Business model

This business model explains how Sibanye operates and delivers on its strategy in terms of the various capitals.

OVERALL STRATEGIC OBJECTIVE

Superior value creation for all stakeholders

SIBANYE’S BUSINESS ENVIRONMENT

For a discussion on the external business environment within which Sibanye operates, see Material issues.

SIBANYE’S MATERIAL ISSUES

For a discussion on the issues with potential to affect Sibanye’s ability to deliver on its business objectives, see Material issues.

Our business activities

Exploration and new business
Underground mining
Treatment and processing
Surface tailings retreatment
Beneficiation
Sale of commodities produced

Once mining operations have ceased, rehabilitation and closure are undertaken to restore and mitigate the effects of mining on the land.

What we do
inputs

In the course of conducting our business activities, we:

Declared Mineral Resources
– gold
98.79Moz
– uranium
230Mlb
Declared Mineral Reserves
– gold
31.0Moz
– uranium
113.8Mlb
Treated
8.6Mt of underground ore
Recycled/retreated
11.3Mt of surface material
Employed
46,269 people
Incurred operating costs of
R16,380 million
Expended sustaining and development capital of
R2,974 million
Procured goods and services worth
R5.9 billion

What we did
impacts

We consumed:

Water withdrawn
114,735Ml
Electricity consumed
4,231,362MWh
Cyanide purchased
11,924t

We achieved:

Safety performance (LTIFR per million hours worked)
6.74
Training and development

– employees
20,018

– community members
3,627
Scope 1 and 2 greenhouse gas (GHG) emissions (including fugitive mine methane)

5,015,626tCO₂e

We regret:

Fatalities
7

What we produced
Outputs

Gold
47,775kg (1.54Moz)
Uranium produced
121,835lb
Tailings deposited
18.5Mt
Revenue generated
R22,717 million
Profit
R538 million

What we created
Outcomes

Capital investment (growth) in projects
R371 million

VALUE DISTRIBUTED:

Employees: Salaries and wages
R7,345 million
Government: Current tax and royalties
R1,097 million
Communities: Socio-economic development
R691 million
Investors: Dividends paid
R658 million

OUR SIX-PRONGED OPERATING MODEL AIMS TO:

REDUCE COSTS AND PAY LIMITS

Total cash cost R347,613/kg
All-in sustaining costs R422,472/kg
Pay limits 1,200cm.g/t

INCREASE FLEXIBILITY

Gold Mineral Reserves
31.0Moz ▲ 9%
Uranium Mineral Reserves
113.8Mlb ▲ 11%

INCREASE MARGINS

28%

OPTIMISE ALL CAPITAL, INCLUDING BALANCE SHEET

Return on capital employed 15%
Net debt:EBITDA ratio 0.21:1
Return on equity 5%

OPTIMISE CASH FLOWS

R829 million

PAY ROBUST DIVIDENDS

Dividends declared R916 million
Dividends per share 100 cents