Wrap Text
Operating and financial results for the 6 months and year ended 31 December 2016
Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN: ZAE000173951
Issuer code: SGL
("Sibanye Gold", "Sibanye" or "the Company")
Operating and Financial Results
For the six months and financial year ended 31 December 2016
WESTONARIA 23 February 2017: Sibanye Gold Limited ("Sibanye" or the "Group") (JSE: SGL & NYSE: SBGL) is pleased to report
operating and financial results for the six months ended 31 December 2016, and reviewed condensed consolidated
preliminary financial statements for the year ended 31 December 2016.
SALIENT FEATURES FOR THE YEAR ENDED 31 DECEMBER 2016
- Record operating profit of R10.5 billion (US$717 million)
- Headline earnings of R2.5 billion (US$169 million) - represents a 269% increase year-on-year
- Normalised earnings per share increased 196% to 397 cents (ZAR) (27 US cents)
- Total dividend of 145 cents per share (ZAR) for the year, representing 37% of normalised earnings
SALIENT FEATURES FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
- Platinum Division delivers operating profit of R304 million (US$21 million)
- Rustenburg operations return to profitability with a R74 million (US$5 million) operating profit for November and December
- Kroondal and Mimosa Operations continued their excellent performance
- Gold production was 2% higher than for the first half of 2016 at 23,805kg (765,400oz)
- Final dividend, number 8 of 60 cents per share (ZAR) declared
United States Dollars South African Rand
Year Six months ended Six months ended Year
Dec Dec Dec June Dec Dec June Dec Dec Dec
2015 2016 2015 2016 2016 KEY STATISTICS 2016 2016 2015 2016 2015
Gold Division
1,536.0 1,512.2 822.1 746.8 765.4 000'oz Gold produced kg 23,805 23,229 25,571 47,034 47,775
1,160 1,242 1,115 1,220 1,268 US$/oz Revenue R/kg 569,535 603,427 487,736 586,319 475,508
65 59 61 57 61 US$/t Operating cost R/t 854 869 839 862 825
497.0 691.7 298.0 346.0 345.7 US$m Operating profit Rm 4,834.6 5,320.7 3,971.0 10,155.3 6,337.0
28 37 32 38 36 % Operating margin % 36 38 32 37 28
1,031 954 941 908 1,005 US$/oz All-in sustaining cost R/kg 451,352 448,922 411,795 450,152 422,472
Platinum Division - attributable(1)
- 238,662 - 51,346 187,316 oz Platinum produced kg 5,826 1,597 - 7,423 -
- 420,763 - 92,773 327,990 oz 4E PGM(2) production kg 10,201 2,886 - 13,087 -
- 832 - 832 874 US$/4Eoz Average basket price R/4Eoz 12,204 12,499 - 12,209 -
- 25.6 - 4.7 20.9 US$m Operating profit Rm 304.1 72.2 - 376.3 -
- 10 - 10 10 % Operating margin % 10 10 - 10 -
- 701 - 683 734 US$/4Eoz Operating cost R/4Eoz 10,260 10,268 - 10,296 -
Group
56.2 252.2 41.1 21.7 230.5 US$m Basic earnings Rm 3,368.6 333.0 537.1 3,701.6 716.9
52.9 169.4 38.6 72.4 97.0 US$m Headline earnings Rm 1,372.7 1,113.9 505.0 2,486.6 674.6
95.7 249.1 75.2 139.9 109.2 US$m Normalised earnings Rm 1,505.0 2,152.0 976.5 3,657.0 1,219.8
10 27 8 15 12 cps Normalised earnings cps 163 234 107 397 134
(1) The Platinum Division's results for the year ended 31 December 2016 are for the nine months since acquisition for Aquarius and for two months since acquisition for the Rustenburg Operations.
(2) Platinum Group Metals of which 4E represents platinum, palladium, rhodium and gold.
Stock data for the six months ended 31 December 2016 JSE Limited - (SGL)
Number of shares in issue Price range per ordinary share ZAR21.98 to ZAR70.23
- at end December 2016 929,004,342 Average daily volume 6,213,336
- weighted average 924,379,018 NYSE - (SBGL); one ADR represents four ordinary shares
Free Float 80% Price range per ADR US$6.41 to US$20.78
Bloomberg/Reuters SGLS / SGLJ.J Average daily volume 1,635,498
STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER OF SIBANYE
"The new safety structures and interventions announced in August 2016, have thus far been effective, with the Group
safety performance much improved in the second half of the year. The safety performance for the Gold Division for the
six months ended 31 December 2016, compared with the previous period included:
- 50% improvement in the FIFR to 0.07 per million man hours;
- 27% improvement SIFR to 3.72 per million man hours; and
- 19% improvement in the LDIFR to 6.25 per million man hours.
The Sibanye Group delivered a solid operating result. The Gold Division benefited from a relatively high rand gold price
for most of the year. Unfortunately margins towards the end of the year have shrunk considerably due to a substantially
lower rand gold price.
Operating profit for the Gold Division for the six months ended 31 December 2016, was R4,835 million (US$346 million),
22% higher than for the comparable period in 2015, driven primarily by a 17% increase in the average rand gold price
received to R569,535/kg (US$1,268/oz) compared with the same period in 2015. While the average rand gold price
during the last six months of 2016 was 9% lower than for the six months ended 30 June 2016. Operating profit from the
Gold Division, for the year ended 31 December 2016 of R10,155 million (US$692 million), 60% higher than for the previous year.
Operating profit for the Platinum Division for the six months ended 31 December 2016, of R304 million (US$21 million)
reflects a positive contribution from the Rustenburg Operations from 1 November 2016 and another good performance
at the Kroondal and Mimosa Operations. The operating margin for the Platinum Division increased to 10%.
Normalised earnings of R1,505 million (US$109 million) for the six months ended 31 December 2016, was R528 million
(US$34 million) higher than the R977 million (US$75 million) reported for the comparative period in 2015. Normalised
earnings of R3,657 million (US$249 million) for the year, were also significantly higher than in 2015 (R1,220 million and
US$96 million).
Consistent with Sibanye's dividend policy, the Board has declared a final dividend of 60 cents per share (R560 million)
equivalent to 37% of normalised earnings. The comparative final dividend declared in 2015 was 90 cents per share
(R916 million). The total dividend of 145 cents per share (R1,345 million) for the year ended 31 December 2016 represents
a dividend yield of 5%.
GOLD DIVISION
For the six months ended 31 December 2016, total gold production from Sibanye's Gold Division was 23,805/kg (765,400oz).
While this is similar to that produced during the six months ended 30 June 2016, it is 7% lower than the comparative period in
2015, primarily due to the cessation of underground mining operations at Cooke 4 mine during the period, ongoing
engineering-related bottlenecks at Driefontein and the impact of severe storm activity in the December quarter, which
resulted in a number of power outages.
Gold sales were marginally lower than production at 23,676kg (761,200oz), which resulted in 129kg (4,100oz) remaining unsold
at year end. Accordingly, operating costs were credited R43 million (US$3 million).
A stronger US dollar gold price, together with a weaker rand/dollar exchange rate, resulted in a 17% year-on-year increase in
the average rand gold price from R487,736/kg to R569,535/kg, offsetting the lower production, with revenue increasing by 8%
to R13,484 million from R12,472 million.
Unit costs reflect the decline in production with total cash cost (TCC) and All-in sustaining cost (AISC), increasing by 10% to
R372,504/kg (US$829/oz) and R451,352/kg (US$1,005/oz) respectively year-on-year. An increase in project expenditure resulted
in All-in cost (AIC) increasing by 13% to R476,774/kg (US$1,062/oz). Margins of 35% (TCC), 21% (AISC) and 16% (AIC) were
approximately three percentage points higher than for the comparative period in 2015, driven by the higher gold price.
Underground production at Driefontein for the six months ended 31 December 2016, was 9% lower year-on-year at 7,208kg
(231,700oz) due to various engineering issues, power outages and a seismic event, which affected volumes from the
Masakhane, Ya Rona and Hlanganani shafts. This was despite the yield increasing from 6.69g/t to 7.05g/t due to significantly
improved mining quality factors. As a result of the lower production, TCC and AISC increased by 17% and 14% to R350,875/kg
(US$781/oz) and R420,763/kg (US$937/oz), respectively.
Kloof underground production was 3% higher year-on-year at 7,062kg (227,000oz) for the second half of 2016, as a result of a
1% increase in throughput and a 2% improvement in the average yield to 6.59g/t, driven largely by a 13% improvement in the
Mine Call Factor (MCF). Costs continued to be well managed with TCC 2% lower at R331,818/kg (US$739/oz) and AISC
marginally higher at R426,233/kg (US$949/oz) mainly due to an increase in capital expenditure.
Beatrix's production six months under review was 7% lower year-on-year at 4,975kg (159,900oz) due to a 7% decline in the
average yield to 3.45g/t. This decrease was primarily due to lower volumes mined and processed from the higher grade
Beatrix 4 shaft. Throughput was similar at 1.44 Mt.
Underground production from Cooke for the second half of 2016 was 30% lower year-on-year mainly due to the closure of
Cooke 4 shaft in September 2016. Tonnes milled decreased by 42%, while the average grade increased from 3.62g/t to 4.39g/t.
Gold production from the surface operations increased by 8% for the comparable six months in 2015, mainly due to an
increase in volume from Kloof surface sources. Following the cessation of underground operation at the Cooke 4 shaft, Kloof
utilised spare capacity at the Cooke 4 plant to mill additional volumes of lower grade Venterspost surface material, resulting
in an additional 14kg (450oz) of production or an increase of 23%. The other surface operations were similar year-on-year.
PLATINUM DIVISION
The Platinum Division delivered attributable PGM production of 327,990oz (4E) for the six months ended 31 December 2016.
Average operating costs for the Division were well managed at R10,260/4Eoz (US$734/4Eoz), resulting in an 11% cash
operating margin, despite the average basket price remaining subdued at R12,204/oz (4E) (US$874/oz (4E). The Platinum
Division recorded a R304 million (US$21 million) operating profit, excluding the equity accounted attributable operating profit
of R186 million from Mimosa.
Particularly pleasing was the turnaround at the Rustenburg Operations, which were acquired effective from 1 November
2016. Attributable production from the Rustenburg Operations for November 2016 and December 2016 was 137,787oz (4E),
which was in line with our expectations. While not owned by Sibanye for the full December 2016 quarter, for comparative
purposes the Rustenburg Operations produced approximately 210,000oz (4E) for the quarter, an improvement of 7% from the
previous quarter and 9% more than for the comparable quarter in 2015. Operating cost for the Rustenburg Operations
averaged R11,485/4Eoz (US$822/4Eoz) for November 2016 and December 2016, which, while consistent with our expectations,
is unsustainable and highlights the necessity and importance of realising the operating and cost synergies identified during
the due diligence to ensure the sustainability of the Rustenburg Operations.
Attributable PGM production of 190,203oz (4E) from Kroondal, Mimosa and Platinum Mile was above guidance for both the
September and December 2016 quarter. The solid operational performance at Kroondal through the period enabled
sufficient stockpiles to be built to support planned milling operations throughout the annual 11-day Christmas break, for the
first time in four years. Due to operational outperformance and good cost control, operating costs at all these operations for
the six months ended 31 December 2016 were lower than for the previous six months, with unit costs at Kroondal declining by
3%, Mimosa by 13% and Platinum Mile by 48%. Platinum Mile delivered a 39% operating margin for the December half year,
a notable achievement. Attributable capital expenditure from Kroondal and Platinum Mile for the six months was R109 million
(US$8 million).
Following the successful integration of the Aquarius Operations, the integration of the Rustenburg Operations is now underway
and according to schedule. The Group has previously highlighted that it expects to realise operational synergies of
approximately R800 million per annum from the combined Aquarius and Rustenburg operations over a three year period. The
first steps in realising these synergies have begun, with approximately R400 million in synergies expected to be realised by
year-end. A Section 189 process at the Platinum Division was announced on 26 January 2017.
INTERNAL GROWTH PROJECTS
Expenditure on organic growth projects for the year ended 31 December 2016 was R762 million (US$52 million), 70% of which
was spent at the Burnstone project. As a result of the recent strength in the rand and its impact on operating margins for the
gold industry, organic project capital expenditure is being reviewed. This includes reviewing the planned 2017 capital profile
at the UG2 project at Rustenburg, the Burnstone project and the West Rand Tailings Retreatment Project (WRTRP). Certain
projects may be deferred or placed on care and maintenance until commodity prices sustainably improve and/or exchange
rate volatility has subsided.
CORPORATE ACTIVITY
The Stillwater Acquisition
Good progress has been made regarding the proposed acquisition of Stillwater Mining Company Limited (Stillwater), which
was announced on 9 December 2016 (Transaction). The acquisition of this Tier 1, low cost PGM producer is expected to
significantly enhance Sibanye's asset base and create a globally competitive South African mining champion.
In addition to expanding Sibanye's portfolio with high-grade reserves that currently support over 25 years of mine life, Stillwater
also offers near-term, low-cost organic growth through the Blitz Project, medium term growth through the Lower East Boulder
project and longer term opportunities through the substantial unmined strike extensions of the current operations.
The world class downstream processing facilities will provide Sibanye with a mine-to-market PGM business and a steady state
recycling operation that has consistent margins and strategic insight into the PGM markets. Ultimately, this transaction will
attractively position Sibanye's Platinum Division on the global cost curve, enhancing our ability to sustain and pay industry-
leading dividends.
On 3 February 2017, an update on the transaction was released which indicated that a General Meeting of shareholders to
approve the proposed Transaction will be held in in mid-April 2017, followed by an equity capital raise in the form of a rights
offer with a minimum value of US$750 million and a targeted value of US$1.3 billion.
OUTLOOK
Gold production for the year ending 31 December 2017 is forecast between 47,000kg and 48,000kg (1.51Moz and 1.54Moz),
with TCC forecast between R385,000/kg and R395,000/kg (US$890/oz to US$910/oz) and AISC of between R470,000/kg and
R480,000/kg (US$1,080/oz to US$1,105/oz). Total capital expenditure for 2017, including Burnstone, is currently planned at
approximately R4.0 billion (US$300 million). The dollar costs are based on an average exchange rate of R13.50/US$.
The Platinum Division is forecast to produce between 1.05Moz and 1.10Moz (4E). Operating cost for the Kroondal Operation
is forecast at R10,500/4Eoz (US$780/4Eoz), the Mimosa Operation at R11,400/4Eoz (US$845/4Eoz), the Platinum Mile Operation
at R8,500/4Eoz (US$615/4Eoz) and the Rustenburg Operation at R11,800/4Eoz (US$875/4Eoz). The total operating cost for the
Platinum Division is forecast at R11,150/4Eoz to R11,450/4Eoz (US$825/4Eoz - US$850/4Eoz). The expected capital expenditure
for 2017 is planned at approximately R900 million (US$67 million) or R780/4Eoz to R850/4Eoz. Marketable (saleable) chrome
production from Rustenburg is forecast at approximately 400,000t.
The ongoing strength in the rand and relatively muted consensus outlook for the gold price will impact the South African
mining industry operating margins in 2017, including those of Sibanye's South African Gold and Platinum Divisions. As
mentioned, in light of these factors and the likely impact on cash flow, management is re-evaluating its current growth capital
expenditure plans.
23 February 2017
Neal Froneman
Chief Executive Officer
SALIENT FEATURES AND COST BENCHMARKS
Gold Division - Salient features and cost benchmarks for the six months ended
31 December 2016, 30 June 2016 and 31 December 2015
Gold Division Driefontein Kloof Beatrix Cooke
Under- Under- Under- Under- Under-
Total ground Surface ground Surface ground Surface ground Surface ground Surface
Tonnes milled/treated 000't Dec 2016 10,174 4,018 6,156 1,022 2,017 1,072 1,476 1,444 720 480 1,943
Jun 2016 10,007 4,066 5,941 1,033 1,899 937 1,191 1,418 751 678 2,100
Dec 2015 10,129 4,539 5,590 1,203 1,764 1,064 996 1,441 756 831 2,074
Yield g/t Dec 2016 2.34 5.31 0.40 7.05 0.52 6.59 0.51 3.45 0.31 4.39 0.22
Jun 2016 2.32 5.10 0.42 6.50 0.61 7.09 0.63 3.26 0.29 4.05 0.18
Dec 2015 2.52 5.13 0.41 6.69 0.60 6.44 0.62 3.72 0.32 3.62 0.19
Gold produced kg Dec 2016 23,805 21,352 2,453 7,208 1,049 7,062 760 4,975 222 2,107 422
Jun 2016 23,229 20,726 2,503 6,712 1,161 6,642 746 4,626 218 2,746 378
Dec 2015 25,571 23,271 2,300 8,043 1,050 6,852 619 5,364 240 3,012 391
000'oz Dec 2016 765.4 686.5 78.9 231.8 33.7 227.1 24.4 159.9 7.2 67.7 13.6
Jun 2016 746.8 666.3 80.5 215.8 37.3 213.5 24.0 148.7 7.0 88.3 12.2
Dec 2015 822.1 748.2 73.9 258.6 33.7 220.3 19.9 172.5 7.7 96.8 12.6
Gold price received R/kg Dec 2016 569,535 568,824 569,209 569,078 589,277
Jun 2016 603,427 603,595 603,384 604,129 601,312
Dec 2015 487,736 487,078 488,583 488,276 486,747
US$/oz Dec 2016 1,268 1,266 1,267 1,267 1,312
Jun 2016 1,220 1,221 1,220 1,222 1,216
Dec 2015 1,115 1,113 1,117 1,116 1,112
Operating cost R/t Dec 2016 854 1,946 142 2,395 188 2,150 155 1,273 120 2,558 93
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
Operating margin % Dec 2016 36 36 38 40 37 43 47 35 32 2 25
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
Total cash cost(1) R/kg Dec 2016 372,504 350,875 331,818 378,718 555,838
Jun 2016 381,635 360,130 350,189 384,723 505,410
Dec 2015 339,017 300,319 337,692 326,481 465,971
US$/oz Dec 2016 829 781 739 843 1,238
Jun 2016 772 728 708 778 1,022
Dec 2015 775 686 772 746 1,065
All-in sustaining cost(1) R/kg Dec 2016 451,352 420,763 426,233 453,454 623,550
Jun 2016 448,922 422,253 427,883 452,044 560,723
Dec 2015 411,795 370,043 416,905 389,097 523,244
US$/oz Dec 2016 1,005 937 949 1,010 1,388
Jun 2016 908 854 865 914 1,134
Dec 2015 941 846 953 889 1,196
All-in cost(1) R/kg Dec 2016 476,774 425,315 438,392 454,320 637,927
Jun 2016 465,952 424,400 432,661 452,106 562,164
Dec 2015 421,548 371,572 425,177 389,097 527,329
US$/oz Dec 2016 1,062 947 976 1,012 1,420
Jun 2016 942 858 875 914 1,137
Dec 2015 963 849 972 889 1,205
All-in cost margin % Dec 2016 16 25 23 20 (11)
Jun 2016 23 30 28 25 7
Dec 2015 14 24 13 20 (8)
Total capital expenditure(2) Rm Dec 2016 2,130.9 583.4 764.4 339.2 136.0
Jun 2016 1,693.3 468.2 539.8 289.2 113.2
Dec 2015 1,787.9 579.1 598.7 300.7 154.8
US$ mil Dec 2016 150.4 41.2 53.8 24.0 9.6
Jun 2016 110.1 30.4 35.1 18.8 7.4
Dec 2015 131.4 43.1 43.9 21.8 11.2
Average exchange rates for the six months ended 31 December 2016, 30 June 2016 and 31 December 2015 were R13.97/US$, R15.38/US$ and R13.61/US$, respectively.
Figures may not add as they are rounded independently.
(1) Total cost, All-in sustaining cost and All-in cost are defined in the Gold Division - Unit Cost Benchmarking Metrics included elsewhere in this report.
(2) Included in total capital expenditure is expenditure of R307.9 million (US$21.8 million), R282.9 million (US$18.4 million) and R154.6 million (US$11.4 million) for the six months ended
31 December 2016, 30 June 2016 and 31 December 2015, respectively, the majority of which was spent on our growth project, Burnstone.
Platinum Division - Salient features and cost benchmarks for the six months ended
31 December 2016 and 30 June 2016 covering periods from the relevant acquisition dates(1).
Platinum Division - attributable(1) Kroondal Mimosa Platinum Rustenburg
Mile
Under- Under
Total ground Surface Attributable Attributable Surface ground Surface
Tonnes milled/treated 000't Dec 2016 8,920 3,690 5,230 1,801 685 4,236 1,204 994
Jun 2016 2,692 1,259 1,433 932 327 1,433 - -
Plant head grade g/t Dec 2016 1.74 3.06 0.82 2.47 3.57 0.65 3.65 1.53
Jun 2016 1.65 2.78 0.65 2.50 3.57 0.65 - -
Plant recoveries % Dec 2016 65.55 82.26 21.40 82.13 78.39 12.54 84.54 37.42
Jun 2016 65.09 80.15 8.58 80.96 78.54 8.58 - -
PGM 4E production(2) 4Eoz Dec 2016 327,990 298,576 29,414 117,520 61,585 11,098 119,471 18,316
Jun 2016 92,773 90,198 2,575 60,707 29,491 2,575 - -
Average PGM 4E basket price R/4Eoz Dec 2016 12,204 12,197 12,277 12,324 12,590 12,300 11,870 12,263
Jun 2016 12,499 12,491 12,769 12,578 12,313 12,769 - -
US$/4Eoz Dec 2016 874 873 879 882 901 880 850 878
Jun 2016 832 831 846 836 822 846 - -
Operating cost R/t Dec 2016 377 861 36 613 902 15 1,209 128
Jun 2016 354 735 19 630 1,035 19 - -
US$/t Dec 2016 27 62 3 44 65 1 87 9
Jun 2016 24 49 1 42 69 1 - -
Operating margin % Dec 2016 11 8 35 16 23 39 1 33
Jun 2016 10 11 1 11 16 1 - -
Operating cost(3) R/4Eoz Dec 2016 10,260 10,639 6,411 9,388 10,028 5,569 12,185 6,923
Jun 2016 10,268 10,256 10,660 9,683 11,482 10,660 - -
US$/4Eoz Dec 2016 734 762 459 672 718 399 872 496
Jun 2016 683 682 707 642 766 707 - -
Total capital expenditure Rm Dec 2016 356.8 356.3 0.5 108.5 99.1 0.5 148.7 -
Jun 2016 128.8 128.0 0.8 67.3 60.7 0.8 - -
US$ mil Dec 2016 24.8 24.8 - 7.7 7.0 - 10.1 -
Jun 2016 8.3 8.2 0.1 4.3 3.9 0.1 - -
(1) Platinum Division includes the attributable operations of Kroondal (50%), Mimosa (50%), Platinum Mile surface operation and Rustenburg. Kroondal, Mimosa and Platinum Mile
are included in the six months ended 30 June 2016 for three months since acquisition, and Rustenburg is included in the six months ended 31 December 2016 for two months
since acquisition.
(2) Production per product
Six months ended
Dec 2016 Jun 2016
Platinum 187,316 51,346
Palladium 105,134 31,022
Rhodium 27,586 7,996
Gold 7,954 2,409
PGM4E production (4Eoz) 327,990 92,773
Ruthenium 43,172 12,186
Iridium 10,085 3,079
Total 381,247 108,038
(3) Operating costs are all mining related costs before amortisation and depreciation, royalties, taxation and non-recurring items.
FINANCIAL AND OPERATING REVIEW OF THE GROUP
For the six months ended 31 December 2016
compared with the six months ended
31 December 2015
REVENUE
Revenue increased by 33% to R16,536 million from
R12,472 million. This included first time revenue from the newly
acquired Platinum Division of R3,052 million. The balance of
the increase of R1,012 million represents an increase of 8% for
the Gold Division. This increase was due to a 17% increase in
the rand gold price, offsetting the decrease in gold sales
partly due to the cessation of mining at Cooke 4.
OPERATING COSTS
Operating costs, including R2,748 million at the Platinum
Division, increased by 34% to R11,397 million. Costs at the
Gold Division were well controlled and showed an increase
of 2% to R8,650 million from R8,501 million, despite above
inflation increases on electricity and labour costs. These
increases were partly offset by the cessation of mining at
Cooke 4. Gold production of 129kg was unsold at year end
due to timing differentials, resulting in a credit to operating
costs of R43 million.
OPERATING PROFIT
Operating profit for the Group was 29% higher at
R5,139 million, from R3,971 million for the comparable period
in 2015. The Group operating margin remains robust at 31%,
while the operating margin at the Gold Division increased
from 32% to 36%.
CAPITAL EXPENDITURE
Capital expenditure of R2,131 million at the Gold Division was
19% higher year-on-year largely due to expenditure of
R461 million on Burnstone and other projects, approved in 2015.
Sustaining capital expenditure at the Gold Division was
higher at R418 million due to the timing of winder and
technical upgrades as well as energy saving projects. Ore
reserve development capital (ORD) was similar year-on-year
at R1,252 million.
Attributable capital expenditure at the Platinum Division was
R259 million for the six months ended 31 December 2016 of
which the majority was spent on conveyor installations.
AMORTISATION AND DEPRECIATION
Amortisation and depreciation of R2,097 million was
marginally higher than for the comparable period in 2015.
This included an attributable R171 million from the
consolidation of the Platinum Division, partly offset by lower
amortisation and depreciation from the Gold Division,
primarily due to the impairment of Cooke 4.
FINANCE EXPENSES
Finance expenses increased from R299 million to R518 million.
This increase was due to a R132 million increase in interest
paid following an increase in gross debt required to fund the
acquisition of the Aquarius and Rustenburg Operations.
Sibanye's average gross debt outstanding (excluding the
Burnstone Debt) was approximately R6,300 million during the
second half of 2016, compared with R3,600 million for the
comparable period in 2015.
In addition, there was a R48 million increase in the
environmental rehabilitation obligation accretion expenses
mainly due to the acquisition of Aquarius and the Rustenburg
Operations, which added R35 million, and new disturbances.
SHARE OF RESULTS OF EQUITY-ACCOUNTED INVESTMENTS
The R98 million gain from share of results of equity-accounted
investments, was primarily due to Sibanye's share of losses of
R41 million relating to its 33.1% interest in Rand Refinery, and
share of gains of R144 million from its attributable share in Mimosa.
For additional information of Sibanye's equity-accounted
investments see note 9 of the condensed consolidated
preliminary financial statements included elsewhere in this report.
GAIN AND LOSS ON FINANCIAL INSTRUMENTS
The R144 million net gain for the six months ended
31 December 2016 compares with a R255 million net loss on
financial instruments for the six months ended 31 December
2015. This primarily consists of a R105 million fair value gain
(31 December 2015: R96 million fair value loss) related to the
share-based payment obligations, a R45 million fair value
gain (31 December 2015: Rnil) on the Cooke hedges, a
R21 million fair value gain (31 December 2015: Rnil) on the
"purchase of concentrate" debtor acquired on acquisition
of the Rustenburg Operations, and a R29 million loss
(31 December 2015: R163 million loss) on revised estimated
cash flows of the Burnstone Debt.
For additional information of the gain and loss on financial
instruments see note 4 of the condensed consolidated
preliminary financial statements included elsewhere in this report.
GAIN AND LOSS ON FOREIGN EXCHANGE DIFFERENCES
The gain on foreign exchange differences of R182 million was
mainly due to exchange rate gains of R124 million on the
Burnstone Debt and R98 million on the US$350 million
revolving credit facility, partly offset by the effect of
exchange rate fluctuations on other financial assets and
financial liabilities of R40 million.
NON-RECURRING ITEMS
GAIN ON ACQUISITION
A gain on acquisition of R2.4 billion arose on the acquisition
of the Rustenburg Operations.
For additional information on the gain on acquisition see
note 8 of the condensed consolidated financial statements
included elsewhere in this report.
IMPAIRMENTS
As a result of a decrease in the gold price from 30 June 2016,
a decision was taken during the six months ended
31 December 2016, to impair the goodwill allocated to the
Cooke CGU by R201 million and the Cooke 1, 2 and 3 mining
assets by R355 million.
For additional information on the impairments see note 5 of
the condensed consolidated financial statements included
elsewhere in this report.
SHARE-BASED PAYMENT ON BEE TRANSACTION
An expense of R240 million relating to share-based payment
on BEE transaction was recognised as part of the Rustenburg
Operations acquisition. This represents the BEE shareholders
attributable value over the expected life of mine.
For additional information on the impairments see note 8 of
the condensed consolidated financial statements included
elsewhere in this report.
RESTRUCTURING COSTS
Restructuring costs, including voluntary separation
packages, of R149 million (31 December 2015: R74 million)
were incurred at Driefontein, Kloof, Beatrix, Cooke and
Corporate Services.
TRANSACTION COSTS
Transaction costs of R43 million primarily related to the
acquisition of the Rustenburg Operations.
MINING AND INCOME TAX
Mining and income tax increased from R383 million to
R738 million. Current tax increased by R83 million to
R618 million due to an increase in taxable mining income for
the period. Deferred tax increased from a credit of
R153 million to a charge of R120 million.
CASH FLOW ANALYSIS
Sibanye defines free cash flow as cash from operating
activities before dividends, less additions to property, plant
and equipment.
Free cash flow of R330 million compares with R438 million for
the six months ended 31 December 2015. This was largely due
to the R832 million increase in cash generated from the
operating activities, a R41 million increase in investment in
working capital, a R129 million increase in net interest paid, a
R150 million increase in royalties and taxation paid, and a
R602 million increase in capital expenditure.
Available cash at 31 December 2016 (after net loans raised
of R2,075 million) increased to R968 million from R871 million
at 30 June 2016.
DIVIDEND DECLARATION
The Sibanye Board approved a final dividend, number 8, of
60 cents per share (ZAR) (gross) resulting in a total dividend
of 145 cents per share (ZAR) (gross) for the year ended
31 December 2016.
Sibanye's dividend policy is to return at least 25% to 35% of
normalised earnings to shareholders and after due
consideration of future requirements the dividend may be
increased beyond these levels. Normalised earnings are
defined as: basic earnings excluding gains and losses on
foreign exchange differences and financial instruments, non-
recurring items and share of results of equity-accounted
investees. After due consideration of the Group cash position
and future requirements, the Board has determined the final
dividend at 60 cents per share (ZAR).
The final dividend is subject to the Dividends Withholding Tax.
In accordance with paragraphs 11.17 (a) (i) and 11.17 (c) of
the JSE Listings Requirements the following additional
information is disclosed:
- The dividend has been declared out of income reserves
- The local Dividends Withholding Tax rate is 15% (fifteen
per centum). The implications of Minister Gordhan's
announcement of an increase in the dividend
withholding tax from 15% to 20% in his budget speech of
22 February 2017 will be evaluated and communicated
to shareholders once clarity on implementation has been
secured
- The gross local dividend amount is 60 cents per ordinary
share (ZAR) for shareholders exempt from the Dividends
Tax
- Dividend Withholding Tax of 15% will be applicable to this
dividend
- The net local dividend amount is 51 cents (85% of
60 cents) per ordinary share (ZAR) for shareholders liable
to pay the Dividends Withholding Tax
- Sibanye currently has 929,004,342 ordinary shares in issue
- Sibanye's income tax reference number is 9431292151
- Sibanye's Auditors are KPMG Inc. and the individual
auditor is Jacques Erasmus
Shareholders are advised of the following dates in respect of
the final dividend:
- Final dividend number 8: 60 cents per share (ZAR)
- Last date to trade cum dividend: Tuesday, 4 April 2017
- Sterling and US dollars conversion date: Wednesday,
5 April 2017
- Shares commence trading ex-dividend: Wednesday,
5 April 2017
- Record date: Friday, 7 April 2017
- Payment of dividend: Monday, 10 April 2017
Please note that share certificates may not be
dematerialised or rematerialised between Wednesday,
5 April 2017, and Friday, 7 April 2017, both dates inclusive.
CONDENSED CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS
Condensed consolidated income statement
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Year Six months ended Six months ended Year
Reviewed Reviewed Audited
Dec Dec Dec Jun Dec Dec Jun Dec Dec Dec
2015 2016 2015 2016 2016 Notes 2016 2016 2015 2016 2015
1,781.8 2,128.1 920.1 956.1 1,172.0 Revenue 16,536.0 14,704.7 12,471.9 31,240.7 22,717.4
(1,284.8) (1,410.7) (622.1) (605.4) (805.3) Operating costs 2 (11,397.3) (9,311.8) (8,500.9) (20,709.1) (16,380.4)
497.0 717.4 298.0 350.7 366.7 Operating profit 5,138.7 5,392.9 3,971.0 10,531.6 6,337.0
Amortisation and
(285.2) (275.3) (149.9) (126.5) (148.8) depreciation (2,096.5) (1,945.4) (2,028.0) (4,041.9) (3,636.6)
211.8 442.1 148.1 224.2 217.9 Net operating profit 3,042.2 3,447.5 1,943.0 6,489.7 2,700.4
20.2 22.6 10.4 10.5 12.1 Interest income 169.6 161.8 140.1 331.4 257.0
(44.1) (61.5) (22.0) (25.0) (36.5) Finance expense (517.9) (385.2) (298.9) (903.1) (561.8)
(6.1) (24.1) (0.8) (5.6) (18.5) Net other costs (269.5) (85.1) (15.5) (354.6) (78.6)
Exploration and feasibility
(1.9) (0.3) (0.8) - (0.3) costs (4.0) (0.1) (10.7) (4.1) (23.6)
Share of results of equity-
accounted investees after
9.1 0.9 6.7 (5.5) 6.4 tax 98.2 (84.9) 87.2 13.3 116.0
(21.5) (17.4) (9.3) (8.9) (8.5) Share-based payments 3 (118.5) (137.4) (129.4) (255.9) (274.4)
(Loss)/gain on financial
(18.1) (70.4) (20.2) (76.5) 6.1 instruments 4 144.2 (1,177.0) (254.5) (1,032.8) (229.5)
Gain/(loss) on foreign
(27.3) 15.0 (23.1) 2.5 12.5 exchange differences 181.7 37.9 (309.6) 219.6 (359.4)
Profit before non-recurring
122.1 306.9 89.0 115.7 191.2 items 2,726.0 1,777.5 1,151.7 4,503.5 1,546.1
Gain on disposal of property,
4.6 6.5 3.4 3.5 3.0 plant and equipment 42.3 53.1 44.5 95.4 58.7
- (94.1) - (53.3) (40.8) Impairments 5 (562.0) (819.1) - (1,381.1) -
Share-based payment on BEE
- (16.4) - - (16.4) transaction 8 (240.3) - - (240.3) -
- 165.4 - - 165.4 Gain on acquisition 8 2,428.0 - - 2,428.0 -
(8.2) (12.8) (5.6) (2.5) (10.3) Restructuring costs (148.8) (38.9) (73.6) (187.7) (104.8)
(2.0) (10.7) (2.0) (7.4) (3.3) Transaction costs (43.4) (113.6) (25.7) (157.0) (25.7)
Net loss on derecognition of
financial guarantee asset
(13.3) - - - - and liability - - - - (158.3)
103.2 344.8 84.8 56.0 288.8 Profit before royalties and tax 4,201.8 859.0 1,096.9 5,060.8 1,316.0
(31.4) (37.2) (19.7) (17.3) (19.9) Royalties (281.1) (265.5) (261.2) (546.6) (400.6)
71.8 307.6 65.1 38.7 268.9 Profit before tax 3,920.7 593.5 835.7 4,514.2 915.4
(29.6) (84.7) (30.0) (32.9) (51.8) Mining and income tax (737.8) (505.4) (382.5) (1,243.2) (377.2)
(54.6) (75.7) (41.0) (32.1) (43.6) - Current tax (618.1) (493.7) (535.0) (1,111.8) (696.7)
25.0 (9.0) 11.0 (0.8) (8.2) - Deferred tax (119.7) (11.7) 152.5 (131.4) 319.5
42.2 222.9 35.1 5.8 217.1 Profit for the period 3,182.9 88.1 453.2 3,271.0 538.2
Profit for the period
attributable to:
56.2 252.2 41.1 21.7 230.5 - Owners of Sibanye 3,368.6 333.0 537.1 3,701.6 716.9
(14.0) (29.3) (6.0) (15.9) (13.4) - Non-controlling interests (185.7) (244.9) (83.9) (430.6) (178.7)
Earnings per ordinary share
(cents)
6 27 4 2 25 Basic earnings per share 364 36 59 402 79
6 27 4 2 25 Diluted earnings per share 364 36 58 401 78
Weighted average number
912,038 921,733 914,771 919,089 924,379 of shares ('000) 924,379 919,089 914,771 921,733 912,038
Diluted weighted average
917,709 923,894 920,442 924,760 926,540 number of shares ('000) 926,540 924,760 920,442 923,894 917,709
Headline earnings per
ordinary share (cents) 6
6 18 4 8 10 Headline earnings per share 148 121 55 270 74
Diluted headline earnings per
6 18 4 8 10 share 148 120 55 269 74
12.75 14.68 13.61 15.38 13.97 Average R/US$ rate
The condensed consolidated financial statements for the year ended 31 December 2016 have been prepared by Sibanye Gold Limited's Group financial reporting team headed
by Alicia Brink. This process was supervised by the Group's Chief Financial Officer, Charl Keyter and approved by the board of Sibanye Gold Limited.
Condensed consolidated statement of other comprehensive income
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Year Six months ended Six months ended Year
Reviewed Reviewed Audited
Dec Dec Dec Jun Dec Dec Jun Dec Dec Dec
2015 2016 2015 2016 2016 2016 2016 2015 2016 2015
42.2 222.9 35.1 5.8 217.1 Profit for the period 3,182.9 88.1 453.2 3,271.0 538.2
Other comprehensive
(329.3) 130.8 (265.2) 54.4 76.4 income, net of tax (140.9) 9.5 - (131.4) -
Foreign currency translation
- - - - - adjustments (140.9) 9.5 - (131.4) -
Currency translation
(329.3) 130.8 (265.2) 54.4 76.4 adjustments(1) - - - - -
Total comprehensive
(287.1) 353.7 (230.1) 60.2 293.5 income 3,042.0 97.6 453.2 3,139.6 538.2
Total comprehensive
income attributable to:
(268.9) 382.5 (221.1) 76.6 305.9 - Owners of Sibanye 3,227.7 342.5 537.1 3,570.2 716.9
(18.2) (28.8) (9.0) (16.4) (12.4) - Non-controlling interests (185.7) (244.9) (83.9) (430.6) (178.7)
12.75 14.68 13.61 15.38 13.97 Average R/US$ rate
(1) The currency translation adjustments arise on the convenience translation of the South African Rand amount to the United States Dollars. These gains and losses will never be
reclassified to profit and loss.
Condensed consolidated statement of financial position
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Revised Reviewed Revised Audited
Dec Jun Dec Dec Jun Dec
2015 2016 2016 Notes 2016 2016 2015
1,641.9 1,986.6 2,485.0 Non-current assets 34,018.1 29,203.5 25,515.0
1,424.2 1,562.5 1,989.8 Property, plant and equipment 27,240.7 22,968.0 22,132.4
47.4 77.4 68.4 Goodwill 936.0 1,137.3 736.7
10.8 149.1 157.6 Equity-accounted investments 9 2,157.4 2,192.2 167.5
155.3 180.6 226.5 Environmental rehabilitation obligation funds 3,100.5 2,655.5 2,413.9
0.1 7.6 26.0 Non-current financial assets 355.3 111.6 1.3
4.1 9.4 16.7 Deferred tax 228.2 138.9 63.2
177.0 241.9 562.7 Current assets 7,703.2 3,555.6 2,750.7
26.1 37.5 49.4 Inventories 676.8 550.8 405.9
104.7 145.2 419.9 Trade and other receivables 5,747.9 2,134.1 1,627.4
- - 22.7 Current financial assets 310.6 - -
46.2 59.2 70.7 Cash and cash equivalents 967.9 870.7 717.4
1,818.9 2,228.5 3,047.7 Total assets 41,721.3 32,759.1 28,265.7
964.3 976.3 1,219.7 Shareholders' equity 16,697.4 14,352.1 14,984.8
510.5 696.5 1,372.3 Non-current liabilities 18,787.3 10,238.1 7,933.6
229.2 244.9 343.8 Deferred tax liabilities 4,707.1 3,599.6 3,561.4
116.4 221.0 600.5 Borrowings 10 8,221.5 3,248.6 1,808.3
155.1 227.2 290.9 Environmental rehabilitation obligation 11 3,982.2 3,340.4 2,411.0
1.0 1.1 1.2 Post-retirement healthcare obligation 16.3 16.3 16.3
8.8 - 18.0 Share-based payment obligations 246.5 - 136.6
- 2.3 117.9 Non-current financial liabilities 7,8 1,613.7 33.2 -
344.1 555.7 455.7 Current liabilities 6,236.6 8,168.9 5,347.3
177.6 264.1 378.5 Trade and other payables 5,180.5 3,881.7 2,759.4
8.3 10.9 5.0 Tax and royalties payable 68.6 160.8 129.6
128.4 257.2 55.0 Current borrowings 10 752.3 3,780.3 1,995.3
29.8 23.5 17.2 Current share-based payment obligations 3 235.2 346.1 463.0
1,818.9 2,228.5 3,047.7 Total equity and liabilities 41,721.3 32,759.1 28,265.7
87.6 300.2 459.7 Net debt(1) 6,292.8 4,412.7 1,361.9
15.54 14.70 13.69 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
Accumul Non- Non- Accumul
Stated Other ated controlling Total Total controlling ated 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 (Audited) 14,985.9 329.6 (9,897.4) 2,819.1 21,734.6
Total comprehensive income for the
- (325.1) 56.2 (18.2) (287.1) period 538.2 (178.7) 716.9 - -
- - 56.2 (14.0) 42.2 Profit for the period 538.2 (178.7) 716.9 - -
- (325.1) - (4.2) (329.3) Other comprehensive income, net of tax - - - - -
- - (54.2) - (54.2) Dividends paid (658.4) - (658.4) - -
- 9.3 - - 9.3 Share-based payments 119.1 - - 119.1 -
- - 3.2 (3.2) - Transactions with non-controlling interests - (41.1) 41.1 - -
2,388.6 234.4 (1,665.8) 7.1 964.3 Balance at 31 December 2015 (Audited) 14,984.8 109.8 (9,797.8) 2,938.2 21,734.6
Total comprehensive income for the
- 130.3 252.2 (28.8) 353.7 period 3,139.6 (430.6) 3,701.6 (131.4) -
- - 252.2 (29.3) 222.9 Profit for the period 3,271.0 (430.6) 3,701.6 - -
- 130.3 - 0.5 130.8 Other comprehensive income, net of tax (131.4) - - (131.4) -
- - (110.7) (0.1) (110.8) Dividends paid (1,611.9) (1.3) (1,610.6) - -
- 11.7 - - 11.7 Share-based payments 172.0 - - 172.0 -
Transactions with non-controlling
- - (22.3) 22.3 - interests(1) - 326.9 (326.9) - -
Acquisition of subsidiary with non-
- - - 0.8 0.8 controlling interests 12.9 12.9 - - -
2,388.6 376.4 (1,546.6) 1.3 1,219.7 Balance at 31 December 2016 (Reviewed) 16,697.4 17.7 (8,033.7) 2,978.8 21,734.6
(1) On acquisition of the Cooke Operations, the amount recognised as non-controlling interests represented the BEE consortium's proportionate share of the net assets at
acquisition date after considering the loan amount due and payable to Sibanye. As the recoverable amount of the Cooke cash generating units (CGU) is lower than its
carrying value, the BEE consortium's proportionate share of the net fair value at 31 December 2016 is not sufficient to fund the BEE consortium's attributable loss, and therefore
the non-controlling interest was limited to zero.
Condensed consolidated statement of cash flows
Figures are in millions unless otherwise stated
United States Dollars South African Rand
Year Six months ended Six months ended Year
Reviewed Reviewed Audited
Dec Dec Dec Jun Dec Dec Jun Dec Dec December
2015 2016 2015 2016 2016 2016 2016 2015 2016 2015
Cash flows from operating activities
480.8 669.9 291.3 333.3 336.6 Cash generated by operations 4,708.6 5,126.5 3,877.2 9,835.1 6,130.3
(3.3) (103.4) (2.8) (96.9) (6.5) Cash-settled share-based payments paid (28.8) (1,489.8) (35.8) (1,518.6) (42.2)
(52.4) (16.2) (55.5) 33.1 (49.3) Change in working capital (746.6) 509.0 (705.3) (237.6) (668.0)
425.1 550.3 233.0 269.5 280.8 3,933.2 4,145.7 3,136.1 8,078.9 5,420.1
(9.2) 7.6 5.4 4.1 3.5 Interest received 48.8 63.4 72.2 112.2 117.3
(20.4) (30.0) (10.4) (11.1) (18.9) Interest paid (270.9) (170.2) (141.7) (441.1) (260.2)
(31.0) (37.9) (22.0) (16.7) (21.2) Royalties paid (299.6) (256.3) (288.9) (555.9) (395.4)
(51.5) (80.2) (42.7) (31.5) (48.7) Tax paid (691.8) (484.9) (552.0) (1,176.7) (656.3)
(54.2) (109.8) (6.6) (53.7) (56.1) Dividends paid (786.5) (825.4) (91.3) (1,611.9) (658.4)
(4.4) - - - - Guarantee release fee paid - - - - (51.8)
272.8 300.0 156.7 160.6 139.4 Net cash from operating activities 1,933.2 2,472.3 2,134.4 4,405.5 3,515.3
Cash flows from investing activities
Additions to property, plant and
(262.3) (282.8) (131.4) (114.5) (168.3) equipment (2,389.7) (1,761.4) (1,787.9) (4,151.1) (3.344.8)
Proceeds on disposal of property, plant
5.1 6.8 3.6 3.6 3.2 and equipment 44.4 55.0 47.2 99.4 65.1
Contributions to funds and payment of
(6.1) (5.1) (6.1) (0.2) (4.9) environmental rehabilitation obligation (71.4) (3.3) (77.8) (74.7) (78.1)
- (395.2) - (294.0) (101.2) Investment in subsidiaries (1,500.0) (4,301.5) - (5,801.5) -
Cash acquired on acquisition of
- 33.7 - 33.7 - subsidiaries 0.1 494.1 - 494.2 -
Loan advanced to equity-accounted
(0.2) (0.7) (0.2) (1.0) - investee - (15.5) (3.0) (10.1) (3.0)
Loan repaid by equity-accounted
1.4 - 1.4 - 0.3 investee 5.4 - 20.9 - 20.9
(262.1) (643.3) (132.7) (372.4) (270.9) Net cash used in investing activities (3,911.2) (5,532.6) (1,800.6) (9,443.8) (3,339.9)
Cash flows from financing activities
130.5 1,177.1 - 346.3 830.8 Loans raised 11,955.0 5,325.5 - 17,280.5 1,552.0
(122.0) (806.2) (29.3) (127.1) (679.1) Loans repaid (9,879.8) (1,954.9) (470.9) (11,834.7) (1,572.9)
Net cash from/(used in) financing
8.5 370.9 (29.3) 219.2 151.7 activities 2,075.2 3,370.6 (470.9) 5,445.8 (20.9)
Net increase/(decrease) in cash and cash
19.2 27.6 (5.3) 7.4 20.2 equivalent 97.2 310.3 (137.1) 407.5 154.5
Effect of exchange rate fluctuations on
(21.7) (3.1) (18.7) 5.6 (8.7) cash held - (157.0) - (157.0) -
Cash and cash equivalents at beginning
48.7 46.2 70.2 46.2 59.2 of period 870.7 717.4 854.5 717.4 562.9
Cash and cash equivalents at end of
46.2 70.7 46.2 59.2 70.7 period 967.9 870.7 717.4 967.9 717.4
12.75 14.68 13.61 15.38 13.97 Average R/US$ rate
15.54 13.69 15.54 14.70 13.69 Closing R/US$ rate
NOTES TO THE CONDENSED CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS
1. Basis of accounting and preparation
The condensed consolidated preliminary financial statements are prepared in accordance with the requirements of the JSE
Listings Requirements for preliminary reports and the requirements of the Companies Act of South Africa. The JSE Listings
Requirements require preliminary reports to be prepared in accordance with the framework concepts and the measurement
and recognition requirements of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides
as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards
Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting. The accounting
policies applied in the preparation of the condensed consolidated preliminary financial statements are in terms of IFRS and
are consistent with those applied in the previous consolidated annual financial statements. The accounting policies (including
significant accounting judgements and estimates), however, have been expanded for the PGM assets (due to the Aquarius
and the Rustenburg Operations acquisitions) 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.
- The consideration transferred for the acquisition of a business includes any liability resulting from a contingent
arrangement. The contingent consideration for the Rustenburg Operations acquisition includes a deferred payment and
is measured at fair value.
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 statement of financial position as at 30 June 2016 has been revised to reflect the adjustment of
the initial accounting in respect of Aquarius acquired on 12 April 2016. The impact of these adjustments is presented in note 7.
The condensed consolidated income statement and statements of other comprehensive income and cash flows for the six
months ended 31 December 2015 were not reviewed by the Company's auditor and 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 condensed consolidated income statement
and statements of other comprehensive income and cash flows for the six months ended 31 December 2016 have not been
reviewed and were prepared by subtracting the reviewed condensed consolidated financial statements for the six months
ended 30 June 2016 from the reviewed condensed consolidated preliminary financial statements for the year ended 31
December 2016. The US dollars consolidated income statements, and statements of comprehensive income, financial
position, changes in equity, and cash flows have not been audited.
The translation of the financial statements into US Dollars 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. Operating costs
A net realisable value write down on uranium finished goods and uranium-in-process has been recognised in operating costs
as follows:
Figures are in South African Rand millions unless otherwise stated Six months ended Year ended
Dec Jun Dec Dec Dec
2016 2016 2015 2016 2015
Net realisable value write down (55.6) (37.7) (24.0) (93.3) (24.0)
3. Share-based payments
Figures are in South African Rand millions unless otherwise stated Six months ended Year ended
Dec Jun Dec Dec Dec
2016 2016 2015 2016 2015
Sibanye Gold Limited 2013 Share Plan (89.9) (82.2) (59.2) (172.1) (119.1)
Sibanye Gold Limited Phantom Share Scheme (28.6) (55.2) (70.2) (83.8) (155.3)
Total share-based payments (118.5) (137.4) (129.4) (255.9) (274.4)
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 obligations:
Figures are in South African Rand millions unless otherwise stated Six months ended Year ended
Dec Jun Dec Dec Dec
Note 2016 2016 2015 2016 2015
Balance at beginning of the period 346.1 599.6 468.8 599.6 399.2
Share-based payments expensed 28.6 55.2 70.2 83.8 155.3
Share-based payment on BBE transaction 8 240.3 - - 240.3 -
Fair value adjustment of obligation(1) 4 (104.5) 1,181.1 96.4 1,076.6 87.3
Cash-settled share-based payments paid(2) (28.8) (1,489.8) (35.8) (1,518.6) (42.2)
Balance at end of the period 481.7 346.1 599.6 481.7 599.6
Current share-based payment obligations (235.2) (346.1) (463.0) (235.2) (463.0)
Non-current share-based payment obligations 246.5 - 136.6 246.5 136.6
(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 for the six month period ended 30 June 2016 of approximately 120%, resulted in a fair value loss of R1,181.1 million. The depreciation in share price for the
six month period ended 31 December 2016 of approximately 49% resulted in a fair value gain of R110.7 million.
(2) Payments made during the period relate 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.
4. (Loss)/gain on financial instruments
Figures are in South African Rand millions unless otherwise stated Six months ended Year ended
Dec Jun Dec Dec Dec
Note 2016 2016 2015 2016 2015
Fair value adjustment of share-based payment obligations 3 104.5 (1,181.1) (96.4) (1,076.6) (87.3)
Loss on revised cash flows of the Burnstone Debt 8 (29.3) - (162.5) (29.3) (162.5)
Other(1) 69.0 4.1 4.4 73.1 20.3
Total (loss)/gain on financial instruments 144.2 (1,177.0) (254.5) (1,032.8) (229.5)
(1) The other gain on financial instruments for the year ended 31 December 2016 includes fair value gains of R40.8 million of the Cooke hedges and R21.0 million on the "purchase
of concentrate" debtor acquired on acquisition of the Rustenburg Operations.
5. Impairments
Figures are in South African Rand millions unless otherwise stated Six months ended Year ended
Dec Jun Dec Dec Dec
2016 2016 2015 2016 2015
Impairment of goodwill(1) (201.3) - - (201.3) -
Impairment of property, plant and equipment(1)(2) (355.0) (816.7) - (1,171.7) -
Impairment of loan to equity-accounted investee (5.7) (2.4) - (8.1) -
Total impairments (562.0) (819.1) - (1,381.1) -
(1) The gold price decreased from R628,000/kg at 30 June 2016 to R510,000/kg at 31 December 2016. As a result a decision was taken during the six months ended 31 December
2016, to impair the goodwill allocated to the Cooke CGU by R201.3 million and the Cooke 1, 2 and 3 mining assets by R355.0 million. The impairment was based on the estimated
fair value less cost to sale over the life of mine calculated as expected discounted cash flows from the expected gold reserves and costs to extract the gold.
(2) Despite intense monitoring and interventions, the Cooke 4 Operation continued to fall short of production targets and losses continued to accumulate. 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.
6. Reconciliation of headline earnings with profit for the period
Figures are in South African Rand millions unless otherwise stated Six months ended Year ended
Dec Jun Dec Dec Dec
Profit attributable to owners of Sibanye 3,368.6 333.0 537.1 3,701.6 716.9
Gain on disposal of property, plant and equipment (42.3) (53.1) (44.5) (95.4) (58.7)
Impairments 562.0 819.1 - 1,381.1 -
Gain on acquisition (2,428.0) - - (2,428.0) -
Taxation effect of re-measurement items (87.6) 14.9 12.4 (72.7) 16.4
Headline earnings 1,372.7 1,113.9 505.0 2,486.6 674.6
7. 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 nine months ended 31 December 2016, Aquarius contributed revenue of R2,104.4 million and a profit of R223.6 million
to the Group's results.
At 30 June 2016 the purchase price allocation (PPA) was 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.
Subsequently, the Group received new information relating to probable PGM reserves that existed at acquisition date and
adjustments were made to the provisional calculation of the fair values resulting in a decrease of R243.0 million in the fair
value of property, plant and equipment, and decrease of R68.1 million to the net deferred tax liability, and an increase of
R174.9 million in the reported value of goodwill. Accordingly, the PPA has been restated as required by IFRS 3.
Consideration
Figures are in South African Rand millions unless otherwise stated
Dec
2016
Cash 4,301.5
Total consideration 4,301.5
Acquisition-related costs
The Group incurred acquisition-related costs of R93.1 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 recognised amounts of assets acquired and liabilities assumed at the acquisition date:
Figures are in South African Rand millions unless otherwise stated
Notes Revised
Property, plant and equipment 1,680.8
Equity-accounted investments 9 2,066.7
Environmental rehabilitation obligation funds 151.9
Non-current financial assets 108.4
Inventories 155.0
Trade and other receivables 908.9
Cash and cash equivalents 494.1
Deferred tax 49.2
Environmental rehabilitation obligation 11 (630.0)
Non-current financial liabilities (32.4)
Trade and other payables (1,025.6)
Tax and royalties payable (13.2)
Total fair value of identifiable net assets acquired 3,913.8
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 (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/kg.
Goodwill
Goodwill arising from the acquisition has been recognised as follows:
Figures are in South African Rand millions unless otherwise stated
Revised
Consideration paid 4,301.5
Fair value of identifiable net assets (3,913.8)
Non-controlling interests, based on their proportionate interest in the recognised amounts of the assets and liabilities 12.9
Goodwill 400.6
The goodwill is attributable to the synergies between the PGM assets in the Rustenburg area. The allocation of goodwill has
been provisionally allocated to the Kroondal and Rustenburg Operations cash-generating units. None of the goodwill
recognised is expected to be deducted for tax purposes.
8. Rustenburg Platinum Mines acquisition
On 9 September 2015, Sibanye announced that it had entered into written agreements with Rustenburg Platinum Mines
Limited (RPM), a wholly owned subsidiary of Anglo American Platinum Limited (Anglo Platinum) 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 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 favourable extended payment
period; should the Rustenburg Operations generate negative distributable free cash flows in any of 2016, 2017 or 2018, RPM
will be required to pay up to R267 million per annum to ensure that the free cash flows for the relevant year is equal to zero.
On 19 October 2016, Sibanye obtained consent in terms of section 11 of the Mineral and Petroleum Resources Development
Act for the transfer of the mining right and prospecting right pursuant to the Rustenburg Operations Transaction. Sibanye
obtained control (88.4%) of the Rustenburg Operations on this date.
For the two months ended 31 December 2016, the Rustenburg Operations contributed revenue of R1,656.0 million and a loss
of R242.6 million to the Group's results.
The purchase price allocation has been prepared on a provisional basis in accordance with IFRS 3. The values measured on
a provisional basis include, inter alia, deferred tax and the process to determine the effective date tax valuations.
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
Figures are in South African Rand millions unless otherwise stated
Dec
2016
Cash 1,500.0
Deferred Payment (included in non-current financial liabilities) 1,553.3
True-up amount 65.1
Total consideration 3,118.4
Acquisition-related costs
The Group incurred acquisition-related costs of R72.4 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
Dec
2016
Property, plant and equipment 4,021.5
Environmental rehabilitation obligation funds 280.7
Non-current financial assets 220.9
Inventories 80.4
Trade and other receivables 2,991.6
Current financial assets 242.0
Cash and cash equivalents 0.1
Deferred tax (898.5)
Environmental rehabilitation obligation 11 (79.8)
Trade and other payables (1,312.5)
Total fair value of identifiable net assets acquired 5,546.4
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 PGM reserves and costs to extract the PGMs discounted at a discount rate of 9.2% and an average
PGM (4E) basket price of R14,725/kg.
Share-based payment on BEE transaction
The share-based payment on BEE transaction amounted to R240.3 million. In terms of the Rustenburg Operations Transaction
a 26% equity stake in Sibanye Rustenburg Platinum Mines Proprietary Limited (SRPM) was acquired by the BBBEE SPV (the
"BBBEE Transaction") by a vendor financed facility from Sibanye Platinum Proprietary Limited (Sibanye Platinum), on the
following terms:
- Interest at up to 0.2% above Sibanye's highest cost of debt;
- Post payment of the annual Deferred Payment to RPM and in respect of any repayment by SRPM of shareholder loans or
the distribution of dividends, 74% will be paid to Sibanye Platinum and 26% to BBBEE SPV;
- Of the 26% payment to BBBEE SPV, 85% will be used to service the facility owing by BBBEE SPV to Sibanye Platinum;
- The remaining 15% of any such payment or 100%, once the facility owing by BBBEE SPV to Sibanye Platinum is repaid, will
be declared by BBBEE SPV as a dividend to the BBBEE SPV shareholders; and
- The facility will be capped at R3,500 million.
The IFRS 2 Share-based Payment expense has been limited to 44.8% of the 26% interest relating to the Bakgatla-Ba-Kgafela
Investment Holdings, as the Rustenburg Mine Community Trust and Rustenburg Mine Employees Trust are controlled and
consolidated by Sibanye. The 44.8% interest was based on the expected discounted future cash flows of the expected PGM
reserves and costs to extract the PGMs.
Gain on acquisition
Gain on acquisition has been recognised as follows:
Figures are in South African Rand millions unless otherwise stated
Dec
2016
Consideration 3,118.4
Fair value of net identifiable assets (5,546.4)
Gain on acquisition (2,428.0)
The excess of the fair value of the net assets acquired over the consideration is recognised immediately in profit or loss as a
gain on acquisition. The gain on acquisition is attributable to the fact the Rustenburg Operations were considered non-core
operations by Anglo Platinum.
9. Equity-accounted investments
The Group holds the following equity-accounted investments:
Figures are in South African Rand millions unless otherwise stated Six months ended Year ended
Dec Jun Dec Dec Dec
2016 2016 2015 2016 2015
Rand Refinery 72.4 93.9 148.7 72.4 148.7
Mimosa 2,049.3 2,046.8 - 2,049.3 -
Other equity-accounted investments 35.7 51.5 18.8 35.7 18.8
Total equity-accounted investments 2,157.4 2,192.2 167.5 2,157.4 167.5
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 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 Year ended
Dec Jun Dec Dec Dec
2016 2016 2015 2016 2015
Balance at beginning of the period 93.9 148.7 83.6 148.7 55.1
Share of results of equity-accounted investee after tax (41.0) (75.5) 86.0 (116.5) 114.5
Interest on the loan to equity-accounted investee capitalised 19.5 20.7 - 40.2 -
Loan repaid by equity-accounted investee - - (20.9) - (20.9)
Balance at end of the period 72.4 93.9 148.7 72.4 148.7
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 Year ended
Dec Jun Dec Dec Dec
Note 2016 2016 2015 2016 2015
Balance at beginning of the period 2,046.8 - - - -
Share of results of equity-accounted investee after tax 143.9 (29.0) - 114.9 -
Foreign currency translation (141.4) 9.1 - (132.3) -
Equity-accounted investment on acquisition of subsidiaries 7 - 2,066.7 - 2,066.7 -
Balance at end of the period 2,049.3 2,046.8 - 2,049.3 -
10. Borrowings
Figures are in South African Rand millions unless otherwise stated Six month periods ended Year ended
Dec Jun Dec Dec Dec
2016 2016 2015 2016 2015
Balance at beginning of the period 7,028.9 3,803.6 3,716.3 3,803.6 3,170.0
Loans raised 11,955.0 5,325.5 - 17,280.5 1,552.0
- R6.0 billion facilities 5,100.0 - - 5,100.0 -
- R4.5 billion facilities - 1,936.4 - 1,936.4 1,000.0
- US$350 million revolving credit facility 554.0 2,217.5 - 2,771.5 -
- Other uncommitted facilities 6,301.0 1,171.6 - 7,472.6 552.0
Loans repaid (9,879.8) (1,954.9) (470.9) (11,834.7) (1,527.9)
- R4.5 billion facilities (3,250.0) (650.0) (470.9) (3,900.0) (1,020.9)
- US$350 million revolving credit facility (558.3) (653.3) - (1,211.6) -
- Other uncommitted facilities (6,071.5) (651.6) - (6,723.1) (552.0)
Franco-Nevada settlement (non-cash) (7.8) (21.3) (20.2) (29.1) (34.6)
Unwinding of loans recognised at amortised cost 69.0 72.4 55.1 141.4 102.3
Loss on revised estimated cash flows(1) 29.3 - 162.5 29.3 162.5
(Gain)/loss on foreign exchange difference (220.8) (196.4) 360.8 (417.2) 424.3
Balance at end of the period 8,973.8 7,028.9 3,803.6 8,973.8 3,803.6
Borrowings consist of:
- R6.0 billion facilities 5,100.0 - - 5,100.0 -
- US$350 million revolving credit facility 1,369.0 1,470.0 - 1,369.0 -
- R4.5 billion facilities - 3,249.2 1,961.6 - 1,961.6
- Franco Nevada 2.7 11.1 33.7 2.7 33.7
- Burnstone Debt 1,752.6 1,778.6 1,808.3 1,752.6 1,808.3
- Other borrowings 749.5 520.0 - 749.5 -
Borrowings 8,973.8 7,028.9 3,803.6 8,973.8 3,803.6
Current portion of borrowings (752.3) (3,780.3) (1,995.3) (752.3) (1,995.3)
Non-current borrowings 8,221.5 3,248.6 1,808.3 8,221.5 1,808.3
(1) At 31 December 2016, the expected free cash flows expected to repay the Burnstone loan was revised as a result of revised cash flows over the life of mine plan updated for
revised gold prices, exchange rates, forecast cost and capital expenditure. In terms of IAS 39 AG8 the carrying value of the Burnstone Debt increased by R29.3 million, disclosed
as part of loss on financial instruments in profit or loss.
11. Environmental rehabilitation obligation
Figures are in South African Rand millions unless otherwise stated Six months ended Year ended
Dec Jun Dec Dec Dec
Note 2016 2016 2015 2016 2015
Balance at beginning of the period 3,340.4 2,411.0 2,583.1 2,411.0 2,486.8
Interest charge 149.4 142.0 101.3 291.4 197.9
Payment of environmental rehabilitation obligation - - - - (0.3)
Change in estimates(1) 411.5 157.4 (273.4) 568.9 (273.4)
Charge to profit or loss 1.1 - - 1.1 -
Environmental rehabilitation obligation assumed on acquisition of
subsidiaries 7,8 79.8 630.0 - 709.8 -
Balance at end of the period 3,982.2 3,340.4 2,411.0 3,982.2 2,411.0
(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. At acquisition the environmental rehabilitation obligation acquired was calculated based on the weighted average cost of capital in terms of IFRS 3
for acquisition purposes. Subsequent to initial recognition the provision was recalculated based on the risk free rate of interest in terms of IAS 37. The resulting change in estimate
for Aquarius and Rustenburg Operations was R157.4 million and R197.6 million, respectively.
12. 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
31 December 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 assets 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
Dec 2016 Jun 2016 Dec 2015
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial assets measured at fair value
Environmental rehabilitation obligation funds 3,100.5 - - 2,655.5 - - 2,413.9 - -
Financial assets - - 665.9 - - 111.6 - - 1.3
Financial liabilities measured at fair value
Non-current financial liabilities - - (1,613.7) - - (33.2) - - -
13. Contingent liabilities
As previously indicated, the claims relating to silicosis and other occupational lung diseases 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.
14. Events after the reporting date
There were no events that could have a material impact on the financial results of the Group after 31 December 2016, other
than those disclosed below:
Dividend declared
A final dividend in respect of the six months ended 31 December 2016 of 60 cents per share (ZAR) was approved by the
Board. This dividend is not reflected in these financial statements. The final dividend will be subject to Dividend Withholding Tax.
Stillwater
Good progress has been made regarding the proposed acquisition of Stillwater Mining Company Limited (Stillwater), which
was announced on 9 December 2016. Ultimately, this transaction will attractively position Sibanye's Platinum Division on the
global cost curve, enhancing Sibanye's ability to sustain and pay industry-leading dividends.
15. Mineral Reserves and Resources
Reserves and Resources as at 31 December 2016 are in the process of being updated and reviewed. Included in this update
will be added 4E reserves and resources from the recent Platinum acquisitions.
16. Review Report of the Independent Auditor
These condensed consolidated preliminary financial statements for the year ended 31 December 2016, have been reviewed
by the Company's auditor, KPMG Inc., who expressed an unmodified review conclusion.
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 financial results
Figures are in millions unless otherwise stated
South African Rand For the six month ended 31 Dec 2016
Total Drie- Cor- Total(1) Platinum Rusten- Cor-
Group Gold fontein Kloof Beatrix Cooke porate Platinum Kroondal Mile Mimosa burg porate
Revenue 16,536.0 13,484.3 4,649.0 4,433.1 2,957.5 1,483.7 (39.0) 3,051.7 1,315.0 101.7 803.6 1,656.0 (824.6)
Underground 14,855.8 12,096.0 4,051.2 4,003.0 2,831.3 1,249.5 (39.0) 2,759.8 1,315.0 - 803.6 1,465.8 (824.6)
Surface 1,680.2 1,388.3 597.8 430.1 126.2 234.2 - 291.9 - 101.7 - 190.2 -
Operating costs (11,397.3) (8,649.7) (2,799.2) (2,522.2) (1,925.3) (1,403.0) - (2,747.6) (1,103.3) (61.8) (617.5) (1,582.5) 617.5
Underground (10,340.1) (7,781.1) (2,420.4) (2,294.1) (1,838.7) (1,227.9) - (2,559.0) (1,103.3) - (617.5) (1,455.7) 617.5
Surface (1,057.2) (868.6) (378.8) (228.1) (86.6) (175.1) - (188.6) - (61.8) - (126.8) -
Operating profit 5,138.7 4,834.6 1,849.8 1,910.9 1,032.2 80.7 (39.0) 304.1 211.7 39.9 186.1 73.5 (207.1)
Underground 4,515.7 4,314.9 1,630.8 1,708.9 992.6 21.6 (39.0) 200.8 211.7 - 186.1 10.1 (207.1)
Surface 623.0 519.7 219.0 202.0 39.6 59.1 - 103.3 - 39.9 - 63.4 -
Amortisation and depreciation (2,096.5) (1,925.2) (518.6) (625.2) (426.7) (345.1) (9.6) (171.3) (90.3) (0.8) (155.8) (58.6) 134.2
Net operating profit 3,042.2 2,909.4 1,331.2 1,285.7 605.5 (264.4) (48.6) 132.8 121.4 39.1 30.3 14.9 (72.9)
Investment income 169.6 144.5 34.6 30.6 16.8 15.9 46.6 25.1 7.8 (9.3) - (2,918.8) 2,945.4
Finance expenses (517.9) (452.5) (72.5) (85.5) (39.4) (35.8) (219.3) (65.4) (0.7) - (7.7) (26.2) (30.8)
Share-based payments (118.5) (118.5) (5.6) (4.3) (2.4) - (106.2) - - - - - -
Exploration and feasibility costs (4.0) (4.0) - - (4.0) - - - - - - - -
Net other costs 154.6 98.1 (0.7) (5.7) (14.7) (110.0) 229.2 56.5 (61.2) (0.4) 189.3 (92.2) 21.0
Non-recurring items 1,475.8 (633.4) (15.9) (14.1) (15.0) (603.5) 15.1 2,109.2 (0.3) - - 2,354.6 (245.1)
Royalties (281.1) (265.3) (102.8) (94.4) (60.9) (7.2) - (15.8) - - (55.8) (8.3) 48.3
Current tax (618.1) (617.7) (269.3) (213.7) (137.5) (0.3) 3.1 (0.4) - - (22.8) - 22.4
Deferred tax (119.7) (148.6) (51.2) (142.8) 10.3 42.9 (7.8) 28.9 - (11.3) 10.6 27.0 2.6
Profit for the period 3,182.9 912.0 847.8 755.8 358.7 (962.4) (87.9) 2,270.9 67.0 18.1 143.9 (649.0) 2,690.9
Profit attributable to:
Owners of Sibanye 3,368.6 1,100.0 847.8 755.8 358.7 (773.5) (88.8) 2,268.6 67.0 15.8 143.9 (649.0) 2,690.9
Non-controlling interests (185.7) (188.0) - - - (188.9) 0.9 2.3 - 2.3 - - -
Capital expenditure
Total expenditure (2,389.8) (2,130.9) (583.4) (764.4) (339.2) (136.0) (307.9) (258.9) (108.5) (0.5) (99.1) (148.7) 97.9
Sustaining capital (676.5) (417.6) (147.0) (175.3) (52.8) (27.1) (15.4) (258.9) (108.5) (0.5) (99.1) (148.7) 97.9
Ore reserve development (1,252.1) (1,252.1) (399.2) (494.3) (285.9) (72.7) - - - - - - -
Growth projects (461.2) (461.2) (37.2) (94.8) (0.5) (36.2) (292.5) - - - - - -
United Sates Dollars(2) For the six months ended 31 Dec 2016
Total Drie- Cor- Total(1) Platinum Rusten- Cor-
Group Gold fontein Kloof Beatrix Cooke porate Platinum Kroondal Mile Mimosa burg porate
Revenue 1,172.0 962.0 331.4 315.8 210.5 107.0 (2.6) 210.0 91.6 7.0 56.0 112.9 (57.5)
Underground 1,052.8 862.7 288.5 285.1 201.5 90.3 (2.6) 190.0 91.6 - 56.0 99.9 (57.5)
Surface 119.3 99.3 42.9 30.7 9.0 16.7 - 20.0 - 7.0 - 13.0 -
Operating costs (805.3) (616.2) (199.3) (179.7) (136.8) 100.5) - (189.1) (77.0) (4.3) (43.1) (107.8) 43.1
Underground (730.6) (554.4) (172.4) (163.5) (130.6) (88.0) - (176.2) (77.0) - (43.1) (99.2) 43.1
Surface (74.7) (61.8) (26.9) (16.2) (6.2) (12.5) - (12.9) - (4.3) - (8.6) -
Operating profit 366.7 345.8 132.1 136.1 73.7 6.5 (2.6) 20.9 14.6 2.7 12.9 5.1 (14.4)
Underground 322.2 308.3 116.1 121.6 70.9 2.3 (2.6) 13.8 14.6 - 12.9 0.7 14.4
Surface 44.6 37.5 16.0 14.5 2.8 4.2 - 7.1 - 2.7 - 4.4 -
Amortisation and depreciation (148.8) (136.9) (36.9) (44.3) (30.3) (24.8) (0.6) (11.9) (6.3) (0.1) (10.8) (4.0) 9.3
Net operating profit 217.9 208.9 95.2 91.8 43.4 (18.3) (3.2) 9.0 8.3 2.6 2.1 1.1 (5.1)
Investment income 12.1 10.3 2.4 2.1 1.2 1.1 3.5 1.8 0.5 (0.6) - (198.8) 200.7
Finance expenses (36.5) (31.9) (5.1) (6.0) (2.8) (2.6) (15.4) (4.6) (0.1) - (0.6) (1.8) (2.1)
Share-based payments (8.5) (8.5) (0.4) (0.3) (0.2) - (7.6) - - - - - -
Exploration and feasibility costs (0.3) (0.3) - - (0.3) - - - - - - - -
Net other costs 6.5 3.0 (0.7) (1.1) (1.4) (7.5) 13.7 3.5 (4.1) - 12.9 (6.3) 1.0
Non-recurring items 97.6 (46.1) (1.1) (0.8) (1.1) (43.7) 0.6 143.7 - - - 160.4 (16.7)
Royalties (19.9) (18.8) (7.4) (6.7) (4.2) (0.5) - (1.1) - - (3.8) (0.6) 3.3
Current tax (43.6) (43.5) (19.0) (15.2) (9.6) - 0.3 (0.1) - - (1.6) - 1.5
Deferred tax (8.2) (10.1) (3.5) (9.7) 0.7 2.9 (0.5) 1.9 - (0.8) 0.7 1.8 0.2
Profit for the period 217.1 63.0 60.4 54.1 25.7 (68.6) (8.6) 154.1 4.6 1.2 9.7 (44.2) 182.8
Profit attributable to:
Owners of Sibanye 230.5 76.6 60.4 54.1 25.7 (54.9) (8.7) 153.9 4.6 1.0 9.7 (44.2) 182.8
Non-controlling interests (13.4) (13.6) - - - (13.7) 0.1 0.2 - 0.2 - - -
Capital expenditure
Total expenditure (168.3) (150.4) (41.2) (53.8) (24.0) (9.6) (21.8) (17.9) (7.7) - (7.0) (10.1) 6.9
Sustaining capital (47.2) (29.3) (10.3) (12.2) (3.7) (1.9) (1.2) (17.9) (7.7) - (7.0) (10.1) 6.9
Ore reserve development (88.8) (88.8) (28.3) (35.0) (20.3) (5.2) - - - - - - -
Growth projects (32.3) (32.3) (2.6) (6.6) - (2.5) (20.6) - - - - - -
(1) The Platinum Division's results for the six months ended 31 December 2016 include the Rustenburg Operations for two months since acquisition.
(2) The average exchange rate for the six months ended 31 December 2016 was R13.97/US$.
Figures are in millions unless otherwise stated
South African Rand For the six months ended 30 June 2016
Total Drie- Cor- Total(1) Platinum Cor-
Group Gold fontein Kloof Beatrix Cooke porate Platinum Kroondal Mile Mimosa porate
Revenue 14,704.7 14,017.0 4,752.1 4,457.8 2,926.4 1,878.5 2.2 687.7 658.3 29.4 419.6 (419.6)
Underground 13,170.7 12,512.4 4,054.1 4,009.6 2,795.6 1,650.9 2.2 658.3 658.3 419.6 (419.6)
Surface 1,534.0 1,504.6 698.0 448.2 130.8 227.6 - 29.4 - 29.4 - -
Operating costs (9,311.8) (8,696.3) (2,767.4) (2,518.8) (1,828.1) (1,582.0) - (615.5) (586.5) (29.0) (351.5) 351.5
Underground (8,460.5) (7,874.0) (2,431.7) (2,315.3) (1,728.7) (1,398.3) - (586.5) (586.5) - (351.5) 351.5
Surface (851.3) (822.3) (335.7) (203.5) (99.4) (183.7) - (29.0) - (29.0) - -
Operating profit 5,392.9 5,320.7 1,984.7 1,939.0 1,098.3 296.5 2.2 72.2 71.8 0.4 68.1 (68.1)
Underground 4,710.6 4,638.4 1,622.4 1,694.3 1,066.9 252.6 2.2 71.8 71.8 - 68.1 (68.1)
Surface 682.3 682.3 362.3 244.7 31.4 43.9 - 0.4 - 0.4 - -
Amortisation and depreciation (1,945.4) (1,889.5) (494.3) (565.5) (391.3) (425.7) (12.7) (55.9) (45.9) (0.4) (67.9) 58.3
Net operating profit 3,447.5 3,431.2 1,490.4 1,373.5 707.0 (129.2) (10.5) 16.3 25.9 - 0.2 (9.8)
Investment income 161.8 145.1 36.2 31.7 17.3 16.6 43.3 16.7 4.2 0.3 0.5 11.7
Finance expenses (385.2) (353.7) (70.6) (70.5) (38.2) (40.0) (134.4) (31.5) (0.7) - (3.5) (27.3)
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) (1123.3) (225.4) (182.2) (151.7) (5.0) (559.0) (185.8) (4.6) (0.2) (1.6) (179.4)
Non-recurring items (918.5) (915.1) (4.9) 29.8 2.4 (820.4) (122.0) (3.4) (1.0) - - (2.4)
Royalties (265.5) (262.7) (102.0) (99.9) (52.3) (8.5) - (2.8) - - (27.1) 24.3
Current tax (493.7) (493.6) (203.0) (208.3) (85.5) (0.8) 4.0 (0.1) - - - (0.1)
Deferred tax (11.7) (15.9) (13.1) (5.7) 9.1 (7.6) 1.4 4.2 - (0.3) 2.5 2.0
Profit for the period 88.1 274.5 896.7 859.0 401.3 (994.9) (887.6) (186.4) 23.8 (0.2) (29.0) (181.0)
Profit attributable to:
Owners of Sibanye 333.0 519.3 896.7 859.0 401.3 (750.0) (887.6) (186.4) 23.8 (0.2) (29.0) (181.0)
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) (68.1) (67.3) (0.8) (60.7) 60.7
Sustaining capital (334.0) (265.9) (71.5) (85.9) (32.0) (21.8) (54.7) (68.1) (67.3) (0.8) (60.7) 60.7
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) - - - - -
United States Dollars(2) For the six months ended 30 June 2016
Total Drie- Cor- Total(1) Platinum Cor-
Group Gold fontein Kloof Beatrix Cooke porate Platinum Kroondal Mile Mimosa porate
Revenue 956.1 911.4 309.0 289.8 190.3 122.1 0.1 44.7 42.8 1.9 27.3 (27.3)
Underground 856.3 813.6 263.6 260.7 181.8 107.3 0.1 42.8 42.8 - 27.3 (27.3)
Surface 99.7 97.8 45.4 29.1 8.5 14.8 - 1.9 - 1.9 - -
Operating costs (605.4) (565.4) (179.9) (163.7) (118.9) 102.8) - (40.0) (38.1) (1.9) (22.9) 22.9
Underground (550.1) (512.0) (158.1) (150.5) (112.4) (90.9) - (38.1) (38.1) - (22.9) 22.9
Surface (55.3) (53.4) (21.8) (13.2) (6.5) (11.9) - (1.9) - (1.9) - -
Operating profit 350.7 346.0 129.1 126.1 71.4 19.3 0.1 4.7 4.7 - 4.4 (4.4)
Underground 306.3 301.3 105.5 110.2 69.4 16.4 0.1 4.7 4.7 - 4.4 (4.4)
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) (3.6) (3.0) - (4.4) 3.8
Net operating profit 224.2 223.1 97.0 89.3 46.0 (8.4) (0.8) 1.1 1.7 . - (0.6)
Investment income 10.5 9.4 2.4 2.1 1.1 1.1 2.7 1.1 0.3 - - 0.8
Finance expenses (25.0) (23.0) (4.6) (4.6) (2.5) (2.6) (8.7) (2.0) - - (0.2) (1.8)
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) (12.1) (0.3) - (0.1) (11.7)
Non-recurring items (59.7) (59.4) (0.3) 1.9 0.2 (53.3) (7.9) (0.3) (0.1) - - (0.2)
Royalties (17.3) (17.1) (6.6) (6.5) (3.4) (0.6) - (0.2) - - (1.8) 1.6
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 0.3 - - 0.2 0.1
Profit for the period 5.8 17.9 58.4 55.9 26.1 (64.7) (57.8) (12.1) 1.6 - (1.9) (11.8)
Profit attributable to:
Owners of Sibanye 21.7 33.8 58.4 55.9 26.1 (48.8) (57.8) (12.1) 1.6 - (1.9) (11.8)
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) (4.4) (4.3) (0.1) (3.9) 3.9
Sustaining capital (21.7) (17.3) (4.6) (5.6) (2.1) (1.4) (3.6) (4.4) (4.3) (0.1) (3.9) 3.9
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) - - - - -
(1) The Platinum Division's results for the six months ended 30 June 2016 include Aquarius for three months since acquisition.
(2) The average exchange rate for the six and three months ended 30 June 2016 was R15.38/US$ and R14.97/US$, respectively.
Figures are in millions unless otherwise stated
For the six months ended
United States Dollars(1) 31 December 2015 South African Rand
Cor- Drie- Drie- Cor-
porate Cooke Beatrix Kloof fontein Group Group fontein Kloof Beatrix Cooke porate
- 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 -
Amortisation and
(0.7) (29.0) (35.0) (39.8) (45.4) (149.9) depreciation (2,028.0) (617.5) (543.8) (464.6) (392.3) (9.8)
(0.7) (24.0) 37.2 47.7 87.9 148.1 Net operating profit 1,943.0 1,170.3 626.5 489.1 (333.1) (9.8)
2.9 0.9 1.5 2.1 3.0 10.4 Investment income 140.1 39.9 27.7 19.8 13.3 39.4
(7.8) (0.5) (2.3) (6.0) (5.4) (22.0) Finance expenses (298.9) (73.8) (80.2) (31.6) (10.1) (103.2)
(28.8) (0.7) (2.8) (2.8) (3.2) (38.3) Net other costs (492.4) (42.5) (37.2) (38.0) (10.1) (364.6)
(6.5) - (0.8) (0.9) (1.1) (9.3) Share-based payments (129.4) (16.0) (12.0) (11.3) - (90.1)
(0.1) - (0.1) (0.1) (0.5) (0.8) Exploration costs (10.7) (7.3) (0.6) (0.4) (0.1) (2.3)
(1.1) (1.1) (0.6) (0.1) (0.4) (3.3) Non-recurring items (54.8) (4.3) (1.8) (6.8) (14.9) (27.0)
- (0.6) (5.0) (5.3) (8.8) (19.7) Royalties (261.2) (117.9) (69.7) (65.4) (8.2) -
(1.3) - (11.4) (7.3) (21.0) (41.0) Current tax (535.0) (278.3) (94.2) (145.7) - (16.8)
1.6 4.5 1.7 1.5 1.7 11.0 Deferred tax 152.5 23.8 17.8 21.5 60.1 29.3
(41.8) (21.5) 17.4 28.8 52.2 35.1 Profit for the period 453.2 693.9 376.3 231.2 (303.1) (545.1)
Profit attributable to:
(41.8) (15.5) 17.4 28.8 52.2 41.1 Owners of Sibanye 537.1 693.9 376.3 231.2 (219.2) (545.1)
- (6.0) - - - (6.0) Non-controlling interests (83.9) - (83.9) - - -
Capital expenditure
(11.4) (11.2) (21.8) (43.9) (43.1) (131.4) Total expenditure (1,787.9) (579.1) (598.7) (300.7) (154.8) (154.6)
(0.5) (2.7) (2.8) (8.3) (12.5) (26.8) Sustaining capital (363.5) (165.1) (114.4) (39.4) (38.0) (6.6)
- (7.4) (19.0) (30.8) (29.6) (86.8) Ore reserve development (1,186.8) (400.1) (422.5) (261.3) (102.9) -
(10.9) (1.1) - (4.8) (1.0) (17.8) Growth projects (237.6) (13.9) (61.8) - (13.9) (148.0)
(1) The average exchange rate for the six months ended 31 December 2015 was R13.61/US$.
Segment operating and financial results
Figures are in millions unless otherwise stated
South African Rand For the year ended 31 Dec 2016
Total Drie- Cor- Total(1) Platinum Rusten- Cor-
Group Gold fontein Kloof Beatrix Cooke porate Platinum Kroondal Mile Mimosa burg porate
Operating results
Ore milled 000't 20,181 5,971 4,676 4,333 5,201 11,611 2,732 5,669 1,012 2,198
Underground 8,084 2,055 2,009 2,862 1,158 4,948 2,732 - 1,012 1,204
Surface 12,097 3,916 2,667 1,471 4,043 6,663 - 5,669 - 994
Yield g/t 2.33 2.70 3.25 2.32 1.09 1.72 2.48 3.57 0.65 2.69
Underground 5.21 6.77 6.82 3.35 4.19 2.99 2.48 - 0.65 3.65
Surface 0.41 0.56 0.56 0.30 0.20 0.78 - 3.57 - 1.53
Gold
produced/PGM's Kg 47,034 16,130 15,210 10,041 5,653 - - - - -
Underground 42,078 13,920 13,704 9,601 4,853 - - - - -
Surface 4,956 2,210 1,506 440 800 - - - - -
Gold sold/PGM's kg 46,905 16,046 15,176 10,041 5,642 13,087 5,543 425 2,833 4,286
Underground 41,960 13,836 13,670 9,601 4,853 12,092 5,543 - 2,833 3,716
Surface 4,945 2,210 1,506 440 789 995 - 425 - 570
Revenue R/kg 586,319 585,884 585,853 585,997 595,923 287,339 355,999 308,471 431,768 386,374
Total cash cost R/kg 377,034 355,416 340,762 381,625 527,916 - - - - -
All-in-cost R/kg 472,585 424,872 435,609 453,232 595,959
All-in-cost margin % 19 28 26 23 (1) - - - - -
Operating cost R/t 862 937 1,080 866 575 373 619 16 958 720
Underground 1,941 2,374 2,300 1,246 2,268 832 619 - 958 1,209
Surface 140 182 162 126 90 33 - 16 - 128
Revenue 31,240.7 27,501.3 9,401.1 8,890.9 5,883.9 3,362.2 (36.8) 3,739.4 1,973.3 131.1 1,223.2 1,656.0 (1,244.2)
Underground 28,026.5 24,608.4 8,105.3 8,012.6 5,626.9 2,900.4 (36.8) 3,418.1 1,973.3 - 1,223.2 1,465.8 (1,244.2)
Surface 3,214.2 2,892.9 1,295.8 878.3 257.0 461.8 - 321.3 - 131.1 - 190.2 -
Operating costs (20,709.1) (17,346.0) (5,566.6) (5,041.0) (3,753.4) (2,985.0) - (3,363.1) (1,689.8) (90.8) (969.0) (1,582.5) 969.0
Underground (18,800.6) (15,655.1) (4,852.1) (4,609.4) (3,567.4) (2,626.2) - (3,145.5) (1,689.8) - (969.0) (1,455.7) 969.0
Surface (1,908.5) (1,690.9) (714.5) (431.6) (186.0) (358.8) - (217.6) - (90.8) - (126.8) -
Operating profit 10,531.6 10,155.3 3,834.5 3,849.9 2,130.5 377.2 (36.8) 376.3 283.5 40.3 254.2 73.5 (275.2)
Underground 9,225.9 8,953.3 3,253.2 3,403.2 2,059.5 274.2 (36.8) 272.6 283.5 - 254.2 10.1 (275.2)
Surface 1,305.7 1,202.0 581.3 446.7 71.0 103.0 - 103.7 - 40.3 - 63.4 -
Amortisation and depreciation (4,041.9) (3,814.7) (1,012.9) (1,190.7) (818.0) (770.8) (22.3) (227.2) (136.2) (1.2) (223.7) (58.6) 192.5
Net operating profit 6,489.7 6,340.6 2,821.6 2,659.2 1,312.5 (393.6) (59.1) 149.1 147.3 39.1 30.5 14.9 (82.7)
Investment income 331.4 289.6 70.8 62.3 34.1 32.5 89.9 41.8 12.0 (9.0) 0.5 (2,918.8) 2,957.1
Finance expenses (903.1) (806.2) (143.1) (156.0) (77.6) (75.8) (353.7) (96.9) (1.4) - (11.2) (26.2) (58.1)
Share-based payments (255.9) (255.9) (16.5) (13.7) (9.1) - (216.6) - - - - - -
Exploration and feasibility costs (4.1) (4.1) - - (4.1) - - - - - - - -
Net other costs (1,154.5) (1,025.2) (226.1) (187.9) (166.4) (115.0) (329.8) (129.3) (65.8) (0.6) 187.7 (92.2) (158.4)
Non-recurring items 557.3 (1,548.5) (20.8) 15.7 (12.6) (1,423.9) (106.9) 2,105.8 (1.3) - - 2,354.6 (247.5)
Royalties (546.6) (528.0) (204.8) (194.3) (113.2) (15.7) - (18.6) - - (82.9) (8.3) 72.6
Current tax (1,111.8) (1,111.3) (472.3) (422.0) (223.0) (1.1) 7.1 (0.5) - - (22.8) - 22.3
Deferred tax (131.4) (164.5) (64.3) (148.5) 19.4 35.3 (6.4) 33.1 - (11.6) 13.1 27.0 4.6
Profit for the period 3,271.0 1,186.5 1,744.5 1,614.8 760.0 (1,957.3) (975.5) 2,084.5 90.8 17.9 114.9 (649.0) 2,509.9
Profit attributable to:
Owners of Sibanye 3,701.6 1,619.4 1,744.5 1,614.8 760.0 (1,523.5) (976.4) 2,082.2 90.8 15.6 114.9 (649.0) 2,509.9
Non-controlling interests (430.6) (432.9) - - - (433.8) 0.9 2.3 - 2.3 - - -
Capital expenditure
Total expenditure (4,151.2) (3,824.2) (1,051.6) (1,304.2) (628.4) (249.2) (590.8) (327.0) (175.8) (1.3) (159.8) (148.7) 158.6
Sustaining capital (1,010.5) (683.5) (218.5) (261.2) (84.8) (48.9) (70.1) (327.0) (175.8) (1.3) (159.8) (148.7) 158.6
Ore reserve development (2,394.4) (2,394.4) (779.0) (912.9) (542.9) (159.6) - - - - - - -
Growth projects (746.3) (746.3) (54.1) (130.1) (0.7) (40.7) (520.7) - - - - - -
(1) The Platinum Division's results for the year ended 31 December 2016 include Aquarius for nine months since acquisition and the Rustenburg Operations for two months since
acquisition.
Figures are in millions unless otherwise stated
United State Dollars(2) For the year ended 31 Dec 2016
Total Drie- Cor- Total(1) Platinum usten- Cor-
Group Gold fontein Kloof Beatrix Cooke porate Platinum Kroondal Mile Mimosa burg porate
Revenue 2,128.1 1,873.4 640.4 605.6 400.8 229.1 (2.5) 254.7 134.4 8.9 83.3 112.9 (84.8)
Underground 1,909.1 1,676.3 552.1 545.8 383.3 197.6 (2.5) 232.8 134.4 - 83.3 99.9 (84.8)
Surface 219.0 197.1 88.3 59.8 17.5 31.5 - 21.9 - 8.9 - 13.0 -
Operating costs (1,410.7) (1,181.6) (379.2) (343.4) (255.7) (203.3) - 229.1) (115.1) (6.2) (66.0) (107.8) 66.0
Underground (1,280.7) (1,066.4) (330.5) (314.0) (243.0) (178.9) - 214.3) (115.1) - (66.0) (99.2) 66.0
Surface (130.0) (115.2) (48.7) (29.4) (12.7) (24.4) - (14.8) - (6.2) - (8.6) -
Operating profit 717.4 691.8 261.2 262.2 145.1 25.8 (2.5) 25.6 19.3 2.7 17.3 5.1 (18.8)
Underground 628.4 609.9 221.6 231.8 140.3 18.7 (2.5) 18.5 19.3 - 17.3 0.7 (18.8)
Surface 89.0 81.9 39.6 30.4 4.8 7.1 - 7.1 - 2.7 - 4.4 -
Amortisation and depreciation (275.3) (259.8) (69.0) (81.1) (55.7) (52.5) (1.5) (15.5) (9.3) (0.1) (15.2) (4.0) 13.1
Net operating profit 442.1 432.0 192.2 181.1 89.4 (26.7) (4.0) 10.1 10.0 2.6 2.1 1.1 (5.7)
Investment income 22.6 19.7 4.8 4.2 2.3 2.2 6.2 2.9 0.8 (0.6) - (198.8) 201.5
Finance expenses (61.5) (54.9) (9.7) (10.6) (5.3) (5.2) (24.1) (6.6) (0.1) - (0.8) (1.8) (3.9)
Share-based payments (17.4) (17.4) (1.1) (0.9) (0.6) - (14.8) - - - - - -
Exploration and feasibility costs (0.3) (0.3) - - (0.3) - - - - - - - -
Net other costs (78.6) (70.0) (15.4) (12.9) (11.3) (7.8) (22.6) (8.6) (4.4) - 12.8 (6.3) 10.7)
Non-recurring items 37.9 (105.5) (1.4) 1.1 (0.9) (97.0) (7.3) 143.4 (0.1) - - 160.4 16.9)
Royalties (37.2) (35.9) (14.0) (13.2) (7.6) (1.1) - (1.3) - - (5.6) (0.6) 4.9
Current tax (75.7) (75.6) (32.2) (28.7) (15.2) (0.1) 0.6 (0.1) - - (1.6) - 1.5
Deferred tax (9.0) (11.2) (4.4) (10.1) 1.3 2.4 (0.4) 2.2 - (0.8) 0.9 1.8 0.3
Profit for the period 222.9 80.9 118.8 110.0 51.8 (133.3) (66.4) 142.0 6.2 1.2 7.8 (44.2) 171.0
Profit attributable to:
Owners of Sibanye 252.2 110.4 118.8 110.0 51.8 (103.7) (66.5) 141.8 6.2 1.0 7.8 (44.2) 171.0
Non-controlling interests (29.3) (29.5) - - - (29.6) 0.1 0.2 - 0.2 - - -
Capital expenditure
Total expenditure (282.8) (260.5) (71.6) (88.9) (42.8) (17.0) (40.2) (22.3) (12.0) (0.1) (10.9) (10.1) 10.8
Sustaining capital (68.9) (46.6) (14.9) (17.8) (5.8) (3.3) (4.8) (22.3) (12.0) (0.1) (10.9) (10.1) 10.8
Ore reserve development (163.1) (163.1) (53.0) (62.2) (37.0) (10.9) - - - - - - -
Growth projects (50.8) (50.8) (3.7) (8.9) - (2.8) (35.4) - - - - - -
(1) The Platinum Division's results for the year ended 31 December 2016 include Aquarius for nine months since acquisition and the Rustenburg Operations for two months since
acquisition.
(2) The average exchange rate for the year ended 31 December 2016 was R14.68/US$.
Figures are in millions unless otherwise stated
For the year ended
United States Dollars(1) 31 December 2015 South African Rand
Cor- Drie- Drie- Cor-
porate Cooke Beatrix Kloof fontein Group Group fontein Kloof Beatrix Cooke porate
Operating results
- 5,793 4,319 3,977 5,772 19,861 000't Ore milled 000't 19,861 5,772 3,977 4,319 5,793 -
- 1,470 2,723 1,979 2,412 8,584 Underground 8,584 2,412 1,979 2,723 1,470 -
- 4,323 1,596 1,998 3,360 11,277 Surface 11,277 3,360 1,998 1,596 4,323 -
- 1.08 2.34 3.54 3.01 2.41 g/t Yield g/ 2.41 3.01 3.54 2.34 1.08 -
- 3.65 3.51 6.50 6.36 5.02 Underground 5.02 6.36 6.49 3.51 3.65 -
- 0.21 0.34 0.61 0.60 0.41 Surface 0.41 0.60 0.61 0.34 0.21 -
Gold
- 201.0 324.9 452.3 557.8 1,536.0 000'oz produced/sold kg 47,775 17,350 14,068 10,105 6,252 -
- 172.3 307.3 413.1 493.3 1,386.0 Underground 43,109 15,345 12,848 9,557 5,359 -
- 28.7 17.6 39.2 64.5 150.0 Surface 4,666 2,005 1,220 548 893 -
- 1,161 1,163 1,160 1,158 1,160 $/oz Gold price R/kg 475,508 474,697 475,647 476,546 475,768 -
- 1,158 831 836 756 848 $/oz Total cash cost R/kg 347,613 309,764 342,764 340,792 474,584 -
- 1,329 996 1,051 914 1,051 $/oz All-in-cost R/kg 430,746 374,790 430,751 408,422 544,658 -
- (14) 14 9 21 9 % All-in-cost margin % 9 21 9 14 (14) -
- 40 62 94 71 65 $/t Operating cost R/t 825 907 1,201 785 514 -
- 140 92 177 152 137 Underground 1,741 1,941 2,251 1,169 1,782 -
- 7 10 13 13 10 Surface 128 165 161 129 83 -
Financial results
- 233.3 377.7 524.8 646.0 1,781.8 Revenue 22,717.4 8,236.0 6,691.4 4,815.5 2,974.5 -
- 201.0 357.3 479.5 571.3 1,609.1 Underground 20,515.0 7,284.1 6,112.8 4,555.7 2,562.4 -
- 32.3 20.4 45.3 74.7 172.7 Surface 2,202.4 951.9 578.6 259.8 412.1 -
- (233.5) (266.0) (374.7) (410.6) (1,284.8) Operating costs (16,380.4) (5,234.2) (4,777.2) (3,391.0) (2,978.0) -
- (205.5) (249.8) (349.4) (367.2) (1,171.9) Underground (14,940.8) (4,681.2) (4,454.9) (3,184.5) (2,620.2) -
- (28.0) (16.2) (25.3) (43.4) (112.9) Surface (1,439.6) (553.0) (322.3) (206.5) (357.8) -
- (0.2) 111.7 150.1 235.4 497.0 Operating profit 6,337.0 3,001.8 1,914.2 1,424.5 (3.5) -
- (4.5) 107.5 130.1 204.1 437.2 Underground 5,574.2 2,602.9 1,657.9 1,371.2 (57.8) -
- 4.3 4.2 20.0 31.3 59.8 Surface 762.8 398.9 256.3 53.3 54.3 -
(1.6) (55.3) (58.0) (80.7) (89.6) (285.2) Amortisation and depreciation (3,636.6) (1,142.6) (1,029.3) (739.4) (704.6) (20.7)
(1.6) (55.5) 53.7 69.4 145.8 211.8 Net operating profit 2,700.4 1,859.2 884.9 685.1 (708.1) (20.7)
6.3 2.1 2.5 4.0 5.3 20.2 Investment income 257.0 67.5 50.6 31.3 27.1 80.5
(11.4) (4.8) (4.5) (11.8) (11.6) (44.1) Finance expenses (561.8) (147.7) (150.1) (57.2) (61.3) (145.5)
(27.8) (2.2) (3.6) (4.7) (5.0) (43.3) Net other costs (551.5) (64.0) (59.8) (46.4) (28.2) (353.1)
(14.8) - (1.8) (2.2) (2.7) (21.5) Share-based payments (274.4) (35.1) (27.6) (23.5) - (188.2)
(0.4) (0.2) (0.1) (0.1) (1.1) (1.9) Exploration/feasibility costs (23.6) (13.9) (0.6) (0.9) (1.9) (6.3)
(15.1) (2.5) (0.7) 0.6 (0.3) (18.0) Non-recurring items (230.1) (2.9) 7.2 (8.4) (31.8) (194.2)
- (1.3) (7.0) (7.7) (15.4) (31.4) Royalties (400.6) (196.8) (98.4) (88.7) (16.7) -
(1.2) - (12.0) (7.6) (33.8) (54.6) Current tax (696.7) (430.8) (97.4) (153.4) - (15.1)
9.7 9.6 1.4 0.1 4.2 25.0 Deferred tax 319.5 53.4 0.9 18.0 122.0 125.2
(56.3) (54.8) 27.9 40.0 85.4 42.2 Profit for the period 538.2 1,088.9 509.7 355.9 (698.9) (717.4)
Profit attributable to:
(56.3) (40.8) 27.9 40.0 85.4 56.2 Owners of Sibanye 716.9 1,088.9 509.7 355.9 (519.9) (717.7)
- (14.0) - - - (14.0) Non-controlling interests (178.7) - - - (179.0) 0.3
Capital expenditure
(22.5) (26.5) (46.7) (88.6) (78.0) (262.3) Total expenditure (3,344.8) (994.2) (1,129.9) (596.5) (337.4) (286.8)
(1.2) (7.3) (6.7) (17.7) (19.6) (52.5) Sustaining capital (668.9) (249.2) (225.6) (86.1) (92.9) (15.1)
- (17.8) (40.0) (65.9) (57.1) (180.8) Ore reserve development (2,304.9) (727.0) (840.6) (510.4) (226.9) -
(21.3) (1.4) - (5.0) (1.3) (29.0) Growth projects (371.0) (18.0) (63.7) - (17.6) (271.7)
(1) The average exchange rate for the year ended 31 December 2015 was R12.75/US$.
GOLD DIVISION - UNIT COST BENCHMARKING METRICS
Cost benchmarks for the six months ended 31 December 2016, compared with the six months
ended 30 June 2016 and the six months ended 31 December 2015
Figures are in rand millions unless otherwise stated
Gold Division Driefontein Kloof Beatrix Cooke Corporate
Operating cost(1) Dec 2016 8,649.7 2,799.2 2,522.2 1,925.3 1,403.0 -
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 -
Less: General and admin Dec 2016 (95.3) (34.3) (32.4) (18.0) (10.6) -
Jun 2016 (94.0) (34.1) (31.5) (16.8) (11.6) -
Dec 2015 (93.1) (28.3) (26.7) (18.4) (19.7) -
Plus: Royalty Dec 2016 265.3 102.8 94.4 60.9 7.2 -
Jun 2016 262.7 102.0 99.9 52.3 8.5 -
Dec 2015 261.2 117.9 69.7 65.4 8.2 -
Total cash cost(2) Dec 2016 8,819.7 2,867.7 2,584.2 1,968.2 1,399.6 -
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 -
Plus: General and admin Dec 2016 95.3 34.3 32.4 18.0 10.6 -
Jun 2016 94.0 34.1 31.5 16.8 11.6 -
Dec 2015 93.1 28.3 26.7 18.4 19.7 -
Community costs Dec 2016 60.8 8.5 13.1 23.0 16.2 -
Jun 2016 19.7 8.0 7.2 4.0 0.5 -
Dec 2015 23.8 8.7 5.9 13.7 (4.5) -
Share-based payments(3) Dec 2016 12.3 5.6 4.3 2.4 - -
Jun 2016 27.0 10.9 9.4 6.7 - -
Dec 2015 129.4 16.0 12.0 11.3 - 90.1
Rehabilitation Dec 2016 58.8 (18.4) 19.7 10.4 46.0 1.1
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)
Ore reserve development Dec 2016 1,252.1 399.2 494.3 285.9 72.7 -
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 -
Sustaining capital Dec 2016 402.2 147.0 175.3 52.8 27.1 -
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 -
On-mine exploration Dec 2016 - - - - - -
Jun 2016 - - - - - -
Dec 2015 8.4 7.3 0.6 0.4 0.1 -
Less: By-product credit Dec 2016 (15.0) (5.0) (3.8) (4.1) (2.1) -
Jun 2016 (13.2) (4.6) (3.0) (3.5) (2.1) -
Dec 2015 (12.0) (4.4) (2.7) (3.4) (1.5) -
Total All-in sustaining cost(4) Dec 2016 10,686.2 3,438.9 3,319.5 2,356.6 1,570.1 1.1
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
Plus: Corporate cost, growth
and capital expenditure Dec 2016 601.9 37.2 94.7 4.5 36.2 429.3
Jun 2016 395.6 16.9 35.3 0.3 4.5 338.6
Dec 2015 249.4 13.9 61.8 - 13.9 159.8
Total All-in cost(5) Dec 2016 11,288.1 3,476.1 3,414.2 2,361.1 1,606.3 430.4
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
Gold sold kg Dec 2016 23,676 8,173 7,788 5,197 2,518 -
Jun 2016 23,229 7,873 7,388 4,844 3,124 -
Dec 2015 25,571 9,093 7,471 5,604 3,403 -
000'ozs Dec 2016 761.3 262.8 250.4 167.1 81.0 -
Jun 2016 746.8 253.1 237.5 155.7 100.4 -
Dec 2015 822.1 292.3 240.2 180.2 109.4 -
Total cash cost R/kg Dec 2016 372,504 350,875 331,818 378,718 555,838 -
Jun 2016 381,635 360,130 350,189 384,723 505,410 -
Dec 2015 339,017 300,319 337,692 326,481 465,971 -
US$/oz Dec 2016 829 781 739 843 1,238 -
Jun 2016 772 728 708 778 1,022 -
Dec 2015 775 686 772 746 1,065 -
All-in sustaining cost R/kg Dec 2016 451,352 420,763 426,233 453,454 623,550 -
Jun 2016 448,922 422,253 427,883 452,044 560,723 -
Dec 2015 411,795 370,043 416,905 389,097 523,244 -
US$/oz Dec 2016 1,005 937 949 1,010 1,388 -
Jun 2016 908 854 865 914 1,134 -
Dec 2015 941 846 953 889 1,196 -
All-in cost R/kg Dec 2016 476,774 425,315 438,392 454,320 637,927 -
Jun 2016 465,952 424,400 432,661 452,106 562,164 -
Dec 2015 421,548 371,572 425,177 389,097 527,329 -
US$/oz Dec 2016 1,062 947 976 1,012 1,420 -
Jun 2016 942 858 875 914 1,137 -
Dec 2015 963 849 972 889 1,205 -
The average exchange rates for the six months ended 31 December 2016, 30 June 2016 and 31 December 2015 were R13.97/US$, R15.38/US$ and R13.61/US$, respectively.
Figures may not add as they are rounded independently.
Total cash costs are calculated in accordance with the Gold Institute Industry standard.
(1) Operating costs - All gold mining related costs before amortisation/depreciation, tax, non-recurring items.
(2) Total cash cost - Operating costs less off-mine costs, which include general and administration costs, as detailed in the table above
All-in 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 G&A charges.
(3) Share-based payments are calculated based on the fair value at initial recognition fair value and does not include the fair valuing adjustment of the cash-settled share-based
payment liability to the reporting date fair value.
(4) Total All-in sustaining costs includes operating costs and costs detailed above, including sustaining capital expenditure, based on managed gold sales.
(5) Total All-in costs includes sustaining and Group costs, excluding income tax, M&A activity, working capital, impairments, financing costs, one-time severance charges and
items needed to normalise earnings.
Cost benchmarks for the year ended 31 December 2016 compared with the year ended
31 December 2015
Figures are in rand millions unless otherwise stated
Gold Division Driefontein Kloof Beatrix Cooke Corporate
Operating cost(1) Dec 2016 17,346.0 5,566.6 5,041.0 3,753.4 2,985.0 -
Dec 2015 16,380.4 5,234.2 4,777.2 3,391.0 2,978.0 -
Less: General and admin Dec 2016 (189.3) (68.4) (63.9) (34.8) (22.2) -
Dec 2015 (173.8) (56.6) (53.6) (36.0) (27.6) -
Plus: Royalty Dec 2016 528.1 204.8 194.3 113.3 15.7 -
Dec 2015 400.6 196.8 98.4 88.7 16.7 -
Total cash cost(2) Dec 2016 17,684.8 5,703.0 5,171.4 3,831.9 2,978.5 -
Dec 2015 16,607.2 5,374.4 4,822.0 3,443.7 2,967.1 -
Plus: General and admin Dec 2016 189.3 68.4 63.9 34.8 22.2 -
Dec 2015 173.8 56.6 53.6 36.0 27.6 -
Community costs Dec 2016 80.4 16.5 20.3 27.0 16.6 -
Dec 2015 40.7 13.9 8.9 15.0 2.9 -
Share-based payments(3) Dec 2016 39.3 16.5 13.7 9.1 - -
Dec 2015 274.4 35.1 27.6 23.5 - 188.2
Rehabilitation Dec 2016 141.0 (28.9) 44.1 23.2 100.1 2.5
Dec 2015 138.3 23.1 22.9 17.3 75.0 -
Ore reserve development Dec 2016 2,394.4 779.0 912.9 542.9 159.6 -
Dec 2015 2,304.9 727.0 840.6 510.4 226.9 -
Sustaining capital expenditure Dec 2016 613.4 218.5 261.2 84.8 48.9 -
Dec 2015 653.8 249.2 225.6 86.1 92.9 -
On-mine exploration Dec 2016 - - - - - -
Dec 2015 17.3 13.9 0.6 0.9 1.9 -
Less: By-product credit Dec 2016 (28.2) (9.6) (6.8) (7.6) (4.2) -
Dec 2015 (26.8) (8.6) (5.7) (5.8) (6.7) -
Total All-in sustaining cost(4) Dec 2016 21,114.4 6,763.4 6,480.7 4,546.1 3,321.7 2.5
Dec 2015 20,183.6 6,484.6 5,996.1 4,127.1 3,387.6 188.2
Plus: Group exploration growth and
other capital exploration Dec 2016 1,052.2 54.1 130.1 4.8 40.7 822.5
Dec 2015 395.3 18.0 63.7 - 17.6 296.0
Total All-in cost(5) Dec 2016 22,166.6 6,817.5 6,610.8 4,550.9 3,362.4 827.0
Dec 2015 20,578.9 6,502.6 6,059.8 4,127.1 3,405.2 484.2
Gold sold Kg Dec 2016 46,905 16,046 15,176 10,041 5,642 -
Dec 2015 47,775 17,350 14,068 10,105 6,252 -
000'ozs Dec 2016 1,508 515.9 487.9 322.8 181.4 -
Dec 2015 1,536.0 557.8 452.3 324.9 201.0 -
Total cash cost R/kg Dec 2016 377,034 355,416 340,762 381,625 527,916 -
Dec 2015 347,613 309,764 342,764 340,792 474,584 -
US$/oz Dec 2016 799 753 722 809 1,119 -
Dec 2015 848 756 836 831 1,158 -
All-in sustaining cost R/kg Dec 2016 450,152 421,501 427,036 452,754 588,745 -
Dec 2015 422,472 373,752 426,223 408,422 541,843 -
US$/oz Dec 2016 954 893 905 960 1,248 -
Dec 2015 1,031 912 1,040 996 1,322 -
All-in cost R/kg Dec 2016 472,585 424,872 435,609 453,232 595,959 -
Dec 2015 430,746 374,790 430,751 408,422 544,658 -
US$/oz Dec 2016 1,002 901 923 961 1,263 -
Dec 2015 1,051 914 1,051 996 1,329 -
The average exchange rates for the year ended 31 December 2016 and 31 December 2015 were R14.68/US$, and R12.75/US$, respectively.
Figures may not add as they are rounded independently.
Total cash costs are calculated in accordance with the Gold Institute Industry standard.
(1) Operating costs - All gold mining-related costs before amortisation/depreciation, tax, non-recurring items.
(2 Total cash cost - Operating costs less off-mine costs, which include general and administration costs, as detailed in the table above
All-in 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 G&A charges.
(3) Share-based payments are calculated based on the fair value at initial recognition fair value and does not include the fair valuing adjustment of the cash-settled share-based
payment liability to the reporting date fair value.
(4) Total All-in sustaining costs includes operating costs and costs detailed above, including sustaining capital expenditure, based on managed gold sales.
(5) Total All-in costs includes sustaining and Group costs, excluding income tax, M&A activity, working capital, impairments, financing costs, one-time severance charges and items
needed to normalise earnings.
GOLD DIVISION - QUARTERLY SALIENT FEATURES
Salient features and cost benchmarks for the quarters ended 31 December 2016 and
30 September 2016
Gold Division Driefontein Kloof Beatrix Cooke
Under- Under- Under- Under- Under-
Total ground Surface ground Surface ground Surface round Surface ground Surface
Tonnes milled/treated 000't Dec 2016 4,936 1,952 2,984 516 919 517 789 701 361 218 915
Sept 2016 5,238 2,066 3,172 506 1,098 555 687 743 359 262 1,028
Yield g/t Dec 2016 2,41 5.48 0.40 7.25 0.54 6.66 0.51 3.62 0.30 4.50 0.22
Sept 2016 2.27 5.15 0.39 6.85 0.50 6.52 0.53 3.28 0.32 4.30 0.22
Gold produced kg Dec 2016 11,908 10,703 1,205 3,740 499 3,445 399 2,537 107 981 200
Sept 2016 11,897 10,649 1,248 3,468 550 3,617 361 2,438 115 1,126 222
000'o Dec 2016 382.9 344.3 38.8 120.3 16.0 110.8 12.8 81.5 3.5 31.5 6.5
Sept 2016 382.5 342.4 40.1 111.5 17.7 116.3 11.6 78.4 3.7 36.2 7.1
Gold price received R/kg Dec 2016 541,082 540,842 539,790 540,998 570,000
Sept 2016 597,705 597,760 597,386 598,198 606,009
US$/o Dec 2016 1,212 1,212 1,209 1,212 1,277
Sept 2016 1,322 1,323 1,322 1,324 1,341
Operating cost R/t Dec 2016 833 1,893 140 2,312 189 2,090 147 1,324 109 2,265 96
Sept 2016 874 1,996 144 2,479 187 2,207 164 1,226 131 2,802 89
Total cash cost R/kg Dec 2016 346,439 324,260 310,630 368,684 491,538
Sept 2016 398,319 378,372 352,086 389,111 611,573
US$/oz Dec 2016 776 726 696 826 1,101
Sept 2016 881 837 779 861 1,353
Operating margin % Dec 2016 36 36 36 41 35 42 46 32 31 13 18
Sept 2016 36 35 40 39 38 43 48 38 34 (10) 35
All-in sustaining cost R/kg Dec 2016 427,091 393,333 409,843 445,045 562,308
Sept 2016 479,785 449,154 441,956 462,162 676,632
US$/oz Dec 2016 957 881 918 997 1,260
Sept 2016 1,062 994 978 1,023 1,497
All-in cost R/kg Dec 2016 455,370 397,882 423,491 446,710 577,692
Sept 2016 497,794 453,708 452,690 462,201 690,134
US$/oz Dec 2016 1,020 891 949 1,001 1,294
Sept 2016 1,102 1,004 1,002 1,023 1,527
All-in cost margin % Dec 2016 16 26 22 17 (6)
Sept 2016 17 24 24 23 (16)
Ore reserve development R'mil Dec 2016 591,1 184.9 231.6 140.4 34.2
Sept 2016 661.1 214.4 262.8 145.5 38.4
Sustaining capital Dec 2016 258.1 93.4 115.5 35.6 13.6
Sept 2016 144.1 53.7 59.8 17.2 13.4
Corporate and project Dec 2016 257.7 18.8 52.0 0.4 18.1
expenditure(1) Sept 2016 79.3 18.3 42.7 0.1 18.2
Total capital expenditure R'mil Dec 2016 1,106.9 297.1 399.1 176.4 65.9
Sept 2016 1,024.0 286.4 365.3 162.8 70.0
Total capital expenditure US$'mil Dec 2016 79.7 21.4 28.8 12.7 4.7
Sept 2016 71.7 20.1 25.2 11.5 4.9
The average exchange rates for the quarters ended 31 December 2016 and 30 September 2016 were R13.88/US$ and R14.06/US$, respectively.
Figures may not add as they are rounded independently.
(1) Corporate and project expenditure for the quarters ended 31 December 2016 and 30 September 2016 amounted to R168.4 million (US$12.1 million) and R139.5 million
(US$10.0 million), respectively.
PLATINUM DIVISION - QUARTERLY SALIENT FEATURES
Platinum Division - Salient features and cost benchmarks for the quarters ended
31 December 2016 and 30 September 2016
Platinum Division - attributable(1) Kroondal Mimosa Plat Mile Rustenburg
Under- Under-
Total ground Surface Attributable Attributable Surface ground Surface
Tonnes milled/treated 000't Dec 2016 5,808 2,448 3,360 904 340 2,366 1,204 994
Sep 2016 3,112 1,242 1,870 897 345 1,870 - -
Plant head grade g/t Dec 2016 1.88 3.20 0.92 2.44 3.61 0.67 3.65 1.53
Sep 2016 1.49 2.79 0.63 2.51 3.53 0.63 - -
Plant recoveries % Dec 2016 66.37 82.93 24.66 82.29 78.28 12.38 84.54 37.42
Sep 2016 63.60 80.75 12.77 81.97 78.50 12.77 - -
PGM 4E production(2) 4Eoz Dec 2016 233,199 208,586 24,613 58,252 30,863 6,297 119,471 18,316
Sep 2016 94,791 89,990 4,801 59,268 30,722 4,801 - -
Average PGM 4E basket price R/4Eoz Dec 2016 11,900 11,872 12,133 11,688 12,228 11,754 11,870 12,263
Sep 2016 12,726 12,711 13,015 12,949 12,252 13,015 - -
US$/4Eoz Dec 2016 857 855 874 842 881 847 855 883
Sep 2016 901 899 925 914 871 925 - -
Operating cost R/t Dec 2016 424 945 45 604 917 11 1,209 128
Sep 2016 290 703 16 625 907 16 - -
US$/t Dec 2016 31 68 3 44 66 1 87 9
Sep 2016 21 50 1 44 64 1 - -
Operating margin % Dec 2016 8 5 36 7 19 47 1 33
Sep 2016 25 24 39 23 26 39 - -
Operating cost(3) R/4Eoz Dec 2016 10,571 11,090 6,176 9,368 10,103 4,002 12,185 6,923
Sep 2016 9,532 9,701 6,361 9,453 10,179 6,361 - -
US$/4Eoz Dec 2016 762 799 445 675 728 288 878 499
Sep 2016 678 690 452 672 724 452 - -
Total capital expenditure Rm Dec 2016 269.3 269.1 0.2 67.0 53.4 0.2 148.7 -
Sep 2016 87.5 87.2 0.3 41.5 45.7 0.3 - -
US$ mil Dec 2016 19.3 19.3 - 4.8 3.8 - 10.7 -
Sep 2016 6.2 6.2 - 2.9 3.3 - - -
Figures may not add as they are rounded independently.
(1 Platinum Division includes the attributable operations of Kroondal (50%), Mimosa (50%), Platinum Mile surface operation and Rustenburg since acquisition on 1 November 2016.
(2) Production per product
Quarter ended
Dec 2016 Sep 2016
Platinum 134,836 52,480
Palladium 73,437 31,697
Rhodium 19,457 8,129
Gold 5,469 2,485
PGM4E production (4Eoz) 233,199 94,791
Ruthenium 30,804 12,368
Iridium 7,047 3,038
Total 271,050 110,197
(3) Operating costs are all mining related costs before amortisation and depreciation, royalties, taxation and non-recurring items.
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.
Quarter ended Quarter ended Year ended
Driefontein 31 December 2016 30 September 2016 31 December 2016
Carbon Carbon Carbon
Reef leader Main VCR leader Main VCR leader Main VCR
Advanced (m) 1,512 974 845 1,237 963 771 6,111 3,480 3,866
Advanced on reef (m) 237 378 131 130 214 109 874 1040 482
Channel width (cm) 36 50 116 78 41 96 56 60 96
Average value (g/t) 33.8 11.6 27.2 13.7 16.3 41.5 21.6 9.5 36.4
(cmg/t) 1,218 578 3,141 1,067 669 3,980 1,203 567 3,511
Quarter ended Quarter ended Year ended
Kloof 31 December 2016 30 September 2016 31 December 2016
Reef Kloof Main Libanon VCR Kloof Main Libanon VCR Kloof Main Libanon VCR
Advanced (m) 681 768 170 2,425 617 782 226 2,330 2,824 3,064 696 9,583
Advanced on reef (m) 206 69 - 454 292 116 - 476 992 422 32 1,949
Channel width (cm) 115 48 - 102 142 50 - 110 156 82 117 111
Average value (g/t) 11.6 18.9 - 25.4 5.6 13.8 - 22.9 7.8 8.7 11.0 22.8
(cmg/t) 1,331 907 - 2,584 794 696 - 2,514 1,220 714 1,286 2,526
Quarter ended Quarter ended Year ended
Beatrix 31 December 2016 30 September 2016 31 December 2016
Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Advanced (m) 4,613 723 4,503 756 17,986 3,294
Advanced on reef (m) 1,289 138 1,354 85 5,168 675
Channel width (cm) 145 102 128 118 129 130
Average value (g/t) 5.9 13.3 7.7 16.9 7.2 13.5
(cmg/t) 861 1,361 992 1,998 932 1,522
Quarter ended Quarter ended Year ended
Cooke 31 December 2016 30 September 2016 31 December 2016
Elsburgs Elsburg Kimberley Elsburgs Elsburg Kimberley Elsburgs Elsburg Kimberley
Reef VCR Reefs Massives Reefs VCR Reefs Massives Reefs VCR Reefs Massives Reefs
Advanced (m) 203 831 - 184 268 1,124 - 226 1,155 5,002 173 785
Advanced on reef (m) 45 142 - 27 129 434 - 71 534 1,758 125 201
Channel width (cm) 73 88 - 119 248 232 - 213 241 243 352 223
Average value (g/t) 5.4 10.6 - 4.7 3.8 3.5 - 2.9 3.0 4.0 4.7 3.6
(cmg/t) 392 933 - 559 954 816 - 628 725 982 1,654 807
Quarter ended Period ended
Kroondal(1) 31 December 2016 31 December 2016
Reef Kopaneng Simunye Bambanani Kwezi K6 Kopaneng Simunye Bambanani Kwezi K6
Advanced (m) 701 552 1,160 767 974 1,925 1,540 3,133 2,094 2,529
Advanced on reef (m) 300 477 294 694 971 1,409 1,417 1,777 1,587 2,492
Channel width (cm) 102 183 45 104 193 159 189 71 85 178
Height (cm) 260 244 224 240 254 250 235 224 231 241
Average value (g/t) 1.26 2.16 0.81 2.45 2.46 1.75 2.2 1.57 2.03 2.65
(cmg/t) 326 528 182 587 627 439 517 352 470 640
(1) Development data since acquisition on 12 April 2016.
Period ended
Rustenburg(2) 31 December 2016
Reef Bathopele Thembelani Khuseleka Siphumelele
Advanced (m) 190 1,387 1,254 1,291
Advanced waste (m) - 942 1,018 986
Advanced on reef (m) 190 445 236 305
Channel width (cm) 73 - - -
Height (SW) (cm) 219 119 117 122
Average value (g/t) 2.61 4.06 4.14 5.55
(cmg/t) 570 483 485 677
(2) Development data since acquisition on 1 November 2016.
FORWARD LOOKING STATEMENTS
This document includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as
"target", "will", "would", "expect", "anticipate", "plans", "potential", "can", "may" and other similar expressions that predict
or indicate future events or trends or that are not statements of historical matters.
These forward-looking statements, including, among others, those relating to Sibanye's future business prospects, revenues
and income, expected timings of the Stillwater transaction (the "Transaction") (including completion), potential Transaction
benefits (including statements regarding growth and cost savings) or information related to the Blitz Project, 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; Sibanye's or
Stillwater's ability to complete the proposed Transaction; the inability to complete the proposed Transaction due to failure to
obtain approval of the shareholders of Sibanye or Stillwater or other conditions in the merger agreement; Sibanye's ability to
achieve anticipated efficiencies and other cost savings in connection with the Transaction; the success of Sibanye's business
strategy and changes thereto, 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. Further details of potential risks and uncertainties affecting Sibanye are described
in Sibanye's filings with the JSE and the SEC, including in Sibanye's Annual Report on Form 20-F, for the fiscal year ended
31 December 2015 and the Integrated Annual Report 2015. 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.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
This document does not constitute the solicitation of any vote, proxy or approval. In connection with the proposed
Transaction, Sibanye intends to post to its shareholders a JSE Limited ("JSE") Category 1 circular subject to the approval of the
circular by the JSE and Stillwater has filed with the Securities and Exchange Commission (the "SEC") relevant materials,
including a proxy statement. The JSE Category 1 circular and other relevant documents will be sent or otherwise disseminated
to Sibanye's shareholders and will contain important information about the proposed Transaction and related matters.
SHAREHOLDERS OF SIBANYE ARE ADVISED TO READ THE JSE CATEGORY 1 CIRCULAR AND OTHER RELEVANT DOCUMENTS WHEN
THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The
proxy statement and other relevant documents will be sent or otherwise disseminated to Stillwater's shareholders and will
contain important information about the proposed Transaction and related matters. SHAREHOLDERS OF STILLWATER ARE
ADVISED TO READ THE PROXY STATEMENT THAT HAS BEEN FILED AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN
THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
When available, Sibanye shareholders may obtain free copies of the JSE Category 1 circular by going to Sibanye's website
at www.sibanye.co.za. The proxy statement and other relevant documents may also be obtained, free of charge, on the
SEC's website (http://www.sec.gov). Stillwater shareholders may obtain free copies of the proxy statement from Stillwater by
going to Stillwater's website at www.stillwatermining.com.
PARTICIPANTS IN THE SOLICITATION
Sibanye, Stillwater and their respective directors and officers may be deemed participants in the solicitation of proxies of
Sibanye's and Stillwater's respective shareholders in connection with the proposed Transaction. Sibanye's shareholders and
other interested persons may obtain, without charge, more detailed information regarding the directors and officers of
Sibanye in Sibanye's Annual Report on Form 20-F, for the fiscal year ended 31 December 2015, which was filed with the SEC
on 21 March 2016. Stillwater's shareholders and other interested persons may obtain, without charge, more detailed
information regarding the directors and officers of Stillwater in Stillwater's Annual Report on Form 10-K for the fiscal year ended
31 December 2015, which was filed with the SEC on 22 February 2016. Additional information regarding the interests of
participants in the solicitation of proxies in connection with the proposed Transaction is included in the proxy statement that
Stillwater has filed with the SEC.
NO OFFER OR SOLICITATION
This document is for informational purposes only and does not constitute an offer to sell, or a solicitation of offers to purchase
or subscribe for, securities in the United States or any other jurisdiction. Any securities referred to herein that are being offered
outside of the United States have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be
offered, exercised or sold in the United States absent registration or an applicable exemption from registration requirements.
The public offering of securities currently intended by the issuer to be made in the United States will be made by means of a
prospectus that may be obtained from the issuer and that will contain detailed information about the company, its
management and financial statements.
ADMINISTRATION AND CORPORATE INFORMATION
Sibanye Gold Limited Corporate Secretary JSE Sponsor Transfer Secretaries
Incorporated in the Cain Farrel JP Morgan Equities South Africa South Africa
Republic of South Africa Tel: +27 10 001 1122 Proprietary Limited (Registration Computershare Investor
Registration number Fax: +27 11 278 9863 number : 1995/011815/07) Services Proprietary Limited
2002/031431/06 E-mail: 1 Fricker Road Rosebank Towers
Share code: SGL cain.farrel@sibanyegold.co.za Illovo, Johannesburg 15 Biermann Avenue
Issuer code: SGL 2196 Rosebank
ISIN: ZAE E000173951 Directors South Africa 2196
Sello Moloko(1) (Chairman) (Private Bag X9936, Sandton, 2196, (PO Box 61051, Marshalltown,
Listings Neal Froneman (CEO) South Africa) 2107 , South Africa)
JSE: SGL Charl Keyter (CFO) Tel: +27 11 370 5000
NYSE: SBGL Chris Chadwick(2) Office of the United Kingdom Fax: +27 11 688 5248
Robert Chan(2) Secretaries
Website Timothy Cumming(1) London Transfer Secretaries
www.sibanyegold.co.za Barry Davison(1) St James's Corporate Services United Kingdom
Rick Menell(1) Limited Capita Asset Services
Registered Office Nkosemntu Nika(1) Suite 31, Second Floor The Registry
Libanon Business Park Keith Rayner(1) 107 Cheapside 34 Beckenham Road
1 Hospital Street, Susan van der Merwe(1) London Beckenham
(Off Cedar Ave), Jerry Vilakazi(1) EC2V 6DN Kent
Libanon, Westonaria, Jiyu Yuan(2) United Kingdom BR3 4TU
1780 (1) Independent non-executive Tel: +44 20 7796 8644 England
South Africa (2) Non-independent non- Fax: +44 20 7796 8645 Tel: 0871 664 0300
(Private Bag X5, Westonaria, executive [calls cost 10p a minute plus
1780, South Africa) American Depository Receipts network extras, lines are open
Tel: +27 11 278 9600 Transfer Agent 8.30am - 5pm Mon-Fri] or
Fax: +27 11 278 9863 BNY Mellon Shareowner Services +44 20 8639 3399 (from
PO Box 358516 overseas)
Investor Enquiries Pittsburgh Fax: +44 20 8658 3430
James Wellsted PA15252-8516 e-mail:
Senior Vice President: US toll-free: ssd@capitaregistrars.com
Investor Relations +1 888 269 2377
Sibanye Gold Limited Tel: +1 201 680 6825 Auditors
Tel: +27 83 453 4014 e-mail: shrrelations@bnymellon.com KPMG Inc.
+27 11 278 9656 KPMG Crescent
E-mail: Tatyana Vesselovskaya 85 Empire Road
james.wellsted@sibanyegold.co.za Relationship Manager Parktown
BNY Mellon 2193
Depositary Receipts Johannesburg
Direct Line: +1 212 815 2867 South Africa
Mobile: +1 203 609 5159 Tel: +27 11 647 7111
Fax: +1 212 571 3050
Email:
tatyana.vesselovskaya@bnymellon.com
Date: 23/02/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
