SIBANYE GOLD LIMITED - Stillwater concludes streaming agreement with Wheaton International

Release Date: 25/07/2018 15:35
Code(s): SGL
Wrap Text
Stillwater concludes streaming agreement with Wheaton International

Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)

Sibanye-Stillwater concludes streaming agreement with Wheaton International

Johannesburg, 25 July 2018: Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL) is
pleased to announce that all outstanding conditions required to complete the gold
and palladium stream agreement with Wheaton Precious Metals International Ltd
Wheaton International) have been fulfilled.

In terms of the agreement, Sibanye-Stillwater has received US$500 million from
Wheaton International in exchange for an amount of gold and palladium equal to a
percentage of gold and palladium produced from its United States (US) Platinum
Group Metals (PGM) operations (comprised of its East Boulder and Stillwater mining
operations) (the Transaction). The Transaction is effective from 1 July 2018.

The US$500 million arising from the Transaction is competitively priced relative
to existing Group debt and alternative financing available in international
capital markets. The Transaction immediately reduces Sibanye-Stillwater’s
leverage, decreasing Net Debt:Adjusted EBITDA1 by between 0.6x and 0.7x. This
ensures a Group leverage ratio which is well below current and future covenant
levels and facilitating a reduction in Group financing costs.

For more details on the Streaming transaction, please refer to the announcement
and presentation at


1. For the purposes of calculating the Net Debt: Adjusted EBITDA ratio, Adjusted EBITDA is calculated
over the immediately preceding 12 months. Net Debt excludes Burnstone cash and debt due to the non-
recourse nature of the financing as explained in the 2017 Annual Financial Statements. Adjusted
EBITDA as reported is an accounting calculation based on financial results from the date of
acquisition and consolidation


James Wellsted
Head of Investor Relations
+27 (0) 83 453 4014

Sponsor: J.P. Morgan Equities South Africa (Proprietary) Limited

Citi is acting as exclusive financial advisor to Sibanye-Stillwater. Fasken
Martineau DuMoulin LLP, Linklaters LLP, and Webber Wentzel are acting as legal
advisors to Sibanye-Stillwater.

This announcement contains forward-looking statements, including “forward-looking
statements” within the meaning of Section 27A of the U.S. Securities Act of 1933
and the “safe harbour” provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be identified by the
use of words such as “target”, “will”, “would”, “expect”, “can”, “unlikely”,
“could” and other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These forward-looking
statements, including among others, those relating to our future business
prospects, financial positions, debt position and our ability to reduce debt
leverage, plans and objectives of management for future operations, plans to raise
capital through streaming arrangements or pipeline financing, our ability to
service our Bond Instruments (High Yield Bonds and Convertible Bonds), our ability
to achieve steady state production at the Blitz project and the anticipated
benefits and synergies of our acquisitions are necessarily estimates reflecting
the best judgement of our senior management and involve a number of known and
unknown risks, uncertainties and other factors, many of which are difficult to
predict and generally beyond the control of Sibanye-Stillwater, that could cause
Sibanye-Stillwater’s actual results and outcomes to be materially different from
historical results or from any future results expressed or implied by such
forward-looking statements. As a consequence, these forward-looking statements
should be considered in light of various important factors, including those set
forth in the Group’s Annual Integrated Report and Annual Financial Report,
published on 30 March 2018, and the Group’s Annual Report on Form 20-F filed by
Sibanye-Stillwater with the Securities and Exchange Commission on 2 April 2018
(SEC File no. 001-35785). These forward-looking statements speak only as of the
date of this announcement. Sibanye-Stillwater undertakes no obligation to update
publicly or release any revisions to these forward-looking statements to reflect
events or circumstances after the date of this announcement or to reflect the
occurrence of unanticipated events, save as required by applicable law

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