Wrap Text
Operating update for the quarter ended 30 September 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 update
For the quarter ended 30 September 2017
WESTONARIA, 26 October 2017: Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater or the Group) (JSE: SGL & NYSE:
SBGL) is pleased to provide an operating update for the quarter ended 30 September 2017. Detailed financial and operating results
are provided on a six-monthly basis.
SALIENT FEATURES FOR THE QUARTER ENDED 30 SEPTEMBER 2017
- Group operating profit of R2,859 million (US$217 million) was 41% higher quarter-on-quarter and 5% higher year-on-year
- SA gold production of 11,576kg (372,177oz) 4% higher than for June 2017 quarter
- SA PGM production increased by 1% to 306,184 4Eoz - record quarterly production from the Kroondal Operations
- First production from the Blitz project, three months ahead of schedule
- Stillwater Bridge Facility refinance completed during the quarter
US dollar SA rand
Quarter ended Quarter ended
Sep 2016 Jun 2017 Sep 2017 KEY STATISTICS Sep 2017 Jun 2017 Sep 2016
SOUTHERN AFRICA (SA) REGION
Gold operations
382.5 358.5 372.2 000'oz Gold produced kg 11,576 11,152 11,897
1,322 1,249 1,280 US$/oz Average gold price R/kg 542,407 530,111 597,705
179.5 104.9 114.3 US$m Operating profit Rm 1,506.9 1,386.0 2,530.5
36 23 24 % Operating margin % 24 23 36
1,062 1,125 1,150 US$/oz All-in sustaining cost(1) R/kg 487,068 477,600 479,785
Platinum Group Metals (PGM) operations
94,791 303,996 306,184 oz 4E PGM(2) production kg 9,523 9,455 2,948
901 901 953 US$/4Eoz Average basket price R/4Eoz 12,551 11,893 12,726
12.8 19.9 42.6 US$m Operating profit Rm 562.2 262.6 189.7
25 9 16 % Operating margin % 16 9 25
703 769 777 US$/4Eoz All-in sustaining cost(1) R/4Eoz 10,229 10,152 9,886
UNITED STATES (US) REGION
Platinum Group Metals (PGM) operations(3)
- 93,725 135,585 oz 2E PGM(2) production kg 4,217 2,915 -
- 850 914 US$/2Eoz Average basket price R/2Eoz 12,047 11,242 -
- 28.3 59.9 US$m Operating profit Rm 789.6 374.0 -
- 38 42 % Operating margin % 42 38 -
- 622 695 US$/2Eoz All-in sustaining cost(1) R/2Eoz 9,162 8,134 -
GROUP
192.3 153.1 216.8 US$m Operating profit Rm 2,858.7 2,022.6 2,720.2
14.06 13.20 13.18 R/US$ Average exchange rate
(1) 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.
(2) Platinum Group Metals (PGM), of which 4E represents platinum, palladium, rhodium and gold, and 2E represents platinum and palladium. Mined production
excluding recycled production.
(3) Stillwater's production is converted to metric tonnes and kilograms. The income and expenses are translated into SA rand.
Stock data for the quarter ended 30 September 2017 JSE Limited - (SGL)
Number of shares in issue Price range per ordinary share R14.75 to R21.89
- at 30 September 2017 2,126,126,173 Average daily volume 9,240,630
- weighted average 2,125,921,577 NYSE - (SBGL); one ADR represents four ordinary shares
Free Float 80% Price range per ADR US$4.30 to US$6.57
Bloomberg/Reuters SGLS/SGLJ.J Average daily volume 3,056,891
OVERVIEW AND UPDATE FOR THE QUARTER ENDED 30 SEPTEMBER 2017 COMPARED WITH THE QUARTER ENDED 30 SEPTEMBER 2016
The US PGM operations were incorporated for a full quarter for the first time during the September 2017 quarter. The strategic significance of
this was marked by the rebranding of the Group as Sibanye-Stillwater.
The Group operating results for the September 2017 quarter reflect continued improvements during the year, underpinned by
higher commodity prices and a more positive commodity price outlook. Group operating profit of R2,859 million (US$217 million) is
41% higher compared to the June 2017 quarter and 5% higher compared to September 2016 quarter.
Underperforming gold operations are being addressed and the restructuring process in terms of section 189A of the Labour
Relations Act, 66 of 1995 (S189) is progressing well. The SA PGM operations continue to deliver strong operational results, and the
realisation of substantial cost synergies earlier than expected, has averted the need for significant rationalisation of the production
footprint. The integration of the US PGM operations continues to proceeding smoothly, with first production from the Blitz Project
realised three months ahead of schedule.
An increasingly supportive environment for commodities has resulted in continued gains in precious metals prices during the
September 2017 quarter, with the average prices received increasing across the board. Despite a relatively flat rand:dollar
exchange rate, the average rand gold price received of R542,407/kg (US$1,280/oz) was 4% higher than for the six months ended
30 June 2017 (H1 2017) and the 4E PGM basket price was 5% higher at R12,551/4Eoz (US$953/4Eoz). The 2E PGM basket price
received by the US PGM operations was 8% higher than the average for May and June 2017 at US$914/oz. The rising commodity
price trend has continued into the December 2017 quarter, implying a strong end to the year.
The US$450 million convertible bond which was issued, on favourable terms during the September 2017 quarter, marked the
successful conclusion of refinancing of the US$2.65 billion bridge facility raised for the acquisition of Stillwater. This followed the
c.US$1.0 billion rights offering and c.US$1.05 billion corporate bonds, both of which were concluded in June 2017.
Relative to benchmarks for transaction of this type, the 1.875% per annum coupon was competitively priced and well below the
Group's average borrowing costs, with the 35% conversion premium at the top end of the anticipated range. The Sibanye-
Stillwater convertible bond is among the lowest yield convertible bonds issued in the EMEA universe in the past three years and is
also one of the lowest yield coupon achieved by a mining issuer since 2013. Recent share price volatility associated with these refinancing
steps has now moderated and with a more certain outlook, the Sibanye-Stillwater share price has begun to recover off a low base.
The Group's focus is now firmly on optimising the operations in order to reduce its financial leverage from a net debt to earnings
before interest, taxes, depreciation and amortisation (ND:EBITDA) level of 2.6:1 at 30 June 2017, to targeted levels of 1.0:1 within
two to four years. Given the successful integration of the SA and US PGM operations, ongoing operational restructuring and an
improved price outlook for the precious metals in general, it appears unlikely that Group leverage will approach anywhere close to
covenant limits of 3.5:1 ND:EBITDA.
SAFETY
Quarter-on-quarter the SA region serious injury frequency rate, lost day injury frequency rate and total injury frequency rate have
all improved significantly. We believe that our enhanced efforts and our safe behaviour focus will assist further improvements in the
fourth quarter 2017.
Regrettably, there were, four fatal accidents during the September 2017 quarter at the SA region gold operations and one at the
SA region PGM operations. Sibanye-Stillwater management and the board express their sincere condolences to the family and
colleagues of the deceased employees: Nkosinathi Marumo, Thandisile Deku, Puseletso Molebogeng Mashego, Geraldo Julio
Sitoe, and Sibongile Ganithuli. Management remains determined and committed to its zero harm policy.
Sibanye-Stillwater's US PGM operations remain a benchmark safety performer globally, with a continued focus on safe and quality
mining. Year to date, the Serious Injury Frequency Rate was approximately 1.8 per million hours, a significant improvement on
2016's 2.8 per million hours.
OPERATING REVIEW
SA REGION
SA gold operations
The SA gold operations delivered an improved operational performance in the September 2017 quarter, with gold production of
11,576kg (372,200oz) 4% higher than for the June 2017 quarter. This was a notable performance considering the S189 processes
affecting the Cooke and Beatrix West operations during the period. Compared to the September 2016 quarter, gold production
declined by only 3% (321kg or 10,320oz), primarily due to the suspension of underground operations at the Cooke 4 mine toward the
end of 2016, which resulted in 436kg (14,017oz) less production year-on-year. Gold production from surface sources was also 376kg
(12,087oz) lower year-on-year, reflecting a decline in available, high grade surface reserves.
The average dollar gold price received for the quarter ended 30 September 2017 of US$1,280/oz, was 3% lower than for the
comparable period in 2016. In addition, a 6% appreciation of the rand relative to the US dollar, from an average of R14.06/US$ to
R13.18/US$, resulted in the average rand gold price received declining by 9% from R597,705/kg to R542,407/kg. The net result of the
lower gold price and slightly lower gold production was a 12% decrease in revenue from R7,111 million to R6,279 million.
Operating cost increased by approximately 4% year-on-year to R4,772 million (US$362 million). Increases in Total cash cost (TCC)
and All-in sustaining cost (AISC) were well below inflation at 1% and 2% respectively compared to the September 2016 quarter, to
R401,693/kg (US$948/oz) and R487,068/kg (US$1,150/oz).
Operating profit for the September 2017 quarter of R1,507 million, was 8% higher than for the June 2017 quarter as a result of the
higher rand gold price, increased production and good operating cost control. The 9% decline in the average rand gold price
received year-on-year, resulted in operating profit declining by 40% relative to the comparable period in 2016.
Underground production from the Kloof operations increased by 14% to 4,137kg (133,000oz) due to higher underground grades
and mining volumes than for the comparable period in 2016. Surface production increasing by 8% to 390kg (12,500oz) due to a
36% increase in throughput resulting from the processing of Venterspost surface material at the Ezulwini plant, following the closure
of Cooke 4.
Underground production of 3,306kg (106,300oz) from the Driefontein operations was 5% lower year-on-year, due to an increase in
lower grade development material processed with underground ore. Gold production from surface sources decreased by 20% to
438kg (14,100oz) due to the depletion of higher grade surface reserves.
At the Beatrix operations, underground gold production was relatively stable at 2,376kg (76,400oz). Gold production from surface
sources decreased by 82% to 21kg (700oz) due to reduced throughput resulting from depletion of available surface reserves.
As a result of the closure of Cooke 4 in 2016 and disruptions relating to the S189 process, underground production from the Cooke
operations declined by 37% year-on-year to 710kg (22,800oz). Partial depletion of surface resources resulted in an 11% or 198kg (6,400oz)
reduction in surface production.
Conclusion of the S189 consultation process relating to the Cooke and Beatrix West operations, which began on 3 August 2017 is
expected at the end of October 2017.
SA PGM operations
The SA PGM operations reported another solid operational performance for the September 2017 quarter, with Kroondal delivering
the highest 4E PGM production in its history. Attributable 4E PGM production from the SA PGM operations increased by 1% to
306,1844Eoz for the September 2017 quarter, compared to the June 2017 quarter, reflecting the continued optimisation of these
operations and the benefits of the revised regional organisational structure implemented during the June 2017 quarter.
The average 4E PGM basket price was 6% higher than for the June 2017 quarter at R12,551/4Eoz (US$953/4Eoz), primarily due to
continued increases in palladium and rhodium prices. Operating costs of R3,029 million were 15% higher than for the June 2017
quarter, due to wages increases, higher winter electricity tariffs and various accounting adjustments. Normalising operating costs
for winter tariffs and accounting adjustments, results in a significantly lower quarter-on-quarter cost increase of approximately 3%.
The SA PGM operations recorded a R562 million (US$42.6 million) operating profit for the September 2017 quarter, at an average
16% operating margin. This is double the operating margin achieved in the June 2017 quarter. An additional attributable, R94
million (US$7 million) operating profit from Mimosa is not included in reported Group operating profit, but is separately equity
accounted under sundry items.
AISC (which includes sustaining capital expenditure and royalties, net of by-product credits, per ounce of PGM produced) for the
SA PGM operations increased by 1% compared to the June 2017 quarter to R10,229/4Eoz (US$777/4Eoz). With further cost and
operational synergies expected before year end, these operations are likely to contribute positively to Group profits, which,
considering the relatively short period these operations have been under Sibanye-Stillwater management control, is a positive
outcome and reflects the benefits accruing from operational consolidation.
Realised metallurgical chrome prices improved from US$140/tonne in for the June 2017 quarter, to US$175/tonne at for the
September 2017 quarter.
The Rustenburg Operations delivered another robust operational performance during the September 2017 quarter. 4E PGM
production of 207,246oz was flat quarter-on-quarter and 4% higher than the comparable period in 2016. AISC of R10,317/4Eoz
(US$782/4Eoz) were similar to the June 2017 quarter, but have improved significantly since the acquisition of these assets.
Kroondal, Mimosa and Platinum Mile reported attributable 4E PGM production of 98,938oz for the quarter ended 30 September
2017, with Kroondal delivering another record quarterly performance in terms of tonnes processed and ounces produced. Cost
control across these operations was good, with respective AISC of R10,188/4Eoz (US$773/4Eoz), R8,559/4Eoz (US$650/4Eoz) and
R7,081/4Eoz (US$537/4Eoz), below full-year guidance.
The Group recently concluded a review of the SA PGM operations, as announced on 16 October 2017. As a result of the continued
strong operational performance, and the early realisation of significantly higher than anticipated synergies, the possible
restructuring of the conventional shafts is no longer necessary.
US REGION
US PGM operations
The US PGM operations, comprising the Stillwater Mine (including the Blitz project), East Boulder Mine, and Columbus Metallurgical
Complex (the smelter and base metals refinery and the recycling operation) were incorporated into the Sibanye-Stillwater group
effective from 4 May 2017.
The US PGM operations reported mined 2E PGM production of 135,585 oz at an AISC of US$695/2Eoz for the September 2017
quarter, the first full quarter that they have been incorporated in the Sibanye-Stillwater results. Capital expenditure of US$51 million
included US$26 million growth capital on the Blitz project.
The Blitz project commenced with first production on 29 September 2017, following the completion of a secondary escape-way
system, which was three-months ahead of forecast. Approximately US$166 million of the US$260 million project capital
expenditure through to the end of 2021, has been spent to date. Blitz is forecast to build up to full production of approximately
300,000oz per annum 2E PGMs by late 2021.
Notably, due to the 33% increase in the palladium price in 2017 until the end of the September 2017 quarter, the average 2E PGM
basket price has risen substantially. The average 2E PGM basket price received for the September 2017 quarter of US$914/2Eoz
was US$220/2Eoz or 32% higher than the average basket price received in 2016.
Recycling volumes remained consistent, averaging approximately 23.3 tonnes of feed material per day. The recycling operation
contributed US$4 million operating profit out of total operating profit of US$60 million for the September 2017 quarter from the US
region as a whole.
OUTLOOK
The solid September 2017 quarter operational performance is expected to continue in the December 2017 quarter, underpinning a
positive outlook for the Group for the rest of the year. Precious metals prices remain supportive and if maintained, should result
in the Group ending the year on a significantly firmer financial footing, with improved cash flow and balance sheet leverage
compared to the first half of the year.
Production from the SA gold operations for the year ending 31 December 2017 is likely to be at the upper limit of previous
guidance of between 42,000kg and 43,000kg (1.35Moz and 1.38Moz). TCC is forecast 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 R3,200 million (US$237 million) . The dollar costs are based on an
average exchange rate of R13.50/US$.
Production from the SA PGM operations for the year ending 31 December 2017, is likely to be at the upper limit of previous
guidance of between 1,100,000 4Eoz and 1,150,000 4Eoz. TCC is forecast at between R10,400/4Eoz and R10,750/oz (US$770/4Eoz
and US$795/4Eoz) and AISC between R10,500/4Eoz and R11,000/4Eoz (US$775/4Eoz and US$815/4Eoz). Capital expenditure is
forecast to be R1,350 million (US$100 million).
Previous guidance for the US region remains unchanged with production forecast at between 350,000 2Eoz and 380,000 2Eoz for
the eight months ending 31 December 2017. AISC is forecast between US$620/2Eoz and US$650/2Eoz. Total capital expenditure
is expected to be approximately US$115 million for the eight months.
NEAL FRONEMAN
CHIEF EXECUTIVE OFFICER
SALIENT FEATURES AND COST BENCHMARKS FOR THE QUARTER ENDED 30 SEPTEMBER 2017, 30 JUNE 2017 AND 30 SEPTEMBER 2016
SA gold operations
Total SA gold operations Driefontein
Under- Under-
Total ground Surface ground Surface
Production
Tonnes milled/treated 000't Sep 2017 4,924 2,007 2,917 551 1,090
Jun 2017 5,007 1,979 3,028 536 997
Sep 2016 5,238 2,066 3,172 506 1,098
Yield g/t Sep 2017 2.35 5.25 0.36 6.00 0.40
Jun 2017 2.23 5.08 0.36 6.79 0.45
Sep 2016 2.27 5.15 0.39 6.85 0.50
Gold produced kg Sep 2017 11,576 10,529 1,047 3,306 438
Jun 2017 11,152 10,062 1,090 3,639 453
Sep 2016 11,897 10,649 1,248 3,468 550
000'oz Sep 2017 372.2 338.5 33.7 106.3 14.1
Jun 2017 358.5 323.5 35.0 117.0 14.6
Sep 2016 382.5 342.4 40.1 111.5 17.7
Gold sold kg Sep 2017 11,576 10,529 1,047 3,306 438
Jun 2017 11,152 10,062 1,090 3,639 453
Sep 2016 11,897 10,649 1,248 3,468 550
000'oz Sep 2017 372.2 338.5 33.7 106.3 14.1
Jun 2017 358.5 323.5 35.0 117.0 14.6
Sep 2016 382.5 342.4 40.1 111.5 17.7
Price and costs
Gold price received R/kg Sep 2017 542,407 540,251
Jun 2017 530,111 529,765
Sep 2016 597,705 597,760
US$/oz Sep 2017 1,280 1,275
Jun 2017 1,249 1,248
Sep 2016 1,322 1,323
Operating cost R/t Sep 2017 969 2,134 167 2,643 175
Jun 2017 904 2,052 154 2,563 188
Sep 2016 874 1,996 144 2,479 187
Operating margin % Sep 2017 24 25 14 19 19
Jun 2017 23 24 19 29 22
Sep 2016 36 35 40 39 38
Total cash cost(1) R/kg Sep 2017 401,693 420,700
Jun 2017 408,940 385,802
Sep 2016 398,319 378,372
US$/oz Sep 2017 948 993
Jun 2017 964 909
Sep 2016 881 837
All-in sustaining cost(2) R/kg Sep 2017 487,068 522,703
Jun 2017 477,600 453,397
Sep 2016 479,785 449,154
US$/oz Sep 2017 1,150 1,234
Jun 2017 1,125 1,068
Sep 2016 1,062 994
All-in cost R/kg Sep 2017 503,041 526,068
Jun 2017 495,839 456,109
Sep 2016 497,974 453,708
US$/oz Sep 2017 1,187 1,242
Jun 2017 1,168 1,075
Sep 2016 1,102 1,004
Capital expenditure
Total capital
expenditure(3) Rm Sep 2017 867.9 313.3
Jun 2017 827.6 274.5
Sep 2016 1,024.0 286.4
US$m Sep 2017 65.9 23.8
Jun 2017 62.5 20.7
Sep 2016 71.7 20.1
SA REGION
Kloof Beatrix Cooke
Under- Under- Under-
ground Surface ground Surface ground Surface
Production
Tonnes milled/treated 000't Sep 2017 574 933 725 78 157 816
Jun 2017 570 886 744 138 129 1,007
Sep 2016 555 687 743 359 262 1,028
Yield g/t Sep 2017 7.21 0.42 3.28 0.27 4.52 0.24
Jun 2017 6.38 0.47 2.93 0.25 4.71 0.19
Sep 2016 6.52 0.53 3.28 0.32 4.30 0.22
Gold produced kg Sep 2017 4,137 390 2,376 21 710 198
Jun 2017 3,635 415 2,181 35 607 187
Sep 2016 3,617 361 2,438 115 1,126 222
000'oz Sep 2017 133.0 12.5 76.4 0.7 22.8 6.4
Jun 2017 116.9 13.3 70.1 1.1 19.5 6.0
Sep 2016 116.3 11.6 78.4 3.7 36.2 7.1
Gold sold kg Sep 2017 4,137 390 2,376 21 710 198
Jun 2017 3,635 415 2,181 35 607 187
Sep 2016 3,617 361 2,438 115 1,126 222
000'oz Sep 2017 133.0 12.5 76.4 0.7 22.8 6.4
Jun 2017 116.9 13.3 70.1 1.1 19.5 6.0
Sep 2016 116.3 11.6 78.4 3.7 36.2 7.1
Price and costs
Gold price received R/kg Sep 2017 542,412 543,763 547,687
Jun 2017 530,914 529,829 528,463
Sep 2016 597,386 598,198 606,009
US$/oz Sep 2017 1,280 1,284 1,293
Jun 2017 1,251 1,248 1,245
Sep 2016 1,322 1,324 1,341
Operating cost R/t Sep 2017 2,337 186 1,418 141 2,917 138
Jun 2017 2,276 180 1,306 238 3,247 84
Sep 2016 2,207 164 1,226 131 2,802 89
Operating margin % Sep 2017 40 18 20 4 (18) (4)
Jun 2017 33 27 16 (77) (30) 14
Sep 2016 43 48 38 34 (10) 35
Total cash cost(1) R/kg Sep 2017 332,892 417,856 623,678
Jun 2017 365,580 452,031 628,967
Sep 2016 352,086 389,111 611,573
US$/oz Sep 2017 786 986 1,472
Jun 2017 861 1,065 1,482
Sep 2016 779 861 1,353
All-in sustaining cost(2) R/kg Sep 2017 419,395 498,748 646,035
Jun 2017 435,309 521,977 693,073
Sep 2016 441,956 462,162 676,632
US$/oz Sep 2017 990 1,177 1,525
Jun 2017 1,026 1,230 1,633
Sep 2016 978 1,023 1,497
All-in cost R/kg Sep 2017 425,160 499,458 646,035
Jun 2017 441,975 522,067 699,118
Sep 2016 452,690 462,201 690,134
US$/oz Sep 2017 1,004 1,179 1,525
Jun 2017 1,041 1,230 1,647
Sep 2016 1,002 1,023 1,527
Capital expenditure
Total capital
expenditure(3) Rm Sep 2017 328.8 132.8 -
Jun 2017 275.1 136.4 30.3
Sep 2016 365.3 162.8 70.0
US$m Sep 2017 25.0 10.1 -
Jun 2017 20.8 10.3 2.3
Sep 2016 25.2 11.5 4.9
Average exchange rates for the quarters ended 30 September 2017, 30 June 2017 and 30 September 2016 were R13.18/US$, R13.20/US$
and R14.06/US$, respectively. Figures may not add as they are rounded independently.
(1) Total cash cost is calculated 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. All-in sustaining cost per kilogram is calculated by dividing the All-in sustaining cost in a
period by the total gold sold over the same period.
(3) Corporate project expenditure for the quarters ended 30 September 2017, 30 June 2017 and 30 September 2016 amounted to R93.0 million
(US$7.0 million), R111.3 million (US$8.4 million), and R139.5 million (US$10.0 million), respectively. The majority of this expenditure
was on the Burnstone project.
SA and US PGM operations
GROUP SA REGION
Total SA and
US PGM
operations Total SA PGM operations(1) Kroondal
Under-
Attributable Total ground Surface Attributable
Production
Tonnes milled/treated 000't Sep 2017 7,223 6,914 3,209 3,705 978
Jun 2017 6,996 6,776 3,101 3,675 924
Sep 2016 3,112 3,112 1,242 1,870 897
Plant head grade g/t Sep 2017 2.56 2.01 3.26 0.92 2.39
Jun 2017 2.43 2.04 3.33 0.94 2.39
Sep 2016 1.49 1.49 2.79 0.63 2.51
Plant recoveries % Sep 2017 74.43 68.68 84.11 21.43 81.85
Jun 2017 72.65 68.56 83.77 23.29 82.45
Sep 2016 63.60 63.60 80.75 12.77 81.97
Yield g/t Sep 2017 1.90 1.38 2.74 0.20 1.96
Jun 2017 1.77 1.40 2.79 0.22 1.97
Sep 2016 0.95 0.95 2.25 0.08 2.06
PGM production(3) 4Eoz - 2Eoz Sep 2017 441,769 306,184 282,666 23,518 61,633
Jun 2017 397,721 303,996 278,032 25,964 58,513
Sep 2016 94,791 94,791 89,990 4,801 59,268
Price and costs(4)
Average PGM basket
price5 R/4Eoz - R/2Eoz Sep 2017 12,385 12,551 12,550 12,571 12,520
Jun 2017 11,726 11,893 11,893 11,894 12,000
Sep 2016 12,726 12,726 12,711 13,015 12,949
US$/4Eoz Sep 2017 940 953 953 954 950
Jun 2017 888 901 901 901 909
Sep 2016 901 901 899 925 914
Operating cost(6) R/t Sep 2017 590 462 974 68 626
Jun 2017 479 410 870 65 628
Sep 2016 290 290 703 16 625
US$/t Sep 2017 45 35 74 5 48
Jun 2017 36 31 66 5 48
Sep 2016 21 21 50 1 44
Operating margin % Sep 2017 24 16 16 8 16
Jun 2017 16 9 9 14 9
Sep 2016 25 25 24 39 23
Total cash cost(7) R/4Eoz - R/2Eoz Sep 2017 9,461 11,155 10,473
Jun 2017 8,590 9,533 9,485
Sep 2016 9,360 9,360 9,474
US$/4Eoz - US$/2Eoz Sep 2017 718 846 795
Jun 2017 651 722 719
Sep 2016 666 666 674
All-in sustaining cost(8) R/4Eoz - R/2Eoz Sep 2017 9,876 10,229 10,188
Jun 2017 9,636 10,152 10,176
Sep 2016 9,886 9,886 10,021
US$/4Eoz - US$/2Eoz Sep 2017 749 777 773
Jun 2017 730 769 771
Sep 2016 703 703 713
All-in cost R/4Eoz - R/2Eoz Sep 2017 10,778 10,229 10,188
Jun 2017 10,116 10,152 10,176
Sep 2016 9,886 9,886 10,021
US$/4Eoz - US$/2Eoz Sep 2017 818 777 773
Jun 2017 766 769 771
Sep 2016 703 703 713
Capital expenditure
Total capital Rm Sep 2017 923.9 256.5 252.7 3.8 40.6
expenditure Jun 2017 778.8 449.1 443.6 5.5 55.2
Sep 2016 87.5 87.5 87.2 0.3 41.5
US$m Sep 2017 70.0 19.5 19.2 0.3 3.1
Jun 2017 59.0 34.0 33.6 0.4 4.2
Sep 2016 6.2 6.2 6.2 - 2.9
US REGION
Mimosa Plat Mile Rustenburg Stillwater(1)
Under- Under-
Attributable Attributable Surface ground Surface ground(2)
Production
Tonnes milled/treated 000't 359 2,202 1,872 1,503 309
346 2,072 1,831 1,603 220
345 1,870 - - -
Plant head grade g/t 3.59 0.60 3.64 1.39 14.86
3.58 0.63 3.76 1.35 14.74
3.53 0.63 - - -
Plant recoveries % 78.19 11.70 86.00 27.57 91.0
77.49 10.94 85.33 30.68 92.0
78.50 12.77 - - -
Yield g/t 2.80 0.07 3.14 0.38 13.65
2.78 0.07 3.20 0.42 13.24
2.77 0.08 - - -
PGM production(3) 4Eoz - 2Eoz 32,334 4,971 188,699 18,547 135,585
30,904 4,570 188,615 21,394 93,725
30,722 4,801 - - -
Price and costs(4)
Average PGM basket
price5 R/4Eoz - R/2Eoz 12,650 12,666 12,560 12,545 12,047
12,071 12,106 11,859 11,849 11,242
12,252 13,015 - - -
US$/4Eoz 960 961 954 953 914
914 917 898 898 850
871 925 - - -
Operating cost(6) R/t 750 15 1,156 145 3,305
993 15 992 129 2,491
907 16 - - -
US$/t 57 1 88 11 251
75 1 75 10 190
64 1 - - -
Operating margin % 26 36 16 1 42
18 24 9 12 38
26 39 - - -
Total cash cost(7) R/4Eoz - R/2Eoz 8,653 6,860 11,461 6,038
11,562 6,871 9,604 5,566
11,256 7,955 - -
US$/4Eoz - US$/2Eoz 657 521 869 458
876 521 728 425
801 566 - -
All-in sustaining cost(8) R/4Eoz - R/2Eoz 8,559 7,081 10,317 9,162
9,465 6,740 10,219 8,134
10,614 8,226 - -
US$/4Eoz - US$/2Eoz 650 537 782 695
717 511 774 622
755 585 - -
All-in cost R/4Eoz - R/2Eoz 8,559 7,081 10,317 11,885
9,465 6,740 10,219 10,014
10,614 8,226 - -
US$/4Eoz - US$/2Eoz 650 537 782 902
717 511 774 765
755 585 - -
Capital expenditure
Total capital Rm 53.6 3.8 158.5 - 667.4
expenditure 49.3 3.8 339.1 1.7 329.7
45.7 0.3 - - -
US$m 4.1 0.3 12.0 - 50.5
3.7 0.3 25.7 0.1 25.0
3.3 - - - -
Average exchange rates for the quarters ended 30 September 2017, 30 June 2017 and 30 September 2016 were R13.18/US$, R13.20/US$ and
R14.06/US$, respectively.
Figures may not add as they are rounded independently.
(1) The SA PGM operations' results for the September 2016 quarter include the Rustenburg Operations for the two months since acquisition.
Stillwater's results for the June 2017 quarter are for two months since acquisition. Stillwater's production is converted to metric tonnes.
The income and expenses are translated into SA rand.
(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 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 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. All-in sustaining cost per 4E/2E ounce is calculated by dividing the All-in sustaining cost in a
period by the 4E/2E PGM produced over the same period.
Mining - Prill split excluding Recycling operations
GROUP SA REGION US REGION
Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended
Sep 2017 Sep 2017 June 2017 Sep 2016 Sep 2017 June 2017
4Eoz % 4Eoz % 4Eoz % 4Eoz % 2Eoz % 2Eoz %
Platinum 208,051 47% 177,108 58% 176,970 58% 52,480 55% 30,943 23% 21,260 23%
Palladium 200,818 45% 96,176 31% 94,779 31% 31,697 33% 104,642 77% 72,465 77%
Rhodium 25,875 6% 25,875 8% 29,022 10% 8,129 9% 0% - 0%
Gold 7,025 2% 7,025 2% 3,225 1% 2,485 3% 0% - 0%
PGM
production 441,769 100% 306,184 100% 303,996 100% 94,791 100% 135,585 100% 93,725 100%
Ruthenium 40,265 40,265 39,490 12,368 - -
Iridium 9,261 9,261 9,136 3,038 - -
Total 491,295 355,710 352,622 110,197 135,585 93,725
Recycling Operation
US REGION US REGION
Quarter ended Quarter ended
Unit Sep 20173 Jun 20173
Average tons of catalyst fed/dayTonne 23.0 25.2
Total tonnes processed Tonne 2,120 1,541
Tolled tonnes Tonne 359 232
Purchased tonnes Tonne 1,761 1,309
PGM ounces fed Troy oz 197,300 126,400
PGM ounces sold Troy oz 141,700 94,400
PGM tolled ounces returned Troy oz 34,600 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 operation
Nine months ended
Quarter ended Sep 2017 June 2017 Sep 2017
Carbon Carbon Carbon
Driefontein Reef Black Reef Main VCR Main VCR
leader leader Black Reefleader Main VCR
Total advanced (m) 12 1,925 1,009 1,126 1,546 1,098 937 12 4,780 2,951 2,865
Advanced on reef (m) 12 180 215 237 211 326 183 12 556 796 571
Channel width (cm) 13 55 75 89 84 88 76 13 68 79 86
Average grade (g/t) 2.3 29.5 7.0 36.6 18.1 6.0 21.4 2.3 20.7 7.2 31.7
Average value (cm.g/t) 30 1,620 528 3,260 1,514 527 1636 30 1,410 570 2,735
Nine months ended
Quarter ended Sep 2017 June 2017 Sep 2017
Kloof Reef Cobble Kloof Main Libanon VCR Cobble Kloof Main Libanon VCR Cobble Kloof Main Libanon VCR
Total advanced (m) 1,197 678 179 1,738 9 1,104 546 144 1,833 9 3,080 1,665 542 5,388
Advanced on reef (m) 242 159 57 403 108 100 63 305 - 517 301 182 951
Channel width (cm) 154 56 122 124 150 56 184 111 - 157 53 150 112
Average grade (g/t) 10.0 12.4 6.9 21.8 9.3 14.0 3.5 22.9 - 8.4 14.0 5.1 21.4
Average value (cm.g/t) 1,535 696 845 2,705 1,395 785 644 2,538 - 1,315 745 766 2,383
Nine months ended
Quarter ended Sep 2017 June 2017 Sep 2017
Beatrix Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Total advanced (m) 4,617 210 4,143 417 12,458 1,103
Advanced on reef (m) 1,156 98 835 137 2,797 295
Channel width (cm) 133 214 162 129 150 149
Average grade (g/t) 8.4 13.3 6.8 9.4 7.0 12.9
Average value (cm.g/t) 1,121 2,845 1,098 1,212 1,047 1,923
Nine months ended
Quarter ended Sep 2017 June 2017 Sep 2017
ElsburgsElsburgs Elsburgs Elsburgs
Cooke Reef VCR Kimberley Reefs VCR Elsburgs Reefs Kimberley Reefs VCR Elsburgs Reefs Kimberley Reefs
Reefs Massives Massives Massives
Total advanced (m) 11 61 106 457 - 186 250 1,185 424
Advanced on reef (m) - 55 39 122 - 34 98 260 127
Channel width (cm) - 144 113 111 - 161 71 114 143
Average grade (g/t) - 11.1 8.5 6.7 - 3.6 8.5 7.6 7.2
Average value (cm.g/t) - 1,599 959 745 - 578 604 867 1,033
Nine months ended
Quarter ended Sep 2017 June 2017 Sep 2017
Kimberley Kimberley Kimberley
Burnstone Reef
Reefs Reefs Reefs
Total advanced (m) 1,240 2,338 3,578
Advanced on reef (m) 102 250 352
Channel width (cm) 34 61 53
Average grade (g/t) 14.3 6.7 8.1
Average value (cm.g/t) 488 408 431
SA PGM operations
Nine months ended
Quarter ended Sep 2017 June 2017 Sep 2017
Kroondal Reef Kopaneng Simunye Bambanani Kwezi K6 Kopaneng Simunye Bambanani Kwezi K6 Kopaneng Simunye Bambanani Kwezi K6
Total advanced (m) 795 483 731 806 1,013 834 660 656 901 797 1,952 1,702 2,124 2,826 2,493
Advanced on reef (m) 653 283 662 460 630 636 594 495 550 705 1,510 1,436 1,715 1,926 2,018
Height (cm) 228 241 228 244 239 233 247 231 239 237 243 248 233 243 239
Average grade (g/t) 2.0 1.6 2.4 1.5 1.7 1.9 2.3 1.9 1.6 2.3 1.9 2.2 2.1 1.8 2.1
Average value (cm.g/t) 464 388 548 359 409 449 573 442 376 545 462 540 491 424 501
Nine months ended
Quarter ended Sep 2017 June 2017 Sep 2017
Bathopel Thembela Siphumelel Bathopel Thembela Siphumelel Bathopel Thembela Siphumelel
Rustenburg Reef e ni Khuseleka e e ni Khuseleka e e ni Khuseleka e
Total advanced (m) 436 1,614 2,524 1,087 464 1,628 1,785 1,045 1,234 4,611 5,487 3,245
Advanced on reef (m) 436 809 725 382 464 666 493 335 1,234 2,086 1,524 987
Height (cm) 203 117 116 118 199 118 116 118 199 118 116 117
Average grade (g/t) 1.5 2.1 2.1 2.4 1.8 1.7 2.1 2.0 2.2 1.8 2.1 2.0
Average value (cm.g/t) 305 240 240 278 354 203 249 242 433 211 248 233
US PGM operations
Five months ended
Quarter ended Sep 2017 June 2017 Sep 2017
Stillwater incl East Stillwater incl East Stillwater incl East
Stillwater(1) Reef Blitz Boulder Blitz Boulder Blitz Boulder
Primary development (off
reef) (m) 3,090 877 1,736 730 4,827 1,607
Secondary development (m) 1,588 1,181 1,310 567 2,898 1,748
(1)Stillwater's development data for the June 2017 quarter are for two months since acquisition.
ADMINISTRATION AND CORPORATE INFORMATION
SIBANYE GOLD LIMITED DIRECTORS AMERICAN DEPOSITORY
Trading as SIBANYE-STILLWATER Sello Moloko(1) (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 Timothy Cumming(1) PA15252-8516
ISIN: ZAE E000173951 Barry Davison(1) US toll-free: +1 888 269 2377
Rick Menell(1) Tel: +1 201 680 6825
LISTINGS Nkosemntu Nika(1) Email: shrrelations@bnymellon.com
JSE: SGL Keith Rayner(1)
NYSE: SBGL Susan van der Merwe(1) Tatyana Vesselovskaya
Jerry Vilakazi1 Relationship Manager
WEBSITE (1)Independent non-executive BNY Mellon
www.sibanyestillwater.com Depositary Receipts
JSE SPONSOR Direct Line: +1 212 815 2867
REGISTERED OFFICE JP Morgan Equities South Africa Proprietary Mobile: +1 203 609 5159
Libanon Business Park Limited Fax: +1 212 571 3050
1 Hospital Street (Off Cedar Ave) (Registration number : 1995/011815/07) Email: tatyana.vesselovskaya@bnymellon.com
Libanon 1 Fricker Road
Westonaria 1780 Illovo TRANSFER SECRETARIES
South Africa Johannesburg 2196 SOUTH AFRICA
South Africa Computershare Investor Services Proprietary Limited
Private Bag X5 Rosebank Towers
Westonaria 1780 Private Bag X9936 15 Biermann Avenue
South Africa Sandton 2196 Rosebank 2196
Tel: +27 11 278 9600 South Africa
Fax: +27 11 278 9863 PO Box 61051
OFFICE OF THE UNITED KINGDOM Marshalltown 2107
INVESTOR ENQUIRIES SECRETARIES LONDON South Africa
James Wellsted St James's Corporate Services Limited Tel: +27 11 370 5000
Senior Vice President: Suite 31 Fax: +27 11 688 5248
Investor Relations Second Floor
Tel: +27 10 493 6923 107 Cheapside TRANSFER SECRETARIES
+27 11 278 9656 London EC2V 6DN UNITED KINGDOM
Email: james.wellsted@sibanyestillwater.com United Kingdom Capita Asset Services
or ir@sibanyestillwater.com Tel: +44 20 7796 8644 The Registry
Fax: +44 20 7796 8645 34 Beckenham Road
CORPORATE SECRETARY Beckenham
Cain Farrel AUDITORS Kent BR3 4TU
Tel: +27 10 493 6921 KPMG Inc. England
Fax: +27 11 278 9863 KPMG Crescent Tel:0871 664 0300
Email: cain.farrel@sibanyestillwater.com 85 Empire Road (calls cost 10p a minute plus network extras, lines are
Parktown 2193 open 8.30am - 5pm Mon-Fri) or
Johannesburg +44 20 8639 3399 (from overseas)
South Africa Fax: +44 20 8658 3430
Tel: +27 11 647 7111 Email: ssd@capitaregistrars.com
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: 26/10/2017 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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