Wrap Text
Sibanye-Stillwater operating update for the six months and year ended 31 December
2017
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 operating update for the six months and year ended 31 December
2017
Johannesburg, 5 February 2018. Sibanye-Stillwater (Tickers: SGL (JSE) and SBGL
(NYSE)) is pleased to report positive operating results for the year ended 31
December 2017, with all the operations delivering solid results in the second half
of the year.
SA gold operations
Gold production for the year ended 31 December 2017 of 43,600kg (1.4Moz) was higher
than guidance (provided in the Q3 operating results) of between 42,000kg and 43,000
kg (1.35Moz and 1.38Moz), with gold production for the second half of the year 4%
higher than for the first half, despite the closure of the Cooke operations in
October 2017.
All-in sustaining cost (AISC) for the year is expected to be approximately
R483,000/kg (US$1,130/oz) which is better than guidance of between R485,000/kg and
R495,000/kg (US$1,115/oz and US$1,140/oz), due to increase in production in the
second half of the year, which resulted in AISC declining to approximately
R480,000/kg (US$1,130/oz), from R485,441/kg (US$1,143/oz) in the first half of the
year.
Total capital expenditure for the year was R3.4 billion (US$ 256 million).
SA PGM operations
The positive momentum at the SA PGM operations continued, with attributable PGM
production of about 1.19M 4Eoz for the year ended 31 December 2017, 4% higher than
the upper range of guidance of 1.15M 4Eoz with attributable PGM production for the
second half of the year of 603,635 4Eoz, 2% higher than for the first half. AISC is
expected to be approximately R10,300/4Eoz (US$775/4Eoz), which is lower than
guidance provided of between R10,500/4Eoz and R11,000/4Eoz (US$775/4Eoz and
US$815/4Eoz). AISC for the second half of the year is expected to be approximately
R10,300/4Eoz (US$770/4Eoz), 1% lower than the first half.
Total attributable capital expenditure for the year was R1.3 billion (US$95 million)
(and total capital expenditure, excluding Mimosa, was R1.0 billion (US$78 million)).
US PGM operations
The US PGM operations produced about 376,300 2Eoz for the eight month period since
acquisition by Sibanye-Stillwater, which was in line with guidance of between 350,000
(2Eoz) and 380,000 (2Eoz). Pleasingly, the US operations delivered record recycling
throughput for the year and, as previously disclosed, the Blitz project yielded
first PGM output in October 2017, ahead of schedule. AISC of approximately
US$650/2Eoz for the eight months is in line with guidance of between US$620/2Eoz and
US$650/2Eoz. PGM production for the six months ended 31 December 2017 was
approximately 282,600 2Eoz, at an AISC of US$660/2Eoz.
Total capital expenditure for the eight months ended 31 December 2017 was US$124
million.
Sibanye-Stillwater CEO, Neal Froneman commented: “This is positive set of operating
results, which, combined with the restructuring of the Cooke operations completed
in the fourth quarter of 2018, provides a solid base for deleveraging the Group in
2018.”
Note: All rand figures have been converted to US dollar using the average R/US$ exchange
rate for the year of 13.31, 13.21 for H1 2017 and 13.41 for H2 2017.
Results presentation on 22 February 2018
Sibanye-Stillwater will release its results for the six months and year ended 31
December 2017 on 22 February 2018 via a live presentation. For webcast and conference
call details on the day, please refer to the following link:
https://www.sibanyestillwater.com/investors/financial-reporting/operating-
financial-updates/2017.
Contact:
James Wellsted
Head of Investor Relations
+27 (0) 83 453 4014
email: ir@sibanyestillwater.com
Sponsor: J.P. Morgan Equities South Africa (Proprietary) Limited
FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” within the meaning
of the “safe harbour” provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be identified
by the use of words such as “target”, “will”, “forecast”, “expect”,
“potential”, “intend”, “estimate”, “anticipate”, “can” and other similar
expressions that predict or indicate future events or trends or that are not
statements of historical matters. The forward-looking statements set out in
this announcement involve a number of known and unknown risks, uncertainties
and other factors, many of which are difficult to predict and generally beyond
the control of Sibanye-Stillwater, that could cause Sibanye-Stillwater’s
actual results and outcomes to be materially different from historical results
or from any future results expressed or implied by such forward-looking
statements. These forward-looking statements speak only as of the date of
this announcement. Sibanye-Stillwater undertakes no obligation to update
publicly or release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this announcement or to
reflect the occurrence of unanticipated events, save as required by applicable
law.
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