Wrap Text
Marikana operations to provide processing capacity to offset Anglo Platinum Force Majeure
Sibanye Stillwater Limited
Incorporated in the Republic of South Africa
Registration number 2014/243852/06
Share code: SSW
ISIN – ZAE000259701
Issuer code: SSW
(“Sibanye-Stillwater” or “the Group” or “the Company”)
Marikana operations to provide processing capacity to offset Anglo Platinum Force
Majeure
Johannesburg, 17 March 2020: Further to the announcement on 6 March 2020,
regarding the temporary closure of Anglo American Platinum Limited’s (Anglo
Platinum) converter plant at its Rustenburg Platinum Mines (RPM) processing
facilities, which led to Anglo Platinum declaring Force Majeure (FM) for a period
of approximately 80 days, Sibanye-Stillwater has subsequently assessed how best
to utilise spare PGM processing capacity at the Marikana operations and at the
Precious Metal Refinery in Brakpan (Marikana processing facilities).
Sibanye-Stillwater is accordingly pleased to announce that it has reached
agreements in principle, with Anglo Platinum regarding processing of all PGM
containing material produced from its Rustenburg and Platinum Mile operations
and approximately half of the PGM containing material produced from the Kroondal
operations, at its Marikana processing facilities for at least the duration of
the FM period. Prior to the FM declaration, PGM bearing concentrate from
Rustenburg was smelted and refined by Anglo Platinum under a toll processing
agreement while Kroondal and Platinum Mile PGM concentrate was subject to a
Purchase of Concentrate (PoC) agreement.
The terms of the revised processing agreements currently being finalised with
Anglo Platinum at the different operations include:
1. The Rustenburg operations:
a. PGM concentrate from the Rustenburg operations will continue to be
smelted by Anglo Platinum on the same terms as the existing toll
arrangement for the smelter portion, but thereafter, the resultant
matte will be further processed and refined at the Marikana processing
facilities.
2. Platinum Mile
a. Platinum Mile concentrate will be sold to and processed by the Marikana
processing facilities for the duration of the FM period under the same
terms as the pre-existing PoC agreement with Anglo Platinum. All
benefits of the PoC agreement will accrue to Marikana.
3. The Kroondal operations
a. The Kroondal operations currently operate under a Pool and Share
Agreement (PSA) with Anglo Platinum with 50% of the profits
attributable to Sibanye-Stillwater shareholders and 50% of the profits
attributable to Anglo Platinum shareholders. For the duration of the
FM period, 50% of the concentrate produced from the Kroondal PSA
attributable to both parties will now be sold to and processed by the
Marikana processing facilities under the same terms as the pre-
existing PoC agreement with Anglo Platinum. All benefits of the PoC
agreement for the 50% concentrate treated by the Marikana processing
facilities will accrue to Marikana.
b. The remaining 50% of the concentrate produced from the Kroondal PSA
will continue to be sold to Anglo Platinum on materially the same
terms and conditions as the pre-existing PoC agreement (delays in
payment terms have been agreed).
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Furthermore, it has been agreed that concentrate in respect of Platinum Mile and
the Kroondal PSA delivered up to 9 March 2020 will be sold to RPM in accordance
with the pre-existing PoC agreements.
The additional material planned to be treated at the Marikana processing
facilities will have no impact on forecast production from the Marikana operation
which is unaffected by the FM event.
Discussions are ongoing with Anglo Platinum regarding the timing of delivery of
refined metals from toll material from the Rustenburg operations which was in
process prior to the FM declaration, and due to be delivered in March, April and
May. Further detail in this regard will be provided in due course.
Neal Froneman CEO of Sibanye Stillwater commenting on the agreements said: “We
welcome the finalisation of these arrangements with Anglo Platinum, which will
largely offset the impact of the FM event on the Sibanye-Stillwater operations
and result in a minimal impact on the production outlook for the SA PGM
operations. It is also pleasing to note the way our management team has optimised
available capacity at the Marikana processing facilities, allowing us to minimise
the potential impact on our contractual obligations to our customers and reducing
the supply disruption caused by the unanticipated FM event.”
Ends
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-Stillwater Limited’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 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;
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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).
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Date: 17-03-2020 11:00:00
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