 50

 40

 88

 

 165

 54

 36

 93

 

 132

 47

 49

 82

Average value

(g/t)

 

 5.1

 23.1

 14.9

 22.3

 

 2.1

 19.1

 13.8

 31.9

 

 3.6

 22.9

 10.9

 37.0

 

(cm.g/t)

 

 906

 1,157

 591

 1,962

 

 346

 1,025

 496

 2,961

 

 474

 1,069

 534

 3,026

                 

Quarter ended

 

30 Sep 2018

30 Jun 2018

Nine months ended 30 Sep 2018

 

Reef

 

Kloof

Main

Libanon

VCR

 

Kloof

Main

Libanon

VCR

 

Kloof

Main

Libanon

VCR

Kloof

Unit

               

Advanced

(m)

 

 1,382

 603

 20

 1,272

 

 1,220

 579

 21

 1,582

 

 3,759

 1,787

 50

 4,003

Advanced on reef

(m)

 

 416

 143

 20

 231

 

 333

 122

 

 351

 

 1,122

 346

 29

 837

Channel width

(cm)

 

 132

 138

 113

 132

 

 133

 126

 

 104

 

 132

 131

 109

 112

Average value

(g/t)

 

 6.1

 13.0

 11.4

 17.9

 

 6.2

 7.8

 

 21.5

 

 7.3

 9.8

 11.4

 20.1

 

(cm.g/t)

 

 812

 1,782

 1,289

 2,357

 

 827

 986

 

 2,233

 

 960

 1,280

 1,236

 2,239

                 

Quarter ended

 

30 Sep 2018

30 Jun 2018

Nine months ended 30 Sep 2018

 

Reef

  

Beatrix

 

Kalkoenkrans

  

Beatrix

 

Kalkoenkrans

  

Beatrix

 

Kalkoenkrans

Beatrix

Unit

               

Advanced

(m)

  

 4,300

 

 74

  

 4,486

 

 29

  

 12,695

 

 167

Advanced on reef

(m)

  

 1,377

 

 2

  

 1,354

    

 3,964

 

 23

Channel width

(cm)

  

 127

 

 132

  

 115

    

 120

 

 166

Average value

(g/t)

  

 6.8

 

 7.9

  

 6.6

    

 6.4

 

 9.5

 

(cm.g/t)

  

 860

 

 1,039

  

 760

    

 772

 

 1,581

                 

Quarter ended

 

30 Sep 2018

30 Jun 2018

Nine months ended 30 Sep 2018

 

Reef

    

Kimberley
Reefs

    

Kimberley
Reefs

    

Kimberley
Reefs

Burnstone

Unit

               

Advanced

(m)

    

 -

    

 383

    

 1,648

Advanced on reef

(m)

    

 -

    

 100

    

 293

Channel width

(cm)

    

 -

    

 30

    

 56

Average value

(g/t)

    

 -

    

 13.8

    

 10.0

 

(cm.g/t)

    

 -

    

 414

    

 559

SA PGM operations

                 

Quarter ended

 

30 Sep 2018

30 Jun 2018

Nine months ended 30 Sep 2018

 

Reef

Kopaneng

Simunye

Bambanani

Kwezi

K6

Kopaneng

Simunye

Bambanani

Kwezi

K6

Kopaneng

Simunye

Bambanani

Kwezi

K6

Kroondal

Unit

               

Advanced

(m)

 587

 468

 608

 627

 533

 678

 539

 592

 636

 555

 1,694

 1,488

 1,778

 1,872

 1,890

Advanced on reef

(m)

 574

 428

 539

 575

 508

 632

 451

 582

 529

 431

 1,615

 1,241

 1,522

 1,638

 1,596

Height

(cm)

 248

 224

 217

 250

 247

 239

 241

 222

 246

 264

 241

 232

 219

 247

 251

Average value

(g/t)

 1.8

 2.3

 2.1

 2.1

 1.8

 2.0

 1.8

 2.7

 2.2

 1.7

 2.0

 2.1

 2.3

 2.1

 1.9

 

(cm.g/t)

 441

 517

 460

 515

 445

 468

 438

 592

 529

 440

 476

 483

 493

 529

 483

                 

Quarter ended

 

30 Sep 2018

30 Jun 2018

Nine months ended 30 Sep 2018

 

Reef

Bathopele

Thembelani

Khuseleka

Siphumelele

Bathopele

Thembelani

Khuseleka

Siphumelele

Bathopele

Thembelani

Khuseleka

Siphumelele

Rustenburg

Unit

               

Advanced

(m)

 552

 2,103

 2,797

 1,148

 

 316

 1,780

 2,418

 1,116

 

 1,170

 5,349

 7,405

 3,322

Advanced on reef

(m)

 552

 769

 915

 558

 

 316

 832

 775

 525

 

 1,170

 2,103

 2,285

 1,423

Height

(cm)

 220

 287

 282

 285

 

 215

 297

 290

 288

 

 215

 288

 287

 289

Average value

(g/t)

 

 2.7

 2.2

 2.2

 3.2

 

 2.6

 2.3

 2.2

 3.0

 

 2.6

 2.2

 2.2

 3.1

 

(cm.g/t)

 

 594

 643

 631

 906

 

 559

 678

 630

 868

 

 560

 635

 625

 884

US PGM operations

                 

Quarter ended

 

30 Sep 2018

30 Jun 2018

Nine months ended 30 Sep 2018

 

Reef

   

Stillwater incl Blitz

East Boulder

   

Stillwater incl Blitz

East Boulder

   

Stillwater incl Blitz

East Boulder

Stillwater

Unit

               

Primary development (off reef)

(m)

   

 2,530

 444

   

 2,695

 402

   

 8,244

 1,504

Secondary development

(m)

   

 2,333

 1,530

   

 2,153

 1,340

   

 6,524

 4,321

 

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

Tel: +27 83 453 4014

+27 10 493 6923

Email: james.wellsted@sibanyestillwater.com or ir@sibanyestillwater.com

CORPORATE SECRETARY

Lerato Matlosa

Tel: +27 10 493 6921

Email: lerato.matlosa@sibanyestillwater.com

DIRECTORS

Sello Moloko1 (Chairman)

Neal Froneman (CEO)

Charl Keyter (CFO)

Savannah Danson1

Timothy Cumming1

Barry Davison1

Rick 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

KPMG Inc.

KPMG Crescent

85 Empire Road

Parktown 2193

Johannesburg

South Africa

Tel: +27 11 647 7111

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: shrrelations@bnymellon.com

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: tatyana.vesselovskaya@bnymellon.com

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: ssd@capitaregistrars.com

FORWARD-LOOKING STATEMENTS

This announcement contains “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “target”, “will”, “would”, “expect”, “can”, “potential”, “could” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements, including among others, those relating to our future business prospects, financial positions, debt position and our ability to reduce debt leverage, plans and objectives of management for future operations, our ability to obtain the benefits of any streaming arrangements or pipeline financing, our ability to service our Bond Instruments (High Yield Bonds and Convertible Bonds), our ability to achieve steady state production at the Blitz project and the anticipated benefits and synergies of our acquisitions are necessarily estimates reflecting the best judgement of our senior management and involve a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict and generally beyond the control of Sibanye-Stillwater, that could cause 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. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in the Group’s Annual Integrated Report and Annual Financial Report, published on 30 March 2018, and the Group’s Annual Report on Form 20-F filed by Sibanye-Stillwater with the Securities and Exchange Commission on 2 April 2018 (SEC File no. 001-35785). These forward-looking statements speak only as of the date of this announcement. Sibanye-Stillwater undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events, save as required by applicable law.

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PDAC 2019

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