Wrap Text
Effective integration of Sibanye-Stillwater’s SA PGM operations prevents anticipated closures
Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)
Effective integration of Sibanye-Stillwater’s SA PGM operations prevents
anticipated closures
Westonaria, 16 October 2017: Sibanye-Stillwater has previously indicated
that approximately 200 000oz – 300 000oz 4E PGM production per annum could
be at risk, should some conventional shafts in the Rustenburg area remain
unprofitable, and that the Company would make a final decision on the
viability of these conventional business units post September 2017.
Sibanye-Stillwater is now pleased to advise that as a result of the
realisation of substantial synergies, post the successful integration of
Rustenburg and Aquarius into the larger Sibanye-Stillwater group, the
closure of these conventional business units has been averted.
The Southern African (SA) Region’s PGM operations have delivered solid
operational results in H1 2017, and this prompted an upward revision to
our 2017 production forecast and a downward revision to guided costs. In
addition, realisation of cost and operational synergies has exceeded
expectations and has been significantly ahead of initial forecasts.
As disclosed in our H1 2017 results, benefits of approximately R550 million
of the initially identified R800 million annual synergies, have already
been achieved, with forecast annualised benefits by the end of 2017 of
approximately R1 billion. This is significantly earlier than the three
year period we had initially guided to, to realise these benefits.
Group CEO, Neal Froneman commented: “I am very pleased with the outcome
of the review, which has been driven by the results of the efforts of our
colleagues in the Rustenburg region. While we anticipate further
opportunities to reduce costs and unlock operational synergies over time,
the SA PGM operations are now well positioned to benefit from firmer PGM
prices. I would also like to note the role that the Competition Commission
played in ensuring this outcome, by approving upfront, the initial and
very necessary restructuring of the operations, effectively saving many
thousands of jobs.”
Investor relations contact:
James Wellsted
Head of Investor Relations
+27 (0) 83 453 4014
Email: ir@sibanyestillwater.com
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
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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, including the statements related to expected
production volumes. 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.
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