Wrap Text
Operating and Financial Results
For the six months and financial year ended 31 December 2013
Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
Issuer code: SGL
ISIN – ZAE E000173951
Listings
JSE : SGL
NYSE : SBGL
Website
www.sibanyegold.co.za
Operating and Financial Results
For the six months and financial year ended 31 December 2013
INCREASE IN EARNINGS DESPITE LOWER GOLD PRICE
WESTONARIA 20 February 2014: Sibanye Gold Limited (“Sibanye Gold”) (JSE: SGL & NYSE: SBGL) is pleased to
report operating and financial results for the six months ended 31 December 2013, and reviewed condensed,
consolidated preliminary financial statements for the year ended 31 December 2013.
Salient features for the six months ended 31 December 2013:
- Operating profit increased by 19% to R4.0 billion (US$399 million) from R3.4 billion (US$368 million)
during the six months ended June 2013.
- 18% increase in gold produced to 24 061kg (773 600oz), restoring the quarterly production rate to 2010
levels.
- All-in cost reduced by 10% from the previous six months to R336 848/kg (US$1 043/oz).
- The All-in cost margin increased to 20% from 17% during the previous 6 months.
- Positive safety trends maintained, with all time low fatal injury frequency rate of 0.10 per million
man hours for the year.
- Net debt reduced to R499 million (US$48 million) at 31 December 2013 from R1.9 billion (US$188 million)
at 30 June 2013.
- R2.0 billion (US$207 million) debt repayments during the 6 months ended 31 December 2013, reduced gross
debt to R2.0 billion (US$193 million).
- Bridge Loan Facilities was refinanced to more favourable and less restrictive terms.
- Gold reserves increased by 46% to 19.7 Moz, with a maiden uranium reserve declared of 43.2 Mlb.
- Agreement to acquire the Cooke operations and Wits Gold reached, subject to certain conditions
precedent.
The Board approved a maiden final dividend of 75 cents per share (ZAR) for the six months ended
31 December 2013, resulting in a total dividend of 112 cents per share (ZAR) in 2013. This is equivalent
to a dividend yield of 5.5% at Sibanye Gold’s closing share price of R20.40 on 18 February 2014 and 9.1%
at the closing share price on 31 December 2013.
United States Dollars Key Statistics South African Rand
Year Six months ended Six months ended Year
Dec 2012 Dec 2013 Dec 2012 Jun 2013 Dec 2013 Dec 2013 Jun 2013 Dec 2012 Dec 2013 Dec 2012
1 223.6 1 429.9 535.5 656.3 773.6 000’oz Gold produced kg 24 061 20 413 16 657 44 474 38 059
12 185 13 624 5 392 6 436 7 188 000ton Ore milled 000ton 7 188 6 436 5 392 13 624 12 185
1 652 1 408 1 667 1 535 1 301 $/oz Revenue R/kg 420 423 451 448 453 953 434 663 434 943
108 92 120 99 85 $/ton Operating cost R/ton 852 909 1 020 879 888
699.6 766.4 236.4 367.9 398.6 $m Operating profit Rm 3 992.0 3 365.9 2 060.9 7 357.9 5 729.7
35 38 27 37 39 % Operating margin % 39 37 27 38 35
1 086 885 1 205 983 804 $/oz Total cash cost R/kg 259 919 289 031 328 246 273 281 285 851
1 390 1 084 1 568 1 214 976 $/oz NCE R/kg 315 311 357 032 427 040 334 461 366 029
1 453 1 148 1 623 1 275 1 043 $/oz All-in cost R/kg 336 848 375 036 441 940 354 376 382 687
12 18 3 17 20 % All-in cost margin % 20 17 3 18 12
363.8 176.3 44.9 31.5 144.8 $m Basic earnings Rm 1 402.4 290.0 454.8 1 692.4 2 979.6
363.6 243.6 44.8 96.1 147.5 $m Headline earnings Rm 1 428.9 880.8 453.4 2 309.8 2 977.9
Stock data JSE Limited – (SGL)
Number of shares in issue Price range per ordinary share ZAR7.17 to ZAR15.70
– at end of December 735 079 031 Average daily volume 2 826 900
– weighted average 734 367 003 NYSE – (SBGL); one ADR represents four ordinary shares
Free Float 100% Price range per ADR US$2.81 to US$6.09
ADR Ratio 1:4 Average daily volume 804 372
Bloomberg/Reuters SGLS / SGLJ.J The above is for the 6 months ended 31 December 2013
STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER OF SIBANYE GOLD
“Sibanye Gold’s operating performance for the second half of the year ended 31 December 2013 was
significantly better than that of the first half, with production increasing by 18% and All-in cost 10%
lower. Importantly, production for the December 2013 quarter was maintained at 12 000kg (385 800oz), which
is similar to that reported for the September 2013 quarter and 2% above our forecast of 11 750kg
(378 000oz). Recent production levels represent the highest combined production from our Beatrix,
Driefontein and Kloof operations since the December 2010 quarter and, despite flat production quarter-on
quarter, costs continued to decline. Operating cost of R842/ton (US$83/ton) and All-in cost of R333 833/kg
(US$1 027/oz) were both 2% lower than in the September 2013 quarter.
Our focus on establishing a production-friendly environment, coupled with a dedicated health and safety
strategy and initiatives to engineer out risk, continue to deliver safety improvement as we strive towards
our goal of Zero Harm. The fatal injury frequency rate at the end of the year was 0.10 per million man
hours worked, which is a 41% improvement over the previous year and the lowest ever rate achieved over a
year at these deep level gold mines. The lost day injury frequency rate was 6.13 per million man hours
worked, which represents an 11% year-on-year improvement. Despite the depth and labour intensive nature of
our operations, our safety indicators are starting to approach global mining safety benchmarks.
After a thorough operational review in the first half of 2013, implementation of Sibanye Gold’s new
operating strategy and organisational structures has delivered significant production and cost benefits.
Organisational effectiveness in 2013 improved through the implementation of our new operating model, which
includes:
- Re-organising and rolling out flatter, team based management structures, which position experienced
mining management closer to the face and tightened the focus on core mining at the operations;
- Implementing needs focused management information systems supported by detailed monthly business unit
performance reviews;
- Revising the ore reserve management principles and practices and reassessing and introducing new
operating plans applicable to individual business units;
- Focusing on the quality of mining – improving the Mine Call Factor by focusing on the areas that result
in gold losses, and greater attention to stoping width control; and
- Eliminating scattered regional support functions by centralising and rightsizing Group support services
into customer focused, cost driven centralised service departments.
As a result of implementing our operating model, gold production for the six months ended 31 December 2013
increased to 24 061kg (773 600oz), which is 3 648kg (117 300oz) above production during the six months
ended 30 June 2013. Total cash cost of R259 919/kg (US$804/oz) and All-in cost of R336 848/kg
(US$1 043/oz) were both 10% lower than during the first six months, largely as a result of the increase
in gold production. Underground cost per ton milled declined by 12% to R1 527/ton (US$152/ton) from
R1 737/ton (US$190/ton) in the first half of the year, driven by a 19% increase in underground volumes
milled, and strict controls on underground operating costs, which increased by only 5% to R5 639 million
(US$560 million). This was despite the increase in milled throughput, annual wage increases and elevated
winter electricity tariffs in the second half of the year.
Despite receiving a 7% lower average Rand gold price of R420 423/kg (US$1 301/oz) in the six months ended
31 December 2013, Sibanye Gold generated an operating profit of R4.0 billion (US$399 million) during the
period, which is 19% higher than in the previous six months. Net cash generated for the period, before net
loan repayments and dividends, was R1.7 billion (US$170 million).
Sibanye Gold is now comfortably positioned in the lowest quartile of the global All-in cost curve and is
capable of generating solid cash flow under lower gold prices than currently prevail. The significant
decrease in operating unit costs has reduced operational paylimits (or the grade at which an ore reserve
can be mined without generating profit or loss), enabling conversion of resource to reserve, improving
operational flexibility and positioning Sibanye Gold to extend its operating life.
Revised Life of Mine planning has resulted in an update of Sibanye Gold’s Mineral Resources and Reserves
for 2014. Total gold Reserves have increased by 46% to 19.7 Moz (including 1.5 Moz of Reserves depleted
through mining during 2013) at 31 December 2013, from 13.5 Moz in 2013, due to conversion of both
underground and surface Resources into Reserve. Including the effects of depletion through mining,
underground gold Reserves increased by 2.4 Moz and surface gold Reserves, mainly in tailings storage
facilities following the completion of a pre-feasibility study, increased by 4.0 Moz. Total gold Resources
reduced by 9.3 Moz to 65.0 Moz, primarily due to re-evaluation of the paylimit on which indicated
Middelvlei Reef Resources at Kloof Main and 8 Shafts are based.
A maiden uranium Resource comprising 419 Mtons containing 68.8 Mlbs uranium has been determined based on
uranium contained in the tailings storage facilities at Driefontein and Kloof and the underground Beisa
Section orebody at Beatrix 4 Shaft. The surface uranium resources are included in reserves comprising
406 Mtons containing 43.2 Mlbs of uranium.
Operating and financial comparisons with the year ended 31 December 2012 are complicated by the
significant operational disruptions experienced in 2012 and various accounting adjustments applied in both
years. Gold production for 2013 was 17% higher than that achieved in 2012 and the All-in cost was
7% lower, both as a result of the severe strikes in 2012 and the re-focus on mining and cost saving
initiatives after unbundling early in 2013. Operating profit increased to R7.4 billion (US$767 million)
from R5.7 billion (US$700 million) due to the increased revenue, partly offset by production and inflation
related cost increases. The gold price was unchanged year-on-year and averaged R434 663/kg during 2013.
Despite the increase in operating profit, once-off items including a R821 million (US$90 million)
impairment in the carrying value of the Beatrix West section, R439 million (US$46 million) restructuring
costs and increased royalties and taxation charges, resulting from the improvement in profitability,
resulted in basic earnings halving to R1.7 billion (US$176 million). In 2012 we accounted for a deferred
tax credit due to amendments to the tax rate of R1.0 billion (US$123 million). This compares with a net
deferred tax credit in 2013 of R214 million (US$22 million) arising from an adjustment to the long term
deferred tax rate.
Net cash generated for the year ended 31 December 2013, before net loan repayments and dividends, was
R3.6 billion (US$375 million), which is equivalent to approximately 40% of Sibanye Gold’s market
capitalisation as at 31 December 2013. Debt repayments during the year totaled R2.2 billion
(US$231 million), reducing gross debt to R2.0 billion (US$193 million) and net debt to R499 million
(US$48 million) at year end. The Group paid a maiden R272 million (US$27 million) interim dividend in
October 2013.
Sibanye Gold’s Bridge Loan Facilities was restructured on 13 December 2013. The restructured R4.5 billion
Facility comprises a R2.5 billion revolving credit facility and a R2.0 billion term loan facility, both of
which mature in three years’ time. This is a strong vote of confidence by the lenders in Sibanye Gold’s
cash generative ability.
We expect the cost benefits from the restructuring completed late in 2013 to deliver additional value in
2014. As we continue to review every aspect of the business, we expect to secure further, but more
limited, reductions in overhead costs. In 2014 we will place greater emphasis on increasing output and
improving productivity, with potential volume and efficiency gains continuing to drive down operating
costs. The quantum and timescale of these benefits are not included in our forecasts. Key areas with
significant potential for further cost and productivity improvements, include:
- Further reorganisation of Group support services;
- Cost reductions from detailed analysis of the supply chain - both up-stream and down-stream;
- Alternate shift cycles, stoping crew optimisation and a bonus review to improve effectiveness; and
- Further conversion of Resources to Reserves through:
- Continued assessment of the potential to safely mine high-grade white areas (remnant resources) and
support pillars, which will be added to the Reserves on an annual basis; and
- Assessment of the economic viability of vast secondary reef resources.
In line with our strategy of extending the lives of our operations and assets, Sibanye Gold announced
three transactions during the six months ended 31 December 2013.
- In August 2013, agreement was reached with Gold One International Limited to acquire its Cooke
underground and surface assets for such number of shares that represent 17% of Sibanye Gold’s issued share
capital, on a fully diluted basis on the closing of the transaction. This transaction is expected to be
earnings and cash flow accretive. Importantly, the transaction secures the Cooke surface tailings
Resources and the Cooke 4 gold and uranium plant, which are critical to unlocking the significant gold and
uranium Resources contained in the surface tailings storage facilities across our West Rand operations.
- The second transaction signals greater co-operation between the gold producers in South Africa in order
to unlock value in the industry. Sibanye Gold agreed to exchange two mining right portions at its Beatrix
operation, which are not included in its current life of mine, for two mining right portions at Harmony’s
Joel operation. These acquired mining rights are more readily accessible from both the Beatrix North and
South sections. Two further mining right portions have been exchanged with Harmony for a royalty of 3% of
net revenue derived from mining these portions.
- Finally, in December 2013, Sibanye Gold agreed to acquire the entire issued ordinary share capital of
Witwatersrand Consolidated Gold Resources Limited (“Wits Gold”) for a cash consideration of approximately
R410 million, thereby securing substantial gold and uranium resources. The majority of these resources are
adjacent to our Beatrix operation and, through synergy with existing operations and infrastructure, will
secure the long term future of Beatrix. Wits Gold also has an option to acquire the Burnstone mine from
the liquidators of Great Basin Gold and a decision to exercise this option will be made in due course.
Sibanye Gold expects to conclude all of these transactions early in 2014. Details of these transactions
are available on the Sibanye Gold website – www.sibanyegold.co.za. Based on the solid progress towards
restoring operational credibility in 2013 at our existing operations and the implementation of an
effective operating strategy, we are well positioned to seamlessly integrate these acquisitions into
Sibanye Gold and deliver on synergies with our current operations.
For the year ending December 2014, gold production in the normal course of business from the Kloof,
Driefontein and Beatrix Operations is forecast at 44 000kg (1.4 million oz). Total cash cost is forecast
to be approximately R270 000/kg (US$800/oz) and All-in cost approximately R360 000/kg (US$1 070/oz),
assuming an average exchange rate of R10.50 to the US Dollar during the year. Capital expenditure for the
year has been budgeted at approximately R3.1 billion (US$295 million).
Considering the improving operational performance, robust cash generation and, following the lifting of
restrictions on the payment of dividends arising from the debt restructuring, the Board has declared a
final dividend of 75 cents per share for the six month period ended 31 December 2013. The full year
dividend of 112 cents per share (R823 million), or 35% of 2013 normalised earnings, is at the upper end of
the range defined by Sibanye Gold’s dividend policy and reflects the Board’s confidence in the outlook for
the Group in 2014.
In conclusion, during its first year as an independently listed gold producer, Sibanye Gold has
successfully delivered an operational turnaround. The operational base has been reset, securing a stronger
and longer future at our Operations and we have entered into transactions which are value accretive and
provide significant growth potential.
I am confident that we have now sustainably arrested the declining production and rising cost trends that
have characterized these operations for many years, and that the higher production levels can be
maintained. The reset cost base meaningfully extends the operating lives of our mines and positions the
company for value accretive growth. Sibanye Gold will remain true to its dividend yield policy, continuing
with our strategy to deliver superior value for all stakeholders.”
20 February 2014
N. Froneman
Chief Executive Officer
FINANCIAL AND OPERATING REVIEW OF THE GROUP
For the six months ended 31 December 2013 compared with the six months ended 30 June 2013.
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 Department of Mineral Resources (“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. The rate of improvement towards compliance with safety targets and the implementation of
solutions to mitigate risks are encouraging and reflect the teams’ commitment to health and safety.
Regrettably five fatalities occurred during six months ended 31 December 2013. All of the incidents have
been investigated and plans implemented at the operations to prevent the reoccurrence of similar
accidents. Sibanye Gold is committed to safety and will continue to work towards eliminating accidents at
its operations. During the year ended 31 December 2013, Sibanye Gold continued to recorded improvements in
all safety indices: the Group fatal injury frequency rate reduced by 41% from 0.17 (fatalities per million
man hours worked) in 2012, to 0.10, the lost time injury frequency rate declined by 11% from 6.90 to 6.13
and the serious injury frequency rate from 3.67 to 3.5 per million man hours worked.
Operating performance
Gold produced during the six months ended 31 December 2013 was 18% higher than in the six months ended
30 June 2013, at 24 061kg (773 600oz), with total cash cost of R259 919/kg (US$804/oz) and All-in cost of
R336 848/kg (US$1 043/oz), both 10% lower than the first six months of the year.
Gold produced during the December 2013 quarter of 12 000kg was flat relative to the September 2013 quarter
production, but safety measures and unit costs continued to improve. All-in cost decreased by 2% to
R333 833/kg (US$1 027/oz) from R339 847/kg (US$1 059/oz), resulting in a steady All-in cost margin of 20%,
despite a lower average gold price received. The mines were largely untroubled by labour unrest or safety
stoppages and represent steady state production levels from these operations during quarters which are not
affected by holidays and safety stoppages.
The detailed quarterly salient features and development results are included in this report on pages 21
and 22.
Revenue
The average US dollar gold price was 15% lower in the second half of the year, at $1 301/oz. This decline
was partly offset by continued depreciation in the Rand, from an average of R9.15/US$ in the first half of
the year, to an average of R10.05/US$ in the second half of the year. As a result, the average Rand gold
price received was only 7% lower at R420 423/kg for the six months ended 31 December 2013. Despite the
lower average gold price received, higher gold production resulted in revenue increasing by 10% to
R10 116 million (US$1 007 million) from R9 215 million (US$1 007 million) for the six months to June 2013.
Operating costs
Group operating costs increased to R6 124 million (US$608 million) from R5 850 million (US$639 million).
This was mostly due to above inflation annual wage increases of between 7.5% and 8.0% effective from
1 July 2013, an effective 10% electricity tariff increase from 1 April 2013 and higher winter electricity
tariffs for two months during the six months ended 31 December 2013, compared with only one month in the
first half of the year, as well as higher variable costs associated with the increase in production.
Despite these increases, the operating costs for the period were less than 5% above the first half of the
year as a result of the continued implementation of cost saving initiatives.
Operating costs in prior periods included a provision for rehabilitation inflation which has now been
reclassified and included in finance expenses, below the operating profit. The total rehabilitation
inflation for 2013 amounted to R85 million, split more or less evenly between the half years.
Operating margin
The Group operating margin increased to 39% from 37% as a result of the increase in production and the
cost saving initiatives, which resulted in lower unit costs for the six months ended 31 December 2013.
Capital expenditure
Capital expenditure increased marginally to R1 463 million (US$145 million) from R1 439 million
(US$157 million). An increase in expenditure on sustaining projects, being mainly technical upgrades at
the Driefontein Operation (“Driefontein”), was offset by a decrease in ore reserve development at the
Beatrix West section, where capital expenditure has been substantially reduced, following a fire and
subsequent restructuring earlier in the year.
All-in costs, total cash cost and Notional cash expenditure (“NCE”)
A new cost measure, “All-in cost”, was introduced in mid-year by the World Gold Council. Sibanye Gold has
adopted the principle prescribed by the Council. This new non-GAAP measure provides more transparency into
the costs associated with gold mining.
The “All-in cost” metric provides 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. This measure will replace the NCE
measure in 2014. Final NCE information is provided on pages 17 and 19.
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 All-in cost calculation (see the details on pages 18 and 20), together with
corporate and major capital expenditure aimed at growing the Group. At this stage, with the focus on our
current operations, the All-in sustaining cost and the All-in cost are the same.
Restructuring costs
Sibanye Gold began implementing its new operating strategy and model focused on reducing costs and
improving organisational effectiveness in 2013. Part of this process required reducing the workforce to a
level which would support a sustainable production rate, whilst increasing efficiencies and productivity.
Restructuring costs for the six-months ended 31 December 2013 of R96 million were 72% lower than in the
prior six months and were again predominantly due to voluntary separation packages which were mainly
applied for by employees at the Kloof (“Kloof”) and Driefontein Operations. Voluntary separation costs of
approximately R253 million (US$28 million) were incurred at Kloof and Driefontein during the year ended
31 December 2013. The Beatrix Operation (“Beatrix”) incurred retrenchment costs of approximately
R74 million (US$8 million) in 2013, following extensive negotiations with organised labour and other
stakeholders during the Section 189 process.
Dividend declaration
Sibanye Gold‘s dividend policy is to return between 25% and 35% of normalised earnings to shareholders.
The Board may also consider declaring a special dividend after due consideration of the Group cash
position and future requirements. Sibanye Gold defines normalised earnings as basic earnings excluding
gains and losses on foreign exchange and financial instruments, non-recurring items and its share of
result of associates, after taxation.
Sibanye Gold declared its maiden interim dividend in September 2013 after amending the terms of the Bridge
Loan Facilities Agreement, which was concluded in November 2012. The Bridge Loan Facilities Agreement
previously contained restrictive covenants on the payment of dividends in 2013.
In terms of initial amendments made to the Bridge Loan Facilities Agreement on 8 July 2013, the Sibanye
Gold Board of Directors was able to declare an interim dividend of 37 cents per share. On 13 December
2013, the debt was wholly refinanced on improved terms and conditions and all restrictions on dividend
payments were removed.
The Board has accordingly approved a Final dividend number 1 of 75 SA cents per share (gross) in respect
of the six months ended 31 December 2013. The full year dividend of 112 cents per share, equivalent to
35% of 2013 normalised earnings, is at the upper end of the range defined by Sibanye Gold’s dividend
policy and reflects the Board’s confidence in the outlook for the Group in 2014.
The final dividend is subject to the new Dividends Withholding Tax that was introduced with effect from
1 April 2012. In accordance with paragraphs 11.17 (a) (i) and 11.17 (c) of the JSE Listings Requirements
the following additional information is disclosed:
- The dividend has been declared out of income reserves;
- The local Dividends Withholding Tax rate is 15% (fifteen per centum);
- The gross local dividend amount is 75 SA cents per ordinary share for shareholders exempt from the
Dividends Tax;
- The Company has no STC credits available and the Dividend Withholding Tax of 15% will be applicable to
this dividend;
- The net local dividend amount is 63.7500 SA cents (85% of 75 SA cents) per ordinary share for
shareholders liable to pay the Dividends Withholding Tax;
- Sibanye Gold currently has 735 079 031 ordinary shares in issue;
- Sibanye Gold’s income tax reference number is 9431 292 151; and
- Sibanye Gold’s Auditors are KPMG Inc. and the individual auditor is Jacques Erasmus.
Shareholders are advised of the following dates in respect of the final dividend:
- Final dividend number 1: 75 SA cents per share
- Last date to trade cum dividend: Friday, 7 March 2014
- Sterling and US dollar conversion date: Monday, 10 March 2014
- Shares commence trading ex-dividend: Monday, 10 March 2014
- Record date: Friday, 14 March 2014
- Payment of dividend: Monday, 17 March 2014
Please note that share certificates may not be dematerialised or rematerialised between Monday, 10 March
2014, and Friday, 14 March 2014, both dates inclusive.
REVIEW OF OPERATIONS
Driefontein
Six months Six months
ended ended
Dec 2013 Jun 2013
Ore milled 000 tons 2 780 2 530
Gold produced kg 10 343 8 432
000’oz 332.5 271.1
Yield – underground g/t 7.0 6.3
– combined g/t 3.7 3.3
Operating cost – u/g R/ton 1 663 1 849
– surface R/ton 162 168
Total cash cost R/kg 247 336 288 888
US$/oz 765 982
All-in cost R/kg 312 472 357 424
US$/oz 967 1 215
All-in cost margin % 26 21
Gold production increased by 23% to 10 343kg (332 500oz) for the six months ended 31 December 2013, from
8 432kg (271 100oz) for the six months ended 30 June 2013. This was due to an increase in underground
volumes mined and processed, together with an improved yield.
Underground ore milled increased by 14% to 1 347 000 tons from 1 180 000 tons and the underground yield
increased by 11% to 7.0g/t, from 6.3g/t due to an improvement in the Mine Call Factor (“MCF”) and a
greater focus on the quality of mining and planned production from higher grade panels during the period.
Surface throughput increased by 6% to 1 433 000 tons from 1 350 000 tons, mostly offsetting a decline in
the surface yield, from 0.7g/t to 0.6g/t. The cost of ore milled from underground decreased by 10% to
R1 663/ton from R1 849/ton and from surface by 4% to R162/ton from R168/ton, due to the increase in
volumes processed.
Main development increased by 4% to 9 060 metres from 8 691 metres and on-reef development, due to the
completion of certain raise lines, decreased by 29% to 1 821 metres from 2 578 metres. The average
development value increased by 35% to 1 668cm.g/t from 1 235cm.g/t.
Operating cost increased by just 3% to R2 473 million (US$245 million) from R2 408 million
(US$263 million) due to cost saving initiatives implemented during the year, which partly offset increased
consumption of stores and electricity linked to the increase in production, higher winter electricity
tariffs, other inflationary costs and higher annual wages which were implemented from 1 July 2013.
Total cash cost decreased by 14% to R247 336/kg (US$765/oz) from R288 888/kg (US$982/oz).
Operating profit increased by 34% to R1 879 million (US$189 million) from R1 403 million (US$153 million),
as the 23% increase in gold production more than offset a 7% decline in the average gold price received.
Capital expenditure increased by 21% to R560 million (US$56 million) from R463 million (US$51 million),
with the majority of expenditure on ore reserve development (“ORD”), energy saving projects, relocation of
the laboratory and social and safety related projects.
All-in cost decreased by 13% to R312 472/kg (US$967/oz) from R357 424/kg (US$1 215/oz) as a result of the
increase in production, which offset the increase in operating costs and the higher capital expenditure.
The All-in cost margin increased from 21% to 26%.
Kloof
Six months Six months
ended ended
Dec 2013 Jun 2013
Ore milled 000 tons 2 226 1 997
Gold produced kg 8 159 7 818
000’oz 262.3 251.4
Yield – underground g/t 7.8 7.5
– combined g/t 3.7 3.9
Operating cost – u/g R/ton 1 992 1 972
– surface R/ton 141 151
Total cash cost R/kg 261 086 262 075
US$/oz 808 891
All-in cost R/kg 351 195 356 690
US$/oz 1 087 1 212
All-in cost margin % 16 21
Gold production increased by 4% to 8 159kg (262 300oz) for the six month period ended 31 December 2013,
from 7 818kg (251 400oz) for the six month period ended 30 June 2013, with underground and surface volumes
increasing and the underground yield improving.
Underground ore milled increased by 2% to 959 000 tons from 939 000 tons. The underground yield increased
to 7.8g/t from 7.5g/t due to the cessation of mining of loss making Middelvlei Reef at Kloof 8 shaft and a
reduction in average stoping widths and dilution. A planned increase in surface ore milled to 1 267 000
tons from 1 058 000 tons was largely offset by a marginal decrease in the surface yield from 0.7g/t to
0.6g/t. The cost of ore milled from underground increased marginally to R1 992/ton from R1 972/ton, while
surface costs decreased by 7% to R141/ton from R151/ton.
Main development was 2% lower at 9 548 metres from 9 783 metres but on-reef development increased by 5% to
1 825 metres from 1 733 metres. The average development value increased by 6% to 1 926cm.g/t from
1 821cm.g/t.
Operating costs increased by 4% to R2 090 million (US$207 million) from R2 011 million (US$220 million).
This was mostly due to the higher annual wages implemented on 1 July 2013, higher winter power tariffs and
other inflationary cost increases, partly offset by the implementation of cost saving initiatives
throughout the period. Total cash cost was flat at R261 086/kg (US$808/oz) from R262 075/kg (US$891/oz).
The 7% decrease in the average gold price received contributed to operating profit decreasing by 12% to
R1 337 million (US$132 million) from R1 517 million (US$166 million).
Capital expenditure increased by 1% to R654 million (US$65 million) from R649 million (US$71 million),
with most of the expenditure on ORD, safety related projects and the mobile processing plant (Python),
which was commissioned in September 2013.
All-in cost decreased by 2% to R351 195/kg (US$1 087/oz) from R356 690/kg (US$1 212/oz) as a result of the
increased production, partly offset by the increase in operating costs and capital expenditure.
Consequently, the All-in cost margin decreased to 16% from the 21% achieved in the first half of the year.
Beatrix
Six months Six months
ended ended
Dec 2013 Jun 2013
Ore milled 000 tons 2 182 1 909
Gold produced kg 5 559 4 163
000’oz 178.7 133.8
Yield – underground g/t 3.8 4.0
– combined g/t 2.5 2.2
Operating cost – u/g R/ton 1 073 1 379
– surface R/ton 92 77
Total cash cost R/kg 281 615 339 947
US$/oz 872 1 156
All-in cost R/kg 338 586 428 777
US$/oz 1 048 1 458
All-in cost margin % 19 5
Gold production increased by 34% to 5 559kg (178 700oz) for the half year ended 31 December 2013, from
4 163kg (133 800oz) for the half year ended 30 June 2013. This was mainly as a result of higher
underground volumes mined and processed, with volumes at, Beatrix West Section in particular, recovering
strongly from the effects of the fire and the subsequent restructuring in the first half of the year.
Underground tons milled increased by 41% to 1 386 000 tons from 985 000 tons, offsetting lower surface
material milled, which decreased from 924 000 tons to 796 000 tons. The underground yield decreased to
3.8g/t from an average of 4.0g/t due to the inclusion of run of mine development waste from North Section,
while the surface yield increased from 0.3g/t to 0.4g/t.
Main development decreased by 2% to 8 701 metres from 8 830 metres during the first half of the year.
At North Section, extensive methane and ventilation risk assessments allowed a change from twin end
footwall development to single end development, thereby reducing ORD costs. Spare crews were refocused
on on-reef development, which due to lower costs allowed for accessing of white blocks and development
prospecting into previously unpay areas. On-reef development as a result increased by 28% to 2 418 metres
from 1 885 metres due to the increase in available raise lines at both the Beatrix South and North
Sections. The weighted average value of the main reef development decreased by 23% to 895cm.g/t from
1 166cm.g/t, due to a planned increase in development in lower grade areas at the North and South
Sections.
Operating costs increased by 9% to R1 561 million (US$155 million) from R1 430 million (US$156 million)
due to the increase in production, the implementation of the annual wage increase and higher winter
electricity tariffs. Total cash cost decreased to R281 615/kg (US$872/oz) from R339 947/kg (US$1 156/oz).
The significant increase in gold produced boosted operating profit by 74% to R777 million (US$79 million)
from R446 million (US$49 million) despite the lower average gold price received.
Capital expenditure decreased as planned to R228 million (US$22 million) from R309 million (US$34 million)
following the suspension of ORD in order to maintain profitability at the West Section after the fire
earlier in the year.
All-in cost decreased by 21% to R338 586/kg (US$1 048/oz) from R428 777/kg (US$1 458/oz) and the All-in
cost margin increased from 5% to 19% following the successful restructuring at West Section.
PRELIMINARY FINANCIAL STATEMENTS
Condensed consolidated income statement
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Year ended Six month periods ended Six month periods ended Year ended
Audited Reviewed Reviewed Reviewed Reviewed Audited
December 2012 December 2013 December 2012 1 June 2013 December 2013 2 Notes December 2013 2 June 2013 December 2012 1 December 2013 December 2012
2 021.2 2 013.7 885.8 1 007.1 1.006.6 Revenue 10 115.8 9 215.4 7 561.5 19 331.2 16 553.5
(1 321.6) (1 247.2) (649.3) (639.3) (607.9) Operating costs (6 123.8) (5 849.5) (5 500.6) (11 973.3) (10 823.8)
699.6 766.5 236.5 367.8 398.7 Operating profit 3 992.0 3 365.9 2 060.9 7 357.9 5 729.7
(288.5) (323.3) (138.7) (151.8) (171.5) Amortisation and depreciation (1 715.1) (1 388.8) (1 176.2) (3 103.9) (2 362.8)
411.1 443.2 97.8 216.0 227.2 Net operating profit 2 276.9 1 977.1 884.7 4 254.0 3 366.9
12.9 16.7 5.6 6.3 10.4 Investment income 102.5 57.8 47.4 160.3 105.5
(21.6) (43.8) (14.0) (25.4) (18.4) Finance expenses (187.2) (233.1) (115.2) (420.3) (176.7)
(14.8) (10.0) (11.5) (6.6) (3.4) Net other costs (35.3) (60.3) (95.0) (95.6) (121.3)
11.4 5.4 7.0 3.7 1.7 Share of results of associates after taxation 17.2 34.3 58.1 51.5 93.1
(32.2) (31.9) (15.4) (12.6) (19.3) Share-based payments 3 (190.9) (114.9) (130.6) (305.8) (263.5)
1.7 (0.5) 1.7 1.5 (2.0) (Loss)/gain on financial instruments (18.0) 13.4 13.8 (4.6) 13.8
0.1 6.7 0.1 2.3 4.4 Gain on foreign exchange differences 3.4 20.6 1.2 24.0 1.2
368.6 385.8 71.3 185.2 200.6 Profit before non-recurring items 1 968.6 1 694.9 664.4 3 663.5 3 019.0
0.3 0.6 0.2 - 0.6 Profit on disposal of property, plant and equipment 5.1 0.4 2.0 5.5 2.4
- (89.7) - (89.7) - Impairment 4 - (821.0) - (821.0) -
- (3.1) - - (3.1) Loss on loss of control of subsidiary (30.2) - - (30.2) -
(15.2) (45.8) (9.0) (37.5) (8.3) Restructuring costs (96.4) (343.0) (74.9) (439.4) (124.1)
- (1.0) - - (1.0) Transaction costs (9.3) - - (9.3) -
353.7 246.8 62.5 58.0 188.8 Profit before royalties and taxation 1 837.8 531.3 591.5 2 369.1 2 897.3
(34.4) (43.2) (9.1) (18.3) (24.9) Royalties (247.5) (167.1) (81.6) (414.6) (282.1)
319.3 203.6 53.4 39.7 163.9 Profit before taxation 1 590.3 364.2 509.9 1 954.5 2 615.2
44.6 (26.7) (8.4) (8.2) (18.5) Mining and income taxation (181.6) (74.6) (54.3) (256.2) 365.0
(57.9) (84.4) 0.3 (29.6) (54.8) - Current taxation (539.0) (270.8) (13.5) (809.8) (474.8)
102.5 57.7 (8.7) 21.4 36.3 - Deferred taxation 5 357.4 196.2 (40.8) 553.6 839.8
363.9 176.9 45.0 31.5 145.4 Profit for the period 1 408.7 289.6 455.6 1 698.3 2 980.2
Profit for the period attributable to:
363.8 176.3 44.9 31.5 144.8 - Owners of Sibanye Gold 1 402.4 290.0 454.8 1 692.4 2 979.6
0.1 0.6 0.1 - 0.6 - Non-controlling interests 6.3 (0.4) 0.8 5.9 0.6
Earnings per ordinary share (cents)
36 380 000 27 4 490 000 6 20 Basic earnings per share 191 51 45 480 000 260 297 960 000
36 380 000 27 4 490 000 6 19 Diluted earnings per share 187 51 45 480 000 255 297 960 000
1 650 621 1 566 413 734 367 Weighted average number of shares (‘000) 734 367 566 413 1 650 621 1
1 664 288 1 572 014 748 034 Diluted weighted average number of shares (‘000) 748 034 572 014 1 664 288 1
Headline earnings per ordinary share (cents) 6
36 360 000 37 4 480 000 17 20 Headline earnings per share 195 156 45 340 000 355 297 790 000
36 360 000 37 4 480 000 17 20 Diluted headline earnings per share 191 154 45 340 000 348 297 790 000
1 650 621 1 566 413 734 367 Weighted average number of shares (‘000) 734 367 566 413 1 650 621 1
1 664 288 1 572 014 748 034 Diluted weighted average number of shares (‘000) 748 034 572 014 1 664 288 1
Adjusted earnings per ordinary share3 (cents)
49 24 6 4 20 Adjusted basic earnings per share 191 39 62 230 405
49 33 6 13 20 Adjusted headline earnings per share 194 120 62 314 405
735 079 735 079 735 079 735 079 735 079 Actual number of shares in issue (‘000) 735 079 735 079 735 079 735 079 735 079
8.19 9.60 8.47 9.15 10.05 Average R/US$ rate
The condensed consolidated financial statements have been prepared by the corporate accounting staff of Sibanye Gold Limited headed by Pieter Henning,
Vice President Corporate Finance. This process was supervised by 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 amounts for the 6 months ended 31 December 2013 have not been reviewed, however they have been
prepared by deducting the 6 months ended June 2013 reviewed results from the 12 months ended 31 December 2013
reviewed results.
3 The adjusted basic and headline earnings per share have been calculated using the same basic and
headline earnings respectively as the basic and headline earnings per share, divided by the actual number
of shares in issue at 31 December 2013, 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
Year ended Six month periods ended Six month periods ended Year ended
Audited Reviewed Reviewed Reviewed Reviewed Audited
December 2012 December 2013 December 2012 1 June 2013 December 2013 2 December 2013 2 June 2013 December 2012 1 December 2013 December 2012
363.9 176.9 45.0 31.5 145.4 Profit for the period 1 408.7 289.6 455.6 1 698.3 2 980.2
69.6 (111.0) 34.8 (87.8) (23.1) Other comprehensive income net of tax - - - - -
69.6 (111.0) 34.8 (87.8) (23.1) Currency translation adjustments - - - - -
433.5 65.9 79.8 (56.3) 122.3 Total comprehensive income 1 408.7 289.6 455.6 1 698.3 2 980.2
Total comprehensive
income attributable to:
433.4 65.3 79.7 (56.3) 121.7 - Owners of Sibanye Gold 1 402.4 290.0 454.8 1 692.4 2 979.6
0.1 0.6 0.1 - 0.6 - Non-controlling interests 6.3 (0.4) 0.8 5.9 0.6
8.19 9.60 8.47 9.15 10.05 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 ending June 2012 reviewed results from the 12 months ended
31 December 2012 audited results.
2 The amounts for the 6 months ended 31 December 2013 have not been reviewed, however they have been
prepared by deducting the 6 months ended June 2013 reviewed results from the 12 months ended
31 December 2013 reviewed results.
Condensed consolidated statement of financial position
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Audited Reviewed Reviewed Reviewed Reviewed Audited
December 2012 June 2013 December 2013 Notes December 2013 June 2013 December 2012
2 094.7 1 732.4 1672.2 Non-current assets 17 289.9 17 583.7 17 950.6
1 911.0 1 537.3 1 465.3 Property, plant and equipment 4 15 151.0 15 603.6 16 376.1
25.1 26.7 Investments 276.5 254.4 220.1
155.3 143.4 153.6 Environmental rehabilitation obligation funds 1 588.1 1 455.6 1 331.1
- 24.8 23.1 Financial guarantee asset 7 238.5 251.8 -
2.7 1.8 3.5 Deferred taxation 35.8 18.3 23.3
203.9 333.7 261.7 Current assets 2 705.0 3 386.4 1 747.1
40.7 33.6 18.1 Inventory 187.1 340.6 348.9
129.2 89.1 94.3 Related party, trade and other receivables 973.8 904.3 1 106.4
- 5.0 5.0 Current portion of financial guarantee asset 7 51.7 50.8 -
34.0 206.0 144.3 Cash and cash equivalents 8 1 492.4 2 090.7 291.8
2 298.6 2 066.1 1 933.9 Total assets 19 994.9 20 970.1 19 697.7
(1 128.6) 806.7 911.4 Shareholders’ equity 9 9 423.4 8 188.2 (9 672.7)
926.9 923.0 675.1 Non-current liabilities 6 980.0 9 368.1 7 942.3
488.4 400.5 361.3 Deferred taxation 5 3 735.4 4 064.9 4 185.5
233.5 344.8 144.2 Borrowings 10 1 491.4 3 500.0 2 000.0
202.9 176.0 160.6 Environmental rehabilitation obligation 1 660.7 1 785.5 1739.1
2.1 1.7 1.6 Post-retirement healthcare obligation 16.3 17.7 17.7
- - 7.4 Share-based payment obligation 76.2 - -
2 500.3 336.4 347.4 Current liabilities 3 591.5 3 413.8 21 428.1
2 207.3 225.6 200.5 Related party, trade and other payables 2 073.0 2 290.2 18 915.1
22.8 21.5 20.0 Financial guarantee liability 7 206.6 217.8 196.4
11.2 40.0 74.2 Taxation and royalties payable 767.2 405.8 96.6
259.0 49.3 48.3 Current portion of borrowings 10 499.5 500.0 2 220.0
- - 4.4 Current portion of share-based payment obligation 45.2 - -
2 298.6 2 066.1 1 933.9 Total equity and liabilities 19 994.9 20 970.1 19 697.7
458.5 188.1 48.2 Net debt 498.5 1 909.3 3 928.2
8.57 10.15 10.34 Closing R/US$ rate
Condensed consolidated statement of changes in equity
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Non- Non-
Stated Other Accumulated controlling Total Total controlling Accumulated Other Stated
capital Reserves1 loss1 interest equity equity interest loss1 Reserves1 capital
- 665.8 (2 138.1) (0.7) (1 473.0) Balance at 31 December 2011 (audited) (11 975.6) (5.9) (14 136.1) 2 166.4 -
- 69.6 363.8 0.1 433.5 Total comprehensive income for the period 2 980.2 0.6 2 979.6 - -
- - 363.8 0.1 363.9 Profit for the period 2 980.2 0.6 2 979.6 - -
- 69.6 - - 69.6 Other comprehensive income net of tax - - - - -
- 32.2 - - 32.2 Share-based payments 263.5 - - 263.5 -
- - (95.5) - (95.5) Dividends paid (731.3) - (731.3) - -
- - - 0.1 0.1 Transactions with non-controlling interests 0.7 0.7 - - -
- - (25.9) - (25.9) Transactions with shareholder (210.2) - (210.2) - -
- 767.6 (1 895.7) (0.5) (1 128.6) Balance at 31 December 2012 (audited) (9 672.7) (4.6) (12 098.0) 2 429.9 -
- (111.0) 176.3 0.6 65.9 Total comprehensive income for the period 1 698.3 5.9 1 692.4 - -
- - 176.3 0.6 176.9 Profit for the period 1 698.3 5.9 1 692.4 - -
- (111.0) - - (111.0) Other comprehensive income net of tax - - - - -
1 955.3 - - - 1 955.3 Shares subscription 17 245.8 - - - 17 245.8
- - (27.1) - (27.1) Dividends paid (271.9) - (271.9) - -
- 22.2 - - 22.2 Share-based payments 213.4 - - 213.4 -
- - - 0.3 0.3 Transactions with non-controlling interests 3.0 3.0 - - -
- - - (0.2) (0.2) Loss of control of subsidiary (2.1) (2.1) - - -
- - 23.6 - 23.6 Transactions with shareholder 209.6 - 209.6 - -
1 955.3 678.8 (1 722.9) 0.2 911.4 Balance at 31 December 2013 (reviewed) 9 423.4 2.2 (10 467.9) 2 643.3 17 245.8
1 The distributable reserve, "Transactions with non-controlling interests" of R3 648.5million (US$ 512.1),
previously part of “Other reserves” has been combined with Accumulated loss to indicate the nature of the
reserve.
Condensed consolidated statement of cash flows
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Year ended Six month periods ended Six month periods ended Year ended
Audited Reviewed Reviewed Reviewed Reviewed Audited
December 2012 December 2013 December 2012 1 June 2013 December 2013 2 December 2013 2 June 2013 December 2012 1 December 2013 December 2012
Cash flows from operating activities
669.0 716.7 222.2 326.3 390.4 Cash generated by operations 3 854.6 2 985.4 1 882.3 6 840.0 5 479.5
(0.1) (0.3) (0.1) (0.1) (0.2) Post-retirement healthcare payments (2.1) (0.6) (0.5) (2.7) (1.2)
- (0.4) - - (0.4) Cash-settled share-based payments paid (3.9) - - (3.9) -
(79.0) 59.2 (107.7) 78.4 (19.2) Change in working capital (149.0) 717.7 (912.4) 568.7 (648.0)
589.9 775.2 114.4 404.6 370.6 Cash generated by operating activities 3 699.6 3 702.5 969.4 7 402.1 4 830.3
- 5.0 - - 5.0 Guarantee fee received 47.0 - - 47.0 -
4.3 6.6 1.3 2.7 3.9 Interest received 38.3 25.0 11.0 63.3 35.3
(14.5) (34.0) (10.2) (20.8) (13.2) Interest paid (135.7) (190.6) (86.2) (326.3) (119.0)
(50.5) (25.9) (23.1) (5.8) (20.1) Royalties paid (195.8) (53.2) (195.7) (249.0) (413.7)
(119.7) (31.8) (50.0) (8.1) (23.7) Taxation paid (230.8) (74.0) (423.8) (304.8) (980.4)
(95.5) (27.1) - - (27.1) Dividends paid (271.9) - - (271.9) (731.3)
314.0 668.0 32.4 372.6 295.4 Net cash flows from operating activities 2 950.7 3 409.7 274.7 6 360.4 2 621.2
Cash flows from investing activities
(379.4) (302.2) (190.4) (157.2) (145.0) Additions to property, plant and equipment (1 462.9) (1 438.6) (1 612.5) (2 901.5) (3 106.9)
Proceeds on disposal of
0.6 0.7 0.3 0.2 0.5 property, plant and equipment 5.2 1.7 2.5 6.9 5.2
Contributions to funds and payment
(3.0) (19.0) - (10.0) (9.0) of environmental rehabilitation obligation (91.1) (91.7) (0.1) (182.8) (24.3)
- 0.6 - - 0.6 Cash flow on loss of control of subsidiary 5.9 - - 5.9 -
(381.8) (319.9) (190.1) (167.0) (152.9) Net cash flows from investing activities (1 542.9) (1 528.6) (1 610.1) (3 071.5) (3 126.0)
Cash flows from financing activities
- 1 955.3 - 1 955.3 - Shares issued on unbundling - 17 245.8 - 17 245.8 -
- (1 025.0) (638.3) (386.7) Loans repaid (4 000.0) (5 840.0) - (9 840.0) -
515.3 793.8 383.1 614.3 179.5 Loans raised 2 000.0 5 620.0 3 245.0 7 620.0 4 220.0
(521.7) (1 939.7) (389.8) (1 939.7) - Related party loans repaid - (17 108.0) (3 301.2) (17 108.0) (4 272.4)
59.4 - 57.4 - - Related party loans raised - - 486.2 - 486.2
- (0.9) - - (0.9) Financing costs capitalised (9.1) - - (9.1) -
- 0.3 - - 0.3 Shares issued to non-controlling interest 3.0 - - 3.0 -
53.0 (216.2) 50.7 (8.4) (207.8) Net cash flows from financing activities (2 006.1) (82.2) 430.0 (2 088.3) 433.8
(14.8) 131.9 (107.0) 197.2 (65.3) Net cash (utilised)/generated (598.3) 1 798.9 (905.4) 1 200.6 (71.0)
Effect of exchange rate
4.2 (21.6) (1.7) (25.2) 3.6 fluctuations on cash held - - - - -
Cash and cash equivalents
44.6 34.0 142.7 34.0 206.0 at beginning of period 2 090.7 291.8 1 197.2 291.8 362.8
Cash and cash equivalents
34.0 144.3 34.0 206.0 144.3 end of period 1 492.4 2 090.7 291.8 1 492.4 291.8
8.19 9.60 8.47 9.15 10.05 Average R/US$ rate
8.57 10.34 8.57 10.15 10.34 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 ending June 2012 reviewed results from the 12 months ended
31 December 2012 audited results.
2 The amounts for the 6 months ended 31 December 2013 have not been reviewed, however they have been
prepared by deducting the 6 months ended June 2013 reviewed results from the 12 months ended
31 December 2013 reviewed results.
NOTES TO THE CONDENSED CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS
1. Basis of accounting and preparation
The condensed consolidated preliminary financial information for the six months and year ended 31 December
2013 has been prepared and presented in accordance with the requirements of the JSE Listings Requirements
for preliminary reports and the requirements of the Companies Act of South Africa. The JSE Listings
Requirements require preliminary reports to be prepared in accordance with JSE GAAP and the framework
concepts and the measurement and recognition requirements of International Financial Reporting Standards
(“IFRS”) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Pronouncements as issued by Financial Reporting Standards Council and to also, as a minimum,
contain the information required by IAS 34 Interim Financial Reporting. The accounting policies used in
the preparation of the condensed consolidated preliminary financial statements are in terms of IFRS and
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 materially impact the Group’s financial results, other than disclosures.
The condensed consolidated income statement and statements of other comprehensive income and 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 condensed consolidated income statement and statements
of other comprehensive income and cash flows for the six months ended 31 December 2013 were prepared by
deducting the reviewed complete consolidated financial statements for the period ended 30 June 2013 from
the reviewed condensed consolidated preliminary financial statements for the year ended 31 December 2013.
The translation of the Group financial statements into US Dollar is based on the average exchange rate for
the period for the income statement and statement of cash flows and the period-end closing exchange rate
for the 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.
Sibanye Gold’s share of results of associate after tax, relates to an interest of 33.1% in Rand Refinery
(Pty) Ltd. Rand Refinery (Pty) Limited has not issued its audited results for its year ended 30 September
2013 and therefore Sibanye Gold’s share of results have been based on management accounts.
Where necessary, comparative periods may be adjusted to conform to changes in presentation.
With effect from 1 January 2013 the group changed its classification of environmental rehabilitation
inflation from operating costs to finance expenses, to better reflect the nature of the expense as well
as to align it with its peers. The previous comparative period has been reclassified to conform to the
current year’s presentation. This resulted in R49.8 million (US$ 6.1 million) for the year ended
31 December 2012; R25.0 million (US$ 3.1 million) for the six months ended 31 December 2012 and
R42.5 million (US$ 4.6 million) for the six months ended 30 June 2013 being reclassified from operating
cost to finance expense.
2. Liquidity
The Group’s current liabilities exceeded its current assets by R887 million (US$86 million) as at
31 December 2013. Current liabilities at year end include the financial guarantee liability of
R207 million (US$20 million) (refer to Note 7 below) which does not reflect the true liquidity of
Sibanye Gold per se, as Sibanye Gold believes that Gold Fields Limited ("Gold Fields") is currently
in the position to meet its obligations under the Notes (as defined under Note 7).
With the Bridge Loan Facilities refinanced (as detailed in Note 10), the Company was in a position to
actively manage its debt position and as a result repaid an additional R500 million debt in December 2013,
effectively applying cash, a current asset, to reduce long term borrowings.
The Directors believe that the cash-generated by its operations and the remaining balance of the Company’s
revolving credit facility will enable the Group to continue to meet its obligations as they fall due.
3. Share-based payments
In terms of the previously existing Gold Fields Limited Share Plans, all 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.
Sibanye Gold’s Remuneration committee has limited the issuance of share options for the 2013 allocation
under the Sibanye Gold 2013 Share Plan (the “SGL Share Plan”) to senior management only. D-Band and
certain E-Band employees, who previously participated in the equity-settled share option scheme, now
participate in a cash-settled share scheme, the Sibanye Gold 2013 Phantom Share Scheme (the “SGL Phantom
Scheme”). Notwithstanding that the SGL Phantom Scheme is not subject to compliance with the JSE Listings
Requirements as it is a purely cash-settled remuneration scheme, the SGL Share Plan rules apply, in all
material aspects, to the SGL Phantom Scheme, other than the issue of new shares to participants.
The share-based payment expense for the year ended 31 December 2013 of R306 million (US$32 million)
(2012: R264 million (US$32 million)) consists of R213 million (US$22 million) (2012: R264 million
(US$32 million)) relating to the SGL Share Plan and R93 million (US$10 million) (2012: Rnil (US$nil))
relating to the SGL Phantom Scheme.
The cash-settled share options are valued at each reporting period based on the fair value of the
instrument at that reporting date. The difference between the reporting date fair value and the initial
recognition fair value of these cash- settled share options is included in (loss)/gain on financial
instruments in the income statement.
4. Impairment
An underground fire during February 2013 at Beatrix West affected approximately 38% of the planned
production area, impacting on the commercial viability of the Beatrix West Section. As a result a decision
was taken during the six months ended 30 June 2013 to impair Beatrix West’s mining assets by R821 million
(US$90 million).
5. Deferred taxation
The mining operations are taxed on a variable rate that increases as profitability increases. The tax rate
used to calculate deferred tax is based on the group’s current estimate of future profitability when
temporary differences will reverse. Depending on the profitability of the operations, the tax rate can be
significantly different from year to year. The estimated long term deferred tax rate at which the
temporary differences will reverse has been revised lower, resulting in a tax credit of R214 million
(US$22 million) in the six months ended 31 December 2013. The Beatrix West impairment also resulted in a
deferred tax credit of R230 million (US$25 million) in the six months ended 30 June 2013.
During 2012, the statutory tax rate for gold mining companies changed and resulted in a deferred tax
credit of R1.0 billion (US$123 million).
6. Reconciliation of headline earnings with profit for the period
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Year ended Six month periods ended Six month periods ended Year ended
Audited Reviewed Reviewed Reviewed Reviewed Audited
December 2012 December 2013 December 2012 1 June 2013 December 2013 2 December 2013 2 June 2013 December 2012 1 December 2013 December 2012
Profit attributable
363.8 176.3 44.9 31.5 144.8 to owners of Sibanye Gold 1 402.4 290.0 454.8 1 692.4 2 979.6
Profit on disposal of property,
(0.3) (0.6) (0.2) - (0.6) plant and equipment (5.1) (0.4) (2.0) (5.5) (2.4)
- 89.7 - 89.7 - Impairment - 821.0 - 821.0 -
- 3.1 - - 3.1 Loss on loss of control of subsidiary 30.2 - - 30.2 -
0.1 (24.9) 0.1 (25.1) 0.2 Taxation effect of remeasurement items 1.4 (229.8) 0.6 (228.3) 0.7
363.6 243.6 44.8 96.1 147.5 Headline earnings 1 428.9 880.8 453.4 2 309.8 2 977.9
8.19 9.60 8.47 9.15 10.05 Average R/US$ 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 ending June 2012 reviewed results from the 12 months ended
31 December 2012 audited results.
2 The amounts for the 6 months ended 31 December 2013 have not been reviewed, however they have been
prepared by deducting the 6 months ended June 2013 reviewed results from the 12 months ended
31 December 2013 reviewed results.
7. Financial guarantee asset and liability
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.
The Group initially recognised the financial guarantee liability at fair value of the guarantee 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 31 December 2013 the balance was
R207 million (US$20 million) (30 June 2013: R218 million (US$22 million), 31 December 2012: R196 million
(US$23 million)).
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. As at 31 December 2013 the balance was R290 million
(US$28 million) (30 June 2013: R303 million (US$30 million) of which R52 million (US$5 million)
(30 June 2013: R51 million (US$5 million) is current.
Sibanye Gold has ceded all of its rights, title and interest in and to the Indemnity Agreement and the
Guarantee Fee agreement in favour of the lenders of the R4.5 billion Facility, jointly and severally, as
security for its obligations under the facilities.
8. Cash and cash equivalents
Cash and cash equivalents include R410 million (US$40 million) (June 2013 and December 2012: Nil)
restricted for use. Refer note 12.
9. Share capital
Sibanye Gold has 1 billion authorised no par value shares of which 735 079 031 have been issued.
On 1 February 2013 Gold Fields, previously the 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 a 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. Furthermore the Group issued
3 430 417 shares as part of the SGL Share Plan.
10. 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 Bridge Loan Facilities’ structure was amended so that Facility A and
Facility B comprised of R3.0 billion each.
The final maturity date of the facilities was 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, Sibanye Gold refinanced its R3.5 billion
(R3.0 billion 31 December 2012) Long-term Rand revolving credit facilities and R900 million (R1.22 billion
31 December 2012) Short-term Rand revolving credit facilities which were under the Gold Fields group debt
facilities, by drawing down R4.0 billion under Facility A and R570 million under Facility B.
Sibanye Gold repaid R2.57 billion (US$256 million) of the Bridge Loan Facilities during the year.
On 13 December 2013, Sibanye Gold cancelled and replaced the Bridge Loan Facilities with a new
R4.5 billion facility (the "R4.5 billion Facility"). The R4.5 billion Facility comprises a R2.5 billion
revolving credit facility ("RCF") and a R2.0 billion term loan facility ("Term Loan") both of which mature
in three years. The Term Loan will amortise semi-annually in equal six-monthly instalments of
R250 million, with the R750 million balance due for settlement on final maturity.
The R4.5 billion Facility was used to redeem the R2 billion outstanding under the Bridge Loan Facilities
and the balance may be applied to ongoing capital expenditure, working capital and general corporate
expenditure requirements, where required.
Interest rates on the new Term Loan and RCF are 275 basis points and 285 basis points respectively, over
the Johannesburg Interbank Agreed Rate (JIBAR).
The outstanding balance under the R4.5 billion Facility at 31 December 2013 was R2.0 billion
(US$193 million). Transaction costs of R9.1 million (US$1 million) were deducted from the liability on
initial measurement. These costs will unwind over the period of the Term Loan as an interest expense.
Sibanye Gold has lodged and registered a security package for its obligation under the R4.5 billion
Facility. The security package includes a cession over certain bank accounts, accounts receivables,
certain insurance policies proceeds, material contracts, shares in material subsidiaries and a general
notarial bond over movable assets on the Group’s mine properties. Sibanye Gold will also have to register
mortgage bonds over substantially all of the properties (excluding mining rights) covering the Driefontein
mining operation and special notarial bonds over the gold plants and head gears of the Driefontein mining
operation.
11. Cooke Operations Acquisition
Sibanye Gold announced on 21 August 2013, that it had entered into an agreement with Gold One
International Limited to acquire its Cooke underground and surface operations (“Cooke Operations”).
The consideration for the acquisition will be approximately 150 million new Sibanye Gold ordinary shares,
or such number of shares that represents 17% of Sibanye Gold’s issued share capital, on a fully diluted
basis on the closing date of the transaction. The transaction is subject to the fulfilment of various
conditions precedent and is likely to be concluded during the first half of 2014.
12. Witwatersrand Consolidated Gold Resources Limited Acquisition
Sibanye Gold announced on 11 December 2013 that it had offered to acquire the entire issued share capital
of Witwatersrand Consolidated Gold Resources Limited (“Wits Gold”) for a cash consideration of
approximately R407 million (US$39 million) - (the “Scheme Consideration”). The transaction is subject to
the fulfilment of various conditions precedent and is likely to be concluded during the first half of
2014.
Sibanye Gold was required to deposit the full Scheme Consideration into an escrow account to comply with
regulations 111(4) and 111(5) of the Companies Act Regulations, 2011. As at 31 December 2013, R410 million
(US$40 million) was held in the escrow account and forms part of the Group’s cash and cash equivalents
balance as reported.
13. Events after the reporting date
There were no events that could have a material impact on the financial results of the Group after
31 December 2013, other than what has already been disclosed above and:
- The Board approved a maiden final dividend of 75 cents per share (ZAR) for the six months ended
31 December 2013, resulting in a total dividend of 112 cents per share (ZAR) in 2013; and
- The announcement on 17 February 2014 that the Group’s Mineral Reserves have increased by 46% to
19.7 Moz (net of 1.5 Moz depleted from mining in 2013) at 31 December 2013. This increase in Mineral
Reserves will significantly enhance and extend Sibanye Gold’s Life of Mine production profile.
14. Auditors Review
These preliminary condensed consolidated financial statements of Sibanye Gold for the year ended
31 December 2013 as set out on pages 7 to 16 have been reviewed by KPMG Inc., who expressed an unmodified
review conclusion. A copy of the auditor’s review report is available for inspection at the company’s
registered office together with the financial statements identified in the auditor’s report.
The auditor’s report does not necessarily report on all of the information contained in these financial
results. 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, the Driefontein and Kloof segments have been managed separately and are
therefore not presented in aggregate as the KDC complex. This is consistent with how the information from
these operations is reviewed by the executive committee.
Salient features and income statement for the six months ended 31 December 2013
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Corporate Beatrix Kloof Driefontein Group For the six months ended 31 December 2013 Group Driefontein Kloof Beatrix Corporate
Operating results
- 2 182 2 226 2 780 7 188 000’tons Ore milled - total 000’tons 7 188 2 780 2 226 2 182 -
- 1 386 959 1 347 3 692 Underground 3 692 1 347 959 1 386 -
- 796 1 267 1 433 3 496 Surface 3 496 1 433 1 267 796 -
- 2.5 3.7 3.7 3.3 g/t Yield g/t 3.3 3.7 3.7 2.5 -
- 3.8 7.8 7.0 6.0 Underground 6.0 7.0 7.8 3.8 -
- 0.4 0.6 0.6 0.5 Surface 0.5 0.6 0.6 0.4 -
- 178.8 262.3 332.5 773.6 000’ozs Gold produced and sold kg 24 061 10 343 8 159 5 559 -
- 169.3 239.4 304.9 713.6 Underground 22 195 9 485 7 446 5 264 -
- 9.5 22.9 27.6 60.0 Surface 1 866 858 713 295 -
- 1 302 1 300 1 302 1 301 US$/oz Gold price received R/kg 420 423 420 719 419 966 420 543 -
- 872 808 765 804 US$/oz Total cash cost R/kg 259 919 247 336 261 086 281 615 -
- 1 048 1 087 967 1 043 US$/oz All-in cost R/kg 336 848 312 472 351 195 338 586 -
- 19 16 26 20 % All-in cost margin % 20 26 16 19 -
- 71 93 88 85 US$/ton Operating cost R/ton 852 890 939 715 -
- 107 198 165 152 Underground 1 527 1 663 1 992 1 073 -
- 9 14 16 14 Surface 139 162 141 92 -
US$’mil Financial results R’mil
- 233.9 338.9 433.8 1 006.6 Revenue 10 115.8 4 351.5 3 426.5 2 337.8 -
- (155.3) (207.4) (245.3) (607.9) Operating costs (6 123.8) (2 473.0) (2 089.8) (1 561.0) -
- 78.6 131.5 188.5 398.7 Operating profit 3 992.0 1 878.5 1 336.7 776.8 -
(1.2) (23.7) (63.1) (83.5) (171.5) Amortisation and depreciation (1 715.1) (832.5) (628.6) (242.2) (11.8)
(1.2) 54.9 68.4 105.0 227.2 Net operating profit 2 276.9 1 046.0 708.1 534.6 (11.8)
2.0 2.0 3.1 3.3 10.4 Investment income 102.5 32.8 30.6 19.6 19.5
(0.1) (3.2) (6.5) (8.5) (18.4) Finance expenses (187.2) (87.0) (67.2) (31.9) (1.1)
3.6 2.5 (3.0) (2.4) 0.7 Other costs (32.7) (32.9) (30.1) (22.1) 52.5
(10.6) (2.5) (2.8) (3.4) (19.3) Share-based payments (190.9) (33.8) (28.0) (24.3) (104.8)
(8.7) (0.5) (2.8) 0.2 (11.8) Non-recurring items (130.8) 2.4 (31.5) (5.2) (96.6)
- (5.7) (6.7) (12.6) (24.9) Royalties (247.5) (124.3) (67.9) (55.3) -
(1.1) (10.0) (12.0) (31.6) (54.8) Current taxation (539.0) (309.3) (122.9) (96.4) (10.4)
4.2 10.6 6.6 14.9 36.3 Deferred taxation 357.4 143.5 61.7 113.0 39.2
(11.9) 48.1 44.4 64.8 145.4 Profit for the period 1 408.7 637.4 452.8 432.0 (113.5)
Profit attributable to:
(12.5) 48.1 44.4 64.8 144.8 Owners of Sibanye Gold 1 402.4 637.4 452.8 432.0 (119.8)
0.6 - - - 0.6 Non-controlling interests 6.3 - - - 6.3
US$’mil Capital expenditure R’mil
(2.1) (22.1) (64.8) (56.0) (145.0) Total expenditure (1 462.9) (560.3) (654.4) (227.6) (20.6)
(2.1) (9.4) (22.6) (20.0) (54.2) Sustaining capital (543.4) (198.3) (228.7) (95.8) (20.6)
- (12.7) (42.2) (36.0) (90.8) Ore reserve development (919.5) (362.0) (425.7) (131.8) -
The average exchange rate for the six months ended 31 December 2013 was R10.05/US$.
Figures may not add as they are rounded independently.
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 30 June 2013 Group Driefontein Kloof Beatrix Corporate
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$/oz All-in cost R/kg 375 036 357 424 356 690 428 777 -
- 5 21 21 17 % All-in cost margin % 17 21 21 5 -
- 82 110 104 99 US$/ton Operating cost R/ton 909 952 1 007 749 -
- 151 215 202 190 Underground 1 737 1 849 1 972 1 379 -
- 8 16 18 15 Surface 137 168 151 77 -
US$’mil Financial results1 R’mil
- 205.1 385.6 416.5 1 007.1 Revenue 9 215.4 3 811.2 3 527.9 1 876.3 -
- (156.3) (219.8) (263.2) (639.3) Operating costs (5 849.5) (2 408.2) (2 010.9) (1 430.4) -
- 48.7 165.8 153.3 367.8 Operating profit 3 365.9 1 403.0 1 517.0 445.9 -
(1.0) (31.2) (51.1) (68.4) (151.8) Amortisationand depreciation (1 388.8) (625.5) (467.9) (285.9) (9.5)
(1.0) 17.5 114.7 85.0 216.0 Net operating profit 1 977.1 777.5 1 049.1 160.0 (9.5)
1.2 0.9 1.8 2.4 6.3 Investment income 57.8 22.2 16.8 7.9 10.9
(0.1) (4.5) (9.3) (11.6) (25.4) Finance expenses (233.1) (106.6) (85.1) (40.9) (0.5)
11.0 (2.0) (4.4) (3.7) 0.9 Other costs 8.0 (34.0) (40.4) (18.3) 100.7
(5.6) (1.9) (2.1) (3.0) (12.6) Share-based payments (114.9) (27.3) (19.2) (17.5) (50.9)
(1.4) (97.8) (10.3) (17.7) (127.2) Non-recurring items (1 163.6) (162.0) (94.1) (894.9) (12.6)
- (1.5) (8.7) (8.1) (18.3) Royalties (167.1) (74.0) (79.2) (13.9) -
(0.1) (0.1) (16.5) (12.9) (29.6) Current taxation (270.8) (118.4) (150.6) (1.1) (0.7)
(1.6) 24.4 (4.7) 3.3 21.4 Deferred taxation 196.2 30.5 (43.4) 223.3 (14.2)
2.5 (65.1) 60.5 33.7 31.5 Profit for the period 289.6 307.9 553.9 (595.4) 23.2
Profit attributable to:
2.5 (65.1) 60.5 33.7 31.5 Owners of Sibanye Gold 290.0 307.9 553.9 (595.4) 23.6
- - - - - Non-controlling interests (0.4) - - - (0.4)
US$’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$.
Figures may not add as they are rounded independently.
Salient features and income statement for the year ended 31 December 2013
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Corporate Beatrix Kloof Driefontein Group For the year ended 31 December 2013 Group Driefontein Kloof Beatrix Corporate
Operating results
- 4 091 4 223 5 310 13 624 000’tons Ore milled- total 000’tons 13 624 5 310 4 223 4 091 -
- 2 371 1 898 2 527 6 796 Underground 6 796 2 527 1 898 2 371 -
- 1 720 2 325 2 783 6 828 Surface 6 828 2 783 2 325 1 720 -
- 2.4 3.8 3.5 3.3 g/t Yield g/t 3.3 3.5 3.8 2.4 -
- 3.9 7.7 6.7 6.0 Underground 6.0 6.7 7.7 3.9 -
- 0.3 0.6 0.7 0.6 Surface 0.6 0.7 0.6 0.3 -
- 312.6 513.7 603.6 1 429.9 000’ozs Gold produced and sold kg 44 474 18 775 15 977 9 722 -
- 295.6 467.3 544.2 1 307.1 Underground 40 655 16 927 14 533 9 195 -
- 17.0 46.4 59.4 122.8 Surface 3 819 1 848 1 444 527 -
- 1 404 1 410 1 409 1 408 US$/oz Gold price received R/kg 434 663 434 764 435 276 433 460 -
- 993 847 862 885 US$/oz Total cash cost R/kg 273 281 265 997 261 570 306 593 -
- 1 222 1 147 1 078 1 148 US$/oz All-in cost R/kg 354 376 332 660 353 884 377 206 -
- 13 19 23 18 % All-in cost margin % 18 23 19 13 -
- 76 101 96 92 US$/ton Operating cost R/ton 879 919 971 731 -
- 125 206 182 169 Underground 1 623 1 750 1 982 1 201 -
- 9 15 17 14 Surface 138 165 146 84 -
US$’mil Financial results R’mil
- 439.0 724.4 850.3 2 013.7 Revenue 19 331.2 8 162.7 6 954.4 4 214.1 -
- (311.6) (427.2) (508.4) (1 247.2) Operating costs (11 973.3) (4 881.2) (4 100.7) (2 991.4) -
- 127.4 297.2 341.9 766.5 Operating profit 7 357.9 3 281.5 2 853.7 1 222.7 -
(2.2) (55.0) (114.2) (151.9) (323.3) Amortisation and depreciation (3 103.9) (1 458.0) (1 096.5) (528.1) (21.3)
(2.2) 72.4 183.0 190.0 443.2 Net operating profit 4 254.0 1 823.5 1 757.2 694.6 (21.3)
3.2 2.9 4.9 5.7 16.7 Investment income 160.3 55.0 47.4 27.5 30.4
(0.3) (7.6) (15.8) (20.1) (43.8) Finance expenses (420.3) (193.6) (152.3) (72.8) (1.6)
15.8 - (7.3) (6.9) 1.6 Other costs (24.7) (67.0) (70.5) (40.4) 153.2
(16.2) (4.4) (4.9) (6.4) (31.9) Share-based payments (305.8) (61.1) (47.2) (41.8) (155.7)
(11.3) (98.0) (13.1) (16.6) (139.0) Non-recurring items (1 294.4) (159.5) (125.6) (900.1) (109.2)
- (7.2) (15.3) (20.7) (43.2) Royalties (414.6) (198.3) (147.1) (69.2) -
(1.2) (10.1) (28.5) (44.6) (84.4) Current taxation (809.8) (427.7) (273.5) (97.5) (11.1)
2.7 35.0 1.9 18.2 57.7 Deferred taxation 553.6 174.0 18.3 336.3 25.0
(9.5) (17.0) 104.9 98.5 176.9 Profit for the period 1 698.3 945.3 1 006.7 (163.4) (90.3)
Profit attributable to:
(10.1) (17.0) 104.9 98.5 176.3 Owners of Sibanye Gold 1 692.4 945.3 1 006.7 (163.4) (96.2)
0.6 - - - 0.6 Non-controlling interests 5.9 - - - 5.9
US$’mil Capital expenditure R’mil
(3.9) (55.9) (135.8) (106.6) (302.2) Total expenditure (2 901.5) (1 023.0) (1 303.6) (537.0) (37.9)
(3.9) (20.9) (47.9) (33.4) (106.1) Sustaining capital (1 018.5) (320.2) (459.8) (200.6) (37.9)
- (35.0) (87.9) (73.2) (196.1) Ore reserve development (1 883.0) (702.8) (843.8) (336.4) -
1 The financial results for the year ended 31 December 2013 have been reviewed.
The average exchange rate for the financial year ended 31 December 2013 was R9.60/US$.
Figures may not add as they are rounded independently.
Salient features and income statement for the year ended 31 December 2012
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Corporate Beatrix Kloof Driefontein Group For the year ended 31 December 2012 Group Driefontein Kloof Beatrix Corporate
Operating Results
- 3 368 4 082 4 735 12 185 000’tons Ore milled- total 000’tons 12 185 4 735 4 082 3 368 -
- 2 069 1 801 1 886 5 756 Underground 5 756 1 886 1 801 2 069 -
- 1 299 2 281 2 849 6 429 Surface 6 429 2 849 2 281 1 299 -
- 2.7 3.8 2.9 3.1 g/t Yield g/t 3.1 2.9 3.8 2.7 -
- 4.2 7.7 5.9 5.9 Underground 5.9 5.9 7.7 4.2 -
- 0.3 0.7 0.9 0.7 Surface 0.7 0.9 0.7 0.3 -
- 288.7 493.5 441.4 1 223.6 000’ozs Gold produced and sold kg 38 059 13 728 15 350 8 981 -
- 278.3 445.7 359.5 1 083.5 Underground 33 702 11 180 13 866 8 656 -
- 10.4 47.8 81.9 140.1 Surface 4 357 2 548 1 484 325 -
- 1 655 1 645 1 656 1 652 US$/oz Gold price received R/kg 434 943 433 173 436 085 435 698 -
- 1 118 981 1 182 1 086 US$/oz Total cash cost R/kg 285 851 311 211 258 241 294 277 -
- 1 444 1 352 1 538 1 453 US$/oz All-in costs R/kg 382 687 404 881 355 915 380 258 -
- 13 18 6 12 % All-in cost margin % 12 6 18 13 -
- 95 117 111 108 US$/ton Operating cost R/ton 888 909 955 779 -
- 149 240 251 211 Underground 1 729 2 057 1 967 1 221 -
- 9 19 18 17 Surface 136 148 156 74 -
US$’mil Financial results1 R’mil
- 477.8 817.3 726.1 2 021.2 Revenue 16 553.5 5 946.6 6 693.9 3 913.0 -
- (320.2) (476.1) (525.3) (1 321.6) Operating costs (10 823.8) (4 302.4) (3 899.0) (2 622.4) -
- 157.6 341.2 200.8 699.6 Operating profit 5 729.7 1 644.2 2 794.9 1 290.6 -
(2.3) (77.1) (88.7) (120.5) (288.5) Amortisation and depreciation (2 362.8) (986.5) (726.4) (631.8) (18.1)
(2.3) 80.5 252.5 80.3 411.1 Net operating profit 3 366.9 657.7 2 068.5 658.8 (18.1)
1.3 2.4 4.5 4.7 12.9 Investment income 105.5 38.2 36.8 19.3 11.2
(0.7) (3.6) (9.5) (7.8) (21.6) Finance expenses (176.7) (63.0) (78.5) (29.9) (5.3)
20.2 (3.7) (8.0) (6.6) 1.9 Other costs 15.5 (53.6) (65.1) (30.3) 164.5
(12.9) (5.2) (5.3) (8.8) (32.2) Share-based payments (263.5) (72.1) (43.5) (42.3) (105.6)
- (1.0) (7.1) (10.3) (18.4) Non-recurring items (150.4) (84.3) (58.4) (8.0) 0.3
- (8.6) (17.7) (8.1) (34.4) Royalties (282.1) (66.2) (145.3) (70.5) -
(3.0) (14.8) (37.4) (2.8) (57.9) Current taxation (474.8) (22.6) (306.3) (121.5) (24.4)
2.0 29.1 25.3 46.1 102.5 Deferred taxation 839.8 377.3 207.4 238.2 16.9
4.7 74.9 197.3 86.9 363.9 Profit for the period 2 980.2 711.4 1 615.6 613.8 39.5
Profit attributable to:
4.6 74.9 197.3 86.9 363.8 Owners of Sibanye Gold 2 979.6 711.4 1 615.6 613.8 38.9
0.1 - - - 0.1 Non-controlling interests 0.6 - - - 0.6
US$’mil Capital expenditure R’mil
(2.7) (80.4) (163.0) (133.2) (379.4) Total expenditure (3 106.9) (1 090.9) (1 335.3) (658.2) (22.5)
(2.7) (25.7) (61.6) (29.5) (119.6) Sustaining capital (979.0) (241.3) (504.5) (210.7) (22.5)
- (54.7) (101.4) (103.7) (259.8) Ore reserve development (2 127.9) (849.6) (830.8) (447.5) -
1 The financial results for the year ended 31 December 2012 have been audited.
The average exchange rate for the financial year ended 31 December 2012 was R8.19/US$.
Figures may not add as they are rounded independently.
UNIT COST BENCHMARKING METRICS
Total cash cost
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
For the six months ended 30 June 2013 For the six months ended 31 December 2013
Corporate Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Corporate
- 1 430.4 2 010.9 2 408.2 5 849.5 Rm Operating costs(1) Rm 6 123.8 2 473.0 2 089.8 1 561.0 -
Less:
- - - - - Rehabilitation inflation# - - - - -
- (29.1) (41.2) (46.3) (116.6) General and admin costs (117.4) (39.1) (27.5) (50.8) -
Plus:
- 13.9 79.2 74.0 167.1 Royalties 247.5 124.3 67.9 55.3 -
- 1 415.2 2 048.9 2 435.9 5 900.0 Total cash cost(2) 6 253.9 2 558.2 2 130.2 1 565.5 -
Plus:
9.5 285.9 467.9 625.5 1 388.8 Amortisation and depreciation 1 715.1 832.5 628.6 242.2 11.8
9.5 1 701.1 2 516.8 3 061.4 7 288.8 Total production cost(3) 7 969.0 3 390.7 2 758.8 1 807.7 11.8
4 163 7 818 8 432 20 413 kg Gold sold kg 24 061 10 343 8 159 5 559
133.8 251.4 271.1 656.3 000’ozs 000’ozs 773.6 332.5 262.3 178.7
339 947 262 075 288 888 289 031 R/kg Total cash cost R/kg 259 919 247 336 261 086 281 615
1 156 891 982 983 US$/oz Total cash cost US$/oz 804 765 808 872
408 624 321 924 363 069 357 067 R/kg Total production cost R/kg 331 200 327 826 338 130 325 184
1 389 1 094 1 234 1 214 US$/oz Total production cost US$/oz 1 025 1 015 1 046 1 006
Average exchange rates were US$1 = R9.15 and US$1 = R10.05 for the six months ended 30 June 2013 and the
six months ended 31 December 2013 respectively.
# Rehabilitation inflation has been reclassified from Operating costs to Finance expenses for all periods
and as a result no longer requires elimination in the Total cash cost calculation. This change has no
effect on the calculation of cash cost.
DEFINITIONS
Total cash cost and Total production cost are calculated in accordance with the Gold Institute Industry
standard.
(1) Operating costs – All gold mining related costs before amortisation/depreciation, taxation and non-
recurring items.
(2) Total cash cost – Operating costs less off-mine costs, which include general and administration costs,
as detailed in the table above.
(3) Total production cost – Total cash cost plus amortisation/depreciation as detailed in the table above.
Notional cash expenditure ##
Figures are in South African rand millions unless otherwise stated
For the six months ended 30 June 2013 For the six months ended 31 December 2013
Corporate Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Corporate
- 1 430.4 2 010.9 2 408.2 5 849.5 Rm Operating costs Rm 6 123.8 2 473.0 2 089.8 1 561.0 -
17.3 309.4 649.2 462.7 1 438.6 Capital expenditure 1 462.9 560.3 654.4 227.6 20.6
17.3 1 739.8 2 660.1 2 870.9 7 288.1 Notional cash expenditure 7 586.7 3 033.3 2 744.2 1 788.6 20.6
417 920 340 253 340 477 357 032 R/kg Notional cash expenditure R/kg 315 311 293 271 336 340 321 749
1 421 1 157 1 157 1 214 US$/oz Notional cash expenditure US$/oz 976 908 1 041 996
Average exchange rates were US$1 = R9.15 and US$1 = R10.05 for the six
months ended 30 June 2013 and the six months ended 31 December 2013 respectively.
## Notional cash expenditure (NCE) per kilogram = Operating cost plus capital expenditure divided by gold
produced.
All-in costs
World Gold Council Guidance Basis
Figures are in South African rand millions unless otherwise stated
For the six months ended30 June 2013 For the six months ended 31 December 2013
Corporate Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Corporate
- 1 430.4 2 010.9 2 408.2 5 849.5 Rm Operating costs(1) Rm 6 123.8 2 473.0 2 089.8 1 561.0 -
Plus:
- 3.9 4.9 3.4 12.2 Community costs 11.6 5.1 2.9 3.6 -
50.9 17.5 19.2 27.3 114.9 Share-based payments(2) 190.9 33.8 28.0 24.3 104.8
- 13.9 79.2 74.0 167.1 Royalties 247.5 124.3 67.9 55.3 -
- 14.0 29.3 44.1 87.4 Rehabilitation 77.2 39.6 25.0 12.6 -
- 204.6 418.1 340.8 963.5 Ore reserve development 919.5 362.0 425.7 131.8 -
17.3 104.8 231.1 121.9 475.1 Sustaining capital expenditure 543.4 198.3 228.7 95.8 20.6
Less:
- (4.1) (4.1) (5.9) (14.1) By-product credit (9.0) (4.2) (2.6) (2.2) -
68.2 1 785.0 2 788.6 3 013.8 7 655.6 Total All-in sustaining cost(3) 8 104.9 3 231.9 2 865.4 1 882.2 125.4
Plus:
- - - - - Other corporate costs - - - - -
- - - - - Major growth projects - - - - -
68.2 1 785.0 2 788.6 3 013.8 7 655.6 Total All-in cost(4) 8 104.9 3 231.9 2 865.4 1 882.2 125.4
4 163 7 818 8 432 20 413 kg Gold sold kg 24 061 10 343 8 159 5 559
133.8 251.4 271.1 656.3 000’ozs Gold sold 000’ozs 773.6 332.5 262.3 178.7
428 777 356 690 357 424 375 036 R/kg Total All-in cost R/kg 336 848 312 472 351 195 338 586
1 458 1 212 1 215 1 275 US$/oz Total All-in cost US$/oz 1 043 967 1 087 1 048
Average exchange rates were US$1 = R9.15 and US$1 = R10.05 for the six months ended 30 June 2013 and the
six months ended 31 December 2013 respectively.
DEFINITIONS
All-in costs are calculated in accordance with the World Gold Council guidance.
(1) Operating costs – As published and includes all mining and processing costs, third party refining
costs, permitting costs and corporate G&A charges.
(2) Share-based payments are calculated based on the initial recognition fair value and does not include
the fair valuing adjustment of the cash-settled share-based payment liability to the reporting date
fair value.
(3) Total All-in sustaining costs – includes Operating costs and costs detailed above, including
sustaining capital expenditure, based on managed gold sales.
(4) Total All-in costs includes sustaining and group costs, excluding income tax, M&A activity, working
capital, impairments, financing costs, one-time severance charges and items needed to normalise
earnings.
Total cash cost
Gold Industry Standards Basis
Figures are in South African rand millions unless otherwise stated
For the year ended 31 December 2012 For the year ended 31 December 2013
Corporate Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Corporate
- 2 622.4 3 899.0 4 302.4 10 823.8 Rm Operating costs(1) Rm 11 973.3 4 881.2 4 100.7 2 991.4 -
Less:
- - - - - Rehabilitation inflation# - - - - -
- (50.0) (80.4) (96.3) (226.7) General and admin costs (234.0) (85.4) (68.7) (79.9) -
Plus:
- 70.5 145.4 66.2 282.1 Royalties 414.6 198.3 147.1 69.2 -
- 2 642.9 3 964.0 4 272.3 10 879.2 Total cash cost(2) 12 153.9 4 994.1 4 179.1 2 980.7 -
Plus:
18.1 631.8 726.4 986.5 2 362.8 Amortisation and depreciation 3 103.9 1 458.0 1 096.5 528.1 21.3
- - - - - Rehabilitation costs# - - - - -
18.1 3 274.7 4 690.4 5 258.8 13 242.0 Total production cost(3) 15 257.8 6 452.1 5 275.6 3 508.8 21.3
8 981 15 350 13 728 38 059 kg Gold sold kg 44 474 18 775 15 977 9 722
288.7 493.5 441.4 1 223.6 000’ozs 000’ozs 1 429.9 603.6 513.7 312.6
294 277 258 241 311 211 285 851 R/kg Total cash cost R/kg 273 281 265 997 261 570 306 593
1 118 981 1 182 1 086 US$/oz Total cash cost US$/oz 885 862 847 993
364 625 305 564 383 071 347 933 R/kg Total production cost R/kg 343 072 343.654 330 200 360 913
1 385 1 160 1 455 1 321 US$/oz Total production cost US$/oz 1 112 1 113 1 070 1 169
Average exchange rates were US$1 = R8.19 and US$1 = R9.60 for the year ended 31 December 2012 and the year
ended 31 December 2013 respectively.
# Rehabilitation inflation has been reclassified from Operating costs to Finance expenses for all
periods, and as a result no longer requires elimination in the Total cash cost calculation. This change
has no effect on the calculation of cash cost.
DEFINITIONS
Total cash cost and Total production cost are calculated in accordance with the Gold Institute Industry
standard.
(1) Operating costs – All gold mining related costs before amortisation/depreciation, taxation and non-
recurring items.
(2) Total cash cost – Operating costs less off-mine costs, which include general and administration costs,
as detailed in the table above.
(3) Total production cost – Total cash cost plus amortisation/depreciation as detailed in the table above.
Notional cash expenditure ##
Figures are in South African rand millions unless otherwise stated
For the year ended31 December 2012 For the year ended 31 December 2013
Corporate Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Corporate
- 2 622.4 3 899.0 4 302.4 10 823.8 Rm Operating costs Rm 11 973.3 4 881.2 4 100.7 2 991.4 -
22.5 658.2 1 335.3 1 090.9 3 106.9 Capital expenditure 2 901.5 1 023.0 1 303.6 537.0 37.9
22.5 3 280.6 5 234.3 5 393.3 13 930.7 Notional cash expenditure 14 874.8 5 904.2 5 404.3 3 528.4 37.9
365 282 340 997 392 869 366 029 R/kg Notional cash expenditure R/kg 334 461 314 471 338 255 362 929
1 387 1 295 1 492 1 390 S$/oz Notional cash expenditure US$/oz 1 084 1 019 1 096 1 176
Average exchange rates were US$1 = R8.19 and US$1 = R9.60 for the year ended 31 December 2012 and the year
ended 31 December 2013 respectively.
## Notional cash expenditure (NCE) per kilogram = Operating cost plus capital expenditure divided by gold
produced.
All-in cost
World Gold Council Guidance Basis
Figures are in South African rand millions unless otherwise stated
For the year ended31 December 2012 For the year ended 31 December 2013
Corporate Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Corporate
- 2 622.4 3 899.0 4 302.4 10 823.8 Rm Operating costs(1) Rm 11 973.3 4 881.2 4 100.7 2 991.4 -
Plus:
- 6.0 9.8 4.0 19.8 Community costs 23.8 8.5 7.8 7.5 -
105.6 42.3 43.5 72.1 263.5 Share-based payments(2) 305.8 61.1 47.2 41.8 155.7
- 70.5 145.4 66.2 282.1 Royalties 414.6 198.3 147.1 69.2 -
- 23.3 37.0 30.8 91.1 Rehabilitation 164.6 83.7 54.3 26.6 -
- 447.5 830.8 849.6 2 127.9 Ore reserve development 1 883.0 702.8 843.8 336.4 -
22.5 210.7 504.5 241.3 979.0 Sustaining capital expenditure 1 018.5 320.2 459.8 200.6 37.9
Less:
- (7.6) (6.7) (8.2) (22.5) By-product credit (23.1) (10.1) (6.7) (6.3) -
128.1 3 415.1 5 463.3 5 558.2 14 564.7 Total All-in sustaining cost(3) 15 760.5 6 245.7 5 654.0 3 667.2 193.6
Plus:
- - - - - Other corporate costs - - - - -
- - - - - Major growth projects - - - - -
128.1 3 415.1 5 463.3 5 558.2 14 564.7 Total All-in cost(4) 15 760.5 6 245.7 5 654.0 3 667.2 193.6
8 981 15 350 13 728 38 059 kg Gold sold kg 44 474 18 775 15 977 9 722
288.7 493.5 441.4 1 223.6 000’ozs Gold sold 000’ozs 1 429.9 603.6 513.7 312.6
380 258 355 915 404 881 382 687 R/kg Total All-in cost R/kg 354 376 332 660 353 884 377 206
1 444 1 352 1 538 1 453 US$/oz Total All-in cost US$/oz 1 148 1 078 1 147 1 222
Average exchange rates were US$1 = R8.19 and US$1 = R9.60 for the year
ended 31 December 2012 and the year ended 31 December 2013 respectively.
DEFINITIONS
All-in costs are calculated in accordance with the World Gold Council guidance.
(1) Operating costs – As published and includes all mining and processing costs, third party refining
costs, permitting costs and corporate G&A charges.
(2) Share-based payments are calculated based on the initial recognition fair value and does not include
the fair valuing adjustment of the cash-settled share-based payment liability to the reporting date
fair value.
(3) Total All-in sustaining costs – includes Operating costs and costs detailed above, including
sustaining capital expenditure, based on managed gold sales.
(4) Total All-in costs includes sustaining and group costs, excluding income tax, M&A activity, working
capital, impairments, financing costs, one-time severance charges and items needed to normalise
earnings.
QUARTERLY SALIENT FEATURES AND DEVELOPMENT RESULTS
United States Dollars South African Rand
Beatrix Kloof Driefontein Group For the quarter ended 31 December 2013 Group Driefontein Kloof Beatrix
Salient Features
1 099 1 122 1 357 3 578 000’tons Ore milled - total 000’tons 3 578 1 357 1 122 1 099
745 474 688 1 907 Underground 1 907 688 474 745
354 648 669 1 671 Surface 1 671 669 648 354
2.6 3.7 3.7 3.4 g/t Yield g/t 3.4 3.7 3.7 2.6
3.6 7.9 6.7 5.8 Underground 5.8 6.7 7.9 3.6
0.4 0.5 0.7 0.6 Surface 0.6 0.7 0.5 0.4
91.3 132.3 162.2 385.8 000’ozs Gold produced and sold kg 12 000 5 045 4 115 2 840
87.2 120.9 148.0 356.0 Underground 11 074 4 603 3 760 2 711
4.1 11.4 14.2 29.8 Surface 926 442 355 129
1 278 1 278 1 281 1 279 US$/oz Gold price received R/kg 415 742 416 392 415 261 415 282
851 782 769 793 US$/oz Total cash cost R/kg 257 683 250 030 254 265 276 232
994 1 002 913 967 US$/oz Notional cash expenditure R/kg 314 175 296 769 325 614 323 134
1 044 1 045 966 1 027 US$/oz All-in cost R/kg 333 833 313 915 339 757 339 507
18 18 25 20 % All-in cost margin % 20 25 18 18
71 89 87 83 US$/ton Operating cost R/ton 842 892 904 718
100 193 157 143 Underground 1 460 1 600 1 962 1 011
10 13 16 13 Surface 137 163 130 101
12.6 32.0 28.5 74.6 US$’mil Total capital expenditure1 Rm 757.4 287.3 325.9 128.9
6.5 10.4 11.0 29.5 Sustaining capital 296.8 109.9 106.7 64.9
6.1 21.6 17.4 45.1 Ore reserve development 460.6 177.4 219.2 64.0
The average exchange rate for the quarter ended 31 December 2013 was R10.11/US$.
1 Group capital expenditure includes corporate capital expenditure of R15.3 million (US$1.5 million).
United States Dollars South African Rand
Beatrix Kloof Driefontein Group For the quarter ended 30 September 2013 Group Driefontein Kloof Beatrix
Salient Features
1 083 1 104 1 423 3 610 000’tons Ore milled- total 000’tons 3 610 1 423 1 104 1 083
641 485 659 1 785 Underground 1 785 659 485 641
442 619 764 1 825 Surface 1 825 764 619 442
2.5 3.7 3.7 3.3 g/t Yield g/t 3.3 3.7 3.7 2.5
4.0 7.6 7.4 6.2 Underground 6.2 7.4 7.6 4.0
0.4 0.6 0.5 0.5 Surface 0.5 0.5 0.6 0.4
87.4 130.0 170.3 387.8 000’ozs Gold produced and sold kg 12 061 5 298 4 044 2 719
82.1 118.5 157.0 357.5 Underground 11 121 4 882 3 686 2 553
5.3 11.5 13.4 30.2 Surface 940 416 358 166
1 328 1 324 1 324 1 325 US$/oz Gold price received R/kg 425 081 424 840 424 753 426 039
895 835 763 817 US$/oz Total cash cost R/kg 262 142 244 772 268 027 287 238
998 1 082 904 986 US$/oz Notional cash expenditure R/kg 316 441 289 940 347 255 320 302
1 052 1 131 970 1 059 US$/oz All-in cost R/kg 339 847 311 099 362 834 337 624
21 15 27 20 % All-in cost margin % 20 27 15 21
72 98 89 86 US$/ton Operating cost R/ton 862 888 974 713
115 203 173 160 Underground 1 600 1 729 2 023 1 146
8 15 16 14 Surface 140 162 153 85
9.6 32.8 27.5 70.4 US$’mil Total capital expenditure1 Rm 705.5 273.0 328.5 98.7
3.0 12.2 9.0 24.7 Sustaining capital 246.6 88.4 122.0 30.9
6.6 20.6 18.5 45.7 Ore reserve development 458.9 184.6 206.5 67.8
The average exchange rate for the quarter ended 30 September 2013 was R9.98/US$.
1 Group capital expenditure includes corporate capital expenditure of R5.3 million (US$0.5 million).
Figures may not add as they 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.
Driefontein Quarter ended 31 December 2013 Quarter ended 30 September 2013 Year ended 31 December 2013
Reef Carbon leader Main VCR Carbon leader Main VCR Carbon leader Main VCR
Advanced (m) 2 472 990 914 2 689 1 007 988 10 721 3 671 3 359
Advanced on reef (m) 360 301 144 489 170 357 2 274 1 037 1 088
Sampled (m) 252 219 84 504 237 255 1 659 804 677
Channel width (cm) 88 37 43 93 53 53 80 47 56
Average value (g/t) 25.5 16.7 22.9 19.3 17.0 28.7 20.0 16.9 29.6
(cm.g/t) 2 253 613 979 1 804 910 1 513 1 600 800 1 664
Kloof Quarter ended 31 December 2013 Quarter ended 30 September 2013 Year ended 31 December 2013
Reef VCR Kloof Main Libanon VCR Kloof Main Libanon VCR Kloof Main Libanon
Advanced (m) 3 458 423 1 055 73 3 156 342 1 041 - 14 133 1 202 3 899 97
Advanced on reef (m) 610 78 169 53 624 108 183 - 2 415 393 673 77
Sampled (m) 461 36 228 45 448 113 165 - 1 638 336 768 54
Channel width (cm) 116 121 51 74 116 216 141 - 112 177 104 77
Average value (g/t) 21.7 11.8 14.0 5.3 22.3 5.2 10.1 - 22.4 4.5 9.9 5.9
(cm.g/t) 2 526 1 420 714 391 2 593 1 114 1 400 - 2 517 804 1 032 460
Beatrix Quarter ended 31 December 2013 Quarter ended 30 September 2013 Year ended 31 December 2013
Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Advanced (m) 3 817 494 4 149 241 15 498 2 033
Advanced on reef (m) 1 112 268 1 004 34 3 677 626
Sampled (m) 777 240 1 095 30 3 594 579
Channel width (cm) 145 136 116 - 142 100
Average value (g/t) 6.4 10.29 6.3 -6 7.1 10.7
(cm.g/t) 921 1 393 732 - 1 002 1 069
ADMINISTRATION AND CORPORATE INFORMATION
Investor Enquiries
James Wellsted
Head of Corporate Affairs
Sibanye Gold Limited
+27 83 453 4014
+27 11 278 9656
james.wellsted@sibanyegold.co.za
Corporate Secretary
Cain Farrel
Tel: +27 10 001 1122
Fax: +27 11 278 9863
cain.farrel@sibanyegold.co.za
Registered Office
Libanon Business Park
1 Hospital Street,
(Off Cedar Ave),
Libanon, Westonaria,
1780
South Africa
Private Bag X5
Westonaria,
1780
South Africa
Tel: +27 11 278 9600
Fax: +27 11 278 9863
Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
Issuer code: SGL
ISIN – ZAE E000173951
Listings
JSE : SGL
NYSE : SBGL
Website
www.sibanyegold.co.za
Directors:
Sello Moloko* (Chairman)
Neal Froneman (CEO)
Charl Keyter (CFO)
Timothy Cumming*
Barry Davison*
Rick Menell*
Nkosemntu Nika*
Keith Rayner*
Zola Skweyiya*
Susan van der Merwe*
Jerry Vilakazi*
Cain Farrel (Company Secretary)
*Independent Non-Executive
JSE Sponsor
J.P. Morgan Equities South Africa Proprietary Limited Registration number 1995/011815/07
1 Fricker Road
Illovo, Johannesburg
2196
South Africa
(Private Bag X9936, Sandton, 2196, South Africa)
American Depository Receipts Transfer Agent
Bank of New York Mellon
BNY Mellon Shareowner Services
P O Box 358516
Pittsburgh, PA15252-8516
US toll-free telephone:
+1 888 269 2377
Tel: +1 201 680 6825
e-mail: shrrelations@bnymellon.com
Office of the United Kingdom Secretaries
London
St James’s Corporate Services Limited
Suite 31, Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Tel: +44 20 7796 8644
Fax: +44 20 7796 8645
Transfer Secretaries
United Kingdom
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 0871 664 0300
[calls cost 10p a minute plus network extras, lines are open 8.30am – 5pm Mon-Fri] or
[from overseas]
+44 20 8639 3399
Fax: +44 20 8658 3430
e-mail: ssd@capitaregistrars.com
Transfer Secretaries
South Africa
Computershare Investor Services (Proprietary) Limited Ground Floor
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
Tel: +27 11 370 5000
Fax: +27 11 688 5248
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: 20/02/2014 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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