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Sibanye-Stillwater shows another record quarter by end of September 2020!

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Johannesburg, 29 October 2020: Sibanye Stillwater Limited (Sibanye-Stillwater or the Group) (JSE: SSW & NYSE: SBSW - https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ ) is pleased to provide an operating update for the quarter ended 30 September 2020. Financial results are only provided on a six-monthly basis.

SALIENT FEATURES FOR THE QUARTER ENDED 30 SEPTEMBER 2020

  • Record quarterly adjusted EBITDA3 of R15,592 million (US$922 million)
  • Production build-up at SA operations post lockdown restrictions delivered ahead of schedule
  • Leverage 40% lower compared to H1 2020 with net debt: adjusted EBITDA reducing to 0.33x at end Q3 2020
  • Net debt reduced by further R11,164 million (US$666 million) following conversion of convertible bond during October 2020
  • Another solid performance from the SA PGM Operations

 

 

 

 

 

 

 

 

 

US dollar

 

 

 

 

 

SA rand

Quarter ended

 

 

 

 

 

Quarter ended

Sep 2019

Jun 2020

Sep 2020

 

KEY STATISTICS

 

Sep 2020

Jun 2020

Sep 2019

 

 

 

 

UNITED STATES (US) OPERATIONS

 

 

 

 

 

 

 

 

PGM operations1,2

 

 

 

 

 147,353

 156,155

 147,835

oz

2E PGM production2

kg

 4,598

 4,857

 4,583

 202,141

 175,674

 202,661

oz

PGM recycling1

kg

 6,303

 5,464

 6,287

 1,388

 1,733

 1,898

US$/2Eoz

Average basket price

R/2Eoz

 32,095

 31,116

 20,362

 123.4

 219.7

 190.8

US$m

Adjusted EBITDA3

Rm

 3,226.7

 3,943.5

 1,810.0

 27

 24

 34

%

Adjusted EBITDA margin3

%

 34

 24

 27

 791

 838

 875

US$/2Eoz

All-in sustaining cost4

R/2Eoz

 14,803

 15,038

 11,603

 

 

 

 

SOUTHERN AFRICA (SA) OPERATIONS

 

 

 

 

 

 

 

 

PGM operations2

 

 

 

 

 518,623

 239,756

 427,715

oz

4E PGM production2

kg

 13,303

 7,457

 16,131

 1,385

 1,724

 2,179

US$/4Eoz

Average basket price

R/4Eoz

 36,840

 30,942

 20,316

 199.7

 56.1

 549.2

US$m

Adjusted EBITDA3

Rm

 9,287.1

 1,007.0

 2,930.3

 25

 18

 58

%

Adjusted EBITDA margin3

%

 58

 18

 25

 1,104

 1,338

 1,004

US$/4Eoz

All-in sustaining cost4

R/4Eoz

 16,985

 24,011

 16,190

 

 

 

 

Gold operations

 

 

 

 

 287,330

 165,544

 288,938

oz

Gold production

kg

 8,987

 5,149

 8,937

 1,451

 1,685

 1,845

US$/oz

Average gold price

R/kg

 1,002,945

 972,396

 684,172

 57.4

 31.0

 190.3

US$m

Adjusted EBITDA3

Rm

 3,218.2

 557.1

 842.6

 14

 12

 37

%

Adjusted EBITDA margin3

%

 37

 12

 14

 1,386

 1,543

 1,316

US$/oz

All-in sustaining cost4

R/kg

 715,345

 890,444

 653,666

 

 

 

 

GROUP

 

 

 

 

 377.4

299.8

 922.1

US$m

Adjusted EBITDA3

Rm

 15,592.1

 5,382.3

 5,536.1

 14.67

 17.95

 16.91

R/US$

Average exchange rate using daily closing rates

 

 

 

 

  1. The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated to SA rand (rand). In addition to the US PGM operations’ underground production, the operation treats recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM recycling represents palladium, platinum, and rhodium ounces fed to the furnace
  2. Platinum Group Metals (PGM) production in the SA operations is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US operations is principally   platinum and palladium, referred to as 2E (2PGM)
  3. The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt covenant formula.  For a reconciliation of profit(loss) before royalties and tax to adjusted EBITDA see “Adjusted EBITDA reconciliation – quarters”.  Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
  4. See “salient features and cost benchmarks – quarters” for the definition of All-in sustaining cost

 

 

 

 

Stock data for the quarter ended 30 September 2020

JSE Limited - (SSW)

Number of shares in issue1

 

Price range per ordinary share (high/low)

R36.75 to R57.59

- at 30 September 2020

 2,924,560,172

Average daily volume

19,276,266

- weighted average

 2,676,024,386

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

Free Float

99%

Price range per ADR (high/low)

 US$8.64 to US$13.44

Bloomberg/Reuters

SSW SJ/SSWJ.J

Average daily volume

3,390,990

The number of shares in issue at 30 September 2020 includes 248 430 319 shares block listed which were issued post the September 2020 quarter pursuant to the convertible bond conversions

 

OVERVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2020 COMPARED TO QUARTER ENDED 30 SEPTEMBER 2019

The operational recovery from the severe lockdown in SA in response to the COVID-19 pandemic has progressed well. The proactive and decisive response by the Group to address the COVID-19 challenges, while ensuring the integrity of the operating environment and the safety of all our employees has been pleasing. Comprehensive health and safety protocols, which were developed and implemented early on, have proven to be effective. In the interests of employee safety and operational continuity a more measured and phased production build up was deemed appropriate, particularly as employees from neighbouring countries and other provinces in South Africa were recalled.

The build-up to normalised production levels at the SA operations has progressed better than planned and the manner in which employees have been reintegrated into the operations without a notable increase in infection rates or operational disruptions, validates the more gradual recall and production build-up strategy.

By the end of Q3 2020, the SA gold operations had recalled approximately 92% of the workforce and achieved a production run rate of approximately 99% of planned levels, with the SA PGM operation having recalled approximately 88% of the workforce with a production run rate of 93% of planned levels achieved. By mid-October 2020, both the SA gold and PGM operations were operating at close to planned production rates with the employee complement close to pre-COVID-19 levels.

While the US PGM operations have continued to operate throughout the year, COVID-19 protocols, particularly compliance with social distancing requirements, has had an ongoing negative impact on productivity. The social distancing impact is most prevalent on transport to and from work, with employees living throughout the state of Montana and travelling longer distances to work than in SA. Restricted access to the operations has also affected shift arrangements and blasting schedules, resulting in a negative 8% impact on productivity. 

COVID-19 infection rates at the SA operations, have declined significantly after peaking in July 2020 and while there has been a slight increase in infections in recent weeks, we do not anticipate a significant rise in cases or significant risk of the operations being closed. There has been a sharp spike in infections in the US and the state of Montana, and there has been a corresponding increase in positive cases at the US PGM operations. Again, we believe that our protocols are effective to manage the situation and ensure the safety of employees as well as the integrity of the operations insofar as practicable.

Elevated precious metal prices for Q3 2020, together with the 15% depreciation of the rand against the dollar during 2020 year-to-date, has ensured record prices for the basket of metals produced in SA and close to record levels in the US. Despite still being impacted by COVID-19 constraints during Q3 2020, the consistent operational performance coupled with high commodity prices, underpinned an exceptional financial result for the Group for Q3 2020.

Group adjusted EBITDA for Q3 2020 increased by 182% (or R10,056 million/US$545 million) to R15,592 million (US$922 million), compared with the same period in 2019. This represents another record quarterly financial result, surpassing the full-year Group adjusted EBITDA of R14,956 million (US$1,034 million) for 2019. This outstanding result reflects the significant value accretive PGM acquisition strategy embarked on from 2016.

Strong cash flow generation drove a further reduction in net debt during the period, despite the payment of the R1.4 billion H1 2020 dividend. Net debt: adjusted EBITDA (ND: adjusted EBITDA) at the end of Q3 2020, decreased by 40% to 0.33x from 0.55x at the end of June 2020. Subsequent to quarter end, the soft call option on the Convertible Bond (CB) was exercised and the CB was fully redeemed by 19 October 2020. On a proforma basis there is thus a further reduction in net debt of R11,164 million (US$666 million), resulting in ND: adjusted EBITDA declining on a proforma basis to 0.05x* at 30 September 2020.

Available funding increased by 19% from R23,799 million (US$1,372 million) at 30 June 2020 to R28,202 million (US$1,683 million) at 30 September 2020, comprising cash on hand of R15,151 million (US$904 million) (30 June 2020: R12,041 million (US$694 million)), committed undrawn facilities of R11,869 million (US$708 million) (30 June 2020: R9,000 million (US$519 million)), and available uncommitted overnight facilities of R1,182 million (US$71 million) (30 June 2020: R2,758 million (US$159 million)).

The strategic deleveraging which has been a primary focus since 2017 is now complete. At current commodity prices and the prevailing exchange rate, and with the SA operations having attained normalised production run rates, the Group is likely to continue generating significant cash flow. Following the resumption of the dividend in August 2020, the Group is well positioned to deliver superior total returns to shareholders. We will continue to maintain a disciplined approach to capital allocation, with the primary focus on securing the future of the company and delivering on our vision of superior value creation for all our stakeholders by prioritising dividends, share buy backs when appropriate, and smart, value accretive growth.

* Certain information presented in this quarterly update constitutes pro forma financial information. The responsibility for preparing and presenting the pro forma financial information, its completeness and accuracy is that of the directors of Sibanye Stillwater. The information is presented for illustrative purposes only. Because of its nature, the pro forma financial information may not fairly present the Company’s financial position, changes in equity, and results of operations or cash flows. The information has not been audited or reviewed or reported on by external auditors of the Company

SAFE PRODUCTION

The safe production performance for Q3 2020 was mixed, with another good quarterly safety performance from the SA PGM operations, offset by a decline in the safety performance of the SA gold operations.

The SA PGM operations delivered another fatality free quarter (mirroring the zero fatalities for Q2 2020), relative to two fatalities experienced in Q3 2019. On 13 October 2020, the SA PGM operations achieved a milestone of four million fatality free shifts with the last fatality recorded at Siphumelele shaft in March 2020.

Regrettably, after over 13 million shifts and almost two years without any fatal incidents, the SA gold operations suffered two fatalities during Q3 2020. On 8 August 2020, Mr Mfuneka Manikela, a contractor employee at Kloof Thuthukani shaft, was struck by ore flowing down the raise towards the tip while he was travelling in a centre gully to collect equipment. Mr Manikela was 36 years old and is survived by his wife. On 13 August 2020 Mr Bonginkosi Hlophe, a learner miner at Driefontein Hlanganani shaft, was struck by a gravity fall of ground while travelling above the strike gully. Mr Hlope was 38 years old and is survived by his fiancée and three dependents. Our heartfelt condolences go out to the family, friends and colleagues of Mr Manikela and Mr Hlophe. Both incidents are being investigated together with the relevant stakeholders and appropriate support has been provided to both families.

Despite these fatalities we believe that our safety strategy remains appropriate and we will continue to work towards our goal of zero harm. An improvement in serious injury frequency rate (SIFR), lost day injury frequency rate (LDIFR) and the total injury frequency rates of 12%, 20% and 23% respectively was achieved for the quarter, compared to the same period in 2019 for the SA gold operations. The focus on proactively managing leading indicators, in line with our Safe Production Strategy, will remain key in achieving ongoing continual improvement.

The US PGM reported a total reportable injury frequency rate (TRIFR) of 13 per million hours for Q3 2020, compared to 8.5 per million hours for Q3 2019. The majority of incidents were due to slips, trips and falls, which primarily resulted in minor lacerations.

OPERATING REVIEW

US PGM operations

Compliance with COVID-19 protocols continued to affect productivity at the US PGM operations. Logistical constraints (transport of employees) and the need to stagger shift arrangements and blast cycles to accommodate social distancing has resulted in productivity declines of approximately 8% versus pre-COVID-19 levels. For 2020 this is equivalent to a loss of approximately 20,000 2Eoz of mined production. Mined 2E PGM production for Q3 2020 of 147,835 2Eoz was in line with the comparable period in 2019. Production from the Stillwater mine (including Stillwater West and Stillwater East) of 91,940  2Eoz for Q3 2020, was 1% lower than for the comparable period in 2019. The East Boulder mine (EB) produced 55,895 2Eoz, 3% higher than for Q3 2019. Mined tonnes milled for Q3 2020 increased to 370,201 tonnes, 7% higher than for Q3 2019. Plant head grade was 13.6 g/t in Q3 2020, 6% lower than for Q3 2019. Head-grade challenges were largely attributed to lower than expected availability of higher grade stopes. Remedial action has been taken, and a recovery in grade is anticipated for Q4 2020. PGM sales for Q3 2020 of 143,716 2Eoz were 3% higher than for Q3 2019, largely due to the timing of production deliveries in Q3 2020.

All-in sustaining cost (AISC) of US$875/2Eoz for Q3 2020 was 11% higher than for Q3 2019, due to lower than planned 2E PGM production from the Stillwater mine complex and higher royalties and insurance. The average 2E PGM basket price for Q3 2020, was approximately 96% higher than the average basket price used for planning, with a consequential increase in royalties and insurance accounting for approximately US$51/2Eoz (6%) of the increase in AISC year-on-year. 

The recycling operation fed an average of 25tpd of spent catalyst for Q3 2020. Recycling inventory normalised at approximately 200 tonnes following the accelerated processing of inventory in Q2 2020, although has increased subsequent to quarter end due to planned maintenance at the smelter early in Q4 2020. Ongoing COVID-19 related logistical and liquidity constraints constraining the global recycling industry, continued to affect recycle receipts during Q3 2020 although recycle receipts have begun normalising and are trending back to pre-COVID-19 levels. It should be noted that recycle receipts are region specific, with COVID-19 continuing to constrain global supply from some regions.

The 2E PGM basket price for Q3 2020 averaged US$1,898/2Eoz, 37% higher than for Q3 2019, driving the mined adjusted EBITDA margin to 62% from 57% in Q3 2019. Adjusted EBITDA for the US PGM operations increased by 55% year-on-year to US$191 million (R3,227 million), with the recycling operation contributing US$10 million (R170 million). After accounting for recycling, the blended adjusted EBITDA margin for the US PGM operations increased from 27% in Q3 2019 to 34% in Q3 2020.

Total capital expenditure for Q3 2020 amounted to US$69 million and was mainly spent on the Blitz and Fill the mill (FTM) growth projects (54% or US$37 million).

The Blitz project has been reviewed following the suspension of growth capital activities due to COVID-19 during Q1 and Q2 2020, which, as signalled in our H1 2020 results, further delayed the project schedule. The project review has indicated a delay of up to two years, with production from Blitz now expected to reach a steady state run rate of approximately 300,000 2Eoz per annum by 2024. Further detail on the project will be provided in Q1 2021, following the completion of the annual production planning cycle.The FTM project is on schedule and on budget, building up to an annualised production run rate of approximately 40,000 2Eoz per annum from December 2020. This project yields an estimated net present value of over US$460m at spot 2E PGM prices.

SA PGM operations

Despite ongoing COVID-19 related constraints at the SA PGM operations during Q3 2020, the ongoing production build-up was well managed, with costs kept under control. Primarily due to the progressive production build up during the quarter, 4E PGM production of 427,715 4Eoz for Q3 2020 was 18% lower than for the comparable period in 2019.

Costs were well managed with AISC increasing by only 5% year-on-year to R16,985/4Eoz (US$1,004/4Eoz), despite lower production and above inflation electricity tariffs and wage adjustments. Higher state royalty tax arising from the increase in revenue and profitability were partly offset by financial benefits accruing to the Marikana smelting and refining operations from the processing of Purchase of Concentrate (PoC) from Rustenburg, Kroondal and Platinum Mile following the declaration of Force Majeure (FM) by Anglo American Platinum (Anglo Platinum) during March 2020 after breakdowns at its converter plants (ACP).

The average 4E PGM basket price of R36,840/4Eoz (US$2,179/4Eoz) for Q3 2020 was 81% higher than for Q3 2019. This was primarily driven by significant price gains in rhodium (166%) and palladium (41%) period-on-period and a 15% weaker rand exchange rate. Rhodium and palladium respectively contributed approximately 42% and 30% of the spot 4E PGM basket revenue for Q3 2020, despite comprising just 8% and 30% of the 4E prill split. The record average 4E basket price combined with the steady increase in production post the COVID-19 lockdown, enabled a 217% increase in adjusted EBITDA for the SA PGM operations to R9,287 million (US$549 million) for Q3 2020, with the adjusted EBITDA margin more than doubling from 25% for Q3 2019 to 58% for Q3 2020.

Notably, the R9,287 million adjusted EBITDA generated during this quarter accounts for 72% of the R12.8 billion aggregated initial acquisition cost of Kroondal, Rustenburg and Marikana. Considering the higher prevailing average PGM basket price in Q4 2020 to date, combined with the return to normalised production rates during October, the outlook for Q4 2020 is extremely positive.

PGM production of 154,904 4Eoz from the Rustenburg operation was 14% lower than for Q3 2019. Underground production was 17% lower due to the ongoing build-up of production post the COVID-19 lockdown. This was partly offset by an 18% increase in production from the surface operations, which were less affected by COVID-19 related restrictions. AISC for the Rustenburg operation increased by 19% year-on-year to R18,864/4Eoz (US$1,116/4Eoz), primarily due to lower production, compounded by above inflation increases in wages and electricity tariffs, with higher royalty tax adding approximately R1,624/4Eoz (US$96/4Eoz). At normalised production levels and adjusting for the higher royalty tax, AISC would have been R14,813/4Eoz (US$876/4Eoz), well within SA inflation. The combined AISC margin for the Rustenburg operation increased from 31% for Q3 2019 to 59% for Q3 2020. 

The Kroondal operation delivered another solid operational performance despite COVID-19 constraints. Despite being a primarily mechanised operation, a relatively higher proportion of Kroondal’s labour complement comes from neighbouring countries and other SA provinces which, due to COVID-19 travel restrictions on travel, resulted in a more delayed recall of employees, compounded by the need to quarantine or isolate returning employees. As a result, 4E PGM production of 53,299oz was 21% lower for Q3 2020 than for Q3 2019.  Absolute costs were well managed, with above inflationary electricity tariff and wage increases being absorbed, but due to the lower production volumes, AISC increased by 18% to R12,805/4Eoz (US$757/4Eoz) year-on-year, considerably less than the 93% year-on-year increase in the average PGM basket price.

PGM production from the Marikana operation for Q3 2020 of 177,717 4Eoz was 26% lower than for Q3 2019. The production decline was again primarily due to the gradual production build, with the buildup at the conventional Marikana shafts slower than at the more mechanised Rustenburg operation. The Marikana operation also employs a higher proportion of foreign nationals and employees from other provinces than the Rustenburg operations, which further delayed the production build up. Restructuring of the Marikana operations and closure of three Generation 1 shafts, which produced 10,537 4Eoz for Q3 2019, also contributed to the decline in production year-on-year. AISC of R16,779/4Eoz (US$992/4Eoz) was 7% lower than R17,955/4Eoz (US$1,224/4Eoz) for Q3 2019 despite significantly lower production. This partly reflects the ongoing realisation of cost synergies from the integration of the Marikana operation into the SA PGM operations, as well as one-off benefits from processing of PoC from Rustenburg, Kroondal and Platinum Mile (due to the Anglo Platinum ACP FM) at the Marikana smelting and refining operations.

Revenue from chrome sales amounted to R309 million for Q3 2020, 6% lower than revenue of R330 million for Q3 2019 due to lower volumes produced and lower prices year-on-year. Chrome sales of 429kt for Q3 2020, compared with 591kt for Q3 2019 with the average chrome price for Q3 2020 of US$138/t, 6% lower than the Q3 2019 average price of US$147/tonne.

Mimosa was largely unaffected by COVID-19 and continued to perform steadily. Attributable 4E PGM production of 31,572 4Eoz was 23% higher than for Q3 2019.

SA gold operations

The post lockdown production build up at the SA Gold operations progressed smoothly and ahead of plan. Gold production of 8,987kg (288,938oz) for Q3 2020 was flat year-on-year, with production building up during both Q3 2020 and Q3 2019 following significant operational disruptions in prior periods. During H1 2020 operations were suspended due to COVID-19 and during H1 2019, the production was significantly affected by the five-month AMCU strike. AISC of R715,345/kg (US$1,316/oz) remained elevated due to lower production, above inflation electricity tariff and wage increases.

Gold production (excluding DRDGOLD) of 7,473kg (240,262oz) was similar to the comparable period in 2019, with AISC of R746,127/kg (US$1,372/oz), 9% higher than for Q3 2019.

The average gold price for Q3 2020 of US$1,845/oz was 27% higher than for the comparable period in 2019, which together with the 15% depreciation of the average rand: dollar exchange rate year-on-year boosted the average rand gold price received for Q3 2020 by 47% to a record level of R1,002,945/kg. The inherent leverage of the SA gold operations to the rand gold price was clearly evident with the adjusted EBITDA margin for the SA Gold operations expanding to 37% compared with 14% for Q3 2019 and adjusted EBITDA increasing 282% to R3,218 million (US$190 million) for Q3 2020.

Underground production from the Driefontein operation of 2,424kg (77,933oz) increased by 17% due to a 14% increase in the average yield to 6.26g/t compared with 5.51g/t for the comparable period in 2019. The higher average yield during the period was a planned consequence of the phased recall of employees since May 2020, with returning crews initially directed to high grade areas, in order to build production and revenue as fast as possible. Underground yields have naturally normalised as the employee complement has increased. AISC declined by 5% to R741,525/kg (US$1,364/oz).

Underground production from the Kloof operation increased by 11% to 2,881kg (92,626oz) compared to Q3 2019, due to a 14% increase in the underground yield for the same reason outlined above. The Kloof surface operation was less impacted by COVID-19 constraints and spare capacity at the underground plants was utilised to accelerate surface throughput in order to offset lower throughput from underground. Surface production for Q3 2020 increased by 23% compared with Q3 2019, to 457kg (14,693oz). Considering the additional cost associated with COVID-19, costs were well controlled, with AISC for Q3 2020 of R718,630/kg (US$1,322/oz) being similar to Q3 2019. As mentioned above total AISC for Kloof is14% higher than the total AISC for the comparative period as a result of higher sales in the current quarter compared to the same period in 2019 (higher GIP and gold on hand in Q3 2019 compared to Q3 2020).

In contrast to the Driefontein and Kloof operations, underground gold production from the Beatrix operation of 1,319kg (42,407oz) declined by 36% compared with Q3 2019. Beatrix employs a higher proportion of foreign nationals than Kloof and Driefontein, with lower crew availability delaying the production build up. Gold production from surface sources increased by 56% to 64kg (2,058oz) due to utilisation of spare plant capacity. AISC for Q3 2020 of R847,561/kg (US$1,559/oz) was 53% higher than for the comparable period in 2019 due to the high fixed cost nature of the operations offset by the lower wage costs of employees not recalled, with lower production in the period.

OUTLOOK

Mined 2E PGM production from the US PGM operations for 2020 is forecast at between 620,000 2Eoz and 650,000 2Eoz, although due to ongoing COVID-19 constraints, is likely to be at the lower end of guidance. AISC is forecast to be between US$830/2Eoz and US$860/2Eoz, after accounting for the price driven royalties and taxes detailed previously. Capital expenditure is forecast to be between US$250 million to US$270 million, with the majority of this spend project in nature.

4E PGM production for 2020 from the SA PGM operations is forecast at between 1.35 million 4Eoz and 1.45 million 4Eoz with AISC between R19,700/4Eoz and R21,000/4Eoz (US$1,159/4Eoz and US$1,235/4Eoz). Given the smooth recovery in production, the upper end of production guidance and lower end of AISC guidance are very achievable. Capital expenditure is forecast at approximately R2,000 million (US$117 million).

Gold production from the managed SA gold operations (excluding DRDGOLD) for 2020 is forecast to be at the upper end of the production guidance of between 23,500kg and 24,500kg (756,000oz and 812,000oz) and as a result AISC is anticipated to be at the lower end of the cost guidance of between R805,000/kg and R840,000/kg (US$1,473/oz and US$1491/oz). Capital expenditure is expected to be marginally lower than the guidance of R2,850 million (US$168 million).

The 2020 dollar guidance is based on an average exchange rate of R17.00/US$.

Neal Froneman

Chief Executive Officer

 

 

 

 

 

SALIENT FEATURES AND COST BENCHMARKS -  QUARTERS

US and SA PGM operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US OPERATIONS

SA OPERATIONS

 

 

 

Total SA and US PGM operations

Total US PGM
Stillwater

Total SA PGM

Rustenburg

Marikana

Kroondal

Plat Mile

Mimosa2

Attributable

 

Under - ground1

Total

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Attributable

Surface

Attributable

Production

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes milled/treated

000't

Sep 2020

 9,570

 371

 9,199

 4,229

 4,970

 1,546

 1,446

 1,526

 976

 795

 2,548

 362

 

 

Jun 2020

 6,035

 380

 5,655

 2,298

 3,357

 692

 1,102

 801

 725

 449

 1,530

 356

 

 

Sep 2019

 9,936

 345

 9,591

 5,402

 4,189

 1,848

 1,161

 2,227

 925

 1,032

 2,103

 295

Plant head grade

g/t

Sep 2020

 2.42

 13.62

 1.96

 3.31

 0.82

 3.25

 0.98

 3.72

 0.87

 2.49

 0.71

 3.60

 

 

Jun 2020

 2.64

 14.09

 1.87

 3.19

 0.97

 3.12

 1.07

 3.49

 0.85

 2.42

 0.95

 3.59

 

 

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

Plant recoveries

%

Sep 2020

 77.30

 91.02

 73.67

 84.40

 36.82

 86.14

 34.59

 85.26

 41.98

 83.75

 17.58

 75.35

 

 

Jun 2020

 77.29

 89.57

 70.56

 82.48

 43.71

 82.43

 32.69

 85.01

 37.17

 82.95

 14.87

 76.85

 

 

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

Yield

g/t

Sep 2020

 1.87

 12.40

 1.44

 2.79

 0.30

 2.80

 0.34

 3.17

 0.37

 2.09

 0.12

 2.71

 

 

Jun 2020

 2.04

 12.62

 1.32

 2.63

 0.42

 2.57

 0.35

 2.97

 0.32

 2.01

 0.14

 2.76

 

 

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

PGM production3,8

4Eoz - 2Eoz

Sep 2020

 575,550

 147,835

 427,715

 379,478

 48,237

 139,144

 15,760

 155,463

 22,254

 53,299

 10,223

 31,572

 

 

Jun 2020

 395,911

 156,155

 239,756

 194,100

 45,656

 57,221

 12,393

 76,326

 26,314

 28,977

 6,949

 31,576

 

 

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

PGM sold

4Eoz - 2Eoz

Sep 2020

 510,194

 143,716

 366,478

 349,285

 17,193

 115,662

 6,970

149,149

 53,299

 10,223

 31,175

 

 

Jun 2020

 438,050

 191,903

 246,147

 229,480

 16,667

 79,514

 9,718

108,036

 28,977

 6,949

 12,953

 

 

Sep 2019

 684,771

 140,201

 544,570

 529,538

 15,032

 156,974

 10,886

279,366

 67,600

 4,146

 25,598

Price and costs4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average PGM basket price5

R/4Eoz - R/2Eoz

Sep 2020

 35,416

 32,095

 36,840

 37,605

 30,453

 37,878

 26,818

36,141

 40,595

 22,541

 31,936

 

 

Jun 2020

 31,021

 31,116

 30,942

 31,580

 28,228

 32,120

 23,432

30,018

 34,428

 27,798

 28,878

 

 

Sep 2019

 20,314

 20,362

 20,316

 20,405

 17,314

 20,337

 17,016

20,287

 21,053

 18,098

 19,326

 

US$/4Eoz - US$/2Eoz

Sep 2020

 2,094

 1,898

 2,179

 2,224

 1,801

 2,240

 1,586

2,137

 2,401

 1,333

 1,889

 

 

Jun 2020

 1,728

 1,733

 1,724

 1,759

 1,573

 1,789

 1,305

1,672

 1,918

 1,549

 1,609

 

 

Sep 2019

 1,385

 1,388

 1,385

 1,391

 1,180

 1,386

 1,160

1,383

 1,435

 1,234

 1,317

Operating cost6

R/t

Sep 2020

 1,072

 5,192

 899

 1,953

 79

 1,558

 183

1,772

 892

 51

 1,204

 

 

Jun 2020

 1,292

 5,468

 992

 2,525

 106

 2,048

 246

1,968

 1,076

 55

 1,212

 

 

Sep 2019

 937

 4,381

 809

 1,395

 94

 1,321

 290

1,250

 721

 27

 1,075

 

US$/t

Sep 2020

 63

 307

 53

 115

 5

 92

 11

105

 53

 3

 71

 

 

Jun 2020

 72

 305

 55

 141

 6

 114

 14

110

 60

 3

 68

 

 

Sep 2019

 64

 299

 55

 95

 6

 90

 20

85

 49

 2

 73

 

R/4Eoz - R/2Eoz

Sep 2020

 18,148

 13,030

 20,058

 21,706

 8,170

 17,314

 16,751

24,947

 13,302

 12,716

 13,800

 

 

Jun 2020

 20,138

 13,307

 25,262

 30,172

 7,784

 24,771

 21,835

29,257

 16,679

 12,203

 13,659

 

 

Sep 2019

 14,101

 10,258

 15,249

 15,619

 10,675

 14,632

 25,188

16,342

 11,003

 13,700

 12,384

 

US$/4Eoz - US$/2Eoz

Sep 2020

 1,073

 771

 1,186

 1,284

 483

 1,024

 991

1,475

 787

 752

 816

 

 

Jun 2020

 1,122

 741

 1,407

 1,681

 434

 1,380

 1,216

1,630

 929

 680

 761

 

 

Sep 2019

 961

 699

 1,039

 1,065

 728

 997

 1,717

1,114

 750

 934

 844

All-in sustaining cost7

R/4Eoz - R/2Eoz

Sep 2020

 16,392

 14,803

 16,985

 

 

18,864

16,779

 12,805

 13,880

 15,450

 

 

Jun 2020

 20,166

 15,038

 24,011

 

 

22,766

27,596

 16,927

 13,081

 15,420

 

 

Sep 2019

 15,134

 11,603

 16,190

 

 

15,844

17,955

 10,877

 15,195

 13,267

 

US$/4Eoz - US$/2Eoz

Sep 2020

 969

 875

 1,004

 

 

1,116

992

 757

 821

914

 

 

Jun 2020

 1,123

 838

 1,338

 

 

1,268

1,537

 943

 729

 859

 

 

Sep 2019

 1,032

 791

 1,104

 

 

1,080

1,224

 741

 1,036

 904

All-in cost7

R/4Eoz - R/2Eoz

Sep 2020

 17,543

 18,997

 17,001

 

 

18,864

16,814

 12,805

 13,880

 15,450

 

 

Jun 2020

 21,996

 19,183

 24,106

 

 

22,766

27,714

 16,927

 14,160

 15,420

 

 

Sep 2019

 15,963

 15,195

 16,192

 

 

15,844

17,957

 10,877

 15,412

 13,267

 

US$/4Eoz - US$/2Eoz

Sep 2020

 1,037

 1,123

 1,005

 

 

1,116

994

 757

 821

 914

 

 

Jun 2020

 1,225

 1,069

 1,343

 

 

1,268

1,544

 943

 789

 859

 

 

Sep 2019

 1,088

 1,036

 1,104

 

 

1,080

1,224

 741

 1,051

 904

Capital expenditure4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ore reserve development

Rm

Sep 2020

 607.1

 301.7

 305.4

 

 

107.1

198.3

 -

 -

 -

 

 

Jun 2020

 447.4

 352.5

 94.9

 

 

14.4

80.5

 -

 -

 -

 

 

Sep 2019

 677.4

 235.1

 442.3

 

 

135.9

306.4

 -

 -

 -

Sustaining capital

 

Sep 2020

 444.3

 238.4

 205.9

 

 

57.1

102.9

 37.8

 8.1

 129.5

 

 

Jun 2020

 346.3

 215.6

 130.7

 

 

40.1

65.4

 20.9

 4.2

 78.4

 

 

Sep 2019

 537.4

 116.0

 421.4

 

 

91.9

269.9

 57.0

 2.6

 72.9

Corporate and projects

 

Sep 2020

 620.0

 620.0

 -

 

 

 -

 -

 -

 -

 -

 

 

Jun 2020

 654.7

 647.2

 7.5

 

 

 -

 -

 -

 7.5

 -

 

 

Sep 2019

 531.6

 530.5

 1.1

 

 

 -

0.2

 -

 0.9

 -

Total capital expenditure

Rm

Sep 2020

 1,671.4

 1,160.1

 511.3

 

 

164.2

301.2

 37.8

 8.1

 129.5

 

 

Jun 2020

 1,448.4

 1,215.3

 233.1

 

 

54.5

145.9

 20.9

 11.7

 78.4

 

 

Sep 2019

 1,746.3

 881.6

 864.7

 

 

227.8

576.5

 57.0

 3.4

 72.9

 

US$m

Sep 2020

 98.8

 68.6

 30.2

 

 

9.7

17.8

 2.2

 0.5

 7.7

 

 

Jun 2020

 80.7

 67.7

 13.0

 

 

3.0

8.1

 1.2

 0.7

 4.4

 

 

Sep 2019

 119.0

 60.1

 58.9

 

 

15.5

39.3

 3.9

 0.2

 5.0

Average exchange rates for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019 were R16.91/US$, R17.95/US$ and R14.67/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 rand. In addition to the US PGM operations’ underground production, the operation treats various recycling material which is excluded from the statistics shown above
  2. During Q2 2020, sales were affected by the COVID-19 pandemic, however Mimosa continued production of PGM concentrate that resulted in a build up of concentrate stockpile. A difference arose whereby the Mimosa 4Eoz sold during Q2 2020 were included as equal to the produced 4Eoz in the Q2 2020 salient feature tables. The effect of this difference resulted in sold 4Eoz for Q2 2020 being reported as 31,576 4Eoz compared to an actual of 12,953 4Eoz. The AISC and AIC per 4Eoz for Mimosa were reported as R8,741/4Eoz compared to R15,420/4Eoz due to the inventory change not adjusted in these calculations
  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 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 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.  The operating cost of Marikana operation includes the purchase of concentrate from Rustenburg, Kroondal and Platinum Mile
  7. All-in cost is calculated in accordance with the World Gold Council guidance.  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 cost 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.  For a reconciliation of cost of sales before amortisation and depreciation to All-in costs, see “All-in costs – quarters”           
  8. The Marikana PGM production includes the processing of 10,781 4Eoz, 18,949 4Eoz and 12,790 4Eoz third party concentrate purchases for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019, respectively                                                   

 

Mining – Prill split excluding recycling operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROUP

SA OPERATIONS

US OPERATIONS

 

Sep 2020

Jun 2020

Sep 2019

Sep 2020

Jun 2020

Sep 2019

Sep 2020

Jun 2020

Sep 2019

 

 

%

 

%

 

%

 

%

 

%

 

%

 

%

 

%

 

%

Platinum

 288,406

50%

 178,071

45%

 340,943

51%

 255,268

60%

 143,313

60%

307,777

59%

 33,138

22%

 34,758

22%

 33,166

23%

Palladium

 241,852

42%

 192,641

49%

 270,059

41%

 127,155

30%

 71,244

30%

155,872

30%

 114,697

78%

 121,397

78%

 114,187

77%

Rhodium

 35,600

6%

 18,554

5%

 46,079

7%

 35,600

8%

 18,554

8%

46,079

9%

 

 

 

 

 

 

Gold

 9,692

2%

 6,645

1%

 8,895

1%

 9,692

2%

 6,645

2%

8,895

2%

 

 

 

 

 

 

PGM production 4E/2E

 575,550

100%

 395,911

100%

 665,976

100%

 427,715

100%

 239,756

100%

 518,623

100%

 147,835

100%

 156,155

100%

 147,353

100%

Ruthenium

 56,991

 

 31,192

 

 74,264

 

 56,991

 

 31,192

 

74,264

 

 

 

 

 

 

 

Iridium

 14,039

 

 7,788

 

 18,731

 

 14,039

 

 7,788

 

18,731

 

 

 

 

 

 

 

Total 6E/2E

 646,580

 

 434,891

 

 758,971

 

 498,745

 

 278,736

 

 611,618

 

 147,835

 

 156,155

 

 147,353

 

Recycling operation

 

 

 

 

 

 

Unit

Sep 2020

Jun 2020

Sep 2019

Average catalyst fed/day

Tonne

 24.5

 22.8

 25.3

Total processed

Tonne

 2,254

 2,071

 2,327

Tolled

Tonne

 103

 347

 354

Purchased

Tonne

 2,151

 1,725

 1,973

PGM fed

3Eoz

 202,661

 175,674

 202,141

PGM sold

3Eoz

 113,225

 220,838

 178,685

PGM tolled returned

3Eoz

 24,585

 32,074

 49,317

 

 

SA gold operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA OPERATIONS

 

 

 

 

Total SA gold

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 2020

 11,399

 1,213

 10,186

 387

 -

 472

 1,450

 354

 165

 -

 1,311

 7,260

 

 

Jun 2020

 8,763

 533

 8,230

 139

 -

 205

 1,401

 189

 93

 -

 999

 5,737

 

 

Sep 2019

 10,907

 1,446

 9,461

 376

 -

 485

 1,286

 558

 72

 27

 948

 7,155

Yield

g/t

Sep 2020

 0.79

 5.46

 0.23

 6.26

 -

 6.10

 0.32

 3.73

 0.39

 -

 0.25

 0.21

 

 

Jun 2020

 0.59

 6.31

 0.22

 7.08

 -

 7.60

 0.36

 4.34

 0.24

 -

 0.23

 0.18

 

 

Sep 2019

 0.82

 4.65

 0.23

 5.51

 -

 5.33

 0.29

 3.69

 0.57

 0.44

 0.32

 0.21

Gold produced

kg

Sep 2020

 8,987

 6,624

 2,363

 2,424

 -

 2,881

 457

 1,319

 64

 -

 328

 1,514

 

 

Jun 2020

 5,149

 3,361

 1,788

 984

 -

 1,557

 498

 820

 22

 -

 227

 1,041

 

 

Sep 2019

 8,937

 6,730

 2,207

 2,072

 -

 2,587

 373

 2,059

 41

 12

 300

 1,493

 

oz

Sep 2020

 288,938

 212,966

 75,972

 77,933

 -

 92,626

 14,693

 42,407

 2,058

 -

 10,545

 48,676

 

 

Jun 2020

 165,544

 108,059

 57,485

 31,636

 -

 50,059

 16,011

 26,364

 707

 -

 7,298

 33,469

 

 

Sep 2019

 287,330

 216,374

 70,956

 66,616

 -

 83,174

 11,992

 66,198

 1,318

 386

 9,645

 48,001

Gold sold

kg

Sep 2020

 8,726

 6,349

 2,377

 2,230

 -

 2,865

 463

 1,254

 58

 -

 334

 1,522

 

 

Jun 2020

 4,887

 3,192

 1,695

 920

 -

 1,509

 493

 763

 21

 -

 230

 951

 

 

Sep 2019

 8,510

 6,295

 2,215

 1,856

 -

 2,485

 412

 1,943

 35

 11

 258

 1,510

 

oz

Sep 2020

 280,547

 204,125

 76,422

 71,696

 -

 92,112

 14,886

 40,317

 1,865

 -

 10,738

 48,933

 

 

Jun 2020

 157,120

 102,625

 54,495

 29,579

 -

 48,515

 15,850

 24,531

 675

 -

 7,395

 30,575

 

 

Sep 2019

 273,604

 202,390

 71,214

 59,672

 -

 79,895

 13,246

 62,469

 1,125

 354

 8,295

 48,548

Price and costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold price received

R/kg

Sep 2020

 1,002,945

 

 

1,004,843

1,001,683

962,652

1,025,749

 1,031,406

 

 

Jun 2020

 972,396

 

 

809,783

900,899

873,597

974,783

 971,083

 

 

Sep 2019

 684,172

 

 

651,940

663,583

660,971

683,643

 697,483

 

US$/oz

Sep 2020

 1,845

 

 

1,848

1,842

1,771

1,887

 1,897

 

 

Jun 2020

 1,685

 

 

1,403

1,561

1,514

1,689

 1,683

 

 

Sep 2019

 1,451

 

 

1,382

1,407

1,401

1,449

 1,479

Operating cost1

R/t

Sep 2020

 473

 3,383

 127

 3,683

 -

 3,626

 190

 2,732

 207

 -

 149

 108

 

 

Jun 2020

 483

 5,973

 127

 7,978

 -

 6,513

 201

 3,926

 185

 -

 142

 106

 

 

Sep 2019

 463

 2,686

 123

 3,499

 -

 3,221

 216

 1,793

 131

 200

 165

 101

 

US$/t

Sep 2020

 28

 200

 8

 218

 -

 214

 11

 162

 12

 -

 9

 6

 

 

Jun 2020

 27

 333

 7

 444

 -

 363

 11

 219

 10

 -

 8

 6

 

 

Sep 2019

 32

 183

 8

 239

 -

 220

 15

 122

 9

 14

 11

 7

 

R/kg

Sep 2020

 600,033

 619,520

 545,408

 587,995

 -

 594,030

 604,376

 733,131

 532,813

 -

 594,817

517,437

 

 

Jun 2020

 821,829

 947,248

 586,074

 1,126,931

 -

 857,482

 564,458

 905,000

 781,818

 -

 624,229

 583,958

 

 

Sep 2019

 564,709

 577,043

 527,096

 634,990

 -

 603,788

 746,113

 485,867

 229,268

 450,000

 522,333

 483,255

 

US$/oz

Sep 2020

 1,104

 1,140

 1,003

 1,082

 -

 1,093

 1,112

 1,348

 980

 -

 1,094

 952

 

 

Jun 2020

 1,424

 1,641

 1,016

 1,953

 -

 1,486

 978

 1,568

 1,355

 -

 1,082

 1,012

 

 

Sep 2019

 1,197

 1,223

 1,118

 1,346

 -

 1,280

 1,582

 1,030

 486

 954

 1,107

 1,025

All-in sustaining cost2

R/kg

Sep 2020

 715,345

 

 

741,525

718,630

847,561

648,503

 591,393

 

 

Jun 2020

 890,444

 

 

1,239,565

837,363

976,403

678,261

 643,428

 

 

Sep 2019

 653,666

 

 

777,532

726,096

552,679

565,056

 509,868

 

US$/oz

Sep 2020

 1,316

 

 

1,364

1,322

1,559

1,193

 1,088

 

 

Jun 2020

 1,543

 

 

2,148

1,451

1,692

1,175

 1,115

 

 

Sep 2019

 1,386

 

 

1,649

1,539

1,172

1,198

 1,081

All-in cost2

R/kg

Sep 2020

 726,782

 

 

741,525

729,447

847,561

648,503

 608,016

 

 

Jun 2020

 890,853

 

 

1,239,565

845,654

976,403

678,261

 648,160

 

 

Sep 2019

 671,293

 

 

777,532

738,971

552,932

565,056

 517,285

 

US$/oz

Sep 2020

 1,337

 

 

1,364

1,342

1,559

1,193

 1,118

 

 

Jun 2020

 1,544

 

 

2,148

1,465

1,692

1,175

 1,123

 

 

Sep 2019

 1,423

 

 

1,649

1,567

1,172

1,198

 1,097

Capital expenditure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ore reserve development

Rm

Sep 2020

 529.8

 

 

233.1

215.2

81.5

 -

 -

 

 

Jun 2020

 155.5

 

 

71.3

57.5

26.7

 -

 -

 

 

Sep 2019

 560.3

 

 

216.8

251.1

92.4

 -

 -

Sustaining capital

 

Sep 2020

 257.9

 

 

54.9

88.0

19.9

 -

 95.1

 

 

Jun 2020

 144.0

 

 

17.8

32.7

9.1

 -

 84.4

 

 

Sep 2019

 143.1

 

 

65.3

55.8

16.5

 -

 5.5

Corporate and projects3

 

Sep 2020

 69.8

 

 

      -

36.0

-

 -

 25.3

 

 

Jun 2020

 21.3

 

 

      -

16.6

 -

 -

 4.5

 

 

Sep 2019

 75.7

 

 

      -

37.3

0.5

 -

 11.2

Total capital expenditure

 Rm

Sep 2020

 857.5

 

 

288.0

339.2

101.4

 -

 120.4

 

 

Jun 2020

 320.7

 

 

89.1

106.8

35.7

 -

 88.9

 

 

Sep 2019

 779.0

 

 

282.0

344.1

109.5

 -

 16.7

 

US$m

Sep 2020

 50.7

 

 

17.0

20.1

6.0

 -

 7.1

 

 

Jun 2020

 17.9

 

 

5.0

5.9

2.0

 -

 5.0

 

 

Sep 2019

 53.1

 

 

19.2

23.5

7.5

 -

 1.1

Average exchange rates for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019 were R16.91/US$, R17.95/US$ and R14.67/US$, respectively

Figures may not add as they are rounded independently

  1. 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
  2. All-in cost is calculated in accordance with the World Gold Council guidance.  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 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 cost and All-in cost, respectively, in a period by the total gold sold over the same period.  For a reconciliation of cost of sales before amortisation and depreciation to All-in costs, see “All-in costs – quarters”
  3. Corporate project expenditure for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019 was R8.5 million (US$0.5 million), R0.2 million (US$0 million) and R26.7 million (US$1.8 million), respectively

ALL-IN COSTS - QUARTERS

SA and US PGM operations

Figures are in millions unless otherwise stated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US OPERATIONS

SA OPERATIONS

 

 

 

Total US and SA PGM

Total US PGM1

Total SA PGM

Rustenburg

Marikana

Kroondal

Plat Mile

Mimosa2

Corporate

Cost of sales, before amortisation and depreciation3

 

Sep 2020

 8,374.5

 1,865.4

 6,509.1

 2,479.1

 3,424.7

 760.9

 130.0

 462.5

 (748.1)

 

 

Jun 2020

 7,313.2

 2,677.8

 4,635.4

 1,899.0

 2,698.8

 498.9

 84.8

 220.4

 (766.5)

 

 

Sep 2019

 9,871.5

 1,302.5

 8,569.0

 2,468.7

 5,241.8

 801.7

 56.8

 317.0

 (317.0)

Royalties

 

Sep 2020

 444.2

 -

 444.2

 326.7

 114.1

 3.4

 -

 30.6

 (30.6)

 

 

Jun 2020

 55.0

 -

 55.0

 33.5

 21.0

 0.5

 -

 18.1

 (18.1)

 

 

Sep 2019

 112.8

 -

 112.8

 75.0

 36.0

 1.7

 -

 14.9

 (14.8)

Carbon tax

 

Sep 2020

 0.7

 -

 0.7

 0.1

 0.5

 0.1

 -

 -

 -

 

 

Jun 2020

 1.3

 -

 1.3

 0.1

 1.1

 0.1

 -

 -

 -

 

 

Sep 2019

 -

 -

 -

 -

 -

 -

 -

 -

 -

Community costs

 

Sep 2020

 46.0

 -

 46.0

 (4.7)

 50.7

 -

 -

 -

 -

 

 

Jun 2020

 13.4

 -

 13.4

 5.8

 7.6

 -

 -

 -

 -

 

 

Sep 2019

 14.6

 -

 14.6

 14.6

 -

 -

 -

 -

 -

Inventory change4

 

Sep 2020

 1,654.8

 60.9

 1,593.9

 265.1

 1,043.1

 -

 -

 (26.8)

 312.5

 

 

Jun 2020

 203.1

 (599.8)

 802.9

 (76.0)

 332.7

 -

 -

 210.9

 335.3

 

 

Sep 2019

 (660.4)

 209.0

 (869.4)

 361.4

 (1,230.8)

 -

 -

 -

 -

Share-based payments5

 

Sep 2020

 41.0

 20.0

 21.0

 8.6

 10.6

 1.8

 -

 -

 -

 

 

Jun 2020

 13.2

 0.9

 12.3

 4.7

 4.7

 2.9

 -

 -

 -

 

 

Sep 2019

 13.3

 13.3

 -

 -

 -

 -

 -

 -

 -

Rehabilitation interest and amortisation6

 

Sep 2020

 67.5

 7.4

 60.1

 1.2

 38.9

 20.0

 -

 1.0

 (1.0)

 

 

Jun 2020

 66.2

 8.5

 57.7

 0.4

 36.3

 21.1

 -

 0.7

 (0.8)

 

 

Sep 2019

 56.9

 1.9

 55.0

 (0.5)

 36.1

 19.4

 -

 0.8

 (0.8)

Leases

 

Sep 2020

 14.8

 0.6

 14.2

 3.5

 8.5

 2.2

 -

 -

 -

 

 

Jun 2020

 15.7

 1.9

 13.8

 3.5

 8.1

 2.2

 -

 -

 -

 

 

Sep 2019

 13.8

 1.6

 12.2

 3.7

 10.6

 (2.1)

 -

 -

 -

Ore reserve development

 

Sep 2020

 607.1

 301.7

 305.4

 107.1

 198.3

 -

 -

 -

 -

 

 

Jun 2020

 447.4

 352.5

 94.9

 14.4

 80.5

 -

 -

 -

 -

 

 

Sep 2019

 677.4

 235.1

 442.3

 135.9

 306.4

 -

 -

 -

 -

Sustaining capital expenditure

 

Sep 2020

 444.3

 238.4

 205.9

 57.1

 102.9

 37.8

 8.1

 129.5

 (129.5)

 

 

Jun 2020

 346.3

 215.6

 130.7

 40.1

 65.4

 20.9

 4.2

 78.4

 (78.3)

 

 

Sep 2019

 537.3

 116.0

 421.3

 91.9

 269.9

 57.0

 2.6

 72.9

 (73.0)

Less: By-product credit8

 

Sep 2020

 (2,777.9)

 (306.0)

 (2,471.9)

 (321.7)

 (2,010.3)

 (143.7)

 3.8

 (109.0)

 109.0

 

 

Jun 2020

 (1,127.8)

 (309.1)

 (818.7)

 (340.7)

 (423.7)

 (56.1)

 1.9

 (41.6)

 41.5

 

 

Sep 2019

 (945.6)

 (169.7)

 (775.9)

 (294.5)

 (342.6)

 (142.4)

 3.6

 (66.0)

 66.0

Total All-in-sustaining costs7

 

Sep 2020

 8,917.0

 2,188.4

 6,728.6

 2,922.1

 2,982.0

 682.5

 141.9

 487.8

 (487.7)

 

 

Jun 2020

 7,347.0

 2,348.3

 4,998.7

 1,584.8

 2,832.5

 490.5

 90.9

 486.9

 (486.9)

 

 

Sep 2019

 9,691.6

 1,709.7

 7,981.9

 2,856.2

 4,327.4

 735.3

 63.0

 339.6

 (339.6)

Plus: Corporate cost, growth and capital expenditure

 

Sep 2020

 626.2

 620.0

 6.2

 -

 6.2

 -

 -

 -

 -

 

 

Jun 2020

 666.8

 647.2

 19.6

 -

 12.1

 -

 7.5

 -

 -

 

 

Sep 2019

 530.6

 529.3

 1.3

 -

 0.4

 -

 0.9

 -

 -

Total All-in-costs7

 

Sep 2020

 9,543.2

 2,808.4

 6,734.8

 2,922.1

 2,988.2

 682.5

 141.9

 487.8

 (487.7)

 

 

Jun 2020

 8,013.8

 2,995.5

 5,018.3

 1,584.8

 2,844.6

 490.5

 98.4

 486.9

 (486.9)

 

 

Sep 2019

 10,222.2

 2,239.0

 7,983.2

 2,856.2

 4,327.8

 735.3

 63.9

 339.6

 (339.6)

PGM production

4Eoz - 2Eoz

Sep 2020

 575,550

 147,835

 427,715

 154,904

 177,717

 53,299

 10,223

 31,572

 -

 

 

Jun 2020

 395,911

 156,155

 239,756

 69,614

 102,640

 28,977

 6,949

 31,576

 -

 

 

Sep 2019

 665,976

 147,353

 518,623

 180,269

 241,010

 67,600

 4,146

 25,598

 -

 

kg

Sep 2020

 17,902

 4,598

 13,303

 4,818

 5,528

 1,658

 318

 982

 -

 

 

Jun 2020

 12,314

 4,857

 7,457

 2,165

 3,193

 901

 216

 982

 -

 

 

Sep 2019

 20,714

 4,583

 16,131

 5,607

 7,496

 2,103

 129

 796

 -

All-in-sustaining cost

R/4Eoz - R/2Eoz

Sep 2020

 16,392

 14,803

 16,985

 18,864

 16,779

 12,805

 13,880

 15,450

 -

 

 

Jun 2020

 20,166

 15,038

 24,011

 22,766

 27,596

 16,927

 13,081

 15,420

 -

 

 

Sep 2019

 15,134

 11,603

 16,190

 15,844

 17,955

 10,877

 15,195

 13,267

 -

 

US$/4Eoz - US$/2Eoz

Sep 2020

 969

 875

 1,004

 1,116

 992

 757

 821

 914

 -

 

 

Jun 2020

 1,123

 838

 1,338

 1,268

 1,537

 943

 729

 859

 -

 

 

Sep 2019

 1,032

 791

 1,104

 1,080

 1,224

 741

 1,036

 904

 -

All-in-cost

R/4Eoz - R/2Eoz

Sep 2020

 17,543

 18,997

 17,001

 18,864

 16,814

 12,805

 13,880

 15,450

 -

 

 

Jun 2020

 21,996

 19,183

 24,106

 22,766

 27,714

 16,927

 14,160

 15,420

 -

 

 

Sep 2019

 15,963

 15,195

 16,192

 15,844

 17,957

 10,877

 15,412

 13,267

 -

 

US$/4Eoz - US$/2Eoz

Sep 2020

 1,037

 1,123

 1,005

 1,116

 994

 757

 821

 914

 -

 

 

Jun 2020

 1,225

 1,069

 1,343

 1,268

 1,544

 943

 789

 859

 -

 

 

Sep 2019

 1,088

 1,036

 1,104

 1,080

 1,224

 741

 1,051

 904

 -

Average exchange rates for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019 were R16.91/US$, R17.95/US$ and R14.67/US$, respectively

Figures may not add as they are rounded independently

  1. The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated into rand.  In addition to the US PGM operations’ underground production, the operation processes various recycling material which is excluded from the 2E PGM production, All-in sustaining cost and All-in cost statistics shown
  2. During Q2 2020, sales were affected by the COVID-19 pandemic, however Mimosa continued production of PGM concentrate that resulted in a build up of concentrate stockpile. A difference arose whereby the Mimosa 4Eoz sold during Q2 2020 were included as equal to the produced 4Eoz in the Q2 2020 salient feature tables. The effect of this difference resulted in sold 4Eoz for Q 2 2020 being reported as 31,576 4Eoz compared to an actual of 12,953 4Eoz. The AISC and AIC per 4Eoz for Mimosa were reported as R8,741/4Eoz compared to R15,420/4Eoz due to the inventory change not adjusted in these calculations
  3. Cost of sales, before amortisation and depreciation includes all mining and processing costs, third party refining costs, corporate general and administrative costs, and permitting costs.  Corporate relates to the elimination of concentrate sales by Rustenburg, Kroondal and Platinum Mile to Marikana and the associated unrealised profit
  4. Inventory adjustment in Corporate includes the elimination of concentrate sales by Rustenburg, Kroondal and Platinum Mile to Marikana and the associated unrealised profit
  5. Share-based payments are calculated based on the fair value at initial recognition and do not include the adjustment of the cash-settled share-based payment obligation to the reporting date fair value
  6. Rehabilitation includes the interest charge related to the environmental rehabilitation obligation and the amortisation of the related capitalised rehabilitation costs. The interest charge related to the environmental rehabilitation obligation and the amortisation of the capitalised rehabilitation costs reflect the periodic costs of rehabilitation associated with current PGM production
  7. All-in cost is calculated in accordance with the World Gold Council guidance.  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 cost 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
  8. The Q3 2020 and Q2 2020 by-product credit for Marikana includes the benefit from the sale of concentrate purchased from Rustenburg, Kroondal and Platinum Mile of R1,546 million and R128 million, respectively.  The cost associated with the purchase and processing of the intercompany concentrate is included in the Marikana cost of sales, before amortisation and depreciation

SA gold operations

Figures are in millions unless otherwise stated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA OPERATIONS

 

 

 

Total SA gold

Driefontein

Kloof

Beatrix

Cooke

DRDGOLD

Corporate

Cost of sales, before amortisation and depreciation1

 

Sep 2020

 5,305.5

 1,330.6

 2,018.3

 960.4

 201.0

 795.2

 -

 

 

Jun 2020

 3,950.8

 1,029.5

 1,551.9

 695.2

 137.7

 536.5

 -

 

 

Sep 2019

 4,714.8

 1,140.7

 1,763.8

 949.7

 139.0

 721.6

 -

Royalties

 

Sep 2020

 35.8

 11.2

 41.8

 14.2

 1.7

 -

 (33.1)

 

 

Jun 2020

 17.2

 3.7

 9.0

 3.4

 1.1

 -

 -

 

 

Sep 2019

 21.6

 5.6

 9.0

 6.1

 0.9

 -

 -

Carbon tax

 

Sep 2020

 0.5

 -

 0.1

 0.4

 -

 -

 -

 

 

Jun 2020

 0.7

 -

 0.1

 0.4

 -

 0.2

 -

 

 

Sep 2019

 -

 -

 -

 -

 -

 -

 -

Community costs

 

Sep 2020

 24.9

3.4

7.8

13.7

 -

 -

 -

 

 

Jun 2020

 36.5

 3.2

 7.5

 13.5

 -

 12.3

 -

 

 

Sep 2019

 14.4

 4.2

 5.3

 4.3

 0.6

 -

 -

Share-based payments2

 

Sep 2020

 19.7

 5.4

 6.2

 4.4

 -

 3.7

 -

 

 

Jun 2020

 (20.0)

 2.7

 3.3

 2.2

 -

 (28.2)

 -

 

 

Sep 2019

 41.1

 -

 -

 -

 -

 41.1

 -

Rehabilitation interest and amortisation3

 

Sep 2020

 58.5

 15.5

 11.5

 15.2

 10.3

 4.7

 1.3

 

 

Jun 2020

 53.0

 11.2

 10.6

 12.1

 13.2

 4.5

 1.4

 

 

Sep 2019

 56.8

 8.3

 14.1

 21.7

 8.3

 3.4

 1.0

Leases

 

Sep 2020

 17.5

 2.0

 4.4

 3.5

 3.9

 3.7

 -

 

 

Jun 2020

 17.5

 2.0

 4.6

 3.6

 4.3

 3.0

 -

 

 

Sep 2019

 17.6

 3.6

 6.0

 3.8

 4.2

 -

 -

Ore reserve development

 

Sep 2020

 529.8

233.1

215.2

81.5

 -

 -

 -

 

 

Jun 2020

 155.5

 71.3

 57.5

 26.7

 -

 -

 -

 

 

Sep 2019

 560.3

 216.8

 251.1

 92.4

 -

 -

 -

Sustaining capital expenditure

 

Sep 2020

 257.9

 54.9

 88.0

 19.9

 -

 95.1

 -

 

 

Jun 2020

 144.0

 17.8

 32.7

 9.1

 -

 84.4

 -

 

 

Sep 2019

 143.1

 65.3

 55.8

 16.5

 -

 5.5

 -

Less: By-product credit

 

Sep 2020

 (8.0)

 (2.5)

 (1.7)

 (1.2)

 (0.3)

 (2.3)

 -

 

 

Jun 2020

 (3.6)

 (1.0)

 (0.8)

 (0.7)

 (0.3)

 (0.8)

 -

 

 

Sep 2019

 (7.0)

 (1.4)

 (1.6)

 (1.3)

 (1.0)

 (1.7)

 -

Total All-in-sustaining costs4

 

Sep 2020

 6,242.1

 1,653.6

 2,391.6

 1,112.0

 216.6

 900.1

 (31.8)

 

 

Jun 2020

 4,351.6

 1,140.4

 1,676.4

 765.5

 156.0

 611.9

 1.4

 

 

Sep 2019

 5,562.7

 1,443.1

 2,103.5

 1,093.2

 152.0

 769.9

 1.0

Plus: Corporate cost, growth and capital expenditure

 

Sep 2020

 99.8

 -

 36.0

 -

 -

 25.3

 38.5

 

 

Jun 2020

 2.0

 -

 16.6

 -

 -

 4.5

 (19.1)

 

 

Sep 2019

 150.0

 -

 37.3

 0.5

 -

 11.2

 101.0

Total All-in-costs4

 

Sep 2020

 6,341.9

 1,653.6

 2,427.6

 1,112.0

 216.6

 925.4

 6.7

 

 

Jun 2020

 4,353.6

 1,140.4

 1,693.0

 765.5

 156.0

 616.4

 (17.7)

 

 

Sep 2019

 5,712.7

 1,443.1

 2,140.8

 1,093.7

 152.0

 781.1

 102.0

Gold sold

kg

Sep 2020

 8,726

 2,230

 3,328

 1,312

 334

 1,522

 -

 

 

Jun 2020

 4,887

 920

 2,002

 784

 230

 951

 -

 

 

Sep 2019

 8,510

 1,856

 2,897

 1,978

 269

 1,510

 -

 

oz

Sep 2020

 280,547

 71,696

 106,998

 42,182

 10,738

 48,933

 -

 

 

Jun 2020

 157,120

 29,579

 64,366

 25,206

 7,395

 30,575

 -

 

 

Sep 2019

 273,602

 59,672

 93,141

 63,594

 8,649

 48,548

 -

All-in-sustaining cost

R/kg

Sep 2020

 715,345

 741,525

 718,630

 847,561

 648,503

 591,393

 -

 

 

Jun 2020

 890,444

 1,239,565

 837,363

 976,403

 678,261

 643,428

 -

 

 

Sep 2019

 653,666

 777,532

 726,096

 552,679

 565,056

 509,868

 -

 

US$/oz

Sep 2020

 1,316

 1,364

 1,322

 1,559

 1,193

 1,088

 -

 

 

Jun 2020

 1,543

 2,148

 1,451

 1,692

 1,175

 1,115

 -

 

 

Sep 2019

 1,386

 1,649

 1,539

 1,172

 1,198

 1,081

 -

All-in-cost

R/kg

Sep 2020

 726,782

 741,525

 729,447

 847,561

 648,503

 608,016

 -

 

 

Jun 2020

 890,853

 1,239,565

 845,654

 976,403

 678,261

 648,160

 -

 

 

Sep 2019

 671,293

 777,532

 738,971

 552,932

 565,056

 517,285

 -

 

US$/oz

Sep 2020

 1,337

 1,364

 1,342

 1,559

 1,193

 1,118

 -

 

 

Jun 2020

 1,544

 2,148

 1,465

 1,692

 1,175

 1,123

 -

 

 

Sep 2019

 1,423

 1,649

 1,567

 1,172

 1,198

 1,097

 -

Average exchange rates for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019 were R16.91/US$, R17.95/US$ and R14.67/US$, respectively

Figures may not add as they are rounded independently

  1. Cost of sales, before amortisation and depreciation includes all mining and processing costs, third party refining costs, corporate general and administrative costs, and permitting costs
  2. Share-based payments are calculated based on the fair value at initial recognition and do not include the adjustment of the cash-settled share-based payment obligation to the reporting date fair value
  3. Rehabilitation include the interest charge related to the environmental rehabilitation obligation and the amortisation of the related capitalised rehabilitation costs. The interest charge related to the environmental rehabilitation obligation and the amortisation of the capitalised rehabilitation costs reflect the periodic costs of rehabilitation associated with current gold production
  4. All-in cost is calculated in accordance with the World Gold Council guidance.  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 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 cost and All-in cost, respectively, in a period by the total gold sold over the same period

ADJUSTED EBITDA RECONCILIATION - QUARTERS

Figures are in millions unless otherwise stated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended Sep 2020

Quarter ended Jun 2020

Quarter ended Sept 2019

Figures in million - SA rand

US PGM

SA PGM

SA Gold

Corporate

Total

US PGM

SA PGM

SA Gold

Corporate

Total

US PGM

SA PGM

SA Gold

Corporate

Total

Profit before royalties and tax

 2,293.2

 9,264.6

 375.4

 (225.4)

 11,707.8

 2,839.0

 581.0

 (2,169.2)

 (226.1)

 1,024.7

 838.0

 2,236.6

 (721.8)

 (319.3)

 2,033.5

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortisation and depreciation

 698.1

 518.4

 784.5

 -

 2,001.0

 831.7

 348.8

 445.3

 -

 1,625.8

 560.1

 484.9

 916.9

 -

 1,961.9

Interest income

 (52.9)

 (46.7)

 (127.4)

 -

 (227.0)

 (55.3)

 (56.3)

 (140.1)

 -

 (251.7)

 (38.2)

 (145.0)

 (64.7)

 -

 (247.9)

Finance expense

 245.0

 150.2

 296.5

 79.9

 771.6

 314.2

 170.0

 335.8

 79.4

 899.4

 374.9

 187.6

 196.1

 81.0

 839.6

Share-based payments

 22.9

 26.5

 17.0

 -

 66.4

 6.1

 20.9

 154.7

 -

 181.7

 13.3

 -

 102.1

 -

 115.4

Loss on financial instruments

 2.9

 54.8

 2,187.6

 -

 2,245.3

 (5.9)

 66.4

 1,792.4

 -

 1,852.9

 -

 36.3

 467.7

 -

 504.0

Loss on foreign exchange differences

 (0.3)

 213.1

 (173.6)

 -

 39.2

 (0.4)

 (97.7)

 263.0

 -

 164.9

 2.2

 (14.0)

 64.6

 -

 52.8

Share of results of equity-accounted investees after tax

 -

 (304.0)

 (163.3)

 -

 (467.3)

 -

 26.6

 (87.5)

 -

 (60.9)

 4.8

 (29.5)

 (109.3)

 -

 (134.0)

Other non-cash cost/(income)

 -

 -

 -

 -

 -

 -

 -

 (21.9)

 -

 (21.9)

 -

 -

 -

 -

 -

Gain on disposal of property, plant and equipment

 -

 (27.2)

 (7.1)

 -

 (34.3)

 -

 (16.3)

 (4.8)

 -

 (21.1)

 52.7

 (48.1)

 (7.6)

 -

 (3.0)

Impairments

 0.2

 -

 -

 -

 0.2

 0.2

 -

 -

 -

 0.2

 0.8

 (70.5)

 -

 -

 (69.7)

Restructuring cost

 -

 25.3

 47.5

 -

 72.8

 0.6

 (24.8)

 2.0

 -

 (22.2)

 0.6

 273.5

 (1.2)

 -

 272.9

IFRS 16 lease payments

 (0.7)

 (14.2)

 (18.9)

 -

 (33.8)

 (1.9)

 (14.2)

 (18.1)

 -

 (34.2)

 -

 -

 -

 -

 -

Other non-recurring (income)/costs

 18.3

 (573.7)

 -

 5.6

 (549.8)

 15.2

 2.6

 5.5

 21.4

 44.7

 0.8

 18.5

 (0.2)

 191.5

 210.6

Adjusted EBITDA

 3,226.7

 9,287.1

 3,218.2

 (139.9)

 15,592.1

 3,943.5

 1,007.0

 557.1

 (125.3)

 5,382.3

 1,810.0

 2,930.3

 842.6

 (46.8)

 5,536.1

 

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 2020 quarter

Jun 2020 quarter

Nine months ended 30 September 2020 

 

Reef

 

 

 

Stillwater incl Blitz

East Boulder

 

 

 

Stillwater incl Blitz

East Boulder

 

 

 

Stillwater incl Blitz

East Boulder

Stillwater

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary development (off reef)

(m)

 

 

 

 1,875

 369

 

 

 

 1,887

 330

 

 

 

 5,116

 1,448

Secondary development

(m)

 

 

 

 3,602

 1,153

 

 

 

 3,116

 1,317

 

 

 

 9,568

 3,399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA PGM operations

Sep 2020 quarter

Jun 2020 quarter

Nine months ended 30 September 2020

 

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)

 

 491

 840

 2,449

 673

 

 72

 230

 512

 234

 

 854

 2,207

 5,448

 1,745

Advanced on reef

(m)

 

 491

 649

 895

 412

 

 209

 151

 347

 169

 

 854

 1,256

 1,855

 903

Height

(cm)

 

 213

 236

 285

 268

 

 228

 244

 280

 257

 

 211

 268

 284

 250

Average value

(g/t)

 

 2.4

 2.3

 2.2

 3.1

 

 2.5

 2.3

 2.3

 2.9

 

 2.4

 2.4

 2.3

 3.0

 

(cm.g/t)

 

 515

 545

 632

 820

 

 557

 557

 648

 755

 

 505

 633

 648

 758

SA PGM operations

Sep 2020 quarter

Jun 2020 quarter

Nine months ended 30 September 2020

 

Reef

K3

Rowland

Saffy

E3

4B

K3

Rowland

Saffy

E3

4B

K3

Rowland

Saffy

E3

4B

Marikana

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary development

(m)

 7,579

 4,864

 5,288

 1,081

 1,463

 2,835

 2,014

 1,474

 501

 783

 17,829

 11,496

 11,321

 2,571

 3,729

Primary development - on reef

(m)

 6,025

 3,837

 3,593

 735

 1,011

 2,282

 1,635

 847

 349

 536

 14,166

 9,102

 7,549

 1,833

 2,608

Height

(cm)

 218

 220

 218

 215

 221

 217

 221

 220

 220

 220

 218

 219

 219

 218

 219

Average value

(g/t)

 3.1

 2.6

 2.7

 2.6

 2.4

 3.4

 2.5

 2.8

 2.7

 2.8

 3.2

 2.7

 2.7

 2.6

 2.5

 

(cm.g/t)

 683

 578

 587

 555

 526

 741

 544

 612

 586

 621

 697

 579

 582

 564

 547

SA PGM operations

Sep 2020 quarter

Jun 2020 quarter

Nine months ended 30 September 2020

 

Reef

Kopa-     neng

Simun-        ye

Bamba-  nani

Kwezi

K6

Kopa-     neng

Simun-        ye

Bamba-  nani

Kwezi

K6

Kopa-     neng

Simun-        ye

Bamba-  nani

Kwezi

K6

Kroondal

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced

(m)

 647

 110

 679

 552

 367

 431

 91

 237

 255

 218

 1,679

 373

 1,543

 1,156

 1,105

Advanced on reef

(m)

 444

 6

 671

 393

 367

 324

 77

 217

 92

 210

 933

 194

 1,483

 611

 964

Height

(cm)

 244

 226

 215

 210

 244

 252

 221

 212

 209

 247

 247

 220

 211

 212

 240

Average value

(g/t)

 1.4

 0.1

 2.8

 2.2

 2.5

 1.6

 2.2

 2.8

 1.2

 2.1

 1.7

 1.9

 2.9

 2.2

 2.3

 

(cm.g/t)

 333

 24

 600

 463

 612

 399

 474

 587

 246

 525

 423

 411

 607

 475

 559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA gold operations

Sep 2020 quarter

Jun 2020 quarter

Nine months ended 30 September 2020 

 

Reef

 

 

Carbon
leader

Main

VCR

 

 

Carbon
leader

Main

VCR

 

 

Carbon
leader

Main

VCR

Driefontein

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced

(m)

 

 

 757

 354

 1,220

 

 

 253

 154

 347

 

 

 1,850

 738

 2,456

Advanced on reef

(m)

 

 

 138

 144

 145

 

 

 27

 79

 48

 

 

 311

 315

 271

Channel width

(cm)

 

 

 65

 63

 61

 

 

 76

 82

 121

 

 

 80

 65

 85

Average value

(g/t)

 

 

 19.4

 9.8

 48.7

 

 

 9.7

 9.9

 9.9

 

 

 13.5

 10.2

 25.0

 

(cm.g/t)

 

 

 1,267

 621

 2,964

 

 

 738

 814

 1,190

 

 

 1,084

 660

 2,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA gold operations

Sep 2020 quarter

Jun 2020 quarter

Nine months ended 30 September 2020 

 

Reef

 

Kloof

Main

Libanon

VCR

 

Kloof

Main

Libanon

VCR

 

Kloof

Main

Libanon

VCR

Kloof

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced

(m)

 

 1,299

 508

 

 1,340

 

 275

 166

 3

 626

 

 2,758

 1,151

 69

 3,416

Advanced on reef

(m)

 

 275

 196

 

 209

 

 98

 61

 3

 95

 

 582

 313

 50

 530

Channel width

(cm)

 

 175

 139

 

 127

 

 198

 105

 166

 116

 

 155

 128

 177

 111

Average value

(g/t)

 

 4.7

 10.6

 

 13.9

 

 4.2

 11.8

 6.7

 1.8

 

 5.2

 10.9

 6.2

 9.7

 

(cm.g/t)

 

 828

 1,476

 

 1,771

 

 837

 1,237

 1,109

 212

 

 806

 1,393

 1,090

 1,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA gold operations

Sep 2020 quarter

Jun 2020 quarter

Nine months ended 30 September 2020 

 

Reef

 

 

 

Beatrix

Kalkoen-krans

 

 

 

Beatrix

Kalkoen-krans

 

 

 

Beatrix

Kalkoen-krans

Beatrix

Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced

(m)

 

 

 

 1,750

 135

 

 

 

 804

 66

 

 

 

 5,705

 360

Advanced on reef

(m)

 

 

 

 854

 23

 

 

 

 293

 23

 

 

 

 2,188

 116

Channel width

(cm)

 

 

 

 156

 205

 

 

 

 157

 108

 

 

 

 162

 145

Average value

(g/t)

 

 

 

 8.3

 4.2

 

 

 

 7.8

 53.0

 

 

 

 9.0

 18.8

 

(cm.g/t)

 

 

 

 1,297

 861

 

 

 

 1,227

 5,727

 

 

 

 1,470

 

 

ADMINISTRATION AND CORPORATE INFORMATION

 

 

 

SIBANYE STILLWATER LIMITED

(“Sibanye-Stillwater”, “the Company” and/or “the Group”)

Incorporated in the Republic of South Africa

Registration number 2014/243852/06

Share codes: SSW and SBSW

Issuer code: SSW

ISIN: ZAE000259701

 

LISTINGS

JSE: SSW

NYSE: SBSW

 

WEBSITE

www.sibanyestillwater.com

 

REGISTERED OFFICE

Constantia Office Park

Bridgeview House, Building 11, Ground Floor

Cnr 14th Avenue & Hendrik Potgieter Road

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

Email:

[email protected] or [email protected]

 

CORPORATE SECRETARY

Lerato Matlosa

Email: [email protected]

 

In Europe:

Swiss Resource Cpaital AG

Jochen Staiger

[email protected]

www.resource-capital.ch

 

DIRECTORS

Vincent Maphai1,2 (Chairman)

Neal Froneman2 (CEO)

Charl Keyter2 (CFO)

Elaine Dorward-King1,3

Harry Kenyon-Slaney1,2

Jerry Vilakazi1,2

Keith Rayner1,2

Nkosemntu Nika1,2

Richard Menell1,2,4

Savannah Danson1,2

Susan van der Merwe1,2

Timothy Cumming1,2

 

Independent non-executive

2Appointed 24 February 2020

3 Appointed 27 March 2020

Lead Independent director

 

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

 

AUDITORS

Ernst & Young Inc. (EY)

102 Rivonia Road

Sandton

2196

South Africa

Tel: +27 11 772 3000

 

Private Bag X14

Sandton 2146

South Africa

 

 

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

 

 

FORWARD-LOOKING STATEMENT

The information in this document may contain forward-looking statements within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, among others, those relating to Sibanye Stillwater Limited’s (“Sibanye-Stillwater” or the “Group”) financial positions, business strategies, plans and objectives of management for future operations, are necessarily estimates reflecting the best judgment of the senior management and directors of Sibanye-Stillwater 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 document.

 

All statements other than statements of historical facts included in this document may be forward-looking statements. Forward-looking statements also often use words such as “will”, “forecast”, “potential”, “estimate”, “expect”, “plan”, “anticipate” and words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and should be considered in light of various important factors, including those set forth in this disclaimer. Readers are cautioned not to place undue reliance on such statements.

 

The important factors that could cause Sibanye-Stillwater’s actual results, performance or achievements to differ materially from estimates or projections contained in the forward-looking statements include, without limitation, Sibanye-Stillwater’s future financial position, plans, strategies, objectives, capital expenditures, projected costs and anticipated cost savings, financing plans, debt position and ability to reduce debt leverage; economic, business, political and social conditions in South Africa, Zimbabwe, the United States and elsewhere; plans and objectives of management for future operations; Sibanye-Stillwater’s ability to obtain the benefits of any streaming arrangements or pipeline financing; the ability of Sibanye-Stillwater to comply with loan and other covenants and restrictions and difficulties in obtaining additional financing or refinancing; Sibanye-Stillwater’s ability to service its bond instruments; changes in assumptions underlying Sibanye-Stillwater’s estimation of its current mineral reserves; any failure of a tailings storage facility; the ability to achieve anticipated efficiencies and other cost savings in connection with, and the ability to successfully integrate, past, ongoing and future acquisitions, as well as at existing operations; the ability of Sibanye-Stillwater to complete any ongoing or future acquisitions; the success of Sibanye-Stillwater’s business strategy and exploration and development activities; the ability of Sibanye-Stillwater to comply with requirements that it operate in ways that provide progressive benefits to affected communities; changes in the market price of gold and PGMs; the occurrence of hazards associated with underground and surface mining; any further downgrade of South Africa’s credit rating; a challenge regarding the title to any of Sibanye-Stillwater’s properties by claimants to land under restitution and other legislation; Sibanye-Stillwater’s ability to implement its strategy and any changes thereto; the occurrence of labour disruptions and industrial actions; the availability, terms and deployment of capital or credit; changes in the imposition of regulatory costs and relevant government regulations, particularly environmental, tax, health and safety regulations and new legislation affecting water, mining, mineral rights and business ownership, including any interpretation thereof which may be subject to dispute; the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental, health or safety issues; the concentration of all final refining activity and a large portion of Sibanye-Stillwater’s PGM sales from mine production in the United States with one entity; the identification of a material weakness in disclosure and internal controls over financial reporting; the effect of US tax reform legislation on Sibanye-Stillwater and its subsidiaries; the effect of South African Exchange Control Regulations on Sibanye-Stillwater’s financial flexibility; operating in new geographies and regulatory environments where Sibanye-Stillwater has no previous experience; power disruptions, constraints and cost increases; supply chain shortages and increases in the price of production inputs; the regional concentration of Sibanye-Stillwater’s operations; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary stoppages of mines for safety incidents and unplanned maintenance; Sibanye-Stillwater’s ability to hire and retain senior management or sufficient technically skilled employees, as well as its ability to achieve sufficient representation of historically disadvantaged South Africans (HDSAs) in its management positions; failure of Sibanye-Stillwater’s information technology and communications systems; the adequacy of Sibanye-Stillwater’s insurance coverage; social unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye-Stillwater’s South African-based operations; and the impact of HIV, tuberculosis and the spread of other contagious diseases, such as the coronavirus disease (COVID-19). Further details of potential risks and uncertainties affecting Sibanye-Stillwater are described in Sibanye-Stillwater’s filings with the Johannesburg Stock Exchange and the United States Securities and Exchange Commission, including the Integrated Annual Report 2019 and the Annual Report on Form 20-F for the fiscal year ended 31 December 2019.

 

These forward-looking statements speak only as of the date of the content. Sibanye-Stillwater expressly disclaims any obligation or undertaking to update or revise any forward-looking statement (except to the extent legally required). These forward-looking statements have not been reviewed or reported on by the Company’s external auditors

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Always up to date with the newsletter from SRC

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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