Wrap Text
Operating update for the quarter ended 30 September 2019
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
LISTINGS
JSE: SGL
NYSE: SBGL
Johannesburg, 31 October 2019: Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater or the Group) (JSE: SGL &
NYSE: SBGL) is pleased to present an operating update for the quarter ended 30 September 2019. Financial results are only provided
on a six-monthly basis.
SALIENT FEATURES FOR THE QUARTER ENDED 30 SEPTEMBER 2019
- Record safety performance by the SA gold operations - over 430 consecutive fatality free days & eight million fatality free shifts
- two regrettable fatal incidents at the SA PGM operations (at Marikana) in Q3 2019
- Group adjusted EBITDA increased by 240% to R5.5 billion (US$377 million)
- The SA PGM operations contributed R2.9 billion (53%), the US PGM operations R1.8 billion (32%) and the SA gold operations
R843 million (15%)
- Outlook for precious metals prices remains constructive - prices continued to strengthen in Q4 2019 to date
- Deleveraging on track - net debt: adjusted EBITDA of 1.7x at end Q3 2019, down from 2.5x at end H1 2019
- Integration of Marikana operation progressing well
- Operational review complete and set for implementation of revised operational plan in 2020
US dollar SA rand
Quarter ended Quarter ended
Sep 2018 Jun 2019 Sep 2019 KEY STATISTICS Sep 2019 Jun 2019 Sep 2018
UNITED STATES (US) OPERATIONS
PGM operations(1)
139,178 153,874 147,353 oz 2E PGM(2) production kg 4,583 4,786 4,329
144,585 220,161 202,141 oz PGM recycling(1) kg 6,287 6,848 4,497
896 1,267 1,388 US$/2Eoz Average basket price R/2Eoz 20,362 18,232 12,592
49.1 103.8 123.4 US$m Adjusted EBITDA(3) Rm 1,810.0 1,493.3 690.2
21 25 27 % Adjusted EBITDA margin(3) % 27 25 21
769 720 791 US$/2Eoz All-in sustaining cost(4) R/2Eoz 11,603 10,365 10,789
SOUTHERN AFRICA (SA) OPERATIONS
PGM operations(5)
305,227 364,483 518,623 oz 4E PGM(2) production kg 16,131 11,337 9,494
1,000 1,218 1,385 US$/4Eoz Average basket price R/4Eoz 20,316 17,533 14,049
49.5 82.1 199.7 US$m Adjusted EBITDA(3) Rm 2,930.3 1,180.9 695.5
18 26 25 % Adjusted EBITDA margin(3) % 25 26 18
771 987 1,104 US$/4Eoz All-in sustaining cost(4) R/4Eoz 16,190 14,204 10,834
Gold operations(5)
308,922 201,456 287,330 oz Gold production kg 8,937 6,266 9,609
1,205 1,307 1,451 US$/oz Average gold price R/kg 684,172 604,542 544,542
17.3 (89.9) 57.4 US$m Adjusted EBITDA(3) Rm 842.6 (1,293.5) 243.1
5 (38) 14 % Adjusted EBITDA margin(3) % 14 (38) 5
1,290 1,803 1,386 US$/oz All-in sustaining cost(4) R/kg 653,666 834,216 582,809
GROUP
115.9 87.7 377.4 US$m Adjusted EBITDA(6) Rm 5,536.1 1,261.5 1,628.8
14.05 14.39 14.67 R/US$ Average exchange rate
(1) The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated to SA rand.
In addition to the US PGM operations' underground production, the operation treats 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
(2) Platinum Group Metals (PGM) production in the SA operations (including attributable production from Mimosa) is principally platinum,
palladium, rhodium and gold, referred to as 4E (3PGM+Au). The US operations primarily produce palladium and platinum, referred to as 2E (2PGM)
(3) 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 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
(4) See "salient features and cost benchmarks for the quarters" for the definition of All-in sustaining cost
(5) The SA PGM operations' results for the quarter ended 30 June 2019 included the Marikana operation for the one month since acquisition and
the SA gold operations' results for the quarter ended 30 September 2018 included DRDGOLD Limited for the two months since acquisition
(6) The Group adjusted EBITDA includes the impact of the streaming transaction which are only recognised at the Corporate level
Stock data for the six months ended 30 September 2019 JSE Limited - (SGL)
Number of shares in issue Price range per ordinary share R15.60 to R21.59
- at 30 September 2019 2,670,029,252 Average daily volume 18,415,258
- weighted average 2,670,029,252 NYSE - (SBGL); one ADR represents four ordinary shares
Free Float 81% Price range per ADR US$4.45 to US$5.65
Bloomberg/Reuters SGLS/SGLJ.J Average daily volume 4,082,745
OVERVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2019 COMPARED TO QUARTER ENDED 30 SEPTEMBER 2018
The Group operating performance for the quarter ended 30 September 2019 (Q3 2019) signals a pleasing recovery in the operating
and financial performance of the Group, after a difficult eighteen-month period. Most pleasing has been the way our SA gold
operations have re-established and improved on what was an industry leading safety record prior to H1 2018, despite the additional
challenges posed by the five-month strike, which ended in April 2019. Also encouraging is the strong operating performance from
our SA PGM operations, which has been sustained, even as the integration of the Marikana operation has continued. Despite some
setbacks, the recovery plans at our SA gold and US PGM operations have also advanced, with all the operations benefitting from
higher precious metals prices and recording significantly improved financial results.
With precious metals prices rising further into Q4 2019 and further enhancement of our safe production delivery, the outlook for the
remainder of the year remains positive. Should this momentum continue as expected, the Group will be on track to achieve its
leverage target of 1x net debt: adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) and potentially
resume dividend payments in the latter half of 2020.
SAFE PRODUCTION
Q3 2019 marked the fourth consecutive fatality free quarter for the SA gold operations. On 18 October 2019, these operations
achieved eight million fatality free shifts (on 29 October it had 430 consecutive days without fatalities), an achievement which is
historically unparalleled in the deep level South African gold mining industry. We continue to promote meaningful engagement with
all of our stakeholders, as part of the safety improvement journey and in the development of the required safety culture. On
25 October 2019, the SA gold operations have been recognised as the 'Best underground safety performer' and awarded the JT Ryan
Award at the SAMI Safety and health excellence awards.
Sadly, two fatal incidents at the recently acquired Marikana operation tarnished a fatality free quarter at all other areas of our
business. On 28 August 2019, Mr. S. Bhani, a load haul dump (LHD) operator at Hossy shaft, tragically lost his life when he was caught
between the LHD door and the cabin frame while disembarking from the LHD without turning it off. On 16 September 2019, Mr. Z. Booi,
a Team Leader at the Saffy shaft, was caught between a derailing hopper and the sidewall during cleaning operations. Utilising
the Incident Cause Analysis Method (ICAM) process, investigations into these incidents were conducted and action plans were
devised to address and prevent any re-occurrence. The Board and management extend heartfelt condolences to the family and
friends of our deceased colleagues.
Positively, the Kroondal operation has achieved 19 months without any fatalities, recording 3.5 million fatality free shifts as at the
end of September 2019.
There was also a notable improvement in the safety performance of the US PGM operations for the quarter. A year-to-date total
reportable injury frequency rate (TRIFR) of 13.1 (measured per million hours) was significantly better than for the comparable period
in 2018 (15.5). The US PGM operations remain focussed on delivering further safety improvements by year-end.
ADJUSTED EBITDA AND GEARING
Group adjusted EBITDA of R5.5 billion (US$377 million) for Q3 2019, represents a 240% increase (up 226% in US dollar terms) from the
R1.6 billion (US$116 million) adjusted EBITDA generated in Q3 2018. The SA PGM operations contributed 53% of the total Group
adjusted EBITDA, the US PGM operations 32% and the SA gold operations made a positive 15% contribution.
The strong Q3 2019 financial performance has accelerated our deleveraging, with net debt: adjusted EBITDA of 1.7x at 30 September 2019
(as calculated in terms of the debt facilities) significantly improved relative to net debt: adjusted EBITDA of 2.5x recorded at
30 June 2019, and remaining well below the 2019 covenant ceiling of 3.5x. Should current spot precious metals prices persist during
Q4 2019, the Group will be on track to surpass the year-end leverage target of 1.8x.
As announced on 25 October 2019, the Rand Revolving credit facility (RCF), which was due to mature in November 2019, has been
successfully refinanced on similar terms, improving liquidity and resolving any near-term financing risk. The new Rand RCF which is
due in 2022, has an initial facility value of R5.5 billion, but includes a R2 billion accordion option, which allows for an option to upsize
to R7.5 billion and to extend the tenor through two further one-year extensions in the future.
OPERATING REVIEW
US PGM operations
Mined 2E PGM production from the US PGM operations increased by 6% to 147,353 2Eoz compared to 139,178 2Eoz in Q3 2018.
The challenging geotechnical conditions experienced in H1 2019, continued to restrict stope access and negatively impact
productivity during the quarter. The adoption of special ground control measures temporarily impaired advance rates and resulted
in reduced stope flexibility. Concentrated development activities on the ramp system in the Blitz project area also resulted in diesel
particulate matter (DPM) emissions beyond the capabilities of installed ventilation in certain development areas, which further
impacted output. Under these circumstances, it is critical to operate with every step being taken to safely maintain the production
ramp up at the Stillwater mine.
Both the ground control and DPM issues have been appropriately addressed. East Boulder is performing steadily with the Fill the Mill
(FTM) project on track to deliver the scheduled production build up. Although these operational challenges have affected
production for 2019, the impact is expected to be temporary, with the long-term trajectory of the Blitz production ramp up
unchanged.
The average 2E PGM basket price for the quarter increased by 55% to US$1,388/oz compared with the same period in 2018, which,
in addition to higher volumes, resulted in adjusted EBITDA (including recycling) increasing from US$49 million in Q3 2018 to
US$123 million in Q3 2019 (a 151% increase or 162% increase in rand terms to R1.8 billion).
Whilst total operating costs and capital expenditures in absolute terms were in line with expectations, unit costs remained elevated
due to relative under delivery of production during the period. AISC is further affected by increased tax and revenue royalties
resulting from higher PGM prices, with AISC increasing by approximately US$5/2Eoz for every US$100/2Eoz increase in the 2E PGM
basket price. AISC increased by 3% year-on-year from US$769/oz for Q3 2018 to US$794/oz for Q3 2019.
The Columbus metallurgical complex performed solidly, processing 158,383 of 2Eoz of mined material and 202,141 3Eoz of recycle
material during the quarter, a 20% increase compared to Q3 2018.
The recycling operation fed an average of 25.3 tonnes of material per day (tpd) in Q3 2019, a 38% increase compared to Q3 2018,
further drawing down excess inventory which had accumulated during 2018.
Capital expenditure for the quarter amounted to US$60 million, including expansion capital at Blitz and FTM. US$24 million was
incurred on sustaining capital and ore reserve development.
SA PGM operations
The SA PGM operations (including a full quarter contribution from the Marikana operation) delivered consistently pleasing operating
results. The 70% increase in PGM production to 518,623 4Eoz primarily reflects the consolidation of the Marikana operation for the full
quarter and a further 3% production increase from the Kroondal operation, partly offset by lower production from the Rustenburg,
Mimosa and Platinum mile operations.
The significant gearing of the SA PGM operations is evident in the 321% increase in adjusted EBITDA, which increased from R696 million
in Q3 2018 to R2.9 billion in Q3 2019, primarily driven by a 45% increase in the average 4E PGM basket price to R20,316/4Eoz.
Furthermore, attributable adjusted EBITDA from Mimosa of approximately US$12 million (R171 million) compared favourably with the
US$8 million (R111 million) for Q3 2018 and is not included in Group adjusted EBITDA as it is equity accounted.
Average AISC for the SA PGM operations of R16,190/oz (US$1,104/oz) for Q3 2019 are not directly comparable with the same period
in 2018, due to the inclusion of the Marikana operations for a full quarter and the transition from a purchase of concentrate (PoC) to
a toll processing agreement at the Rustenburg operation, as well as the consequential lower than planned production delivery . The
planned realisation of synergies and cost savings at the Marikana operations is expected to result in reduced AISC for the SA PGM
operations from H1 2020.
Chrome production (excluding the Marikana operation) was 243,000 tonnes (155,000 tonnes at Rustenburg and 88,000 tonnes at
Kroondal) a 19% improvement from Q3 2018, however volumes sold for the quarter were lower than for Q3 2018 by 8.5%, due to the
timing of sales, which together with a lower average chrome price of US$147/tonne for Q3 2019 (US$169/tonne for Q3 2018),
negatively impacted on by-product credits. In addition, the Reflux Classifier was scheduled to deliver 10,000 tonnes chrome per
month from June 2019, unfortunately the commissioning was delayed until November 2019. The team is focussing on achieving the
planned efficiency by end Q4 2019. The Marikana operation produced 460,218 tonnes of chrome during Q3 2019.
The integration of the Marikana operation is proceeding as planned. Following a three-month review of the operations, stakeholders
were notified on 25 September 2019 that consultation in terms of Section 189A (Section 189) of the Labour Relations Act, 66 of 1995
(LRA and associated services) (S189) would commence. While the review process concluded that the affected shafts, most of which
were at the end of their operating lives were at risk, other shafts which had previously been at risk, such as 4B shaft, K3 mining into
Siphumelele ground, Rowland mining into MK2 ground as well as K4 concentrator, will continue to operate, thereby reducing initially
(12,500 as communicated by Lonmin before) anticipated job losses. Overall, the outcome will be a more sustainable business which
will enhance the security of employment for the majority of the Marikana workforce for a much longer period. The six-month
moratorium on forced retrenchments imposed by the Competition Commission Appeal Court will lapse on 7 December 2019.
The Section 189 is only one component of the integration process which enables consolidation synergies to be unlocked. Further
updates on the progress of the integration as well as the 2020 plans are scheduled to be shared as part of the 2019 year end results,
scheduled to be released on 19 February 2020.
SA PGM wage negotiations
Wage negotiations for the Rustenburg and Marikana operations are continuing according to due process. A dispute was declared
by the organised labour and was referred to the Commission for Conciliation, Mediation and Arbitration (CCMA). To date, two
sessions for both Rustenburg and Marikana have been facilitated by the CCMA commissioner. The Company continues to engage
constructively with organised labour in an attempt to conclude a fair and sustainable wage agreement.
SA gold operations
The build-up to full production (adjusted for the impact of the closure of Beatrix 1, Driefontein 2, 6 and 7 shafts post the Section 189
process which was concluded in June 2019) at the SA gold operations, following the conclusion of the five-month AMCU strike in
April 2019, has proceeded at a measured pace. Production has largely normalised, although an underground fire at Kloof 4 shaft,
most likely related to illegal mining activities, and elevated levels of seismic activity following the resumption of safe production, has
resulted in the temporary unavailability of some high grade panels (a few panels are permanently unavailable) and continued to
constrain the Kloof operation. The Beatrix operation has recovered well, with production only 8% below that achieved for Q3 2018
and AISC of R552,679/kg (US$1,172/oz) in line with expectations. Quarter on quarter, gold production (excluding DRDGOLD)
increased by 1,408kg (45,268oz) to 7,444kg (239,329oz).
Ongoing stabilisation of the operations during the quarter, coupled with a 26% increase in the average realised rand gold price to
R683,500/kg (a 20% increase in US$/oz price at US$1,449/oz) for Q3 2019, has resulted in a significant turnaround in the financial results
of the SA gold operations.
Production from DRDGOLD of 1,493kg (48,001oz) was approximately 6% higher than for the Q2 2019 and close to double what was
consolidated in Q3 2018. AISC of R509,868/kg (US$1,081/oz) was 2% lower than for Q2 2019 and 10% lower than for Q3 2018 primarily
due to the increase in production. The adjusted EBITDA contribution from DRDGOLD increased by 113% quarter-on-quarter, from
R153 million for Q2 2019 to R326 million for Q3 2019.
Adjusted EBITDA from the SA gold operations (including DRDGOLD) for Q3 2019 increased by 247% to R843 million (US$57 million)
compared to R243 million (US$17 million) for Q3 2018 and a R1.3 billion adjusted EBITDA loss for Q2 2019. These operations are
significantly geared to the spot rand gold price and this financial recovery will be further enhanced if current spot rand gold price
levels persist and as the operations continue to stabilise.
CORPORATE ACTION
Internal restructuring process, creating a new holding company and listings for the Group
On 4 October 2019, the Group announced an internal restructuring which is proposed to create a more efficient corporate structure
and to facilitate the Group's growth strategy. In order to create a corporate structure whereby the gold and PGM portfolios are
each held within their own distinct legal entities, a new Group holding company, Sibanye Stillwater Limited, will be listed, with the
same shareholders and the same shares in Sibanye Stillwater Limited being issued to existing Sibanye Gold Limited shareholders. This
will be done by way of a scheme of arrangement ("Scheme") in terms of section 114 of the South African Companies Act, 2008. The
Scheme will therefore result in Sibanye Gold Limited, which houses the SA gold operations, becoming a subsidiary of Sibanye Stillwater
Limited. The Scheme will require shareholder approval and is expected to be completed in Q1 2020. More information is
available at https://www.sibanyestillwater.com/news-investors/news/holding-entity-change/.
Delaware Court of Chancery rules in favour of Sibanye-Stillwater in dissenting shareholder action
The Court of Chancery of the State of Delaware in the United States of America (the Court), in a Memorandum Opinion dated
21 August 2019, has ruled in favour of the Company in the appraisal action brought by a group of minority shareholders (the Dissenting
shareholders) of the Stillwater Mining Company (Stillwater), following the acquisition of Stillwater by the Company in May 2017 for a
cash consideration of US$18 per Stillwater share.
In terms of the ruling, the Dissenting shareholders (together owning approximately 4.5% of Stillwater shares outstanding at the time)
received the same US$18 per share consideration originally offered to, and accepted by other Stillwater shareholders, plus interest.
The remaining payment of approximately US$21 million due to the Dissenting shareholders has been paid by Sibanye-Stillwater.
Certain of the Dissenting shareholders have filed a notice of appeal in the Supreme Court of the State of Delaware. The Company
will continue to defend itself against opportunistic, short-term and self-interested legal action, to protect the interests of our
stakeholders.
OUTLOOK
Due to the challenging ground conditions at Blitz and the fall of grounds stoppages experienced year-to-date, mined production
for 2019 from the US PGM operations is forecast between 590,000 - 610,000 2Eoz. As a result of this reduced mined output forecast,
coupled with higher taxes and royalties associated with the noted increase in the US$ 2E PGM basket price, AISC is forecast to be
between approximately US$755 - US$770/2Eoz. Capital expenditure is expected to be at the low end of the previous guidance
range of US$235 million to US$245 million.
PGM production guidance from the SA PGM operations (excluding the Marikana operation) remains unchanged between
1,000,000oz to 1,100,000oz and AISC within annual cost guidance of between R12,500/4Eoz and R13,200/4Eoz. (US$922/4Eoz and
US$974/4Eoz). Capital expenditure is forecast at R1,400 million (US$103 million). Marikana is expected to produce between 450,000
and 490,000 4E ounces for the seven months since acquisition, with an AISC range between R18,700/4Eoz and R20,056/4Eoz
(US$1,380/4Eoz and US$1,480/4Eoz). Capital expenditure is forecast at R1,108million (US$82 million).
Due to operational constraints at the Driefontein and Kloof operations following the production build-up, production for H2 2019 from
the SA gold operations (excluding DRDGOLD) is expected to be towards the lower end of guidance of 16,000kg (514,411oz) with
AISC at the higher end of guidance of R630,000/kg (US$1450/oz) for H2 2019. Annual production for 2019 is likewise, forecast at the
lower end of guidance of 24,000kg (771,617oz). AISC for the full year is forecast at the upper end of guidance of R750,000/kg
(US$1,725/oz). Capital expenditure for the SA gold operations for 2019 is forecast to be slightly lower than the guided R2,350 million
(US$173 million), which includes approximately R220 million (US$16 million) of project capital. Approximately R1,900 million (US$140
million) of this capital expenditure has been scheduled for H2 2019.
The H2 2019 and annual dollar guidance is based on an average exchange rate of R13.55/US$.
NEAL FRONEMAN
CHIEF EXECUTIVE OFFICER
SALIENT FEATURES AND COST BENCHMARKS FOR THE QUARTERS ENDED 30 SEPTEMBER 2019, 30 JUNE 2019 AND 30 SEPTEMBER 2018
SA and US PGM operations
US OPERATIONS SA OPERATIONS
Total SA
and US Total US
PGM PGM Plat
operations Stillwater Total SA PGM Rustenburg Marikana(2) Kroondal Mile Mimosa
Attributable Under - Under- Under- Under-
ground(1) Total ground Surface ground Surface ground Surface Attributable Surface Attributable
Production
Tonnes milled/treated 000't Sep 2019 9,936 345 9,591 5,402 4,189 1,848 1,161 2,227 925 1,032 2,103 295
Jun 2019 8,052 353 7,699 4,068 3,631 1,782 1,074 780 302 1,141 2,255 365
Sep 2018 7,094 326 6,768 3,288 3,479 1,936 1,593 - - 1,001 1,887 351
Plant head grade g/t Sep 2019 2.71 14.54 2.28 3.34 0.92 3.47 1.24 3.60 0.90 2.46 0.75 3.59
Jun 2019 2.65 14.81 2.10 3.19 0.87 3.39 1.18 3.61 0.87 2.47 0.72 3.59
Sep 2018 2.59 14.55 2.01 3.22 0.87 3.57 1.10 - - 2.45 0.68 3.54
Plant recoveries % Sep 2019 76.93 91.10 73.77 83.04 29.79 81.04 29.01 85.91 24.50 82.91 8.22 75.37
Jun 2019 75.56 91.03 70.12 82.44 20.23 82.15 28.41 87.10 25.60 81.46 13.12 74.98
Sep 2018 75.30 89.21 69.59 83.18 22.18 84.53 29.77 - - 82.41 11.78 77.19
Yield g/t Sep 2019 2.08 13.25 1.68 2.77 0.27 2.81 0.36 3.09 0.22 2.04 0.06 2.71
Jun 2019 2.00 13.56 1.47 2.63 0.18 2.79 0.33 3.14 0.22 2.02 0.09 2.69
Sep 2018 1.95 13.28 1.40 2.68 0.19 3.01 0.33 - - 2.02 0.08 2.73
PGM production(3) 4Eoz - 2Eoz Sep 2019 665,976 147,353 518,623 481,715 36,908 166,882 13,387 221,635 19,375 67,600 4,146 25,598
Jun 2019 518,357 153,874 364,483 343,936 20,547 159,624 11,543 78,817 2,140 73,958 6,864 31,537
Sep 2018 444,405 139,178 305,227 283,564 21,662 187,663 16,811 - - 65,047 4,851 30,855
PGM sold 4Eoz - 2Eoz Sep 2019 684,771 140,201 544,570 529,538 15,032 156,974 10,886 279,366 67,600 4,146 25,598
Jun 2019 416,811 143,668 273,143 257,329 15,814 85,371 8,950 66,463 73,958 6,864 31,537
Sep 2018 412,800 107,573 305,227 283,564 21,662 187,663 16,811 - 65,047 4,851 30,855
Price and costs(4)
Average PGM basket price(5) R/4Eoz - R/2Eoz Sep 2019 20,314 20,362 20,316 20,405 17,314 20,337 17,016 20,287 21,053 18,098 19,326
Jun 2019 17,754 18,232 17,533 17,653 15,697 17,382 14,877 17,955 17,918 16,371 16,943
Sep 2018 13,559 12,592 14,049 14,110 13,333 13,994 13,167 - 14,446 13,907 13,532
US$/4Eoz - US$/2Eoz Sep 2019 1,385 1,388 1,385 1,391 1,180 1,386 1,160 1,383 1,435 1,234 1,317
Jun 2019 1,234 1,267 1,218 1,227 1,091 1,208 1,034 1,264 1,245 1,138 1,177
Sep 2018 971 896 1,000 1,004 949 996 937 - 1,028 990 963
Operating cost(6) R/t Sep 2019 937 4,381 809 1,395 94 1,321 290 1,250 721 27 1,075
Jun 2019 814 3,952 663 1,161 80 1,322 217 1,381 633 25 973
Sep 2018 662 3,799 503 1,008 76 1,172 138 - 693 23 924
US$/t Sep 2019 64 299 55 95 6 90 20 85 49 2 73
Jun 2019 57 275 46 81 6 92 15 97 44 2 68
Sep 2018 47 270 36 72 5 83 10 - 49 2 66
R/4Eoz - R/2Eoz Sep 2019 14,101 10,258 15,249 15,619 10,675 14,632 25,188 16,342 11,003 13,700 12,384
Jun 2019 12,853 9,067 14,603 13,757 14,099 14,756 20,202 18,462 9,765 8,231 11,257
Sep 2018 10,798 8,914 11,753 11,720 12,141 12,086 13,110 - 10,665 8,782 10,514
US$/4Eoz - US$/2Eoz Sep 2019 961 699 1,039 1,065 728 997 1,717 1,114 750 934 844
Jun 2019 893 630 1,015 956 980 1,025 1,404 1,300 679 572 782
Sep 2018 768 634 836 834 864 860 933 - 759 625 748
All-in sustaining cost(7) R/4Eoz - R/2Eoz Sep 2019 15,134 11,603 16,190 15,844 17,955 10,877 15,195 13,267
Jun 2019 12,990 10,365 14,204 15,091 16,930 9,715 8,275 11,773
Sep 2018 10,819 10,789 10,834 11,114 - 10,131 8,472 9,559
US$/4Eoz - US$/2Eoz Sep 2019 1,032 791 1,104 1,080 1,224 741 1,036 904
Jun 2019 903 720 987 1,049 1,192 675 575 818
Sep 2018 770 769 771 791 - 721 603 680
All-in cost(7) R/4Eoz - R/2Eoz Sep 2019 15,963 15,195 16,192 15,844 17,957 10,877 15,412 13,267
Jun 2019 14,092 13,842 14,208 15,091 16,939 9,715 8,392 11,773
Sep 2018 11,751 13,428 10,901 11,114 - 10,131 12,245 9,559
US$/4Eoz - US$/2Eoz Sep 2019 1,088 1,036 1,104 1,080 1,224 741 1,051 904
Jun 2019 979 962 987 1,049 1,193 675 583 818
Sep 2018 836 956 776 791 - 721 871 680
Capital expenditure(8)
Ore reserve development Rm Sep 2019 677.4 235.1 442.3 135.9 306.4 - - -
Jun 2019 404.0 273.8 130.2 130.2 - - - -
Sep 2018 384.7 253.3 131.4 131.4 - - - -
Sustaining capital Sep 2019 537.4 116.0 421.4 91.9 269.9 57.0 2.6 72.9
Jun 2019 289.1 37.2 251.9 100.8 95.4 51.3 4.4 93.1
Sep 2018 186.9 85.3 101.6 68.4 - 31.9 1.3 49.2
Corporate and projects(8) Sep 2019 531.6 530.5 1.1 - 0.2 - 0.9 -
Jun 2019 536.6 535.1 1.5 - 0.7 - 0.8 -
Sep 2018 385.6 367.3 18.3 - - - 18.3 -
Total capital expenditure Rm Sep 2019 1,746.3 881.6 864.7 227.8 576.5 57.0 3.4 72.9
Jun 2019 1,229.6 846.0 383.6 231.0 96.1 51.3 5.2 93.1
Sep 2018 957.2 705.9 251.3 199.7 - 31.9 19.7 49.2
US$m Sep 2019 119.0 60.1 58.9 15.5 39.3 3.9 0.2 5.0
Jun 2019 85.5 58.8 26.7 16.1 6.7 3.6 0.4 6.5
Sep 2018 68.1 50.2 17.9 14.2 - 2.3 1.4 3.5
Average exchange rates for the quarters ended 30 September 2019, 30 June 2019 and 30 September 2018 were R14.67/US$, R14.39/US$ 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 performance is translated into SA rand. In addition to the US PGM operations' underground
production, the operation treats various recycling material which is excluded from the statistics shown above and is detailed in the PGM recycling table below
(2) The Marikana PGM operations' results for the quarter ended 30 June 2019 are for one month since acquisition. The results for the quarter ended 30 September 2019 includes purchase
of concentrate ounces
(3) Production per product - see prill split in the table below
(4) The Group and total SA PGM operations' unit cost benchmarks and capital exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of
sales
(5) The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment
(6) 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 ounce (and kilogram) is calculated by dividing the cost of sales, before amortisation and depreciation and change
in inventory in a period by the PGM produced in the same period
(7) All-in cost exclude 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 are made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in costs 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 produced in the same period
The US operations All-in-cost, excluding the corporate project expenditure (on the Altar and Marathon projects), for the quarters ended 30 September 2019, 30 June 2019 and
30 September 2018 was US$1,036/2Eoz, US$962/2Eoz and US$951/2Eoz, respectively
(8) The US operations corporate expenditure for the quarters ended 30 September 2019, 30 June 2019 and 30 September 2018 was R0.8 million (US$0.1 million), R2.2 million (US$0.2 million)
and R8.9 million (US$0.6 million), respectively, which related to the Altar and Marathon projects
Mining - Prill split excuding recycling operations
GROUP SA OPERATIONS US OPERATIONS
Sep 2019 Jun 2019 Sep 2018 Sep 2019 Jun 2019 Sep 2018 Sep 2019 Jun 2019 Sep 2018
% % % % % % % % %
Platinum 340,943 51% 248,480 48% 209,594 47% 307,777 59% 213,849 58% 177,728 58% 33,166 23% 34,631 23% 31,866 23%
Palladium 270,059 41% 230,976 45% 201,936 45% 155,872 30% 111,733 31% 94,624 31% 114,187 77% 119,243 77% 107,312 77%
Rhodium 46,079 7% 31,847 6% 25,828 6% 46,079 9% 31,847 9% 25,828 9%
Gold 8,895 1% 7,054 1% 7,047 2% 8,895 2% 7,054 2% 7,047 2%
PGM production 4E/2E 665,976 100% 518,357 100% 444,405 100% 518,623 100% 364,483 100% 305,227 100% 147,353 100% 153,874 100% 139,178 100%
Ruthenium 74,264 50,811 41,001 74,264 50,811 41,001
Iridium 18,731 12,287 9,470 18,731 12,287 9,470
Total 6E/2E 758,971 581,455 494,876 611,618 427,581 355,698 147,353 153,874 139,178
Recycling operation
Unit Sep 2019 Jun 2019 Sep 2018
Average catalyst fed/day Tonne 25.3 27.0 18.4
Total processed Tonne 2,327 2,457 1,696
Tolled Tonne 354 576 188
Purchased Tonne 1,973 1,881 1,508
PGM fed 3Eoz 202,141 220,161 144,585
PGM sold 3Eoz 178,685 172,020 126,744
PGM tolled returned 3Eoz 49,317 32,584 40,475
SA gold operations
SA OPERATIONS
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 Sep 2019 10,907 1,446 9,461 376 - 485 1,286 558 72 27 948 7,155
Jun 2019 10,514 834 9,680 136 - 314 1,625 362 273 22 1,021 6,761
Sep 2018 8,515 1,534 6,981 402 180 471 1,437 629 94 32 1,121 4,149
Yield g/t Sep 2019 0.82 4.65 0.23 5.51 - 5.33 0.29 3.69 0.57 0.44 0.32 0.21
Jun 2019 0.60 4.69 0.24 4.40 - 6.95 0.34 3.10 0.29 0.45 0.29 0.21
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 Sep 2019 8,937 6,730 2,207 2,072 - 2,587 373 2,059 41 12 300 1,493
Jun 2019 6,266 3,913 2,353 599 - 2,182 558 1,122 80 10 300 1,415
Sep 2018 9,609 7,752 1,857 2,162 110 3,338 607 2,222 32 30 351 757
oz Sep 2019 287,330 216,374 70,956 66,616 - 83,174 11,992 66,198 1,318 386 9,645 48,001
Jun 2019 201,456 125,806 75,650 19,258 - 70,153 17,940 36,073 2,572 322 9,645 45,493
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 Sep 2019 8,510 6,295 2,215 1,856 - 2,485 412 1,943 35 11 258 1,510
Jun 2019 5,702 3,380 2,322 419 - 2,023 527 929 111 9 275 1,409
Sep 2018 9,585 7,752 1,833 2,162 110 3,338 607 2,222 32 30 351 733
oz Sep 2019 273,604 202,390 71,214 59,672 - 79,895 13,246 62,469 1,125 354 8,295 48,548
Jun 2019 183,322 108,669 74,653 13,471 - 65,041 16,943 29,868 3,569 289 8,841 45,300
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 Sep 2019 684,172 651,940 663,583 660,971 683,643 697,483
Jun 2019 604,542 582,100 598,706 596,635 601,408 604,400
Sep 2018 544,542 550,528 545,856 543,301 549,606 553,003
US$/oz Sep 2019 1,451 1,382 1,407 1,401 1,449 1,479
Jun 2019 1,307 1,258 1,294 1,290 1,300 1,306
Sep 2018 1,205 1,218 1,208 1,202 1,216 1,224
Operating cost(2) R/t Sep 2019 463 2,686 123 3,499 - 3,221 216 1,793 131 200 165 101
Jun 2019 449 4,188 127 8,482 - 4,553 191 2,495 211 291 140 106
Sep 2018 561 2,515 132 3,585 326 2,963 209 1,622 109 47 144 94
US$/t Sep 2019 32 183 8 239 - 220 15 122 9 14 11 7
Jun 2019 31 291 9 589 - 316 13 173 15 20 10 7
Sep 2018 40 179 9 255 23 211 15 115 8 3 10 7
R/kg Sep 2019 564,709 577,043 527,096 634,990 - 603,788 746,113 485,867 229,268 450,000 522,333 483,255
Jun 2019 753,734 892,563 522,864 1,925,876 - 655,133 555,735 804,902 721,250 640,000 476,667 505,583
Sep 2018 497,425 497,730 496,153 666,559 533,636 418,065 495,222 459,136 318,750 53,333 458,689 516,651
US$/oz Sep 2019 1,197 1,223 1,118 1,346 - 1,280 1,582 1,030 486 954 1,107 1,025
Jun 2019 1,629 1,929 1,130 4,163 - 1,416 1,201 1,740 1,559 1,383 1,030 1,093
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 Sep 2019 653,666 777,532 726,096 552,679 565,056 509,868
Jun 2019 834,216 2,743,914 702,392 894,135 533,803 520,156
Sep 2018 582,809 785,871 509,303 528,882 484,777 564,161
US$/oz Sep 2019 1,386 1,649 1,539 1,172 1,198 1,081
Jun 2019 1,803 5,931 1,518 1,933 1,154 1,124
Sep 2018 1,290 1,739 1,127 1,171 1,073 1,249
All-in cost(3) R/kg Sep 2019 671,293 777,532 738,971 552,932 565,056 517,285
Jun 2019 856,436 2,743,914 713,569 894,423 533,803 531,867
Sep 2018 609,794 785,915 516,755 528,882 484,777 720,775
US$/oz Sep 2019 1,423 1,649 1,567 1,172 1,198 1,097
Jun 2019 1,851 5,931 1,542 1,933 1,154 1,150
Sep 2018 1,350 1,739 1,144 1,171 1,073 1,596
Capital expenditure
Ore reserve
development Rm Sep 2019 560.3 216.8 251.1 92.4 - -
Jun 2019 245.1 80.0 123.5 41.6 - -
Sep 2018 591.3 232.3 242.6 116.4 - -
Sustaining capital Sep 2019 143.1 65.3 55.8 16.5 - 5.5
Jun 2019 42.7 12.0 13.2 10.4 - 7.1
Sep 2018 143.3 47.4 64.8 26.6 - 4.5
Corporate and projects(4) Sep 2019 75.7 - 37.3 0.5 - 11.2
Jun 2019 61.3 - 28.5 0.3 - 16.5
Sep 2018 144.3 0.1 29.4 - - 114.8
Total capital expenditure Rm Sep 2019 779.0 282.0 344.1 109.5 - 16.7
Jun 2019 349.1 92.0 165.2 52.3 - 23.6
Sep 2018 879.0 279.8 336.9 143.0 - 119.3
US$m Sep 2019 53.1 19.2 23.5 7.5 - 1.1
Jun 2019 24.3 6.4 11.5 3.6 - 1.6
Sep 2018 62.6 19.9 24.0 10.2 - 8.5
Average exchange rates for the quarters ended 30 September 2019, 30 June 2019 and 30 September 2018 were R14.67/US, R14.39/US$ 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 included DRDGOLD Limited for the two months since acquisition
(2) Operating cost is the average cost of production and operating cost per tonne is 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 costs 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) is calculated by dividing the
All-in sustaining cost and All-in cos, respectively, in a period by the total gold sold over the same period
(4) Corporate project expenditure for the quarters ended 30 September 2019, 30 June 2019 and 30 September 2018 was R26.7 (US$1.8 million), R15.9 million (US$1.1 million) and
R31.2 million (US$2.2 million), respectively. The majority of this expenditure was on 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.
US PGM operations Sep 2019 quarter Jun 2019 quarter Nine months ended 30 Sep 2019
Stillwater East Stillwater East Stillwater East
Reef incl Blitz Boulder incl Blitz Boulder incl Blitz Boulder
Stillwater Unit
Primary
development (off reef) (m) 2,316 1,151 3,866 962 8,449 2,956
Secondary
development (m) 2,330 761 1,938 786 7,041 2,463
SA PGM operations Sep 2019 quarter Jun 2019 quarter Nine months ended 30 Sep 2019
Batho- Thembe- Khuse- Siphume- Batho- Thembe- Khuse- Siphume- Batho- Thembe- Khuse- Siphume-
Reef pele lani leka lele pele lani leka lele pele lani leka lele
Rustenburg Unit
Advanced (m) 444 2,160 3,148 1,218 455 1,525 2,840 1,156 1,144 5,085 8,342 3,224
Advanced
on reef (m) 444 813 1,096 647 455 613 897 582 1,144 1,858 2,744 1,684
Height (cm) 211 288 282 281 221 296 288 272 217 289 286 280
Average
value (g/t) 2.6 2.4 2.3 3.0 2.1 2.4 2.3 3.1 2.3 2.4 2.3 3.1
(cm.g/t) 548 684 645 846 473 709 654 838 495 693 664 852
Sep 2019 quarter Jun 2019 quarter Nine months ended 30 Sep 2019(1)
Rowl- Hossy, E1 Rowl- Hossy, E1 Row- Hossy, E1
Reef K3 and Saffy E3 4B & W1 K3 and Saffy E3 4B & W1 K3 land Saffy E3 4B & W1
Marikana Unit
Primary
development (m) 9,806 6,875 5,992 801 1,550 120 3,057 2,573 2,006 211 450 3 12,863 9,448 7,998 1,012 2,000 124
Primary
development
- on reef (m) 7,463 5,476 4,042 393 918 120 2,379 2,050 1,429 85 304 3 9,842 7,526 5,472 478 1,222 124
Height (cm) 217 218 221 237 217 230 218 214 219 241 211 220 217 217 220 238 216 229
Average
value (g/t) 2.8 2.5 2.7 2.7 2.5 2.4 2.8 2.8 2.6 2.6 2.4 3.0 2.8 2.6 2.7 2.6 2.5 2.4
(cm.g/t) 603 552 590 627 550 545 611 604 577 625 511 656 606 567 587 626 541 549
Sep 2019 quarter Jun 2019 quarter Nine months ended 30 Sep 2019
Kopa- Bamba- Kopa- Bamba- Kopa- Bamba-
Reef neng Simunye nani Kwezi K6 neng Simunye nani Kwezi K6 neng Simunye nani Kwezi K6
Kroondal Unit
Advanced (m) 838 437 798 825 523 633 404 589 725 584 2,027 1,227 1,907 2,284 1,684
Advanced
on reef (m) 635 358 692 640 495 466 326 385 491 577 1,657 1,053 1,560 1,685 1,650
Height (cm) 245 223 218 239 238 239 220 217 237 240 241 221 215 239 239
Average
value (g/t) 1.7 1.5 2.3 2.1 2.3 1.6 1.7 1.8 1.9 2.4 1.8 1.9 2.2 2.0 2.4
(cm.g/t) 427 323 489 495 554 388 368 390 443 576 428 417 479 474 572
(1) The year-to-date development results for the Marikana operations include the four months since acquisition
SA gold operations Sep 2019 quarter Jun 2019 quarter Nine months ended 30 Sep 2019
Black Carbon Black Carbon Black Carbon
Reef Reef leader Main VCR Reef leader Main VCR Reef leader Main VCR
Driefontein Unit
Advanced (m) 1,095 212 900 97 123 262 1,192 342 1,226
Advanced on reef (m) 242 93 105 5 60 11 247 160 116
Channel width (cm) 59 44 51 45 37 33 59 43 49
Average value (g/t) 14.5 12.7 22.2 48.6 16.5 203.3 15.0 13.5 33.3
(cm.g/t) 853 563 1,120 2,185 609 6,734 880 586 1,630
Sep 2019 quarter Jun 2019 quarter Nine months ended 30 Sep 2019
Reef Cobble Kloof Main Libanon VCR Cobble Kloof Main Libanon VCR Cobble Kloof Main Libanon VCR
Kloof Unit
Advanced (m) 64 1,230 614 13 1,257 749 444 581 64 2,555 1,323 13 2,074
Advanced on reef (m) 355 146 13 181 341 133 126 1,026 384 13 392
Channel width (cm) 165 70 183 151 167 117 118 161 98 183 126
Average value (g/t) 9.6 15.5 3.0 0.2 7.4 12.3 3.5 8.5 13.3 3.0 3.9
(cm.g/t) 1,576 1,082 548 30 1,225 1,445 416 1,375 1,304 548 490
Sep 2019 quarter Jun 2019 quarter Nine months ended 30 Sep 2019
Reef Beatrix Kalkoenkrans Beatrix Kalkoenkrans Beatrix Kalkoenkrans
Beatrix Unit
Advanced (m) 3,505 166 1,715 19 5,755 185
Advanced on reef (m) 1,098 90 708 8 2,226 98
Channel width (cm) 161 69 121 83 142 70
Average value (g/t) 7.7 14.4 8.3 11.2 8.3 14.1
(cm.g/t) 1,245 997 1,002 933 1,181 992
ADMINISTRATION AND CORPORATE INFORMATION
WEBSITE
http://www.sibanyestillwater.com
REGISTERED OFFICE
Constantia Office Park
Cnr 14th Avenue & Hendrik Potgieter Road
Bridgeview House, Ground Floor
Weltevreden Park 1709
South Africa
Private Bag X5
Westonaria 1780
South Africa
Tel: +27 11 278 9600
Fax: +27 11 278 9863
INVESTOR ENQUIRIES
James Wellsted
Senior Vice President: Investor Relations
Cell: +27 83 453 4014
Tel: +27 10 493 6923
Email: james.wellsted@sibanyestillwater.com or ir@sibanyestillwater.com
CORPORATE SECRETARY
Lerato Matlosa
Tel: +27 10 493 6921
Email: lerato.matlosa@sibanyestillwater.com
DIRECTORS
Dr. Vincent Maphai(1) (Chairman)
Neal Froneman (CEO)
Charl Keyter (CFO)
Timothy Cumming(1)
Savannah Danson(1)
Barry Davison(1)
Harry Kenyon-Slaney(1)
Richard Menell(1)
Nkosemntu Nika(1)
Keith Rayner(1)
Susanvan der Merwe(1)
Jerry Vilakazi(1)
(1) Independent non-executive
JSE SPONSOR
JP Morgan Equities South Africa Proprietary Limited
Registration number 1995/011815/07
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Illovo
Johannesburg 2196
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Private Bag X9936
Sandton 2196
South Africa
OFFICE OF THE UNITED KINGDOM SECRETARIES LONDON
St James's Corporate Services Limited
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United Kingdom
Tel: +44 20 7796 8644
Fax: +44 20 7796 8645
AUDITORS
Ernst & Young Inc. (EY)
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2146
South Africa
Tel: +27 11 772 3000
AMERICAN DEPOSITORY RECEIPTS TRANSFER AGENT
BNY Mellon Shareowner Services
PO Box 358516
Pittsburgh
PA15252-8516
US toll-free: +1 888 269 2377
Tel: +1 201 680 6825
Email: shrrelations@bnymellon.com
Tatyana Vesselovskaya
Relationship Manager
BNY Mellon
Depositary Receipts
Direct Line: +1 212 815 2867
Mobile: +1 203 609 5159
Fax: +1 212 571 3050
Email: tatyana.vesselovskaya@bnymellon.com
TRANSFER SECRETARIES SOUTH AFRICA
Computershare Investor Services Proprietary
Limited
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PO Box 61051
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South Africa
Tel: +27 11 370 5000
Fax: +27 11 688 5248
TRANSFER SECRETARIES UNITED KINGDOM
Capita Asset Services
The Registry
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Kent BR3 4TU
England
Tel: 0871 664 0300 (calls cost 10p a minute plus
network extras, lines are open 8.30am - 5pm
Mon-Fri) or +44 20 8639 3399 (from overseas)
Fax: +44 20 8658 3430
Email: ssd@capitaregistrars.com
SAFE HARBOUR
Where relevant, these actions are subject to the appropriate consultations and approvals.
Certain statements included in this announcement about Sibanye Gold Limited ("SGL") and Sibanye Stillwater Limited ("Sibanye-Stillwater"), as well as oral
statements that may be made by SGL, Sibanye-Stillwater, or by officers, directors or employees acting on their behalf related to the subject matter hereof, may
constitute or are based on forward-looking statements, including "forward-looking statements" within the meaning of the United States Private Securities Litigation
Reform Act of 1995. Forward-looking statements are not based on historical facts, and are generally preceded by, followed by or include the words "target",
"would", "potential", "aim", "foresee", "may", "will", "should", "expect", "envisage", "intend", "plan", "project", "estimate", "anticipate", "believe", "hope",
"can", "is designed to" or similar phrases. These forward-looking statements, including, among others, those relating to future business prospects, revenues and
income, statements which relate to expected timings of the Scheme and potential Scheme benefits, PGM pricing expectations, levels of output, supply and
demand, information relating to the Group's underground Blitz Project adjacent to the east of the existing Stillwater Mine designed to explore, define and extract
the PGM resource along the far eastern extent of the J-M Reef, and estimations or expectations of enterprise value, adjusted EBITDA and net asset values
wherever they may occur in this announcement, are necessarily estimates reflecting the best judgement of senior management and involve a number of risks
and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-
looking statements should be considered in light of various important factors, including those set forth in this announcement.
By their nature, these forward-looking statements about SGL and/or Sibanye-Stillwater involve a number of known and unknown risks, uncertainties and other
factors, many of which are difficult to predict and are generally beyond the control of SGL and/or Sibanye-Stillwater, that could cause SGL and/or 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.
Moreover, new risk factors emerge from time to time and it is not possible for SGL and/or Sibanye-Stillwater to predict all such risk factors. SGL and Sibanye-
Stillwater cannot assess the impact of all risk factors on their businesses or the extent to which any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-
looking statements as a prediction of actual results.
IMPORTANT INFORMATION
This announcement is for informational purposes only and does not constitute or form part of an offer to sell or the solicita tion of an offer to buy or subscribe to
any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. This announcement is not an offer of securities for sale into the United States. No offering of securities shall be
made in the United States except pursuant to registration under the U.S. Securities Act of 1933 (the "Securities Act"), or an exemption therefrom.
In connection with the Scheme, Sibanye-Stillwater has filed a registration statement on Form F-4, which includes important information with respect to the
Scheme. The final registration statement on Form F-4 will be made available to the relevant security holders of SGL.
The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into
which this announcement is released, published or distributed should inform themselves about and observe such restrictions.
SHAREHOLDERS IN THE UNITED STATES AND ADS HOLDERS OF SGL ARE URGED TO READ THE US REGISTRATION STATEMENT REGARDING THE PROPOSED SCHEME
CAREFULLY AND IN ITS ENTIRETY, INCLUDING THE EXHIBITS THERETO AND ANY DOCUMENTS PREVIOUSLY FILED WITH THE SEC AND INCORPORATED BY REFERENCE
INTO THE REGISTRATION STATEMENT AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THESE DOCUMENTS CONTAIN IMPORTANT
INFORMATION ABOUT SGL, SIBANYE-STILLWATER AND THE PROPOSED SCHEME.
Shareholders and ADS holders can obtain free copies of the registration statement on Form F-4, as well as other filings containing information about SGL and
Sibanye-Stillwater, without charge, at the SEC's website at http://www.sec.gov. Shareholders and ADS holders may also be able to obtain these documents,
without charge, from SGL's website at http://www.sibanyestillwater.com.
This announcement does not constitute an offer or a solicitation in any jurisdiction in which such offer or solicitation is unlawful. An offer will not be made in, nor
will deposits be accepted in, any jurisdiction in which the making or acceptance thereof would not be in compliance with the laws of such jurisdiction.
However, if an offer is made, Sibanye-Stillwater may, in its sole discretion, take such action as it may deem necessary to extend an offer in any such jurisdiction.
Date: 31/10/2019 08:30:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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