Wrap Text
Interim results for the six months ended 30 June 2013
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")
Operating and Financial Report
For the six months ended 30 June 2013
WESTONARIA 13 August 2013: Sibanye Gold Limited (JSE: SGL & NYSE: SBGL) is pleased to provide its operating
results and reviewed condensed consolidated interim financial statements for the six months ended 30 June 2013.
Salient features for the six months to 30 June 2013:
- A 63% increase in operating profit to R3.3 billion (US$363 million) compared with the six months ended
31 December 2012.
- A seven fold increase in available cash to R2.1 billion (US$206 million) from 31 December 2012, reducing net
debt to R1.9 billion (US$188 million).
- A 23% increase in gold produced to 20,413kg (656,300oz) compared with the six months ended
31 December 2012.
- Total cash cost of R289,031/kg (US$983/oz) is 12% lower compared with the six months ended
31 December 2012, with NCE of R359,114/kg (US$1,221/oz), 16% lower.
- Positive safety trends from 2012 continue.
- Bridge loan facility restructured on 8 July 2013 to provide greater flexibility.
United States Dollars Key statistics South African Rand
Six months to Six months to
June December June June December June
2012 2012 2013 2013 2012 2012
688.1 535.5 656.3 oz (000) Gold produced kg 20,413 16,657 21,402
6,793 5,392 6,436 000 tons Ore milled 000 tons 6,436 5,392 6,793
1,650 1,667 1,535 US$/oz Revenue R/kg 451,448 453,953 420,148
99 121 100 US$/ton Operating costs R/ton 915 1,025 787
460.1 233.4 363.2 US$m Operating profit Rm 3,323.4 2,035.9 3,644.0
41 27 36 % Operating margin % 36 27 41
993 1,205 983 US$/oz Total cash cost R/kg 289,031 328,246 252,855
1,256 1,574 1,221 US$/oz Notional cash expenditure R/kg 359,114 428,535 319,708
24 6 20 % NCE margin % 20 6 24
1,322 1,623 1,275 US$/oz All-in cost R/kg 375,036 441,940 336,576
20 3 17 % All-in cost margin % 17 3 20
318.9 44.9 31.5 US$m Basic earnings Rm 290.0 454.8 2,524.8
318.8 44.8 96.1 US$m Headline earnings Rm 880.8 453.4 2,524.5
Stock data JSE Limited (SGL)
Number of shares in issue Range per ordinary share: Feb-Jun 2013 ZAR6.73 to ZAR16.30
at end of June 733,603,546 Average Volume: Feb-Jun 2013 7,332,467 shares/day
weighted average 566,412,788 NYSE (SBGL) : One ADR represents four ordinary shares
Free Float 100% Range per ADR: Feb-Jun 2013 US$2.65 to US$7.47
ADR Ratio 1:4 Average Volume: Feb-Jun 2013 979,166 ADR's/day
Bloomberg/Reuters SGLSJ/SGLJ.J The above for the period 11 February 2013 (listing date) to 30 June 2013
STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER OF SIBANYE GOLD:
"The operating and financial results for the period under review are pleasing and support my belief that these
assets, despite having been in operation for many decades, are still some of the best gold mines in the world
and, will continue to be so for many years to come.
The implementation of Sibanye Gold's new operating strategy is proceeding well and is starting to reflect
in improved production and lower costs. Gold production for the six months ended 30 June 2013 was
23% higher at 20,413kg (656,300oz), than in the six months ended 31 December 2012, with total cash cost of
R289,031/kg (US$983/oz) and Notional cash expenditure ("NCE") of R359,114/kg (US$1,221/oz), 12% and
16% lower respectively.
Despite a sharp fall in the gold price since mid-April 2013, Sibanye Gold generated an operating profit of
R3.3 billion (US$363 million) for the six months ended 30 June 2013, which is 63% higher than in the previous
six months ended 31 December 2012. Net cash generated for the period was R1.8 billion (US$197 million).
The six months ended 31 December 2012 was materially impacted by the fire at Driefontein's Ya Rona shaft
and the illegal industrial action during September and October 2012, which distorts the comparison. It is more
prudent and realistic to compare the six months ended 30 June 2013, with the comparable period in 2012.
Gold production and NCE costs for the six months ended 30 June 2013 were 5% lower and 13% higher
respectively, than the comparable period in 2012. The first quarter of 2013 contained a number of material
operational disruptions (the fire at Beatrix West Section and the Driefontein power outage) so that the six month,
year-on-year comparison does not reflect what was a significantly better second quarter in 2013. It is pleasing
to note that operational trends improved into the second quarter of 2013 and we are beginning to arrest the
historical declining production and increasing cost profile. Management remains committed to continuing the
process of reversing the declining production and increasing costs trends that have historically plagued these assets.
Production of 11,101kg (356,900oz) in the second quarter of 2013 was 19% higher than in the first quarter and
comfortably beat our forecast of 10,600kg (340,000oz). Costs similarly were significantly better, with NCE declining
by 11% to R340,465/kg (US$1,125/oz), against a forecast of R360,000/kg (US$1,220/oz). These improving trends
have continued into July and further operational improvements are expected.
A detailed review of every aspect of the business continues, with specific focus on increasing output, reducing
costs and improving productivity.
Organizational effectiveness has been improved by:
- Separating the Kloof/Driefontein complex ("KDC") into the Kloof and Driefontein Operations in order to
improve the operational focus and reduce the span of control;
- Creating a focused minerals processing business unit to ensure that the metallurgical throughput is maximised
and that the large surface gold resources are brought to account;
- Simplifying management structures and removing unnecessary layers; reducing costs and improving
communication and response time, as well as positioning the collective experience of senior management
closer to the work face;
- Appointing multi-disciplinary and empowered mining and metallurgical management teams; and
- Consolidating all supporting and service functions to ensure cost effective and efficient support for the
operating units.
Longer term, there remains significant potential for further improvements, by way of:
- A detailed analysis of access and travel times in order to increase time at the face;
- Alternate shift cycles, stoping crew optimisation and a bonus review to improve effectiveness;
- Assessing the potential to safely mine high-grade remnant and support pillars, which have been excluded
from the reserves since 2008; and
- Assessing the potential of secondary reefs.
With the good and visible progress that has been made on restoring operational credibility, it is now appropriate
to focus on securing the future of our fourth mine, the West Rand Tailings Project, and extending the life of Beatrix
through the very significant gold and uranium resources contained within the current mining lease area.
On 8 July 2013, Sibanye Gold restructured its debt, giving it greater flexibility and removing the constraint on
paying an interim dividend. Also, as a result of the restructuring, the final dividend covenant was amended so
that the Company may consider increasing the final total dividend from 25% to 35% of normalised earnings.
This is a strong vote of confidence by the lenders in Sibanye Gold's cash generative ability.
The improving operational performance and the debt restructuring has ensured that the Company is well
placed to declare a maiden dividend, once there is sufficient financial and operational stability. Management
remains committed to being a benchmark dividend payer.
Wage negotiations between the South African Gold Mining Industry and Organised Labour began in July 2013.
The unions have tabled varying demands, which appear to bear no reference to the cost and revenue pressures
facing the industry. The Gold mining Industry, through the Chamber of Mines, has tabled an offer which takes
cognisance of these pressures. It is difficult to forecast what the outcome of the negotiations might be but
Sibanye Gold remains firm in its view and is well positioned.
We are well prepared for extended strikes and have made plans to limit losses should production disruptions
occur. We are aware of the critical need to control costs in order to stabilize production and extend the lives of
the operations and will not be coerced into unsustainable outcomes.
The benefits from the business review and restructuring are expected to result in greater operational effectiveness
and lower costs in the six months ending 31 December 2013. While the likelihood of costly operational disruptions
remains high given the uncertainty around the wage negotiation period, under normal circumstances, group
production is forecast to increase by 8% to approximately 22,000kg (700,000oz), and NCE is forecast to be
approximately R360,000/kg. All-in cost for the six months ending 31 December 2013 is forecast at R375,000/kg
mainly due to an increase in capital expenditure.
For the year ending December 2013, gold production is estimated at 42,000kg (1.35 million oz). Total cash cost
is estimated at R290,000/kg and NCE at R360,000/kg which is around a 5% improvement compared with the
guidance provided in the Trading statement published on 8 May 2013. The All-in cost for the year is estimated
at R375,000/kg.
I remain bullish on the future and sustainability of Sibanye Gold. There is no doubt that the Company is made up
of world-class assets both in terms of the people and the ore-body."
13 August 2013
N. Froneman
Chief Executive Officer
FINANCIAL AND OPERATING REVIEW OF THE GROUP:
For the six months ended 30 June 2013 compared with the six months ended
31 December 2012.
Safety
The health and safety strategy is under pinned by the pillars of Culture (winning the hearts and minds of
employees), Stakeholder alignment and engagement, Wellbeing, Engineering out the Risk and Compliance.
Sibanye Gold believes that all accidents are preventable and aims to achieve continual safety improvement by
aligning beliefs and behaviours with our values, including the goal of zero harm. All stakeholders are included in a
structured safety programme and the DMR and government are continually engaged to ensure they understand
and support the safety strategy. Wellbeing is achieved by ensuring workers are healthy, live decently in a safe
environment and are well nourished. Key risk areas are identified and prioritised on a continuous basis and
correct procedures and technical solutions are implemented. Overall compliance to standards and procedures
by employees are measured through workplace audits, which form an integral part of remuneration incentive
schemes for all production personnel.
Regrettably there were four fatalities for the six month period. Sibanye Gold will continue to strive for zero harm
as health and safety trends continue to improve. Based on 2012's injury frequency rates, Sibanye Gold has
recorded an improvement in all indices and in particular a notable 45% improvement in the fatal injury frequency
rate from 0.17 to 0.09 per million man hours worked ("pmmhw") year to date. The lost time injury frequency rate
improved from 6.90 to 6.47 pmmhw and the serious injury frequency rate from 3.67 to 3.34 pmmhw. These rates
are nearing international benchmarks and are particularly pleasing considering the depth and labour intensive
nature of the operations.
Operating performance
Gold production for the six months ended 30 June 2013 was 23% higher at 20,413kg (656,300oz), than in the
six months ended 31 December 2012, with total cash cost of R289,031/kg (US$983/oz) and NCE of R359,114/kg
(US$1,221/oz), 12% and 16% lower respectively.
Sibanye Gold has elected to report its costs in accordance with the World Gold Council's ("WGC") new metrics
for reporting on 'all-in sustaining cost' ("AISC") and 'All-in cost' ("AIC") and expects to phase out the reporting
of NCE by the end of financial 2013. A reconciliation between the different cost measures is included in this report.
The six months ended 30 June 20
13 was operationally a period of two parts and it is worth considering the
performance and trends during the first two quarters of the year separately. The first quarter was difficult;
impacted by a slow return to operational normality from the December holidays, by the fire and subsequent
Section 189 process at the Beatrix West Section, and the power outage at Driefontein. The second quarter
was relatively untroubled, with fewer operational disruptions outside of the usual Easter Holiday period, and is
therefore more representative of the true operational potential of these assets.
Quarterly salient features and development results are included in this report.
Revenue
As a result of the increase in production, revenue increased to R9,215 million (US$1,007 million) from R7,562 million
(US$886 million). The average rand gold price was virtually unchanged at R451,448/kg. This was despite an
8% decrease in the US dollar gold price to US$1,535/oz from US$1,667/oz, as this was offset by the weakening of
the rand by 8% from an average of R8.47/US$ to R9.15/US$.
Operating costs
Group operating costs increased by 7% to R5,892 million (US$644 million) from R5,526 million (US$652 million) mainly
due to the increase in production and an effective 10% electricity tariff increase from 1 April 2013. Operating
cost increases were restricted by cost saving initiatives implemented since the unbundling on 18 February 2013.
Operating margin
The Group operating margin increased to 36% from 27% as a result of the recovery in production and the cost
saving initiatives which resulted in lower unit costs for the six months ended 30 June 2013, while unit revenue
remained relatively constant.
Capital expenditure
Capital expenditure decreased by 11% to R1,439 million (US$157 million) from R1,613 million (US$190 million)
largely due to the near completion of projects such as the Libanon housing project and Kloof python plant
project in 2012, and a decrease in ore reserve development capitalised, especially at Beatrix following the fire
at Beatrix West Section. With the planned cessation of operations at Beatrix West Section, post the Section 189
consultation process, capital expenditure has been substantially reduced at Beatrix West Section.
All-in cost, total cash cost and Notional cash expenditure ("NCE")
A new cost measure, "All-in cost", has recently been introduced by the World Gold Council working with its
member companies. Despite not being a current member of the World Gold Council, the Group has adopted
the principal prescribed by the Council. This new non-GAAP measure provides more transparency into the costs
associated with gold mining.
The "All-in cost" metric is valuable in providing relevant information to investors, governments, local communities
and other stakeholders in understanding the economics of gold mining. This is especially true with reference to
capital expenditure associated with developing and maintaining gold mines, which has increased significantly
in recent years and is reflected in this new metric.
All-in cost is made up of "All-in sustaining costs", being the cost to sustain current operations and is given as a
sub-total in the calculation, together with corporate and major capital expenditure
aimed at growing the Company. At this stage, with the focus on our current operations, the All-in sustaining cost
and the All-in cost are the same. The three metrics i.e. Total cash cost, NCE and All-in cost are provided in this
report, although we expect to phase out the use of NCE by the end of 2013.
Share-based payments
In terms of the previously existing Gold Fields Limited Share Plans, all Gold Fields Limited ("Gold Fields") shares
vested pro rata ("no fault termination" rules applied) to Sibanye Gold employees following the unbundling
of Sibanye Gold. The proportionate unvested options under the Gold Fields Limited Share Plans on date of
unbundling were replaced with Sibanye Gold share options to the equivalent value, under the Sibanye Gold
2013 Share Plan.
Group share-based payments decreased from R131 million (US$15 million) in the six months ended December
2012 to R115 million (US$13 million) for the six months ended 30 June 2013 due to the majority of the options
granted by Gold Fields in 2010 vesting during March 2013, with forfeiture adjustments and the new 2013 option
allocation only being granted in July 2013.
Sibanye Gold's Remuneration committee has limited the issuance of share options for the 2013 allocation under
the Sibanye Gold 2013 Share Plan to senior management only. D-Band and certain E-Band employees, who
previously participated in the equity settled share option scheme, will now participate in a cash settled share
scheme. The same rules will apply to the cash settled share scheme as would have applied to the equity settled
share options under the Sibanye Gold 2013 Share Plan other than the issue of new shares to participants.
Impairment at Beatrix West Section
An underground fire during February 2013 at Beatrix West affected approximately 38% of the planned production
area, further impacting on the commercial viability and risk of continued operations of the Beatrix West Section.
Following a Section 189 consultation process with affected stakeholders, it was agreed that ore reserve
development would largely be suspended and that the remaining ore reserves would be mined to completion
as long as this was profitable. Profitability will be considered on a monthly basis. The majority of the associated
development employees have been retrenched. As a result a decision was taken to impair Beatrix West's mining
assets by R821 million (US$90 million). A deferred tax credit of R230 million (US$25 million) was recorded.
Restructuring costs
Sibanye Gold is in the early stages of implementing a new operational strategy to reduce costs and improve
organisational effectiveness. As part of this process, voluntary separation packages were offered to employees.
Voluntary separation costs of approximately R253 million (US$28 million) were incurred at Kloof and Driefontein.
As a result of the Section 189 process at Beatrix, R74 million (US$8 million) has been incurred for retrenchments
to date.
Share subscription and unbundling
On 1 February 2013 Gold Fields, previously Sibanye Gold's only shareholder, subscribed for 731,647,614 shares
at a subscription price of R17,246 million (US$1,955 million), that was partially used to repay the R17,108 million
(US$1,940 million) loan owing to GFL Mining Services Limited (a subsidiary of Gold Fields).
Sibanye Gold began trading on 11 February 2013 on the Johannesburg Stock Exchange ("JSE") and New York
Stock Exchange ("NYSE"). 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. After the unbundling, Sibanye
Gold is a fully independent, publicly traded company with a new board of directors and management.
Dividend policy
Sibanye Gold's dividend policy is to return between 25% and 35% of normalised earnings to shareholders.
Subject to debt restriction and free cash flow, Sibanye Gold will also consider paying special dividends. Sibanye
Gold defines normalised earnings as net earnings excluding gains and losses on foreign exchange and financial
instruments, non-recurring items and share of result of associates after taxation.
In accordance with the Bridge Loan Facilities Agreement concluded in November 2012, Sibanye Gold was
previously not entitled to pay an interim dividend during the financial year ending December 2013 and could
only declare and pay a final dividend of up to 25% of normalised earnings, provided Sibanye Gold's gross debt
was not more than R4.0 billion after such dividend payment.
In terms of new amendments made to the Bridge Loan Facilities Agreement, the Sibanye Gold Board of Directors
may now consider an interim dividend and a larger final dividend in respect of the financial year ending
31 December 2013, subject to the restrictions detailed below. Sibanye Gold can now consider declaring and
paying:
- an interim dividend of up to 25% of normalised earnings in respect of its financial half year ended on
30 June 2013, provided that Sibanye Gold's net debt does not exceed R4.0 billion after such dividend
payment and the wage negotiations with organised labour have been concluded; and
- a final dividend of up to 35% of normalised earnings (less any interim dividend paid) in respect of its
financial year ending on 31 December 2013, provided that Sibanye Gold's gross debt does not exceed
R3.5 billion after the dividend payment. Alternatively a final dividend limited to 25% of normalised earnings
(less any interim dividend paid), may be declared, provided that gross debt does not exceed R4.0 billion
after the dividend payment.
The Sibanye Gold Board may only consider an interim dividend and the percentage of normalised earnings
in respect of the six months ended on 30 June 2013, once the wage negotiations have been concluded. In
considering the interim dividend, the Board will not only have to evaluate the Company's net debt position
as detailed above, perform a solvency and liquidity test as required by the Company's Act, but also other
factors which could include, but not limited to, production performance to date, impact of wage increases on
production costs and earnings outlook for the remainder of the financial year.
Our fourth mine West Rand tailings joint venture project
The pre-feasibility study ("PFS") on the West Rand Tailings Joint Venture Project in conjunction with Gold One
International Limited, has been concluded. The PFS was initiated in January 2013 following the successful
outcome of a scoping study that suggested that synergies and additional value could be derived by jointly
developing the parties' tailings storage facilities ("TSF"), including eliminating or at least reducing the closure
liability for the TSFs in their current locations. The PFS scope includes the reclamation and retreatment of historical
and current tailings including that of the South Deep current arisings to recover residual gold, uranium and
sulphur. A further objective of the project remains the redeposition of the residues in accordance with modern
sustainable deposition practices.
One of the key elements of the PFS was to evaluate the utilisation of existing surface and underground
infrastructure of both parties, as well as the strategic phasing of capital and an assessment of ways in which
the scheduling of available feed material can be optimized, in order to reduce upfront capital commitments.
The study is currently in circulation for internal review, following which the results will be released during the
September 2013 quarter.
REVIEW OF OPERATIONS
Driefontein
Six months ended June 2013 Six months ended Dec' 2012
Ore milled - 000 tons 2,530 2,035
Gold produced - 000'oz 271.1 169.0
- kg 8,432 5,257
Yield - underground - g/t 6.3 5.6
- combined - g/t 3.3 2.6
Operation cost - u/g - R/ton 1,870 2,648
- surface - R/ton 168 164
All-in cost - R/kg 357,424 521,914
- US$/oz 1,215 1,917
NCE - R/kg 343,454 516,721
- US$/oz 1,167 1,897
NCE margin - % 24 (14)
Gold production increased by 60% to 8,432kg (271,100oz) for the six months ended 30 June 2013 from 5,257kg
(169,000oz) for the six months ended 31 December 2012. This increase was despite the power outage in March
2013, which resulted in the loss of 295kg (9,500oz) of production and was primarily due to a normalisation
of production, following the illegal industrial action from 10 September to 21 October 2012 as well as the
resumption of production at the Ya-Rona shaft post the fire which affected production during the second half
of 2012.
Underground ore milled increased by 58% to 1,180,000 tons from 745,000 tons and the underground yield
increased by 13% to 6.3g/t from 5.6g/t. Surface throughput increased by 5% to 1,350,000 tons from 1,290,000 tons,
mostly offsetting the decline in the yield to 0.7g/t from 0.8g/t. The underground cost of ore milled decreased
by 29% to R1,870/ton from R2,648/ton. The cost of surface ore milled increased marginally from R164/ton to
R168/ton.
Main development increased by 28% to 8,691 metres from 6,804 metres and on-reef development increased by
81% to 2,578 metres from 1,428 metres. The average development value decreased slightly to 1,235cm.g/t from
1,278cm.g/t.
Operating costs increased by 11% to R2,433 million (US$266 million) from R2,185 million (US$258 million). This was
due to labour costs increasing together with consumption of stores and electricity, as production normalised
after the illegal strikes in 2012.
Operating profit increased seven fold to R1,378 million (US$151 million) from R204 million (US$19 million) due to the
increase in production and lower unit costs.
Capital expenditure decreased by 13% to R463 million (US$51 million) from R532 million (US$63 million) with the
majority of expenditure on ore reserve development ("ORD") and social and safety projects. The increase in
development is in line with the new Sibanye Gold strategy to improving ore reserve flexibility by increasing ORD
to open up new reserves.
All-in cost decreased by 32% to R357,424/kg (US$1,215/oz) from R521,914/kg (US$1,917/oz) as a result of the
increase in production and the lower capital expenditure, partly offset by the increase in operating costs. The
All-in cost margin increased from a negative 15% to a positive 21%.
Kloof
Six months ended June 2013 Six months ended Dec' 2012
Ore milled - 000 tons 1,997 1,871
Gold produced - 000'oz 251.4 236.6
- kg 7,818 7,358
Yield - underground - g/t 7.5 7.6
- combined - g/t 3.9 3.9
Operation cost - u/g - R/ton 1,981 2,089
- surface - R/ton 151 183
All-in cost - R/kg 356,690 384,588
- US$/oz 1,212 1,412
NCE - R/kg 341,417 371,922
- US$/oz 1,161 1,366
NCE margin - % 24 18
Gold production increased by 6% to 7,818kg (251,400oz) for the six month period ended 30 June 2013 from
7,358kg (236,600oz) for the six month period ended 31 December 2012. This increase was primarily due
to a normalisation of production, following the illegal industrial action that took place from 30 August to
5 September 2012 and again from the 13 October to 5 November 2012.
Underground ore milled increased by 7% to 939,000 tons from 874,000 tons. The underground yield was marginally
lower at 7.5 g/t. Surface tonnage increased by 6% to 1,058,000 tons from 997,000 tons and the surface yield
increased marginally to 0.7 g/t. The underground cost of ore milled decreased by 5% to R1,981/ton from
R2,089/ton and the surface cost of ore milled decreased by 17% to R151/ton from R183/ton.
Main development increased by 30% to 9,783 metres from 7,520 metres and on-reef development increased
by 63% to 1,733 metres from 1,064 metres. The average development value decreased to 1,821cm.g/t. from
2,078cm.g/t.
Operating costs increased by 1% to R2,020 million (US$221 million) from R2,008 million (US$237 million). This
increase was also due to an increase in consumption of stores and electricity, as production normalised after
the illegal industrial action in 2012.
Operating profit increased by 13% to R1,508 million (US$165 million) from R1,332 million (US$157 million) due to
the increase in production.
Capital expenditure decreased by 11% to R649 million (US$71 million) from R729 million (US$86 million), with most
of the expenditure on ORD, safety related projects and the mobile processing plant.
All-in cost decreased by 7% to R356,690/kg (US$1,212/oz) from R384,588/kg (US$1,412/oz) as a result of the
increased production and lower capital expenditure, partly offset by the increase in operating costs. The All-in
cost margin increased to 21% from 15%.
Beatrix
Six months ended June 2013 Six months ended Dec' 2012
Ore milled - 000 tons 1,909 1,486
Gold produced - 000'oz 133.8 130.0
- kg 4,163 4,042
Yield - underground - g/t 4.0 4.0
- combined - g/t 2.2 2.7
Operation cost - u/g - R/ton 1,388 1,308
- surface - R/ton 77 86
All-in cost - R/kg 428,777 426,348
- US$/oz 1,458 1,566
NCE - R/kg 419,914 414,151
- US$/oz 1,427 1,521
NCE margin - % 7 9
The recovery in gold production from the Beatrix Operation, after the illegal industrial action in 2012, was offset
by the impact of the Beatrix West Section underground fire, which started on 19 February 2013. The impact of
the fire continues to restrict mining operations at the Beatrix West Section. Following the Section 189 consultation
process with stakeholders, main ore reserve development at Beatrix West Section was largely suspended as the
mine enters future closure. Beatrix West Section will continue to operate while profitable and consideration will
be given to re-starting limited development which may provide the mine with an 18 month life line.
Despite the fire at the Beatrix West Section, gold production increased by 3% to 4,163kg (133,800oz) for the
six months ended 30 June 2013 from 4,042kg (130,000oz) for the six months ended 31 December 2012.
The high cost profile of the Beatrix Operations and lower than planned grades at North Section are
unsustainable, requiring a review of the ore-body model and cost structure. The review included a reassessment
of grade-tonnage ratios, unpay mining and a geological review. The outcome of the review has called for lower
mining volumes at North and South Section at a higher grade. The full impact of the optimisation exercise will
be realised toward the end of 2013.
Underground tons milled remained fairly constant at 985,000 tons, supplemented by surface material which
increased by 85% to 924,000 tons from 499,000 tons, as a result of a planned increase in low grade ore to the
Beatrix North plant to fill the mill capacity. The underground yield remained constant at an average of 4.0g/t
despite disruption at the higher grade Beatrix West Section as a result of the fire. The surface yield remained
unchanged at 0.3g/t. The underground cost of ore milled increased by 6% to R1,388/ton from R1,308/ton, while
surface costs reduced by 10% to R77/ton from R86/ton on the back of the increased volume.
Main development decreased marginally to 8,830 metres from 8,849 metres. On-reef development increased
to 1,885 metres from 1,851 metres. The weighted average value of the main reef development increased to
1,166cm.g/t from 1,033cm.g/t.
Operating costs increased by 8% to R1,439 million (US$157 million) from R1,333 million (US$157 million). Costs were
higher due to increased labour costs, transport costs relating to the increased surface volumes and a decrease
in ORD capitalised, mainly on the West Section.
Operating profit decreased by 12% to R438 million (US$48 million) from R500 million (US$58 million) due to the
increase in costs.
Capital expenditure decreased by 9% to R309 million (US$34 million) from R341 million (US$40 million), with the
majority being spent on infrastructure upgrades and ORD.
The All-in cost and All-in cost margin were similar at R428,777/kg (US$1,458/oz) and 5% respectively.
FINANCIAL STATEMENTS FOR THE SIX MONTHS
Condensed consolidated income statement
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Six month periods ended Six month periods ended
June December June June December June
2012 2012(1) 2013 2013 20121 2012
(Reviewed) (Reviewed) (Reviewed) (Reviewed)
1,135.4, 885.8 1,007.1 Revenue 9,215.4 7,561.5 8,992.0
(675.3) (652.4) (643.9) Operating costs (5,892.0) (5,525.6) (5,348.0)
460.1 233.4 363.2 Operating profit 3,323.4 2,035.9 3,644.0
(149.8) (138.7) (151.8) Amortisation and depreciation (1,388.8) (1,176.2) (1,186.6)
310.3 94.7 211.4 Net operating profit 1,934.6 859.7 2,457.4
7.3 5.6 6.3 Investment income 57.8 47.4 58.1
(4.6) (10.9) (20.8) Finance expenses (190.6) (90.2) (36.7)
(3.3) (11.5) (6.6) Other costs (60.3) (95.0) (26.3)
4.4 7.0 3.7 Share of results of associates after taxation 34.3 58.1 35.0
(16.8) (15.4) (12.6) Share-based payments (114.9) (130.6) (132.9)
- 1.7 1.5 Gain on financial instruments 13.4 13.8 -
- 0.1 2.3 Gain on foreign exchange differences 20.6 1.2 -
297.3 71.3 185.2 Profit before non-recurring items 1,694.9 664.4 2,354.6
0.1 0.2 - Profit on disposal of property, plant and equipment 0.4 2.0 0.4
- - (89.7) Impairment (821.0) - -
(6.2) (9.0) (37.5) Restructuring costs (343.0) (74.9) (49.2)
291.2 62.5 58.0 Profit before royalties and taxation 531.3 591.5 2,305.8
(25.3) (9.1) (18.3) Royalties (167.1) (81.6) (200.5)
265.9 53.4 39.7 Profit before taxation 364.2 509.9 2,105.3
53.0 (8.4) (8.2) Mining and income taxation (74.6) (54.3) 419.3
(58.2) 0.3 (29.6) - Normal taxation (270.8) (13.5) (461.3)
111.2 (8.7) 21.4 - Deferred taxation 196.2 (40.8) 880.6
318.9 45.0 31.5 Profit for the period 289.6 455.6 2,524.6
Profit for the period attributable to:
318.9 44.9 31.5 - Owners of the parents 290.0 454.8 2,524.8
- 0.1 - - Non-controlling interest (0.4) 0.8 (0.2)
Earnings per share
attributable to ordinary shareholders
31,890,000 4,490,000 6 Basic earnings per share (cents) 51 45,480,000 252,480,000
31,890,000 4,490,000 6 Diluted earnings per share (cents) 51 45,480,000 252,480,000
1,000 1,000 566,412,788 Weighted average number of shares 566,412,788 1,000 1,000
1,000 1,000 572,013,748 Diluted weighted average number of shares 572,013,748 1,000 1,000
Headline earnings per share
attributable to ordinary shareholders
31,880,000 4,480,000 17 Headline earnings per share (cents) 156 45,340,000 252,450,000
31,880,000 4,480,000 17 Diluted headline earnings per share (cents) 154 45,340,000 252,450,000
1,000 1,000 566,412,788 Weighted average number of shares 566,412,788 1,000 1,000
1,000 1,000 572,013,748 Diluted weighted average number of shares 572,013,748 1,000 1,000
Adjusted earnings per share(2)
attributable to ordinary shareholders
44 6 4 Adjusted basic earnings per share (cents) 40 62 344
44 6 13 Adjusted headline earnings per share (cents) 120 62 344
733,603,546 7 733,603,546 733,603,546 Actual issued number of shares 733,603,546 7 733,603,546 733,603,546
7.92 8.47 9.15 Average R/US$ rate
The condensed consolidated interim financial statements for the six month periods ended 30 June 2013, 31 December 2012 and
30 June 2012, 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.
1 The amounts for the 6 months ended 31 December 2012 have not been reviewed, however they have been prepared by deducting the
6 months ended June 2012 reviewed results from the 12 months ended 31 December 2012 audited results.
2 The adjusted basic and headline earnings per share have been calculated using the same basic and headline earnings respectively,
however it is based on the actual number of shares in issue at the end of the current period and not the weighted average number of shares
in issue during the period.
Condensed consolidated statement of comprehensive income
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Six month periods ended Six month periods ended
June December June June December June
2012 2012(1) 2013 2013 20121 2012
(Reviewed) (Reviewed) (Reviewed) (Reviewed)
318.9 45.0 31.5 Profit for the period 289.6 455.6 2,524.6
34.8 34.8 (87.8) Other comprehensive income net of tax - - -
34.8 34.8 (87.8) Currency translation adjustments - - -
353.7 79.8 (56.3) Total comprehensive income 289.6 455.6 2,524.6
Total comprehensive income attributable to:
353.7 79.7 (56.3) - Owners of the parents 290.0 454.8 2,524.8
- 0.1 - - Non-controlling interest (0.4) 0.8 (0.2)
7.92 8.47 9.15 Average R/US$ rate
1 Theamounts for the 6 months ended 31 December 2012 have not been reviewed, however they have been prepared by
deducting the 6 months ended June 2012 reviewed results from the 12 months ended 31 December 2012 audited results.
Condensed consolidated statement of financial position
Figures are in millions unless otherwise stated
United States Dollars South African Rand
June December June June December June
2012 2012 2013 2013 2012 2012
(Reviewed) (Audited) (Reviewed) (Reviewed) (Audited) (Reviewed)
2,042.4 2,094.7 1,732.4 Non-current assets 17,583.7 17,950.6 17,136.4
1,867.0 1,911.0 1,537.3 Property, plant and equipment 15,603.6 16,376.1 15,664.3
19.3 25.7 25.1 Investments 254.4 220.1 162.0
154.3 155.3 143.4 Environmental trust fund 1,455.6 1,331.1 1,294.6
- - 24.8 Financial guarantee asset 251.8 - -
1.8 2.7 1.8 Deferred taxation 18.3 23.3 15.5
327.2 203.9 333.7 Current assets 3,386.4 1,747.1 2,745.5
123.1 105.9 127.7 - Other current assets 1,295.7 907.2 1,033.7
61.4 64.0 - - Related party receivables - 548.1 514.6
142.7 34.0 206.0 - Cash and deposits 2,090.7 291.8 1,197.2
2,369.6 2,298.6 2,066.1 Total assets 20,970.1 19,697.7 19,881.9
(1,198.0) (1,128.6) 806.7 Shareholders' equity 8,188.2 (9,672.7) (10,049.4)
783.7 926.9 923.0 Non-current liabilities 9,368.1 7,942.3 6,574.8
493.1 488.4 400.5 Deferred taxation 4,064.9 4,185.5 4,136.9
116.2 233.5 344.8 Borrowings 3,500.0 2,000.0 975.0
174.4 205.0 177.7 Provisions 1,803.2 1,756.8 1,462.9
2,783.9 2,500.3 336.4 Current liabilities 3,413.8 21,428.1 23,356.5
326.0 240.7 287.1 - Other current liabilities 2,913.8 2,062.6 2,735.1
2,457.9 2,000.6 - - Related party payables - 17,145.5 20,621.4
- 259.0 49.3 - Current portion of long-term loans 500.0 2,220.0 -
2,369.6 2,298.6 2,066.1 Total equity and liabilities 20,970.1 19,697.7 19,881.9
(26.5) 458.5 188.1 Net debt 1,909.3 3,928.2 (222.2)
8.39 8.57 10.15 Closing R/US$ rate
Condensed consolidated statement of changes in equity
Figures are in millions unless otherwise stated
South African Rand
Share Non-
capital and Other Retained controlling Total
premium reserves earnings interest equity
Balance as at 31 December 2011 (audited) - (1,482.1) (10,487.6) (5.9) (11,975.6)
Total comprehensive income for the period - - 2,524.8 (0.2) 2,524.6
Dividends paid - - (731.3) - (731.3)
Share-based payments - 132.9 - - 132.9
Balance as at 30 June 2012 (reviewed) - (1,349.2) (8,694.1) (6.1) (10,049.4)
Total comprehensive income for the period - - 454.8 0.8 455.6
Share-based payments - 130.6 - - 130.6
Transactions with non-controlling interest - - - 0.7 0.7
Transactions with shareholder -
Balance as at 31 December 2012 (audited) - (1,218.6) (8,449.5) (4.6) (9,672.7)
Total comprehensive income for the period - - 290.0 (0.4) 289.6
Share subscription 17,245.8 - - - 17,245.8
Share-based payments - 114.9 - - 114.9
Transactions with non-controlling interest - - - 1.0 1.0
Transactions with shareholder - - 209.6 - 209.6
Balance as at 30 June 2013 2011 (reviewed) 17,245.8 (1,103.7) (7,949.9) (4.0) 8,188.2
Share Non-
capital and Other Retained controlling Total
premium reserves earnings interest equity
Balance as at 31 December 2011 (audited) - 153.7 (1,626.0) (0.7) (1,473.0)
Total comprehensive income for the period - 34.8 318.9 - 353.7
Profit for the period - - 318.9 - 318.9
Other comprehensive income net of tax - 34.8 - - 34.8
Dividends paid - - (95.5) - (95.5)
Share-based payments - 16.8 - - 16.8
Balance as at 30 June 2012 (reviewed) - 205.3 (1,402.6) (0.7) (1,198.0)
Total comprehensive income for the period - 34.8 44.9 0.1 79.8
Profit for the period - - 44.9 0.1 45.0
Other comprehensive income net of tax - 34.8 - - 34.8
Share-based payments - 15.4 - - 15.4
Transactions with non-controlling interest - - - 0.1 0.1
Transactions with shareholder - - (25.9) - (25.9)
Balance as at 31 December 2012 (audited) - 255.5 (1,383.6) (0.5) (1,128.6)
Total comprehensive income for the period - (87.8) 31.5 - (56.3)
Profit for the period - 31.5 - 31.5
Other comprehensive income net of tax - (87.8) - - (87.8)
Shares subscription 1,955.3 - - - 1,955.3
Share-based payments - 12.6 - - 12.6
Transactions with non-controlling interest - - - 0.1 0.1
Transactions with shareholder - - 23.6 - 23.6
Balance as at 30 June 2013 (reviewed) 1,955.3 180.3 (1,328.5) (0.4) 806.7
Condensed consolidated statement of cash flows
Figures are in millions unless otherwise stated
United States Dollars South African Rand
For the six month periods ended For the six month periods ended
June December June June December June
2012 2012(1) 2013 2013 2012(1) 2012
(Reviewed) (Reviewed) (Reviewed) (Reviewed)
293.2 32.4 372.6 Cash flows from operating activities 3,409.7 274.7 2,346.5
454.2 222.2 326.3 Cash generated by operations 2,985.4 1,882.3 3,597.2
3.1 1.3 2.7 Interest income 25.0 11.0 24.3
(0.1) (0.1) (0.1) Post-retirement healthcare payments (0.6) (0.5) (0.7)
33.4 (107.7) 78.4 Change in working capital 717.7 (912.4) 264.4
490.6 115.7 407.3 Cash generated by operating activities 3,727.5 980.4 3,885.2
(4.1) (10.2) (20.8) Interest paid (190.6) (86.2) (32.8)
(27.5) (23.1) (5.8) Royalties paid (53.2) (195.7) (218.0)
(70.3) (50.0) (8.1) Taxation paid (74.0) (423.8) (556.6)
388.7 32.4 372.6 Net cash from operations 3,409.7 274.7 3,077.8
(95.5) - - Dividends paid - - (731.3)
(191.5) (190.1) (167.0) Cash flows from investing activities (1,528.6) (1,610.1) (1,515.9)
(188.7) (190.4) (157.2) Additions to property, plant and equipment (1,438.6) (1,612.5) (1,494.4)
Proceeds on disposal of property, plant and
0.3 0.3 0.2 equipment 1.7 2.5 2.7
Environmental trust fund and rehabilitation
(3.1) - (10.0) payments (91.7) (0.1) (24.2)
0.5 50.7 (8.4) Cash flows from financing activities (82.2) 430.0 3.8
- - 1,955.3 Shares issued on unbundling 17,245.8 - -
- (638.3) Loans repaid (5,840.0) - -
123.1 383.1 614.3 Loans raised 5,620.0 3,245.0 975.0
(122.6) (389.8) (1,939.7) Related party loans repaid (17,108.0) (3,301.2) (971.2)
- 57.4 - Related party loans raised - 486.2 -
102.2 (107.0) 197.2 Net cash generated/(utilised) 1,798.9 (905.4) 834.4
(4.1) (1.7) (25.2) Effect of exchange rate fluctuations on cash held - - -
44.6 142.7 34.0 Cash and cash equivalents at beginning of period 291.8 1,197.2 362.8
142.7 34.0 206.0 Cash and cash equivalents at end of period 2,090.7 291.8 1,197.2
7.92 8.47 9.15 Average R/US$ rate
8.39 8.57 10.15 Closing R/US$ rate
1 The amounts for the 6 months ended 31 December 2012 have not been reviewed, however they have been prepared by
deducting the 6 months ended June 2012 reviewed results from the 12 months ended 31 December 2012 audited results.
Reconciliation of headline earnings with profit for the period
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Six month periods ended Six month periods ended
June December June June December June
2012 2012(1) 2013 2013 2012(1) 2012
(Reviewed) (Reviewed) (Reviewed) (Reviewed)
318.9 44.9 31.5 Profit attributable to owners of the parent 290.0 454.8 2,524.8
(0.1) (0.2) - Profit on disposal of property, plant and equipment (0.4) (2.0) (0.4)
- - 89.7 Impairment 821.0 - -
- 0.1 (25.1) Taxation effect of remeasurement items (229.8) 0.6 0.1
318.8 44.8 96.1 Headline earnings 880.8 453.4 2,524.5
7.92 8.47 9.15 Average R/US$ rate
1 The amounts for the 6 months ended 31 December 2012 have not been reviewed, however they have been prepared by
deducting the 6 months ended June 2012 reviewed results from the 12 months ended 31 December 2012 audited results.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS:
Basis of accounting
The condensed consolidated interim financial information for the six months ended 30 June 2013 has been
prepared and presented in accordance with the recognition, measurement, presentation and disclosure
requirements of IAS 34 Interim Financial 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 condensed consolidated interim financial statements are
consistent with those applied in the preparation of the audited consolidated financial statements of Sibanye
Gold ("the Group") for the year ended 31 December 2012, except for the adoption of applicable revised and/
or new standards issued by the International Accounting Standards Board. The newly adopted standards did
not impact the Group's financial results, other than disclosures. The six months ended 30 June 2012 comparatives
were extracted from the reviewed complete consolidated financial statements for the period ended 30 June
2012. The condensed consolidated statement of profit or loss and other comprehensive income and the
statement of cash flows for the six months ended 31 December 2012 were prepared by deducting the reviewed
complete consolidated financial statements for the period ended 30 June 2012 from the audited complete
consolidated financial statements for the year ended 31 December 2012. The statement of financial position for
31 December 2012 was extracted from the audited complete consolidated financial statements for the year
ended 31 December 2012.
The translation of the Group financial statements into US Dollar is based on the average exchange rate for
the period for the profit or loss and other comprehensive income statement and cash flow statement and the
period-end closing exchange rate for statement of financial position items. Exchange differences on translation
are accounted for in the statement of comprehensive income. This information is provided as supplementary
information only.
Share capital
Sibanye Gold has 1 billion authorised no par value shares of which 733,603,546 have been issued.
On 1 February 2013 Gold Fields Limited ("Gold Fields"), previously Sibanye Gold's only shareholder, subscribed
for a further 731,647,614 shares at a subscription price of R17,246 million (US$1,955 million). The proceeds of this
subscription were partially used to repay the R17,108 million (US$1,940 million) loan owing to GFL Mining Services
Limited (a subsidiary of Gold Fields). 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.
As a result of the share subscription the Group is solvent with total assets exceeding total liabilities by
R8.2 billion as at 30 June 2013.
Furthermore the Group issued 1,954,932 shares as part of the Sibanye Gold Limited 2013 Share Plan.
Gold Fields Bond guarantee
As of 18 February 2013, the Gold Fields group is no longer 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 remains a guarantor of the US$1 billion 4.875% guaranteed notes ("the Notes") issued by Gold
Fields Orogen Holding (BVI) Limited ("Orogen", a subsidiary of Gold Fields) on 30 September 2010, due to mature
on 7 October 2020. Interest on these notes 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,
including 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 Bridge Loan Facilities, jointly and severally, as security for its obligations under the facilities.
The Group has accounted for a financial guarantee liability for the potential obligation that may arise should
the Gold Fields group not be able to meet its obligations under or in connection with the Notes. The liability is
amortised over the remaining period of the bond and should facts and circumstances change on the ability of
the Gold Fields group's ability to meet its obligation under the Notes, the liability will be re-valued accordingly.
As at 30 June 2013 the balance was R218 million (US$22 million) (31 December 2012: R196 million (US$23 million)
and forms part of other current liabilities.
As of 18 February 2013, Orogen is obliged to pay a bi-annual guarantee fee to the Sibanye Gold until it has been
released as a guarantor under the Notes. The group has raised a receivable under the financial guarantee asset
for the future fee income.
Borrowings
On 28 November 2012, Sibanye Gold entered into a R6.0 billion term loan and revolving credit facility reducing
to R5.0 billion as detailed below (the "Bridge Loan Facilities"). The facilities originally comprised a R4.0 billion term
loan facility ("Facility A") and R2.0 billion revolving credit facility ("Facility B"). On 8 July 2013, the Rand Bridge
Loan Facilities' structure was amended so that Facility A and Facility B comprised of R3.0 billion each.
In accordance with this amendment, the Facility A will reduce from R3.0 billion to R2.5 billion (originally from
R4.0 billion to R3.5 billion) on the earliest of the date on which Sibanye Gold's Board of Directors 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. Similarly, Facility B will reduce from R3.0 billion to R2.5 billion (originally from R2.0 billion
to R1.5 billion) on the earliest of the date on which Sibanye Gold's Board of Directors 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 final maturity date of the facilities is 18 months after the unbundling, being 18 August 2014.
The purpose of the 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, the date of unbundling from Gold Fields, the Sibanye Gold refinanced its
R3,500 million (R3,000 million 31 December 2012) Long-term Rand revolving credit facilities and R900 million
(R1,220 million 31 December 2012) Short-term Rand revolving credit facilities which was under the Gold Fields
group debt facilities, by drawing down R4,000 million under Facility A and R570 million under Facility B.
On 18 March 2013, Sibanye Gold repaid the R570 million drawn under Facility B. The balance of the Bridge Loan
Facilities on 30 June 2013 was R4,000 million, all drawn under Facility A.
As a result of the structural amendment of the Bridge Loan Facilities on 9 July 2013, as detailed above, Sibanye
Gold repaid R500 million, Facility A's balance was reduced to R3,000 million and the balance of R500 million was
drawn under Facility B.
On 22 July 2013, Sibanye Gold repaid an additional R250 million under Facility B. The balance of the Bridge
Loan Facilities after these repayments are R3,250 million, of which R3,000 million is drawn under Facility A and a
R250 million under Facility B.
In accordance with the Bridge Loan Facilities agreement concluded in November 2012 Sibanye Gold
must lodge and register a security package for its obligations under the Bridge Loan Facilities on or before
18 August 2013. The security package will include a cession over certain bank accounts, accounts receivables,
and shares in material subsidiaries. As detailed under the Gold Fields Bond guarantee, the Indemnity Agreement
has already been ceded. Sibanye Gold will also register general notarial bonds over movables in favour of the
lenders of the Bridge Loan Facilities.
Sibanye Gold is currently engaging with its lenders to extend the term of its debt.
Impairment at Beatrix West Section
An underground fire during February at Beatrix West affected approximately 38% of the planned production
area, further impacting on the commercial viability and risk of continued operations of the Beatrix West
Section. Following a Section 189 consultation process with affected stakeholders, it was agreed that ore reserve
development would be suspended and that the remaining ore reserves would be mined to completion as
long as this was profitable. Profitability will be considered on a monthly basis. The majority of the associated
development employees have been retrenched. As a result a decision was taken to fully impair Beatrix West's
mining assets by R821 million (US$90 million).
Hedging / Derivatives
The Group's policy is to remain unhedged to the gold price. However, hedges may sometimes be considered
on a project specific basis as follows:
- to protect cash flows at times of significant expenditure;
- for specific debt servicing requirements; and
- to safeguard the viability of higher cost operations.
Sibanye Gold may from time to time establish currency financial instruments to protect underlying cash flows.
There were no contracts outstanding at the end of June 2013.
Events after the reporting date
There were no events that could have a material impact on the financial results of the Group after 30 June 2013,
except for the amendment to the Group's debt facilities as disclosed in the borrowings note.
Mineral reserves and resources
The group is in the process of reviewing its mineral reserves and resources. There were no material changes to the
reserves and resources from what was previously reported by the group at 31 December 2012.
Auditors Review
The condensed consolidated interim financial statements of Sibanye Gold for the six month period ended
30 June 2013 have been reviewed by the Company's auditor, KPMG Inc., on which
an unmodified review conclusion was expressed. A copy of their review report is available for inspection at the
Company's Registered Office.
The audit report does not necessarily report on all of the information contained in this financial report. Shareholders
are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement they
should obtain a copy of the auditor's report together with the accompanying financial information from the Company's
registered office.
SEGMENTAL OPERATING AND FINANCIAL RESULTS:
Subsequent to the unbundling, management has presented the Driefontein and Kloof segments separately and
not in aggregate as the KDC complex, in line RESULTS: the information from these operations is reviewed by
management.
Salient features and income statement for the six months ended 30 June 2013
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Corporate Beatrix Kloof Driefontein Group For the six months ended Group Driefontein Kloof Beatrix Corporate
30 June 2013
Operating Results
- 1,909 1,997 2,530 6,436 000'tons Ore milled- total 000'tons 6,436 2,530 1,997 1,909 -
- 985 939 1,180 3,104 Underground 3,104 1,180 939 985 -
- 924 1,058 1,350 3,332 Surface 3,332 1,350 1,058 924 -
- 2.2 3.9 3.3 3.2 g/t Yield g/t 3.2 3.3 3.9 2.2 -
- 4.0 7.5 6.3 5.9 Underground 5.9 6.3 7.5 4.0 -
- 0.3 0.7 0.7 0.6 Surface 0.6 0.7 0.7 0.3 -
- 133.8 251.4 271.1 656.3 000'ozs Gold produced and sold kg 20,413 8,432 7,818 4,163 -
- 126.4 227.9 239.3 593.5 Underground 18,460 7,442 7,087 3,931 -
- 7.5 23.5 31.8 62.8 Surface 1,953 990 731 232 -
- 1,532 1,534 1,536 1,535 US$/oz Gold price received R/kg 451,448 451,992 451,254 450,709 -
- 1,156 891 982 983 US$/oz Total cash cost R/kg 289,031 288,888 262,075 339,947 -
- 1,458 1,212 1,215 1,275 US$/oz All-in costs R/kg 375,036 357,424 356,690 428,777 -
- 1,427 1,161 1,167 1,221 US$/oz Notional cash expenditure R/kg 359,114 343,454 341,417 419,914 -
- 82 111 105 100 US$/ton Operating cost R/ton 915 962 1,012 754 -
- 152 217 204 191 Underground 1,751 1,870 1,981 1,388 -
- 8 16 18 15 Surface 137 168 151 77 -
US$'mil Financial results(1) R'mil
- 205.1 385.6 416.5 1,007.1 Revenue 9,215.4 3,811.2 3,527.9 1,876.3 -
- (157.2) (220.8) (265.9) (643.9) Operating costs (5,892.0) (2,433.3) (2,020.0) (1,438.7) -
- 47.8 164.8 150.6 363.2 Operating profit 3,323.4 1,377.9 1,507.9 437.6 -
Amortisation and
(1.0) (31.2) (51.1) (68.4) (151.8) depreciation (1,388.8) (625.5) (467.9) (285.9) (9.5)
(1.0) 16.6 113.7 82.2 211.4 Net operating profit 1,934.6 752.4 1,040.0 151.7 (9.5)
1.2 0.9 1.8 2.4 6.3 Investment income 57.8 22.2 16.8 7.9 10.9
(0.1) (3.6) (8.3) (8.9) (20.8) Finance expenses (190.6) (81.5) (76.0) (32.6) (0.5)
11.0 (91.7) (4.4) (3.7) (88.8) Other costs/impairments (812.6) (33.7) (40.5) (839.3) 100.9
(5.6) (1.9) (2.1) (3.0) (12.6) Share based payments (114.9) (27.3) (19.2) (17.5) (50.9)
(1.4) (8.1) (10.3) (17.7) (37.5) Restructuring costs (343.0) (162.3) (94.0) (73.9) (12.8)
- (1.5) (8.7) (8.1) (18.3) Royalties (167.1) (74.0) (79.2) (13.9) -
(0.1) (0.1) (16.5) (12.9) (29.6) Mining taxation (270.8) (118.4) (150.6) (1.1) (0.7)
(1.6) 24.4 (4.7) 3.3 21.4 Deferred taxation 196.2 30.5 (43.4) 223.3 (14.2)
2.5 (65.1) 60.5 33.7 31.5 Profit for the period 289.6 307.9 553.9 (595.4) 23.2
Profit attributable to:
2.5 (65.1) 60.5 33.7 31.5 Owners of the parent 290.0 307.9 553.9 (595.4) 23.6
Non-controlling interest
- - - - - holders (0.4) - - - (0.4)
US$'mil Capital expenditure R'mil
(1.9) (33.8) (71.0) (50.6) (157.2) Total expenditure (1,438.6) (462.7) (649.2) (309.4) (17.3)
(1.9) (11.5) (25.3) (13.3) (51.9) Sustaining capital (475.1) (121.9) (231.1) (104.8) (17.3)
- (22.3) (45.7) (37.2) (105.3) Ore reserve development (963.5) (340.8) (418.1) (204.6) -
1 The Financial results for the six months ended 30 June 2013 have been reviewed. The average exchange rate for the six months ended
30 June 2013 was R9.15/US$
Figures may not add as they are rounded independently.
Salient features and income statement for the six months ended 31 December 2012
Figures are in millions unless otherwise stated
Salient features and income statement for the six months ended 31 December 2012
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Corporate Beatrix Kloof Driefontein Group For the six months ended Group Driefontein Kloof Beatrix Corporate
31 December 2012
Operating Results
- 1,486 1,871 2,035 5,392 000'tons Ore milled- total 000'tons 5,392 2,035 1,871 1,486 -
- 987 874 745 2,606 Underground 2,606 745 874 987 -
- 499 997 1,290 2,786 Surface 2,786 1,290 997 499 -
- 2.7 3.9 2.6 3.1 g/t Yield g/t 3.1 2.6 3.9 2.7 -
- 4.0 7.6 5.6 5.7 Underground 5.7 5.6 7.6 4.0 -
- 0.3 0.7 0.8 0.7 Surface 0.7 0.8 0.7 0.3 -
- 130.0 236.6 169.0 535.5 000'ozs Gold produced and sold kg 16,657 5,257 7,358 4,042 -
- 125.9 213.7 134.1 473.7 Underground 14,733 4,170 6,646 3,917 -
- 4.0 22.9 34.9 61.8 Surface 1,924 1,087 712 125 -
- 1,666 1,667 1,668 1,667 US$/oz Gold price received R/kg 453,953 454,290 453,914 453,612 -
- 1,204 1,009 1,481 1,205 US$/oz Total cash cost R/kg 328,246 403,234 274,884 327,857 -
- 1,566 1,412 1,917 1,623 US$/oz All-in costs R/kg 441,940 521,914 384,588 426,348 -
- 1,521 1,366 1,897 1,574 US$/oz Notional cash expenditure R/kg 428,535 516,721 371,922 414,151 -
- 106 127 127 121 US$/ton Operating cost R/ton 1,025 1,073 1,073 897 -
- 155 247 313 231 Underground 1,953 2,648 2,089 1,308 -
- 10 22 19 19 Surface 157 164 183 86 -
US$'mil Financial results(1) R'mil
- 215.2 393.8 276.8 885.8 Revenue 7,561.5 2,388.1 3,339.9 1,833.5 -
- (157.3) (237.2) (257.9) (652.4) Operating costs (5,525.6) (2,184.5) (2,007.8) (1,333.3) -
- 57.9 156.7 18.9 233.4 Operating profit 2,035.9 203.6 1,332.1 500.2 -
Amortisation and
(1.2) (41.1) (40.1) (56.3) (138.7) depreciation (1,176.2) (477.9) (341.5) (346.4) (10.4)
(1.2) 16.7 116.6 (37.3) 94.7 Net operating profit 859.7 (274.3) 990.6 153.8 (10.4)
0.6 1.1 2.0 2.0 5.6 Investment income 47.4 16.6 17.0 8.9 4.9
(0.5) (1.5) (4.6) (4.3) (10.9) Finance expenses (90.2) (35.1) (38.1) (12.2) (4.8)
10.0 (1.9) (3.8) (6.8) (2.4) Other costs (19.9) (56.3) (32.6) (16.1) 85.1
(6.3) (2.7) (2.2) (4.2) (15.4) Share based payments (130.6) (35.6) (19.2) (22.3) (53.5)
- (0.3) (4.4) (4.2) (9.0) Restructuring costs (74.9) (35.0) (36.9) (3.0) -
- (2.8) (7.9) 1.6 (9.1) Royalties (81.6) 10.5 (67.6) (24.5) -
(1.4) (2.1) (14.5) 18.3 0.3 Mining taxation (13.5) 144.4 (125.1) (21.0) (11.8)
2.1 0.4 (11.8) 0.7 (8.7) Deferred taxation (40.8) 17.4 (86.0) 11.0 16.8
3.1 6.8 69.3 (34.2) 45.0 Profit for the period 455.6 (247.4) 602.1 74.6 26.3
Profit attributable to:
3.0 6.8 69.3 (34.2) 44.9 Owners of the parent 454.8 (247.4) 602.1 74.6 25.5
Non-controlling interest
0.1 - - - 0.1 holders 0.8 - - - 0.8
US$'mil Capital expenditure R'mil
(1.1) (40.3) (86.4) (62.6) (190.4) Total expenditure (1,612.5) (531.9) (728.8) (340.7) (11.1)
(1.1) (12.7) (37.2) (20.9) (71.9) Sustaining capital (609.4) (177.2) (313.5) (107.6) (11.1)
- (27.6) (49.2) (41.7) (118.5) Ore reserve development (1,003.1) (354.7) (415.3) (233.1) -
1 The amounts for the 6 months ended 31 December 2012 have not been reviewed, however they have been prepared by deducting the
6 months ended June 2012 reviewed results from the 12 months ended 31 December 2012 audited results. The average exchange rate for the
six months ended 31 December 2012 was R8.47/US$
Figures may not add as they are rounded independently.
UNIT COST BENCHMARKING METRICS
Total cash cost:
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
For the six months ended For the six months ended
31 December 2012 30 June 2013
Corporate Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Corporate
- 1,333.3 2,007.8 2,184.5 5,525.6 R'mil Operating costs (1) R'mil 5,892.0 2,433.3 2,020.0 1,438.7 -
Less:
- (7.1) (12.0) (5.9) (25.0) Rehabilitation inflation (42.5) (25.1) (9.1) (8.3) -
- (25.5) (40.8) (48.3) (114.6) General and Admin costs (116.6) (46.3) (41.2) (29.1) -
Plus:
- 24.5 67.6 (10.5) 81.6 Royalties 167.1 74.0 79.2 13.9 -
- 1,325.2 2,022.6 2,119.8 5,467.6 Total cash cost (2) 5,900.0 2,435.9 2,048.9 1,415.2 -
- 1,333.3 2,007.8 2,184.5 5,525.6 R'mil Operating costs (1)
Plus: R'mil 5,892.0 2,433.3 2,020.0 1,438.7 -
10.4 346.4 341.5 477.9 1,176.2 Amortisation 1,388.8 625.5 467.9 285.9 9.5
- 7.1 12.0 5.9 25.0 Rehabilitation costs 42.5 25.1 9.1 8.3 -
10.4 1,678.7 2,376.1 2,603.6 6,668.8 Total production cost(3) 7,331.3 3,086.5 2,525.9 1,709.4 9.5
4,042 7,358 5,257 16,657 kg Gold sold kg 20,413 8,432 7,818 4,163
130.0 236.6 169.0 535.5 000'ozs 000'ozs 656.3 271.1 251.4 133.8
1,204 1,009 1,481 1,205 US$/oz Total cash cost US$/oz 983 982 891 1,156
415,314 322,927 495,263 400,360 R/kg Total production cost R/kg 359,149 366,046 323,088 410,617
1,525 1,186 1,819 1,472 US$/oz Total production cost US$/oz 1,221 1,244 1,098 1,396
Average exchange rates were US$1 = R8.47 and US$1 = R9.15 for the six months ended 31 December 2012 and the six months
ended 30 June 2013 respectively.
DEFINITIONS
Total cash cost and Total production cost are calculated in accordance with the Gold Institute Industry standard.
(1) Operating costs All gold mining related costs before amortisation/depreciation, taxation and non-recurring items.
(2) Total cash cost Operating costs less off-mine costs, which include general and administration costs, as detailed in the table above.
(3) Total production cost Total cash cost plus amortisation/depreciation and rehabilitation inflation, as detailed in the table above.
Notional cash expenditure ##
Figures are in South African rand millions unless otherwise stated
For the six months ended For the six months ended
31 December 2012 30 June 2013
Corporate Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Corporate
- 2,007.8 2,184.5 5,525.6 R'mil Operating cost R'mil 5,892.0 2,433.3 2,020.0 1,438.7 -
11.1 340.7 728.8 531.9 1,612.5 Capital expenditure 1,438.6 462.7 649.2 309.4 17.3
11.1 1,674.0 2,736.6 2,716.4 7,138.1 Notional cash expenditure 7,330.6 2,896.0 2,669.2 1,748.1 17.3
414,151 371,922 516,721 428,535 R/kg Notional cash expenditure R/kg 359,114 343,454 341,417 419,914
1,521 1,366 1,897 1,574 US$/oz Notional cash expenditure US$/oz 1,221 1,167 1,161 1,427
Average exchange rates were US$1 = R8.47 and US$1 = R9.15 for the six months ended 31 December 2012 and the six months
ended 30 June 2013 respectively.
## Notional cash expenditure (NCE) per kilogram = Operating cost plus capital expenditure divided by gold produced.
All in cost:
World Gold Council Guidance
Figures are in South African rand millions unless otherwise stated
World Gold Council Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
For the six months ended For the six months ended
31 December 2012 30 June 2013
Corporate Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Corporate
- 1,333.3 2,007.8 2,184.5 5,525.6 R'mil Operating costs (1) R'mil 5,892.0 2,433.3 2,020.0 1,438.7 -
Plus:
- 2.1 4.2 (1.0) 5.3 Community costs 12.2 3.4 4.9 3.9 -
53.5 22.3 19.2 35.6 130.6 Share based payments 114.9 27.3 19.2 17.5 50.9
- 24.5 67.6 (10.5) 81.6 Royalties 167.1 74.0 79.2 13.9 -
Rehabilitation interest and
- 3.8 5.9 6.7 16.4 amortisation 44.9 19.0 20.2 5.7 -
- 233.1 415.3 354.7 1,003.1 Ore reserve development 963.5 340.8 418.1 204.6 -
11.1 107.6 313.5 177.2 609.4 Capital expenditure 475.1 121.9 231.1 104.8 17.3
Less:
- (3.4) (3.7) (3.5) (10.6) By-product credit (14.1) (5.9) (4.1) (4.1) -
64.6 1,723.3 2,829.8 2,743.7 7,361.4 Total All-in sustaining cost(2) 7,655.6 3,013.8 2,788.6 1,785.0 68.2
Plus:
- - - - - Other Corporate costs - - - - -
- - - - - Major growth projects - - - - -
64.6 1,723.3 2,829.8 2,743.7 7,361.4 Total All-in cost(3) 7,655.6 3,013.8 2,788.6 1,785.0 68.2
4,042 7,358 5,257 16,657 kg Gold sold kg 20,413 8,432 7,818 4,163
130.0 236.6 169.0 535.5 000'ozs Gold sold 000'ozs 656.3 271.1 251.4 133.8
426,348 384,588 521,914 441,940 R/kg Total All-in cost R/kg 375,036 357,424 356,690 428,777
1,566 1,412 1,917 1,623 US$/oz Total All-in cost US$/oz 1,275 1,215 1,212 1,458
Average exchange rates were US$1 = R8.47 and US$1 = R9.15 for the six months ended 31 December 2012 and the six months ended
ended 30 June 2013 respectively.
DEFINITIONS
All-in costs are calculated in accordance with the World Gold Council Industry standard.
(1) Operating costs As published and includes all mining and processing costs, third party refining costs, permitting costs and corporate
general and admin charges.
(2) Total All-in sustaining costs includes Operating costs and costs detailed above, including sustaining capital expenditure, based on
managed gold sales.
(3) Total All-in costs includes sustaining and group costs, excluding income tax, merger & acquisition activity, working capital, impairments,
financing costs, one-time severance charges and items needed to normalise earnings.
QUARTERLY SALIENT FEATURES AND DEVELOPMENT RESULTS:
United States Dollars South African Rand
For the quarter ended
30 June 2013
Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix
1,057 1,008 1,365 3,430 000'tons Ore milled- total 000'tons 3,430 1,365 1,008 1,057
554 501 656 1,711 Underground 1,711 656 501 554
503 507 709 1,719 Surface 1,719 709 507 503
2.2 4.3 3.3 3.2 g/t Yield g/t 3.2 3.3 4.3 2.2
1,057 1,008 1,365 3,430 000'tons Ore milled- total 000'tons 3,430 1,365 1,008 1,057
3.9 7.9 6.1 5.9 Underground 5.9 6.1 7.9 3.9
554 501 656 1,711 Underground 1,711 656 501 554
0.3 0.7 0.7 0.6 Surface 0.6 0.7 0.7 0.3
503 507 709 1,719 Surface 1,719 709 507 503
74.2 138.2 144.5 356.9 000'ozs Gold produced and sold kg 11,101 4,494 4,301 2,306
2.2 4.3 3.3 3.2 g/t Yield g/t 3.2 3.3 4.3 2.2
70.1 126.7 128.4 325.2 Underground 10,114 3,993 3,942 2,179
3.9 7.9 6.1 5.9 Underground 5.9 6.1 7.9 3.9
4.1 11.5 16.1 31.7 Surface 987 501 359 127
0.3 0.7 0.7 0.6 Surface 0.6 0.7 0.7 0.3
1,436 1,440 1,443 1,440 US$/oz Gold price received R/kg 435,754 436,627 435,620 434,302
74.2 138.2 144.5 356.9 000'ozs Gold produced and sold kg 11,101 4,494 4,301 2,306
1,039 807 934 907 US$/oz Total cash cost R/kg 274,300 282,621 244,176 314,267
70.1 126.7 128.4 325.2 Underground 10,114 3,993 3,942 2,179
1,285 1,057 1,102 1,125 US$/oz Notional cash expenditure R/kg 340,465 333,467 319,740 388,899
4.1 11.5 16.1 31.7 Surface 987 501 359 127
1,310 1,106 1,143 1,172 US$/oz All-in cost R/kg 354,518 345,683 334,457 396,271
1,436 1,440 1,443 1,440 US$/oz Gold price received R/kg 435,754 436,627 435,620 434,302
74 108 99 94 US$/ton Operating cost R/ton 884 928 1,020 697
1,039 807 934 907 US$/oz Total cash cost R/kg 274,300 282,621 244,176 314,267
130 201 186 172 Underground 1,620 1,751 1,888 1,224
1,285 1,057 1,102 1,125 US$/oz Notional cash expenditure R/kg 340,465 333,467 319,740 388,899
12 17 18 16 Surface 151 166 162 117
1,310 1,106 1,143 1,172 US$/oz All-in cost R/kg 354,518 345,683 334,457 396,271
17.0 37.0 24.6 79.5 US$'mil Total capital expenditure(1) R'mil 747.8 231.7 347.3 159.9
74 108 99 94 US$/ton Operating cost R/ton 884 928 1,020 697
6.7 13.8 7.1 28.5 Sustaining capital 268.5 66.7 130.2 62.7
130 201 186 172 Underground 1,620 1,751 1,888 1,224
10.3 23.1 17.5 51.0 Ore reserve development 479.3 165.0 217.1 97.2
The average exchange rate for the quarter ended 30 June 2013 was R9.41/US$
1 Group capital expenditure includes corporate capital Total capital expendituremillion (US$0.9 million).
Figures may not add rate for rounded independently.
United States Dollars South African Rand
For the quarter ended
31 March 2013
Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix
Salient Features
852 989 1,165 3,006 000'tons Ore milled- total 000'tons 3,006 1,165 989 852
431 438 524 1,393 Underground 1,393 524 438 431
421 551 641 1,613 Surface 1,613 641 551 421
2.2 3.6 3.4 3.1 g/t Yield g/t 3.1 3.4 3.6 2.2
852 989 1,165 3,006 000'tons Ore milled- total 000'tons 3,006 1,165 989 852
4.1 7.2 6.6 6.0 Underground 6.0 6.6 7.2 4.1
431 438 524 1,393 Underground 1,393 524 438 431
0.3 0.7 0.8 0.6 Surface 0.6 0.8 0.7 0.3
421 551 641 1,613 Surface 1,613 641 551 421
59.7 113.1 126.6 299.4 000'ozs Gold produced and sold kg 9,312 3,938 3,517 1,857
2.2 3.6 3.4 3.1 g/t Yield g/t 3.1 3.4 3.6 2.2
56.3 101.1 110.9 268.3 Underground 8,346 3,449 3,145 1,752
4.1 7.2 6.6 6.0 Underground 6.0 6.6 7.2 4.1
3.4 12.0 15.7 31.1 Surface 966 489 372 105
0.3 0.7 0.8 0.6 Surface 0.6 0.8 0.7 0.3
1648 1,646 1,643 1,645 US$/oz Gold price received R/kg 470,157 469,528 470,372 471,082
59.7 113.1 126.6 299.4 000'ozs Gold produced and sold kg 9,312 3,938 3,517 1,857
1,301 994 1,036 1,073 US$/oz Total cash cost R/kg 306,594 296,039 283,964 371,836
56.3 101.1 110.9 268.3 Underground 8,346 3,449 3,145 1,752
1,604 1,287 1,242 1,334 US$/oz Notional cash expenditure R/kg 381,347 354,850 367,927 458,428
3.4 12.0 15.7 31.1 Surface 966 489 372 105
1,641 1,343 1,297 1,398 US$/oz All-in cost R/kg 399,495 370,823 383,878 469,144
1648 1,646 1,643 1,645 US$/oz Gold price received R/kg 470,157 469,528 470,372 471,082
93 113 113 107 US$/ton Operating cost R/ton 952 1,001 1,003 824
1,301 994 1,036 1,073 US$/oz Total cash cost R/kg 306,594 296,039 283,964 371,836
180 235 227 215 Underground 1,910 2,018 2,088 1,599
1,604 1,287 1,242 1,334 US$/oz Notional cash expenditure R/kg 381,347 354,850 367,927 458,428
3 16 19 14 Surface 123 170 140 30
1,641 1,343 1,297 1,398 US$/oz All-in cost R/kg 399,495 370,823 383,878 469,144
16.8 34.0 26.0 77.7 US$'mil Total capital expenditure(2) R'mil 690.8 231.0 301.9 149.5
93 113 113 107 US$/ton Operating cost R/ton 952 1,001 1,003 824
4.7 11.4 6.2 23.2 Sustaining capital 206.6 55.2 100.9 42.1
180 235 227 215 Underground 1,910 2,018 2,088 1,599
12.1 22.6 19.8 54.5 Ore reserve development 484.2 175.8 201.0 107.4
3 16 19 14 Surface 123 170 140 30
The average exchange rate for the quarter ended 31 March 2013 was R8.89/US$
2 Group capital expenditure includes corporate capital expenditure of R8.4 million (US$0.9 million).
Figures may not add rate for are rounded independently.
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.
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.
Driefontein Quarter ended 31 March 2013 Quarter ended 30 June 2013 Six months ended 30 June 2013
Carbon Carbon Carbon
Reef leader Main VCR leader Main VCR leader Main VCR
Advanced (m) 2,813 754 649 2,747 920 808 5,560 1,674 1,457
Advanced (m) 665 300 234 760 266 353 1,425 566 587
on reef
Sampled (m) 498 222 144 405 126 194 903 348 338
Channel (cm) 79 49 60 60 52 64 77 50 63
width
Average (g/t) 15.1 16.6 28.7 24.1 17.3 33.2 16.6 15.6 27.3
value (cm.g/t) 1,187 810 1,723 1,447 901 2,117 1,278 782 1,717
Kloof Quarter ended 31 March 2013 Quarter ended 30 June 2013 Six months ended 30 June 2013
Reef VCR Kloof Main Libanon VCR Kloof Main Libanon VCR Kloof Main Libanon
Advanced (m) 3,681 169 865 7 3,838 268 938 17 7,519 437 1,803 24
Advanced (m) 563 67 204 7 618 140 117 17 1,181 207 321 24
on re
Sampled (m) 339 45 225 3 390 142 150 6 729 187 375 9
Channel (cm) 120 136 107 104 98 174 142 90 108 166 121 95
width
Average (g/t) 20.6 2.6 7.4 7.0 25.3 3.1 10.3 9.4 22.9 3.0 8.8 8.5
value (cm.g/t) 2,464 350 795 728 2,465 544 1,467 845 2,464 497 1,064 806
Beatrix Quarter ended 31 March 2013 Quarter ended 30 June 2013 Six months ended 30 June 2013
Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Advanced (m) 3,263 730 4,269 568 7,532 1,298
Advanced (m) 435 175 1,126 149 1,561 324
on reef
Sampled (m) 525 126 1,197 183 1,722 309
Channel (cm) 159 70 156 88 157 81
width
Average (g/t) 7.6 12.9 7.8 10.6 7.7 11.4
value (cm.g/t) 1,201 898 1,215 937 1,211 921
ADMINISTRATION AND CORPORATE INFORMATION
Investor Enquiries Listings American Depository Receipts
James Wellsted JSE : SGL Transfer Agent
Head of Corporate Affairs NYSE : SBGL Bank of New York Mellon
Sibanye Gold Limited BNY Mellon Shareowner Services
+27 83 453 4014 Website P O Box 358516
+27 11 278 9656 www.sibanyegold.co.za Pittsburgh, PA15252-8516
james.wellsted@sibanyegold.co.za US toll-free telephone: +1 888 269
Directors: 2377
Corporate Secretary Sello Moloko* (Chairman) Tel: +1 201 680 6825
Cain Farrel Neal Froneman (CEO) e-mail: shrrelations@bnymellon.com
Tel: +27 10 001 1122 Charl Keyter (CFO)
Fax: +27 11 278 9863 Timothy Cumming*
cain.farrel@sibanyegold.co.za Barry Davison* Transfer Secretaries
Rick Menell* South Africa
Registered Office Nkosemntu Nika* Computershare Investor Services
Libanon Business Park Keith Rayner* (Proprietary) Limited Ground Floor
1 Hospital Street, Susan van der Merwe* 70 Marshall Street
(Off Cedar Ave), Jerry Vilakazi* Johannesburg, 2001
Libanon, Westonaria, Cain Farrel (Company Secretary) P O Box 61051
1780 *Non-Executive Marshalltown, 2107
South Africa Tel: +27 11 370 5000
Office of the United Kingdom Fax: +27 11 688 5248
Private Bag X5 Secretaries
Westonaria, London Transfer Secretaries
1780 St James's Corporate Services United Kingdom
South Africa Limited Capita Registrars
Suit 31, Second Floor The Registry
Tel: +27 11 278 9600 107 Cheapside 34 Beckenham Road
Fax: +27 11 278 9863 London Beckenham
EC2V 6DN Kent BR3 4TU
Sibanye Gold Limited United Kingdom England
Incorporated in the Republic Tel: +44 20 7796 8644 Tel: +44871 664 0300 [calls cost
of South Africa Fax: +44 20 7796 8645 10p a minute plus network
Registration number extras, lines are open 8.30am
2002/031431/06 5pm Mon-Fri] or [from overseas]
Share code: SGL +44 20 8639 3399
Issuer code: SGL Fax: +44 20 8658 3430
ISIN ZAE E000173951 e-mail: 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.
Date: 13/08/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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