Wrap Text
Reviewed Provisional Condensed Consolidated Results
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
REVIEWED PROVISIONAL CONDENSED CONSOLIDATED RESULTS
WESTONARIA 28 March 2014: Sibanye Gold Limited (“Sibanye Gold”) (JSE: SGL & NYSE: SBGL) is
pleased to report its reviewed condensed, consolidated provisional financial statements for
the year ended 31 December 2013.
The provisional condensed, consolidated financial statements are unchanged to the preliminary
condensed consolidated financial statements published on 20 February 2014, except for further
details in the notes regarding to the investment in Rand Refinery Proprietary Limited (refer
to note 2 on page 5) and the acquisition of Witwatersrand Consolidated Gold Resources Limited
(“Wits Gold”) (refer to note 10 on page 7).
The provisional condensed, consolidated financial statements will be mailed to shareholders on
31 March 2014 and the 2013 Annual Report will be posted in due course.
Shareholders are referred to the Operating and Financial Report for the six months and year
ended 31 December 2013 published on 20 February 2014 for detail on the operational and
financial results of Driefontein, Kloof and Beatrix.
Salient features for the year ended 31 December 2013:
- Operating profit increased by 28% to R7 358 million (US$767 million) from R5 730 million
(US$700 million) for the year ended 31 December 2012.
- Gold produced increased by 17% to 44 474kg (1.43Moz), restoring the quarterly production
rate to 2010 levels.
- All-in cost reduced by 7% from the previous year to R354 376/kg (US$1 148/oz).
- The All-in cost margin increased to 18% from 12% during the previous year.
- 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 R3.9 billion
(US$459 million) at 31 December 2012.
- R2.2 billion (US$231 million) net debt repayments during the year ended 31 December 2013,
reduced gross debt to R2.0 billion (US$193 million).
- Bridge Loan Facilities refinanced to more favourable and less restrictive terms.
- Gold reserves increased by 46% to 19.7Moz, with a maiden uranium reserve declared of
43.2Mlb.
- 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) in respect of the year
ended 31 December 2013, resulting in a total dividend of 112 cents per share (ZAR) for 2013.
This is equivalent to a dividend yield of 9.1% at the closing share price on 31 December 2013.
The final dividend was paid on 17 March 2014.
United States Dollars Key Statistics South African Rand
December December December December
2012 2013 2013 2012
1 223.6 1 429.9 000’oz Gold produced kg 44 474 38 059
12 185 13 624 000ton Ore milled 000ton 13 624 12 185
1 652 1 408 $/oz Revenue R/kg 434 663 434 943
108 92 $/ton Operating cost R/ton 879 888
699.6 766.5 $m Operating profit Rm 7 357.9 5 729.7
35 38 % Operating margin % 38 35
1 086 885 $/oz Total cash cost R/kg 273 281 285 851
1 390 1 084 $/oz NCE R/kg 334 461 366 029
1 453 1 148 $/oz All-in cost R/kg 354 376 382 687
12 18 % All-in cost margin % 18 12
363.8 176.3 $m Basic earnings Rm 1 692.4 2 979.6
363.6 243.6 $m Headline earnings Rm 2 309.8 2 977.9
Stock data NYSE – (SBGL)
Number of shares in issue Price range per ADR US$2.65 to US$7.47
– at end of December 735 079 031 Average daily volume 871 624
– weighted average 650 621 237 Free Float 100%
JSE Limited – (SGL) ADR Ratio 1:4
Price range per ordinary share ZAR6.73 to ZAR16.30 Bloomberg/Reuters SGLS / SGLJ.J
Average daily volume 4 754 958
The above is from the listing date 11 February 2013
FINANCIAL REVIEW OF THE GROUP FOR THE YEAR
Revenue
Revenue increased from R16 554 million for 2012 to R19 331 million for 2013, an increase of
17%. The gold price decreased by 15% in US dollar terms from an average of US$1 652/oz in 2012
to US$1 408/oz in 2013. However, the weaker rand against the US dollar offset this decline,
resulting in an unchanged year-on-year average rand gold price of R434 663/kg (2012: R434
943/kg). The rand weakened by 17% year-on-year from an average of R8.19/US$ to R9.60/US$.
Gold produced for the year was 44 474kg (1.43Moz) compared with 38 059kg (1.22Moz) in 2012, an
increase of 17%. In general, the increase in production was largely due to two factors.
Firstly, towards the end of 2012 the industry went through a period of prolonged, disruptive
illegal strike action, which resulted in production losses of approximately 4 500kg (145
000oz) at Sibanye Gold. Strike action during 2013 was limited to a few days and had little,
if any, effect on production levels, resulting in higher production levels in 2013. The second
factor resulting in an increase in production was the implementation of the new operating
strategy following the unbundling of these operations in February 2013. This resulted in an
increase in volumes milled and an improvement in the quality of mining. This production
increase was partially offset at Beatrix by the fire which started on 19 February 2013 at the
Beatrix West section.
Operating costs
Operating costs increased by 11% from R10 824 million in 2012 to R11 973 million in 2013. This
increase was due to above inflation wage increases of between 7.5% and 8.0% depending upon the
category of employee, increased electricity tariffs and costs associated with the increased
production, such as stores and bonuses. These increases were partly offset by cost saving
initiatives implemented during the year, which resulted in improved efficiencies, together
with a reduction in contractor costs, and a reduction of employees in service.
The weighted average total cash cost per kilogram decreased by 4% from R285 851/kg
(US$1 086/oz) in 2012 to R273 281/kg (US$885/oz) in 2013. This decrease was as a result of the
17% increase in gold produced and sold, partly offset by the increase in royalties and
operating costs described earlier.
Operating margin
The Group operating margin increased to 38% from 35% as a result of the increase in
production, partly offset by production and inflation related cost increases.
Net profit
Despite the increase in operating profit, once-off items including a R821 million impairment
in the carrying value of the Beatrix West section, R439 million restructuring costs and
increased royalties and taxation charges of R133 million and R335 million respectively,
resulting from the improvement in profitability. In addition, in 2012 Sibanye Gold accounted
for a deferred tax credit due to amendments to the statutory tax rate of R1 004 million. This
compares with a net deferred tax credit in 2013 of R214 million arising from an adjustment to
the long term deferred tax rate. As a result of the above profit for the year amounted to
R1 698 million (2012: R2 980 million).
Cash flow
Cash generated by the Group’s operations amounted to R6 840 million for the year, a 25%
increase on 2012 (R5 477 million) mainly due to increase in gold production. These cash flows
were used to pay interest of R326 million, royalties of R249 million, taxation of R305 million
and dividends of R272 million. Sibanye Gold spent R1 019 million on sustaining capital and
R1 883 million on ore reserve development. Net debt repayments during the year totaled
R2 220 million, reducing gross debt to R2 000 million and net debt to R499 million at year
end.
Outlook
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 (1.4Moz). Total cash cost is
forecast at approximately R270 000/kg (US$800/oz) and All-in cost at approximately R360 000/kg
(US$1 070/oz), assuming an average exchange rate of R10.50/US$ during the year. Capital
expenditure for the year is forecast at approximately R3.1 billion.
PROVISIONAL FINANCIAL STATEMENTS
Condensed consolidated income statement
for the year ended 31 December 2013
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Audited Reviewed Reviewed Audited
2012 2013 Notes 2013 2012
2 021.2 2 013.7 Revenue 19 331.2 16 553.5
(1 321.6) (1 247.2) Operating costs (11 973.3) (10 823.8)
699.6 766.5 Operating profit 7 357.9 5 729.7
(288.5) (323.3) Amortisation and depreciation (3 103.9) (2 362.8)
411.1 443.2 Net operating profit 4 254.0 3 366.9
12.9 16.7 Investment income 160.3 105.5
(21.6) (43.8) Finance expenses (420.3) (176.7)
(14.8) (10.0) Net other costs (95.6) (121.3)
11.4 5.4 Share of results of associates after taxation 2 51.5 93.1
(32.2) (31.9) Share-based payments 3 (305.8) (263.5)
1.7 (0.5) (Loss)/gain on financial instruments (4.6) 13.8
0.1 6.7 Gain on foreign exchange differences 24.0 1.2
368.6 385.8 Profit before non-recurring items 3 663.5 3 019.0
0.3 0.6 Profit on disposal of property, plant and equipment 5.5 2.4
- (89.7) Impairment 4 (821.0) -
- (3.1) Loss on loss of control of subsidiary (30.2) -
(15.2) (45.8) Restructuring costs (439.4) (124.1)
- (1.0) Transaction costs (9.3) -
353.7 246.8 Profit before royalties and taxation 2 369.1 2 897.3
(34.4) (43.2) Royalties (414.6) (282.1)
319.3 203.6 Profit before taxation 1 954.5 2 615.2
44.6 (26.7) Mining and income taxation (256.2) 365.0
(57.9) (84.4) - Current taxation (809.8) (474.8)
102.5 57.7 - Deferred taxation 5 553.6 839.8
363.9 176.9 Profit for the year 1 698.3 2 980.2
Attributable to:
363.8 176.3 - Owners of Sibanye Gold 1 692.4 2 979.6
0.1 0.6 - Non-controlling interests 5.9 0.6
Earnings per ordinary share (cents)
36 380 000 27 Basic earnings per share 260 297 960 000
36 380 000 27 Diluted earnings per share 255 297 960 000
1 650 621 Weighted average number of shares (‘000) 650 621 1
1 664 288 Diluted weighted average number of shares (‘000) 664 288 1
Headline earnings per ordinary share (cents) 6
36 360 000 37 Headline earnings per share 355 297 790 000
36 360 000 37 Diluted headline earnings per share 348 297 790 000
1 650 621 Weighted average number of shares (‘000) 650 621 1
1 664 288 Diluted weighted average number of shares (‘000) 664 288 1
8.19 9.60 Average R/US$ rate
Condensed consolidated statement of comprehensive income
for the year ended 31 December 2013
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Audited Reviewed Reviewed Audited
2012 2013 2013 2012
363.9 176.9 Profit for the year 1 698.3 2 980.2
69.6 (111.0) Other comprehensive income net of tax - -
69.6 (111.0) Currency translation adjustments - -
433.5 65.9 Total comprehensive income for the year 1 698.3 2 980.2
Attributable to:
433.4 65.3 - Owners of Sibanye Gold 1 692.4 2 979.6
0.1 0.6 - Non-controlling interests 5.9 0.6
8.19 9.60 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.
Condensed consolidated statement of financial position
as at 31 December 2013
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Audited Reviewed Reviewed Audited
2012 2013 Notes 2013 2012
2 094.7 1672.2 Non-current assets 17 289.9 17 950.6
1 911.0 1 465.3 Property, plant and equipment 4 15 151.0 16 376.1
25.7 26.7 Investments 2 276.5 220.1
155.3 153.6 Environmental rehabilitation obligation funds 1 588.1 1 331.1
- 23.1 Financial guarantee asset 7 238.5 -
2.7 3.5 Deferred taxation 35.8 23.3
203.9 261.7 Current assets 2 705.0 1 747.1
40.7 18.1 Inventory 187.1 348.9
129.2 94.3 Related party, trade and other receivables 973.8 1 106.4
- 5.0 Current portion of financial guarantee asset 7 51.7 -
34.0 144.3 Cash and cash equivalents 1 492.4 291.8
2 298.6 1 933.9 Total assets 19 994.9 19 697.7
(1 128.6) 911.4 Shareholders’ equity 8 9 423.4 (9 672.7)
926.9 675.1 Non-current liabilities 6 980.0 7 942.3
488.4 361.3 Deferred taxation 5 3 735.4 4 185.5
233.5 144.2 Borrowings 9 1 491.4 2 000.0
202.9 160.6 Environmental rehabilitation obligation 1 660.7 1739.1
2.1 1.6 Post-retirement healthcare obligation 16.3 17.7
- 7.4 Share-based payment obligation 76.2 -
2 500.3 347.4 Current liabilities 3 591.5 21 428.1
2 207.3 200.5 Related party, trade and other payables 2 073.0 18 915.1
22.8 20.0 Financial guarantee liability 7 206.6 196.4
11.2 74.2 Taxation and royalties payable 767.2 96.6
259.0 48.3 Current portion of borrowings 9 499.5 2 220.0
- 4.4 Current portion of share-based payment obligation 45.2 -
2 298.6 1 933.9 Total equity and liabilities 19 994.9 19 697.7
458.5 48.2 Net debt 498.5 3 928.2
8.57 10.34 Closing R/US$ rate
Condensed consolidated statement of changes in equity
for the year ended 31 December 2013
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 Reserves loss interest equity equity interest loss Reserves 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 year 2 980.2 0.6 2 979.6 - -
- - 363.8 0.1 363.9 Profit for the year 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 year 1 698.3 5.9 1 692.4 - -
- - 176.3 0.6 176.9 Profit for the year 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
Condensed consolidated statement of cash flows
for the year ended 31 December 2013
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Audited Reviewed Reviewed Audited
2012 2013 2013 2012
Cash flows from operating activities
668.8 716.7 Cash generated by operations 6 840.0 5 477.4
(0.1) (0.3) Post-retirement healthcare payments (2.7) (1.2)
- (0.4) Cash-settled share-based payments paid (3.9) -
(79.0) 59.2 Change in working capital 568.7 (648.0)
589.9 775.2 Cash generated by operating activities 7 402.1 4 828.2
- 5.0 Guarantee fee received 47.0 -
4.3 6.6 Interest received 63.3 35.3
(14.3) (34.0) Interest paid (326.3) (116.9)
(50.5) (25.9) Royalties paid (249.0) (413.7)
(119.7) (31.8) Taxation paid (304.8) (980.4)
(95.5) (27.1) Dividends paid (271.9) (731.3)
314.0 668.0 Net cash flows from operating activities 6 360.4 2 621.2
Cash flows from investing activities
(379.4) (302.2) Additions to property, plant and equipment (2 901.5) (3 106.9)
0.6 0.7 Proceeds on disposal of property, plant and equipment 6.9 5.2
(3.0) (19.0) Contributions to funds and payment of environmental (182.8) (24.3)
rehabilitation obligation
- 0.6 Cash flow on loss of control of subsidiary 5.9 -
(381.8) (319.9) Net cash flows used in investing activities (3 071.5) (3 126.0)
Cash flows from financing activities
- 1 955.3 Proceeds for shares issued on unbundling 17 245.8 -
- (1 025.0) Loans repaid (9 840.0) -
515.3 793.8 Loans raised 7 620.0 4 220.0
(521.7) (1 939.7) Related party loans repaid (17 108.0) (4 272.4)
59.4 - Related party loans raised - 486.2
- (0.9) Financing costs capitalised (9.1) -
- 0.3 Shares issued to non-controlling interest 3.0 -
53.0 (216.2) Net cash (used in)/flows from financing activities (2 088.3) 433.8
(14.8) 131.9 Net increase/(decrease) in cash and cash equivalents 1 200.6 (71.0)
4.2 (21.6) Effect of exchange rate fluctuations on cash held - -
44.6 34.0 Cash and cash equivalents at beginning of year 291.8 362.8
34.0 144.3 Cash and cash equivalents at end of year 1 492.4 29
8.19 9.60 Average R/US$ rate
8.57 10.34 Closing R/US$ rate
NOTES TO THE PROVISIONAL CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of accounting and preparation
The provisional condensed consolidated financial statements for the year ended 31 December
2013 has been prepared and presented in accordance with the requirements of the JSE Listings
Requirements for provisional reports and the requirements of the Companies Act of South
Africa. The JSE Listings Requirements require provisional reports to be prepared in accordance
with 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 provisional 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 Limited (“the Group” or “Sibanye Gold”) 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 translation of the financial statements into US Dollar is based on the average exchange
rate for the year for the income statement and statement of cash flows and the year-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.
Where necessary, comparative periods may be adjusted to conform to changes in presentation.
The distributable reserve, "Transactions with non-controlling interests" of R3 648.5 million
(US$512.1 million) previously included in other reserves has been combined with accumulated
loss to indicate the nature of the reserve, with effect from 31 December 2011.
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 being reclassified from
operating cost to finance expense. This reclassification had no effect on Profit before
royalties and taxation.
The reclassifications have no impact on the opening balances of the statement of financial
position, therefore no third statement of financial position has been prepared in terms of
IAS 1.
2. Investment in Rand Refinery Proprietary Limited
Included in Investments is an investment in an associate amounting to R270 million which
relates to an interest of 33.1% in Rand Refinery Proprietary Limited (“Rand Refinery”).
The profit for the year after tax included the results of associate amounts to R52 million.
Rand Refinery has not issued its audited results for its year ended 30 September 2013 and
therefore Sibanye Gold’s share of results has been based on unaudited management accounts.
Rand Refinery implemented a new Enterprise Resource Planning (“ERP”) system on 1 April 2013 to
assist with its financial and management accounting. Since the implementation of the ERP software,
the customisation of the software has been problematic with the result that Rand Refinery has
not been able to reconcile certain accounts at 30 September 2013. Rand Refinery’s management
team is currently resolving the problems encountered with the ERP software and is in the
process of investigating the transactions processed from 1 April 2013 on the ERP system to
determine if any adjustments to their current financial records are required. At this stage,
the Rand Refinery management team cannot be certain that the results in its management accounts
are accurate. Accordingly there is uncertainty around the results of the associate
after tax in Sibanye Gold’s results. This uncertainty does not extend to Sibanye Gold’s revenue from gold production or operating profit.
Sibanye Gold concluded that any share of potential adjustments from the unaudited management
accounts to be recognised will be limited to the current carrying value of its investment in
Rand Refinery as no guarantees were provided to Rand Refinery.
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) for the year ended 31 December 2013.
The Beatrix West impairment also resulted in a deferred tax credit of R230 million
(US$25 million) for the year ended 31 December 2013.
During 2012, the statutory tax rate for gold mining companies changed and resulted in a
deferred tax credit of R1.0 billion (US$123 million).
6. Reconciliation of headline earnings with profit
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Audited Reviewed Reviewed Audited
2012 2013 2013 2012
363.8 176.3 Profit attributable to owners of Sibanye Gold 1 692.4 2 979.6
(0.3) (0.6) Profit on disposal of property, plant and equipment (5.5) (2.4)
- 89.7 Impairment 821.0 -
- 3.1 Loss on loss of control of subsidiary 30.2 -
0.1 (24.9) Taxation effect of remeasurement items (228.3) 0.7
363.6 243.6 Headline earnings 2 309.8 2 977.9
8.19 9.60 Average R/US$ rate
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)
(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) of which R52 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. 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.
9. Borrowings
On 18 February 2013, the date of unbundling from Gold Fields, Sibanye refinanced its
R3 500 million (2012: R3 000 million) long-term credit facilities and R900 million
(2012: R1 220 million) short-term credit facilities, which were Gold Fields group debt
facilities, by drawing down R4 570 million under the Bridge Loan Facilities.
Sibanye repaid R2 570 million of the Bridge Loan Facilities during the year and on
13 December 2013, Sibanye repaid the balance of the Bridge Loan Facilities by drawing down
R2 000 million under the new R4.5 billion Facilities.
The terms and conditions of the R4.5 billion Facilities are more favourable and less
restrictive than the Bridge Loan Facilities.
10. 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 those disclosed below:
Final dividend declared
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.
The final dividend was paid on 17 March 2014.
Group Mineral Reserves
The announcement on 17 February 2014 that the Group’s Mineral Reserves have increased by
46% to 19.7Moz (net of 1.5Moz 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.
Cooke Operations Acquisition
Sibanye Gold announced on 21 August 2013, that it had entered into an agreement with Gold One
International Limited (“Gold One”) 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 2014.
In terms of the Interim Management and Funding Agreement between Gold One and Sibanye, Sibanye
has been appointed, effective 1 March 2014, to manage the business and mining activities of
the Cooke Operations. Sibanye will be entitled to make available loan facilities to the Cooke
Operations to fund working capital requirements. The loans are repayable in the event that the
acquisition is terminated and not implemented. In such an event the loans are guaranteed by
Gold One.
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”).
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.
At the Wits Gold shareholders meeting of 13 March 2014, Wits Gold received the requisite
majority of votes on the various resolutions required to give effect to the transaction.
11. 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 8), 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.
12. Auditors Review
These provisional condensed consolidated financial statements of Sibanye Gold for the year
ended 31 December 2013 as set out on pages 2 to 9 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 year ended 31 December 2013
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Corporate Beatrix Kloof Driefontein Group 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 results1 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 year 1 698.3 945.3 1 006.7 (163.4) (90.3)
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 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$’mil Financial results1 R’mil
- 477.8 817.3 726.1 2 021.2 Revenue 16 553.5 5 946.6 6 693.9 3 913.0 -
- (320.2) (476.1) (525.3) (1 321.6) Operating costs (10 823.8) (4 302.4) (3 899.0) (2 622.4) -
- 157.6 341.2 200.8 699.6 Operating profit 5 729.7 1 644.2 2 794.9 1 290.6 -
(2.3) (77.1) (88.7) (120.5) (288.5) Amortisation and depreciation (2 362.8) (986.5) (726.4) (631.8) (18.1)
(2.3) 80.5 252.5 80.3 411.1 Net operating profit 3 366.9 657.7 2 068.5 658.8 (18.1)
1.3 2.4 4.5 4.7 12.9 Investment income 105.5 38.2 36.8 19.3 11.2
(0.7) (3.6) (9.5) (7.8) (21.6) Finance expenses (176.7) (63.0) (78.5) (29.9) (5.3)
20.2 (3.7) (8.0) (6.6) 1.9 Other costs 15.5 (53.6) (65.1) (30.3) 164.5
(12.9) (5.2) (5.3) (8.8) (32.2) Share-based payments (263.5) (72.1) (43.5) (42.3) (105.6)
- (1.0) (7.1) (10.3) (18.4) Non-recurring items (150.4) (84.3) (58.4) (8.0) 0.3
- (8.6) (17.7) (8.1) (34.4) Royalties (282.1) (66.2) (145.3) (70.5) -
(3.0) (14.8) (37.4) (2.8) (57.9) Current taxation (474.8) (22.6) (306.3) (121.5) (24.4)
2.0 29.1 25.3 46.1 102.5 Deferred taxation 839.8 377.3 207.4 238.2 16.9
4.7 74.9 197.3 86.9 363.9 Profit for the year 2 980.2 711.4 1 615.6 613.8 39.5
Attributable to:
4.6 74.9 197.3 86.9 363.8 Owners of Sibanye Gold 2 979.6 711.4 1 615.6 613.8 38.9
0.1 - - - 0.1 Non-controlling interests 0.6 - - - 0.6
US$’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.
ADMINISTRATION AND CORPORATE INFORMATION
Investor Enquiries
James Wellsted
Head of Corporate Affairs
Sibanye Gold Limited
Mobile: +27 83 453 4014
Tel: +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
Suit 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: 28/03/2014 04:55:00 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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