Wrap Text
Operating and financial results for the six months and year ended 31 December 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 and year ended 31 December 2017
WESTONARIA, 22 February 2018: Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater or the Group) (JSE: SGL & NYSE:
SBGL) is pleased to report operating and financial results for the six months ended 31 December 2017, and reviewed condensed
consolidated preliminary financial statements for the year ended 31 December 2017.
SALIENT FEATURES FOR THE SIX MONTHS AND YEAR ENDED 31 DECEMBER 2017
- A significant year characterised by material growth and the evolution of the Group into a unique, international precious metals company
- Group adjusted EBITDA1 of R9,045 million (US$680 million) despite significantly lower rand gold price and gold production for the year
- SA Gold operations successfully restructured for sustainability
- 4E PGM production in SA increased to 1,194,348oz in 2017, with over R1 billion annual cost savings due to synergies realised
- Successful integration of Stillwater, with the Blitz project commissioned three months ahead of schedule
- Refinancing of US$2.65 billion Stillwater Bridge Facility successfully concluded
- Leverage improved from 2.7x at 30 June 2017 to 2.6x net debt to adjusted EBITDA� at 31 December 2017
US dollar SA rand
Year ended Six months ended Six months ended Year ended
Dec 2016 Dec 2017 Dec 2016 Jun 2017 Dec 2017 KEY STATISTICS Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
SOUTHERN AFRICA (SA) REGION
Gold operations
1,512.2 1,402.9 765.4 688.6 714.3 000'oz Gold produced kg 22,216 21,418 23,805 43,634 47,034
1,242 1,254 1,268 1,233 1,274 US$/oz Average gold price R/kg 549,064 523,303 569,535 536,378 586,319
675.8 398.8 334.5 170.8 228.0 US$m Adjusted EBITDA(1) Rm 3,052.5 2,256.0 4,673.5 5,308.5 9,920.1
36 23 35 20 25 % Adjusted EBITDA margin(1) % 25 20 35 23 36
954 1,128 1,005 1,143 1,114 US$/oz All-in sustaining cost(2) R/kg 480,010 485,441 451,352 482,693 450,152
PGM operations
420,763 1,194,348 327,990 590,712 603,636 oz 4E PGM 3 production kg 18,775 18,373 10,201 37,148 13,087
832 942 874 910 975 US$/4Eoz Average basket price R/4Eoz 13,066 12,006 12,204 12,534 12,209
23.8 119.8 20.7 35.2 84.6 US$m Adjusted EBITDA(1) Rm 1,128.4 465.6 289.2 1,594.0 350.3
9 12 9 8 16 % Adjusted EBITDA margin1 % 16 8 9 12 9
705 782 730 785 778 US$/4Eoz All-in sustaining cost(2) R/4Eoz 10,432 10,364 10,195 10,399 10,342
UNITED STATES (US) REGION
PGM operations(4)
376,356 93,725 282,631 oz 2E PGM(3) production kg 8,791 2,915 11,706
517,148 126,445 390,703 oz PGM recycling(4) kg 12,152 3,933 16,085
927 850 947 US$/2Eoz Average basket price R/2Eoz 12,699 11,242 12,330
161.0 27.9 133.1 US$m Adjusted EBITDA(1) Rm 1,774.5 368.1 2,142.6
23 19 25 % Adjusted EBITDA margin(1) % 25 19 23
651 622 660 US$/2Eoz All-in sustaining cost(2) R/2Eoz 8,899 8,134 8,707
GROUP
236.6 (333.2) 214.9 (363.8) 30.6 US$m Basic earnings Rm 366.3 (4,803.7) 3,140.3 (4,437.4) 3,473.3
170.9 (16.8) 98.5 (165.2) 148.4 US$m Headline earnings Rm 1,957.9 (2,181.8) 1,393.8 (223.9) 2,507.7
250.6 (36.0) 110.7 (75.9) 39.9 US$m Normalised earnings(5) Rm 522.2 (1,001.9) 1,526.1 (479.7) 3,678.1
14.68 13.31 13.97 13.21 13.41 R/US$ Average exchange rate
(1) The Group now reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the
debt covenant formula. For a reconciliation of profit/loss before royalties and tax to adjusted EBITDA, see note 11 of the financial statements. Adjusted EBITDA margin is calculated by dividing
adjusted EBITDA by revenue.
(2) See "salient features and cost benchmarks for the six months ended 31 December 2017, 30 June 2017 and 31 December 2016" for the definition of All-in sustaining cost.
(3) The Platinum Group Metals (PGM) production in the SA Region is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US Region is principally platinum
and palladium, referred to as 2E (2PGM).
(4) The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated into SA rand. In addition to the US PGM operations' underground
production, the operation treats recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM recycling represents
ounces fed to the furnace. The US operations represent eight months (from May 2017) since acquisition.
(5) Normalised earnings is earnings attributable to the owners of Sibanye-Stillwater excluding non-cash gains and losses, non-recurring items and share of results of equity-accounted investees.
For a reconciliation of profit/loss attributable to the owners of Sibanye-Stillwater to normalised earnings, see note 7 of the financial statements.
Stock data for the six months ended 31 December 2017 JSE Limited - (SGL)
Number of shares in issue Price range per ordinary share R14.15 to R21.89
- at 31 December 2017 2,168,721,220 Average daily volume 9,527,002
- weighted average 2,168,567,378 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 2,907,523
STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER OF SIBANYE-STILLWATER
It is with great pleasure that I am able to report positive operating and financial results throughout the group, to end the 2017
reporting period. 2017 was operationally and strategically a significant year for Sibanye-Stillwater, and one which, I am confident,
has uniquely positioned the Group to deliver significant, tangible value to all of its stakeholders, consistent with our vision and values.
SAFETY
The benefit of the revised safety strategy adopted in the Southern Africa (SA) Region in the latter half of 2016 and rolled out across
the operations during 2017, is evident in improvements in all the main safety indicators across the region for the six months ended
31 December 2017. Compared with the same period in 2016, the SA Region Serious Injury Frequency Rate (SIFR) improved by 14% to
3.59 per million hours with the Lost Day Injury Frequency Rate (LDIFR) improving by 13% to 5.76 per million hours. We have now restored
our leading position among both the gold and PGM South African peer companies as the benchmark performer on the majority of
safety indices in both the gold and PGM sectors.
2017 Comparative SA Gold Safety Performance
Company FIFR FIFR Ranking SIFR SIFR Ranking LDIFR LDIFR Ranking
Sibanye-Stillwater gold operations 0.09 1 4.12 1 6.33 1
Gold peer 1 0.11 2 5.00 3 10.08 3
Gold peer 2 0.15 3 4.18 2 7.07 2
2017 Comparative SA PGM Safety Performance
Company FIFR FIFR Ranking SIFR SIFR Ranking LDIFR LDIFR Ranking
Sibanye-Stillwater PGM operations 0.04 1 2.59 1 4.69 2
PGM peer 1 0.10 3 4.86 3 7.37 3
PGM peer 2 0.05 2 3.00 2 4.27 1
source: Industry working group
The safety improvements continued through the year, with the SA gold operations, in the December 2017 quarter, recording their
first fatality free quarter since March 2015. The SA PGM operations sadly experienced one fatality when Mr. Moagisi Selaotswe was
struck by a utility vehicle despite the proximity detection system that was in effect to provide warnings to the vehicle operator
and pedestrians.
Initially, the positive safety performance continued into 2018, with the entire SA region fatality free for the month of January 2018.
Sadly, four recent fatalities at our SA gold operations in February 2018, brought to an end a 3.8 million fatality free shift period at the
SA gold operations and 3.6 million fatality free shifts at the SA region as a whole. Safety incidents are of concern to all of us. We are
actively investigating what caused these incidents and will take necessary action to prevent them from occurring again. The board
and management of Sibanye-Stillwater extend their deepest condolences to the families, friends and colleagues of Ngobeni Solly
Dumisani (Special Team Leader at Kloof), Dube Chicco Elmon (Winch Operator at Kloof), Mating Matela (General Miner at
Driefontein) and Mncwazi Zanempi (Artisan Assistant at Driefontein). Our journey towards zero harm continues.
For the year, the US Region Total Recordable Injury Frequency Rate (TRIFR) (measured per million man hours) was a record low of
12.7, an improvement compared with the 2016 TRIFR of 12.9. The East Boulder mine was free from lost day and serious injuries for the
entire year and the US Region reported no contractor injuries for the entire year.
An incident at our Beatrix Operations in February 2018, following a severe storm which destroyed both the main and secondary
(backup) Eskom power lines supplying electricity to Beatrix, received significant media attention and was accompanied by negative
commentary from the unions. Without dwelling on the details of the incident, I would again like to reiterate that at no point were our
employees in danger and management was in total control of the situation throughout. All required safety systems were in place,
and although problems were experienced with some equipment due to the power surge emanating from the destruction of power
lines, alternative extraction through the adjacent mine shaft, where the winders were operable, was always possible. The successful
extraction of 955 employees without any notable injuries is testament to the professional and dedicated approach of Sibanye-
Stillwater management and I would like to again express my appreciation to the teams involved.
OPERATING AND STRATEGIC OVERVIEW
The strong operating and cost performance across the expanded Group in the second half of the year, reinforces the
appropriateness of the decision made to restructure the business regionally in order to ensure role clarity and sustainable operational
delivery. Both the SA and US Regions have developed effective strategies to sustain and improve operational and financial delivery,
with strong leadership teams in place to lead the strategic execution. The US Region has completed the process of establishing the
US Region executive team, with Heather McDowell joining as Vice President: Legal, Environmental and Government Affairs. We are
confident that the current organisational structure and operating model will ensure continued delivery.
Both the SA gold and PGM operations delivered annual production above guidance and costs below the guided range. The
cessation of mining at the loss-making Cooke operations, which was a primary reason for the year-on-year decline in gold
production, is expected to reduce the All-in sustaining cost (AISC) for the gold operations in 2018 by approximately R15,000/kg (in
2017 terms). Adjusted EBITDA for the SA gold operations for the year ended 31 December 2017, declined by 46% to R5.3 billion (US$399
million), due to a 7% decline in production to 43,634kg (1.4Moz) and a 9% decline in the average gold price to R536,378/kg
(US$1,254/oz).
The integration of the Rustenburg PGM operations has exceeded our expectations. The Rustenburg operations have consistently
delivered solid production and improved financial results, with approximately R1 billion in cost savings and synergies realised in the
first year of incorporation, well ahead of initial expectations of R800 million over three to four years. The SA PGM operations
contributed R1.6 billion (US$120 million) (18%) to Group adjusted EBITDA in 2017 on the back of effective cost management assisted
by improving PGM prices. This is a remarkable result from assets which, before being part of the Sibanye-Stillwater Group, had been
delivering significant and sustained losses for many years.
The acquisition of Stillwater was fortuitously timed with the palladium price rising by over 60% since the acquisition was concluded.
Subsequent to shareholders approving the acquisition in May 2017, the US$2.65 billion Stillwater Bridge Facility was successfully
refinanced by an oversubscribed US$1 billion rights issue, maiden US$1.05 billion corporate bonds and finally through a low cost,
US$450 million convertible instrument. The integration of the US PGM operations has also proceeded smoothly, with steady operating
results and the critical Blitz project commissioned three months ahead of plan. The US PGM operations contributed R2.1 billion
(US$161 million) (24%) to Group adjusted EBITDA during the eight months since acquisition. Notably, given the recent strength in the
rand, which has impacted on margins of all SA mining operations, this has provided welcome diversification and support the
impeccable timing of the acquisition.
A detailed, independent competent persons report (CPR) released in November 2017 yielded a value for Stillwater of
approximately US$2.73 billion, which is higher than the US$2.24 billion acquisition price (inclusive of the transaction fees
of US$40 million) and supports the rationale for the transaction. The CPR is available on the Sibanye-Stillwater website at
https://www.sibanyestillwater.com/investors/documents-circulars.
We have for some time clearly signalled the importance of becoming a "mine-to-market" producer in South Africa and our intent to
conclude a "fourth step" in our PGM strategy. The proposed acquisition of Lonmin, which was announced on 14 December 2017
will, if successful, complete that fourth strategic step. We are confident that this logical transaction will enable the realisation of
significant synergies, which will bring greater stability to both the Lonmin and Sibanye-Stillwater's SA PGM operations. The
fundamental outlook for PGMs continues to improve and we are confident that Sibanye-Stillwater is strongly positioned to deliver
significant value in the near term.
In addition to the PGM transactions announced during the year, the proposed transfer of certain gold surface assets on the
West Rand for a 38% shareholding in DRDGOLD Limited (DRDGOLD) and an option to acquire a majority stake, was announced.
Again, this logical transaction will enable us to realise immediate value from the West Rand Tailings Retreatment Project (WRTRP)
while also providing future optionality without the need to incur significant capital investment.
Sibanye-Stillwater maintains its prudent approach to capital management, with balance sheet deleveraging and preservation of
long term financial flexibility remaining key priorities. Net debt (excluding the Burnstone Debt and including the US$450 million convertible
derivative instrument) at 31 December 2017 was R23,176 million (US$1,875 million). There was a 7% reduction in net debt to
adjusted EBITDA to 2.6x, compared with 2.7x at 30 June 2017. The Group also has sufficient liquidity with committed unutilised debt
facilities of R3,653 million (US$296 million) at 31 December 2017.
In order to maintain adequate liquidity, the refinancing and upsizing of the US$350 million Revolving Credit Facility (RCF), maturing
on 23 August 2018, has been launched. A term sheet has been executed with the two Bank coordinators who have each received
credit approval for a US$100 million participation. We anticipate closing of the syndication during March 2018. The terms and
conditions largely mirror the current US dollar RCF which is US$92 million drawn as at 31 December 2017. This will increase our available
facilities by about US$250 million.
The development and growth of the Company has been rapid and as such, the strategic imperative for 2018 is one of consolidation.
Strategic priorities during the year are to:
- reduce the Group's financial leverage as soon as possible
- maintain the focus on operational excellence in order to ensure consistent and sustainable delivery on production and costs
- drive down costs in order to enhance Group competitiveness
- continue with the integration and optimization of recently acquired operations, and
- enhance the Group's competitiveness by addressing the current market discount to intrinsic value
FINANCIAL OVERVIEW
As noted in the interim results published for the six months ended 30 June 2017, the inclusion of the Rustenburg Operations for the full
six month period ended 31 December 2017 makes direct comparison of financial results for the comparable period in 2016 to have
limited meaning. The comparison is further confounded by the consolidation of the US PGM operations for the six months ended
31 December 2017 and the significant increase in the issued share capital of the Group following the rights issue in June 2017, which
has a significant impact on the per share earnings metrics. The financial results should be considered with these factors in mind.
Due to the inclusion of R5,612 million (US$419 million) revenue from the Rustenburg Operations and R7,215 million (US$541 million) from
the US PGM operations, Group revenue for the six months ended 31 December 2017 was 61% higher than for the comparable period
in 2016 at R26,692 million (US$1,995 million). Revenue from the SA gold operations however, declined by R1,286 million (US$52 million)
due to a 7% decline in gold produced, primarily due to the closure of the Cooke operations, and a 4% decline in the average rand
gold price received to R549,064/kg.
Despite a significant increase in Group cost of sales, before amortisation and depreciation compared to the same period in 2016
due to the consolidation of the SA and US PGM operations, Group adjusted EBITDA for the six months ended 31 December 2017 of
R5,955 million (US$446 million) was 20% higher year-on-year, positively impecting leverage measures.
Primarily due to the increase in borrowings arising from the acquisition of Stillwater, net finance expenses for the six months ended
31 December 2017, increased by R963 million (US$73 million) year-on-year to R1,312 million (US$98 million). The cessation of mining at
the Cooke operations and subsequent restructuring contributed to a meaningful increase in restructuring costs of R433 million
(US$33 million).
The Group recorded a net profit for the six months of R370 million (US$31 million) compared with R2,955 million (US$202 million) for the
comparable period in 2016.
Normalised earnings (attributable earnings adjusted for non-cash gains and losses, non-recurring items and share of result of equity-
accounted investees) for the six months ended 31 December 2017 was R522 million (US$40 million), a significant improvement on the
R1,002 million (US$76 million) normalised loss reported for the first half of the year and reflective of the benefits accruing from the
integration of the PGM acquisitions.
The recent strength in the rand, while partly offset by gains in precious metal prices, if sustained, will impact significantly on margins
and potentially affect our ability to delever the balance sheet. While US PGM operations are unaffected by the local currency,
generate significant profits and provide important diversification, the SA gold operations, and to a lesser extent the SA PGM
operations, will be impacted by the recent strength in the rand. A number of non-equity alternatives to reduce debt and facilitate
deleveraging are currently being considered.
Restructuring of the SA gold operations in 2017 and the realisation of significant synergies at the SA PGM operations have improved
cost competitiveness and better positioned these operations to withstand a strong rand environment. That said, we are currently reviewing our
operational plans in order to ensure that we remain profitable in all circumstances.
On 22 December 2017, new federal tax reform legislation was enacted in the United States, resulting in significant changes from
previous tax law and effective 1 January 2018 the 2017 Tax Act reduces the federal corporate income tax rate to 21% from 35%. The
rate change, together with other immaterial changes in tax basis, resulted in a decrease in our US Region net deferred tax liabilities
of R2,532 million (US$205 million) and a corresponding deferred tax benefit in 2017. Our federal income tax expense for periods
beginning in 2018 will be based on the new rate.
Although we are still in the process of fully understanding the implications of the tax reform changes, with significant changes made
to the deductibility of interest expenses and a repeal of the Alternative Minimum Tax (AMT) system, early indications are that the
changes will be net-positive for the US Region. This should in turn have a positive effect on the Group's net earnings, assuming the US
Region delivers on its targets over the short, medium and long term.
OPERATING REVIEW
SA REGION
SA gold operations
Despite a similar average received dollar gold price of US$1,274/oz for the six months ended 31 December 2017 to the comparative
period in 2016, the 4% appreciation of the average rand exchange rate relative to the US dollar resulted in the average rand gold
price achieved declining 4% from R569,535/kg to R549,064/kg in the second half. Together with gold produced declining 7% year-
on-year to 22,216kg (714,300oz), primarily due to the cessation of underground operations at Cooke, revenue from the SA gold
operations declined by R1,286 million (US$52 million) year-on-year.
Cost of sales, before amortisation and depreciation increased in absolute terms, by approximately 4% to R8,957 million
(US$668 million), with unit costs 14% higher at R977/tonne milled due to lower production and above inflation cost increases, and
ongoing costs being incurred on the care and maintenance of the Cooke Operations. AISC increased by 6%, to R480,010/kg
(US$1,114/oz). 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. Decisive action
taken to address these loss-making, high cost operations has resulted in the SA gold operations being better positioned for a strong
rand environment than they were last year.
Underground production at the Driefontein operations of 6,585kg (211,700oz) was 9% lower year-on-year, due to a 13% decline in
yield partially offset by a 5% increase in throughput. The decrease in grade was primarily due to lower grades at 5 Shaft and 8 Shaft,
which were expected and in line with the plan. Gold production from surface sources decreased by 22% to 815kg (26,200oz) due to
depletion of higher grade surface resources and a 2% decline in surface throughput to 2.1 million tonnes. The outlook on the average
grade mined for 2018 is in line with the average grade achieved in H2 2017.
The Kloof operations delivered another strong performance, with underground production increasing by 13% to 7,990kg (256,900oz)
and surface production increasing by 7% to 816kg (26,200oz). As a result, AISC declined by 1% despite inflationary pressures. Higher
underground mining volumes resulted in a 3% increase in ore milled to 1.1 million tonnes, which was supported by 10% increase in
underground yield. Surface throughput increased by 27% to 1.9 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 10% to 4,502kg (144,800oz), primarily due to re-planning at
Beatrix West following Section 189 consultations. The reduction allowed more flexibility, reduced costs and addressed constraints
underground. Crews were reduced from 38 to 26, and volume decreased by 23%. Due to the Section 189 consultations, the
remainder of Beatrix operations experienced restrictions to fill critical labour complement, which impacted on production volumes
at these sections. Gold production from surface sources decreased by 60% to 88kg (2,800oz), due to a 58% reduction in throughput
as surface resources are depleted.
Underground production from the Cooke Operations decreased by 51% to 1,030kg (33,100oz) as a result of Cooke 4 shaft being
placed on care and maintenance towards the end of September 2016, coupled with the Cooke 1, 2 and 3 shafts being placed on
care and maintenance during the period under review.
SA PGM operations
The SA PGM operations reported attributable 4E PGM production of 603,636oz for the six months ended 31 December 2017, 2% higher
than the six months ended 30 June 2017. 4E PGM production from Kroondal was again higher at 126,606oz, another record six months
performance since it started mining in 2001. 4E PGM production from Rustenburg of 403,211oz was 1% lower than for the six months
ended 30 June 2017, with Mimosa increasing attributable 4E production by 4% to 63,274oz.
Despite the recent strength in the rand, the average 4E basket price for the period was 7% higher than the second half of 2016 at
R13,066/4Eoz (US$975/4Eoz), mainly due to significant increases in palladium and rhodium prices (which comprise approximately 30%
and 8% of the 4E prill split respectively).
Costs continue to be well managed, with AISC of R10,432/4Eoz (US$778/4Eoz), resulting in the SA PGM operations contributing
adjusted EBITDA of R1,128 million (US$85 million), a commendable outcome in the first year of integration.
US REGION
US PGM operations
The US PGM operations, comprising the Stillwater Mine (including the Blitz project), East Boulder Mine, and Columbus Metallurgical
Complex (made up of the recycling operations, smelter, base metals refinery and analytical laboratory) were incorporated into the
Sibanye-Stillwater group effective from 4 May 2017.
The US PGM operations reported mined 2E PGM production of 282,631oz at an AISC of US$660/2Eoz for the six months ended
31 December 2017. For the eight months under Sibanye-Stillwater control, mined 2E PGM production was 376,356oz at an AISC of
US$651/2Eoz. This compares favourably to mined 2E PGM production of approximately 364,0002Eoz for the same time period in 2016,
and 2017 guidance. The East Boulder mine delivered record 2E PGM production of approximately 148,000oz during the period, while
the Stillwater Mine contributed approximately 228,000oz. The Columbus Metallurgical Complex processed a record of approximately
861,000oz (mined: 477,569oz and recycled: 383,142oz) during the eight months since acquisition.
Capital expenditure in the US region for the eight months was US$124 million, including project capital at Blitz. In addition, a total of
US$3 million was spent on exploration at Altar in Argentina and Marathon in Canada.
The Blitz project was commissioned three months ahead of schedule, and has produced approximately 7,000oz since commissioning.
Our industry leading recycling operation in Columbus, Montana, delivered strong growth in volumes during the period averaging
24.2 tonnes of feed material per day for the eight months compared to 23.0 tonnes per day in 2016. In total, recycling processed
517,148oz (includes 108,728oz tolled) for the eight months. This record performance led to the recycling operation contributing
US$12 million to Group adjusted EBITDA, with the US PGM operations as a whole contributing US$161 million (R2,143 million) to Group
adjusted EBITDA during the eight month period, at an average adjusted EBITDA margin of 23%.
During the period 355,267oz mined 2E PGMs and 377,793oz (platinum, palladium and rhodium) recycled PGMs were sold. The
average 2E basket price achieved for mined production for the eight months was US$927/2Eoz, US$201/2Eoz (28%) higher than the
average basket price for the comparable eight months in 2016. This favourable move in the basket price resulted in a positive mine
revenue variance of approximately US$71 million for the eight months when compared to 2016. The current spot basket price is
approximately US$1,025/2Eoz.
CORPORATE ACTION
The proposed DRDGold transaction
On 22 November 2017 it was announced that selected assets of the WRTRP would be vended into DRDGOLD for a 38% stake in the
company. Furthermore, the transaction allows for Sibanye-Stillwater to increase its shareholding up to 50.1% at a 10% discount to the
30 day VWAP trading price of DRDGOLD, within 24 months after the competition commission certificate was issued. On 7 February
2018, the said certificate was issued and it is anticipated that further outstanding conditions (including DRDGOLD shareholder
approval) will be fulfilled in the second quarter of 2018. For more information regarding this transaction please refer to
https://www.sibanyestillwater.com/investors/transactions/drdgold.
The proposed Lonmin acquisition
On 14 December 2017 an all share offer to acquire 100% of Lonmin plc was announced. The Board of Sibanye-Stillwater believes that
the proposed acquisition is a logical step in executing its PGM strategy, at a low point in the PGM price cycle and is value accretive
for Sibanye-Stillwater shareholders. By combining Sibanye-Stillwater's existing, and contiguous, South African PGM assets with Lonmin's
operations, including Lonmin's processing facilities, Sibanye-Stillwater will be able to unlock operational synergies estimated at R1.5
billion by 2021* and become a fully integrated PGM producer in South Africa, with long-term growth potential through Lonmin's
advanced projects. For more information regarding this transaction refer to
https://www.sibanyestillwater.com/investors/transactions/lonmin.
*For further information in relation to the expected synergies, please refer to page 17, 58 and 60 of the offer announcement dated
14 December 2017, available on https://www.sibanyestillwater.com/investors/transactions/lonmin
OUTLOOK
The political environment in South Africa has recently undergone substantial change. While structural changes are yet to be seen,
general sentiment around the country's prospects for economic stability and growth is more positive. This has notably reflected in
the strength of the local currency, which has appreciated by 6% against the dollar in 2018 to date and, remarkably, by 18% since
the beginning of 2017.
At the same time though, dollar denominated precious metal prices have increased, and while the rand will continue to impact on
industry margins, overall spot prices are generally higher than at the same time in 2017. While the political and regulatory outlook
appears more positive, and suggests upside for the beleaguered mining industry, we continue to adopt a cautious and
measured approach.
Following the cessation of underground operations at Cooke in 2017, the outlook for the SA gold operations is more sustainable.
Production is forecast at between 38,500kg and 40,000kg (1.24Moz and 1.29Moz) for the year ending 31 December 2018 with AISC
between R475,000/kg and R495,000/kg (US$1,130/oz and US$1,180/oz). Total capital expenditure, including approximately
R400 million (US$31 million) project capital for Burnstone, is forecast at approximately R3,500 million (US$268 million).
4E PGM production from the SA PGM operations for the year ending 31 December 2018 is forecast at between 1,100,000oz and
1,150,000oz with AISC between R10,750/4Eoz and R11,250/4Eoz (US$825/4Eoz and US$860/4Eoz). Capital expenditure is forecast at
R1,500 million (US$115 million), which includes approximately R350 million (US$27 million) of project capital.
The dollar costs are based on an average exchange rate of R13.05/US$.
2E PGM production from the US PGM operations for the year ending 31 December 2018 is forecast to be between 580,000oz and
610,000oz, with AISC between US$650/2Eoz and US$690/2Eoz. Capital expenditure is expected to be up to US$222 million.
Sibanye-Stillwater has undergone significant change and done so under challenging circumstances at what we believe to have
been a low point in the commodity price cycle. Recent strength in precious metal prices, supported by improving market
fundamentals, underpins our view. We are convinced that Sibanye-Stillwater offers fundamental value and is strategically
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 31 DECEMBER 2017 (H2 2017) COMPARED WITH THE SIX MONTHS ENDED 31 DECEMBER 2016
(H2 2016)
Revenue
Revenue increased by 61% to R26,692 million (US$1,995 million) from R16,536 million (US$1,172 million). This included R7,279 million
(US$544 million) from the SA PGM operations and R7,215 million (US$541 million) from the US PGM operations. The increase at the SA
PGM operations was due to the inclusion of revenue of R5,612 million (US$419 million) from the Rustenburg Operations for the full six
months in 2017 compared with R1,656 million (US$113 million) for two months in 2016. Revenue from the SA gold operations declined
by 10% to R12,198 million (US$910 million) due to a 4% lower average gold price and a 7% decline in gold production year-on-year.
The lower production was mainly due to the cessation of underground operations at Cooke, and lower volumes mined and grades
at Beatrix West and the Driefontein Operations.
Cost of sales, before amortisation and depreciation
Cost of sales, before amortisation and depreciation increased by 80% to R20,496 million (US$1,531 million). This included R6,100 million
(US$455 million) at the SA PGM operations and R5,439 million (US$408 million) at the US PGM operations. The increase at the SA PGM
operations was due to the inclusion of cost of sales, before amortisation and depreciation of R4,800 million (US$358 million) at the
Rustenburg Operations for the full six months in 2017 compared with R1,583 million (US$108 million) for two months in 2016. Cost of
sales, before amortisation and depreciation at the SA gold operations increased by 4% to R8,957 million (US$668 million) due to above
inflation increases in wages and other costs, partly offset by the cessation of underground operations at Cooke.
Amortisation and depreciation
Amortisation and depreciation increased by 53% to R3,203 million (US$239 million). This included R434 million (US$33 million) from the
SA PGM operations and R1,118 million (US$84 million) from the US PGM operations. Amortisation and depreciation at the SA gold
operations decreased by 14% to R1,651 million (US$123 million) due to the lower production, and impairment of the Cooke
underground and Beatrix West mining assets at 30 June 2017.
Finance expense
The finance expense increased to R1,532 million (US$114 million) from R518 million (US$37 million). The increase was primarily due to
the increase in average indebtedness to fund the Stillwater acquisition. The finance expense in H2 2017 included interest of
R500 million (US$38 million) on the US$1.05 billion Bond (issued at the end of June 2017), R81 million (US$6 million) on the US$450 million
Convertible Bond (issued at the end of September 2017), and R475 million (US$35 million) on the R6.0 billion revolving credit facility
(RCF), US$350 million RCF and Stillwater Bridge Facility.
Sibanye-Stillwater's average outstanding gross debt, excluding the Burnstone Debt, was approximately R26.9 billion during H2 2017
compared with approximately R6.3 billion during H2 2016. For additional information on Sibanye-Stillwater's borrowings see note 11
of the financial statements.
Loss on financial instruments
The net loss on financial instruments of R853 million (US$64 million) for H2 2017 compared with a net gain of R144 million (US$6 million)
for H2 2016. This net loss included losses on revised estimated cash flows of the Anglo American Platinum financial assets of R468 million
(US$35 million) and Deferred Payment of R469 million (US$35 million), a fair value loss on the share-based payment on BEE transaction
obligation of R153 million (US$11 million), partly offset by a gain on revised estimated cash flows to repay the Burnstone Debt of
R75 million (US$6 million) and fair value gain on the derivative financial instrument of R116 million (US$9 million). For additional
information see note 3 of the financial statements.
Non-recurring items
Impairments
Following the implementation of the DRDGOLD Transaction and exchange of selected surface gold processing assets and tailings
storage facilities (TSF), Sibanye-Stillwater will retain full ownership of the Cooke and Ezulwini TSFs, and as such, retains full exposure to
the low uranium price environment without the higher gold TSF. As a result, a decision was taken to impair the "remaining" West Rand
Tailings Retreatment Project (WRTRP) exploration and evaluation assets, and allocated goodwill by R1,344 million (US$101 million).
In addition, no expenditure on further exploration for and evaluation of the De Bron-Merriespruit mineral resources is budgeted or
planned for 2018. As a result, a decision was taken to impair this exploration and evaluation asset by R227 million.
Restructuring costs
Restructuring costs, including voluntary separation packages, of R582 million (US$44 million) were incurred at the SA gold and PGM
operations.
Transaction costs
Transaction costs of R151 million (US$11 million) were primarily related to the Stillwater acquisition and US$450 million Convertible Bond
issued at the end of September 2017.
Mining and income tax
Current tax decreased to R465 million (US$35 million) from R618 million (US$44 million) due to the decrease in taxable mining income.
The deferred tax decreased to a credit of R2,998 million (US$225 million) from a charge of R79 million (US$5 million). The deferred tax
credit for H2 2017 was mainly due to the impact of the new federal tax reform legislation enacted in the United States on
22 December 2018. From 1 January 2018, the federal corporate income tax rate reduced 21% from 35%. This rate change, together
with other immaterial changes in tax basis, resulted in a decrease of R2,532 million (US$205 million) in the US PGM operations' net
deferred tax liabilities and a corresponding deferred tax benefit.
Liquidity and capital resources
Free cash flow
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 R1,967 million (US$147 million) for H2 2017 compares with an inflow of R330 million (US$27 million) for H2 2016.
This was largely due to increases of R1,362 million (US$110 million) in investment in working capital, R683 million (US$52 million) in interest
paid and a R1,225 million (US$101 million) in capital expenditure, due to the incorporation of new acquisitions, partly offset by an
increase of R474 million (US$52 million) in cash generated by operations and a decrease of R455 million (US$30 million) in royalties
and taxation paid.
Capital expenditure
Capital expenditure increased by 51% to R3,615 million (US$270 million) from R2,390 million (US$168 million). This included R515 million
(US$38 million) at the SA PGM operations and R1,324 million (US$99 million) at the US PGM operations. The increase at the SA PGM
operations was due to the inclusion of capital expenditure of R395 million (US$29 million) from the Rustenburg Operations for the full
six months in 2017 compared with R149 million (US$10 million) for two months in 2016. Capital expenditure from the SA gold operations,
which was 17% lower, where ore reserve development (ORD) decreased by R118 million (US$4 million) and project expenditure,
mainly at Burnstone and WRTRP, decreased by R175 million (US$11 million).
Net decrease in cash and cash equivalents
Cash at 31 December 2017 (after net loans repaid of R2,178 million (US$163 million)) decreased to R2,062 million (US$167 million) from
R6,523 million (US$500 million) at 30 June 2017. For additional information on Sibanye-Stillwater's liquidity risk see note 15 of the
financial statements.
MINERAL RESOURCES AND MINERAL RESERVES
On 19 February 2018, Sibanye-Stillwater reported an updated of its Mineral Resources and Mineral Reserves at 31 December 2017,
including 2E PGM Mineral Resources and Mineral Reserves for the US region following the acquisition of Stillwater in May 2017.
- Total gold Mineral Reserves decreased by 10% or 2.957Moz to 25.737Moz
- Total gold Mineral Resources decreased by 16.924Moz to 85.111Moz
- Total 4E PGM Mineral Reserves decreased by 4% to 22.358Moz
- Total 4E PGM Mineral Resources declined marginally to 100.175Moz
- The acquisition of Stillwater in May 2017, increased 2E PGM Mineral Reserves by 21.903Moz and 2E PGM Mineral Resources by
80.463Moz
For additional details relating to the Mineral Resources and Mineral Reserves see the SENS Announcement on 19 February 2018,
available on the Company's website. The Stillwater CPR is also available on the website at
https://www.sibanyestillwater.com/investors/documents-circulars.
CAPITALISATION ISSUE
Sibanye-Stillwater reported an attributable loss of R4,437 million (US$333 million) for the year ended 31 December 2017, compared
with attributable earnings of R3,473 million (US$237 million) for the year ended 31 December 2016. In the near term, cash preservation
is prudent and as a result no final 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
4 (four) 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,11 April 2018, less 10% will be
used to determine the cash value. An announcement will be released on Thursday, 12 April 2018 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 Wednesday, 11 April 2018. 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 Transfer 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 2,168,721,220 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
Shareholders are advised of the following dates in respect of the Capitalisation Issue of 4 (four) ordinary shares for every 100 (one
hundred) shares held:
- Last date to trade: Tuesday, 10 April 2018
- Capitalisation shares listed: Wednesday, 10 April 2018
- Shares commence trading ex-entitlement: Wednesday, 11 April 2018
- Record date: Friday, 13 April 2018
- Accounts with CSDP or broker credited or issuing of new share certificates is expected to be effected: Monday, 16 April 2018
Please note that share certificates may not be dematerialised or rematerialised between Wednesday, 11 April 2018, and Friday, 13 April
2018, both dates inclusive
SALIENT FEATURES AND COST BENCHMARKS FOR THE SIX MONTHS ENDED 31 DECEMBER 2017, 30 JUNE
2017 AND 31 DECEMBER 2016
SA gold operations
SA REGION
Total SA gold 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 Dec 2017 9,165 3,744 5,421 1,070 2,063 1,101 1,875 1,372 304 201 1,179
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
Yield g/t Dec 2017 2.42 5.37 0.39 6.15 0.40 7.26 0.44 3.28 0.29 5.12 0.33
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
Gold produced kg Dec 2017 22,216 20,107 2,109 6,585 815 7,990 816 4,502 88 1,030 390
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
000'oz Dec 2017 714.3 646.5 67.8 211.7 26.2 256.9 26.2 144.8 2.8 33.1 12.6
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
Gold sold kg Dec 2017 22,216 20,107 2,109 6,585 815 7,990 816 4,502 88 1,030 390
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
000'oz Dec 2017 714.3 646.5 67.8 211.7 26.2 256.9 26.2 144.8 2.8 33.1 12.6
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
Price and costs
Gold price received R/kg Dec 2017 549,064 548,068 549,023 549,237 554,366
Jun 2017 523,303 523,062 523,538 523,150 523,734
Dec 2016 569,535 568,824 569,209 569,078 589,277
US$/oz Dec 2017 1,274 1,272 1,274 1,274 1,286
Jun 2017 1,233 1,232 1,234 1,232 1,234
Dec 2016 1,268 1,266 1,267 1,267 1,312
Operating cost1 R/t Dec 2017 977 2,142 173 2,561 173 2,361 184 1,439 78 3,515 177
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
US$/t Dec 2017 73 160 13 191 13 176 14 107 6 262 13
Jun 2017 68 158 11 193 15 176 14 104 12 205 6
Dec 2016 61 139 10 171 13 154 11 91 9 183 7
R/kg Dec 2017 403,151 398,901 443,670 416,173 439,018 325,369 423,407 438,450 270,455 686,019 534,872
Jun 2017 414,595 415,758 404,643 407,548 384,898 365,550 389,494 431,076 531,944 669,037 436,148
Dec 2016 365,150 366,205 355,972 339,553 361,010 326,395 300,132 369,588 389,640 582,819 426,303
US$/oz Dec 2017 935 926 1,029 965 1,018 755 982 1,017 627 1,591 1,241
Jun 2017 977 979 953 960 907 861 917 1,015 1,253 1,576 1,027
Dec 2016 813 815 793 756 804 727 668 823 868 1,298 949
Adjusted EBITDA
margin2 % Dec 2017 25 23 39 20 (32)
Jun 2017 20 22 29 17 (31)
Dec 2016 35 39 43 34 (0)
All-in sustaining cost3 R/kg Dec 2017 480,010 502,257 420,089 501,438 666,972
Jun 2017 485,441 474,168 442,650 504,110 678,857
Dec 2016 451,352 420,763 426,233 453,454 623,550
US$/oz Dec 2017 1,114 1,165 975 1,163 1,548
Jun 2017 1,143 1,117 1,043 1,187 1,600
Dec 2016 1,005 937 949 1,010 1,388
All-in cost3 R/kg Dec 2017 498,474 504,122 429,866 501,939 666,972
Jun 2017 504,845 478,148 450,614 504,155 685,689
Dec 2016 476,774 425,315 438,392 454,320 637,927
US$/oz Dec 2017 1,157 1,170 997 1,165 1,548
Jun 2017 1,189 1,126 1,062 1,188 1,616
Dec 2016 1,062 947 976 1,012 1,420
Capital expenditure
Total capital
expenditure4 Rm Dec 2017 1,776.0 621.2 693.6 265.4 -
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
US$m Dec 2017 132.7 46.4 51.9 19.7 -
Jun 2017 123.6 40.4 40.8 21.2 5.6
Dec 2016 150.4 41.2 53.8 24.0 9.6
Average exchange rates for the six months ended 31 December 2017, 30 June 2017 and 31 December 2016 were R13.41/US$, R13.21/US$ and R13.97/US$, respectively.
Figures may not add as they are rounded independently.
1 Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation in a period by the tonnes milled/treated in the same period, and
operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation in a period by the gold produced in the same period.
2 Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
3 All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise
earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital
expenditure associated with growth. All-in sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) are calculated by dividing the All-in sustaining cost and All-in cost,
respectively, in a period by the total gold sold in the same period, For a reconciliation of cost of sales, before amortisation and depreciation to All-in cost, see "All-in cost for the six months
ended 31 December 2017, 30 June 2017 and 31 December 2016".
4 Corporate project expenditure for the six months ended 31 December 2017, 30 June 2017 and 31 December 2016 was R169.3 million (US$12.7 million), R205.8 million (US$15.6 million), and R307.9 million
(US$21.8 million), respectively, the majority of which related to the Burnstone project.
SA and US PGM operations
GROUP SA REGION US REGION
Total US
PGM
Total SA PGM(1) Kroondal Mimosa Plat Mile Rustenburg Stillwater(2)
Total SA Under- Under- Under-
Attributable and US PGM Total ground Surface Attributable Attributable Surface ground Surface ground(2)
Production
Tonnes milled/treated 000't Dec 2017 13,492 12,857 6,257 6,600 1,966 704 3,857 3,587 2,743 635
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
Plant head grade g/t Dec 2017 2.71 2.10 3.28 0.98 2.45 3.58 0.63 3.69 1.47 15.13
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
Plant recoveries % Dec 2017 75.32 69.49 83.78 24.27 81.88 78.12 13.48 85.47 30.77 90.8
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
Yield g/t Dec 2017 2.04 1.46 2.75 0.24 2.00 2.80 0.09 3.15 0.45 13.84
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
PGM production(3) 4Eoz - 2Eoz Dec 2017 886,267 603,636 553,133 50,503 126,606 63,274 10,545 363,253 39,958 282,631
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
PGM sold 4Eoz - 2Eoz Dec 2017 883,738 603,636 553,133 50,503 126,606 63,274 10,545 363,253 39,958 280,102
Jun 2017 665,877 590,712 530,769 59,943 114,619 60,879 8,898 355,271 51,045 75,165
Dec 2016 327,990 327,990 298,576 29,414 117,520 61,585 11,098 119,471 18,316
Price and costs(4)
Average PGM basket
price5 R/4Eoz - R/2Eoz Dec 2017 12,940 13,066 13,063 13,095 13,114 13,107 13,195 13,045 13,068 12,699
Jun 2017 11,883 12,006 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
US$/4Eoz Dec 2017 965 975 974 977 978 978 984 973 975 947
Jun 2017 980 910 912 885 911 910 914 912 880 850
Dec 2016 874 874 873 879 882 901 880 850 878
Operating cost(6) R/t Dec 2017 640 502 1,010 74 626 838 18 1,221 153 3,287
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
US$/t Dec 2017 48 37 75 6 47 63 1 91 11 245
Jun 2017 36 33 72 4 49 68 1 84 9 190
Dec 2016 27 27 62 3 44 65 1 87 9
R/4Eoz - R/2Eoz Dec 2017 9,948 11,289 11,453 9,704 9,718 9,318 6,676 12,057 10,504 7,383
Jun 2017 9,686 10,365 10,786 7,065 10,169 10,035 6,687 10,985 7,131 5,847
Dec 2016 10,314 10,314 9,388 10,028 5,569 11,485
US$/4Eoz - US$/2Eoz Dec 2017 742 842 855 724 725 695 498 899 784 551
Jun 2017 734 785 817 535 770 760 506 832 540 443
Dec 2016 739 739 - - 673 718 399 823
Adjusted EBITDA margin(7)% Dec 2017 16 20 32 41 14 25
Jun 2017 8 9 29 8 7 19
Dec 2016 9 15 47 39 5
All-in sustaining cost(8) R/4Eoz - R/2Eoz Dec 2017 9,905 10,432 10,057 9,223 6,619 10,650 8,899
Jun 2017 10,029 10,364 10,307 8,643 6,799 10,458 8,134
Dec 2016 10,195 10,195 9,928 10,406 5,769 10,781
US$/4Eoz - US$/2Eoz Dec 2017 739 778 750 688 494 794 660
Jun 2017 760 785 781 655 515 792 622
Dec 2016 730 730 711 745 413 772
All-in cost(8) R/4Eoz - R/2Eoz Dec 2017 10,787 10,436 10,057 9,223 6,837 10,650 11,458
Jun 2017 10,312 10,364 10,307 8,643 6,799 10,458 10,014
Dec 2016 11,097 11,097 9,928 10,406 5,769 10,781
US$/4Eoz - US$/2Eoz Dec 2017 805 779 750 688 510 794 845
Jun 2017 781 785 781 655 515 792 765
Dec 2016 794 794 711 745 413 772
Capital expenditure
Total capital Rm Dec 2017 1,839.0 514.9 111.6 117.9 7.9 395.4 1,324.1
expenditure Jun 2017 849.7 520.0 78.9 104.6 5.4 435.7 329.7
Dec 2016 258.8 258.8 108.5 99.1 0.5 148.7
US$m Dec 2017 137.5 38.3 8.3 8.8 0.6 29.4 99.2
Jun 2017 64.4 39.4 6.0 7.9 0.4 33.0 25.0
Dec 2016 17.9 17.9 7.7 7.0 - 10.1
Average exchange rates for the six months ended 31 December 2017, 30 June 2017 and 31 December 2016 were R13.41/US$, R13.21/US$ and R13.97/US$, respectively
Figures may not add as they are rounded independently.
(1) The SA PGM operations' results for the six months ended December 2016 include the Rustenburg Operations for the two months since acquisition.
(2) The US PGM operations' results for the six months ended 30 June 2017 are for two months since acquisition. The US PGM operations' underground production is converted to metric tonnes
and kilograms, and performance is translated into SA rand. In addition to the US PGM operations' underground production, the operation treats recycling material which is excluded
from the statistics shown, except for adjusted EBITDA margin 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 revenue and cost of sales.
(5) The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment.
(6) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation in a period by the tonnes milled/treated in the same period, and
operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation in a period by the gold produced in the same period.
(7) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
(8) All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise
earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital
expenditure associated with growth. All-in sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in cost,
respectively, in a period by the total 4E/2E PGM production in the same period, For a reconciliation of cost of sales, before amortisation and depreciation to All-in cost, see "All-in cost for the
six months ended 31 December 2017, 30 June 2017 and 31 December 2016".
Mining - Prill split excluding Recycling operations Recycling Operation
GROUP SA REGION US REGION US REGION
Six months ended Six months ended Six months endedSix months ended Six months ended Six months ended Six months ended
Dec 2017 Dec 2017 Jun 2017 Dec 2016 Dec 2017 Jun 2017 Unit Dec 2017
4Eoz % 4Eoz % 4Eoz % 4Eoz % 2Eoz % 2Eoz %
Platinum 413,884 47% 349,906 58% 345,050 58% 187,316 57% 63,978 23% 21,260 23% Average catalyst fed/dayTonne 23.9
Palladium 407,437 46% 188,784 31% 183,433 31% 105,134 32% 218,653 77% 72,465 77% Total processed Tonne 4,392
Rhodium 51,137 6% 51,137 8% 49,028 8% 27,586 8% Tolled Tonne 637
Gold 13,809 2% 13,809 2% 13,201 2% 7,954 2% Purchased Tonne 3,754
PGM production 886,267 100% 603,636 100% 590,712 100% 327,990 100% 282,631 100% 93,725 100% PGM fed Troy oz 390,703
Ruthenium 79,079 79,079 77,132 43,172 PGM sold Troy oz 283,431
Iridium 18,086 18,086 17,916 10,085 PGM tolled returned Troy oz 79,888
Total 983,432 700,801 685,760 381,247 282,631 93,725
CONDENSED CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS
Condensed consolidated income statement
Figures are in millions unless otherwise stated
US dollar SA rand
Year ended Six months ended Six months ended Year ended
Reviewed Unaudited Reviewed Reviewed Unaudited Reviewed
Revised Reviewed Revised Revised Unaudited Unaudited Revised Revised Reviewed Revised
Dec 2016 Dec 2017 Dec 2016 Jun 2017 Dec 2017 Notes Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
2,128.1 3,449.4 1,172.0 1,454.9 1,994.5 Revenue 26,692.4 19,219.2 16,536.0 45,911.6 31,240.7
Cost of sales, before amortisation and
(1,410.7) (2,741.0) (805.3) (1,210.2) (1,530.8) depreciation (20,496.0) (15,986.7) (11,397.3) (36,482.7) (20,709.1)
(275.3) (428.2) (148.8) (189.0) (239.2) Amortisation and depreciation (3,203.0) (2,496.7) (2,096.5) (5,699.7) (4,041.9)
22.6 31.2 12.1 14.7 16.5 Interest income 220.7 194.8 169.6 415.5 331.4
(61.5) (223.3) (36.5) (109.0) (114.3) Finance expense 2 (1,532.2) (1,439.6) (517.9) (2,971.8) (903.1)
(33.8) (17.4) (24.9) (8.8) (8.6) Share-based payments (115.7) (116.2) (358.8) (231.9) (496.2)
(70.4) (83.7) 6.1 (19.8) (63.9) (Loss)/gain on financial instruments 3 (853.1) (261.3) 144.2 (1,114.4) (1,032.8)
15.0 22.0 12.5 25.3 (3.3) Gain/(loss) on foreign exchange differences (42.2) 334.6 181.7 292.4 219.6
Share of results of equity-accounted investees
0.9 21.9 6.4 7.4 14.5 after tax 10 193.5 98.1 98.2 291.6 13.3
(24.4) (47.5) (18.8) (15.0) (32.5) Net other costs (434.6) (198.1) (273.5) (632.7) (358.7)
(5.1) (18.7) (4.8) (9.1) (9.6) - Care and maintenance (128.7) (120.5) (70.4) (249.2) (75.0)
- Change in estimate of environmental
rehabilitation obligation, and right of recovery
(6.6) (18.7) (6.6) (4.2) (14.5) receivable and payable (193.6) (55.3) (97.5) (248.9) (97.5)
(12.7) (10.1) (7.4) (1.7) (8.4) - Other (112.3) (22.3) (105.6) (134.6) (186.2)
6.5 3.1 3.0 2.3 0.8 Gain on disposal of property, plant and equipment 10.2 30.5 42.3 40.7 95.4
(94.1) (331.4) (40.8) (211.7) (119.7) Impairments 4 (1,615.0) (2,796.0) (562.0) (4,411.0) (1,381.1)
- (83.2) - (81.5) (1.7) Occupational healthcare expense 13 (29.7) (1,077.2) - (1,106.9) -
(12.8) (54.8) (10.3) (11.2) (43.6) Restructuring costs (581.8) (148.0) (148.8) (729.8) (187.7)
(10.7) (41.5) (3.3) (30.4) (11.1) Transaction costs (150.5) (401.6) (43.4) (552.1) (157.0)
148.4 - 148.4 - - Gain on acquisition 8.1 - - 2,178.6 - 2,178.6
327.8 (524.4) 271.8 (382.0) (142.4) (Loss)/profit before royalties and tax (1,937.0) (5,044.2) 3,952.4 (6,981.2) 4,811.4
(38.6) (29.9) (21.3) (13.1) (16.8) Royalties (225.6) (172.9) (301.1) (398.5) (566.6)
289.2 (554.3) 250.5 (395.1) (159.2) (Loss)/profit before tax (2,162.6) (5,217.1) 3,651.3 (7,379.7) 4,244.8
(81.9) 221.4 (49.0) 31.4 190.0 Mining and income tax 2,532.2 414.4 (696.7) 2,946.6 (1,202.1)
(75.7) (37.9) (43.6) (2.9) (35.0) - Current tax 5 (465.3) (38.9) (618.1) (504.2) (1,111.8)
(6.2) 259.3 (5.4) 34.3 225.0 - Deferred tax 5 2,997.5 453.3 (78.6) 3,450.8 (90.3)
207.3 (332.9) 201.5 (363.7) 30.8 (Loss)/profit for the period 369.6 (4,802.7) 2,954.6 (4,433.1) 3,042.7
(Loss)/profit for the period attributable to:
236.6 (333.2) 214.9 (363.8) 30.6 - Owners of Sibanye-Stillwater 366.3 (4,803.7) 3,140.3 (4,437.4) 3,473.3
(29.3) 0.3 (13.4) 0.1 0.2 - Non-controlling interests 3.3 1.0 (185.7) 4.3 (430.6)
Earnings per ordinary share (cents)
15 (17) 14 (23) 1 Basic earnings per share 6.1 16 (298) 203 (229) 225
15 (17) 14 (23) 1 Diluted earnings per share 6.2 16 (298) 203 (229) 225
1,544,646 1,933,850 1,547,296 1,614,151 2,255,316 Weighted average number of shares ('000) 6.1 2,255,316 1,614,151 1,547,296 1,933,850 1,544,646
1,546,807 1,933,850 1,549,457 1,614,151 2,255,316 Diluted weighted average number of shares ('000) 6.2 2,255,316 1,614,151 1,549,457 1,933,850 1,546,807
Headline earnings per ordinary share (cents)
8 (1) 6 (9) 10 Headline earnings per share 6.3 87 (135) 90 (12) 162
8 (1) 6 (9) 10 Diluted headline earnings per share 6.4 87 (135) 90 (12) 162
14.68 13.31 13.97 13.21 13.41 Average R/US$ rate
Condensed consolidated statement of other comprehensive income
Figures are in millions unless otherwise stated
US dollar SA rand
Year ended Six months ended Six months ended Year ended
Reviewed Unaudited Reviewed Reviewed Unaudited Reviewed
Revised Reviewed Revised Revised Unaudited Unaudited Revised Revised Reviewed Revised
Dec 2016 Dec 2017 Dec 2016 Jun 2017 Dec 2017 Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
207.3 (332.9) 201.5 (363.7) 30.8 (Loss)/profit for the period 369.6 (4,802.7) 2,954.6 (4,433.1) 3,042.7
Other comprehensive income
129.7 118.6 76.4 51.7 66.9 Other comprehensive income, net of tax (519.7) (107.5) (140.9) (627.2) (131.4)
- - - - - Foreign currency translation adjustments (519.1) (113.3) (140.9) (632.4) (131.4)
- 0.4 - 0.4 - Mark to market valuation (0.6) 5.8 - 5.2 -
129.7 118.2 76.4 51.3 66.9 Currency translation adjustments1 - - - - -
337.0 (214.3) 277.9 (312.0) 97.7 Total comprehensive income (150.1) (4,910.2) 2,813.7 (5,060.3) 2,911.3
Total comprehensive income attributable to:
365.8 (214.6) 291.3 (312.1) 97.5 - Owners of Sibanye-Stillwater (153.4) (4,911.2) 2,999.4 (5,064.6) 3,341.9
(28.8) 0.3 (13.4) 0.1 0.2 - Non-controlling interests 3.3 1.0 (185.7) 4.3 (430.6)
14.68 13.31 13.97 13.21 13.41 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 US dollar SA rand
Reviewed Reviewed Reviewed Reviewed
Revised Revised Reviewed Reviewed Revised Revised
Dec 2016 Jun 2017 Dec 2017 Notes Dec 2017 Jun 2017 Dec 2016
2,485.0 5,146.5 5,183.6 Non-current assets 64,067.3 67,216.4 34,018.1
1,989.8 4,163.6 4,162.2 Property, plant and equipment 51,444.6 54,378.2 27,240.7
68.4 521.3 517.5 Goodwill 9 6,396.0 6,809.9 936.0
157.6 165.7 181.6 Equity-accounted investments 10 2,244.1 2,164.0 2,157.4
226.5 246.9 282.6 Environmental rehabilitation obligation funds 3,492.4 3,225.0 3,100.5
26.0 34.9 23.0 Other receivables 284.0 455.1 355.3
16.7 14.1 16.7 Deferred tax assets 206.2 184.2 228.2
562.7 1,173.7 971.2 Current assets 12,004.5 15,327.9 7,703.2
49.4 226.8 285.3 Inventories 3,526.5 2,962.0 676.8
419.9 395.4 501.4 Trade and other receivables 6,197.6 5,164.5 5,747.9
22.7 24.0 2.8 Other receivables 35.2 313.2 310.6
- 28.0 14.8 Tax receivable 182.8 365.0 -
70.7 499.5 166.9 Cash and cash equivalents 2,062.4 6,523.2 967.9
3,047.7 6,320.2 6,154.8 Total assets 76,071.8 82,544.3 41,721.3
1,203.0 1,842.6 1,941.6 Shareholders' equity 23,998.2 24,064.5 16,469.1
1,387.0 3,339.4 3,530.3 Non-current liabilities 43,635.8 43,614.8 18,995.6
600.5 1,733.3 1,941.1 Borrowings 11 23,992.0 22,636.7 8,221.5
- - 88.5 Derivative financial instrument 11.1 1,093.5 - -
290.9 346.8 378.5 Environmental rehabilitation obligation 12 4,678.7 4,529.0 3,982.2
1.2 1.3 0.9 Post-retirement healthcare obligation 11.3 16.4 16.3
- 75.6 93.2 Occupational healthcare obligation 13 1,152.5 987.9 -
18.0 22.3 34.2 Share-based payment obligations 422.2 291.8 246.5
117.9 249.0 304.2 Other payables 14 3,760.4 3,252.0 1,613.7
359.1 911.1 689.7 Deferred tax liabilities 8,525.2 11,901.0 4,915.4
457.14 1,138.2 682.9 Current Liabilities 8,437.8 14,865.0 6,256.6
55.0 579.8 134.1 Borrowings 11 1,657.5 7,571.8 752.3
- 6.8 0.1 Occupational healthcare obligation 13 0.8 89.3 -
17.2 0.7 1.0 Share-based payment obligations 12.3 8.9 235.2
378.58 547.7 541.5 Trade and other payables 6,690.4 7,153.1 5,180.5
- - 3.4 Other payables 41.9 - -
6.4 3.2 2.8 Tax and royalties payable 34.9 41.9 88.6
3,047.7 6,320.2 6,154.8 Total equity and liabilities 76,071.8 82,544.3 41,721.3
13.69 13.06 12.36 Closing R/US$ rate
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 (Audited) 14,984.8 109.8 (9,797.8) 2,938.2 21,734.6
- 129.2 236.6 (28.8) 337.0 Total comprehensive income for the period 2,911.3 (430.6) 3,473.3 (131.4) -
- - 236.6 (29.3) 207.3 Profit for the period 3,042.7 (430.6) 3,473.3 - -
- 129.2 - 0.5 129.7 Other comprehensive income, net of tax (131.4) - - (131.4) -
- - (110.7) (0.1) (110.8) Dividends paid (1,611.9) (1.3) (1,610.6) - -
- 11.7 - - 11.7 Share-based payments 172.0 - - 172.0 -
- - - 0.8 0.8 Acquisition of subsidiary with non-controlling interests 12.9 12.9 - - -
- - (22.3) 22.3 - Transaction with non-controlling interests - 326.9 (326.9) - -
2,388.6 375.3 (1,562.2) 1.3 1,203.0 Balance at 31 December 2016 (Reviewed) (Revised) 16,469.1 17.7 (8,262.0) 2,978.8 21,734.6
- 118.6 (333.2) 0.3 (214.3) Total comprehensive income for the period (5,060.3) 4.3 (4,437.4) (627.2) -
- - (333.2) 0.3 (332.9) Loss for the period (4,433.1) 4.3 (4,437.4) - -
- 118.6 - - 118.6 Other comprehensive income (627.2) - - (627.2) -
- - (42.4) - (42.4) Dividends paid (560.4) (2.2) (558.2) - -
- 16.3 - - 16.3 Share-based payments 217.4 - - 217.4 -
979.0 - - - 979.0 Rights issue 12,932.4 - - - 12,932.4
3,367.6 510.2 (1,937.8) 1.6 1,941.6 Balance at 31 December 2017 (Reviewed) 23,998.2 19.8 (13,257.6) 2,569.0 34,667.0
Condensed consolidated statement of cash flows
Figures are in millions unless otherwise stated
US dollar SA rand
Year ended Six months ended Six months ended Year ended
Reviewed Reviewed Unaudited Reviewed Unaudited Unaudited Reviewed Unaudited Reviewed Reviewed
Dec 2016 Dec 2017 Dec 2016 Jun 2017 Dec 2017 Notes Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Cash flows from operating activities
669.9 532.8 336.6 144.5 388.3 Cash generated by operations 5,182.4 1,909.1 4,708.6 7,091.5 9,835.1
(103.4) (32.6) (6.5) (32.6) - Cash-settled share-based payments paid (2.4) (431.2) (28.8) (433.6) (1,518.6)
(16.2) (39.2) (49.3) 120.1 (159.3) Change in working capital (2,108.7) 1,586.4 (746.6) (522.3) (237.6)
550.3 461.0 280.8 232.0 229.0 3,071.3 3,064.3 3,933.2 6,135.6 8,078.9
7.6 8.9 3.5 3.9 5.0 Interest received 66.9 51.8 48.8 118.7 112.2
(30.0) (154.3) (18.9) (83.3) (71.0) Interest paid (953.7) (1,100.2) (270.9) (2,053.9) (441.1)
(37.9) (29.1) (21.2) (14.8) (14.3) Royalties paid (192.1) (195.3) (299.6) (387.4) (555.9)
(80.2) (38.5) (48.7) (12.7) (25.8) Tax paid (344.2) (167.7) (691.8) (511.9) (1,176.7)
(109.8) (42.4) (56.1) (42.4) - Dividends paid 7 (0.2) (560.2) (786.5) (560.4) (1,611.9)
300.0 205.6 139.4 82.7 122.9 Net cash from operating activities 1,648.0 1,092.7 1,933.2 2,740.7 4,405.5
Cash flows from investing activities
(282.8) (458.1) (168.3) (188.0) (270.1) Additions to property, plant and equipment (3,614.8) (2,484.0) (2,389.7) (6,098.8) (4,151.1)
Proceeds on disposal of property, plant and
6.8 5.4 3.2 2.5 2.9 equipment 38.3 33.0 44.4 71.3 99.4
Contributions to funds and payment of
(5.1) (8.6) (4.9) (0.2) (8.4) environmental rehabilitation obligation (111.9) (2.6) (71.4) (114.5) (74.7)
(395.2) (2,097.0) (101.2) (2,097.0) - Investment in subsidiaries 8.2 - (27,386.4) (1,500.0) (27,386.4) (5,801.5)
33.7 137.2 - 137.2 - Cash acquired on acquisition of subsidiaries 8.2 - 1,792.2 0.1 1,792.2 494.2
(0.7) (1.0) - (0.5) (0.5) Loan advanced to equity-accounted investee (6.4) (7.1) - (13.5) (10.1)
- 272.9 - 272.9 - Proceeds on disposal of investments - 3,605.3 - 3,605.3 -
- - 0.3 - - Loan repaid by equity-accounted investee - - 5.4 - -
(643.3) (2,149.2) (270.9) (1,873.1) (276.1) Net cash used in investing activities (3,694.8) (24,449.6) (3,911.2) (28,144.4) (9,443.8)
Cash flows from financing activities
- 979.0 - 981.3 (2.3) Net proceeds from rights issue (30.1) 12,962.5 - 12,932.4 -
1,177.1 5,228.7 830.8 4,141.6 1,087.1 Loans raised 11 14,882.8 54,711.0 11,955.0 69,593.8 17,280.5
(806.2) (4,186.3) (679.1) (2,926.4) (1,259.9) Loans repaid 11 (17,061.2) (38,658.3) (9,879.8) (55,719.5) (11,834.7)
370.9 2,021.4 151.7 2,196.5 (175.1) Net cash from financing activities (2,208.5) 29,015.2 2,075.2 26,806.7 5,445.8
27.6 77.8 20.2 406.1 (328.3) Net increase in cash and cash equivalents (4,255.3) 5,658.3 97.2 1,403.0 407.5
Effect of exchange rate fluctuations on cash
(3.1) 18.4 (8.7) 22.7 (4.3) held (205.5) (103.0) - (308.5) (157.0)
Cash and cash equivalents at beginning of the
46.2 70.7 59.2 70.7 499.5 period 6,523.2 967.9 870.7 967.9 717.4
Cash and cash equivalents at end of the
70.7 166.9 70.7 499.5 166.9 period 2,062.4 6,523.2 967.9 2,062.4 967.9
14.68 13.31 13.97 13.21 13.41 Average R/US$ rate
13.69 12.36 13.69 13.06 12.36 Closing R/US$ rate
Notes to the condensed consolidated preliminary financial statements
1. Basis of accounting and preparation
The condensed consolidated preliminary financial statements are prepared in accordance with the requirements of the JSE Listings
Requirements for preliminary reports and the requirements of the Companies Act of South Africa. The JSE Listings Requirements require
preliminary reports to be prepared in accordance with the framework concepts, and the measurements and recognition
requirements of International Financial Reporting Standards (IFRS), and 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 to also, as a minimum, contain information required by IAS 34 Interim Financial Reporting. The accounting
policies applied in the preparation of these condensed consolidated preliminary 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 for the six months and year ended 31 December 2016, and statement of financial
position as at 31 December 2016 and 30 June 2017 have been revised to reflect the adjustment of initial accounting in respect of
the Rustenburg Operations acquired on 19 October 2016. The impact of these adjustments is presented in note 8.1.
The condensed consolidated statement of financial position as at 30 June 2017 has been revised to reflect the adjustment of initial
accounting in respect of Stillwater acquired on 25 April 2017. The impact of these adjustments is presented in note 8.2.
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 reviewed condensed consolidated
financial statements for the year ended 31 December 2016. The condensed consolidated income statement, and statements of
other comprehensive income and cash flows for the six months ended 31 December 2017 have not been reviewed and were
prepared by subtracting the reviewed condensed financial statements for the six months ended 30 June 2017 from the reviewed
condensed consolidated preliminary financial statements for the year ended 31 December 2017.
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 condensed consolidated 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 year ended 31 December 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 Year ended
Unaudited Reviewed Unaudited Reviewed Reviewed
Notes Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Interest charge on:
Borrowings - interest paid (990.6) (1,101.3) (266.4) (2,091.9) (427.5)
- R6.0 billion revolving credit facility (RCF), R4.5 billion Facilities, and other borrowings (Rand Facilities) (280.6) (299.5) (212.9) (580.1) (340.3)
- US$350 million RCF (45.4) (39.2) (53.5) (84.6) (87.2)
- US$1.05 billion Bond (470.6) (7.5) - (478.1) -
- Stillwater Bridge Facility 1 (194.0) (755.1) - (949.1) -
Borrowings - unwinding of amortised cost 11 (181.8) (70.0) (69.0) (251.8) (141.4)
- Burnstone Debt (72.0) (69.6) (68.2) (141.6) (139.4)
- US$1.05 billion Bond (29.3) (0.4) - (29.7) -
- US$450 million Convertible Bond (80.5) - - (80.5) -
- R4.5 billion Facilities - - (0.8) - (2.0)
Environmental rehabilitation obligation 12 (177.8) (179.3) (149.4) (357.1) (291.4)
Occupational healthcare obligation 13 (46.4) - - (46.4) -
Deferred Payment 14.1 (74.1) (74.1) (24.1) (148.2) (24.1)
Other (61.5) (14.9) (9.0) (76.4) (18.7)
Total finance expense (1,532.2) (1,439.6) (517.9) (2,971.8) (903.1)
(1)The interest paid on the Stillwater Bridge Facility includes underwriting fees, commitment fees and interest relating to the facility.
3. (Loss)/gain on financial instruments
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Reviewed
Notes Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Fair value loss on Anglo American Platinum financial assets1 (467.5) - - (467.5) -
Gain/(loss) on the revised cash flow of the Burnstone Debt 11 74.7 107.0 (29.3) 181.7 (29.3)
Fair value gain on derivative financial instrument 115.9 - - 115.9 -
Fair value adjustment of share-based payment obligations2 (171.3) - 104.5 (171.3) (1,076.6)
Loss on the revised cash flow of the Deferred Payment1 14.1 (469.1) - - (469.1) -
Fair value loss on foreign currency hedge (25.1) (337.0) - (362.1) -
Other 89.3 (31.3) 69.0 58.0 73.1
Total (loss)/gain on financial instruments (853.1) (261.3) 144.2 (1,114.4) (1,032.8)
1 In terms of the Rustenburg Operations acquisition the purchase consideration included a deferred payment calculated as 35% of the distributable free cash flow generated by the
Rustenburg Operations over a six year period from 1 January 2017 (Deferred Payment), subject to a minimum payment of R3.0 billion. In addition to the Deferred Payment, should the
Rustenburg Operations generate negative distributable free cash flows in either 2016, 2017 or 2018, Rustenburg Platinum Mines Limited will be required to pay up to R267 million per
annum to ensure that the free cash flow for the relevant year is equal to zero (the Anglo American Platinum financial asset). The Anglo American Platinum financial asset and Deferred
Payment were initially recognised at fair value and at 31 December 2017, the free cash flows were revised resulting in fair value losses of R467.5 million and R469.1 million, respectively.
2 At 31 December 2017, the share-based payment on BEE transaction obligation (which is also related to the Rustenburg Operations acquisition) was remeasured resulting in a fair value
adjustment in profit or loss.
4. Impairments
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Reviewed
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Impairment of property, plant and equipment (1,511.9) (2,791.5) (355.0) (4,303.4) (1,171.7)
Impairment of loan to equity-accounted investee (4.0) (4.5) (5.7) (8.5) (8.1)
Impairment of goodwill (99.1) - (201.3) (99.1) (201.3)
Total impairments (1,615.0) (2,796.0) (562.0) (4,411.0) (1,381.1)
Impairment of West Rand Tailings Retreatment Project (WRTRP) exploration and evaluation assets, and allocated goodwill
On 22 November 2017, Sibanye-Stillwater announced that it has entered into various agreements with DRDGOLD Limited (DRDGOLD)
to exchange selected surface gold processing assets and tailings storage facilities (TSF) for approximately 265 million newly issued
DRDGOLD shares (the DRDGOLD Transaction). Following the implementation of the DRDGOLD Transaction, Sibanye-Stillwater will
retain full ownership of the Cooke and Ezulwini TSFs (of 2.4Moz probable gold reserves and 54.26Mlb probable uranium reserves),
and, as such, retains full exposure to the low uranium price environment without the higher gold price TSF. As a result a decision was
taken during the six months ended 31 December 2017, to impair the WRTRP exploration and evaluation assets, and allocated
goodwill by R1,245.1 million and R99.1 million, respectively. 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 and uranium reserves, and costs to
extract the gold and uranium.
Impairment of De Bron-Merriespruit exploration and evaluation asset
No expenditure on further exploration for and evaluation of the De Bron-Merriespruit mineral resources is budgeted or planned for
2018. As a result a decision was taken to impair the De Bron-Merriespruit exploration and evaluation asset by R227.1 million.
Impairment of Cooke Operations and Beatrix West mining assets
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. Mining and income tax
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed
Unaudited Reviewed Revised Reviewed Revised
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Tax on profit before tax at maximum South African statutory company tax rate 605.5 1,460.8 (1,022.4) 2,066.3 (1,188.5)
Non-deductible finance expense 36.4 (202.2) (36.6) (165.8) (48.7)
Non-deductible impairments (1,053.6) (1.3) 163.7 (1,054.9) (65.6)
Non-deductible transaction costs (35.1) (119.5) (44.0) (154.6) (44.0)
Non-taxable gain on acquisition - - 610.0 - 610.0
Net other non-taxable income and non-deductible expenditure 106.9 (119.3) 40.4 (12.4) 24.5
Change in estimated deferred tax rate1 2,571.1 - (59.8) 2,571.1 (59.8)
Deferred tax assets not recognised 301.0 (604.1) (348.0) (303.1) (430.0)
Mining and income tax 2,532.2 414.4 (696.7) 2,946.6 (1,202.1)
(1) On 22 December 2017, the Tax Cuts and Jobs Act was signed into legislation in the United States. As a result the Stillwater Group's
deferred tax rate changed from 37.69% to 24.23% and a deferred tax benefit of R2,531.5 million (US$204.8 million) was recognised.
6. Earnings per share
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 to reflect the bonus element of the rights issue and the
capitalisation issue.
6.1 Basic earnings per share
Six months ended Year ended
Reviewed Unaudited Reviewed
Unaudited Revised Revised Reviewed Revised
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Ordinary shares in issue ('000) 2,168,721 2,125,844 929,004 2,168,721 929,000
Bonus element of the rights issue ('000) - - 493,645 - 493,645
Bonus element of the capitalisation issue ('000) 86,749 129,272 129,272 86,749 129,272
Adjustment for weighting of ordinary shares in issue ('000) (154) (640,965) (4,625) (321,620) (7,271)
Adjusted weighted average number of shares ('000) 2,255,316 1,614,151 1,547,296 1,933,850 1,544,646
(Loss)/profit attributable to owners of Sibanye-Stillwater (SA rand million) 366.3 (4,803.7) 3,140.3 (4,437.4) 3,473.3
Basic earnings per share (EPS) (cents) 16 (298) 203 (229) 225
6.2 Diluted earnings per share
Six months ended Year ended
Reviewed Unaudited Reviewed
Unaudited Revised Revised Reviewed Revised
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Weighted average number of shares
Adjusted weighted average number of shares ('000) 2,255,316 1,614,151 1,547,296 1,933,850 1,544,646
Ordinary shares that may be issued in the future ('000) - - 2,161 - 2,161
Diluted weighted average number of shares ('000) 2,255,316 1,614,151 1,549,457 1,933,850 1,546,807
Diluted basic EPS (cents) 16 (298) 203 (229) 225
6.3 Headline earnings per share
Figures in million - SA rand Six months ended Year ended
Reviewed Unaudited Reviewed
Unaudited Revised Revised Reviewed Revised
Notes Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
(Loss)/profit attributable to owners of Sibanye-Stillwater 366.3 (4,803.7) 3,140.3 (4,437.4) 3,473.3
Gain on disposal of property, plant and equipment (10.2) (30.5) (42.3) (40.7) (95.4)
Impairments 4 1,615.0 2,796.0 562.0 4,411.0 1,381.1
Gain on acquisition 8.1 - - (2,178.6) - (2,178.6)
Taxation effect of re-measurement items (13.2) (143.6) (87.6) (156.8) (72.7)
Headline earnings 1,957.9 (2,181.8) 1,393.8 (223.9) 2,507.7
Headline EPS (cents) 87 (135) 90 (12) 162
6.4 Diluted headline earnings per share
Six months ended Year ended
Reviewed Unaudited Reviewed
Unaudited Revised Revised Reviewed Revised
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Diluted headline EPS (cents) 87 (135) 90 (12) 162
7. Dividends
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Reviewed
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Dividend declared and paid - 558.2 785.2 558.2 1,610.6
Dividend per share (cents) - 60 85 60 175
Dividend policy
Sibanye-Stillwater's dividend policy is to return at least 25% to 35% of normalised earnings to shareholders and after due consideration
of future requirements the dividend may be increased beyond these levels. Management, therefore, considers normalised earnings
in determining what value will be distributed to shareholders. Management believes normalised earnings provides useful information
to investors regarding the extent to which results of operations may affect shareholder returns. Normalised earnings is defined as
earnings attributable to the owners of Sibanye-Stillwater excluding gains and losses on financial instruments and foreign exchange
differences, impairments, gain on disposal of property, plant and equipment, occupational healthcare expense, restructuring costs,
transactions costs, share-based payment on BEE transaction, gain on acquisition, other business development costs, share of results
of equity-accounted investees, after tax, and changes in estimated deferred tax rate.
Figures in million - SA rand Six months ended Year ended
Reviewed Unaudited Reviewed
Unaudited Revised Revised Reviewed Revised
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
(Loss)/profit attributable to the owners of Sibanye-Stillwater 366.3 (4,803.7) 3,140.3 (4,437.4) 3,473.3
Adjusted for:
Loss on financial instruments 853.1 261.3 (144.2) 1,114.4 1,032.8
(Gain)/loss on foreign exchange differences 42.2 (334.6) (181.7) (292.4) (219.6)
Impairments 1,615.0 2,796.0 562.0 4,411.0 1,381.1
Gain on disposal of property, plant and equipment (10.2) (30.5) (42.3) (40.7) (95.4)
Occupational healthcare expense 29.7 1,077.2 - 1,106.9 -
Restructuring costs 581.8 148.0 148.8 729.8 187.7
Transaction costs 150.5 401.6 43.4 552.1 157.0
Share-based payment on BEE transaction - - 240.3 - 240.3
Gain on acquisition - - (2,178.6) - (2,178.6)
Other 17.3 35.4 40.1 52.7 72.4
Tax effect of the items adjusted above (358.9) (454.5) (63.6) (813.4) (419.4)
Change in estimated deferred tax rate (2,571.1) - 59.8 (2,571.1) 59.8
Share of results of equity-accounted investees after tax (193.5) (98.1) (98.2) (291.6) (13.3)
Normalised earnings1 522.2 (1,001.9) 1,526.1 (479.7) 3,678.1
(1) Normalised earnings is not a measure of performance under IFRS, may not be comparable to similarly titled measures of other companies, and should not be considered
in isolation or as alternatives to profit before tax, profit for the year, cash from operating activities or any other measure of financial performance presented
in accordance with IFRS.
8. Acquisitions
8.1 The Rustenburg Operations acquisition
At 19 October 2016, the purchase price allocation (PPA) was prepared on a provisional basis in accordance with IFRS 3 Business
Combinations. Subsequent to the date the condensed consolidated interim financial statement were authorised for issue, the Group
received new information relating to deferred tax and the effective date valuations that existed at acquisition date and adjustments
were made to the provisional calculation of the fair values resulting an increase of R249.4 million to the net deferred tax liability and
a decrease of R249.4 million to the reported gain on acquisition. According, the PPA has been restated as required by IFRS 3.
The following table summarises the adjustments to the initial accounting:
Figures in million - SA rand
Reviewed
Revised
Consideration 3,118.4
Provisional fair value of identifiable net assets (5,546.4)
Increase in deferred tax liabilities 249.4
Revised gain on acquisition (2,178.6)
8.2 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 eight months ended 31 December 2017, Stillwater contributed revenue of US$688.3 million (R9,161.6 million) and a profit of
US$152.4 million (R2,028.1 million) to the Group's results.
The PPA has been prepared on a provisional basis in accordance with IFRS 3. If new information obtained within one year of the
acquisition date, about facts and circumstances that existed at the acquisition date, identifies adjustments to the below amounts
or any additional provisions that existed at the date of acquisition, then the accounting for the acquisition will be revised.
Subsequent to the date the condensed consolidated interim financial statement were authorised for issue, the Group received new
information relating to exploration and evaluation assets that existed at acquisition date and adjustments were made to the
provisional calculation of the fair values resulting in a decrease of USS$9.4 million (R123.7 million) in the fair value of property, plant
and equipment, a decrease of US$3.6 million (R46.7 million) to the net deferred tax liability, and an increase of US$5.8 million
(R77.0 million) in the reported value of goodwill. Accordingly, the PPA has been restated as required by IFRS 3.
Consideration
The consideration paid is as follows:
Figures in million
Reviewed Reviewed
Note US dollar SA rand
Cash 2,080.7 27,174.5
Liability raised in respect of dissenting shareholders 14 104.5 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 R528.5 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
Reviewed Reviewed
Revised Revised
Note US dollar SA rand
Property, plant and equipment 2,293.2 29,948.6
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 (573.2) (7,486.3)
Other non-current liabilities (19.9) (260.3)
Borrowings 11 (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 1,751.7 22,876.8
The fair value of assets and liabilities excluding property, plant and equipment, inventories and borrowings approximate the 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 8.6% for the Stillwater and East Boulder mines and Columbus
metallurgical complex, and 10.3% for the Blitz project, an average platinum price of US$1,375/oz and an average palladium price of
US$880/oz. The fair value of borrowings (Convertible Debentures) was based on the settlement price.
Goodwill
Goodwill has been calculated as follows:
Figures in million
Reviewed Reviewed
Revised Revised
Note US dollar SA rand
Consideration 2,201.4 28,750.7
Fair value of identifiable net assets (1,751.7) (22,876.8)
Goodwill 9 449.7 5,873.9
The goodwill is attributable to the premium paid, and talent and skills of Stillwater's workforce.
The goodwill has been provisionally allocated to the Stillwater group of cash-generating units. None of the goodwill recognised is
expected to be deducted for tax purposes.
9. Goodwill
Figures in million - SA rand
Reviewed
Reviewed Revised Reviewed
Notes Dec 2017 Jun 2017 Dec 2016
Balance at beginning of the period 936.0 936.0 736.7
Impairment 4 (99.1) - (201.3)
Foreign currency translation (314.8) - -
Goodwill on acquisition of subsidiaries 8.2 5,873.9 5,873.9 400.6
Balance at end of the period 6,396.0 6,809.9 936.0
In line with the accounting policy, the recoverable amount was determined by reference to "fair value less costs to sell" being the
higher of "value in use" and "fair value less cost to sell", based on the cash flows over the life of the cash-generating unit (CGU) and
discounted to present value at an appropriate discount rate.
The Group's estimates and assumptions used in the 31 December 2017 calculation include:
PGM operations Gold operations
Reviewed Reviewed Reviewed Reviewed
Dec 2017 Dec 2016 Dec 2017 Dec 2016
Long-term gold price R/kg 545,000 570,000
14,725 14,270 R/4Eoz Long-term PGM (4E) basket price
1,015 US$/2Eoz Long-term PGM (2E) basket price
15.7 14.5 % Nominal discount rate % 12.1 12.51
6.0 6.0 % Inflation rate % 6.0 6.0
8 - 26 9 - 34 years Life of mine years 12 - 22 7 - 20
(1)Nominal discount rate for WRTRP of 15.1% (2016: 13.5%).
The annual life-of-mine plan that takes into account the following:
- Proved and probable ore reserves of the CGUs;
- Resources are valued using appropriate price assumptions;
- Cash flows are based on the life-of-mine plan; and
- Capital expenditure estimates over the life-of-mine plan.
During the six months ended 31 December 2017, the goodwill allocated to the WRTRP was impaired by R99.1 million (see note 4).
There were no other events or changes in circumstances that suggest that the carrying amount of a CGU may not be recoverable.
The recoverable amounts of the Driefontein, Kloof, Kroondal, Platinum Mile and Rustenburg Operations CGUs are significantly higher
than their carry values, therefore a reasonably possible adverse change in the abovementioned assumptions would not likely result
in an adjustment to the carrying values.
The recoverable amounts of the Beatrix and Stillwater CGUs approximate their carrying values, therefore any reasonably possible
adverse change in the abovementioned assumptions could result in impairment.
10. Equity-accounted investments
The Group holds the following equity-accounted investments:
Figures in million - SA rand
Reviewed Reviewed Reviewed
Dec 2017 Jun 2017 Dec 2016
Mimosa 2,012.9 2,038.8 2,049.3
Rand Refinery 198.4 90.9 72.4
Other equity-accounted investments 32.8 34.3 35.7
Total equity-accounted investments 2,244.1 2,164.0 2,157.4
Mimosa
Sibanye-Stillwater has a 50% interest in Mimosa Investments Limited (Mimosa), which owns and operates the Mimosa mine.
The movement in the equity-accounted investment in Mimosa for the year is as follows:
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Reviewed
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Balance at beginning of the period 2,038.8 2,049.3 2,046.8 2,049.3 -
Share of results of equity-accounted investee after tax 89.9 85.1 143.9 175.0 114.9
Foreign currency translation (115.8) (95.6) (141.4) (211.4) (132.3)
Equity-accounted investment on acquisition of subsidiaries - - - - 2,066.7
Balance at end of the period 2,012.9 2,038.8 2,049.3 2,012.9 2,049.3
11. Borrowings
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Reviewed
Notes Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Balance at beginning of the period 30,208.5 8,973.8 7,028.9 8,973.8 3,803.6
Borrowings acquired on acquisition of subsidiary 8.2 - 5,937.6 - 5,937.6 -
Loans raised 13,586.2 54,711.0 11,955.0 68,297.2 17,280.5
- R6.0 billion RCF - 800.0 5,100.0 800.0 5,100.0
- US$350 million RCF 538.5 492.9 554.0 1,031.4 2,771.5
- Stillwater Bridge Facility - 34,000.3 - 34,000.3 -
- US$1.05 billion Bond - 13,109.5 - 13,109.5 -
- US$450 million Convertible Bond 4,634.5 - - 4,634.5
- Other borrowings 8,413.2 6,308.3 6,301.0 14,721.5 7,472.6
- R4.5 billion Facilities - - - - 1,936.4
Loans repaid (17,061.2) (38,658.3) (9,879.8) (55,719.5) (11,834.7)
- R6.0 billion RCF (363.6) - - (363.6) -
- US$350 million RCF (1,198.2) - (558.3) (1,198.2) (1,211.6)
- Stillwater Bridge Facility (7,564.9) (25,739.1) - (33,304.0) -
- US$1.05 billion Bond - - - -
- Other borrowings (7,934.5) (7,057.8) (6,071.5) (14,992.3) (6,723.1)
- Stillwater Convertible Debentures - (5,861.4) - (5,861.4) -
- R4.5 billion Facilities - - (3,250.0) - (3,900.0)
Unwinding of loans recognised at amortised cost 2 152.1 70.0 69.0 222.1 141.4
Accrued interest 507.8 - - 507.8 -
Accrued interest paid (431.5) - - (431.5) -
(Gain)/loss on revised estimated cash flows 3 (74.7) (107.0) 29.3 (181.7) 29.3
Gain on foreign exchange differences and foreign currency translation (1,237.7) (718.6) (220.8) (1,956.3) (417.2)
Franco-Nevada settlement (non-cash) - - (7.8) - (29.1)
Balance at end of the period 25,649.5 30,208.5 8,973.8 25,649.5 8,973.8
Borrowings consist of:
- R6.0 billion RCF 5,536.4 5,900.0 5,100.0 5,536.4 5,100.0
- US$350 million RCF 1,137.1 1,828.4 1,369.0 1,137.1 1,369.0
- Stillwater Bridge Facility - 7,566.6 - - -
- US$1.05 billion Bond 12,597.7 13,274.6 - 12,597.7 -
- US$450 million Convertible Bond 4,357.1 - - 4,357.1 -
- Burnstone Debt 1,537.5 1,633.7 1,752.6 1,537.5 1,752.6
- Other borrowings 478.7 - 749.5 478.7 749.5
- Franco Nevada liability 1.7 1.8 2.7 1.7 2.7
- Stillwater Convertible Debentures 3.3 3.4 - 3.3 -
Borrowings 25,649.5 30,208.5 8,973.8 25,649.5 8,973.8
Current portion of borrowings (1,657.5) (7,571.8) (752.3) (1,657.5) (752.3)
Non-current borrowings 23,992.0 22,636.7 8,221.5 23,992.0 8,221.5
11.1 US$450 million Convertible Bond
The acquisition of Stillwater was financed by a US$2.65 billion bridge loan (Stillwater Bridge Facility). The Stillwater Bridge Loan was
partially repaid through the US$1 billion rights offer, US$1.05 billion Convertible Bonds and existing cash at Stillwater. The balance was
repaid through the issuance of a US$450 million Convertible Bond. The convertible bond launched and was priced on
19 September 2017.
Terms of US$450 million Convertible Bond
Issue size: US$450 million
Coupon 1.875%
Maturity date: 26 September 2023 (6 years)
Conversion premium: 35%
Reference share price: US$1.2281, being the volume weighted average price of a share on the JSE from launch to pricing on 19 September 2017, converted
at a fixed exchange rate.
Initial conversion price: US$1.6580
Issuer: Sibanye Gold Limited
Guarantors: Stillwater and Kroondal Operations Proprietary Limited (together, the Guarantors), 100% subsidiaries of Sibanye Gold Limited.
The US$450 million Convertible Bond has two components. The option component is recognised as derivative liabilities, measured at
fair value, with changes in fair value recorded in profit or loss and reported separately in the statement of financial position. The bond
component is recognised for as liabilities and measured at amortised cost using the effective interest rate.
The derivative financial instrument was initially recognised at fair value using option pricing methodologies. The balance of the
proceeds received was recognised as a financial liability at amortised cost (i.e. borrowings). Subsequent to initial recognition, the
derivative financial instrument is revalued at every reporting period with gains and losses accounted for as part of gain/loss on
financial instruments in profit or loss, and the financial liability increases at every reporting period by an effective interest charge that
is expensed in profit or loss.
11.2 Capital management
Debt maturity
The following are contractually due, undiscounted cash flows resulting from maturities of financial liabilities,
excluding interest payments:
Figures in million - SA rand
Between
Within one one and Five years
Total year four years and later
R6.0 billion RCF 5,536.4 s - 5,536.4 -
US$350 million RCF 1,137.1 s1,137.1 - -
US$1.05 billion Bond 12,978.0 s - - 12,978.0
US$450 million Convertible Bond 5,562.0 s - - 5,562.0
Burnstone Debt 2,102.4 s - 96.2 2,006.2
Other borrowings 478.7 s 478.7 - -
Franco Nevada liability 1.7 s 1.7 - -
Stillwater Convertible Debentures 3.3 s 3.3 - -
Net debt to Adjusted EBITDA
Figures in million - SA rand
Reviewed Reviewed
Reviewed Revised Revised
Dec 2017 Jun 2017 Dec 2016
Borrowings1 25,205.5 28,574.8 7,221.2
Cash and cash equivalents2 2,029.8 6,481.8 928.4
Net debt3 23,175.7 22,093.0 6,292.8
Adjusted EBITDA4 9,045.1 8,052.4 10,270.4
Net debt to adjusted EBITDA (ratio)5 2.6 2.7 0.6
(1) Borrowings are only those borrowings that have recourse to Sibanye. Borrowings, therefore, exclude the Burnstone Debt and include the derivative financial instrument.
(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 and include the derivative financial instrument. Net debt excludes Burnstone cash and cash equivalents.
(4) The adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) calculation included is based on the formula included in the facility agreements for compliance
with the debt covenant formula. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted 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.
(5) Net debt to adjusted EBITDA ratio is defined as net debt as at the end of a reporting period divided by EBITDA of the 12 months ended on the same reporting date.
Adjusted EBITDA reconciliation
Figures in million - SA rand Six months ended Year ended
Reviewed Reviewed
Unaudited Revised Unaudited Reviewed Revised
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
(Loss)/profit before royalties and tax (1,937.0) (5,044.2) 3,952.4 (6,981.2) 4,811.4
Adjusted for:
Amortisation and depreciation 3,203.0 2,496.7 2,096.5 5,699.7 4,041.9
Interest income (220.7) (194.8) (169.6) (415.5) (331.4)
Finance expense 1,532.2 1,439.6 517.9 2,971.8 903.1
Share-based payments 115.7 116.2 358.8 231.9 496.2
Loss/(gain) on financial instruments 853.1 261.3 (144.2) 1,114.4 1,032.8
(Gain)/loss on foreign exchange differences 42.2 (334.6) (181.7) (292.4) (219.6)
Share of results of equity-accounted investees after tax (193.5) (98.1) (98.2) (291.6) (13.3)
Change in estimate of environmental rehabilitation obligation, and right of recovery receivable and
payable 193.6 55.3 97.5 248.9 97.5
Gain on disposal of property, plant and equipment (10.2) (30.5) (42.3) (40.7) (95.4)
Impairments 1,615.0 2,796.0 562.0 4,411.0 1,381.1
Occupational healthcare expense 29.7 1,077.2 - 1,106.9 -
Restructuring costs 581.8 148.0 148.8 729.8 187.7
Transaction costs 150.5 401.6 43.4 552.1 157.0
Gain on acquisition - - (2,178.6) - (2,178.6)
Adjusted EBITDA 5,955.4 3,089.7 4,962.7 9,045.1 10,270.4
12. Environmental rehabilitation obligation
Figures in million - SA rand Six months ended Year ended
Note Unaudited Reviewed Unaudited Reviewed Reviewed
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Balance at beginning of the period 4,529.0 3,982.2 3,340.4 3,982.2 2,411.0
Interest charge 2 177.8 179.3 149.4 357.1 291.4
Change in estimates (177.7) - 315.1 (177.7) 472.5
Charge to profit or loss 166.6 55.4 97.5 222.0 97.5
Foreign currency translation (17.0) - - (17.0) -
Environmental rehabilitation obligation on acquisition of subsidiaries - 312.1 79.8 312.1 709.8
Balance at end of the period 4,678.7 4,529.0 3,982.2 4,678.7 3,982.2
13. Occupational healthcare obligation
As a result of the ongoing work of the Occupational Lung Disease Working Group (the Working Group) and engagements with
affected stakeholders since 31 March 2017, at 30 June 2017 it became 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 provided an amount of R1,077.2 million for this obligation in the statement of financial position as at
30 June 2017. The estimated costs were reviewed at 31 December 2017 and discounted using a risk-free rate. A change in estimate
of R29.7 million was recognised in profit or loss. 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.
Figures in million - SA rand Six months ended Year ended
Note Unaudited Reviewed Unaudited Reviewed Reviewed
Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Balance at beginning of the period 1,077.2 - - - -
Interest charge 2 46.4 - - 46.4 -
Charge to profit or loss 29.7 1,077.2 - 1,106.9 -
Balance at end of the period 1,153.3 1,077.2 - 1,153.3 -
Current portion of occupational healthcare obligation (0.8) (89.3) - (0.8)
Non-current portion of occupational healthcare obligation 1,152.5 987.9 - 1,152.5 -
14. Other payables
Figures in million - SA rand
Reviewed Reviewed Reviewed
Note Dec 2017 Jun 2017 Dec 2016
Dissenting shareholders 1,349.7 1,378.8 -
Deferred Payment 14.1 2,194.7 1,651.5 1,577.4
Other non-current payables 257.9 221.7 36.3
Other payables 3,802.3 3,252.0 1,613.7
Current portion of borrowings (41.9) - -
Non-current borrowings 3,760.4 3,252.0 1,613.7
14.1 Deferred Payment
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Reviewed
Note Dec 2017 Jun 2017 Dec 2016 Dec 2017 Dec 2016
Balance at beginning of the period 1,651.5 1,577.4 - 1,577.4 -
Interest charge 2 74.1 74.1 24.1 148.2 24.1
Loss on revised estimated cash flows 3 469.1 - - 469.1
Deferred Payment on acquisition of subsidiaries - - 1,553.3 - 1,553.3
Balance at end of the period 2,194.7 1,651.5 1,577.4 2,194.7 1,577.4
15. Fair value of financial assets and financial liabilities, and risk management
15.1 Measurement of fair value
The fair value of financial instruments is estimated based on ruling market prices, volatilities and interest rates at 31 December 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
Reviewed Reviewed Reviewed
Dec 2017 Jun 2017 Dec 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 3,117.6 374.8 - 2,735.1 489.9 - 2,630.6 469.9 -
- Trade receivables - PGM sales 4,512.4 - - 3,896.7 - - 4,001.9 - -
Financial liabilities measured at fair value -
- Derivative financial instrument1 - 1,093.5 - - - - - - -
(1) The derivative financial instrument is recognised at fair value and valued using option pricing methodologies based on observable quoted inputs.
15.2 Risk management activities
Liquidity risk: working capital and going concern assessment
For the year ended 31 December 2017, the Group incurred a loss of R4,433.1 million (31 December 2016: profit of R3,042.7 million). As
at 31 December 2017 the Group's current assets exceeded its current liabilities by R3,566.7 million (31 December 2016:
R1,446.6 million) and during the year then ended the Group generated cash from operating activities of R2,740.7 million
(31 December 2016: R4,405.5 million).
Gold and PGMs are sold in US dollars, and while the majority of the Group's gold and a substantial amount of the Group's costs are
denominated in Rand, the Group's results and financial condition may be impacted if there is a material change in the value of the rand.
Subsequent to year end, the average rand/US dollar exchange rate strengthened to R11.68/US$ from the average exchange rate
of R13.31/US$ for the year ended 31 December 2017. Management assessed this situation and performed various sensitivities relating
to the rand/US dollar exchange rate and the impact on the rand commodity prices. Should a strong rand/US dollar exchange rate
persist without a corresponding gain in commodity prices, the Group will evaluate additional funding possibilities available to the
Group, which may include, among others, streaming facilities, reduction of capital expenditure, sale of assets and as a last resort
equity raises.
The Group currently has committed unutilised debt facilities of R3,653 million at 31 December 2017. In order to maintain adequate
liquidity, the refinancing and upsizing of the US$350 million RCF, maturing on 23 August 2018, to approximately US$600 million, has
been launched. A term sheet has been executed with the two Bank coordinators who have each received credit approval for a
US$100 million participation. The Group anticipates closing of the syndication during March 2018. The terms and conditions largely
mirror the current US dollar RCF which is US$92 million drawn as at 31 December 2017. On successful completion an additional
US$250 million financing will be available.
Sibanye-Stillwater's leverage ratio (or net debt to adjusted EBITDA) at 31 December 2017 is 2.6. Utilising the committed unutilised debt
facilities above, will impact on the leverage ratio. The borrowing facilities, permit a leverage ratio of 3.5:1 through to
31 December 2018, and 2.5:1 thereafter, calculated on a quarterly basis. 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 directors believe that the cash generated by its operations, cash on hand, the committed unutilised debt facilities as well as the
additional funding possibilities will enable the Group to continue to meet its obligations as they fall due. The condensed consolidated
preliminary financial statements for the year ended 31 December 2017, therefore, have been prepared on a going concern basis.
16. 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.
On 29 August 2017, the three actions were consolidated into a single action, captioned In re Appraisal of Stillwater Mining Company,
Case No. 2017-0385-JTL. 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. The current case scheduling order provides for a four-
day trial, commencing on 10 December 2018. The parties are currently engaged in discovery. Because the appraisal action is 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 liability relating to the shares for which appraisal has been
demanded (see note 8.2 and 14); however, fair value may ultimately be determined by the court to be equal to, or different from,
the merger price.
17. Events after the reporting period
There were no events that could have a material impact on the financial results of the Group after 31 December 2017, other than
those discussed below.
DRDGOLD Transaction
On 22 November 2017, Sibanye-Stillwater announced the DRDGOLD Transaction. Sibanye has received approval for the DRDGOLD
Transaction from the South African competition authorities in accordance with the Competition Act. The implementation of the
DRGDOLD Transaction is still subject to the approval of the DRDGOLD Transaction and passing of the required resolutions by
DRDGOLD shareholders.
Lonmin Acquisition
On 14 December 2017, Sibanye-Stillwater announced that it had reached agreement with Lonmin Plc (Lonmin) on the terms of a
recommended all-share offer to acquire the entire issued and to be issued ordinary share capital of Lonmin (the Lonmin Acquisition).
It is proposed that the Lonmin Acquisition will be effected by means of a scheme of arrangement between Lonmin and the Lonmin
Shareholders under Part 26 of the UK Companies Act. Under the terms of the Lonmin Acquisition, each Lonmin Shareholder will be
entitled to receive: 0.967 new Sibanye-Stillwater shares for each Lonmin share. The Lonmin Acquisition is subject to the fulfilment of
conditions precedent and is expected to complete during the second half of 2018.
18. Review report of the independent auditor
These condensed consolidated preliminary financial statements for the year ended 31 December 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 reporting
Figures in million
For the six months ended 31 Dec 2017 (Unaudited)
GROUP SA REGION US REGION
Total SA Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
SA rand Total Region gold fontein Kloof Beatrix Cooke porate PGM Kroondal Mile Mimosa burg porate Stillwater
Revenue 26,692.4 19,477.2 12,197.9 4,055.6 4,834.8 2,521.1 787.1 (0.7) 7,279.3 1,557.5 110.0 881.8 5,611.8 (881.8) 7,215.2
Underground 21,464.9 17,728.0 11,042.9 3,610.7 4,388.2 2,473.3 571.4 (0.7) 6,685.1 1,557.5 - 881.8 5,127.6 (881.8) 3,736.9
Surface 1,749.2 1,749.2 1,155.0 444.9 446.6 47.8 215.7 - 594.2 - 110.0 - 484.2 - -
Recycling 3,478.3 - - - - - - - - - - - - - 3,478.3
Cost of sales, before
amortisation and
depreciation (20,496.0) (15,056.7) (8,956.5) (3,098.4) (2,945.2) (1,997.7) (915.2) - (6,100.2) (1,230.3) (70.3) (589.6) (4,799.6) 589.6 (5,439.3)
Underground (15,717.7) (13,630.9) (8,020.7) (2,740.6) (2,599.7) (1,973.9) (706.5) - (5,610.2) (1,230.3) - (589.6) (4,379.9) 589.6 (2,086.8)
Surface (1,425.8) (1,425.8) (935.8) (357.8) (345.5) (23.8) (208.7) - (490.0) - (70.3) - (419.7) - -
Recycling (3,352.5) - - - - - - - - - - - - - (3,352.5)
Amortisation and
depreciation (3,203.0) (2,084.6) (1,651.0) (594.5) (728.4) (301.7) (14.6) (11.8) (433.6) (124.4) (1.2) (113.9) (286.1) 92.0 (1,118.4)
Interest income 220.7 184.0 96.9 42.4 42.9 4.8 (7.5) 14.3 87.1 33.7 0.7 0.1 51.8 0.8 36.7
Finance expense (1,532.2) (250.8) (73.5) (106.6) (121.1) (61.5) (37.3) 253.0 (177.3) (51.2) - (4.8) (126.2) 4.9 (1,281.4)
Share-based payments (115.7) (112.5) (112.5) (0.3) - - - (112.2) - - - - - - (3.2)
Net other costs (1,136.4) (1,110.7) 53.8 7.6 0.3 (11.7) (149.3) 206.9 (1,164.5) (195.6) 5.4 (13.1) (929.4) (31.8) (25.7)
Non-recurring items (2,366.8) (2,300.2) (2,233.1) (70.8) (47.0) (68.5) (1,467.9) (578.9) (67.1) (1.0) - - (62.1) (4.0) (66.6)
Royalties (225.6) (225.6) (184.5) (31.1) (119.8) (24.4) (9.2) - (41.1) (3.1) - (26.3) (38.0) 26.3 -
Current taxation (465.3) (341.4) (322.4) (9.4) (260.9) (11.1) - (41.0) (19.0) - (8.8) (43.2) (10.0) 43.0 (123.9)
Deferred taxation 2,997.5 95.1 90.5 (5.8) 24.2 54.5 - 17.6 4.6 3.3 (7.1) (1.1) 2.3 7.2 2,902.4
Loss for the period 369.6 (1,726.2) (1,094.4) 188.7 679.8 103.8 (1,813.9) (252.8) (631.8) (11.1) 28.7 89.9 (585.5) (153.8) 2,095.8
Attributable to: `
Owners of Sibanye-Stillwater 366.3 (1,729.5) (1,095.3) 188.7 679.8 103.8 (1,813.9) (253.7) (634.2) (11.1) 26.3 89.9 (585.5) (153.8) 2,095.8
Non-controlling interests 3.3 3.3 0.9 - - - - 0.9 2.4 - 2.4 - - - -
Adjusted EBITDA 5,955.4 4,180.9 3,052.5 942.1 1,868.1 515.5 (254.0) (19.2) 1,128.4 308.1 44.6 285.0 776.0 (285.3) 1,774.5
Sustaining capital
expenditure (816.6) (636.4) (355.2) (150.6) (158.4) (36.5) - (9.7) (281.2) (111.6) (5.6) (117.9) (164.0) 117.9 (180.2)
Ore reserve development (1,789.9) (1,365.8) (1,134.4) (456.7) (449.1) (228.6) - - (231.4) - - - (231.4) - (424.1)
Growth projects (1,008.5) (288.7) (286.4) (13.9) (86.1) (0.3) - (186.1) (2.3) - (2.3) - - - (719.8)
Total capital expenditure (3,615.0) (2,290.9) (1,776.0) (621.2) (693.6) (265.4) - (195.8) (514.9) (111.6) (7.9) (117.9) (395.4) 117.9 (1,324.1)
For the six months ended 31 Dec 2017 (Unaudited)
GROUP SA REGION US REGION
Total SA Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
US dollars1 Total Region gold fontein Kloof Beatrix Cooke porate PGM Kroondal Mile Mimosa burg porate Stillwater
Revenue 1,994.5 1,453.5 909.9 302.4 360.9 188.0 58.7 (0.1) 543.6 116.3 8.2 65.8 419.1 (65.8) 541.0
Underground 1,603.4 1,323.1 823.8 269.2 327.6 184.5 42.6 (0.1) 499.3 116.3 - 65.8 383.0 (65.8) 280.3
Surface 130.4 130.4 86.1 33.2 33.3 3.5 16.1 - 44.3 - 8.2 - 36.1 - -
Recycling 260.7 - - - - - - - - - - - - - 260.7
Cost of sales, before
amortisation and
depreciation (1,530.8) (1,123.0) (667.8) (231.1) (219.7) (148.9) (68.1) - (455.2) (91.8) (5.3) (44.0) (358.2) 44.1 (407.8)
Underground (1,173.1) (1,016.6) (598.0) (204.4) (193.9) (147.2) (52.5) - (418.6) (91.8) - (44.0) (326.9) 44.1 (156.5)
Surface (106.4) (106.4) (69.8) (26.7) (25.8) (1.7) (15.6) - (36.6) - (5.3) - (31.3) - -
Recycling (251.3) - - - - - - - - - - - - - (251.3)
Amortisation and
depreciation (239.2) (155.4) (122.9) (44.3) (54.3) (22.4) (1.0) (0.9) (32.5) (9.3) (0.1) (8.5) (21.4) 6.8 (83.8)
Interest income 16.5 13.7 7.1 3.1 3.2 0.4 (0.6) 1.0 6.6 2.5 0.1 - 3.9 0.1 2.8
Finance expense (114.3) (18.2) (5.0) (7.9) (9.0) (4.5) (2.9) 19.3 (13.2) (3.8) - (0.4) (9.4) 0.4 (96.1)
Share-based payments (8.6) (8.3) (8.3) - - - - (8.3) - - - - - - (0.3)
Net other costs (85.2) (83.2) 4.0 0.6 (0.1) (0.8) (11.3) 15.6 (87.2) (14.7) 0.5 (0.9) (69.6) (2.5) (2.0)
Non-recurring items (175.3) (170.3) (165.3) (5.3) (3.5) (4.8) (109.0) (42.7) (5.0) (0.1) - - (4.6) (0.3) (5.0)
Royalties (16.8) (16.8) (13.6) (2.3) (8.9) (1.8) (0.6) - (3.2) (0.2) - (1.9) (3.0) 1.9 -
Current taxation (35.0) (25.7) (24.1) (0.7) (19.5) (0.8) - (3.1) (1.6) - (0.7) (3.3) (0.8) 3.2 (9.3)
Deferred taxation 225.0 6.9 6.5 (0.4) 1.8 3.9 - 1.2 0.4 0.2 (0.5) (0.1) 0.2 0.6 218.1
Loss for the period 30.8 (126.8) (79.5) 14.1 50.9 8.3 (134.8) (18.0) (47.3) (0.9) 2.2 6.7 (43.8) (11.5) 157.6
Attributable to: - - - -
Owners of Sibanye-Stillwater 30.6 (127.0) (79.6) 14.1 50.9 8.3 (134.8) (18.1) (47.4) (0.9) 2.1 6.7 (43.8) (11.5) 157.6
Non-controlling interests 0.2 0.2 0.1 - - - - 0.1 0.1 - 0.1 - - - -
Adjusted EBITDA 445.7 312.6 228.0 70.3 139.6 38.5 (18.9) (1.5) 84.6 23.1 3.4 21.3 58.1 (21.3) 133.1
Sustaining capital
expenditure (61.1) (47.6) (26.7) (11.3) (11.9) (2.7) - (0.8) (20.9) (8.3) (0.4) (8.8) (12.2) 8.8 (13.5)
Ore reserve development (133.6) (101.8) (84.6) (34.1) (33.5) (17.0) - - (17.2) - - - (17.2) - (31.8)
Growth projects (75.5) (21.6) (21.4) (1.0) (6.5) - - (13.9) (0.2) - (0.2) - - - (53.9)
Total capital expenditure (270.2) (171.0) (132.7) (46.4) (51.9) (19.7) - (14.7) (38.3) (8.3) (0.6) (8.8) (29.4) 8.8 (99.2)
(1)The average exchange rate for the six months ended 31 December 2017 was R13.41/US$.
Figures in million
For the six months ended 30 Jun 2017 (Reviewed) (Revised)(1)
GROUP SA REGION US REGION(2)
Total SA Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
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
Cost of sales, before
amortisation and depreciation (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)
Amortisation and depreciation (2,496.7) (2,183.7) (1,856.5) (532.0) (676.1) (394.5) (241.8) (12.1) (327.2) (114.6) (1.4) (97.8) (228.6) 115.2 (313.0)
Interest income 194.8 179.7 108.8 35.2 28.2 13.6 20.0 11.8 70.9 23.3 1.4 8.7 44.8 (7.3) 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) (39.5) - (5.2) (118.7) 5.2 (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 (20.8) (17.3) 36.3 (5.5) 28.7 (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) (28.1) 2.8 (1.7) 10.4 (3.4) 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) (51.8) 9.6 85.1 (57.5) (11.3) (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) (51.8) 8.8 85.1 (57.5) (11.3) (67.7)
Non-controlling interests 1.0 1.0 0.2 - - - - 0.2 0.8 - 0.8 - - - -
Adjusted EBITDA 3,089.7 2,721.6 2,256.0 898.9 1,176.4 394.5 (273.4) 59.6 465.6 122.8 7.1 236.4 336.9 (237.6) 368.1
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 Jun 2017 (Reviewed) (Revised)(1)
GROUP SA REGION US REGION(2)
Total SA Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
US dollars(3) 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
Cost of sales, before
amortisation and depreciation (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)
Amortisation and depreciation (189.0) (165.3) (140.6) (40.3) (51.2) (29.9) (18.3) (0.9) (24.7) (8.7) (0.1) (7.4) (17.3) 8.8 (23.7)
Interest income 14.7 13.6 8.2 2.7 2.1 1.0 1.5 0.9 5.4 1.8 0.1 0.7 3.4 (0.6) 1.1
Finance expense (109.0) (95.9) (83.9) (8.7) (9.5) (5.1) (2.9) (57.7) (12.0) (3.0) - (0.4) (9.0) 0.4 (13.1)
Share-based payments (8.8) (8.7) (8.7) (0.2) (0.1) (0.1) - (8.3) - - - - - - (0.1)
Net other costs (2.1) (1.8) (3.1) (1.2) (1.0) (2.8) (12.8) 14.7 1.3 (1.6) (1.4) 2.6 (0.5) 2.2 (0.3)
Non-recurring items (332.5) (332.2) (325.7) (0.3) (0.3) (45.9) (166.3) (112.9) (6.5) (0.6) - - (5.5) (0.4) (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) (2.1) 0.2 (0.1) 0.8 (0.3) 1.1
Loss for the period (363.7) (358.6) (356.5) 17.0 21.0 (39.6) (211.0) (143.9) (2.1) (3.9) 0.7 6.4 (4.4) (0.9) (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) (3.9) 0.6 6.4 (4.4) (0.9) (5.1)
Non-controlling interests 0.1 0.1 - - - - - - 0.1 - 0.1 - - - -
Adjusted EBITDA 233.9 206.0 170.8 68.0 89.1 29.9 (20.7) 4.5 35.2 9.3 0.5 17.9 25.5 (18.0) 27.9
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) Subsequent to the successful integration of the US PGM operations, management has included the corporate and reconciling items directly attributable to the SA PGM operations in the
respective operating segments, in line with how the information from these segments is reviewed by and reported to the Executive Committee. The comparative segment reporting for
the six months ended 30 June 2017 has been revised to conform to the current presentation.
(2) The US PGM operations' results for the six months ended 30 June 2017 includes Stillwater for two months since acquisition.
(3) The average exchange rate for the six months ended 30 June 2017 was R13.21/US$.
Figures in million
For the six months ended 31 Dec 2016 (Unaudited) (Revised)(1)
Drie- Cor- Total SA Platinum Rusten- Cor-
SA rand Group Total SA gold fontein Kloof Beatrix Cooke porate PGM(2) 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 -
Cost of sales, before amortisation
and depreciation (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) -
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
Interest income 169.6 144.5 34.6 30.6 16.8 15.9 46.6 25.1 23.8 (9.3) - 8.2 2.4
Finance expense (517.9) (452.5) (72.5) (85.5) (39.4) (35.8) (219.3) (65.4) (39.1) - (7.7) (26.2) 7.6
Share-based payments (358.8) (118.5) (5.6) (4.3) (2.4) - (106.2) (240.3) - - - - (240.3)
Net other costs 150.6 94.1 (0.7) (5.7) (18.7) (110.0) 229.2 56.5 9.8 (0.4) 189.3 (92.2) (50.0)
Non-recurring items 1,466.7 (633.4) (15.9) (14.1) (15.0) (603.5) 15.1 2,100.1 (0.3) - - 2,105.2 (4.8)
Royalties (301.1) (265.3) (102.8) (94.4) (60.9) (7.2) - (35.8) (7.4) - (55.8) (28.3) 55.7
Current taxation (618.1) (617.7) (269.3) (213.7) (137.5) (0.3) 3.1 (0.4) - - (22.8) - 22.4
Deferred taxation (78.6) (148.6) (51.2) (142.8) 10.3 42.9 (7.8) 70.0 12.4 (11.3) 10.6 68.1 (9.8)
Profit for the period 2,954.6 912.0 847.8 755.8 358.7 (962.4) (87.9) 2,042.6 120.6 18.1 143.9 2,049.7 (289.7)
Attributable to:
Owners of Sibanye-Stillwater 3,140.3 1,100.0 847.8 755.8 358.7 (773.5) (88.8) 2,040.3 120.6 15.8 143.9 2,049.7 (289.7)
Non-controlling interests (185.7) (188.0) - - - (188.9) 0.9 2.3 - 2.3 - - -
Adjusted EBITDA 4,962.7 4,673.5 1,827.7 1,886.6 999.8 (2.5) (38.1) 289.2 202.1 39.5 378.6 76.7 (407.7)
Sustaining capital expenditure (676.4) (417.6) (147.0) (175.3) (52.8) (27.1) (15.4) (258.8) (108.5) (0.5) (99.1) (148.7) 98.0
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 (2,389.7) (2,130.9) (583.4) (764.4) (339.2) (136.0) (307.9) (258.8) (108.5) (0.5) (99.1) (148.7) 98.0
For the six months ended 31 Dec 2016 (Unaudited) (Revised)(1)
Drie- Cor- Total SA Platinum Rusten- Cor-
US dollar(3) Group Total SA gold fontein Kloof Beatrix Cooke porate PGM(2) Kroondal Mile Mimosa burg porate
Revenue 1,172.0 962.0 331.4 315.8 210.5 107.0 (2.6) 210.0 91.6 7.0 56.0 112.9 (57.5)
Underground 1,052.7 862.7 288.5 285.1 201.5 90.3 (2.6) 190.0 91.6 - 56.0 99.9 (57.5)
Surface 119.3 99.3 42.9 30.7 9.0 16.7 - 20.0 - 7.0 - 13.0 -
Cost of sales, before amortisation
and depreciation (805.3) (616.2) (199.3) (179.7) (136.8) (100.5) - (189.1) (77.0) (4.3) (43.1) (107.8) 43.1
Underground (730.6) (554.5) (172.4) (163.5) (130.6) (88.0) - (176.2) (77.0) - (43.1) (99.2) 43.1
Surface (74.7) (61.8) (26.9) (16.2) (6.2) (12.5) - (12.9) - (4.3) - (8.6) -
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
Interest income 12.1 10.3 2.4 2.1 1.2 1.1 3.5 1.8 1.7 (0.6) - 0.6 0.1
Finance expense (36.5) (31.9) (5.1) (6.0) (2.8) (2.6) (15.4) (4.6) (2.8) - (0.6) (1.8) 0.6
Share-based payments (24.9) (8.5) (0.4) (0.3) (0.2) - (7.6) (16.4) - - - - (16.4)
Net other costs 6.2 2.7 (0.7) (1.1) (1.7) (7.5) 13.7 3.5 0.7 - 12.9 (6.3) (3.8)
Non-recurring items 97.0 (46.1) (1.1) (0.8) (1.1) (43.7) 0.6 143.1 - - - 143.4 (0.3)
Royalties (21.3) (18.8) (7.4) (6.7) (4.2) (0.5) - (2.5) (0.5) - (3.8) (2.0) 3.8
Current taxation (43.6) (43.5) (19.0) (15.2) (9.6) - 0.3 (0.1) - - (1.6) - 1.5
Deferred taxation (5.4) (10.1) (3.5) (9.7) 0.7 2.9 (0.5) 4.7 0.9 (0.8) 0.7 4.6 (0.7)
Profit for the period 201.5 63.0 60.4 54.1 25.7 (68.6) (8.6) 138.5 8.3 1.2 9.7 139.6 (20.3)
Attributable to:
Owners of Sibanye-Stillwater 214.9 76.6 60.4 54.1 25.7 (54.9) (8.7) 138.3 8.3 1.0 9.7 139.6 (20.3)
Non-controlling interests (13.4) (13.6) - - - (13.7) 0.1 0.2 - 0.2 - - -
Adjusted EBITDA 355.2 334.5 130.8 135.0 71.6 (0.2) (2.7) 20.7 14.5 2.8 27.1 5.5 (29.2)
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) Subsequent to the successful integration of the US PGM operations, management has included the corporate and reconciling items directly attributable to the SA PGM operations in the
respective operating segments, in line with how the information from these segments is reviewed by and reported to the Executive Committee. The comparative segment reporting for
the six months ended 31 December 2016 has been revised to conform to the current presentation.
(2) The SA PGM operations' results for the six months ended 31 December 2016 includes the Rustenburg Operations for two months since acquisition.
(3) The average exchange rate for the six months ended 31 December 2016 was R13.97/US$.
Figures in million
For the year ended 31 Dec 2017 (Reviewed)
GROUP SA REGION US REGION(1)
Total SA Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
SA rand Total Region gold fontein Kloof Beatrix Cooke porate PGM Kroondal Mile Mimosa burg porate Stillwater
Revenue 45,911.6 36,750.0 23,473.6 8,076.9 8,845.1 4,875.8 1,676.5 (0.7) 13,276.4 2,861.5 194.1 1,687.7 10,220.8 (1,687.7) 9,161.6
Underground 37,790.3 33,168.0 21,143.2 7,148.1 7,985.3 4,753.1 1,257.4 (0.7) 12,024.8 2,861.5 - 1,687.7 9,163.3 (1,687.7) 4,622.3
Surface 3,582.0 3,582.0 2,330.4 928.8 859.8 122.7 419.1 - 1,251.6 - 194.1 - 1,057.5 - -
Recycling 4,539.3 - - - - - - - - - - - - - 4,539.3
Cost of sales, before
amortisation and
depreciation (36,482.7) (29,471.0) (17,879.2) (6,203.5) (5,762.7) (3,952.5) (1,960.5) - (11,591.8) (2,395.9) (129.8) (1,200.5) (9,066.1) 1,200.5 (7,011.7)
Underground (29,345.3) (26,710.5) (16,032.2) (5,488.9) (5,109.5) (3,852.1) (1,581.7) - (10,678.3) (2,395.9) - (1,200.5) (8,282.4) 1,200.5 (2,634.8)
Surface (2,760.5) (2,760.5) (1,847.0) (714.6) (653.2) (100.4) (378.8) - (913.5) - (129.8) - (783.7) - -
Recycling (4,376.9) - - - - - - - - - - - - - (4,376.9)
Amortisation and
depreciation (5,699.7) (4,268.3) (3,507.5) (1,126.5) (1,404.5) (696.2) (256.4) (23.9) (760.8) (239.0) (2.6) (211.7) (514.7) 207.2 (1,431.4)
Interest income 415.5 363.7 205.7 77.6 71.1 18.4 12.5 26.1 158.0 57.0 2.1 8.8 96.6 (6.5) 51.8
Finance expense (2,971.8) (1,517.7) (1,182.2) (220.9) (246.9) (128.4) (76.7) (509.3) (335.5) (90.7) - (10.0) (244.9) 10.1 (1,454.1)
Share-based payments (231.9) (227.0) (227.0) (2.8) (1.8) (1.3) - (221.1) - - - - - - (4.9)
Net other costs (1,163.1) (1,132.7) 10.4 (8.5) (14.5) (48.0) (320.3) 401.7 (1,143.1) (216.4) (11.9) 23.2 (934.9) (3.1) (30.4)
Non-recurring items (6,759.1) (6,688.2) (6,535.8) (74.9) (50.4) (675.3) (3,664.7) (2,070.5) (152.4) (9.0) - - (134.9) (8.5) (70.9)
Royalties (398.5) (398.5) (325.3) (77.8) (189.3) (44.5) (13.7) - (73.2) (5.6) - (60.4) (67.6) 60.4 -
Current taxation (504.2) (405.3) (385.4) (14.8) (350.1) (12.4) - (8.1) (19.9) - (9.3) (59.3) (10.0) 58.7 (98.9)
Deferred taxation 3,450.8 533.8 549.2 (12.0) 61.4 245.3 1.5 253.0 (15.4) (24.8) (4.3) (2.8) 12.7 3.8 2,917.0
Loss for the period (4,433.1) (6,461.2) (5,803.5) 412.8 957.4 (419.1) (4,601.8) (2,152.8) (657.7) (62.9) 38.3 175.0 (643.0) (165.1) 2,028.1
Attributable to: -
Owners of Sibanye-Stillwater (4,437.4) (6,465.5) (5,804.6) 412.8 957.4 (419.1) (4,601.8) (2,153.9) (660.9) (62.9) 35.1 175.0 (643.0) (165.1) 2,028.1
Non-controlling interests 4.3 4.3 1.1 - - - - 1.1 3.2 - 3.2 - - - -
Adjusted EBITDA 9,045.1 6,902.5 5,308.5 1,841.0 3,044.5 910.0 (527.4) 40.4 1,594.0 430.9 51.7 521.4 1,112.9 (522.9) 2,142.6
Sustaining capital
expenditure (1,325.6) (1,098.7) (531.1) (235.0) (210.2) (63.1) (8.5) (14.3) (567.6) (190.5) (11.0) (222.5) (366.1) 222.5 (226.9)
Ore reserve development (3,291.6) (2,753.0) (2,288.0) (876.1) (876.2) (482.0) (53.7) - (465.0) - - - (465.0) - (538.6)
Growth projects (1,481.6) (593.3) (591.0) (44.4) (147.1) (0.5) (11.7) (387.3) (2.3) - (2.3) - - - (888.3)
Total capital expenditure (6,098.8) (4,445.0) (3,410.1) (1,155.5) (1,233.5) (545.6) (73.9) (401.6) (1,034.9) (190.5) (13.3) (222.5) (831.1) 222.5 (1,653.8)
For the year ended 31 Dec 2017 (Reviewed)
GROUP SA REGION US REGION(1)
Total SA Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
US dollars(2) Total Region gold fontein Kloof Beatrix Cooke porate PGM Kroondal Mile Mimosa burg porate Stillwater
Revenue 3,449.4 2,761.1 1,763.5 606.8 664.5 366.3 126.0 (0.1) 997.6 215.0 14.6 126.8 768.0 (126.8) 688.3
Underground 2,839.2 2,491.9 1,588.4 537.0 599.9 357.1 94.5 (0.1) 903.5 215.0 - 126.8 688.5 (126.8) 347.3
Surface 269.2 269.2 175.1 69.8 64.6 9.2 31.5 - 94.1 - 14.6 - 79.5 - -
Recycling 341.0 - - - - - - - - - - - - - 341.0
Cost of sales, before
amortisation and
depreciation (2,741.0) (2,214.2) (1,343.3) (466.1) (433.0) (296.9) (147.3) - (870.9) (180.0) (9.8) (90.2) (681.2) 90.3 (526.8)
Underground (2,204.7) (2,006.7) (1,204.5) (412.4) (383.9) (289.4) (118.8) - (802.2) (180.0) - (90.2) (622.3) 90.3 (198.0)
Surface (207.5) (207.5) (138.8) (53.7) (49.1) (7.5) (28.5) - (68.7) - (9.8) - (58.9) - -
Recycling (328.8) - - - - - - - - - - - - - (328.8)
Amortisation and
depreciation (428.2) (320.7) (263.5) (84.6) (105.5) (52.3) (19.3) (1.8) (57.2) (18.0) (0.2) (15.9) (38.7) 15.6 (107.5)
Interest income 31.2 27.3 15.3 5.8 5.3 1.4 0.9 1.9 12.0 4.3 0.2 0.7 7.3 (0.5) 3.9
Finance expense (223.3) (114.1) (88.9) (16.6) (18.5) (9.6) (5.8) (38.4) (25.2) (6.8) - (0.8) (18.4) 0.8 (109.2)
Share-based payments (17.4) (17.0) (17.0) (0.2) (0.1) (0.1) - (16.6) - - - - - - (0.4)
Net other costs (87.3) (85.0) n 0.9 (0.6) (1.1) (3.6) (24.1) 30.3 (85.9) (16.3) (0.9) 1.7 (70.1) (0.3) (2.3)
Non-recurring items (507.8) (502.5) (491.0) (5.6) (3.8) (50.7) (275.3) (155.6) (11.5) (0.7) - - (10.1) (0.7) (5.3)
Royalties (29.9) (29.9) (24.3) (5.8) (14.2) (3.3) (1.0) - (5.6) (0.4) - (4.5) (5.2) 4.5 -
Current taxation (37.9) (30.5) (28.9) (1.1) (26.3) (0.9) - (0.6) (1.6) - (0.7) (4.5) (0.8) 4.4 (7.4)
Deferred taxation 259.3 40.1 41.2 (0.9) 4.6 18.4 0.1 19.0 (1.1) (1.9) (0.3) (0.2) 1.0 0.3 219.2
Loss for the period (332.9) (485.4) (436.0) 31.1 71.9 (31.3) (345.8) (161.9) (49.4) (4.8) 2.9 13.1 (48.2) (12.4) 152.4
Attributable to:
Owners of Sibanye-Stillwater (333.2) (485.7) (436.1) 31.1 71.9 (31.3) (345.8) (162.0) (49.6) (4.8) 2.7 13.1 (48.2) (12.4) 152.4
Non-controlling interests 0.3 0.3 0.1 - - - - 0.1 0.2 - 0.2 - - - -
Adjusted EBITDA 679.6 518.6 398.8 138.3 228.7 68.4 (39.6) 3.0 119.8 32.4 3.9 39.2 83.6 (39.3) 161.0
Sustaining capital
expenditure (99.5) (82.5) (39.9) (17.7) (15.8) (4.7) (0.6) (1.1) (42.6) (14.3) (0.8) (16.7) (27.5) 16.7 (17.0)
Ore reserve development (247.2) (206.7) (171.8) (65.8) (65.8) (36.2) (4.0) - (34.9) - - - (34.9) - (40.5)
Growth projects (111.4) (44.7) (44.5) (3.3) (11.1) - (0.9) (29.2) (0.2) - (0.2) - - - (66.7)
Total capital expenditure (458.1) (333.9) (256.2) (86.8) (92.7) (40.9) (5.5) (30.3) (77.7) (14.3) (1.0) (16.7) (62.4) 16.7 (124.2)
(1) The US PGM operations' results for the year ended 31 December 2017 include Stillwater for eight months since acquisition.
(2) The average exchange rate for the year ended 31 December 2017 was R13.31/US$.
For the year ended 31 Dec 2016 (Reviewed) (Revised)(1)
GROUP
Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
SA rand Total gold fontein Kloof Beatrix Cooke porate PGM(2) Kroondal Mile Mimosa burg porate
Revenue 31,240.7 27,501.3 9,401.1 8,890.9 5,883.9 3,362.2 (36.8) 3,739.4 1,973.3 131.1 1,223.2 1,656.0 (1,244.2)
Underground 28,026.5 24,608.4 8,105.3 8,012.6 5,626.9 2,900.4 (36.8) 3,418.1 1,973.3 - 1,223.2 1,465.8 (1,244.2)
Surface 3,214.2 2,892.9 1,295.8 878.3 257.0 461.8 - 321.3 - 131.1 - 190.2 -
Recycling - - - - - - - - - - - - -
Cost of sales, before
amortisation and depreciation (20,709.1) (17,346.0) (5,566.6) (5,041.0) (3,753.4) (2,985.0) - (3,363.1) (1,689.8) (90.8) (969.0) (1,582.5) 969.0
Underground (18,800.6) (15,655.1) (4,852.1) (4,609.4) (3,567.4) (2,626.2) - (3,145.5) (1,689.8) - (969.0) (1,455.7) 969.0
Surface (1,908.5) (1,690.9) (714.5) (431.6) (186.0) (358.8) - (217.6) - (90.8) - (126.8) -
Recycling - - - - - - - - - - - - -
Amortisation and depreciation (4,041.9) (3,814.7) (1,012.9) (1,190.7) (818.0) (770.8) (22.3) (227.2) (162.9) (1.2) (223.7) (58.6) 219.2
Interest income 331.4 289.6 70.8 62.3 34.1 32.5 89.9 41.8 34.6 (9.0) 0.5 8.2 7.5
Finance expense (903.1) (806.2) (143.1) (156.0) (77.6) (75.8) (353.7) (96.9) (70.6) - (11.2) (26.2) 11.1
Share-based payments (496.2) (255.9) (16.5) (13.7) (9.1) - (216.6) (240.3) - - - - (240.3)
Net other costs (1,158.6) (1,029.3) (226.1) (187.9) (170.5) (115.0) (329.8) (129.3) (1.2) (0.6) 187.7 (92.2) (223.0)
Non-recurring items 548.2 (1,548.5) (20.8) 15.7 (12.6) (1,423.9) (106.9) 2,096.7 (1.3) - - 2,105.2 (7.2)
Royalties (566.6) (528.0) (204.8) (194.3) (113.2) (15.7) - (38.6) (10.2) - (82.9) (28.3) 82.8
Current taxation (1,111.8) (1,111.3) (472.3) (422.0) (223.0) (1.1) 7.1 (0.5) - - (22.8) - 22.3
Deferred taxation (90.3) (164.5) (64.3) (148.5) 19.4 35.3 (6.4) 74.2 16.9 (11.6) 13.1 68.1 (12.3)
Loss for the period 3,042.7 1,186.5 1,744.5 1,614.8 760.0 (1,957.3) (975.5) 1,856.2 88.8 17.9 114.9 2,049.7 (415.1)
Attributable to: -
Owners of Sibanye-Stillwater 3,473.3 1,619.4 1,744.5 1,614.8 760.0 (1,523.5) (976.4) 1,853.9 88.8 15.6 114.9 2,049.7 (415.1)
Non-controlling interests (430.6) (432.9) - - - (433.8) 0.9 2.3 - 2.3 - - -
Adjusted EBITDA 10,270.4 9,920.1 3,782.5 3,800.7 2,085.9 290.1 (39.1) 350.3 262.9 39.6 446.7 76.7 (475.6)
Sustaining capital expenditure (1,010.5) (683.5) (218.5) (261.2) (84.8) (48.9) (70.1) (327.0) (175.8) (1.3) (159.8) (148.7) 158.6
Ore reserve development (2,394.4) (2,394.4) (779.0) (912.9) (542.9) (159.6) - - - - - - -
Growth projects (746.3) (746.3) (54.1) (130.1) (0.7) (40.7) (520.7) - - - - - -
Total capital expenditure (4,151.2) (3,824.2) (1,051.6) (1,304.2) (628.4) (249.2) (590.8) (327.0) (175.8) (1.3) (159.8) (148.7) 158.6
For the year ended 31 Dec 2016 (Reviewed) (Revised)(1)
GROUP
Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
US dollars(3) Total gold fontein Kloof Beatrix Cooke porate PGM(2) Kroondal Mile Mimosa burg porate
Revenue 2,128.1 1,873.4 640.4 605.6 400.8 229.1 (2.5) 254.7 134.4 8.9 83.3 112.9 (84.8)
Underground 1,909.1 1,676.3 552.1 545.8 383.3 197.6 (2.5) 232.8 134.4 - 83.3 99.9 (84.8)
Surface 219.0 197.1 88.3 59.8 17.5 31.5 - 21.9 - 8.9 - 13.0 -
Recycling - - - - - - - - - - - - -
Cost of sales, before
amortisation and depreciation (1,410.7) (1,181.6) (379.2) (343.4) (255.7) (203.3) - (229.1) (115.1) (6.2) (66.0) (107.8) 66.0
Underground (1,280.7) (1,066.4) (330.5) (314.0) (243.0) (178.9) - (214.3) (115.1) - (66.0) (99.2) 66.0
Surface (130.0) (115.2) (48.7) (29.4) (12.7) (24.4) - (14.8) - (6.2) - (8.6) -
Recycling - - - - - - - - - - - - -
Amortisation and depreciation (275.3) (259.8) (69.0) (81.1) (55.7) (52.5) (1.5) (15.5) (11.1) (0.1) (15.2) (4.0) 14.9
Interest income 22.6 19.7 4.8 4.2 2.3 2.2 6.2 2.9 2.4 (0.6) - 0.6 0.5
Finance expense (61.5) (54.9) (9.7) (10.6) (5.3) (5.2) (24.1) (6.6) (4.8) - (0.8) (1.8) 0.8
Share-based payments (33.8) (17.4) (1.1) (0.9) (0.6) - (14.8) (16.4) - - - - (16.4)
Net other costs (78.9) (70.3) (15.4) (12.9) (11.6) (7.8) (22.6) (8.6) - - 12.8 (6.3) (15.1)
Non-recurring items 37.3 (105.5) (1.4) 1.1 (0.9) (97.0) (7.3) 142.8 (0.1) - - 143.4 (0.5)
Royalties (38.6) (35.9) (14.0) (13.2) (7.6) (1.1) - (2.7) (0.7) - (5.6) (2.0) 5.6
Current taxation (75.7) (75.6) (32.2) (28.7) (15.2) (0.1) 0.6 (0.1) - - (1.6) - 1.5
Deferred taxation (6.2) (11.2) (4.4) (10.1) 1.3 2.4 (0.4) 5.0 1.2 (0.8) 0.9 4.6 (0.9)
Loss for the period 207.3 80.9 118.8 110.0 51.8 (133.3) (66.4) 126.4 6.2 1.2 7.8 139.6 (28.4)
Attributable to: -
Owners of Sibanye-Stillwater 236.6 110.4 118.8 110.0 51.8 (103.7) (66.5) 126.2 6.2 1.0 7.8 139.6 (28.4)
Non-controlling interests (29.3) (29.5) - - - (29.6) 0.1 0.2 - 0.2 - - -
Adjusted EBITDA 699.6 675.8 257.7 258.9 142.1 19.8 (2.7) 23.8 17.9 2.7 30.4 5.2 (32.4)
Sustaining capital expenditure (68.9) (46.6) (14.9) (17.8) (5.8) (3.3) (4.8) (22.3) (12.0) (0.1) (10.9) (10.1) 10.8
Ore reserve development (163.1) (163.1) (53.0) (62.2) (37.0) (10.9) - - - - - - -
Growth projects (50.8) (50.8) (3.7) (8.9) - (2.8) (35.4) - - - - - -
Total capital expenditure (282.8) (260.5) (71.6) (88.9) (42.8) (17.0) (40.2) (22.3) (12.0) (0.1) (10.9) (10.1) 10.8
(1) Subsequent to the successful integration of the US PGM operations, management has included the corporate and reconciling items directly attributable to the SA PGM operations in the
respective operating segments, in line with how the information from these segments is reviewed by and reported to the Executive Committee. The comparative segment reporting for
the year ended 31 December 2016 has been revised to conform to the current presentation.
(2) The SA PGM operations' results for the year ended 31 December 2016 include the Rustenburg Operations for two months since acquisition.
(3) The average exchange rate for the year ended 31 December 2017 was R14.38/US$.
ALL-IN COSTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2017, 30 JUNE 2017 AND 31 DECEMBER 2016
SA gold operations
SA REGION
Total SA
gold Driefontein Kloof Beatrix Cooke Corporate
Cost of sales, before amortisation and depreciation(1) Dec 2017 8,956.5 3,098.4 2,945.2 1,997.7 915.2 -
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 -
Royalties Dec 2017 184.5 31.1 119.8 24.4 9.2 -
Jun 2017 140.8 46.7 69.5 20.1 4.5 -
Dec 2016 265.3 102.8 94.4 60.9 7.2 -
Community costs Dec 2017 22.0 3.6 12.1 5.8 0.5 -
Jun 2017 9.1 3.2 3.9 1.5 0.5 -
Dec 2016 60.8 8.5 13.1 23.0 16.2 -
Share-based payments(2) Dec 2017 0.3 0.3 - - - -
Jun 2017 5.6 2.5 1.8 1.3 - -
Dec 2016 12.3 5.6 4.3 2.4 - -
Rehabilitation interest and amortisation(3) Dec 2017 32.0 (20.2) 18.3 11.3 23.5 (0.9)
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
Ore reserve development Dec 2017 1,134.4 456.7 449.1 228.6 - -
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 -
Sustaining capital expenditure Dec 2017 345.5 150.6 158.4 36.5 - -
Jun 2017 171.3 84.4 51.8 26.6 8.5 -
Dec 2016 402.2 147.0 175.3 52.8 27.1 -
Less: By-product credit Dec 2017 (11.4) (3.8) (3.6) (2.7) (1.3) -
Jun 2017 (11.8) (4.5) (2.9) (3.0) (1.4) -
Dec 2016 (15.0) (5.0) (3.8) (4.1) (2.1) -
Total All-in-sustaining cost(4) Dec 2017 10,663.8 3,716.7 3,699.3 2,301.6 947.1 (0.9)
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
Plus: Corporate cost, growth and capital expenditure Dec 2017 410.2 13.8 86.1 2.3 - 308.0
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
Total All-in-cost(4) Dec 2017 11,074.0 3,730.5 3,785.4 2,303.9 947.1 307.1
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
Gold sold kg Dec 2017 22,216 7,400 8,806 4,590 1,420 -
Jun 2017 21,547 7,688 7,660 4,501 1,698 -
Dec 2016 23,676 8,173 7,788 5,197 2,518 -
000'oz Dec 2017 714.2 237.9 283.1 147.6 45.6 -
Jun 2017 692.7 247.2 246.3 144.7 54.5 -
Dec 2016 761.3 262.8 250.4 167.1 81.0 -
All-in-sustaining cost R/kg Dec 2017 480,005 502,257 420,089 501,438 666,972 -
Jun 2017 485,441 474,168 442,650 504,110 678,857 -
Dec 2016 451,352 420,763 426,233 453,454 623,550 -
US$/oz Dec 2017 1,114 1,165 975 1,163 1,548 -
Jun 2017 1,143 1,117 1,043 1,187 1,599 -
Dec 2016 1,005 937 949 1,010 1,388 -
All-in-cost R/kg Dec 2017 498,470 504,122 429,866 501,939 666,972 -
Jun 2017 504,845 478,148 450,614 504,155 685,748 -
Dec 2016 476,774 425,315 438,392 454,320 637,927 -
US$/oz Dec 2017 1,157 1,170 997 1,165 1,548 -
Jun 2017 1,189 1,126 1,061 1,188 1,615 -
Dec 2016 1,062 947 976 1,012 1,420 -
The average exchange rates for the six months ended 31 December 2017, 30 June 2017 and 31 December 2016 were R13.41/US$, R13.21/US$ and R13.97/US$, respectively.
Figures may not add as they are rounded independently.
All-in costs are calculated in accordance with the World Gold Council guidance.
(1) Cost of sales, before amortisation and depreciation includes all mining and processing costs, third party refining costs, corporate general and administrative costs, and permitting costs.
(2) 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.
(3) Rehabilitation include the interest charge related to the environmental rehabilitation obligation and the amortisation of the related capitalised rehabilitation costs. The interest charge
related to the environmental rehabilitation obligation and the amortisation of the capitalised rehabilitation costs reflect the periodic costs of rehabilitation associated with current gold production.
(4) All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed
to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate
and major capital expenditure associated with growth.
SA and US PGM operations
US
GROUP SA REGGION REGION(2)
Total SA
Total PGM(1) Kroondal Mimosa Plat Mile Rustenburg Corporate Stillwater(2)
Cost of sales, before amortisation and depreciation(3) Dec 2017 8,187.0 6,100.2 1,230.3 589.6 70.3 4,799.6 (589.6) 2,086.8
Jun 2017 6,039.6 5,491.6 1,165.6 610.9 59.5 4,266.5 (610.9) 548.0
Dec 2016 2,747.6 2,747.6 1,103.3 617.6 61.8 1,582.5 (617.6) -
Royalties Dec 2017 39.0 39.0 3.1 26.3 - 36.0 (26.4) -
Jun 2017 32.1 32.1 2.5 34.1 - 29.6 (34.1) -
Dec 2016 15.8 15.8 7.5 55.7 - 8.3 (55.7) -
Inventory change Dec 2017 3.9 - - - - - - 3.9
Jun 2017 100.0 - - - - - - 100.0
Dec 2016 - -
Share-based payments(4) Dec 2017 3.2 - - - - - - 3.2
Jun 2017 1.7 - - - - - - 1.7
Dec 2016
Rehabilitation interest and amortisation(5) Dec 2017 (0.1) (5.5) 17.8 2.2 - (23.4) (2.1) 5.4
Jun 2017 39.5 38.5 31.0 2.0 - 7.4 (1.9) 1.0
Dec 2016 48.2 48.2 27.0 2.2 - 22.8 (3.8) -
Ore reserve development Dec 2017 655.5 231.4 - - - 231.4 - 424.1
Jun 2017 348.1 233.6 - - - 233.6 - 114.5
Dec 2016 - - - - - - - -
Sustaining capital expenditure Dec 2017 461.4 281.2 111.6 117.9 5.6 164.0 (117.9) 180.2
Jun 2017 333.1 286.4 78.9 - 5.4 202.1 - 46.7
Dec 2016 258.8 258.8 108.6 99.1 0.3 148.7 (97.9) -
On-mine exploration Dec 2017 - - - - - - - -
Jun 2017 - - - - - - - -
Dec 2016 - -
Less: By-product credit Dec 2017 (1,197.8) (1,009.2) (89.5) (152.4) (6.1) (913.6) 152.4 (188.6)
Jun 2017 (640.4) (590.9) (96.6) (120.8) (4.4) (489.9) 120.8 (49.5)
Dec 2016 (354.5) (354.5) (79.6) (133.7) 1.9 (276.8) 133.7
Total All-in-sustaining cost6 Dec 2017 8,152.1 5,637.1 1,273.3 583.6 69.8 4,294.0 (583.6) 2,515.0
Jun 2017 6,253.7 5,491.3 1,181.4 526.2 60.5 4,249.3 (526.1) 762.4
Dec 2016 2,716.0 2,716.0 1,166.8 640.9 64.0 1,485.5 (641.3) -
Plus: Corporate cost, growth and capital
expenditure Dec 2017 725.6 2.3 - - 2.3 - - 723.3
Jun 2017 176.2 - - - - - - 176.2
Dec 2016 240.4 240.4 - - - - 240.4 -
Total All-in-cost(6) Dec 2017 8,877.7 5,639.4 1,273.3 583.6 72.1 4,294.0 (583.6) 3,238.3
Jun 2017 6,429.9 5,491.3 1,181.4 526.2 60.5 4,249.3 (526.1) 938.6
Dec 2016 2,956.4 2,956.4 1,166.8 640.9 64.0 1,485.5 (400.9) -
PGM production 4Eoz - 2Eoz Dec 2017 886,266 603,635 126,607 63,274 10,545 403,209 - 282,631
Jun 2017 684,437 590,712 114,619 60,879 8,898 406,316 - 93,725
Dec 2016 327,989 327,989 117,520 61,585 11,098 137,786 - -
kg Dec 2017 27,566 18,775 3,938 1,968 328 12,541 - 8,791
Jun 2017 21,288 18,373 3,565 1,894 277 12,638 - 2,915
Dec 2016 10,202 10,202 3,655 1,916 345 4,286 - -
All-in-sustaining cost R/4Eoz - R/2Eoz Dec 2017 9,905 10,432 10,057 9,223 6,619 10,650 - 8,899
Jun 2017 10,029 10,364 10,307 8,643 6,799 10,458 - 8,134
Dec 2016 10,195 10,195 9,928 10,406 5,769 10,781 - -
US$/4Eoz -
US$/2Eoz Dec 2017 739 778 750 688 494 794 - 660
Jun 2017 759 785 781 655 515 792 - 622
Dec 2016 730 730 711 745 413 772 - -
All-in-cost R/4Eoz - R/2Eoz Dec 2017 10,787 10,436 10,057 9,223 6,837 10,650 - 11,458
Jun 2017 10,312 10,364 10,307 8,643 6,799 10,458 - 10,014
Dec 2016 11,097 11,097 9,928 10,406 5,769 10,781 - -
US$/4Eoz -
US$/2Eoz Dec 2017 805 779 750 688 510 794 - 845
Jun 2017 781 785 781 655 515 792 - 765
Dec 2016 794 794 711 745 413 772 - -
Average exchange rates for the six months ended 31 December 2017, 30 June 2017 and 31 December 2016 were R13.41/US$, R13.21/US$ and R13.97/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.
(2) The US PGM operations' results for the six months ended 30 June 2017 include Stillwater for the two months since acquisition. The US PGM operations' underground production is converted
to metric tonnes and kilograms, and performance is translated into SA rand. In addition to the US PGM operations' underground production, the operation treats various recycling
material which is excluded from the 2E PGM production, All-in sustaining cost and All-in cost statistics shown.
All-in costs are calculated in accordance with the World Gold Council guidance
(3) Cost of sales, before amortisation and depreciation includes all mining and processing costs, third party refining costs, corporate general and administrative costs, and permitting costs.
(4) 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.
(5) Rehabilitation include the interest charge related to the environmental rehabilitation obligation and the amortisation of the related capitalised rehabilitation costs. The interest charge
related to the environmental rehabilitation obligation and the amortisation of the capitalised rehabilitation costs reflect the periodic costs of rehabilitation associated with current gold production.
(6) All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed
to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate
and major capital expenditure associated with growth.
SALIENT FEATURES AND COST BENCHMARKS FOR THE YEAR ENDED 31 DECEMBER 2017 AND
31 DECEMEBER 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 Dec 2017 19,030 7,575 11,455 2,137 3,905 2,177 3,574 2,737 778 524 3,198
Dec 2016 20,181 8,084 12,097 2,055 3,916 2,009 2,667 2,862 1,471 1,158 4,043
Yield g/t Dec 2017 2.29 5.19 0.38 6.21 0.45 6.81 0.45 3.24 0.30 4.46 0.24
Dec 2016 2.33 5.21 0.41 6.77 0.56 6.82 0.56 3.35 0.30 4.19 0.20
Gold produced kg Dec 2017 43,634 39,285 4,349 13,262 1,742 14,826 1,606 8,859 232 2,338 769
Dec 2016 47,034 42,078 4,956 13,920 2,210 13,704 1,506 9,601 440 4,853 800
000'oz Dec 2017 1,402.9 1,263.1 139.8 426.4 56.0 476.7 51.6 284.8 7.5 75.2 24.7
Dec 2016 1,512.2 1,352.9 159.3 447.6 71.1 440.6 48.4 308.7 14.1 156.0 25.7
Gold sold kg Dec 2017 43,763 39,403 4,360 13,346 1,742 14,860 1,606 8,859 232 2,338 780
Dec 2016 46,905 41,960 4,945 13,836 2,210 13,670 1,506 9,601 440 4,853 789
000'oz Dec 2017 1,407.1 1,266.9 140.2 429.1 56.0 477.8 51.6 284.8 7.5 75.2 25.1
Dec 2016 1,508.0 1,349.0 159.0 444.8 71.1 439.5 48.4 308.7 14.1 156.0 25.4
Price and costs
Gold price received R/kg Dec 2017 536,378 535,319 537,167 536,333 537,684
Dec 2016 586,319 585,884 585,853 585,997 595,923
US$/oz Dec 2017 1,254 1,251 1,256 1,254 1,257
Dec 2016 1,242 1,242 1,242 1,242 1,263
Operating cost(1) R/t Dec 2017 937 2,111 161 2,556 183 2,342 183 1,407 129 3,019 117
Dec 2016 862 1,941 142 2,374 182 2,300 162 1,246 126 2,268 90
US$/t Dec 2017 70 159 12 192 14 176 14 106 10 227 9
Dec 2016 59 132 10 162 12 157 11 85 9 155 6
R/kg Dec 2017 408,773 407,132 423,592 411,838 410,218 343,896 406,725 434,823 432,759 676,518 486,346
Dec 2016 369,707 372,955 342,131 350,517 323,258 337,150 286,587 371,565 422,727 541,150 454,500
US$/oz Dec 2017 956 952 990 963 959 804 951 1,017 1,012 1,582 1,137
Dec 2016 784 790 725 743 685 715 607 788 896 1,147 963
Adjusted EBITDA margin2% Dec 2017 23 23 34 19 (31)
Dec 2016 36 40 43 35 9
All-in sustaining cost(3) R/kg Dec 2017 482,693 487,951 430,572 502,761 673,445
Dec 2016 450,152 421,501 427,036 452,754 588,745
US$/oz Dec 2017 1,128 1,141 1,007 1,175 1,574
Dec 2016 954 893 905 960 1,248
All-in cost(3) R/kg Dec 2017 501,620 490,893 439,506 503,036 677,197
Dec 2016 472,585 424,872 435,609 453,232 595,959
US$/oz Dec 2017 1,173 1,148 1,027 1,176 1,583
Dec 2016 1,002 901 923 961 1,263
Capital expenditure
Ore reserve
development Rm Dec 2017 2,287.9 876.1 876.2 482.0 53.6
Dec 2016 2,394.4 779.0 912.9 542.9 159.6
Sustaining capital Dec 2017 531.1 235.0 210.2 63.1 8.5
Dec 2016 683.5 218.5 261.2 84.8 48.9
Corporate and projects(4) Dec 2017 564.5 44.4 147.1 0.5 11.7
Dec 2016 746.3 54.1 130.1 0.7 40.7
Total capital
expenditure Rm Dec 2017 3,410.1 1,155.5 1,233.5 545.6 73.9
Dec 2016 3,824.2 1,051.6 1,304.2 628.4 249.2
US$m Dec 2017 256.2 86.8 92.7 40.9 5.5
Dec 2016 260.5 71.6 88.9 42.8 17.0
Average exchange rates for the year ended 31 December 2017 and 31 December 2016 were R13.31/US$ and R14.68/US$, respectively.
Figures may not add as they are rounded independently.
(1) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation in a period by the tonnes milled/treated in the same period, and
operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation in a period by the gold produced in the same period.
(2) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
(3) All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise
earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital
expenditure associated with growth. All-in sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) are calculated by dividing the All-in sustaining cost and All-in cost,
respectively, in a period by the total gold sold in the same period.
(4) Corporate project expenditure for the year ended 31 December 2017 and 31 December 2016 was R401.6 million (US$30.3 million) and R590.8 million (US$40.2 million), respectively, the majority of which
related to the Burnstone project.
SA and US PGM operations
GROUP SA REGION US REGION
Total US PGM
Total SA PGM(1) Kroondal Mimosa Plat Mile Rustenburg Stillwater(2)
Total SA
and US
PGM Under- Under- Under-
Attributable operations Total ground Surface Attributable Attributable Surface ground Surface ground(2)
Production
Tonnes milled/treated 000't Dec 2017 27,051 26,196 12,261 13,935 3,778 1,385 8,050 7,098 5,885 855
Dec 2016 11,612 11,612 4,949 6,663 2,733 1,012 5,669 1,204 994
Plant head grade g/t Dec 2017 2.50 2.09 3.30 1.02 2.42 3.58 0.65 3.70 1.52 15.01
Dec 2016 1.72 1.72 2.99 0.78 2.48 3.57 0.65 3.65 1.53
Plant recoveries % Dec 2017 72.37 68.06 83.42 24.25 81.91 77.87 11.62 84.99 31.58 91.0
Dec 2016 65.45 65.45 81.76 19.11 81.73 78.44 11.54 84.54 37.42
Yield g/t Dec 2017 1.81 1.42 2.75 0.25 1.99 2.79 0.08 3.15 0.48 13.69
Dec 2016 1.13 1.13 2.44 0.15 2.03 2.80 0.08 3.09 0.57
PGM production(3) 4Eoz - 2Eoz Dec 2017 1,570,704 1,194,348 1,083,902 110,446 241,225 124,153 19,443 718,524 91,003 376,356
Dec 2016 420,763 420,763 388,774 31,989 178,227 91,076 13,673 119,471 18,316
PGM sold 4Eoz - 2Eoz Dec 2017 1,549,615 1,194,348 1,083,902 110,446 241,225 124,153 19,443 718,524 91,003 355,267
Dec 2016 420,763 420,763 388,774 31,989 178,227 91,076 13,673 119,471 18,316
Price and costs(4)
Average PGM basket price(5) R/4Eoz - R/2Eoz Dec 2017 12,477 12,534 12,564 12,572 12,679 12,548 12,255 12,330
Dec 2016 12,209 12,209 12,409 12,206 12,497 11,870 12,263
US$/4Eoz Dec 2017 938 942 944 945 953 943 921 927
Dec 2016 832 832 846 832 852 809 836
Operating cost(6) R/t Dec 2017 554 467 982 66 634 867 16 1,167 133 3,081
Dec 2016 373 373 832 33 619 958 16 1,209 128
US$/t Dec 2017 42 35 74 5 48 65 1 88 10 232
Dec 2016 25 25 57 2 42 65 1 82 9
R/4Eoz - R/2Eoz Dec 2017 8,013 10,831 11,126 8,271 9,932 9,670 6,676 11,527 8,612 7,001
Dec 2016 7,993 7,993 - - 9,481 10,639 6,641 11,485
US$/4Eoz - US$/2Eoz Dec 2017 602 814 836 621 747 727 502 866 647 526
Dec 2016 545 545 - - 646 725 453 783 -
Adjusted EBITDA margin(7) % Dec 2017 12 15 31 27 11 23
Dec 2016 9 13 37 30 5
All-in sustaining cost(8) R/4Eoz - R/2Eoz Dec 2017 9,959 10,399 10,176 9,781 6,696 10,554 8,707
Dec 2016 10,342 10,342 10,264 11,222 6,947 10,780
US$/4Eoz - US$/2Eoz Dec 2017 748 782 765 735 503 793 651
Dec 2016 705 705 699 765 473 735
All-in cost8 R/4Eoz - R/2Eoz Dec 2017 10,582 10,401 10,176 9,781 6,815 10,554 11,097
Dec 2016 10,342 10,342 10,264 11,222 6,947 10,780
US$/4Eoz - US$/2Eoz Dec 2017 795 782 765 735 512 793 821
Dec 2016 705 705 699 765 473 735
Capital expenditure
Ore reserve development Rm Dec 2017 1,003.6 465.0 - - - 465.0 538.6 538.6
Dec 2016 - - - - - - -
Sustaining capital Dec 2017 572.0 567.6 190.5 222.5 11.0 366.1 226.9 226.9
Dec 2016 327.0 325.7 175.8 159.8 1.3 148.7 -
Corporate and projects Dec 2017 890.6 2.3 - - 2.3 - 888.3 888.3
Dec 2016 1.3 1.3 - - - - -
Total capital expenditure Rm Dec 2017 2,466.2 1,034.9 190.5 222.5 13.3 831.1 1,653.8 1,653.8
Dec 2016 327.0 327.0 175.8 159.8 1.3 148.7 -
US$m Dec 2017 201.9 77.7 14.3 16.7 1.0 62.4 124.2 124.2
Dec 2016 22.3 22.3 12.0 10.9 0.1 10.1 -
Average exchange rates for the year ended 31 December 2017 and 31 December 2016 were R13.31/US$ and R14.68/US$, respectively.
Figures may not add as they are rounded independently.
(1) The SA PGM operations' results for the six months ended December 2016 include the Rustenburg Operations for the two months since acquisition.
(2) The US PGM operations' results for the six months ended 30 June 2017 are for two months since acquisition. The US PGM operations' underground production is converted to metric tonnes
and kilograms, and performance is translated into SA rand. In addition to the US PGM operations' underground production, the operation treats recycling material which is excluded
from the statistics shown, except for adjusted EBITDA margin and is detailed in the PGM recycling table below.
(3) Production per product � see prill split in the table below.
(4) The Group and tal SA PGM operations' unit cost benchmarks exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales.
(5) The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment.
(6) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation in a period by the tonnes milled/treated in the same period, and
operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation in a period by the gold produced in the same period.
(7) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
(8) All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise
earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital
expenditure associated with growth. All-in sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in cost,
respectively, in a period by the total 4E/2E PGM production in the same period.
Mining - Prill split excluding Recycling operations Recycling Operation
GROUP SA REGION US REGION US REGION
Year ended Dec 2017 Dec 2017 Dec 2016 Dec 2017 Dec 2016 Unit 8 months ended
4Eoz / 2Eoz % 4Eoz % 4Eoz % 2Eoz % 2Eoz % Dec 2017
Platinum 780,194 50% 694,956 58% 238,662 57% 85,238 23% Average catalyst fed/day Tonne 24.2
Palladium 663,335 42% 372,217 31% 136,156 32% 291,118 77% Total processed Tonne 5,933
Rhodium 100,165 6% 100,165 8% 35,582 8% Tolled Tonne 869
Gold 27,010 2% 27,010 2% 10,363 2% Purchased Tonne 5,063
PGM production 1,570,704 100% 1,194,348 100% 420,763 100% 376,356 100% PGM fed Troy oz 517,148
Ruthenium 156,211 156,211 55,358 PGM sold Troy oz 377,793
Iridium 36,002 36,002 13,164 PGM tolled returned Troy oz 108,728
Total 1,762,917 1,386,561 489,285 376,356
SALIENT FEATURES AND COST BENCHMARKS FOR THE QUARTERS ENDED 31 DECEMBER 2017 AND
30 SEPTEMBER 2017
SA gold operations
SA REGION
Total SA gold 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 Dec 2017 4,241 1,737 2,504 519 973 527 942 647 226 44 363
Sep 2017 4,924 2,007 2,917 551 1,090 574 933 725 78 157 816
Yield g/t Dec 2017 2.51 5.51 0.42 6.32 0.39 7.31 0.45 3.29 0.30 7.27 0.53
Sep 2017 2.35 5.25 0.36 6.00 0.40 7.21 0.42 3.28 0.27 4.52 0.24
Gold produced kg Dec 2017 10,640 9,578 1,062 3,279 377 3,853 426 2,126 67 320 192
Sep 2017 11,576 10,529 1,047 3,306 438 4,137 390 2,376 21 710 198
000'oz Dec 2017 342.2 308.0 34.2 105.4 12.1 123.9 13.7 68.4 2.2 10.3 6.2
Sep 2017 372.2 338.5 33.7 106.3 14.1 133.0 12.5 76.4 0.7 22.8 6.4
Gold sold kg Dec 2017 10,640 9,578 1,062 3,279 377 3,853 426 2,126 67 320 192
Sep 2017 11,576 10,529 1,047 3,306 438 4,137 390 2,376 21 710 198
000'oz Dec 2017 342.2 308.0 34.2 105.4 12.1 123.9 13.7 68.4 2.2 10.3 6.2
Sep 2017 372.2 338.5 33.7 106.3 14.1 133.0 12.5 76.4 0.7 22.8 6.4
Price and costs
Gold price received R/kg Dec 2017 556,297 556,072 556,041 555,221 566,211
Sep 2017 542,407 540,251 542,412 543,763 547,687
US$/oz Dec 2017 1,269 1,269 1,269 1,267 1,292
Sep 2017 1,280 1,275 1,280 1,284 1,293
Operating cost(1) R/t Dec 2017 987 2,151 179 2,475 171 2,388 182 1,462 57 5,650 265
Sep 2017 969 2,134 167 2,643 175 2,337 186 1,418 141 2,917 138
US$/t Dec 2017 72 158 13 182 13 175 13 107 4 414 19
Sep 2017 74 162 13 201 13 177 14 108 11 221 10
R/kg Dec 2017 393,289 390,175 421,375 391,705 442,175 326,629 403,286 444,779 191,045 776,875 501,042
Sep 2017 412,215 406,838 466,285 440,442 436,073 324,196 445,385 432,786 523,810 645,070 568,182
US$/oz Dec 2017 897 890 961 894 1,009 745 920 1,015 436 1,772 1,143
Sep 2017 973 960 1,101 1,040 1,029 765 1,051 1,022 1,236 1,523 1,341
All-in sustaining cost(2) R/kg Dec 2017 472,293 481,318 420,776 504,378 704,102
Sep 2017 487,068 522,703 419,395 498,748 646,035
US$/oz Dec 2017 1,078 1,098 960 1,151 1,606
Sep 2017 1,150 1,234 990 1,177 1,525
All-in cost(2) R/kg Dec 2017 493,459 481,647 434,798 504,651 704,102
Sep 2017 503,041 526,068 425,160 499,458 646,035
US$/oz Dec 2017 1,126 1,099 992 1,151 1,606
Sep 2017 1,187 1,242 1,004 1,179 1,525
Capital expenditure
Ore reserve
development Rm Dec 2017 537.8 214.5 211.4 111.9 -
Sep 2017 596.6 242.2 237.7 116.7 -
Sustaining capital Dec 2017 205.9 92.1 93.4 20.4 -
Sep 2017 139.6 58.5 65.0 16.1 -
Corporate and projects(3) Dec 2017 137.8 1.3 60.0 0.3 -
Sep 2017 131.8 12.6 26.1 - -
Total capital
expenditure Rm Dec 2017 881.6 307.9 364.8 132.6 -
Sep 2017 867.9 313.3 328.8 132.8 -
US$m Dec 2017 64.8 22.6 26.9 9.6 -
Sep 2017 65.9 23.8 25.0 10.1 -
Average exchange rates for the quarters ended 31 December 2017 and 30 September 2017 were R13.63/US$ and R13.18/US$, respectively.
Figures may not add as they are rounded independently.
(1) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation in a period by the tonnes milled/treated in the same period, and
operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation in a period by the gold produced in the same period.
(2) All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise
earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital
expenditure associated with growth. All-in sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) are calculated by dividing the All-in sustaining cost and All-in cost,
respectively, in a period by the total gold sold in the same period,
(3) Corporate project expenditure for the quarters ended 31 December 2017and 30 September 2017 was R76.3 million (US$5.7 million) and R93.0 million (US$7.0 million), respectively, the majority
of which related to the Burnstone project.
SA and US PGM operations
GROUP SA REGION US REGION
Total US
PGM
Total SA PGM(1) Kroondal Mimosa Plat Mile Rustenburg Stillwater(2)
Total SA
and US
PGM Under- Under- Under-
Attributable operations Total ground Surface Attributable Attributable Surface ground Surface ground(2)
Production
Tonnes milled/treated 000't Dec 2017 6,269 5,943 3,047 2,896 988 345 1,655 1,714 1,241 326
Sep 2017 7,223 6,914 3,209 3,705 978 359 2,202 1,872 1,503 309
Plant head grade g/t Dec 2017 2.90 2.21 3.31 1.06 2.50 3.58 0.67 3.73 1.57 15.39
Sep 2017 2.56 2.01 3.26 0.92 2.39 3.59 0.60 3.64 1.39 14.86
Plant recoveries % Dec 2017 76.08 70.34 83.33 27.45 81.92 78.04 15.60 84.90 34.22 90.6
Sep 2017 74.43 68.68 84.11 21.43 81.85 78.19 11.70 86.00 27.57 92.00
Yield g/t Dec 2017 2.21 1.56 2.76 0.29 2.05 2.79 0.10 3.17 0.54 14.03
Sep 2017 1.90 1.38 2.74 0.20 1.96 2.80 0.07 3.14 0.38 13.65
PGM production(3) 4Eoz - 2Eoz Dec 2017 444,498 297,452 270,467 26,985 64,974 30,940 5,574 174,553 21,411 147,046
Sep 2017 441,769 306,184 282,666 23,518 61,633 32,334 4,971 188,699 18,547 135,585
PGM sold 4Eoz - 2Eoz Dec 2017 439,093 297,452 270,467 26,985 64,974 30,940 5,574 174,553 21,411 141,641
Sep 2017 444,645 306,184 282,666 23,518 61,633 32,334 4,971 188,699 18,547 138,461
Price and costs(4)
Average PGM basket price(5) R/4Eoz - R/2Eoz Dec 2017 13,511 13,594 13,599 13,551 13,677 13,586 13,666 13,569 13,522 13,360
Sep 2017 12,385 12,551 12,550 12,571 12,520 12,650 12,666 12,560 12,545 12,047
US$/4Eoz Dec 2017 991 997 997 994 1,003 997 1,002 995 992 980
Sep 2017 940 953 953 954 950 960 961 954 953 914
Operating cost(6) R/t Dec 2017 698 549 1,049 82 626 929 22 1,292 162 3,269
Sep 2017 590 462 974 68 626 750 15 1,156 145 3,305
US$/t Dec 2017 51 40 77 6 46 68 2 95 12 240
Sep 2017 45 35 74 5 48 57 1 88 11 251
R/4Eoz - R/2Eoz Dec 2017 7,426 11,523 11,829 8,801 9,515 10,362 6,512 12,691 9,397 7,239
Sep 2017 7,399 11,062 11,092 10,741 9,931 8,319 6,860 11,472 11,781 7,541
US$/4Eoz - US$/2Eoz Dec 2017 545 845 868 646 698 760 478 931 689 531
Sep 2017 562 840 842 816 754 632 521 871 895 573
All-in sustaining cost(7) R/4Eoz - R/2Eoz Dec 2017 9,935 10,641 9,933 9,916 6,206 11,001 8,656
Sep 2017 9,876 10,229 10,188 8,559 7,081 10,317 9,162
US$/4Eoz - US$/2Eoz Dec 2017 729 781 729 727 455 807 629
Sep 2017 749 777 773 650 537 782 695
All-in cost(7) R/4Eoz - R/2Eoz Dec 2017 10,798 10,650 9,933 9,916 6,619 11,001 11,065
Sep 2017 10,778 10,229 10,188 8,559 7,081 10,317 11,885
US$/4Eoz - US$/2Eoz Dec 2017 792 781 729 727 486 807 804
Sep 2017 818 777 773 650 537 782 902
Capital expenditure
Ore reserve development Rm Dec 2017 329.6 110.7 - - - 110.7 218.9
Sep 2017 120.7 120.7 - - - 120.7 205.2
Sustaining capital Dec 2017 283.5 199.0 71.0 64.3 1.8 126.2 84.5
Sep 2017 82.2 82.2 40.6 53.6 3.8 37.8 95.7
Corporate and projects Dec 2017 355.6 2.3 - - 2.3 - 353.3
Sep 2017 - - - - - - 366.5
Total capital expenditure Rm Dec 2017 968.7 312.0 71.0 64.3 4.1 236.9 656.7
Sep 2017 870.3 202.9 40.6 53.6 3.8 158.5 667.4
US$m Dec 2017 71.7 22.9 5.2 4.7 0.3 17.4 48.8
Sep 2017 66.0 15.4 3.1 4.1 0.3 12.0 50.5
Average exchange rates for the quarter ended 31 December 2017 and 30 September 2017 were R13.63/US$ and R13.18/US$, respectively.
Figures may not add as they are rounded independently.
(1) The SA PGM operations' results for the six months ended December 2016 include the Rustenburg Operations for the two months since acquisition.
(2) The US PGM operation's results for the six months ended 30 June 2017 are for two months since acquisition. The US PGM operations' underground production is converted to metric tonnes and
kilograms, and performance is translated into SA rand. In addition to the US PGM operations' underground production, the operation treats recycling material which is excluded from the statistics
shown, except for adjusted EBITDA margin 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 revenue and cost of sales.
(5) The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment.
(6) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation in a period by the tonnes milled/treated in the same period, and
operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation in a period by the gold produced in the same period.
(7) All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise
earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital
expenditure associated with growth. All-in sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in cost,
respectively, in a period by the total 4E/2E PGM production in the same period.
Mining - Prill split excluding Recycling operations Recycling Operation
GROUP SA REGION US REGION US REGION
Quarter ended Dec 2017 Dec 2017 Sep 2017 Dec 2017 Sep 2017 Unit Quarter ended
4Eoz / 2Eoz % 4Eoz % 4Eoz % 2Eoz % 2Eoz % Dec 2017
Platinum 205,833 46% 172,798 58% 177,108 58% 33,035 22% 30,943 23% Average catalyst fed/day Tonne 24.7
Palladium 206,619 46% 92,608 31% 96,176 31% 114,011 78% 104,642 77% Total processed Tonne 2,271
Rhodium 25,262 6% 25,262 8% 25,875 8% Tolled Tonne 278
Gold 6,784 2% 6,784 2% 7,025 2% Purchased Tonne 1,993
PGM production 444,498 100% 297,452 100% 306,184 100% 147,046 100% 135,585 100% PGM fed Troy oz 193,397
Ruthenium 38,814 38,814 40,265 PGM sold Troy oz 141,745
Iridium 8,825 8,825 9,261 PGM tolled returned Troy oz 45,280
Total 492,137 345,091 355,710 147,046 135,585
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
Quarter ended 31 December 2017 30 September 2017 Year ended 31 December 2017
Carbon Carbon Carbon
Reef Black Reef Main VCR Black Reef Main VCR
leader leader Black Reefleader Main VCR
Driefontein Unit
Advanced (m) 141 1,578 804 995 12 1,925 1,009 1126 153 6,358 3,755 3,861
Advanced on reef (m) 110 222 202 189 12 180 215 237 122 778 998 760
Channel width (cm) 15 36 50 65 13 55 75 89 24 59 73 81
Average value (g/t) 1.7 30.2 14.5 46.5 2.3 29.5 7.0 36.6 1.1 22.3 8.2 34.7
(cm.g/t) 26 1,088 724 3025 30 1,620 528 3260 26 1,318 601 2,807
Quarter ended 31 December 2017 30 September 2017 Year ended 31 December 2017
Reef Cobble Black Reef Main Libanon VCR Cobble Kloof Main Libanon VCR Cobble Kloof Main Libanon VCR
Kloof Unit
Advanced (m) 1,271 560 28 1,715 - 1,197 678 179 1,738 9 4,351 2,225 570 7,103
Advanced on reef (m) 348 114 28 279 242 159 57 403 865 415 210 1,230
Channel width (cm) 155 108 127 98 154 56 122 124 156 69 147 108
Average value (g/t) 9.2 10.9 12.7 22.5 10.0 12.4 6.9 21.8 8.7 12.6 6.0 21.6
(cm.g/t) 1,427 1,177 1,615 2,201 1,535 696 845 2,705 1,360 864 880 2,342
Quarter ended 31 December 2017 30 September 2017 Year ended 31 December 2017
Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Beatrix Unit
Advanced (m) 4,256 153 4,617 210 16,714 1,256
Advanced on reef (m) 997 15 1,156 98 3,794 309
Channel width (cm) 132 149 133 214 144 149
Average value (g/t) 7.1 26.6 8.4 13.3 7.1 13.6
(cm.g/t) 935 3,962 1,121 2,845 1,018 2,021
Quarter ended 31 December 2017 30 September 2017 Year ended 31 December 2017
Elsburgs Elsburgs Elsburgs Elsburgs
Reef VCR Kimberley Reefs VCR Elsburgs Reefs Kimberley Reefs VCR Elsburgs Reefs Kimberley Reefs
Reefs Massives Massives Massives
Cooke Unit
Advanced (m) 50 11 61 250 1,184 - 474
Advanced on reef (m) 26 55 98 260 - 153
Channel width (cm) 81 144 71 114 - 133
Average value (g/t) 26.5 11.1 8.5 7.6 - 9.2
(cm.g/t) 2,151 1,599 604 867 - 1,220
Quarter ended 31 December 2017 30 September 2017 Year ended 31 December 2017
Kimberley Kimberley Kimberley
Reef Reefs Reefs Reefs
Burnstone Unit
Advanced (m) 1,174 1,240 4,752
Advanced on reef (m) 185 102 537
Channel width (cm) 30 34 46
Average value (g/t) 13.6 14.3 9.3
(cm.g/t) 412 488 425
SA PGM operations
Quarter ended 31 December 2017 30 September 2017 Year ended 31 December 2017
Reef Kopaneng Simunye Bambanani Kwezi K6 Kopaneng Simunye Bambanani Kwezi K6 Kopaneng Simunye Bambanani Kwezi K6
Kroondal Unit
Advanced (m) 558 546 775 930 925 795 483 731 806 1,013 2,510 2,247 2,898 3,756 3,418
Advanced on reef (m) 558 424 622 571 798 653 283 662 460 630 2,068 1,860 2,336 2,497 2,816
Height (cm) 234 231 222 245 225 228 241 228 244 239 240 244 229 242 236
Average value (g/t) 2.3 2.1 3.2 1.5 2.4 2.0 1.6 2.4 1.5 1.7 2.0 2.2 2.4 1.7 2.2
(cm.g/t) 538 486 711 367 539 464 388 548 359 409 479 527 552 410 512
Quarter ended 31 December 2017 30 September 2017 Year ended 31 December 2017
Reef BathopeleThembelaniKhuselekaSiphumelele BathopeleThembelaniKhuselekaSiphumelele BathopeleThembelaniKhuselekaSiphumelele
Rustenburg Unit
Advanced (m) 332 1,803 2,575 990 436 1,614 2,524 1,087 1,567 6,414 8,062 4,234
Advanced on reef (m) 332 741 626 396 436 809 725 382 1,566 2,827 2,150 1,383
Height (cm) 210 117 115 121 203 117 116 118 203 117 116 118
Average value (g/t) 1.6 1.9 2.1 2.0 1.5 2.1 2.1 2.4 1.9 1.9 2.1 2.1
(cm.g/t) 345 225 235 238 305 240 240 278 380 222 243 246
Quarter ended 31 December 2017 30 September 2017 Year ended 31 December 20171
Reef Stillwater incl BlitzEast Boulder Stillwater incl BlitzEast Boulder Stillwater incl BlitzEast Boulder
Stillwater(1)
Primary development (off reef)(m) 4,823 778 3,090 877 9,650 2,385
Secondary development (m) 1,200 1,014 1,588 1,181 4,098 2,761
(1)Stillwater's development data for the June 2017 quarter are for two months since acquisition
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Email: cain.farrel@sibanyestillwater.com KPMG Inc. Kent BR3 4TU
KPMG Crescent England
85 Empire Road Tel:0871 664 0300
Parktown 2193 (calls cost 10p a minute plus network extras, lines are open
Johannesburg 8.30am � 5pm Mon-Fri) or
South Africa +44 20 8639 3399 (from overseas)
Tel: +27 11 647 7111 Fax: +44 20 8658 3430
Email: ssd@capitaregistrars.com
FORWARD-LOOKING STATEMENTS
NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
This announcement is for informational purposes only and does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or any
other jurisdiction nor a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such jurisdiction. The shares to be issued in connection with the offer for Lonmin plc ("Lonmin" and the "New Sibanye
Shares", respectively) have not been and will not be registered under the US Securities Act of 1933 (the "Securities Act") and, accordingly, may not be offered or sold or otherwise
transferred in or into the United States except pursuant to an exemption from the registration requirements of the Securities Act. The New Sibanye Shares are expected to be issued in
reliance upon the exemption from the registration requirements of the Securities Act provided by Section 3(a)(10) thereof. This announcement is not a prospectus for purposes of
Directive 2003/71/EC (and amendments thereto, including Directive 2010/73/EU, to the extent implemented in any relevant Member State) (the "Prospectus Directive"). In any EEA
Member State that has implemented the Prospectus Directive, this announcement is only addressed to and is only directed at qualified investors in that Member State within the
meaning of the Prospectus Directive. This announcement is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any
locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or
licensing within such jurisdiction. No statement in this announcement should be construed as a profit forecast.
Forward looking statements
This announcement contains forward-looking statements within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. These
forward-looking statements, including, among others, those relating to Sibanye Gold Limited trading as Sibanye-Stillwater ("Sibanye-Stillwater")'s financial positions, business strategies,
plans and objectives of management for future operations, are necessarily estimates reflecting the best judgment of the senior management and directors of Sibanye-Stillwater and
Lonmin. All statements other than statements of historical facts included in this Announcement may be forward-looking statements. Forward-looking statements also often use words
such as "will", "forecast", "potential", "estimate", "expect" and words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate
to future events and circumstances and should be considered in light of various important factors, including those set forth in this disclaimer. Readers are cautioned not to place undue
reliance on such statements. The important factors that could cause Sibanye-Stillwater's and Lonmin's actual results, performance or achievements to differ materially from those in the
forward-looking statements include, among others, economic, business, political and social conditions in the United Kingdom, South Africa, Zimbabwe and elsewhere; changes in
assumptions underlying Sibanye-Stillwater's and Lonmin's estimation of their current mineral reserves and resources; the ability to achieve anticipated efficiencies and other cost savings
in connection with past, ongoing and future acquisitions, as well as at existing operations; the success of Sibanye-Stillwater's and Lonmin's business strategy, exploration and
development activities; the ability of Sibanye-Stillwater and Lonmin to comply with requirements that they operate in a sustainable manner; changes in the market price of gold, PGMs
and/or uranium; the occurrence of hazards associated with underground and surface gold, PGMs and uranium mining; the occurrence of labour disruptions and industrial action; the
availability, terms and deployment of capital or credit; changes in relevant government regulations, particularly environmental, tax, health and safety regulations and new legislation
affecting water, mining, mineral rights and business ownership, including any interpretations thereof which may be subject to dispute; the outcome and consequence of any potential
or pending litigation or regulatory proceedings or other environmental, health and safety issues; power disruptions, constraints and cost increases; supply chain shortages and increases
in the price of production inputs; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary
stoppages of mines for safety incidents and unplanned maintenance; their ability to hire and retain senior management or sufficient technically skilled employees, as well as their ability
to achieve sufficient representation of historically disadvantaged South Africans' in management positions; failure of information technology and communications systems; the
adequacy of insurance coverage; any social unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye-Stillwater's operations; and the
impact of HIV, tuberculosis and other contagious diseases. These forward-looking statements speak only as of the date of this Presentation. Sibanye-Stillwater and Lonmin expressly
disclaim any obligation or undertaking to update or revise any forward-looking statement (except to the extent legally required).
Date: 22/02/2018 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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