Wrap Text
Operating and financial results for the six months and year ended 31 December 2018
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 2018
JOHANNESBURG, 21 February 2019: 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 2018, and reviewed condensed
consolidated preliminary financial statements for the year ended 31 December 2018.
SALIENT FEATURES FOR THE SIX MONTHS AND YEAR ENDED 31 DECEMBER 2018
- New safe production record of 6.5 million fatality free shifts achieved by the Group
- Another consistent operational result from the SA and US PGM operations - acheiving production and cost guidance
- High return Fill the Mill project at the East Boulder mine to add further 5% to annual production from US PGM operations by 2022
- Production from SA Gold operations negatively impacted by operational disruptions
- Adjusted EBITDA of R8,369 million (US$632 million) only 8% lower despite the prolonged AMCU strike
- Progress made on deleveraging with Net Debt to adjusted EBITDA of 2.5x
- Significant value creation expected to flow through from PGM strategy as the PGM basket price increases significantly into 2019
- Acquisition of SFA Oxford to facilitate future strategic development in high tech metals
US dollar SA Rand
Year ended Six months ended Six months ended Year ended
Dec 2017 Dec 2018 Dec 2017 Jun 2018 Dec 2018 KEY STATISTICS Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
SOUTHERN AFRICA (SA) REGION
PGM operations
1,194,348 1,175,672 603,636 569,166 606,506 oz 4E PGM(1) production kg 18,864 17,703 18,775 36,567 37,148
942 1,045 975 1,051 1,039 US$/4Eoz Average basket price R/4Eoz 14,729 12,941 13,066 13,838 12,534
119.8 217.6 84.6 81.3 136.3 US$m Adjusted EBITDA(2) Rm 1,880.7 1,001.1 1,128.4 2,881.8 1,594.0
12 19 16 15 22 % Adjusted EBITDA margin(2) % 22 15 16 19 12
782 787 778 821 755 US$/4Eoz All-in sustaining cost(3) R/4Eoz 10,706 10,106 10,432 10,417 10,399
Gold operations(4)
1,402,900 1,176,700 714,260 598,517 578,188 oz Gold production kg 17,984 18,616 22,216 36,600 43,634
1,254 1,259 1,274 1,314 1,212 US$/oz Average gold price R/kg 552,526 519,994 549,064 535,929 536,378
398.8 102.8 228.0 81.8 21.0 US$m Adjusted EBITDA(2) Rm 355.3 1,007.1 3,052.5 1,362.4 5,308.5
23 7 25 10 4 % Adjusted EBITDA margin(2) % 4 10 25 7 23
1,128 1,309 1,114 1,315 1,308 US$/oz All-in sustaining cost(3) R/kg 596,100 520,488 480,010 557,530 482,693
UNITED STATES (US) REGION
PGM operations(5)
376,356 592,608 282,631 293,959 298,649 oz 2E PGM(1) production kg 9,289 9,143 8,791 18,432 11,706
517,148 686,592 390,703 360,246 326,346 oz PGM recycling(5) kg 10,151 11,205 12,152 21,355 16,085
927 1,007 947 996 1,016 US$/2Eoz Average basket price R/2Eoz 14,407 12,260 12,699 13,337 12,330
161.0 313.6 133.1 153.3 160.3 US$m Adjusted EBITDA(2) Rm 2,264.5 1,887.4 1,774.5 4,151.9 2,142.6
23 26 25 25 27 % Adjusted EBITDA margin(2) % 27 25 25 26 23
651 677 660 653 701 US$/2Eoz All-in sustaining cost(3) R/2Eoz 9,929 8,045 8,899 8,994 8,707
GROUP
(333.2) (188.7) 30.6 6.4 (195.1) US$m Basic earnings Rm (2,576.3) 76.7 366.3 (2,499.6) (4,437.4)
(16.8) (1.3) 148.4 8.2 (9.5) US$m Headline earnings Rm (117.6) 101.0 1,957.9 (16.6) (223.9)
679.6 632.0 445.7 316.4 315.6 US$m Adjusted EBITDA(2) Rm 4,473.8 3,895.6 5,955.4 8,369.4 9,045.1
13.31 13.24 13.41 12.31 14.18 R/US$ Average exchange rate
(1) 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)
(2) The Group 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. Adjusted EBITDA may not be comparable to similarity 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. For a reconciliation of profit/loss before royalties and tax to adjusted EBITDA,
see note 10 of the condensed consolidated preliminary financial statements. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
(3) See "salient features and cost benchmarks - six months" for the definition of All-in sustaining cost
(4) The gold operations' results for the six months and year ended 31 December 2018 include DRDGOLD Limited (DRDGOLD) for the five months since acquisition
(5) 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 processes recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM
recycling represents palladium, platinum, and rhodium ounces fed to the furnace. The US PGM operations results for the year ended 31 December 2017 are for eight months since
acquisition (in May 2017)
Stock data for the six months ended 31 December 2018 JSE Limited - (SGL)
Number of shares in issue Price range per ordinary share R7.08 to R12.51
- at 31 December 2018 2,266,260,491 Average daily volume 8,590,802
- weighted average 2,265,988,074 NYSE - (SBGL); one ADR represents four ordinary shares
Free Float 78% Price range per ADR US$2.05 to US$3.40
Bloomberg/Reuters SGLS/SGLJ.J Average daily volume 3,729,191
STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER OF SIBANYE-STILLWATER
The significant improvement in the safety performance across the Group in H2 2018, which has re-established and improved on our
previous industry-leading safety performance, was a notable and welcome highlight. The Group achieved six and a half million
fatality free shifts on 14 February 2019, during a fatality free run since mid-August 2018, and which has continued into February 2019.
Whilst this significant safety milestone has gone a long way to restoring market confidence in Sibanye-Stillwater as a responsible
operator following the acute concerns in H1 2018, we will remain focused on maintaining and improving on our safe production
performance as our first priority at all of our operations.
Despite the numerous challenges we faced during the year, it was extremely pleasing to note the manner in which the Sibanye-
Stillwater team pulled together to proactively address these challenges. I firmly believe that the Group has ultimately emerged
stronger, and better positioned to continue delivering superior value to all stakeholders.
The PGM operations in both Southern Africa (SA) and the United States (US), maintained steady operating performances, with
revenues benefiting significantly from higher palladium and rhodium prices in 2018. The benefits of the Group's well timed
diversification into the PGM sector as well as the geographical diversification resulting from the acquisition of Stillwater, are clearly
evident in the financial results, with the solid operating and financial performance of the PGM operations compensating for the
operational challenges experienced at the SA gold operations.
The Group's dominant source of earnings is now our US PGM operations, which accounted for approximately 50% of Group adjusted
EBITDA in 2018, with the adjusted EBITDA margin for the US PGM underground operations, increasing from 43% in 2017 to 46% in 2018,
primarily due to the surging dollar palladium price and strong operational performance. The contribution from the SA PGM operations
has also increased substantially, due the improved rand PGM basket price and solid, sustained operational performance. In 2018 the
SA PGM operations contributed 34% of Group adjusted EBITDA, up from 18% in 2017, with the adjusted EBITDA margin increasing year-
on-year from 12% to 19%.
Unfortunately, the emerging recovery in the operational performance of our SA gold operations in H2 2018 was interrupted by the
strike called by the Association of Mineworkers and Construction Union (AMCU) on 21 November 2018. While ostensibly related to
wages, we believe that this irresponsible action was undertaken to promote an alternative, more parochial agenda. Response plans
have been put in place to maintain peace and stability in order to ensure the safety of our employees as far as possible, and mitigate
financial losses by optimising production through the concentration of underground mining activity to specific operating areas, and
reducing fixed costs by switching off services and utilities across areas where production activity has been suspended. Whilst these
strike plans have been implemented across the operations, the strike action continues to impact on our operations to varying extents.
The AMCU strike action has continued into 2019, despite the other unions having secured a majority membership. Continued legal
and procedural challenges have been raised by AMCU since then, which have maintained the protected status of the strike. We
continue to pursue all avenues to bring this destructive strike action to an end and ensure the wellbeing of our employees.
Despite a flat average rand gold price received year-on-year, the impact of the safety incidents and other unanticipated
operational disruptions as well as the strike, caused production from the core SA gold operations to decrease by 2,345kg (75,390oz),
resulting in adjusted EBITDA from the SA gold operations declining by 74% to R1,362 million. The SA gold operations contributed only
16% of Group adjusted EBITDA in 2018, compared with 58% in 2017, with the adjusted EBITDA margin declining from 23% in 2017 to 7%
in 2018.
Irrespective of the strike action, certain business units at the SA gold operations have experienced ongoing losses, and restructuring
has become imperative to establish a sustainably profitable operating footprint. This led to the Company giving notice on 14 February
2019, in terms of Section 189A of the Labour Relations Act (Section 189A), that it would be commencing formal consultations with
employees and other stakeholders regarding possible restructuring of specific business units at its SA gold operations.
Proactive steps to address our balance sheet leverage were taken during the year, with the US$500 million stream transaction which
was secured in July successfully applied towards reducing our long term debt and financial leverage. Further progress on our
deleveraging strategy has been delayed by the sharp decline in adjusted EBITDA from our SA gold operations in 2018, with the
Group's net debt to adjusted EBITDA (Net Debt:adjusted EBITDA) ratio of 2.5x at the end of 2018, only marginally improved on the
position at the end of 2017. Having secured an extension of the 3.5x Net Debt:adjusted EBITDA ceiling until the end of 2019 and a
covenant holiday for Q1 2019, we have sufficient headroom on our lender covenants and our liquidity remains adequate. Ongoing
strength in spot precious metals prices in 2019 is expected to support our deleveraging efforts in the coming year.
Despite delays to the expected conclusion of the proposed Lonmin acquisition, following an appeal by AMCU against the ruling
made by the South African Competition Tribunal in November 2018 to approve the acquisition, subject to certain specific conditions
imposed on Sibanye-Stillwater, we remain committed to the acquisition and expect the conclusion of the Lonmin acquisition during
H1 2019. The increased size and complexity of the SA PGM operations once the Lonmin acquisition has been completed, and the
critical importance of restoring the SA gold operations to profitability, will require a more intense medium term management focus.
Our organisational structure has therefore been refreshed, with dedicated senior management teams appointed at the SA gold and
SA PGM operations to optimise operational performance, and centralised Group functions to provide services and ensure a sharper
focus on driving strategic priorities for the Group. The US PGM operations leadership team remains unchanged. The leadership teams
will provide dedicated leadership geared to the specific priorities of each operating segment and will actively drive critical strategic
portfolios at Group level.
Overall, 2018 was a mixed year during which we experienced an anomalous number of disruptive events concentrated at our South
African gold operations. Despite the challenges, we have concluded the year in a strong position to pursue our strategic trajectory
of creating superior value for all stakeholders. More specifically we look forward to the value creation flowing into our market
valuation as we deliver according to plan in a constructive global climate for precious metals.
SAFETY
A number of significant safety milestones have been achieved since the 2018 interim results were reported in August 2018. The Group
operations have been fatality free since mid-August, recording a total of six and a half million fatality free shifts by 14 February 2019,
with the SA PGM operations achieving four million fatality free shifts on 20 February 2018 and the SA gold operations achieving three
million fatality free shifts on 31 January 2019. The improvement in the safety performance across the Group in H2 2018, resulted in the
Group combined injury rates being essentially flat year-on-year, with a slight deterioration in injury rates at the SA gold operations
and the US PGM operations, offset by a significant improvement in injury rates from the SA PGM operations, where the Serious Injury
Frequency Rate and Lost Day Injury Frequency Rate improved by 19% and 14% respectively, in the process setting new benchmarks
for moderate to deep level hard rock mining in South Africa. These are commendable achievements considering the proportion of
deep level mining that is conducted across the Group and the number of people who operate in this environment on a daily basis,
and are in stark contrast to the fatalities experienced during H1 2018.
This performance has restored and improved on Sibanye-Stillwater's historical, industry leading safety record, but we are conscious
that we operate in a dynamic environment, which can change rapidly, as we experienced in H1 2018, and as such, requires continual
vigilance, review and innovation to ensure ongoing improvement towards our ultimate goal of zero harm in the workplace.
Nonetheless, the reduction in injury rates since August 2018 gives us confidence that the safety improvement programmes that we
have implemented are proving effective, and we remain focused on maintaining our position as the benchmark safety performer
in both the SA gold and PGM mining industries.
In this regard, a number of safe production initiatives have advanced considerably, with short term, high-impact interventions
vigorously implemented across the operations, and notable progress made with our medium to long term safe production initiatives.
These include the constitution of our Global Safe Production Advisory Panel, comprised of five leading safety experts from around
the world, to assist in adopting a more forward looking position that anticipates the emergence of new leading safety practices,
and investing in the identification and development of new safe production technologies through the DigiMine Partnership with the
University of Witwatersrand, complemented by a global academic network of leading mine safety experts. The "Zero Harm Strategic
Framework", which was developed through multi-stakeholder collaboration during three Safety Summits convened by Sibanye-
Stillwater, will also guide our long term sustainable safety improvements in 2019 and beyond.
OPERATING AND FINANCIAL OVERVIEW
OPERATING REVIEW
US PGM operations
The US PGM operations delivered a solid operating and financial performance for the year ended 31 December 2018. Mined 2E
PGM production for the year of 592,608 2Eoz was towards the upper end of market guidance, reflecting the ongoing buildup of
production at Blitz and record production from the East Boulder mine, with AISC of US$677/2Eoz in line with annual guidance. Mined
2E PGM production for H2 2018 of 298,649oz was 5% higher than for H2 2017, reflecting additional production from Blitz. AISC of
US$701/2Eoz for H2 2018, reflects the higher AISC of US$769/2Eoz for Q3 2018, arising from higher maintenance costs and planned
outages at the metallurgical complex, with AISC for Q4 2018 significantly lower at US$642/2Eoz. AISC for 2018 was also negatively
affected by higher royalties resulting from higher PGM prices, with AISC increasing 1% for a 20% increase in the 2E PGM basket price.
After regressing in Q3 2018, the palladium price regained its momentum in Q4 2018, with palladium and rhodium ending the year
strongly. The 9% year-on-year increase in the average 2E PGM basket price received to US$1,007/2Eoz, coupled with the strong
operating performance, boosted adjusted EBITDA for 2018 to US$314 million (R4,152 million) with the average adjusted EBITDA margin
of the underground operations increasing from 43% for 2017 to 46% for 2018 and adjusted EBITDA from the US PGM operations as a
whole (including the lower margin recycling operations) increasing from 23% for 2017 to 26% for 2018.
Despite the ongoing rebuild and expansion of the second electric furnace (EF2), the Columbus Metallurgical Complex performed
well, processing 619,683oz of mined 2E PGM and 686,592oz of recycled 3E PGM. The recycling division averaged 22.0 tonnes of feed
material per day in 2018, compared to an average feed rate of 23.9 tonnes per day in 2017. This is a noteworthy achievement, given
the smelting constraints experienced by the Metallurgical Complex during the year. The re-commissioning of EF2 during January 2019
adds additional smelter capacity and significantly enhance flexibility for the balance of the year.
Capital expenditure of US$214 million was marginally lower than market guidance of US$220 million. This capital expenditure is evenly
split between sustaining and growth/project capital for the ongoing development and production ramp-up from Blitz. Blitz is on
schedule, with three stope blocks successfully commissioned and in production. Two additional stopes are scheduled for
commissioning in 2019, adding a further 40,000 2Eoz - 60,000 2Eoz of annual production. Ten producing areas/stopes are expected
to be commissioned at Blitz by late 2021, adding an average of 300,000 2Eoz of annual production from 2022.
Higher forecast capital expenditure for 2019 of between US$235 million and US$245 million, includes incremental capital associated
with the Fill the Mill Project (FTM) at the East Boulder mine, which was recently approved by the Board. The FTM is forecast to deliver
approximately 40,000oz of annual 2E PGM production from late 2020, over a 10 year period, through an incremental expansion of
mining and certain support facilities at the East Boulder Mine and Columbus Metallurgical Complex. The incremental cost of the
project approximates US$29 million (capital expenditure of US$19 million and additional operating costs of US$10 million), with the
project yielding an NPV of more than US$100 million (an IRR of approximately 88%) at conservative consensus prices. Critically, the
additional production from the FTM is expected to reduce operating costs at the East Boulder mine by approximately 5% over the
project's 10-year life.
The positive basket price momentum from the December 2018 quarter, has continued into 2019, with the current spot 2E PGM basket
price of approximately US$1,330/2Eoz (at 19 February 2019), 32% higher than the average realised 2E PGM basket of US$1,007/2Eoz
in 2018, and 72% higher than the prevailing 2E PGM price of approximately US$770/2Eoz when the acquisition of Stillwater was
announced in 2016. This bodes well for operating margins, adjusted EBITDA and underlying cash flow generation from the US PGM
operations in 2019.
SA PGM operations
The SA PGM operations continued to perform strongly, with full year 4E PGM production of 1,175,672oz for the year ended
31 December 2018, exceeding the upper limit of guidance, and average AISC well below the lower guidance limit of R10,750/4Eoz
(US$825/4Eoz). 4E PGM production of 606,506oz for H2 2018 was marginally higher than for the comparable period in 2017, with AISC
of R10,706/4Eoz (US$755/4Eoz) 3% higher year-on-year, but well below South African annual inflation rates.
Kroondal again delivered record production of 134,712oz in H2 2018, 6% higher than its previous best performance, which was
achieved in H2 2017. Kroondal AISC of R9,547/4Eoz (US$673/4Eoz) was 5% lower than for the same period in 2017, primarily benefiting
from higher production as well as a chrome by-product credit of R233 million which was realised during the period.
Production from Rustenburg was 1% lower than for H2 2017 at 399,628oz, due to lower surface production, with underground
production consistent with H2 2017. AISC at the Rustenburg operations was 5% higher year-on-year at R11,141/4Eoz (US$786/4Eoz),
with solid cost management offsetting a number of above inflation cost increases (including wages and electricity), higher capital
expenditure and royalties when compared to the comparable period in 2017.
Attributable 4E PGM production from Mimosa of 62,306oz was 2% lower than for H2 2017, with the operations performing well despite
the turbulent political and economic environment in Zimbabwe.
Despite ongoing weakness in the platinum price, the average 4E PGM basket price for H2 2018 was 13% higher at R14,729/4Eoz
(US$1,039/4Eoz) than for H2 2017, mainly due to significant increases in palladium and rhodium prices (which comprise approximately
31% and 9% of the 4E prill split respectively) and a weaker rand exchange rate. The average 4E PGM basket price for the year ended
31 December 2018 of R13,838/4Eoz (US$1,045/4Eoz), was 10% higher year-on-year.
The significant leverage of the SA PGM operations to the higher basket prices as a result of a disciplined operating performance is
evident in the 67% year-on-year increase in adjusted EBITDA to R1,881 million (US$136 million) for H2 2018. Similarly, adjusted EBITDA
for the full year of R2,882 million (US$218 million) was 81% higher than for 2017, with the adjusted EBITDA margin increasing from 12%
in 2017 to 19% in 2018. As with the US PGM operations, the spot 4E PGM basket price (AT 19 February 2019) of approximately
R16,860/4Eoz (US$1,200/4Eoz), if sustained, suggests further gains in adjusted EBITDA and cash flows from the SA PGM operations in 2019.
Impact of changes to processing arrangements for the Rustenburg operations from 1 January 2019
In line with Sibanye-Stillwater's mine-to-market PGM strategy and according to the processing agreements with Anglo American
Platinum Limited (Anglo Platinum), the processing arrangement for Rustenburg production changed from a Purchase of Concentrate
arrangement (PoC) to a Toll processing arrangement from 1 January 2019.
In terms of the PoC arrangement, Sibanye-Stillwater delivered metals concentrate from the Rustenburg operations to Anglo Platinum
for smelting and refining, with Anglo Platinum retaining a percentage of the metal in concentrate as payment for processing the
concentrate. The cost of this PoC charge was offset against revenue and reflected as an equivalent discount to the average 4E
PGM basket price.
In terms of the Toll arrangement, Sibanye-Stillwater will pay an agreed rate to Anglo Platinum to smelt and refine concentrate from
the Rustenburg operations, but will own and sell all the refined metal produced. From a reporting perspective, Sibanye-Stillwater will
no longer reflect a discount in its revenue and will receive the full average 4E PGM basket price, though costs and unit costs will be
higher than under the PoC arrangement, reflecting the additional tolling costs.
At the current spot 4E PGM basket price, the net result of this contractual change has a positive financial impact, with the increased
revenue more than offsetting the additional toll cost, and as a result is beneficial both commercially and strategically. The change
in the arrangement however results in a delay in the recognition of revenue, due to the point of sale being extended to the end of
the processing pipeline, which affects the recognition of revenue for 2019.
Under the PoC arrangement, a sale was recognised and accounted for on delivery of concentrate to Anglo Platinum, as the risks
and rewards of ownership passed to Anglo Platinum pursuant to the sales contract. The sales price was previously determined on a
provisional basis and adjustments to the sales price were made, based on movements in the metal prices up to the date of final
pricing. Under the toll arrangement a sale will only be accounted for after the refined metals are sold, approximately four months
after delivery of the concentrate to Anglo Platinum, which from an accounting perspective, is the point when the risks and rewards
of ownership are transferred to the customer.
This change results in:
- the revenue recognition cycle being delayed, with minimal revenue and earnings recognised from the Rustenburg operations
during Q1 2019, with an associated deferral of the recognition of costs
- a permanent increase in Inventory, and a similar reduction in trade receivable balances, so the net impact on working capital is
minimal and
- cash flow is largely unaffected
As a result of these changes, adjusted EBITDA from the Rustenburg operations will not be recognised during Q1 2019, which will
impact our Net Debt: adjusted EBITDA leverage ratios during the transition of the commercial arrangements. Following further
discussions with our lenders, a covenant holiday for Q1 2019 has been agreed. We consequently have sufficient headroom on our
lender covenants, and liquidity remains adequate.
SA gold operations
As announced on 1 August 2018, all conditions precedent to the DRDGOLD Limited (DRDGOLD) transaction were met and the
transaction was implemented on 31 July 2018. Sibanye-Stillwater consolidated DRDGOLD in its operating and financial results from
1 August 2018 and the current operating results include 1,870kg (60,122oz) from DRDGOLD.
Total gold production, including DRDGOLD, declined by 16% year-on-year to 36,600kg (1,176,600oz) primarily due to the impact of
the anomalous H1 2018 safety incidents and other operational disruptions (the disruption of electrical power to the Beatrix operations
and seismic damage to infrastructure at the Driefontein 1 and Kloof 3 shafts) and the AMCU strike in the second half of the year, as
well as the cessation of underground mining at the Cooke operations in late 2017, which accounted for 956kg (30,736oz) or 32% of
the reduction. On a like for like basis, gold production (excluding DRDGOLD and the Cooke underground operations) also declined
by 16% year-on-year to 34,676kg (1,114,800oz).
The impact of the 16% decline in production year-on-year is evident in the 15% increase in AISC for 2018 to R557,530/kg (US$1,309/oz),
despite cost of sales before amortisation and depreciation (including DRDGOLD and the Cooke underground operations) remaining
flat year-on- year. The significant fixed overhead cost component (over 80% of operating costs) for the SA gold operations, makes
costs very sensitive to production volume changes and as a result, unit costs such as AISC invariably increase with reductions in
production volumes.
Like-for-like production from the SA gold operations (excluding DRDGOLD and the Cooke underground operations), for H2 2018,
declined by 24% to 16,066kg (516,523oz). Cost of sales before amortisation and depreciation for H2 2018 increased in absolute terms
by approximately 4% to R9,326 million (US$657 million). AISC was negatively impacted by the production disruptions as detailed
above and increased by 24% year-on-year, to R596,100/kg (US$1,308/oz).
Underground production from the Driefontein operations of 3,603kg (115,839oz) for H2 2018, was 45% lower year-on-year, due to
repairs to the footwall infrastructure of the Masakhane shaft in H2 2018, following the seismic damage in May 2018 and impact of the
AMCU strike, with Driefontein the worst affected of our SA gold operations. The footwall infrastructure at the Masakhane shaft has
been successfully rehabilitated, but the anticipated production buildup in the area has been delayed by the strike. Gold production
from surface sources decreased by 78% to 180kg (5,787oz) due to the depletion of surface reserves and the disposal of No. 2 and
No. 3 Plants to DRDGOLD. AISC was significantly impacted by the decline in production, with AISC for H2 2018 increasing by 73% to
R866,984/kg (US$1,902/oz), despite cost of sales before amortisation and depreciation decreasing by 12%. The possible restructuring
of specific shafts at Driefontein and a recovery in volumes once the strike has ended is expected to return the operation to profitability
during 2019.
Underground production from the Kloof operations decreased by 23% to 6,165kg (198,210oz) compared with the same period in
2017. Production volumes decreased by 22%, most notably at 3 and 4 Shafts, which were affected by the trauma caused by the H1
safety incidents and the AMCU strike. Surface production increased by 45% to 1,183kg (38,037oz) due to the additional milling
capacity as a result of the lower underground production and the decision to process Kloof surface material at Driefontein and
Ezulwini. Lower gold production was again the primary factor driving a 23% increase in AISC to R517,096/kg (US$1,134/oz).
At the Beatrix operations, underground gold production for H2 2018 decreased by 11% to 4,016kg (129,117oz), primarily due to the
strike that affected production in Q4 2018. Gold production from surface sources increased by 59% to 140kg (4,501oz), due to a 27%
increase in throughput mainly as a result of the strike impacting underground production volumes. As a result of lower production,
AISC increased by 6% to R532,603/kg (US$1,168/oz).
Underground production from the Cooke Operations decreased by 93% to 74kg (2,379oz) following the cessation of underground
operations in November 2017, with final clean-up by December 2017. No underground gold was subsequently produced from the
Cooke operations other than the clean-up of mud dams. Surface gold production increased by 87% to 731kg (23,502oz) due to a
94% increase in processed volumes (to 2,293,000t) due to the inclusion of Dump 38 and the acquisition of third party material, which
resulted in an additional 312kg (10,031oz) of gold for the period under review.
The average received rand gold price for 2018 of R535,929/kg (US$1,259/oz) was flat year-on-year, which, combined with the
significant decline in production, resulted in adjusted EBITDA from the SA gold operations declining to R1,362 million (US$103 million)
from R5,309 million (US$399 million) in 2017. The spot gold price has increased in 2019, with the current spot price (at 19 February 2019)
of approximately R605,000/kg (US$1,341/oz), 12% higher than the 2018 average price, which will significantly benefit earnings and
cash flow from the SA gold operations, once production volumes have normalised.
S189 consultation
Whilst the profitability of the SA gold operations is currently distorted by the production impact of the safety incidents and ongoing
strike action, there are fundamental profitability issues, particularly at the Driefontein 2,6,7,8 shafts and at Beatrix 1 shaft. These will be
addressed through consultation with stakeholders in terms of Section 189A of the Labour Relations Act, with notice in this regard
given to stakeholders on 14 February 2019.
This follows notices which were issued under Section 52(1)(a) of the MPRDA in October 2018 in respect of both Beatrix and Driefontein,
advising stakeholders of the marginal profitability of the mining rights that should have prompted engagements with the stakeholders
on each of the mines around measures that could be taken to secure improved financial sustainability. Sadly, such constructive
engagements did not transpire, as strike-related issues dominated the intervening period.
Through the formal Section 189A consultation process, the Company and affected stakeholders will together consider measures to
avoid and mitigate possible retrenchments of up to 5,780 employees and 800 contractors, and seek alternatives to the potential
cessation or downscaling of operations at the affected shafts. We are confident that this process will reposition the SA gold operations
for sustainable, profitable safe production.
FINANCIAL REVIEW
The inclusion of the US PGM operations for the full year in 2018 (compared with eight months in 2017), and the cessation of the Cooke
underground operations in November 2017, together with the full consolidation of DRDGOLD's operational and financial results from
1 August 2018, distorts a direct comparison between the 2018 and 2017 financial results. For a detailed financial review including a
like-for-like reconciliation, see "Financial and operating review of the Group".
The solid production results from both the US and SA PGM operations and higher PGM basket prices, offset lower revenue from the
SA gold operations, due to the operational disruptions and a flat rand gold price year-on-year.
Group revenue for 2018 of R50,656 million was 10% higher than for the comparable period in 2017, with a 73% increase in revenue
from the US PGM operations and a 14% increase in revenue from the SA PGM operations This offset a 16% decline in revenue from
the SA gold operations.
Group adjusted EBITDA in 2018 of R8,369 million (US$632 million) declined by 7% from R9,045 million (US$680 million) for 2017, despite
adjusted EBITDA from the US PGM operations and SA PGM operations increasing by 94% and 81%, respectively. The 16% decline in
gold production caused an 74% decline in adjusted EBITDA from the SA gold operations.
Group Free Cash Flow (FCF) was similarly impacted by the operational disruptions experienced by the SA gold operations. The Group
recorded negative FCF of R12 million (US$1 million) for 2018, which was an R850 million (US$ 64 million) improvement relative to the
comparable period in 2017, with negative FCF of R1,093 million (US$83 million) from the SA gold operations, offset by a tenfold
increase in FCF from the SA PGM operations to R881 million (US$67 million) and FCF from the US PGM operations of R387 million
(US$29 million), which was significantly higher than negative FCF of R483 million (US$36 million) for 2017. The significant increase in
precious metals prices in 2019 thus far, if sustained, will have extremely positive implications for Group FCF for 2019.
The US$500 million stream, which was raised in July 2018 was well timed, with the proceeds applied to reduce debt. Net debt at
31 December 2018 of R21,269 million was 8% lower than at the end of 2017 as a result. From a Group leverage perspective however,
the benefits of the reduction in debt were largely offset by the 7% decline in adjusted EBITDA discussed above, with the Group's Net
Debt:adjusted EBITDA ratio of 2.5x at the end of 2018, only marginally improved on the 2.6x ratio at the end of 2017. The outlook for
Group earnings and cash flow however is more positive however, with continued strength in spot precious metals prices in 2019, if
sustained, positive for Group cash flow and supportive of meaningful deleveraging during the course of the year.
The leverage covenant is calculated using the trailing 12 month adjusted EBITDA. Due to the lagging impact of lower adjusted EBITDA
for 2018 and the change in our processing arrangements with Anglo Platinum on the Group's leverage ratios, the Sibanye-Stillwater
Board deemed it prudent to obtain approval to extend the 3.5x Net Debt:adjusted EBITDA upper limit of the existing debt covenants
until the end of 2019.
The impact of the change from PoC to a toll processing arrangement for concentrate on reporting of revenue and costs from the
Rustenburg operations and the impact on the Q1 2019 financials, and consequently the debt covenants with our lenders, has been
covered in the SA PGM operations section of this report.
CORPORATE ACTION
SFA (Oxford)
In 2016, with the acquisition of Aquarius Platinum, Sibanye-Stillwater entered the PGM sector. This entry was underpinned by extensive
market research on PGM market fundamentals, which identified an opportunity at a favourable phase in the commodity cycle. This
fundamental knowledge base has underpinned the Group's continued growth in the PGM markets, and provided an informed view
of automobile markets, specifically positioning the Group to understand and project future power train scenarios as related to internal
combustion engines, hybrid electric, battery electric and fuel cell powered vehicles. The continued understanding of both
automobile market forces and analysis of likely advances in battery and power train technologies will provide Sibanye-Stillwater with
an opportunity to continue to leverage off this knowledge base in order to position Sibanye-Stillwater to play an ongoing, significant
role in delivery of metals necessary for future power train requirements to the market.
To support the implementation of this strategic positioning, Sibanye-Stillwater has agreed to acquire SFA (Oxford) (pending certain
conditions), an established analytical consulting company that is a globally recognised authority on PGMs and has for several years
provided in-depth market intelligence on battery materials and precious metals for industrial, automotive, and smart city
technologies.
The acquisition cost compares favourably to the cost of setting up a similar analytical and research group internally but significantly
leapfrogs the time required to build up the intellectual knowledge. While Sibanye-Stillwater will have board representation consistent
with its equity holding, SFA (Oxford) will continue to operate as an independent company, continuing to provide services to global
clients on metal market analysis. As a result of the continued independent consulting services provided by SFA (Oxford), it is expected
to be operating cost neutral to Sibanye-Stillwater. Post completion of the acquisition of SFA (Oxford), Sibanye-Stillwater will retain an
80% equity stake in the company with the balance being apportioned to an employee ownership scheme to serve as both an
incentive and retention scheme. In this regard, Stephen Forrest will remain as Chairman of the SFA (Oxford) board and a non-
executive director, Jim Sutcliffe, will be appointed to the SFA Oxford board.
The proposed Lonmin acquisition
On 14 December 2017 an all share offer by Sibanye-Stillwater to acquire 100% of Lonmin plc was announced. The Board of Sibanye-
Stillwater believes that the proposed acquisition is a logical step in further progressing its PGM strategy, during a low phase in the
platinum price cycle and is value accretive for Sibanye-Stillwater shareholders. On 19 December 2018, it was announced that AMCU
had filed an appeal against the ruling made by the South African Competition Tribunal to approve the proposed acquisition. The
Competition Appeal Court of South Africa (the CACSA) has set down 2 April 2019 as the date for the hearing of the appeal. As
announced on 15 January 2019 Sibanye-Stillwater and Lonmin have agreed to extend the long-stop date for completion of the
proposed acquisition to 30 June 2019.
(1) The Lonmin acquisition remains subject to a number of conditions, including relevant approvals by Lonmin and Sibanye-Stillwater shareholders and the approval of the High Court of
Justice of England and Wales. For further information in relation to the proposed acquisition, refer to offer announcement dated 14 December 2017, available on
https://www.sibanyestillwater.com/investors/transactions/lonmin
NET ASSET VALUE
Sibanye-Stillwater has consciously undergone a significant transformation, from a limited-life, high-cost South African gold producer,
when it was unbundled in February 2013 from Gold Fields Limited, into a leading global precious metals producer. A successful
turnaround at the SA gold operations enabled R4.1 billion to be returned to shareholders in the first five years, at an average dividend
yield of 4.9%, which was equivalent to 41% of the market capitalisation on listing. Subsequent strategic growth in the PGM industry
has established Sibanye-Stillwater as one of the largest PGM producers globally within three years and during a low phase in the
PGM price cycle.
The Aquarius Platinum and Rustenburg operations were respectively acquired in April and November 2016, when the 4E PGM basket
price was between R11,800/4Eoz and R12,400/4Eoz. The transformative Stillwater transaction was concluded in May 2017, when the
2E basket price was approximately US$880/oz. The significant increase in PGM basket prices since these transactions were
concluded, with the 4E PGM basket spot price at R16,860/4Eoz and the 2E PGM basket spot price at approximately US$1,330/2Eoz,
has substantially enhanced earnings and cash flow from our PGM operations, as well as resulting in a significant uplift in the value of
our PGM acquisitions.
At current market consensus commodity prices and exchange rates, and based on our Life of Mine (LoM) plans (discounted at an
average rate of approximately 7.5% real), we have determined a NAV for the Group of approximately R80 billion. At spot precious
metals prices (at 18 February 2019), the NAV increases to approximately R101 billion. Sibanye-Stillwater is currently trading at a 0.35x
price to NAV, which is substantially lower than the average price to NAV of its South African gold and PGM peers. Our primary focus
in 2019 will be to ensure that the inherent value in our NAV flows through into our share price to reduce the price to NAV discount,
through consistent operational and financial delivery that reflects the benefits of the improved gold and PGM commodity price
environments. Aspects beyond management control such as volatile commodity prices, cost escalation, production disruptions,
and changes to tax and other regulations could however, materially impact the Group NAV.
OUTLOOK
Mined 2E PGM production from the US PGM operations for 2019, is forecast at between 645,000oz and 675,000oz, due to the
continued production buildup from Blitz. AISC is forecast to be between US$690/2Eoz - US$730/2Eoz, with the majority of the expected
AISC increase attributed to increased capital expenditure and as a result of higher royalties due to the higher PGM basket price.
Total capital spend for the year is guided at between US$235 million and US$245 million for the year. Approximately half of this
anticipated spend is growth capital in nature, including expenditure on the FTM.
4E PGM production from the SA PGM operations for 2019 is forecast at between 1,000,000oz and 1,100,000oz with AISC between
R12,500/4Eoz and R13,200/4Eoz (US$922/4Eoz and US$974/4Eoz), reflecting the transition to the toll processing arrangement. Capital
expenditure is forecast at R1400 million (US$103 million), which includes approximately R230 million (US$17 million) of project capital.
Guidance for the SA gold operations will be provided once the protracted AMCU strike has been terminated and the S189 process
has been completed.
The dollar costs are based on an average exchange rate of R13.55/US$.
The extent and severity of the challenges that Sibanye-Stillwater faced, and dealt with, in 2018 is unprecedented, and whilst a
number of challenges still face us, the manner in which the Sibanye-Stillwater team has responded to and dealt with the various
crises, gives me confidence that we are well positioned to continue delivering superior value to all of our stakeholders.
Our significant investment in the PGM industry was not made lightly and was against conventional market wisdom. The fruits of this
contrarian, but carefully considered strategy have already delivered tangible benefits, which are not yet reflected in our market
valuation. A positive and sustainable fundamental outlook for PGMs is increasingly being accepted and Sibanye-Stillwater's
commodity mix and geographical diversification offers a unique investment opportunity.
I am confident that the Section 189A consultations with stakeholders regarding the future of certain shafts at our SA gold operations,
will result in a more stable and profitable business segment, which will contribute positively to Group earnings in future.
Precious metal prices, particularly palladium and rhodium, have surged in 2019, with the recent depreciation of the rand US dollar
rate, which is a significant revenue driver, boosting revenues for South African mining companies. The operating environment in South
Africa remains challenging, though recent political changes and a seemingly more investment oriented approach by the
Government, is positive. While structural changes are yet to be seen, general sentiment around the country's prospects for economic
stability and growth have improved.
I am convinced that Sibanye-Stillwater offers tangible fundamental value and is strategically positioned to benefit from any further
upside in precious metals prices.
NEAL FRONEMAN
CHIEF EXECUTIVE OFFICER
FINANCIAL AND OPERATING REVIEW OF THE GROUP
FOR THE SIX MONTHS ENDED 31 DECEMBER 2018 (H2 2018)
COMPARED WITH THE SIX MONTHS ENDED 31 DECEMBER 2017 (H2 2017)
Direct comparison of the SA rand results for the Group is difficult as Stillwater's results are translated to SA rand at the average
exchange rate, which for H2 2018 of R14.18/US$ was 6% weaker than for H2 2017 of R13.41/US$. A direct comparison of
Stillwater's US dollar results, therefore, is also included.
Further to this, the consolidation of DRDGOLD for five months since implementation of the DRDGOLD Transaction on 31 July
2018 makes direct comparison with the financial results for the six months ended 31 December 2017 difficult.
The revenue, cost of sales, before amortisation and depreciation, net other cash costs, adjusted EBITDA and
amortisation and depreciation are set out in the table below:
Figures in millions - SA rand
%
H2 2018 H2 2017 change
Revenue 26,746 26,692 -
- US PGM operations 8,432 7,215 17
- SA PGM operations 8,365 7,279 15
- SA gold operations, excluding DRDGOLD 8,928 12,198 (27)
- DRDGOLD 1,048 - 100
- Group corporate(1) (27) -
Cost of sales, before amortisation and
depreciation (21,872) (20,496) (7)
- US PGM operations (6,167) (5,439) (13)
- SA PGM operations (6,380) (6,100) (5)
- SA gold operations, excluding DRDGOLD (8,305) (8,957) 7
- DRDGOLD (1,020) - (100)
Net other cash costs (400) (241) (66)
- US PGM operations - (1) 100
- SA PGM operations (104) (51) (104)
- SA gold operations, excluding DRDGOLD (305) (189) (61)
- DRDGOLD 9 - (100)
Adjusted EBITDA 4,474 5,955 (25)
- US PGM operations 2,265 1,775 28
- SA PGM operations 1,881 1,128 67
- SA gold operations, excluding DRDGOLD 319 3,052 (90)
- DRDGOLD 36 - 100
- Group corporate (27) - 100
Amortisation and depreciation (3,519) (3,203) (10)
- US PGM operations (1,210) (1,118) (8)
- SA PGM operations (573) (434) (32)
- SA gold operations, excluding DRDGOLD (1,678) (1,651) (2)
- DRDGOLD (58) - (100)
-
(1) The streaming transaction (note 14) not recognised in Stillwater segment .
Revenue
Revenue was flat at R26,746 million (US$1,884 million) from R26,692 million (US$1,995 million). Revenue from the US PGM
increased by 10% to US$594 million (17% to R8,432 million) and the SA PGM operations increased by 15% to R8,365 million
(US$593 million), mainly due to the higher average basket price received compared with H2 2017. Revenue from the SA gold
operations including DRDGOLD decreased by 18% and excluding DRDGOLD of R1,048 million (US$79 million), revenue
decreased by 27% to R8,928 million (US$619 million) The significant operational challenges experienced at the SA gold
operations during H1 2018, additional safety improvement interventions undertaken and the AMCU strike at the end of
2018 affected production.
Cost of sales, before amortisation and depreciation
Cost of sales, before amortisation and depreciation increased by 7% to R21,872 million (US$1,540 million). This included
US$434 million (R6,167 million) at the US PGM operations, which increased by 6% (13%) due to higher maintenance costs and
planned outages at the Metallurgical Complex in Q3 2018, and R6,380 million (US$449 million) at the SA PGM operations, which
increased by 5% due to above inflation increases in wages and electricity partly offset by synergies realised. Cost of sales, before
amortisation and depreciation at the SA gold operations including DRDGOLD increased by 4% and excluding DRDGOLD
of R1,020 million (US$77 million) decreased by 7% to R8,305 million (US$580 million) mainly due to lower production.
Adjusted EBITDA
Adjusted EBITDA includes other cash costs, and care and maintenance. Care and maintenance at the Cooke operations
for H2 2018 was R291 million (US$20 million) (H2 2017: R122 million (US$9 million)).
Amortisation and depreciation
Amortisation and depreciation increased by 10% to R3,519 million (US$248 million). This included US$86 million
(R1,210 million) from the US PGM operations, which increased by 2% (8%) and R573 million (US$41 million) from the SA PGM
operations, which increase by 32% as the useful lives of the individual assets were reassessed at 1 January 2018.
Amortisation and depreciation at the SA gold operations including DRDGOLD increased by 5% and excluding DRDGOLD
of R58 million (US$4 million) increased by 2%.
Finance expense
The finance expense increased to R1,751 million (US$124 million) from R1,532 million (US$114 million). The increase was primarily
due to accelerated unwinding of the 6.125% Notes due on 27 June 2022 (the 2022 Notes), 7.125% Notes due on 27 June 2025
(the 2025 Notes) and the US$ Convertible Bond, and unwinding of the deferred revenue related to the streaming transaction.
Sibanye-Stillwater's average outstanding gross debt, excluding the Burnstone Debt, was approximately R25.1 billion during H2
2018 compared with approximately R26.9 billion during H2 2017. The gross borrowings, excluding the Burnstone Debt decreased
from R26.9 billion at 30 June 2018 to R23.4 billion at 31 December 2018 mainly due to the repurchase of a portion of the 2022 and
2025 Notes and US$ Convertible Bond. For additional information on Sibanye-Stillwater's borrowings see note 10 of the financial
statements.
Gain/loss on financial instruments
The net gain on financial instruments of R994 million (US$71 million) for H2 2018 compared with a net loss of
R853 million (US$64 million) for H2 2017. This net gain included gains on the revised cash flows of the Burnstone Debt of
R805 million (US$57 million), and share-based payment (on BEE transaction obligation) of R272 million (US$19 million) and revised
cash flows of the Deferred Payment of R151 million (US$11 million) (related to the Rustenburg operations
acquisition). These gains were partly offset by fair value losses on the derivative financial instrument of R132 million (US$9 million)
and rand gold forward sale contracts of R89 million (US$6 million).
Gain on foreign exchange differences
The net gain on foreign exchange differences of R959 million (US$71 million) for H2 2018 compared with a net loss of R42 million
(US$3 million) for H2 2017. The net gain was mainly due to foreign exchange gains on financial assets as the closing exchange rate
at 31 December 2018 of R14.35/US$ was 16% weaker than R12.36/US$ at 31 December 2017.
Non-underlying items
Impairments
Ongoing losses experienced at the Driefontein and Beatrix operations negatively affected Group cash flow as well as the
sustainability and economic viability of other operations in the SA region. As a result a decision was taken at 31 December 2018, to
impair the Driefontein and Beatrix mining assets by R2,172 million and R167 million, respectively, and the goodwill allocated to the SA
gold operations by R436 million. In addition, development of the Burnstone project is deferred and as a result a decision was taken
at 31 December 2018 to impair the Burnstone development assets by R194 million.
Gain on derecognition of borrowings and derivative financial instrument
On 5 September 2018, Sibanye-Stillwater concluded the US$ Convertible Bond tender process. An aggregate principal amount of
US$66 million for a total purchase price of approximately US$50 million was repurchased. Sibanye-Stillwater funded the repurchase
from existing cash resources, including the US$500 million advance proceeds of the streaming transaction with Wheaton Precious
Metals International Limited. On 16 September 2018, Sibanye-Stillwater concluded the 2022 and 2025 Notes tender process. The total
purchase price was approximately US$345 million (with a nominal value of US$349 million) and was also funded from existing cash
resources, including the US$500 million advance proceeds of the streaming transaction.
As a result, a gain on early settlement of the borrowings of R230 million (US$17 million) was recognised in profit or loss.
Mining and income tax
The mining and income tax charge of R999 million (US$75 million) for H2 2018 compares with the credit of R2,532 million (US$190 million)
for H2 2017 due to a significant deferred tax adjustments recognised in the periods. During H2 2018, the New Jersey Governor signed
a number of bills that implement numerous tax changes which affected the US PGM operations. The most significant change in the
law resulted in tax being calculated together on all US entities under common control (greater than 50% voting ownership). This
resulted in an increase in the estimated deferred tax rate relating to the US PGM operations and a deferred tax charge of
R1,545 million (US$108 million). The deferred tax credit for H2 2017 was mainly due to the impact of the federal tax reform legislation
enacted in the US on 22 December 2018. From 1 January 2018, the federal corporate income tax rate reduced from 35% to 21%,
which, together with other immaterial changes in tax base, 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 in H2 2017.
Liquidity and capital resources
Free cash flow
Sibanye-Stillwater defines free cash flow as net cash from operating activities, before dividends paid, net interest paid and deferred
revenue advance received, less additions to property, plant and equipment.
Figures in million - SA rand
H2 2018 H1 2018 H2 2017
US PGM operations 281 106 (137)
SA PGM operations 440 441 197
SA gold operations (564) (529) (1,140)
Group corporate and recycling (187) - -
After net interest paid of R676 million (US$47 million), net other investing activities of R699 million (US$50 million) and net loans repaid
of R4,702 million (US$359 million), cash at 31 December 2018 increased to R2,549 million (US$178 million) from R2,100 million
(US$153 million) at 30 June 2018.
MINERAL RESOURCES AND MINERAL RESERVES
On 20 February 2019, Sibanye-Stillwater reported an updated of its Mineral Resources and Mineral Reserves at 31 December 2018.
- Total group PGM Mineral Reserves increase by 4% from 44.261Moz to 46.062Moz, primarily due to ongoing reserve definition drilling
at the Blitz Project at Stillwater, where approximately 3.294Moz of Mineral Reserves were added at a 2E PGM grade of 23.7g/t
- Total group PGM Mineral Resources were stable at 204.373Moz
- Total Mineral Reserves at the SA gold operations were 12.108Moz, a 9% year-on-year decline, primarily as a result of the
restructuring of marginal operations (2.373Moz) and depletion (1.162Moz), partially offset by the successful conversion of Mineral
Resources to Mineral Reserves at the Kloof operations (+1.204 Moz) and the inclusion of attributable (38.05%) DRDGOLD Mineral
Reserves (2.245Moz) following the sale of certain the West Rand Tailings Retreatment Project (WRTRP)assets to DRDGOLD
- Total SA gold Project Mineral Reserves decreased by 64% to 4.476Moz primarily due to the sale of certain WRTRP Mineral Reserves
to DRDGOLD and the decision to cease further development at the Driefontein Depth Extension Project as part of a rigorous
capital and economic review of the SA gold operations
- Total gold Mineral Resources increased by 12.789 Moz to 104.221Moz primarily due to the inclusion of DRDGOLD Mineral Resources
attributable to Sibanye-Stillwater
- Total group copper Mineral Resources increased marginally to 18,795.8Mlb (an increase of 0.7%), due to the inclusion of the
attributable Rio Grande Project Mineral Resources, following the successful transaction with Regulus Resources Inc. and Aldebaran
Resources Inc.
CHANGE IN BOARD OF DIRECTORS
Harry Kenyon-Slaney was appointed as an independent non-executive director with effect from 16 January 2019. Harry has over
34 years of experience in the mining industry, principally with Rio Tinto PLC. He is a geologist by training and his experience spans
operations, marketing, projects and business development. Harry is currently non-executive chairman of Gem Diamonds Limited, a
non-executive Director of Petropavlovsk plc and a senior advisor to McKinsey & Co. where he uses his wide experience to support
operational, health and safety and business transformation programmes.
SALIENT FEATURES AND COST BENCHMARKS - SIX MONTHS
SA and US PGM operations
SA REGION US REGION
Total US
PGM
Total SA PGM Kroondal Plat Mile Rustenburg Mimosa Stillwater
Total SA Under- Under-
Attributable and US PGM Total ground Surface Attributable Surface ground Surface Attributable ground(1)
Production
Tonnes milled/treated 000't Dec 2018 14,096 13,407 6,435 6,972 2,031 3,964 3,700 3,008 704 689
Jun 2018 13,084 12,434 5,945 6,489 1,835 3,748 3,412 2,741 698 650
Dec 2017 13,492 12,857 6,257 6,600 1,966 3,857 3,587 2,743 704 635
Plant head grade g/t Dec 2018 2.64 2.02 3.24 0.89 2.49 0.66 3.59 1.18 3.57 14.68
Jun 2018 2.66 2.00 3.25 0.84 2.48 0.60 3.61 1.21 3.56 15.35
Dec 2017 2.71 2.10 3.28 0.98 2.45 0.63 3.69 1.47 3.58 15.13
Plant recoveries % Dec 2018 75.74 69.77 83.56 23.30 82.92 11.65 85.00 31.93 77.23 91.23
Jun 2018 77.26 71.77 83.77 28.44 82.35 10.66 85.28 38.76 77.95 91.35
Dec 2017 75.32 69.49 83.78 24.27 81.88 13.48 85.47 30.77 78.12 90.82
Yield g/t Dec 2018 2.00 1.41 2.71 0.21 2.06 0.08 3.05 0.38 2.75 13.48
Jun 2018 2.05 1.42 2.72 0.23 2.04 0.06 3.08 0.47 2.77 14.07
Dec 2017 2.04 1.46 2.75 0.24 2.00 0.09 3.15 0.45 2.80 13.84
PGM production(2) 4Eoz - 2Eoz Dec 2018 905,155 606,506 560,154 46,352 134,712 9,860 363,136 36,492 62,306 298,649
Jun 2018 863,125 569,166 520,268 48,899 120,461 7,718 337,537 41,181 62,270 293,959
Dec 2017 886,267 603,636 553,133 50,503 126,606 10,545 363,253 39,958 63,274 282,631
PGM sold 4Eoz - 2Eoz Dec 2018 929,078 606,505 560,153 46,352 134,712 9,860 363,136 36,492 62,306 322,573
Jun 2018 840,512 569,166 520,268 48,899 120,461 7,718 337,537 41,181 62,270 271,346
Dec 2017 883,738 603,636 553,133 50,503 126,606 10,545 363,253 39,958 63,274 280,102
Price and costs(3)
Average PGM basket
price(4) R/4Eoz - R/2Eoz Dec 2018 14,614 14,729 14,809 13,862 15,189 14,174 14,668 13,777 14,293 14,407
Jun 2018 12,691 12,941 12,965 12,715 13,217 13,048 12,875 12,652 12,733 12,260
Dec 2017 12,940 13,066 13,063 13,095 13,114 13,195 13,045 13,068 13,107 12,699
US$/4Eoz - US$/2Eoz Dec 2018 1,031 1,039 1,044 978 1,071 1,000 1,034 972 1,008 1,016
Jun 2018 1,031 1,051 1,053 1,033 1,074 1,060 1,046 1,028 1,034 996
Dec 2017 965 975 974 977 978 984 973 975 978 947
Operating cost(5) R/t Dec 2018 663 482 980 74 690 22 1,139 141 926 3,612
Jun 2018 731 487 1,003 69 684 17 1,175 141 837 2,716
Dec 2017 640 502 1,010 74 626 18 1,221 153 838 3,287
US$/t Dec 2018 47 34 69 5 49 2 80 10 65 255
Jun 2018 59 40 82 6 56 1 95 11 68 221
Dec 2017 48 37 75 6 47 1 91 11 63 245
R/4Eoz - R/2Eoz Dec 2018 10,542 11,259 11,276 11,083 10,395 9,026 12,068 11,638 10,461 8,327
Jun 2018 9,344 11,277 11,497 9,221 10,424 8,253 11,879 9,402 9,377 6,010
Dec 2017 9,948 11,289 11,453 9,704 9,718 6,676 12,057 10,504 9,318 7,383
US$/4Eoz - US$/2Eoz Dec 2018 743 794 795 782 733 637 851 821 738 587
Jun 2018 759 916 934 749 847 671 965 764 762 488
Dec 2017 742 842 855 724 725 498 899 784 695 551
Adjusted EBITDA margin(6) % Dec 2018 22 27 20 27 31 44
Jun 2018 15 15 24 15 36 50
Dec 2017 16 20 41 14 32 44
All-in sustaining cost(7) R/4Eoz - R/2Eoz Dec 2018 10,431 10,706 9,547 8,966 11,141 10,077 9,929
Jun 2018 9,349 10,106 10,187 8,318 10,116 8,060 8,045
Dec 2017 9,905 10,432 10,057 6,619 10,650 9,223 8,899
US$/4Eoz - US$/2Eoz Dec 2018 736 755 673 632 786 711 701
Jun 2018 760 821 828 676 822 655 653
Dec 2017 739 778 750 494 794 688 660
All-in cost(7) R/4Eoz - R/2Eoz Dec 2018 11,534 10,750 9,547 11,369 11,141 10,077 12,964
Jun 2018 10,226 10,173 10,187 12,646 10,118 8,060 10,316
Dec 2017 10,787 10,436 10,057 6,837 10,650 9,223 11,458
US$/4Eoz - US$/2Eoz Dec 2018 813 758 673 802 786 711 914
Jun 2018 831 826 828 1,027 822 655 838
Dec 2017 805 779 750 510 794 688 855
Capital expenditure
Total capital Rm Dec 2018 2,210.9 595.8 91.5 28.4 475.9 105.2 1,615.1
expenditure(8) Jun 2018 1,622.2 404.2 49.9 38.2 316.1 65.7 1,218.0
Dec 2017 1,839.0 514.9 111.6 7.9 395.4 117.9 1,324.1
US$m Dec 2018 155.9 42.0 6.5 2.0 33.6 7.4 113.9
Jun 2018 131.7 32.8 4.1 3.1 25.7 5.3 98.9
Dec 2017 137.5 38.3 8.3 0.6 29.4 8.8 99.2
Average exchange rates for the six months ended 31 December 2018, 30 June 2018 and 31 December 2017 were R14.18/US$, R12.31/US$ and R13.41/US$, respectively
Figures may not add as they are rounded independently.
(1) 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 processes recycling material which is excluded from the statistics shown and is detailed in the PGM recycling table below.
(2) Production per product - see prill split in the table below.
(3) 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.
(4) The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment.
(5) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation and change in
inventory 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 and change in inventory in a period by the gold produced in the same period.
(6) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
(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, For a reconciliation of cost
of sales, before amortisation and depreciation to All-in cost, see "All-in costs - six months".
The US region All-in cost, excluding the corporate project expenditure (on the Altar and Marathon projects), for the six months ended 31 December 2018,
30 June 2018 and 31 December 2017 was US$912/2Eoz, US$822/2Eoz and US$845/2Eoz, respectively
(8) The US region corporate project expenditure for the six months ended 31 December 2018, 30 June 2018 and 31 December 2017 was R13.0 million
(US$0.9 million), R58.1 million (US$4.8 million) and R30.4 million (US$2.3 million), respectively, which related to the Altar and Marathon projects.
Mining - Prill split excluding recycling operations
GROUP SA REGION US REGION
Dec 2018 Dec 2018 Jun 2018 Dec 2017 Dec 2018 Jun 2018 Dec 2017
4Eoz % 4Eoz % 4Eoz % 4Eoz % 2Eoz % 2Eoz % 2Eoz %
Platinum 421,649 47% 353,703 58% 331,399 58% 349,906 58% 67,946 23% 65,952 22% 63,978 23%
Palladium 418,452 46% 187,749 31% 176,603 31% 188,784 31% 230,703 77% 228,008 78% 218,653 77%
Rhodium 51,352 5% 51,352 9% 44,252 8% 51,137 9%
Gold 13,702 2% 13,702 2% 16,912 3% 13,809 2%
PGM production 905,155 100% 606,505 100% 569,166 100% 603,636 100% 298,649 100% 293,959 100% 282,631 100%
Ruthenium 81,099 81,099 75,429 79,079
Iridium 18,628 18,628 17,218 18,086
Total 1,004,882 706,232 661,813 700,801 298,649 293,959 282,631
Recycling operation
US REGION
Unit Dec 2018 Jun 2018 Dec 2017
Average catalyst fed/day Tonne 20.3 23.8 23.9
Total processed Tonne 3,728 4,308 4,392
Tolled Tonne 467 672 637
Purchased Tonne 3,260 3,636 3,754
PGM fed 3Eoz 326,346 360,246 390,703
PGM sold 3Eoz 237,220 303,326 283,431
PGM tolled returned 3Eoz 75,916 68,256 79,888
SA gold operations
SA REGION
Total SA gold(1) Driefontein Kloof Beatrix Cooke DRDGOLD
Under- Under- Under- Under- Under-
Total ground Surface ground Surface ground Surface ground Surface ground Surface Surface
Production
Tonnes milled/treated 000't Dec 2018 18,149 2,672 15,477 684 306 864 2,588 1,050 386 74 2,293 9,904
Jun 2018 9,055 3,144 5,911 950 1,203 957 2,699 1,232 284 5 1,725
Dec 2017 9,165 3,744 5,421 1,070 2,063 1,101 1,875 1,372 304 201 1,179
Yield g/t Dec 2018 0.99 5.19 0.27 5.27 0.59 7.14 0.46 3.82 0.36 1.00 0.34 0.19
Jun 2018 2.06 5.22 0.37 5.63 0.37 7.08 0.42 3.47 0.37 1.20 0.31
Dec 2017 2.42 5.37 0.39 6.15 0.40 7.26 0.44 3.28 0.29 5.12 0.33
Gold produced kg Dec 2018 17,984 13,858 4,126 3,603 180 6,165 1,183 4,016 140 74 779 1,844
Jun 2018 18,616 16,405 2,211 5,349 441 6,775 1,130 4,275 105 6 535
Dec 2017 22,216 20,107 2,109 6,585 815 7,990 816 4,502 88 1,030 390
oz Dec 2018 578,188 445,545 132,643 115,839 5,787 198,210 38,037 129,117 4,501 2,379 25,032 59,286
Jun 2018 598,517 527,432 71,085 171,974 14,178 217,821 36,330 137,444 3,376 193 17,201
Dec 2017 714,260 646,454 67,806 211,712 26,203 256,884 26,235 144,743 2,829 33,115 12,539
Gold sold kg Dec 2018 17,873 13,851 4,022 3,603 180 6,158 1,101 4,016 140 74 731 1,870
Jun 2018 18,616 16,405 2,211 5,349 441 6,775 1,130 4,275 105 6 535
Dec 2017 22,216 20,107 2,109 6,585 815 7,990 816 4,502 88 1,030 390
oz Dec 2018 574,629 445,319 129,310 115,839 5,787 197,984 35,398 129,117 4,501 2,379 23,502 60,122
Jun 2018 598,517 527,432 71,085 171,974 14,178 217,821 36,330 137,444 3,376 193 17,201
Dec 2017 714,260 646,454 67,806 211,712 26,203 256,884 26,235 144,743 2,829 33,115 12,539
Price and costs
Gold price received R/kg Dec 2018 552,526 553,476 552,431 552,406 557,516 560,160
Jun 2018 519,994 521,123 521,392 526,370 539,556
Dec 2017 549,064 548,068 549,023 549,237 554,366
US$/oz Dec 2018 1,212 1,214 1,212 1,212 1,223 1,229
Jun 2018 1,314 1,317 1,317 1,330 1,363
Dec 2017 1,274 1,272 1,274 1,274 1,286
Operating cost(2) R/t Dec 2018 509 2,722 148 3,881 253 3,130 194 1,815 102 126 187 104
Jun 2018 925 2,330 177 2,876 204 2,773 190 1,571 107 740 151
Dec 2017 977 2,142 173 2,561 173 2,361 184 1,439 78 3,515 177
US$/t Dec 2018 36 192 10 274 18 221 14 128 7 9 13 7
Jun 2018 75 189 14 234 17 225 15 128 9 60 12
Dec 2017 73 160 13 191 13 176 14 107 6 262 13
R/kg Dec 2018 532,081 524,894 556,222 736,747 430,000 438,683 423,382 474,527 280,714 125,676 550,862 557,050
Jun 2018 449,758 446,522 473,768 510,806 555,782 391,720 452,832 452,702 290,476 616,667 486,355
Dec 2017 403,151 398,901 443,670 416,173 439,018 325,369 423,407 438,450 270,455 686,019 534,872
US$/oz Dec 2018 1,167 1,151 1,220 1,616 943 962 929 1,041 616 276 1,208 1,222
Jun 2018 1,136 1,128 1,197 1,291 1,404 990 1,144 1,144 734 1,558 1,229
Dec 2017 935 926 1,029 965 1,018 755 982 1,017 627 1,591 1,241
Adjusted EBITDA margin(3) % Dec 2018 4 (32) 20 14 (33) 3
Jun 2018 10 1 23 14 (84)
Dec 2017 25 23 39 20 (32)
All-in sustaining cost(4) R/kg Dec 2018 596,100 866,984 517,096 532,603 443,106 569,893
Jun 2018 520,488 603,092 464,301 511,712 524,954
Dec 2017 480,010 502,257 420,089 501,438 666,972
US$/oz Dec 2018 1,308 1,902 1,134 1,168 972 1,250
Jun 2018 1,315 1,524 1,173 1,293 1,326
Dec 2017 1,114 1,165 975 1,163 1,548
All-in cost(4) R/kg Dec 2018 629,296 867,010 526,615 532,940 443,106 732,086
Jun 2018 539,337 603,143 473,498 511,781 524,954
Dec 2017 498,474 504,122 429,866 501,939 666,972
US$/oz Dec 2018 1,380 1,902 1,155 1,169 972 1,606
Jun 2018 1,363 1,524 1,196 1,293 1,326
Dec 2017 1,157 1,170 997 1,165 1,548
Capital expenditure
Total capital
expenditure(5) Rm Dec 2018 1,817.3 542.1 656.0 243.4 - 317.8
Jun 2018 1,430.3 503.5 546.0 237.8 -
Dec 2017 1,776.0 621.2 693.6 265.4 -
US$m Dec 2018 128.2 38.2 46.3 17.2 - 22.4
Jun 2018 116.2 40.9 44.4 19.3 -
Dec 2017 132.7 46.4 51.9 19.7 -
Average exchange rates for the six months ended 31 December 2018, 30 June 2018 and 31 December 2017 were R14.18/US$, R12.31/US$ and R13.41/US$, respectively.
Figures may not add as they are rounded independently.
(1) The SA gold operations' results for the six months ended 31 December 2018 include DRDGOLD for the five months since acquisition.
(2) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation and change in
inventory 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 and change in inventory in a period by the gold produced in the same period.
(3) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
(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. 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 costs - six months".
(5) Corporate project expenditure for the six months ended 31 December 2018, 30 June 2018 and 31 December 2017 was R58 million (US$4.1 million),
R143.2 million (US$11.7 million), and R195.8 million (US$14.7million), respectively, the majority of which related to the Burnstone project.
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 Reviewed Unaudited Reviewed Unaudited Unaudited Reviewed Unaudited Reviewed Audited
Dec 2017 Dec 2018 Dec 2017 Jun 2018 Dec 2018 Notes Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
3,449.4 3,826.0 1,994.5 1,942.3 1,883.7 Revenue 26,746.4 23,910.0 26,692.4 50,656.4 45,911.6
Cost of sales, before amortisation and
(2,741.0) (3,135.6) (1,530.8) (1,595.6) (1,540.0) depreciation (21,872.8) (19,642.4) (20,496.0) (41,515.2) (36,482.7)
708.4 690.4 463.7 346.7 343.7 4,873.6 4,267.6 6,196.4 9,141.2 9,428.9
(428.2) ( 499.5) (239.2) (251.4) (248.1) Amortisation and depreciation (3,519.1) (3,094.7) (3,203.0) (6,613.8) (5,699.7)
31.2 36.4 16.5 15.5 20.9 Interest income 290.8 191.3 220.7 482.1 415.5
(223.3) (236.8) (114.3) (112.4) (124.4) Finance expense 2 (1,750.5) (1,384.2) (1,532.2) (3,134.7) (2,971.8)
(17.4) (22.6) (8.6) (10.9) (11.7) Share-based payments (164.7) (134.7) (115.7) (299.4) (231.9)
(83.7) 128.7 (63.9) 57.7 71.0 Gain/(loss) on financial instruments 3 993.9 710.2 (853.1) 1,704.1 (1,114.4)
22.0 88.3 (3.3) 17.1 71.2 Gain/(loss) on foreign exchange differences 959.0 210.1 (42.2) 1,169.1 292.4
Share of results of equity-accounted investees
21.9 26.0 14.5 16.1 9.9 after tax 9 145.7 198.5 193.5 344.2 291.6
(47.5) (53.3) (32.5) (30.2) (23.1) Net other costs (333.2) (372.0) (434.6) (705.2) (632.7)
(18.7) (43.5) (9.6) (22.6) (20.9) - Care and maintenance (298.2) (278.3) (128.7) (576.5) (249.2)
- Change in estimate of environmental
rehabilitation obligation, and right of recovery
(18.7) 5.0 (14.5) - 5.0 receivable and payable 66.6 - (193.6) 66.6 (248.9)
(10.1) (14.8) (8.4) (7.6) (7.2) - Other (101.6) (93.7) (112.3) (195.3) (134.6)
Gain on disposal of property, plant and
3.1 4.5 0.8 2.6 1.9 equipment 28.4 31.8 10.2 60.2 40.7
(331.4) (229.7) (119.7) (4.8) (224.9) Impairments 4 (2,981.8) (59.6) (1,615.0) (3,041.4) (4,411.0)
Gain on derecognition of borrowings and
- 17.4 - - 17.4 derivative financial instrument 10 230.0 - - 230.0 -
(83.2) (1.2) (1.7) (0.8) (0.4) Occupational healthcare expense 12 (5.2) (10.2) (29.7) (15.4) (1,106.9)
(54.8) (10.8) (43.6) (7.7) (3.1) Restructuring costs (48.4) (94.4) (581.8) (142.8) (729.8)
(41.5) (30.4) (11.1) (15.7) (14.7) Transaction costs (209.5) (193.0) (150.5) (402.5) (552.1)
(524.4) (92.6) (142.4) 21.8 (114.4) (Loss)/profit before royalties and tax (1,491.0) 266.7 (1,937.0) (1,224.3) (6,981.2)
(29.9) (16.1) (16.8) (8.4) (7.7) Royalties (108.9) (103.7) (225.6) (212.6) (398.5)
(554.3) (108.7) (159.2) 13.4 (122.1) (Loss)/profit before tax (1,599.9) 163.0 (2,162.6) (1,436.9) (7,379.7)
221.4 (81.9) 190.0 (6.9) (75.0) Mining and income tax 5 (999.1) (84.7) 2,532.2 (1,083.8) 2,946.6
(37.9) (7.2) (35.0) (12.5) 5.3 - Current tax 58.9 (154.2) (465.3) (95.3) (504.2)
259.3 (74.7) 225.0 5.6 (80.3) - Deferred tax (1,058.0) 69.5 2,997.5 (988.5) 3,450.8
(332.9) (190.6) 30.8 6.5 (197.1) (Loss)/profit for the period (2,599.0) 78.3 369.6 (2,520.7) (4,433.1)
(Loss)/profit for the period attributable to:
(333.2) (189.0) 30.6 6.4 (195.4) - Owners of Sibanye-Stillwater (2,576.3) 76.7 366.3 (2,499.6) (4,437.4)
0.3 (1.6) 0.2 0.1 (1.7) - Non-controlling interests (22.7) 1.6 3.3 (21.1) 4.3
Earnings per ordinary share (cents)
(17) (8) 1 - (9) Basic earnings per share 6.1 (114) 3 16 (110) (229)
(17) (8) 1 - (9) Diluted earnings per share 6.2 (112) 3 16 (109) (229)
1,933,850 2,263,857 2,255,316 2,261,753 2,265,988 Weighted average number of shares ('000) 6.1 2,265,988 2,261,753 2,255,316 2,263,857 1,933,850
1,933,850 2,295,762 2,255,316 2,286,925 2,297,893 Diluted weighted average number of shares ('000) 6.2 2,297,893 2,286,925 2,255,316 2,295,762 1,933,850
Headline earnings per ordinary share (cents)
(1) - 10 - - Headline earnings per share 6.3 (5) 4 87 (1) (12)
(1) - 10 - - Diluted headline earnings per share 6.4 (5) 4 87 (1) (12)
13.31 13.24 13.41 12.31 14.18 Average R/US$ rate
The condensed consolidated financial statements for the year ended 31 December 2018 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.
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 Reviewed Unaudited Reviewed Unaudited Unaudited Reviewed Unaudited Reviewed Audited
Dec 2017 Dec 2018 Dec 2017 Jun 2018 Dec 2018 Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
(332.9) (190.6) 30.8 6.5 (197.1) (Loss)/profit for the period (2,599.0) 78.3 369.6 (2,520.7) (4,433.1)
Other comprehensive income
118.6 (137.8) 62.0 (100.2) (37.6) Other comprehensive income, net of tax 454.5 1,309.6 (519.7) 1,764.1 (627.2)
- - - - - Foreign currency translation adjustments 409.9 1,309.2 (519.1) 1,719.1 (632.4)
0.4 3.4 - - 3.4 Mark to market valuation(1) 44.6 0.4 (0.6) 45.0 5.2
118.2 (141.2) 62.0 (100.2) (41.0) Currency translation adjustments(1,2) - - - - -
(214.3) (328.4) 92.8 (93.7) (234.7) Total comprehensive income (2,144.5) 1,387.9 (150.1) (756.6) (5,060.3)
Total comprehensive income attributable to:
(214.6) (326.6) 92.6 (93.8) (232.8) - Owners of Sibanye-Stillwater (2,119.4) 1,386.3 (153.4) (733.1) (5,064.6)
0.3 (1.8) 0.2 0.1 (1.9) - Non-controlling interests (25.1) 1.6 3.3 (23.5) 4.3
13.31 13.24 13.41 12.31 14.18 Average R/US$ rate
(1) These gains and losses will never be reclassified to profit or loss.
(2) The currency translation adjustments arise on the convenience translation of the SA rand amount to the US dollars.
Condensed consolidated statement of financial position
Figures are in millions unless otherwise stated
US dollar SA rand
Reviewed Reviewed Reviewed Reviewed Reviewed Audited
Dec 2017 Jun 2018 Dec 2018 Notes Dec 2018 Jun 2018 Dec 2017
5,183.6 4,875.1 4,859.2 Non-current assets 69,727.7 66,933.4 64,067.3
4,162.2 3,875.1 3,802.0 Property, plant and equipment 54,558.2 53,204.7 51,444.6
517.5 510.7 480.1 Goodwill 6,889.6 7,012.2 6,396.0
181.6 195.5 260.2 Equity-accounted investments 9 3,733.9 2,683.7 2,244.1
- - 10.9 Other investments 156.0 - -
282.6 259.5 278.7 Environmental rehabilitation obligation funds 3,998.7 3,562.4 3,492.4
23.0 21.2 21.9 Other receivables 314.4 290.6 284.0
16.7 13.1 5.4 Deferred tax assets 76.9 179.8 206.2
971.2 1,030.7 1,059.0 Current assets 15,195.3 14,150.6 12,004.5
285.3 308.5 369.0 Inventories 5,294.8 4,235.2 3,526.5
501.4 459.9 476.2 Trade and other receivables 6,833.0 6,314.8 6,197.6
2.8 2.6 2.5 Other receivables 35.2 35.2 35.2
14.8 14.3 33.7 Tax receivable 483.2 195.8 182.8
- 92.5 - Non-current assets held for sale - 1,270.0 -
166.9 152.9 177.6 Cash and cash equivalents 2,549.1 2,099.6 2,062.4
6,154.8 5,905.8 5,918.2 Total assets 84,923.0 81,084.0 76,071.8
1,941.6 1,858.2 1,723.2 Shareholders' equity 24,724.4 25,512.8 23,998.2
3,530.3 3,490.4 3,175.3 Non-current liabilities 45,566.0 47,921.7 43,635.8
1,941.1 2,065.4 1,276.4 Borrowings 10 18,316.5 28,358.0 23,992.0
88.5 22.7 28.5 Derivative financial instrument 10 408.9 311.1 1,093.5
378.5 356.8 438.6 Environmental rehabilitation obligation and other provisions 11 6,294.2 4,898.7 4,678.7
0.9 0.8 0.4 Post-retirement healthcare obligation 5.6 11.1 11.3
93.2 77.5 81.1 Occupational healthcare obligation 12 1,164.2 1,063.5 1,152.5
34.2 31.0 11.8 Share-based payment obligations 168.9 425.0 422.2
304.2 291.0 176.3 Other payables 13 2,529.2 3,995.7 3,760.4
- - 454.7 Deferred revenue 14 6,525.3 - -
689.7 645.2 707.5 Deferred tax liabilities 10,153.2 8,858.6 8,525.2
682.9 557.2 1,019.7 Current Liabilities 14,632.6 7,649.5 8,437.8
134.1 24.3 431.2 Borrowings 10 6,188.2 334.3 1,657.5
0.1 11.0 7.7 Occupational healthcare obligation 12 109.9 150.6 0.8
1.0 2.3 4.0 Share-based payment obligations 56.8 31.0 12.3
541.5 497.8 547.5 Trade and other payables 7,856.3 6,834.4 6,690.4
3.4 3.1 21.1 Other payables 13 303.3 41.9 41.9
- - 2.1 Deferred revenue 14 30.1 - -
2.8 18.7 6.1 Tax and royalties payable 88.0 257.3 34.9
6,154.8 5,905.8 5,918.2 Total equity and liabilities 84,923.0 81,084.0 76,071.8
12.36 13.73 14.35 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 Notes equity interests loss reserves capital
2,388.6 375.3 (1,562.2) 1.3 1,203.0 Balance at 31 December 2016 (Reviewed) 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
- (137.6) (189.0) (1.8) (328.4) Total comprehensive income for the period (756.6) (23.5) (2,499.6) 1,766.5 -
- - (189.0) (1.6) (190.6) Loss for the period (2,520.7) (21.1) (2,499.6) - -
- (137.6) - (0.2) (137.8) Other comprehensive income 1,764.1 (2.4) - 1,766.5 -
- - - - - Dividends paid (0.6) (0.6) - - -
- 21.3 - - 21.3 Share-based payments 281.7 - - 281.7 -
Acquisition of subsidiary with non-controlling
- - - 69.4 69.4 interests 8 940.3 940.3 - - -
- - 19.3 - 19.3 Transaction with DRDGOLD shareholders 8 261.4 - 261.4 - -
3,367.6 393.9 (2,107.5) 69.2 1,723.2 Balance at 31 December 2018 (Reviewed) 24,724.4 936.0 (15,495.8) 4,617.2 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 Audited
Dec 2017 Dec 2018 Dec 2017 Jun 2018 Dec 2018 Notes Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Cash flows from operating activities
532.8 657.3 388.3 294.4 362.9 Cash generated by operations 5,078.5 3,623.9 5,182.4 8,702.4 7,091.5
- 495.1 - - 495.1 Deferred revenue advance received 14 6,555.4 - - 6,555.4 -
(32.6) (1.6) - (0.6) (1.0) Cash-settled share-based payments paid (14.2) (7.5) (2.4) (21.7) (433.6)
(39.2) (80.8) (159.3) (39.7) (41.1) Change in working capital (581.6) (488.4) (2,108.7) (1,070.0) (522.3)
461.0 1,070.0 229.0 254.1 815.9 11,038.1 3,128.0 3,071.3 14,166.1 6,135.6
8.9 14.7 5.0 7.1 7.6 Interest received 107.1 87.6 66.9 194.7 118.7
(154.3) (122.4) (71.0) (68.0) (54.4) Interest paid (783.3) (837.5) (953.7) (1,620.8) (2,053.9)
(29.1) (17.7) (14.3) (5.9) (11.8) Royalties paid (161.3) (73.1) (192.1) (234.4) (387.4)
(38.5) (23.2) (25.8) 2.4 (25.6) Tax (paid)/refund received (337.2) 29.4 (344.2) (307.8) (511.9)
(42.4) - - - - Dividends paid - (0.6) (0.2) (0.6) (560.4)
205.6 921.4 122.9 189.7 731.7 Net cash from operating activities 9,863.4 2,333.8 1,648.0 12,197.2 2,740.7
Cash flows from investing activities
(458.1) (534.8) (270.1) (249.1) (285.7) Additions to property, plant and equipment (4,014.8) (3,065.9) (3,614.8) (7,080.7) (6,098.8)
5.4 6.2 2.9 3.3 2.9 Proceeds on disposal of property, plant and equipment 41.5 40.4 38.3 81.9 71.3
(2,097.0) - - - - Acquisition of subsidiaries - - - - (27,386.4)
137.2 21.7 - - 21.7 Cash acquired on acquisition of subsidiaries 8 282.8 - - 282.8 1,792.2
- 19.3 - - 19.3 Proceeds on loss of control of subsidiaries 256.1 - - 256.1 -
Payment of Deferred Payment (related to the Rustenburg
operations acquisition) (38.6) - - (38.6) -
(103.9) - - (103.9) Payments to dissenting shareholders 13 (1,375.8) - - (1,375.8) -
9.5 - - 9.5 Dividends received 125.2 - - 125.2 -
7.8 - - 7.8 Preference shares redeemed 9 102.8 - - 102.8 -
(1.0) (0.2) (0.5) (0.2) - Loan advanced to equity-accounted investee (0.8) (2.3) (6.4) (3.1) (13.5)
Contributions to funds and payment of environmental
(8.6) (7.2) (8.4) (0.1) (7.1) rehabilitation obligation (93.6) (1.7) (111.9) (95.3) (114.5)
Proceeds on disposal of marketable securities
272.9 0.1 - - 0.1 investments 1.2 - - 1.2 3,605.3
(2,149.2) (581.5) (276.1) (246.1) (335.4) Net cash used in investing activities (4,714.0) (3,029.5) (3,694.8) (7,743.5) (28,144.4)
Cash flows from financing activities
5,228.7 1,293.8 1,087.1 650.1 643.7 Loans raised 10 9,127.4 8,002.8 14,882.8 17,130.2 69,593.8
(4,186.3) 1,603.6) (1,259.9) (601.3) (1,002.3) Loans repaid 10 (13,829.6) (7,401.9) (17,061.2) (21,231.5) (55,719.5)
979.0 - (2.3) - - Net proceeds from rights issue - - (30.1) - 12,932.4
2,021.4 (309.8) (175.1) 48.8 (358.6) Net cash from financing activities (4,702.2) 600.9 (2,208.5) (4,101.3) 26,806.7
77.8 30.1 (328.3) (7.7) 37.7 Net increase in cash and cash equivalents 447.2 (94.8) (4,255.3) 352.4 1,403.0
18.4 (19.4) (4.3) (6.3) (13.0) Effect of exchange rate fluctuations on cash held 2.3 132.0 (205.5) 134.3 (308.5)
70.7 166.9 499.5 166.9 152.9 Cash and cash equivalents at beginning of the period 2,099.6 2,062.4 6,523.2 2,062.4 967.9
166.9 177.6 166.9 152.9 177.6 Cash and cash equivalents at end of the period 2,549.1 2,099.6 2,062.4 2,549.1 2,062.4
13.31 13.24 13.41 12.31 14.18 Average R/US$ rate
12.36 14.35 12.36 13.73 14.35 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 framework concepts, and the measurement and recognition requirements
of International Financial Reporting Standards (IFRS), and the South African Institute of Chartered Accountants 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, except for the accounting policy (including significant
accounting judgements and estimates) of deferred revenue (on gold and palladium streaming transaction), and the adoption of
IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers. These two standards had no significant impact on
the Group's measurement and recognition principles.
- Deferred revenue
Significant accounting judgements and estimates
The upfront cash advance received from Wheaton Precious Metals International Limited (Wheaton International) on the gold and
palladium streaming transaction has been accounted for as a contract liability (deferred revenue) in the scope of IFRS 15 (refer to
note 14). It has been determined that the contract is not a financial instrument because the contract will be satisfied through the
delivery of non-financial items (i.e. gold and palladium metal credits) as part of expected sale requirements, rather than cash or
financial assets. It is the intention to satisfy the performance obligations under the streaming arrangement through Stillwater's
production and revenue will be recognised over the life of mine as Sibanye-Stillwater satisfies its obligation to deliver metal credits.
As Sibanye-Stillwater received a portion of the consideration from Wheaton International at inception of the contract, it has been
determined that the contract contains a significant financing component under IFRS 15. Therefore, management made a critical
estimate of the discount rate that should be applied to the contract liability over the life of mine.
The advance received has been recognised on the statement of financial position as deferred revenue. The deferred revenue will
be recognised as revenue in profit or loss as the metal credits are delivered to Wheaton International relative to the expected total
amount of metal credits to be delivered over the term of the arrangement. Each period management will estimate the cumulative
amount of the deferred revenue obligation that has been satisfied and therefore recognised as revenue.
Key inputs into the model to unwind the advance received to revenue are:
- Estimated financing rate over life of arrangement: 5.4% (based on the rate that would be reflected in a similar separate
financing transaction at contract inception)
- Life of stream: 77 years (based on the life of mine of Stillwater, including 50% of inferred resources)
Any changes to the key inputs could significantly change the quantum of the cumulative revenue amount recognised in profit or loss.
Accounting policy
The transaction price, being the advance received and the cash payment to be received, is recognised as revenue each month
when the metal credit is allocated to the appropriate Wheaton International account. It is from this date that Wheaton
International has effectively accepted the metal, has physical control of the metal and has the risk and reward of the metal
(i.e. control has transferred). Revenue will be recognised over the life of mine of Stillwater. Changes to the life of mine or other key
inputs are recognised prospectively as a cumulative catch-up in revenue in the year of the change.
Interest expense on deferred revenue is recognised in finance expense. The interest rate is determined based on the rate that
would be reflected in a separate financing transaction at contract inception.
- Impact of adoption of IFRS 15
On 1 January 2018, the Group adopted IFRS 15, which requires that revenue from contracts with customers be recognised upon
the transfer of control over goods or services to the customer. The recognition of revenue upon transfer of control to the customer
is consistent with the revenue recognition policy as set out in the consolidated annual financial statements for the year ended
31 December 2017, as the condition is generally satisfied when title transfers to the customer. As such, on adoption, this requirement
under IFRS 15 resulted in no impact to the Group's financial statements as the timing of revenue recognition on gold and PGM
sales is unchanged.
- Impact of adoption of IFRS 9
On 1 January 2018, the Group adopted IFRS 9, which replaces the provisions of IAS 39 Financial Instruments: Recognition and
Measurement that relate to the recognition, classification and measurement of financial assets and financial liabilities,
derecognition of financial instruments, impairment of financial assets and hedge accounting. On adoption, the mark-to-market
valuation recognised in the consolidated statement of other comprehensive income remains recognised in the consolidated
statement of other comprehensive income, but will not be reclassified to profit or loss in future.
The Group designated its equity securities as financial assets at fair value through other comprehensive income (OCI), which will
be recorded initially at fair value. Subsequent changes in fair value will be recognised in OCI only and will not be reclassified to
profit or loss on derecognition. As a result of this change, there was no impact to the Group's financial statements.
The adoption of the new "expected credit loss" impairment model under IFRS 9, as opposed to an incurred credit loss model under
IAS 39, had a negligible impact on the carrying amounts of the Group's financial assets given the Group transacts exclusively with
a limited number of large international institutions and other organisations with strong credit ratings and the negligible historical
level of customer default.
The condensed consolidated income statement, and statements of other comprehensive income and cash flows for the six months
ended 31 December 2017 were not reviewed by the Company's auditor and were prepared by subtracting the reviewed
condensed consolidated financial statements for the six months ended 30 June 2017 from the audited comprehensive consolidated
financial statements for the year ended 31 December 2017. The condensed consolidated income statement, and statements of
other comprehensive income and cash flows for the six months ended 31 December 2018 have not been reviewed and were
prepared by subtracting the reviewed condensed consolidated financial statements for the six months ended 30 June 2018 from
the reviewed condensed consolidated preliminary financial statements for the year ended 31 December 2018.
The translation of the primary statements into US dollar is based on the average exchange rate for the period for the condensed
consolidated income statement and statements of other comprehensive income and cash flows, and the period-end closing
exchange rate for the statement of financial position. Exchange differences on translation are accounted for in the statement of
other comprehensive income. This information is provided as supplementary information only.
2. Finance expense
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Notes Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Interest charge on:
Borrowings - interest (771.6) (800.9) (1,020.4) (1,572.5) (2,121.7)
- US$600 million revolving credit facility (RCF) (21.1) (4.9) - (26.0) -
- R6.0 billion RCF, R4.5 billion Facilities, and other borrowings (Rand Facilities) (287.4) (280.6) (280.6) (568.0) (580.1)
- US$350 million RCF - (36.0) (45.4) (36.0) (84.6)
- 2022 and 2025 Notes (408.9) (427.7) (470.6) (836.6) (478.1)
- US$ Convertible Bond (54.2) (51.7) (29.8) (105.9) (29.8)
- Stillwater Bridge Facility - - (194.0) - (949.1)
Borrowings - unwinding of amortised cost (356.8) (181.5) (152.0) (538.3) (222.0)
- 2022 and 2025 Notes (169.2) (27.5) (29.3) (196.7) (29.7)
- US$ Convertible Bond (96.3) (89.5) (50.7) (185.8) (50.7)
- Burnstone Debt (88.4) (64.5) (72.0) (152.9) (141.6)
- Other (2.9) - - (2.9) -
Environmental rehabilitation obligation 11 (209.3) (189.5) (177.8) (398.8) (357.1)
Occupational healthcare obligation 12 (54.8) (50.6) (46.4) (105.4) (46.4)
Deferred Payment (related to the Rustenburg operations acquisition) (100.2) (100.2) (74.1) (200.4) (148.2)
Dissenting shareholders 13 (25.2) (42.9) (48.8) (68.1) (62.9)
Deferred revenue (related to the Streaming Transaction)(1) 14 (160.3) - - (160.3) -
Other (72.3) (18.6) (12.7) (90.9) (13.5)
Total finance expense (1,750.5) (1,384.2) (1,532.2) (3,134.7) (2,971.8)
(1) For the six months ended 31 December 2018, finance expense includes R160 million non-cash interest relating to the gold and palladium streaming
arrangement with Wheaton International. Although there is no cash financing cost related to this arrangement, IFRS 15 requires Sibanye-Stillwater to recognise a notional
financing charge due to the significant time delay between receiving the upfront streaming payment and satisfying the related metal credit deliveries. A discount rate of 5.4% was used
in determining the finance expense to be recognised as part of the steaming transaction.
3. Gain/(loss) on financial instruments
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Notes Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Fair value gain/(loss) on foreign currency hedge (6.3) 31.6 (25.1) 25.3 (362.1)
Fair value (loss)/gain on rand gold forward sale contracts (1) (89.4) (91.2) 17.4 (180.6) 17.4
Fair value loss on Anglo American Platinum financial assets - - (467.5) - (467.5)
Gain on the revised cash flow of the Burnstone Debt 10 804.6 - 74.7 804.6 181.7
Fair value gain/(loss) on derivative financial instrument 10 (132.0) 810.1 115.9 678.1 115.9
Fair value adjustment of share-based payment obligations(2) 271.5 (21.6) (171.3) 249.9 (171.3)
Gain/(loss) on the revised cash flow of the Deferred Payment(3) 150.6 - (469.1) 150.6 (469.1)
Other (5.1) (18.7) 71.9 (23.8) 40.6
Total gain/(loss) on financial instruments 993.9 710.2 (853.1) 1,704.1 (1,114.4)
(1) At the end of 2017 and during 2018, Sibanye-Stillwater began a hedging programme for Sibanye Gold Limited and Rand Uranium Proprietary
Limited by entering into commodity hedging contracts. The contracts comprise gold zero cost collars which establish a minimum (floor)
and maximum (cap) gold sales price. At 31 December 2018, the net rand gold
forward sale contracts financial liability was R240.8 million and the realised gains R76.9 million. As hedge accounting is not applied,
resulting gains or losses are accounted for as gains or losses on financial instruments in profit or loss.
(2) At 31 December 2018, the share-based payment on BEE transaction obligation (which is related to the Rustenburg Operations acquisition)
was remeasured resulting in a fair value adjustment in profit or loss.
(3) 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. The Anglo American Platinum financial asset and Deferred Payment were initially
recognised at fair value and at 31 December 2018, the free cash flows were revised resulting in a fair value gain of R150.6 million.
4. Impairments
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Impairment of property, plant and equipment (2,543.7) (59.6) (1,511.9) (2,603.3) (4,303.4)
Impairment of goodwill (436.3) - (99.1) (436.3) (99.1)
Impairment of loan to equity-accounted investee (1.8) - (4.0) (1.8) (8.5)
Total impairments (2,981.8) (59.6) (1,615.0) (3,041.4) (4,411.0)
Impairment of Driefontein, Kloof and Beatrix mining assets and goodwill
Ongoing losses experienced at the Driefontein and Beatrix operations negatively affected group cash flow as well as the
sustainability and economic viability of other operations in the Southern Africa region. As a result a decision was taken during the six
months ended 31 December 2018, to impair the mining assets of and goodwill allocated to Driefontein by R2,171.8 million and
R166.9 million, respectively, goodwill allocated to Kloof by R165.5 million, and mining assets of and goodwill allocated to Beatrix by
R166.9 million and R103.9 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 reserves and costs to extract the gold.
Impairment of Burnstone mine development assets
Development of the Burnstone project is deferred to 2020 and as a result a decision was taken at 31 December 2018 to impair the
mine development assets of Burnstone by R193.6 million. This impairment was 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.
The annual life-of-mine plan that takes into account the following:
- Proved and probable ore reserves of the cash-generating units;
- Resources valued using appropriate price assumptions;
- Cash flows based on the life-of-mine plan; and
- Capital expenditure estimates over the life-of-mine plan.
The Group's estimates and assumptions used in the 31 December 2018 calculation include:
PGM operations Gold operations
Audited Reviewed Reviewed Audited
Dec 2017 Dec 2018 Dec 2018 Dec 2017
Long-term gold price R/kg 585,500 545,000
14,270 15,050 R/4Eoz Long-term PGM (4E) basket price
1,015 1,010 US$/2Eoz Long-term PGM (2E) basket price
14.5 14.3 % Nominal discount rate - South Africa(1) % 12.6 12.1
8.9 8.5 Nominal discount rate - United States
6.0 5.0 % Inflation rate - South Africa % 5.0 6.0
2.1 1.9 % Inflation rate - United States
9 - 34 12 - 28 years Life of mine years 5 - 20 12 - 22
(1) Nominal discount rate for Burnstone of 17.4%.
5. Mining and income tax
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Tax on profit before tax at maximum South African statutory company tax rate (of 28%) 447.9 (45.6) 605.5 402.3 2,066.3
on-deductible finance expense (118.2) - 36.4 (118.2) (165.8)
Non-taxable gain/(non-deductible loss) on fair value of financial instruments 171.0 (34.1) (37.7) 136.9 (42.9)
Non-taxable gain/(non-deductible loss) on foreign exchange differences 244.1 6.2 47.8 250.3 45.0
Non-deductible impairments (122.7) (0.5) (1,053.6) (123.2) (1,054.9)
Non-deductible transaction costs (110.0) - (35.1) (110.0) (154.6)
Tax adjustment in respect of prior periods (46.6) 98.0 - 51.4 -
Net other non-taxable income and non-deductible expenditure 0.1 47.6 96.8 47.7 (14.5)
Change in estimated deferred tax rate(1,2) (1,295.2) - 2,571.1 (1,295.2) 2,571.1
(Increase)/decrease of deferred tax assets not recognised (169.5) (156.3) 301.0 (325.8) (303.1)
Mining and income tax (999.1) (84.7) 2,532.2 (1,083.8) 2,946.6
(1) The change in the estimated long term deferred tax rate, as a result of applying the mining tax formula at the SA gold operations, at which the temporary differences will reverse
amounted to a deferred tax benefit of R249.5 million for the year ended 31 December 2018.
(2) During the six months ended 31 December 2018, the New Jersey Governor signed a number of bills that implement numerous tax changes which affected the US PGM operations. The
most significant change in the law resulted in tax being calculated together on all US entities under common control (greater than 50% voting ownership). This resulted in an increase in
the estimated deferred tax rate relating to the US PGM operations and a deferred tax charge of R1,544.7 million (US$107.7 million).
6. Earnings per share
6.1 Basic earnings per share
Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Ordinary shares in issue ('000) 2,266,261 2,265,478 2,168,721 2,266,261 2,168,721
Bonus element of the capitalisation issue ('000) - 402 86,749 402 86,749
Adjustment for weighting of ordinary shares in issue ('000) (273) (4,127) (154) (2,806) (321,620)
Adjusted weighted average number of shares ('000) 2,265,988 2,261,753 2,255,316 2,263,857 1,933,850
(Loss)/profit attributable to owners of Sibanye-Stillwater (SA rand million) (2,576.3) 76.7 366.3 (2,499.6) (4,437.4)
Basic earnings per share (EPS) (cents) (114) 3 16 (110) (229)
6.2 Diluted earnings per share
Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Weighted average number of shares
Adjusted weighted average number of shares ('000) 2,265,988 2,261,753 2,255,316 2,263,857 1,933,850
Potential ordinary shares ('000) 31,905 25,172 - 31,905 -
Diluted weighted average number of shares ('000) 2,297,893 2,286,925 2,255,316 2,295,762 1,933,850
Diluted basic EPS (cents) (112) 3 16 (109) (229)
6.3 Headline earnings per share
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
(Loss)/profit attributable to owners of Sibanye-Stillwater (2,576.3) 76.7 366.3 (2,499.6) (4,437.4)
Gain on disposal of property, plant and equipment (28.4) (31.8) (10.2) (60.2) (40.7)
Impairments 2,981.8 59.6 1,615.0 3,041.4 4,411.0
Taxation effect of re-measurement items (494.7) (3.5) (13.2) (498.2) (156.8)
Headline earnings (117.6) 101.0 1,957.9 (16.6) (223.9)
Headline EPS (cents) (5) 4 87 (1) (12)
6.4 Diluted headline earnings per share
Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Diluted headline EPS (cents) (5) 4 87 (1) (12)
7. Dividends
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. The Board, therefore, considers normalised earnings in
determining what value will be distributed to shareholders. The Board 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, gain on disposal of property, plant and equipment, impairments, gain on derecognition of borrowings, 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
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
(Loss)/profit attributable to the owners of Sibanye-Stillwater (2,576.3) 76.7 366.3 (2,499.6) (4,437.4)
Adjusted for:
(Gain)/loss on financial instruments (993.9) (710.2) 853.1 (1,704.1) 1,114.4
(Gain)/loss on foreign exchange differences (959.0) (210.1) 42.2 (1,169.1) (292.4)
Gain on disposal of property, plant and equipment (28.4) (31.8) (10.2) (60.2) (40.7)
Impairments 2,981.8 59.6 1,615.0 3,041.4 4,411.0
Gain on derecognition of borrowings (230.0) - - (230.0) -
Occupational healthcare expense 5.2 10.2 29.7 15.4 1,106.9
Restructuring costs 48.4 94.4 581.8 142.8 729.8
Transaction costs 209.5 193.0 150.5 402.5 552.1
Other 5.4 13.3 17.3 18.7 52.7
Tax effect of the items adjusted above (527.9) 182.2 (358.9) (345.7) (813.4)
Change in estimated deferred tax rate 1,295.2 - (2,571.1) 1,295.2 (2,571.1)
Share of results of equity-accounted investees after tax (145.7) (198.5) (193.5) (344.2) (291.6)
Normalised earnings(1) (915.7) (521.2) 522.2 (1,436.9) (479.7)
(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. DRDGOLD acquisition
On 22 November 2017, Sibanye-Stillwater announced that it had entered into various agreements with DRDGOLD Limited
(DRDGOLD) in terms of which, Sibanye-Stillwater will exchange selected surface gold processing assets and tailings storage facilities
(TSF) (the "Far West Gold Recoveries", previously known as the West Rand Tailing Retreatment Project (WRTRP)) for approximately
265 million newly issued DRDGOLD shares (the DRDGOLD Transaction), or 38.05% of the issued share capital of DRDGOLD. In addition,
pursuant to the DRDGOLD Transaction, Sibanye-Stillwater has an option to subscribe for a sufficient number of DRDGOLD ordinary
shares to attain a 50.1% shareholding in DRDGOLD at a 10% discount to the 30 day volume weighted average traded price.
Sibanye-Stillwater received approval for the DRDGOLD Transaction from the South African competition authorities in accordance
with the Competition Act and on 19 July 2018 all the conditions precedent to the DRDGOLD Transaction were fulfilled. Sibanye-
Stillwater obtained control (38.05%) of (and consolidated DRDGOLD) on this date, as a result of the option which is considered
substantive. The effective date of the implementation of the DRDGOLD Transaction was 31 July 2018, when Sibanye-Stillwater was
issued the newly issued DRDGOLD shares.
For the five months ended 31 December 2018, DRDGOLD contributed revenue of R1,047.5 million and a net loss of R39.9 million to
the Group's results, before Sibanye-Stillwater Group adjustments.
The purchase price allocation has been prepared on a provisional basis in accordance with IFRS 3. If new information obtained
within one year of the acquisition date, in particular relating to contingent liabilities, 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.
Acquisition related costs
The Group incurred acquisition related costs of R25.0 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 - SA rand
Reviewed
Dec 2018
Property, plant and equipment 1,443.2
Environmental rehabilitation obligation funds 244.7
Other non-current assets 28.7
Inventories 243.5
Trade and other receivables 138.4
Cash and cash equivalents 282.8
Environmental rehabilitation obligation and other provisions (672.7)
Deferred tax liabilities (132.2)
Other non-current liabilities (54.9)
Trade and other payables (337.1)
Other current liabilities (17.6)
Total fair value of identifiable net assets acquired (1) 1,166.8
(1) The fair value of assets and liabilities, excluding property, plant and equipment, 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 9.3%, an average gold price of R580,000/kg.
Goodwill
Goodwill has been calculated as follows:
Figures in million - SA rand
Reviewed
Dec 2018
Transaction with DRDGOLD shareholders (Consideration)(1) 261.4
Fair value of identifiable net assets acquired (1,166.8)
Non-controlling interest, based on the proportionate interest in the recognised amounts of assets and liabilities(2) 940.3
Goodwill 34.9
(1) The purchase consideration was calculated as 61.95% of the fair value of Far West Gold Recoveries assets and liabilities. The fair value of assets and liabilities, excluding property, plant
and equipment, 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 13.3%, an average gold price of R580,000/kg.
Although Sibanye-Stillwater exchanged (i.e. disposed) the Far West Gold Recoveries assets and liabilities, the Group effectively retains control. The transaction with DRDGOLD
shareholders, therefore, represents the difference between 61.95% of the fair value and carrying value of Far West Gold Recoveries assets and liabilities.
(2) Non-controlling interest, based on the proportionate interest (of 61.95%) in the recognised amounts of the assets and liabilities.
The goodwill has been provisionally allocated to the DRDGOLD cash-generating unit. None of the goodwill recognised is expected
to be deducted for tax purposes.
9. Equity-accounted investments
The Group holds the following equity-accounted investments:
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Note Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Balance at beginning of the period 2,683.7 2,244.1 2,164.0 2,244.1 2,157.4
Share of results of equity-accounted investee after tax 145.7 198.5 193.5 344.2 291.6
- Mimosa 74.8 135.7 89.9 210.5 175.0
- Rand Refinery Proprietary Limited (Rand Refinery) 77.2 66.5 107.6 143.7 124.5
- Other (6.3) (3.7) (4.0) (10.0) (7.9)
Dividend received from equity-accounted investee (87.0) - - (87.0) -
Preference shares redeemed (102.8) - - (102.8) -
Net loan advanced to equity-accounted investee 0.8 0.6 2.4 1.4 5.0
Equity-accounted investment retained on loss of control of subsidiary(1) 956.0 - - 956.0 1.5
Foreign currency translation 137.5 240.5 (115.8) 378.0 (211.4)
Balance at end of the period 3,733.9 2,683.7 2,244.1 3,733.9 2,244.1
Equity accounted investments consist of:
- Mimosa 2,492.4 2,389.2 2,012.9 2,492.4 2,012.9
- Rand Refinery 239.3 264.9 198.4 239.3 198.4
- Peregrine Metals Ltd (Peregrine)(1) 978.0 - - 978.0 -
- Other equity-accounted investments 24.2 29.6 32.8 24.2 32.8
Equity-accounted investments 3,733.9 2,683.7 2,244.1 3,733.9 2,244.1
(1) On 29 June 2018, Sibanye-Stillwater announced that it had entered into an Arrangement Agreement with Regulus Resources Inc. (Regulus) and a newly formed subsidiary of Regulus,
Aldebaran Resources Inc. (Aldebaran), creating a strategic partnership in order to unlock value at its Altar copper-gold project in San Juan Province, Argentina (Altar Project),
currently held as part of the US region. Under the terms of the Arrangement Agreement, Stillwater Canada LLC, an indirect, wholly-owned subsidiary of Sibanye-Stillwater (Stillwater
Canada), entered into an option and joint venture agreement with Aldebaran, whereby Aldebaran has the option to earn into a maximum 80% interest in a wholly-owned subsidiary
of Stillwater Canada, Peregrine, which owns the Altar Project.
The consideration for Aldebaran to acquire up to an 80% interest in the Altar Project, included:
- an upfront cash payment of US$15 million to Sibanye-Stillwater on closing of the Arrangement Agreement;
- 19.9% of the shares of Aldebaran, subject to proration if the initial financing exceeds US$30 million (up to a maximum of US$40 million); and
- a commitment from Aldebaran to carry the next US$30 million of spend at the Altar Project over a maximum of five years (inclusive of 2018 drilling that was conducted between
February and May of this year) as an initial earn-in of a 60% interest in the Altar Project (the Initial Earn-in).
Pursuant to the Arrangement Agreement, Aldebaran may also elect to earn-in an additional 20% interest in the Altar Project by spending an additional US$25 million over a three-year
period following the Initial Earn-in.
Peregrine was a subsidiary of Stillwater Canada. On 25 October 2018, Aldebaran issued an aggregate of 15,449,555 Aldebaran shares to Sibanye-Stillwater, representing 19.9% of the
current 77,635,957 issued and outstanding Aldebaran shares, and made an upfront cash payment of US$15 million to Sibanye-Stillwater in accordance with the Arrangement
Agreement. From this date, Stillwater Canada and Aldebaran act together to direct the relevant activities of and, therefore, collectively control Peregrine. As a result of loss of control,
Peregrine was derecognised as a subsidiary and accounted for as an equity-accounted investment.
10. Borrowings
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Balance at beginning of the period 28,692.3 25,649.5 30,208.5 25,649.5 8,973.8
Borrowings acquired on acquisition of subsidiary - - - - 5,937.6
Loans raised 9,127.4 8,002.8 13,586.2 17,130.2 68,297.2
- US$600 million RCF 3,478.2 1,913.4 - 5,391.6 -
- R6.0 billion RCF - 360.0 - 360.0 800.0
- US$350 million RCF - 580.0 538.5 580.0 1,031.4
- Other borrowings (including DRDGOLD facility) 5,649.2 5,149.4 8,413.2 10,798.6 14,721.5
- 2022 and 2025 Notes - - - - 13,109.5
- US$ Convertible Bond - - 4,634.5 - 4,634.5
- Stillwater Bridge Facility - - - - 34,000.3
Loans repaid (13,829.6) (7,401.9) (17,061.2) (21,231.5) (55,719.5)
- US$600 million RCF (2,459.5) (285.2) - (2,744.7) -
- R6.0 billion RCF - - (363.6) - (363.6)
- US$350 million RCF - (1,779.6) (1,198.2) (1,779.6) (1,198.2)
- Other borrowings (including DRDGOLD facility) (5,517.5) (5,337.1) (7,934.5) (10,854.6) (14,992.3)
- 2022 and 2025 Notes1 (5,107.4) - - (5,107.4) -
- US$ Convertible Bond2 (745.2) - - (745.2) -
- Stillwater Bridge Facility - - (7,564.9) - (33,304.0)
- Stillwater Convertible Debentures - - - - (5,861.4)
Unwinding of loans recognised at amortised cost 305.1 233.2 181.8 538.3 222.1
Accrued interest 514.8 427.7 478.1 942.5 507.8
Accrued interest paid (391.2) (516.0) (431.5) (907.2) (431.5)
Gain on derecognition of borrowings(1,2) (179.7) - - (179.7) -
Gain on the revised cash flow of the Burnstone Debt (804.6) - (74.7) (804.6) (181.7)
Loss/(gain) on foreign exchange differences and foreign currency translation 1,070.2 2,297.0 (1,237.7) 3,367.2 (1,956.3)
Balance at end of the period 24,504.7 28,692.3 25,649.5 24,504.7 25,649.5
(1) On 19 September 2018, Sibanye-Stillwater concluded the repurchase of a portion of the 6.125% Notes due on 27 June 2022 (the 2022 Notes) and 7.125% Notes due on 27 June 2025
(the 2025 Notes) issued by Stillwater Mining Company (Stillwater). The total purchase price was approximately US$345 million (with a nominal value of US$349 million) and was funded
from existing cash resources, including the US$500 million advance proceeds of the streaming transaction (refer to note 14). As a result, a gain on early settlement of the 2022 and 2025
Notes of R128.8 million was recognised in profit or loss.
(2) On 11 September 2018, Sibanye-Stillwater concluded the repurchase of a portion of the US$ Convertible Bond. An aggregate principal amount of US$66 million for a total purchase
price of approximately US$50 million was repurchased. Sibanye-Stillwater funded the repurchase from existing cash resources, including the US$500 million advance proceeds of the
streaming transaction (refer to note 14). As a result, a gain on early settlement of the US$ Convertible Bond of R50.9 million was recognised in profit or loss.
Borrowings consist of:
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
US$600 million RCF 2,726.5 1,757.5 - 2,726.5 -
R6.0 billion RCF 5,896.4 5,896.4 5,536.4 5,896.4 5,536.4
US$350 million RCF - - 1,137.1 - 1,137.1
2022 and 2025 Notes 9,808.7 14,022.2 12,597.7 9,808.7 12,597.7
US$ Convertible Bond 4,496.6 4,939.7 4,357.1 4,496.6 4,357.1
Burnstone Debt 1,145.1 1,780.0 1,537.5 1,145.1 1,537.5
Other borrowings 431.4 296.5 483.7 431.4 483.7
- Uncommitted (short-term) facilities 252.3 291.0 478.7 252.3 478.7
- DRDGOLD facility 173.3 - - 173.3 -
- Franco Nevada liability 2.0 1.9 1.7 2.0 1.7
- Stillwater Convertible Debentures 3.8 3.6 3.3 3.8 3.3
Borrowings 24,504.7 28,692.3 25,649.5 24,504.7 25,649.5
Current portion of borrowings (6,188.2) (334.3) (1,657.5) (6,188.2) (1,657.5)
Non-current borrowings 18,316.5 28,358.0 23,992.0 18,316.5 23,992.0
Derivative financial instrument (related to the US$ Convertible Bond)
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Balance at the beginning of the period 311.1 1,093.5 - 1,093.5 -
Loss/(gain) of financial instruments 132.0 (810.1) (115.9) (678.1) (115.9)
Gain on derecognition of derivative financial instrument(1) (50.3) - - (50.3) -
Derivative financial instruments recognised - - 1,296.6 - 1,296.6
Loss/(gain) on foreign exchange differences 16.1 27.7 (87.2) 43.8 (87.2)
Balance at the end of the period 408.9 311.1 1,093.5 408.9 1,093.5
(1) On 11 September 2018, Sibanye-Stillwater concluded the repurchase of a portion of the US$ Convertible Bond. As a result, a gain on derecognition of a portion of the derivative
financial instrument of R50.3 million was recognised in profit or loss.
10.1 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
31 December 2018
US$600 million RCF 2,726.5 - 2,726.5 -
R6.0 billion RCF 5,896.4 5,896.4 - -
2022 and 2025 Notes 10,053.6 - 5,075.6 4,978.0
US$ Convertible Bond 5,510.4 5,510.4 -
Burnstone Debt 2,552.9 - - 2,552.9
Other borrowings 258.1 258.1 - -
Net debt to adjusted EBITDA
Figures in million - SA rand
Unaudited Reviewed Unaudited
Dec 2018 Jun 2018 Dec 2017
Borrowings(1) 23,768.5 27,223.4 25,205.5
Cash and cash equivalents(2) 2,499.4 2,066.7 2,029.8
Net debt(3) 21,269.1 25,156.7 23,175.7
Adjusted EBITDA(4) 8,369.4 9,851.0 9,045.1
Net debt to adjusted EBITDA (ratio)(5) 2.5 2.6 2.6
(1) Borrowings are only those borrowings that have recourse to Sibanye-Stillwater. 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.
Reconciliation of (loss)/profit before royalties and tax to adjusted EBITDA:
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
(Loss)/profit before royalties and tax (1,491.0) 266.7 (1,937.0) (1,224.3) (6,981.2)
Adjusted for:
Amortisation and depreciation 3,519.1 3,094.7 3,203.0 6,613.8 5,699.7
Interest income (290.8) (191.3) (220.7) (482.1) (415.5)
Finance expense 1,750.5 1,384.2 1,532.2 3,134.7 2,971.8
Share-based payments 164.7 134.7 115.7 299.4 231.9
(Gain)/loss on financial instruments (993.9) (710.2) 853.1 (1,704.1) 1,114.4
(Gain)/loss on foreign exchange differences (959.0) (210.1) 42.2 (1,169.1) (292.4)
Share of results of equity-accounted investees after tax (145.7) (198.5) (193.5) (344.2) (291.6)
Change in estimate of environmental rehabilitation obligation, and right of recovery receivable and
payable (66.6) - 193.6 (66.6) 248.9
Gain on disposal of property, plant and equipment (28.4) (31.8) (10.2) (60.2) (40.7)
Impairments 2,981.8 59.6 1,615.0 3,041.4 4,411.0
Gain on derecognition of borrowings (230.0) - - (230.0) -
Occupational healthcare expense 5.2 10.2 29.7 15.4 1,106.9
Restructuring costs 48.4 94.4 581.8 142.8 729.8
Transaction costs 209.5 193.0 150.5 402.5 552.1
Adjusted EBITDA 4,473.8 3,895.6 5,955.4 8,369.4 9,045.1
11. Environmental rehabilitation obligation and other provisions
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Note Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Balance at beginning of the period 4,898.7 4,678.7 4,529.1 4,678.7 3,982.2
Interest charge 2 209.3 189.5 177.8 398.8 357.1
Payment of environmental rehabilitation obligation (32.3) - (26.9) (32.3) (26.9)
Change in estimate charged to profit or loss(1) (87.7) (2.7) 193.5 (90.4) 248.9
Change in estimate capitalised(1) 618.8 - (177.7) 618.8 (177.7)
Environmental rehabilitation obligation on acquisition of subsidiaries 672.7 - 312.1 672.7 312.1
Foreign currency translation 14.7 33.2 (329.2) 47.9 (17.0)
Balance at end of the period 6,294.2 4,898.7 4,678.7 6,294.2 4,678.7
Environmental rehabilitation obligation and other provisions consists of:
Environmental rehabilitation obligation 6,176.2 4,898.7 4,678.7 6,176.2 4,678.7
Other provisions 118.0 - - 118.0 -
Environmental rehabilitation obligation and other provisions 6,294.2 4,898.7 4,678.7 6,294.2 4,678.7
(1) Changes in estimates are defined as changes in reserves and corresponding changes in life of mine, changes in discount rates and changes in laws and regulations governing
environmental matters.
12. Occupational healthcare obligation
On 3 May 2018, the Occupational Lung Disease Working Group (the Working Group), including the Sibanye-Stillwater Group, agreed
to an approximately R5 billion class action settlement with the claimants. The estimated costs were reviewed at 31 December 2018
and discounted using a risk-free rate. As a result, a change in estimate of R5.2 million was recognised in profit or loss. The ultimate
outcome of these matters remains uncertain, with a possible failure to obtain the requisite final court approval for the settlement,
even though the High Court granted the first leg of the approval application on 13 December 2018. 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
Unaudited Reviewed Unaudited Reviewed Audited
Note Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Balance at beginning of the period 1,214.1 1,153.3 1,077.2 1,153.3 -
Occupational healthcare obligation recognised - - - - 1,077.2
Interest charge 2 54.8 50.6 46.4 105.4 46.4
Charge to profit or loss 5.2 10.2 29.7 15.4 29.7
Balance at end of the period 1,274.1 1,214.1 1,153.3 1,274.1 1,153.3
Current portion of occupational healthcare obligation (109.9) (150.6) (0.8) (109.9) (0.8)
Non-current portion of occupational healthcare obligation 1,164.2 1,063.5 1,152.5 1,164.2 1,152.5
13. Other payables
Figures in million - SA rand Six months ended
Reviewed Reviewed Audited
Dec 2018 Jun 2018 Dec 2017
Deferred Payment (related to Rustenburg operations acquisition) 2,205.7 2,294.8 2,194.7
Right of recovery payable 83.2 72.5 69.3
Dissenting shareholders 287.1 1,450.6 1,349.7
Other non-current payables 256.5 219.7 188.6
Other payables 2,832.5 4,037.6 3,802.3
Current portion of other payables (303.3) (41.9) (41.9)
Non-current other payables 2,529.2 3,995.7 3,760.4
Reconciliation of dissenting shareholder liability:
Figures in million - SA rand Six months ended Year ended
Reviewed Reviewed Audited Reviewed Audited
Note Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Balance at beginning of the period 1,450.6 1,349.7 1,378.8 1,349.7 -
Interest charge 2 25.2 42.9 48.8 68.1 62.9
Payments to dissenting shareholders(1) (1,291.0) (84.8) - (1,375.8) -
Dissenting shareholder liability on acquisition of subsidiary (1) - - - - 1,364.3
Foreign currency translation reserve 102.3 142.8 (77.9) 245.1 (77.5)
Balance at end of the period 287.1 1,450.6 1,349.7 287.1 1,349.7
(1) 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 (the Shane Petitioners). 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.
On 28 March 2018, Stillwater entered into a settlement agreement with the Shane Petitioners, providing for settlement consideration of US$18 per share, plus interest at a rate of 1.75%
per annum, for a total settlement payment of US$7.0 million. The Shane Petitioners filed a motion to voluntarily dismiss their petition on 11 June 2018, which the court granted on 15
August 2018.
Following settlement of the Shane Petitioners 'claim, the total number of shares of Stillwater common stock subject to appraisal is approximately 5,419,523. The appraisal action 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. Petitioners seek a judgment
awarding them, among other things, the fair value of their Stillwater shares plus interest.
During September 2018, Stillwater made a provisional payment to the remaining dissenting shareholders of US$87.5 million. This settlement is pending the court's determination as to fair
value.
A trial was held from 10 December through 13 December 2018. The parties will engage in post-trial briefing. Oral argument on the matter is currently scheduled for 18 April 2019. 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, however, fair value may ultimately be determined by the court to be equal to, or different from, the merger
price.
14. Deferred revenue
Sibanye-Stillwater secured a US$500 million upfront cash payment (the Advance Amount) through a streaming agreement with
Wheaton International, a wholly-owned subsidiary of Wheaton Precious Metals Corp. In return, Sibanye-Stillwater has committed to
deliver a percentage of gold and palladium produced from its US PGM operations (comprising its East Boulder and Stillwater mining
operations) (the Streaming Transaction). The Streaming Transaction is effective from 1 July 2018.
In addition to the Advance Amount, Wheaton International will pay Sibanye-Stillwater 18% of the spot palladium and gold prices for
each ounce delivered under the streaming agreement until the Advance Amount has been reduced to nil through metal deliveries.
Thereafter, Sibanye-Stillwater will receive 22% of spot US dollar palladium and gold prices for each ounce of palladium and gold
delivered. Sibanye-Stillwater has committed to deliver to Wheaton International the equivalent of:
- 100% of gold production from the US PGM operations over the life of the US PGM operations
- Annual palladium production from the US PGM operations equivalent to:
- 4.5% of production, until the later of (i) a cumulative amount of 375koz having been delivered, and (ii) the portion of the
Advance Amount which is attributable to palladium deliveries (i.e. US$253 million) having been reduced to nil through such
deliveries;
- thereafter, the equivalent of 2.25% of production, until the later of (i) a further 175koz having been delivered (or cumulatively
550koz having been delivered), and (ii) the Advance Amount having been reduced to nil through metal deliveries; and
- thereafter and continuing for the life of the operations, 1.0% of palladium production.
The contract will be settled by Sibanye-Stillwater delivering metal credits to Wheaton International representing underlying refined,
mined gold and palladium.
Figures in million - SA rand Six months ended Year ended
Unaudited Reviewed Unaudited Reviewed Audited
Note Dec 2018 Jun 2018 Dec 2017 Dec 2018 Dec 2017
Deferred revenue advance received 6,555.4 - - 6,555.4 -
Deferred revenue recognised during the period (160.3) - - (160.3) -
Interest charge 2 160.3 - - 160.3 -
Balance at end of the period 6,555.4 - - 6,555.4 -
Current portion of deferred revenue (30.1) - - (30.1) -
Non-current portion of deferred revenue 6,525.3 - - 6,525.3 -
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 2018. The
following table 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 Audited
Dec 2018 Jun 2018 Dec 2017
Level 1 Level 2 Level 3 Level 1 Level 2 Level 1 Level 2
Financial assets measured at fair value
- Environmental rehabilitation obligation funds 3,634.0 364.7 - 3,187.6 374.8 3,117.6 374.8
- Trade receivables - PGM sales 5,310.1 - - 4,688.4 - 4,512.4 -
- Rand gold forward sale contracts - - - - 4.1 - -
- Other investments(1) 81.5 - 74.5 - - - -
Financial liabilities measured at fair value
- Derivative financial instrument(2) - 408.9 - - 311.1 - 1,093.5
- Rand gold forward sale contracts - 240.8 - - 134.8 - -
(1) The investment in Aldebaran (refer to note 9) is designated as equity securities at fair value through OCI because these equity securities represent an investment that the Group intends
to hold for the long-term for strategic purposes. This investment is subsequently, measured at fair value and changes in fair value are recognised in OCI and accumulated fair value
reserve.
(2) 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 2018, the Group incurred a loss of R2,499.6 million (31 December 2017: R4,433.1 million). As at 31
December 2018 the Group's current assets exceeded its current liabilities by R562.7 million (31 December 2017: R3,566.7 million) and
during the year then ended the Group generated cash from operating activities of R12,197.2 million (31 December 2017: R2,740.7
million). The Group's cash generated from operating activities during the year ended 31 December 2018 includes the R6,555.4 million
(US$500 million) advance proceeds of the streaming transaction (refer to note 14).
Gold and PGMs are sold in US dollars, and while the majority of the gold operations costs and a substantial amount of the SA PGM
operations costs are denominated in rand, the Group's results and financial condition will be impacted if there is a material change
in the rand/US dollar exchange rate.
On 21 November 2018, AMCU, one of Sibanye-Stillwater's unions, initiated a strike action at the gold operations. The AMCU union
members are still not reporting for work in terms of a protected strike. The gold operations have continued during this period to
produce approximately 40% of planned production and have implemented procedures to reduce operating cost during the strike
action. It is unclear when employees will return to work and when the operations will return to full production. The gold operations
have as a result operated at, and could continue to operate at, an adjusted EBITDA and cash flow loss during this period. While the
PGM operations have to date generated sufficient cash flow to mostly mitigate the cash flow impacts of the strike action, the impact
of the adjusted EBITDA losses from the gold operations will have a negative impact on future reported adjusted EBITDA and future
reported covenant ratios.
With effect from 1 January 2019, in line with our mine to market strategy for the PGM operations, the offtake contract between the
Rustenburg operations and Anglo American Platinum Limited (Anglo American Platinum) changed from a "Sale and Purchase of
Concentrate" agreement to a tolling agreement. This means that Anglo American Platinum will no longer purchase concentrate
from the Rustenburg operations on delivery of the concentrate, but will rather return the 4E refined metals to the Rustenburg
operations approximately four months after delivery of the concentrate. Sibanye-Stillwater will then sell the refined metals in the
market. The impact on future cash flows is not material, as Anglo American Platinum in terms of the previous Purchase of Concentrate
agreement will continue to pay for the concentrate delivered up to December 2018 during Q1 2019. The change, however, will result
in no adjusted EBITDA reported for the 4E metals produced by the Rustenburg operations during the Q1 2019. This will have a negative
impact on the future 12 months rolling adjusted EBITDA and future covenant ratios for the Group, until Q1 2020.
Sibanye-Stillwater's leverage ratio (net debt to adjusted EBITDA) at 31 December 2018 is 2.5. The US$600 million RCF and the R6.0
billion RCF (together RCFs), permit a leverage ratio of at most 3.5:1 through to 31 December 2019, and thereafter 2.5:1, calculated
on a quarterly basis. Sibanye-Stillwater's interest coverage ratio (or adjusted EBITDA to net finance charges) at 31 December 2018 is
4.9:1. The RCFs require an interest coverage ratio of at least 4.0:1 calculated on a quarterly basis. In order to accommodate a
potential breach in covenant ratios resulting from the impact of the gold operations strike and the Rustenburg operations contract
change occurring in the same period, a temporary covenant amendment allowing for no covenant measurements for the quarter
ending 31 March 2019 has been requested from and approved by the lenders. At this time, management believe that the covenant
ratio levels agreed will be complied with in Q2 2019 and onwards. Sibanye-Stillwater will continue to monitor and ensure compliance
with the covenants, as well as maintain sufficient committed undrawn debt facilities to ensure satisfactory liquidity for the Group.
The Group currently has committed undrawn debt facilities of R5,987 million at 31 December 2018 (2017: R3,653 million) following the
US$250 million upsizing of the US dollar RCF in 2018. In order to maintain adequate liquidity, the refinancing of the R6.0 billion RCF,
maturing on 15 November 2019, will be initiated during the first half of 2019. Utilising debt facilities may have a negative impact on
the leverage ratio if drawn to fund operating losses. Consistent with its long-term strategy, Sibanye-Stillwater intends to deleverage,
over time to its targeted leverage ratio of 1:1.
The Group is considering increasing operational flexibility by adjusting mine plans, reducing capital expenditure and/or selling assets.
A Section 189A consultation process was launched on 14 February 2019. The Group may also, if necessary, consider options to
increase funding flexibility which may include, among others, streaming facilities, prepayment facilities, facility restructuring or, in the
event that other options are not deemed preferable or achievable by the Board, an equity capital raise. This gives management
the operational and financing flexibility to continue to manage the operations and capital structure to ensure compliance with debt
covenants.
The Lonmin transaction may be completed during the Q2 2019. Management believe Lonmin has sufficient liquidity and will not have
a negative impact on Sibanye-Stillwater's debt levels post acquisition. Furthermore, management believe that Lonmin will contribute
positively to consolidated adjusted EBITDA which will have a positive impact on Sibanye-Stillwater covenant levels post acquisition.
The directors believe that the cash generated by its operations, cash on hand, the committed unutilised debt facilities as well as
additional funding opportunities 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 2018, therefore, have been prepared on a going
concern basis.
16. Contingent liabilities
Purported Class Action Lawsuits
Two purported class action lawsuits have been filed against Sibanye Gold Limited (Sibanye-Stillwater), Neal Froneman and Charl
Keyter (collectively, the Defendants) in the United States District Court for the Eastern District of New York, alleging violations of the
US securities laws. The first lawsuit, Case No. 18-cv-03721, was filed on 27 June 2018 by Kevin Brandel, individually and on behalf of all
other persons who purchased Sibanye-Stillwater securities between 7 April 2017 and 26 June 2018, inclusive (the Class Period). The
second lawsuit, Case No. 18-cv-03902, was filed on 6 July 2018 by Lester Heuschen, Jr., also individually and on behalf of members
of the Class Period (collectively, the Class Actions). The Class Actions allege that certain statements by Sibanye-Stillwater in its annual
reports filed with the US Securities and Exchange Commission were false and/or misleading. Specifically, the Class Actions allege that
Sibanye-Stillwater made false and/or misleading statements about its safety practices and record and thereby violated the US
securities laws. The Class Actions seek an unspecific amount of damages.
The two lawsuits were consolidated into a single action, and lead plaintiffs and lead counsel were appointed by the court, on
17 December 2018. Lead plaintiffs must file a consolidated amended complaint by 1 April 2019, and the Defendants must file an
answer or otherwise request a pre-motion conference (which is procedurally required by the Court's rules before a motion to dismiss
may be filed) by 16 May 2019. As the cases are still in the early stages, it is not possible to determine the likelihood of success on the
merits or any potential liability from the Class Actions nor estimate the duration of the litigation. Sibanye-Stillwater intends to defend
the cases vigorously.
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 2018, other than
those discussed below.
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.
On 15 May 2018, Sibanye-Stillwater received South African Reserve Bank approval for the proposed acquisition of Lonmin and on
28 June 2018, the proposed Lonmin transaction was unconditionally cleared by the UK Competition and Markets Authority. On 21
November 2018, Sibanye-Stillwater announced that the Competition Tribunal has approved the proposed acquisition of Lonmin,
subject to specific conditions. In addition to the conditions agreed between Sibanye-Stillwater and the Competition Commission, a
further condition has been imposed by the Competition Tribunal, namely a moratorium on retrenchments at the Lonmin operations
for a period of six months from the implementation date. On 19 December 2018, Sibanye-Stillwater and Lonmin announced that the
Association of Mineworkers and Construction Union had filed an appeal with the Competition Appeal Court of South Africa (the
CAC) against the South African Competition Tribunal's decision of 21 November 2018 to approve the Offer subject to certain specific
conditions. In light of the appeal before the CAC, Sibanye-Stillwater and Lonmin have agreed, with the consent of the Panel, to
extend the longstop date for the scheme to become unconditional and effective from 28 February 2019 to 30 June 2019.
Section 189A consultations
On 14 February 2019 Sibanye-Stillwater entered into consultation with relevant stakeholders in terms of Section 189A (Section 189A)
of the Labour Relations Act, 66 of 1995, regarding the possible restructuring of its gold operations and associated services, pursuant
to ongoing financial losses experienced at the Beatrix 1 and Driefontein 2,6,7,8 shafts during 2018. The initiation of a Section 189A
consultation process follows numerous initiatives to contain losses at these operations, which have thus far proven to be unsuccessful.
Through a formal Section 189A consultation process, the Company and affected stakeholders will together consider measures to
avoid and mitigate possible retrenchments and seek alternatives to the potential cessation or downscaling of operations at the
affected shafts.
Debt covenants
A temporary covenant amendment allowing for no covenant measurements for the quarter ending 31 March 2019 has been
requested from and approved by the lenders.
SFA (Oxford)
To support the implementation of this strategic positioning, Sibanye-Stillwater has agreed to acquire SFA (Oxford) (pending certain
conditions), an established analytical consulting company that is a globally recognised authority on PGMs and has for several years
provided in-depth market intelligence on battery materials and precious metals for industrial, automotive, and smart city
technologies.
18. Review report of the independent auditor
These condensed consolidated preliminary financial statements for the year ended 31 December 2018, 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 2018 (Unaudited)
US
GROUP SA REGION REGION GROUP
Total SA Total SA Drie- DRD- Cor- Total SA Platinum Rusten- Cor- Cor-
SA rand Total Region gold(1) fontein Kloof Beatrix Cooke GOLD porate(2) PGM Kroondal Mile Mimosa burg porate(2) Stillwater porate(2)
Revenue 26,746.4 18,341.4 9,976.5 2,093.8 4,010.1 2,295.8 549.9 1,047.5 (20.6) 8,364.9 2,085.3 112.2 940.8 6,167.4 (940.8) 8,431.7 (26.7)
Underground 20,320.7 15,448.8 7,636.1 1,994.7 3,403.4 2,216.6 42.0 - (20.6) 7,812.7 2,085.3 - 940.8 5,727.4 (940.8) 4,898.6 (26.7)
Surface 2,892.6 2,892.6 2,340.4 99.1 606.7 79.2 507.9 1,047.5 - 552.2 - 112.2 - 440.0 - - -
Recycling 3,533.1 - - - - - - - - - - - - - - 3,533.1 -
Cost of sales, before
amortisation and
depreciation (21,872.8) (15,705.5) (9,325.6) (2,731.9) (3,199.2) (1,945.0) (429.5) (1,020.0) - (6,379.9) (1,483.7) (89.0) (651.8) (4,807.2) 651.8 (6,167.3) -
Underground (15,891.6) (13,133.9) (7,267.7) (2,654.4) (2,698.3) (1,905.7) (9.3) - - (5,866.2) (1,483.7) - (651.8) (4,382.5) 651.8 (2,757.7) -
Surface (2,571.6) (2,571.6) (2,057.9) (77.5) (500.9) (39.3) (420.2) (1,020.0) - (513.7) - (89.0) - (424.7) - - -
Recycling (3,409.6) - - - - - - - - - - - - - - (3,409.6) -
Net other cash costs(3) (399.8) (399.9) (295.6) (26.3) (24.7) (27.2) (299.4) 8.7 73.3 (104.3) (31.7) (0.7) - (71.4) (0.5) 0.1 -
Adjusted EBITDA 4,473.8 2,236.0 355.3 (664.4) 786.2 323.6 (179.0) 36.2 52.7 1,880.7 569.9 22.5 289.0 1,288.8 (289.5) 2,264.5 (26.7)
Amortisation and
depreciation (3,519.1) (2,309.5) (1,736.5) (614.1) (719.0) (330.5) (2.7) (57.9) (12.3) (573.0) (190.2) (1.7) (101.1) (379.1) 99.1 (1,209.6) -
Interest income 290.8 244.9 198.0 48.8 39.9 26.5 25.5 26.1 31.2 46.9 33.2 - - 12.7 1.0 45.9 -
Finance expense (1,750.5) (579.1) (367.7) (117.1) (122.8) (73.0) (41.0) (33.0) 19.2 (211.4) (67.5) - (8.2) (1,742.6) 1,606.9 (1,011.1) (160.3)
Share-based payments (164.7) (145.6) (145.6) - - - - (3.2) (142.4) - - - - - - (19.1) -
Net other(4) 2,165.2 2,166.4 1,526.4 (326.4) (74.7) (40.9) (70.4) (419.1) 2,457.9 640.0 109.9 0.7 (7.5) 4,403.8 (3,866.9) (1.2) -
Non-underlying items(5) (2,986.5) (2,953.3) (2,944.1) (2,159.5) 15.3 (160.2) (16.9) (4.6) (618.2) (9.2) 0.2 - - (9.4) - (33.2) -
Royalties (108.9) (108.9) 32.2 16.5 19.4 (0.9) (2.7) - (0.1) (141.1) (3.1) - (28.7) (138.0) 28.7 - -
Current taxation 58.9 (179.2) 71.5 - (101.2) 1.6 - (3.0) 174.1 (250.7) - - (49.9) (249.9) 49.1 238.1 -
Deferred taxation (1,058.0) 780.9 896.0 736.3 291.4 110.2 - (132.0) (109.9) (115.1) (148.5) (4.1) (18.8) 37.0 19.3 (1,838.9) -
Profit for the period (2,599.0) (847.4) (2,114.5) (3,079.9) 134.5 (143.6) (287.2) (590.5) 1,852.2 1,267.1 303.9 17.4 74.8 3,223.3 (2,352.3) (1,564.6) (187.0)
Attributable to:
Owners of Sibanye-
Stillwater (2,576.3) (824.7) (2,090.4) (3,079.9) 134.5 (143.6) (287.2) (565.8) 1,851.6 1,265.7 303.9 16.0 74.8 3,223.3 (2,352.3) (1,564.6) (187.0)
Non-controlling interests (22.7) (22.7) (24.1) - - - - (24.7) 0.6 1.4 - 1.4 - - - - -
Sustaining capital
expenditure (832.6) (683.1) (362.2) (144.0) (145.2) (58.4) - (14.5) (0.1) (320.9) (91.5) (4.7) (105.2) (224.7) 105.2 (149.5) -
Ore reserve
development (1,833.8) (1,274.5) (1,023.3) (398.0) (441.7) (183.6) - - - (251.2) - - - (251.2) - (559.3) -
Growth projects (1,361.9) (455.6) (431.9) (0.1) (69.1) (1.4) - (303.3) (58.0) (23.7) - (23.7) - - - (906.3) -
Total capital
expenditure (4,028.3) (2,413.2) (1,817.4) (542.1) (656.0) (243.4) - (317.8) (58.1) (595.8) (91.5) (28.4) (105.2) (475.9) 105.2 (1,615.1) -
For the six months ended 31 Dec 2018 (Unaudited)
US
GROUP SA REGION REGION GROUP
Total SA Total SA Drie- DRD- Cor- Total SA Platinum Rusten- Cor- Cor-
US dollars(6) Total Region gold(1) fontein Kloof Beatrix Cooke GOLD porate(2) PGM Kroondal Mile Mimosa burg porate(2) Stillwater porate(2)
Revenue 1,883.7 1,291.4 698.3 140.8 279.4 160.2 39.9 79.1 (1.1) 593.1 148.9 8.0 65.8 436.2 (65.8) 594.3 (2.0)
Underground 1,430.5 1,082.7 528.2 134.7 236.9 154.5 3.2 - (1.1) 554.5 148.9 - 65.8 405.6 (65.8) 349.8 (2.0)
Surface 208.7 208.7 170.1 6.1 42.5 5.7 36.7 79.1 - 38.6 - 8.0 - 30.6 - - -
Recycling 244.5 - - - - - - - - - - - - - - 244.5 -
Cost of sales, before
amortisation and
depreciation (1,540.0) (1,105.9) (656.8) (189.5) (223.5) (135.7) (31.0) (77.1) - (449.1) (104.9) (6.3) (45.9) (337.9) 45.9 (434.1) -
Underground (1,118.4) (920.2) (507.2) (185.0) (188.6) (132.9) (0.7) - - (413.0) (104.9) - (45.9) (308.1) 45.9 (198.2) -
Surface (185.7) (185.7) (149.6) (4.5) (34.9) (2.8) (30.3) (77.1) - (36.1) - (6.3) - (29.8) - - -
Recycling (235.9) - - - - - - - - - - - - - - (235.9) -
Net other cash costs(3) (28.1) (28.2) (20.5) (1.6) (1.8) (2.0) (21.0) 0.7 5.2 (7.7) (2.3) (0.1) 0.1 (5.3) (0.1) 0.1 -
Adjusted EBITDA 315.6 157.3 21.0 (50.3) 54.1 22.5 (12.1) 2.7 4.1 136.3 41.7 1.6 20.0 93.0 (20.0) 160.3 (2.0)
Amortisation and
depreciation (248.1) (162.5) (122.0) (43.0) (50.5) (23.2) (0.2) (4.4) (0.7) (40.5) (13.4) (0.1) (7.1) (26.9) 7.0 (85.6) -
Interest income 20.9 17.6 14.2 3.4 2.8 1.9 1.8 2.0 2.3 3.4 2.4 - - 0.9 0.1 3.3 -
Finance expense (124.4) (40.5) (25.6) (8.1) (8.6) (5.1) (2.9) (2.5) 1.6 (14.9) (4.8) - (0.6) (130.8) 121.3 (71.8) (12.1)
Share-based payments (11.7) (10.3) (10.3) - - - - (0.2) (10.1) - - - - - - (1.4) -
Net other(4) 157.1 157.6 109.8 (24.4) (5.4) (3.0) (5.1) (31.7) 179.4 47.8 8.1 0.1 (0.6) 332.9 (292.7) (0.5) -
Non-underlying items(5) (223.8) (222.3) (221.7) (163.2) 1.1 (12.1) (1.1) (0.3) (46.1) (0.6) - - - (0.6) - (1.5) -
Royalties (7.7) (7.7) 2.8 1.3 1.7 - (0.2) - - (10.5) (0.2) - (2.1) (10.3) 2.1 - -
Current taxation 5.3 (12.7) 6.2 (0.4) (7.8) 0.1 - (0.2) 14.5 (18.9) - - (3.5) (18.8) 3.4 18.0 -
Deferred taxation (80.2) 58.9 67.2 54.5 21.8 8.3 - (10.0) (7.4) (8.3) (11.1) (0.3) (1.4) 3.1 1.4 (139.1) -
Profit for the period (197.0) (64.6) (158.4) (230.2) 9.2 (10.6) (19.8) (44.6) 137.6 93.8 22.7 1.3 4.7 242.5 (177.4) (118.3) (14.1)
Attributable to:
Owners of Sibanye-
Stillwater (195.3) (62.9) (156.6) (230.2) 9.2 (10.6) (19.8) (42.7) 137.5 93.7 22.7 1.2 4.7 242.5 (177.4) (118.3) (14.1)
Non-controlling interests (1.7) (1.7) (1.8) - - - - (1.9) 0.1 0.1 - 0.1 - - - - -
Sustaining capital
expenditure (60.4) (49.7) (26.3) (10.4) (10.6) (4.2) - (1.1) - (23.4) (6.6) (0.3) (7.6) (16.5) 7.6 (10.7) -
Ore reserve
development (128.7) (89.0) (71.3) (27.6) (31.0) (12.7) - - - (17.7) - - - (17.7) - (39.7) -
Growth projects (97.6) (32.9) (31.3) - (4.8) (0.1) - (22.9) (3.5) (1.6) - (1.6) - - - (64.7) -
Total capital
expenditure (286.7) (171.6) (128.9) (38.0) (46.4) (17.0) - (24.0) (3.5) (42.7) (6.6) (1.9) (7.6) (34.2) 7.6 (115.1) -
(1) The SA gold operations' results for the six months ended 31 December 2018 include DRDGOLD for the five months since acquisition (refer to note 8).
(2) Corporate and reconciling items represent the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not
generate mining revenue.
(3) Net other cash costs consist of care and maintenance and other costs as detailed in profit or loss.
(4) Net other consists of gain on financial instruments, gain on foreign exchange differences, and change in estimate of environmental rehabilitation obligation, and right of recovery
receivable and payable as detailed in profit or loss. Corporate and reconciling items net other includes the share of results equity-accounted investees after tax as detailed in profit or
loss. Driefontein, Kloof, DRDGOLD and SA gold corporate and reconciling items net other includes the gain and loss on exchange of Far West Gold Recoveries, which are eliminated.
(5) Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, gain on derecognition of borrowings and derivative financial instrument,
occupational healthcare expense, restructuring costs and transaction costs as detailed in profit or loss.
(6) The average exchange rate for the six months ended 31 December 2018 was R14.18/US$.
Figures in million
For the six months ended 30 Jun 2018 (Reviewed)
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(1) PGM Kroondal Mile Mimosa burg porate(1) Stillwater
Revenue 23,910.0 16,468.9 9,680.2 3,017.4 4,121.6 2,305.5 291.9 (56.2) 6,788.7 1,499.1 84.5 916.7 5,205.1 (916.7) 7,441.1
Underground 18,285.0 14,753.5 8,521.1 2,787.7 3,534.5 2,251.2 3.9 (56.2) 6,232.4 1,499.1 - 916.7 4,733.3 (916.7) 3,531.5
Surface 1,715.4 1,715.4 1,159.1 229.7 587.1 54.3 288.0 - 556.3 - 84.5 - 471.8 - -
Recycling 3,9096 - - - - - - - - - - - - - 3,909.6
Cost of sales, before
amortisation and
depreciation (19,642.4) (14,088.8) (8,372.7) (2,977.4) (3,165.6) (1,965.8) (263.9) - (5,716.1) (1,255.7) (63.7) (583.9) (4,396.7) 583.9 (5,553.6)
Underground (14,357.1) (12,590.4) (7,325.2) (2,732.3) (2,653.9) (1,935.3) (3.7) - (5,265.2) (1,255.7) - (583.9) (4,009.5) 583.9 (1,766.7)
Surface (1,498.4) (1,498.4) (1,047.5) (245.1) (511.7) (30.5) (260.2) - (450.9) - (63.7) - (387.2) - -
Recycling (3,786.9) - - - - - - - - - - - - - (3,786.9)
Net other cash costs(2) (372.0) (371.9) (300.4) (23.9) (20.1) (10.0) (274.0) 27.6 (71.5) (21.0) (0.5) (6.7) (49.7) 6.4 (0.1)
Adjusted EBITDA 3,895.6 2,008.2 1,007.1 16.1 935.9 329.7 (246.0) (28.6) 1,001.1 222.4 20.3 326.1 758.7 (326.4) 1,887.4
Amortisation and
depreciation (3,094.7) (2,069.9) (1,568.5) (586.8) (659.8) (304.8) (3.0) (14.1) (501.4) (180.2) (1.3) (90.5) (318.0) 88.6 (1,024.8)
Interest income 191.3 154.0 117.4 45.5 32.1 13.5 16.2 10.1 36.6 27.1 1.3 0.1 7.5 0.6 37.3
Finance expense (1,384.2) (598.2) (387.2) (117.8) (123.1) (70.6) (37.1) (38.6) (211.0) (63.0) - (4.8) (148.0) 4.8 (786.0)
Share-based payments (134.7) (118.1) (118.1) (0.2) - - - (117.9) - - - - - - (16.6)
Net other3 1,118.8 1,048.8 962.5 (36.4) (35.6) (16.9) (35.8) 1,087.2 86.3 27.7 - (1.7) (55.8) 116.1 70.0
Non-underlying items(4) (325.4) (147.9) (127.4) 1.9 11.9 3.6 (33.7) (111.1) (20.5) 0.2 - - (21.3) 0.6 (177.5)
Royalties (103.7) (103.7) (82.8) (15.1) (48.4) (17.9) (1.5) 0.1 (20.9) (2.4) - (28.9) (18.5) 28.9 -
Current taxation (154.2) (154.4) (126.6) 63.9 25.9 3.9 0.8 (221.1) (27.8) - - (53.5) (27.5) 53.2 0.2
Deferred taxation 69.5 26.3 103.8 186.6 21.7 17.6 - (122.1) (77.5) (20.4) (5.1) (11.1) (52.5) 11.6 43.2
Profit for the period 78.3 45.1 (219.8) (442.3) 160.6 (41.9) (340.1) 443.9 264.9 11.4 15.2 135.7 124.6 (22.0) 33.2
Attributable to:
Owners of Sibanye-
Stillwater 76.7 43.5 (220.1) (442.3) 160.6 (41.9) (340.1) 443.6 263.6 11.4 13.9 135.7 124.6 (22.0) 33.2
Non-controlling interests 1.6 1.6 0.3 - - - - 0.3 1.3 - 1.3 - - - -
Sustaining capital
expenditure (438.6) (327.9) (184.4) (84.1) (75.4) (24.2) - (0.7) (143.5) (49.9) (4.8) (65.7) (88.8) 65.7 (110.7)
Ore reserve development (1,696.6) (1,257.0) (1,030.3) (419.1) (397.9) (213.3) - - (226.7) - - - (226.7) - (439.6)
Growth projects (917.3) (249.6) (215.6) (0.3) (72.7) (0.3) - (142.3) (34.0) - (33.4) - (0.6) - (667.7)
Total capital expenditure (3,052.5) (1,834.5) (1,430.3) (503.5) (546.0) (237.8) - (143.0) (404.2) (49.9) (38.2) (65.7) (316.1) 65.7 (1,218.0)
For the six months ended 30 Jun 2018 (Reviewed)
GROUP SA REGION US REGION
Total SA Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
US dollars(5) Total Region gold fontein Kloof Beatrix Cooke porate(1) PGM Kroondal Mile Mimosa burg porate(1) Stillwater
Revenue 1,942.3 1,337.8 786.3 245.2 334.8 187.3 23.7 (4.7) 551.5 121.8 6.9 74.5 422.8 (74.5) 604.5
Underground 1,485.3 1,198.4 692.1 226.5 287.1 182.9 0.3 (4.7) 506.3 121.8 - 74.5 384.5 (74.5) 286.9
Surface 139.4 139.4 94.2 18.7 47.7 4.4 23.4 - 45.2 - 6.9 - 38.3 - -
Recycling 317.6 - - - - - - - - - - - - - 317.6
Cost of sales, before
amortisation and
depreciation (1,595.6) (1,144.5) (680.1) (241.8) (257.2) (159.7) (21.4) - (464.4) (102.0) (5.2) (47.4) (357.2) 47.4 (451.1)
Underground (1,166.2) (1,022.7) (595.0) (221.9) (215.6) (157.2) (0.3) - (427.7) (102.0) - (47.4) (325.7) 47.4 (143.5)
Surface (121.8) (121.8) (85.1) (19.9) (41.6) (2.5) (21.1) - (36.7) - (5.2) - (31.5) - -
Recycling (307.6) - - - - - - - - - - - - - (307.6)
Net other cash costs(2) (30.3) (30.2) (24.4) (2.1) (1.6) (0.8) (22.3) 2.4 (5.8) (1.7) (0.1) (0.6) (4.0) 0.6 (0.1)
Adjusted EBITDA 316.4 163.1 81.8 1.3 76.0 26.8 (20.0) (2.3) 81.3 18.1 1.6 26.5 61.6 (26.5) 153.3
Amortisation and
depreciation (251.4) (168.2) (127.5) (47.7) (53.6) (24.8) (0.2) (1.2) (40.7) (14.6) (0.1) (7.4) (25.8) 7.2 (83.2)
Interest income 15.5 12.5 9.6 3.7 2.6 1.1 1.3 0.9 2.9 2.2 0.1 - 0.6 - 3.0
Finance expense (112.4) (48.5) (31.4) (9.6) (10.0) (5.7) (3.0) (3.1) (17.1) (5.1) - (0.4) (12.0) 0.4 (63.9)
Share-based payments (10.9) (9.6) (9.6) - - - - (9.6) - - - - - - (1.3)
Net other(3) 91.0 85.3 78.2 (3.0) (2.9) (1.4) (2.9) 88.4 7.1 2.3 - (0.1) (4.5) 9.4 5.7
Non-underlying items(4) (26.4) (12.0) (10.3) 0.2 1.0 0.3 (2.7) (9.1) (1.7) - - - (1.7) - (14.4)
Royalties (8.4) (8.4) (6.7) (1.2) (3.9) (1.5) (0.1) - (1.7) (0.2) - (2.3) (1.5) 2.3 -
Current taxation (12.5) (12.5) (10.3) 5.2 2.1 0.3 0.1 (18.0) (2.2) - - (4.3) (2.2) 4.3 -
Deferred taxation 5.6 2.1 8.5 15.2 1.8 1.4 - (9.9) (6.4) (1.7) (0.4) (0.9) (4.3) 0.9 3.5
Profit for the period 6.5 3.8 (17.7) (35.9) 13.1 (3.5) (27.5) 36.1 21.5 1.0 1.2 11.1 10.2 (2.0) 2.7
Attributable to: - - - -
Owners of Sibanye-
Stillwater 6.4 3.7 (17.7) (35.9) 13.1 (3.5) (27.5) 36.1 21.4 1.0 1.1 11.1 10.2 (2.0) 2.7
Non-controlling interests 0.1 0.1 - - - - - - 0.1 - 0.1 - - - -
Sustaining capital
expenditure (35.7) (26.7) (15.0) (6.8) (6.1) (2.0) - (0.1) (11.7) (4.1) (0.4) (5.3) (7.2) 5.3 (9.0)
Ore reserve development (137.9) (102.2) (83.8) (34.1) (32.4) (17.3) - - (18.4) - - - (18.4) - (35.7)
Growth projects (74.4) (20.2) (17.5) - (5.9) - - (11.6) (2.7) - (2.7) - - - (54.2)
Total capital expenditure (248.0) (149.1) (116.3) (40.9) (44.4) (19.3) - (11.7) (32.8) (4.1) (3.1) (5.3) (25.6) 5.3 (98.9)
(1) Corporate and reconciling items represent the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not
generate mining revenue.
(2) Net other cash costs consist of care and maintenance and other costs as detailed in profit or loss.
(3) Net other consists of gain on financial instruments and gain on foreign exchange differences. Corporate and reconciling items net other includes the share of results equity-accounted
investees after tax as detailed in profit or loss.
(4) Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, occupational healthcare expense, restructuring costs and transaction costs as
detailed in profit or loss.
(5) The average exchange rate for the six months ended 30 June 2018 was R12.31/US$.
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(1) PGM Kroondal Mile Mimosa burg porate(1) 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)
Net other cash costs(2) (241.0) (239.6) (188.9) (15.1) (21.5) (7.9) (125.9) (18.5) (50.7) (19.1) 4.9 (7.2) (36.2) 6.9 (1.4)
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
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(3) (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-underlying items(4) (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
Profit 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 - - - -
Sustaining capital
expenditure (806.9) (626.7) (345.5) (150.6) (158.4) (36.5) - - (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 (1,018.2) (298.4) (296.1) (13.9) (86.1) (0.3) - (195.8) (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 dollars(5) Total Region gold fontein Kloof Beatrix Cooke porate(1) PGM Kroondal Mile Mimosa burg porate(1) 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)
Net other cash costs(2) (18.0) (17.9) (14.1) (1.0) (1.6) (0.6) (9.5) (1.4) (3.8) (1.4) 0.5 (0.5) (2.8) 0.4 (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
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(3) (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-underlying items(4) (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
Profit 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 - - - -
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) Corporate and reconciling items represent the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not
generate mining revenue.
(2) Net other cash costs consist of care and maintenance and other costs as detailed in profit or loss.
(3) Net other consists of loss on financial instruments and loss on foreign exchange differences. Corporate and reconciling items net other includes the share of results equity-accounted
investees after tax as detailed in profit or loss.
(4) Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, occupational healthcare expense, restructuring costs and transaction costs as
detailed in profit or loss.
(5) The average exchange rate for the six months ended 31 December 2017 was R13.41/US$.
Figures in million
For the year ended 31 Dec 2018 (Reviewed)
US
GROUP SA REGION REGION GROUP
Total SA Total SA Drie- DRD- Cor- Total SA Platinum Rusten- Cor- Cor-
SA rand Total Region gold(1) fontein Kloof Beatrix Cooke GOLD porate(2) PGM Kroondal Mile Mimosa burg porate(2) Stillwater porate(2)
Revenue 50,656.4 34,810.3 19,656.7 5,111.2 8,131.7 4,601.3 841.8 1,047.5 (76.8) 15,153.6 3,584.4 196.7 1,857.5 11,372.5 (1,857.5) 15,872.8 (26.7)
Underground 38,605.7 30,202.3 16,157.2 4,782.4 6,937.9 4,467.8 45.9 - (76.8) 14,045.1 3,584.4 - 1,857.5 10,460.7 (1,857.5) 8,430.1 (26.7)
Surface 4,608.0 4,608.0 3,499.5 328.8 1,193.8 133.5 795.9 1,047.5 - 1,108.5 - 196.7 - 911.8 - - -
Recycling 7,442.7 - - - - - - - - - - - - - - 7,442.7 -
Cost of sales, before
amortisation and
depreciation (41,515.2) (29,794.3) (17,698.3) (5,709.3) (6,364.8) (3,910.8) (693.4) (1,020.0) - (12,096.0) (2,739.4) (152.7) (1,235.7) (9,203.9) 1,235.7 (11,720.9) -
Underground (30,248.7) (25,724.3) (14,592.9) (5,386.7) (5,352.2) (3,841.0) (13.0) - - (11,131.4) (2,739.4) - (1,235.7) (8,392.0) 1,235.7 (4,524.4) -
Surface (4,070.0) (4,070.0) (3,105.4) (322.6) (1,012.6) (69.8) (680.4) (1,020.0) - (964.6) - (152.7) - (811.9) - - -
Recycling (7,196.5) - - - - - - - - - - - - - - (7,196.5) -
Net other cash costs(3) (771.8) (771.8) (596.0) (50.2) (44.8) (37.2) (573.4) 8.7 100.9 (175.8) (52.7) (1.2) (6.7) (121.1) 5.9 - -
Adjusted EBITDA 8,369.4 4,244.2 1,362.4 (648.3) 1,722.1 653.3 (425.0) 36.2 24.1 2,881.8 792.3 42.8 615.1 2,047.5 (615.9) 4,151.9 (26.7)
Amortisation and
depreciation (6,613.8) (4,379.4) (3,305.0) (1,200.9) (1,378.8) (635.3) (5.7) (57.9) (26.4) (1,074.4) (370.4) (3.0) (191.6) (697.1) 187.7 (2,234.4) -
Interest income 482.1 398.9 315.4 94.3 72.0 40.0 41.7 26.1 41.3 83.5 60.3 1.3 0.1 20.2 1.6 83.2 -
Finance expense (3,134.7) (1,177.3) (754.9) (234.9) (245.9) (143.6) (78.1) (33.0) (19.4) (422.4) (130.5) - (13.0) (1,890.6) 1,611.7 (1,797.1) (160.3)
Share-based payments (299.4) (263.7) (263.7) (0.2) - - - (3.2) (260.3) - - - - - - (35.7) -
Net other(4) 3,284.0 3,215.2 2,488.9 (362.8) (110.3) (57.8) (106.2) (419.1) 3,545.1 726.3 137.6 0.7 (9.2) 4,348.0 (3,750.8) 68.8 -
Non-underlying items(5) (3,311.9) (3,101.2) (3,071.5) (2,157.6) 27.2 (156.6) (50.6) (4.6) (729.3) (29.7) 0.4 - - (30.7) 0.6 (210.7) -
Royalties (212.6) (212.6) (50.6) 1.4 (29.0) (18.8) (4.2) - - (162.0) (5.5) - (57.6) (156.5) 57.6 - -
Current taxation (95.3) (333.6) (55.1) 63.9 (75.3) 5.5 0.8 (3.0) (47.0) (278.5) - - (103.4) (277.4) 102.3 238.3 -
Deferred taxation (988.5) 807.2 999.8 922.9 313.1 127.8 - (132.0) (232.0) (192.6) (168.9) (9.2) (29.9) (15.5) 30.9 (1,795.7) -
Profit for the period (2,520.7) (802.3) (2,334.3) (3,522.2) 295.1 (185.5) (627.3) (590.5) 2,296.1 1,532.0 315.3 32.6 210.5 3,347.9 (2,374.3) (1,531.4) (187.0)
Attributable to:
Owners of Sibanye-
Stillwater (2,499.6) (781.2) (2,310.5) (3,522.2) 295.1 (185.5) (627.3) (565.8) 2,295.2 1,529.3 315.3 29.9 210.5 3,347.9 (2,374.3) (1,531.4) (187.0)
Non-controlling interests (21.1) (21.1) (23.8) - - - - (24.7) 0.9 2.7 - 2.7 - - - - -
Sustaining capital
expenditure (1,271.2) (1,011.0) (546.6) (228.1) (220.6) (82.6) - (14.5) (0.8) (464.4) (141.4) (9.5) (170.9) (313.5) 170.9 (260.2) -
Ore reserve development (3,530.4) (2,531.5) (2,053.6) (817.1) (839.6) (396.9) - - - (477.9) - - - (477.9) - (998.9) -
Growth projects (2,279.2) (705.2) (647.5) (0.4) (141.8) (1.7) - (303.3) (200.3) (57.7) - (57.1) - (0.6) - (1,574.0) -
Total capital expenditure (7,080.8) (4,247.7) (3,247.7) (1,045.6) (1,202.0) (481.2) - (317.8) (201.1) (1,000.0) (141.4) (66.6) (170.9) (792.0) 170.9 (2,833.1) -
For the year ended 31 Dec 2018 (Reviewed)
US
GROUP SA REGION REGION GROUP
Total SA Total SA Drie- DRD- Cor- Total SA Platinum usten- Cor- Cor-
US dollars(6) Total Region gold(1) fontein Kloof Beatrix Cooke GOLD porate(2) PGM Kroondal Mile Mimosa burg porate(2) Stillwater porate(2)
Revenue 3,828.0 2,629.2 1,484.6 386.0 614.2 347.5 63.6 79.1 (5.8) 1,144.6 270.7 14.9 140.3 859.0 (140.3) 1,198.8 (2.0)
Underground 2,917.8 2,281.1 1,220.3 361.2 524.0 337.4 3.5 - (5.8) 1,060.8 270.7 - 140.3 790.1 (140.3) 636.7 (2.0)
Surface 348.1 348.1 264.3 24.8 90.2 10.1 60.1 79.1 - 83.8 - 14.9 - 68.9 - - -
Recycling 562.1 - - - - - - - - - - - - - - 562.1 -
Cost of sales, before
amortisation and
depreciation (3,135.6) (2,250.4) (1,336.9) (431.3) (480.7) (295.4) (52.4) (77.1) - (913.5) (206.9) (11.5) (93.3) (695.1) 93.3 (885.2) -
Underground (2,284.6) (1,942.9) (1,102.2) (406.9) (404.2) (290.1) (1.0) - - (840.7) (206.9) - (93.3) (633.8) 93.3 (341.7) -
Surface (307.5) (307.5) (234.7) (24.4) (76.5) (5.3) (51.4) (77.1) - (72.8) - (11.5) - (61.3) - - -
Recycling (543.5) - - - - - - - - - - - - - - (543.5) -
Net other cash costs(3) (58.4) (58.4) (44.9) (3.7) (3.4) (2.8) (43.3) 0.7 7.6 (13.5) (4.0) (0.2) (0.5) (9.3) 0.5 - -
Adjusted EBITDA 632.0 320.4 102.8 (49.0) 130.1 49.3 (32.1) 2.7 1.8 217.6 59.8 3.2 46.5 154.6 (46.5) 313.6 (2.0)
Amortisation and
depreciation (499.5) (330.7) (249.5) (90.7) (104.1) (48.0) (0.4) (4.4) (1.9) (81.2) (28.0) (0.2) (14.5) (52.7) 14.2 (168.8) -
Interest income 36.4 30.1 23.8 7.1 5.4 3.0 3.1 2.0 3.2 6.3 4.6 0.1 - 1.5 0.1 6.3 -
Finance expense (236.8) (89.0) (57.0) (17.7) (18.6) (10.8) (5.9) (2.5) (1.5) (32.0) (9.9) - (1.0) (142.8) 121.7 (135.7) (12.1)
Share-based payments (22.6) (19.9) (19.9) - - - - (0.2) (19.7) - - - - - - (2.7) -
Net other(4) 248.1 242.9 188.0 (27.4) (8.3) (4.4) (8.0) (31.7) 267.8 54.9 10.4 0.1 (0.7) 328.4 (283.3) 5.2 -
Non-underlying items(5) (250.2) (234.3) (232.0) (163.0) 2.1 (11.8) (3.8) (0.3) (55.2) (2.3) - - - (2.3) - (15.9) -
Royalties (16.1) (16.1) (3.9) 0.1 (2.2) (1.5) (0.3) - - (12.2) (0.4) - (4.4) (11.8) 4.4 - -
Current taxation (7.2) (25.2) (4.1) 4.8 (5.7) 0.4 0.1 (0.2) (3.5) (21.1) - - (7.8) (21.0) 7.7 18.0 -
Deferred taxation (74.6) 61.0 75.7 69.7 23.6 9.7 - (10.0) (17.3) (14.7) (12.8) (0.7) (2.3) (1.2) 2.3 (135.6) -
Profit for the period (190.5) (60.8) (176.1) (266.1) 22.3 (14.1) (47.3) (44.6) 173.7 115.3 23.7 2.5 15.8 252.7 (179.4) (115.6) (14.1)
Attributable to: -
Owners of Sibanye-
Stillwater (188.9) (59.2) (174.3) (266.1) 22.3 (14.1) (47.3) (42.7) 173.6 115.1 23.7 2.3 15.8 252.7 (179.4) (115.6) (14.1)
Non-controlling interests (1.6) (1.6) (1.8) - - - - (1.9) 0.1 0.2 - 0.2 - - - - -
Sustaining capital
expenditure (96.1) (76.4) (41.3) (17.2) (16.7) (6.2) - (1.1) (0.1) (35.1) (10.7) (0.7) (12.9) (23.7) 12.9 (19.7) -
Ore reserve development (266.6) (191.2) (155.1) (61.7) (63.4) (30.0) - - - (36.1) - - - (36.1) - (75.4) -
Growth projects (172.0) (53.1) (48.8) - (10.7) (0.1) - (22.9) (15.1) (4.3) - (4.3) - - - (118.9) -
Total capital expenditure (534.7) (320.7) (245.2) (78.9) (90.8) (36.3) - (24.0) (15.2) (75.5) (10.7) (5.0) (12.9) (59.8) 12.9 (214.0) -
(1) The SA gold operations' results for the year ended 31 December 2018 include DRDGOLD for the five months since acquisition (refer to note 8).
(2) Corporate and reconciling items represent the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not
generate mining revenue.
(3) Net other cash costs consist of care and maintenance and other costs as detailed in profit or loss.
(4) Net other consists of gain on financial instruments, gain on foreign exchange differences, and change in estimate of environmental rehabilitation obligation, and right of recovery
receivable and payable as detailed in profit or loss. Corporate and reconciling items net other includes the share of results equity-accounted investees after tax as detailed in profit or
loss. Driefontein, Kloof, DRDGOLD and SA gold corporate and reconciling items net other includes the gain and loss on exchange of Far West Gold Recoveries, which are eliminated.
(5) Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, gain on derecognition of borrowings and derivative financial instrument,
occupational healthcare expense, restructuring costs and transaction costs as detailed in profit or loss.
(6) The average exchange rate for the year ended 31 December 2018 was R13.24/US$.
Figures in million
For the year ended 31 Dec 2017 (Reviewed)
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(1) PGM Kroondal Mile Mimosa burg porate(1) Stillwater(2)
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)
Net other cash costs(3) (383.8) (376.5) (285.9) (32.4) (37.9) (13.3) (243.4) 41.1 (90.6) (34.7) (12.6) 34.2 (41.8) (35.7) (7.3)
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
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 (2,981.9) (1,527.8) (1,182.2) (220.9) (246.9) (128.4) (76.7) (509.3) (345.6) (90.7) - (10.0) (244.9) (1,454.1)
Share-based payments (231.9) (227.0) (227.0) (2.8) (1.8) (1.3) - (221.1) - - - - - - (4.9)
Net other(4) (769.2) (746.1) 296.3 23.9 23.4 (34.7) (76.9) 360.6 (1,042.4) (181.7) 0.7 (11.0) (893.1) 42.7 (23.1)
Non-underlying items(5) (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
Profit 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 - - - -
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
Total SA Total SA Drie- Cor- Total SA Platinum Rusten- Cor-
US dollars(6) Total Region gold fontein Kloof Beatrix Cooke porate(1) PGM Kroondal Mile Mimosa burg porate(1) Stillwater(2)
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)
Net other cash costs(3) (28.8) (28.3) (21.4) (2.4) (2.8) (1.0) (18.3) 3.1 (6.9) (2.6) (0.9) 2.6 (3.2) (2.8) (0.5)
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
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(4) (58.5) (56.6) 22.4 1.8 1.7 (2.6) (5.8) 27.3 (79.0) (13.7) - (0.9) (66.9) 2.5 (1.9)
Non-underlying items(5) (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
Profit 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 (333.3) (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 - - - -
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) Corporate and reconciling items represent the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not
generate mining revenue.
(2) Stillwater's performance for the year ended 31 December 2017 is for eight months since acquisition.
(3) Net other cash costs consist of care and maintenance and other costs as detailed in profit or loss.
(4) Net other consists of loss on financial instruments, gain on foreign exchange differences, and change in estimate of environmental rehabilitation obligation, and right of recovery
receivable and payable as detailed in profit or loss. Corporate and reconciling items net other includes the share of results equity-accounted investees after tax as detailed in profit or
loss.
(5) Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, occupational healthcare expense, restructuring costs and transaction costs as
detailed in profit or loss.
(6) The average exchange rate for the year ended 31 December 2017 was R14.31/US$.
ALL-IN COSTS - SIX MONTHS
SA and US PGM operations
GROUP SA REGION US REGION(1)
Total SA
Total PGM Kroondal Plat Mile Rustenburg Corporate Mimosa Stillwater(1)
Cost of sales, before amortisation and depreciation(2) Dec 2018 9,137.6 6,379.9 1,483.7 89.0 4,807.2 (651.8) 651.8 2,757.7
Jun 2018 7,482.8 5,716.1 1,255.7 63.7 4,396.7 (583.9) 583.9 1,766.7
Dec 2017 8,187.0 6,100.2 1,230.3 70.3 4,799.6 (589.6) 589.6 2,086.8
Royalties Dec 2018 141.1 141.1 3.1 - 138.0 (28.7) 28.7 -
Jun 2018 20.9 20.9 2.4 - 18.5 (28.9) 28.9 -
Dec 2017 39.0 39.0 3.1 - 36.0 (26.4) 26.3 -
Community costs Dec 2018 14.7 14.7 0.1 - 14.6 - - -
Jun 2018 8.6 8.6 0.1 - 8.5 - - -
Dec 2017 - - - - - - - -
Inventory change Dec 2018 (270.7) - - - - - - (270.7)
Jun 2018 236.0 - - - - - - 236.0
Dec 2017 3.9 - - - - - - 3.9
Share-based payments(3) Dec 2018 19.1 - - - - - - 19.1
Jun 2018 16.6 - - - - - - 16.6
Dec 2017 3.2 - - - - - - 3.2
Rehabilitation interest and amortisation(4) Dec 2018 41.7 36.9 38.3 - (1.4) 9.9 (9.9) 4.8
Jun 2018 50.9 46.4 38.9 - 7.4 (1.9) 2.0 4.5
Dec 2017 (0.1) (5.5) 17.8 - (23.4) (2.1) 2.2 5.4
Ore reserve development Dec 2018 810.5 251.2 - - 251.2 - - 559.3
Jun 2018 666.3 226.7 - - 226.7 - - 439.6
Dec 2017 655.5 231.4 - - 231.4 - - 424.1
Sustaining capital expenditure Dec 2018 470.4 320.9 91.5 4.7 224.7 (105.2) 105.2 149.5
Jun 2018 254.2 143.5 49.9 4.8 88.8 (65.7) 65.7 110.7
Dec 2017 461.4 281.2 111.6 5.6 164.0 (117.9) 117.9 180.2
Less: By-product credit Dec 2018 (1,572.5) (1,318.2) (330.6) (5.4) (982.2) 147.9 (147.9) (254.3)
Jun 2018 (1,248.8) (1,039.5) (119.9) (4.3) (915.4) 178.7 (178.6) (209.3)
Dec 2017 (1,197.8) (1,009.2) (89.5) (6.1) (913.6) 152.4 (152.4) (188.6)
Total All-in-sustaining costs(5) Dec 2018 8,791.9 5,826.5 1,286.1 88.4 4,452.1 (628.0) 627.9 2,965.4
Jun 2018 7,487.5 5,122.7 1,227.1 64.2 3,831.2 (501.7) 501.9 2,364.8
Dec 2017 8,152.1 5,637.1 1,273.3 69.8 4,294.0 (583.6) 583.6 2,515.0
Plus: Corporate cost, growth and capital expenditure Dec 2018 930.0 23.7 - 23.7 - - - 906.3
Jun 2018 701.7 34.0 - 33.4 0.6 - - 667.7
Dec 2017 725.6 2.3 - 2.3 - - - 723.3
Total All-in-costs(5) Dec 2018 9,721.9 5,850.2 1,286.1 112.1 4,452.1 (628.0) 627.9 3,871.7
Jun 2018 8,189.2 5,156.7 1,227.1 97.6 3,831.8 (501.7) 501.9 3,032.5
Dec 2017 8,877.7 5,639.4 1,273.3 72.1 4,294.0 (583.6) 583.6 3,238.3
PGM production 4Eoz - 2Eoz Dec 2018 905,155 606,506 134,712 9,860 399,628 - 62,306 298,649
Jun 2018 863,125 569,166 120,461 7,718 378,717 - 62,270 293,959
Dec 2017 886,266 603,635 126,607 10,545 403,209 - 63,274 282,631
kg Dec 2018 28,154 18,864 4,190 307 12,430 - 1,938 9,289
Jun 2018 26,846 17,703 3,747 240 11,779 - 1,937 9,143
Dec 2017 27,566 18,775 3,938 328 12,541 - 1,968 8,791
All-in-sustaining cost R/4Eoz - R/2Eoz Dec 2018 10,431 10,706 9,547 8,966 11,141 - 10,077 9,929
Jun 2018 9,349 10,106 10,187 8,318 10,116 - 8,060 8,045
Dec 2017 9,905 10,432 10,057 6,619 10,650 - 9,223 8,899
US$/4Eoz - US$/2Eoz Dec 2018 736 755 673 632 786 - 711 701
Jun 2018 760 821 828 676 822 - 655 653
Dec 2017 739 778 750 494 794 - 688 660
All-in-cost R/4Eoz - R/2Eoz Dec 2018 11,535 10,750 9,547 11,369 11,141 - 10,077 12,964
Jun 2018 10,226 10,173 10,187 12,646 10,118 - 8,060 10,316
Dec 2017 10,787 10,436 10,057 6,837 10,650 - 9,223 11,458
US$/4Eoz - US$/2Eoz Dec 2018 813 758 673 802 786 - 711 914
Jun 2018 831 826 828 1,027 822 - 655 838
Dec 2017 805 779 750 510 794 - 688 855
Average exchange rates for the six months ended 31 December 2018, 30 June 2018 and 31 December 2017 were R14.18/US$, R12.31/US$ and R13.41/US$, respectively.
Figures may not add as they are rounded independently.
(1) 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 processes 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
(2) 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.
(3) Share-based payments are calculated based on the fair value at initial recognition fair value and does not include the adjustment of the cash-settled share-based payment
obligation to the reporting date fair value.
(4) Rehabilitation includes 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.
(5) 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 gold operations
SA REGION
Total SA
gold(1) Driefontein Kloof Beatrix Cooke Corporate DRDGOLD
Cost of sales, before amortisation and depreciation(2) Dec 2018 9,325.7 2,731.9 3,199.2 1,945.0 429.5 - 1,020.1
Jun 2018 8,372.7 2,977.4 3,165.6 1,965.8 263.9 -
Dec 2017 8,956.5 3,098.4 2,945.2 1,997.7 915.2 -
Royalties Dec 2018 10.7 10.5 (7.7) 5.2 2.8 - -
Jun 2018 82.8 15.1 48.4 17.9 1.5 -
Dec 2017 184.5 31.1 119.8 24.4 9.2 -
Community costs Dec 2018 22.1 4.8 2.5 8.8 6.0 - -
Jun 2018 24.7 9.8 7.9 7.0 - -
Dec 2017 22.0 3.6 12.1 5.8 0.5 -
Share-based payments(3) Dec 2018 3.2 - - - - - 3.2
Jun 2018 0.2 0.2 - - - -
Dec 2017 0.3 0.3 - - - -
Rehabilitation interest and amortisation(4) Dec 2018 17.5 (6.9) (24.2) 14.7 19.9 2.0 29.2
Jun 2018 4.3 (10.2) (21.8) 15.3 19.0 2.0
Dec 2017 32.0 (20.2) 18.3 11.3 23.5 (0.9)
Ore reserve development Dec 2018 1,023.3 398.0 441.7 183.6 - - -
Jun 2018 1,030.3 419.1 397.9 213.3 - -
Dec 2017 1,134.4 456.7 449.1 228.6 - -
Sustaining capital expenditure Dec 2018 362.2 144.0 145.2 58.4 - 0.1 14.5
Jun 2018 184.4 84.1 75.4 24.2 - 0.7
Dec 2017 345.5 150.6 158.4 36.5 - -
Less: By-product credit Dec 2018 (9.5) (2.5) (3.1) (2.1) (0.4) - (1.3)
Jun 2018 (9.2) (3.6) (3.1) (2.2) (0.4) -
Dec 2017 (11.4) (3.8) (3.6) (2.7) (1.3) -
Total All-in-sustaining costs(5) Dec 2018 10,755.2 3,279.8 3,753.6 2,213.5 457.8 2.1 1,065.7
Jun 2018 9,690.2 3,491.9 3,670.3 2,241.3 284.0 2.7
Dec 2017 10,663.8 3,716.7 3,699.3 2,301.6 947.1 (0.9)
Plus: Corporate cost, growth and capital expenditure Dec 2018 593.3 0.1 69.1 1.4 - 219.4 303.3
Jun 2018 350.9 0.3 72.7 0.3 - 277.6
Dec 2017 410.2 13.8 86.1 2.3 - 308.0
Total All-in-costs(5) Dec 2018 11,348.5 3,279.9 3,822.7 2,214.9 457.8 221.5 1,369.0
Jun 2018 10,041.1 3,492.2 3,743.0 2,241.6 284.0 280.3
Dec 2017 11,074.0 3,730.5 3,785.4 2,303.9 947.1 307.1
Gold sold kg Dec 2018 17,873 3,783 7,259 4,156 805 - 1,870
Jun 2018 18,616 5,790 7,905 4,380 541 -
Dec 2017 22,216 7,400 8,806 4,590 1,420 -
000'oz Dec 2018 574.6 121.6 233.4 133.6 25.9 - 60.1
Jun 2018 598.5 186.2 254.2 140.8 17.4 -
Dec 2017 714.2 237.9 283.1 147.6 45.6 -
All-in-sustaining cost R/kg Dec 2018 596,100 866,984 517,096 532,603 443,106 - 569,893
Jun 2018 520,488 603,092 464,301 511,712 524,954 -
Dec 2017 480,010 502,257 420,089 501,438 666,972 -
US$/oz Dec 2018 1,308 1,902 1,134 1,168 972 - 1,250
Jun 2018 1,315 1,524 1,173 1,293 1,326 -
Dec 2017 1,114 1,165 975 1,163 1,548 -
All-in-cost R/kg Dec 2018 629,296 867,010 526,615 532,940 443,106 - 732,086
Jun 2018 539,337 603,143 473,498 511,781 524,954 -
Dec 2017 498,474 504,122 429,866 501,939 666,972 -
US$/oz Dec 2018 1,380 1,902 1,155 1,169 972 - 1,606
Jun 2018 1,363 1,524 1,196 1,293 1,326 -
Dec 2017 1,157 1,170 997 1,165 1,548 -
The average exchange rates for the six months ended 31 December 2018, 30 June 2018 and 31 December 2017 were R14.18/US$, R12.31/US$ and R13.41/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) The SA gold operations' results for the six months ended 31 December 2018 include DRDGOLD for the five months since acquisition.
(2) 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.
(3) Share-based payments are calculated based on the fair value at initial recognition fair value and does not include the adjustment of the cash-settled share-based payment obligation
to the reporting date fair value.
(4) Rehabilitation includes 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.
(5) 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 - YEAR
SA and US PGM operations
GROUP SA REGION US REGION
Total SA and Total US
Attributable US PGM PGM
operations Total SA PGM Kroondal Plat Mile Rustenburg Mimosa Stillwater(1)
Under- Under- Under-
Total ground Surface Attributable Surface ground Surface Attributable ground(1)
Production
Tonnes milled/treated 000't Dec 2018 27,180 25,841 12,381 13,460 3,865 7,712 7,114 5,748 1,402 1,339
Dec 2017 27,051 26,196 12,261 13,935 3,778 8,050 7,098 5,885 1,385 855
Plant head grade g/t Dec 2018 2.65 2.01 3.25 0.87 2.48 0.63 3.60 1.19 3.56 15.01
Dec 2017 2.50 2.09 3.30 1.02 2.42 0.65 3.70 1.52 3.58 15.01
Plant recoveries % Dec 2018 76.34 70.40 83.60 25.23 82.65 11.19 85.13 35.22 77.59 91.29
Dec 2017 72.37 68.06 83.42 24.25 81.91 11.62 84.99 31.58 77.87 90.95
Yield g/t Dec 2018 2.02 1.42 2.71 0.22 2.05 0.07 3.06 0.42 2.76 13.77
Dec 2017 1.81 1.42 2.75 0.25 1.99 0.08 3.15 0.48 2.79 13.69
PGM production(2) 4Eoz - 2Eoz Dec 2018 1,768,280 1,175,672 1,080,421 95,251 255,172 17,578 700,673 77,673 124,576 592,608
Dec 2017 1,570,704 1,194,348 1,083,902 110,446 241,225 19,443 718,524 91,003 124,153 376,356
PGM sold 4Eoz - 2Eoz Dec 2018 1,769,591 1,175,672 1,080,421 95,251 255,172 17,578 700,673 77,673 124,576 593,919
Dec 2017 1,549,615 1,194,348 1,083,902 110,446 241,225 19,443 718,524 91,003 124,153 355,267
Price and costs(3)
Average PGM basket price(4) R/4Eoz - R/2Eoz Dec 2018 13,657 13,838 13,888 13,345 14,203 13,618 13,774 13,263 13,525 13,337
Dec 2017 12,477 12,534 12,552 12,329 12,564 12,679 12,548 12,255 12,572 12,330
US$/4Eoz Dec 2018 1,031 1,045 1,049 1,008 1,072 1,028 1,040 1,001 1,021 1,007
Dec 2017 938 942 943 927 944 953 943 921 945 927
Operating cost(5) R/t Dec 2018 625 474 967 72 676 20 1,180 141 882 3,353
Dec 2017 554 467 982 66 634 16 1,167 133 867 3,081
US$/t Dec 2018 47 36 73 5 51 2 89 11 67 253
Dec 2017 42 35 74 5 48 1 88 10 65 232
R/4Eoz - R/2Eoz Dec 2018 9,799 11,019 11,108 10,127 10,238 8,687 11,977 10,453 9,919 7,576
Dec 2017 8,013 10,831 11,126 8,271 9,932 6,676 11,527 8,612 9,670 7,001
US$/4Eoz - US$/2Eoz Dec 2018 740 832 839 765 773 656 904 789 749 572
Dec 2017 602 814 836 621 747 502 866 647 727 526
Adjusted EBITDA margin(6) % Dec 2018 19 22 22 18 33 46
Dec 2017 12 15 27 11 31 43
All-in sustaining cost(7) R/4Eoz - R/2Eoz Dec 2018 9,904 10,417 9,849 8,676 10,642 9,069 8,994
Dec 2017 9,959 10,399 10,176 6,696 10,554 9,781 8,707
US$/4Eoz - US$/2Eoz Dec 2018 748 787 744 655 804 685 677
Dec 2017 748 782 765 503 793 735 651
All-in cost(7) R/4Eoz - R/2Eoz Dec 2018 10,897 10,472 9,849 11,924 10,643 9,069 11,651
Dec 2017 10,582 10,401 10,176 6,815 10,554 9,781 11,097
US$/4Eoz - US$/2Eoz Dec 2018 823 791 744 900 804 685 880
Dec 2017 795 782 765 512 793 735 821
Capital expenditure
Ore reserve development Rm Dec 2018 1,476.8 477.9 - - 477.9 - 998.9
Dec 2017 1,003.6 465.0 - - 465.0 - 538.6
Sustaining capital Dec 2018 724.6 464.4 141.4 9.5 313.5 170.9 260.2
Dec 2017 572.0 567.6 190.5 11.0 366.1 222.5 226.9
Corporate and projects Dec 2018 1,631.7 57.7 - 57.1 0.6 - 1,574.0
Dec 2017 890.6 2.3 - 2.3 - - 888.3
Total capital expenditure Rm Dec 2018 3,833.1 1,000.0 141.4 66.6 792.0 170.9 2,833.1
Dec 2017 2,466.2 1,034.9 190.5 13.3 831.1 222.5 1,653.8
US$m Dec 2018 289.5 75.5 10.7 5.0 59.8 12.9 214.0
Dec 2017 201.9 77.7 14.3 1.0 62.4 16.7 124.2
Average exchange rates for the year ended 31 December 2018 and 31 December 2017 were R13.24/US$ and R13.31/US$, respectively.
Figures may not add as they are rounded independently.
(1) The US PGM operations' results for the year ended 31 December 2017 include Stillwater for eight 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 processes recycling material
which is excluded from the statistics shown and is detailed in the PGM recycling table below.
(2) Production per product - see prill split in the table below.
(3) 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.
(4) The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment.
(5) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory 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 and change in inventory in a
period by the gold produced in the same period.
(6) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
(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.
The US region All-in cost, excluding the corporate project expenditure (on the Altar and Marathon projects), for the years ended 31 December 2018 and 31 December 2017 was
US$871/2Eoz and US$825/2Eoz, respectively.
(8) The US region corporate project expenditure for the years ended 31 December 2018 and 31 December 2017 was R71.1 million (US$5.4 million and R39.7 million (US$3.0 million),
respectively, which related to the Altar and Marathon projects.
Mining - Prill split excluding Recycling operations
GROUP SA REGION US REGION
Year ended Dec 2018 Dec 2018 Dec 2017 Dec 2018 Dec 2017
4Eoz / 2Eoz % 4Eoz % 4Eoz % 2Eoz % 2Eoz %
Platinum 818,918 46% 685,020 58% 694,956 58% 133,898 23% 85,238 23%
Palladium 823,120 47% 364,410 31% 372,217 31% 458,710 77% 291,118 77%
Rhodium 95,633 5% 95,633 8% 100,165 9%
Gold 30,609 2% 30,609 3% 27,010 2%
PGM production 1,768,280 100% 1,175,672 100% 1,194,348 100% 592,608 100% 376,356 100%
Ruthenium 156,504 156,504 156,211
Iridium 35,846 35,846 36,002
Total 1,960,630 1,368,021 1,386,561 592,608 376,356
Recycling Operation
US REGION
Unit Dec 2018 Dec 2017
Average catalyst fed/day Tonne 22.0 24.2
Total processed Tonne 8,036 5,933
Tolled Tonne 1,139 869
Purchased Tonne 6,896 5,063
PGM fed Troy oz 686,592 517,148
PGM sold Troy oz 540,546 377,793
PGM tolled returned Troy oz 144,172 108,728
SA gold operations
SA REGION
Total SA gold operations(1) Driefontein Kloof Beatrix Cooke DRDGOLD
Under- Under- Under- Under- Under-
Total ground Surface ground Surface ground Surface ground Surface ground Surface Surface
Tonnes milled/treated 000't Dec 2018 27,199 5,811 21,388 1,634 1,509 1,821 5,287 2,282 670 74 4,018 9,904
Dec 2017 19,030 7,575 11,455 2,137 3,905 2,177 3,574 2,737 778 524 3,198
Yield g/t Dec 2018 1.35 5.21 0.30 5.48 0.41 7.11 0.44 3.63 0.37 1.08 0.33 0.19
Dec 2017 2.29 5.19 0.38 6.21 0.45 6.81 0.45 3.24 0.30 4.46 0.24
Gold produced kg Dec 2018 36,600 30,263 6,337 8,952 621 12,940 2,313 8,291 245 80 1,314 1,844
Dec 2017 43,634 39,285 4,349 13,262 1,742 14,826 1,606 8,859 232 2,338 769
000'oz Dec 2018 1,176.7 973.0 203.8 287.8 20.0 416.0 74.4 266.6 7.9 2.6 42.2 59.3
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
Gold sold kg Dec 2018 36,489 30,256 6,233 8,952 621 12,933 2,231 8,291 245 80 1,266 1,870
Dec 2017 43,763 39,403 4,360 13,346 1,742 14,860 1,606 8,859 232 2,338 780
000'oz Dec 2018 1,173.1 972.8 200.4 287.8 20.0 415.8 71.7 266.6 7.9 2.6 40.7 60.1
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
Gold price received R/kg Dec 2018 535,929 533,918 536,250 539,046 550,223 560,160
Dec 2017 536,378 535,319 537,167 536,333 537,684
US$/oz Dec 2018 1,259 1,254 1,259 1,266 1,292 1,316
Dec 2017 1,254 1,251 1,256 1,254 1,257
Operating cost(2) R/t Dec 2018 648 2,512 156 3,297 214 2,943 192 1,683 104 176 172 104
Dec 2017 937 2,111 161 2,556 183 2,342 183 1,407 129 3,019 117
US$/t Dec 2018 49 190 12 249 16 222 14 127 8 13 13 8
Dec 2017 70 159 12 192 14 176 14 106 10 227 9
R/kg Dec 2018 490,209 482,410 527,452 601,731 519,485 414,095 437,769 463,273 284,898 162,500 524,590 557,050
Dec 2017 408,773 407,132 423,592 411,838 410,218 343,896 406,725 434,823 432,759 676,518 486,346
US$/oz Dec 2018 1,151 1,133 1,239 1,413 1,220 972 1,028 1,088 669 382 1,232 1,308
Dec 2017 956 952 990 963 959 804 951 1,017 1,012 1,582 1,137
Adjusted EBITDA
margin(3) % Dec 2018 7 (13) 21 14 (50) 3
Dec 2017 23 23 34 19 (31)
All-in sustaining cost(4) R/kg Dec 2018 557,530 707,375 489,587 521,884 476,003 569,893
Dec 2017 482,693 487,951 430,572 502,761 673,445
US$/oz Dec 2018 1,309 1,661 1,150 1,226 1,118 1,338
Dec 2017 1,128 1,141 1,007 1,175 1,574
All-in cost(4) R/kg Dec 2018 583,409 707,417 498,938 522,083 476,003 732,086
Dec 2017 501,620 490,893 439,506 503,036 677,197
US$/oz Dec 2018 1,370 1,661 1,172 1,226 1,118 1,719
Dec 2017 1,173 1,148 1,027 1,176 1,583
Ore reserve
development Rm Dec 2018 2,053.6 817.1 839.6 396.9 - -
Dec 2017 2,287.9 876.1 876.2 482.0 53.6
Sustaining capital Dec 2018 545.8 228.1 220.6 82.6 - 14.5
Dec 2017 531.1 235.0 210.2 63.1 8.5
Corporate and projects(5) Dec 2018 648.4 0.4 141.8 1.7 - 303.3
Dec 2017 564.5 44.4 147.1 0.5 11.7
Total capital
expenditure Rm Dec 2018 3,247.7 1,045.6 1,202.0 481.2 - 317.8
Dec 2017 3,410.1 1,155.5 1,233.5 545.6 73.9
US$m Dec 2018 245.2 78.9 90.8 36.3 - 24.0
Dec 2017 256.2 86.8 92.7 40.9 5.5
Average exchange rates for the year ended 31 December 2018 and 31 December 2017 were R13.24/US$ and R13.31/US$, respectively.
Figures may not add as they are rounded independently.
(1) The SA gold operations' results for the year ended 31 December 2018 include DRDGOLD for the five months since acquisition.
(2) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory 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 and change in inventory in a
period by the gold produced in the same period.
(3) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
(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. 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.
(5) Corporate project expenditure for the years ended 31 December 2018 and 31 December 2017 was R201.2 million (US$15.2 million) and R401.6 million (US$30.3 million), respectively, the majority of
which related to the Burnstone project.
SALIENT FEATURES AND COST BENCHMARKS - QUARTERS
SA and US PGM operations
GROUP SA REGION US REGION
Total SA and Total US
US PGM Total SA PGM Kroondal Plat Mile Rustenburg Mimosa PGM
operations Stillwater
Under- Under- Under-
Attributable Total ground Surface Attributable Surface ground Surface Attributable ground(1)
Production
Tonnes milled/treated 000't Dec 2018 7,001 6,639 3,147 3,492 1,030 2,077 1,764 1,415 353 362
Sep 2018 7,094 6,768 3,288 3,479 1,001 1,887 1,936 1,593 351 326
Plant head grade g/t Dec 2018 2.68 2.02 3.26 0.90 2.53 0.65 3.62 1.27 3.59 14.81
Sep 2018 2.59 2.01 3.22 0.87 2.45 0.68 3.57 1.10 3.54 14.55
Plant recoveries % Dec 2018 76.38 69.92 83.91 24.38 83.24 11.53 85.50 34.05 77.27 91.89
Sep 2018 75.30 69.59 83.18 22.18 82.41 11.78 84.53 29.77 77.19 89.21
Yield g/t Dec 2018 2.05 1.41 2.73 0.22 2.10 0.08 3.09 0.43 2.77 13.70
Sep 2018 1.95 1.40 2.68 0.19 2.02 0.08 3.01 0.33 2.73 13.28
PGM production(2) 4Eoz - 2Eoz Dec 2018 460,750 301,279 276,590 24,690 69,666 5,009 175,473 19,681 31,451 159,471
Sep 2018 444,405 305,227 283,564 21,662 65,047 4,851 187,663 16,811 30,855 139,178
PGM sold 4Eoz - 2Eoz Dec 2018 516,279 301,279 276,590 24,690 69,666 5,009 175,473 19,681 31,451 215,000
Sep 2018 412,800 305,227 283,564 21,662 65,047 4,851 187,663 16,811 30,855 107,573
Price and costs(3)
Average PGM basket price(4) R/4Eoz - R/2Eoz Dec 2018 15,415 15,427 15,536 14,348 15,901 14,440 15,391 14,324 15,053 15,394
Sep 2018 13,559 14,049 14,110 13,333 14,446 13,907 13,994 13,167 13,532 12,592
US$/4Eoz - US$/2Eoz Dec 2018 1,077 1,078 1,086 1,003 1,111 1,009 1,076 1,001 1,052 1,076
Sep 2018 971 1,000 1,004 949 1,028 990 996 937 963 896
Operating cost(5) R/t Dec 2018 753 484 998 72 717 22 1,163 144 927 3,443
Sep 2018 662 503 1,008 76 693 23 1,172 138 924 3,799
US$/t Dec 2018 53 34 70 5 50 2 81 10 65 241
Sep 2018 47 36 72 5 49 2 83 10 66 270
R/4Eoz - R/2Eoz Dec 2018 11,658 11,265 11,377 10,154 10,595 9,263 11,687 10,381 10,410 7,816
Sep 2018 10,798 11,753 11,720 12,141 10,665 8,782 12,086 13,110 10,514 8,914
US$/4Eoz - US$/2Eoz Dec 2018 815 787 795 710 741 647 817 726 728 546
Sep 2018 768 836 834 864 759 625 860 933 748 634
All-in sustaining cost(6) R/4Eoz - R/2Eoz Dec 2018 10,058 10,576 8,997 9,423 11,170 10,582 9,180
Sep 2018 10,819 10,834 10,131 8,472 11,114 9,559 10,789
US$/4Eoz - US$/2Eoz Dec 2018 703 739 629 659 781 740 642
Sep 2018 770 771 721 603 791 680 769
All-in cost(6) R/4Eoz - R/2Eoz Dec 2018 11,326 10,596 8,997 10,501 11,170 10,582 12,560
Sep 2018 11,751 10,901 10,131 12,245 11,114 9,559 13,428
US$/4Eoz - US$/2Eoz Dec 2018 792 741 629 734 781 740 878
Sep 2018 836 776 721 871 791 680 956
Capital expenditure
Ore reserve development Rm Dec 2018 425.9 119.9 - - 119.9 - 306.0
Sep 2018 384.7 131.4 - - 131.4 - 253.3
Sustaining capital Dec 2018 283.5 219.3 59.6 3.4 156.3 56.0 64.2
Sep 2018 186.9 101.6 31.9 1.3 68.4 49.2 85.3
Corporate and projects(7) Dec 2018 544.4 5.4 - 5.4 - - 539.0
Sep 2018 385.6 18.3 - 18.3 - - 367.3
Total capital expenditure Rm Dec 2018 1,253.8 344.6 59.6 8.8 276.2 56.0 909.2
Sep 2018 957.2 251.3 31.9 19.7 199.7 49.2 705.9
US$m Dec 2018 87.6 24.1 4.2 0.6 19.3 3.9 63.6
Sep 2018 68.1 17.9 2.3 1.4 14.2 3.5 50.2
Average exchange rates for the quarters ended 31 December 2018 and 30 September 2018 were R14.31/US$ and R14.05/US$, respectively.
Figures may not add as they are rounded independently.
(1) 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 processes recycling material which is excluded from the statistics shown, except for adjusted EBITDA margin and is detailed in the PGM recycling table below.
(2) Production per product - see prill split in the table below.
(3) 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.
(4) The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment.
(5) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory 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 and change in inventory in a period by the gold
produced in the same period.
(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. 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.
The US region All-in cost, excluding the corporate project expenditure (on the Altar and Marathon projects), for the quarters ended 31 December 2018 and 30 September 2018 was
US$876/2Eoz and US$951/2Eoz, respectively
(7) The US region corporate project expenditure for the quarters ended 31 December 2018 and 30 September 2018 was R4.2 million (US$0.3 million) and R8.9 million (US$0.6 million),
respectively, which related to the Altar and Marathon projects.
Mining - Prill split excluding recycling operation
GROUP SA REGION US REGION
Dec 2018 Dec 2018 Sep 2018 Dec 2018 Sep 2018
4Eoz /
2Eoz % 4Eoz % 4Eoz % 2Eoz % 2Eoz %
Platinum 212,055 46% 175,975 58% 177,728 58% 36,080 23% 31,866 23%
Palladium 216,516 47% 93,125 31% 94,624 31% 123,391 77% 107,312 77%
Rhodium 25,524 6% 25,524 9% 25,828 9%
Gold 6,655 1% 6,655 2% 7,047 2%
PGM production 460,750 100% 301,279 100% 305,227 100% 159,471 100% 139,178 100%
Ruthenium 40,098 40,098 41,001
Iridium 9,158 9,158 9,470
Total 510,006 350,535 355,698 159,471 139,178
Recycling operation
US REGION
Unit Dec 2018 Sep 2018
Average catalyst
fed/day Tonne 22.1 18.4
Total processed Tonne 2,032 1,696
Tolled Tonne 280 188
Purchased Tonne 1,752 1,508
PGM fed 3Eoz 181,761 144,585
PGM sold 3Eoz 110,476 126,744
PGM tolled returned 3Eoz 35,441 40,475
SA gold operations
SA REGION
Total SA gold(1) Driefontein Kloof Beatrix Cooke DRDGOLD
Under- Under- Under- Under- Under-
Total ground Surface ground Surface ground Surface ground Surface ground Surface Surface
Production
Tonnes milled/treated 000't Dec 2018 9,634 1,138 8,496 282 126 393 1,151 421 292 42 1,172 5,755
Sep 2018 8,515 1,534 6,981 402 180 471 1,437 629 94 32 1,121 4,149
Yield g/t Dec 2018 0.87 5.37 0.27 5.11 0.56 7.19 0.50 4.26 0.37 1.05 0.36 0.19
Sep 2018 1.13 5.05 0.27 5.38 0.61 7.09 0.42 3.53 0.34 0.94 0.31 0.18
Gold produced kg Dec 2018 8,399 6,106 2,293 1,441 70 2,827 576 1,794 108 44 428 1,111
Sep 2018 9,609 7,752 1,857 2,162 110 3,338 607 2,222 32 30 351 757
oz Dec 2018 270,025 196,313 73,712 46,329 2,251 90,891 18,522 57,678 3,472 1,415 13,748 35,719
Sep 2018 308,922 249,233 59,689 69,510 3,537 107,319 19,515 71,439 1,029 965 11,285 24,323
Gold sold kg Dec 2018 8,288 6,099 2,189 1,441 70 2,820 494 1,794 108 44 380 1,137
Sep 2018 9,585 7,752 1,833 2,162 110 3,338 607 2,222 32 30 351 733
oz Dec 2018 266,464 196,087 70,377 46,329 2,251 90,665 15,882 57,678 3,472 1,415 12,217 36,555
Sep 2018 308,176 249,233 58,943 69,510 3,537 107,319 19,515 71,439 1,029 965 11,285 23,577
Price and costs
Gold price received R/kg Dec 2018 561,788 557,909 560,260 563,197 564,623 564,820
Sep 2018 544,542 550,528 545,856 543,301 549,606 553,003
US$/oz Dec 2018 1,221 1,213 1,218 1,224 1,228 1,228
Sep 2018 1,205 1,218 1,208 1,202 1,216 1,224
Operating cost(2) R/t Dec 2018 461 3,001 160 4,303 148 3,331 174 2,103 100 186 229 107
Sep 2018 561 2,515 132 3,585 326 2,963 209 1,622 109 47 144 94
US$/t Dec 2018 32 210 11 301 10 233 12 147 7 13 16 7
Sep 2018 40 179 9 255 23 211 15 115 8 3 10 7
R/kg Dec 2018 539,451 558,382 489,033 842,054 267,143 460,835 347,688 493,590 269,444 177,273 606,177 552,565
Sep 2018 497,425 497,730 496,153 666,559 533,636 418,065 495,222 459,136 318,750 53,333 458,689 516,651
US$/oz Dec 2018 1,173 1,214 1,063 1,831 581 1,002 756 1,073 586 385 1,318 1,201
Sep 2018 1,101 1,102 1,098 1,475 1,181 925 1,096 1,016 705 118 1,015 1,144
All-in sustaining cost(3) R/kg Dec 2018 610,883 989,014 526,433 537,066 406,132 569,217
Sep 2018 582,809 785,871 509,303 528,882 484,777 564,161
US$/oz Dec 2018 1,328 2,150 1,144 1,168 883 1,238
Sep 2018 1,290 1,739 1,127 1,171 1,073 1,249
All-in cost(3) R/kg Dec 2018 651,267 989,014 538,413 537,802 406,132 734,916
Sep 2018 609,794 785,915 516,755 528,882 484,777 720,775
US$/oz Dec 2018 1,416 2,150 1,171 1,169 883 1,598
Sep 2018 1,350 1,739 1,144 1,171 1,073 1,596
Capital expenditure
Ore reserve
development Rm Dec 2018 432.0 165.7 199.1 67.2 - -
Sep 2018 591.3 232.3 242.6 116.4 - -
Sustaining capital Dec 2018 218.6 96.6 80.4 31.8 - 9.8
Sep 2018 143.3 47.4 64.8 26.6 - 4.5
Corporate and projects(4) Dec 2018 256.2 - 39.7 1.4 - 188.4
Sep 2018 144.3 0.1 29.4 - - 114.8
Total capital
expenditure Rm Dec 2018 906.8 262.3 319.2 100.4 - 198.2
Sep 2018 879.0 279.8 336.9 143.0 - 119.3
US$m Dec 2018 63.4 18.3 22.3 7.0 - 13.9
Sep 2018 62.6 19.9 24.0 10.2 - 8.5
Average exchange rates for the quarters ended 31 December 2018 and 30 September 2018 were R14.31/US$ and R14.05/US$, respectively.
Figures may not add as they are rounded independently.
(1) The SA gold operations' results for the quarter ended 30 September 2018 include DRDGOLD for the two months since acquisition.
(2) Operating cost is the average cost of production and calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory 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 and change in inventory in a
period by the gold produced in the same period.
(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 quarters ended 31 December 2018 and 30 September 2018 was R26.7 million (US$1.9 million) and R31.2 million (US$2.2 million), respectively, the
majority of which related to the Burnstone project.
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 Dec 2018 30 Sep 2018 Year ended 31 Dec 2018
Carbon Carbon Carbon
Reef Black Reef leader Main VCR Black Reef leader Main VCR Black Reef leader Main VCR
Driefontein Unit
Advanced (m) 2 1,043 564 847 131 1,304 698 875 263 5,475 2,598 3,580
Advanced on reef (m) 285 ` 44 47 285 105 198 155 1,239 762 567
Channel width (cm) 48 42 36 179 50 40 88 132 47 47 78
Average value (g/t) 24.5 13.4 86.1 5.1 23.1 14.9 22.3 3.6 23.3 11.7 38.8
(cm.g/t) 1,183 569 3,091 906 1,157 591 1,962 474 1,096 547 3,031
Quarter ended 31 Dec 2018 30 Sep 2018 Year ended 31 Dec 2018
Reef Cobble Kloof Main Libanon VCR Cobble Kloof Main Libanon VCR Cobble Kloof Main Libanon VCR
Kloof Unit
Advanced (m) 1,145 619 1,245 1,382 603 20 1,272 4,904 2,405 50 5,248
Advanced on reef (m) 316 202 223 416 143 20 231 1,438 548 29 1,060
Channel width (cm) 129 131 120 132 138 113 132 131 131 109 113
Average value (g/t) 8.4 11.6 20.7 6.1 13.0 11.4 17.9 7.5 10.5 11.4 20.2
(cm.g/t) 1,091 1,526 2,485 812 1,782 1,289 2,357 989 1,371 1,236 2,291
Quarter ended 31 Dec 2018 30 Sep 2018 Year ended 31 Dec 2018
Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Beatrix Unit
Advanced (m) 3,223 38 4,300 74 15,918 205
Advanced on reef (m) 1,016 20 1,377 2 4,980 43
Channel width (cm) 106 183 127 132 117 174
Average value (g/t) 9.1 4.6 6.8 7.9 6.9 7.1
(cm.g/t) 966 850 860 1,039 812 1,238
Quarter ended 31 Dec 2018 30 Sep 2018 Year ended 31 Dec 2018
Kimberley Kimberley Kimberley
Reef Reefs Reefs Reefs
Burnstone Unit
Advanced (m) 1,648
Advanced on reef (m) 293
Channel width (cm) 56
Average value (g/t) 10.0
(cm.g/t) 559
PGM operations
Quarter ended 31 Dec 2018 30 Sep 2018 Year ended 31 Dec 2018
Reef Kopaneng Simunye Bambanani Kwezi K6 Kopaneng Simunye Bambanani Kwezi K6 Kopaneng Simunye Bambanani Kwezi K6
Kroondal Unit
Advanced (m) 651 598 707 662 592 587 468 608 627 533 2,345 2,087 2,486 2,534 2,482
Advanced on reef (m) 651 598 707 662 592 574 428 539 575 508 2,266 1,840 2,230 2,300 2,188
Height (cm) 247 219 224 240 241 248 224 217 250 247 243 228 220 245 249
Average value (g/t) 1.8 2.2 2.1 2.1 2.3 1.8 2.3 2.1 2.1 1.8 1.9 2.1 2.2 2.1 2.0
(cm.g/t) 455 486 478 501 546 441 517 460 515 445 471 484 489 521 500
Quarter ended 31 Dec 2018 30 Sep 2018 Year ended 31 Dec 2018
Reef Bathopele Thembelani Khuseleka Siphumelele Bathopele Thembelani Khuseleka Siphumelele Bathopele Thembelani Khuseleka Siphumelele
Rustenburg Unit
Advanced (m) 943 2,017 2,617 1,177 552 2,103 2,797 1,148 2,113 7,366 10,022 4,498
Advanced on reef (m) 943 679 912 668 552 769 915 558 2,113 2,782 3,197 2,092
Height (cm) 216 287 285 282 220 287 282 285 215 288 286 287
Average value (g/t) 2.8 2.4 2.3 3.1 2.7 2.2 2.2 3.2 2.6 2.2 2.2 3.1
(cm.g/t) 596 692 647 872 594 643 631 906 561 635 630 878
Quarter ended 31 Dec 2018 30 Sep 2018 Year ended 31 Dec 2018
Stillwater Stillwater Stillwater
Reef incl Blitz East Boulder incl Blitz East Boulder incl Blitz East Boulder
Stillwater Unit
Primary development (off reef) (m) 2,659 275 2,530 445 10,903 1,779
Secondary development (m) 2,557 1,538 2,333 1,530 9,081 5,859
ADMINISTRATION AND CORPORATE INFORMATION
SIBANYE GOLD LIMITED, trading as SIBANYE- DIRECTORS AMERICAN DEPOSITORY
STILLWATER Sello Moloko(1) (Chairman) RECEIPTS TRANSFER AGENT
Incorporated in the Republic of South Africa Neal Froneman (CEO) BNY Mellon Shareowner Services
Registration number 2002/031431/06 Charl Keyter (CFO) PO Box 358516
Share code: SGL Savannah Danson(1) Pittsburgh
Issuer code: SGL Timothy Cumming(1) PA15252-8516
ISIN: ZAE E000173951 Barry Davison(1) US toll-free: +1 888 269 2377
Rick Menell(1) Tel: +1 201 680 6825
LISTINGS Nkosemntu Nika(1) Email: shrrelations@bnymellon.com
JSE: SGL Keith Rayner(1)
NYSE: SBGL Susan van der Merwe(1) Tatyana Vesselovskaya
Jerry Vilakazi(1) Relationship Manager
Harry Kenyon-Slaney(1) (appointed 16 January 2019) BNY Mellon
WEBSITE (1) Independent non-executive Depositary Receipts
www.sibanyestillwater.com Direct Line: +1 212 815 2867
JSE SPONSOR Mobile: +1 203 609 5159
REGISTERED AND CORPORATE OFFICE JP Morgan Equities South Africa Proprietary Limited Fax: +1 212 571 3050
Constantia Office Park (Registration number : 1995/011815/07) Email: tatyana.vesselovskaya@bnymellon.com
Cnr 14th Avenue and Hendrik Potgieter Road 1 Fricker Road
Bridgeview House, Ground Floor, Illovo TRANSFER SECRETARIES
Weltevreden Park 1709 Johannesburg 2196 SOUTH AFRICA
South Africa South Africa
Computershare Investor Services Proprietary
Limited
Private Bag X5 Private Bag X9936 Rosebank Towers
Westonaria 1780 Sandton 2196 15 Biermann Avenue
South Africa South Africa Rosebank 2196
Tel: +27 11 278 9600 PO Box 61051
Fax: +27 11 278 9863 OFFICE OF THE UNITED KINGDOM SECRETARIES Marshalltown 2107
LONDON South Africa
INVESTOR ENQUIRIES St James's Corporate Services Limited Tel: +27 11 370 5000
James Wellsted Suite 31, Second Floor Fax: +27 11 688 5248
Senior Vice President: 107 Cheapside
Investor Relations London EC2V 6DN
Tel: +27 83 453 4014 United Kingdom TRANSFER SECRETARIES
+27 10 493 6923 Tel: +44 20 7796 8644 UNITED KINGDOM
Email: james.wellsted@sibanyestillwater.com or Fax: +44 20 7796 8645 Link Asset Services
ir@sibanyestillwater.com The Registry
34 Beckenham Road
AUDITORS Beckenham
CORPORATE SECRETARY KPMG Inc. Kent BR3 4TU
Lerato Matlosa KPMG Crescent England
Tel: +27 10 493 6921 85 Empire Road Tel: 0871 664 0300 (calls cost 10p/minute plus
Email: lerato.matlosa@sibanyestillwater.com Parktown network extras, lines are open 8.30am-5pm Mon-
Johannesburg 2193 Fri) or +44 20 8639 3399 (from overseas)
South Africa Fax: +44 20 8658 3430
Tel: +27 11 647 7111 Email: ssd@capitaregistrars.com
FORWARD-LOOKING STATEMENTS
This announcement 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's trading as Sibanye-Stillwater's (Sibanye-
Stillwater or the Group) 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.
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 and 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). Readers are cautioned not to
place undue reliance on such statements.
The important factors that could cause Sibanye-Stillwater's actual results, performance or achievements to differ materially from those in the forward-looking
statements include, among others, our future business prospects; financial positions; debt position and our ability to reduce debt leverage; business, political
and social conditions in the United Kingdom, South Africa, Zimbabwe and elsewhere; plans and objectives of management for future operations; our ability to
obtain the benefits of any streaming arrangements or pipeline financing; our ability to service our bond Instruments (High Yield Bonds and Convertible Bonds);
changes in assumptions underlying Sibanye-Stillwater's estimation of its 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; our ability to achieve steady state production
at the Blitz project; the success of Sibanye-Stillwater's business strategy; exploration and development activities; the ability of Sibanye-Stillwater to comply with
requirements that it operates 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; the ability to hire and
retain senior management or sufficient technically skilled employees, as well as its 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 announcement. Sibanye-Stillwater expressly disclaims any
obligation or undertaking to update or revise any forward-looking statement (except to the extent legally required).
Date: 21/02/2019 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
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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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