Wrap Text
Interim results for the six months ended 30 June 2017
SIBANYE GOLD LIMITED
Trading as SIBANYE-STILLWATER
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
Issuer code: SGL
ISIN: ZAE E000173951
Operating and financial results
For the six months ended 30 June 2017
WESTONARIA, 30 August 2017: Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater or the Group) (JSE: SGL and NYSE:
SBGL) is pleased to report operating results and reviewed condensed consolidated interim financial statements for the six months
ended 30 June 2017.
SALIENT FEATURES FOR THE SIX MONTHS ENDED 30 JUNE 2017
- Group operating profit of R3,233 million (US$245 million) impacted by lower average gold price and gold production for the period
- Gold production of 21,418kg (688,600oz) resulting in an operating profit of R2,353 million (US$178 million)
- Operating profit of R506 million (US$38 million) from SA PGM operations. Operational turnaround exceeding expectations
- R550 million per annum operational synergies realised, well ahead of schedule, at SA PGM operations, with annualised
synergies forecast at R1,000 million
- Successful integration of US PGM operations and higher palladium price resulting in an attributable operating profit of
US$28 million for first two months since acquisition
- Blitz project to be commissioned ahead of schedule in the December 2017 quarter
- Refinancing of the US$2,650 million Stillwater Bridge Facility was well supported, with $2,050 million refinanced through capital raised
during the June 2017 quarter. The residual portion will be refinanced before year-end
- A capitalisation issue of 2 (two) new shares for every 100 (one hundred) held, maintaining our commitment to deliver industry leading
returns to shareholders
US dollar SA rand
Six months ended Six months ended
Jun 2016 Dec 2016 Jun 2017 KEY STATISTICS Jun 2017 Dec 2016 Jun 2016
SOUTHERN AFRICA (SA) REGION
Gold operations
746.8 765.4 688.6 000'oz Gold produced kg 21,418 23,805 23,229
1,220 1,268 1,233 US$/oz Average gold price R/kg 523,303 569,535 603,427
346.0 345.8 178.1 US$m Operating profit Rm 2,353.0 4,834.6 5,320.7
38 36 21 % Operating margin % 21 36 38
908 1,005 1,143 US$/oz All-in sustaining cost(4) R/kg 485,441 451,352 448,922
Platinum Group Metals (PGM) operations(1)
92,773 327,990 590,712 oz 4E PGM 3 production kg 18,373 10,201 2,886
832 874 909 US$/4Eoz Average basket price R/4Eoz 11,997 12,204 12,499
4.7 20.9 38.3 US$m Operating profit Rm 505.5 304.1 72.2
10 10 8 % Operating margin % 8 10 10
- - 785 US$/4Eoz All-in sustaining cost(4) R/4Eoz 10,364 - -
UNITED STATES (US) REGION
Platinum Group Metals (PGM) operations(2)
- - 93,725 oz 2E PGM 3 production kg 2,915 - -
- - 850 US$/2Eoz Average basket price R/2Eoz 11,242 - -
- - 28.3 US$m Operating profit Rm 374.0 - -
- - 38 % Operating margin % 38 - -
- - 622 US$/2Eoz All-in sustaining cost(4) R/2Eoz 8,134 - -
GROUP
21.7 230.5 (363.8) US$m Basic earnings Rm (4,803.7) 3,368.6 333
72.4 97.0 (165.2) US$m Headline earnings Rm (2,181.8) 1,372.7 1,113.9
139.9 109.2 (75.8) US$m Normalised earnings Rm (1,001.8) 1,505.0 2,152.0
15.38 13.97 13.21 R/US$ Average exchange rate
(1) The SA PGM operations' results for the six months ended 31 December 2016 include the Rustenburg Operations for two months since acquisition and the results
for the six months ended 30 June 2016 include the Aquarius subsidiaries for three months since acquisition.
(2) The US PGM operations' results include Stillwater for two months since acquisition. Stillwater's production is converted to metric tonnes and kilograms.
The income and expenses are translated into SA rand at the average exchange rate for the two months ended 30 June 2017.
(3) Platinum Group Metals (PGM), of which 4E represents platinum, palladium, rhodium and gold, and 2E represents platinum and palladium. Mined production excluding
recycled production
(4) All-in sustaining cost is defined as production costs plus all costs relating to sustaining current production and sustaining capital expenditure, and includes
(but not limited to) operating costs, share-based payments, royalties, rehabilitation costs and sustaining capital expenditure, and excludes non-4E/2E PGM
production.
Stock data for the six months ended 30 June 2017 JSE Limited - (SGL)
Number of shares in issue Price range per ordinary share R15.05 to R35.40
- at 30 June 2017 2,125,844,078 Average daily volume 11,283,163
- weighted average 1,268,828,103 NYSE - (SBGL); one ADR represents four ordinary shares
Free Float 80% Price range per ADR US$4.62 to US$7.05
Bloomberg/Reuters SGLS/SGLJ.J Average daily volume 6,724,612
STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER OF SIBANYE-STILLWATER
Over the course of the last year, the Group has fundamentally changed, transforming from a gold mining company with its asset base
entirely located in South Africa, into a leading international precious metals company, with assets on three continents.
The acquisition of the Rustenburg Operations in November 2016, following shortly after the acquisition of Aquarius Platinum Limited
(Aquarius) in April 2016, established Sibanye, at the time, as the fifth largest PGM producer globally, reinforcing our position as a top
10 global gold producer and creating a significant Southern African precious metals producer. The subsequent acquisition in
May 2017 of Stillwater Mining Company (Stillwater), a sizeable, high quality, low cost PGM producer, located in Montana in the United
States of America (US), was another truly transformative strategic step for the Group, creating a unique, international global precious
metals company.
All of the abovementioned transactions, while occurring in a relatively short space of time, were well supported by shareholders, and
other global investors in both the US$1,000 million equity capital raise and the US$1,050 million corporate bond. The successful capital
raising was a strong endorsement by investors of the decision to acquire Stillwater.
To reflect these fundamental changes, we have today rebranded the Group as Sibanye-Stillwater, which we believe retains the
value of both the Sibanye and Stillwater brands and better captures our international profile.
Our core purpose, vision and CARES values remain consistent. Our core purpose that "Our mining improves lives" captures the
essence of how we operate, uplifting our employees' and communities' living standards and contributing positively to broader
society and the economy, not only through our operating activities, but also through the products of our activities. The PGMs we
produce in particular, contribute through catalysis towards a clean and healthy environment. The Sibanye-Stillwater Group is now
even better positioned to continue delivering on its vision of "creating superior value for all of its stakeholders". In this regard I am
also pleased to advise that the Board has resolved to issue 2 capitalisation shares per 100 held, to shareholders, thereby ensuring a
consistent approach to delivering superior returns to shareholders. We are cognizant of our track record of paying industry leading
dividends, with the approximate average annual dividend of 5% over the last four years, well ahead of our peers. Further capitalisation
issues may be considered by the Board in future, depending on the Group's leverage.
The positive progress made with the integration of the new PGM acquisitions into the Group during the first half of this year has been
particularly pleasing to note, with the PGM assets in both the Southern Africa Region (SA Region) and United States Region (US
Region) continuing to perform well and the SA PGM operations starting to deliver significant synergies. I remain confident that the
strategic rationale and timing of the move into the PGM sector are sound, and that the PGM operations will contribute strongly to
the Group and create significant shareholder value.
Despite the challenging economic environment in 2017, the SA gold operations have generally performed satisfactorily, barring the
Cooke Operations and the Beatrix West mine. Unfortunately it is not sustainable to continue operating these business units at a loss
and as such notice has been given to all stakeholders and consultations in terms of Section 189 of the Labour Relations Act, 66 of
1995 (S189), which was announced on 3 August 2017, have begun.
With the significant increase in size and geographical spread of the company, we have transitioned the Group organisational
structure from a divisional commodity-focused structure to a geographical, regionalised structure. This regionalised organisational
structure will ensure effective leadership and appropriate focus and role clarity in well-defined geographical regions and corporate
functions. This focus coupled with a strong executive presence in clearly understood social and cultural regions, will position Sibanye-
Stillwater for continued delivery of operational and strategic goals. I am confident that the Group has sufficient management
capacity and competence to manage the enlarged portfolio and diversity.
In this regard, Chris Bateman, CFO of Stillwater since 2014, has been appointed as Executive Vice President of the US Region and
Ken Kluksdahl, who has significant experience in similar operations and originates from Montana, has been appointed as Chief
Operating Officer. Mick McMullen, the previous CEO of Stillwater has agreed to act in an advisory capacity until December 2018.
In the SA Region, Robert van Niekerk has been appointed as Executive Vice President: SA Region, where he will be supported by a
strong and experienced team. Robert has served as an executive of the Group since 2013, and has played a key role in improving
organizational effectiveness, most recently driving the successful integration of the SA PGM operations in his role as head of the
platinum division.
Sibanye-Stillwater will continue to adopt a prudent approach to capital management; our objective is to maintain a strong balance
sheet, preserving long term financial flexibility, which ensures sustainable shareholder returns. Group debt has increased pursuant to
the Stillwater Transaction, with net debt (excluding the Burnstone Debt) at 30 June 2017 of R22,093 million (US$1,692 million). The
residual US$361 million at 30 August 2017 of the Stillwater Bridge Facility is expected to be refinanced before the end of the year. The
Group has committed, unutilised debt facilities of R3,835 million (US$294 million) at 30 June 2017.
Net debt to earnings before interest, taxes, depreciation and amortisation (ND:EBITDA) has increased to 2.6:1 following the Stillwater
Transaction. In order to accommodate the temporarily elevated leverage levels for a period, covenants on the Stillwater Bridge
Facility, as well as Sibanye-Stillwater's existing facilities, have been increased to permit a ND:EBITDA ratio of 3.5:1, calculated on a
quarterly basis, through to 31 December 2018. During this time, Sibanye-Stillwater's ND:EBITDA ratio is expected to peak at no more
than 3.0:1. Consistent with its long-term capital management goals, Sibanye-Stillwater plans to reduce its ND:EBITDA ratio to no more
than 1.0:1 within three to four years.
SAFETY
Safety remains our key priority as a Group and we will establish best practice based on the exemplary safety records of our US PGM
operations.
Safety indicators for the SA Region for the six months ended 30 June 2017 improved significantly when compared with the same
period in 2016, with the Serious Injury Frequency Rate improving by 18% to 3.96 per million hours and the Lost Day Injury Frequency
Rate improving by 10 % to 6.46 per million hours. These improvements are largely on the back of the rigorous implementation and
monitoring of the 12 point safety improvement plan initiated in the second half of 2016.
Regrettably there were six fatalities across the SA Region during the first half of 2017 compared with eight at the SA gold operations
in 2016.
Sibanye-Stillwater Management and the Board express their sincere condolences to the family and colleagues of the deceased
employees: Sphampano Machenene, Mxolisi Cekiso, Mbuzeni Ncobela, Seabata Khetla, Andile Nkwenkwe and Sydney Mohale.
The main causal factors involve rail bound equipment and falls of ground. Operational initiatives that are aimed at reducing the
number of fatalities towards our goal of "Zero Harm" include a formal review of all fatal incidents or high potential incidents and
ensuring that any outcomes are communicated at all the operations in an attempt to prevent similar accidents or fatalities. In
addition, a multidisciplinary "Zero Harm Task Team" (ZHTT) conducts detailed follow up audits to ensure effective close out of all
action plans to prevent repeats. The ZHTT also proactively monitors leading indicators to identify opportunities to intervene and avert
potential incidents.
FINANCIAL OVERVIEW
The inclusion of the SA PGM operations for the full six month period ended 30 June 2017 as well as the consolidation of the US PGM
operations for two months, makes direct comparison with the financial results for the six months ended 30 June 2016 difficult. The
significant increase in non-recurring items including the increase in the issued share capital of the Group following the equity capital
raise during June 2017, add further complexity to the comparison of the appropriate periods.
Group revenue for the six months ended 30 June 2017 of R19,219 million (US$1,455 million) was 31% higher than for the comparable
period in 2016, due to the inclusion of R7,944 million (US$601 million) revenue from the PGM operations, which offset a R2,741 million
(US$58 million) decline in revenue from the SA gold operations. Lower revenue from the SA gold operations was primarily due to a
13% decline in the average rand gold price received to R523,303/kg.
Consolidation of the PGM operations also resulted in Group operating costs increasing by 72% or R6,675 million (US$605 million) to
R15,987 million (US$1,210 million), with amortisation and depreciation increasing by 28% to R2,497 million (US$189 million). As a
consequence, Group net operating profit for the six months ended 30 June 2017 of R736 million (US$56 million), was substantially
lower than for the comparable period in 2016.
Net other losses for the six months ended 30 June 2017 amounted to R5,780 million (US$438 million) primarily due to non-recurring
expenses including impairments, mainly at Cooke and Beatrix, of R2,796 million (US$212 million), a provision for the expected future
occupational healthcare settlement of R1,077 million (US$82 million) as well as net finance expenses of R1,245 million (US$94 million),
an increase year-on-year of R1,021 million (US$80 million) due to increased debt and fees related to the Stillwater Transaction (refer
to the notes to the financial statement for more detail). This resulted in the Group recording a net loss for the period of R4,803 million
(US$364 million) compared with a R88 million (US$6 million) net profit for the comparable period in 2016.
The normalised loss (attributable profit/loss adjusted for gains and losses on foreign exchange and financial instruments, non-recurring
items and share of result of equity-accounted investees after tax) for the six months ended 30 June 2017 was R1,002 million
(US$76 million).
The Group continues to remain focused on deleveraging the balance sheet and conserving cash resources and therefore, long term
growth projects such as the WRTRP remain suspended. Key projects that are an integral component of the life of mine plans, such
as the Kloof and Driefontein drop down projects, will continue to receive funding. The payment of cash dividends is also deemed
inappropriate until leverage is reduced.
OPERATING REVIEW
SA REGION
SA gold operations
The average dollar gold price received of US$1,233/oz for the six months ended 30 June 2017 was similar to that for the comparative
period in 2016, however the 14% appreciation of the rand relative to the US dollar from an average of R15.38/US$ to R13.21/US$,
resulted in the average rand gold price achieved declining by 13% from R603,427/kg to R523,303/kg.
Gold produced for the six months ended 30 June 2017 was 8% lower than for the comparable period in 2016 to 21,418kg (688,600oz).
This was primarily due to the suspension of operations at Cooke 4 during the second half of 2016, the impact of illegal mining at the
Cooke Operations, and lower volumes and grades from Beatrix West. As previously mentioned, action has been taken to address
these underperforming operations.
Operating costs at the SA gold operations increased in absolute terms, by approximately 3% to R8,923 million (US$676 million), with
unit costs 4% higher at R900/tonne milled. Above inflation increases in wages and other costs were partly offset by the cessation of
mining operations at Cooke 4. Total cash cost (TCC) and All-in sustaining cost (AISC) increased by 9% and 8%, respectively to
R414,902/kg (US$977/oz) and R485,441/kg (US$1,143/oz), reflecting lower gold output. Excluding the cost structures associated with
the Cooke Operations and Beatrix West mine, as well as production from these operations, AISC for the SA gold operations would
have been approximately R25,000/kg (US$60/oz) lower.
Underground production at the Driefontein Operations of 6,677kg (214,700oz) was marginally higher year-on-year. A 4% decline in
yield was offset by a 3% increase in ore milled, to 1.07 million tonnes, due to an increase in development material processed. Gold
production from surface sources decreased by 20% to 927kg (29,800oz) due to depletion of higher grade surface resources and a
3% decline in surface throughput to 1.84 million tonnes, due to planned mill maintenance.
The Kloof Operations delivered a strong performance, with underground production increasing by 3% to 6,836kg (219,780oz) and
surface production increasing by 6% to 790kg (25,400oz). Higher underground mining volumes resulted in a 15% increase in ore milled
to 1.08 million tonnes, which offset a 10% decline in underground yield following a decision to reduce handling costs by processing
development material with ore. Surface throughput increased by 43% to 1.7 million tonnes due to an increase in the volume of
Venterspost surface material treated at the Ezulwini plant, post the closure of Cooke 4.
At the Beatrix Operations, underground gold production decreased by 6% to 4,357kg (140,100oz), primarily due to a decrease in
volumes and lower yields from Beatrix West. Gold production from surface sources decreased by 34% to 144kg (4,600oz), due to a
37% reduction in throughput as surface resources are depleted.
Underground production from the Cooke Operations of 1,308kg (42,000oz) was 52% lower than for the comparable period in 2016,
due to the cessation of mining at Cooke 4 and the impact of the industrial action resulting from attempts to address illegal mining at
the Cooke Operations. Surface production increased marginally to 379kg (12,200oz) as a result of a small increase in the yield to
0.19g/t due to processing more sand material with a higher grade.
SA PGM operations
The continuing integration of the SA PGM operations has been pleasing, with the solid performance delivered at the end of 2016
being maintained during the first half of 2017. The initial restructuring announced on 26 January 2017 was concluded successfully
during the June 2017 quarter and realisation of further cost and operational synergies is well advanced and ahead of previous
guidance.
The SA PGM operations delivered attributable 4E PGM production of 590,712oz for the six months ended 30 June 2017, which on an
annualised basis, is 7% ahead of previous guidance. TCC of R10,256/4Eoz (US$777/4Eoz) was marginally higher than for the preceding
six months ended 31 December 2016. Costs for the six months ended 30 June 2017 include the Rustenburg Operations for the entire
period, compared with two months in the previous reporting period, and as such, this reflects a positive improvement in costs and is
well below previous TCC guidance for the year of between R11,150/4Eoz and R11,450/4Eoz.
Despite the average 4E PGM basket price for the period remaining subdued at R11,997/4Eoz (US$909/4Eoz), the SA PGM operations
recorded a R506 million (US$38 million) operating profit, at an average 8% operating margin. An additional attributable, R195 million
(US$15 million) operating profit from Mimosa is not included in reported Group operating profit, but is separately equity accounted
under sundry items.
Realised metallurgical chrome prices declined from a peak of US$400/tonne in December 2016, to US$140/tonne at period end,
resulting in a negative mark-to-market adjustment of approximately R250 million for the period, with chrome prices having stabilised
to above US$170/tonne post June 2017, we expect a positive unwind of this provision during the second half of 2017.
The operational turnaround at the Rustenburg Operations, since their acquisition on 1 November 2016, has exceeded our
expectations and plans. 4E PGM production of 406,316oz, was above that forecast for the first half of the year. Average unit costs
have declined by 14% since acquisition, with TCC of R10,458/4Eoz (US$792/4Eoz) reported for the period under review. These cost
reductions represent tangible and sustainable reductions, with total overheads at the Rustenburg Operations having decreased by
approximately 24% (R360 million) as a result of initial restructuring efforts during the integration into the Group.
Sibanye-Stillwater has elected to report AISC (which includes capital expenditure and royalties, net of by-product credits) at its PGM
operations for consistency with its SA gold operations. AISC for the Rustenburg Operations of R10,458/4Eoz (US$792/4Eoz) represents
a realised negative 3% margin. With further cost and operational synergies expected these operations are close to breakeven
despite low PGM spot prices, which is a solid outcome in just eight months under Sibanye-Stillwater management and reflects the
benefit already occurring from operational consolidation.
To date, approximately R550 million of the R800 million annual cost and operational synergies which were initially identified, have
been achieved, with annualised benefits of approximately R1,000 million. This is significantly earlier than the three year period we
had initially forecast to realise these benefits, underpinning the strong rationale for making these acquisitions and for consolidation
of the industry. We are confident that these cost reductions have been achieved, and are sustainable.
Kroondal, Mimosa and Platinum Mile reported attributable 4E PGM production of 184,396oz for the six months ended 30 June 2017.
Cost performance for the three operations was maintained within guidance.
US REGION
US PGM operations
The US PGM operations, comprising the Stillwater Mine, East Boulder Mine, Columbus processing facilities, the recycling operations
and the Blitz project have been incorporated into the Sibanye-Stillwater group effective from 4 May 2017.
For the two months under Sibanye-Stillwater control, the US PGM operations reported mined 2E PGM production of 93,725oz at AISC
of US$622/2Eoz. On an annualised basis, this compares with reported mined 2E PGM production of 545,300oz and average AISC of
US$622/2Eoz for the year ended 31 December 2016. Capital expenditure of US$25 million included US$13 million on the Blitz project.
Development of the Blitz project is well ahead of schedule and we are pleased to advise that we expect first production from Blitz
in the December 2017 quarter. Approximately US$260 million project capital expenditure was scheduled through to the end of 2019, of
which US$145 million has been spent.
Notably, mainly due to the sharp increase in the palladium price in 2017, the average PGM basket price of US$850/2Eoz for the two
months, was approximately US$155/2Eoz (or 22%) higher than the average basket price received in 2016. This average basket price
implies approximately US$85 million per annum in additional revenue. Should the palladium price remain at current levels, the US
Region will continue to finance its own capital, service the financing costs associated with its purchase and contribute significant
additional cash flow to the Group.
The industry leading Recycling Operation at Columbus delivered strong growth in recycling volumes, averaging approximately
25.2 tonnes of feed material per day compared with 20.4 tonnes per day during the first half of 2016 and contributed US$3 million to
Group operating profit for the two months since acquisition, with the US PGM operations as a whole contributing US$28 million
(R374 million) for the two months.
CORPORATE ACTION
The Stillwater Transaction
It was pleasing to note the overwhelming support by shareholders for the Stillwater Transaction, which was successfully concluded
on 4 May 2017. The subsequent refinancing of the R2,650 million Stillwater Bridge Facility was also strongly supported, with the
US$1,000 million equity capital raise five times oversubscribed and the US$1,050 million corporate bond 100% oversubscribed and
competitively priced.
This acquisition has established Sibanye-Stillwater in the top three global producers of both platinum and palladium, with its mix of
metals unique in the industry. The strategic benefits of both the geographic and commodity diversification are also already evident,
given heightened regulatory and investment uncertainty in South Africa and the robust price gains and positive outlook for
palladium.
Refinancing of the residual US$361 million at 30 August 2017 of the Stillwater Bridge Facility is well advanced. A number of financing
options are currently available and a decision is expected to be made during the course of the September 2017 quarter, following
due consideration of Group strategic requirements and relative financing costs.
Operational restructuring
We have consistently stated that maintaining loss-making operations is not sustainable over an extended period. Cross-subsidising
loss making operations erodes value, is a drain on cash flow and, as a result, threatens the sustainability and economic viability of
other operations. As responsible operators, we continually review and assess the operating and financial performance of our assets.
In this regard, with ongoing rand strength impacting on revenues and after numerous attempts to address losses at the Cooke
Operations and Beatrix West mine, it became necessary to enter into S189 consultations with relevant stakeholders regarding
restructuring at the SA gold operations. The underperformance of these assets significantly affected the results for the SA Gold
operations which, without these operations, would have reported approximately R25,000/kg lower AISC and substantially enhanced
cash flow. The decision to commence with this restructuring process was not taken lightly and all alternatives to closure will be
considered during the stipulated consultation period with relevant stakeholders.
The Reviewed Mining Charter
The Reviewed Mining Charter published on 15 June 2017 by the South African Department of Mineral Resources (DMR) contained a
number of amendments to the 2016 draft, of which the mining industry, represented by the Chamber of Mines (the Chamber) was
not aware. On 26 June 2017, the Chamber applied to the High Court of South Africa for an urgent interdict to prevent the
implementation of the Reviewed Mining Charter. The application will be heard on 14 and 15 September 2017.
Sibanye-Stillwater fully supports the Chamber's application and its view that the Reviewed Mining Charter in its current form will deter
investment and cause significant harm to the industry. The negative market reaction to the Reviewed Mining Charter and its specific
impact on investor sentiment at the time that Sibanye-Stillwater was issuing its corporate bond, are evidence of this.
Sibanye-Stillwater, and the mining industry in general, has delivered significant transformation and economic upliftment. Consistent
with our vision of creating superior value for all stakeholders, we will continue to do so as long as the business remains
profitable and sustainable. Capital investment is a prerequisite to ensure ongoing value creation, sustainability and growth, but
unfortunately the current uncertain regulatory environment in South Africa is problematic and is not conducive to long term capital
investment, resulting in low economic growth and high rates of unemployment.
OUTLOOK
Operationally, the second half of the year is seasonally better in South Africa, and combined with the restructuring initiatives referred
to earlier, the outlook for the Group for the rest of the year is significantly better. Implementation of the Sibanye-Stillwater operating
model at the SA PGM operations is delivering positive results and as the integration continues, we expect further cost and operational
synergies to be realised. The US PGM operations continue to operate well and at current spot PGM prices and with the Blitz project
building production, will soon begin to make a significant financial contribution to the Group.
Production and costs for the year from the SA gold operations will depend on the outcome of the S189 consultation process, which
is expected to conclude in early to mid-October 2017. Assuming no alternatives to closure are identified, and that the Cooke
Operations and Beatrix West mine cease production in the December 2017 quarter, gold production for the year ending
31 December 2017 is forecast at between 42,000kg and 43,000kg (1.35Moz and 1.38Moz). With possible closure only in the last quarter,
TCC is forecast at between R415,000/kg and R430,000/kg (US$955/oz and US$990/oz) and AISC between R485,000/kg and
R495,000/kg (US$1,115/oz and US$1,140/oz). Total capital expenditure, including Burnstone, is forecast at approximately R3,600 million
(US$270 million). The dollar costs are based on an average exchange rate of R13.50/US$.
Production from the SA PGM operations for the year ending 31 December 2017, is forecast to be higher than previous guidance, at
between 1,100,000 4Eoz and 1,150,000 4Eoz. TCC is forecast at between R10,400/4Eoz and R10,750/4Eoz (US$770/4Eoz and
US$795/4Eoz) and AISC between R10,500/4Eoz and R11,000/4Eoz (US$775/4Eoz and US$815/4Eoz). Due to the robust operational
performance to date, capital expenditure which was revised is forecast higher at approximately R1,350 million (US$100 million).
PGM production from the US operations of between 350,000 2Eoz and 380,000 2Eoz is forecast for the eight months ending 31 December 2017,
with forecast production for the second half of the year higher than for the first half of the year as a result of the Blitz project delivering
first production earlier than initially planned. AISC is forecast at between US$620/2Eoz and US$650/2E0z, also benefiting from the
increase in production from Blitz. Total capital expenditure for the eight months ending 31 December 2017 is forecast at
approximately US$115 million.
The Group as whole has undergone significant change and done so under challenging circumstances, with commodity prices
subdued and the South African operating environment uncertain. Sibanye-Stillwater is now well positioned to benefit from any upside
in precious metal prices.
NEAL FRONEMAN
CHIEF EXECUTIVE OFFICER
FINANCIAL AND OPERATING REVIEW OF THE GROUP
FOR THE SIX MONTHS ENDED 30 JUNE 2017 COMPARED WITH THE SIX MONTHS ENDED 30 JUNE 2016
Revenue
Revenue increased by 31% to R19,219 million (US$1,455 million) from R14,705 million (US$956 million). This included R5,997 million
(US$454 million) from the SA PGM operations and R1,946 million (US$147 million) from the US PGM operations. The increase in revenue
at the SA PGM operations was due to the inclusion of the Rustenburg Operations (R4,609 million (US$349 million)) compared with Rnil
(US$nil) for the same period in 2016 and the Aquarius Operations (R1,388 million (US$105 million)) for a full six months in 2017 compared
with three months from acquisition in 2016 (R688 million (US$45 million)). Revenue from the SA gold operations declined by 20% to
R11,276 million (US$854 million) due to a 13% lower average gold price and an 8% decline in gold production year-on-year. The lower
production was mainly due to the suspension of operations at Cooke 4, the impact of illegal mining at the Cooke operations, and
lower volumes and grade from at Beatrix West.
Operating costs
Operating costs increased by 72% to R15,987 million (US$1,210 million) due to R5,492 million (US$416 million) operating costs from the
SA PGM operations compared with R616 million (US$40 million) for the comparable period in 2016 and R1,572 million (US$119 million)
from the US PGM operations. Costs at the SA gold operations increased by 3% to R8,923 million (US$676 million). The cessation of
mining at Cooke 4 partly offset above inflation increases in wages and other costs.
Operating profit
Group operating profit of R3,233 million (US$245 million) was 40% lower than for the comparable period in 2016 primarily due to the
decline in the received gold price and lower production from the SA gold operations. The Group operating margin was 17%, with
the SA gold operations' operating margin 21% compared with 38% for the six months ended 30 June 2016, and the SA PGM
operations' operating margin 8% compared with 10% for the six months ended 30 June 2016. The US PGM operations' operating
margin was 19% for the two months since acquisition.
Capital expenditure
Group capital expenditure of R2,484 million (US$188 million) included R1,634 million (US$124 million) from the SA gold operations,
which was marginally lower than for the comparable period in 2016. Attributable capital expenditure from the SA PGM operations
of R520 million (US$39 million) for the six months ended 30 June 2017, included ore reserve development of R234 million (US$18 million)
and sustaining capital of R286 million (US$22 million), compared with R68 million (US$4 million) in 2016. Capital expenditure from the
US PGM operations was R330 million (US$25 million).
Amortisation and depreciation
Amortisation and depreciation of R2,497 million (US$189 million) was 28% higher than for the comparable period in 2016. An additional
attributable R327 million (US$25 million) from the SA PGM operations and R313 million (US$24 million) from the US PGM operations was
partly offset by lower amortisation and depreciation from the SA gold operations due to the lower production.
Finance expenses
Finance expenses for the six months ended 30 June 2017 were R1,440 million (US$109 million) compared with R385 million
(US$25 million). The increase was primarily due to interest on the Stillwater Bridge Facility of R755 million (US$57 million) (30 June 2016:
Rnil (US$nil)) and a R177 million (US$13 million) increase in interest on borrowings due to the increase in average indebtedness.
Sibanye-Stillwater's average outstanding gross debt, excluding the Burnstone Debt, was approximately R17,900 million during the first
half of 2017 compared with approximately R3,600 million during the first half of 2016. Sibanye-Stillwater drew down US$2,650 million
(R34,000 million) of the Stillwater Bridge Facility to fund the acquisition of Stillwater. The net proceeds of the rights issue of
R12,963 million and bond issue of R13,110 million were used to partially repay the Stillwater Bridge Facility. For additional information
on Sibanye-Stillwater's borrowings see note 8 of the financial statements.
Share of results of equity-accounted investee
The R98 million (US$7 million) share of results of equity-accounted investments for the six months ended 30 June 2017, was primarily
due to Sibanye-Stillwater's attributable share of R85 million (US$6 million) in profits from Mimosa, and R17 million (US$1 million) relating
to its attributable 33.1% interest in Rand Refinery.
Loss on financial instruments
The net loss on financial instruments of R261 million (US$20 million) for the six months ended 30 June 2017 compared with R1,177 million
(US$77 million) for the six months ended 30 June 2016. This primarily consists of R337 million (US$26 million) loss (30 June 2016: Rnil
(US$nil)) on a foreign currency forward exchange contract entered into at the beginning of 2017 for the acquisition of Stillwater and
R18 million (US$1 million) (30 June 2016: R1,181 million (US$77 million) fair value loss on the Phantom Share Scheme instruments, partly
offset by R107 million (US$8 million) gain (30 June 2016: Rnil (US$nil)) on revised estimated cash flows to repay the Burnstone Debt.
The cash-settled share instruments are valued at each reporting date based on the fair value of the instrument at that reporting
date. The difference between the reporting date fair value and the initial recognition fair value of these cash-settled share
instruments is included in loss/gain on financial instruments in profit or loss. The appreciation in Sibanye-Stillwater's share price for the
six months ended 30 June 2016 of approximately 120%, resulted in the fair value loss of R1,181 million.
Gain on foreign exchange differences
The gain on foreign exchange differences of R335 million (US$25 million) for the six months ended 30 June 2017 compares with
R38 million (US$3 million) for the six months ended 30 June 2016. The gain on foreign exchange differences for the six months ended
30 June 2017 was mainly due to exchange gains on the Stillwater Bridge Facility and the Burnstone Debt of R233 million (US$18 million)
and R81 million (US$6 million), respectively.
Non-recurring items
Occupational healthcare expense
As a result of the progress made by the Occupational Lung Disease Working Group since 31 March 2017 on a variety of issues,
management is now in a position to reliably estimate, within an acceptable range, the Group's potential share of a possible
settlement of the class action claims and related costs. As a result, the Group has provided R1,077 million (US$82 million) before tax,
for this obligation which impacts negatively on earnings for the period. For additional information of Sibanye's occupational
healthcare obligation see note 3 of the financial statements.
Impairments
Despite joint efforts by all stakeholders, the continued losses and the pending outcome of the S189 process, which could lead to
possible termination of production at the Cooke Operations and Beatrix West mine, led to the Group to take a decision to impair the
mining assets by R2,792 million (Cooke 1, 2 and 3: R2,187 million (US$167 million) and Beatrix West: R604 million (US$47 million)) at
30 June 2017.
Transaction costs
Transaction costs of R402 million (US$30 million) incurred during the six months ended 30 June 2017 relate to the Stillwater Transaction.
The transaction costs incurred during the six months ended 30 June 2016 related to the Aquarius and Rustenburg Operations
acquisitions.
Mining and income tax
Current tax decreased from R494 million (US$32 million) to R39 million (US$3 million) due to the decrease in taxable mining income for
the period. The deferred tax decreased from a charge of R12 million (US$1 million) to a credit of R453 million (US$34 million). The
deferred tax credit for the six months ended 30 June 2017 was due to the impact of the impairment of Beatrix and the occupational
healthcare expense.
The effective tax credit rate of 8% for the six months ended 30 June 2017 was higher than the South African statutory company tax
rate of 28% mainly due to the tax effect of non-deductible amortisation and depreciation, finance expenses and transaction costs,
and assessed losses and other deductible temporary differences not recognised. The effective tax expense rate of 85% for the six
months ended 30 June 2016 was higher than the South African statutory company tax rate of 28% mainly due to the tax effect of
assessed losses and other deductible temporary differences not recognised.
Cash flow analysis
Sibanye-Stillwater defines free cash flow as cash from operating activities before dividends paid, less additions to property, plant and
equipment.
A free cash outflow of R831 million (US$63 million) compares with an inflow of R1,536 million (US$100 million) for the six months ended
30 June 2016. This was largely due to a R1,396 million (US$61 million) decrease in cash generated from operating activities, a
R930 million (US$72 million) increase in interest paid and a R723 million (US$74 million) increase in capital expenditure, partly offset by
a R378 million (US$21 million) decrease in royalties and taxation paid.
Cash at 30 June 2017 (after the rights issue of R12,963 million (US$981 million), net loans raised of R16,053 million (US$1,215 million) and
acquisition of Stillwater of R23,316 million (US$1,765 million), net of cash acquired) increased to R6,523 million (US$500 million) from
R968 million (US$71 million) at 31 December 2016.
MINERAL RESERVES AND RESOURCES
The Stillwater Transaction added attributable 2E Reserves of approximately 21.1Moz and this was the only change in the Mineral Reserves and
Resources from what was previously reported by the Group at 31 December 2016.
CHANGES IN BOARD OF DIRECTORS
Chris Chadwick resigned as director on 23 May 2017. Savannah Danson was appointed as a non-executive director on 23 May 2017.
Savannah is the founder, chairperson and group Chief Executive Officer of Bunengi Group, she brings a wealth of experience from
the finance, mining, infrastructure and media sectors. She is also the chairperson of Parsons Brinckerhoff Proprietary Limited and
serves on the boards of Wilson Bayly Holmes-Ovcon Limited, and WSP, a Canadian-listed engineering group.
CAPITALISATION ISSUE
The US$2,200 million cash acquisition of Stillwater was funded through a US$2,650 million bridge loan facility (the Stillwater Bridge
Facility) which was raised via a consortium of banks. Sibanye-Stillwater has subsequently refinanced the bulk of the Stillwater Bridge
Facility through a US$1,000 million equity rights issue and a US$1,050 million corporate bond, with refinancing of residual US$361 million
of the Stillwater Bridge Facility expected during the second half of 2017.
Primarily due to ongoing rand strength against the US dollar non-recurring items Sibanye-Stillwater reported an attributable loss of
R4,803 million (US$364 million) for the six-months ended 30 June 2017, compared with attributable earnings of R333 million
(US$22 million) for the six months ended 30 June 2016.
Sibanye-Stillwater's ND:EBITDA increased to 2.6:1 at 30 June 2017. In order to accommodate temporarily elevated leverage for a
period, covenants on the Stillwater Bridge Facility, as well as Sibanye-Stillwater's existing facilities, have been extended to permit
ND:EBITDA ratio of 3.5:1 calculated on a quarterly basis, through to 31 December 2018.
Operationally though, the second half of the year is seasonally better in South Africa and with announced restructuring at its gold
operations likely to result in significant cost reductions, the outlook for the gold operations is improved. Significant cost and
operational synergies have been realised at its SA PGM operations in the first half of 2017 and as the integration continues, further
cost and operational synergies are expected to be identified and realised. The newly acquired US PGM operations continue to
operate well and at current spot PGM prices (which are 36% higher year-on-year) and with the Blitz project building production, will
soon begin to make a significant financial contribution to the Group.
As a result of these considerations the outlook for the Group for the rest of 2017 is significantly better and there is a strong likelihood
that the Group as a whole will generate positive cash flow in 2017, which, combined with the refinancing of the remaining Stillwater
Bridge Facility, will improve the Group leverage position significantly. In the near term however, cash preservation is prudent and as
a result of these factors no interim dividend is being declared.
Accordingly, the Board has resolved to issue and allot fully paid ordinary shares of no par value (ordinary shares) as a capitalisation issue
to Sibanye-Stillwater shareholders and American Depositary Receipt (ADR) holders pro rata to their current holding at a ratio of 2
(two) ordinary shares for every 100 (one hundred) ordinary shares held, including ordinary shares underlying ADRs (the Capitalisation
Issue). Where a shareholder's entitlement to the Capitalisation Issue gives rise to a fraction of a share, in respect of fractional
entitlements that arise, all allocations of securities will be rounded down to the nearest whole number resulting in allocations of whole
securities and a cash payment for the fraction. The weighted average traded price for Wednesday, 4 October 2017, less 10% will be
used to determine the cash value. An announcement will be released on Thursday, 5 October 2017 advising shareholders of the
cash value determined with regards to transactional entitlements. The bank of New York Mellon, the depositary of the Company's
ADR programme will publish an announcement containing information and dates relevant to the Company's ADR holders.
The Capitalisation Issue is not a dividend as defined by the Income Tax Act and therefore will not attract Dividends Withholding Tax.
The Capitalisation Issue may have tax implications on shareholders, both South African and non-resident and shareholders are
advised to obtain appropriate advice from their professional advisors in this regard.
In terms of the Exchange Control Regulations of the Republic of South Africa:
- Any share certificates that might be issued to non-resident shareholders will be endorsed "Non-Resident";
- Any new share certificates controlled in terms of the Exchange Control Regulations will be forwarded to the Authorised Dealer
in foreign exchange controlling their blocked assets. Such share certificates will be endorsed "Non- Resident"; and
- Dividend and residual cash payments due to non-residents are freely transferable from the Republic.
Accordingly shareholders are advised that the Capitalisation Issue in jurisdictions other than South Africa may be restricted by law
and accordingly, shareholders in those jurisdictions will not be entitled to receive capitalisation shares (ineligible shareholders).
Ineligible shareholders are required to contact their broker, Central Securities Depository Participants (CSDP) or the transfer secretary
and inform them that they are unable to participate in the Capitalisation Issue prior to the record date in order to participate in the
Capitalisation Issue, being Friday, 22 September 2017. The CSDP shall be responsible for informing the transfer secretaries of all
dematerialised shares held by them on behalf of such ineligible foreign shareholders.
The Company's Corporate Secretary will facilitate the sale of the capitalisation shares for cash in South Africa, and distribute the
cash proceeds therefrom (net of applicable fees, expenses, taxes and charges) to the ineligible shareholders in proportion to such
ineligible shareholders entitlement to the capitalisation shares.
In accordance with paragraphs 11.17 (b) of the JSE Listings Requirements the following additional information is disclosed:
- The Capitalisation Issue will be made from Sibanye-Stillwater's revenue reserves
- Sibanye-Stillwater currently has 2,125,844,078 ordinary shares in issue
- Sibanye-Stillwater's income tax reference number is 9431292151
- Sibanye-Stillwater's Auditors are KPMG Inc. and the individual auditor is Henning Opperman
- The closing price of Sibanye-Stillwater ordinary shares on 23 August 2017 was R19.60
Shareholders are advised of the following dates in respect of the Capitalisation Issue of 2 (two) ordinary shares for every 100 (one
hundred) shares held:
- Last date to trade: Tuesday, 3 October 2017
- Capitalisation shares listed: Wednesday, 4 October 2017
- Shares commence trading ex-entitlement: Wednesday, 4 October 2017
- Record date: Friday, 6 October 2017
- Accounts with CSDP or broker credited or issuing of new share certificates is expected to be effected: Monday, 9 October 2017
Please note that share certificates may not be dematerialised or rematerialised between Wednesday, 4 October 2017, and Friday,
6 October 2017, both dates inclusive.
SALIENT FEATURES AND COST BENCHMARKS FOR THE SIX MONTHS ENDED 30 JUNE 2017,
31 DECEMBER 2016 AND 30 JUNE 2016
SA gold operations
SA REGION
Total SA gold operations Driefontein Kloof Beatrix Cooke
Under- Under- Under- Under- Under-
Total ground Surface ground Surface ground Surface ground Surface ground Surface
Production
Tonnes milled/treated 000't Jun 2017 9,865 3,831 6,034 1,067 1,842 1,076 1,699 1,365 474 323 2,019
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
Yield g/t Jun 2017 2.17 5.01 0.37 6.26 0.50 6.35 0.46 3.19 0.30 4.05 0.19
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
Gold produced kg Jun 2017 21,418 19,178 2,240 6,677 927 6,836 790 4,357 144 1,308 379
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
000'oz Jun 2017 688.6 616.6 72.0 214.7 29.8 219.8 25.4 140.1 4.6 42.0 12.2
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
Gold sold kg Jun 2017 21,547 19,296 2,251 6,761 927 6,870 790 4,357 144 1,308 390
Dec 2016 23,676 21,234 2,442 7,124 1,049 7,028 760 4,975 222 2,107 411
Jun 2016 23,229 20,726 2,503 6,712 1,161 6,642 746 4,626 218 2,746 378
000'oz Jun 2017 692.7 620.4 72.3 217.4 29.8 220.9 25.4 140.1 4.6 42.0 12.5
Dec 2016 761.1 682.6 78.5 229.0 33.7 226.0 24.4 159.9 7.2 67.7 13.2
Jun 2016 746.8 666.3 80.5 215.8 37.3 213.5 24.0 148.7 7.0 88.3 12.2
Price and costs
Gold price received R/kg Jun 2017 523,303 523,062 523,538 523,150 523,734
Dec 2016 569,535 568,824 569,209 569,078 589,277
Jun 2016 603,427 603,595 603,384 604,129 601,312
US$/oz Jun 2017 1,233 1,232 1,233 1,232 1,234
Dec 2016 1,268 1,266 1,267 1,267 1,312
Jun 2016 1,220 1,221 1,220 1,222 1,216
Operating cost R/t Jun 2017 900 2,081 150 2,550 194 2,322 181 1,376 162 2,709 82
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
Operating margin % Jun 2017 21 21 23 22 26 30 26 18 (2) (28) 16
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
Total cash cost(1) R/kg Jun 2017 414,902 404,800 370,862 433,215 610,777
Dec 2016 372,504 350,875 331,818 378,718 555,838
Jun 2016 381,635 360,130 350,189 384,723 505,410
US$/oz Jun 2017 977 953 874 1,020 1,439
Dec 2016 829 781 739 843 1,238
Jun 2016 772 728 708 778 1,022
All-in sustaining cost(2) R/kg Jun 2017 485,441 474,168 442,650 504,110 678,857
Dec 2016 451,352 420,763 426,233 453,454 623,550
Jun 2016 448,922 422,253 427,883 452,044 560,723
US$/oz Jun 2017 1,143 1,117 1,043 1,187 1,599
Dec 2016 1,005 937 949 1,010 1,388
Jun 2016 908 854 865 914 1,134
All-in sustaining cost
margin % Jun 2017 7 9 15 4 (30)
Dec 2016 21 26 25 20 (6)
Jun 2016 26 30 29 25 7
Capital expenditure
Total capital
expenditure(3) Rm Jun 2017 1,634.1 534.3 539.9 280.2 73.9
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
US$m Jun 2017 123.6 40.4 40.8 21.2 5.6
Dec 2016 150.4 41.2 53.8 24.0 9.6
Jun 2016 110.1 30.4 35.1 18.8 7.4
Average exchange rates for the six months ended 30 June 2017, 31 December 2016 and 30 June 2016 were R13.21/US$, R13.97/US$ and R15.38/US$, respectively.
Figures may not add as they are rounded independently.
(1) Total cash cost is calculated in accordance with the Gold Institute Industry Standard as cost of sales as recorded in profit or loss, less amortisation and depreciation and off-site (i.e.
central) general and administrative (G&A) expenses (including head office costs) plus royalties and production taxes. Total cash cost per kilogram is defined as the average cost of
producing a kilogram of gold, calculated by dividing the total cash cost in a period by the total gold sold over the same period.
(2) All-in sustaining cost is defined as production costs plus all costs relating to sustaining current production and sustaining capital expenditure, and includes (but not limited to) operating
costs, share based payments, royalties, rehabilitation costs and sustaining capital expenditure.
(3) Corporate project expenditure for the six months ended 30 June 2017, 31 December 2016 and 30 June 2016 amounted to R205.8 million (US$15.6 million), R307.9 million (US$21.8 million),
and R282.9 million (US$18.4 million), respectively. The majority of this expenditure was on the Burnstone project.
SA and US PGM operations
GROUP SA REGION US REGION
Total SA PGM operations(1) Kroondal Mimosa Plat Mile Rustenburg Stillwater(2)
Under- Under- Under-
Attributable Total Total ground Surface Attributable Attributable Surface ground Surface ground(3)
Production
Tonnes milled/treated 000't Jun 2017 13,559 13,339 6,005 7,334 1,812 681 4,193 3,512 3,141 220
Dec 2016 8,920 8,920 3,690 5,230 1,801 685 4,236 1,204 994 -
Jun 2016 2,692 2,692 1,259 1,433 932 327 1,433 - - -
Plant head grade g/t Jun 2017 2.27 2.07 3.31 1.05 2.40 3.58 0.66 3.72 1.57 14.74
Dec 2016 1.74 1.74 3.06 0.82 2.47 3.57 0.65 3.65 1.53 -
Jun 2016 1.65 1.65 2.78 0.65 2.50 3.57 0.65 - - -
Plant recoveries % Jun 2017 69.07 66.66 83.09 24.23 81.93 77.60 9.99 84.51 32.24 92.0
Dec 2016 65.55 65.55 82.26 21.40 82.13 78.39 12.54 84.54 37.42 -
Jun 2016 65.09 65.09 80.15 8.58 80.96 78.54 8.58 - - -
Yield g/t Jun 2017 1.57 1.38 2.75 0.25 1.97 2.78 0.07 3.15 0.51 13.24
Dec 2016 1.14 1.14 2.52 0.17 2.03 2.80 0.08 3.09 0.57 -
Jun 2016 1.07 1.07 2.23 0.06 2.03 2.81 0.06 - - -
PGM production(4) 4Eoz - 2Eoz Jun 2017 684,437 590,712 530,769 59,943 114,619 60,879 8,898 355,271 51,045 93,725
Dec 2016 327,990 327,990 298,576 29,414 117,520 61,585 11,098 119,471 18,316 -
Jun 2016 92,773 92,773 90,198 2,575 60,707 29,491 2,575 - - -
Price and costs(5)
Average PGM basket
price(6) R/4Eoz - R/2Eoz Jun 2017 11,883 11,997 12,037 11,685 12,030 12,015 12,068 12,039 11,618 11,242
Dec 2016 12,204 12,204 12,197 12,277 12,324 12,590 12,300 11,870 12,263 -
Jun 2016 12,499 12,499 12,491 12,769 12,578 12,313 12,769 - - -
US$/4Eoz Jun 2017 900 909 912 885 911 910 914 912 880 850
Dec 2016 874 874 873 879 882 901 880 850 878 -
Jun 2016 832 832 831 846 836 822 846 - - -
Operating cost(7) R/t Jun 2017 469 434 952 58 643 897 14 1,111 116 2,491
Dec 2016 377 377 861 36 613 902 15 1,209 128 -
Jun 2016 354 354 735 19 630 1,035 19 - - -
US$/t Jun 2017 36 33 72 4 49 68 1 84 9 190
Dec 2016 27 27 62 3 44 65 1 87 9 -
Jun 2016 24 24 49 1 42 69 1 - - -
Operating margin % Jun 2017 12 8 5 36 11 24 29 3 37 38
Dec 2016 10 10 8 35 16 23 39 1 33 -
Jun 2016 10 10 11 1 11 16 1 - - -
Total cash cost(8) R/4Eoz - R/2Eoz Jun 2017 9,551 10,256 9,819 10,595 6,687 10,458 5,566
US$/4Eoz - US$/2Eoz Jun 2017 723 777 744 802 506 792 425
All-in sustaining cost(9) R/4Eoz - R/2Eoz Jun 2017 10,029 10,364 10,307 8,643 6,799 10,458 8,134
US$/4Eoz - US$/2Eoz Jun 2017 759 785 781 655 515 792 622
All-in sustaining cost
margin % Jun 2017 (0) (2) 5 23 24 (3) 9
Capital expenditure
Total capital Rm Jun 2017 954.3 624.6 617.5 7.1 78.9 104.6 5.4 434.0 1.7 329.7
expenditure Dec 2016 356.8 356.8 356.3 0.5 108.5 99.1 0.5 148.7 - -
Jun 2016 128.8 128.8 128.0 0.8 67.3 60.7 0.8 - - -
US$m Jun 2017 72.3 47.3 46.8 0.5 6.0 7.9 0.4 32.9 0.1 25.0
Dec 2016 24.8 24.8 24.8 - 7.7 7.0 - 10.1 - -
Jun 2016 8.3 8.3 8.2 0.1 4.3 3.9 0.1 - - -
Average exchange rates for the six months ended 30 June 2017, 31 December 2016 and 30 June 2016 were R13.21/US$, R13.97/US$ and R15.38/US$, respectively.
Figures may not add as they are rounded independently.
(1) The SA PGM operations' results for the six months ended 31 December 2016 include the Rustenburg Operations for two months since acquisition and the results for the six months ended
30 June 2016 include the Aquarius Operations for three months since acquisition.
(2) The US PGM operations' results for the six months ended 30 June 2017 include Stillwater for two months since acquisition. Stillwater's production is converted to metric tonnes. The
income and expenses are translated into SA rand at the average exchange rate for the two months ended 30 June 2017.
(3) In addition to Stillwater's on-mine underground production, the operation treats various recycling material which is excluded from the underground statistics shown above and is
detailed in the PGM recycling table below.
(4) Production per product - see prill split in the table below.
(5) The Group and total SA PGM operations' unit cost benchmarks exclude the financial results of Mimosa, which is equity accounted and excluded from net operating profit.
(6) PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment.
(7) Operating costs are all mining related costs calculated as costs of sales before amortisation and depreciation.
(8) Total cash cost is calculated in accordance with the Gold Institution industry standard as costs of sales as recorded in profit or loss, less amortisation and depreciation and off-site (i.e.
central) G&A expenses (including head office costs) plus royalties and production taxes. Total cash costs per 4E/2E ounce is defined as the average cost of producing a 4E/2E ounce,
calculated by dividing the total cash cost in a period by the 4E/2E PGM produced over the same period.
(9) All-in sustaining cost is defined as production costs plus all costs relating to sustaining current production and sustaining capital expenditure, and includes (but not limited to) operating
costs, share based payments, royalties, rehabilitation costs and sustaining capital expenditure, and excludes non-4E/2E PGM production.
Mining - Prill split excluding Recycling operations
GROUP SA REGION US REGION
Six months ended Quarter ended Quarter ended Quarter ended Quarter ended
Jun 2017 Jun 2017 Dec 2016 Jun 2016 Jun 2017
4Eoz % 4Eoz % 4Eoz % 4Eoz % 2Eoz %
Platinum 366,310 54% 345,050 58% 187,316 57% 51,346 55% 21,260 23%
Palladium 255,898 37% 183,433 31% 105,134 32% 31,022 33% 72,465 77%
Rhodium 49,028 7% 49,028 8% 27,586 8% 7,996 9% - 0%
Gold 13,201 2% 13,201 2% 7,954 2% 2,409 3% - 0%
PGM production 684,437 100% 590,712 100% 327,990 100% 92,773 100% 93,725 100%
Ruthenium 77,132 77,132 43,172 12,186 -
Iridium 17,916 17,916 10,085 3,079 -
Total 779,485 685,760 381,247 108,038 93,725
Recycling Operation
US REGION
Quarter ended
Unit Jun 2017(3)
Average tons of catalyst fed/day Tonne 25.2
Total tons processed Tonne 1,541
Tolled tons Tonne 232
Purchased tons Tonne 1,309
PGM ounces fed Troy oz 126,400
PGM ounces sold Troy oz 94,400
PGM tolled ounces returned Troy oz 28,800
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Condensed consolidated income statement
Figures are in millions unless otherwise stated
US dollar SA rand
Six months ended Six months ended
Jun 2016 Dec 2016 Jun 2017 Notes Jun 2017 Dec 2016 Jun 2016
956.1 1,172.0 1,454.9 Revenue 19,219.2 16,536.0 14,704.7
(605.4) (805.3) (1,210.2) Operating costs (15,986.7) (11,397.3) (9,311.8)
350.7 366.7 244.7 Operating profit 3,232.5 5,138.7 5,392.9
(126.5) (148.8) (189.0) Amortisation and depreciation (2,496.7) (2,096.5) (1,945.4)
224.2 217.9 55.7 Net operating profit 735.8 3,042.2 3,447.5
10.5 12.1 14.7 Interest income 194.8 169.6 161.8
(25.0) (36.5) (109.0) Finance expense 2 (1,439.6) (517.9) (385.2)
(5.6) (18.8) (15.0) Net other costs (198.1) (273.5) (85.2)
(5.5) 6.4 7.4 Share of results of equity-accounted investees after tax 7 98.1 98.2 (84.9)
(8.9) (8.5) (8.8) Share-based payments (116.2) (118.5) (137.4)
(76.5) 6.1 (19.8) (Loss)/gain on financial instruments (261.3) 144.2 (1,177.0)
2.5 12.5 25.3 Gain on foreign exchange differences 334.6 181.7 37.9
115.7 191.2 (49.5) (Loss)/profit before non-recurring items (651.9) 2,726.0 1,777.5
3.5 3.0 2.3 Gain on disposal of property, plant and equipment 30.5 42.3 53.1
- - (81.5) Occupational healthcare expense 3 (1,077.2) - -
(53.3) (40.8) (211.7) Impairments 4 (2,796.0) (562.0) (819.1)
(2.5) (10.3) (11.2) Restructuring costs (148.0) (148.8) (38.9)
(7.4) (3.3) (30.4) Transaction costs 6 (401.6) (43.4) (113.6)
- (16.4) - Share-based payment on BEE transaction - (240.3) -
- 165.4 - Gain on acquisition - 2,428.0 -
56.0 288.8 (382.0) (Loss)/profit before royalties and tax (5,044.2) 4,201.8 859.0
(17.3) (19.9) (13.1) Royalties (172.9) (281.1) (265.5)
38.7 268.9 (395.1) (Loss)/profit before tax (5,217.1) 3,920.7 593.5
(32.9) (51.8) 31.4 Mining and income tax 414.4 (737.8) (505.4)
(32.1) (43.6) (2.9) - Current tax (38.9) (618.1) (493.7)
(0.8) (8.2) 34.3 - Deferred tax 453.3 (119.7) (11.7)
5.8 217.1 (363.7) (Loss)/profit for the period (4,802.7) 3,182.9 88.1
(Loss)/profit for the period attributable to:
21.7 230.5 (363.8) - Owners of Sibanye-Stillwater (4,803.7) 3,368.6 333.0
(15.9) (13.4) 0.1 - Non-controlling interests 1.0 (185.7) (244.9)
Earnings per ordinary share1 (cents)
2 16 (25) Basic earnings per share 5.1 (324) 237 24
2 16 (25) Diluted earnings per share 5.2 (324) 237 23
1,412,734 1,418,024 1,484,879 Weighted average number of shares1 ('000) 5.1 1,484,879 1,418,024 1,412,734
1,418,405 1,420,185 1,484,879 Diluted weighted average number of shares1 ('000) 5.2 1,484,879 1,420,185 1,418,405
Headline earnings per ordinary share1 (cents)
5 7 (11) Headline earnings per share 5.3 (147) 97 79
5 7 (11) Diluted headline earnings per share 5.4 (147) 97 79
15.38 13.97 13.21 Average R/US$ rate
(1) The basic earnings per share (EPS), diluted EPS, weighted average number of shares, diluted weighted average number of shares, headline EPS and diluted headline EPS have been
adjusted retrospectively, see note 5 for more detail.
Condensed consolidated statement of other comprehensive income
Figures are in millions unless otherwise stated
US dollar SA rand
Six months ended Six months ended
Jun 2016 Dec 2016 Jun 2017 Jun 2017 Dec 2016 Jun 2016
5.8 217.1 (363.7) (Loss)/profit for the period (4,802.7) 3,182.9 88.1
Other comprehensive income
54.4 76.4 51.7 Other comprehensive income, net of tax (107.5) (140.9) 9.5
- - - Foreign currency translation adjustments (113.3) (140.9) 9.5
Mark to market valuation 5.8 - -
54.4 76.4 51.7 Currency translation adjustments1 - - -
60.2 293.5 (312.0) Total comprehensive income (4,910.2) 3,042.0 97.6
Total comprehensive income attributable to:
76.6 305.9 (312.0) - Owners of Sibanye-Stillwater (4,911.2) 3,227.7 342.5
(16.4) (12.4) - - Non-controlling interests 1.0 (185.7) (244.9)
15.38 13.97 13.21 Average R/US$ rate
(1) The currency translation adjustments arise on the convenience translation of the SA rand amount to the US dollars. These gains and losses will never be reclassified to profit or loss.
Condensed consolidated statement of financial position
Figures are in millions unless otherwise stated
US dollar SA rand
As at As at
Revised1 Revised1
Jun 2016 Dec 2016 Jun 2017 Notes Jun 2017 Dec 2016 Jun 2016
1,986.6 2,485.0 5,150.3 Non-current assets 67,263.1 34,018.1 29,203.5
1,562.5 1,989.8 4,173.2 Property, plant and equipment 54,501.9 27,240.7 22,968.0
77.4 68.4 515.5 Goodwill 6,732.9 936.0 1,137.3
149.1 157.6 165.7 Equity-accounted investments 7 2,164.0 2,157.4 2,192.2
180.6 226.5 246.9 Environmental rehabilitation obligation funds 3,225.0 3,100.5 2,655.5
7.6 26.0 34.9 Other receivables 455.1 355.3 111.6
9.4 16.7 14.1 Deferred tax assets 184.2 228.2 138.9
241.9 562.7 1,173.7 Current assets 15,327.9 7,703.2 3,555.6
37.5 49.4 226.8 Inventories 2,962.0 676.8 550.8
145.2 419.9 395.4 Trade and other receivables 5,164.5 5,747.9 2,134.1
- 22.7 24.0 Other receivables 313.2 310.6 -
- - 28.0 Tax receivable 365.0 - -
59.2 70.7 499.5 Cash and cash equivalents 6,523.2 967.9 870.7
2,228.5 3,047.7 6,324.0 Total assets 82,591.0 41,721.3 32,759.1
976.3 1,219.7 1,860.1 Shareholders' equity 24,292.8 16,697.4 14,352.1
696.5 1,372.3 3,327.2 Non-current liabilities 43,453.2 18,787.3 10,238.1
221.0 600.5 1,733.3 Borrowings 8 22,636.7 8,221.5 3,248.6
227.2 290.9 346.8 Environmental rehabilitation obligation 4,529.0 3,982.2 3,340.4
1.1 1.2 1.3 Post-retirement healthcare obligation 16.4 16.3 16.3
- - 75.6 Occupational healthcare obligation 3 987.9 - -
- 18.0 22.3 Share-based payment obligations 291.8 246.5 -
2.3 117.9 249.0 Other payables 9 3,252.0 1,613.7 33.2
244.9 343.8 898.9 Deferred tax liabilities 11,739.4 4,707.1 3,599.6
555.7 455.7 1,136.7 Current Liabilities 14,845.0 6,236.6 8,168.9
257.2 55.0 579.8 Borrowings 8 7,571.8 752.3 3,780.3
- - 6.8 Occupational healthcare obligation 3 89.3 - -
23.5 17.2 0.7 Share-based payment obligations 8.9 235.2 346.1
264.1 378.5 547.7 Trade and other payables 7,153.1 5,180.5 3,881.7
10.9 5.0 1.7 Tax and royalties payable 21.9 68.6 160.8
2,228.5 3,047.7 6,324.0 Total equity and liabilities 82,591.0 41,721.3 32,759.1
14.70 13.69 13.06 Closing R/US$ rate
(1) As disclosed in the preliminary results released on 23 February 2017, the condensed consolidated statement of financial position as at 30 June 2016 was revised to reflect the
adjustment to the initial accounting in respect of Aquarius Platinum Limited (Aquarius) acquired on 12 April 2016. 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, a decrease of R68.1 million in the net deferred tax liability, and an increase of
R174.9 million in the reported value of goodwill.
Condensed consolidated statement of changes in equity
Figures are in millions unless otherwise stated
US dollar SA rand
Accum- Non- Non- Accum-
Stated Other ulated controlling Total Total controlling ulated Other Stated
capital reserves loss interests equity equity interests loss reserves capital
2,388.6 234.4 (1,665.8) 7.1 964.3 Balance at 31 December 2015 14,984.8 109.8 (9,797.8) 2,938.2 21,734.6
- 54.9 21.7 (16.4) 60.2 Total comprehensive income for the period 97.6 (244.9) 333.0 9.5 -
- - 21.7 (15.9) 5.8 Profit for the period 88.1 (244.9) 333.0 - -
- 54.9 - (0.5) 54.4 Other comprehensive income, net of tax 9.5 - - 9.5 -
- - (54.3) - (54.3) Dividends paid (825.4) - (825.4) - -
- 5.3 - - 5.3 Share-based payments 82.2 - - 82.2 -
Acquisition of subsidiary with non-controlling
- - - 0.8 0.8 12.9 12.9 - - -
interests
- - 1.4 (1.4) - Transaction with non-controlling interests - (21.6) 21.6 - -
2,388.6 294.6 (1,697.0) (9.9) 976.3 Balance at 30 June 2016 14,352.1 (143.8) (10,268.6) 3,029.9 21,734.6
- 75.4 230.5 (12.4) 293.5 Total comprehensive income for the period 3,042.0 (185.7) 3,368.6 (140.9) -
- - 230.5 (13.4) 217.1 Profit for the period 3,182.9 (185.7) 3,368.6 - -
- 75.4 - 1.0 76.4 Other comprehensive income, net of tax (140.9) - - (140.9)
- - (56.4) (0.1) (56.5) Dividends paid (786.5) (1.3) (785.2) - -
- 6.4 - - 6.4 Share-based payments 89.8 - - 89.8 -
- - (23.7) 23.7 - Transaction with non-controlling interests - 348.5 (348.5) - -
2,388.6 376.4 (1,546.6) 1.3 1,219.7 Balance at 31 December 2016 16,697.4 17.7 (8,033.7) 2,978.8 21,734.6
- 51.8 (363.8) - (312.0) Total comprehensive income for the period (4,910.2) 1.0 (4,803.7) (107.5) -
- - (363.8) 0.1 (363.7) Loss for the period (4,802.7) 1.0 (4,803.7) - -
- 51.8 - (0.1) 51.7 Other comprehensive income (107.5) - - (107.5) -
- - (36.7) - (36.7) Dividends paid (560.2) (2.0) (558.2) - -
- 7.8 - - 7.8 Share-based payments 103.3 - - 103.3 -
981.3 - - - 981.3 Rights issue 12,962.5 - - - 12,962.5
3,369.9 436.0 (1,947.1) 1.3 1,860.1 Balance at 30 June 2017 24,292.8 16.7 (13,395.6) 2,974.6 34,697.1
Condensed consolidated statement of cash flows
Figures are in millions unless otherwise stated
US dollar SA rand
Six months ended Six months ended
Jun 2016 Dec 2016 Jun 2017 Notes Jun 2017 Dec 2016 Jun 2016
Cash flows from operating activities
333.3 336.6 144.5 Cash generated by operations 1,909.1 4,708.6 5,126.5
(96.9) (6.5) (32.6) Cash-settled share-based payments paid (431.2) (28.8) (1,489.8)
33.1 (49.3) 120.1 Change in working capital 1,586.4 (746.6) 509.0
269.5 280.8 232.0 3,064.3 3,933.2 4,145.7
4.1 3.5 3.9 Interest received 51.8 48.8 63.4
(11.1) (18.9) (83.3) Interest paid (1,100.2) (270.9) (170.2)
(16.7) (21.2) (14.8) Royalties paid (195.3) (299.6) (256.3)
(31.5) (48.7) (12.7) Tax paid (167.7) (691.8) (484.9)
(53.7) (56.1) (42.4) Dividends paid (560.2) (786.5) (825.4)
160.6 139.4 82.7 Net cash from operating activities 1,092.7 1,933.2 2,472.3
Cash flows from investing activities
(114.5) (168.3) (188.0) Additions to property, plant and equipment (2,484.0) (2,389.7) (1,761.4)
3.6 3.2 2.5 Proceeds on disposal of property, plant and equipment 33.0 44.4 55.0
Contributions to funds and payment of environmental
(0.2) (4.9) (0.2) rehabilitation obligation (2.6) (71.4) (3.3)
(294.0) (101.2) (2,073.2) Investment in subsidiaries (27,386.4) (1,500.0) (4,301.5)
33.7 - 135.7 Cash acquired on acquisition of subsidiaries 1,792.2 0.1 494.1
(1.0) - (0.5) Loan advanced to equity-accounted investee (7.1) - (15.5)
- - 272.9 Proceeds on disposal of investments 3,605.3 - -
- 0.3 - Loan repaid by equity-accounted investee - 5.4 -
(372.4) (270.9) (1,850.8) Net cash used in investing activities (24,449.6) (3,911.2) (5,532.6)
Cash flows from financing activities
- - 981.3 Proceeds from shares issued 12,962.5 - -
346.3 830.8 4,141.6 Loans raised 8 54,711.0 11,955.0 5,325.5
(127.1) (679.1) (2,926.4) Loans repaid 8 (38,658.3) (9,879.8) (1,954.9)
219.2 151.7 2,196.5 Net cash from financing activities 29,015.2 2,075.2 3,370.6
7.4 20.2 428.4 Net increase in cash and cash equivalents 5,658.3 97.2 310.3
5.6 (8.7) 0.4 Effect of exchange rate fluctuations on cash held (103.0) - (157.0)
46.2 59.2 70.7 Cash and cash equivalents at beginning of the period 967.9 870.7 717.4
59.2 70.7 499.5 Cash and cash equivalents at end of the period 6,523.2 967.9 870.7
15.38 13.97 13.21 Average R/US$ rate
14.70 13.69 13.06 Closing R/US$ rate
Notes to the condensed consolidated interim financial statements
1. Basis of accounting and preparation
The condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting
Standards (IFRS), IAS 34 Interim Financial Reporting, the South African Institute of Chartered Accounts Financial Reporting Guides as
issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council
and the requirements of the Companies Act of South Africa. The accounting policies applied in the preparation of these interim
financial statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial
statements.
The condensed consolidated income statement, and statements of other comprehensive income and cash flows for the six months
ended 31 December 2016 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 2016 from the audited comprehensive consolidated
financial statements for the year ended 31 December 2016.
The US dollar condensed 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 dollar is based on the average
exchange rate for the period for the condensed consolidated income statement, and statements of other comprehensive income
and cash flows, and the period-end closing exchange rate for the statement of financial position. Exchange differences on
translation are accounted for in the statement of other comprehensive income. This information is provided as supplementary
information only.
The condensed consolidated financial statements for the six months ended 30 June 2017 have been prepared by Sibanye-Stillwater'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 Sibanye-Stillwater board of directors.
2. Finance expense
Figures in million - SA rand Six months ended
Jun 2017 Dec 2016 Jun 2016
Interest charge on:
Borrowings - interest paid (1,101.3) (262.4) (156.1)
- R6.0 billion revolving credit facility (RCF),
R4.5 billion Facilities, and other borrowings (Rand Facilities) (299.5) (190.8) (122.3)
- US$350 million RCF (46.7) (53.5) (33.8)
- Stillwater Bridge Facility(1) (755.1) (18.1) -
Borrowings - unwinding of amortised cost (70.0) (69.0) (72.4)
- Burnstone debt (69.6) (68.2) (71.2)
- US$1.05 billion bond (0.4) - -
- R4.5 billion Facilities - (0.8) (1.2)
Environmental rehabilitation obligation (179.3) (149.5) (141.9)
Other (89.0) (37.0) (14.8)
Total finance expense (1,439.6) (517.9) (385.2)
(1) The interest paid on the Stillwater Bridge Facility includes underwriting fees, commitment fees and interest relating to the facility.
3. Occupational healthcare expense and obligation
Figures in million - SA rand Six months ended
Jun 2017 Dec 2016 Jun 2016
Occupational healthcare expense (1,077.2) - -
Class and individual actions
During 2012 and 2014, two court applications were served on Sibanye-Stillwater and its subsidiaries (as well as other mining
companies) by various applicants purporting to represent classes of mine workers (and where deceased, their dependents) who
were previously employed by or who are employees of, among others, Sibanye-Stillwater or any of its subsidiaries and who allegedly
contracted silicosis and/or tuberculosis.
These are applications in terms of which the court is asked to certify a class action to be instituted by the applicants on behalf of the
classes of affected people. According to the applicants, these are the first and preliminary steps in a process, where if the court
were to certify the class action, the applicants will in the second stage bring an action wherein they will attempt to hold Sibanye-
Stillwater and other mining companies liable for silicosis and/or tuberculosis and the resultant consequences. The applicants
contemplate dealing in the second stage with what the applicants describe as common legal and factual issues regarding the
claims arising for the whole of the classes. If the applicants are successful in the second stage, they envisage that individual members
of the classes could later submit individual claims for damages against Sibanye-Stillwater and the other mining companies. These
applications do not identify the number of claims that could be instituted against Sibanye-Stillwater and the other mining companies
or the quantum of damages the applicants may seek. Sibanye-Stillwater has opposed the applications. The two class actions were
consolidated into one application on 17 October 2014. In terms of the consolidated application, the court was asked to allow the
class actions to be certified.
On 13 May 2016, the High Court ordered, among other things: (1) the certification of two classes: (a) 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 (b) 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; and (2) that the common law be developed to provide that, where a claimant commences suing for general damages
and subsequently dies before close of pleadings, the claim for general damages will transmit to the estate of the deceased claimant.
The progression of the classes certified will be done in two phases: (i) a determination of common issues, on an opt-out basis, and (ii)
the hearing and determination of individualised issues, on an opt-in basis. In addition, costs were awarded in favour of the claimants.
The High Court ruling did not represent a ruling on the merits of the cases brought by the Claimants. The amount of damages has
not yet been quantified for any of the claimants in the Consolidated Class Application or for any other members of the classes.
Sibanye-Stillwater and the other respondents believed that the judgment addressed a number of highly complex and important
issues, including a far reaching amendment of the common law, that have not previously been considered by other courts in South
Africa. The High Court itself found that the scope and magnitude of the proposed claims is unprecedented in South Africa and that
the class action would address novel and complex issues of fact and law. The respondents applied for leave to appeal against the
judgement because they believed that the court's ruling on some of these issues is incorrect and that another court may come to a
different decision.
On 24 June 2016, the High Court granted the mining companies leave to appeal against the finding amending the common law in
respect of the transmissibility of general damages claims. It refused leave to appeal on the certification of silicosis and tuberculosis
classes. On 15 July 2016, Sibanye-Stillwater and the other respondents each filed petitions to the Supreme Court of Appeal for leave
to appeal against the certification of the two separate classes for silicosis and tuberculosis. In an attempt to shorten any delay due
to an appeal process, it is permissible to request that the appeals be dealt with on an expedited basis. On 21 September 2016, the
Supreme Court of Appeal granted the respondents leave to appeal against all aspects of the class certification judgment of the
South Gauteng High Court delivered in May 2016. The appeal hearing before the Supreme Court of Appeal is scheduled to be heard
between 19 and 23 March 2018.
Working Group
The Occupational Lung Disease Working Group (the Working Group) was formed in 2014 to address issues relating to compensation
and medical care for occupational lung disease in the South African gold mining industry. The Working Group had extensive
engagements with a wide range of stakeholders since its formation, including government, organised labour, other mining
companies and the legal representatives of claimants who have filed legal actions against the companies.
The Working Group, made up of African Rainbow Minerals Limited, Anglo American South Africa Limited, AngloGold Ashanti Limited,
Gold Fields Limited, Harmony Gold Mining Company Limited and Sibanye-Stillwater, remains of the view that achieving a
comprehensive settlement which is both fair to past, present and future employees and sustainable for the sector, is preferable to
protracted litigation.
The members of Working Group are among respondent companies in a number of legal proceedings related to occupational lung
disease, including the class action referred to above. These companies do not believe that they are liable in respect of the claims
brought, and they are defending these. The companies do, however, believe that they should work together to seek a solution to
this South African mining industry legacy issue. The Working Group will continue with its efforts to find common ground with all
stakeholders, including government, labour and the claimants' legal representatives.
Obligation recognised
As a result of the ongoing work of the Working Group and engagements with affected stakeholders since 31 March 2017, it has now
become possible for Sibanye-Stillwater to reasonably estimate its share of the estimated cost in relation to the Working Group of a
possible settlement of the class action claims and related costs. As a result, Sibanye-Stillwater has provided an amount of
R1,077.2 million for this obligation in the statement of financial position as at 30 June 2017. The nominal value of this provision is
R1,493.0 million. The ultimate outcome of these matters remains uncertain, with a possible failure to reach a settlement or to obtain
the requisite court approval for a potential settlement. The provision is consequently subject to adjustment in the future, depending
on the progress of the Working Group discussions, stakeholder engagements and the ongoing legal proceedings.
Reconciliation of the occupational healthcare obligation:
Figures in million - SA rand As at
Jun 2017 Dec 2016 Jun 2016
Occupational healthcare expense (charge to profit or loss) 1,077.2 - -
Balance at end of the period 1,077.2 - -
Current portion of occupational healthcare obligation (89.3)
Non-current portion of occupational healthcare obligation 987.9 - -
4. Impairments
Figures in million - SA rand Six months ended
Jun 2017 Dec 2016 Jun 2016
Impairment of property, plant and equipment (2,791.5) (355.0) (816.7)
Impairment of loan to equity-accounted investee (4.5) (5.7) (2.4)
Impairment of goodwill - (201.3) -
Total impairments (2,796.0) (562.0) (819.1)
Impairment of Cooke Operations and Beatrix West mine
Ongoing losses experienced at the Cooke 1, 2 and 3 Operations and Beatrix West mine negatively affect group cash flow as well as
the sustainability and economic viability of other operations in the Southern Africa region. In this regard, after numerous attempts to
address the losses, it became necessary to enter into consultations in terms of Section 189 of the Labour Relations ACT 66 of 1995
(S189) with relevant stakeholders regarding restructuring at the SA gold operations. As a result a decision was taken during the six
months ended 30 June 2017, to impair the Cooke 1, 2 and 3 mining assets by R2,187.8 million and the Beatrix West assets by
R603.7 million. These impairments were based on the estimated fair value less cost to sell over the life of mine calculated as expected
discounted cash flows from the expected gold reserves and costs to extract the gold.
5. Earnings per share
5.1 Basic earnings per share
Six months ended
Restated Restated
Jun 2017 Dec 2016 Jun 2016
Weighted average number of shares
Ordinary shares in issue ('000) 2,125,844 929,004 923,902
Adjustment for weighting of ordinary shares in issu(1) ('000) (640,965) 489,020 488,832
Adjusted weighted average number of shares ('000) 1,484,879 1,418,024 1,412,734
(Loss)/profit attributable to owners of Sibanye-Stillwater (SA rand million) (4,803.7) 3,368.6 333.0
Basic earnings per share (EPS) (cents) (324) 237 24
(1) During the six months ended 30 June 2017, the Sibanye-Stillwater raised capital of R12,962.5 million from a rights issue, when 1,195,787,294
ordinary shares were issued with 9 new ordinary shares issued for every 7 existing ordinary share held. As a result, the EPS figures have been
adjusted retrospectively as required by IAS 33 Earnings per share. For the calculation of the EPS, the number of shares held prior to 14 June 2017
has been adjusted by a factor of 1.53 to reflect the bonus element of the rights issue.
5.2 Diluted earnings per share
Six months ended
Restated Restated
Jun 2017 Dec 2016 Jun 2016
Weighted average number of shares
Weighted average number of shares ('000) 1,484,879 1,418,024 1,412,734
Ordinary shares that may be issued in the future(1) ('000) - 2,161 5,671
Diluted weighted average number of shares ('000) 1,484,879 1,420,185 1,418,405
Diluted basic EPS (cents) (324) 237 23
(1) Potential ordinary shares of 5,576,630 were excluded from the diluted weighted average number of shares as these are anti-dilutive.
5.3 Headline earnings per share
Figures in million - SA rand Six months ended
Restated Restated
Jun 2017 Dec 2016 Jun 2016
(Loss)/profit attributable to owners of Sibanye-Stillwater (4,803.7) 3,368.6 333.0
Gain on disposal of property, plant and equipment (30.5) (42.3) (53.1)
Impairments 2,796.0 562.0 819.1
Gain on acquisition - (2,428.0) -
Taxation effect of re-measurement items (143.6) (87.6) 14.9
Headline earnings (2,181.8) 1,372.7 1,113.9
Headline EPS (cents) (147) 97 79
5.4 Diluted headline earnings per share
Six months ended
Restated Restated
Jun 2017 Dec 2016 Jun 2016
Diluted headline EPS (cents) (147) 97 79
6. Stillwater acquisition
On 9 December 2016, Sibanye-Stillwater announced it had reached a definitive agreement to acquire Stillwater Mining Company
(Stillwater) for US$18 per share in cash, or US$2,200 million in aggregate (the Stillwater Transaction). On 25 April 2017, at the
shareholders meeting of Sibanye-Stillwater, the Sibanye-Stillwater shareholders approved the proposed Stillwater Transaction by
voting in favour of the various resolutions to give effect to the Stillwater Transaction and at the shareholders meeting of Stillwater, the
requisite majority of Stillwater shareholders resolved to approve the Stillwater Transaction. Sibanye-Stillwater obtained control (100%)
of Stillwater on this date. The effective date of the implementation of the Stillwater Transaction was 4 May 2017, when Sibanye-
Stillwater took over legal ownership of Stillwater.
For the two months ended 30 June 2017, Stillwater contributed revenue of US$148.7 million (R1,946.5 million) and a loss of
US$5.2 million (R67.7 million) to the Group's results.
The purchase price allocation has been prepared on a provisional basis in accordance with IFRS 3 Business Combinations.
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
The consideration paid is as follows:
Figures in million
Notes US dollar Jun 2017
Cash 2,080.7 27,174.5
Liability raised in respect of discenting shareholders 9 104.5 1,364.3
Settlement of share-based payment awards (cash) 16.2 211.9
Total consideration 2,201.4 28,750.7
Acquisition related costs
The Group incurred acquisition related costs of R401.6 million on advisory and legal fees. These costs are recognised as transaction
costs in profit or loss.
Identified assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the acquisition date:
Figures in million
Notes US dollar SA rand
Property, plant and equipment 2,302.6 30,072.3
Other non-current assets 6.9 90.8
Inventories 159.7 2,085.4
Current investments 278.9 3,642.2
Cash and cash equivalents 137.2 1,792.2
Other current assets 37.3 487.3
Environmental rehabilitation obligation (23.9) (312.1)
Deferred tax liabilities (576.8) (7,533.0)
Other non-current liabilities (19.9) (260.3)
Borrowings 8 (454.6) (5,937.6)
Trade and other payables (88.1) (1,150.1)
Other current liabilities (1.8) (23.3)
Total fair value of identifiable net assets acquired 1,757.5 22,953.8
The fair value of assets and liabilities excluding property, plant and equipment, inventories and borrowings approximate their carrying
value. The fair value of property, plant and equipment was based on the expected discounted cash flows of the expected ore
reserves and costs to extract the ore discounted at a real discount rate of 9.2% for the Stillwater and East Boulder mines and Columbus
metallurgical complex, and 10.9% for the Blitz project, an average platinum price of US$1,375/oz and an average palladium price of
US$880/oz. The fair value of borrowings (Convertible Debentures) was based on the settlement price.
Goodwill
Goodwill has been recognised as follows:
Figures in million
US dollar SA rand
Consideration 2,201.4 28,750.7
Fair value of identifiable net assets (1,757.5) (22,953.8)
Goodwill 443.9 5,796.9
The goodwill is attributable to the premium paid, and talent and skills of Stillwater's workforce.
The allocation of goodwill has been provisionally allocated to the Stillwater group of cash-generating units. None of the goodwill
recognised is expected to be deducted for tax purposes.
7. Equity-accounted investments
The Group holds the following equity-accounted investments:
Figures in million - SA rand As at
Jun 2017 Dec 2016 Jun 2016
Mimosa
2,038.8 2,049.3 2,046.8
Rand Refinery(1) 90.9 72.4 93.9
Other equity-accounted investments 34.3 35.7 51.5
Total equity-accounted investments 2,164.0 2,157.4 2,192.2
(1) Sibanye-Stillwater has a 33.1% interest in Rand Refinery Proprietary Limited (Rand Refinery) which is accounted for using the
equity method. The shareholders of Rand Refinery entered into and finalised agreements which result in the conversion of the loan
(of R403.9 million) into preference shares.
Mimosa
Sibanye-Stillwater has a 50% interest in Mimosa Investments Limited (Mimosa), which owns and operates the Mimosa mine.
The equity-accounted investment in Mimosa movement for the year is as follows:
Figures in million - SA rand As at
Jun 2017 Dec 2016 Jun 2016
Balance at beginning of the period 2,049.3 2,046.8 -
Share of results of equity-accounted investee after tax 85.1 143.9 (29.0)
Foreign currency translation (95.6) (141.4) 9.1
Equity-accounted investment on acquisition of subsidiaries - - 2,066.7
Balance at end of the period 2,038.8 2049.3 2,046.8
8. Borrowings
Figures in million - SA rand As at
Notes Jun 2017 Dec 2016 Jun 2016
Balance at beginning of the period 8,973.8 7,028.9 3,803.6
Borrowings acquired on acquisition of subsidiary 6 5,937.6 - -
Loans raised 54,711.0 11,955.0 5,325.5
- R6.0 billion RCF 800.0 5,100.0 -
- US$350 million RCF 492.9 554.0 2,217.5
- Stillwater Bridge Facility 34,000.3 - -
- US$1.05 billion bond 13,109.5 - -
- R4.5 billion Facilities - - 1,936.4
- Other borrowings 6,308.3 6,301.0 1,171.6
Loans repaid (38,658.3) (9,879.8) (1,954.9)
- R6.0 billion RCF - - -
- US$350 million RCF - (558.3) (653.3)
- Stillwater Bridge Facility (25,739.1) - -
- Stillwater Convertible Debentures (5,861.4) - -
- Other borrowings (7,057.8) (6,071.5) (651.6)
- R4.5 billion Facilities - (3,250.0) (650.0)
Unwinding of loans recognised at amortised cost 70.0 69.0 72.4
(Gain)/loss on revised estimated cash flows (107.0) 29.3 -
Gain on foreign exchange differences (718.6) (220.8) (196.4)
Franco-Nevada settlement (non-cash) - (7.8) (21.3)
Balance at end of the period 30,208.5 8,973.8 7,028.9
Borrowings consist of:
- R6.0 billion RCF 5,900.0 5,100.0 -
- US$350 million RCF 1,828.4 1,369.0 1,470.0
- Stillwater Bridge Facility 7,566.6 - -
- Stillwater Convertible Debentures 3.4 - -
- US$1.05 billion bond 13,274.6 - -
- Burnstone Debt 1,633.7 1,752.6 1,778.6
- Franco Nevada liability 1.8 2.7 11.1
- Other borrowings - 749.5 520.0
- R4.5 billion Facilities - - 3,249.2
Borrowings 30,208.5 8,973.8 7,028.9
Current portion of borrowings (7,571.8) (752.3) (3,780.3)
Non-current borrowings 22,636.7 8,221.5 3,248.6
8.1 US$1.05 billion bond
On 27 June 2017 Sibanye-Stillwater completed a two tranche US$1.05 billion international corporate bond offering (the Notes). The
proceeds of the bond offering were applied to the partial repayment of the Stillwater Bridge Facility raised for the acquisition of
Stillwater.
Terms of the Notes
Facility: US$500 million 6.125% Senior Notes due 2022 (the 2022 Notes)
US$550 million 7.125% Senior Notes due 2025 (the 2025 Notes)
Interest rate: 2022 Notes: 6.125%
2025 Notes: 7.125%
Term of the Notes: 2022 Notes: Five years
2025 Notes: Eight years
Issuer: Stillwater Mining Company
Guarantors: Each of the Notes will be fully and unconditionally guaranteed, jointly and severally by the
Guarantors (Kroondal Operations Proprietary Limited, Rand Uranium Proprietary Limited, Sibanye
Rustenburg Platinum Mines Proprietary Limited and Sibanye Gold Limited). The Guarantees will rank
equally in right of payment to all existing and future senior debt of the Guarantors.
8.2 Capital management
Debt maturity
The following are contractually due, undiscounted cash flows resulting from maturities of financial liabilities:
Figures in million - SA rand Jun 2017
Between one and Five years and
Total Within one year four years later
R6.0 billion RCF 5,900.0 - 5,900.0 -
US$350 million RCF 1,828.4 - 1,828.4 -
Stillwater Bridge Facility(1) 7,566.6 7,566.6 - -
Stillwater Convertible Debentures 3.4 3.4 - -
US$1.05 billion bond 13,713.0 - - 13,713.0
Burnstone Debt 2,221.5 - 101.7 2,119.8
Franco Nevada liability 1.8 1.8 - -
(1)On 21 July Sibanye-Stillwater repaid US$218.2 million and at 30 August 2017 US$361.1 million remains drawn under the Stillwater Bridge Facility.
Net debt to EBITDA
Figures in million - SA Rand As at
Jun 2017 Dec 2016 Jun 2016
Borrowings(1) 28,574.8 7,221.2 5,250.3
Cash and cash equivalents(2) 6,481.8 928.4 837.6
Net debt(3) 22,093.0 6,292.8 4,412.7
EBITDA(4) 8,371.2 10,531.6 9,363.9
Net debt to EBITDA (ratio)(5) 2.6 0.6 0.5
(1) Borrowings are only those borrowings that have recourse to Sibanye. Borrowings thus exclude the Burnstone Debt.
(2) Cash and cash equivalents exclude cash of Burnstone.
(3) Net debt represents borrowings and bank overdraft less cash and cash equivalents. Borrowings are only those borrowings that have
recourse to Sibanye-Stillwater and therefore exclude the Burnstone Debt. Net debt excludes Burnstone cash and cash equivalents.
(4) Earnings before interest, taxes, depreciation and amortisation (EBITDA) is defined as net operating profit before depreciation and
amortisation. EBITDA may not be comparable to similarly titled measures of other companies. Management believes that EBITDA is used by
investors and analysts to evaluate companies in the mining industry. EBITDA is not a measure of performance under IFRS and should be
considered in addition to, and not as a substitute for, other measures of financial performance and liquidity reported in accordance with IFRS.
(5) Net debt to EBITDA ratio is defined as net debt as at the end of a reporting period divided by EBITDA of the last 12 months ending on the same
reporting date.
9. Other payables
Figures in million - SA rand As at
Notes Jun 2017 Dec 2016 Jun 2016
Dissenting shareholders 6 1,378.8 - -
Deferred payment 1,651.5 1,577.4 -
Other non-current payables 221.7 36.3 33.2
Other payables 3,252.0 1,613.7 33.2
10. Fair value of financial assets and financial liabilities, and risk management
10.1 Measurement of fair value
The fair value of financial instruments is estimated based on ruling market prices, volatilities and interest rates at 30 June 2017.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments:
Level 1: unadjusted quoted prices in active markets for identical asset or liabilities;
Level 2: inputs other than quoted prices in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly
(derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following tables set out the Group's significant financial instruments measured at fair value by level within the fair value hierarchy:
Figures in million - SA rand
Jun 2017 Dec 2016 Jun 2016
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 2,735.1 489.9 - 2,630.6 469.9 - 2,197.9 457.6 -
- Trade receivables - PGM sales 3,896.7 - - 4,001.9 - - 905.6 - -
10.2 Risk management activities
Liquidity risk: working capital and going concern assessment
For the six months ended 30 June 2017, the Group incurred a loss of R4,802.7 million (30 June 2016: profit of R88.1 million). As at
30 June 2017 the Group's current assets exceeded its current liabilities by R483.0 million (31 December 2016: R1,466.6 million).
Sibanye-Stillwater funded the Stillwater Transaction through a $2,650 million bridge loan facility maturing on 4 May 2018. Following
the rights issue by Sibanye-Stillwater of approximately US$1,000 million and the bond offering by Stillwater of $1,050 million, at
30 August 2017 US$361 million (residual) of the Stillwater Bridge Facility remains drawn and a further US$76 million remains available
for drawdowns. To enhance its capital structure and financing mix, Sibanye-Stillwater is evaluating additional financing structures,
which may include, among others, a private equity placing, bank debt, streaming facilities and/or the issuance of convertible bonds,
all of which are being assessed considering prevailing market conditions, exchange rates and commodity prices. Sibanye-Stillwater's
objectives are to maintain a strong statement of financial position, preserving its long term financial flexibility and underpinning its
ability to deliver sustainable returns to shareholders. These financing structures, and the refinancing of the residual of the Stillwater
Bridge Facility, is expected to be underwritten and implemented by a consortium, selected from the Stillwater Bridge Facility
arranging and funding banks, before the end of 2017.
The Stillwater Bridge Facility, as well as Sibanye-Stillwater's existing facilities, permit a leverage (or net debt to EBITDA) ratio of 3.5:1
through to 31 December 2018, calculated on a quarterly basis. The leverage ratio provides for pro forma adjustments to include
EBITDA from acquired businesses in the calculation. Sibanye-Stillwater's leverage ratio is expected to peak at no more than 3.0:1.
Consistent with its long-term strategy, Sibanye-Stillwater plans to deleverage over time to its targeted leverage ratio of no greater
than 1.0:1.
The Group has committed unutilised debt facilities of R3,835 million at 30 June 2017.
The directors believe that the cash generated by its operations, cash on hand and the remaining balance of the Group's revolving
credit facilities will enable the Group to continue to meet its obligations as they fall due. The condensed consolidated interim financial
statements for the period ended 30 June 2017, therefore, have been prepared on a going concern basis.
11. Contingent liabilities
Dissenting shareholders
Following the closing of the Stillwater Transaction on 4 May 2017, three Petitions for Appraisal of Stock were filed in the Chancery
Court for the State of Delaware. The first action, captioned Blue Mountain Credit Alternatives Master Fund L.P. et al. vs. Stillwater
Mining Company, Case No. 2017-0385-JTL, was filed 19 May 2017 on behalf of holders of a purported 4,219,523 shares of common
stock of Stillwater. The second action, captioned Brigade Leveraged Capital Structures Fund Ltd. et al. vs. Stillwater Mining Company,
Case No. 2017-0389-JTL, was filed 22 May 2017 on behalf of holders of a purported 1,200,000 shares of common stock of Stillwater.
The third action, captioned Hillary Shane Revocable Trust, et al. vs. Stillwater Mining Company, Case No. 2017-0400-JTL, was filed
26 May 2017 on behalf of holders of a purported 384,000 shares of common stock of Stillwater. At this point, the total number of shares
of Stillwater common stock for which appraisal has been demanded and not requested to be withdrawn is approximately 5,803,623,
inclusive of the shares purportedly held by Petitioners in the three appraisal actions. Each of the three appraisal actions seeks a
determination of the fair value of the shares of the common stock of Stillwater under Section 262 of the General Corporation Law of
the State of Delaware (DGCL). Petitioners seek a judgment awarding them, among other things, the fair value of their Stillwater shares
plus interest. A hearing to consolidate the three appraisal actions was scheduled for 14 August 2017. To date, no scheduling order
has been entered by the Court, and the parties are currently engaged in discovery. Because the appraisal actions are in the early
stages, the court's determination as to fair value of the shares is currently unknown. Accordingly, for accounting purposes only, we
have used the merger price of US$18.00 per share in estimating our contingent liability relating to the shares for which appraisal has
been demanded (see note 6 and 9); however, fair value may ultimately be determined by the court to be equal to, or different
from, the merger price.
12. Events after the reporting period
There were no events that could have a material impact on the financial results of the Group after 30 June 2017, other than those
discussed below.
Consultation on restructuring of SA gold operations
On 3 August 2017, Sibanye-Stillwater entered into S189 consultations with relevant stakeholders regarding the restructuring of its SA
gold operations pursuant to ongoing losses experienced at the Cooke Operations and Beatrix West mine (see note 4).
Capitalisation issue
As a result of various temporary factors discussed elsewhere in this report, an interim dividend was not declared. Instead, the Board
approved a capitalisation issue in the form of 2 (two) new shares for every 100 (one hundred) held. This is not reflected in these
financial statements.
13. Review report of the independent auditor
These condensed consolidated interim financial statements for the six months ended 30 June 2017, 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
For the six months ended 30 June 2017
GROUP SA REGION US REGION(1)
Total SA Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
Figures in million - SA rand Total Region gold fontein Kloof Beatrix Cooke porate PGM Kroondal Mile Mimosa burg porate Stillwater
Revenue 19,219.2 17,272.8 11,275.7 4,021.3 4,010.3 2,354.7 889.4 - 5,997.1 1,304.0 84.1 805.9 4,609.0 (805.9) 1,946.4
Underground 16,325.4 15,440.0 10,100.3 3,537.4 3,597.1 2,279.8 686.0 - 5,339.7 1,304.0 - 805.9 4,035.7 (805.9) 885.4
Surface 1,832.8 1,832.8 1,175.4 483.9 413.2 74.9 203.4 - 657.4 - 84.1 - 573.3 - -
Recycling 1,061.0 - - - - - - - - - - - - - 1,061.0
Operating costs (15,986.7) (14,414.3) (8,922.7) (3,105.1) (2,817.5) (1,954.8) (1,045.3) - (5,491.6) (1,165.6) (59.5) (610.9) (4,266.5) 610.9 (1,572.4)
Underground (13,627.6) (13,079.6) (8,011.5) (2,748.3) (2,509.8) (1,878.2) (875.2) - (5,068.1) (1,165.6) - (610.9) (3,902.5) 610.9 (548.0)
Surface (1,334.7) (1,334.7) (911.2) (356.8) (307.7) (76.6) (170.1) - (423.5) - (59.5) - (364.0) - -
Recycling (1,024.4) - - - - - - - - - - - - - (1,024.4)
Operating profit 3,232.5 2,858.5 2,353.0 916.2 1,192.8 399.9 (155.9) - 505.5 138.4 24.6 195.0 342.5 (195.0) 374.0
Underground 2,697.8 2,360.4 2,088.8 789.1 1,087.3 401.6 (189.2) - 271.6 138.4 - 195.0 133.2 (195.0) 337.4
Surface 498.1 498.1 264.2 127.1 105.5 (1.7) 33.3 - 233.9 - 24.6 - 209.3 - -
Recycling 36.6 - - - - - - - - - - - - - 36.6
Amortisation and
depreciation (2,496.7) (2,183.7) (1,856.5) (532.0) (676.1) (394.5) (241.8) (12.1) (327.2) (102.2) (1.4) (97.8) (228.6) 102.8 (313.0)
Net operating profit 735.8 674.8 496.5 384.2 516.7 5.4 (397.7) (12.1) 178.3 36.2 23.2 97.2 113.9 (92.2) 61.0
Interest income 194.8 179.7 108.8 35.2 28.2 13.6 20.0 11.8 70.9 13.3 1.4 8.7 44.8 2.7 15.1
Finance expense (1,439.6) (1,266.9) (1,108.7) (114.3) (125.8) (66.9) (39.4) (762.3) (158.2) (0.3) - (5.2) (118.7) (34.0) (172.7)
Share-based payments (116.2) (114.5) (114.5) (2.5) (1.8) (1.3) - (108.9) - - - - - - (1.7)
Net other costs (26.7) (22.0) (43.4) (16.1) (14.8) (36.3) (171.0) 194.8 21.4 (37.5) (17.3) 36.3 (5.5) 45.4 (4.7)
Non-recurring items (4,392.3) (4,388.0) (4,302.7) (4.1) (3.4) (606.8) (2,196.8) (1,491.6) (85.3) (8.0) - - (72.8) (4.5) (4.3)
Royalties (172.9) (172.9) (140.8) (46.7) (69.5) (20.1) (4.5) - (32.1) (2.5) - (34.1) (29.6) 34.1 -
Current taxation (38.9) (63.9) (63.0) (5.4) (89.2) (1.3) - 32.9 (0.9) - (0.5) (16.1) - 15.7 25.0
Deferred taxation 453.3 438.7 458.7 (6.2) 37.2 190.8 1.5 235.4 (20.0) - 2.8 (1.7) 10.4 (31.5) 14.6
Loss for the period (4,802.7) (4,735.0) (4,709.1) 224.1 277.6 (522.9) (2,787.9) (1,900.0) (25.9) 1.2 9.6 85.1 (57.5) (64.3) (67.7)
Attributable to: -
Owners of Sibanye-
Stillwater (4,803.7) (4,736.0) (4,709.3) 224.1 277.6 (522.9) (2,787.9) (1,900.2) (26.7) 1.2 8.8 85.1 (57.5) (64.3) (67.7)
Non-controlling interests 1.0 1.0 0.2 - - - - 0.2 0.8 - 0.8 - - - -
Sustaining capital
expenditure (509.0) (462.3) (175.9) (84.4) (51.8) (26.6) (8.5) (4.6) (286.4) (78.9) (5.4) (104.6) (202.1) 104.6 (46.7)
Ore reserve development (1,501.7) (1,387.2) (1,153.6) (419.4) (427.1) (253.4) (53.7) - (233.6) - - - (233.6) - (114.5)
Growth projects (473.1) (304.6) (304.6) (30.5) (61.0) (0.2) (11.7) (201.2) - - - - - - (168.5)
Total capital expenditure (2,483.8) (2,154.1) (1,634.1) (534.3) (539.9) (280.2) (73.9) (205.8) (520.0) (78.9) (5.4) (104.6) (435.7) 104.6 (329.7)
For the six months ended 30 June 2017
GROUP SA REGION US REGION(1)
Figures in million - US Total SA Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
dollars2 Total Region gold fontein Kloof Beatrix Cooke porate PGM Kroondal Mile Mimosa burg porate Stillwater
Revenue 1,454.9 1,307.6 853.6 304.4 303.6 178.3 67.3 - 454.0 98.7 6.4 61.0 348.9 (61.0) 147.3
Underground 1,235.8 1,168.8 764.6 267.8 272.3 172.6 51.9 - 404.2 98.7 - 61.0 305.5 (61.0) 67.0
Surface 138.8 138.8 89.0 36.6 31.3 5.7 15.4 - 49.8 - 6.4 - 43.4 - -
Recycling 80.3 - - - - - - - - - - - - - 80.3
Operating costs (1,210.2) (1,091.2) (675.5) (235.0) (213.3) (148.0) (79.2) - (415.7) (88.2) (4.5) (46.2) (323.0) 46.2 (119.0)
Underground (1,031.6) (990.1) (606.5) (208.0) (190.0) (142.2) (66.3) - (383.6) (88.2) - (46.2) (295.4) 46.2 (41.5)
Surface (101.1) (101.1) (69.0) (27.0) (23.3) (5.8) (12.9) - (32.1) - (4.5) - (27.6) - -
Recycling (77.5) - - - - - - - - - - - - - (77.5)
Operating profit 244.7 216.4 178.1 69.4 90.3 30.3 (11.9) - 38.3 10.5 1.9 14.8 25.9 (14.8) 28.3
Underground 204.2 178.7 158.1 59.8 82.3 30.4 (14.4) - 20.6 10.5 - 14.8 10.1 (14.8) 25.5
Surface 37.7 37.7 20.0 9.6 8.0 (0.1) 2.5 - 17.7 - 1.9 - 15.8 - -
Recycling 2.8 - - - - - - - - - - - - - 2.8
Amortisation and
depreciation (189.0) (165.3) (140.6) (40.3) (51.2) (29.9) (18.3) (0.9) (24.7) (7.7) (0.1) (7.4) (17.3) 7.8 (23.7)
Net operating profit 55.7 51.1 37.5 29.1 39.1 0.4 (30.2) (0.9) 13.6 2.8 1.8 7.4 8.6 (7.0) 4.6
Interest income 14.7 13.6 8.2 2.7 2.1 1.0 1.5 0.9 5.4 1.0 0.1 0.7 3.4 0.2 1.1
Finance expense (109.0) (95.9) (83.9) (8.7) (9.5) (5.1) (2.9) (57.7) (12.0) - - (0.4) (9.0) (2.6) (13.1)
Share-based payments (8.8) (8.7) (8.7) (0.2) (0.1) (0.1) - (8.3) - - - - - - (0.1)
Net other costs (2.2) (1.9) (3.1) (1.2) (1.0) (2.8) (12.8) 14.7 1.2 (2.9) (1.4) 2.6 (0.5) 3.4 (0.3)
Non-recurring items (332.4) (332.1) (325.7) (0.3) (0.3) (45.9) (166.3) (112.9) (6.4) (0.6) - - (5.5) (0.3) (0.3)
Royalties (13.1) (13.1) (10.7) (3.5) (5.3) (1.5) (0.4) - (2.4) (0.2) - (2.6) (2.2) 2.6 -
Current taxation (2.9) (4.8) (4.8) (0.4) (6.8) (0.1) - 2.5 - - - (1.2) - 1.2 1.9
Deferred taxation 34.3 33.2 34.7 (0.5) 2.8 14.5 0.1 17.8 (1.5) - 0.2 (0.1) 0.8 (2.4) 1.1
Loss for the period (363.7) (358.6) (356.5) 17.0 21.0 (39.6) (211.0) (143.9) (2.1) 0.1 0.7 6.4 (4.4) (4.9) (5.1)
Attributable to: -
Owners of Sibanye-
Stillwater (363.8) (358.7) (356.5) 17.0 21.0 (39.6) (211.0) (143.9) (2.2) 0.1 0.6 6.4 (4.4) (4.9) (5.1)
Non-controlling interests 0.1 0.1 0.0 - - - - 0.0 0.1 - 0.1 - - - -
Sustaining capital
expenditure (38.4) (34.9) (13.2) (6.4) (3.9) (2.0) (0.6) (0.3) (21.7) (6.0) (0.4) (7.9) (15.3) 7.9 (3.5)
Ore reserve development (113.7) (105.0) (87.3) (31.7) (32.3) (19.2) (4.1) - (17.7) - - - (17.7) - (8.7)
Growth projects (35.9) (23.1) (23.1) (2.3) (4.6) - (0.9) (15.3) - - - - - - (12.8)
Total capital expenditure (188.0) (163.0) (123.6) (40.4) (40.8) (21.2) (5.6) (15.6) (39.4) (6.0) (0.4) (7.9) (33.0) 7.9 (25.0)
(1) The US PGM operations' results for the six months ended 30 June 2017 include Stillwater for two months since acquisition.
(2) The average exchange rate for the six months ended 30 June 2017 was R13.21/US$.
For the six months ended 31 December 2016
Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
Figures in million - SA rand Group gold fontein Kloof Beatrix Cooke porate PGM(1) 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 revenue 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 revenue 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 operating costs (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 operating costs (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)
Interest income 169.6 144.5 34.6 30.6 16.8 15.9 46.6 25.1 7.8 (9.3) - 8.2 18.4
Finance expense (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) - - - - - -
Net other costs 150.6 94.1 (0.7) (5.7) (18.7) (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 taxation (618.1) (617.7) (269.3) (213.7) (137.5) (0.3) 3.1 (0.4) - - (22.8) - 22.4
Deferred taxation (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 2,278.0 (236.1)
Attributable to:
Owners of Sibanye-Stillwater 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 2,278.0 (236.1)
Non-controlling interests (185.7) (188.0) - - - (188.9) 0.9 2.3 - 2.3 - - -
Sustaining capital expenditure (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) - - - - - -
Total capital 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
For the six months ended 31 December 2016
Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
Figures in million - US dollar(2) Group gold fontein Kloof Beatrix Cooke porate PGM(1) Kroondal Mile Mimosa burg porate
Revenue 1,171.9 962.0 331.4 315.8 210.5 107.0 (2.6) 210.0 91.6 7.0 56.0 112.9 (57.5)
Underground revenue 1,052.7 862.7 288.5 285.1 201.5 90.3 (2.6) 190.0 91.6 - 56.0 99.9 (57.5)
Surface revenue 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 operating costs (730.6) (554.5) (172.4) (163.5) (130.6) (88.0) - (176.2) (77.0) - (43.1) (99.2) 43.1
Surface operating costs (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 322.1 308.3 116.1 121.6 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)
Interest income 12.1 10.3 2.4 2.1 1.2 1.1 3.5 1.8 0.5 (0.6) - 0.6 1.3
Finance expense (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) - - - - - -
Net other costs 6.2 2.7 (0.7) (1.1) (1.7) (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 taxation (43.6) (43.5) (19.0) (15.2) (9.6) - 0.3 (0.1) - - (1.6) - 1.5
Deferred taxation (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 9.7 155.2 (16.6)
Attributable to:
Owners of Sibanye-Stillwater 230.5 76.6 60.4 54.1 25.7 (54.9) (8.7) 153.9 4.6 1.0 9.7 155.2 (16.6)
Non-controlling interests (13.4) (13.6) - - - (13.7) 0.1 0.2 - 0.2 - - -
Sustaining capital expenditure (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) - - - - - -
Total capital 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
(1) The SA PGM operations' results for the six months ended 31 December 2016 includes 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$.
For the six months ended 30 June 2016
Total SA Drie- Cor- Total SA Platinum Cor-
Figures in million - SA rand Group gold fontein Kloof Beatrix Cooke porate PGM(1) 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 revenue 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 revenue 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 operating costs (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 operating costs (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 4,710.2 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 682.7 682.3 362.3 244.7 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)
Interest 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 expense (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) - - - - -
Net other costs (1,309.2) (1,123.4) (225.4) (182.2) (151.8) (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 taxation (493.7) (493.6) (203.0) (208.3) (85.5) (0.8) 4.0 (0.1) - - - (0.1)
Deferred taxation (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)
Attributable to:
Owners of Sibanye-Stillwater 333.0 519.4 896.7 859.0 401.3 (750.0) (887.6) (186.4) 23.8 (0.2) (29.0) (181.0)
Non-controlling interests (244.9) (244.9) - - - (244.9) - - - - - -
Sustaining capital expenditure (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) - - - - -
Total capital 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
For the six months ended 30 June 2016
Total SA Drie- Cor- Total SA Platinum Cor-
Figures in million - US dollar(2) Group gold fontein Kloof Beatrix Cooke porate PGM(1) 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 306.3 301.6 105.5 110.2 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)
Interest income 10.5 9.4 2.4 2.1 1.1 1.1 2.7 1.1 0.3 - - 0.8
Finance expense (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) - - - - -
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 taxation (32.1) (32.1) (13.2) (13.5) (5.6) (0.1) 0.3 - - - - -
Deferred taxation (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)
Attributable to:
Owners of Sibanye-Stillwater 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) - - - - - -
Sustaining capital expenditure (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) - - - - -
Total capital 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
(1) The SA PGM operations' results for the six months ended 30 June 2016 include the Aquarius subsidiaries for three months since acquisition.
(2) The average exchange rate for the six months ended 30 June 2016 was R15.38/US$.
UNIT COST BENCHMARKS FOR THE SIX MONTHS ENDED 30 JUNE 2017, 31 DECEMBER 2016 AND
30 JUNE 2016
SA gold operations
SA REGION
Total SA gold
operations Driefontein Kloof Beatrix Cooke Corporate
Operating cost(1) Jun 2017 8,922.7 3,105.1 2,817.5 1,954.8 1,045.3 -
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 -
Less: General and admin Jun 2017 (123.6) (39.7) (46.2) (25.0) (12.7) -
Dec 2016 (95.3) (34.3) (32.4) (18.0) (10.6) -
Jun 2016 (94.0) (34.1) (31.5) (16.8) (11.6) -
Plus: Royalty Jun 2017 140.8 46.7 69.5 20.1 4.5 -
Dec 2016 265.3 102.8 94.4 60.9 7.2 -
Jun 2016 262.7 102.0 99.9 52.3 8.5 -
Total cash cost(2) Jun 2017 8,939.9 3,112.1 2,840.8 1,949.9 1,037.1 -
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 -
Plus: General and admin Jun 2017 123.6 39.7 46.2 25.0 12.7 -
Dec 2016 95.3 34.3 32.4 18.0 10.6 -
Jun 2016 94.0 34.1 31.5 16.8 11.6 -
Community costs Jun 2017 9.1 3.2 3.9 1.5 0.5 -
Dec 2016 60.8 8.5 13.1 23.0 16.2 -
Jun 2016 19.7 8.0 7.2 4.0 0.5 -
Share-based payments(3) Jun 2017 5.6 2.5 1.8 1.3 - -
Dec 2016 12.3 5.6 4.3 2.4 - -
Jun 2016 27.0 10.9 9.4 6.7 - -
Rehabilitation Jun 2017 68.5 (11.4) 22.0 14.3 41.6 2.0
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
Ore reserve development Jun 2017 1,153.6 419.4 427.1 253.4 53.7 -
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 -
Sustaining capital expenditure Jun 2017 171.3 84.4 51.8 26.6 8.5 -
Dec 2016 402.2 147.0 175.3 52.8 27.1 -
Jun 2016 211.2 71.5 85.9 32.0 21.8 -
On-mine exploration Jun 2017 - - - - - -
Dec 2016 - - - - - -
Jun 2016 - - - - - -
Less: By-product credit Jun 2017 (11.8) (4.5) (2.9) (3.0) (1.4) -
Dec 2016 (15.0) (5.0) (3.8) (4.1) (2.1) -
Jun 2016 (13.2) (4.6) (3.0) (3.5) (2.1) -
Total All-in-sustaining cost(4) Jun 2017 10,459.8 3,645.4 3,390.7 2,269.0 1,152.7 2.0
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
Plus: Corporate cost, growth and capital expenditure Jun 2017 418.1 30.6 61.0 0.2 11.7 314.6
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
Total All-in-cost(5) Jun 2017 10,877.9 3,676.0 3,451.7 2,269.2 1,164.4 316.6
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
Gold sold kg Jun 2017 21,547 7,688 7,660 4,501 1,698 -
Dec 2016 23,676 8,173 7,788 5,197 2,518 -
Jun 2016 23,229 7,873 7,388 4,844 3,124 -
000'oz Jun 2017 692.7 247.2 246.3 144.7 54.5 -
Dec 2016 761.3 262.8 250.4 167.1 81.0 -
Jun 2016 746.8 253.1 237.5 155.7 100.4 -
Total cash cost R/kg Jun 2017 414,902 404,800 370,862 433,215 610,777 -
Dec 2016 372,504 350,875 331,818 378,718 555,838 -
Jun 2016 381,635 360,130 350,189 384,723 505,410 -
US$/oz Jun 2017 977 953 874 1,020 1,439 -
Dec 2016 829 781 739 843 1,238 -
Jun 2016 772 728 708 778 1,022 -
All-in-sustaining cost R/kg Jun 2017 485,441 474,168 442,650 504,110 678,857 -
Dec 2016 451,352 420,763 426,233 453,454 623,550 -
Jun 2016 448,922 422,253 427,883 452,044 560,723 -
US$/oz Jun 2017 1,143 1,117 1,043 1,187 1,599 -
Dec 2016 1,005 937 949 1,010 1,388 -
Jun 2016 908 854 865 914 1,134 -
All-in-cost R/kg Jun 2017 504,845 478,148 450,614 504,155 685,748 -
Dec 2016 476,774 425,315 438,392 454,320 637,927 -
Jun 2016 465,952 424,400 432,661 452,106 562,164 -
US$/oz Jun 2017 1,189 1,126 1,061 1,188 1,615 -
Dec 2016 1,062 947 976 1,012 1,420 -
Jun 2016 942 858 875 914 1,137 -
Average exchange rates for the six months ended 30 June 2017, 31 December 2016 and 30 June 2016 were R13.21/US$, R13.97/US$ and R15.38/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 and depreciation, tax, and non-recurring items.
(2) Total cash cost - Operating costs less off-mine costs, which include G&A 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 adjustment of the cash-settled share-based payment obligation
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, costs associated with merger and acquisition activity, working capital, impairments, financing costs, one-
time severance charges and items needed to normalise earnings.
SA and US PGM operations
GROUP SA REGION US REGION
Total SA PGM
Total operations(1) Kroondal Mimosa Plat Mile Rustenburg Corporate Stillwater(2)
Operating cost(3) Jun 2017 6,039.6 5,491.6 1,165.6 610.9 59.5 4,266.5 (610.9) 548.0
Less: General and admin(4) Jun 2017 (116.0) (89.7) (42.7) - - (47.0) - (26.3)
Plus: Royalty Jun 2017 32.1 32.1 2.5 34.1 - 29.6 (34.1) -
Total cash cost5 Jun 2017 5,955.7 5,434.0 1,125.4 645.0 59.5 4,249.1 (645.0) 521.7
Plus: General and admin Jun 2017 116.0 89.7 42.7 - - 47.0 - 26.3
Inventory change Jun 2017 100.0 - - - - - - 100.0
Share-based payments6 Jun 2017 1.7 - - - - - - 1.7
Rehabilitation Jun 2017 39.5 38.5 31.0 2.0 - 7.4 (1.9) 1.0
Ore reserve development Jun 2017 348.1 233.6 - - - 233.6 - 114.5
Sustaining capital expenditure Jun 2017 333.1 286.4 78.9 - 5.4 202.1 - 46.7
On-mine exploration Jun 2017 - - - - - - - -
Less: By-product credit Jun 2017 (640.4) (590.9) (96.6) (120.8) (4.4) (489.9) 120.8 (49.5)
Total All-in-sustaining cost7 Jun 2017 6,253.7 5,491.3 1,181.4 526.2 60.5 4,249.3 (526.1) 762.4
Plus: Corporate cost, growth and capital
expenditure Jun 2017 176.2 - - - - - - 176.2
Total All-in-cost8 Jun 2017 6,429.9 5,491.3 1,181.4 526.2 60.5 4,249.3 (526.1) 938.6
PGM production 4Eoz - 2Eoz Jun 2017 684,437 590,712 114,619 60,879 8,898 406,316 - 93,725
kg Jun 2017 21,288 18,373 3,565 1,894 277 12,638 - 2,915
Total cash cost R/4Eoz - R/2Eoz Jun 2017 9,551 10,256 9,819 10,595 6,687 10,458 - 5,566
US$/4Eoz - US$/2Eoz Jun 2017 723 777 744 802 506 792 - 425
All-in-sustaining cost R/4Eoz - R/2Eoz Jun 2017 10,029 10,364 10,307 8,643 6,799 10,458 - 8,134
US$/4Eoz - US$/2Eoz Jun 2017 759 785 781 655 515 792 - 622
All-in-cost R/4Eoz - R/2Eoz Jun 2017 10,312 10,364 10,307 8,643 6,799 10,458 - 10,014
US$/4Eoz - US$/2Eoz Jun 2017 781 785 781 655 515 792 - 765
Average exchange rates for the six months ended 30 June 2017, 31 December 2016 and 30 June 2016 were R13.21/US$, R13.97/US$ and R15.38/US$, respectively. Comparative numbers
for 2016 is not available.
Figures may not add as they are rounded independently.
(1) The SA PGM operations' results for the six months ended 31 December 2016 include the Rustenburg Operations for two months since acquisition and the results for the six months ended
30 June 2016 include the Aquarius subsidiaries for three months since acquisition.
(2) The US PGM operations' results for the six months ended 30 June 2017 include Stillwater for the two months since acquisition. Stillwater's unit costs are for the underground operation, and
exclude prodution and costs related to the recycling business. The income and expenses are translated into SA rand at the average exchange rate for the two months ended
30 June 2017.
Total cash costs are calculated in accordance with the Gold Institute Industry standard.
(3) Operating costs - All gold mining-related costs before amortisation and depreciation, tax, non-recurring items. The Group and total SA PGM Operations' unit cost benchmarks exclude
the financial results of Mimosa, which is equity accounted and excluded from net operating cost.
(4) Stillwater's G&A costs include, in addition to administration and management fees, secondary processing costs, inventory change and by-products credits.
(5) Total cash cost - Operating costs less off-mine costs, which include G&A costs, as detailed in the table above.
All-in costs are calculated in accordance with the World Gold Council guidance
(3) Operating cost - As published, and includes all mining and processing costs, third party refining costs, permitting costs and corporate G&A charges.
(6) Share-based payments are calculated based on the fair value at initial recognition fair value and does not include the adjustment of the cash-settled share-based payment obligation
to the reporting date fair value.
(7) Total All-in sustaining costs includes operating costs and costs detailed above, including sustaining capital expenditure, based on attributable production.
(8) Total All-in costs includes sustaining and Group costs, excluding income tax, costs associated with merger and acquisition activity, working capital, impairments, financing costs, one-
time severance charges and items needed to normalise earnings.
SALIENT FEATURES AND COST BENCHMARKS FOR THE QUARTERS ENDED 30 JUNE 2017 AND
31 MARCH 2017
SA gold operations
SA REGION
Total SA gold operations Driefontein Kloof Beatrix Cooke
Under- Under- Under- Under- Under- Surface
Total ground Surface ground Surface ground Surface ground Surface ground
Production
Tonnes milled/treated 000't Jun 2017 5,007 1,979 3,028 536 997 570 886 744 138 129 1,007
Mar 2017 4,858 1,852 3,006 531 845 506 813 621 336 194 1,012
Yield g/t Jun 2017 2.23 5.08 0.36 6.79 0.45 6.38 0.47 2.93 0.25 4.71 0.19
Mar 2017 2.11 4.92 0.38 5.72 0.56 6.33 0.46 3.50 0.32 3.61 0.19
Gold produced kg Jun 2017 11,152 10,062 1,090 3,639 453 3,635 415 2,181 35 607 187
Mar 2017 10,266 9,116 1,150 3,038 474 3,201 375 2,176 109 701 192
000'oz Jun 2017 358.5 323.5 35.0 117.0 14.6 116.9 13.3 70.1 1.1 19.5 6.0
Mar 2017 330.1 293.1 37.0 97.7 15.2 102.9 12.1 70.0 3.5 22.5 6.2
Gold sold kg Jun 2017 11,152 10,062 1,090 3,639 453 3,635 415 2,181 35 607 187
Mar 2017 10,395 9,234 1,161 3,122 474 3,235 375 2,176 109 701 203
000'oz Jun 2017 358.5 323.5 35.0 117.0 14.6 116.9 13.3 70.1 1.1 19.5 6.0
Mar 2017 334.2 296.9 37.3 100.4 15.2 104.0 12.1 70.0 3.5 22.5 6.5
Price and costs
Gold price received R/kg Jun 2017 530,111 529,765 530,914 529,829 528,463
Mar 2017 515,998 515,406 515,263 516,674 519,580
US$/oz Jun 2017 1,249 1,248 1,251 1,248 1,245
Mar 2017 1,215 1,214 1,213 1,217 1,223
Operating cost R/t Jun 2017 904 2,052 154 2,563 188 2,276 180 1,306 238 3,247 84
Mar 2017 896 2,113 147 2,538 200 2,375 182 1,461 130 2,352 80
Operating margin % Jun 2017 23 24 19 29 22 33 27 16 (77) (30) 14
Mar 2017 18 17 26 15 31 27 23 19 22 (25) 19
Total cash cost(1) R/kg Jun 2017 408,940 385,802 365,580 452,031 628,967
Mar 2017 421,308 426,446 376,814 414,967 594,690
US$/oz Jun 2017 964 909 861 1,065 1,482
Mar 2017 992 1,004 887 977 1,400
All-in sustaining cost(2) R/kg Jun 2017 477,600 453,397 435,309 521,977 693,073
Mar 2017 493,872 497,831 450,859 486,871 666,150
US$/oz Jun 2017 1,125 1,068 1,026 1,230 1,633
Mar 2017 1,163 1,172 1,062 1,146 1,568
All-in sustaining
cost margin % Jun 2017 10 14 18 1 (31)
Mar 2017 4 3 12 6 (28)
Capital expenditure
Ore reserve development Rm Jun 2017 582.3 217.6 217.5 125.9 21.3
Mar 2017 571.3 201.8 209.6 127.5 32.4
Sustaining capital Jun 2017 90.9 45.8 30.6 10.3 4.2
Mar 2017 80.4 38.6 21.2 16.3 4.3
Corporate and projects(3) Jun 2017 154.4 11.1 27.0 0.2 4.8
Mar 2017 154.8 19.4 34.0 - 6.9
Total capital expenditure Rm Jun 2017 827.6 274.5 275.1 136.4 30.3
Mar 2017 806.5 259.8 264.8 143.8 43.6
US$m Jun 2017 62.5 20.7 20.8 10.3 2.3
Mar 2017 61.1 19.7 20.0 10.9 3.3
Average exchange rates for the quarters ended 30 June 2017 and 31 March 2017 were R13.20/US$ and R13.21/US$, respectively.
Figures may not add as they are rounded independently.
(1) Total cash cost is calculated in accordance with the Gold Institute Industry Standard as cost of sales as recorded in profit or loss, less amortisation and depreciation and off-site (i.e.
central) G&A expenses (including head office costs) plus royalties and production taxes. Total cash cost per kilogram is defined as the average cost of producing a kilogram of gold,
calculated by dividing the total cash cost in a period by the total gold sold over the same period.
(2) All-in sustaining cost is defined as production costs plus all costs relating to sustaining current production and sustaining capital expenditure, and includes (but not limited to) operating
costs, share based payments, royalties, rehabilitation costs and sustaining capital expenditure.
(3) Corporate project expenditure for the quarters ended 30 June 2017 and 31 March 2017 amounted to R111.3 million (US$8.4 million) and R94.5 million (US$7.2 million), respectively. The
majority of this expenditure was on the Burnstone project.
SA and US PGM operations
GROUP SA REGION US REGION
Total SA PGM operations Kroondal Mimosa Plat Mile Rustenburg Stillwater(1)
Under- Under- Under-
Attributable Total Total ground Surface Attributable Attributable Surface ground Surface ground(2)
Production
Tonnes milled/treated 000't Jun 2017 6,996 6,776 3,101 3,675 924 346 2,072 1,831 1,603 220
Mar 2017 6,563 6,563 2,904 3,659 888 335 2,121 1,681 1,538 -
Plant head grade g/t Jun 2017 2.43 2.04 3.33 0.94 2.39 3.58 0.63 3.76 1.35 14.74
Mar 2017 2.10 2.10 3.29 1.15 2.41 3.58 0.69 3.69 1.79 -
Plant recoveries % Jun 2017 72.65 68.56 83.77 23.29 82.45 77.49 10.94 85.33 30.68 92.0
Mar 2017 64.76 64.76 82.36 25.01 81.40 77.72 9.16 83.59 33.46 -
Yield g/t Jun 2017 1.77 1.40 2.79 0.22 1.97 2.78 0.07 3.20 0.42 13.24
Mar 2017 1.36 1.36 2.71 0.29 1.97 2.78 0.06 3.09 0.60 -
PGM production3 4Eoz - 2Eoz Jun 2017 397,721 303,996 278,032 25,964 58,513 30,904 4,570 188,615 21,394 93,725
Mar 2017 286,716 286,716 252,737 33,979 56,106 29,975 4,328 166,656 29,651 -
Price and costs4
Average PGM basket price5 R/4Eoz - R/2Eoz Jun 2017 11,726 11,893 11,893 11,894 12,000 12,071 12,106 11,859 11,849 11,242
Mar 2017 12,109 12,109 12,198 11,525 12,062 12,085 12,028 12,243 11,451 -
US$/4Eoz Jun 2017 888 901 901 901 909 914 917 898 898 850
Mar 2017 917 917 923 872 913 915 911 927 867 -
Operating cost6 R/t Jun 2017 479 410 870 65 628 993 15 992 129 2,491
Mar 2017 459 459 1,040 51 659 798 13 1,241 103 -
US$/t Jun 2017 36 31 66 5 48 75 1 75 10 190
Mar 2017 35 35 79 4 50 60 1 94 8 -
Operating margin % Jun 2017 16 9 9 14 9 18 24 9 12 38
Mar 2017 8 8 2 52 12 31 35 (2) 54 -
Total cash cost(7) R/4Eoz - R/2Eoz Jun 2017 8,590 9,533 9,485 11,562 6,871 9,604 5,566
Mar 2017 11,026 11,026 10,166 9,598 6,470 11,371 -
US$/4Eoz - US$/2Eoz Jun 2017 651 722 - - 719 876 521 728 425
Mar 2017 835 835 - - 770 727 490 861 -
All-in sustaining cost(8) R/4Eoz - R/2Eoz Jun 2017 9,636 10,152 10,176 9,465 6,740 10,219 8,134
Mar 2017 10,590 10,590 10,443 7,797 6,839 10,714 -
US$/4Eoz - US$/2Eoz Jun 2017 730 769 - - 771 717 511 774 622
Mar 2017 802 802 - - 791 590 518 811 -
All-in sustaining cost
margin9(%) Jun 2017 (3) (7) - 17 17 (8) 9
Mar 2017 13 13 13 35 43 10 -
Capital expenditure
Ore reserve development Rm Jun 2017 348.1 233.6 233.6 - - - - 233.6 - 114.5
Mar 2017 - - - - - - - - - -
Sustaining capital Jun 2017 262.2 215.5 210.0 5.5 55.2 49.3 3.8 105.5 1.7 46.7
Mar 2017 175.5 175.5 173.9 1.6 23.7 55.3 1.6 94.9 - -
Corporate and projects Jun 2017 168.5 - - - - - - - - 168.5
Mar 2017 - - - - - - - - - -
Total capital expenditure Rm Jun 2017 778.8 449.1 443.6 5.5 55.2 49.3 3.8 339.1 1.7 329.7
Mar 2017 175.5 175.5 173.9 1.6 23.7 55.3 1.6 94.9 - -
US$m Jun 2017 59.0 34.0 33.6 0.4 4.2 3.7 0.3 25.7 0.1 25.0
Mar 2017 13.3 13.3 13.2 0.1 1.8 4.2 0.1 7.2 - -
Average exchange rates for the quarters ended 30 June 2017 and 31 March 2017 were R13.20/US$ and R13.21/US$, respectively.
Figures may not add as they are rounded independently.
(1) The US PGM operations' results for the quarter ended 30 June 2017 include Stillwater for two months since acquisition. Stillwater's production is converted to metric tonnes, and unit costs
are based on the translated average rand values for the six months to 30 June 2017. Stillwater's production is converted to metric tonnes and kilograms. The income and expenses are
translated at the average exchange rate for the two months ended 30 June 2017.
(2) In addition to Stillwater's on-mine underground production, the operation treats various recycling material which is excluded from the underground statistics shown above and is detailed
in the PGM recycling table below.
(3) Production per product - see prill split in the table below.
(4) The Group and total SA PGM operations' unit cost benchmarks exclude the financial results of Mimosa, which is equity accounted and excluded from net operating profit.
(5) PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment.
(6) Operating costs are all mining related costs calculated as costs of sales before amortisation and depreciation.
(7) Total cash cost is calculated in accordance with the Gold Institution industry standard as costs of sales as recorded in profit or loss, less amortisation and depreciation and off-site (i.e.
central) G&A expenses (including head office costs) plus royalties and production taxes. Total cash costs per 4E/2E ounce is defined as the average cost of producing a 4E/2E ounce,
calculated by dividing the total cash cost in a period by the 4E/2E PGM produced over the same period.
(8) All-in sustaining cost is defined as prodction costs plus all costs relating to sustaining current production and sustaining capital expenditure, and includes (but not limited to) operating
cost, share-based payments, royalties, rehabilitation costs and sustaining capital expenditure, and excludes non-4E/2E production.
Mining - Prill split excluding Recycling operations
GROUP SA REGION US REGION
Jun 2017 Jun 2017 Mar 2017 Jun 2017
4Eoz % 4Eoz % 4Eoz % 2Eoz %
Platinum 198,230 50% 176,970 58% 168,080 59% 21,260 23%
Palladium 167,244 42% 94,779 31% 88,654 31% 72,465 77%
Rhodium 29,022 7% 29,022 10% 20,006 7% - 0%
Gold 3,225 1% 3,225 1% 9,976 3% - 0%
PGM production 397,721 100% 303,996 100% 286,716 100% 93,725 100%
Ruthenium 39,490 39,490 37,642 -
Iridium 9,136 9,136 8,780 -
Total 446,347 352,622 333,138 93,725
Recycling Operation
US REGION
Unit Jun 2017
Average tons of catalyst fed/day Tonne 25.2
Total tons processed Tonne 1,541
Tolled tons Tonne 232
Purchased tons Tonne 1,309
PGM ounces fed Troy oz 126,400
PGM ounces sold Troy oz 94,400
PGM tolled ounces returned Troy oz 28,800
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.
SA gold operations
Six months ended
Quarter ended Jun 2017 Mar 2017 Jun 2017
Carbon Carbon Carbon
Reef leader Main VCR leader Main VCR leader Main VCR
Driefontein Unit
Advanced (m) 1,546 1,098 937 1,309 844 802 2,855 1,942 1,740
Advanced on reef (m) 211 326 183 165 255 151 376 581 334
Channel width (cm) 84 88 76 63 69 94 75 80 84
Average value (g/t) 18.1 6.0 21.4 16.6 9.5 34.5 17.5 7.3 28.0
(cm.g/t) 1,514 527 1636 1,049 660 3242 1,309 585 2,362
Six months ended
Quarter ended Jun 2017 Mar 2017 Jun 2017
Reef Cobble Kloof Main Libanon VCR Cobble Kloof Main Libanon VCR Cobble Kloof Main Libanon VCR
Kloof Unit
Advanced (m) 9 1,104 546 144 1,833 - 779 441 219 1,816 9 1,883 987 362 3,649
Advanced on reef (m) 108 100 63 305 167 42 62 243 275 142 125 548
Channel width (cm) 150 56 184 111 169 36 138 91 161 50 162 102
Average value (g/t) 9.3 14.0 3.5 22.9 5.6 23.4 5.9 18.1 7.0 16.0 4.5 21.0
(cm.g/t) 1,395 785 644 2,538 945 834 816 1,656 1,122 800 730 2,147
Six months ended
Quarter ended Jun 2017 Mar 2017 Jun 2017
Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Beatrix Unit
Advanced (m) 4,143 417 3,698 476 7,841 894
Advanced on reef (m) 835 137 806 60 1,641 196
Channel width (cm) 162 129 156 90 160 116
Average value (g/t) 6.8 9.4 5.7 22.7 6.2 12.6
(cm.g/t) 1,098 1,212 889 2,034 995 1,462
Six months ended
Quarter ended Jun 2017 Mar 2017 Jun 2017
Elsburgs Elsburgs Elsburgs Elsburgs
Reef VCR Reefs Massives Kimberley Reefs VCR Elsburgs Reefs Massives Kimberley Reefs VCR Elsburgs Reefs Massives Kimberley Reefs
Cooke Unit
Advanced (m) 106 457 - 186 145 717 - 177 250 1,173 - 363
Advanced on reef (m) 39 122 - 34 59 139 - 38 98 260 - 73
Channel width (cm) 113 111 - 161 44 116 - 129 71 114 - 143
Average value (g/t) 8.5 6.7 - 3.6 8.5 8.4 - 4.9 8.5 7.6 - 4.2
(cm.g/t) 959 745 - 578 373 974 - 631 604 867 - 606
Six months ended
Quarter ended Jun 2017 Mar 2017 Jun 2017
Reef Kimberley Kimberley Kimberley
Reefs Reefs Reefs
Burnstone Unit
Advanced (m) 2,338 - 2,338
Advanced on reef (m) 250 - 250
Channel width (cm) 61 - 61
Average value (g/t) 6.7 - 6.7
(cm.g/t) 408 - 408
SA PGM operations
Six months ended
Quarter ended Jun 2017 Mar 2017 Jun 2017
Reef Kopaneng Simunye Bambanani Kwezi K6 Kopaneng Simunye Bambanani Kwezi K6 Kopaneng Simunye Bambanani Kwezi K6
Kroondal Unit
Advanced (m) 834 660 656 901 797 323 559 737 1,118 682 1,158 1,218 1,392 2,020 1,480
Advanced on reef (m) 636 594 495 550 705 221 559 558 917 682 857 1,153 1,052 1,467 1,387
Channel width (cm) 152 184 139 68 177 131 209 111 92 196 147 196 124 81 186
Height (cm) 233 247 231 239 237 255 253 227 237 247 239 250 229 238 242
Average value (g/t) 1.9 2.3 1.9 1.6 2.3 1.5 2.5 2.0 2.1 2.5 1.8 2.4 2.0 1.9 2.4
(cm.g/t) 449 573 442 376 545 390 635 453 494 607 437 603 448 441 574
Six months ended
Quarter ended Jun 2017 Mar 2017 Jun 2017
Reef Bathopele Thembelani Khuseleka Siphumelele Bathopele Thembelani Khuseleka Siphumelele Bathopele Thembelani Khuseleka Siphumelele
Rustenburg Unit
Advanced (m) 464 1,628 1,785 1,045 334 1,369 1,178 1,113 798 2,997 2,962 2,158
Advanced on reef (m) 464 666 493 335 334 611 306 270 798 1,277 798 605
Height (cm) 199 118 116 118 198 117 116 117 199 118 116 118
Average value (g/t) 1.8 1.7 2.1 2.0 2.6 1.9 2.1 1.9 2.2 1.8 2.1 2.0
(cm.g/t) 354 203 249 242 511 218 248 225 433 211 248 233
ADMINISTRATION AND CORPORATE INFORMATION
SIBANYE GOLD LIMITED DIRECTORS AMERICAN DEPOSITORY
Trading as SIBANYE-STILLWATER Sello Moloko1 (Chairman) RECEIPTS TRANSFER AGENT
Incorporated in the Republic of South Africa Neal Froneman (CEO) BNY Mellon Shareowner Services
Registration number 2002/031431/06 Charl Keyter (CFO) PO Box 358516
Share code: SGL Savannah Danson(1) Pittsburgh
Issuer code: SGL Robert Chan(2) PA15252-8516
ISIN: ZAE E000173951 Timothy Cumming(1) US toll-free: +1 888 269 2377
Barry Davison(1) Tel: +1 201 680 6825
LISTINGS Rick Menell(1) Email: shrrelations@bnymellon.com
JSE: SGL Nkosemntu Nika(1)
NYSE: SBGL Keith Rayner(1) Tatyana Vesselovskaya
Susan van der Merwe(1) Relationship Manager
WEBSITE Jerry Vilakazi(1) BNY Mellon
www.sibanyestillwater.com Jiyu Yuan(2) Depositary Receipts
(1)Independent non-executive Direct Line: +1 212 815 2867
(2)Non-independent non-executive Mobile: +1 203 609 5159
REGISTERED OFFICE Fax: +1 212 571 3050
Libanon Business Park Email: tatyana.vesselovskaya@bnymellon.com
1 Hospital Street (Off Cedar Ave) JSE SPONSOR
Libanon JP Morgan Equities South Africa Proprietary
Westonaria 1780 Limited
South Africa (Registration number : 1995/011815/07) TRANSFER SECRETARIES
1 Fricker Road SOUTH AFRICA
Illovo Computershare Investor Services Proprietary Limited
Private Bag X5 Johannesburg 2196 Rosebank Towers
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South Africa Rosebank 2196
Tel: +27 11 278 9600
Fax: +27 11 278 9863 Private Bag X9936
Sandton 2196 PO Box 61051
South Africa Marshalltown 2107
INVESTOR ENQUIRIES South Africa
James Wellsted Tel: +27 11 370 5000
Senior Vice President: OFFICE OF THE UNITED KINGDOM Fax: +27 11 688 5248
Investor Relations SECRETARIES LONDON
Tel: +27 83 453 4014 St James's Corporate Services Limited
+27 11 278 9656 Suite 31 TRANSFER SECRETARIES
Email: james.wellsted@sibanyestillwater.com Second Floor UNITED KINGDOM
or ir@sibanyestillwater.com 107 Cheapside Capita Asset Services
London EC2V 6DN The Registry
United Kingdom 34 Beckenham Road
Tel: +44 20 7796 8644 Beckenham
Fax: +44 20 7796 8645 Kent BR3 4TU
England
CORPORATE SECRETARY Tel:0871 664 0300
Cain Farrel (calls cost 10p a minute plus network extras, lines are
Tel: +27 10 001 1122 open 8.30am - 5pm Mon-Fri) or
Fax: +27 11 278 9863 +44 20 8639 3399 (from overseas)
Email: cain.farrel@sibanyestillwater.com AUDITORS Fax: +44 20 8658 3430
KPMG Inc. Email: ssd@capitaregistrars.com
KPMG Crescent
85 Empire Road
Parktown 2193
Johannesburg
South Africa
Tel: +27 11 647 7111
FORWARD-LOOKING STATEMENTS
This announcement includes "forward-looking statements" within the meaning of the "safe harbour" 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", "forecast", "expect",
"potential", "intend", "estimate", "anticipate", "can" and other similar expressions that predict or indicate future events or trends or that are not
statements of historical matters. The forward-looking statements set out in this announcement involve a number of known and unknown risks,
uncertainties and other factors, many of which are difficult to predict and generally beyond the control of Sibanye-Stillwater, that could cause
Sibanye-Stillwater's actual results and outcomes to be materially different from historical results or from any future results expressed or implied by such
forward-looking statements. These forward-looking statements speak only as of the date of this announcement. Sibanye-Stillwater 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
announcement or to reflect the occurrence of unanticipated events, save as required by applicable law.
Date: 30/08/2017 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.
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