Wrap Text
Sibanye-Stillwater Mineral Resources and Mineral Reserves declaration as at 31 December 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”)
Sibanye-Stillwater Mineral Resources and Mineral Reserves declaration as at 31
December 2019
Johannesburg, 18 February 2020: Sibanye-Stillwater (Tickers JSE: SGL and NYSE:
SBGL) is pleased to report updated Group Mineral Resources and Mineral Reserves,
as at 31 December 2019.
Salient features
- 90% increase in the total Platinum Group Metals (PGM) Mineral Resources to
389.0Moz and a 20% increase in the Group’s PGM Mineral Reserves to 55.1Moz,
primarily due to the inclusion of the Marikana (previously Lonmin) assets,
acquired in June 2019
- Ongoing successful definition drilling at the Blitz project, Stillwater Mine,
at the United States (US) PGM operations yielded 2.0Moz of additional Mineral
Reserves
- Gold Mineral Resources at the South African (SA) gold operations increased by
52% primarily due to a reduction in costs associated with the Kloof integration
project, facilitating a decrease in cut-off grades
- Exploration projects’ advanced through the establishment of key partnerships
including Aldebaran Resources Inc, Generation Mining Ltd and Wallbridge Ltd
The group complies with both the JSE and the US Securities and Exchange Commission
(SEC) guidelines on commodity prices used in the estimation of Mineral Reserves at
all managed operations and projects. An average exchange rate of R14.50/US$ and
the commodity prices illustrated below were used in the estimation process:
31-Dec-19 31-Dec-18
Precious metals US$/oz R/oz R/kg US$/oz R/oz R/kg
Gold
1,300 18,850 610,000 1,238 16,796 540,000
Platinum
887 12,862 413,506 959 12,994 417,781
Palladium
1,123 16,284 523,526 819 11,097 356,791
Rhodium
3,600 52,200 1,678,267 1,180 15,989 514,058
Iridium
1,247 18,082 581,333 814 11,030 354,613
Ruthenium
200 2,900 93,237 102 1,382 44,436
Base Metals US$/lb US$/tonne R/tonne US$/lb US$/tonne R/tonne
Nickel
6.33 13,955 183,454 4.99 11,009 149,172
Copper
3.14 6,923 91,133 2.68 5,913 80,121
31-Dec-19 31-Dec-18
US$/lb US$/tonne R/tonne US$/oz US$/tonne R/tonne
Cobalt
28.00 61,729 895,076 20.00 44,092 597,441
1 70
Uranium oxide (U3O8)
32.00 548 960 37.00 81,569 1,105,266
Chromium oxide (Cr2O3)2
3 0.07
165 2,393 0.09 207 2,804
1,2
Long term contract price
3
42% Concentrate
Over the past six months, PGM prices, in particular palladium and rhodium have
increased significantly. Recent spot prices of palladium have exceeded US$2,500/oz
and rhodium US$11,000/oz, resulting in increases of more than 100% and 200% over
reported Mineral Reserve prices respectively. Both the Southern Africa (SA) and US
PGM operations are exposed to these movements, with the US PGM operations
predominantly palladium rich (78% of the 2E basket), and palladium and rhodium
constituting approximately 30% and 9% of the 4E basket at the SA PGM operations.
In addition, the Rand/US$ exchange rate, is currently trading at approximately
R14.90 further enhancing the profitability of the SA operations.
- Group overview
Mineral Resources Mineral Reserves
31-Dec-19 31-Dec-18 31-Dec-19 31-Dec-18
Tonnes Grade 2E/4E 2E/4E Tonnes Grade 2E/4E 2E/4E
PGM operations
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
US 152.9 16.5 81.1 79.9 48.3 17.3 26.9 25.6
SA 1,492.5 4.5 218.0 96.2 290.3 3.0 28.2 20.4
Total operations 1,645.4 5.7 299.1 176.0 338.6 5.1 55.1 46.1
Mineral Resources Mineral Reserves
31-Dec-19 31-Dec-18 31-Dec-19 31-Dec-18
Tonnes Grade 2E/4E 2E/4E Tonnes Grade 2E/4E 2E/4E
PGM projects
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Americas 138.6 0.0 3.1 4.0
SA 626.0 4.3 86.8 24.4
Total projects 764.7 3.7 89.9 28.3
Total PGM 2,410.1 5.0 389.0 204.4 338.6 5.1 55.1 46.1
Mineral Resources Mineral Reserves
31-Dec-19 31-Dec-18 31-Dec-19 31-Dec-18
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
Gold operations
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
SA 591.9 2.7 51.5 33.9 268.9 1.3 10.9 12.1
Total operations 591.9 2.7 51.5 33.9 268.9 1.3 10.9 12.1
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
Gold projects
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
SA 467.1 3.1 46.5 63.7 32.2 4.3 4.5 4.5
US 2,636.2 0.1 6.6 6.6
Total projects 3,103.3 0.5 53.1 70.3 32.2 4.3 4.5 4.5
Total Gold 3,695.2 0.9 104.6 104.2 301.1 1.6 15.4 16.6
Mineral Resources Mineral Reserves
31-Dec-19 31-Dec-18 31-Dec-19 31-Dec-18
Uranium at gold Tonnes Grade U3O8 U3O8 Tonnes Grade U3O8 U308
operations (Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
SA 11.4 1.1 27.0 27.0
Total operations 11.4 1.1 27.0 27.0
Tonnes Grade U3O8 U3O8 Tonnes Grade U3O8 U308
Uranium projects
(Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
SA 262.3 0.1 51.7 51.7
Total projects 262.3 0.1 51.7 51.7
Total Uranium 273.7 8.9 78.7 78.7
Mineral Resources Mineral Reserves
31-Dec-19 31-Dec-18 31-Dec-19 31-Dec-18
Tonnes Grade Copper Copper Tonnes Grade Copper Copper
Copper projects
(Mt) (%) (Mlb) (Mlb) (Mt) (%) (Mlb) (Mlb)
US 2,774.5 0.3 18,711.5 18,795.8
Total projects 2,774.5 0.3 18,711.5 18,795.8
Total Copper 2,774.5 0.3 18,711.5 18,795.8
1
For the US PGM operations, the 2E is represented by Pt and Pd.
2
For the SA PGM operations, the 4E is represented Pt, Pd, Rh and Au.
3
Numbers may not appear additive due to rounding
The substantial increase in the PGM Mineral Resource and Mineral Reserve base,
largely as a result of ongoing drilling at the Blitz project at the Stillwater
Mine in the US and the acquisition of Lonmin Plc, enhances the mine to market
strategy and positions the PGM operations to continue delivering value on a
sustainable basis. The inclusion of Lonmin’s projects into the portfolio has
substantially improved both the greenfields and brownfields project pipeline,
providing the Company with significant development and growth optionality under
appropriate economic circumstances.
Subsequent to the substantial but necessary restructuring that took place in 2018
and 2019 the Mineral Reserve base at our SA gold operations has remained
relatively steady during 2019,. The significant growth in Mineral Resources, which
was largely driven by a forecast reduction in costs associated with the Kloof
integration project, is pleasing, and provides for optionality under an enhanced
metal price environment
Group Mineral Resources and Mineral Reserves per segment
- US PGM operations
- Total 2E PGM Mineral Resources of 81.1Moz, an increase of 2%
- Total 2E PGM Mineral Reserves of 26.9Moz, an increase of 5%
Mineral Resources Mineral Reserves
31-Dec-19 31-Dec-18 31-Dec-19 31-Dec-18
Tonnes Grade 2E 2E Tonnes Grade 2E 2E
PGM operations
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Stillwater (2E) 85.0 17.6 48.2 45.8 26.8 19.4 16.7 14.8
East Boulder
67.9 15.1 32.9 34.0 21.5 14.7 10.2 10.9
(2E)
Total US PGM
152.9 16.5 81.1 79.9 48.3 17.3 26.9 25.6
operations
Note: 2E PGM = Pt (78%) + Pd (22%)
Mineral Resources remain largely unchanged with mining depletions offset by
resource growth (+2,5Moz) at the Blitz section of the Stillwater mine. The growth
in Mineral Reserves was driven by further positive drilling results at the Blitz
section of the Stillwater Mine. Ongoing external audits by independent parties
have noted that Mineral Reserve tonnages may be marginally understated and grades
marginally overstated due to the addition of unplanned mineralised dilution during
stoping. This is not deemed to have a material impact on estimated Mineral
Reserve ounces and further definition of unplanned dilution is currently being
investigated for inclusion in future Mineral Reserve estimates, including the
implementation of scanning technology in stoping operations.
A detailed reconciliation of 2018 to 2019 US PGM operations Mineral Reserves is
shown in the table below.
US PGM operations – Mineral Reserve
reconciliation
Factors 2E PGM (Moz)
31-Dec-18 25.6
Depletion -0.7
Area Inclusions/Exclusions1 1.7
Geological Interpretation 0.3
31-Dec-19 26.9
1
Expansion in the Blitz project area
- Other projects in the Americas
- Total 2E PGM Mineral Resources of 3.1Moz, a decrease of 22%
- Total Gold Mineral Resources of 6.6Moz, unchanged
- Total Copper Mineral Resources of 18,711.5Mlb, a decrease of less than1%
2E5 PGM Mineral Resources Au Mineral Resources Cu Mineral Resources
31- 31-
31-Dec-
31-Dec-19 Dec- 31-Dec-19 Dec- 31-Dec-19
18
18 18
2E 2E
Tonnes Grade Tonnes Grade Gold Gold Tonnes Grade Copper Copper
PGM PGM
Projects
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz) (Mt) (%) (Mlb) (Mlb)
2,613. 2,613. 17,931 17,931.
Altar1 0.1 6.3 6.3 0.3
9 9 .0 0
Marathon2 138.3 0.7 3.1 4.0 138.3 0.2 645.8 730.1
Rio
22.3 0.3 0.2 0.2 22.3 0.3 134.7 134.7
Grande3
4
Denison 0.3 5.9 0.1
Total
2,636. 2,774. 18,711 18,795.
Americas 138.6 0.0 3.1 4.0 0.1 6.6 6.6 0.3
2 5 .5 8
Projects
1
100% Attributable, non-managed
2
55.58% Attributable, non-managed, based on a 49% direct and a 6,58% indirect interest.
3
19.9% Attributable, non-managed
4
80% Attributable, non-managed
5
2E PGM represented by Pt and Pd (Prill split Marathon: Pd (76%) Pt (24%), Denison: Pd (55%),
Pt(45%))
The Altar and Rio Grande Mineral Resources remained unchanged, with no advance in
earn-in by our JV partner, Aldebaran Resources Inc. During 2019, Aldebaran
Resources Inc. drilled four holes at Altar totalling 5,416 m, discovering a new
Cu-Au-Mo porphyry directly under the QDM gold resource.
During 2019, Sibanye-Stillwater concluded an agreement with Generation Mining
Limited (Gen Mining) through which Gen Mining acquired a 51% interest in the
Marathon project and formed an unincorporated joint venture with Stillwater Canada
Inc., in exchange for a cash consideration of 3.0 million Canadian dollars (CAD)
and a 12.9% equity interest in Gen Mining. Gen Mining has an option to earn up to
an 80% interest through spending of $10 million and preparing a Preliminary
Economic Assessment within four years of the property acquisition date marked as
July 11, 2019.
Gen Mining published a revised Mineral Resource estimate for the Marathon deposit
dated 9 September 2019, and has also included additional Mineral Resources at the
Geordie and Sally deposits, which forms part of the greater Marathon Property. The
total PGM Mineral Resource of the Marathon project has increased from 4Moz to
5.5Moz. Due to the transaction with Gen Mining, the attributable reported Marathon
PGM and Cu mineral resources for Sibanye-Stillwater declined by 23% and 12%
respectively.
The Mineral Resources for the Denison PGM exploration project is included for the
first time. Denison project is a PGM exploration project on the Sudbury Igneous
Complex (SIC), approximately 30km to the west southwest of the town of Sudbury.
During 2019, Sibanye-Stillwater acquired the entire shareholding in Lonmin PLC,
including the Denison project, which was 100% held by Loncan, a subsidiary of
Lonmin. During 2019, Loncan entered into a binding agreement with Wallbridge
Mining whereby Loncan has appointed Wallbridge as the operator of the Revised
Denison Property to raise the necessary funding, implement the business plan and
manage the daily operations of Loncan. Loncan has at the end of October 2019
issued Wallbridge with 20% of Loncan (Current Loncan shareholding is currently 80%
Lonmin and 20% Wallbridge).
- SA PGM operations
- Total 4E PGM Mineral Resources of 218.0Moz, an increase of 127%, inclusive of
124.3Moz attributable to Marikana operation
- Total 4E PGM Mineral Reserves of 28.2Moz, an increase of 38%, inclusive of
9.2Moz attributable to the Marikana operation
Mineral Resources Mineral Reserves
31-Dec- 31-Dec-
31-Dec-19 31-Dec-19
18 18
Tonnes Grade 4E 4E Tonnes Grade 4E 4E
PGM operations
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Rustenburg underground 499.8 5.0 80.6 82.2 111.9 3.8 13.7 14.5
1
Kroondal underground 41.7 3.2 4.3 4.7 14.6 2.6 1.2 1.5
2
Mimosa underground 55.3 3.6 6.4 6.7 15.2 3.5 1.7 1.8
Total underground (Excl.
596.8 4.8 91.3 93.6 141.7 3.7 16.6 17.8
Marikana)
3
Marikana underground 811.3 4.7 123.8 64.2 4.2 8.6
Total Underground (Incl.
1408.1 4.8 215.1 93.6 205.8 3.8 25.2 17.8
Marikana)
Rustenburg Surface 69.4 1.1 2.4 2.6 69.4 1.1 2.4 2.6
Total Surface (Excl.
69.4 1.1 2.4 2.6 69.4 1.1 2.4 2.6
Marikana)
Marikana Surface3 15.0 1.2 0.6 15.0 1.2 0.6
Total Surface (Incl.
84.4 1.1 2.9 2.6 84.4 1.1 2.9 2.6
Marikana)
Total SA PGM operations
666.2 4.4 93.7 96.2 211.1 2.8 19.0 20.4
(Excl. Marikana)
Total SA PGM operations
1492.5 4.5 218.0 96.2 290.3 3.0 28.2 20.4
(Incl. Marikana)
1,
50% Attributable, managed
2
50% Attributable, non-managed
3
95,25% Attributable, managed
The large increase in 4E PGM Mineral Resources was primarily due to the inclusion
of the Marikana assets (124.3Moz), which were acquired through the Lonmin
acquisition. 4E PGM Mineral Reserves at the Rustenburg, Kroondal and Mimosa
operations decreased by 1.4Moz, primarily as a result of depletion of 1.6Moz from
mining activities during 2019, partly off-set by 0.2Moz increase due to the latest
life of mine scheduling.
A thorough review of the historic (Sept 2018) 4E PGM Mineral Reserves at the
Marikana Operations, post the takeover of these assets by Sibanye-Stillwater in
June 2019, resulted in a decrease of 22.1Moz primarily due to:
- Depletion of 1.2Moz from mining activities during 2019 (15 months Oct 2018 to
Dec 2019)
- Reduction of 1.1Moz due to an updated geological interpretation influencing
design and scheduling.
- Reduction of 1.5Moz due to the application of the economic evaluation
process.
- Removal of Mineral Reserves of 11.7Moz from operations on Care and
Maintenance without the requisite feasibility studies in line with Sibanye-
Stillwater’s policy.
- Removal of Mineral Reserves of 11.8Moz from projects below infrastructure
which are not included in the life of mine.
- Feasibility studies are currently being conducted on selected projects to
confirm economic viability at current economic parameters which may
positively impact future mineral reserve estimations.
- The decrease was partially offset by:
- An addition of 0.3Moz included under the Marikana Mineral Reserves identified
as a synergistic benefit.
- Sibanye-Stillwater has reported reserves on an attributable basis of 95.25%,
increasing the total reported Mineral attributable Reserves by 4.9Moz in line
with Group policy.
A detailed reconciliation of 2018 to 2019 SA PGM operations Mineral Reserves is
shown in the table below.
SA PGM Operations – Mineral Reserves
Reconciliation
Factors 4E PGM (Moz)
31-Dec-18 (Excl. Marikana) 20.4
Depletion -1.6
1
Geological Interpretation 0.01
Economic Parameters 0.02
Modifying factors1 0.1
31-Dec-18 (Excl. Marikana) 19.0
Marikana (30-Sept-18) 31.2
Attributable Adjustment to
4.9
95.25%6
Depletion -1.2
Area Inclusions/Exclusions2,3 -23.2
4
Geological Interpretation -1.1
Economic Parameters5 -1.5
Modifying factors 0.0
Marikana (31-Dec-18) 9.2
Total (31-Dec-18) 28.2
1
Updates in geological interpretations and modifying factors
2
Removal of Mineral Reserves from projects and operations placed on care and maintenance and below
infrastructure
3
Benefit associated with synergies realised between shaft boundaries
4
Increases in geological loss with latest interpretation
5
Removal of sub-economic mineral reserves at the end of LoM due to tail cutting
6
Reserves declared at 95,25% attributable in line with Group methodology
- SA PGM Projects
- Total 4E PGM Mineral Resources of 86.8Moz, an increase of 256%, inclusive of
Akanani and Limpopo (acquired as part of the Lonmin assets)
Mineral Resources Mineral Reserves
31-Dec- 31-Dec-
31-Dec-19 31-Dec-19
18 18
Tonnes Grade 4E 4E Tonnes Grade 4E 4E
PGM Projects
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
1
Blue Ridge 23.1 3.3 2.4 2.4
2
Vygenhoek 0.0 0.0 0.0 0.2
3
Zondernaam 77.4 6.4 15.9 15.9
Hoedspruit 32.6 5.5 5.8 5.8
Total (Excl. ex Lonmin
133.1 5.6 24.1 24.4
Projects)
Akanani4 293.4 3.9 36.8
5
Limpopo 199.6 4.0 25.9
Total SA PGM projects 626.0 4.3 86.8 24.4
1
50% Attributable, managed
2
Prospecting right expired
3
74% Attributable, managed
4
74% Attributable, managed
5
Attributable portions of Baobab (95,25%), Doornvlei (95,25%) and the Dwaalkop JV (45,3%), managed
The inclusion of Akanani and the larger Limpopo project have dramatically enhanced
the Group’s project pipeline. These projects provide the company with significant
short-term and longer-term growth options, with Akanani being a high-quality
resource on the Plat Reef, amenable to bulk mining methods, and Limpopo being a
well maintained operation under care and maintenance.
- SA gold operations
- Mineral Resources of 51.5Moz, an increase of 52%.
- Mineral Reserves of 10.9Moz, a decline of 10%.
Mineral Resources Mineral Reserves
31-Dec- 31-Dec-
31-Dec-19 31-Dec-19
18 18
Gold operations Tonnes Grade Gold Gold Tonnes Grade Gold Gold
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Beatrix underground 50.3 6.4 10.3 7.4 11.3 4.1 1.5 1.2
1
Cooke – underground 4.0
Driefontein - underground 42.6 10.0 13.8 10.1 11.6 7.1 2.6 3.3
Kloof - underground 67.5 10.8 23.5 8.2 19.0 7.3 4.4 5.0
Total underground 160.4 9.2 47.6 29.8 41.9 6.4 8.5 9.5
Beatrix - surface 0.0 0.0
Cooke - surface 11.0 0.3 0.1 0.2 11.0 0.3 0.1 0.2
Driefontein - surface 0.0 0.0
Kloof - surface 8.3 0.3 0.1 0.1 8.3 0.3 0.1 0.1
2
DRDGOLD - surface 412.2 0.3 3.8 3.8 207.7 0.3 2.2 2.2
Total surface 431.5 0.3 3.9 4.1 227.1 0.3 2.3 2.6
Total SA gold operations 591.9 2.7 51.5 33.9 268.9 1.3 10.9 12.1
1
Closure Initiated
2
38% Attributable, non-managed
The increase in SA Gold Mineral Resources is primarily due to the use of lower
cut-off grades at the Kloof operation. The planned pay-limits at this operation
reduced due to cost savings realised from the Kloof integration project. This
project is designed to close the unprofitable Kloof 3 and Kloof 7 shafts, and to
increase production at Kloof 8 and Kloof Main Shafts, which will result in
increased volumes and lower fixed costs.
The decrease in Gold Mineral Reserves can largely be attributed to:
- Depletion of 0.8Moz from mining activities during 2019
- Changes in the Mineral Resource model for the Ventersdorp Contact Reef (VCR)
at Kloof 4 Shaft, which contributed to an overall decrease for Kloof of
0.3Moz
- Structural geology adjustments on the Carbon Leader Reef (CLR) at Driefontein
5 Shaft, which resulted in geotechnical pillar adjustments and which
contributed to an overall decrease at Driefontein of 0.5Moz
- These decreases were offset by an extension of the Beatrix 4 Shaft Life of
Mine (0.5Moz), where the operation has shown continued profitability
following rationalisation in 2018.
A detailed reconciliation of 2018 to 2019 SA Gold Operations Mineral Reserves is
shown in the table below.
SA gold operations – Mineral Reserves
Reconciliation
Factors Au (Moz)
31-Dec-18 12.1
Depletion -0.8
1
Area Inclusions/Exclusions 0.3
Geological Interpretation2 -0.2
Estimation Methodology3 -0.3
4
Economic Parameters -0.2
Modifying factors5 0.1
31-Dec-19 10.9
1
Beatrix 4 Shaft LoM extended, Driefontein 1 Shaft inclusions, Kloof 4 Shaft exclusions, DRDGOLD
changes
2
Kloof 8 Shaft sub-crop position changed, Driefontein 5 Shaft structural complexities in Overbank
Area
3
Driefontein CLR changes in Overbank Area, Kloof VCR changes in 4 Shaft
4
Surface unpay exclusions, Driefontein 5 Shaft unpay exclusions
5
Improvement in the MCF at Driefontein and Kloof
- SA gold projects
- Total Gold Mineral Resources of 46.5Moz, a decrease of 27%.
- Total Gold Mineral Reserve of 4.5Moz, unchanged.
Mineral Resources Mineral Reserves
31-Dec- 31-Dec-
31-Dec-19 31-Dec-19
18 18
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
Gold Projects
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
1
Beatrix - BI 7.9 5.6 1.4 1.7
Driefontein – BI 38.3 8.9 11.0 9.1
Kloof – BI 32.8 11.9 12.6 16.5 2.7 5.1 0.4 0.4
Burnstone 69.3 4.9 11.0 11.0 14.2 4.3 1.9 1.9
Bloemhoek 28.3 4.7 4.3 4.3
De Bron Merriespruit 28.3 4.4 4.0 4.0 15.3 4.3 2.1 2.1
2
DRDGOLD - Underground 14.8
Total Underground 204.8 6.7 44.3 61.5 32.2 4.3 4.5 4.5
3
Cooke surface tailings 262.3 0.3 2.2 2.2
Total Surface 262.3 0.3 2.2 63.7
Total SA Gold Projects 467.1 3.1 46.5 63.7 32.2 4.3 4.5 4.5
1
BI = Below Infrastructure
2
38% Attributable, non-managed
3
Tailings dams retained post the sale to DRDGOLD
The single largest impact on the Gold Projects Mineral Resources was the exclusion
of the attributable portion of the DRDGOLD underground resource at ERPM, following
the flooding of the underground workings, resulting in a decrease of 14.8Moz. In
January 2020, Sibanye-Stillwater exercised its option to increase its shareholding
in DRDGold to 50.1%. This increase in shareholding will positively impact the
Company’s attributable Gold Mineral Resources and Mineral Reserves in future
reporting periods. The other material impact was at the Kloof Below Infrastructure
(BI) Mineral Resources, which decreased by 4Moz due to an update in the estimation
model. The estimation domains were adjusted in line with changes in the facies
for the EBA area, as well as constraining the estimate in the areas with a lack of
borehole information by using the Global Mean for simple kriging.
Mineral Reserves remained unchanged.
A detailed reconciliation of 2018 to 2019 SA gold project’s Mineral Reserve is
shown in the table below.
SA gold projects – Mineral Reserves
Reconciliation
Factors Au (Moz)
31-Dec-18 4.5
31-Dec-19 4.5
- SA Uranium Operations and Projects
- Total U3O8 Mineral Resource remained unchanged at 78.7Mlb.
Mineral Resources Mineral Reserves
31-Dec- 31-Dec-
31-Dec-19 31-Dec-19
18 18
Uranium at gold Tonnes Grade U3O8 U3O8 Tonnes Grade U3O8 U308
operations (Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
Beatrix (Beisa) 11.4 1.1 27.0 27.0
Total Uranium operations 11.4 1.1 27.0 27.0
Tonnes Grade U3O8 U3O8 Tonnes Grade U3O8 U308
Uranium projects
(Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
1
Cooke surface tailings 262.3 0.1 51.7 51.7
Total Uranium Projects 262.3 0.1 51.7 51.7
Total Uranium operations
273.7 0.1 78.7 78.7
and Projects
1
Includes the Cooke portion of the WRTRP assets not included in the deal with DRDGOLD in 2018
- Corporate Governance
Sibanye-Stillwater reports its Mineral Resources and Mineral Reserves in
accordance with the SAMREC Code, the updated Section 12 of the JSE Listings
Requirements; and in consideration of the SEC Industry Guide 7, which is aligned
with the guiding principles of SOX. Recent amendments adopted by the SEC to
modernise the property disclosure requirements for mining registrations, which has
not come into effect fully yet, aligns closely with the requirements under the JSE
and SAMREC, and any non-compliance to SEC Industry Guide 7 is therefore considered
immaterial. The Altar, Marathon and Rio Grande Mineral Resources were originally
compiled under NI 43-101 guidelines but are deemed to be SAMREC compliant.
This Mineral Reserve and Mineral Resource declaration represents a condensed and
consolidated summary of the full Sibanye-Stillwater Mineral Resource and Mineral
Reserve declaration available in the Group Mineral Resource and Mineral Reserve
Report, which will be published on 22 April 2020 and will be available at
www.sibanyestillwater.com
Guided by a commitment to best practice corporate governance, the statement has
been reviewed and confirmed by each segment’s Technical Services.
The Mineral Resources and Mineral Reserves are estimates at a particular date, and
are affected by fluctuations in mineral prices, the ZAR/US$ exchange rate,
operating costs, mining permits, changes in legislation and operating factors.
Although all permits may not be finalised and in place at the time of reporting,
there is no reason to expect that these will not be granted.
All statement figures are managed by Sibanye-Stillwater with the exception of
those for Mimosa, the attributable portion for DRDGOLD and the US Projects.
Mineral Resources are reported inclusive of Mineral Reserves, and production
volumes are reported in metric tonnes (t).
Gold and Uranium estimates are reported separately from each other; therefore, no
Gold equivalents are stated to avoid potential anomalies as a result of year-on-
year metal price differentials.
The Southern African PGM Operations statement are reported as 3E PGM + Au, which
consists of platinum, palladium, rhodium and gold. The US operations are reported
as 2E PGM, which consist of platinum and palladium.
The individual proportions of the reported PGM’s are provided in the tables below.
4E Prill split (SA PGM operations)
Rustenburg Kroondal Marikana Mimosa
Unit
MER UG2 UG2 MER UG2 MSZ
Platinum % 63.80 54.53 54.94 61.88 59.53 49.35
Palladium % 27.30 34.31 33.95 27.79 28.70 38.47
Rhodium % 3.99 10.43 10.38 3.30 11.21 4.20
Gold % 4.92 0.72 0.72 7.02 0.56 7.97
MER – Merensky Reef
UG2 – Upper Group 2 Chromitite
MSZ – Main Sulphide Zone
6E Prill Split (SA Region)
Precious Metals Prill Rustenburg Kroondal Marikana Mimosa
Unit
Split MER UG2 UG2 MER UG2 MSZ
Platinum % 59.76 46.00 47.20 57.25 48.00 45.80
Palladium % 25.57 29.04 25.71 25.71 23.14 35.70
Rhodium % 3.73 8.55 8.45 3.06 9.04 3.90
Gold % 4.61 0.68 0.59 6.50 0.45 7.40
Ruthenium % 3.23 12.65 14.42 6.39 15.58 3.20
Iridium % 3.11 3.09 3.64 1.10 3.79 4.00
MER – Merensky Reef
UG2 – Upper Group 2 Chromitite
MSZ – Main Sulphide Zone
2E Prill split (US
PGM operations)
Unit Stillwater Mine East Boulder Mine Average
Platinum % 22.17 21.73 22.01
Palladium % 77.83 78.27 77.99
All financial models used to determine Mineral Reserves are based on current tax
regulations at 31 December 2019. Rounding of figures may result in minor
computational discrepancies. Where this happens, it is not deemed significant.
For the United States Region operations, the lead competent person designated in
terms of the SAMREC Code, who takes responsibility for the consolidation and
reporting of the Stillwater and East Boulder Mineral Resources and Mineral
Reserves, and for the overall regulatory compliance of these figures, is Brent
LaMoure, who gave his consent for the disclosure of the 2019 Mineral Resources and
Mineral Reserves Statement. Brent (B.Sc Mining Eng) is registered with the Mining
and Metallurgical Society of America (01363QP) and has 25 years’ experience
relative to the type and style of mineral deposit under consideration. For the US
projects Resource estimation, the competent persons are Stanford Foy (Altar and
Rio Grande) and Rodney N Thomas (Marathon). Stan is registered with the Society
for Mining, Metallurgy and Exploration Inc. (4140727RM) and has 28 years’
experience relative to the type and style of mineral deposit under consideration.
Rodney is registered with the Society for Professional Geoscientists (Ontario) and
has 40 years’ mineral industry experience, including several years relative to the
type and style of mineral deposit under consideration and is the designated
Qualified Person for Generation Mining Limited.
For the Southern African Platinum Operations, the lead competent person designated
in terms of the SAMREC Code, who takes responsibility for the consolidation and
reporting of the SA Platinum Operations Mineral Resources and Mineral Reserves,
and for the overall regulatory compliance of these figures, is Andrew Brown, who
gave his consent for the disclosure of the 2019 Mineral Resources and Mineral
Reserves Statement. Andrew (M.Sc Mining Eng) is registered with SAIMM (705060) and
has 36 years’ experience relative to the type and style of mineral deposit under
consideration.
For the Southern African Gold Operations, the lead competent person designated in
terms of the SAMREC Code, with responsibility for the consolidation and reporting
of the SA Gold Operations Mineral Resources and Mineral Reserves, and for overall
regulatory compliance of these figures, is Gerhard Janse van Vuuren, who gave his
consent for the disclosure of the 2019 Mineral Resources and Mineral Reserves
Statement. Gerhard (GDE (Mining Eng), MBA, MSCC and B. Tech (MRM)) is registered
with SAIMM (706705) and has 32 years’ experience relative to the type and style of
mineral deposit under consideration.
The 38.05% Attributable portion (as at 31 December 2019) of the DRDGOLD current
surface tailings operations including the ERGO and FWGR operations. For this
attributable portion of the DRD resources and reserves, the company was reliant on
external competent persons as follows: The Mineral Resources for the ERGO surface
operations is based on depletion (up to December 2019) and the Competent Person
designated in terms of SAMREC is Mr M Mudau, MSc Eng, Pr. Sci. Nat., the Resource
Geology Manager at the RVN Group. The Competent Person designated in terms of
SAMREC who takes responsibility for the reporting of the surface Mineral Reserves,
also based on depletion up to December 2019, is Professor S Rupprecht, Principal
Mining Engineer of the RVN Group. The Competent Person designated in terms of
SAMREC who takes responsibility for the reporting of the Mineral Reserves for the
Far West Gold Recoveries operation, also based on depletion up to December 2019,
is Mr Vaughn Duke of Sound Mining Proprietary Limited
Investor relations contact:
Email: ir@sibanyestillwater.com
James Wellsted
Head of Investor Relations
Tel: +27 (0) 83 453 4014
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
Ends.
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), and the Form F-4
filed by Sibanye Stillwater Limited with the Securities and Exchange Commission on 4 October 2019 (SEC File no.
333-234096) and any amendments thereto. 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 States, 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 legally
required).
Date: 18-02-2020 12:42:00
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