Wrap Text
Reviewed Preliminary Condensed Consolidated Results for the year ended 31 December 2012
Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN ZAE000173951
Issuer code: SGL
("Sibanye Gold")
MEDIA RELEASE
REVIEWED PRELIMINARY CONDENSED CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012
Westonaria, 1 March 2013
Today, 1 March 2013, Sibanye Gold Limited (JSE: SGL, NYSE: SBGL) announced net earnings for the year ended
31 December 2012 of R2,980 million (US$364 million). This represents a 16 per cent increase in net earnings
compared to the equivalent period in 2011. As a result of material production disruptions in the latter half of the
year, 85 per cent of the net earnings were generated in the first half of the year. Net earnings for the six-month
period ended 30 June 2012 was R2,525 million (US$308 million) and for the six-month period ended 31
December 2012, R455 million (US$56 million).
In the 2012 financial year, the Group produced 38,059 kilograms (1.22 million ounces) of gold compared with
45,005 kilograms (1.45 million ounces) in the 2011 financial year. The 15 per cent production decline was mainly
due to illegal industrial action, which resulted in up to six weeks of lost production and a fire at the Kloof-
Driefontein Complex ("KDC") Ya Rona shaft. As a result KDC and Beatrix produced 165,200 ounces and 58,100
ounces less respectively, than in the equivalent period in 2011.
The Group reported gold reserves of 13.5 million ounces as of 31 December 2012 and resources of 74.3 million
ounces.
Shareholders are referred to the Gold Fields Limited ("Gold Fields") quarter and year ended 31 December 2012
Reviewed Preliminary Condensed Consolidated Results dated 14 February 2013 for detail on the operational
and financial results of KDC and Beatrix.
KEY STATISTICS
United States Dollars South African Rand
Year ended Year ended
December December December December
2011 2012 2012 2011
1 447 1 224 oz (000) Gold produced kg 38 059 45 005
949 1 086 $/oz Total cash cost R/kg 285 851 220 224
1 224 1 395 $/oz Notional cash expenditure R/kg 367 338 284 055
14 648 12 185 000 tonnes Ore milled 000 tonnes 12 185 14 648
1 590 1 652 $/oz Revenue R/kg 434 943 369 139
93 109 $/tonne Operating costs R/tonne 892 673
935 694 $m Operating profit Rm 5 680 6 752
41 34 % Operating margin % 34 41
23 16 % NCE margin % 16 23
355 364 $m Net earnings Rm 2 980 2 563
355 364 $m Headline earnings Rm 2 978 2 561
Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus capital expenditure, divided by gold produced
STATEMENT BY NEAL FRONEMAN, CEO OF SIBANYE GOLD
The preliminary condensed consolidated financial information for the year ended 31 December 2012, as
reported, signals the last period that Sibanye Gold's operations were operated and managed by Gold Fields.
In future, the results will reflect the impact of Sibanye Gold's strategic initiatives, broadly outlined below.
Sibanye Gold's strategy is focused on what we believe investors require from a gold equity investment. As
such, Sibanye Gold has identified the following key strategic drivers and investment criteria:
- Leverage to the gold price by remaining unhedged and including operating strategies which ensure
that gold price increases flow through to the bottom line;
- Optimising free cash flow (after all costs, capital expenditure and taxes) and using this as the key
performance measure;
- Maintaining capital expedience and discipline ensuring that capital spent generates the appropriate
returns and that the balance sheet is optimally geared;
- Not pursuing growth for the sake of size, but only if that growth enhances cash flow and returns
measured as earnings per share; and
- Rewarding shareholders by means of regular and meaningful dividends
The KDC and Beatrix mines, despite having been in production for many years, remain high quality, long life
assets as evidenced by the current reserve and resource base of 13.5 million and 74.3 million ounces,
respectively. This reserve excludes a significant surface tailings resource of 2.9 million ounces, which is currently
the subject of a pre-feasibility study. Importantly, 22.3 million ounces is a measured resource with an average
grade of 11.9 grams per tonne, reflecting the high quality of the underlying assets.
The substantial and high quality resource and reserve base provides the opportunity to address the historical
and projected declining production profiles. The operating strategy is focused on reducing costs with a view to
reducing mining paylimits which is necessary to improve mining flexibility and extend the lives of the operations.
Capital will only be allocated to projects that generate appropriate returns. As alluded to in the pre-listing
statement, Sibanye Gold management believes that there is significant opportunity for operational
improvement and in this regard has already initiated a detailed review of the entire business and previous Gold
Fields initiatives. The results of this review will be incorporated in new plans and reported to the market within
the next 6 months.
The 2012 financial results demonstrate the ability of the Sibanye Gold assets to generate significant amounts of
free cash. These cash flows underpin the company's intent and ability at current gold prices to return a
meaningful amount of cash to our shareholders through dividends. Sibanye Gold has committed to a dividend
policy, as outlined in the pre listing statement, which is based on 25 per cent to 35 per cent of normalized
earnings which at current share prices will result in Sibanye Gold having one of the highest industry dividend
yields globally. Where appropriate the company will also consider returning excess cash back to shareholders
through the declaration of special dividends. Based on the nature of the underlying assets, it is the company's
intent to become a benchmark dividend payer.
UNBUNDLING AND LISTING OF SIBANYE GOLD
Sibanye Gold, in its previous guise as GFI Mining South Africa Proprietary Limited ("GFIMSA"), acquired its
current operations in 2002 while part of the Gold Fields group. Sibanye Gold's principle operations are the KDC,
and Beatrix mines, which, despite already long and illustrious operating histories, still have some of the highest
grades and largest resources in the South African gold mining industry. Sibanye Gold is one of the largest gold
producers in South Africa and amongst the top ten largest gold producers globally.
The proposed unbundling of Sibanye Gold into an independent, publicly traded company by Gold Fields, was
announced on 29 November 2012. Gold Fields proposed to distribute, on a pro rata basis, Sibanye Gold
ordinary shares to Gold Fields shareholders and Gold Fields American Depositary Receipts ("ADR") holders who
held their shares or ADRs as of the record date for the unbundling (each ADR is equivalent to 4 ordinary shares
in Sibanye Gold). The board of directors of Gold Fields approved the unbundling on 12 December 2012.
Sibanye Gold began trading on 11 February 2013 on the Johannesburg Stock Exchange ("JSE") at a share
price of R13.05 per share, giving it an initial market capitalisation of approximately R9.5 billion (US$1.1 billion).
Sibanye Gold's secondary listing on the New York Stock Exchange ("NYSE") also commenced on 11 February
2013.
The entire issued share capital of Sibanye Gold was unbundled to existing Gold Fields shareholders on 18
February 2013, by way of a distribution in specie in accordance with Section 46 of the Companies Act, Section
46 of the Income Tax Act and the JSE Listings Requirements. The Sibanye Gold shares were unbundled in a ratio
of 1:1 with Gold Fields shares and resulted in Gold Fields' shareholders holding two separate shares; a Sibanye
Gold share as well as their original Gold Fields share. Sibanye Gold is now a fully independent, publicly traded
company with a new board of directors and management.
Included in current liabilities at 31 December 2012 is R17,108 million (US$1,996 million) (2011: R21,258 million
(US$2,615 million)) owed by Sibanye Gold to GFL Mining Services Limited ("GFLMS", a subsidiary of Gold Fields)
(the "GFLMS loan"). As a result of the GFLMS loan, Sibanye Gold's total liabilities exceeded its total assets by
R9,673 million (US$1,129 million) and R11,976 million (US$1,473 million) as of 31 December 2012 and 31
December 2011, respectively. In addition, Sibanye Gold's current liabilities exceeded its current assets by
R19,681 million (US$2,296 million) and R22,265 million (US$2,739 million), respectively, at those dates.
On 1 February 2013, Gold Fields subscribed for a further 731,647,614 shares in Sibanye Gold at a subscription
price of R17,246 million (US$2,012 million). Sibanye Gold used R17,108 million (US$1996 million) of the proceeds
to repay the GFLMS loan (the share subscription and the repayment of the GFLMS loan collectively referred to
as the "Share subscription"). After the Share subscription the total shares in issue are 731,648,614 shares. See the
unaudited condensed consolidated pro forma financial information below.
REFINANCING OF BORROWINGS
On 28 November 2012, Sibanye Gold entered into a R6.0 billion (US$700 million) term loan and revolving credit
facilities agreement, which will reduce to R5.0 billion (US$583 million) as detailed below. The facilities comprise
a R2.0 billion (US$233 million) revolving credit facility and a R4.0 billion (US$467 million) term loan facility. The
available revolving credit facility amount will reduce from R2.0 billion (US$233 million) to R1.5 billion (US$175
million) and the term loan facility amount will reduce from R4.0 billion (US$467 million)to R3.5 billion (US$408
million), on the earliest of the date on which Sibanye Gold's Board declares a final dividend in respect of the
financial year ending 31 December 2013 or the first anniversary of the unbundling, being 18 February 2014 (the
"Rand bridge loan facilities"). The final maturity date of the facilities is 18 months after the unbundling, being 18
August 2014.
The purpose of the Rand bridge loan facilities was to refinance Sibanye Gold's remaining debt on unbundling,
with the balance to be used to fund Sibanye Gold's on-going capital expenditure, working capital and
general corporate expenditure requirements.
On 18 February 2013, Sibanye Gold refinanced all of its debt which was under Gold Fields group debt facilities,
by drawing down under the Rand bridge loan facilities. See the unaudited condensed consolidated pro forma
financial information below.
As of 18 February 2013, the Gold Fields group is not guaranteeing any debt of Sibanye Gold, similarly Sibanye
Gold has been released from all of its obligations as guarantor under Gold Fields group debt, except, Sibanye
Gold will remain a guarantor of the US$1 billion 4.875 per cent guaranteed notes ("the Notes") issued by Gold
Fields Orogen (BVI) Limited ("Orogen", a subsidiary of Gold Fields) on 30 September 2010, due to mature on 7
October 2020. The interest is due and payable semi-annually on 7 April and 7 October in arrears. The payment
of all amounts due in respect of the Notes is unconditionally and irrevocably guaranteed by Gold Fields,
Sibanye Gold, Gold Fields Operations Limited and Gold Fields Holdings Company (BVI) Limited (collectively "the
Guarantors"), on a joint and several basis. The Notes and guarantees constitute direct, unsubordinated and
unsecured obligations of Orogen and the Guarantors, respectively, and rank equally in right of payment
among themselves and with all other existing and future unsubordinated and unsecured obligations of Orogen
and the Guarantors, respectively.
An indemnity agreement (the "Indemnity Agreement") has been entered into between the Guarantors,
pursuant to which the Guarantors (other than Sibanye Gold) hold Sibanye Gold harmless from and against any
and all liabilities and expenses which may be incurred by Sibanye Gold under or in connection with the Notes.
The indemnity includes any payment obligations by Sibanye Gold to the note holders or the trustee of the
Notes pursuant to the guarantee of the Notes, all on the terms and subject to the conditions contained therein.
The Indemnity Agreement will remain in place for as long as Sibanye Gold's guarantee obligations under the
Notes remain in place.
Sibanye Gold has ceded all of its rights, title and interest in and to the Indemnity Agreement in favour of the
lenders of the Rand bridge loan facility, jointly and severally, as security for its obligations under the facilities.
UNAUDITED CONDENSED CONSOLIDATED PRO FORMA FINANCIAL INFORMATION
Set out below is the unaudited condensed consolidated pro forma earnings per share information and the
unaudited condensed consolidated pro forma statement of financial position of Sibanye Gold (together, "the
unaudited condensed consolidated pro forma financial information").
The unaudited condensed consolidated pro forma financial information has been prepared by management
of Sibanye Gold and are the responsibility of the Board of Directors of Sibanye Gold. The unaudited
condensed consolidated pro forma financial information has been prepared for illustrative purposes only, to
provide information as to how the Share subscription might have affected the reported financial information,
had the Share subscription been undertaken on 1 January 2012, in calculating earnings per share and
headline earnings per share and on 31 December 2012 for the statement of financial position. Other than for
the impact on earnings per share and headline earnings per share, the Share subscription did not have any
other pro forma financial impact on the income statement as the GFLMS loan which was repaid was interest
free.
In addition, the unaudited condensed consolidated pro forma financial information provides information on
how the refinancing of borrowings might have affected the reported financial information had the refinancing
been undertaken on 31 December 2012 for the statement of financial position. The refinancing of borrowings
did not have any pro forma financial impact on the income statement had the refinancing been undertaken
on 1 January 2012 as the refinancing merely resulted in the reclassification between short and long term
borrowings.
Because of its nature, the unaudited condensed consolidated pro forma financial information may not present
a fair reflection of the financial position, changes in equity, results of operations or cash flows of Sibanye Gold,
after the Share subscription and the refinancing of borrowings.
The unaudited condensed consolidated pro forma financial information of Sibanye Gold has been prepared
using the accounting policies that comply with IFRS and that are consistent with those applied in the
preparation of the audited consolidated financial statements of Sibanye Gold for the year ended 31
December 2011.
Had the Share subscription, the repayment of the GFLMS loan and the refinance of Sibanye Gold's other debt
occurred on 31 December 2012, as detailed in the unaudited condensed consolidated pro forma financial
information, Sibanye Gold's total assets would have exceeded its total liabilities by R7,573 million (US$884
million) on 31 December 2012. However, Sibanye Gold's current liabilities would have exceeded its current
assets by R715 million (US$83 million) on the same date as illustrated.
The unaudited condensed consolidated pro forma financial information of Sibanye Gold has been reviewed
by the company's independent reporting accountant, KPMG Inc. In their limited assurance report dated 1
March 2013, which is available for inspection at the Company's Registered Office, KPMG Inc. state that their
review was conducted in accordance with International Standard on Assurance Engagements applicable to
Assurance Engagements Other Than Audits or Reviews of Historical Financial information and the Guide on Pro
Forma Financial Information issued by the South African Institute of Chartered Accountants, which applies to a
review of pro forma financial information, and have expressed an unmodified conclusion on the pro forma
financial information.
UNAUDITED CONDENSED CONSOLIDATED PRO FORMA INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2012
Unaudited pro forma earnings per share
Figures in millions unless otherwise stated
United States Dollars South African Rand
2012 2012
Before the After the Before the After the
Share Pro Forma Share Share Pro Forma Share
subscription Adjustments subscription subscription Adjustments subscription
Earnings per share attributable to ordinary
shareholders of the company
36 380 000 (36 379 950)(1) 50 Basic and diluted earnings per share - (cents) 297 960 000 (297 959 593)(1) 407
Headline and diluted headline earnings per share -
36 360 000 (36 359 950)(1) 50 (cents) 297 790 000 (297 789 593)(1) 407
Unaudited condensed consolidated pro forma statement of financial position
United States Dollars South African Rand
2012 2012
Before the After the Before the After the
Share Share Share Share
subscription subscription subscription subscription
and the and the and the and the
refinancing Pro Forma refinancing refinancing of Pro Forma refinancing
of borrowings Adjustments of borrowings borrowings Adjustments of borrowings
2 094.7 - 2 094.7 Non-current assets 17 950.6 - 17 950.6
203.9 16.1(2) 220.0 Current assets 1 747.1 137.9(2) 1 885.0
2 298.6 16.1 2 314.7 Total assets 19 697.7 137.9 19 835.6
(1 128.6) 2 012.4(2) 883.7 Shareholders' equity (9 672.7) 17 245.8(2) 7 573.1
926.9 200.7(3) 1 127.6 Non-current liabilities 7 942.3 1 720.0(3) 9 662.3
2 500.3 (2 197.0) 303.3 Current liabilities 21 428.1 (18 827.9) 2 600.2
245.0 - 245.0 Other current liabilities 2,100.2 - 2100.2
1 996.3 (1 996.3)(2) - GFLMS loan 17 107.9 (17 107.9)(2) -
259.0 (200.7)(3) 58.3 Current portion of borrowings 2 220.0 (1 720.0)(3) 500.0
2 298.6 16.1 2 314.7 Total equity and liabilities 19 697.7 137.9 19 835.6
(112 860 000) 112 860 121 (4) 121 Net asset value per share (cents) (967 270 000) 967 271 035(4) 1 035
(112 860 000) 112 860 121 (4) 121 Net tangible asset value per share (cents) (967 270 000) 967 271 035(4) 1 035
Notes and assumptions to the unaudited condensed consolidated pro forma financial information
The figures set out in the "Before the Share Subscription" and "Before the Share Subscription and the refinancing of borrowings" columns above have been
extracted without adjustment from the reviewed preliminary condensed consolidated financial statements of Sibanye Gold for the year ended 31 December
2012.
The following notes and assumption are applicable to the pro forma adjustments:
1. The adjustment relates to basic and diluted earnings per share and headline and diluted headline attributable to Sibanye Gold shareholders resulting
from the impact of the increase in the weighted average number of ordinary shares (from 1,000 to 731,648,614, as described below). Other than for the
impact on earnings per share and headline earnings per share resulting from the Share subscription, the pro forma adjustments resulting from the Share
subscription and the refinancing of the borrowings did not have any other impact on the income statement.
2. The pro forma adjustments relate to the settlement of the GFLMS loan owing by Sibanye Gold from the proceeds of the issuance of no par value
ordinary shares to Gold Fields.
R million US$ million
Increase in Shareholders equity from the issuance of 731,647,614 no par value ordinary shares 17 245.8 2 012.4
Use of net proceeds 17 245.8 2 012.4
- Current Assets - Increase in cash and cash equivalents 137.9 16.1
- Current liabilities - GFLMS loan 17 107.9 1 996.3
3. The pro forma adjustments relate to the reclassification of borrowings between current and non-current liabilities as a result of the refinancing of the
borrowings.
R million US$ million
Total pro forma borrowings at 31 December 2012 4 220.0 492.4
- Long-term portion of borrowings under the Rand bridge loan facilities 3 720.0 434.1
- Short-term portion of borrowings under the Rand bridge loan facilities 500.0 58.3
4. The adjustment relates to net asset value and net tangible asset value per share resulting from the impact of pro forma adjustments above reflecting the
increase in the weighted average number of ordinary shares.
5. The above adjustments are expected to have a continuing effect.
BASIS OF ACCOUNTING
The preliminary condensed consolidated financial information for the year ended 31 December 2012 has been
prepared in accordance with the recognition and measurement requirements of International Financial
Reporting Standards (IFRSs), the presentation and disclosure requirements of IAS 34 Interim Financial Reporting
applied to year end reporting, the JSE Listings Requirements, the SAICA Financial Reporting Guides as issued by
the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial
Reporting Standards Council, as well as the requirements of the South African Companies Act. The accounting
policies used in the preparation of the preliminary condensed consolidated financial statements are consistent
with those applied in the preparation of the audited consolidated financial statements of Sibanye Gold for the
year ended 31 December 2011, except for the adoption of applicable revised and/or new standards issued by
the International Accounting Standards Board. The newly adopted standards did not significantly impact the
Group's financial results. The comparatives were extracted from the audited complete consolidated financial
statements for the year ended 31 December 2011.
AUDITORS REVIEW
The preliminary condensed consolidated financial statements of Sibanye Gold for the year ended 31
December 2012 as set out on pages 6 to 10 have been reviewed by the company's auditor, KPMG Inc. In their
review report dated 1 March 2013, which is available for inspection at the Company's Registered Office, KPMG
Inc. state that their review was conducted in accordance with the International Standard on Review
Engagements 2410, Review of Interim Information Performed by the Independent Auditor of the Entity, which
applies to a review of preliminary condensed consolidated financial information, and have expressed an
unmodified review conclusion on the preliminary condensed consolidated financial statements.
The preliminary financial statements are presented on a condensed consolidated basis.
INCOME STATEMENT
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Year ended Year ended
December December December December
2011 2012 2012 2011
2 301.0 2 021.2 Revenue 16 553.5 16 613.1
(1 365.8) (1 327.7) Operating Costs (10 873.6) (9 861.3)
935.2 693.5 Operating profit 5 679.9 6 751.8
(303.8) (288.5) Amortisation and depreciation (2 362.8) (2 193.2)
631.4 405.0 Net operating profit 3 317.1 4 558.6
13.6 12.9 Investment income 105.5 98.3
(5.1) (15.5) Finance expense (126.9) (37.1)
(2.5) (14.8) Other costs (121.3) (18.4)
4.8 11.4 Share of results of associate after taxation 93.1 35.0
(33.0) (32.2) Share-based payments (263.5) (238.0)
0.6 0.3 Profit on disposal of property, plant and equipment 2.4 4.3
- 1.8 Gain on financial instruments 15.0 -
(39.5) (15.2) Restructuring costs (124.1) (285.5)
570.3 353.7 Profit before royalties and taxation 2 897.3 4 117.2
(40.1) (34.4) Royalties (282.1) (289.5)
530.2 319.3 Profit before taxation 2 615.2 3 827.7
(175.1) 44.6 Mining and income tax 365.0 (1 264.5)
(91.9) (57.9) Normal tax (474.8) (663.3)
(83.2) 102.5 Deferred tax 839.8 (601.2)
355.1 363.9 Profit for the year 2 980.2 2 563.2
Profit/(loss) attributable to:
355.2 363.8 Owners of the parent 2 979.6 2 564.1
(0.1) 0.1 Non-controlling interest holders 0.6 (0.9)
355.1 363.9 2 980.2 2 563.2
Earnings per share attributable to ordinary shareholders of the company
35 520 000 36 380 000 Basic earnings per share - (cents) 297 960 000 256 410 000
35 520 000 36 380 000 Diluted earnings per share - (cents) 297 960 000 256 410 000
Headline earnings reconciliation:
355.2 363.8 Profit attributable to owners of the parent: 2 979.6 2 564.1
(0.6) (0.3) Profit on disposal of property, plant and equipment (2.4) (4.3)
0.2 0.1 Taxation effect of profit on disposal of property, plant and equipment 0.7 1.5
354.8 363.6 Headline earnings 2 977.9 2 561.3
35 480 000 36 360 000 Headline earnings per share - (cents) 297 790 000 256 130 000
35 480 000 36 360 000 Diluted headline earnings per share - (cents) 297 790 000 256 130 000
Average exchange rate for the year: R8.19/ 1US$ (2011: R7.22/ 1US$)
The reviewed preliminary condensed consolidated financial statements for the years ended 31 December 2012 and 31 December 2011, have been
prepared by the corporate accounting staff of Sibanye Gold Limited headed by Mr Pieter Henning, Vice President Corporate Finance. This process was
supervised by Mr Charl Keyter, the Group's Chief Financial Officer.
STATEMENT OF COMPREHENSIVE INCOME
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Year ended Year ended
December December December December
2011 2012 2012 2011
355.1 363.9 Profit for the year 2 980.2 2 563.2
296.0 69.6 Other comprehensive income - -
296.0 69.6 Currency translation adjustment - -
651.1 433.5 Total comprehensive income for the year 2 980.2 2 563.2
Attributable to:
651.1 433.4 Owners of the parent 2 979.6 2 564.1
- 0.1 Non-controlling interest holders 0.6 (0.9)
651.1 433.5 2 980.2 2 563.2
STATEMENT OF CHANGES IN EQUITY
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
South African Rand
Share capital Other Accumulated Non-controlling Total
and premium reserves loss interest equity
Balance as at 31 December 2010 - (1 720.1) (10 628.4) (5.0) (12 353.5)
Total comprehensive income - - 2 564.1 (0.9) 2 563.2
Share-based payments - 238.0 - - 238.0
Dividends paid - - (2 423.3) - (2 423.3)
Balance as at 31 December 2011 - (1 482.1) (10 487.6) (5.9) (11 975.6)
Total comprehensive income - - 2 979.6 0.6 2 980.2
Share-based payments - 263.5 - - 263.5
Dividends paid - - (731.3) - (731.3)
Transactions with non-controlling interest holders - - - 0.7 0.7
Transaction with shareholder - - (210.2) - (210.2)
Balance as at 31 December 2012 - (1 218.6) (8 449.5) (4.6) (9 672.7)
United States Dollars
Share capital Other Accumulated Non-controlling Total
and premium reserves loss interest equity
Balance as at 31 December 2010 - (175.2) (1 654.2) (0.7) (1 830.1)
Total comprehensive income - 295.9 355.2 - 651.1
Profit/Loss for the year - - 355.2 (0.1) 355.1
Other comprehensive income - 295.9 - 0.1 296.0
Share-based payments - 33.0 - - 33.0
Dividends paid - - (327.0) - (327.0)
Balance as at 31 December 2011 - 153.7 (1 626.0) (0.7) (1 473.0)
Total comprehensive income - 69.6 363.8 0.1 433.5
Profit for the year - - 363.8 0.1 363.9
Other comprehensive income - 69.6 - 69.6
Share-based payments - 32.2 - - 32.2
Dividends paid - - (95.5) - (95.5)
Transactions with non-controlling interest holders - - - 0.1 0.1
Transaction with shareholder - - (25.9) - (25.9)
Balance as at 31 December 2012 - 255.5 (1 383.6) (0.5) (1 128.6)
STATEMENT OF FINANCIAL POSITION
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars South African Rand
December December December December
2011 2012 2012 2011
2 059.6 2 094.7 Non-current assets 17 950.6 16 743.6
1 889.2 1 911.0 Property, plant and equipment 16 376.1 15 358.8
16.0 25.7 Investments 220.1 129.9
152.1 155.3 Environmental trust fund 1 331.1 1 236.6
2.3 2.7 Deferred taxation 23.3 18.3
215.0 203.9 Current assets 1 747.1 1 747.9
96.3 105.9 Other current assets 907.2 783.3
74.1 64.0 Related party receivables 548.1 601.8
44.6 34.0 Cash and cash equivalents 291.8 362.8
2 274.6 2 298.6 Total assets 19 697.7 18 491.5
(1 473.0) (1 128.6) Shareholders' equity (9 672.7) (11 975.6)
793.9 926.9 Non-current liabilities 7 942.3 6 454.2
617.5 488.4 Deferred taxation 4 185.5 5 020.3
- 233.5 Borrowings 2 000.0 -
176.4 205.0 Provisions 1 756.8 1 433.9
2 953.7 2 500.3 Current liabilities 21 428.1 24 012.9
300.6 240.6 Other current liabilities 2 062.6 2 443.6
2 653.1 2 000.7 Related party payables 17 145.5 21 569.3
- 259.0 Current portion of borrowings 2 220.0 -
2 274.6 2 298.6 Total equity and liabilities 19 697.7 18 491.5
Year end closing exchange rate: R8.57/ 1US$ (2011: R8.13/ 1US$)
STATEMENT OF CASH FLOWS
International Financial Reporting Standards Basis
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Year ended Year ended
December December December December
2011 2012 2012 2011
543.3 314.0 Cash flows from operating activities 2 621.2 3 860.6
902.1 669.0 Cash generated by operations 5 479.5 6 512.5
4.4 4.3 Interest Income 35.3 31.9
(0.2) (0.1) Post-retirement health care payments (1.2) (1.2)
33.4 (79.0) Change in working capital (648.0) 241.3
939.7 594.2 Cash generated by operating activities 4 865.6 6 784.5
(2.0) (14.5) Interest paid (119.0) (14.5)
(23.8) (50.5) Royalties paid (413.7) (171.5)
(43.6) (119.7) Tax paid (980.4) (314.6)
870.3 409.5 Net cash from operations 3 352.8 6 283.9
(327.0) (95.5) Dividends paid (731.3) (2 423.3)
(416.2) (381.8) Cash flows from investing activities (3 126.0) (3 004.9)
(404.8) (379.4) Additions to property, plant and equipment (3 106.9) (2 922.6)
2.1 0.6 Proceeds on disposal of property, plant and equipment 5.2 15.5
(13.5) (3.0) Environmental trust fund and rehabilitation payments (24.3) (97.8)
(211.8) 53.0 Cash flows from financing activities 433.8 (1 529.0)
- 515.3 Loans raised 4 220.0 -
(211.8) (521.7) Related party loans repaid (4 272.4) (1 529.0)
- 59.4 Related party loans raised 486.2 -
(84.7) (14.8) Net cash utilised (71.0) (673.3)
(24.2) 4.2 Effect of exchange rate fluctuation on cash held - -
(153.5) 44.6 Cash and cash equivalents at the beginning of the year 362.8 1 036.1
44.6 34.0 Cash and cash equivalents at end of the year 291.8 362.8
Year end closing exchange rate: R8.57/ 1US$ (2011: R8.13/ 1US$)
Average exchange rate for the year: R8.19/ 1US$ (2011: R7.22/ 1US$)
EVENTS SUBSEQUENT TO YEAR END
Refer to the "Unbundling and Listing of Sibanye Gold" and the "Refinancing of Borrowings" detailed on page 2
and 3 of this announcement.
OPERATING AND FINANCIAL RESULTS
Figures are in millions unless otherwise stated
2012 2011
South African Rand
KDC Beatrix Corporate(1) Group KDC Beatrix Corporate(1) Group
OPERATING RESULTS
Ore milled (000 tonnes) 8 817 3 368 - 12 185 10 831 3 817 - 14 648
Yield (grams per tonne) 3.3 2.7 - 3.1 3.2 2.8 - 3.1
Gold produced & sold (kilograms) 29 078 8 981 - 38 059 34 218 10 787 - 45 005
Gold price received (Rand per
434 710 435,698 - 434 943 368 309 371 772 - 369 139
kilogram)
Total cash cost (Rand per kilogram) 283 249 294 277 - 285 851 219 642 222 073 - 220 224
Notional cash expenditure (Rand per
366 707 366 875 - 367 338 285 017 279 957 - 284 055
kilogram)
Operating costs (Rand per tonne) 934 783 - 892 688 631 - 673
INCOME STATEMENT
Revenue 12 640.5 3 913.0 - 16 553.5 12 602.8 4 010.3 - 16 613.1
Operating costs (8 236.9) (2 636.7) - (10 873.6) (7 452.4) (2 408.8) - (9 861.3)
Operating profit 4 403.6 1 276.3 - 5 679.9 5 150.4 1 601.5 - 6 751.8
Amortisation and depreciation (1 712.9) (631.8) (18.1) (2 362.8) (1 663.3) (514.4) (15.5) (2 193.2)
Net operating profit/(loss) 2 690.7 644.5 (18.1) 3 317.1 3 487.1 1 087.1 (15.5) 4 558.6
Investment income 75.0 19.3 11.2 105.5 68.5 17.9 11.9 98.3
Finance expense (106.0) (15.6) (5.3) (126.9) (30.1) (6.6) (0.4) (37.1)
Other costs 2 (145.5) (30.1) 164.8 (10.8) (86.4) (22.0) 129.3 20.9
Share-based payments (115.6) (42.3) (105.6) (263.5) (108.1) (35.6) (94.3) (238.0)
Restructuring costs (115.9) (8.2) - (124.1) (249.4) (34.7) (1.4) (285.5)
Royalties (211.5) (70.5) - (282.1) (256.5) (33.0) - (289.5)
Current taxation (328.9) (121.5) (24.4) (474.8) (638.7) (2.2) (22.4) (663.3)
Deferred taxation 584.7 238.2 16.9 839.8 (286.4) (313.4) (1.4) (601.2)
Profit for the year 2 327.0 613.8 39.4 2 980.2 1 900.0 657.5 5.8 2 563.2
Profit attributable to :
Owners of the parent 2 327.0 613.8 38.8 2 979.6 1 900.0 657.5 6.7 2 564.1
Non-controlling interest holders - - 0.6 0.6 - - (0.9) (0.9)
Sustaining capital 745.8 210.7 22.5 979.0 589.4 195.8 11.2 796.4
Ore reserve Development 1 680.4 447.5 - 2 127.9 1 710.9 415.3 - 2 126.2
Capital expenditure 2 426.2 658.2 22.5 3 106.9 2 300.3 611.1 11.2 2 922.6
Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus capital expenditure, divided by gold produced.
Figures may not add as they are rounded independently.
(1) Corporate"represents the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does
not generate revenue.
(2) Other costs "Corporate and other" share of profit of associate after taxation of R93.1 million (2011: R35.0 million) and the balance of R71.7 million (2011: R94.3
million) income consists mainly of corporate related cost recoveries.
OPERATING AND FINANCIAL RESULTS
Figures are in millions unless otherwise stated
2012 2011
United States Dollars
KDC Beatrix Corporate(1) Group KDC Beatrix Corporate(1) Group
OPERATING RESULTS
Ore milled (000 tonnes) 8 817 3 368 - 12 185 10 831 3 817 - 14 648
Yield (ounces per tonne) 0.106 0.086 - 0.100 0.102 0.091 - 0.988
Gold produced & sold (000 ounces) 934.9 288.7 - 1 223.6 1 100.2 346.8 - 1 447.0
Gold price received (Dollar per
ounce) 1 651 1 655 - 1 652 1 587 1 602 - 1 590
Total cash cost (Dollar per ounce) 1 076 1 118 - 1 086 946 957 - 949
Notional cash expenditure (Dollar per
ounce) 1 393 1 393 - 1 395 1 228 1 206 - 1 224
Operating costs (Dollars per tonne) 114 96 - 109 95 87 - 93
INCOME STATEMENT
Revenue 1 543.4 477.8 - 2 021.2 1 745.5 555.4 - 2 301.0
Operating costs (1 005.7) (321.9) - (1 327.7) (1 032.2) (333.6) - (1 365.8)
Operating profit 537.7 155.8 - 693.5 713.4 221.8 - 935.2
Amortisation and depreciation (209.1) (77.1) (2.3) (288.5) (230.4) (71.2) (2.2) (303.8)
Net operating profit/(loss) 328.5 78.7 (2.3) 405.0 483.0 150.6 (2.2) 631.4
Investment income 9.2 2.4 1.3 12.9 9.5 2.5 1.6 13.6
Finance expense (12.9) (1.9) (0.7) (15.5) (4.3) (0.9) - (5.1)
Other costs(2) (17.8) (3.7) 20.2 (1.3) (12.0) (2.9) 17.8 2.9
Share-based payments (14.1) (5.2) (12.9) (32.2) (15.0) (4.9) (13.1) (33.0)
Restructuring costs (14.2) (1.0) - (15.2) (34.5) (4.8) (0.2) (39.5)
Royalties (25.8) (8.6) - (34.4) (35.5) (4.6) - (40.1)
Current taxation (40.2) (14.8) (3.0) (57.9) (88.5) (0.3) (3.1) (91.9)
Deferred taxation 71.4 29.1 2.0 102.5 (39.7) (43.4) (0.1) (83.2)
Profit for the year 284.1 74.9 4.6 363.9 263.2 91.1 0.7 355.1
Profit attributable to :
Owners of the parent 284.1 74.9 4.5 363.8 263.2 91.1 0.8 355.2
Non-controlling interest holders - - 0.1 0.1 - - (0.1) (0.1)
Sustaining capital 91.1 25.7 2.7 119.6 81.6 27.1 1.6 110.3
Ore reserve Development 205.1 54.7 - 259.8 237.0 57.5 - 294.5
Capital expenditure 296.2 80.4 2.7 379.4 318.6 84.6 1.6 404.8
Notional cash expenditure (NCE) per kilogram (ounce) = operating costs plus capital expenditure, divided by gold produced
Figures may not add as they are rounded independently
The segment results have been prepared and presented based on management's reporting format. Gold mining operations are managed and internally
reported based on the following geographical areas: the KDC and Beatrix mines.
(1) Corporate"represents the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does
not generate revenue.
(2) Other costs "Corporate and other" share of profit of associate after taxation of US$11.4 million (2011: US$4.8 million) and the balance of US$8.8 million (2011:
US$13.0 million) income consists mainly of corporate related cost recoveries.
Year end closing exchange rate: R8.57/ 1US$ (2011: R8.13/ 1US$)
Average exchange rate for the year: R8.19/ 1US$ (2011: R7.22/ 1US$)
ADMINISTRATION AND CORPORATE INFORMATION
Investor Enquiries Sibanye Gold Limited Office of the United Kingdom Transfer Secretaries
James Wellsted Incorporated in the Republic of Secretaries South Africa
Head of Corporate Affairs South Africa London Computershare Investor
Sibanye Gold Limited Registration number St James's Corporate Services Services (Proprietary) Limited
+27 83 453 4014 2002/031431/06 Limited Ground Floor
james.wellsted@sibanyegold.co.za Share code: SGL 6 St James's Place 70 Marshall Street
Issuer code: SGL London Johannesburg, 2001
Corporate Secretary ISIN ZAE E000173951 SW1A 1NP P O Box 61051
Cain Farrel United Kingdom Marshalltown, 2107
Tel: +27 11 10 001 1122 Listings Tel: +44 20 7499 3916 Tel: +27 11 370 5000
Fax: +27 11 278 9863 JSE : SGL Fax: +44 20 7491 1989 Fax: +27 11 688 5248
cain.farrel@sibanyegold.co.za NYSE : SBGL
Registered Office Website American Depository Transfer Secretaries
Libanon Business Park www.sibanyegold.co.za Receipts Transfer Agent United Kingdom
1 Hospital Street, Bank of New York Mellon Capita Registrars
(Off Cedar Ave), Directors: BNY Mellon Shareowner The Registry
Libanon, Westonaria, Sello Moloko* (Chairman) Services 34 Beckenham Road
1780 Neal Froneman (CEO) P O Box 358516 Beckenham
South Africa Charl Keyter (CFO) Pittsburgh, PA15252-8516 Kent BR3 4TU
Timothy Cumming* US toll-free telephone: +1 888 England
Private Bag X5 Barry Davison* 269 2377 Tel: 0871 664 0300 [calls cost
Westonaria, Rick Menell* Tel: +1 201 680 6825 10p a minute plus network
1780 Nkosemntu Nika* e-mail: extras, lines are open
South Africa Keith Rayner* shrrelations@bnymellon.com 8.30am 5pm Mon-Fri] or
Susan van der Merwe* [from overseas]
Jerry Vilakazi* +44 20 8639 3399
Tel: +27 11 278 9600 Cain Farrel (Company Fax: +44 20 8658 3430
Fax: +27 11 278 9863 Secretary) e-mail:
*Non-Executive ssd@capitaregistrars.com
FORWARD LOOKING STATEMENTS
Certain statements in this document constitute "forward looking statements" within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E
of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance
or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking
statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa and
elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development
activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability,
terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations and new legislation affecting mining
and mineral rights; changes in exchange rates, currency devaluations, inflation and other macro-economic factors; industrial action; temporary stoppages of
mines for safety and unplanned maintenance reasons; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the
date of this document.
The company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after
the date of this document or to reflect the occurrence of unanticipated events.
www.sibanyegold.co.za
Date: 01/03/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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