Operating update for the quarter and half year ended 30 June 2019
Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)
Operating update for the quarter and half year ended 30 June 2019
Johannesburg, 8 August 2019. Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL) is
pleased to provide an operating update for the quarter and half-year ended 30 June 2019
(Q2 2019 and H1 2019 respectively). Detailed financial and operating results for H1 2019
will be released on Thursday, 29 August 2019.
The operating results from the Group’s three segments for Q2 2019 were significantly
improved relative to Q1 2019, with further operational improvements forecast across the
Group during H2 2019 providing the momentum to achieve segmental annual guidance.
Mined 2E PGM production from the US PGM operations of 153,874oz for Q2 2019, increased by
18% after a slower than anticipated start to Q1 2019, with All-in Sustaining Cost (AISC)
of approximately US$723/2Eoz, 13% lower. 2E PGM Production of 284,773oz and AISC of
approximately US$774/2Eoz for H1 2019 includes the poor Q1 2019 results highlighted in the
previous operating update. The planned claw back of production from Q1 2019 remains on
track, with a significant improvement in production and costs forecast for H2 2019.
The commissioning of the second electric furnace in Q1 2019, enabled delivery of record
throughput of mined and recycled material from the Columbus Metallurgical Complex for H1
2019. During the period the recycling operation fed an average of 26.3 tonnes of material
per day, representing an 11% increase compared to H1 2018.
The consistent operational performance from the SA PGM operations continued, with Q2 2019
4E PGM production (excluding the Marikana operations) of 283,526oz, 8% higher and AISC of
approximately R12,500/4Eoz (US$869/4Eoz) 2% lower than for Q1 2019. Due to seasonal factors,
the second half of the calendar year is generally better from an operational perspective
for South African mining operations. As such, annual production (excluding the Marikana
operations) is expected to be at the upper end of annual guidance of between 1,000,000oz
and 1,100,000oz and AISC within annual guidance of between R12,500/4Eoz and R13,200/4Eoz
(US$922/4Eoz and US$974/4Eoz).
The Marikana operations will be consolidated as part of the SA PGM operations for the month
of June 2019 (since acquisition), in the “operating and financial results for the six-
months ended 30 June 2019” which will be released on 29 August 2019.
The resumption and build-up of production from the SA gold operations (excluding the
DRDGOLD operations), following the successful outcome of the five month strike in April
2019 has progressed according to plan, with gold production for Q2 2019 of 155,956oz, 46%
higher than for Q1 2019. Production from the SA gold operations (excluding the DRDGOLD
operations) is expected to normalise from August 2019, with forecast production for H2
2019 of between 16,000kg and 17,000kg (514,000oz and 546,000oz), significantly higher than
H1 2019 production of 8,177kg (262,904oz) and more reflective of forecast production rates
before the strike. As a result of the planned production build-up, AISC for H2 2019 of
between R590,000/kg and R630,000/kg (or US$1,350/oz and US$1,450/oz) is forecast to be
significantly lower than AISC of approximately R963,200/kg (US$2,110/oz) for H1 2019.
The average exchange rate for Q1 2019 was R14.01/US$, for Q2 2019 was R14.39/US$, for H1
2019 was R14.20/US$ and for H1 2018 was R12.31/US$. The H2 2019 and annual dollar guidance
is based on an average exchange rate of R13.55/US$.
Results webcast and conference call
Sibanye-Stillwater will release its operating and financial results for the six months
ended 30 June 2019 on Thursday, 29 August 2019 at approximately 14:00 (CAT) and will host
a webcast and conference call at 16h00 (CAT) / 10h00 (EST) / 08h00 (MDT). Pre-registration
is essential for the conference call at http://themediaframe.eu/links/sibanye190829.html
while the webcast may be accessed at http://themediaframe.eu/links/sibanye190829.html.
Investor relations contact:
Head of Investor Relations
Tel: +27 (0) 83 453 4014
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
FORWARD LOOKING STATEMENTS
The information in this announcement may contain 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) (“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 29 March 2019, and the Group’s Annual Report on Form 20-F
filed by Sibanye-Stillwater with the Securities and Exchange Commission on 5 April 2019 (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 their current mineral reserves and resources; the
ability to achieve anticipated efficiencies and other cost savings in connection with past, ongoing and future
acquisitions, as well as at existing operations; 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 they operate in a sustainable manner; changes
in the market price of gold, PGMs and/or uranium; the occurrence of hazards associated with underground and
surface gold, PGMs and uranium mining; the occurrence of labour disruptions and industrial action; the
availability, terms and deployment of capital or credit; changes in relevant government regulations,
particularly environmental, tax, health and safety regulations and new legislation affecting water, mining,
mineral rights and business ownership, including any interpretations thereof which may be subject to dispute;
the outcome and consequence of any potential or pending litigation or regulatory proceedings or other
environmental, health and safety issues; power disruptions, constraints and cost increases; supply chain
shortages and increases in the price of production inputs; fluctuations in exchange rates, currency
devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary stoppages of
mines for safety incidents and unplanned maintenance; the ability to hire and retain senior management or
sufficient technically skilled employees, as well as their ability to achieve sufficient representation of
historically disadvantaged South Africans’ in management positions; failure of information technology and
communications systems; the adequacy of insurance coverage; any social unrest, sickness or natural or man-made
disaster at informal settlements in the vicinity of some of Sibanye-Stillwater’s operations; and the impact
of HIV, tuberculosis and other contagious diseases.
These forward-looking statements speak only as of the date of the content. Sibanye-Stillwater expressly
disclaims any obligation or undertaking to update or revise any forward-looking statement (except to the extent
Date: 08/08/2019 09:30:00
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