Wrap Text
Reviewed condensed consolidated preliminary financial statements for the year ended 31 December 2015.
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 2015
INCREASED QUARTERLY PRODUCTION TREND CONTINUED
WESTONARIA 25 February 2016: Sibanye Gold Limited (“Sibanye”) (JSE: SGL & NYSE: SBGL) is pleased to report operating and financial results for the
six months ended 31 December 2015, and reviewed condensed consolidated preliminary financial statements for the year ended 31 December 2015.
Salient features for the twelve months ended 31 December 2015
Final dividend, number 3, of 90 cents per share (ZAR) declared, resulting in a total dividend of 100 cents per share (ZAR) for the year ended
31 December 2015. Approximately R916 million in cash returned to shareholders.
Salient features for the six months ended 31 Decem107ber 2015 compared with the six months ended 31 December 2014:
- Operating profit was maintained at R4.0 billion (US$298 million) compared with the six months ended 31 December 2014
- Gold production of 25,571kg (822,100oz), maintained its increasing trend throughout the year
- The All-in sustaining cost (“AISC”) margin increased to 16% from 13%
- An all-time low fatal injury frequency rate of 0.06 per million man hours for the year was recorded for the Group
- Net debt of R1.4 billion (US$88 million) at 31 December 2015 reduced from R1.7 billion (US$137 million) at 30 June 2015
- Gold Mineral Reserves for the Group increased by 9% to 31.0Moz as at 31 December 2015
United States Dollars Key Statistics South African Rand
Year Six months ended Six months ended Year ended
Dec 2014 Dec 2015 Dec 2014 Jun 2015 Dec 2015 Dec 2015 Jun 2015 Dec 2014 Dec 2015 Dec 2014
1,589.3 1,536.0 877.4 713.9 822.1 000’oz Gold produced kg 25,571 22,204 27,289 47,775 49,432
18,235 19,861 10,452 9,732 10,129 000ton Ore milled 000ton 10,129 9,732 10,452 19,861 18,235
1,267 1,160 1,243 1,207 1,115 $/oz Revenue R/kg 487,736 461,426 437,979 475,508 440,615
73 65 70 68 61 $/ton Operating cost R/ton 839 810 763 825 785
690.3 497.0 363.7 199.0 298.0 $m Operating profit Rm 3,971.0 2,366.0 3,981.0 6,337.0 7,469.1
34 28 33 23 32 % Operating margin % 32 23 33 28 34
849 848 847 935 775 $/oz Total cash cost R/kg 339,017 357,508 298,520 347,613 295,246
1,071 1,031 1,069 1,137 941 $/oz AISC R/kg 411,795 434,769 376,687 422,472 372,492
15 11 13 4 16 % AISC margin % 16 4 13 11 15
143.3 56.2 93.4 15.1 41.1 $m Basic earnings Rm 537.1 179.8 1,018.8 716.9 1,551.5
130.9 52.9 69.7 14.3 38.6 $m Headline earnings Rm 505.0 169.6 765.3 674.6 1,417.5
208.7 95.7 107.4 20.5 75.2 $m Normalised earnings Rm 976.5 243.3 1,185.4 1,219.8 2,258.4
25 10 12 2 8 cps Normalised earnings cps 107 27 132 134 270
0.19 0.18 0.19 0.24 0.18 Net debt to EBITDA 0.21 0.26 0.20 0.21 0.20
Stock data for the six months ended 31 December 2015
Number of shares in issue JSE Limited – (SGL)
– at 31 December 2015 916,140,552 Price range per ordinary share ZAR13.66 to ZAR25.06
– weighted average 914,770,500 Average daily volume 3,363,291
Free Float 100% NYSE – (SBGL); one ADR represents four ordinary shares
ADR Ratio 1:4 Price range per ADR US$4.21 to US$7.27
Bloomberg/Reuters SGLS / SGLJ.J Average daily volume 1,223,341
STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER OF SIBANYE GOLD
“Consistent with the improving trends throughout the year, Sibanye’s operating performance for the second half of the year ended 31 December 2015 was
significantly better than the first half, with production increasing by 15% and All-in sustaining cost (“AISC”) 4% lower. Importantly, production of
12,799kg (411,500oz) for the December 2015 quarter was similar to that reported for the September 2015 quarter and was in line with guidance. Operating
cost of R813/ton (US$57/ton) and AISC of R402,797/kg (US$882/oz) were both significantly lower than for the September 2015 quarter and compare
favourably with Sibanye’s global gold peers, placing it amongst the lowest cost producers in the industry.
Gold production for the year ended 31 December 2015 of 47,775kg (1.54Moz) was 3% lower than for the year ended 31 December 2014, reflecting the impact
of the poor March 2015 quarter and the effects of Eskom load shedding in the June 2015 quarter. Total cash cost (“TCC”) of R347,613/kg (US$848/oz) and
AISC of R422,472/kg (US$1,031/oz) are also in line with previous guidance in rand terms, but significantly lower than previous guidance in dollar
terms. The average gold price received for the year ended 31 December 2015 was R475,508/kg (US$1,160/oz) resulting in a TCC margin of 27% and an AISC
margin of 11%.
Safety
Sibanye believes that all accidents are preventable and continues to focus on safety improvement by aligning beliefs and behaviours with our values,
including the goal of zero harm. It is therefore heartening to report a record low fatality rate at 0.06 per million man hours for 2015, which is below
the 2014 US fatality rate and a 50% improvement on 2014. This is a commendable achievement considering the depths and labour intensive nature of our
operations.
Regrettably there where two fatalities during the quarter ended 31 December 2015. Sibanye management and Board wish to express sincere condolences to
the families and colleagues of the two employees: Mr Kagiso Rabola and Mr Alberto Constantino.
Quarter on quarter, an improvement of 18% and 21% was shown in the serious and lost day injury frequency rates, respectively. These improvements
re-affirm the adequacy of our safety strategy and the ongoing need to ensure compliance to operational requirements.
Wage negotiations
As previously reported, a three year wage agreement was reached with the National Union of Mineworkers (“NUM”), UASA and Solidarity on 22 October 2015.
The Association of Mineworkers and Construction Union (“AMCU”) was not prepared to enter into the agreement, which would have ensured sustainable
operations without putting jobs at risk. In order not to prejudice any employees and to avert tensions in the workplace, a decision was taken to
implement the wage agreement to all employees in the bargaining unit at Sibanye. Unlike the other gold mining companies, Sibanye was not in a position
to implement a Section 23(1)(d) extension at all of its workplaces. Wage increases were therefore implemented across our operations, backdated to
1 July 2015. All employees have subsequently been remunerated equally and have been benefiting from other incentive remuneration, including a profit
share scheme that was introduced in 2015.
While AMCU retains a certificate of non-resolution, which allows the union to proceed on protected strike action at certain of the Sibanye workplaces
on 48 hours’ notice, the indication amongst our employees is that there is limited appetite to embark on strike action. Should AMCU leadership serve
the company with a strike notice, we are ready to implement carefully considered plans to limit losses during a strike.
Corporate activity
It was pleasing to note the overwhelming support from shareholders for the proposed acquisitions of the Rustenburg operations from Anglo American
Platinum Limited and Aquarius Platinum Limited at the respective general meetings held during January 2016. The conclusion of the transactions remains
subject to the fulfilment of the final outstanding conditions precedent including, inter alia:
- The approval of both transactions by the Competition authorities of the Republic of South Africa; and
- The granting of consent in terms of section 11 of the MPRDA for the sale of the Rustenburg Mining Right and the Prospecting Right to Sibanye.
Sibanye remains confident that the Aquarius transaction will be concluded before the end of April 2016 and the Rustenburg transaction during the second
half of the year, allowing significant future value to be realised from these world class platinum assets.
Sibanye continues to make strong progress towards enhancing the security and cost effectiveness of our electricity supply. Against the background of
continuing above inflation increases from Eskom, our 150MW photovoltaic project remains on track for first generation towards the end of 2017. The
specialist studies in support of permitting applications at the selected site between our Driefontein and Kloof operations have largely been completed,
and a basic engineering design customised to the site requirements is at an advanced stage of development. The preferred commercial model through
which to optimise financial benefits for Sibanye and secure cost effective financing will be finalised during H1 of 2016.
In parallel, a number of off-site private power generation opportunities are being investigated with third party electricity project developers that
would complement on-site solar photovoltaic generation and commence a move towards baseload generation. The window when these projects are expected to
become economically competitive with Eskom will be determined through feasibility work and due diligence during 2016. Establishment of a coal fired
IPP (independent power producer) linked with specifically identified coal projects remains a leading opportunity that aligns with a potential entry of
Sibanye into the coal mining sector. Sibanye is in the process of evaluating potential investment opportunities in the coal sector that would add
commercial value to the Company, in addition to supporting our Energy strategy, by creating capacity to cost effectively supply thermal coal for power
generation.
Mineral Reserves and Resources
Group Mineral Reserves increased for the third consecutive year, with gold Mineral Reserves increasing by 9% to 31.0Moz from 28.4Moz declared at
31 December 2014 (for further detail please refer to the SENS announcement released on 24 February 2016 or on: www.sibanyegold.co.za). This was
achieved despite depletion of 1.6Moz from mining activities during 2015 and reflects the continued positive impact of prior operational
restructuring and the increased technical focus at the operations, as well as R3.6 billion of capital investment in organic projects
approved by the Board in 2015.
Uranium Mineral Reserves for the Group also increased by 11% to 113.8Mlb, with a maiden Mineral Reserve declared at Beatrix’s Beisa Project.
Organic projects
Driefontein 5 shaft
The Driefontein 5 Shaft 50 Level Decline Project (below infrastructure) will extend the Driefontein Operation’s life by more than ten years to 2042
and will produce 2.1Moz of incremental gold. This is in addition to the above infrastructure Life of Mine (“LoM”) plan, following the first reef
intersection and raise development from 2024. Project capital expenditure before escalation is estimated at R1,100 million, spent over a 10 year
period. R124 million scheduled to be spent in 2016.
Initial site preparation and development commenced in 2015 and will continue in 2016 with the development of the site access excavations and supporting
infrastructure on 50 Level for the two decline shafts.
Kloof 4 shaft
The Kloof 4 Shaft 45 Level Decline Project (below infrastructure) will extend the Kloof Operation’s life from 2030 to 2033, producing 0.5Moz of
incremental gold. This is in addition to the current LoM plan from 2021, when the first reef intersection and wide raise are developed on 46 Level.
Total project capital expenditure is estimated at R690 million spent over a 7 year period. R107 million scheduled to be spent in 2016.
In 2015 access to the project site was completed. Mining equipment is due to be delivered during the first quarter of 2016, and the first development
metres below 45 Level are planned for the second quarter, from March 2016.
The Burnstone Operation
The Burnstone Project was approved by the board in 2015. The revised project envisages steady state production of between 100,000oz and 120,000oz per
annum from a gold Mineral Reserve of 1.8Moz over a 20- year LoM. The mine design and schedule in the feasibility study was limited to the mineable
reserves within a 3km radius of the shaft infrastructure. Extensive development will begin in 2016, with first gold production planned in 2018 and full
production achieved in 2021. Total project capital over the life of the mine is forecast at R1,850 million (in 2015 terms).
In 2015, approximately R270 million was spent on completing the pumping and rock hoisting infrastructure, dewatering the mine and completing some 2km
of development to access the ore body. The project budget for 2016 is approximately R700 million for procurement of additional mechanised fleet,
extensive
development to access the ore body and additional infrastructure.
The West Rand Tailings Retreatment Project
Following a review of the outcome of the definitive feasibility study, which was completed during the March 2015 quarter, a decision was taken to
integrate the Cooke uranium project and the reclamation of the Cooke 4 South tailing storage facility into the initial execution phase to expedite
uranium production.
This was successfully completed, supporting and additional R75 million, which has been approved in 2016 to fund the detailed engineering design work as
well as completion of the design, construction and operation of a pilot plant, while the environmental permitting processes continue. A positive record
of decision is expected from the regulators in mid-2016, when an execution budget will be taken to the Board for consideration and approval.
Outlook
The operational issues that affected performance in 2015 are unlikely to be repeated. Gold production for the year ending 31 December 2016 is forecast
to increase to approximately 50,000kg (1.61Moz), with TCC forecast at approximately R355,000/kg and AISC at approximately R425,000/kg. The recent sharp
depreciation of the rand to over R16.00/US$, means that costs in dollar terms are likely to be significantly lower than in 2015; assuming an average
exchange rate of R15.00/US$ for 2016, TCC is forecast at US$735/oz and AISC at US$880/oz. All-in cost is forecast to be R440,000/kg (US$915/oz), due
inter alia, to the initiation of the Kloof and Driefontein below infrastructure projects and the development of the Burnstone mine which were approved
in 2015. Total capital expenditure for 2016 is planned at R3.9 billion (US$ 265 million).
Due to the weaker rand, and a recovery in the dollar gold price, the rand gold price year to date is on average approximately R100,000/kg higher than
in 2015. Whilst we provide no forecast of the future gold price, should this gold price persist throughout 2016, the Group TCC margin will increase to
approximately 38% and the AISC margin to approximately 25%.”
25 February 2016
N. Froneman
Chief Executive Officer
FINANCIAL AND OPERATING REVIEW OF THE GROUP
For the six months ended 31 December 2015 compared with the six months ended 31 December 2014
Operating performance
Gold produced during the six months ended 31 December 2015 was 6% lower than for the six months ended 31 December 2014, at 25,571kg (822,100oz), with
TCC of R339,017/kg (US$775/oz) and AISC of R411,795/kg (US$941/oz).
Gold produced during the December 2015 quarter of 12,799kg (411,500oz), was marginally higher than for the September 2015 quarter. Safety measures and
unit costs continued to improve. TCC decreased by 6% to R329,166/kg (US$720/oz) and AISC decreased by 4% to R402,797/kg (US$882/oz), resulting in a
TCC and an AISC margin of 35% and 20%, respectively. The AISC margin was double that achieved in the September 2015 quarter. The mines were largely
unaffected by labour unrest or safety stoppages during the December 2015 quarter.
The detailed quarterly salient features and development results are included on page 21 and 22 in this report.
Revenue
The average US dollar gold price was 10% lower at US$1,115/oz. This decline was more than offset by the continued depreciation in the Rand against the
dollar, which weakened 24% from an average of R10.96/US$ for the six months ended 31 December 2014, to an average of R13.61/US$ in the second half of
2015. Accordingly, the Rand gold price received was 11% higher at R487,736/kg. Revenue increased by 4% to R12,472 million (US$920 million) from
R11,952 million (US$1,093 million) for the six months ended 31 December 2014.
Operating costs
Group operating costs increased to R8,501 million (US$622 million) from R7,971 million (US$729 million). This was mostly due to annual wage increases
during 2015 and an effective 12.69% electricity tariff increase from 1 April 2015, partly offset by lower electricity consumption and cost saving
initiatives. Despite these increases, the operating costs for the period were only 7% higher than the operating costs for the six months ended
31 December 2014. The Group operating margin was similar at 32%. AISC increased to R411,795/kg from R376,687/kg, however, the AISC in dollar terms
decreased by 12% to US$941/oz, placing Sibanye well ahead of its peers. The AISC margin increased to 16% from 13%.
Operating profit
Operating profit at R3,971 million (US$298 million) was similar to that achieved for the six months ended 31 December 2014, driven by the higher gold
price, which offset the increase in costs and the lower production.
Capital expenditure
Capital expenditure decreased to R1,788 million (US$131 million) from R1,905 million (US$174 million). Ore reserve development (“ORD”) was some
R35 million higher at R1,187 million (US$87 million). Sustaining capital expenditure was R256 million lower due to the completion of several major
projects late in 2014, including the CIL tank upgrade at Driefontein, safety projects and, infrastructure and equipment upgrades. Project expenditure,
mainly at Burnstone together with the decline projects at Driefontein and Kloof, increased to R238 million (US$18 million) compared with project
expenditure of R133 million (US$11 million) for the six months ended 31 December 2014.
Amortisation and depreciation
A year-on-year increase of 15%, to R2,028 million (US$150 million) from R1,767 million (US$162 million) was mostly due to accelerated depreciation of
the Beatrix 2 shaft assets, of R65 million, and increased amortisation of the Beatrix West assets as a result of the reversal of R474 million
impairment late in 2014.
Investment income
Investment income increased to R140 million (US$10 million) due to interest earned on the loan to Rand Refinery, higher average cash balances during
the period and environmental rehabilitation obligation funds.
Finance expenses
Finance expenses increased by 24% or R59 million to R299 million (US$22 million), primarily due to a R29 million increase in the interest on the
Burnstone Debt, a R17 million increase in interest paid on the R4.5 billion Facilities and R10 million increase in the environmental rehabilitation
obligation accretion expense.
Share of results of associates
The gain from share of results of associates for the six months ended 31 December 2015 of R87 million (US$7 million) was primarily due to share of
gains of R86 million (US$6 million) relating to Sibanye’s 33.1% interest in Rand Refinery Proprietary Limited (“Rand Refinery”).
Share-based payments
Share-based payments decreased by 38% to R129 million (US$9 million) for the six months ended 31 December 2015. This was mainly due to the number of
performance shares that vested on 1 March 2015, with no significant new allocations during the six months ended 31 December 2015.
The share-based payment expense for the six months ended 31 December 2015 predominantly relates to R70 million (US$5 million) (31 December 2014:
R129 million (US$12 million)) of cash-settled share options (granted under the “Phantom Share Scheme”) and R59 million (US$4 million) (31 December
2014: R81 million (US$7 million)) of equity-settled share options (granted under the Sibanye and Gold Fields Limited Share Plans).
Loss and gain on financial instruments
The net loss on financial instruments for the six months ended 31 December 2015 was R255 million (US$20 million) compared with a gain for the six
months ended 31 December 2014 of R70 million (US$7 million). This consists of a fair value loss of R96 million (US$7 million) (31 December 2014: gain
of R51 million (US$5 million)) related to the Phantom Share Scheme options, a fair value gain of R4 million (31 December 2014: gain of R3 million) on
investments under the environmental rehabilitation obligation funds, and a loss on revised estimated cash flows of the Burnstone Debt of R163 million
(US$13 million) (31 December 2014: Rnil (US$nil). The gain on financial instruments for the six months ended 31 December 2014 also included a gain of
R16 million (US$2 million) relating to the financial guarantee liability.
Loss and gain on foreign exchange differences
The net loss on foreign exchange differences for the six months ended 31 December 2015 was R310 million (US$23 million) compared with a net loss for
the six months ended 31 December 2014 of R69 million (US$7 million). The net loss on foreign exchange differences predominantly relates to exchange
differences on the Burnstone Debt.
Non-recurring items
Impairment
Impairment was Rnil for the six months ended 31 December 2015. During the six months ended 31 December 2014 a decision was taken to impair the Python
processing plant at Kloof by R156 million (US$14 million). The Python plant was decommissioned in July 2014 due to process design flaws.
Reversal of impairment
Reversal of impairments was Rnil for the six months ended 31 December 2015. During the six months ended 30 June 2013, the Beatrix West Section was
impaired following a fire impacting its future commercial viability. During the second half of the year ended 31 December 2014 the Beatrix West section
underwent a restructuring process and subsequently returned to profitability. As a result a decision was taken to reverse the impairment by
R474 million (US$44 million).
Mining and income tax
Mining and income tax decreased from R494 million (US$45 million) to R383 million (US$30 million) for the six months ended 31 December 2015. Current
tax increased by R90 million to R535 million (US$41 million) due to an increase in taxable mining income for the period. Deferred tax increased from a
charge of R49 million (US$5 million) to a credit of R153 million (US$11 million). The deferred tax charge for the six months ended 31 December 2014 was
due to the impact of the reversal of the Beatrix West Section impairment partly offset by the Python plant impairment.
Cash flow analysis
Sibanye defines free cash flow as cash from operating activities before dividends, less additions to property, plant and equipment.
Free cash flow of R438 million (US$32 million) was higher than for the six months ended 31 December 2014. This was largely due to the R65 million
increase in cash generated by operations, R239 million increase in investment in working capital, R352 million decrease in royalties and taxation paid,
and R117 million decrease in capital expenditure.
Sibanye repaid R471 million (US$29 million) of debt during the period.
Dividend declaration
The Sibanye Board approved a final dividend, number 3, of 90 cents per share (ZAR) (gross) resulting in a total dividend of 100 cents per share (ZAR)
(gross) for the year ended 31 December 2015.
Sibanye‘s dividend policy is to return at least 25% to 35% of normalised earnings to shareholders and after due consideration of future requirements
the dividend may be increased beyond these levels. Normalised earnings are defined as: basic earnings excluding gains and losses on foreign exchange
differences and financial instruments, non-recurring items and share of results of equity-accounted investees. After due consideration of the Group
cash position and future requirements, the Board has increased the final dividend to 90 cents per share (ZAR).
The final dividend is subject to the Dividends Withholding Tax. 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 90 cents per ordinary share (ZAR) for shareholders exempt from the Dividends Tax;
- Dividend Withholding Tax of 15% will be applicable to this dividend;
- The net local dividend amount is 76.5000 cents (85% of 90 cents ZAR) per ordinary share (ZAR) for shareholders liable to pay the
Dividends Withholding Tax;
- Sibanye currently has 916,140,552 ordinary shares in issue;
- Sibanye’s income tax reference number is 9431 292 151; and
- Sibanye’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 3: 90 cents per share (ZAR)
- Last date to trade cum dividend: Friday, 11 March 2016
- Sterling and US dollar conversion date: Monday, 14 March 2016
- Shares commence trading ex-dividend: Monday, 14 March 2016
- Record date: Friday, 18 March 2016
- Payment of dividend: Tuesday, 22 March 2016
Please note that share certificates may not be dematerialised or rematerialised between Monday, 14 March 2016, and Friday, 18 March 2016, both dates
inclusive.
SALIENT FEATURES AND COST BENCHMARKS
Salient features and cost benchmarks for the six months ended 31 December 2015, 30 June 2015 and 31 December 2014
Total Driefontein Kloof Beatrix Cooke#
Under Under Under Under Under
Group -ground Surface -ground Surface -ground Surface -ground Surface -ground Surface
Tons milled/treated 000’ton Dec 2015 10,129 4,539 5,590 1,203 1,764 1,064 996 1,441 756 831 2,074
Jun 2015 9,732 4,045 5,687 1,209 1,596 915 1,002 1,282 840 639 2,249
Dec 2014 10,452 4,532 5,920 1,353 1,522 1,034 1,115 1,375 916 770 2,367
Yield g/t Dec 2015 2.52 5.13 0.41 6.69 0.60 6.44 0.62 3.72 0.32 3.62 0.19
Jun 2015 2.28 4.90 0.42 6.04 0.60 6.55 0.60 3.27 0.37 3.67 0.22
Dec 2014 2.61 5.53 0.37 6.38 0.47 7.93 0.57 3.70 0.39 4.10 0.21
Gold produced/sold kg Dec 2015 25,571 23,271 2,300 8,043 1,050 6,852 619 5,364 240 3,012 391
Jun 2015 22,204 19,838 2,366 7,302 955 5,996 601 4,193 308 2,347 502
Dec 2014 27,289 25,074 2,215 8,634 719 8,195 636 5,085 358 3,160 502
000’oz Dec 2015 822.1 748.2 73.9 258.6 33.7 220.3 19.9 172.5 7.7 96.8 12.6
Jun 2015 713.9 637.8 76.1 234.8 30.7 192.8 19.3 134.8 9.9 75.4 16.2
Dec 2014 877.4 806.2 71.2 277.6 23.1 263.5 20.5 163.5 11.5 101.6 16.1
Gold price received R/kg Dec 2015 487,736 487,078 488,583 488,276 486,747
Jun 2015 461,426 461,063 460,997 461,942 462,654
Dec 2014 437,979 438,490 437,969 437,571 437,329
US$/oz Dec 2015 1,115 1,113 1,117 1,116 1,112
Jun 2015 1,207 1,206 1,206 1,209 1,210
Dec 2014 1,243 1,244 1,243 1,242 1,241
Operating cost R/ton Dec 2015 839 1,714 129 1,953 165 2,181 160 1,167 134 1,719 81
Jun 2015 810 1,770 126 1,929 164 2,332 163 1,173 125 1,864 84
Dec 2014 763 1,601 121 1,688 169 2,096 171 1,125 79 1,634 82
Operating margin % Dec 2015 32 32 35 40 43 31 47 36 14 3 8
Jun 2015 23 22 34 31 41 23 42 22 27 (9) 17
Dec 2014 33 34 30 40 20 40 32 30 55 7 24
Total cash cost R/kg Dec 2015 339,017 300,319 337,692 326,481 465,971
Jun 2015 357,508 320,165 348,507 358,609 484,872
Dec 2014 298,520 279,066 274,567 303,656 398,334
US$/oz Dec 2015 775 686 772 746 1,065
Jun 2015 935 838 912 938 1,269
Dec 2014 847 792 779 862 1,130
All-in sustaining cost R/kg Dec 2015 411,795 370,043 416,905 389,097 523,244
Jun 2015 434,769 377,837 436,774 432,482 564,058
Dec 2014 376,687 355,223 359,676 370,733 448,252
US$/oz Dec 2015 941 846 953 889 1,196
Jun 2015 1,137 988 1,143 1,131 1,476
Dec 2014 1,069 1,008 1,021 1,052 1,272
All-in cost R/kg Dec 2015 421,548 371,572 425,177 389,097 527,329
Jun 2015 441,348 378,334 437,062 432,482 565,356
Dec 2014 382,550 355,223 359,676 372,460 466,357
US$/oz Dec 2015 963 849 972 889 1,205
Jun 2015 1,155 990 1,143 1,131 1,479
Dec 2014 1,086 1,008 1,021 1,057 1,323
All-in cost margin % Dec 2015 14 24 13 20 (8)
Jun 2015 4 18 5 6 (22)
Dec 2014 13 19 18 15 (7)
Total capital expenditure1 R’mil Dec 2015 1,787.9 579.1 598.7 300.7 154.8
Jun 2015 1,556.9 415.1 531.2 295.8 182.6
Dec 2014 1,905.1 631.0 679.6 311.9 200.3
US$’mil Dec 2015 131.4 43.1 43.9 21.8 11.2
Jun 2015 130.9 34.9 44.7 24.9 15.4
Dec 2014 174.5 57.7 62.1 28.5 18.5
The average exchange rates for the six months ended 31 December 2015, 30 June 2015 and, 31 December 2014 were R13.61/US$, R11.89/US$, and
R10.96/US$, respectively.
1 Total capital expenditure includes corporate and Burnstone project expenditure of R154.6 million (US$11.4 million), R132.2 million
(US$11.0 million) and R82.3 million (US$7.7 million) for the six months ended 31 December 2015, 30 June 2015 and 31 December 2014, respectively.
REVIEW OF OPERATIONS
Six months ended 31 December 2015 compared with the six months ended 31 December 2014
Underground operations
Driefontein
Gold production of 8,043kg (258,600oz) was 7% lower than for the comparable six months in 2014. Ore milled of 1,203,000 tons was 11% lower largely
due to seismicity which affected flexibility in a number of workplaces. Despite the reduced flexibility, the yield increased from 6.38g/t to 6.69g/t
due to a heightened focus on the quality of mining, which resulted in the average mine call factor (“MCF”) increasing from 85% to 90%.
As previously reported, a decrease in development was planned for 2015. Main development decreased by 14% to 8,087 metres and main on-reef development
decreased by 22% to 1,714 metres. However, average values increased by 2% to 1,377cm.g/t from 1,354cm.g/t year-on-year.
Operating costs increased by 3% to R2,349 million (US$171 million). This was mainly due to annual wage increases and above inflation increases
in electricity tariffs.
Operating profit increased by R72 million to R1,569 million (US$117 million). The operating margin was maintained at 40%.
Capital expenditure increased by 10% to R573 million (US$42 million) due to an increase in capitalised ORD. Capital expenditure during the six months
ended December 2015 was predominantly spent on stabilisation of the shaft barrel at Ya Rona shaft, the 38 level refrigeration and cooling plant at
Ya Rona shaft, safety upgrades and community development projects.
Kloof
Gold production decreased by 16% to 6,852kg (220,300oz), compared with the six months ended 31 December 2014, due to a number of factors including a
9% lower average MCF at 78% as well as a 2% decrease in the average mined grade. Despite the average MCF being lower year-on-year, the MCF for the
six months ended 31 December 2015 was an appreciable improvement on the first six months of the year, when the average MCF was 67%, with the outlook
for 2016 considerably better.
Despite a 5% decrease in square metres mined ore milled increased by 3% to 1,064,000 tons due to a higher stoping width and clearing of underground
accumulations.
Main development returned to more normal levels following the ramp-up at 8 shaft in 2014, decreasing by 12% to 8,577 metres. On-reef development
increased by 5% to 2,170 metres and the average development value increased by 21% to 1,879cm.g/t from 1,558cm.g/t.
Operating costs increased by 7% to R2,321 million (US$170 million), primarily due to the annual wage increases and above inflation increases in
electricity
tariffs.
Operating profit decreased by 28% to R1,028 million (US$77 million), with an operating margin of 31% compared with 40% for the previous comparable
period.
Capital expenditure decreased by 11% to R593 million (US$43 million). The majority of expenditure was on ORD, electrical and winder upgrades and the 4 shaft below infrastructure project
Beatrix
Gold production increased by 5% to 5,364kg (172,500oz) compared with the comparable six months in 2014. This increase was primarily due to a
5% increase in tons milled.
The increase in ore milled to 1,441,000 tons was due to an increase in volumes from mining unit 1, as 2014 was significantly impacted by safety related
stoppages. The average underground yield was 1% higher at 3.72g/t.
Main development increased across all the sections to 11,292 metres, an increase of 3%. On-reef development increased to 3,581 metres from
3,328 metres and the average main reef development value was consistent at 1,068cm.g/t.
Operating costs increased by 9% to R1,681 million (US$123 million) mainly due to the annual wage increase, the annual power increase and production
related increases in stores costs.
Operating profit increased by 39% to R937 million (US$71 million) and the operating margin increased to 36% from 30% year-on-year.
Capital expenditure decreased by 3% to R300 million (US$21 million). The majority of expenditure during 2015 was on ORD and infrastructure upgrades.
Cooke
Gold production decreased by 5% to 3,012kg (96,800oz) compared with the six months ended 31 December 2014, primarily due to lower yields. Yields
remained below plan at 3.62g/t, due to delays in extracting high grade pillars. Additional lower grade cubics replaced the higher grade pillars
resulting in an 8% increase in ore milled to 831,000 tons.
Main development decreased by 29% to 5,829 metres. Non-priority prospect development has been delayed until required. A seismic event in the shaft
pillar at Cooke 4 continues to negatively impact on flexibility and necessitated changes to the development layout.
Operating costs increased by 13% to R1,429 million (US$105 million) due to the increase in volumes mined and processed, annual wage increases and above
inflation increases in electricity tariffs.
Operating profit halved to R44 million (US$4 million) and the operating margin decreased to 3% from 7% in 2014.
Capital expenditure of R142 million (US$10 million) was mainly spent on ORD.
Surface operations
Driefontein
Higher grades and volumes processed from surface rock dump (“SRD”) material resulted in gold production increasing by 46% to 1,050kg (33,700oz).
Throughput increased by 16% to 1,764,000 tons following a decision to utilise spare capacity at 1 plant to process SRD material. The yield increased
to 0.60g/t from 0.47g/t due to newly identified higher grade SRD sources.
Operating costs increased by 13% to R292 million (US$21 million) due to the increase in volumes processed.
Operating profit increased to R219 million (US$16 million) from R62 million (US$6 million) and the operating margin more than double to 43%.
Capital expenditure decreased to R6 million (US$1 million) in 2015, compared with R112 million (US$10 million) spent for the comparable period in 2014.
This decrease was due to the completion of the CIL plant upgrade late in 2014. Capital for 2015 was predominantly spent on plant refurbishments and
upgrades.
Kloof
Gold production decreased by 3% to 619kg (19,900oz) due to an 11% decrease in throughput to 996,000 tons as a result of plant maintenance issues.
Operating costs decreased by 17% to R159 million (US$12 million) mainly due to the mothballing of the failed Python plant in the six months ended
31 December 2014, and a decrease in stores and ore transport costs.
The surface operations contributed R142 million (US$10 million), 56% more than the six months ended December 2014. The operating margin increased to
47% from 32%.
Capital expenditure decreased to R6 million (US$1 million) from R10 million (US$1 million). The majority of expenditure was on plant refurbishments
and upgrades
Beatrix
Gold production decreased 33% to 240kg (7,700oz) due to lower SRD grade and volume. SRD volumes were lower due to the increase in underground volumes
processed, which limited available capacity. Surface throughput decreased by 17% to 756,000 tons and the yield decreased from 0.39g/t to 0.32g/t.
Operating costs increased to R101 million (US$7 million) mainly due to the fixed nature of costs.
Operating profit decreased to R16 million (US$1 million) from R88 million (US$8 million) year-on-year.
Capital expenditure was minimal at R1 million.
Cooke
Gold production decreased by 22% to 391kg (12,600oz) for the six months ended 30 December 2015, due to a 10% decrease in yields and lower throughput,
which decreased by 12% to 2,074,000 tons. Action plans are in place to improve volumes.
Operating costs decreased by 13% to R168 million (US$12 million) due to improved operating efficiencies and the lower throughput.
The surface operations contributed R15 million (US$1 million) to operating profit. The operating margin decreased from 24% to 8% as a result of the
decrease in volumes and grade.
Capital expenditure of R13 million (US$1 million) was largely spent on plant refurbishments and upgrades.
CONDENSED CONSOLIDATED 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 December December June December December June December December December
2014 2015 2014 2015 2015 Notes 2015 2014 2014 2015 2014
2,013.0 1,781.8 1,092.7 861.7 920.1 Revenue 12,471.9 10,245.5 11,952.0 22,717.4 21,780.5
(1,322.7) (1,284.8) (729.0) (662.7) (622.1) Operating costs (8,500.9) (7,879.5) (7,971.0) (16,380.4) (14,311.4)
690.3 497.0 363.7 199.0 298.0 Operating profit 3,971.0 2,366.0 3,981.0 6,337.0 7,469.1
(300.8) (285.2) (161.5) (135.3) (149.9) Amortisation and depreciation (2,028.0) (1,608.6) (1,766.5) (3,636.6) (3,254.7)
389.5 211.8 202.2 63.7 148.1 Net operating profit 1,943.0 757.4 2,214.5 2,700.4 4,214.4
16.9 20.2 8.6 9.8 10.4 Investment income 140.1 116.9 94.5 257.0 183.2
(37.0) (44.1) (22.0) (22.1) (22.0) Finance expenses (298.9) (262.9) (240.1) (561.8) (400.0)
(8.7) (6.1) (5.9) (5.3) (0.8) Net other costs (15.5) (63.1) (64.2) (78.6) (94.0)
(1.4) (1.9) (1.4) (1.1) (0.8) Exploration and feasibility costs (10.7) (12.9) (15.1) (23.6) (15.1)
(43.5) 9.1 (29.5) 2.4 6.7 Share of results of associates after taxation 87.2 28.8 (321.6) 116.0 (470.7)
(38.6) (21.5) (19.1) (12.2) (9.3) Share-based payments (129.4) (145.0) (209.7) (274.4) (417.9)
(10.0) (18.1) 6.6 2.1 (20.2) (Loss)/gain on financial instruments (254.5) 25.0 70.1 (229.5) (107.7)
(5.9) (27.3) (6.5) (4.2) (23.1) (Loss)/gain on foreign exchange differences (309.6) (49.8) (68.5) (359.4) (63.3)
261.3 122.1 133.0 33.1 89.0 Profit before non-recurring items 1,151.7 394.4 1,459.9 1,546.1 2,828.9
0.9 4.6 0.9 1.2 3.4 Profit on disposal of property, plant and equipment 44.5 14.2 9.3 58.7 9.5
Net loss on derecognition of financial guarantee
- (13.3) - (13.3) - asset and liability 2 - (158.3) - (158.3) -
(25.4) - (14.1) - - Impairment - - (155.5) - (275.1)
43.8 - 43.8 - - Reversal of impairment - - 474.1 - 474.1
(14.8) (8.2) (4.9) (2.6) (5.6) Restructuring costs (73.6) (31.2) (54.3) (104.8) (160.3)
(10.3) (2.0) (2.7) - (2.0) Transaction costs (25.7) - (30.1) (25.7) (111.6)
255.5 103.2 156.0 18.4 84.8 Profit before royalties and tax 1,096.9 219.1 1,703.4 1,316.0 2,765.5
(39.8) (31.4) (21.5) (11.7) (19.7) Royalties (261.2) (139.4) (235.3) (400.6) (430.5)
215.7 71.8 134.5 6.7 65.1 Profit before tax 835.7 79.7 1,468.1 915.4 2,335.0
(76.5) (29.6) (45.2) 0.4 (30.0) Mining and income tax (382.5) 5.3 (493.9) (377.2) (828.1)
(81.3) (54.6) (40.7) (13.6) (41.0) - Current tax (535.0) (161.7) (445.2) (696.7) (879.2)
4.8 25.0 (4.5) 14.0 11.0 - Deferred tax 152.5 167.0 (48.7) 319.5 51.1
139.2 42.2 89.3 7.1 35.1 Profit for the period 453.2 85.0 974.2 538.2 1,506.9
Profit/(loss) for the period attributable to:
143.3 56.2 93.4 15.1 41.1 - Owners of Sibanye Gold 537.1 179.8 1,018.8 716.9 1,551.5
(4.1) (14.0) (4.1) (8.0) (6.0) - Non-controlling interests (83.9) (94.8) (44.6) (178.7) (44.6)
Earnings per ordinary share (cents)
17 6 10 2 4 Basic earnings per share 59 20 113 79 186
17 6 1 2 4 Diluted earnings per share 58 20 111 78 182
835,936 912,038 898,520 909,295 914,771 Weighted average number of shares (‘000) 914,771 909,295 898,520 912,038 835,936
854,727 916,141 914,809 913,536 916,141 Diluted weighted average number of shares (‘000) 916,141 913,536 914,809 916,141 854,727
Headline earnings per ordinary share (cents) 3
16 6 8 2 4 Headline earnings per share 55 19 85 74 170
15 6 8 2 4 Diluted headline earnings per share 55 19 84 74 166
10.82 12.75 10.96 11.89 13.61 Average R/US$ rate
The condensed consolidated financial statements for the year ended 31 December 2015 have been prepared by Sibanye Gold Limited’s group financial
reporting team headed by Alicia Brink. This process was supervised by the group’s Chief Financial Officer, Charl Keyter and approved by the board of
Sibanye Gold Limited.
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 December December June December December June December December December
2014 2015 2014 2015 2015 Notes 2015 2014 2014 2015 2014
139.2 42.2 89.3 7.1 35.1 Profit for the period 453.2 85.0 974.2 538.2 1,506.9
(148.4) (329.3) (117.5) (64.1) (265.2) Other comprehensive income, net of tax - - - - -
(148.4) (329.3) (117.5) (64.1) (265.2) Currency translation adjustments1 - - - - -
(9.2) (287.1) (28.2) (57.0) (230.1) Total comprehensive income 453.2 85.0 974.2 538.2 1,506.9
Total comprehensive income attributable to:
(1.5) (268.9) (20.5) (47.8) (221.1) - Owners of Sibanye 537.1 179.8 1,018.8 716.9 1,551.5
(7.7) (18.2) (7.7) (9.2) (9.0) - Non-controlling interests (83.9) (94.8) (44.6) (178.7) (44.6)
0.82 12.75 10.96 11.89 13.61 Average R/US$ rate
1 The currency translation adjustments arise on the convenience translation of the South African Rand amount to the United States Dollar. These gains
and losses will never be reclassified to profit and loss.
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 2014 June 2015 December 2015 Notes December 2015 June 2014 December 2014
2,247.5 2,120.0 1,641.9 Non-current assets 25,515.0 25,800.2 25,981.4
1,964.0 1,861.1 1,424.2 Property, plant and equipment 22,132.4 22,648.6 22,704.0
63.7 60.5 47.4 Goodwill 736.7 736.7 736.7
6.0 8.1 10.8 Equity accounted investments 167.5 98.2 69.4
0.1 0.1 0.1 Investments 1.3 1.4 1.4
189.7 186.0 155.3 Environmental rehabilitation obligation funds1 2,413.9 2,263.9 2,192.8
19.5 - - Financial guarantee asset 2 - - 225.5
4.5 4.2 4.1 Deferred tax 63.2 51.4 51.6
167.8 187.7 177.0 Current assets 2,750.7 2,284.8 1,940.5
28.3 31.8 26.1 Inventories 405.9 386.5 327.7
85.9 85.7 104.7 Trade and other receivables 1,627.4 1,043.8 992.8
4.9 - - Current portion of financial guarantee asset 2 - - 57.1
48.7 70.2 46.2 Cash and cash equivalents 717.4 854.5 562.9
2,415.3 2,307.7 1,818.9 Total assets 28,265.7 28,085.0 27,921.9
1,296.3 1,196.7 964.3 Shareholders’ equity 14,984.8 14,563.7 14,985.9
810.2 785.7 510.5 Non-current liabilities 7,933.6 9,561.5 9,365.4
334.8 304.2 229.2 Deferred tax 3,561.4 3,702.1 3,869.3
226.3 260.8 116.4 Borrowings 5 1,808.3 3,174.0 2,615.8
215.1 212.3 155.1 Environmental rehabilitation obligation 6 2,411.0 2,583.1 2,486.8
1.3 1.2 1.0 Post-retirement healthcare obligation 16.3 15.0 15.1
32.7 7.2 8.8 Share-based payment obligations 136.6 87.3 378.4
308.8 325.3 344.1 Current liabilities 5,347.3 3,959.8 3,570.6
234.8 235.1 177.6 Trade and other payables 2,759.4 2,861.7 2,714.6
17.0 - - Financial guarantee liability 2 - - 197.0
7.3 14.3 8.3 Taxation and royalties payable 129.6 174.3 84.0
47.9 44.6 128.4 Current portion of borrowings 5 1,995.3 542.3 554.2
1.8 31.3 29.8 Current portion of share-based payment obligations 63.0 381.5 20.8
2,415.3 2,307.7 1,818.9 Total equity and liabilities 28,265.7 28,085.0 27,921.9
130.3 136.8 87.6 Net debt2 1,361.9 1,664.8 1,506.0
11.56 12.17 15.54 Closing R/US$ rate
1 The environmental rehabilitation obligation funds continue to be stated at fair value based on quoted market values and classified as level 1
within the fair value hierarchy.
2 Net debt represents borrowings and bank overdraft less cash and cash equivalents. Borrowings are only those borrowings that have recourse to
Sibanye and therefore exclude the Burnstone Debt. Net debt excludes Burnstone cash and cash equivalents.
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 Reserves loss interest equity equity interest loss Reserves capital
1,955.3 678.8 (1,722.9) 0.2 911.4 Balance at 31 December 2013 (Audited) 9,423.4 2.2 (10,467.9) 2,643.3 17,245.8
- (144.8) 143.3 (7.7) (9.2) Total comprehensive income for the period 1,506.9 (44.6) 1,551.5 - -
- - 143.3 (4.1) 139.2 Profit for the period 1,506.9 (44.6) 1,551.5 - -
- (144.8) - (3.6) (148.4) Other comprehensive income net of tax - - - - -
- - (93.6) - (93.6) Dividends paid (1,005.2) - (1,005.2) - -
- 16.2 - - 16.2 Share-based payments 175.8 - - 175.8 -
433.3 - - - 433.3 Shares issued 4,488.8 - - - 4,488.8
- - - 38.2 38.2 Acquisition of subsidiary with non-controlling interest 396.2 396.2 - - -
- - 2.2 (2.2) - Transactions with non-controlling interest - (24.2) 24.2 - -
2,388.6 550.2 (1,671.0) 28.5 1,296.3 Balance at 31 December 2014 (Audited) 14,985.9 329.6 (9,897.4) 2,819.1 21,734.6
- (325.1) 56.2 (18.2) (287.1) Total comprehensive income for the period 538.2 (178.7) 716.9 - -
- - 56.2 (14.0) 42.2 Profit for the period 538.2 (178.7) 716.9 - -
- (325.1) - (4.2) (329.3 Other comprehensive income net of tax - - - - -
- - (54.2) - (54.2) Dividends paid (658.4) - (658.4) - -
- 9.3 - - 9.3 Share-based payments 119.1 - - 119.1 -
- - 3.2 (3.2) - Transactions with non-controlling interest - (41.1) 41.1 - -
2,388.6 234.4 (1,665.8) 7.1 964.3 Balance at 31 December 2015 (Reviewed) 14,984.8 109.8 (9,797.8) 2,938.2 21,734.6
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 December December June December December June December December December
2014 2015 2014 2015 2015 2015 2014 2014 2015 2014
Cash flows from operating activities
654.5 480.8 348.4 189.6 291.2 Cash generated by operations 3,876.6 2,253.8 3,812.0 6,130.4 7,081.4
(0.2) - (0.2) (0.1) 0.1 Post-retirement healthcare payments 0.6 (0.7) (1.9) (0.1) (2.4)
(15.4) (3.3) (9.5) (0.5) (2.8) Cash-settled share-based payments paid (35.8) (6.4) (103.1) (42.2) (166.6)
19.8 (52.4) (43.9) 3.1 (55.5) Change in working capital (705.3) 37.3 (465.9) (668.0) 214.5
658.7 425.1 294.8 192.1 233.0 Cash generated from operating activities 3,136.1 2,284.0 3,241.1 5,420.1 7,126.9
5.0 (4.4) 2.5 (4.4) - Net (guarantee release fee paid)/guarantee fee received - (51.8) 26.4 (51.8) 53.6
6.3 9.2 2.8 3.8 5.4 Interest received 72.2 45.1 31.0 117.3 68.5
(17.9) (20.4) (9.6) (10.0) (10.4) Interest paid (141.7) (118.5) (105.4) (260.2) (194.0)
(60.1) (31.0) (36.4) (9.0) (22.0) Royalties paid (288.9) (106.5) (397.1) (395.4) (650.1)
(124.5) (51.5) (72.8) (8.8) (42.7) Tax paid (552.0) (104.3) (795.3) (656.3) (1,347.1)
(93.6) (54.2) (41.6) (47.6) (6.6) Dividends paid (91.3) (567.1) (450.0) (658.4) (1,005.2)
373.9 272.8 139.7 116.1 156.7 Net cash from operating activities 2,134.4 1,380.9 1,550.7 3,515.3 4,052.6
Cash flows from investing activities
(300.4) (262.3) (174.4) (130.9) (131.4) Additions to property, plant and equipment (1,787.9) (1,556.9) (1,905.1) (3,344.8) (3,250.8)
2.1 5.1 2.1 1.5 3.6 Proceeds on disposal of property, plant and equipment 47.2 17.9 22.4 65.1 22.6
(7.4) (6.1) (7.4) - (6.1) Contributions to funds and payment of environmental
rehabilitation obligation (77.8) (0.3) (80.2) (78.1) (80.2)
(39.7) - - - - Investment in subsidiary - - - - (415.3)
(22.8) - (7.2) - - Loans granted to subsidiary prior to acquisition - - (77.4) - (238.6)
3.7 - 0.1 - - Cash acquired on acquisition of subsidiaries - - 0.7 - 38.1
(33.3) (0.2) (33.3) - (0.2) Loan advanced to equity-accounted investee (3.0) - (384.6) (3.0) (384.6)
- 1.4 - - 1.4 Loan repayment from equity-accounted investee 20.9 - - 20.9 -
(397.8) (262.1) (220.1) (129.4) (132.7) Net cash used in investing activities (1,800.6) (1,539.3) (2,424.2) (3,339.9) (4,308.8)
Cash flows from financing activities
(212.3) (122.0) (127.5) (92.7) (29.3) Loans repaid (470.9) (1,102.0) (1,390.9) (1,572.9) (2,296.9)
150.1 130.5 150.1 130.5 - Loans raised - 1,552.0 1,623.6 1,552.0 1,623.6
(62.2) 8.5 22.6 37.8 (29.3) Net cash (used in)/from financing activities (470.9) 450.0 232.7 (20.9) (673.3)
(86.1) 19.2 (57.8) 24.5 (5.3) Net (decrease)/increase in cash and cash equivalent (137.1) 291.6 (640.8) 154.5 (929.5)
(9.5) (21.7) (7.3) (3.0) (18.7) Effect of exchange rate fluctuations on cash held - - - - -
144.3 48.7 113.8 48.7 70.2 Cash and cash equivalents at beginning of period 854.5 562.9 1,203.7 562.9 1,492.4
48.7 46.2 48.7 70.2 46.2 Cash and cash equivalents at end of period 717.4 854.5 562.9 717.4 562.9
10.82 12.75 10.96 11.89 13.61 Average R/US$ rate
11.56 15.54 11.56 12.17 15.54 Closing R/US$ rate
NOTES TO THE CONDENSED CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS
1. Basis of accounting and preparation
The condensed consolidated preliminary financial statements for the six months and the year ended 31 December 2015 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 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 (“the Group”)
for the year ended 31 December 2014.
The condensed consolidated income statement and statements of other comprehensive income and cash flows for the six months ended 31 December 2014 were
not reviewed and were prepared by subtracting the reviewed condensed consolidated financial statements for the period ended 30 June 2014 from the
audited complete financial statements for the year ended 31 December 2014. The condensed consolidated income statement and statements of other
comprehensive income and cash flows for the six months ended 31 December 2015 have not been reviewed and were prepared by subtracting the reviewed
condensed consolidated financial statements for the six months ended 30 June 2015 from the reviewed condensed consolidated preliminary financial
statements for the year ended 31 December 2015.
The translation of the financial statements into US Dollars 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.
2. Financial guarantee
As of 18 February 2013, the Gold Fields Limited (“Gold Fields”) group no longer guaranteed any debt of Sibanye, similarly Sibanye was released from all
of its obligations as guarantor under Gold Fields group debt, except, Sibanye remained a joint 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.
An indemnity agreement was entered into between Gold Fields, Sibanye, Gold Fields Operations Limited and Gold Fields Holding Company (BVI) Limited
(collectively “the Guarantors”), pursuant to which the Guarantors (other than Sibanye) held Sibanye harmless from and against any and all liabilities
and expenses which may be incurred by Sibanye under or in connection with the Notes, including any payment obligations by Sibanye to the note holders
or the trustee of the Notes pursuant to the guarantee of the Notes.
The Group initially recognised the financial guarantee liability at fair value of the guarantee in connection with the Notes and subsequently amortised
over the remaining period of the Notes.
As of 18 February 2013, the Group raised a receivable under the financial guarantee asset for the future guarantee fee income that Orogen is obliged to
pay bi-annually to Sibanye until it has been released as a guarantor under the Notes.
During March 2015 Gold Fields approached the note holders through a consent solicitation process to release Sibanye of its obligations as a guarantor
under the Notes. On 22 April 2015 the note holders approved the various resolutions to release Sibanye as a guarantor. The release became effective on
24 April 2015 when all the conditions to the extraordinary resolution were met. As part of the agreement Sibanye paid a guarantee release fee of
US$5 million to Orogen, and derecognised the financial guarantee asset and liability.
Net loss on derecognition of the financial guarantee asset and liability
Figures are in South African Rand millions unless otherwise stated
Six month periods ended Year ended
Reviewed Reviewed Audited
December 2015 June 2015 December 2014 December 2015 December 2014
Loss on derecognition of financial guarantee asset - (293.8) - (293.8) -
Gain on derecognition of financial guarantee liability - 196.9 - 196.9 -
Guarantee release fee - (61.4) - (61.4) -
Net loss on derecognition of financial guarantee asset and liability - (158.3) - (158.3) -
Financial guarantee asset
Figures are in South African Rand millions unless otherwise stated
Six month periods ended Year ended
Reviewed Reviewed Audited
December 2015 June 2015 December 2014 December 2015 December 2014
Balance at beginning of the period - 282.6 278.1 282.6 290.2
Guarantee fee received - (9.6) (26.4) (9.6) (53.6)
Interest earned - 4.9 7.3 4.9 15.0
Foreign exchange gain - 15.9 23.6 15.9 31.0
Loss on derecognition of financial guarantee asset - (293.8) - (293.8) -
Balance at end of the period - - 282.6 - 282.6
Reconciliation of the non-current and current portion of the guarantee asset:
Financial guarantee asset - - 282.6 - 282.6
Current portion of financial guarantee asset - - (57.1) - (57.1)
Long-term potion of financial guarantee asset - - 225.5 - 225.5
Financial guarantee liability
Figures are in South African Rand millions unless otherwise stated
Six month periods ended Year ended
Reviewed Reviewed Audited
December 2015 June 2015 December 2014 December 2015 December 2014
Balance at beginning of the period - 197.0 195.7 197.0 206.6
Amortisation of guarantee liability - (11.7) (16.0) (11.7) (31.8)
Foreign exchange loss - 11.6 17.3 11.6 22.2
Gain on derecognition of financial guarantee liability - (196.9) - (196.9) -
Balance at end of the period - - 197.0 - 197.0
3. Reconciliation of headline earnings with profit for the period
Figures are in South African Rand millions unless otherwise stated
Six month periods ended Year ended
Reviewed Reviewed Audited
December 2015 June 2015 December 2014 December 2015 December 2014
Profit attributable to owners of Sibanye 537.1 179.8 1,018.8 716.9 1,551.5
Profit on disposal of property, plant and equipment (44.5) (14.2) (9.3) (58.7) (9.5)
Impairment - - 155.5 - 275.1
Reversal of impairment - - (474.1) - (474.1)
Tax effect of re-measurement items 12.4 4.0 74.4 16.4 74.5
Headline earnings 505.0 169.6 765.3 674.6 1,417.5
4. Investment in Rand Refinery Proprietary Limited
Sibanye has a 33.1% interest in Rand Refinery Proprietary Limited (“Rand Refinery”) which is accounted for using the equity method.
As disclosed in Sibanye’s financial statements for the year ended 31 December 2014 in April 2013, Rand Refinery implemented a new Enterprise Resource Planning system.
An imbalance was detected between physical gold and silver on hand (“physical inventory”) and what Rand Refinery owed its depositors and bullion bankers (“ownership”)
per the metallurgical trial balance.
Rand Refinery’s investigations revealed that the shortfall could have been attributed to a number of factors. Various internal projects, campaigns and external reviews
were performed to reduce the risk of recurring.
The carrying value of Rand Refinery remains an area of estimation and uncertainty until the root cause of the imbalance is determined.
The equity-accounted investment in Rand Refinery movement for the period is as follows:
Figures are in South African Rand millions unless otherwise stated
Six month periods ended Year ended
Reviewed Reviewed Audited
December 2015 June 2015 December 2014 December 2015 December 2014
Balance at beginning of the period 83.6 55.1 - 55.1 270.1
Share of results of Rand Refinery after taxation 86.0 28.5 (329.5) 114.5 (480.0)
Impairment - - - - (119.6)
Loan (repaid by)/advanced to Rand Refinery (20.9) - 384.6 (20.9) 384.6
Balance at end of the period 148.7 83.6 55.1 148.7 55.1
5. Borrowings
Figures are in South African Rand millions unless otherwise stated
Six month periods ended Year ended
Reviewed Reviewed Audited
December 2015 June 2015 December 2014 December 2015 December 2014
Balance at beginning of the period 3,716.3 3,170.0 1,820.6 3,170.0 1,990.9
Borrowings acquired on acquisition of subsidiaries - - 1,007.6 - 1,743.8
Loans raised - 1,552.0 1,623.6 1,552.0 1,623.6
- R4.5 billion Facilities - 1,000.0 884.6 1,000.0 884.6
- Other uncommitted facilities - 552.0 739.0 552.0 739.0
Loans paid (470.9) (1,102.0) (1,390.9) (1,572.9) (2,296.9)
- R4.5 billion Facilities (470.9) (550.0) (650.0) (1,020.9) (900.0)
- Other uncommitted facilities - (552.0) (739.0) (552.0) (739.0)
- Burnstone Debt - - (1.9) - (1.9)
- Cooke borrowings - - - - (616.0)
- Wits Gold borrowings - - - - (40.0)
Franco-Nevada settlement (non-cash) (20.2) (14.4) (22.0) (34.6) (26.2)
Unwinding of loans recognised at amortised cost 55.1 47.2 43.3 102.3 43.3
Loss on revised estimated cash flows 162.5 - - 162.5 -
Translation adjustment 360.8 63.5 87.8 424.3 91.5
Balance at end of the period 3,803.6 3,716.3 3,170.0 3,803.6 3,170.0
Borrowings consist of:
- R4.5 billion Facilities 1,961.6 2,431.2 1,979.5 1,961.6 1,979.5
- Franco-Nevada liability 33.7 44.3 56.1 33.7 56.1
- Burnstone Debt 1,808.3 1,240.8 1,134.4 1,808.3 1,134.4
Borrowings 3,803.6 3,716.3 3,170.0 3,803.6 3,170.0
Current portion of borrowings (1,995.3) (542.3) (554.2) (1,995.3) (554.2)
Non-current borrowings 1,808.3 3,174.0 2,615.8 1,808.3 2,615.8
On 24 August 2015 Sibanye entered into a US$300 million syndicated revolving credit facility agreement. Subsequent to year end the facility increased
to US$350 million. The purpose of the facility was to finance ongoing capital expenditure, working capital and general corporate expenditure
requirements which may include the financing of future acquisitions of business combinations.
On 5 October 2015 Sibanye entered into a US$300 million acquisition facility agreement with HSBC Bank plc as sole arranger for the purpose of providing
funding, if required for the Aquarius Platinum Limited (“Aquarius”) acquisition (the “Bridge Facility”). The Bridge Facility can only be drawn on
completion of the Aquarius acquisition. Subsequent to year end the Bridge Facility was reduced to US$150 million.
6. Environmental rehabilitation obligation
Figures are in South African Rand millions unless otherwise stated
Six month periods ended Year ended
Reviewed Reviewed Audited
December 2015 June 2015 December 2014 December 2015 December 2014
Balance at beginning of the period 2,583.1 2,486.8 2,386.2 2,486.8 1,660.7
Interest charge 101.3 96.6 90.8 197.9 161.5
Payment of environmental rehabilitation obligation - (0.3) (10.9) (0.3) (10.9)
Change in estimates1 (273.4) - 20.7 (273.4) 131.5
Environmental rehabilitation obligation assumed on acquisition of subsidiaries - - - - 544.0
Balance at end of the period 2,411.0 2,583.1 2,486.8 2,411.0 2,486.8
1 Changes in estimates are defined as changes in reserves and corresponding change in life of mine, changes in discount rates, and changes in laws and
regulations governing environmental matters. In 2014, the environmental rehabilitation obligation acquired was calculated based on the weighted
average cost of capital in terms of IFRS 3 for acquisition purposes. Subsequent to initial recognition the provision was recalculated based on the
risk free rate of interest in terms of IAS 37.
7. 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 2015, other than those disclosed below:
Final dividend declared
On 24 February 2016 a final dividend in respect of the six months ended 31 December 2015 of 90 cents per share (ZAR) was approved by the Board,
resulting in a total dividend of 100 cents per share (ZAR) for the year ended 31 December 2015. This dividend is not reflected in these financial
statements. The final dividend will be subject to Dividend Withholding Tax.
The Rustenburg Operations acquisition
On 9 September 2015 Sibanye announced that it entered into written agreements with Rustenburg Platinum Mines Limited (“RPM”), a wholly owned subsidiary
of Anglo American Platinum Limited to acquire the Bathopele, Siphumelele (including Khomanani), and Thembelani (including Khuseleka) mining operations,
two concentrating plants, an on-site chrome recovery plant, the Western Limb Tailings Retreatment Plant, associated surface infrastructure and related
assets and liabilities on a going concern basis (the “Rustenburg Operations”) (the “Rustenburg Operations Transaction”).
The purchase consideration comprises an upfront payment of R1.5 billion in cash or shares at the closing of the Rustenburg Operation Transaction
(“Closing”) and a deferred payment calculated as being equal to 35% of the distributable free cash flow generated by the Rustenburg Operations over a
six year period from the later of Closing or 1 January 2017 (“Deferred Payment”), subject to a minimum payment of R3.0 billion. In addition to the
Deferred Payment, which allows for a favourably extended payment period; should, the Rustenburg Operations generate negative distributable free cash
flows in either 2016, 2017 or 2018, RPM will be required to pay up to R267 million per annum to ensure that the free cash flow for the relevant year is
equal to zero.
On 18 January 2016 at the shareholders meeting of Sibanye, the Sibanye shareholders approved the proposed Rustenburg Operations Transaction by voting
in favour of the various resolutions to give effect to the Rustenburg Operations Transaction.
The Rustenburg Operations Transaction is still subject to the fulfilment of the following conditions precedent and is likely to be concluded during the
second half of 2016:
- the approval on or before 30 June 2017 of the Rustenburg Operations Transaction by the South African Competition Authorities; and
- the granting on or before 30 June 2017 of consent in terms of section 11 of the Mineral and Petroleum Resources Development Act for the sale of the
mining right and prospecting right pursuant to the Rustenburg Operations Transaction.
Aquarius acquisition
On 6 October 2015, Sibanye announced a cash offer of US$0.195 per share for the entire issued share capital of Aquarius (the “Aquarius Transaction”),
valuing Aquarius at US$294 million. On 18 January 2016 at the special general meeting of Aquarius, the requisite majority of Aquarius shareholders
approved the transaction, whereby Sibanye will acquire all of the shares of Aquarius. The implementation of the Aquarius Transaction remains subject to
final conditions precedent, including primarily, the approval of the Aquarius Transaction by the South African Competition Authorities and is likely to
be concluded before the end of April 2016.
Carrying value of assets and liabilities of Aquarius at 31 December 2015
The following table summarises the carrying value of assets and liabilities of Aquarius at 31 December 2015 and is provided for information purpose
only. The assets and liabilities have been extracted from the unaudited financial results for the six months ended 31 December 2015 and translated
using the rate at 31 December 2015 of R15.54/US$.
Figures are in South African Rand millions unless otherwise stated
December 2015
Property, plant and equipment 2,210.5
Investments in joint venture entities 1,477.1
Other non-current assets 402.8
Inventories 148.8
Trade and other receivables 282.2
Cash and cash equivalents 655.3
Environmental rehabilitation obligation (744.1)
Other non-current liabilities (75.2)
Trade and other payables (479.8)
Other current liabilities (80.0)
Carrying value of assets and liabilities 3,797.6
Acquisition related cost
The Group incurred acquisition related cost of R16.2 million on advisory and legal fees. These costs are recognised as transaction cost in profit or
loss.
8. Liquidity
The Group’s current liabilities exceeded its current assets by R2,596.6 million as at 31 December 2015 (30 June 2015: R1,675.0 million and 31 December
2014: R1,630.1 million). Current liabilities at 31 December 2015 includes the current portion of borrowings of R1,995.3 million which is the instalment
of R250 million due and payable in June 2016 and the final settlement due and payable in December 2016.
Sibanye generated cash from operating activities of R3,515.3 million for the year ended 31 December 2015. The Group has committed unutilised debt
facilities of R6.2 billion at 31 December 2015.
The Directors believe that the cash-generated by its operations and the remaining balance of the Group’s revolving credit facility will enable the
Group to continue to meet its obligations as they fall due.
9. Auditors Review
The condensed consolidated preliminary financial statements of Sibanye for the year ended 31 December 2015 as set out on pages 8 to 14 and
pages 17 to 18 have been reviewed by the Company’s auditor, KPMG Inc., on which an unmodified review conclusion was expressed. A copy of their review
report is available for inspection at the Company’s registered office 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.
SEGMENT REPORTING
SEGMENT FINANCIAL RESULTS
Figures are in millions unless otherwise stated
United States Dollars For the six months ended South African Rand
31 December 2015
Corporate Cooke Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Cooke Corporate
- 122.4 202.9 269.0 325.8 920.1 Revenue 12,471.9 4,429.0 3,650.2 2,736.3 1,656.4 -
- 109.3 194.4 247.1 288.2 839.0 Underground 11,358.6 3,917.8 3,349.1 2,618.7 1,473.0 -
- 13.1 8.5 21.9 37.6 81.1 Surface 1,113.3 511.2 301.1 117.6 183.4 -
- (117.4) (130.7) (181.5) (192.5) (622.1) Operating costs (8,500.9) (2,641.2) (2,479.9) (1,782.6) (1,597.2) -
- (105.3) (123.4) (169.9) (171.1) (569.7) Underground (7,780.5) (2,349.3) (2,321.0) (1,681.3) (1,428.9) -
- (12.1) (7.3) (11.6) (21.4) (52.4) Surface (720.4) (291.9) (158.9) (101.3) (168.3) -
- 5.0 72.2 87.5 133.3 298.0 Operating profit 3,971.0 1,787.8 1,170.3 953.7 59.2 -
- 4.0 71.0 77.2 117.1 269.3 Underground 3,578.1 1,568.5 1,028.1 937.4 44.1 -
- 1.0 1.2 10.3 16.2 28.7 Surface 392.9 219.3 142.2 16.3 15.1 -
(0.7) (29.0) (35.0) (39.8) (45.4) (149.9) Amortisation and depreciation (2,028.0) (617.5) (543.8) (464.6) (392.3) (9.8)
(0.7) (24.0) 37.2 47.7 87.9 148.1 Net operating profit 1,943.0 1,170.3 626.5 489.1 (333.1) (9.8)
2.9 0.9 1.5 2.1 3.0 10.4 Investment income 140.1 39.9 27.7 19.8 13.3 39.4
(7.8) (0.5) (2.3) (6.0) (5.4) (22.0) Finance expenses (298.9) (73.8) (80.2) (31.6) (10.1) (103.2)
(28.8) (0.7) (2.8) (2.8) (3.2) (38.3) Net other costs (492.4) (42.5) (37.2) (38.0) (10.1) (364.6)
(6.5) - (0.8) (0.9) (1.1) (9.3) Share-based payments (129.4) (16.0) (12.0) (11.3) - (90.1)
(0.1) - (0.1) (0.1) (0.5) (0.8) Exploration costs (10.7) (7.3) (0.6) (0.4) (0.1) (2.3)
(1.1) (1.1) (0.6) (0.1) (0.4) (3.3) Non-recurring items (54.8) (4.3) (1.8) (6.8) (14.9) (27.0)
- (0.6) (5.0) (5.3) (8.8) (19.7) Royalties (261.2) (117.9) (69.7) (65.4) (8.2) -
(1.3) - (11.4) (7.3) (21.0) (41.0) Current tax (535.0) (278.3) (94.2) (145.7) - (16.8)
1.6 4.5 1.7 1.5 1.7 11.0 Deferred tax 152.5 23.8 17.8 21.5 60.1 29.3
(41.8) (21.5) 17.4 28.8 52.2 35.1 Profit for the period 453.2 693.9 376.3 231.2 (303.1) (545.1)
Profit attributable to:
(41.8) (15.5) 17.4 28.8 52.2 41.1 Owners of Sibanye 537.1 693.9 376.3 231.2 (219.2) (545.1)
- (6.0) - - - (6.0) Non-controlling interests (83.9) - - - (83.9) -
Capital expenditure
(11.4) (11.2) (21.8) (43.9) (43.1) (131.4) Total expenditure (1,787.9) (579.1) (598.7) (300.7) (154.8) (154.6)
(0.5) (2.7) (2.8) (8.3) (12.5) (26.8) Sustaining capital (363.5) (165.1) (114.4) (39.4) (38.0) (6.6)
- (7.4) (19.0) (30.8) (29.6) (86.8) Ore reserve development (1,186.8) (400.1) (422.5) (261.3) (102.9) -
(10.9) (1.1) - (4.8) (1.0) (17.8) Growth projects (237.6) (13.9) (61.8) - (13.9) (148.0)
The average exchange rate for the six months ended 31 December 2015 was R13.61/US$.
Figures are in millions unless otherwise stated
United States Dollars For the six months ended South African Rand
30 June 2015
Corporate Cooke Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Cooke Corporate
- 110.9 174.8 255.8 320.2 861.7 Revenue 10,245.5 3,807.0 3,041.2 2,079.2 1,318.1 -
- 91.7 162.9 232.4 283.1 770.1 Underground 9,156.4 3,366.3 2,763.7 1,937.0 1,089.4 -
- 19.2 11.9 23.4 37.1 91.6 Surface 1,089.1 440.7 277.5 142.2 228.7 -
- (116.1) (135.3) (193.2) (218.1) (662.7) Operating costs (7,879.5) (2,593.0) (2,297.3) (1,608.4) (1,380.8) -
- (100.2) (126.4) (179.5) (196.1) (602.2) Underground (7,160.3) (2,331.9) (2,133.9) (1,503.2) (1,191.3) -
- (15.9) (8.9) (13.7) (22.0) (60.5) Surface (719.2) (261.1) (163.4) (105.2) (189.5) -
- (5.2) 39.5 62.6 102.1 199.0 Operating profit 2,366.0 1,214.0 743.9 470.8 (62.7) -
- (8.5) 36.5 52.9 87.0 167.9 Underground 1,996.1 1,034.4 629.8 433.8 (101.9) -
- 3.3 3.0 9.7 15.1 31.1 Surface 369.9 179.6 114.1 37.0 39.2 -
(0.9) (26.3) (23.0) (40.9) (44.2) (135.3) Amortisation and depreciation (1,608.6) (525.1) (485.5) (274.8) (312.3) (10.9)
(0.9) (31.5) 16.5 21.7 57.9 63.7 Net operating profit 757.4 688.9 258.4 196.0 (375.0) (10.9)
3.4 1.2 1.0 1.9 2.3 9.8 Investment income 116.9 27.6 22.9 11.5 13.8 41.1
(3.6) (4.3) (2.2) (5.8) (6.2) (22.1) Finance expenses (262.9) (73.9) (69.9) (25.6) (51.2) (42.3)
1.0 (1.5) (0.8) (1.9) (1.8) (5.0) Net other costs (59.1) (21.5) (22.6) (8.4) (18.1) 11.5
(8.3) - (1.0) (1.3) (1.6) (12.2) Share-based payments (145.0) (19.1) (15.6) (12.2) - (98.1)
(0.3) (0.2) - - (0.6) (1.1) Exploration costs (12.9) (6.6) - (0.5) (1.8) (4.0)
(14.0) (1.4) (0.1) 0.7 0.1 (14.7) Non-recurring items (175.3) 1.4 9.0 (1.6) (16.9) (167.2)
- (0.7) (2.0) (2.4) (6.6) (11.7) Royalties (139.4) (78.9) (28.7) (23.3) (8.5) -
0.1 - (0.6) (0.3) (12.8) (13.6) Current tax (161.7) (152.5) (3.2) (7.7) - 1.7
8.1 5.1 (0.3) (1.4) 2.5 14.0 Deferred tax 167.0 29.6 (16.9) (3.5) 61.9 95.9
(14.5) (33.3) 10.5 11.2 33.2 7.1 Profit for the period 85.0 395.0 133.4 124.7 (395.8) (172.3)
Profit/(loss) attributable to:
(14.5) (25.3) 10.5 11.2 33.2 15.1 Owners of Sibanye 179.8 395.0 133.4 124.7 (300.7) (172.6)
- (8.0) - - - (8.0) Non-controlling interests (94.8) - - - (95.1) 0.3
Capital expenditure
(11.1) (15.3) (24.9) (44.7) (34.9) (130.9) Total expenditure (1,556.9) (415.1) (531.2) (295.8) (182.6) (132.2)
(0.7) (4.6) (3.9) (9.4) (7.1) (25.7) Sustaining capital (305.4) (84.1) (111.2) (46.7) (54.9) (8.5)
- (10.4) (21.0) (35.1) (27.5) (94.0) Ore reserve development (1,118.1) (326.9) (418.1) (249.1) (124.0) -
(10.4) (0.3) - (0.2) (0.3) (11.2) Growth projects (133.4) (4.1) (1.9) - (3.7) (123.7)
The average exchange rate for the six months ended 30 June 2015 was R11.89/US$.
Figures are in millions unless otherwise stated
United States Dollars For the six months ended South African Rand
31 December 2014
Corporate Cooke Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Cooke Corporate
- 147.6 217.5 353.1 374.5 1,092.7 Revenue 11,952.0 4,101.1 3,867.7 2,381.7 1,601.5 -
- 124.4 202.9 327.4 345.4 999.9 Underground 10,940.9 3,781.4 3,585.6 2,221.3 1,348.4 -
- 23.2 4.8 25.7 29.1 92.8 Surface 1,011.1 319.7 282.1 160.4 253.1 -
- (133.8) (147.8) (215.4) (232.0) (729.0) Operating costs (7,971.0) (2,541.8) (2,357.8) (1,619.8) (1,451.6) -
- (116.0) (141.2) (198.0) (208.5) (663.7) Underground (7,257.3) (2,284.5) (2,166.8) (1,547.5) (1,258.5) -
- (17.8) (6.6) (17.4) (23.5) (65.3) Surface (713.7) (257.3) (191.0) (72.3) (193.1) -
- 13.8 69.7 137.7 142.5 363.7 Operating profit 3,981.0 1,559.3 1,509.9 761.9 149.9 -
- 8.4 61.5 129.4 136.9 336.2 Underground 3,679.4 1,496.9 1,418.8 673.8 89.9 -
- 5.4 8.2 8.3 5.6 27.5 Surface 301.6 62.4 91.1 88.1 60.0 -
(0.9) (25.5) (22.2) (59.7) (53.2) (161.5) Amortisation and depreciation (1,766.5) (582.2) (654.5) (242.8) (276.9) (10.1)
(0.9) (11.7) 47.5 78.0 89.3 202.2 Net operating profit 2,214.5 977.1 855.4 519.1 (127.0) (10.1)
2.0 1.1 1.2 2.0 2.3 8.6 Investment income 94.5 24.7 22.5 12.9 12.7 21.7
(1.4) (4.8) (2.1) (6.3) (7.4) (22.0) Finance expenses (240.1) (81.6) (68.3) (22.9) (51.5) (15.8)
(30.4) (0.1) (1.0) (0.9) (2.9) (35.3) Net other costs (384.2) (31.6) (11.0) (11.2) (1.6) (328.8)
(11.0) - (2.1) (2.7) (3.3) (19.1) Share-based payments (209.7) (35.6) (29.7) (23.1) - (121.3)
- (0.5) (0.9) - - (1.4) Exploration costs (15.1) - - (9.4) (5.1) (0.6)
(3.9) (1.7) 43.2 (14.0) (0.6) 23.0 Non-recurring items 243.5 (8.9) (151.9) 467.5 (17.9) (45.3)
- (0.7) (4.3) (8.1) (8.4) (21.5) Royalties (235.3) (91.4) (89.7) (47.1) (7.1) -
3.7 - (8.9) (17.6) (17.9) (40.7) Current tax (445.2) (195.9) (192.2) (97.5) - 40.4
1.3 1.0 (11.4) 4.8 (0.2) (4.5) Deferred tax (48.7) (1.6) 51.9 (123.3) 9.4 14.9
(40.6) (17.4) 61.2 35.2 50.9 89.3 Profit for the period 974.2 555.2 387.0 665.0 (188.1) (444.9)
Profit attributable to:
(40.6) (13.3) 61.2 35.2 50.9 93.4 Owners of Sibanye 1,018.8 555.2 387.0 665.0 (143.5) (444.9)
- (4.1) - - - (4.1) Non-controlling interests (44.6) - - - (44.6) -
Capital expenditure
(7.6) (18.5) (28.5) (62.1) (57.7) (174.4) Total expenditure (1,905.1) (631.0) (679.6) (311.9) (200.3) (82.3)
(1.0) (3.2) (5.2) (21.0) (26.6) (57.0) Sustaining capital (620.0) (287.6) (229.1) (57.7) (34.9) (10.7)
- (9.6) (23.3) (41.1) (31.1) (105.1) Ore reserve development (1,152.3) (343.4) (450.5) (254.2) (104.2) -
(6.6) (5.7) - - - (12.3) Growth projects (132.8) - - - (61.2) (71.6)
The average exchange rate for the six months ended 31 December 2014 was R10.96/US$.
SEGMENT OPERATING AND FINANCIAL RESULTS
Figures are in millions unless otherwise stated
United States Dollars For the year ended South African Rand
31 December 2015
Corporate Cooke Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Cooke Corporate
Operating results
- 5,793 4,319 3,977 5,772 19,861 000’tons Ore milled 000’tons 19,861 5,772 3,977 4,319 5,793 -
- 1,470 2,723 1,979 2,412 8,584 Underground 8,584 2,412 1,979 2,723 1,470 -
- 4,323 1,596 1,998 3,360 11,277 Surface 11,277 3,360 1,998 1,596 4,323 -
- 1.08 2.34 3.54 3.01 2.41 g/t Yield g/t 2.41 3.01 3.54 2.34 1.08 -
- 3.65 3.51 6.50 6.36 5.02 Underground 5.02 6.36 6.49 3.51 3.65 -
- 0.21 0.34 0.61 0.60 0.41 Surface 0.41 0.60 0.61 0.34 0.21 -
- 201.0 324.9 452.3 557.8 1,536.0 000’oz Gold produced/sold kg 47,775 17,350 14,068 10,105 6,252 -
- 172.3 307.3 413.1 493.3 1,386.0 Underground 43,109 15,345 12,848 9,557 5,359 -
- 28.7 17.6 39.2 64.5 150.0 Surface 4,666 2,005 1,220 548 893 -
- 1,161 1,163 1,160 1,158 1,160 $/oz Gold price R/kg 475,508 474,697 475,647 476,546 475,768 -
- 1,158 831 836 756 848 $/oz Total cash cost R/kg 347,613 309,764 342,764 340,792 474,584 -
- 1,329 996 1,051 914 1,051 $/oz All-in-cost R/kg 430,746 374,790 430,751 408,422 544,658 -
- (14) 14 9 21 9 % All-in-cost margin % 9 21 9 14 (14) -
- 40 62 94 71 65 $/ton Operating cost R/ton 825 907 1,201 785 514 -
- 140 92 177 152 137 Underground 1,741 1,941 2,251 1,169 1,782 -
- 7 10 13 13 10 Surface 128 165 161 129 83 -
Financial results
- 233.3 377.7 524.8 646.0 1,781.8 Revenue 22,717.4 8,236.0 6,691.4 4,815.5 2,974.5 -
- 201.0 357.3 479.5 571.3 1,609.1 Underground 20,515.0 7,284.1 6,112.8 4,555.7 2,562.4 -
- 32.3 20.4 45.3 74.7 172.7 Surface 2,202.4 951.9 578.6 259.8 412.1 -
- (233.5) (266.0) (374.7) (410.6) (1,284.8) Operating costs (16,380.4) (5,234.2) (4,777.2) (3,391.0)(2,978.0) -
- (205.5) (249.8) (349.4) (367.2) (1,171.9) Underground (14,940.8) (4,681.2) (4,454.9) (3,184.5)(2,620.2) -
- (28.0) (16.2) (25.3) (43.4) (112.9) Surface (1,439.6) (553.0) (322.3) (206.5) (357.8) -
- (0.2) 111.7 150.1 235.4 497.0 Operating profit 6,337.0 3,001.8 1,914.2 1,424.5 (3.5) -
- (4.5) 107.5 130.1 204.1 437.2 Underground 5,574.2 2,602.9 1,657.9 1,371.2 (57.8) -
- 4.3 4.2 20.0 31.3 59.8 Surface 762.8 398.9 256.3 53.3 54.3 -
(1.6) (55.3) (58.0) (80.7) (89.6) (285.2) Amortisation and
Depreciation (3,636.6) (1,142.6) (1,029.3) (739.4) (704.6) (20.7)
(1.6) (55.5) 53.7 69.4 145.8 211.8 Net operating profit 2,700.4 1,859.2 884.9 685.1 (708.1) (20.7)
6.3 2.1 2.5 4.0 5.3 20.2 Investment income 257.0 67.5 50.6 31.3 27.1 80.5
(11.4) (4.8) (4.5) (11.8) (11.6) (44.1) Finance expenses (561.8) (147.7) (150.1) (57.2) (61.3) (145.5)
(27.8) (2.2) (3.6) (4.7) (5.0) (43.3) Net other costs (551.5) (64.0) (59.8) (46.4) (28.2) (353.1)
(14.8) - (1.8) (2.2) (2.7) (21.5) Share-based payments (274.4) (35.1) (27.6) (23.5) - (188.2)
(0.4) (0.2) (0.1) (0.1) (1.1) (1.9) Exploration/feasibility costs (23.6) (13.9) (0.6) (0.9) (1.9) (6.3)
(15.1) (2.5) (0.7) 0.6 (0.3) (18.0) Non-recurring items (230.1) (2.9) 7.2 (8.4) (31.8) (194.2)
- (1.3) (7.0) (7.7) (15.4) (31.4) Royalties (400.6) (196.8) (98.4) (88.7) (16.7) -
(1.2) - (12.0) (7.6) (33.8) (54.6) Current tax (696.7) (430.8) (97.4) (153.4) - (15.1)
9.7 9.6 1.4 0.1 4.2 25.0 Deferred tax 319.5 53.4 0.9 18.0 122.0 125.2
(56.3) (54.8) 27.9 40.0 85.4 42.2 Profit for the period 538.2 1,088.9 509.7 355.9 (698.9) (717.4)
Profit attributable to:
(56.3) (40.8) 27.9 40.0 85.4 56.2 Owners of Sibanye 716.9 1,088.9 509.7 355.9 (519.9) (717.7)
- (14.0) - - - (14.0) Non-controlling interests (178.7) - - - (179.0) 0.3
Capital expenditure
(22.5) (26.5) (46.7) (88.6) (78.0) (262.3) Total expenditure (3,344.8) (994.2) (1,129.9) (596.5) (337.4) (286.8)
(1.2) (7.3) (6.7) (17.7) (19.6) (52.5) Sustaining capital (668.9) (249.2) (225.6) (86.1) (92.9) (15.1)
- (17.8) (40.0) (65.9) (57.1) (180.8) Ore reserve development (2,304.9) (727.0) (840.6) (510.4) (226.9) -
(21.3) (1.4) - (5.0) (1.3) (29.0) Growth projects (371.0) (18.0) (63.7) - (17.6) (271.7)
The average exchange rate for the year ended 31 December 2015 was R12.75/US$.
Figures are in millions unless otherwise stated
United States Dollars For the year ended South African Rand
31 December 2014
Corporate Cooke Beatrix Kloof Driefontein Group Group Driefontein Kloof Beatrix Cooke Corporate
Operating results
- 3,672 4,546 4,653 5,364 18,235 000’tons Ore milled 000’tons 18,235 5,364 4,653 4,546 3,672 -
- 893 2,571 1,983 2,497 7,944 Underground 7,944 2,497 1,983 2,571 893 -
- 2,779 1,975 2,670 2,867 10,291 Surface 10,291 2,867 2,670 1,975 2,779 -
- 1.17 2.28 3.66 3.31 2.71 g/t Yield g/t 2.71 3.31 3.66 2.28 1.17 -
- 4.16 3.74 7.89 6.54 5.70 Underground 5.70 6.54 7.89 3.74 4.16 -
- 0.21 0.38 0.52 0.49 0.40 Surface 0.40 0.49 0.52 0.38 0.21 -
- 138.4 332.9 547.8 570.2 1,589.3 000’oz Gold produced/sold kg 49,432 17,735 17,038 10,354 4,305 -
- 119.6 308.7 503.3 525.0 1,456.6 Underground 45,304 16,329 15,653 9,603 3,719 -
- 18.8 24.2 44.5 45.2 132.7 Surface 4,128 1,406 1,385 751 586 -
- 1,257 1,268 1,266 1,269 1,267 $/oz Gold price received R/kg 440,615 441,466 440,357 441,018 437,166 -
- 1,136 902 780 814 849 $/oz Total cash cost R/kg 295,246 283,129 271,282 313,888 395,168 -
- 1,325 1,087 1,014 1,027 1,080 $/oz All-in-cost R/kg 375,854 357,333 352,624 378,008 461,045 -
- (6) 14 20 19 15 % All-in-cost margin % 15 19 20 14 (6) -
- 43 65 89 85 73 $/ton Operating cost R/ton 785 916 968 705 461 -
- 152 110 190 164 152 Underground 1,641 1,773 2,061 1,187 1,641 -
- 8 7 14 16 11 Surface 124 169 156 77 82 -
Financial results
- 173.9 422.0 693.5 723.6 2,013.0 Revenue 21,780.5 7,829.4 7,502.8 4,566.3 1,882.0 -
- 147.2 390.8 636.5 665.5 1,840.0 Underground 19,908.7 7,200.2 6,887.3 4,228.8 1,592.4 -
- 26.7 31.2 57.0 58.1 173.0 Surface 1,871.8 629.2 615.5 337.5 289.6 -
- (156.4) (296.1) (416.2) (454.0) (1,322.7) Operating costs (14,311.4) (4,912.3) (4,502.3) (3,204.0) (1,692.8) -
- (135.4) (282.1) (377.8) (409.2) (1,204.5) Underground (13,032.2) (4,427.6) (4,087.0) (3,052.1) (1,465.5) -
- (21.0) (14.0) (38.4) (44.8) (118.2) Surface (1,279.2) (484.7) (415.3) (151.9) (227.3) -
- 17.5 125.9 277.3 269.6 690.3 Operating profit 7,469.1 2,917.1 3,000.5 1,362.3 189.2 -
- 11.8 108.7 258.7 256.3 635.5 Underground 6,876.5 2,772.6 2,800.3 1,176.7 126.9 -
- 5.7 17.2 18.6 13.3 54.8 Surface 592.6 144.5 200.2 185.6 62.3 -
(2.4) (28.5) (43.3) (122.2) (104.4) (300.8) Amortisation and depreciation (3,254.7) (1,129.3) (1,322.3) (468.4) (308.3) (26.4)
(2.4) (11.0) 82.6 155.1 165.2 389.5 Net operating profit 4,214.4 1,787.8 1,678.2 893.9 (119.1) (26.4)
4.9 1.3 2.3 3.9 4.5 16.9 Investment income 183.2 48.3 42.7 24.5 14.7 53.0
(1.4) (5.3) (3.9) (12.3) (14.1) (37.0) Finance expenses (400.0) (152.8) (132.6) (41.8) (56.5) (16.3)
(49.2) (0.5) (5.2) (5.2) (8.0) (68.1) Net other costs (735.7) (86.3) (56.6) (56.5) (5.8) (530.5)
(22.6) - (4.2) (5.4) (6.4) (38.6) Share-based payments (417.9) (69.1) (58.2) (45.9) - (244.7)
- (0.5) (0.9) - - (1.4) Exploration/feasibility costs (15.1) - - (9.4) (5.1) (0.6)
(24.7) (1.7) 43.4 (14.0) (8.8) (5.8) Non-recurring items (63.4) (95.1) (152.0) 469.4 (17.9) (267.8)
- (0.8) (7.6) (16.1) (15.3) (39.8) Royalties (430.5) (165.5) (174.5) (82.1) (8.4) -
(0.7) - (14.2) (35.1) (31.3) (81.3) Current tax (879.2) (339.2) (379.6) (153.9) - (6.5)
8.1 1.1 (11.9) 6.6 0.9 4.8 Deferred tax 51.1 9.8 71.3 (128.5) 10.3 88.2
(88.0) (17.4) 80.4 77.5 86.7 139.2 Profit for the period 1,506.9 937.9 838.7 869.7 (187.8) (951.6)
Profit attributable to:
(88.0) (13.3) 80.4 77.5 86.7 143.3 Owners of Sibanye 1,551.5 937.9 838.7 869.7 (143.2) (951.6)
- (4.1) - - - (4.1) Non-controlling interests (44.6) - - - (44.6) -
Capital expenditure
(8.2) (21.2) (50.6) (114.2) (106.2) (300.4) Total expenditure (3,250.8) (1,148.9) (1,235.5) (548.0) (229.9) (88.5)
(1.6) (4.7) (9.4) (32.9) (43.0) (91.6) Sustaining capital (991.5) (465.3) (355.7) (101.9) (51.7) (16.9)
- (10.8) (41.2) (81.3) (63.2) (196.5) Ore reserve development (2,126.5) (683.6) (879.8) (446.1) (117.0) -
(6.6) (5.7) - - - (12.3) Growth projects (132.8) - - - (61.2) (71.6)
The average exchange rate for the year ended 31 December 2014 was R10.82/US$.
UNIT COST BENCHMARKING METRICS
Cost benchmarks for the six months ended 31 December 2015, compared with the six months ended 30 June 2015 and the six months ended 31 December 2014
Figures are in millions unless otherwise stated
Group Driefontein Kloof Beatrix Cooke Corporate
Operating cost1 Dec 2015 8,500.9 2,641.2 2,479.9 1,782.6 1,597.2 -
Jun 2015 7,879.5 2,593.0 2,297.3 1,608.4 1,380.8 -
Dec 2014 7,971.0 2,541.8 2,375.8 1,619.8 1,451.6 -
Less: General and admin Dec 2015 (93.1) (28.3) (26.7) (18.4) (19.7) -
Jun 2015 (80.7) (28.3) (26.9) (17.6) (7.9) -
Dec 2014 (60.0) (23.1) (22.8) (14.1) - -
Plus: Royalty Dec 2015 261.2 117.9 69.7 65.4 8.2 -
Jun 2015 139.4 78.9 28.7 23.3 8.5 -
Dec 2014 235.3 91.4 89.7 47.1 7.1 -
Total cash cost2 Dec 2015 8,669.0 2,730.8 2,522.9 1,829.6 1,585.7 -
Jun 2015 7,938.2 2,643.6 2,299.1 1,614.1 1,381.4 -
Dec 2014 8,146.3 2,610.1 2,424.7 1,652.8 1,458.7 -
Plus: General and admin Dec 2015 93.1 28.3 26.7 18.4 19.7 -
Jun 2015 80.7 28.3 26.9 17.6 7.9 -
Dec 2014 60.0 23.1 22.8 14.1 - -
Community costs Dec 2015 23.8 8.7 5.9 13.7 (4.5) -
Jun 2015 16.9 5.2 3.0 1.3 7.4 -
Dec 2014 23.8 8.2 6.5 9.9 (0.8) -
Share-based payments3 Dec 2015 129.4 16.0 12.0 11.3 - 90.1
Jun 2015 145.0 19.1 15.6 12.2 - 98.1
Dec 2014 209.7 35.6 29.7 23.1 - 121.3
Rehabilitation Dec 2015 74.6 12.9 12.4 9.8 40.2 (0.7)
Jun 2015 63.7 10.2 10.5 7.5 34.8 0.7
Dec 2014 90.2 19.6 16.6 9.5 44.5 -
Ore reserve development Dec 2015 1,186.8 400.1 422.5 261.3 102.9 -
Jun 2015 1,118.1 326.9 418.1 249.1 124.0 -
Dec 2014 1,152.3 343.4 450.5 254.2 104.2 -
Sustaining capital expenditure Dec 2015 356.9 165.1 114.4 39.4 38.0 -
Jun 2015 296.9 84.1 111.2 46.7 54.9 -
Dec 2014 609.3 287.6 229.1 57.7 34.9 -
On-mine exploration Dec 2015 8.4 7.3 0.6 0.4 0.1 -
Jun 2015 8.9 6.6 - 0.5 1.8 -
Dec 2014 - - - - - -
Less: By-product credit Dec 2015 (12.0) (4.4) (2.7) (3.4) (1.5) -
Jun 2015 (14.8) (4.2) (3.0) (2.4) (5.2) -
Dec 2014 (12.2) (5.2) (3.6) (3.4) - -
Total All-in sustaining cost4 Dec 2015 10,530.0 3,364.8 3,114.7 2,180.5 1,780.6 89.4
Jun 2015 9,653.6 3,119.8 2,881.4 1,946.6 1,607.0 98.8
Dec 2014 10,279.4 3,322.4 3,176.3 2,017.9 1,641.5 121.3
Plus:
Corporate cost and growth Dec 2015 249.4 13.9 61.8 - 13.9 159.8
capital expenditure Jun 2015 145.9 4.1 1.9 - 3.7 136.2
Dec 2014 160.0 - - 9.4 66.3 84.3
Total All-in cost5 Dec 2015 10,779.4 3,378.7 3,176.5 2,180.5 1,794.5 249.2
Jun 2015 9,799.5 3,123.9 2,883.3 1,946.6 1,610.7 235.0
Dec 2014 10,439.4 3,322.4 3,176.3 2,027.3 1,707.8 205.6
Gold sold kg Dec 2015 25,571 9,093 7,471 5,604 3,403 -
Jun 2015 22,204 8,257 6,597 4,501 2,849 -
Dec 2014 27,289 9,353 8,831 5,443 3,662 -
000’ozs Dec 2015 822.1 292.3 240.2 180.2 109.4 -
Jun 2015 713.9 265.5 212.1 144.7 91.6 -
Dec 2014 877.4 300.7 283.9 175.0 117.7 -
Total cash cost R/kg Dec 2015 339,017 300,319 337,692 326,481 465,971 -
Jun 2015 357,508 320,165 348,507 358,609 484,872 -
Dec 2014 298,520 279,066 274,567 303,656 398,334 -
US$/oz Dec 2015 775 686 772 746 1,065 -
Jun 2015 935 838 912 938 1,268 -
Dec 2014 847 792 779 862 1,130 -
All-in sustaining cost R/kg Dec 2015 411,795 370,043 416,905 389,097 523,244 -
Jun 2015 434,769 377,837 436,774 432,482 564,058 -
Dec 2014 376,687 355,223 359,676 370,733 448,252 -
US$/oz Dec 2015 941 846 953 889 1,196 -
Jun 2015 1,137 988 1,143 1,131 1,476 -
Dec 2014 1,069 1,008 1,021 1,052 1,272 -
All-in cost R/kg Dec 2015 421,548 371,572 425,177 389,097 527,329 -
Jun 2015 441,348 378,334 437,062 432,482 565,356 -
Dec 2014 382,550 355,223 359,676 372,460 466,357 -
US$/oz Dec 2015 963 849 972 889 1,205 -
Jun 2015 1,155 990 1,143 1,131 1,479 -
Dec 2014 1,086 1,008 1,021 1,057 1,323 -
The average exchange rates for the six months ended 31 December 2015, 30 June 2015 and 31 December 2014 were R13.61/US$, R11.89/US$ and R10.96/US$,
respectively.
Total cash cost are calculated in accordance with the Gold Institute Industry standard.
1 Operating costs – All gold mining related costs before amortisation/depreciation, tax 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
All-in cost are calculated in accordance with the World Gold Council guidance
1 Operating cost – As published and includes all mining and processing costs, third party refining costs, permitting costs and corporate G&A charges.
3 Share-based payments are calculated based on the fair value at 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.
4 Total All-in sustaining costs includes operating costs and costs detailed above, including sustaining capital expenditure, based on managed gold
sales.
5 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.
Cost benchmarks for the year ended 31 December 2015 compared with the year ended 31 December 2014
Figures are in South African rand millions unless otherwise stated
Group Driefontein Kloof Beatrix Cooke Corporate
Operating cost1 Dec 2015 16,380.4 5,234.2 4,777.2 3,391.0 2,978.0 -
Dec 2014 14,311.4 4,912.3 4,502.3 3,204.0 1,692.8 -
Less: General and admin Dec 2015 (173.8) (56.6) (53.6) (36.0) (27.6) -
Dec 2014 (147.3) (56.5) (54.7) (36.1) - -
Plus: Royalty Dec 2015 400.6 196.8 98.4 88.7 16.7 -
Dec 2014 430.5 165.5 174.5 82.1 8.4 -
Total cash cost2 Dec 2015 16,607.2 5,374.4 4,822.0 3,443.7 2,967.1 -
Dec 2014 14,594.6 5,021.3 4,622.1 3,250.0 1,701.2 -
Plus: General and admin Dec 2015 173.8 56.6 53.6 36.0 27.6 -
Dec 2014 147.3 56.5 54.7 36.1 - -
Community costs Dec 2015 40.7 13.9 8.9 15.0 2.9 -
Dec 2014 37.6 12.7 11.1 13.8 - -
Share-based payments3 Dec 2015 274.4 35.1 27.6 23.5 - 188.2
Dec 2014 417.9 69.1 58.2 45.9 - 244.7
Rehabilitation Dec 2015 138.3 23.1 22.9 17.3 75.0 -
Dec 2014 138.4 38.8 33.4 17.6 48.6 -
Ore reserve development Dec 2015 2,304.9 727.0 840.6 510.4 226.9 -
Dec 2014 2,126.5 683.6 879.8 446.1 117.0 -
Sustaining capital expenditure Dec 2015 653.8 249.2 225.6 86.1 92.9 -
Dec 2014 974.6 465.3 355.7 101.9 51.7 -
On-mine exploration Dec 2015 17.3 13.9 0.6 0.9 1.9 -
Dec 2014 - - - - - -
Less: By-product credit Dec 2015 (26.8) (8.6) (5.7) (5.8) (6.7) -
Dec 2014 (23.9) (10.0) (7.0) (6.9) - -
Total All-in sustaining cost4 Dec 2015 20,183.6 6,484.6 5,996.1 4,127.1 3,387.6 188.2
Dec 2014 18,413.0 6,337.3 6,008.0 3,904.5 1,918.5 244.7
Plus: Group exploration and other Dec 2015 9.2 - - - - 9.2
Dec 2014 16.5 - - 9.4 5.1 2.0
Corporate cost and growth Dec 2015 386.1 18.0 63.7 - 17.6 286.8
capital expenditure Dec 2014 149.7 - - - 61.2 88.5
Total All-in cost5 Dec 2015 20,578.9 6,502.6 6,059.8 4,127.1 3,405.2 484.2
Dec 2014 18,579.2 6,337.3 6,008.0 3,913.9 1,984.8 335.2
Gold sold Kg Dec 2015 47,775 17,350 14,068 10,105 6,252 -
Dec 2014 49,432 17,735 17,038 10,354 4,305 -
000’ozs Dec 2015 1,536.0 557.8 452.3 324.9 201.0 -
Dec 2014 1,589.3 570.2 547.8 332.9 138.4 -
Total cash cost R/kg Dec 2015 347,613 309,764 342,764 340,792 474,584 -
Dec 2014 295,246 283,129 271,282 313,888 395,168 -
US$/oz Dec 2015 848 756 836 831 1,158 -
Dec 2014 849 814 780 902 1,136 -
All-in sustaining cost R/kg Dec 2015 422,472 373,752 426,223 408,422 541,843 -
Dec 2014 372,492 357,333 352,624 377,101 445,645 -
US$/oz Dec 2015 1,031 912 1,040 996 1,322 -
Dec 2014 1,071 1,027 1,014 1,084 1,281 -
All-in cost R/kg Dec 2015 430,746 374,790 430,751 408,422 544,658 -
Dec 2014 375,854 357,333 352,624 378,008 461,045 -
US$/oz Dec 2015 1,051 914 1,051 996 1,329 -
Dec 2014 1,080 1,027 1,014 1,087 1,325 -
The average exchange rates for the six months ended 31 December 2015, 30 June 2015 and 31 December 2014 were R13.61/US$, R11.89/US$ and R10.96/US$,
respectively.
Total cash cost are calculated in accordance with the Gold Institute Industry standard.
1 Operating costs – All gold mining related costs before amortisation/depreciation, tax 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
All-in cost are calculated in accordance with the World Gold Council guidance
1 Operating cost – As published and includes all mining and processing costs, third party refining costs, permitting costs and corporate G&A charges.
3 Share-based payments are calculated based on the fair value at 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.
4 Total All-in sustaining costs includes operating costs and costs detailed above, including sustaining capital expenditure, based on managed gold
sales.
5 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
Salient features and cost benchmarks for the quarters ended 31 December 2015 and 30 September 2015
Figures are in millions unless otherwise stated
Total Driefontein Kloof Beatrix Cooke
Under Under Under Under Under
Group -ground Surface -ground Surface -ground Surface -ground Surface -ground Surface
Tons milled/treated 000’ton Dec 2015 5,025 2,200 2,825 571 891 564 501 661 412 404 1,021
Sept 2015 5,104 2,339 2,765 632 873 500 495 780 344 427 1,053
Yield g/t Dec 2015 2.55 5.31 0.40 6.96 0.58 6.53 0.60 3.99 0.30 3.42 0.18
Sept 2015 2.50 4.96 0.43 6.44 0.61 6.34 0.64 3.50 0.34 3.82 0.20
Gold produced/sold kg Dec 2015 12,799 11,675 1,124 3,974 518 3,684 300 2,635 123 1,382 183
Sept 2015 12,772 11,596 1,176 4,069 532 3,168 319 2,729 117 1,630 208
000’oz Dec 2015 411.5 375.4 36.1 127.8 16.6 118.4 9.7 84.7 4.0 44.4 5.9
Sept 2015 410.6 372.8 37.8 130.8 17.1 101.9 10.2 87.7 3.8 52.4 6.7
Gold price received R/kg Dec 2015 505,094 503,851 505,447 505,221 507,540
Sept 2015 470,349 470,702 469,315 471,855 469,042
US$/oz Dec 2015 1,106 1,103 1,106 1,106 1,111
Sept 2015 1,125 1,126 1,123 1,129 1,122
Operating cost R/ton Dec 2015 813 1,699 124 1,906 158 2,002 156 1,248 121 1,719 79
Sept 2015 865 1,729 134 1,995 173 2,383 163 1,098 150 1,720 83
Total cash cost R/kg Dec 2015 329,166 286,821 315,236 327,339 489,393
Sept 2015 348,857 313,497 363,350 325,650 446,028
US$/oz Dec 2015 720 628 690 716 1,071
Sept 2015 835 750 869 779 1,067
Operating margin % Dec 2015 37 37 39 46 46 39 48 38 21 1 13
Sept 2015 27 26 32 34 39 20 46 34 6 5 4
All-in sustaining cost R/kg Dec 2015 402,797 360,530 388,554 393,981 548,498
Sept 2015 420,811 379,331 449,297 384,364 501,741
US$/oz Dec 2015 882 789 850 862 1,201
Sept 2015 1,007 908 1,075 920 1,200
All-in cost R/kg Dec 2015 413,548 363,201 398,519 393,981 555,911
Sept 2015 429,565 379,744 455,635 384,364 502,992
US$/oz Dec 2015 905 795 872 862 1,217
Sept 2015 1,028 909 1,090 920 1,203
All-in cost margin % Dec 2015 18 28 21 22 (10)
Sept 2015 9 19 3 19 (7)
Ore reserve development R’mil Dec 2015 561.2 196.3 191.0 126.1 47.8
Sept 2015 625.6 203.8 231.5 135.2 55.1
Sustaining capital Dec 2015 223.8 98.7 72.8 26.0 21.7
Sept 2015 139.7 66.4 41.6 13.4 16.3
Corporate and project Dec 2014 130.0 12.0 39.7 - 11.6
expenditure1 Sept 2015 107.6 1.9 22.1 - 2.3
Total capital
expenditure R’mil Dec 2015 915.0 307.0 303.5 152.1 81.1
Sept 2015 872.9 272.1 295.2 148.6 73.7
Total capital
expenditure US$’mil Dec 2015 64.1 21.9 21.2 10.4 5.6
Sept 2015 67.3 21.2 22.7 11.4 5.6
The average exchange rates for the quarters ended 31 December 2015 and 30 September 2015 were R14.21/US$ and R13.00/US$, respectively.
1 Corporate and project expenditure for the quarters ended 31 December 2015 and 30 September 2015 amounts to R71.3 million (US$5.0 million) and
R83.3 million (US$6.4 million), respectively
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 2015 Quarter ended 30 September 2015 Year ended 31 December 2015
Reef Carbon leader Main VCR Carbon leader Main VCR Carbon leader Main VCR
Advanced (m) 1,674 915 1,305 1,659 1,044 1,490 6,836 3,766 5,102
Advanced on reef (m) 319 132 289 482 187 305 1,638 763 841
Channel width (cm) 78 134 45 95 73 52 89 79 54
Average value (g/t) 16.0 3.9 35.8 17.0 9.3 32.9 18.2 9.0 34.3
(cm.g/t) 1,251 519 1,613 1,613 682 1,711 1,621 717 1,852
Kloof Quarter ended 31 December 2015 Quarter ended 30 September 2015 Year ended 31 December 2015
Reef VCR Kloof Main Libanon VCR Kloof Main Libanon VCR Kloof Main Libanon
Advanced (m) 802 780 41 2,488 693 857 72 2,844 2,535 3,358 746 11,260
Advanced on reef (m) 303 155 13 540 223 195 23 718 913 607 326 2,468
Channel width (cm) 221 136 248 103 153 113 105 109 154 120 163 110
Average value (g/t) 5.0 5.7 7.9 25.3 5.5 7.4 5.9 23.3 6.6 7.4 2.6 23.0
(cm.g/t) 1,099 778 1,959 2,604 834 833 621 2,545 1,012 885 421 2,539
Beatrix Quarter ended 31 December 2015 Quarter ended 30 September 2015 Year ended 31 December 2015
Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Advanced (m) 4,225 1,110 4,517 1,440 16,829 4,770
Advanced on reef (m) 1,443 202 1,607 329 5,319 1,025
Channel width (cm) 145 138 147 125 139 121
Average value (g/t) 6.9 11.2 6.9 10.7 7.4 12.1
(cm.g/t) 994 1,547 1,019 1,337 1,031 1,461
Cooke Quarter ended 31 December 2015 Quarter ended 30 September 2015 Year ended 31 December 2015
Elsburg Elsburg Kimberly Elsburg Elsburg Kimberly Elsburg Elsburg Kimberly
Reef VCR Reefs Massive Reefs VCR Reefs Massive Reefs VCR Reefs Massive Reefs
Advanced (m) 352 2,064 57 183 566 2,138 135 334 2,197 9,450 212 1,064
Advanced on reef (m) 133 879 49 149 302 929 108 174 1,250 3,607 169 620
Channel width (cm) 85 143 193 46 95 137 162 78 94 129 177 75
Average value (g/t) 6.7 7.8 8.8 8.5 6.8 7.3 10.0 7.9 7.6 7.6 9.1 8.2
(cm.g/t) 567 1,116 1,704 387 645 1,004 1,623 617 712 977 1,616 614
ADMINISTRATION AND CORPORATE INFORMATION
Investor Enquiries
James Wellsted
Senior Vice President:
Investor Relations
Sibanye Gold Limited
Cell: +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)
Chris Chadwick#
Robert Chan#
Timothy Cumming*
Barry Davison*
Rick Menell*
Nkosemntu Nika*
Keith Rayner*
Susan van der Merwe*
Jerry Vilakazi*
Jiyu Yuan#
*Independent Non-Executive
#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.
These forward-looking statements, including, among others, those relating to Sibanye’s future business prospects, revenues and income, wherever they
may occur in this document and the exhibits to this document, are necessarily estimates reflecting the best judgment of the senior management and
directors of Sibanye, and involve a number of known and unknown risks and uncertainties that could cause actual results, performance or achievements of
the Group to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be
considered in light of various important factors, including those set forth in this document. Important factors that could cause the actual results to
differ materially from estimates or projections contained in the forward-looking statements include, without limitation, economic, business, political
and social conditions in South Africa, Zimbabwe and elsewhere; changes in assumptions underlying Sibanye’s estimation of its current Mineral Reserves
and Resources; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, as well as at
existing operations; the ability of Sibanye to successfully integrate acquired businesses and operations (whether in the gold mining business or
otherwise) into its existing businesses; the success of Sibanye’s business strategy, exploration and development activities; the ability of Sibanye to
comply with requirements that it operate in a sustainable manner; changes in the market price of gold, platinum group metals (“PGMs”) and/or uranium;
the occurrence of hazards associated with underground and surface gold, PGMs and uranium mining; the occurrence of labour disruptions and industrial
action; the availability, terms and deployment of capital or credit; changes in relevant government regulations, particularly environmental tax health
and safety regulations and new legislation affecting water, mining, mineral rights and business ownership, including any interpretations thereof which
may be subject to dispute; the outcome and consequence of any potential or pending litigation or regulatory proceedings or other environmental, health
and safety issues; power disruptions, constraints and cost increases; supply chain shortages and increases in the price of production inputs;
fluctuations in exchange rates, currency devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary stoppages of
mines for safety incidents and unplanned maintenance; Sibanye’s ability to hire and retain senior management or sufficient technically skilled
employees, as well as its ability to achieve sufficient representation of historically disadvantaged South Africans’ in its management positions;
failure of Sibanye’s information technology and communications systems; the adequacy of Sibanye’s insurance coverage; any social unrest, sickness or
natural or man-made disaster at informal settlements in the vicinity of some of Sibanye’s operations; and the impact of HIV, tuberculosis and other
contagious diseases. These forward-looking statements speak only as of the date of this document.
The Group 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: 25/02/2016 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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