Wrap Text
Operating update for the quarter ended 30 September 2022,
SIBANYE STILLWATER LIMITED
(SIBANYE-STILLWATER)
Incorporated in the Republic of South Africa
Registration number 2014/243852/06
Share code: SSW and SBSW
Issuer code: SSW
ISIN: ZAE000259701
OPERATING UPDATE
QUARTER ENDED 30 SEPTEMBER 2022
Johannesburg, 3 November 2022: Sibanye Stillwater Limited (Sibanye-Stillwater or the Group) (JSE: SSW and NYSE: SBSW) is pleased to
provide an operating update for the quarter ended 30 September 2022, Group financial results are only provided on a six-monthly basis.
SALIENT FEATURES - QUARTER ENDED 30 SEPTEMBER 2022 (Q3 2022) COMPARED TO QUARTER ENDED 30 SEPTEMBER 2021 (Q3 2021)
- Production build-up to planned levels at the SA gold and Stillwater operation achieved during October 2022
- SA PGM operations impacted by Eskom load curtailment
- Five-year wage agreements concluded at the SA PGM Marikana and Rustenburg operations
- The K4 project is slightly ahead of budget and schedule and delivered initial 4E PGM production of 914 4Eoz during Q3 2022
- Increase stake in Keliber to 84.96%, securing majority control of the advanced Finnish lithium hydroxide project
US dollar SA rand
Quarter ended Quarter ended
Sep 2021 Jun 2022 Sep 2022 KEY STATISTICS Sep 2022 Jun 2022 Sep 2021
GROUP
1,017 571 496 US$m Adjusted EBITDA(1) Rm 8,455 8,897 14,877
14.63 15.59 17.05 R/US$ Average exchange rate using daily closing rate
AMERICAS REGION
US PGM underground operations(2,3)
144,325 107,650 85,889 oz 2E PGM production(2,3) kg 2,671 3,348 4,489
2,114 1,828 1,811 US$/2Eoz Average basket price R/2Eoz 30,878 28,499 30,924
179 122 52 US$m Adjusted EBITDA(1) Rm 895 1,909 2,622
968 1,503 1,815 US$/2Eoz All-in sustaining cost(4) R/2Eoz 30,947 23,437 14,156
US PGM recycling(2,3)
179,765 170,462 141,560 oz 3E PGM recycling(2,3) kg 4,403 5,302 5,591
4,386 2,799 3,378 US$/3Eoz Average basket price R/3Eoz 57,595 43,636 64,167
30 21 22 US$m Adjusted EBITDA(1) Rm 371 335 436
SOUTHERN AFRICA (SA) OPERATIONS
PGM operations(3)
500,073 412,958 432,143 oz 4E PGM production(3,5) kg 13,441 12,844 15,554
2,895 2,675 2,479 US$/4Eoz Average basket price R/4Eoz 42,269 41,699 42,347
721 578 489 US$m Adjusted EBITDA(1) Rm 8,332 9,012 10,542
1,093 1,183 1,127 US$/4Eoz All-in sustaining cost(4) R/4Eoz 19,211 18,438 15,992
Gold operations
293,761 54,592 204,672 oz Gold produced kg 6,366 1,698 9,137
1,781 1,877 1,723 US$/oz Average gold price R/kg 944,316 940,634 837,799
97 (156) (48) US$m Adjusted EBITDA(1) Rm (811) (2,426) 1,421
1,692 5,032 2,207 US$/oz All-in sustaining cost(4) R/kg 1,210,049 2,522,190 796,008
EUROPEAN REGION
Battery Metals - Sandouville refinery
- 2,919 1,653 tNi Nickel Production(6) tNi 1,653 2,919 -
- 30,261 22,553 US$/tNi Nickel equivalent average basket price(7) R/tNi 384,525 471,774 -
- 9 (14) US$m Adjusted EBITDA(1) Rm (246) 148 -
- 26,856 30,185 US$/tNi Nickel equivalent sustaining cost(8) R/tNi 514,654 418,683 -
(1) The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt
covenant formula. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be
considered in addition to and not as a substitute for other measures of financial performance and liquidity. For a reconciliation of profit/(loss) before royalties and tax to adjusted EBITDA, see
"Adjusted EBITDA reconciliation - Quarters"
(2) The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated to SA rand (rand). In addition to the US PGM operations'
underground production, the operation treats recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM recycling
represents palladium, platinum, and rhodium ounces fed to the furnace
(3) The Platinum Group Metals (PGM) production in the SA operations is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US operations is principally
platinum and palladium, referred to as 2E (2PGM) and US PGM recycling is principally platinum, palladium and rhodium referred to as 3E (3PGM)
(4) See "Salient features and cost benchmarks - Quarters" for the definition of All-in sustaining cost (AISC)
(5) The SA PGM production excludes the production associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the production including third party PoC, refer to
the "Reconciliation of operating cost excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters"
(6) The nickel production at the Sandouville refinery operations is principally nickel metal and nickel salts (liquid form), together referred to as nickel equivalent products
(7) The nickel equivalent average basket price per ton is the total nickel revenue adjusted for other income - non-product sales divided by the total nickel equivalent tons sold
(8) See "Salient features and cost benchmarks - Quarters Sibanye-Stillwater Sandouville Refinery" for a reconciliation of cost of sales before amortisation and depreciation to nickel equivalent
sustaining cost
Stock data for the Quarter ended 30 September 2022 JSE Limited - (SSW)
Number of shares in issue Price range per ordinary share (High/Low) R35.74 to R43.67
- at 30 September 2022 2,830,238,200 Average daily volume 11,117,281
- weighted average 2,830,102,345 NYSE - (SBSW); one ADR represents four ordinary shares
Free Float 99% Price range per ADR (High/Low) US$8.16 to US$10.66
Bloomberg/Reuters SSWSJ/SSWJ.J Average daily volume 3,251,823
OVERVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2022 COMPARED TO QUARTER ENDED 30 SEPTEMBER 2021
The Group has successfully navigated a challenging period, with production from the SA gold and the Stillwater operation building up
during Q3 2022 from the operational disruptions which occurred in the first half of the year and returning to normalised levels of production
during October 2022 at both of these operations. The SA PGM operations continued to deliver consistent operational results despite
challenges associated with Eskom load curtailment and the increased incidence of copper cable theft, which disrupted operations
during Q3 2022.
Significantly, a five-year wage agreement has been reached with the representative unions at the Rustenburg and Marikana operations.
This historic agreement, which was achieved peacefully, timeously and without the disruption experienced during the SA gold operations'
wage negotiations earlier this year, is expected to set the scene for five years of relative stability.
Despite deterioration in the global political and economic environment during the course of 2022, precious metals prices have remained
well supported and within historically high price ranges. Greater operational stability across the Group, should enable improved cost
management for 2023, ensuring more stable earnings and cash flow and consolidating the already robust Group financial position.
SAFE PRODUCTION
The improvement in Group safety indicators following reprioritisation of safety initiatives from mid-2021 and subsequent roll out of the "Fatal
Elimination Strategy" in January 2022, has been maintained during Q3 2022. The Group fatal injury frequency rate (FIFR) (per million hours
worked), excluding Sandouville (which was incorporated from Q1 2022) improved from 0.07 for Q3 2021 to 0.05 for Q3 2022, with the
serious injury frequency rate (SIFR) improving by 10% to 2.83 from 3.13 for Q3 2021. The Group lost day injury frequency rate (LDIFR) also
improved, by 9%, from 5.08 to 4.65, with the Group total recordable injury frequency rate (TRIFR) improving 13% year-on-year, from 6.20 to 5.40.
Not only has the sustained focus on and implementation of the "Fatal Elimination Strategy" led to reduced fatalities, but also to improved
injury metrics. Group fatalities have reduced by 64%, from eleven for the first nine months of 2021, to four for the same period in 2022. The SA gold
and US PGM operations also recorded another fatality free quarter despite the risks associated with resuming operations. This follows Q2 2022,
which was fatality free Group wide. Sadly, two fatalities were suffered at the SA PGM operations, which reaffirm the need to maintain a relentless
safety focus across the Group.
On 29 August 2022 at the Saffy shaft, Marikana operation, Mr. S. Tyobeka, a general worker, was involved in a winch and rigging related
incident. On 30 August 2022 a second fatality occurred at the Rowland shaft, Marikana operation, when Mr. M. Msiya, a fitter, was
involved in a mud rush incident. The board and management of Sibanye-Stillwater extend heartfelt condolences to the families, friends
and colleagues of Mr Tyobeka and Mr Msiya. Both incidents are being investigated with all relevant stakeholders and appropriate support
is being provided to the families of the deceased.
US PGM operations
Mined 2E PGM production from the US PGM operations of 85,889 2Eoz for Q3 2022 was 40% lower than for Q3 2021, primarily as a result of
the suspension of production at the Stillwater operation (Stillwater East and Stillwater West mine) for seven weeks following regional
flooding in Montana in mid-June 2022. The East Boulder operation was issued a Mine Health and Safety Administration (MSHA) stop order
which was in full effect from 18 to 29 September 2022, due to reporting of elevated nitrous oxide exposures. Subsequent investigations
highlighted gas testing equipment calibration issues and contaminated fuel as the primary concerns. This order remains in force, with most
restrictions eased following comprehensive feedback to MSHA on the investigation findings. Following thorough investigation, the Group is
assessing the introduction of battery powered equipment and the establishment of an additional intake airway.
As per the revised plan presented to the market during August 2022, lower planned production across the US PGM operations year-on-
year complicates comparisons (see https://www.sibanyestillwater.com/features/us-pgm-operations-review/) for detail.
Tonnes milled for Q3 2022 totalled 241kt, 37% lower than for Q3 2021 with plant head grade of 12.2g/t for Q3 2022 , 5% lower than for Q3 2021.
The Stillwater operations grade was affected by feeding and milling low grade reef sand to ensure adequate volumes of backfill for
stope support purposes post the flood event. Ongoing attrition amongst more experienced miners and geological and geotechnical
complexity affecting productivity at East Boulder is receiving increased management and supervisory input. Following the successful
ramp-up the grade normalised at the Stillwater operation in September with the East Boulder operation's grade expected to normalise in
November 2022.
The Stillwater operation resumed production in a phased manner from the end of July 2022, with production rates normalising during
October 2022. Production of 47,423 2Eoz, was 47% lower than for Q3 2021, with production approximately 34,000 2Eoz lower due to the
ramp up after the flooding event.
Production from East Boulder of 38,467 2Eoz, was 29% lower than for Q3 2021, primarily due to the MSHA stop order, compounded by the
issues detailed in the US PGM operations' repositioning presented in August 2022.
2E PGM sold for Q3 2022 of 69,534 2Eoz, was 48% lower year-on-year and 19% lower than 2E PGM mined production for the quarter, due to
the timing of deliveries in September 2022 which will reflect in sold ounces for Q4 2022.
AISC of US$1,815/2Eoz (R30,947/2Eoz) for Q3 2022 was 88% higher than for Q3 2021 (US$968, R14,156/2Eoz) due to lower production and
inflationary cost pressures, with ORD capital increasing by 110% year-on-year to US$42 million (R723 million) and sustaining capital
increasing by 76% to US$17 million (R293 million), primarily as a result of the repositioning of the US underground operations, with Stillwater
East expenditure which had previously been classified as project capital now reclassified as ORD and sustaining capital. Costs at the
Stillwater operation have been impacted by additional once-off flood recovery costs including road, piping and infrastructure repairs. At East Boulder
the availability of skills continues to be a challenge and therefore costs relating to contractors have risen. Continued inflationary pressure
on stores and premiums on contractor costs also contributed to the higher costs.
Implementation of the repositioned operational plan and accelerated development to restore operational flexibility, will result in elevated
costs in the medium term. As production begins to build up again and stope face availability improves, costs are expected to reduce
significantly with AISC planned to reduce to below US$1,000 (real 2022 terms) from 2026.
Total capital expenditure increased by 22% year-on-year for Q3 2022 to US$85 million (R1,450 million), with the increase in ORD and
sustaining capital comprising 70% or US$60 million (R1,016 million) of this and project capital 36% lower at US$25 million(R434 million) in line
with the reduced spending on the Stillwater East project and change in the classification of development from growth capital to ORD. A major
milestone for the quarter was the completion of the 56 East Footwall level which now ties into the Benbow decline, completed on
16 September 2022.
PGM recycling operations
Logistical issues affecting delivery of autocatalyst material highlighted during H1 2022 have continued into Q3 2022 and it is estimated that
there has been a significant reduction in receipts year-on year due to logistics issues and lower scrappage of cars, with higher 3E PGM
prices in Q3 2021 also incentivising used auto catalyst collection and strong scrap flows. The recycling operations fed an average of 17.7 tonnes
per day (tpd) for Q3 2022, 22% lower than for the comparable period in 2021. During Q3 2022, 1,548 tonnes of recycle material was
received while 1,630 tonnes was treated. At the end of Q3 2022, approximately 42 tonnes of recycle inventory was on hand, an 82 tonne
decrease versus the Q2 2022 ending inventory of 124 tonnes at the end of June 2022.
SA PGM operations
4E PGM production from the SA PGM operations was impacted by unprecedented power curtailment imposed by Eskom during Q3 and
a significant rise in copper cable theft. In addition, reduced output has been planned at the Siphumelele shaft owing to increased levels
of seismicity. Pleasingly, mining has safely progressed through the challenging ground conditions associated with the Hex River Fault at the
Bathopele mine, which has negatively impacted production during Q2 2022 and Q3 2022 and is expected to normalise by the end of Q4 2022.
Production of 432,143 4Eoz (excluding third party purchase of concentrate (PoC) for Q3 2022 was 14% lower than for the comparable
period in 2021, although production was 5% higher than for Q2 2022 despite the increased load curtailment. Severe load shedding
imposed by Eskom during September 2022 necessitated the curtailment of concentrator capacity across the SA PGM operations,
impacting processed output and sales for the quarter. Underground mining was less impacted by the load curtailment, resulting in
underground ore containing approximately 33,000 4Eoz being stockpiled on surface by the end of the quarter.
Third party PoC processed at the Marikana smelting and refining operations of 16,720 4Eoz was 22% higher year-on-year although the toll
concentrate processed during Q3 2021 fell away due to the tolling contract concluding. Total 4E PGM production (including PoC)
was 13% lower year-on-year at 448,863 4Eoz. Had the 33,000 4Eoz stockpile of mined material been processed, we estimate PGM
production from SA PGM operations (including PoC) would have been around 482,000 4Eoz, compared to 513,778 4Eoz for Q3 2021.
AISC (excluding PoC) for Q3 2022 of R19,211/4Eoz (US$1,127/4Eoz), was 20% higher than for Q3 2021 at R15,992/4Eoz (US$1,093/4Eoz)
primarily due to lower production, lower by-product credits and inflationary cost pressures. AISC (including PoC) of R20,143/4Eoz
(US$1,181/4Eoz) was also 21% higher year-on-year, with ORD 33% higher, largely as a result of the inclusion of K4 development and 6%
lower by-product credits due to lower production and specific third party processing agreements concluding.
4E PGM production from the Rustenburg operation for Q3 2022 of 179,438 4Eoz, was 2% lower year-on-year despite operational
challenges including severe Eskom load curtailment. Surface production increased by 43% due to processing of smelter slag from a third
party with underground production decreasing by 7% primarily due to power disruptions from Eskom load curtailment and cable theft.
Production from the Bathopele mine continued to be impacted by mining through the Hexriver fault and loss of available face at
Siphumelele due to seismicity. The Hexriver fault has largely been traversed and production is expected to improve from Q4 2022. A
stockpile of ore containing approximately 6,000 4Eoz built up as a result of Eskom load curtailment, impacted Q3 2022 production and unit
costs, contributing to a 4% year-on-year increase in AISC to R18,435/4Eoz (US$1,081/4Eoz). In addition to this, a 31% increase in by-product
credits (driven mainly by higher chrome revenue) more than offset a 15% increase in ORD and a 22% increase in sustaining capital year-on-year.
4E PGM production from the Kroondal operation of 48,120 4Eoz for Q3 2022 was 21% lower than for the comparable period in 2021. This
declining production output is expected due to the gradual ramp-down of the Simunye shaft, compounded by the load curtailment with
Kroondal building an ore stockpile containing approximately 7,000 4Eoz at the end of the quarter. AISC of R15,399/4Eoz (US$903/4Eoz) was
25% higher than for Q3 2021 primarily due to lower production and stockpile being built up at the end of the quarter.
4E PGM production for Q3 2022 from the Marikana operation (excluding third party PoC) of 163,596 4Eoz, was 23% lower than for Q3 2021,
with underground production 24% lower and surface production 11% lower. Underground production was impacted by safety stoppages,
cable theft and Eskom load curtailment. 4E PGM production (including PoC) of 180,316 4Eoz for Q3 2022 was 20% lower than for Q3 2021.
Third party concentrate processed at Marikana increased by 22% year-on-year to 16,720 4Eoz. The Marikana operation ended the quarter
with an ore stockpile containing approximately 20,000 4Eoz. Had this material been processed, PGM production from Marikana (incl PoC)
would have been around 200,000 4Eoz, compared to 226,591/4Eoz for Q3 2021. AISC (excluding third party PoC) for Q3 2022 of
R21,785/4Eoz (US$1,278/4Eoz), was 37% higher than for Q3 2021, primarily due to lower production, inflationary costs, ORD (+44%) and
lower by-product credits (-27%). Key inflationary costs were due to the high cost of steel, ammonia, chemicals, fuel and related products,
with AISC (including PoC) also increasing by 37% to R23,719/4Eoz (US$1,391/4Eoz) due to higher purchase of concentrate costs (+33%).
ORD costs increased with the ramp-up of K4 shaft as well as an increase in off-reef development at other shafts.
Attributable 4E PGM production from Mimosa of 28,670 4Eoz was in line with production for Q3 2021. AISC increased by 18% year-on-year
to US$1,234/4Eoz (R21,032/4Eoz) primarily due to a 119% increase in sustaining capital expenditure associated with the approved life of
mine extension project, which includes optimisation of the plant, construction of a new tailings storage facility and life of mine extension
development, which is expected to be completed in Q1 2024.
Attributable 4E PGM production from Platinum Mile of 12,319 4Eoz was 10% lower year-on-year due to 6% less tons processed, a decrease
in the built-up head grade and lower recoveries. AISC at Platinum Mile increased by 9% year-on-year to R11,283/4Eoz (US$662/4Eoz).
Chrome sales from the SA PGM operations for Q3 2022 of approximately 560kt were in line with Q3 2021. The chrome price received
increased by 33% to US$227/tonne (Q3 2021: US$171/tonne), underpinning a 37% increase in chrome revenue.
Capital expenditure of R1,263 million (US$74 million) for Q3 2022 was 33% higher than for the corresponding period in 2021 with ORD 33%
higher at R590 million (US$35 million), sustaining capital 4% higher at R465 million (US$27 million) and project capital 271% higher at
R208 million (US$12 million). The increase in project capital is linked to the K4 project at the Marikana operation during Q3 2022.
The K4 Project
The K4 project remains on schedule. First ore was hoisted during H1 2022 with first production of 914 4Eoz achieved during Q3 2022.
Development and reef tonnes hoisted was significantly higher for Q3 2022 than for Q2 2022. Project capital expenditure was R207 million
(US$12 million) in Q3 2022 (R56 million (US$4 million) in Q3 2021) project capital expenditure of R612 (US$48 million) million for the first
three months.
Five-year wage agreement secures operational stability
On 28 October 2022 a five-year wage agreement was reached with the representative unions at the Marikana and Rustenburg
operations, marking the conclusion of annual wage negotiations for 2022 to 2027.
The wage agreement is consistent with the recent inflation linked wage increases concluded in June 2022 at the SA gold operations. The wage
agreement comprises annual wage increases of 6% and above for bargaining unit employees (year one: R1,050 per month or 6%,
year two: R1,100 per month or 6%, year three: R1,250 per month or 6%, year four: R1,300 per month or 6% and year five: R1,400 per month
or 6%). Miners and artisans will receive average annual wage increases of 6% per annum for each of the five years.
The annual wage and benefit increases that have been agreed are in line with inflation and represents a total estimated average
increase in the wage bill, including all benefits, over the five-year period of approximately 6.3% per annum, which is in line with inflation
and the wage agreement reached at the SA gold operations in June 2022. Importantly the agreement secures a five-year period of
greater stability at the Rustenburg and Marikana operations and reduced risk of labour related disruptions, which will be beneficial for all
stakeholders.
SA gold operations
The build up to normalised levels of production at the SA gold operations following the industrial action from 9 March to 13 June 2022,
proceeded according to plan. Underground production commenced on 1 July after medical screening, training and acclimatisation of
returning employees was concluded, and comprehensive underground safety audits were completed, with work crews resuming
operating activities in a phased manner. Normalised production rates were achieved during October 2022. As a result, we believe that
comparison of operational statistics has limited value for this period.
Production from the SA gold operations (including DRDGOLD) for Q3 2022 of 6,366kg (204,672oz) was 30% lower compared with Q3 2021.
Gold production in Q3 2022 (excluding DRDGOLD) decreased by 36% to 4,913kg (157,957oz) due to the phased resumption of safe
production over the quarter.
AISC (including DRDGOLD) of R1,210,049/kg (US$2,207/oz) was 52% higher than for Q3 2021 with AISC (excluding DRDGOLD) 64% higher at
R1,348,531/kg (US$2,460/oz). The increase was a direct function of the 39% decrease in gold sold year-on-year with a working cost and SIB
capital increasing by 4% and 11% respectively, offset by a 35% decrease in ORD due to the reduced mining activity.
Normalisation of production over an extended period is expected to result in a significant reduction in unit cost during 2023. For Q3 2021,
AISC (excluding DRDGOLD) averaged R822,144/kg (US$1,748/oz).
Capital expenditure for Q3 2022 (excluding DRDGOLD) increased by 10% to R1,188 million (US$70 million) compared to the same period in
2021 due to a four-fold increase in project capital which offset a 35% decrease in ORD to R472 million (US$28 million). ORD declined due to
lower development metres in 2022 compared to 2021 as a result of the slow start-up process after the industrial action. SIB capital
increased 11% to R296 million (US$17 million) mainly due to expenditure on regulatory lamp room upgrades at all operations and electrical
and winder upgrades which commenced during the industrial action when the facilities and equipment were not in use. Project capital
increased to R420 million (US$25 million) with R315 million (US$18 million) spent on the Burnstone project and R105 million (US$6 million) on
the Kloof shaft deepening project.
Underground production from the Driefontein operation decreased by 34% to 1,640kg (52,727oz) compared to the same period in 2021
as a result of the phased return to work post industrial action, while surface production of 50kg (1,608oz) was 25% lower due to depletion
of surface reserves. AISC of R1,215,013/kg (US$2,216/oz) was 54% higher than for Q3 2021 primarily as a result of the 35% decrease in gold sold.
Underground production from the Kloof operation decreased by 50% to 1,393kg (44,786oz) with the underground yield 27% lower due to
a slower start at the higher grade 4 and 8 shafts. Production from surface sources of 190kg (6,109oz), was 25% lower year-on-year due to a
slow onboarding of a surface transport contractor after the strike as well as depletion of the surface rock dump reserves. AISC of
R1,527,554/kg (US$2,787/oz) was 80% higher than for Q3 2021, primarily due to 50% lower gold sold as a result of the phased build-up after
the industrial action.
Underground production of 1,321kg (42,471oz) in Q3 2022 from the Beatrix operation was 26% lower than Q3 2021 with tonnes milled only
11% lower year-on-year despite the industrial action and the gradual return to work. This was due to the processing of underground ore
which was stockpiled from late January 2022 while precautionary reinforcement and buttressing work was being done on the Beatrix
tailings storage facility. The underground yield declined by 17% due to less production from the higher grade 4 Shaft which was affected
by a loss of face length and safety stoppages. Gold production from surface sources was suspended for the period as the focus was
placed on milling underground stockpile tonnages first. AISC of R1,424,025/kg (US$2,598/oz) was 72% higher than Q3 2021, primarily due to
35% less gold sold during the production build-up after the industrial action and higher working cost due to above inflationary increases,
and the additional cost associated with ramping up the operations to normalised production levels.
Surface gold production from Cooke operations increased by 10% to 319kg (10,256oz) due to slightly increased tonnes milled and yield
with AISC increasing by 9% year-on-year to R861,736/kg (US$1,572/oz).
DRDGOLD surface tonnes milled decreased by 4% year-on-year, however with a 4% increase in grade, gold production of 1,453kg
(46,715oz) remained in line with Q3 2021. AISC of R765,603/kg (US$1,397/oz) increased by 18% year-on-year primarily due to industry wide
inflationary effects and a 51% increase in sustaining capital, reflecting investment in new pump stations and piping at the ERGO
operations. DRDGOLD project capital also increased from R14 million (US$1 million) in Q3 2021 to R53 million (US$3 million) in Q3 2022 with
spending on the solar power plant and the Far West Gold Recoveries project at the Driefontein 2 reclamation plant.
Consultations regarding possible restructuring of Beatrix 4 shaft and Kloof 1 plant
On 1 November 2022, organised labour and other potentially affected stakeholders were notified that the company would be entering
into consultation in terms of S189A of the Labour Relations Act (S189) regarding the possible restructuring of its SA gold operations pursuant
to ongoing losses experienced at the Beatrix 4 shaft and the impact of depleting mineral reserves to the Kloof 1 plant.
The life of the Beatrix 4 shaft was previously prolonged, following S189 consultations in 2017, which, through the successful adoption of
productivity enhancement and cost containment measures implemented following consultation with stakeholders, enabled it to remain
in operation as long as it made a profit, on average, over any continuous period of three months (after accounting for AISC).
It is anticipated that the consultation process will reduce the number of employees that may potentially be retrenched through the
implementation of possible retrenchment avoidance measures, including natural attrition, retirements, voluntary retrenchment and the
transfer of suitably skilled employees to vacant positions.
We are committed to minimising the impact of the proposed restructuring and will engage with all relevant stakeholders in an effort to
avoid job losses, while attempting to limit the impact on the remainder of the operations and employees at the SA gold operations and
the sustainability of the Group.
The Burnstone project
Progress on the project was adversely affected by the industrial action during H1 2022, resulting delays in underground development. In addition
due to logistics issues, there have been delays in the delivery of critical spares from Europe. Labour procurement has been slower than expected
due to the unavailability of skilled operators from surrounding areas. Project capital guidance remains unchanged at R1.1 billion (US$73 million) with
R644 million (US$40 million) spent to date (R329 million (US$21 million) in H1 2022 and R315 million (US$18 million) in Q3 2022).
Sandouville nickel refinery
The integration of the Sandouville nickel refinery into the Group continued during Q3 2022. Sandouville faced various operational and
logistics issues during Q3 2022, including solvent supply constraints, and engineering failures in July 2022 which temporarily took 40% of
capacity offline. In addition, a four week technical shutdown commenced in September 2022 with operations recommencing in mid
October 2022. The Sandouville nickel refinery produced 1,003 tonnes of nickel metal in Q3 2022 (2,251 tonnes in Q2 2022), 650 tonnes of
nickel salts (668 tonnes in Q2 2022) and 37 tonnes of cobalt chloride (78 tonnes in Q2 2022) at a nickel equivalent sustaining cost of
US$30,185/tNi (R514,654/tNi), 12% higher than Q2 2022.
Integration is focused on: recruitment, implementing rigorous maintenance programs and increasing critical spares. The focus is on
continuity and stability of production by de-bottlenecking the plant to increase throughput to nameplate capacity of c.12kt of Ni metal,
c.4kt of Ni salts and c.600t of CoCl2 by 2026.
Recent increases in electricity and gas prices have reduced the gross operating margin and pose an ongoing risk to costs especially the
future supply and availability of European energy and gas during the upcoming winter season.
In parallel with the current plant production, Sibanye-Stillwater continues to advance pre-feasibility studies on the following three
processes, expected to be completed during 2023:
- Producing battery grade nickel sulphate with the intention of producing 44,000 tonnes per year in two stages
- PGM autocatalyst recycling using European feedstocks
- Battery metals recycling
Further announcements will be made on these developments when the studies have been concluded.
STRATEGIC DEVELOPMENTS
Increased shareholding in Keliber Oy (Keliber)
On 30 June 2022, the Group announced its intention to exercise its pre-emptive right to increase its shareholding in Keliber to 50% plus one
share for a cash consideration of approximately EUR146 million. A simultaneous voluntary cash offer was made to minority shareholders of
Keliber, other than the Finnish Minerals Group, which increased Sibanye-Stillwater's shareholding in Keliber to an effective 84.96% for a
further cash consideration of approximately EUR189.8 million excluding Finnish transfer tax of EUR2.3 million.
The Finnish Minerals Group, a Finnish State-owned holding and development company which manages the state's mining industry
shareholdings and is the second largest shareholder in Keliber behind Sibanye-Stillwater has a current effective holding of 13.90% in Keliber
with the other remaining minority shareholders holding an effective 1.14%.
With the voluntary offer now concluded, a capital raise by Keliber will be executed to achieve Keliber's desired debt to equity ratio. The maximum
total investment by Sibanye-Stillwater in the proposed capital raise is around EUR104 million depending on the extent to which minorities and
the Finnish Minerals Group participate. Conventional debt facilities are currently under discussion with third party lenders to
at least match the EUR250 million equity contribution to fully fund construction of the project.
Keliber is aiming to be the first fully integrated lithium producer in Europe supplying approximately 15,000 tonnes of lithium hydroxide
monohydrate per annum into the developing European battery industry. A recent definitive feasibility study and a 31% increase in ore
reserves has confirmed the quality and inherent value of the Keliber project with the fundamental outlook for the lithium market improving
significantly since Sibanye-Stillwater acquired its initial stake in Q1 2021.
The transactions secure a significant and controlling exposure for the Group in Keliber, which offers significant growth potential and a
valuable footprint in a supportive and attractive jurisdiction to supply critical battery metals into the burgeoning European battery
industry.
OPERATING GUIDANCE FOR THE 2022 YEAR(1)
As previously announced on 11 August 2022, forecast mined 2E PGM production from the US PGM operations for 2022 was revised to
between 445,000 2Eoz and 460,000 2Eoz, with AISC of between US$1,380/2Eoz and US$1,425/2Eoz due to the impact of the regional flood
and the repositioning of the operations following the optimisation planning carried out during H1 2022. Due to disruptions experienced
during Q3 2022 and ongoing issues with employee attrition and skills availability, production for 2022 is likely to be at the lower end of the
range provided with costs at the upper end of the range. Capital expenditure is forecast to be between US$275 million and US$285 million
(including US$70 million of project capital).
As a result of the challenges highlighted with collection and receipt of used autocatalysts, recycling feed rates have declined
significantly and are likely to remain constrained until year end. The US Recycling operations are therefore forecast to feed between
610,000 and 625,000 3Eoz for 2022, with minimal capital expenditure.
Forecast 4E PGM production from the SA PGM operations(2) for 2022 remains at between 1,750,000 4Eoz and 1,850,000 4Eoz with AISC
between R18,500/4Eoz and R19,200/4Eoz (US$1,233/4Eoz and US$1,280/4Eoz). Capital expenditure is forecast at R4.8 billion (US$320 million)
including R950 million (US$63 million) for the K4 project during 2022.
Guidance for gold production from the managed SA gold operations (excluding DRDGOLD) is maintained at between 14,000kg
(450,000oz) and 14,500kg (466,000oz) with AISC between R1,390,000/kg (US$2,880/oz) and R1,470,000/kg (US$3,060/oz). Capital
expenditure is forecast at R3.9 billion (US$260 million), including R1.1 billion (US$73 million) on the Burnstone project and
R270 million (US$18 million) on the Kloof 4 deepening project.
(1) The dollar cost conversions for 2022 are based on an average exchange rate of R15.00/US$
(2) SA PGM guidance includes third party PoC
NEAL FRONEMAN
CHIEF EXECUTIVE OFFICER
SALIENT FEATURES AND COST BENCHMARKS - QUARTERS
US and SA PGM operations
US OPERATIONS SA OPERATIONS
Total US Total US Total SA PGM(1) Rustenburg Marikana(1) Kroondal Plat Mile Mimosa
and SA PGM(1) PGM
Underground(2) Total Underground Surface Underground Surface Underground Surface Attributable Surface Attributable
Production
Tonnes milled/treated 000't Sep 2022 9,625 241 9,383 4,303 5,081 1,666 1,418 1,515 927 782 2,736 340
Jun 2022 9,641 299 9,342 4,328 5,014 1,552 1,385 1,602 952 814 2,677 360
Sep 2021 10,747 384 10,363 4,964 5,399 1,778 1,442 1,889 1,044 945 2,913 352
Plant head grade g/t Sep 2022 2.21 12.23 1.96 3.30 0.82 3.34 1.03 3.70 0.87 2.33 0.69 3.52
Jun 2022 2.25 12.41 1.92 3.23 0.79 3.26 0.95 3.57 0.87 2.39 0.68 3.49
Sep 2021 2.46 12.92 2.08 3.40 0.86 3.37 1.17 3.89 0.87 2.40 0.71 3.58
Plant recoveries % Sep 2022 75.59 89.25 73.19 85.09 32.61 86.52 52.47 87.06 25.94 82.17 20.30 74.44
Jun 2022 74.79 90.93 71.59 84.87 24.75 86.28 36.61 86.90 23.91 82.81 16.50 73.06
Sep 2021 75.69 90.62 72.27 85.07 25.78 86.38 31.72 86.92 25.85 83.77 20.64 71.01
Yield g/t Sep 2022 1.67 10.92 1.43 2.81 0.27 2.89 0.54 3.22 0.23 1.91 0.14 2.62
Jun 2022 1.68 11.28 1.37 2.74 0.20 2.81 0.35 3.10 0.21 1.98 0.11 2.55
Sep 2021 1.86 11.71 1.50 2.89 0.22 2.91 0.37 3.38 0.22 2.01 0.15 2.54
PGM production(3) 4Eoz - 2Eoz Sep 2022 518,032 85,889 432,143 388,460 43,683 154,797 24,641 156,873 6,723 48,120 12,319 28,670
Jun 2022 520,608 107,650 412,958 381,445 31,513 140,344 15,487 159,793 6,368 51,797 9,658 29,511
Sep 2021 644,398 144,325 500,073 461,593 38,480 166,400 17,206 205,340 7,548 61,083 13,726 28,770
PGM sold(4) 4Eoz - 2Eoz Sep 2022 471,994 69,534 402,460 137,246 16,578 160,115 48,120 12,319 28,082
Jun 2022 521,579 127,047 394,532 111,494 17,887 176,830 51,797 9,658 26,866
Sep 2021 592,631 132,637 459,994 144,461 16,088 196,251 61,083 13,726 28,385
Price and cost(5)
Average PGM basket price(6) R/4Eoz - R/2Eoz Sep 2022 40,485 30,878 42,269 43,331 34,278 42,033 44,972 33,714 33,412
Jun 2022 38,309 28,499 41,699 42,844 28,408 42,147 44,461 30,080 32,363
Sep 2021 39,662 30,924 42,347 43,089 28,266 42,247 46,357 34,642 33,392
Average PGM basket price(6) US$/4Eoz - US$/2Eoz Sep 2022 2,374 1,811 2,479 2,541 2,010 2,465 2,638 1,977 1,960
Jun 2022 2,457 1,828 2,675 2,748 1,822 2,703 2,852 1,929 2,076
Sep 2021 2,711 2,114 2,895 2,945 1,932 2,888 3,169 2,368 2,282
Operating cost(7) R/t Sep 2022 1,043 7,504 871 1,764 279 1,459 1,049 58 1,493
Jun 2022 1,037 6,478 856 1,843 229 1,374 1,053 53 1,292
Sep 2021 928 4,932 775 1,575 244 1,233 894 48 1,173
Operating cost(7) US$/t Sep 2022 61 440 51 103 16 86 62 3 88
Jun 2022 67 416 55 118 15 88 68 3 83
Sep 2021 63 337 53 108 17 84 61 3 80
Operating cost(7) R/4Eoz - R/2Eoz Sep 2022 19,793 21,085 19,518 18,986 16,071 21,767 17,041 12,907 17,719
Jun 2022 19,593 17,993 20,042 20,378 20,469 21,118 16,545 14,703 15,757
Sep 2021 15,673 13,123 16,454 16,833 20,458 16,990 13,834 10,200 14,355
Operating cost(7) US$/4Eoz - US$/2Eoz Sep 2022 1,161 1,237 1,145 1,114 943 1,277 999 757 1,039
Jun 2022 1,257 1,154 1,286 1,307 1,313 1,355 1,061 943 1,011
Sep 2021 1,071 897 1,125 1,151 1,398 1,161 946 697 98
All-in sustaining cost(8) R/4Eoz - R/2Eoz Sep 2022 21,271 30,947 19,211 18,435 21,785 15,399 11,283 21,032
Jun 2022 19,534 23,437 18,438 18,129 20,107 14,904 13,667 16,062
Sep 2021 15,561 14,156 15,992 17,701 15,933 12,327 10,345 15,294
All-in sustaining cost(8) US$/4Eoz - US$/2Eoz Sep 2022 1,248 1,815 1,127 1,081 1,278 903 662 1,234
Jun 2022 1,253 1,503 1,183 1,163 1,290 956 877 1,030
Sep 2021 1,064 968 1,093 1,210 1,089 843 707 1,045
All-in cost(8) R/4Eoz - R/2Eoz Sep 2022 22,582 36,000 19,726 18,441 23,051 15,399 11,283 21,032
Jun 2022 20,389 25,397 18,983 18,129 21,365 14,904 13,667 16,062
Sep 2021 16,609 18,195 16,123 17,701 16,224 12,327 10,345 15,294
All-in cost(8) US$/4Eoz - US$/2Eoz Sep 2022 1,324 2,111 1,157 1,082 1,352 903 662 1,234
Jun 2022 1,308 1,629 1,218 1,163 1,370 956 877 1,030
Sep 2021 1,135 1,244 1,102 1,210 1,109 843 707 1,045
Capital expenditure(5)
Ore reserve development Rm Sep 2022 1,313 723 590 194 396 - - -
Jun 2022 1,196 641 555 173 382 - - -
Sep 2021 739 296 443 168 275 - - -
Sustaining capital Rm Sep 2022 758 293 465 140 242 80 3 258
Jun 2022 640 211 429 148 208 68 5 181
Sep 2021 592 143 449 115 268 58 8 118
Corporate and projects Rm Sep 2022 642 434 208 1 207 - - -
Jun 2022 412 211 201 - 201 - - -
Sep 2021 639 583 56 - 56 - - -
Total capital expenditure Rm Sep 2022 2,713 1,450 1,263 335 845 80 3 258
Jun 2022 2,248 1,063 1,185 321 791 68 5 181
Sep 2021 1,970 1,022 948 283 599 58 8 118
Total capital expenditure US$m Sep 2022 159 85 74 20 50 5 - 15
Jun 2022 144 68 76 21 51 4 - 12
Sep 2021 135 70 65 19 41 4 1 8
Average exchange rate for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R17.05/US$, R15.59/US$ and R14.63/US$, respectively
Figures may not add as they are rounded independently
(1) The Total US and SA PGM, Total SA PGM and Marikana excludes the production and costs associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the
Operating cost, AISC and AIC excluding third party PoC, refer to "Reconciliation of operating cost excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters"
and "Reconciliation of AISC and AIC excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters"
(2) The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated into rand. In addition to the US PGM operations' underground
production, the operation treats recycling material which is excluded from the statistics shown above and is detailed in the PGM recycling table below
(3) Production per product - see prill split in the table below
(4) PGM sold includes the third party PoC ounces sold
(5) The Total US and SA PGM and Total SA PGM operations' unit cost benchmarks and capital expenditure exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales
(6) The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment
(7) 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
(8) 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 cost, see "All-in costs - Quarters"
Mining - PGM Prill split including third party PoC, excluding recycling operations
GROUP PGM SA OPERATIONS US OPERATIONS
Sep 2022 Jun 2022 Sep 2021 Sep 2022 Jun 2022 Sep 2021 Sep 2022 Jun 2022 Sep 2021
% % % % % % % % %
Platinum 286,103 54% 278,511 52% 336,620 51% 265,975 59% 253,999 59% 304,116 59% 20,128 23% 24,512 23% 32,504 23%
Palladium 200,137 37% 210,930 39% 265,876 40% 134,376 30% 127,792 30% 154,055 30% 65,761 77% 83,138 77% 111,821 77%
Rhodium 40,296 8% 37,880 7% 44,433 7% 40,296 9% 37,880 9% 44,433 9%
Gold 8,216 2% 7,942 2% 11,174 2% 8,216 2% 7,942 2% 11,174 2%
PGM production 4E/2E 534,752 100% 535,262 100% 658,103 100% 448,863 100% 427,612 100% 513,778 100% 85,889 100% 107,650 100% 144,325 100%
Ruthenium 64,192 59,933 80,065 64,192 59,933 80,065
Iridium 16,034 15,299 18,451 16,034 15,299 18,451
Total 6E/2E 614,978 610,494 756,619 529,089 502,844 612,294 85,889 107,650 144,325
Recycling at US operations
Unit Sep 2022 Jun 2022 Sep 2021
Average catalyst fed/day Tonne 17.7 22.0 22.7
Total processed Tonne 1,630 2,004 2,087
Tolled Tonne - - 23
Purchased Tonne 1,630 2,004 2,064
PGM fed 3Eoz 141,560 170,462 179,765
PGM sold 3Eoz 162,659 213,988 183,734
PGM tolled returned 3Eoz 4,715 1,878 99
SA gold operations
SA OPERATIONS
Total SA gold Driefontein Kloof Beatrix Cooke DRDGOLD
Under- Under- Under- Under-
Total ground Surface ground Surface ground Surface ground Surface Surface Surface
Production
Tonnes milled/treated 000't Sep 2022 10,237 1,117 9,120 290 123 336 620 490 18 1,202 7,157
Jun 2022 8,123 - 8,123 - 5 - 40 - - 1,014 7,064
Sep 2021 11,199 1,474 9,725 432 164 493 855 549 103 1,182 7,421
Yield g/t Sep 2022 0.62 3.90 0.22 5.65 0.41 4.14 0.31 2.69 - 0.27 0.20
Jun 2022 0.21 - 0.20 - - - 0.28 - - 0.19 0.20
Sep 2021 0.82 4.78 0.21 5.72 0.41 5.68 0.30 3.24 0.29 0.25 0.20
Gold produced kg Sep 2022 6,366 4,354 2,012 1,640 50 1,393 190 1,321 - 319 1,453
Jun 2022 1,698 49 1,649 7 - 20 11 22 - 195 1,443
Sep 2021 9,137 7,048 2,089 2,470 67 2,801 253 1,777 30 290 1,449
oz Sep 2022 204,672 139,984 64,687 52,727 1,608 44,786 6,109 42,471 - 10,256 46,715
Jun 2022 54,592 1,575 53,017 225 - 643 354 707 - 6,269 46,394
Sep 2021 293,761 226,598 67,163 79,412 2,154 90,054 8,134 57,132 965 9,324 46,586
Gold sold kg Sep 2022 6,070 4,095 1,975 1,524 48 1,314 174 1,257 - 311 1,442
Jun 2022 1,735 129 1,606 9 - 14 1 106 - 159 1,446
Sep 2021 9,069 7,025 2,044 2,375 47 2,742 247 1,908 30 292 1,428
oz Sep 2022 195,155 131,657 63,498 48,998 1,543 42,246 5,594 40,413 - 9,999 46,361
Jun 2022 55,782 4,147 51,634 289 - 450 32 3,408 - 5,112 46,490
Sep 2021 291,575 225,859 65,716 76,358 1,511 88,157 7,941 61,344 965 9,388 45,911
Price and costs
Gold price received R/kg Sep 2022 944,316 944,020 944,220 942,721 945,338 945,908
Jun 2022 940,634 1,000,000 1,000,000 962,264 930,818 939,142
Sep 2021 837,799 839,389 836,066 834,881 842,466 841,737
Gold price received US$/oz Sep 2022 1,723 1,722 1,722 1,720 1,725 1,726
Jun 2022 1,877 1,995 1,995 1,920 1,857 1,874
Sep 2021 1,781 1,785 1,777 1,775 1,791 1,790
Operating cost(1) R/t Sep 2022 645 4,573 163 5,623 359 5,388 305 3,393 1,222 214 137
Jun 2022 463 - 151 - - - 1,825 - - 178 136
Sep 2021 537 3,157 139 3,438 159 3,907 251 2,262 204 184 118
US$/t Sep 2022 38 268 10 330 21 316 18 199 72 13 8
Jun 2022 30 - 10 - - - 117 - - 11 9
Sep 2021 37 216 10 235 11 267 17 155 14 13 8
R/kg Sep 2022 1,036,601 1,173,404 740,557 995,732 880,000 1,300,790 994,737 1,259,652 - 805,643 673,090
Jun 2022 2,214,370 51,632,653 745,907 131,285,714 - 50,200,000 6,636,364 27,590,909 - 923,077 664,588
Sep 2021 657,656 660,187 649,114 601,215 388,060 687,612 849,802 698,931 700,000 751,724 604,555
US$/oz Sep 2022 1,891 2,141 1,351 1,816 1,605 2,373 1,815 2,298 - 1,470 1,228
Jun 2022 4,418 103,012 1,488 261,927 - 100,154 13,240 55,046 - 1,842 1,326
Sep 2021 1,398 1,404 1,380 1,278 825 1,462 1,807 1,486 1,488 1,598 1,285
All-in sustaining cost(2) R/kg Sep 2022 1,210,049 1,215,013 1,527,554 1,424,025 861,736 765,603
Jun 2022 2,522,190 110,222,222 76,266,667 7,264,151 1,056,604 899,723
Sep 2021 796,008 790,669 848,444 825,593 787,671 649,860
All-in sustaining cost(2) US$/oz Sep 2022 2,207 2,216 2,787 2,598 1,572 1,397
Jun 2022 5,032 219,903 152,159 14,493 2,108 1,795
Sep 2021 1,692 1,681 1,804 1,755 1,675 1,382
All-in cost(2) R/kg Sep 2022 1,293,245 1,215,013 1,598,118 1,424,025 861,736 802,358
Jun 2022 2,663,977 110,222,222 77,600,000 7,264,151 1,056,604 887,967
Sep 2021 809,792 790,669 862,830 826,625 787,671 659,664
All-in cost(2) US$/oz Sep 2022 2,359 2,216 2,915 2,598 1,572 1,464
Jun 2022 5,315 219,903 154,819 14,493 2,108 1,772
Sep 2021 1,722 1,681 1,834 1,757 1,675 1,402
Capital expenditure
Ore reserve development Rm Sep 2022 472 208 174 90 - -
Jun 2022 - - - - - -
Sep 2021 729 324 270 135 - -
Sustaining capital Rm Sep 2022 409 109 150 37 - 113
Jun 2022 455 35 58 32 - 330
Sep 2021 342 94 128 45 - 75
Corporate and projects(3) Rm Sep 2022 488 - 105 - - 53
Jun 2022 220 - 20 - - (17)
Sep 2021 97 - 43 2 - 14
Total capital expenditure Rm Sep 2022 1,369 317 429 127 - 166
Jun 2022 675 35 78 32 - 313
Sep 2021 1,168 418 441 182 - 89
Total capital expenditure US$m Sep 2022 80 19 25 7 - 10
Jun 2022 43 2 5 2 - 20
Sep 2021 80 29 30 12 - 6
Average exchange rates for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R17.05/US$, R15.59/US$ and R14.63/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) are 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 cost, see "All-in costs - Quarters"
(3) Corporate project expenditure for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R330 million (US$19 million), R217 million (US$14 million) and R38 million (US$3
million), respectively, the majority of which related to the Burnstone project
European operations
Sibanye-Stillwater Sandouville Refinery
Battery Metal Split
Sep 2022 Jun 2022
Volumes produced (tons) % %
Nickel Salts(1) 650 39% 668 23%
Nickel Metal 1,003 61% 2,251 77%
Total Nickel Production tNi 1,653 100% 2,919 100%
Nickel Cakes(2) 68 123
Cobalt Chloride (CoCl2)(3) 37 78
Ferric Chloride (FeCl3)(3) 321 608
Volumes sales (tons)
Nickel Salts(1) 529 31% 609 20%
Nickel Metal 1,177 69% 2,367 80%
Total Nickel Sold tNi 1,706 100% 2,976 100%
Cobalt Chloride (CoCl2)(3) 51 95
Ferric Chloride (FeCl3)(3) 321 608
Nickel equivalent basket price Unit Sep 2022 Jun 2022
Nickel equivalent average basket price R/tNi 384,525 471,774
US$/tNi 22,553 30,261
Nickel equivalent sustaining cost Unit Sep 2022 Jun 2022
Cost of sales, before amortisation and depreciation Rm 882 1,260
Carbon tax Rm - -
Community costs Rm - -
Share-based payments Rm - -
Rehabilitation interest and amortisation Rm 1 1
Leases Rm 15 10
Sustaining capital expenditure Rm 23 19
Less: By-product credit Rm (43) (44)
Nickel equivalent sustaining cost Rm 878 1,246
Nickel Products sold tNi 1,706 2,976
Nickel equivalent sustaining cost R/tNi 514,654 418,683
US$/tNi 30,185 26,856
Nickel recovery yield(4) % 95.04% 99.36%
Average exchange rates for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R17.05/US$, R15.59/US$ and R14.63/US$, respectively
(1) Nickel salts consist of anhydrous nickel, nickel chloride low sodium, nickel chloride standard, nickel carbonate and nickel chloride solution
(2) Nickel cakes occur during the processing of nickel matte and are recycled back into the nickel refining process
(3) Cobalt chloride and ferric chloride are obtained from nickel matte through a different refining process on an order basis
(4) Nickel recovery yield is the percentage of total nickel recovered from the matte relative to the nickel contained in the matte received
ALL-IN COSTS - QUARTERS
SA and US PGM operations
Figures are in millions unless otherwise stated
US SA OPERATIONS
OPERATIONS
Total US and SA Total US Total SA Rustenburg Marikana(1) Kroondal Plat Mile Mimosa Corporate
PGM(1) PGM(2) PGM(1)
R' million
Cost of sales, before amortisation and depreciation(3) Sep 2022 9,416 1,413 8,003 3,218 3,758 868 159 511 (511)
Jun 2022 9,696 2,045 7,651 3,208 3,364 937 142 461 (461)
Sep 2021 9,598 1,820 7,778 2,647 4,077 914 140 419 (419)
Royalties Sep 2022 374 - 374 258 112 4 - 26 (26)
Jun 2022 316 - 316 94 219 3 - 39 (39)
Sep 2021 573 - 573 269 302 2 - 42 (42)
Carbon tax Sep 2022 (1) - (1) - - (1) - - -
Jun 2022 1 - 1 - 1 - - - -
Sep 2021 (1) - (1) - (1) - - - -
Community costs Sep 2022 22 - 22 - 22 - - - -
Jun 2022 54 - 54 - 54 - - - -
Sep 2021 92 - 92 3 89 - - - -
Inventory change Sep 2022 1,462 398 1,064 375 689 - - (3) 3
Jun 2022 913 (108) 1,021 232 789 - - 4 (4)
Sep 2021 982 74 908 711 197 - - (6) 6
Share-based payments(4) Sep 2022 54 12 42 16 19 7 - - -
Jun 2022 147 68 79 29 35 14 1 - -
Sep 2021 50 21 29 12 13 4 - - -
Rehabilitation interest and amortisation(5) Sep 2022 35 13 22 (8) 10 20 - 1 (1)
Jun 2022 53 13 40 1 20 19 - 11 (11)
Sep 2021 64 8 56 (1) 40 17 - 1 (1)
Leases Sep 2022 16 2 14 3 10 1 - - -
Jun 2022 15 1 14 3 9 2 - - -
Sep 2021 12 - 12 2 9 1 - - -
Ore reserve development Sep 2022 1,313 723 590 194 396 - - - -
Jun 2022 1,196 641 555 173 382 - - - -
Sep 2021 739 296 443 168 275 - - - -
Sustaining capital expenditure Sep 2022 758 293 465 140 242 80 3 258 (258)
Jun 2022 640 211 429 148 208 68 5 181 (181)
Sep 2021 592 143 449 115 268 58 8 118 (118)
Less: By-product credit Sep 2022 (2,327) (196) (2,131) (888) (981) (238) (23) (190) 189
Jun 2022 (2,940) (348) (2,592) (1,063) (1,242) (271) (16) (222) 222
Sep 2021 (2,591) (319) (2,272) (676) (1,347) (243) (6) (134) 134
Total All-in-sustaining costs(6) Sep 2022 11,122 2,658 8,464 3,308 4,277 741 139 603 (604)
Jun 2022 10,091 2,523 7,568 2,825 3,839 772 132 474 (474)
Sep 2021 10,110 2,043 8,067 3,250 3,922 753 142 440 (440)
Plus: Corporate cost, growth and capital expenditure Sep 2022 642 434 208 1 207 - - - -
Jun 2022 420 211 209 - 209 - - - -
Sep 2021 645 583 62 - 62 - - - -
Total All-in-costs(6) Sep 2022 11,764 3,092 8,672 3,309 4,484 741 139 603 (604)
Jun 2022 10,511 2,734 7,777 2,825 4,048 772 132 474 (474)
Sep 2021 10,755 2,626 8,129 3,250 3,984 753 142 440 (440)
PGM production 4Eoz - 2Eoz Sep 2022 534,752 85,889 448,863 179,438 180,316 48,120 12,319 28,670 -
Jun 2022 535,262 107,650 427,612 155,831 180,815 51,797 9,658 29,511 -
Sep 2021 658,101 144,325 513,776 183,606 226,591 61,083 13,726 28,770 -
kg Sep 2022 16,633 2,671 13,961 5,581 5,608 1,497 383 892 -
Jun 2022 16,649 3,348 13,300 4,847 5,624 1,611 300 918 -
Sep 2021 20,469 4,489 15,980 5,711 7,048 1,900 427 895 -
All-in-sustaining cost R/4Eoz - R/2Eoz Sep 2022 21,977 30,947 20,143 18,435 23,719 15,399 11,283 21,032 -
Jun 2022 19,953 23,437 19,010 18,129 21,232 14,904 13,667 16,062 -
Sep 2021 16,065 14,156 16,633 17,701 17,309 12,327 10,345 15,294 -
US$/4Eoz - US$/2Eoz Sep 2022 1,289 1,815 1,181 1,081 1,391 903 662 1,234 -
Jun 2022 1,280 1,503 1,219 1,163 1,362 956 877 1,030 -
Sep 2021 1,098 968 1,137 1,210 1,183 843 707 1,045 -
All-in-cost R/4Eoz - R/2Eoz Sep 2022 23,245 36,000 20,638 18,441 24,867 15,399 11,283 21,032 -
Jun 2022 20,783 25,397 19,535 18,129 22,388 14,904 13,667 16,062 -
Sep 2021 17,090 18,195 16,761 17,701 17,582 12,327 10,345 15,294 -
US$/4Eoz - US$/2Eoz Sep 2022 1,363 2,111 1,210 1,082 1,459 903 662 1,234 -
Jun 2022 1,333 1,629 1,253 1,163 1,436 956 877 1,030 -
Sep 2021 1,168 1,244 1,146 1,210 1,202 843 707 1,045 -
Average exchange rates for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R17.05/US$, R15.59/US$ and R14.63/US$, respectively
Figures may not add as they are rounded independently
(1) The Total US and SA PGM, Total SA PGM and Marikana includes the production and costs associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the
Operating cost, AISC and AIC excluding third party PoC, refer to "Reconciliation of operating cost excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters"
and "Reconciliation of AISC and AIC excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters"
(2) The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated into SA 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
(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
(4) 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
(5) 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
(6) 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
Reconciliation of operating cost excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters
Total US and SA PGM Total SA PGM Marikana
R' million Sep 2022 Jun 2022 Sep 2021 Sep 2022 Jun 2022 Sep 2021 Sep 2022 Jun 2022 Sep 2021
Cost of sales, before amortisation and depreciation as reported per table above 9,416 9,696 9,598 8,003 7,651 7,778 3,758 3,364 4,077
Inventory change as reported per table above 1,462 913 982 1,064 1,021 908 689 789 197
Less: Chrome cost of sales (402) (422) (338) (402) (422) (338) (96) (79) (64)
Total operating cost including third party PoC 10,476 10,187 10,242 8,665 8,250 8,348 4,351 4,074 4,210
Less: Purchase cost of PoC (790) (565) (593) (790) (565) (593) (790) (565) (593)
Total operating cost excluding third party PoC 9,686 9,622 9,649 7,875 7,685 7,755 3,561 3,509 3,617
PGM production as reported per table above 4Eoz- 2Eoz 534,752 535,262 658,101 448,863 427,612 513,776 180,316 180,815 226,591
Less: Mimosa production (28,670) (29,511) (28,770) (28,670) (29,511) (28,770) - - -
PGM production excluding Mimosa 506,082 505,751 629,331 420,193 398,101 485,006 180,316 180,815 226,591
Less: PoC production (16,720) (14,654) (13,703) (16,720) (14,654) (13,703) (16,720) (14,654) (13,703)
PGM production excluding Mimosa and third party PoC 489,362 491,097 615,628 403,473 383,447 471,303 163,596 166,161 212,888
PGM production including Mimosa and excluding third party PoC 518,032 520,608 644,398 432,143 412,958 500,073 163,596 166,161 212,888
Tonnes milled/treated 000't 9,625 9,641 10,747 9,383 9,342 10,363 2,441 2,554 2,933
Less: Mimosa tonnes (340) (360) (352) (340) (360) (352) - - -
PGM tonnes excluding Mimosa and third party PoC 9,284 9,281 10,395 9,043 8,982 10,011 2,441 2,554 2,933
R/4Eoz-
Operating cost including third party PoC R/2Eoz 20,700 20,142 16,274 20,621 20,723 17,212 24,130 22,531 18,580
US$/4Eoz-
US$/2Eoz 1,214 1,292 1,112 1,209 1,329 1,176 1,415 1,445 1,270
R/t 1,128 1,098 985 958 919 834 1,782 1,595 1,435
US$/t 66 70 67 56 59 57 105 102 98
R/4Eoz-
Operating cost excluding third party PoC R/2Eoz 19,793 19,593 15,673 19,518 20,042 16,454 21,767 21,118 16,990
US$/4Eoz-
US$/2Eoz 1,161 1,257 1,071 1,145 1,286 1,125 1,277 1,355 1,161
R/t 1,043 1,037 928 871 856 775 1,459 1,374 1,233
US$/t 61 67 63 51 55 53 86 88 84
Reconciliation of AISC and AIC excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters
Total US and SA PGM Total SA PGM Marikana
R' million Sep 2022 Jun 2022 Sep 2021 Sep 2022 Jun 2022 Sep 2021 Sep 2022 Jun 2022 Sep 2021
Total All-in-sustaining cost as reported per table above 11,122 10,091 10,110 8,464 7,568 8,067 4,277 3,839 3,922
Less: Purchase cost of PoC (790) (565) (593) (790) (565) (593) (790) (565) (593)
Add: By-product credit of PoC 77 67 63 77 67 63 77 67 63
Total All-in-sustaining cost excluding third party PoC 10,409 9,593 9,580 7,751 7,070 7,537 3,564 3,341 3,392
Plus: Corporate cost, growth and capital expenditure 642 420 645 208 209 62 207 209 62
Total All-in-cost excluding third party PoC 11,051 10,013 10,225 7,959 7,279 7,599 3,771 3,550 3,454
PGM production excluding Mimosa and third party PoC 4Eoz- 2Eoz 489,362 491,097 615,628 403,473 383,447 471,303 163,596 166,161 212,888
R/4Eoz-
All-in-sustaining cost excluding third party PoC R/2Eoz 21,271 19,534 15,561 19,211 18,438 15,992 21,785 20,107 15,933
US$/4Eoz-
US$/2Eoz 1,248 1,253 1,064 1,127 1,183 1,093 1,278 1,290 1,089
R/4Eoz-
All-in-cost excluding third party PoC R/2Eoz 22,582 20,389 16,609 19,726 18,983 16,123 23,051 21,365 16,224
US$/4Eoz-
US$/2Eoz 1,324 1,308 1,135 1,157 1,218 1,102 1,352 1,370 1,109
SA gold operations
Figures are in millions unless otherwise stated
SA OPERATIONS
Total SA
R' million gold Driefontein Kloof Beatrix Cooke DRDGOLD Corporate
Cost of sales, before amortisation and depreciation(1) Sep 2022 6,342 1,562 1,926 1,624 256 974 -
Jun 2022 3,784 915 1,059 701 154 955 -
Sep 2021 5,978 1,450 2,102 1,371 217 838 -
Royalties Sep 2022 21 7 7 6 1 - -
Jun 2022 2 - - 1 1 - -
Sep 2021 49 19 12 8 1 - 9
Carbon tax Sep 2022 1 - - 1 - - -
Jun 2022 1 - - 1 - - -
Sep 2021 - - - - - - -
Community costs Sep 2022 24 8 7 6 - 3 -
Jun 2022 33 12 10 8 - 3 -
Sep 2021 33 12 10 9 - 2 -
Share-based payments(2) Sep 2022 28 10 9 5 - 4 -
Jun 2022 51 21 15 10 - 5 -
Sep 2021 26 6 9 6 - 5 -
Rehabilitation interest and amortisation(3) Sep 2022 32 5 (3) 15 11 4 -
Jun 2022 31 8 (2) 10 12 2 1
Sep 2021 50 10 5 20 9 5 1
Leases Sep 2022 19 2 4 7 - 6 -
Jun 2022 21 1 4 7 1 8 -
Sep 2021 19 2 2 7 3 5 -
Ore reserve development Sep 2022 472 208 174 90 - - -
Jun 2022 - - - - - - -
Sep 2021 729 324 270 135 - - -
Sustaining capital expenditure Sep 2022 409 109 150 37 - 113 -
Jun 2022 455 35 58 32 - 330 -
Sep 2021 342 94 128 45 - 75 -
Less: By-product credit Sep 2022 (3) (1) (1) (1) - - -
Jun 2022 (2) - - - - (2) -
Sep 2021 (7) (2) (2) (1) - (2) -
Total All-in-sustaining costs(4) Sep 2022 7,345 1,910 2,273 1,790 268 1,104 -
Jun 2022 4,376 992 1,144 770 168 1,301 1
Sep 2021 7,219 1,915 2,536 1,600 230 928 10
Plus: Corporate cost, growth and capital expenditure Sep 2022 505 - 105 - - 53 347
Jun 2022 246 - 20 - - (17) 243
Sep 2021 125 - 43 2 - 14 66
Total All-in-costs(4) Sep 2022 7,850 1,910 2,378 1,790 268 1,157 347
Jun 2022 4,622 992 1,164 770 168 1,284 244
Sep 2021 7,344 1,915 2,579 1,602 230 942 76
Gold sold kg Sep 2022 6,070 1,572 1,488 1,257 311 1,442 -
Jun 2022 1,735 9 15 106 159 1,446 -
Sep 2021 9,069 2,422 2,989 1,938 292 1,428 -
oz Sep 2022 195,155 50,541 47,840 40,413 9,999 46,361 -
Jun 2022 55,782 289 482 3,408 5,112 46,490 -
Sep 2021 291,575 77,869 96,099 62,308 9,388 45,911 -
All-in-sustaining cost R/kg Sep 2022 1,210,049 1,215,013 1,527,554 1,424,025 861,736 765,603 -
Jun 2022 2,522,190 110,222,222 76,266,667 7,264,151 1,056,604 899,723 -
Sep 2021 796,008 790,669 848,444 825,593 787,671 649,860 -
All-in-sustaining cost US$/oz Sep 2022 2,207 2,216 2,787 2,598 1,572 1,397 -
Jun 2022 5,032 219,903 152,159 14,493 2,108 1,795 -
Sep 2021 1,692 1,681 1,804 1,755 1,675 1,382 -
All-in-cost R/kg Sep 2022 1,293,245 1,215,013 1,598,118 1,424,025 861,736 802,358 -
Jun 2022 2,663,977 110,222,222 77,600,000 7,264,151 1,056,604 887,967 -
Sep 2021 809,792 790,669 862,830 826,625 787,671 659,664 -
All-in-cost US$/oz Sep 2022 2,359 2,216 2,915 2,598 1,572 1,464 -
Jun 2022 5,315 219,903 154,819 14,493 2,108 1,772 -
Sep 2021 1,722 1,681 1,834 1,757 1,675 1,402 -
Average exchange rates for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R17.05/US$, R15.59/US$ and R14.63/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 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 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) are 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
Quarter ended Sep 2022 Quarter ended Jun 2022 Quarter ended Sep 2021
Southern Africa European European
Americas region (SA) region region Group Americas region SA region region Group Americas region SA region Group
US US US Under-
Total US Underground US Battery Total US Underground US Battery Total US ground US
Figures in million - SA rand PGM PGM Recycling SA PGM SA gold Metals(1) Corporate Total PGM PGM Recycling SA PGM SA gold Metals(1) Corporate Total PGM PGM Recycling SA PGM SA gold Corporate Total
Profit/(loss) before royalties and tax(2) 356 (83) 439 7,374 (802) (331) (142) 6,455 1,520 1,090 430 8,854 (1,790) 103 (227) 8,460 3,021 2,502 519 10,043 1,192 (236) 14,020
Adjusted for:
Amortisation and depreciation 580 579 1 625 481 55 - 1,741 739 738 1 601 183 58 - 1,581 631 630 1 678 885 - 2,194
Interest income (101) (32) (69) (83) (124) - - (308) (103) (7) (96) (131) (116) - (1) (351) (94) - (94) (45) (160) (2) (301)
Finance expense 248 248 - 163 177 6 78 672 226 226 - 248 183 5 78 740 167 157 10 154 113 80 514
Share-based payments 10 10 - 41 43 - - 94 (8) (8) - (25) (8) - - (41) 4 4 - 6 34 - 44
Loss/(gain) on financial instruments(3) 160 160 - 125 4 (23) - 266 (124) (124) - 189 24 (23) - 66 (684) (684) - 83 (2) - (603)
Loss/(gain) on foreign exchange differences(4) 8 8 - (135) (518) 63 (39) (621) (1) (1) - (350) (787) 18 2 (1,118) - - - (83) (527) - (610)
Share of results of equity-accounted
investees after tax - - - (55) (37) - 3 (89) - - - (357) (67) - 4 (420) - - - (286) (71) - (357)
Loss/(gain) on disposal of property,
plant and equipment 1 1 - (15) (18) - - (32) (4) (4) - (17) (11) - - (32) 8 8 - (1) (10) - (3)
Reversal of impairments - - - (7) - - - (7) - - - - - - - - - - - - - - -
Restructuring cost - - - 4 3 - - 7 - - - 16 11 - - 27 - - - 6 4 - 10
IFRS 16 lease payments(5) (2) (2) - (14) (20) (16) - (52) (1) (1) - (15) (23) (13) - (52) - - - (13) (21) - (34)
Occupational healthcare expense - - - - - - - - - - - - (25) - - (25) - - - - - - -
Other non-recurring costs 6 6 - 309 - - 14 329 - - - (1) - - 63 62 5 5 - - (16) 14 3
Adjusted EBITDA 1,266 895 371 8,332 (811) (246) (86) 8,455 2,244 1,909 335 9,012 (2,426) 148 (81) 8,897 3,058 2,622 436 10,542 1,421 (144) 14,877
(1) The Battery Metals segment includes Sandouville refinery (Sandouville), Keliber Oy (Keliber) and Battery Metals corporate and reconciling items since the effective dates of acquiring Sandouville on 4 February 2022 and Keliber on 14 March 2022 (where appropriate, Keliber project
costs are capitalised in terms of the group accounting policies)
(2) Battery Metals includes a loss before royalties and tax of R22 million related to Battery Metals corporate and reconciling items for the three months ended 30 September 2022 (R24 million profit before royalties and tax for the three months ended 30 June 2022)
(3) Battery Metals includes a gain on financial instruments of R22 million and R23 million related to Battery Metals corporate and reconciling items for the three months ended 30 September 2022 and 30 June 2022, respectively
(4) Battery Metals includes a loss on foreign exchange differences of R45 million related to Battery Metals corporate and reconciling items for the three months ended 30 September 2022
(5) Battery Metals includes IFRS 16 lease payments of R1 million related to Keliber for both the three months ended 30 September 2022 and 30 June 2022
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
Quarter ended Sep 2022 Jun 2022 Nine months ended Sep 2022
Stillwater East Stillwater East Stillwater East
Reef incl Blitz Boulder incl Blitz Boulder incl Blitz Boulder
Total US PGM Unit
Primary development (off reef) (m) 1,405 269 1,576 206 4,833 1,141
Secondary development (m) 3,508 1,196 2,755 1,495 9,161 3,777
SA PGM operations
Quarter ended Sep 2022 Jun 2022 Nine months ended Sep 2022
Thembe- Siphume- Thembe- Siphume- Thembe- Siphume-
Reef Bathopele lani Khuseleka lele Bathopele lani Khuseleka lele Bathopele lani Khuseleka lele
Rustenburg Unit
Advanced (m) 443 1,877 3,273 738 404 1,695 3,015 712 1,190 4,964 8,508 2,009
Advanced on reef (m) 443 696 1,277 403 404 756 1,129 339 1,190 2,055 3,298 1,058
Height (cm) 220 295 282 285 212 300 285 275 215 296 283 278
Average value (g/t) 2.9 2.3 2.2 2.9 3.0 2.4 2.2 3.1 2.9 2.3 2.2 3.0
(cm.g/t) 632 670 630 815 643 717 617 860 626 690 618 827
SA PGM operations
Quarter ended Sep 2022 Jun 2022 Nine months ended Sep 2022
Reef K3 Rowland Saffy E3 4B K4 K3 Rowland Saffy E3 4B K4 K3 Rowland Saffy E3 4B K4
Marikana Unit
Primary development (m) 8,996 4,263 3,953 867 914 2,317 8,535 4,928 4,049 780 968 908 24,209 13,832 11,124 2,296 2,671 3,253
Primary development - on reef (m) 6,687 2,532 2,390 455 556 759 6,322 3,168 2,378 343 623 169 18,147 9,066 6,817 1,180 1,745 930
Height (cm) 217 219 238 230 214 239 216 219 234 217 221 237 216 219 232 221 219 238
Average value (g/t) 2.5 2.5 2.4 2.6 3.0 2.8 2.8 2.6 2.5 2.9 2.9 2.9 2.7 2.6 2.5 2.8 2.9 2.8
(cm.g/t) 534 557 579 591 638 666 602 570 574 635 635 676 578 567 569 610 632 669
SA PGM operations
Quarter ended Sep 2022 Jun 2022 Nine months ended Sep 2022
Bamba- Bamba- Bamba-
Reef Kopaneng nani Kwezi K6 Kopaneng nani Kwezi K6 Kopaneng nani Kwezi K6
Kroondal Unit
Advanced (m) 586 789 531 556 527 843 501 395 1,591 2,165 1,585 1,161
Advanced on reef (m) 436 271 420 478 376 422 250 331 1,073 1,083 880 891
Height (cm) 242 214 223 240 245 215 222 229 239 215 220 242
Average value (g/t) 1.6 1.0 2.2 2.0 1.5 1.5 1.3 1.9 1.5 1.4 1.5 1.6
(cm.g/t) 381 210 480 480 376 325 278 424 350 307 327 391
SA gold operations
Quarter ended Sep 2022 Jun 2022 Nine months ended Sep 2022
Carbon Carbon Carbon
Reef leader Main VCR leader Main VCR leader Main VCR
Driefontein Unit
Advanced (m) 443 223 610 - - - 1,119 516 1,568
Advanced on reef (m) 40 74 172 - - - 158 164 430
Channel width (cm) 16 56 48 - - - 21 57 63
Average value (g/t) 42.5 7.4 35.6 - - - 37.5 9.4 43.7
(cm.g/t) 666 414 1,707 - - - 779 540 2,737
SA gold operations
Quarter ended Sep 2022 Jun 2022 Nine months ended Sep 2022
Reef Kloof Main Libanon VCR Kloof Main Libanon VCR Kloof Main Libanon VCR
Kloof Unit
Advanced (m) 901 362 45 604 - - - - 1,899 737 64 1,443
Advanced on reef (m) 259 84 45 103 - - - - 525 186 64 225
Channel width (cm) 162 73 88 83 - - - - 153 87 94 92
Average value (g/t) 10.9 10.3 2.9 16.7 - - - - 11.9 10.6 2.8 14.8
(cm.g/t) 1,766 755 253 1,397 - - - - 1,814 923 261 1,355
SA gold operations
Quarter ended Sep 2022 Jun 2022 Nine months ended Sep 2022
Kalkoen- Kalkoen- Kalkoen-
Reef Beatrix krans Beatrix krans Beatrix krans
Beatrix Unit
Advanced (m) 1,640 65 - - 2,426 117
Advanced on reef (m) 500 - - - 730 -
Channel width (cm) 151 - - - 145 -
Average value (g/t) 7.6 - - - 7.9 -
(cm.g/t) 1,143 - - - 1,143 -
SA gold operations
Quarter ended Sep 2022 Jun 2022 Nine months ended Sep 2022
Reef Kimberley Kimberley Kimberley
Burnstone Unit
Advanced (m) 223 - 260
Advanced on reef (m) - - -
Channel width (cm) - - -
Average value (g/t) - - -
(cm.g/t) - - -
ADMINISTRATION AND CORPORATE
SIBANYE STILLWATER LIMITED
(SIBANYE-STILLWATER)
Incorporated in the Republic of South Africa
Registration number 2014/243852/06
Share code: SSW and SBSW
Issuer code: SSW
ISIN: ZAE000259701
LISTINGS
JSE: SSW
NYSE: SBSW
WEBSITE
www.sibanyestillwater.com
REGISTERED AND CORPORATE 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
COMPANY SECRETARY
Lerato Matlosa
Email: lerato.matlosa@sibanyestillwater.com
DIRECTORS
Dr Vincent Maphai* (Chairman)
Neal Froneman (CEO)
Charl Keyter (CFO)
Dr Elaine Dorward-King*
Harry Kenyon-Slaney*
Jeremiah Vilakazi*
Keith Rayner*
Nkosemntu Nika*
Richard Menell*^
Savannah Danson*
Susan van der Merwe*
Timothy Cumming*
Sindiswa Zilwa*
* Independent non-executive
^ Lead independent director
INVESTOR ENQUIRIES
James Wellsted
Executive Vice President: Investor Relations and Corporate Affairs
Mobile: +27 83 453 4014
Email: james.wellsted@sibanyestillwater.com
or ir@sibanyestillwater.com
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 2146
South Africa
AUDITORS
Ernst & Young Inc. (EY)
102 Rivonia Road
Sandton 2196
South Africa
Private Bag X14
Sandton 2146
South Africa
Tel: +27 11 772 3000
AMERICAN DEPOSITARY RECEIPTS
TRANSFER AGENT
BNY Mellon Shareowner Correspondence (ADR)
PO Box 505000
Louisville
KY 40233-5000
US toll free: +1 866 247 3871
Tel: +1 201 680 6825
Email: shrrelations@cpushareownerservices.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
DISCLAIMER
FORWARD LOOKING STATEMENTS
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", "would", "expect", "forecast", "potential", "may", "could", "believe", "aim", "anticipate", "target", "estimate"
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,
including any proposed, anticipated or planned expansions into the battery metals or adjacent sectors and estimations or expectations of
enterprise value; 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, PGMs, battery metals (e.g., nickel, lithium, copper and zinc) and the cost of power, petroleum
fuels, and oil, among other commodities and supply requirements; 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 outcome of legal
challenges to the Group's mining or other land use rights; the occurrence of labour disputes, disruptions and industrial actions; the availability,
terms and deployment of capital or credit; changes in the imposition of industry standards, regulatory costs and relevant government regulations,
particularly environmental, sustainability, 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, including in relation to any environmental, health or safety issues; failure to meet ethical standards, including
actual or alleged instances of fraud, bribery or corruption; the effect of climate change or other extreme weather events on Sibanye-Stillwater's
business; 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 disruptions and 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 or precautionary suspension of operations at its mines for safety or environmental
incidents (including natural disasters) and unplanned maintenance; Sibanye-Stillwater's ability to hire and retain senior management and
employees with sufficient technical and/or production skills across its global operations necessary to meet its labour recruitment and retention
goals, as well as its ability to achieve sufficient representation of historically disadvantaged South Africans in its management positions; failure of
Sibanye-Stillwater's information technology, communications and 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 2021 Integrated Report and the annual report on Form 20-F for the fiscal year
ended 31 December 2021.
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 Group's external auditors.
NON-IFRS MEASURES
The information in this document contains certain non-IFRS measures, including adjusted EBITDA, AISC and AIC. These measures may not be
comparable to similarly-titled measures used by other companies and are not measures of Sibanye-Stillwater's financial performance under IFRS.
These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Sibanye-
Stillwater is not providing a reconciliation of the forecast non-IFRS financial information presented in this report because it is unable to provide this
reconciliation without unreasonable effort.
WEBSITES
References in this document to information on websites (and/or social media sites) are included as an aid to their location and such information is
not incorporated in, and does not form part of, this report.
Date: 03-11-2022 08:00:00
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