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- Water withdrawn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