Performance against objectives

SCORECARD 2013: PERFORMANCE AGAINST OBJECTIVES
Objective KPIs Performance in 2013

Safe, profitable production

  • FIFR
  • LTIFR
  • Productivity
  • Margin

Safety performance improved – fatal injury frequency rate (FIFR) reduced by 41% and lost-time injury frequency rate (LTIFR) by 11%

Safety statistics approaching global benchmarks

Sibanye won most South African industry safety awards in 2013

Initial productivity gains from organisational restructuring support sustainable production levels in long-term

Total headcount reduced by 14%; contractors reduced by 37%; contractors comprised only 7% of workforce

Increased operating margin from 35% to 38%

Arrest declining production profile

  • Production
  • Tons (t) mined and milled
  • Gold produced

Turnaround successful; ore milled increased by 12% and gold production by 17%

Increased focus on operational perfomance and quality of mining

Gradual shift to shallower mining and extended life of mine (LoM) facilitated by acquisitions

Reverse increasing cost trends, reduce paylimits and increase margins

  • Operating cost (R/t)
  • All-in cost
  • Total cash cost
  • Margin

Combined corporate and regional structures

Removed layers of management at the operations

Reduced spans of control by separating KDC into Kloof and Driefontein

Introduced new operating model – multi-disciplinary, empowered teams

Flattened organisational structures to ensure more experience and higher levels of skill closer to the face

Rightsized the support services function

Average underground operating cost decreased by 6% to R1,623/t (US$169/t)

All-in cost reduced by 7% to R354,376/kg (US$1,148/oz)

Optimise capital and increase flexibility

  • Debt
  • Capex
  • Reserves and Resources

Reduced gross debt by over 50%

Restructured debt on more favourable terms and without restrictions

Optimised allocation of capital – increased development rates

Reinvesting in ore reserve development (ORD)

Ongoing assessment of potential to safely mine secondary reef resources, remnant areas and pillars

Gold reserves increased by 6Moz – maintain higher production levels for longer

4Moz gold and 43Mlb uranium unlocked in West Wits tailings storage facilities (TSFs) as a result of the proposed acquisition of the Cooke Operations

Future of Beatrix secured by acquisition of Wits Gold

Improve and embed relationships, as well as management focus

  • Employee turnover
  • Maintain mining licences

Implement service level contracts

Win the hearts and minds of employees by re-establishing direct communication channels

Invest in skills development and transformation

Deliver on Mining Charter requirements

Deliver value-accretive consolidation opportunities

  • Added value extends the life of operations

Enhancing acquisitions with cash flow and earnings

Strategic acquisitions are consistent with strategy to extend operational life