Wrap Text
Operating and Financial results for the six months ended 30 June 2016
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 ended 30 June 2016
A PROUDLY SOUTH AFRICAN MINING COMPANY
WESTONARIA 25 August 2016: Sibanye Gold Limited (“Sibanye”) (JSE: SGL & NYSE: SBGL) is pleased to report operating results and reviewed condensed, consolidated interim financial statements for the six months ended 30 June 2016.
Salient features for the six months ended 30 June 2016
- Interim dividend of 85 cents per share (ZAR) declared;
- Operating profit increases 128% to R5.4 billion (US$351 million);
- Gold production of 23,229kg (746,800oz) 5% higher year-on-year;
- Gold All-in sustaining cost 3% higher at R448,922/kg, in US$ terms 20% lower at US$908/oz; and
- Annual production guidance maintained.
United States Dollars KEY STATISTICS South African Rand
Six months ended Six months ended
June December June June December June
2015 2015 2016 2016 2015 2015
Gold Division
713.9 822.1 746.8 000’oz Gold produced kg 23,229 25,571 22,204
1,207 1,115 1,220 US$/oz Revenue R/kg 603,427 487,736 461,426
68 61 57 US$$/ton Operating cost R/ton 869 839 810
199.0 298.0 346.0 US $m Operating profit Rm 5,320.7 3,971.0 2,366.0
23 32 38 % Operating margin % 38 32 23
1,137 941 908 US $/oz All-in sustaining cost R/kg 448,922 411,795 434,769
Platinum Division Attributable1
- - 51,346 oz Platinum produced kg 1,597 - -
- - 92,773 oz 4E production kg 2,886 - -
- - 832 US$/oz Average basket price R/oz 12,499 - -
- - 4.7 US$m Operating profit Rm 72.2 - -
- - 10 % Operating margin % 10 - -
- - 683 US$/4Eoz Cash operating cost R/4Eoz 10,268 - -
Group
15.1 41.1 21.7 US$m Basic earnings Rm 333.0 537.1 179.8
14.3 38.6 72.4 US$m Headline earnings Rm 1,113.9 505.0 169.6
20.5 75.2 139.9 US$m Normalised earnings Rm 2,152.0 976.5 243.3
2 8 15 cps Normalised earnings cps 234 107 27
1 The platinum division’s performance is for the three months ended 30 June 2016, as the Aquarius group was only acquired on
12 April 2016.
Stock data for the six months ended 30 June 2016
Number of shares in issue JSE Limited - (SGL)
- at 30 June 2016 923,902,469 Price range per ordinary share ZAR24.57 to ZAR61.20
- weighted average 919,088,871 Average daily volume 6,115,753
Free Float 80% NYSE - (SBGL); one ADR represents four ordinary shares
ADR Ratio 1:4 Price range per ADR US$6.09 to US$16.35
Bloomberg/Reuters SGLS / SGLJ.J Average daily volume 1,693,348
STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER OF SIBANYE GOLD
“Sibanye delivered a strong financial result for the six months ended 30 June 2016, driven largely by a higher prevailing rand gold
price, but underpinned by solid operational delivery from both the Gold and Platinum divisions, despite both being impacted by numerous
unanticipated operational disruptions.
The highly leveraged nature of the gold operations was clearly evident during the period: a 31% increase in the average rand gold price
to R603,427/kg and a 5% increase in gold production resulted in operating profit from the Gold Division increasing by 125% to
R5,321 million (US$346 million). The Platinum Division, which was incorporated from 12 April 2016 following the conclusion of the
Aquarius Platinum Limited acquisition, delivered record quarterly production of 92,773oz (4E), resulting in an attributable operating
profit of R72 million (US$5 million).
Normalised earnings of R2,152 million for the six months ended 30 June 2016, was R1,909 million higher than the R243 million reported
for the comparative period in 2015.
Considering the solid operating performance and constructive outlook for precious metals prices for the remainder of the year, the Board
has declared an interim dividend of 85 cents per share (R785 million) equivalent to 36% of normalised earnings. The comparative interim
dividend declared in 2015 was 10 cents per share (R91 million), with the total dividend of 100 cents per share (R917 million) for the
year ended 31 December 2015.
SAFETY
Sibanye’s commitment to its vision of “creating superior value for all stakeholders” defines and guides all aspects of the business.
Employees are key stakeholders, and the health, wellbeing and safety of Sibanye’s employees is of primary importance.
Consistent improvements in annual safety trends since its unbundling in 2013, resulted in Sibanye achieving industry leading safety
results relative to its South African gold peers in 2015, with Sibanye’s deep level labour intensive mines comparing favourably with
global mining industry averages, with respect to fatality free injury rates and lost day injury frequency rates. The safety record at
Sibanye’s shallower Kroondal and Mimosa platinum mines has generally been better than the Gold Division, with Kroondal reporting no
fatalities for the last two years.
Regrettably there has been a regression in the Gold Division’s safety performance, with eight fatalities during the first six months of
this year (four fatalities during the comparative period in 2015). Sibanye management and the Board express their sincere condolences to
the families and colleagues of the deceased employees (Mssrs – Moreruoa Mahao, Tanki Sebolai, Elliot Kenosi, Alberto Massango, Mzwandile
Chita, Pieter van Rensburg, Qamako Mpananyane and Moeketsi Thaane).
Sibanye management has taken urgent steps to address this regression in safety, appointing Peter Turner, who has exemplary
qualifications and significant mining experience in the role of Senior Vice President: Safety, Health and Environment for the Group.
Sibanye’s Executive management, together with senior safety specialists, have completely reviewed the Group safety principles and
management. Immediate safety challenges will be addressed through stringent enforcement of standards and compliance in the short term,
while a parallel drive to align Sibanye’s safety management with the changing life attitudes of the workforce will result in a more
sustainable behavioural and cultural shift. More detailed work to structure specific interventions will now be implemented at all
operating levels within the organisation to promote the required ownership within the strategic framework.
Sibanye management is also engaging the Department of Mineral Resources (“DMR”) on the current safety performance, as well as the
remedial action being taken.
OPERATING REVIEW
The June 2016 quarter represents the first quarter in which Sibanye is reporting operating and financial results from its Platinum
Division. Kroondal and Mimosa delivered record operating results, despite operational disruptions resulting from illegal industrial
action and numerous S54s. The Gold Division delivered higher production and managed its costs relatively well year-on-year, but was also
negatively impacted by S54s and preparations for the strike declared by AMCU in April 2016.
Gold Division
Group gold production of 23,229kg (746,800oz) for the six months ended 30 June 2016 was 5% higher than for the comparative period in
2015. Depreciation in the rand in late 2015 significantly boosted revenues for the South African gold producers, with the average gold
price increasing from R461,426/kg for the six months ended 30 June 2015 to R603,427/kg for the 2016 interim period. The depreciation of
the rand, on conversion, results in lower costs in US$ terms. Sibanye’s operating costs are almost entirely rand denominated.
Gold Division Total cash cost (“TCC”) increased by 7% to R381,635/kg, in line with South African consumer inflation, but was 17% lower
in US$ terms at US$772/oz. All-in sustaining cost (“AISC”) increased by 3% to R448,922/kg year-on-year, but declined by 20% in US$ terms
to US$908/oz. Total capital expenditure from the Gold Division increased by 5% to R1,639 million (US$107 million) due to expenditure at
the Driefontein and Kloof below infrastructure projects and at the Burnstone project, resulting in All-in cost (“AIC”) increasing by 6%
to R465,952/kg. AIC in US$ terms were 18% lower at a globally competitive US$942/oz. Margins of 37% (TCC), 26% (AISC) and 23% (AIC)
were, as a result, significantly higher than for the comparative period in 2015.
Stope preparation (installation of increased support) following the declaration of AMCU’s intention to strike and safety interventions
had a significant impact on the gold divisions production during the first half of the year. Underground production from Driefontein
was consequently 590kg (19,000oz) lower year-on-year at 6,712kg (215,800oz). This was despite the yield increasing from 6.0g/t to 6.5g/t
due to ongoing improvements in face grades. As a result of the lower production, both TCC and AISC increased by 12% to R360,130/kg and
R422,253/kg, respectively. TCC and AISC in US$ terms were respectively 13% and 14% lower than for the previous comparative period at
US$728/oz and US$854/oz.
Underground production from Kloof increased by 646kg (20,800oz) to 6,642kg (213,500oz), due to a 2% increase in throughput to
937,000 tons and an 8% increase in yield to 7.1g/t, as a result of an improvement in quality mining factors. Costs were well managed
with TCC flat at R350,189/kg (US$708/oz) and AISC declining 2% to R427,883/kg (US$865/oz).
Beatrix’s performance was also significantly improved year-on-year, with underground throughput increasing by 11% to
1.42 million tons. The underground yield was unchanged at 3.3g/t, resulting in underground production increasing by 10% or
433kg (13,900oz) to 4,626kg (148,700oz). The 11% increase in throughput at similar yields resulted in TCC increasing by 7% to
R384,723/kg (US$778/oz), with AISC increasing 5% to R452,064/kg (US$914/oz).
Underground production from Cooke increased by 399kg (12,800oz) to 2,746kg (88,300oz) following the commissioning of the backfill
project at Cooke 2 in late 2015 and mining quality improvements at Cooke 3. A 27% increase in gold production from the Cooke 1-3
operations to 2,027kg (65,200oz) offset a 5% decline at Cooke 4 to 719kg (23,100oz).
Underperformance at Cooke 4 continues despite intensive management interventions. As a result of the underperformance at Cooke 4,
TCC for the Cooke operations increased by 4% to R505,410/kg (US$1,022/oz) with AISC marginally lower at R560,723/kg (US$1,134/oz) costs.
If Cooke 4 unit costs were excluded from the Cooke operations results for the six months to June 2016, both TCC and AISC, would have
been approximately R60,000/kg (US$120/oz) lower. On 11 July 2016 Sibanye gave notice that it would be consulting affected stakeholders
regarding the future of the Cooke 4 operations. These engagements continue.
Surface gold production of 2,503kg (80,500oz) for the six months to 30 June 2016 increased by 6% compared with 2,366kg (76,100oz) for
the comparative period in 2015. This increase was mainly due to higher volumes from the Driefontein surface plant, and an improved
performance from Kloof due to higher yields and volumes from the Libanon and Venterspost surface rock dumps, partly offset by lower
volumes and grades at Beatrix and Cooke.
Platinum Division
Sibanye’s Platinum Division (currently comprising the Kroondal, Platinum Mile and Mimosa operations), delivered record attributable
platinum group metals (“PGM”) production of 92,773oz (4E) for the quarter ended 30 June 2016, with Kroondal and Mimosa continuing to
deliver above nameplate capacity, a notable achievement given the operational challenges they experienced.
Mimosa delivered record quarterly attributable production of 29,490oz (4E), despite a primary crusher failure which affected the
operation for eight days. Mimosa’s cash operating margin was 19% for the quarter. The average PGM basket price and cash operating cost
were US$822/4Eoz and US$766/4Eoz, respectively for the quarter.
Kroondal delivered record attributable production of 60,707oz (4E) for the quarter which included a drawdown of approximately 6,000oz
(4E) from its strategic stockpile during the illegal, unprotected industrial action by AMCU in April 2016 and to compensate for lost
production arising from S54s during the quarter. The average PGM basket price was R12,578/4Eoz (US$836/4Eoz) and reported cash operating
cost was R9,661/4Eoz (US$642/4Eoz) for the quarter.
While the production impact of unplanned stoppages for the Gold Division was offset by the higher gold price received, for the more
marginal Platinum Division, production losses and prevailing low PGM prices have a marked effect and pose a threat to the future
viability of some of the operations. Sibanye is currently assessing the current operational and financial situation at its Platinum
Division, which may require remedial action.
Organic growth
In 2015, capital investment in organic growth projects of approximately R3.6 billion was approved by the Sibanye Board. The projects
which include below infrastructure, depth extensions at Kloof and Driefontein and a revised development plan at Burnstone, will realise
over 4Moz of additional gold production and will extend the Gold Division’s Life of Mine (“LoM”) beyond 2040. More importantly, Sibanye
expects to maintain gold production at well over 1Moz per annum for at least 12 more years (until 2028).
All of the above mentioned projects exceed Sibanye’s 15% project hurdle rate (real, after tax) at a real gold price of R450,000/kg,
which was applied in 2015. At an applied gold price of R600,000/kg (the 2016 year to date average gold price is approximately
R603,000/kg), these projects have a collective net present value (“NPV”) of approximately R7 billion, with internal rates of return
(“IRR”) between 20% and 30%.
The West Rand Tailings Retreatment Project (“WRTRP”) is an important large-scale, long-life surface tailings retreatment organic
project, which will turn to account sizable surface gold Reserves of approximately 10.3Moz and uranium Reserves of approximately
99.9Mlbs at Sibanye's Kloof, Driefontein and Cooke operations. The WRTRP has been designed to be developed in a number of phases and
different configurations, ensuring the group retains capital flexibility. The feasibility study concluded in 2015, focuses on four high-
grade anchor resources (containing approximately 2.4Moz of gold and 53Mlbs of uranium) which will produce approximately 100,000oz per
annum of gold and approximately 2.2Mlbs per annum of uranium at steady state, over an 18 year initial LoM. Sibanye is currently
exploring financing alternatives to enhance shareholder returns through an optimised capital profile. Pending Board approval, the WRTRP
could realise significant long-term value for shareholders and benefit all stakeholders by offering an early and sustainable
environmental rehabilitation solution for the West Wits region, creating sustainable employment and facilitating community development.
Sibanye has recently entered into memorandums of understanding with third parties to explore financing options.
FINANCIAL REVIEW
Income statement
Group revenue increased by 44%, from R10,246 million for the six months ended 30 June 2015 to R14,705 million for the six months ended
30 June 2016. This was largely a function of the depreciation of the rand against the US$ in late 2015, with the average gold price
increasing by 31% from R461,426/kg (US$1,207/oz) to R603,427/kg (US$1,220/oz). Revenue from the Gold Division was 37% higher year-on-
year at R14,017 million. South African PGM producers do not derive the same benefit from a depreciating rand, ceterus paribus. This is
due to South Africa’s dominant position as the largest primary producer of PGMs globally (accounting for some 74% of primary global
production in 2015) as the depreciation of the rand is generally accompanied by a similar decline in US$ PGM prices, as is evident in
Figure 1 below.
The average PGM basket price (the weighted average price of the 4E metals) for the June 2016 quarter was R12,499/4Eoz, (US$832/4Eoz)
with Sibanye’s Platinum Division contributing a net attributable R688 million (US$45 million) to Group revenue for the June 2016
quarter.
Group operating costs of R9,312 million (US$605 million) include a net R616 million (US$40 million) from the Platinum Division.
Operating costs from the Gold Division were 10% higher at R8,696 million (US$565 million), predominantly due to above inflation annual
wage and electricity tariff increases, and increased overtime costs to mitigate production lost due to safety stoppages and industrial
action.
Group operating profit of R5,393 million (US$351 million) was R3,027 million higher than for the comparative period in 2015, and
included R72 million (US$5 million) from the Platinum Division. The Platinum Division’s contribution to Group net operating profit of
R3,448 million (US$224 million) was negligible after recognising its R56 million (US$4 million) share of amortisation and depreciation.
Profit before non-recurring items of R1,778 million (US$116 million) was significantly reduced by a R1,177 million (US$77 million) loss
on financial instruments. The extra-ordinarily high loss on financial instruments is predominantly due to the significant increase in
Sibanye’s share price during the period, which resulted in a fair value adjustment of the Phantom Share Scheme (which replaced the
previous Gold Fields share option scheme in 2013) of R1,181 million (US$77 million). Approximately 70% of Phantom Share Scheme rights
vested during the period with participants receiving R1,490 million (US$97 million) in cash payments, rather than shares as per the
previous Gold Fields scheme. Since 2014, no additional instruments have been awarded under the Phantom Share Scheme and the value of the
remaining obligations at 30 June 2016 was R346 million (US$24 million). Excluding the non-recurring loss on financial instruments, Group
profit before non-recurring items would have been R2,959 million (US$192 million) compared with R394 million (US$33 million) for the
previous comparative period.
An R817 million (US$53 million) impairment of the Cooke 4 mining assets and R102 million (US$7 million) of other net non-recurring
expenses reduced profit before royalties and taxation to R859 million (US$56 million), compared with R219 million (US$18 million) for
the comparative period in 2015.
After recognising significantly higher royalties and tax of R266 million (US$17 million) and R505 million (US$33 million), respectively
and adjusting for non-controlling interests, the earnings and headline earnings attributable to the owners of Sibanye amounted to
R333 million (US$22 million) and R1,114 million (US$72 million), respectively compared with R180 million (US$15 million) and
R170 million (US$14 million), respectively for the comparative period in 2015.
Balance Sheet and cash flow
Gross debt (excluding the Burnstone debt of R1,779 million (US$121 million) which is ring-fenced to the project) increased from
R1,995 million (US$128 million) at 31 December 2015 to R5,250 million (US$357 million) at 30 June 2016, predominantly to finance the
R4,302 million Aquarius acquisition, which was concluded on 12 April 2016. Current liabilities at 30 June 2016 includes the current
portion of borrowings of R3,780 million (US$257 million) which is due and payable in December 2016 under the R4.5 billion facilities and other short-term credit facilities.
Cash generated by operations more than doubled to R5,126 million (US$333 million) resulting in solid free cash flow (defined as net cash
from operating activities before dividends paid, less additions to property, plant and equipment) of R1,536 million (US$100 million).
This includes the extra-ordinary payment of R1,490 million (US$97 million) in terms of the Phantom Share Scheme. Free cash flow,
adjusted for this extra-ordinary payment, would have been a very strong R3,026 million (US$197 million).
Group cash and cash equivalents of R838 million (US$57 million), excluding Burnstone cash of R33 million (US$2 million), was similar to
the previous comparative period, resulting in net debt increasing to R4,413 million (US$300 million). Net debt (excluding the Burnstone
debt and cash) to EBITDA (annualised for the year ended 30 June 2016) has increased to 0.41 times, which is well below industry averages
and well within our own internal guideline of 1.0 times.
CORPORATE ACTIVITY
Sibanye remains committed to sustainable value creation for all stakeholders. Sibanye’s investment case, underpinned by its pledge to
pay industry leading dividends, is not commodity specific and while the price outlook and commodity fundamentals are important, all
opportunities to realise value and enhance the sustainability of the dividend, will be considered. The global economic outlook remains
uncertain, with unexpected events such as Brexit adding to volatility. As a result, commodities in general are still under pressure,
with supply/demand fundamentals still relatively bearish in the absence of a return to global economic growth. Sentiment does however
appear to have improved in 2016, with mining company share prices increasing significantly despite little change in the overall
fundamentals. As such, value acquisition opportunities which were more prevalent at the beginning of the year are less obvious currently and Sibanye will continue to evaluate opportunities where value creation can be derived through the realisation of cost and operational synergies.
OUTLOOK
The South African mining industry generally delivers seasonally higher production and overall improved operational results during the
second half of the calendar year, primarily due to fewer public holidays than in the first six months of the year. Barring any unplanned
disruptions, Sibanye’s Gold Division should deliver a significantly improved performance in the second half of the year.
On the basis of normal operational performance during the second half of the year, production guidance of 50,000kg (1.6Moz) remains
unchanged, albeit that the future of Cooke 4 shaft is currently under review. Total cash cost is forecast at approximately R355,000/kg
(US$760/oz) and the All-in sustaining cost at approximately R425,000/kg (US$910/oz). The capital expenditure forecast also remains at
R3.9 billion (US$270 million) and All-in cost is forecast at approximately R440,000/kg (US$945/oz). The dollar costs are based on an
average exchange rate of R14.50/US$.
Attributable production from the Platinum Division for the nine months to 31 December 2016 is forecast at 260,000oz (4E), at an average
cash operating cost of R10,600/4Eoz (US$735/4Eoz). Attributable capital expenditure is forecast at approximately R225 million
(US$15 million). These forecasts do not assume any production from the Rustenburg assets for 2016.
Gold and PGM prices have strengthened over the course of 2016 and the outlook for both remains supportive of further gains. The rand
gold price has recently pulled back from record highs of around R650,000/kg, due to a sharp, recent recovery in the rand, but spot
prices of approximately R580,0000/kg remain significantly higher than the R450,000/kg used for internal planning purposes in 2016.
The long term fundamental outlook for PGM prices remains positive, but in the short term both rand and dollar PGM prices are likely to
remain muted. Given current industry cost pressures and ongoing labour and regulatory related complexity and uncertainty the platinum
sector is likely to remain under significant pressure in the short term.”
25 August 2016
Neal Froneman, Chief Executive Officer
FINANCIAL AND OPERATING REVIEW OF THE GROUP
For the six months ended 30 June 2016 compared with the six months ended 30 June 2015
FINANCIAL REVIEW OF THE GROUP
Production from the South African gold mining industry during the first half of the calendar year is seasonally weak due to fewer
production shifts over the Christmas/New Year period and the Easter public holidays. It is therefore more relevant to compare the
operating and financial results for the six months ended 30 June 2016 with the corresponding period in the previous year, rather than
the preceding six months ended 31 December 2015.
Group profit increased marginally from R85 million (US$7 million) for the six months ended 30 June 2015 to R88 million (US$6 million)
for the six months ended 30 June 2016. The variances are discussed below.
OPERATING PERFORMANCE
Gold production for the six months ended 30 June 2016 was 5% higher than the comparative period in 2015 at 23,229kg. Underground
production increased to 20,726kg from 19,838kg and surface operations delivered 2,503kg, an increase of 137kg.
The Platinum Division delivered record attributable PGM production of 92,773oz (4E) for the quarter ended 30 June 2016, with Kroondal
and Mimosa continuing to deliver above nameplate capacity; a notable achievement given the operational challenges they experienced.
Revenue and costs from the Platinum Division include the attributable results of Kroondal (50%) and Platinum Mile (100%) and exclude
results from Mimosa (joint venture) which is accounted for in equity-accounted investments.
REVENUE
Group revenue increased by 44% to R14,705 million (US$956 million), driven primarily by the higher rand gold price which increased by
31% to R603,427/kg from R461,426/kg. The increase was largely driven by a weaker rand/dollar exchange rate, which was on average 29%
weaker at R15.38/US$ compared with R11.89/US$ for the six months ended 30 June 2015. The US dollar gold price was also marginally higher
at US$1,220/oz. Revenue from the Platinum Division amounted to R688 million (US$45 million) since acquisition.
There were no uranium sales for either the six months to 30 June 2015 or the six months to June 2016.
OPERATING COSTS
Group operating costs increased by 18% to R9,312 million (US$605 million), including R616 million (US$40 million) from the Platinum
Division.
Operating costs for the Gold Division increased by 10% to R8,696 million. Driefontein increased by 7% to R2,767 million due to an
increase in labour costs (mainly as a result of the annual increase, which affected all the operations), increased contractor costs in
respect of the 19% increase in surface ore transported to the mills, and increased electricity tariffs of 12.67% effective from 1 April
2015. These increases were partly offset by an increase in capitalised ore reserve development (“ORD”).
Kloof’s operating costs increased by 10% to R2,519 million in line with the 12% increase in production, and annual labour and
electricity cost increases.
Beatrix’s operating costs increased by 14% driven by an 11% increase in underground throughput, together with the annual labour and
electricity cost increases. The cost related to the increase in production was more than offset by the additional revenue generated from
the operation.
Operating costs at Cooke increased by 15% to R1,582 million mainly due to the annual labour and electricity cost increases, higher
contractors’ costs at Cooke 4 and an impairment of uranium inventory. The impairment was as a result of the uranium price falling below
the cost of production, requiring a revaluation of the uranium inventory, which is recognised as operating costs.
Gold TCC increased by 7% to R381,635/kg, due to the increased costs partly offset by the increase in production. Despite higher TCC,
the higher gold price resulted in a TCC margin of 37%, compared with 23% for the six months ended 30 June 2015. The AISC margin was also
higher at 26% compared with 6% for the comparative period in 2015.
As a result of a 29% weaker average rand/dollar exchange rate, TCC in US dollar terms decreased by 17% to US$772/oz.
The Platinum Division reported cash operating costs of US$683/4Eoz (R10,268/4Eoz). Cash operating costs for Kroondal were US$642/4Eoz
(R9,661/4Eoz) with unit costs of R630/ton. Cash operating costs for Mimosa were US$766/4Eoz with unit costs of US$69/ton.
OPERATING PROFIT
Group operating profit, increased by 128% to R5,393 million (US$351 million), compared with R2,366 million (US$199 million) for the
comparative period in 2015. This increase was mainly due to the increased gold price and higher gold production, with the first time
inclusion of operating profit from the Platinum Division of R72 million (US$5 million).
AMORTISATION AND DEPRECIATION
Group amortisation and depreciation increased by 21% to R1,945 million (US$127 million) as a result of the inclusion of the Platinum
Division, which added R56 million (US$4 million), a decrease in reserves at Cooke, and Beatrix West and North sections, and the increase
in underground production.
CAPITAL EXPENDITURE
Capital expenditure at the Gold Division, was 5% higher at R1,639 million (US$107 million) largely due to expenditure on the approved
organic projects, including R228 million (US$15 million) spent at Burnstone for ORD and the acquisition of capital equipment.
Sustaining capital expenditure at the Gold Division was lower at R211 million (US$14 million) due to the completion of the backfill
project at Cooke 2 shaft in 2015, an IT upgrade across the operations and the timing of winder and technical upgrades. ORD was similar
year-on-year at R1,142 million (US$74 million).
All-in costs
Gold All-in cost increased by 6% to R465,952/kg due to additional expenditure on projects. The weaker rand/dollar exchange rate resulted
in a higher average rand gold price being received and the AIC margin increasing from 4% to 23%, despite increased expenditure on
projects. This illustrates the significant operational leverage and cash flow generation of Sibanye’s gold assets. In dollar terms AIC
were 18% lower due to the currency weakness.
INVESTMENT INCOME
Investment income increased by 38% to R162 million (US$11 million) due to interest earned on the loan to Rand Refinery Proprietary
Limited (“Rand Refinery”), and higher average cash balances and environmental rehabilitation obligation funds during the period.
FINANCE EXPENSES
Finance expenses increased from R263 million (US$22 million) to R385 million (US$25 million). The increase was primarily due to a
R26 million increase in the interest on the Burnstone Debt, which due to the weaker rand/dollar exchange rate, increased from
R1,134 million at 31 December 2014 to R1,808 million at 31 December 2015, a R45 million increase in the environmental rehabilitation
obligation accretion expenses mainly due to the acquisition of Aquarius, which added R27 million and new disturbances, and a R45 million
increase in interest paid following an increase in gross debt.
Sibanye’s average gross debt outstanding, excluding the Burnstone Debt, during the first half of 2016 was approximately R3,600 million
compared with R2,200 million during the first half of 2015. Sibanye made additional drawdowns of around R3,400 million to partly fund
the Aquarius acquisition.
SHARE OF RESULT OF EQUITY-ACCOUNTED INVESTMENTS
The R85 million (US$6 million) loss from share of results of equity-accounted investments for the six months ended 30 June 2016, was
primarily due to Sibanye’s share of losses of R76 million relating to its 33.1% interest in Rand Refinery, and R29 million from its
attributable share in Mimosa, and share of gains of R20 million relating to Sibanye’s 50% interest in Living Gold Proprietary Limited.
For additional information of Sibanye’s equity-accounted investments see note 7 of the financial statements on page 18 of this report.
LOSS OR GAIN ON FINANCIAL INSTRUMENTS
The cash-settled share options are valued at each reporting period based on the fair value of the instrument at that reporting date.
The difference between the reporting date fair value and the initial recognition fair value of these cash-settled share options is
included in (loss)/gain on financial instruments in profit or loss.
The R1,177 million (US$77 million) net loss for the six months ended 30 June 2016 compares with a R25 million (US$2 million) net gain
on financial instruments for the six months ended 30 June 2015. This primarily consists of a R1,181 million fair value loss
(30 June 2015: R9 million fair value gain) related to the Phantom Share Scheme options and a R9 million (30 June 2015: R4 million)
fair value gain on investments under the environmental rehabilitation obligation funds.
GAIN OR LOSS ON FOREIGN EXCHANGE DIFFERENCES
The gain on foreign exchange differences of R38 million for the six months ended 30 June 2016 compares with a loss of R50 million for
the six months ended 30 June 2015. The gain on foreign exchange differences for the six months ended 30 June 2016 was mainly due to
exchange gains on the Burnstone Debt and the US$350 million revolving credit facility of R100 million and R94 million, respectively,
partly offset by the effect of exchange rate fluctuations on cash held of R149 million.
NON-RECURRING ITEMS
Impairment
During the six months ended 30 June 2016 a decision was taken to impair the Cooke 4 Operation’s mining assets by R817 million
(US$53 million). Despite joint efforts of stakeholders, the Cooke 4 Operation has been unable to meet required production and cost
targets, and has continued to operate at a loss.
For additional information of the impairment of the Cooke 4 Operation’s mining assets see note 4 on page 16 of this report.
Transaction costs
The transaction costs incurred during the six months ended 30 June 2016 related to the Aquarius and Rustenburg Operations acquisitions.
There were no transaction costs for the six months ended 30 June 2015.
Net loss on derecognition of financial guarantee asset and liability
On 24 April 2015, Sibanye was released as guarantor by the note holders of Gold Fields Limited’s US$1 billion bond, resulting in a net
loss on derecognition of the financial asset and liability of R158 million (US$13 million).
ROYALTIES
Royalties increased by 90% to R266 million (US$17 million) due to the increase in earnings before interest and taxes. The royalty tax
rate increased to 1.8% from 1.4% of revenue.
MINING AND INCOME TAX
Current tax increased from R162 million (US$14 million) to R494 million (US$32 million) due to the increase in taxable mining income
for the period. The deferred tax increased from a credit of R167 million (US$14 million) to a charge of R12 million (US$1 million).
CASH FLOW ANALYSIS
Sibanye defines free cash flow as cash from operating activities before dividends paid, less additions to property, plant and equipment.
Free cash flow of R1,536 million (US$100 million) compares with R391 million (US$33 million) for the six months ended 30 June 2015.
This was largely due to the R2,873 million increase in cash generated from the operating activities to R5,127 million, a R1,483 million
increase in cash-settled share-based payments paid, a R472 million increase in release from working capital, a R530 million increase in
royalties and taxation paid, and a R205 million increase in capital expenditure.
Available cash at 30 June 2016 (after net loans raised of R3,371 million) increased to R871 million (US$59 million) from R717 million
(US$46 million) at 31 December 2015.
DIVIDEND DECLARATION
The Sibanye Board approved an Interim Dividend, number 4, of 85 SA cents per share (gross) for the six months ended 30 June 2016.
Sibanye‘s dividend policy is to return between 25% and 35% of normalised earnings to shareholders. The Board may also consider declaring
a special dividend after due consideration of the Group cash position and future requirements. Normalised earnings are defined as: basic
earnings excluding gains and losses on foreign exchange and financial instruments, non-recurring items and its share of result of
associates, after taxation.
The Interim 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 85 SA cents per ordinary share for shareholders exempt from the Dividends Tax;
- The Dividend Withholding Tax of 15% will be applicable to this dividend;
- The net local dividend amount is 72.2500 SA cents (85% of 85 SA cents) per ordinary share for shareholders liable to pay the
Dividends Withholding Tax;
- Sibanye currently has 923,902,469 ordinary shares in issue;
- Sibanye’s Auditors are KPMG Inc. and the individual auditor is Jacques Erasmus; and
- Sibanye’s income tax reference number is 9431 292 151.
Shareholders are advised of the following dates in respect of the Interim Dividend:
- Interim Dividend number 4: 85 SA cents per share.
- Last date to trade cum dividend: Tuesday, 20 September 2016.
- Sterling and US dollar conversion date: Wednesday, 21 September 2016.
- Shares commence trading ex-dividend: Wednesday, 21 September 2016.
- Record date: Friday, 23 September 2016.
- Payment of dividend: Monday, 26 September 2016.
Please note that share certificates may not be dematerialised or rematerialised between Wednesday, 21 September 2016, and Friday,
23 September 2016, both dates inclusive.
SALIENT FEATURES AND COST BENCHMARKS
Gold Division – Salient features and cost benchmarks for the six months ended 30 June 2016, 31 December 2015 and 30 June 2015
Gold Division Driefontein Kloof Beatrix Cooke
Under- Under- Under- Under- Under-
Total ground Surface ground Surface ground Surface ground Surface ground Surface
Tons milled/treated 000’ton Jun 2016 10,007 4,066 5,941 1,033 1,899 937 1,191 1,418 751 678 2,100
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
Yield g/t Jun 2016 2.32 5.10 0.42 6.50 0.61 7.09 0.63 3.26 0.29 4.05 0.18
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
Gold produced/sold kg Jun 2016 23,229 20,726 2,503 6,712 1,161 6,642 746 4,626 218 2,746 378
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
000’oz Jun 2016 746.8 666.3 80.5 215.8 37.3 213.5 24.0 148.7 7.0 88.3 12.2
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
Gold price received R/kg Jun 2016 603,427 603,595 603,384 604,129 601,312
Dec 2015 487,736 487,078 488,583 488,276 486,747
Jun 2015 461,426 461,063 460,997 461,942 462,654
US$/oz Jun 2016 1,220 1,221 1,220 1,222 1,216
Dec 2015 1,115 1,113 1,117 1,116 1,112
Jun 2015 1,207 1,206 1,206 1,209 1,210
Operating cost R/ton Jun 2016 869 1,937 138 2,354 177 2,471 171 1,219 132 2,062 87
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
Operating margin % Jun 2016 38 37 45 40 52 42 55 38 24 15 19
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
Total cash cost1 R/kg Jun 2016 381,635 360,130 350,189 384,723 505,410
Dec 2015 339,017 300,319 337,692 326,481 465,971
Jun 2015 357,508 320,165 348,507 358,609 484,872
US$/oz Jun 2016 772 728 708 778 1,022
Dec 2015 775 686 772 746 1,065
Jun 2015 935 838 912 938 1,269
All-in sustaining cost R/kg Jun 2016 448,922 422,253 427,883 452,044 560,723
Dec 2015 411,795 370,043 416,905 389,097 523,244
Jun 2015 434,769 377,837 436,774 432,482 564,058
US$/oz Jun 2016 908 854 865 914 1,134
Dec 2015 941 846 953 889 1,196
Jun 2015 1,137 988 1,143 1,131 1,476
All-in cost R/kg Jun 2016 465,952 424,400 432,661 452,106 562,164
Dec 2015 421,548 371,572 425,177 389,097 527,329
Jun 2015 441,348 378,334 437,062 432,482 565,356
US$/oz Jun 2016 942 858 875 914 1,137
Dec 2015 963 849 972 889 1,205
Jun 2015 1,155 990 1,143 1,131 1,479
All-in cost margin % Jun 2016 23 30 28 25 7
Dec 2015 14 24 13 20 (8)
Jun 2015 4 18 5 6 (22)
Total capital expenditure2 R’mil Jun 2016 1,638.6 468.2 539.8 289.2 113.2
Dec 2015 1,787.9 579.1 598.7 300.7 154.8
Jun 2015 1,556.9 415.1 531.2 295.8 182.6
US$’mil Jun 2016 106.5 30.4 35.1 18.8 7.4
Dec 2015 131.4 43.1 43.9 21.8 11.2
Jun 2015 130.9 34.9 44.7 24.9 15.4
Average exchange rates for the six months ended 30 June 2016, 31 December 2015 and 30 June 2015 were R15.38/US$, R13.61/US$ and R11.89/US$, respectively.
Figures may not add as they are rounded independently.
1 Total cash cost is calculated in accordance with the Gold Institute Industry Standard.
2 Included in total capital expenditure is expenditure of R228.2 million (US$14.8 million), R154.6 million (US$11.4 million) and
R132.2 million (US$11.1 million) for the six months ended 30 June 2016, 31 December 2015 and 30 June 2015, respectively of which, the
majority was spent on our growth project, Burnstone.
Platinum Division – Salient features and cost benchmarks for the three months ended 30 June 2016, since acquisition on 12 April 2016
Platinum Division –
attributable1 Kroondal Mimosa Plat Mile
Under- 100% 100%
Total ground Surface Managed Managed Surface
Tons milled/treated 000’ton Jun 2016 2,692 1,259 1,433 1,863 654 1,433
Plant head grade g/t Jun 2016 1.65 2.78 0.65 2.50 3.57 0.65
Plant recoveries % Jun 2016 65.09 80.15 8.58 80.96 78.54 8.58
PGM 4E production2 4Eoz Jun 2016 92,773 90,198 2,575 121,414 58,981 2,575
PGM 4E basket price received2 R/4Eoz Jun 2016 12,499 12,491 12,769 12,578 12,313 12,769
US$/4Eoz Jun 2016 832 831 846 836 822 846
Cash operating cost R/ton Jun 2016 354 735 19 630 1,035 19
US$/ton Jun 2016 24 49 1 42 69 1
Cash operating margin % Jun 2016 13 14 (2) 10 19 (2)
Cash operating cost R/4Eoz Jun 2016 10,268 10,256 10,660 9,661 11,482 10,660
US$/4Eoz Jun 2016 683 682 707 642 766 707
1 Platinum Division includes the attributable operations of Kroondal (50%), Mimosa (50%) and Platinum Mile surface operation.
2 Production per product.
Production ounces
Platinum 51,346
Palladium 31,022
Rhodium 7,996
Gold 2,409
4Eoz 92,773
Ruthenium 12,186
Iridium 3,079
Total oz 108,038
CONDENSED CONSOLIDATED INCOME STATEMENT
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Six months ended Six months ended
June December June June December June
2015 2015 2016 Notes 2016 2015 2015
861.7 920.1 956.1 Revenue 14,704.7 12,471.9 10,245.5
(662.7) (622.1) (605.4) Operating costs (9,311.8) (8,500.9) (7,879.5)
199.0 298.0 350.7 Operating profit 5,392.9 3,971.0 2,366.0
(135.3) (149.9) (126.5) Amortisation and depreciation (1,945.4) (2,028.0) (1,608.6)
63.7 148.1 224.2 Net operating profit 3,447.5 1,943.0 757.4
9.8 10.4 10.5 Investment income 161.8 140.1 116.9
(22.1) (22.0) (25.0) Finance expenses (385.2) (298.9) (262.9)
(5.3) (0.8) (5.6) Net other costs (85.1) (15.5) (63.1)
(1.1) (0.8) - Exploration and feasibility costs (0.1) (10.7) (12.9)
Share of results of equity-accounted
2.4 6.7 (5.5) investments after tax (84.9) 87.2 28.8
(12.2) (9.3) (8.9) Share-based payments 2 (137.4) (129.4) (145.0)
2.1 (20.2) (76.5) (Loss)/gain on financial instruments 3 (1,177.0) (254.5) 25.0
(4.2) (23.1) 2.5 Gain/(loss) on foreign exchange differences 37.9 (309.6) (49.8)
33.1 89.0 115.7 Profit before non-recurring items 1,777.5 1,151.7 394.4
1.2 3.4 3.5 Gain on disposal of property,
plant and equipment 53.1 44.5 14.2
- - (53.3) Impairments 4 (819.1) - -
(2.6) (5.6) (2.5) Restructuring costs (38.9) (73.6) (31.2)
- (2.0) (7.4) Transaction costs (113.6) (25.7) -
Net loss on derecognition of financial
(13.3) - - guarantee asset and liability - - (158.3)
18.4 84.8 56.0 Profit before royalties and tax 859.0 1,096.9 219.1
(11.7) (19.7) (17.3) Royalties (265.5) (261.2) (139.4)
6.7 65.1 38.7 Profit before tax 593.5 835.7 79.7
0.4 (30.0) (32.9) Mining and income tax (505.4) (382.5) 5.3
(13.6) (41.0) (32.1) - Current tax (493.7) (535.0) (161.7)
14.0 11.0 (0.8) - Deferred tax (11.7) 152.5 167.0
7.1 35.1 5.8 Profit for the period 88.1 453.2 85.0
Profit/(loss) for the period attributable to:
15.1 41.1 21.7 - Owners of Sibanye 333.0 537.1 179.8
(8.0) (6.0) (15.9) - Non-controlling interests (244.9) (83.9) (94.8)
Earnings per ordinary share (cents)
2 4 2 Basic earnings per share 36 59 20
2 4 2 Diluted earnings per share 36 58 20
909,295 914,771 919,089 Weighted average number of shares (‘000) 919,089 914,771 909,295
913,536 920,442 924,760 Diluted weighted average number of shares (‘000) 924,760 920,442 913,536
Headline earnings per ordinary share (cents) 5
2 4 8 Headline earnings per share 121 55 19
2 4 8 Diluted headline earnings per share 120 55 19
11.89 13.61 15.38 Average R/US$ rate
The condensed consolidated financial statements for the period ended 30 June 2016 have been prepared by Sibanye’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.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Six months ended Six months ended
June December June June December June
2015 2015 2016 2016 2015 2015
7.1 35.1 5.8 Profit for the period 88.1 453.2 85.0
(64.1) (265.2) 54.4 Other comprehensive income, net of tax 9.5 - -
- - - Foreign currency translation adjustments 9.5 - -
(64.1) (265.2) 54.4 Currency translation adjustments1 - - -
(57.0) (230.1) 60.2 Total comprehensive income 97.6 453.2 85.0
Total comprehensive income attributable to:
(47.8) (221.1) 76.6 - Owners of Sibanye 342.5 537.1 179.8
(9.2) (9.0) (16.4) - Non-controlling interests (244.9) (83.9) (94.8)
11.89 13.61 15.38 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
United States Dollars South African Rand
June December June June December June
2015 2015 2016 Notes 2016 2015 2015
2,120.0 1,641.9 1,991.2 Non-current assets 29,271.6 25,515.0 25,800.2
1,861.1 1,424.2 1,579.0 Property, plant and equipment 23,211.0 22,132.4 22,648.6
60.5 47.4 65.5 Goodwill 6 962.4 736.7 736.7
8.1 10.8 149.1 Equity-accounted investments 7 2,192.2 167.5 98.2
0.1 0.1 0.1 Investments 1.3 1.3 1.4
186.0 155.3 180.6 Environmental rehabilitation obligation funds 2,655.5 2,413.9 2,263.9
- - 7.5 Non-current receivables 110.3 - -
4.2 4.1 9.4 Deferred tax 138.9 63.2 51.4
187.7 177.0 241.9 Current assets 3,555.6 2,750.7 2,284.8
31.8 26.1 37.5 Inventories 550.8 405.9 386.5
85.7 104.7 145.2 Trade and other receivables 2,134.1 1,627.4 1,043.8
70.2 46.2 59.2 Cash and cash equivalents 870.7 717.4 854.5
2,307.7 1,818.9 2,233.1 Total assets 32,827.2 28,265.7 28,085.0
1,196.7 964.3 976.3 Shareholders’ equity 14,352.1 14,984.8 14,563.7
785.7 510.5 701.1 Non-current liabilities 10,306.2 7,933.6 9,561.5
304.2 229.2 249.5 Deferred tax 3,667.7 3,561.4 3,702.1
260.8 116.4 221.0 Borrowings 8 3,248.6 1,808.3 3,174.0
212.3 155.1 227.2 Environmental rehabilitation obligation 9 3,340.4 2,411.0 2,583.1
1.2 1.0 1.1 Post-retirement healthcare obligation 16.3 16.3 15.0
- - 2.3 Non-current payables 33.2 - -
7.2 8.8 - Share-based payment obligations - 136.6 87.3
325.3 344.1 555.7 Current liabilities 8,168.9 5,347.3 3,959.8
235.1 177.6 264.1 Trade and other payables 3,881.7 2,759.4 2,861.7
14.3 8.3 10.9 Taxation and royalties payable 160.8 129.6 174.3
44.6 128.4 257.2 Current portion of borrowings 8 3,780.3 1,995.3 542.3
31.3 29.8 23.5 Current portion of share-based
payment obligations 346.1 463.0 381.5
2,307.7 1,818.9 2,233.1 Total equity and liabilities 32,827.2 28,265.7 28,085.0
136.8 87.6 300.2 Net debt1 4,412.7 1,361.9 1,664.8
12.17 15.54 14.70 Closing R/US$ rate
1 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
Accumu- Non- Non- Accumu-
Stated Other lated controlling Total Total controlling lated Other Stated
capital Reserves loss interests equity equity interests loss Reserves capital
2,388.6 550.2 (1,671.0) 28.5 1,296.3 Balance at 31 December 2014 14,985.9 329.6 (9,897.4) 2,819.1 21,734.6
- (62.9) 15.1 (9.2) (57.0) Total comprehensive income for the period 85.0 (94.8) 179.8 - -
- - 15.1 (8.0) 7.1 Profit for the period 85.0 (94.8) 179.8 - -
- (62.9) - (1.2) (64.1) Other comprehensive income net of tax - - - - -
- - (47.6) - (47.6) Dividends paid (567.1) - (567.1) - -
- 5.0 - - 5.0 Share-based payments 59.9 - - 59.9 -
- - 1.7 (1.7) - Transactions with non-controlling interests - (20.0) 20.0 - -
2,388.6 492.3 (1,701.8) 17.6 1,196.7 Balance at 30 June 2015 14,563.7 214.8 (10,264.7) 2,879.0 21,734.6
- (262.2) 41.1 (9.0) (230.1) Total comprehensive income for the period 453.2 (83.9) 537.1 - -
- - 41.1 (6.0) 35.1 Profit for the period 453.2 (83.9) 537.1 - -
- (262.2) - (3.0) (265.2) Other comprehensive income net of tax - - - - -
- - (6.6) - (6.6) Dividends paid (91.3) - (91.3) - -
- 4.3 - - 4.3 Share-based payments 59.2 - - 59.2 -
- - 1.5 (1.5) - Transactions with non-controlling interests - (21.1) 21.1 - -
2,388.6 234.4 (1,665.8) 7.1 964.3 Balance at 31 December 2015 14,984.8 109.8 (9,797.8) 2,938.2 21,734.6
- 54.9 21.7 (16.4) 60.2 Total comprehensive income for the period 97.6 (244.9) 333.0 9.5 -
- - 21.7 (15.9) 5.8 Profit for the period 88.1 (244.9) 333.0 - -
- 54.9 - (0.5) 54.4 Other comprehensive income net of tax 9.5 - - 9.5 -
- - (54.3) - (54.3) Dividends paid (825.4) - (825.4) - -
Acquisition of subsidiary with
- - - 0.8 0.8 non-controlling interest 12.9 12.9 - - -
- 5.3 - - 5.3 Share-based payments 82.2 - - 82.2 -
- - 1.4 (1.4) - Transactions with non-controlling interest - (21.6) 21.6 - -
2,388.6 294.6 (1,697.0) (9.9) 976.3 Balance at 30 June 2016 14,352.1 (143.8) (10,268.6) 3,029.9 21,734.6
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Six months ended Six months ended
June December June June December June
2015 2015 2016 Notes 2016 2015 2015
Cash flows from operating activities
189.5 291.3 333.3 Cash generated by operations 5,126.5 3,877.2 2,253.1
(0.5) (2.8) (96.9) Cash-settled share-based payments paid 2 (1,489.8) (35.8) (6.4)
3.1 (55.5) 33.1 Change in working capital 509.0 (705.3) 37.3
192.1 233.0 269.5 Cash generated from operating activities 4,145.7 3,136.1 2,284.0
(4.4) - - Guarantee release fee paid - - (51.8)
3.8 5.4 4.1 Interest received 63.4 72.2 45.1
(10.0) (10.4) (11.1) Interest paid (170.2) (141.7) (118.5)
(9.0) (22.0) (16.7) Royalties paid (256.3) (288.9) (106.5)
(8.8) (42.7) (31.5) Tax paid (484.9) (552.0) (104.3)
(47.6) (6.6) (53.7) Dividends paid (825.4) (91.3) (567.1)
116.1 156.7 160.6 Net cash from operating activities 2,472.3 2,134.4 1,380.9
Cash flows from investing activities
(130.9) (131.4) (114.5) Additions to property, plant and equipment (1,761.4) (1,787.9) (1,556.9)
1.5 3.6 3.6 Proceeds on disposal of property, plant and equipment 55.0 47.2 17.9
Contributions to funds and payment of environmental
- (6.1) (0.2) rehabilitation obligation (3.3) (77.8) (0.3)
- - (294.0) Investment in subsidiary 6 (4,301.5) - -
- - 33.7 Cash acquired on acquisition of subsidiaries 6 494.1 - -
- (0.2) (1.0) Loan advanced to equity-accounted investee (15.5) (3.0) -
- 1.4 - Loan repaid by equity accounted investee - 20.9 -
(129.4) (132.7) ( 372.4) Net cash used in investing activities (5,532.6) (1,800.6) (1,539.3)
Cash flows from financing activities
130.5 - 346.3 Loans raised 8 5,325.5 - 1,552.0
(92.7) (29.3) (127.1) Loans repaid 8 (1,954.9) (470.9) (1,102.0)
37.8 (29.3) 219.2 Net cash from/(used in) financing activities 3,370.6 (470.9) 450.0
24.5 (5.3) 7.4 Net increase/(decrease) in cash and cash equivalent 310.3 (137.1) 291.6
(3.0) (18.7) 5.6 Effect of exchange rate fluctuations on cash held (157.0) - -
48.7 70.2 46.2 Cash and cash equivalents at beginning of period 717.4 854.5 562.9
70.2 46.2 59.2 Cash and cash equivalents at end of period 870.7 717.4 854.5
11.89 13.61 15.38 Average R/US$ rate
12.17 15.54 14.70 Closing R/US$ rate
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. Basis of accounting and preparation
The condensed consolidated interim financial statements for the six months ended 30 June 2016 have been prepared and presented in
accordance with the requirements of the JSE Listings Requirements for interim reports and the requirements of the Companies Act of South
Africa. The JSE Listings Requirements require interim 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 interim 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 2015. The
accounting policies (including significant accounting judgements and estimates), however, have been expanded for the PGM assets (due to
the Aquarius acquisition) mainly relating to:
- Revenue arising from PGM concentrate sales is recognised when risks and rewards of ownership of the mine product has passed to the
buyer pursuant to a sales contract. The sales price is determined on a provisional basis at the date of delivery. Adjustments to the
sales price occur based on movements in the metal market price up to the date of final pricing. Revenue on provisionally priced sales is
initially recorded at the estimated fair value of the consideration receivable, determined with reference to estimated forward prices
using consensus forecasts. The fair value of the final sales price adjustment is re-estimated continuously and changes in fair value
recognised as an adjustment to revenue in profit or loss and trade receivables in the statement of financial position.
- Judgement is required to determine when the Group has joint control, which requires an assessment of the relevant activities and when
the decisions in relation to those activities require unanimous consent. The Group has determined that the relevant activities for its
joint arrangements are those relating to the operating and capital decisions of the arrangement. The considerations made in determining
joint control are similar to those necessary to determine control over subsidiaries. Judgement is also required to classify a joint
arrangement as either a joint operation or a joint venture. Classifying the arrangement requires the Group to assess their rights and
obligations arising from the arrangement.
In terms of the Group’s accounting policies:
- Joint ventures are accounted for using the equity method; and
- Joint operations are accounted for by recognising the proportionate share of assets, liabilities and transactions incurred jointly.
The condensed consolidated income statement and statements of other comprehensive income and cash flows for the six months ended
31 December 2015 were prepared by subtracting the reviewed condensed consolidated financial statements for the period ended 30 June 2015
from the audited comprehensive consolidated financial statements for the year ended 31 December 2015. The US dollar consolidated
comprehensive income statement, statement of changes in equity and the statement of cash flows have not been audited. The statement of
financial position for 31 December 2015 was extracted from the audited comprehensive consolidated financial statements for the year
ended 31 December 2015.
The translation of the financial statements into US Dollar is based on the average exchange rate for the period for the income
statement, statement of other comprehensive income 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 other comprehensive
income. This information is provided as supplementary information only.
2. Share-based payments
Figures are in South African Rand millions unless otherwise stated Six months ended
Jun Dec Jun
2016 2015 2015
Sibanye Gold Limited 2013 Share Plan (82.2) (59.2) (59.9)
Sibanye Gold Limited Phantom Share Scheme (55.2) (70.2) (85.1)
Total share-based payments (137.4) (129.4) (145.0)
Sibanye Gold Limited Phantom Share Scheme
On 14 May 2013 Sibanye’s Remuneration Committee limited the issuance of share options for the 2013 allocation under the Sibanye Gold
Limited 2013 Share Plan (“SGL Share Plan”) to senior management only. Middle and certain senior management, who previously participated
in the equity-settled share option scheme, now participate in a cash-settled share scheme, the Sibanye Gold 2013 Phantom Share Scheme
(“SGL Phantom Scheme”).
The fair value of the cash-settled instruments at reporting date, used to value the share-based payment obligation, is determined using
the same assumptions as for the grant date valuation. However, the respective models take into account the actual share data of the peer
group for the period from the grant date to the reporting date.
Reconciliation of the share-based payment obligation:
Figures are in South African Rand millions unless otherwise stated Six months ended
Note Jun Dec Jun
2016 2015 2015
Balance at beginning of the period 599.6 468.8 399.2
Share-based payments expensed 55.2 70.2 85.1
Fair value adjustment of obligation1 3 1,181.1 96.4 (9.1)
Cash-settled share-based payments paid2 (1,489.8) (35.8) (6.4)
Balance at end of the period 346.1 599.6 468.8
1 The fair value adjustment at reporting date is included in loss on financial instruments in profit or loss and not as part of
share-based payments expense. The appreciation in Sibanye's share price, which increased by approximately 120% during the six month
period ended 30 June 2016, resulted in a fair value loss of R1,181.1 million.
2 Payments made during the period relates to vesting of shares to employees and proportionate vesting of shares to employees that
have left the Group in good faith. Bonus Share (“BS”) options under the SGL Share Plan are issued on grant date and thus dividends
are paid when the Company declares a dividend. Similarly, the BS holders under the SGL Phantom Scheme receive share-based payments to
the equivalent of dividends paid, which were also paid during the period.
3. (Loss)/gain on financial instruments
Figures are in South African Rand millions unless otherwise stated Six months ended
Jun Dec Jun
2016 2015 2015
Fair value adjustment of share-based payment obligation (1,181.1) (96.4) 9.1
Loss on revised cash flows of the Burnstone Debt - (162.5) -
Other 4.1 4.4 15.9
Total (loss)/gain on financial instruments (1,177.0) (254.5) 25.0
4. Impairments
Figures are in South African Rand millions unless otherwise stated Six months ended
Jun Dec Jun
2016 2015 2015
Impairment of property, plant and equipment (816.7) - -
Impairment of loan to equity-accounted investee (2.4) - -
Total impairments (819.1) - -
Despite intense monitoring and interventions by a joint management and labour committee over the last 17 months since the previous
section 189 consultation was concluded, the Cooke 4 Operation has continued to fall short of production targets and losses have
continued to accumulate. In view of the sustained losses at the Cooke 4 Operation and considering the extensive efforts to improve
productivity and reduce the operation’s cost structures, Sibanye has given notice in terms of section 189 of the Labour Relations Act 66
of 1995. As a result a decision was taken during the six months ended 30 June 2016 to impair the Cooke 4 Operation’s mining assets by
R816.7 million. This impairment was based on negative cash flow projections for the remainder of the life of mine.
5. Reconciliation of headline earnings with profit for the period
Figures are in South African Rand millions unless otherwise stated Six months ended
Jun Dec Jun
2016 2015 2015
Profit attributable to owners of Sibanye 333.0 537.1 179.8
Gain on disposal of property, plant and equipment (53.1) (44.5) (14.2)
Impairment 819.1 - -
Taxation effect of re-measurement items 14.9 12.4 4.0
Headline earnings 1,113.9 505.0 169.6
6. 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 Platinum Limited
(“Aquarius”) (“the Aquarius Transaction”), valuing Aquarius at US$294 million. The transaction was subject to the fulfilment of various
conditions precedent which were completed on 12 April 2016.
On 12 April 2016, Sibanye paid R4,302 million to the Aquarius shareholders and obtained control (100%) of Aquarius.
The acquisition has a strong strategic and financial rationale for Sibanye, both as a stand-alone transaction and when considered in
conjunction with the announcement on 9 September 2015 of the conditional acquisition of the Rustenburg PGM operations from Anglo
American Platinum Limited. These acquisitions will result in significant value creation through the realisation of synergies between the
PGM assets in the Rustenburg area thereby enhancing Sibanye’s platinum portfolio.
The Aquarius operations are efficiently managed, mechanised and low-cost operations that will consolidate Sibanye’s position in the
South African PGM sector and also provide Sibanye with additional PGM operational experience.
For the three months ended 30 June 2016, Aquarius contributed revenue of R687.7 million and a loss of R5.5 million to the Group’s
results.
The purchase price allocation has been prepared on a provisional basis in accordance with IFRS 3 Business Combinations (“IFRS 3”).
If new information obtained within one year of the acquisition date, about facts and circumstances that existed at the acquisition date
identifies adjustments to the below amounts, or any additional provisions that existed at the date of acquisition, then the accounting
for the acquisition will be revised.
Consideration transferred
The consideration paid is as follows:
Figures are in South African Rand millions unless otherwise stated
Jun
2016
Cash 4,301.5
Total consideration paid 4,301.5
Acquisition related costs
The Group incurred acquisition related costs of R86.2 million on advisory and legal fees. These costs are recognised as transaction
costs in profit or loss.
Identifiable assets acquired and liabilities assumed
The following table summarises the provisional fair value of assets acquired and liabilities assumed at the acquisition date:
Figures are in South African Rand millions unless otherwise stated
Jun
Notes 2016
Property, plant and equipment 1,923.8
Equity-accounted investments 7 2,066.7
Environmental rehabilitation obligation funds 151.9
Non-current receivables 108.4
Inventories 155.0
Trade and other receivables 908.9
Cash and cash equivalents 494.1
Deferred tax (18.9)
Environmental rehabilitation obligation 9 (630.0)
Non-current payables (32.4)
Trade and other payables (1,025.6)
Tax and royalties payable (13.2)
Total fair value of identifiable net assets acquired 4,088.7
The fair value of assets and liabilities excluding property plant and equipment, and environmental rehabilitation obligation approximate
their carrying value. The fair value of property, plant and equipment was based on the expected discounted cash flows of the expected
platinum group metal (“PGM”) reserves and costs to extract the PGMs discounted at a discount rate of 9% for Kroondal and Platinum Mile,
and 15% for Mimosa, and an average PGM (4E) basket price of R14,700/oz.
Goodwill
Goodwill arising from the acquisition has been recognised as follows:
Figures are in South African Rand millions unless otherwise stated
Jun
2016
Consideration paid 4,301.5
Fair value of identifiable net assets (4,088.7)
Non-controlling interests, based on their proportionate interest
in the recognised amounts of the assets and liabilities 12.9
Goodwill 225.7
The goodwill arose on the acquisition of Aquarius and is attributable to the synergies between the PGM assets in the Rustenburg area.
The allocation of goodwill has been provisionally allocated to the various cash generating units. None of the goodwill recognised is
expected to be deducted for tax purposes.
7. Equity-accounted investments
The Group holds the following equity-accounted investments:
Figures are in South African Rand millions unless otherwise stated Six months ended
Jun Dec Jun
2016 2015 2015
Rand Refinery 93.9 148.7 83.6
Mimosa 2,046.8 - -
Other equity-accounted investments 51.5 18.8 14.6
Total equity-accounted investments 2,192.2 167.5 98.2
Rand Refinery
Sibanye has a 33.1% interest in Rand Refinery Proprietary Limited (“Rand Refinery”) which is accounted for using the equity method.
Rand Refinery recognised losses during the period as a result of potential gold lock-up in the smelter which could be recovered in
future months and inefficiencies in processing by-product stockpiles.
The carrying value of Rand Refinery remains an area of estimation and uncertainty.
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 months ended
Jun Dec Jun
2016 2015 2015
Balance at beginning of the period 148.7 83.6 55.1
Share of results of equity-accounted investee after tax (75.5) 86.0 28.5
Loan advanced to/(repaid by) equity-accounted investee 20.7 (20.9) -
Balance at end of the period 93.9 148.7 83.6
Mimosa
Sibanye has a 50% interest in Mimosa Investments Limited, which owns and operates the Mimosa mine.
The equity-accounted investment in Mimosa movement for the period is as follows:
Figures are in South African Rand millions unless otherwise stated Six months ended
Jun Dec Jun
Note 2016 2015 2015
Balance at beginning of the period - - -
Share of results of equity-accounted investee after tax (29.0) - -
Gain on foreign exchange differences 9.1 - -
Equity-accounted investment on acquisition of subsidiaries 6 2,066.7 - -
Balance at end of the period 2,046.8 - -
8. Borrowings
Figures are in South African Rand millions unless otherwise stated Six months ended
Jun Dec Jun
2016 2015 2015
Balance at beginning of the period 3,803.6 3,716.3 3,170.0
Loans raised 5,325.5 - 1,552.0
- R4.5 Billion Facilities 1,936.4 - 1,000.0
- US$350 million revolving credit facility 2,217.5 - -
- Other uncommitted facilities 1,171.6 - 552.0
Loans repaid (1,954.9) (470.9) (1,102.0)
- R4.5 Billion Facilities (650.0) (470.9) (550.0)
- US$350 million revolving credit facility (653.3) - -
- Other uncommitted facilities (651.6) - (552.0)
Franco-Nevada settlement (non-cash) (21.3) (20.2) (14.4)
Unwinding of loans recognised at amortised cost 72.4 55.1 47.2
Loss on revised estimated cash flows - 162.5 -
(Gain)/loss on foreign exchange difference (196.4) 360.8 63.5
Balance at end of the period 7,028.9 3,803.6 3,716.3
Borrowings consist of:
- R 4.5 Billion Facilities 3,249.2 1,961.6 2,431.2
- Franco Nevada 11.1 33.7 44.3
- US$350 million revolving credit facility 1,470.0 - -
- Burnstone Debt 1,778.6 1,808.3 1,240.8
- Other borrowings 520.0 - -
Borrowings 7,028.9 3,803.6 3,716.3
Current portion of borrowings (3,780.3) (1,995.3) (542.3)
Non-current borrowings 3,248.6 1,808.3 3,174.0
9. Environmental rehabilitation obligation
Figures are in South African Rand millions unless otherwise stated Six months ended
Jun Dec Jun
Note 2016 2015 2015
Balance at beginning of the period 2,411.0 2,583.1 2,486.8
Interest charge 142.0 101.3 96.6
Payment of environmental rehabilitation obligation - - (0.3)
Change in estimates1 157.4 (273.4) -
Environmental rehabilitation obligation assumed on
acquisition of subsidiaries 6 630.0 - -
Balance at end of the period 3,340.4 2,411.0 2,583.1
1 Changes in estimates are defined as changes in reserves and corresponding changes in life of mine, changes in discount rates,
and changes in laws and regulations governing environmental matters. During the six months ended 30 June 2016, the environmental
rehabilitation obligation acquired is 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. The resulting change in estimate was R157.4 million
10. Fair value of financial assets and financial liabilities
The fair value of financial instruments is estimated based on ruling market prices, volatilities and interest rates at 30 June 2016.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments:
Level 1: unadjusted quoted prices in active markets for identical asset or liabilities;
Level 2: inputs other than quoted prices in level 1 that are observable for the asset or liability, either directly (as prices) or
indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following tables set out the Group’s significant financial instruments measured at fair value by level within the fair value
hierarchy:
Figures are in South African Rand millions unless otherwise stated
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Jun 2016 Dec 2015 Jun 2015
Financial assets
measured at fair
value
Environmental
rehabilitation
obligation funds 2,655.5 - - 2,665.5 2,413.9 - - 2,413.9 2,263.9 - - 2,263.9
11. Contingent liabilities
As previously indicated, the claims relating to silicosis and other occupational lung diseases (“OLD”) are being defended.
On 13 May, 2016, the High Court ruled in favour of the applicants and found that there were sufficient common issues to certify two
industry-wide classes: (i) a silicosis class comprising current and former mine workers who have contracted silicosis and the dependents
of mine workers who have died of silicosis; and (ii) a tuberculosis class comprising current and former mine workers who have worked on
the mines for a period of not less than two years and who have contracted pulmonary tuberculosis and the dependents of deceased mine
workers who died of pulmonary tuberculosis. The High Court ordered a two-stage process in the class action: (i) resolve common issues
and allow individuals to opt out, and (ii) allow the individuals to opt in to the class to make claims against the Respondents. The High
Court also decided that claims for general damages will transmit to the estate of any deceased mine worker who dies after the date of
filing of the certification application.
On 3 June 2016, Sibanye and the other Respondents filed an application with the High Court for leave to appeal to the Supreme Court of
Appeal. Arguments in the application for leave to appeal were heard on 23 June 2016. On 24 June 2016, leave to appeal was (i) granted in
respect of the transferability of general damages claims but (ii) denied in respect of certification of silicosis and tuberculosis
classes. On 15 July 2016, Sibanye and the other Respondents each filed petitions with the Supreme Court of Appeal for leave to appeal
against the certification of the two separate classes for silicosis and tuberculosis.
At this stage, Sibanye can neither quantify the potential liability from the action due to the inherent legal and factual uncertainties
with respect to the pending claims and other claims not yet filed against the Group nor can the length of time until finalisation be
estimated.
12. Events after the reporting date
There were no events that could have a material impact on the financial results of the Group after 30 June 2016, other than those
disclosed below:
Dividend declared
An interim dividend in respect of the six months ended 30 June 2016 of 85 cents per share (ZAR) was approved by the Board. This dividend
is not reflected in these financial statements. The interim 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.
The Rustenburg Operations Transaction is still subject to 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, which consent is expected before the end of September 2016.
13. Liquidity
The Group’s current liabilities exceeded its current assets by R4,613.3 million as at 30 June 2016 (31 December 2015: R2,596.6 million
and 30 June 2015: R1,675.0 million). Current liabilities at 30 June 2016 includes the current portion of borrowings of R3,780.3 million
which is due and payable in December 2016 under the R4.5 billion Facilities of R3,249.2 million and other short-term credit facilities
of R531.1 million.
Sibanye generated net cash from operating activities of R2,472.3 million for the six months ended 30 June 2016. The Group has committed
unutilised debt facilities of R3,675.0 million at 30 June 2016.
The Directors believe that the continuing cash generation by its operations and the remaining balance of the Company’s revolving credit
facility will enable the Group to continue to meet its obligations as they fall due.
14. Mineral Reserves and Resources
There were no changes to the Mineral Reserves and Resources from what was previously reported by the Group at 31 December 2015.
The Aquarius acquisition added attributable 4E Reserves of approximately 5.5Moz and attributable 4E Resources of approximately 15.6Moz.
15. Auditors review
The condensed consolidated interim financial statements of Sibanye for the six month period ended 30 June 2016 have been reviewed by the
Company’s auditor, KPMG Inc., on which an unmodified review conclusion was expressed. A copy of their review report is available for
inspection at the Company’s registered office.
The 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
South African Rand For the six months ended
30 June 2016
Group Total Gold Driefontein Kloof Beatrix Cooke Corporate
Revenue 14,704.7 14,017.0 4,752.1 4,457.8 2,926.4 1,878.5 2.2
Underground 13,170.7 12,512.4 4,054.1 4,009.6 2,795.6 1,650.9 2.2
Surface 1,534.0 1,504.6 698.0 448.2 130.8 227.6 -
Operating costs (9,311.8) (8,696.3) (2,767.4) (2,518.8) (1,828.1) (1,582.0) -
Underground (8,460.5) (7,874.0) (2,431.7) (2,315.3) (1,728.7) (1,398.3) -
Surface (851.3) (822.3) (335.7) (203.5) (99.4) (183.7) -
Operating profit 5,392.9 5,320.7 1,984.7 1,939.0 1,098.3 296.5 2.2
Underground 4,710.6 4,638.4 1,622.4 1,694.3 1,066.9 252.6 2.2
Surface 682.3 682.3 362.3 244.7 31.4 43.9 -
Amortisation and depreciation (1,945.4) (1,889.5) (494.3) (565.5) (391.3) (425.7) (12.7)
Net operating profit 3,447.5 3,431.2 1,490.4 1,373.5 707.0 (129.2) (10.5)
Investment income 161.8 145.1 36.2 31.7 17.3 16.6 43.3
Finance expenses (385.2) (353.7) (70.6) (70.5) (38.2) (40.0) (134.4)
Share-based payments (137.4) (137.4) (10.9) (9.4) (6.7) - (110.4)
Exploration and feasibility costs (0.1) (0.1) - - (0.1) - -
Net other costs (1,309.1) (1,123.3) (225.4) (182.2) (151.7) (5.0) (559.0)
Non-recurring items (918.5) (915.1) (4.9) 29.8 2.4 (820.4) (122.0)
Royalties (265.5) (262.7) (102.0) (99.9) (52.3) (8.5) -
Current tax (493.7) (493.6) (203.0) (208.3) (85.5) (0.8) 4.0
Deferred tax (11.7) (15.9) (13.1) (5.7) 9.1 (7.6) 1.4
Profit for the period 88.1 274.5 896.7 859.0 401.3 (994.9) (887.6)
Profit attributable to:
Owners of Sibanye 333.0 519.3 896.7 859.0 401.3 (750.0) (887.6)
Non-controlling interests (244.9) (244.9) - - - (244.9) -
Capital expenditure
Total expenditure (1,761.4) (1,693.3) (468.2) (539.8) (289.2) (113.2) (282.9)
Sustaining capital (334.0) (265.9) (71.5) (85.9) (32.0) (21.8) (54.7)
Ore reserve development (1,142.3) (1,142.3) (379.8) (418.6) (257.0) (86.9) -
Growth projects (285.1) (285.1) (16.9) (35.3) (0.2) (4.5) (228.2)
South African Rand For the three months ended
30 June 2016(1)
Platinum
Total Platinum Kroondal Mile Mimosa Corporate
Revenue 687.7 658.3 29.4 419.6 (419.6)
Underground 658.3 658.3 - 419.6 (419.6)
Surface 29.4 - 29.4 - -
Operating costs (615.5) (586.5) (29.0) (351.5) 351.5
Underground (586.5) (586.5) - (351.5) 351.5
Surface (29.0) - (29.0) - -
Operating profit 72.2 71.8 0.4 68.1 (68.1)
Underground 72.2 71.8 0.4 68.1 (68.1)
Surface - - - - -
Amortisation and depreciation (55.9) (45.9) (0.4) (67.9) 58.3
Net operating profit 16.3 25.9 - 0.2 (9.8)
Investment income 16.7 4.2 0.3 0.5 11.7
Finance expenses (31.5) (0.7) - (3.5) (27.3)
Share-based payments - - - - -
Exploration and feasibility costs - - - - -
Net other costs (185.8) (4.6) (0.2) (1.6) (179.4)
Non-recurring items (3.4) (1.0) - - (2.4)
Royalties (2.8) - - (27.1) 24.3
Current tax (0.1) - - - (0.1)
Deferred tax 4.2 - (0.3) 2.5 2.0
Profit for the period (186.4) 23.8 (0.2) (29.0) (181.0)
Profit attributable to:
Owners of Sibanye (186.4) 23.8 (0.2) (29.0) (181.0)
Non-controlling interests - - - - -
Capital expenditure
Total expenditure (68.1) (67.3) (0.8) (60.7) 60.7
Sustaining capital (68.1) (67.3) (0.8) (60.7) 60.7
Ore reserve development - - - - -
Growth projects - - - - -
United States Dollar For the six months ended
30 June 2016
Group Total Gold Driefontein Kloof Beatrix Cooke Corporate
Revenue 956.1 911.4 309.0 289.8 190.3 122.1 0.1
Underground 856.3 813.6 263.6 260.7 181.8 107.3 0.1
Surface 99.7 97.8 45.4 29.1 8.5 14.8 -
Operating costs (605.4) (565.4) (179.9) (163.7) (118.9) (102.8) -
Underground (550.1) (512.0) (158.1) (150.5) (112.4) (90.9) -
Surface (55.3) (53.4) (21.8) (13.2) (6.5) (11.9) -
Operating profit 350.7 346.0 129.1 126.1 71.4 19.3 0.1
Underground 306.3 301.6 105.5 110.2 69.4 16.4 0.1
Surface 44.4 44.4 23.6 15.9 2.0 2.9 -
Amortisation and depreciation (126.5) (122.9) (32.1) (36.8) (25.4) (27.7) (0.9)
Net operating profit 224.2 223.1 97.0 89.3 46.0 (8.4) (0.8)
Investment income 10.5 9.4 2.4 2.1 1.1 1.1 2.7
Finance expenses (25.0) (23.0) (4.6) (4.6) (2.5) (2.6) (8.7)
Share-based payments (8.9) (8.9) (0.7) (0.6) (0.4) - (7.2)
Exploration and feasibility costs - - - - - - -
Net other costs (85.1) (73.0) (14.7) (11.8) (9.9) (0.3) (36.3)
Non-recurring items (59.7) (59.4) (0.3) 1.9 0.2 (53.3) (7.9)
Royalties (17.3) (17.1) (6.6) (6.5) (3.4) (0.6) -
Current tax (32.1) (32.1) (13.2) (13.5) (5.6) (0.1) 0.3
Deferred tax (0.8) (1.1) (0.9) (0.4) 0.6 (0.5) 0.1
Profit for the period 5.8 17.9 58.4 55.9 26.1 (64.7) (57.8)
Profit attributable to:
Owners of Sibanye 21.7 33.8 58.4 55.9 26.1 (48.8) (57.8)
Non-controlling interests (15.9) (15.9) - - - (15.9) -
Capital expenditure
Total expenditure (114.5) (110.1) (30.4) (35.1) (18.8) (7.4) (18.4)
Sustaining capital (21.7) (17.3) (4.6) (5.6) (2.1) (1.4) (3.6)
Ore reserve development (74.3) (74.3) (24.7) (27.2) (16.7) (5.7) -
Growth projects (18.5) (18.5) (1.1) (2.3) - (0.3) (14.8)
United States Dollar For the three months ended
30 June 2016(1)
Platinum
Total Platinum Kroondal Mile Mimosa Corporate
Revenue 44.7 42.8 1.9 27.3 (27.3)
Underground 42.8 42.8 - 27.3 (27.3)
Surface 1.9 - 1.9 - -
Operating costs (40.0) (38.1) (1.9) (22.9) 22.9
Underground (38.1) (38.1) - (22.9) 22.9
Surface (1.9) - (1.9) - -
Operating profit 4.7 4.7 - 4.4 (4.4)
Underground 4.7 4.7 - 4.4 (4.4)
Surface - - - - -
Amortisation and depreciation (3.6) (3.0) - (4.4) 3.8
Net operating profit 1.1 1.7 - - (0.6)
Investment income 1.1 0.3 - - 0.8
Finance expenses (2.0) - - (0.2) (1.8)
Share-based payments - - - - -
Exploration and feasibility costs - - - - -
Net other costs (12.1) (0.3) - (0.1) (11.7)
Non-recurring items (0.3) (0.1) - - (0.2)
Royalties (0.2) - - (1.8) 1.6
Current tax - - - - -
Deferred tax 0.3 - - 0.2 0.1
Profit for the period (12.1) 1.6 - (1.9) (11.8)
Profit attributable to:
Owners of Sibanye (12.1) 1.6 - (1.9) (11.8)
Non-controlling interests - - - - -
Capital expenditure
Total expenditure (4.4) (4.3) (0.1) (3.9) 3.9
Sustaining capital (4.4) (4.3) (0.1) (3.9) 3.9
Ore reserve development - - - - -
Growth projects - - - - -
The average exchange rate for the six months ended 30 June 2016 was R15.38/US$ and for the three months ended 30 June 2016 was
R14.97/US$.
1 The Aquarius operations’ performance is for the three months ended 30 June 2016 as the Aquarius group was only acquired on
12 April 2016 (refer to note 6).
Segment financial results continued
Figures are in millions unless otherwise stated
United States Dollars For the six months ended 31 December 2015 South African Rand
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) (617.8) (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/feasibility 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$.
Segment financial results continued
Figures are in millions unless otherwise stated
United States Dollars For the six months ended 30 June 2015 South African Rand
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) Other costs (59.1) (21.5) (22.6) (8.4) (18.1) 11.5
(0.3) (0.2) - - (0.6) (1.1) Exploration costs (12.9) (6.6) - (0.5) (1.8) (4.0)
(8.3) - (1.0) (1.3) (1.6) (12.2) Share-based payments (145.0) (19.1) (15.6) (12.2) - (98.1)
(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 taxation (161.7) (152.5) (3.2) (7.7) - 1.7
8.1 5.1 (0.3) (1.4) 2.5 14.0 Deferred taxation 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$.
UNIT COST BENCHMARKING METRICS
Gold Division – Cost benchmarks for the six months ended 30 June 2016, 31 December 2015 and 30 June 2015
Figures are in millions unless otherwise stated
Group Driefontein Kloof Beatrix Cooke Corporate
Operating cost1 Jun 2016 8,696.3 2,767.4 2,518.8 1,828.1 1,582.0 -
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 -
Less: General and admin Jun 2016 (94.0) (34.1) (31.5) (16.8) (11.6) -
Dec 2015 (93.1) (28.3) (26.7) (18.4) (19.7) -
Jun 2015 (80.7) (28.3) (26.9) (17.6) (7.9) -
Plus: Royalty Jun 2016 262.7 102.0 99.9 52.3 8.5 -
Dec 2015 261.2 117.9 69.7 65.4 8.2 -
Jun 2015 139.4 78.9 28.7 23.3 8.5 -
Total cash cost2 Jun 2016 8,865.0 2,835.3 2,587.2 1,863.6 1,578.9 -
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 -
Plus: General and admin Jun 2016 94.0 34.1 31.5 16.8 11.6 -
Dec 2015 93.1 28.3 26.7 18.4 19.7 -
Jun 2015 80.7 28.3 26.9 17.6 7.9 -
Community costs Jun 2016 19.7 8.0 7.2 4.0 0.5 -
Dec 2015 23.8 8.7 5.9 13.7 (4.5) -
Jun 2015 16.9 5.2 3.0 1.3 7.4 -
Share based payments3 Jun 2016 27.0 10.9 9.4 6.7 - -
Dec 2015 129.4 16.0 12.0 11.3 - 90.1
Jun 2015 145.0 19.1 15.6 12.2 - 98.1
Rehabilitation Jun 2016 82.0 (10.6) 24.4 13.1 54.1 1.0
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
Ore reserve development Jun 2016 1,142.3 379.8 418.6 257.0 86.9 -
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 -
Sustaining capital expenditure Jun 2016 211.2 71.5 85.9 32.0 21.8 -
Dec 2015 356.9 165.1 114.4 39.4 38.0 -
Jun 2015 296.9 84.1 111.2 46.7 54.9 -
On-mine exploration Jun 2016 - - - - - -
Dec 2015 8.4 7.3 0.6 0.4 0.1 -
Jun 2015 8.9 6.6 - 0.5 1.8 -
Less: By-product credit Jun 2016 (13.2) (4.6) (3.0) (3.5) (2.1) -
Dec 2015 (12.0) (4.4) (2.7) (3.4) (1.5) -
Jun 2015 (14.8) (4.2) (3.0) (2.4) (5.2) -
Total All-in sustaining costs4 Jun 2016 10,428.0 3,324.4 3,161.2 2,189.7 1,751.7 1.0
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
Plus: Corporate and growth Jun 2016 395.6 16.9 35.3 0.3 4.5 338.6
capital expenditure Dec 2015 249.4 13.9 61.8 - 13.9 159.8
Jun 2015 145.9 4.1 1.9 - 3.7 136.2
Total All-in cost5 Jun 2016 10,823.6 3,341.3 3,196.5 2,190.0 1,756.2 339.6
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
Gold sold kg Jun 2016 23,229 7,873 7,388 4,844 3,124 -
Dec 2015 25,571 9,093 7,471 5,604 3,403 -
Jun 2015 22,204 8,257 6,597 4,501 2,849 -
000’ozs Jun 2016 746.8 253.1 237.5 155.7 100.4 -
Dec 2015 822.1 292.3 240.2 180.2 109.4 -
Jun 2015 713.9 265.5 212.1 144.7 91.6 -
Total cash cost R/kg Jun 2016 381,635 360,130 350,189 384,723 505,410 -
Dec 2015 339,017 300,319 337,692 326,481 465,971 -
Jun 2015 357,508 320,165 348,507 358,609 484,872 -
US$/oz Jun 2016 772 728 708 778 1,022 -
Dec 2015 775 686 772 746 1,065 -
Jun 2015 935 838 912 938 1,268 -
All-in sustaining cost R/kg Jun 2016 448,922 422,253 427,883 452,044 560,723 -
Dec 2015 411,795 370,043 416,905 389,097 523,244 -
Jun 2015 434,769 377,837 436,774 432,482 564,058 -
US$/oz Jun 2016 908 854 865 914 1,134 -
Dec 2015 941 846 953 889 1,196 -
Jun 2015 1,137 988 1,143 1,131 1,476 -
All-in cost R/kg Jun 2016 465,952 424,400 432,661 452,106 562,164 -
Dec 2015 421,548 371,572 425,177 389,097 527,329 -
Jun 2015 441,348 378,334 437,062 432,482 565,356 -
US$/oz Jun 2016 942 858 875 914 1,137 -
Dec 2015 963 849 972 889 1,205 -
Jun 2015 1,155 990 1,143 1,131 1,479 -
Average exchange rates for the six months ended 30 June 2016, 31 December 2015 and 30 June 2015 were R15.38/US$, R13.61/US$ and
R11.89/US$, respectively.
Figures may not add as they are rounded independently.
Total cash cost is calculated in accordance with the Gold Institute Industry Standard.
1 Operating costs – All gold mining related costs before amortisation/depreciation, taxation and non-recurring items.
2 Total cash cost – Operating costs less off-mine costs, which includes general and administration costs, as detailed in the table
above.
All-in costs 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 general and administration 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
Gold Division – Salient features and cost benchmarks for the quarters ended 30 June 2016 and 31 March 2016
Figures are in millions unless otherwise stated
Total Gold Driefontein Kloof Beatrix Cooke
Under- Under- Under- Under- Under-
Group ground Surface ground Surface ground Surface ground Surface ground Surface
Operating results
Tons milled/treated 000’ton Jun 2016 5,029 2,091 2,938 496 946 496 598 762 326 337 1,068
Mar 2016 4,978 1,975 3,003 537 953 441 593 656 425 341 1,032
Yield g/t Jun 2016 2.39 5.13 0.43 6.84 0.66 7.01 0.59 3.25 0.30 4.11 0.19
Mar 2016 2.25 5.06 0.41 6.18 0.57 7.17 0.66 3.28 0.28 3.99 0.17
Gold produced/sold kg Jun 2016 12,008 10,735 1,273 3,394 620 3,479 352 2,477 98 1,385 203
Mar 2016 11,221 9,991 1,230 3,318 541 3,163 394 2,149 120 1,361 175
000’oz Jun 2016 386.1 345.1 40.9 109.1 19.9 111.8 11.3 79.6 3.2 44.3 6.5
Mar 2016 360.8 321.2 39.6 106.7 17.4 101.7 12.7 69.1 3.9 43.7 5.6
Gold price received R/kg Jun 2016 606,379 605,556 607,152 605,515 606,612
Mar 2016 600,267 601,555 599,353 602,556 595,768
US$/oz Jun 2016 1,260 1,258 1,261 1,258 1,260
Mar 2016 1,182 1,185 1,181 1,187 1,174
Operating cost R/ton Jun 2016 893 1,940 148 2,509 185 2,363 179 1,182 151 2,196 96
Mar 2016 845 1,932 129 2,211 168 2,592 163 1,262 118 1,930 79
Total cash cost R/kg Jun 2016 378,398 358,445 340,277 373,282 529,030
Mar 2016 385,117 361,907 360,866 397,708 481,120
US$/oz Jun 2016 786 745 707 776 1,099
Mar 2016 759 713 711 783 948
Operating margin % Jun 2016 38 38 44 39 53 45 50 40 17 12 17
Mar 2016 38 36 47 41 51 40 59 36 30 19 22
All-in sustaining cost R/kg Jun 2016 443,912 422,646 421,274 441,786 585,390
Mar 2016 454,282 421,845 435,001 463,729 535,156
US$/oz Jun 2016 922 878 875 918 1,216
Mar 2016 895 831 857 913 1,054
All-in cost R/kg Jun 2016 467,214 424,664 427,069 441,903 586,461
Mar 2016 464,602 424,151 438,712 463,729 536,979
US$/oz Jun 2016 971 882 887 918 1,219
Mar 2016 915 836 864 913 1,058
All-in cost margin % Jun 2016 23 30 30 27 3
Mar 2016 23 29 27 23 10
Ore reserve development R’mil Jun 2016 591.3 188.7 223.3 136.6 42.7
Mar 2016 550.9 191.1 195.2 120.4 44.2
Sustaining capital Jun 2016 138.9 51.8 52.9 21.8 12.4
Mar 2016 72.3 19.7 33.0 10.2 9.4
Corporate and projects1 Jun 2016 171.4 8.0 22.2 0.2 1.7
Mar 2016 115.8 8.9 13.2 - 2.8
Total capital expenditure R’mil Jun 2016 901.6 248.5 298.4 158.6 56.8
Mar 2016 739.0 219.7 241.4 130.6 56.4
US$’mil Jun 2016 59.7 16.5 19.8 10.5 3.8
Mar 2016 46.8 13.9 15.3 8.3 3.6
Average exchange rates for the quarters ended 30 June 2016 and 31 March 2016 were R14.97/US$ and R15.79/US$, respectively.
Figures may not add as they are rounded independently.
1 Corporate and projects includes capital expenditure at Burnstone of R139.3 million (US$9.2 million) for the quarter ended
30 June 2016 and R88.9 million (US$5.6 million) for the quarter ended 31 March 2016.
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 30 June 2016 Quarter ended 31 March 2016 Six months to 30 June 2016
Reef Carbon leader Main VCR Carbon leader Main VCR Carbon leader Main VCR
Advanced (m) 1,709 841 943 1,653 702 1,307 3,362 1,543 2,250
Advanced on reef (m) 293 275 107 214 173 135 507 448 242
Channel width (cm) 43 92 130 81 53 52 59 77 87
Average value (g/t) 30.4 5.5 31.3 14.0 9.6 58.5 20.9 6.6 40.4
(cm.g/t) 1,296 507 4,051 1,139 509 3,062 1,230 508 3,500
Kloof Quarter ended 30 June 2016 Quarter ended 31 March 2016 Six months to 30 June 2016
Reef VCR Kloof Main Libanon VCR Kloof Main Libanon VCR Kloof Main Libanon
Advanced (m) 803 848 213 2,588 723 666 87 2,240 1,526 1,514 300 4,828
Advanced on reef (m) 284 93 22 499 210 144 10 520 494 237 32 1,019
Channel width (cm) 192 68 108 113 173 133 138 117 184 108 117 115
Average value (g/t) 6.9 9.5 13.4 22.0 9.0 5.1 6.8 21.6 7.7 6.1 11.0 21.8
(cm.g/t) 1,322 642 1,441 2,480 1,563 682 932 2,530 1,425 666 1,286 2,506
Beatrix Quarter ended 30 June 2016 Quarter ended 31 March 2016 Six months to 30 June 2016
Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Advanced (m) 4,694 868 4,176 947 8,870 1,815
Advanced on reef (m) 1,167 203 1,358 249 2,525 452
Channel width (cm) 132 101 115 126 123 115
Average value (g/t) 7.1 14.8 8.1 11.7 7.6 12.9
(cm.g/t) 934 1,495 938 1,470 936 1,481
Cooke Quarter ended 30 June 2016 Quarter ended 31 March 2016 Six months to 30 June 2016
Elsburg Elsburg Kimberly Elsburg Elsburg Kimberly Elsburg Elsburg Kimberly
Reef VCR Reefs Massives Reefs VCR Reefs Massives Reefs VCR Reefs Massives Reefs
Advanced (m) 305 1,372 69 229 379 1,675 10 146 684 3,047 173 375
Advanced on reef (m) 149 564 29 59 211 618 96 44 360 1,182 125 103
Channel width (cm) 227 282 384 296 281 250 343 205 258 265 352 257
Average value (g/t) 3.4 3.8 3.2 4.2 2.2 4.1 5.2 3.2 2.6 4.0 4.7 3.9
(cm.g/t) 771 1,060 1,232 1,240 622 1,037 1,784 665 684 1,048 1,654 994
Kroondal Quarter ended 30 June 2016*
Reef Kopaneng Simunye Bambanani Kwezi K6
Advanced (m) 537 473 821 650 934
Advanced on reef (m) 529 465 745 384 934
Channel width (cm) 211 192 113 69 167
Height (cm) 235 226 228 231 232
Average value (g/t) 2.18 2.32 2.21 1.47 2.89
(cm.g/t) 513 523 505 340 670
* Development data since acquisition date.
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*
Jiyu Yuan#
Susan van der Merwe*
Jerry Vilakazi*
*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.
25 August 2015
Date: 25/08/2016 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
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information disseminated through SENS.
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